Malaga Financial Corporation Reports Earnings for the First Nine Months of 2025

Core Insights - Malaga Financial Corporation reported a net income of $16,431,000 for the nine months ended September 30, 2025, a decrease of 5% compared to $17,339,000 for the same period in 2024, influenced by a one-time Employment Retention Credit in 2024 [1] - The company’s net income for the third quarter of 2025 was $5,481,000, reflecting a slight decrease of 1% from $5,548,000 in the same quarter of 2024 [1] - The annualized return on average equity for the first nine months of 2025 was 10.15%, and the annualized return on average assets was 1.57% [1] Financial Performance - Net interest income for the third quarter of 2025 totaled $10,929,000, down 1% from the same period in 2024, primarily due to a decrease in the interest rate spread from 2.95% to 2.88% [2] - Other operating income saw a minor increase to $218,000 in the third quarter of 2025, with the company collecting an IRS refund of $930,000 related to the 2024 ERC [3] - Operating expenses increased by 1% to $3,445,000 in the third quarter of 2025, attributed mainly to higher depreciation and amortization costs [4] Asset Quality and Capital - The company reported no delinquent loans or foreclosed real estate as of September 30, 2025, with an allowance for loan losses of $3,703,000, representing 0.31% of total loans [4] - Total assets increased by 2% to $1.428 billion as of September 30, 2025, compared to $1.404 billion a year earlier [5] - Core capital and risk-based capital ratios were reported at 16.47% and 29.72%, respectively, significantly exceeding the minimum "well-capitalized" requirements [7] Funding and Deposits - Retail deposits decreased by $7.8 million to $723.5 million, while wholesale deposits increased by 21% to $211.2 million as of September 30, 2025 [6] - FHLB borrowings decreased by 8% to $240.0 million, indicating a strategic management of interest rate risk [6] Company Overview - Malaga Bank, a subsidiary of Malaga Financial Corporation, is a full-service community bank with a strong reputation, having received Bauer Financial's premier Top 5-Star rating for 71 consecutive quarters [8]