Malaga Financial Corporation (OTCIQ:MLGF) reported record first-quarter 2026 net income of $6,063,000 ($0.61 per share), a 12% increase versus Q1 2025. Annualized ROAE was 10.77% and ROAA 1.69%. Book value per share was $22.89.
Total assets rose to $1.443 billion, loans were $1.235 billion, retail deposits totaled $725 million, and FHLB borrowings increased to $250 million. The bank reported no delinquent loans or foreclosed real estate and held strong capital ratios (core capital 16.60%, risk-based 28.01%), classified as well-capitalized.
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AI-generated analysis. Not financial advice.
Positive
Net income +12% year-over-year to $6.063M
Record quarterly earnings reported for Q1 2026
Core capital ratio 16.60%, well above 5% requirement
Risk-based capital 28.01%, well above 10% requirement
No delinquent loans or foreclosed real estate at March 31, 2026
Negative
FHLB borrowings +25% to $250M, increasing wholesale funding reliance
Reported earnings included one-time items: $264K FHLB dividend and $307K fraud recovery
News Market Reaction – MLGF
-0.19%
1 alert
-0.19%News Effect
On the day this news was published, MLGF declined 0.19%, reflecting a mild negative market reaction.
PALOS VERDES ESTATES, Calif., April 16, 2026 (GLOBE NEWSWIRE) -- Malaga Financial Corporation “Company” (OTCIQ:MLGF), the parent company of Malaga Bank FSB, today reported that net income for the quarter ended March 31, 2026 was $6,063,000 ($0.61 basic and fully diluted earnings per share), an increase of $659,000 or 12% from net income of $5,404,000 ($0.55 basic and fully diluted earnings per share, as adjusted for the stock dividend declared on November 14, 2025) for the quarter ended March 31, 2025. For the first quarter of 2026, the Company’s annualized return on average equity was 10.77% and the annualized return on average assets was 1.69%, as compared to 10.16% and 1.55%, respectively, for the same period in 2025. Book value per share as of March 31, 2026 was $22.89.
The Company did not have any delinquent loans or foreclosed real estate owned at March 31, 2026. The Company’s allowance for credit losses was $3,785,000, or 0.31% of total loans, at March 31, 2026.
Net interest income totaled $11,859,000 in the first quarter of 2026, an increase of $730,000 or 7% from the first quarter of 2025. This increase is due to an overall increase in average-interest earning assets of $47.4 million and an increase of 0.07% in interest spread to 3.05%. The increase in interest spread is primarily attributable to a 0.14% increase in yield on average interest-earning assets, which includes a special Federal Home Loan Bank (FHLB) cash dividend of $264,000, offset by 0.07% increase in average cost of funds.
In the first quarter of 2026, operating expenses decreased 6% to $3,481,000 from $3,711,000 in the first quarter of 2025. The decrease is primarily attributed to decreases in general and administrative expenses of $335,000 mainly due to recovery of prior quarter deposit-related fraud, offset by increases in compensation of $65,000 and data processing of $62,000.
Randy C. Bowers, Chairman, President and CEO, commented, “We are pleased to report record first quarter 2026 earnings of $6,063,000 which includes one-time interest income of $264,000 related to special FHLB cash dividends and $307,000 recovery of prior quarter deposit related fraud. First quarter of 2026 presented continued volatility with increasing uncertainty in both economic markets and the political environment. We anticipate the remainder of the year to continue to be challenging, however our fundamentals remain strong with excellent credit quality, disciplined expense control, and robust capital levels. We appreciate the efforts of our colleagues and loyalty of our shareholders as we continue to adapt in this difficult environment.”
Malaga’s total assets increased to $1.443 billion at March 31, 2026, compared to $1.381 billion at March 31, 2025. The loan portfolio at March 31, 2026, was $1.235 billion, an increase of $9 million or 1% from March 31, 2025. Malaga originates loans principally for its own portfolio and not for sale.
Malaga funds its assets with a mix of retail deposits, wholesale deposits, and FHLB borrowings. Retail deposits totaled $725 million as of March 31, 2026, a $12 million increase from $714 million at March 31, 2025. Wholesale deposits, comprised mainly of State of California certificates of deposit and longer-term institutional and brokered deposits, totaled $214 million as of March 31, 2026, a $12 million decrease from $226 million at March 31, 2025. FHLB borrowings increased $50 million or 25% from $200 million at March 31, 2025, to $250 million at March 31, 2026. Malaga Bank utilizes FHLB borrowings and longer-term wholesale deposits as a tool to manage interest rate risk.
As of March 31, 2026, Malaga Bank was in compliance with all applicable regulatory capital requirements and was deemed “well-capitalized” under applicable regulations. Core capital and risk-based capital ratios were 16.60% and 28.01%, respectively, at March 31, 2026, significantly exceeding the minimum “well-capitalized” requirements of 5% and 10%, respectively.
Malaga Bank, a subsidiary of Malaga Financial Corporation, is a full-service community bank headquartered on the Palos Verdes Peninsula with six offices located in the South Bay area of Los Angeles. For over fifteen years Malaga Bank has been consistently recommended by one of the nation’s leading independent bank rating and research firms, Bauer Financial Inc. Malaga Bank was awarded Bauer’s premier Top 5-Star rating for the 73rdconsecutive quarter as of December 2025. Since 1985, Malaga Bank has been delivering competitive banking services to residents and businesses of the South Bay, including real estate loan products custom-tailored to consumers and investors. As the largest community bank in the South Bay, Malaga is proud of its continuing tradition of relationship-based banking and legendary customer service. The Bank’s web site is located at www.malagabank.com.
Contact:
Randy Bowers Chairman, President and Chief Executive Officer Malaga Financial Corporation 310-375-9000 rbowers@malagabank.com
FAQ
What were Malaga Financial (MLGF) Q1 2026 earnings and EPS?
Malaga reported $6,063,000 net income and $0.61 basic and diluted EPS for Q1 2026. According to the company, this represents a 12% increase versus Q1 2025, adjusted for the November 14, 2025 stock dividend.
How did Malaga Financial's (MLGF) capital ratios look at March 31, 2026?
Malaga Bank was deemed well-capitalized with core capital 16.60% and risk-based capital 28.01% at March 31, 2026. According to the company, these ratios substantially exceed regulatory minimums of 5% and 10%.
Did Malaga Financial (MLGF) record any loan delinquencies in Q1 2026?
No, Malaga reported no delinquent loans and no foreclosed real estate owned as of March 31, 2026. According to the company, allowance for credit losses was $3.785M, or 0.31% of total loans.
What funding changes did Malaga Financial (MLGF) report for Q1 2026?
FHLB borrowings rose to $250 million, a 25% increase year-over-year, while wholesale deposits declined modestly. According to the company, FHLB borrowings and longer-term wholesale deposits help manage interest rate risk.
Are Malaga Financial's (MLGF) Q1 2026 earnings driven by one-time items?
Q1 2026 earnings included one-time items totaling $571,000 (a $264,000 FHLB cash dividend and a $307,000 fraud recovery). According to the company, these items contributed to the record quarterly result but are non-recurring.
