# Malaga Financial Net Income Climbs 14% as Third-Quarter Spread Widens

By John Kim

Canonical URL: https://www.tokenpost.com/news/business/33814
Published: 2026-10-17T07:12:31.000Z
Updated: 2026-10-17T07:12:31.000Z
Section: Business

> Nine-month net income reached $18.028 million, up 10% year over year. Assets totaled $1.463 billion at Sept. 30.

Malaga Financial Corporation lifted third-quarter net income 14% to $6.27 million as a wider interest spread helped drive higher earnings at its community banking business. The quarter ended Sept. 30, and the results were released Oct. 16.

Net income rose by $789,000 from $5.481 million a year earlier. For the first nine months of 2026, net income reached $18.028 million, an increase of $1.597 million, or 10%. Annualized returns on average equity and average assets were 10.52% and 1.66%, respectively.

Quarterly net interest income increased $1.426 million, or 13%, to $12.324 million. The interest rate spread—the difference between yields on interest-earning assets and rates paid on interest-bearing liabilities—was 3.15%, up from 2.88%. Average asset yields rose 0.32 percentage point, while rates paid on interest-bearing liabilities increased 0.05 point. An $8.5 million increase in the excess of interest-earning assets over interest-bearing liabilities also contributed.

The nine-month earnings increase reflected a $2.631 million rise in net interest income after loan-loss provisions and a $307,000 identity fraud recovery. Higher other operating expenses and income taxes partly offset the gain, increasing by $622,000 and $670,000, respectively.

At Sept. 30, assets totaled $1.463 billion and the loan portfolio stood at $1.237 billion, up $24.9 million, or 2%, from a year earlier. There were no delinquent loans or foreclosed real estate. The allowance for loan losses was $3.797 million, equal to 0.31% of total loans.

Malaga Financial is the parent company of Malaga Bank FSB, a community bank with six offices in Los Angeles’ South Bay area. Malaga Bank’s core capital ratio was 16.85%, and its risk-based capital ratio was 28.09%, compared with stated well-capitalized minimums of 5% and 10%. Chairman, President and CEO Randy C. Bowers said, “We remain optimistic about our momentum.”