Malaga Financial Corp. in Palos Verdes Estates, Calif., reported record earnings Thursday for the second quarter and first six months of 2010.
The $818 million-asset company's earnings for the quarter rose 19%, to $2.6 million from $2.2 million a year earlier.
For the first six months, the company reported earnings of $5 million, a 10% year-over-year increase.
At June 30, Malaga did not have any delinquent loans or real estate owned, and its allowance for loan losses was $2.8 million, just 0.37% of total loans.
It attributed the increase in net income to growth in interest-earning assets and improvement in the interest rate spread.
Average interest-earning assets rose $25 million, or 3%, in the quarter while the interest rate spread inched up 0.14%. At midyear Malaga was more than well capitalized for regulatory purposes, with a leverage ratio of 10.96% and a total risk-based capital ratio of 18.23%.
