The Board of Directors of Malaga Financial Corporation (OTCBB:MLGF) announced today the declaration of a cash dividend in the amount of 12½ cents per share to shareholders of record on October 12, 2012. The dividend will be paid out on or about October 16, 2012. Randy C. Bowers, President and CEO, remarked, “We are pleased that our continued strong financial performance allows us to reward our loyal shareholders with our 33rd consecutive quarterly dividend. This dividend results in a 2.78% annual yield based on a closing share price of $18.00 on September 28, 2012. We recently celebrated our 27th anniversary and look forward to continuing to serve and support the South Bay community.”

Malaga Bank, a subsidiary of MFC, is a full-service community bank headquartered on the Palos Verdes Peninsula with six offices located in the South Bay area of Los Angeles. It has been ranked the #1 performing thrift in the nation for three consecutive years by SNL Financial. Since 1985 Malaga 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.

Malaga Financial (PK) (USOTC:MLGF)
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