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PALOS VERDES ESTATES, Calif.--([ BUSINESS WIRE ])--The Board of Directors of Malaga Financial Corporation (OTCBB:MLGF)announced today the declaration of a cash dividend in the amount of 12 cents per share to shareholders of record on Jan. 3, 2012. The dividend will be paid out on or about Jan. 5, 2012. Randy C. Bowers, President and CEO, remarked, aWe are pleased to announce a dividend increase which rewards the loyalty and support of our shareholders, many of whom have been with us for over 25 years. This is our 30^th consecutive quarterly cash dividend and is a result of record earnings and our strong capital position.a

"We are pleased to announce a dividend increase which rewards the loyalty and support of our shareholders, many of whom have been with us for over 25 years. This is our 30th consecutive quarterly cash dividend and is a result of record earnings and our strong capital position."

Malaga Bank is a full-service community bank headquartered on the Palos Verdes Peninsula with branch offices located on the Peninsula, in Torrance and now in San Pedro. For 26 years, Malaga has been delivering not only competitive banking services to residents and businesses of the South Bay, but also 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 Bankas web site is located at [ www.malagabank.com ].