Doral Financial Corporation Reports Financial Results for the Quarter Ended September 30, 2012
Reports Net Loss of $32.5 Million for Quarter Ending September 30, 2012; Capital Ratios Continue to Exceed Well-Capitalized Standards
Doral Financial Corporation (NYSE: DRL) ("Doral", "Doral Financial" or the "Company"), the holding company of Doral Bank, with operations in Puerto Rico and the U.S., reported net loss of $32.5 million for the quarter ended September 30, 2012, compared to a net loss of $1.6 million for the quarter ended June 30, 2012 and a net loss of $30.2 million for the quarter ended September 30, 2011. For the nine months ended September 30, 2012, Doral reported a net loss of $31.6 million compared to a net loss of $22.4 million for the same period of 2011.
"Our results reflect the high credit costs as we continue to work with thousands of homeowners during this difficult economic time. Despite this, we have increased revenue, strengthened our mortgage and retail franchise in Puerto Rico, continued to successfully grow our U.S. operations, and preserved our high levels of capital," said Glen Wakeman, CEO and President of Doral Financial Corporation.
Third Quarter Highlights:
- Increased net interest income $1.5 million to $55.6 million in the third quarter of 2012 from $54.1 million in the second quarter of 2012. Increased total net loans receivable by $103.8 million from the second quarter of 2012 to the third quarter of 2012 based on strong growth in the U.S. commercial portfolio.
- Grew Puerto Rico's mortgage loan production 21%, from $209.4 million in the second quarter of 2012 to $254.3 million in the third quarter of 2012.
- Grew retail deposits by $93.2 million from the second quarter of 2012 to the third quarter of 2012.
- Increased loan and lease loss provisions by $29.2 million to $34.4 million in the third quarter of 2012, compared to $5.2 million in the second quarter of 2012 as a result of re-defaults on previously modified loans and new valuations of defaulted residential loans.
- Preserved excess capital levels well above the standards established by the federal banking agencies with ratios of Tier 1 Leverage of 9.32%, Tier 1 Risk-based Capital of 11.94% and Total Risk-based Capital of 13.26%. The Leverage, Tier 1 and Total Risk-based Capital Ratios exceeded the well-capitalized standards by $361.3 million, $387.9 million and $213.0 million, respectively.
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