|By Marketwired .||
|March 21, 2014 04:39 PM EDT||
SAN JUAN, PR -- (Marketwired) -- 03/21/14 -- 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 a net loss of $50.9 million for the quarter ended December 31, 2013, compared to a net gain of $28.3 million for the quarter ended December 31, 2012. For the year ended December 31, 2013, Doral reported a net loss of $88.3 million compared to a net loss of $3.3 million for the year ended December 31, 2012.
Doral Financial's net loss attributable to common shareholders for the three months ended December 31, 2013 was $53.3 million compared to a net gain attributable to common shareholders of $25.8 million for the three months ended December 31, 2012.
Management has determined to revise the Company's financial statements for the quarter ended September 30, 2013. As a result, the provision for loan losses for the quarter ended September 30, 2013 increased by $7.2 million. After the revision, provision for loan losses for the quarter ended September 30, 2013 was $23.6 million, and net loss attributable to common shareholders was $17.1 million, or $2.57 per share outstanding on a fully diluted basis as compared to the previously reported amounts of $16.4 million, $9.9 million and $1.49, respectively.
"This was a difficult quarter. Doral incurred substantial credit costs that outweighed our progress in other parts of the company. Provisions and credit administration expenses were substantial. However, non-performing assets fell, retail deposits increased, we remain a leading mortgage franchise in Puerto Rico and our U.S. mainland operation sustained its profitable growth," said Glen Wakeman, CEO and President of Doral Financial Corporation.
As with the 2013 third quarter, retail deposits and loans for the 2013 fourth quarter were up over the preceding quarter. Reflecting Doral's development of U.S. mainland opportunities, as of December 31, 2013, $2.7 billion, or 43% of loans, are to U.S. commercial borrowers. At the same time, Doral continues to strengthen its franchise in Puerto Rico as a major provider of fixed-rate, affordable residential mortgages.
The Company's financial results for the fourth quarter and year ended December 31, 2013 and Investor Presentation materials, which contain additional information regarding our fourth quarter and year end 2013 performance, are being released at the same time as our filing of Doral's Form 10-K for the year ended December 31, 2013 with the Securities and Exchange Commission.
Doral will be holding a conference call to discuss its financial results on Monday, March 24, 2014 at 2:00 p.m. EDT.
The call may be accessed through a dial-in telephone number at (800) 288-8975 or (612) 332-0725 for international callers.
A telephone replay of the conference call will be available starting March 24th at 4:00 p.m. EDT through April 24, 2014 at 11:59 p.m. EDT. The replay can be accessed through dial-in telephone number at (800) 475-6701 or (320) 365-3844 for international callers. The replay access code is 322434.
- Net loss for the quarter ended December 31, 2013 totaled $50.9 million, compared to a net loss of $14.7 million for the third quarter of 2013 and net income of $28.3 million for the quarter ended December 31, 2012.
- The Company reported net loss attributable to common shareholders of $53.3 million for the fourth quarter of 2013 compared to a net loss attributable to common shareholders of $17.1 million for the third quarter of 2013, and net income attributable to common shareholders of $25.8 million for the quarter ended December 31, 2012.
- Net interest income for the fourth quarter of 2013 was $57.4 million, a decrease of $0.3 million compared to the third quarter of 2013, and an increase of $0.6 million when compared to the fourth quarter of 2012. Net interest margin was 3.03% and 2.98% for the third and fourth quarters of 2013, respectively.
- Recorded a provision for loan and lease losses of $25.8 million in the fourth quarter of 2013 as a result of redefaults on previously modified loans and new valuations received on defaulted residential mortgage loans compared to a $23.6 million provision in the third quarter of 2013 and a $21.3 million provision in the fourth quarter of 2012. The $25.8 million provision for loan and lease losses in the fourth quarter of 2013 resulted mainly from provisions of $13.6 million and $9.9 million for the commercial real estate and construction and land portfolios, respectively.
- Non-interest income for the fourth quarter of 2013 of $11.6 million reflects decreases of $7.1 million and $17.2 million, compared to non-interest income of $18.6 million for the third quarter of 2013 and $28.8 million for the fourth quarter of 2012, respectively. The decrease in non-interest income when compared to the third quarter of 2013 results from a decrease of $9.5 million in gain on trading activities and the increase of $1.9 million in losses on the early repayment of debt, partially offset by $4.4 million in additional insurance agency commissions earned during the fourth quarter of 2013.
- Non-interest expense for the fourth quarter of 2013 of $94.6 million increased by $26.2 million and $8.4 million from the quarters ended September 30, 2013 and December 31, 2012, respectively. The expense increase in the fourth quarter of 2013 compared to the third quarter of 2013 was mainly driven by increases of $4.6 million, $4.3 million and $9.3 million in compensation and benefits, professional services and other real estate owned expense, respectively.
- Doral's loan production for the fourth quarter of 2013 was $495.9 million resulting in decreases of $87.2 million and $137.3 million, compared to $583.1 million and $633.2 million for the third quarter of 2013 and fourth quarter of 2012, respectively. Commercial loan production in the U.S. totaled $330.0 million or 67% of loan production for the fourth quarter of 2013. Residential mortgage loan production in Puerto Rico, most of which is sold, of $164.6 million in the fourth quarter of 2013 was down $87.4 million from fourth quarter of 2012 mortgage loan production of $252.0 million, resulting in a decline of approximately 35%.
- Doral recognized an income tax benefit of $0.6 million for the quarter ended December 31, 2013 compared to an income tax benefit of $1.0 million and $50.2 million for the third quarter of 2013 and fourth quarter of 2012, respectively. The decrease compared to the fourth quarter of 2012 is due mainly to a $50.6 million deferred tax benefit in 2012 resulting from the conversion of Doral Insurance Agency to a limited liability company and the election to consolidate Doral Financial Corporation and Doral Insurance Agency LLC, for tax purposes, allowing the release of a portion of Doral Financial Corporation's deferred tax valuation allowance in 2012.
- Doral reported total assets as of December 31, 2013 of $8.5 billion compared to $8.5 billion as of December 31, 2012. The slight increase of $14.4 million is mainly due to an increase in net loans of $171.6 million, partially offset by decreases of $80.2 million and $59.4 million in cash and investments, respectively, leaving total assets relatively flat year-over-year.
- Total deposits were $5.0 billion as of December 31, 2013, an increase of $368.4 million, or 8%, from deposits of $4.6 billion as of December 31, 2012. The Company's brokered deposits decreased $582.4 million mostly due to early cancellations, while retail deposits increased $950.7 million during the year ended December 31, 2013.
- Non-performing loans ("NPLs"), excluding FHA/VA loans guaranteed by the U.S. government, as of December 31, 2013 were $685.9 million, a decrease of $56.9 million from December 31, 2012. The decrease in NPLs resulted largely from actions that management has taken to mitigate the risk associated with the PR loan portfolio as there is now evidence of stabilization within its non-performing loans.
- The Company's capital ratios continue to exceed the standards established by the federal banking agencies with the following ratios as of December 31, 2013; Tier 1 Leverage of 7.58%, Tier 1 Risk-based Capital of 9.66% and Total Risk-based Capital of 11.31%.
This earnings release contains forward-looking statements within the meaning of, and subject to the protection of, the Private Securities Litigation Reform Act of 1995. In addition, Doral Financial Corporation may make forward-looking statements in its other press releases, filings with the Securities and Exchange Commission ("SEC") or in other public or shareholder communications and its senior management may make forward-looking statements orally to analysts, investors, the media and others.
These forward-looking statements may relate to the Company's financial condition, results of operations, plans, objectives, future performance and business, including, but not limited to, statements with respect to the adequacy of the allowance for loan and lease losses, delinquency trends, market risk and the impact of interest rate changes, capital markets conditions, capital adequacy and liquidity, and the effect of legal proceedings, tax legislation and tax rules, governmental oversight, compliance and regulatory matters and new accounting standards and guidance on the Company's financial condition and results of operations. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts, but instead represent Doral Financial's current expectations regarding future events. Such forward-looking statements may be generally identified by the use of words or phrases such as "would be," "will allow," "intends to," "will likely result," "are expected to," "will continue," "is anticipated," "estimate," "project," "believe," "expect," "predict," "forecast," "anticipate," "plan," "outlook," "target," "goal," and similar expressions and future conditional verbs such as "would," "should," "could," "might," "can" or "may" or similar expressions.
Doral Financial cautions readers not to place undue reliance on any of these forward-looking statements since they speak only as of the date made and represent Doral Financial's expectations of future conditions or results and are not guarantees of future performance or events. The Company does not undertake and specifically disclaims any obligations to update any forward-looking statements to reflect occurrences or unanticipated events or circumstances after the date of those statements other than as required by law, including the requirements of applicable securities laws.
Forward-looking statements are, by their nature, subject to risks and uncertainties and changes in circumstances, many of which are beyond Doral Financial's control. Risk factors and uncertainties that could cause the Company's actual results to differ materially from those described in forward-looking statements can be found in the Company's Annual Report on Form 10-K for the year ended December 31, 2013 which is available on the Company's website at www.doralfinancial.com, as updated from time to time in the Company's periodic and other reports filed and to be filed with the SEC.
Doral Financial Corporation is a bank holding company engaged in banking, mortgage banking and insurance agency activities through its wholly-owned subsidiaries Doral Bank ("Doral Bank"), with operations on the mainland U.S. (New York metropolitan area and northwest region of Florida) and Puerto Rico, Doral Insurance Agency, LLC ("Doral Insurance Agency"), Doral Recovery, Inc. ("Doral Recovery I"), and Doral Properties, Inc. ("Doral Properties"). Doral Bank in turn operates three wholly-owned subsidiaries: Doral Mortgage LLC ("Doral Mortgage"), engaged in residential mortgage lending in Puerto Rico, Doral Money, Inc. ("Doral Money"), engaged in commercial and middle market lending primarily in the New York metropolitan area, and Doral Recovery, LLC ("Doral Recovery II", previously CB, LLC), an entity originally formed to dispose of a real estate project of which Doral Bank took possession during 2005, which now holds commercial loans and certain residential mortgage loans previously held by Doral Bank. Doral Money consolidates three variable interest entities created for the purpose of entering into collateralized loan arrangements with third parties.
Doral Financial Corporation's common shares trade on the New York Stock Exchange under the symbol DRL. Additional information about Doral Financial Corporation may be found on the Company's website at www.doralfinancial.com.
The Jevons Paradox suggests that when technological advances increase efficiency of a resource, it results in an overall increase in consumption. Writing on the increased use of coal as a result of technological improvements, 19th-century economist William Stanley Jevons found that these improvements led to the development of new ways to utilize coal. In his session at 19th Cloud Expo, Mark Thiele, Chief Strategy Officer for Apcera, will compare the Jevons Paradox to modern-day enterprise IT, e...
Sep. 27, 2016 07:30 PM EDT Reads: 2,125
Complete Internet of Things (IoT) embedded device security is not just about the device but involves the entire product’s identity, data and control integrity, and services traversing the cloud. A device can no longer be looked at as an island; it is a part of a system. In fact, given the cross-domain interactions enabled by IoT it could be a part of many systems. Also, depending on where the device is deployed, for example, in the office building versus a factory floor or oil field, security ha...
Sep. 27, 2016 07:15 PM EDT Reads: 418
SYS-CON Events announced today that Bsquare has been named “Silver Sponsor” of SYS-CON's @ThingsExpo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. For more than two decades, Bsquare has helped its customers extract business value from a broad array of physical assets by making them intelligent, connecting them, and using the data they generate to optimize business processes.
Sep. 27, 2016 07:00 PM EDT Reads: 2,844
Whether they’re located in a public, private, or hybrid cloud environment, cloud technologies are constantly evolving. While the innovation is exciting, the end mission of delivering business value and rapidly producing incremental product features is paramount. In his session at @DevOpsSummit at 19th Cloud Expo, Kiran Chitturi, CTO Architect at Sungard AS, will discuss DevOps culture, its evolution of frameworks and technologies, and how it is achieving maturity. He will also cover various st...
Sep. 27, 2016 06:45 PM EDT Reads: 1,805
Identity is in everything and customers are looking to their providers to ensure the security of their identities, transactions and data. With the increased reliance on cloud-based services, service providers must build security and trust into their offerings, adding value to customers and improving the user experience. Making identity, security and privacy easy for customers provides a unique advantage over the competition.
Sep. 27, 2016 06:30 PM EDT Reads: 3,557
There are several IoTs: the Industrial Internet, Consumer Wearables, Wearables and Healthcare, Supply Chains, and the movement toward Smart Grids, Cities, Regions, and Nations. There are competing communications standards every step of the way, a bewildering array of sensors and devices, and an entire world of competing data analytics platforms. To some this appears to be chaos. In this power panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, Bradley Holt, Developer Advocate a...
Sep. 27, 2016 06:30 PM EDT Reads: 2,184
SYS-CON Events announced today that Niagara Networks will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Niagara Networks offers the highest port-density systems, and the most complete Next-Generation Network Visibility systems including Network Packet Brokers, Bypass Switches, and Network TAPs.
Sep. 27, 2016 06:15 PM EDT Reads: 377
SYS-CON Events announced today that Secure Channels will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. The bedrock of Secure Channels Technology is a uniquely modified and enhanced process based on superencipherment. Superencipherment is the process of encrypting an already encrypted message one or more times, either using the same or a different algorithm.
Sep. 27, 2016 06:00 PM EDT Reads: 1,695
If you’re responsible for an application that depends on the data or functionality of various IoT endpoints – either sensors or devices – your brand reputation depends on the security, reliability, and compliance of its many integrated parts. If your application fails to deliver the expected business results, your customers and partners won't care if that failure stems from the code you developed or from a component that you integrated. What can you do to ensure that the endpoints work as expect...
Sep. 27, 2016 05:45 PM EDT Reads: 1,656
So, you bought into the current machine learning craze and went on to collect millions/billions of records from this promising new data source. Now, what do you do with them? Too often, the abundance of data quickly turns into an abundance of problems. How do you extract that "magic essence" from your data without falling into the common pitfalls? In her session at @ThingsExpo, Natalia Ponomareva, Software Engineer at Google, provided tips on how to be successful in large scale machine learning...
Sep. 27, 2016 05:30 PM EDT Reads: 2,005
If you had a chance to enter on the ground level of the largest e-commerce market in the world – would you? China is the world’s most populated country with the second largest economy and the world’s fastest growing market. It is estimated that by 2018 the Chinese market will be reaching over $30 billion in gaming revenue alone. Admittedly for a foreign company, doing business in China can be challenging. Often changing laws, administrative regulations and the often inscrutable Chinese Interne...
Sep. 27, 2016 05:15 PM EDT Reads: 297
In his general session at 18th Cloud Expo, Lee Atchison, Principal Cloud Architect and Advocate at New Relic, discussed cloud as a ‘better data center’ and how it adds new capacity (faster) and improves application availability (redundancy). The cloud is a ‘Dynamic Tool for Dynamic Apps’ and resource allocation is an integral part of your application architecture, so use only the resources you need and allocate /de-allocate resources on the fly.
Sep. 27, 2016 05:15 PM EDT Reads: 2,761
Enterprise IT has been in the era of Hybrid Cloud for some time now. But it seems most conversations about Hybrid are focused on integrating AWS, Microsoft Azure, or Google ECM into existing on-premises systems. Where is all the Private Cloud? What do technology providers need to do to make their offerings more compelling? How should enterprise IT executives and buyers define their focus, needs, and roadmap, and communicate that clearly to the providers?
Sep. 27, 2016 05:00 PM EDT Reads: 1,596
More and more companies are looking to microservices as an architectural pattern for breaking apart applications into more manageable pieces so that agile teams can deliver new features quicker and more effectively. What this pattern has done more than anything to date is spark organizational transformations, setting the foundation for future application development. In practice, however, there are a number of considerations to make that go beyond simply “build, ship, and run,” which changes ho...
Sep. 27, 2016 04:00 PM EDT Reads: 2,658
SYS-CON Events announced today that Commvault, a global leader in enterprise data protection and information management, has been named “Bronze Sponsor” of SYS-CON's 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Commvault is a leading provider of data protection and information management solutions, helping companies worldwide activate their data to drive more value and business insight and to transform moder...
Sep. 27, 2016 03:15 PM EDT Reads: 2,763