Doral Financial loses $10.4M in 2Q13
Doral Financial Corporation, which has operations in Puerto Rico and the U.S. mainland, reported Wednesday a net loss of $10.4 million for the three months ended June 30, 2013.
The loss, the bank said, “does not reflect the long term potential of Doral and management’s success in recapitalizing Doral, segregating and addressing its portfolio of problem loans, the positioning of Doral as a leading community bank for Puerto Rico, or Doral’s expansion into the U.S. mainland.”
“Consistent with this, Doral Bank for the quarter achieved growth in important indicators such as retail deposits and new loans, including residential mortgages, over the prior quarter,” the bank noted.
The current numbers compare to net losses of $12.4 million and $1.6 million for the first quarter ended March 31, 2013 and the year ago quarter ended June 30, 2012, respectively.
Doral Financial’s net loss attributable to common shareholders for the three months ended June 30, 2013 was $12.8 million. For the first quarter of 2013, the net loss attributable to common shareholders was $14.8 million and for the second quarter of 2012 the net loss attributable to common shareholders was $4.0 million.
“We, like a number of other banks in Puerto Rico, have been confronted by legacy issues exacerbated by years of difficult economic conditions that have hampered the Commonwealth,” said Doral Financial Corporation CEO Glen Wakeman. “At Doral, we are successfully addressing and eliminating these issues. Doral is now positioned with a more appropriate matching of our assets and liabilities.”
During the second quarter, the bank grew retail deposits by $341.5 million; produced $630.7 million in new loans, including $206.1 million of residential mortgage loans in Puerto Rico, a decrease of 1.6 percent compared to the second quarter of 2012 volume of $209.4 million; increased net loans receivable $14.3 million, to $6.1 billion at June 30, 2013; and preserved capital levels with ratios for Tier 1 Leverage of 8.98 percent, Tier 1 Risk-based Capital of 11.21 percent and Total Risk-based Capital of 12.51 percent, among other events.
“Our capital ratios are in excess of regulatory requirements. We have reorganized Doral Bank into two units- Doral Growth, which is a profitable mortgage and commercial bank, and Doral Recovery, which is a special servicing group that holds Doral’s non-performing loans with the objective of maximizing their value,” he said. “This structure is designed to enable the organization to allocate its focus and resources to best serve each unit.”
Doral’s expansion to the U.S. mainland continues to experience steady growth as a commercial lender and with a retail banking operation with branches in Florida and New York. Meanwhile, our focus in the Puerto Rico market is being a leading community bank, led by a high-touch successful mortgage franchise.
“To this end, we have structured our organization to meet the needs of our customers while continuing to create community directed programs including those related to keeping people from losing their homes and fostering women entrepreneurship to help stimulate a stronger economic Puerto Rico for the long term,” Wakeman said.
The company filed its quarterly report a day late, as this media outlet reported.