Doral pulls out of the red in 4Q, trims ’11 losses
Doral Financial Corporation, the parent company of Doral Bank, reported net income of $11.7 million for the fourth quarter ended Dec. 31, 2011, compared to a net loss of $30.2 million for the quarter ended Sept. 30, 2011 and a net loss of $36.1 million for the quarter ended Dec. 31, 2010.
For the year ended December 31, 2011, Doral reported a net loss of $10.7 million compared to a net loss of $291.9 million for the same period of 2010.
“Over the past year, Doral increased margins, reduced non-performing assets and lowered expenses, resulting in an increase in annualized earnings power of more than $100 million. As we report solid fourth quarter profits, we enter 2012 in a position to build on our success,” said Doral Financial Corporation CEO Glen Wakeman.
The quarterly report released late Thursday showed an increase of $1.1 million in net interest income to $49.4 million in the fourth quarter of 2011 from $48.3 million in the third quarter of 2011, while net interest income increased $11.8 million compared to the fourth quarter of 2010.
The bank also said it increased its net interest margin by 7 basis points from 2.60 percent in the third quarter of 2011 to 2.67 percent in the fourth quarter of 2011.
By achieving growth in U.S. commercial loans, Doral said it increased total net loans from the third quarter of 2011 by $145.9 million. Meanwhile, it decreased the provision for loan losses by $31.8 million from the third quarter of 2011. Doral’s loan portfolio consists mostly of residential mortgage loans related to Puerto Rico real estate, commercial real estate, and construction and land, and US commercial loans and commercial real estate.
Meanwhile, Doral said it increased retail deposits by $53.9 million in the fourth quarter of 2011 while reducing total deposit rates by 16 basis points compared to the third quarter of 2011.
The company also improved its income taxes during the quarter, recording an $8.6 million income tax benefit mainly due to the release of the deferred tax assets reserves due to the profitability of the mortgage subsidiary.