Doral reports $30.2M net loss for 3Q
Doral Financial Corporation, the holding company of Doral Bank and Doral Bank FSB, reported a net loss of $30.2 million for the quarter ended Sept. 30, compared to a net income of $4.5 million for the prior quarter ended June 30.
For the nine-month period ended Sept. 30, Doral’s narrowed its negative profit levels, reporting a net loss of $22.4 million compared to a net loss of $255.8 million for the same period in 2010.
Meanwhile, Doral recorded pre-tax pre-provision income of $12.5 million led by improvements in net interest margin and an increase of $2.8 million in net interest income. For the nine months period ended Sept. 30, the financial institution’s pre-tax pre-provision income was $45.6 million.
“This quarter we improved net interest margin, stabilized asset quality and further increased our credit provisions primarily related to legacy impaired loans, which resulted in a significant increase in our credit coverage ratios,” said Glen Wakeman, Doral CEO.
“Moving forward, we will continue to strengthen our mortgage and retail banking franchise in Puerto Rico, while diversifying our business by reducing our low margin, non-core securities and investing in high margin U.S. assets,” he said.
The quarterly results show that Doral bolstered the allowance for loan and lease losses with a $41.7 million provision primarily related to legacy impaired loans and significantly increased asset coverage ratios.