|By Marketwired .||
|November 9, 2012 07:30 AM EST||
SAN JUAN, PR -- (Marketwire) -- 11/09/12 -- 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.
The Company's financial results for the third quarter of 2012 are being released at the same time as our filing of the Quarterly Report on Form 10-Q with the Securities and Exchange Commission.
Doral will be holding a conference call to discuss its financial results on Friday, November 9th, 2012 at 10:00 a.m. EST.
The call may be accessed through a dial-in telephone number at (800) 230-1093 or (612) 288-0340 for international callers.
A telephone replay of the conference call will be available through December 9th, 2012 at (800) 475-6701 or (320) 365-3844 for international callers. The replay access code is 270528.
- Net loss for the quarter ended September 30, 2012 totaled $32.5 million, compared to a net loss of $1.6 million for the second quarter of 2012 and a net loss of $30.2 million for the quarter ended September 30, 2011.
- The Company reported net loss attributable to common shareholders of $35.0 million for the third quarter of 2012 compared to a net loss attributable to common shareholders of $4.0 million for the second quarter of 2012, and a net loss attributable to common shareholders of $32.6 million for the quarter ended September 30, 2011.
- Net interest income for the third quarter of 2012 was $55.6 million, an increase of $1.5 million compared to the second quarter of 2012, and an increase of $7.4 million when compared to the third quarter of 2011. Net interest margin remained stable at 2.91% for both the second and third quarters of 2012.
- Provision for loan and lease losses for the third quarter of 2012 was $34.4 million, an increase of $29.2 million over the second quarter 2012 provision, and a decrease of $7.3 million from the provision recorded in the third quarter of 2011. The $34.4 million provision for loan and lease losses in the third quarter of 2012 resulted mainly from the residential mortgage portfolios ($28.8 million), and resulted from higher re-defaults of previously modified loans and new valuations of defaulted loans, all related to Puerto Rico loan exposures.
- Non-interest income for the third quarter of 2012 of $20.6 million reflects a decrease of $0.7 million, and a decrease of $8.9 million, compared to non-interest income of $21.3 million for the second quarter of 2012 and $29.5 million for the third quarter of 2011, respectively. The decrease in non-interest income when compared to the second quarter of 2012 results from the negative variances of $2.3 million and $2.6 million in mark-to-market adjustments on servicing assets and the loss on hedge derivatives, respectively, offset by the $4.8 million positive variance in gain on sale and securitization of loans.
- Non-interest expense for the third quarter of 2012 of $73.8 million increased $2.8 million and $10.0 million from the quarters ended June 30, 2012 and September 30, 2011, respectively. The expense increase in the third quarter of 2012 compared to the second quarter of 2012 was mainly driven by an increase in other real estate owned expenses of $2.2 million. Credit related expenses, including other real estate owned expenses (largely collateral value adjustments), foreclosure expenses, and certain loan and administrative costs, totaled $15.6 million in the third quarter of 2012, and $14.2 million in the second quarter of 2012.
- Doral's loan production for the third quarter of 2012 was $771.1 million, an increase of $247.7 million and $325.5 million, compared to $523.4 million and $445.6 million for the second quarter of 2012 and third quarter of 2011, respectively. The U.S. commercial loan production totaled $390.5 million or 50.6% of the loan production for the third quarter of 2012, and Puerto Rico residential mortgage loan production, most of which is sold, of $254.3 million in the third quarter of 2012 was up $44.9 million over the second quarter of 2012 production of $209.4 million.
- Doral reported total assets as of September 30, 2012 of $8.4 billion compared to $8.0 billion as of December 31, 2011. The increase of $395.4 million is mainly due to an increase in net loans of $326.3 million related to growth in the U.S. commercial loan portfolio.
- Total deposits were $4.6 billion as of September 30, 2012, an increase of $219.7 million, or 5.0%, from deposits of $4.4 billion as of December 31, 2011. The Company's brokered deposits decreased $76.7 million while retail deposits increased $296.4 million during the nine months ended September 30, 2012.
- Non-performing loans ("NPLs"), excluding FHA/VA loans guaranteed by the US government, as of September 30, 2012 were $753.4 million, an increase of $130.0 million from December 31, 2011. The increase in NPLs during the third quarter of 2012 resulted largely from the classification of certain residential mortgage TDR loans as NPLs.
- The Company's capital ratios continue to exceed the well-capitalized 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.
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, 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. 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, 2011 which is available in 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 in the mainland U.S. (New York metropolitan area and northwest region of Florida) and Puerto Rico, Doral Insurance Agency, Inc. ("Doral Insurance Agency"), 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 CB, LLC, an entity formed to dispose of a real estate project of which Doral Bank took possession during 2005. Doral Money consolidates two variable interest entities created for the purpose of entering into a collateralized loan arrangement with a third party.
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 best way to leverage your Cloud Expo presence as a sponsor and exhibitor is to plan your news announcements around our events. The press covering Cloud Expo and @ThingsExpo will have access to these releases and will amplify your news announcements. More than two dozen Cloud companies either set deals at our shows or have announced their mergers and acquisitions at Cloud Expo. Product announcements during our show provide your company with the most reach through our targeted audiences.
Oct. 24, 2016 09:15 AM EDT Reads: 4,657
Fact is, enterprises have significant legacy voice infrastructure that’s costly to replace with pure IP solutions. How can we bring this analog infrastructure into our shiny new cloud applications? There are proven methods to bind both legacy voice applications and traditional PSTN audio into cloud-based applications and services at a carrier scale. Some of the most successful implementations leverage WebRTC, WebSockets, SIP and other open source technologies. In his session at @ThingsExpo, Da...
Oct. 24, 2016 09:00 AM EDT Reads: 2,306
Fifty billion connected devices and still no winning protocols standards. HTTP, WebSockets, MQTT, and CoAP seem to be leading in the IoT protocol race at the moment but many more protocols are getting introduced on a regular basis. Each protocol has its pros and cons depending on the nature of the communications. Does there really need to be only one protocol to rule them all? Of course not. In his session at @ThingsExpo, Chris Matthieu, co-founder and CTO of Octoblu, walk you through how Oct...
Oct. 24, 2016 08:15 AM EDT Reads: 3,142
SYS-CON Events announced today that Embotics, the cloud automation company, 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. Embotics is the cloud automation company for IT organizations and service providers that need to improve provisioning or enable self-service capabilities. With a relentless focus on delivering a premier user experience and unmatched customer support, Embotics is the fas...
Oct. 24, 2016 08:00 AM EDT Reads: 844
The Internet of Things (IoT), in all its myriad manifestations, has great potential. Much of that potential comes from the evolving data management and analytic (DMA) technologies and processes that allow us to gain insight from all of the IoT data that can be generated and gathered. This potential may never be met as those data sets are tied to specific industry verticals and single markets, with no clear way to use IoT data and sensor analytics to fulfill the hype being given the IoT today.
Oct. 24, 2016 07:30 AM EDT Reads: 2,556
More and more brands have jumped on the IoT bandwagon. We have an excess of wearables – activity trackers, smartwatches, smart glasses and sneakers, and more that track seemingly endless datapoints. However, most consumers have no idea what “IoT” means. Creating more wearables that track data shouldn't be the aim of brands; delivering meaningful, tangible relevance to their users should be. We're in a period in which the IoT pendulum is still swinging. Initially, it swung toward "smart for smar...
Oct. 24, 2016 07:15 AM EDT Reads: 923
@ThingsExpo has been named the Top 5 Most Influential M2M Brand by Onalytica in the ‘Machine to Machine: Top 100 Influencers and Brands.' Onalytica analyzed the online debate on M2M by looking at over 85,000 tweets to provide the most influential individuals and brands that drive the discussion. According to Onalytica the "analysis showed a very engaged community with a lot of interactive tweets. The M2M discussion seems to be more fragmented and driven by some of the major brands present in the...
Oct. 24, 2016 05:45 AM EDT Reads: 11,379
WebRTC has had a real tough three or four years, and so have those working with it. Only a few short years ago, the development world were excited about WebRTC and proclaiming how awesome it was. You might have played with the technology a couple of years ago, only to find the extra infrastructure requirements were painful to implement and poorly documented. This probably left a bitter taste in your mouth, especially when things went wrong.
Oct. 24, 2016 05:00 AM EDT Reads: 5,539
The Quantified Economy represents the total global addressable market (TAM) for IoT that, according to a recent IDC report, will grow to an unprecedented $1.3 trillion by 2019. With this the third wave of the Internet-global proliferation of connected devices, appliances and sensors is poised to take off in 2016. In his session at @ThingsExpo, David McLauchlan, CEO and co-founder of Buddy Platform, discussed how the ability to access and analyze the massive volume of streaming data from millio...
Oct. 24, 2016 05:00 AM EDT Reads: 3,100
SYS-CON Events announced today that Pulzze Systems 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. Pulzze Systems, Inc. provides infrastructure products for the Internet of Things to enable any connected device and system to carry out matched operations without programming. For more information, visit http://www.pulzzesystems.com.
Oct. 24, 2016 05:00 AM EDT Reads: 2,501
Successful digital transformation requires new organizational competencies and capabilities. Research tells us that the biggest impediment to successful transformation is human; consequently, the biggest enabler is a properly skilled and empowered workforce. In the digital age, new individual and collective competencies are required. In his session at 19th Cloud Expo, Bob Newhouse, CEO and founder of Agilitiv, will draw together recent research and lessons learned from emerging and established ...
Oct. 24, 2016 04:30 AM EDT Reads: 1,327
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?
Oct. 24, 2016 04:30 AM EDT Reads: 2,506
One of biggest questions about Big Data is “How do we harness all that information for business use quickly and effectively?” Geographic Information Systems (GIS) or spatial technology is about more than making maps, but adding critical context and meaning to data of all types, coming from all different channels – even sensors. In his session at @ThingsExpo, William (Bill) Meehan, director of utility solutions for Esri, will take a closer look at the current state of spatial technology and ar...
Oct. 24, 2016 04:00 AM EDT Reads: 1,723
SYS-CON Events announced today that Streamlyzer 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. Streamlyzer is a powerful analytics for video streaming service that enables video streaming providers to monitor and analyze QoE (Quality-of-Experience) from end-user devices in real time.
Oct. 24, 2016 03:45 AM EDT Reads: 971
You have great SaaS business app ideas. You want to turn your idea quickly into a functional and engaging proof of concept. You need to be able to modify it to meet customers' needs, and you need to deliver a complete and secure SaaS application. How could you achieve all the above and yet avoid unforeseen IT requirements that add unnecessary cost and complexity? You also want your app to be responsive in any device at any time. In his session at 19th Cloud Expo, Mark Allen, General Manager of...
Oct. 24, 2016 03:45 AM EDT Reads: 899
SYS-CON Media announced today that @WebRTCSummit Blog, the largest WebRTC resource in the world, has been launched. @WebRTCSummit Blog offers top articles, news stories, and blog posts from the world's well-known experts and guarantees better exposure for its authors than any other publication. @WebRTCSummit Blog can be bookmarked ▸ Here @WebRTCSummit conference site can be bookmarked ▸ Here
Oct. 24, 2016 03:30 AM EDT Reads: 9,676
Cloud based infrastructure deployment is becoming more and more appealing to customers, from Fortune 500 companies to SMEs due to its pay-as-you-go model. Enterprise storage vendors are able to reach out to these customers by integrating in cloud based deployments; this needs adaptability and interoperability of the products confirming to cloud standards such as OpenStack, CloudStack, or Azure. As compared to off the shelf commodity storage, enterprise storages by its reliability, high-availabil...
Oct. 24, 2016 02:45 AM EDT Reads: 1,107
The IoT industry is now at a crossroads, between the fast-paced innovation of technologies and the pending mass adoption by global enterprises. The complexity of combining rapidly evolving technologies and the need to establish practices for market acceleration pose a strong challenge to global enterprises as well as IoT vendors. In his session at @ThingsExpo, Clark Smith, senior product manager for Numerex, will discuss how Numerex, as an experienced, established IoT provider, has embraced a ...
Oct. 24, 2016 02:30 AM EDT Reads: 1,076
DevOps is being widely accepted (if not fully adopted) as essential in enterprise IT. But as Enterprise DevOps gains maturity, expands scope, and increases velocity, the need for data-driven decisions across teams becomes more acute. DevOps teams in any modern business must wrangle the ‘digital exhaust’ from the delivery toolchain, "pervasive" and "cognitive" computing, APIs and services, mobile devices and applications, the Internet of Things, and now even blockchain. In this power panel at @...
Oct. 24, 2016 01:15 AM EDT Reads: 1,921
SYS-CON Events announced today that Super Micro Computer, Inc., a global leader in Embedded and IoT solutions, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 7-9, 2017, at the Javits Center in New York City, NY. Supermicro (NASDAQ: SMCI), the leading innovator in high-performance, high-efficiency server technology, is a premier provider of advanced server Building Block Solutions® for Data Center, Cloud Computing, Enterprise IT, Hadoop/Big Data, HPC and ...
Oct. 24, 2016 01:00 AM EDT Reads: 3,581