Doral Financial — Q1 2013 Earnings Presentation
13 slides from Doral Financial's earnings presentation, May 9, 2013
Slide 1: Doral Financial Corporation Q1 2013 Investor Presentation
Exhibit 99.2 Doral Financial Corporation Q1 2013 Investor Presentation May 9, 2013
Slide 2: Disclaimer
Disclaimer This presentation may include forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995 (the “PSLRA”). These include comments with respect to our objectives and strategies, and the results of our operations and our business. Forward-looking statements c
Slide 3: Q1 2013 Results
Q1 2013 Results Higher margin and revenues more than offset by credit provisions related to Doral Recovery. o Net Loss $(12.4)MM o Pre-Tax, Pre-Provision Income $10.2MM o Provisions $18.7MM o Net Interest Margin 331bps o Book Value per Share $3.60 o Tier-1 Leverage Ratio 9.26% Doral Growth continues
Slide 4: Q1 Results
Q1 Results 1 Net Loss ($MM) 1Q ’13 Net Interest Income $60.7 Net Revenue reached $85.5MM Non Interest Income 24.8 Net Interest Margin increased 36bps to 3.31%. Total Net Revenue $85.5 Originated $260MM of Residential Mortgages during the Quarter Non-Interest Expense 75.2 Operating expense down $11.8
Slide 5: Doral Operating Segments
Doral Operating Segments Two Operating Segments: High Margin Bank & Special Servicing Group 1. Doral Growth: A $6.4B Mortgage & Commercial Bank 2. Doral Recovery: A $2.0B Special Servicing Group Puerto Rico Taxes & Other OREO (11%) (6%) Cash & Securities (16%) Puerto Rico Residential Mortgage Puerto
Slide 6: Doral Growth
Doral Growth 1 Segment Results Overview ($MM) 1Q 13 Doral Growth generated a 1.2% Pre-Tax ROAA in Q1 Net Interest Income $50.9 Asset substitution has created a 3.59% NIM Non Interest Income 26.7 Originated $260MM mortgages in Puerto Rico Total Net Revenue $77.6 US Assets grew by $103MM to $2.3B Non-
Slide 7: Doral Recovery
Doral Recovery 1 Segment Results Overview ($MM) 1Q 13 Established special servicing operation managing Net Interest Income $9.8 ~13,000 loans with a focus on cash collections. Non Interest Income (1.9) 62% of Total Loans are Performing Total Net Revenue $8.0 Many loans classified as NPL continue to
Slide 8: Asset Quality
Asset Quality Valuation driven provision increased coverage ratios Credit Provision Distribution by Portfolio ($MM) Portfolio Valuation Delinquency Total Residential Mortgage $4.0 $5.5 $9.5 Commercial 7.7 1.5 9.2 Total $11.7 $7.0 $18.7 1 NPL: Adjusted Coverage Ratios Partial Charge- Adjusted Offs, D
Slide 9: Executive Summary
Executive Summary Asset Substitution strategy continues to deliver significant revenue gains. Successfully established Doral Recovery special servicing operation. Doral Growth is an attractive 1% Pre Tax Return on Asset business. Reverse split underway to maintain NYSE compliance. Leverage ratio of
Slide 10: Investor Relations Contact and Conference Replay Details
Investor Relations Contact and Conference Replay Details Investor Relations: Christopher Poulton 212 / 329-3794 [email protected] Conference Call: 10.00 AM EDT May 9, 2013 (800) 398-9367 or (612) 332-0636 Conference Call Replay: May 9, 2013 – June 9, 2013 (800) 475-6701 or (320)
Slide 11: Exhibits
Exhibits
Slide 12: Exhibit A – Financial Summary
Exhibit A – Financial Summary ($ MM) 31-Mar-13 31-Dec-12 30-Sep-12 30-Jun-12 31-Mar-12 Income Statement Net Interest Income 60.7 56.8 56.2 54.8 52.7 Provision for Credit Losses 18.7 21.3 34.4 5.2 115.2 NII After Provisions 42.0 35.5 21.8 49.6 (62.5) Non-Interest Income 24.8 29.7 20.0 20.4 15.7 Non-I
Slide 13: Exhibit B – Segment Reconciliation
Exhibit B – Segment Reconciliation ($ MM) PR US Doral Growth¹ Recovery Corporate Treasury Total Income Statement Net Interest Income $25.7 $25.3 $51.0 $9.8 $(0.1) $0.0 $60.7 Non-Interest Income 23.9 2.0 25.9 (1.8) 0.0 0.8 24.8 Total Net Revenue 49.6 27.3 76.9 8.0 (0.1) 0.8 85.5 Non-Interest Expense