Doral Financial — Q3 2013 Earnings Presentation
14 slides from Doral Financial's earnings presentation, Nov 5, 2013
Slide 1: Doral Financial Corporation Q3 2013 Investor Presentation
Exhibit 99.2 Doral Financial Corporation Q3 2013 Investor Presentation November 5, 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: Q3 2013 Results
Q3 2013 Results Q3 results showed improvement versus Q2 2013; capital remains in excess of regulatory requirements o Net Loss $(7.5)MM o Pre-Tax, Pre-Credit Provision Income $7.9MM o Provisions $16.4MM o Net Interest Margin 303bps o Book Value per Share $66.55 o Tier-1 Leverage Ratio (Doral Bank) 8.
Slide 4: Doral Financial Corporation Profile
Doral Financial Corporation Profile Company Overview Loan Portfolio Composition ($6.8B) $8.6B Asset PR Mortgage & US Commercial Bank Doral Recovery (27%) Capital Ratios continue to exceed regulatory requirements: o Tier-1 Leverage Ratio (DFC): 8.7% o Total Risk-Based Capital Ratio (DFC): 12.1% Doral
Slide 5: Doral Operating Segments
Doral Operating Segments Two Operating Segments: Profitable, High Margin Bank & Special Servicing Group Doral Growth: Profitable Mortgage & Commercial Bank Doral Recovery: Puerto Rico Special Servicing Portfolio Taxes & Other PR OREO & Other (11%) (7%) Cash & Securities Puerto Rico Loans (16%) (33%)
Slide 6: Q3 Results
Q3 Results Net Loss ($MM) 3Q ’13 Net Interest Income $57.6 Improved Net Loss by $3MM vs. Q2’13 Non Interest Income 18.7 NIM returned to above 300 bps Slow mortgage market continues to weigh on Non- Total Net Revenue 76.3 Interest Income o $144MM of production in Q3, 30% lower than Q2 Non-Interest Ex
Slide 7: Doral Growth
Doral Growth Segment Results 1 Overview ($MM) 3Q 13 Doral Growth generated $12MM in Pre-Tax Income Net Interest Income $47.0 NIM remained strong at 325 bps Non Interest Income 18.7 Non-Interest Income continues to suffer from a soft mortgage market in Puerto Rico Total Net Revenue 65.7 Non-Interest
Slide 8: Doral Recovery
Doral Recovery Segment Results 1 Overview ($MM) 3Q 13 Net Loss improved by $2M versus Q2 Net Interest Income $10.6 Commercial NPAs fell by $20MM Non Interest Income 0.0 61% of Recovery Loans are Performing Total Net Revenue 10.6 o 63% of Residential loans are performing o 58% of Commercial loans are
Slide 9: Asset Quality
Asset Quality NPAs down $2MM; Recovery efforts driving continued reduction in Commercial NPAs NPL & NPA: Q2 vs. Q3 1 NPL NPA $ MM Q2 Q3 Change Q2 Q3 Change Residential 409.7 431.0 21.3 527.1 544.4 17.3 Commercial 303.7 286.5 (17.2) 350.4 330.9 (19.5) Total $713.4 $717.4 $4.1 $877.5 $875.3 $(2.2) NPL
Slide 10: Executive Summary
Executive Summary Third Quarter demonstrated improved financial performance Doral Growth delivered $12MM of profits -- earnings are up $5MM from Q2 US platform continues profitable growth – now represents 40% of loans and 47% of retail deposits Doral Recovery continues to deliver strong results -- e
Slide 11: Investor Relations Contact and Conference Replay Details
Investor Relations Contact and Conference Replay Details Investor Relations: Christopher Poulton – Executive Vice President 212 / 329-3794 [email protected] Media: Lucienne Gigante – SVP Public Relations 787 / 474-6298 [email protected] Conference Call: 2.00 PM EST
Slide 12: Exhibits
Exhibits
Slide 13: Exhibit A – Financial Summary
Exhibit A – Financial Summary ($ MM) 30-Sep-13 30-June-13 31-Mar-13 31-Dec-12 30-Sep-12 Income Statement Net Interest Income 57.6 50.5 60.7 56.8 56.2 Provision for Credit Losses 16.4 5.5 18.7 21.3 34.4 NII After Provisions 41.2 45.0 42.0 35.5 21.8 Non-Interest Income 18.6 16.8 24.4 29.1 19.7 Non-Int
Slide 14: Exhibit B – Segment Reconciliation
Exhibit B – Segment Reconciliation ($ MM) PR US Doral Growth 1 Recovery Corporate Treasury Total Income Statement Net Interest Income $21.0 $26.5 $47.5 $10.6 $(0.1) $(0.4) $57.6 Non-Interest Income 17.4 1.4 18.8 0.0 0.0 (0.1) 18.6 Total Net Revenue 38.4 27.9 66.3 10.6 (0.1) (0.5) 76.3 Non-Interest E