Doral Financial — Q4 2013 Earnings Presentation
13 slides from Doral Financial's earnings presentation, Mar 21, 2014
Slide 1: Doral Financial Corporation Q4 2013 Investor Presentation
Exhibit 99.2 Doral Financial Corporation Q4 2013 Investor Presentation March 24, 2014
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: 2013 Review
2013 Review Compliance with Regulatory Requirements o Experienced higher operating costs to meet Consent Order (FDIC) and Written Agreement (Federal Reserve) requirements o DFC contributed $131MM of Capital in 2013 to maintain Doral Bank capital ratios above Consent Order requirements Continued Cont
Slide 4: Q4 2013 Results
Q4 2013 Results Q4 results negatively impacted by continued deterioration in the Puerto Rico market and charges related to actions taken to contribute over $81MM from Doral Financial Corporation to Doral Bank. o Net Income (Loss) $(50.9)MM o Provisions $25.8MM o Net Interest Margin 302bps o Tier-1 L
Slide 5: Doral Financial Corporation Profile
Doral Financial Corporation Profile Company Overview Loan Portfolio Composition ($6.7B) $8.5B Asset PR Mortgage & US Commercial Bank Doral Recovery Doral Bank capital ratios continue to exceed regulatory (26%) requirements: o DFC (Holding Company) contributed $81.4MM of capital to Doral Bank during
Slide 6: Doral Operating Segments
Doral Operating Segments Two Operating Segments: High Margin Bank & Special Servicing Group Doral Growth: Mortgage & Commercial Bank Doral Recovery: Puerto Rico Special Servicing Portfolio Taxes & Other PR OREO & Other (11%) (6%) Cash & Securities Puerto Rico Loans (15%) (34%) PR Commercial PR Resid
Slide 7: Q4 Results
Q4 Results Net Loss ($MM) 4Q ’13 Net Interest Income $57.4 $51MM loss driven by credit and compliance costs. Non Interest Income 11.6 Credit Costs totaled over $41MM Total Net Revenue 69.0 o $26MM Provision Expense o $15MM Non-Interest Expenses (OREO, Foreclosure and Credit Provision costs) Non-Inte
Slide 8: Asset Quality
Asset Quality NPAs down $27MM; Recovery efforts driving continued reduction in NPAs NPL & NPA: Q3 vs. Q4 1 1 NPL NPA $ MM Q3 Q4 Change Q3 Q4 Change Residential 431.0 416.9 (14.1) 512.9 509.4 (3.5) Commercial/ 286.5 269.0 (17.4) 330.9 307.3 (23.6) Consumer Total $717.4 $685.9 $(31.5) $843.8 $816.7 $(
Slide 9: Executive Summary
Executive Summary Fourth Quarter significantly impacted by lower asset values and lower mortgage volume DFC contributed $81MM of capital to Doral Bank, but these transactions created a $9MM loss US platform remains highly profitable – now represents 41% of loans and 48% of retail deposits Doral Reco
Slide 10: Investor Relations Contact and Conference Replay Details
Investor Relations Contact and Conference Replay Details Investor Relations: Christopher Poulton – Executive Vice President 212 / 329-3794 [email protected] Media: Lucienne Gigante – SVP Public Relations 787 / 474-6298 [email protected] Conference Call: 2:00 PM EDT
Slide 11: Exhibits
Exhibits
Slide 12: Exhibit A – Financial Summary
Exhibit A – Financial Summary ($ MM) 31-Dec-13 30-Sep-13 30-June-13 31-Mar-13 31-Dec-12 Income Statement Net Interest Income 57.4 57.6 50.5 60.7 56.8 Provision for Credit Losses 25.8 23.6 5.5 18.7 21.3 NII After Provisions 31.6 34.0 45.0 42.0 35.5 Non-Interest Income 11.6 18.6 16.8 24.5 28.8 Non-Int
Slide 13: Exhibit B – Segment Reconciliation
Exhibit B – Segment Reconciliation PR ($ MM) US Doral Growth¹ Recovery Corporate Treasury Total Growth Income Statement Net Interest Income $19.2 $28.0 $47.2 $10.3 $(0.1) $0.0 $57.4 Non-Interest Income 21.6 1.6 23.2 0.0 0.0 (11.6) 11.6 Total Net Revenue 40.8 29.6 70.4 10.3 (0.1) (11.6) 69.0 Non-Inte