Doral Financial — Q2 2013 Earnings Presentation
14 slides from Doral Financial's earnings presentation, Aug 16, 2013
Slide 1: Doral Financial Corporation Q2 2013 Investor Presentation
Exhibit 99.1 Doral Financial Corporation Q2 2013 Investor Presentation August 16, 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: Q2 2013 Overview
Q2 2013 Overview Q2 results improved by $2MM versus Q1 Doral Recovery strategy is producing benefits as NPAs fell $54MM during the quarter US Business continues to fuel growth, grew loans to $2.5B PR Mortgage franchise is a significant profit contributor Maintaining Capital in excess of regulatory r
Slide 4: Doral Financial Corporation Profile
Doral Financial Corporation Profile Company Overview Loan Portfolio Composition ($6.7B) $8.5B Asset PR Mortgage & US Commercial Lender Doral Recovery Capital Ratios continue to exceed required levels: (27%) o Tier-1 Leverage Ratio: 9.0% o Total Risk-Based Capital Ratio: 12.5% Doral Growth Book Value
Slide 5: Doral Operating Segments
Doral Operating Segments Two Operating Segments: High Margin Bank & Special Servicing Group 1. Doral Growth: A $6.6B Mortgage & Commercial Bank 2. Doral Recovery: A $1.9B Special Servicing Group Taxes & Other OREO & Other (11%) (7%) Cash & Securities (16%) Puerto Rico Loans (35%) Commercial Resident
Slide 6: Q2 Results
Q2 Results Net Loss ($MM) 2Q ’13 Net Interest Income $50.5 Improved Net Loss by $2.0MM vs. Q1’13 NIM run-rate exceeds 300 bps Non Interest Income 16.8 Non-Interest Income impacted by rate sensitive fair Total Net Revenue 67.3 value assets o ~$5MM MSR and related hedge positions Non-Interest Expense
Slide 7: Doral Growth
Doral Growth 1 Segment Results Overview Doral Growth generated $10MM in Pre-Tax Income ($MM) 2Q 13 NIM remained strong at 340bps Net Interest Income $48.4 Non-Interest Income declined as Quarter end rate increases negatively impacted rate sensitive fair Non Interest Income 18.9 value assets Non-Inte
Slide 8: Doral Recovery
Doral Recovery 1 Segment Results Overview ($MM) 2Q 13 Net Loss improved by $5.2MM in the quarter Lower provisions on stronger NPL performance Net Interest Income $2.0 o Q2 Provision driven by charge-off / valuation adjustments Non Interest Income (2.1) 62% of Recovery Loans are Performing Total Net
Slide 9: Asset Quality
Asset Quality Recovery efforts drove a $54MM reduction in NPAs NPL & NPA: Q1 vs. Q2 1 NPL NPA $ MM Q1 Q2 Change Q1 Q2 Change Residential 436.7 409.7 (27.0) 545.1 527.1 (18.0) Commercial 337.8 303.7 (34.1) 386.7 350.4 (36.3) Total $774.5 $713.4 $(61.1) $931.8 $877.5 $(54.3) Increased NPL Coverage Rat
Slide 10: Executive Summary
Executive Summary Doral Recovery efforts resulted in improved payment performance and lower NPAs US operation provides attractive asset substitution opportunities PR Mortgage franchise is a leader in fixed-rate, affordable mortgages Opportunity to create additional value in PR Mortgage through simpl
Slide 11: Investor Relations Contact and Conference Replay Details
Investor Relations Contact and Conference Replay Details Investor Relations: Christopher Poulton 212 / 329-3794 [email protected] Media: Lucienne Gigante – SVP Public Relations 787 / 474-6298 [email protected] Conference Call: 10.00 AM EDT August 16, 2013 (800) 288-
Slide 12: Exhibits
Exhibits
Slide 13: Exhibit A – Financial Summary
Exhibit A – Financial Summary ($ MM) 30-June-13 31-Mar-13 31-Dec-12 30-Sep-12 30-Jun-12 Income Statement Net Interest Income 50.5 60.7 56.8 56.2 54.8 Provision for Credit Losses 5.5 18.7 21.3 34.4 5.2 NII After Provisions 45.0 42.0 35.5 21.8 49.6 Non-Interest Income 16.8 24.4 29.1 19.7 20.1 Non-Inte
Slide 14: Exhibit B – Segment Reconciliation
Exhibit B – Segment Reconciliation 1 ($ MM) PR US Doral Growth Recovery Corporate Treasury Total Income Statement Net Interest Income $25.7 $23.7 $49.4 $2.0 $(0.1) $(0.9) $50.5 Non-Interest Income 20.0 2.0 22.0 (2.1) 0.0 (3.1) 16.8 Total Net Revenue 45.7 25.7 71.4 (0.1) (0.1) (3.9) 67.3 Non-Interest