SAN JUAN, PR -- (Marketwired) -- 10/01/14 -- Doral Financial Corporation (NYSE: DRL) ("Doral", "Doral Financial" or the "Company"), a financial services company and holding company of Doral Bank, with operations in Puerto Rico and the U.S., announced today that it is updating its capital plan and contingency plan to reflect the recent series of asset sales and status of its litigation against the Government of Puerto Rico.
Doral maintains readily available liquidity sources of approximately $1B, which is adequate liquidity to continue to operate its business and serve its clients both in the Puerto Rico and US markets.
The recent prompt corrective action letter from the Federal Deposit Insurance Corporation ("FDIC") requiring Doral Bank to file capital restoration and contingency plans refers to requirements imposed by the FDIC with respect to formal written documents that must be submitted by the Bank to the FDIC. The contents of the letter did not materially change the requirements imposed on Doral Bank in the prior FDIC prompt corrective action letter sent to Doral Bank on June 12, 2014.
During the past months, Doral has announced and executed various asset sales, part of the capital plan to comply with its regulatory requirements. Given that transactions that form the basis for these plans have only recently been completed or are still underway, information for the capital plan is still being developed and finalized.
Furthermore, a significant factor for the Company's capital plan is the recovery of $229 million in capital as part of a 2012 closing agreement with the Government of Puerto Rico, which was unilaterally annulled and its resolution is the subject of an ongoing litigation. Recovery of all or a significant portion of the outstanding tax receivables is expected to have a material positive impact on Doral Bank's capital position for purposes of its capital plan.
Doral Bank has maintained communication with the FDIC and will continue these efforts to keep the FDIC apprised of the development of its written capital restoration and contingency plans. Once Doral Bank has consummated the last of the transactions that are underway, and which are subject to compliance with regulatory requirements, Doral Bank intends to embody the information already provided to the FDIC in a formal written capital restoration plan and a contingency plan reflecting the then-operating size and business activities of Doral Bank and to submit those written plans to the FDIC to satisfy FDIC requirements.
Doral Financial Corporation is a bank holding company engaged in banking, mortgage banking and insurance agency activities through its wholly-owned subsidiaries, including Doral Bank, with operations on the mainland U.S. (New York metropolitan area and northwest region of Florida) and Puerto Rico. 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
FORWARD-LOOKING STATEMENTS
This communication contains forward-looking statements within the meaning of, and subject to the protection of, the Private Securities Litigation Reform Act of 1995, as amended. In addition, the Company may make forward-looking statements in its other press releases, filings with the Securities and Exchange Commission (the "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 general economic conditions, interest rate changes, capital markets conditions, capital adequacy and liquidity, whether purchase price adjustments or claims of indemnification will be made in connection with the sale of the Initial Commercial Assets or the Assets and whether Doral will have liability in respect of any such claim, and the effect of legal or regulatory proceedings, tax legislation and tax rules, deferred tax assets and related reserves, the ability to collect the monies due to the Company or its subsidiaries from the Commonwealth and the ability of the Company to finalize the terms of settlement with the Commonwealth relating to the 2012 Closing Agreement, 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 the Company'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.
The Company 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 the Company'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 the Company'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, which was filed with the SEC on March 21, 2014 and is available on the Company's website at www.doralbank.com, as updated from time to time with the Company's periodic and other reports filed and to be filed with the SEC.
