|By Marketwired .||
|May 1, 2014 07:03 PM EDT||
SAN JUAN, PR -- (Marketwired) -- 05/01/14 -- Doral Financial Corporation (NYSE: DRL) ("Doral", "Doral Financial" or the "Company"), the holding company of Doral Bank, with operations in Puerto Rico and the U.S., said today that it is in the process of developing a revised capital plan intended to enable the Company to remain in compliance with the requirements of its regulators. Among other things, this revised plan is intended to address a recent determination by the Federal Deposit Insurance Corporation (the "FDIC") regarding the treatment of tax receivables from the Government of Puerto Rico, as discussed in further detail in a Form 8-K disclosure filed by the Company today.
"For some time now, as we have indicated previously, we have been developing and evaluating alternative strategic initiatives to respond to significant trends affecting the Company, including the adverse effects on our business from the continued economic problems in Puerto Rico as well as our success in building a US-based business," said Glen Wakeman, CEO and President of Doral Financial Corporation. "In response to the latest regulatory developments, we are now in the process of developing a revised capital plan, which may include a sale of certain performing and non-performing assets and businesses and a modification of our capital structure, in an effort to adequately meet the requirements of our regulators."
He continued, "We are working diligently to resolve these issues and reach an agreement with our regulators that will allow us to move forward in an orderly way. In the meantime, and importantly, we believe Doral has adequate liquidity to finance its operations as we work through this process. Doral, our Board of Directors and the entire management team remain fully committed to serving our valued customers."
Doral noted that its customer deposits are FDIC-insured to the fullest extent of the law for up to $250,000 per depositor.
Additional information can be found in the Form 8-K filed today with the Securities and Exchange Commission at www.sec.gov
This release contains forward-looking statements within the meaning of, and subject to the protection of, the Private Securities Litigation Reform Act of 1995. In addition, Doral Financial Corporation may make forward-looking statements in its other press releases, filings with the Securities and Exchange Commission ("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 interest rate changes, capital markets conditions, capital adequacy and liquidity, and the effect of legal proceedings, tax matters, tax legislation and tax rules, 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 Doral Financial'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.
Doral Financial 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 Doral Financial'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 Doral Financial'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 for the year ended December 31, 2013 which is available on the Company's website at www.doralfinancial.com, as updated from time to time in the Company's periodic and other reports filed and to be filed with the SEC.
Doral Financial Corporation is a bank holding company engaged in banking, mortgage banking and insurance agency activities through its wholly-owned subsidiaries Doral Bank ("Doral Bank"), with operations on the mainland U.S. (New York metropolitan area and northwest region of Florida) and Puerto Rico, Doral Insurance Agency, LLC ("Doral Insurance Agency"), Doral Recovery, Inc. ("Doral Recovery I"), and Doral Properties, Inc. ("Doral Properties"). Doral Bank in turn operates three wholly-owned subsidiaries: Doral Mortgage LLC ("Doral Mortgage"), engaged in residential mortgage lending in Puerto Rico, Doral Money, Inc. ("Doral Money"), engaged in commercial and middle market lending primarily in the New York metropolitan area, and Doral Recovery, LLC ("Doral Recovery II", previously CB, LLC), an entity originally formed to dispose of a real estate project of which Doral Bank took possession during 2005, which now holds commercial loans and certain residential mortgage loans previously held by Doral Bank. Doral Money consolidates three variable interest entities created for the purpose of entering into collateralized loan arrangements with third parties.
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.