DORAL FINANCIAL CORP. (DRL, Financial) filed Annual Report for the period ended 2010-12-31.
Doral Financial Corp. has a market cap of $161.6 million; its shares were traded at around $1.27 with and P/S ratio of 0.3.
Banking. Through its principal banking subsidiary, Doral Bank, a Puerto Rico commercial bank (Doral Bank PR), Doral Financial accepts deposits from the general public and institutions, obtains borrowings, originates and invests in loans (primarily residential real estate mortgage loans), invests in mortgage-backed securities as well as in other investment securities, and offers traditional banking services. Approximately 88% of Doral Bank PRs loan portfolio is secured by real estate. Doral Bank PR operates 34 branch offices in Puerto Rico. Mortgage loans are originated through the Companys mortgage banking entity, Doral Mortgage, LLC (Doral Mortgage), which is a subsidiary of Doral Bank PR and is primarily engaged in the origination of mortgage loans on behalf of Doral Bank PR. Loan origination activities are conducted through the branch office network and centralized loan departments. Internal mortgage loan originations are also supplemented by wholesale loan purchases from third parties. As of December 31, 2010, Doral Bank PR had total assets and total deposits of $7.7 billion and $4.5 billion, respectively, including Doral Mortgage, which is part of the mortgage banking segment.
On July 8, 2010, the Company entered into a collateralized loan obligation (CLO) arrangement with a third party in which up to $450.0 million of largely U.S. mainland based commercial loans are pledged to collateralize AAA rated debt of $250.0 million paying three month LIBOR plus 1.85 percent issued by Doral CLO I, Ltd. Doral CLO I, Ltd. is a variable interest entity created to hold the commercial loans and issue the previously noted debt and $200.0 million of subordinated notes to the Company whereby the Company receives any excess proceeds after the payment of the senior debt interest and other fees and charges specified in the indenture agreement. The Company also serves as collateral manager of the assets of Doral CLO I, Ltd. The Company has concluded that it is the primary beneficiary of the CLO, and consolidates Doral CLO I, Ltd., as a subsidiary of Doral Bank PR.
Doral Financial also operates a federal savings bank in New York and since 2010 in northwest Florida, under the name of Doral Bank, FSB (Doral Bank US). Doral Bank US gathers deposits and originates and invests in loans, consisting primarily of interim loans secured by multifamily apartment buildings and other commercial properties, and also invests in investment securities. During 2010, deposits were gathered primarily through an internet-based platform and during the second half of 2010, Doral Bank US started to expand its operations by opening new branches in the New York metropolitan area and in Florida. As of December 31, 2010, Doral Bank US had total assets and total deposits of $219.7 million and $194.5 million, respectively.
On April 19, 2010, the Company announced that it had entered into a definitive Stock Purchase Agreement with various purchasers of the Companys common stock, including certain direct and indirect investors in Doral Holdings, which was the Companys parent company, to raise up to $600.0 million of new equity capital for the Company through a private placement. Shares were sold in two tranches: (i) a $180.0 million non-contingent tranche consisting of approximately 180,000 shares of the Companys Mandatorily Convertible Non-Cumulative Non-Voting Preferred Stock (the Mandatorily Convertible Preferred Stock), $1.00 par value and $1,000 liquidation preference per share and (ii) a $420.0 million contingent tranche consisting of approximately 13.0 million shares of the Companys common stock and approximately 359,000 shares of Mandatorily Convertible Preferred Stock. In addition, as part of the non-contingent tranche, the Company issued into escrow 105,002 shares of the Mandatorily Convertible Preferred Stock with a liquidation value of $105.0 million, to be released to purchasers if the Company did not complete an FDIC assisted transaction.
Doral Financial is engaged in retail banking activities in Puerto Rico through its principal banking subsidiary. Doral Bank PR operates 34 branches in Puerto Rico and offers a variety of consumer loan products as well as deposit products and other retail banking services. Doral Bank PRs strategy is to combine excellent service with an improved sales process to capture new clients and cross-sell additional products and provide solutions to existing clients. As of December 31, 2010, Doral Bank PR and its subsidiaries had a loan portfolio, classified as loans receivable, of approximately $5.1 billion, of which approximately $4.5 billion consisted of loans secured by residential real estate, including real estate development projects, and a loan portfolio classified as loans held for sale, of approximately $199.4 million.
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Doral Financial Corp. has a market cap of $161.6 million; its shares were traded at around $1.27 with and P/S ratio of 0.3.
Highlight of Business Operations:
$45,980,797, approximately, based on the last sale price of $2.44 per share on the New York Stock Exchange on June 30, 2010 (the last business day of the registrants most recently completed second fiscal quarter). For the purposes of the foregoing calculation only, all directors and executive officers of the registrant and certain related parties of such persons have been deemed affiliates.Banking. Through its principal banking subsidiary, Doral Bank, a Puerto Rico commercial bank (Doral Bank PR), Doral Financial accepts deposits from the general public and institutions, obtains borrowings, originates and invests in loans (primarily residential real estate mortgage loans), invests in mortgage-backed securities as well as in other investment securities, and offers traditional banking services. Approximately 88% of Doral Bank PRs loan portfolio is secured by real estate. Doral Bank PR operates 34 branch offices in Puerto Rico. Mortgage loans are originated through the Companys mortgage banking entity, Doral Mortgage, LLC (Doral Mortgage), which is a subsidiary of Doral Bank PR and is primarily engaged in the origination of mortgage loans on behalf of Doral Bank PR. Loan origination activities are conducted through the branch office network and centralized loan departments. Internal mortgage loan originations are also supplemented by wholesale loan purchases from third parties. As of December 31, 2010, Doral Bank PR had total assets and total deposits of $7.7 billion and $4.5 billion, respectively, including Doral Mortgage, which is part of the mortgage banking segment.
On July 8, 2010, the Company entered into a collateralized loan obligation (CLO) arrangement with a third party in which up to $450.0 million of largely U.S. mainland based commercial loans are pledged to collateralize AAA rated debt of $250.0 million paying three month LIBOR plus 1.85 percent issued by Doral CLO I, Ltd. Doral CLO I, Ltd. is a variable interest entity created to hold the commercial loans and issue the previously noted debt and $200.0 million of subordinated notes to the Company whereby the Company receives any excess proceeds after the payment of the senior debt interest and other fees and charges specified in the indenture agreement. The Company also serves as collateral manager of the assets of Doral CLO I, Ltd. The Company has concluded that it is the primary beneficiary of the CLO, and consolidates Doral CLO I, Ltd., as a subsidiary of Doral Bank PR.
Doral Financial also operates a federal savings bank in New York and since 2010 in northwest Florida, under the name of Doral Bank, FSB (Doral Bank US). Doral Bank US gathers deposits and originates and invests in loans, consisting primarily of interim loans secured by multifamily apartment buildings and other commercial properties, and also invests in investment securities. During 2010, deposits were gathered primarily through an internet-based platform and during the second half of 2010, Doral Bank US started to expand its operations by opening new branches in the New York metropolitan area and in Florida. As of December 31, 2010, Doral Bank US had total assets and total deposits of $219.7 million and $194.5 million, respectively.
On April 19, 2010, the Company announced that it had entered into a definitive Stock Purchase Agreement with various purchasers of the Companys common stock, including certain direct and indirect investors in Doral Holdings, which was the Companys parent company, to raise up to $600.0 million of new equity capital for the Company through a private placement. Shares were sold in two tranches: (i) a $180.0 million non-contingent tranche consisting of approximately 180,000 shares of the Companys Mandatorily Convertible Non-Cumulative Non-Voting Preferred Stock (the Mandatorily Convertible Preferred Stock), $1.00 par value and $1,000 liquidation preference per share and (ii) a $420.0 million contingent tranche consisting of approximately 13.0 million shares of the Companys common stock and approximately 359,000 shares of Mandatorily Convertible Preferred Stock. In addition, as part of the non-contingent tranche, the Company issued into escrow 105,002 shares of the Mandatorily Convertible Preferred Stock with a liquidation value of $105.0 million, to be released to purchasers if the Company did not complete an FDIC assisted transaction.
Doral Financial is engaged in retail banking activities in Puerto Rico through its principal banking subsidiary. Doral Bank PR operates 34 branches in Puerto Rico and offers a variety of consumer loan products as well as deposit products and other retail banking services. Doral Bank PRs strategy is to combine excellent service with an improved sales process to capture new clients and cross-sell additional products and provide solutions to existing clients. As of December 31, 2010, Doral Bank PR and its subsidiaries had a loan portfolio, classified as loans receivable, of approximately $5.1 billion, of which approximately $4.5 billion consisted of loans secured by residential real estate, including real estate development projects, and a loan portfolio classified as loans held for sale, of approximately $199.4 million.
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