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Exhibit 99
January 17, 2001 FOR IMMEDIATE RELEASE
Contact:
Richard F. Bonini Mario S. Levis
Senior Executive Vice President Executive Vice President & Treasurer
Tel: (212) 329-3728 Tel: (787) 749-7108
DORAL FINANCIAL CORPORATION REPORTS
RECORD EARNINGS
FOR THE FOURTH QUARTER AND YEAR ENDED DECEMBER 31, 2000
San Juan, Puerto Rico, January 17, 2001 - Doral Financial Corporation
(NASDAQ: DORL), a diversified financial holding company with banking operations
in the United States and Puerto Rico and the largest residential mortgage lender
in Puerto Rico, reported record results for the fourth quarter and year ended
December 31, 2000.
Net income for the quarter ended December 31, 2000 amounted to a record
$22.7 million, compared to $17.7 million for the 1999 period, an increase of
28%. For the year ended December 31, 2000, Doral Financial earned a record $84.7
million, compared to $67.9 million for the same period of 1999, an increase of
25%. Consolidated earnings per diluted share were $0.48 and $1.85, respectively,
for the fourth quarter and year ended December 31, 2000 as compared to $0.39 and
$1.50, for the corresponding 1999 periods representing an increase of 23% for
both periods.
Net interest income for the fourth quarter and year ended December 31,
2000 was $10.3 million and $42.3 million, respectively, compared to $12.6
million and $49.9 million for the same periods a year ago. With the recent
reduction of interest rates and the potential for further reductions on the
horizon the Company anticipates that it will be able to improve its interest
spread.
For the quarter ended December 31, 2000, net gain on mortgage loan
sales and fees increased to $38.3 million from $19.0 million for the 1999
period, an increase of
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102%. For the year 2000, net gain on mortgage loan sales and fees was $134.3
million, compared to $80.2 million for the corresponding period a year ago, an
increase of 67%. This was due to an increased volume of mortgage loan
originations and sales of mortgages together with higher origination fees.
The volume of mortgage loan production for the fourth quarter 2000 was
$792.0 million, compared to $667.8 million for the comparable 1999 period, an
increase of 19%. The volume of mortgage loan production for the year 2000 was
$3.2 billion compared to $2.7 billion for the respective 1999 period, also an
increase of 19%. The sustained high level of originations reflects the Company's
efforts to continue to better serve the consumer, Doral's ongoing branch
expansion, the Company's strength in new housing production and availability of
a wide range of attractive financial products and services.
Doral Bank, Puerto Rico (PR), which is Puerto Rico's fastest growing
commercial bank, finished the year 2000 with over $2.6 billion in assets and
contributed $8.6 and $25.2 million to the company's consolidated net income
during the fourth quarter and year ended December 31, 2000, respectively, which
represented 38% and 30% of consolidated net income for such periods. The Bank,
which closed the year 2000 with 22 branches, expects to open 10 additional
branches throughout Puerto Rico in 2001. Doral Bank also provides its customers
fast and easy internet access to banking services.
Doral Bank, New York (NY) had an excellent first full year of
operations, having achieved profitability since the first quarter of 2000. Doral
Bank NY is poised to launch an aggressive branch expansion program during 2001
and 2002. Mr. Salomon Levis, the Chairman of the Board and Chief Executive
Officer, noted that, "the acceptance of the Bank by the various local
communities has exceeded the Company's expectations." He also noted that the
Company anticipates continuous growth in both earnings and assets at Doral Bank
NY while maintaining a prudent lending policy based primarily on real estate
lending.
Mr. Levis, commented on the financial results by stating, "The year
2000 was a historic year for Doral Financial." Every major segment of Doral
Financial made important contributions to the Company's excellent results.
Assets under management grew to a new high in excess of $14 billion and record
levels were achieved in earnings, capital, loan production, deposits, mortgage
servicing portfolio, and other areas. Mr. Levis stated that, "we are optimistic
that 2000 has laid the foundation for even greater achievements during 2001 and
subsequent years." Mr. Levis opined that the recent increase in the price of
Doral Financial's Common Stock was evidence that the equity markets have been
recognizing these achievements.
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Mr. Levis noted that a declining interest rate environment, as
currently anticipated, should further bolster the Company's performance by
contributing to such areas as mortgage loan production and net interest income.
These components would also be aided by Doral Financial's continued banking
expansion in New York and Puerto Rico which allows the Company to obtain more
attractive funding through deposits and borrowings and by the continued strong
demand for moderate and low income housing in Puerto Rico, Doral Financial's
principal market. Mr. Levis stated that lower interest rates should also
stimulate the demand for refinancings, which have traditionally represented a
significant proportion of Doral Financial's mortgage production. The Chairman
also felt that mortgage production could be stimulated by the proposal of the
newly elected government in Puerto Rico to sponsor the construction of 50,000
new housing units during the next four years. This is in addition to the
Company's existing pipeline of new housing to be financed with tax-exempt
HUD-FHA/VA mortgage loans at reduced interest rates. The Chairman explained that
Doral Financial's strong asset quality consisting principally of AAA rated
investments and loans secured with residential mortgages should help protect the
Company in a slowing economy.
Mr. Levis closed by saying "We are bullish and excited about Doral
Financial's opportunities and prospects for the year 2001. We look forward to
continued strong performances from our traditional activities as well as
contributions from new activities such as insurance, which we commenced through
Doral Agency, Inc. in December 2000. We are committed to continue to enhance
shareholder value."
Doral Financial's Chief Executive Officer, its Chief Financial Officer
and the Treasurer are available to answer appropriate questions regarding
earnings results as well as other corporate matters at any time convenient to
interested participants. You are welcome to call.
FORWARD LOOKING STATEMENTS
This press release contains certain "forward-looking statements"
concerning the Company's economic future performance. The words or phrases
"expect", "anticipate", "look forward" and similar expressions are meant to
identify "forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995.
The Company wishes to caution readers not to place undue reliance on
any such forward-looking statements, which speak only as of the date made, and
to advise readers that various factors, include regional and national economic
conditions, changes in the interest rates, competitive and regulatory factors
and legislative changes, could affect the
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Company's financial performance and could cause the Company's actual results for
future periods to differ materially from those anticipated or projected.
The Company does not undertake, and specifically disclaims any
obligation, to update any forward-looking statements to reflect occurrences or
unanticipated events or circumstances after the date of such statements.
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DORAL FINANCIAL CORPORATION
CONSOLIDATED STATEMENT OF OPERATIONS
(DOLLARS IN THOUSANDS EXCEPT PER SHARE DATA)
(NASDAQ:DORL)
(UNAUDITED, EXCEPT FOR YEAR ENDED DECEMBER 31, 1999)
STATEMENT OF INCOME
<TABLE>
<CAPTION>
QUARTER ENDED YEAR ENDED
-------------------------------------------- ----------------------------
DECEMBER 31, SEPTEMBER 30, DECEMBER 31,
---------------------------- ------------- ----------------------------
2000 1999 2000 2000 1999
------------ ----------- ------------ ------------ -----------
<S> <C> <C> <C> <C> <C>
Interest income $ 86,714 $ 66,220 $ 87,132 $ 325,545 $ 211,679
Interest expense 76,425 53,586 76,713 283,241 161,795
------------ ----------- ------------ ------------ -----------
Net interest income 10,289 12,634 10,419 42,304 49,884
Provision for loan losses 1,373 995 1,050 4,078 2,626
------------ ----------- ------------ ------------ -----------
Net interest income after provision
for loan losses 8,916 11,639 9,369 38,226 47,258
------------ ----------- ------------ ------------ -----------
Non-interest income:
Net gain on mortgage loan sales and fees 38,297 18,969 40,288 134,339 80,184
Trading account (1,608) 6,282 (7,373) (9,393) 12,914
Gain on sale of investment securities 203 1,261 (277) 3,360 3,068
Servicing income 6,800 6,355 6,615 26,418 24,936
Commissions, fees and other income 2,800 1,740 2,768 9,861 5,809
------------ ----------- ------------ ------------ -----------
Total non-interest income 46,492 34,607 42,021 164,585 126,911
------------ ----------- ------------ ------------ -----------
Non-interest expense:
Compensation and benefits, net 10,713 11,031 10,351 40,514 44,838
Taxes, other than payroll and income taxes 1,011 851 1,180 3,974 2,610
Professional services 1,272 1,634 1,008 4,549 5,473
Telephone 1,045 1,014 983 3,953 3,626
Rent 1,488 1,197 1,502 6,163 4,467
Amortization of servicing assets 4,282 2,714 3,578 14,268 10,988
Depreciation and amortization 2,063 1,365 1,889 7,179 4,534
Maintenance 430 379 481 1,617 1,497
Advertising 2,126 1,861 1,905 7,911 5,875
Other, net 5,422 4,518 4,189 16,531 13,648
------------ ----------- ------------ ------------ -----------
Total non-interest expense 29,852 26,564 27,066 106,659 97,556
------------ ----------- ------------ ------------ -----------
Income before income taxes 25,556 19,682 24,324 96,152 76,613
Income taxes 2,813 1,973 3,286 11,496 8,687
------------ ----------- ------------ ------------ -----------
NET INCOME $ 22,743 $ 17,709 $ 21,038 $ 84,656 $ 67,926
============ =========== ============ ============ ===========
EARNINGS PER SHARE:
Basic $ 0.48 $ 0.40 $ 0.46 $ 1.86 $ 1.55
============ =========== ============ ============ ===========
Diluted $ 0.48 $ 0.39 $ 0.46 $ 1.85 $ 1.50
============ =========== ============ ============ ===========
WEIGHTED COMMON SHARES OUTSTANDING:
Basic 42,364,930 40,428,920 42,362,634 41,887,708 40,428,920
============ =========== ============ ============ ===========
Diluted 42,879,327 42,402,209 42,571,789 42,093,509 42,421,477
============ =========== ============ ============ ===========
</TABLE>
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DORAL FINANCIAL CORPORATION
Selected Balance Sheet And Operating Data
(Dollars in Thousands, Except Per Share Data)
(Nasdaq:DORL)
<TABLE>
<CAPTION>
AS OF
---------------------------------------------
DECEMBER 31, SEPTEMBER 30, DECEMBER 31,
------------ ------------- ------------
2000 2000 1999
------------ ------------- ------------
(UNAUDITED) (UNAUDITED) (AUDITED)
<S> <C> <C> <C>
BALANCE SHEET DATA
Money market investments $ 399,320 $ 269,261 $ 370,236
Mortgage loans held-for-sale 1,354,605 1,336,314 1,015,703
Trading securities, at fair value 1,101,938 1,017,419 862,698
Securities held-to-maturity 1,504,738 1,543,644 1,509,060
Securities available-for-sale 235,949 213,688 66,325
Loans receivable, net 398,191 369,366 231,184
Total Assets 5,463,386 5,192,292 4,537,343
Stockholders' Equity 503,567 471,520 384,982
</TABLE>
<TABLE>
<CAPTION>
FOR THE YEAR ENDED
DECEMBER 31,
--------------------------------
2000 1999
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<S> <C> <C>
OPERATING DATA
Mortgage Loan Production $ 3,174,000 $ 2,722,000
Loan Servicing Portfolio $ 8,804,706 $ 7,633,181
</TABLE>
<TABLE>
<CAPTION>
FOR THE QUARTER ENDED FOR THE YEAR ENDED
DECEMBER 31, DECEMBER 31,
--------------------- --------------------
2000 1999 2000 1999
------- ------ ------ ------
<S> <C> <C> <C> <C>
FINANCIAL RATIOS
Return on average assets 1.69% 1.63% 1.66% 1.92%
Return on average common equity 22.67% 21.80% 23.04% 21.92%
Common stock dividend payout ratio 21.03% 20.51% 20.50% 20.00%
<CAPTION>
FOR THE QUARTER ENDED FOR THE YEAR ENDED
DECEMBER 31, DECEMBER 31,
--------------------- --------------------
2000 1999 2000 1999
------- ------- ------ ------
<S> <C> <C> <C> <C>
Cash Dividends Per Share
Common $ 0.10 $ 0.08 $ 0.38 $ 0.30
Cumulative Preferred (1) $ -- $20.00 $20.00 $80.00
Noncumulative Preferred, Series A (2) $ 0.88 $ 0.88 $ 3.52 $ 3.00
Noncumulative Preferred, Series B (3) $ 0.52 $ -- $ 0.70 $ --
</TABLE>
(1) Represents dividends on 8,460 shares of the Company's 8% Convertible
Cumulative Preferred Stock (Liquidation Preference $1,000 per share)
which were privately placed with a local financial institution and
converted into 1,933,714 shares of Common Stock on March 31, 2000.
(2) Represents dividends on 1,495,000 outstanding shares of the Company's
7% Non-Cumulative Monthly Income Preferred Stock (Liquidation
Preference $50 per share).
(3) Represents dividends on 2,000,000 outstanding shares of the Company's
8.35% Non-Cumulative Monthly Income Preferred Stock (Liquidation
Preference $25 per share).
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