SOURCE: Doral Financial Corportion

September 09, 2014 18:27 ET

Doral Financial Corporation Announces Asset Sale

SAN JUAN, PR--(Marketwired - Sep 9, 2014) - Doral Financial Corporation (NYSE: DRL) ("Doral", "Doral Financial" or the "Company"), the financial services holding company of Doral Bank, with operations in Puerto Rico and the U.S. mainland, today announced the sale of approximately $430 million in assets resulting in proceeds of approximately $423 million to Doral Bank.

"Today we announced the successful signing of another asset sale transaction, part of our plan to restructure our Company. In all, these asset transactions help Doral continue to progress by de-risking the bank, preserving capital and increasing liquidity," said Glen Wakeman, CEO of Doral Financial Corporation.

Abbey Depositor Inc. ("Depositor"), a Delaware corporation and wholly-owned subsidiary of Doral Bank, closed on the sale of approximately $429,346,919 aggregate principal amount of its PR Mortgage Loan Trust 2014-1 Mortgage Pass-Through Certificates, Series 2014-1 (the "Certificates") to Barclays Inc. (the "Purchaser") pursuant to a certificate purchase agreement dated September 5, 2014 by and among Depositor, the Purchaser, and Doral Bank acting through its New York branch.

The Certificates evidence undivided beneficial ownership interests in PR Mortgage Loan Trust 2014-1 (the "Trust"), which consists of approximately 4,178 seasoned, fixed rate and fully amortizing, first lien residential mortgage loans having a total principal balance of approximately $429,346,919 (the "MortgageLoans"). Doral Bank is a wholly-owned subsidiary of the Company.

The sale of the Certificates to the Purchaser will result in proceeds to Doral Bank of approximately $423.4 million prior to deducting transactional expenses but net of a hold back of approximately $8,586,938 to cover (i) repurchases by Doral Bank of any Mortgage Loans as to which endorsements of the related mortgage notes are not completed within ten (10) business days following September 9, 2014 and (ii) if applicable, reimbursement of any costs and expenses of the Successor Servicer incurred in connection with its actions pursuant to the limited power of attorney executed by Doral Bank in favor of the successor servicer on September 9, 2014.

Doral Financial Corporation was advised by Houlihan Lokey.

FORWARD-LOOKING STATEMENTS

This press release 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, 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 of Puerto Rico, 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.