Doral Bank
Doral Bank Headquarters Address
1451 Franklin D. Roosevelt Ave.
San Juan PR, United States 00920
(view in map)
Doral Bank Photos
About Doral Bank
Doral Financial provides a port for your riches in Puerto Rico. The company's community banking subsidiary, Doral Bank, has about 35 branches in the Commonwealth. It offers traditional banking services as well as residential mortgages through its Doral Mortgage arm. It also provides construction, business, consumer, and other loans. More than 85% of Doral Bank's loan portfolio is secured by real estate. The company sells insurance products through Doral Insurance Agency. Doral Financial also operates banking branches in the US.
Doral Financial is growing its mainland US operations in New York, as well as in northwest Florida. Its branches there mainly provide banking services and originate mostly multifamily residential and other commercial loans. The company has had a lingering presence in the US for several years. It sold its New York metro area operations in 2007, which included about 10 offices, to New York Community Bancorp. The company retained its thrift license and in 2010 the company began opening more Doral Bank US branches in New York City and Florida (with plans to open even more in 2011).
The mainland US is a new target for Doral Financial, which has been hurt by non-performing mortgages in Puerto Rico. The Commonwealth has struggled longer during the recession, which devastated the island's real estate and employment markets. The long-lasting recession in Puerto Rico also has led to a mass exodus of middle-class citizens. Many have moved to Florida or New York.
Big loan losses have cut into Doral's revenues, which have fallen since 2008. As a result of the poor economic condition, the company has limited new construction, commercial, and consumer lending in Puerto Rico. It remains focused on residential mortgage lending there. Doral also is looking to the US to grow its loan portfolio. The company's lending activity has increased in the US as that market improved.
In 2011 Doral Financial launched a US health care lending unit. Doral Healthcare Finance lends to middle-market health care providers such as hospitals and home health agencies.
The company attempted to grow in other ways. In 2010 it made an unsolicited offer to buy fellow Puerto Rican Bank, First BanCorp. But that $96 million bid was rejected. Earlier in 2010 Doral raised capital and tried to acquire any one of three Puerto Rican banks that were shut down by regulators, but other companies won the bids for those failed banks.
Doral Financial has gone through somewhat of a rebuilding phase following some troubles it had earlier in the 2000s. In 2008, the FDIC placed a cease and desist order on Doral Bank for possible violations of the federal Anti-Money Laundering Compliance Program. Federal officials lifted the order later that year after a review of the bank's operations indicated that management had taken steps to alleviate any problems. No fines were issued.
Doral Financial restated its earnings for the years 2000 through 2004 to correct its accounting of derivatives known as interest-only strips, which the company used to hedge its portfolio. The restatement led to shareholder litigation, which the company agreed to settle for $129 million. It also prompted several executive and boardroom changes in the period from 2005 to 2007; Doral Financial's chairman, CEO, and CFO were replaced because of resignations or firings.
Doral Financial is growing its mainland US operations in New York, as well as in northwest Florida. Its branches there mainly provide banking services and originate mostly multifamily residential and other commercial loans. The company has had a lingering presence in the US for several years. It sold its New York metro area operations in 2007, which included about 10 offices, to New York Community Bancorp. The company retained its thrift license and in 2010 the company began opening more Doral Bank US branches in New York City and Florida (with plans to open even more in 2011).
The mainland US is a new target for Doral Financial, which has been hurt by non-performing mortgages in Puerto Rico. The Commonwealth has struggled longer during the recession, which devastated the island's real estate and employment markets. The long-lasting recession in Puerto Rico also has led to a mass exodus of middle-class citizens. Many have moved to Florida or New York.
Big loan losses have cut into Doral's revenues, which have fallen since 2008. As a result of the poor economic condition, the company has limited new construction, commercial, and consumer lending in Puerto Rico. It remains focused on residential mortgage lending there. Doral also is looking to the US to grow its loan portfolio. The company's lending activity has increased in the US as that market improved.
In 2011 Doral Financial launched a US health care lending unit. Doral Healthcare Finance lends to middle-market health care providers such as hospitals and home health agencies.
The company attempted to grow in other ways. In 2010 it made an unsolicited offer to buy fellow Puerto Rican Bank, First BanCorp. But that $96 million bid was rejected. Earlier in 2010 Doral raised capital and tried to acquire any one of three Puerto Rican banks that were shut down by regulators, but other companies won the bids for those failed banks.
Doral Financial has gone through somewhat of a rebuilding phase following some troubles it had earlier in the 2000s. In 2008, the FDIC placed a cease and desist order on Doral Bank for possible violations of the federal Anti-Money Laundering Compliance Program. Federal officials lifted the order later that year after a review of the bank's operations indicated that management had taken steps to alleviate any problems. No fines were issued.
Doral Financial restated its earnings for the years 2000 through 2004 to correct its accounting of derivatives known as interest-only strips, which the company used to hedge its portfolio. The restatement led to shareholder litigation, which the company agreed to settle for $129 million. It also prompted several executive and boardroom changes in the period from 2005 to 2007; Doral Financial's chairman, CEO, and CFO were replaced because of resignations or firings.
Number of Employees in Doral Bank
1,001 to 5,000
Doral Bank Revenue
$100M to $500M (USD)
Industry
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