Doral Financial Offers Update on Status of Capital Plan

Doral Financial Corporation

("Doral", "Doral Financial" or the "Company"), a financial services company and holding company of Doral Bank, with operations in Puerto Rico and the U.S., announced today that it is updating its capital plan and contingency plan to reflect the recent series of asset sales and status of its litigation against the Government of Puerto Rico. Doral maintains readily available liquidity sources of approximately $1B, which is adequate liquidity to continue to operate its business and serve its clients both in the Puerto Rico and US markets. The recent prompt corrective action letter from the Federal Deposit Insurance Corporation ("FDIC") requiring Doral Bank to file capital restoration and contingency pla ns refers to requirements imposed by the FDIC with respect to formal written documents that must be submitted by the Bank to the FDIC. The contents of the letter did not materially change the requirements imposed on Doral Bank in the prior FDIC prompt corrective action letter sent to Doral Bank on June 12, 2014. During the past months, Doral has announced and executed various asset sales, part of the capital plan to comply with its regulatory requirements. Given that transactions that form the basis for these plans have only recently been completed or are still underway, information for the capital plan is still being developed and finalized. Furthermore, a significant factor for the Company's capital plan is the recovery of $229 million in capital as part of a 2012 closing agreement with the Government of Puerto Rico, which was unilaterally annulled and its resolution is the subject of an ongoing litigation. Recovery of all or a significant portion of the outstanding tax receivables is expected to have a material positive impact on Doral Bank's capital position for purposes of its capital plan. Doral Bank has maintained communication with the FDIC and will continue these efforts to keep the FDIC apprised of the development of its written capital restoration and contingency plans. Once Doral Bank has consummated the last of the transactions that are underway, and which are subject to compliance with regulatory requirements, Doral Bank intends to embody the information already provided to the FDIC in a formal written capital restoration plan and a contingency plan reflecting the then-operating size and business activities of Doral Bank and to submit those written plans to the FDIC to satisfy FDIC requirements.