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Doral Financial Offers Update on Status of Capital Plan

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Doral Financial
Corporation (NYSE: DRL) ("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.

 

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