Doral Announces Internet Bank Launch

-- Finalizes Closing of Sale of New York Branch Network --

SAN JUAN, Puerto Rico--(BUSINESS WIRE)--Doral Financial Corporation (DRL), a diversified financial services company, announced today that Doral Bank, FSB (Doral Bank NY), Doral Financials wholly owned New York City-based thrift subsidiary, is in the final stages of launching its new Internet bank, Doral Bank Direct, at www.doralbankdirect.com.

Doral Bank NYs new state-of-the-art Internet banking site, which is expected to go live on or about August 15, 2007, offers a full range of loans and FDIC insured deposit products.

Doral Financial also announced that Doral Bank NY today completed the previously announced sale of its 11 branches in New York City to New York Commercial Bank, the commercial bank subsidiary of New York Community Bancorp. The transaction resulted in a deposit premium to Doral Bank NY of approximately $9.8 million. Doral Bank NY has received the authorization from the Office of Thrift Supervision to distribute a $50 million cash dividend from Doral Bank NY to Doral Financial.

Glen R. Wakeman, Chief Executive Officer and President of Doral Financial, stated, By retaining Doral Bank NYs federal charter, we are now able to capitalize on its strategic value to further move our business franchise into new growth opportunities, consistent with our strategy to become a community bank offering a wide array of products and services. With the well-regarded Doral brand, we are well-positioned to attract deposits, enhance our market presence in our target markets and build the institution.

FORWARD-LOOKING STATEMENTS

This press release contains forward-looking statements. In addition, Doral Financial may make forward-looking statements in its press releases 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 are 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 or similar expressions.

Doral Financial 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 Doral Financials expectations of future conditions or results and are not guarantees of future performance. Forward-looking statements involve inherent risks and uncertainties. A number of important factors could cause actual results to differ materially from those contained in any forward-looking statement. Such factors include, but are not limited to, the following:

  • potential adverse developments from ongoing enforcement actions by bank regulatory agencies;
  • risks associated with recent losses and their adverse impact on Doral Financials capital position;
  • risks associated with the Companys contingent obligations regarding recourse arrangements and representations and warranties in connection with its loan sales;
  • risks arising from the downgrades and potential further downgrades in the credit ratings of Doral Financials securities;
  • risks associated with the potential impact of fluctuating interest rates on Doral Financials net interest margin resulting from the current mismatch in its assets and liabilities;
  • Doral Financials ability to attract new clients and retain existing clients;
  • Doral Financials ability to retain and attract key employees;
  • Doral Financials ability to successfully implement new business strategies;
  • Doral Financials ability to derive sufficient income to realize the benefits of its deferred tax asset;
  • potential adverse developments in the credit quality of Doral Financials loan portfolio;
  • risks associated with the effects of global, national and regional economic and political conditions, including with respect to fluctuations in interest rates;
  • risks arising from worsening economic conditions in Puerto Rico;
  • potential adverse developments in connection with the ongoing grand jury investigation by the U.S. Attorneys Office for the Southern District of New York;
  • risks associated with Doral Financials inability to prepare and timely file financial statements;
  • risks arising from material weaknesses in Doral Financials internal control over financial reporting; and
  • developments in the regulatory and legal environment for financial services companies in Puerto Rico and the United States.

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 those statements.

Investors should carefully consider these factors and the risk factors outlined under Item 1A, Risk Factors, in Doral Financials 2006 Annual Report on Form 10-K for the year ended December 31, 2006 and quarterly report on Form 10-Q for the first quarter of 2007, which are available at the SECs web site at http://www.sec.gov.

Contacts

Doral Financial Corporation
Investor Relations & Media:
787-474-6711
or
Olga Mayoral-Wilson, APR
Executive Vice President
Chief Communications Officer
Corporate Communications
or
Lucienne Gigante
Vice President
Investor Relations
Corporate Communications

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