trending Market Intelligence /marketintelligence/en/news-insights/trending/wemgmxciwsqpese-m_fsiq2 content
Log in to other products

Login to Market Intelligence Platform


Looking for more?

Contact Us

Request a Demo

You're one step closer to unlocking our suite of comprehensive and robust tools.

Fill out the form so we can connect you to the right person.

If your company has a current subscription with S&P Global Market Intelligence, you can register as a new user for access to the platform(s) covered by your license at Market Intelligence platform or S&P Capital IQ.

  • First Name*
  • Last Name*
  • Business Email *
  • Phone *
  • Company Name *
  • City *
  • We generated a verification code for you

  • Enter verification Code here*

* Required

In This List

Puerto Rico's First BanCorp. discloses material weakness

Key Credit Risk Factors When Assessing Banks In The Context Of COVID-19

Street Talk Episode 61 - Investors debate if U.S. banks have enough capital in post COVID world

You Down With PPP? Consider The Risks

Street Talk Episode 60 - You Down With PPP? Consider The Risks

Puerto Rico's First BanCorp. discloses material weakness

First BanCorp. has determined a material weakness in its internal control over financial reporting in connection with how it estimates the allowance for loan losses for commercial loans.

The San Juan, Puerto Rico-based company had failed to incorporate actual historical loss rate for substandard loans in its commercial loan books. The loss rate had instead been based on a blended rate using aggregate historical charge-offs and portfolio balance data for special mention, substandard and doubtful loans.

The related internal control was therefore deemed "not effective," as of Dec. 31, 2017. The deficiency, however, required no adjustment to financial statements. To address the issue, the company is applying a new procedure to determine historical loss rates, implementing a sensitivity analysis using the actual loss rates and establishing sensitivity thresholds, as well as engaging a third-party allowance framework assessor.

First BanCorp. plans to have the review procedures in place by the end of the first quarter and the testing complete within the year.