First BanCorp in Puerto Rico Delays Annual Filing

First BanCorp (FBP) in San Juan, Puerto Rico, is delaying its annual filing because of issues with disclosure requirements.

The $13 billion-asset company said it expects to file its Form 10-K with the Securities and Exchange Commission by April 1. The company said there was a delay because the SEC is requiring it to first file audited financial statements for a joint venture formed in February 2011. The entity, which includes Goldman Sachs (GS) and another group, enabled First BanCorp to shed roughly $250 million in nonperforming loans.

First BanCorp said in a March 19 filing that audited financial statements for the joint venture are not yet available. Under SEC rules, First BanCorp had until March 18 to make the annual filing.

First BanCorp also said it has yet to complete its evaluation of financial reporting controls provided by FIA Card Services as part of FIA's servicing a $406 million cobranded credit card portfolio that First BanCorp bought from Bank of America (BAC) in May. Under the terms of the deal, First BanCorp retained FIA to service the portfolio for 18 months.

Moody's Investors Service on Monday criticized the delay, noting that the company has delayed four annual filings since 2006. "Not only do these disclosure problems highlight internal control weaknesses at [First BanCorp], they call into question [First BanCorp's] ability to manage transactions aimed at improving its weak credit portfolio," Moody's analysts Mark Vassilakis and Joseph Pucella wrote in a note to investors.

A spokesman for First BanCorp declined to comment.

First BanCorp, which earned roughly $30 million last year after losing $82.2 million a year earlier, has been taking steps to strengthen its balance sheet, which became bogged down following the financial crisis by a series of nonperforming loans. In February, First BanCorp began an offer to exchange common stock for about $63 million of outstanding preferred stock.