Problems with internal reviews of data related to its allowance for loan and lease losses and the related provision for loan and lease losses will prevent Doral Financial Corp. to file its 2013 annual report in a timely manner with the Securities and Exchange Commission, the bank told the regulator Tuesday.
The bank also attributed changes in internal controls over financial reporting for the delay.
“Although management of Doral Financial Corporation has been working diligently to complete all of the required information for its annual report … for the year ended December 31, 2013, the company is unable, without unreasonable effort or expense, to complete the financial statements and related disclosures to be included [by this week’s filing deadline],” the financial institution told the SEC in a document filed Tuesday.
“The company has concluded that its internal control over financial reporting and disclosure controls and procedures were ineffective as of December 31, 2013. While the company has implemented processes and controls to address this material weakness during the fourth quarter, management has determined that sufficient time has not passed to conclude that the weakness has been remediated,” the bank said, adding it expects to be able to complete the work to be able to file the report within the 15-day extension it requested.