IMPAIRMENT ON FIXED ASSETS

9 Months Ended

Sep. 30, 2017

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Asset Impairment Charges [Text Block]

NOTE 15 – IMPAIRMENT OF FIXED ASSETS

The Corporation identified impairment to several of its facilities and equipment in the areas affected by Hurricanes Irma and Maria. Losses related to the damaged facilities and equipment have been charged against earnings in the third quarter of 2017, and included as a component of “Other non-interest income” in the statement of (loss) income. The losses have been determined with information currently available as to carrying amounts of impaired assets and extent of damage sustained. Management has currently identified asset impairments of approximately $0.6 million as of September 30, 2017. If the sustained damage differs from the initial assessments, the result could cause additional charges for estimated losses through the end of 2017. The Corporation maintains insurance policies for casualty losses that provide for replacement value coverage.

Management believes, based on its understanding of the insurance coverages, that recovery of asset impairments identified as of September 30, 2017 is probable.  As such, insurance recoveries of $0.6 million was recorded in the third quarter of 2017, also as a component of “Other non-interest income” in the statement of (loss) income, and the corresponding receivable was included as part of “Other assets” in the statement of financial condition as of September 30, 2017.