For each of the following cases, indicate why management and the auditors determined that the control deficiency was a material weakness. Case 1: In our assessment of the effectiveness of internal control over financial reporting as of December 31, 2015, we identified a material weakness over the accounting for and disclosure of derivatives associated with warrant instruments primarily because we lacked technical expertise and adequate procedures to develop and document our common stock warrant analysis on the applicability of ASC 815 "Derivatives and Hedging-Contracts in Entity's Own Equity" to our warrant instruments. Because of the lack of technical expertise and adequate procedures to develop and document our analysis of the applicability of ASC 815,which was characterized as a material weakness with regard to accounting for warrants, management has concluded that we did not maintain effective internal control over financial reporting as of December 31, 2015, based on the criteria in Internal Control-Integrated Framework. Case 2: In the course of making our assessment of the effectiveness of internal control over financial reporting, we identified a material weakness in our internal control over financial reporting. The preparation and review process for the calculation of the tax provision was inadequate, which led to errors in the computation of deferred tax assets and related income tax benefit. Case 3: Management identified a material weakness in First Bank Company's system of internal control over financial reporting with respect to ensuring the appropriate calculation of its allowance for loan losses. Specifically, during a process enhancement to the model that calculates the allowance for loan losses, the quarterly average loss rate was not annualized due to a computational error. Control procedures in place for reviewing the quantitative model for calculating the allowance for loan losses did not identify this error in a timely manner, and, as such, the Company did not have adequately designed procedures.