Loans

The following table set forth details of the Bank’s loan portfolio:

(In thousands of US$)	December 31,
	2011		2010

Corporations:
Private		2,089,520		1,772,232
State-owned		232,893		312,154
Banking and financial institutions:
Private		1,716,406		1,381,266
State-owned		447,757		319,796
Middle-market companies:
Private		445,731		224,758
Sovereign		27,266		54,126
Total		4,959,573		4,064,332

The composition of the loan portfolio by industry is as follows:

(In thousands of US$)	December 31,
	2011		2010

Banking and financial institutions		2,164,163		1,701,062
Industrial		967,929		894,355
Oil and petroleum derived products		645,875		616,708
Agricultural		730,119		548,894
Mining		37,723		111,639
Services		264,895		61,587
Sovereign		27,266		54,126
Others		121,603		75,961
Total		4,959,573		4,064,332

Loans classified by debtor’s credit quality indicators are as follows:

(In thousands of US$)	December 31, 2011
Rating ⁽¹⁾	Corporations				Banking and financial institutions				Middle-market companies		Sovereign		Total
	Private		State-owned		Private		State-owned		Private
1-6		2,057,520		232,893		1,716,406		447,757		445,731		27,266		4,927,573
7		-		-		-		-		-		-		-
8		24,000		-		-		-		-		-		24,000
9		8,000		-		-		-		-		-		8,000
10		-		-		-		-		-		-		-
Total		2,089,520		232,893		1,716,406		447,757		445,731		27,266		4,959,573

(In thousands of US$)	December 31, 2010
Rating ⁽¹⁾	Corporations				Banking and financial institutions				Middle-market companies		Sovereign		Total
	Private		State-owned		Private		State-owned		Private
1-6		1,744,232		312,154		1,381,266		319,796		223,756		54,126		4,035,330
7		-		-		-		-		-		-		-
8		28,000		-		-		-		1,002		-		29,002
9		-		-		-		-		-		-		-
10		-		-		-		-		-		-		-
Total		1,772,232		312,154		1,381,266		319,796		224,758		54,126		4,064,332

⁽¹⁾

Current ratings as of December 31, 2011 and 2010, respectively.

The remaining loan maturities are summarized as follows:

(In thousands of US$)	December 31,
	2011		2010
Current:
Up to 1 month		395,091		473,836
From 1 month to 3 months		1,110,307		705,147
From 3 months to 6 months		1,095,632		942,989
From 6 months to 1 year		767,526		718,649
From 1 year to 2 years		539,077		463,969
From 2 years to 5 years		1,000,486		703,397
More than 5 years		18,654		27,343
		4,926,773		4,035,330

Delinquent		800		-

Restructured and impaired:
Current balances with impairment		32,000		28,000
Past due balances with impairment		-		1,002
		32,000		29,002

Total		4,959,573		4,064,332

The following table provides a breakdown of loans by country risk:

(In thousands of US$)	December 31,
	2011		2010
Country:
Argentina		389,591		237,062
Brazil		1,852,152		1,582,761
Chile		376,297		328,447
Colombia		734,213		584,549
Costa Rica		109,263		87,537
Dominican Republic		118,275		135,291
Ecuador		21,676		18,121
El Salvador		21,098		39,036
Germany		5,000		-
Guatemala		161,107		92,104
Honduras		45,509		37,518
Jamaica		1,768		64,457
Mexico		416,353		403,829
Netherlands		20,000		-
Nicaragua		9,995		-
Panama		118,526		47,485
Paraguay		30,286		-
Peru		341,784		343,135
Spain		340		-
Trinidad and Tobago		76,340		63,000
Uruguay		110,000		-
		4,959,573		4,064,332

The fixed and floating interest rate distribution of the loan portfolio is as follows:

	December 31,
(In thousands of US$)	2011		2010

Fixed interest rates		2,360,115		2,003,631
Floating interest rates		2,599,458		2,060,701
		4,959,573		4,064,332

As of December 31, 2011 and 2010, 84% and 88%, respectively, of the loan portfolio at fixed interest rates has remaining maturities of less than 180 days.

The following is a summary of information in non-accruing loans, and interest amounts on non-accruing loans:

(In thousands of US$)	December 31,
	2011			2010			2009

Loans in non-accrual status
Private corporations		32,000			28,000			39,000
Private middle-market companies		-			1,002			11,534
Total loans in non-accrual status		32,000			29,002			50,534

Foregone interest revenue at beginning of the year		996			928			-
Interest which would have been recorded if the loans had not been in a non-accrual status		2,325			3,403			1,775
Interest income collected on non-accruing loans		(2,375	)		(3,335	)		(847	)
Foregone interest revenue at end of the year		946			996			928

An analysis of non-accruing loans with impaired balances as of December 31, 2011 and 2010 is detailed as follows:

(In thousands of US$)	December 31, 2011						2011
	Recorded investment		Unpaid principal balance		Related allowance		Average principal loan balance		Interest income recognized
With an allowance recorded
Private corporations		32,000		32,000		14,800		26,860		2,375
Total		32,000		32,000		14,800		26,860		2,375

(In thousands of US$)	December 31, 2010						2010
	Recorded investment		Unpaid principal balance		Related allowance		Average principal loan balance		Interest income recognized
With an allowance recorded
Private corporations		28,000		28,000		11,200		29,151		2,492
Private middle-market companies		1,002		1,002		300		887		-
Total		29,002		29,002		11,500		30,038		2,492

As of December 31, 2011 and 2010, there were no impaired loans without related allowance.

As of December 31, 2011 and 2010, the Bank did not have any troubled debt restructurings.

The following table presents an aging analysis of the loan portfolio:

(In thousands of US$)	December 31, 2011
	91-120 days		121-150 days		151-180 days		Greater than 180 days		Total Past Due		Delinquent		Current		Total Loans
Corporations		-		-		-		-		-		-		2,322,413		2,322,413
Banking and financial institutions		-		-		-		-		-		-		2,164,163		2,164,163
Middle-market companies		-		-		-		-		-		800		444,931		445,731
Sovereign		-		-		-		-		-		-		27,266		27,266
Total		-		-		-		-		-		800		4,958,773		4,959,573

(In thousands of US$)	December 31, 2010
	91-120 days		121-150 days		151-180 days		Greater than 180 days		Total Past Due		Delinquent		Current		Total Loans
Corporations		-		-		-		-		-		-		2,084,386		2,084,386
Banking and financial institutions		-		-		-		-		-		-		1,701,062		1,701,062
Middle-market companies		-		-		-		1,002		1,002		-		223,756		224,758
Sovereign		-		-		-		-		-		-		54,126		54,126
Total		-		-		-		1,002		1,002		-		4,063,330		4,064,332

As of December 31, 2011 and 2010, the Bank has credit transactions in the normal course of business with 29% and 25%, respectively, of its Class “A” and “B” stockholders (see Note 15). All transactions are made based on arm’s-length terms and subject to prevailing commercial criteria and market rates and are subject to all of the Bank’s corporate governance and control procedures. As of December 31, 2011 and 2010, approximately 19% and 15%, respectively, of the outstanding loan portfolio is placed with the Bank’s Class “A” and “B” stockholders and their related parties. As of December 31, 2011, the Bank was not directly or indirectly owned or controlled by another corporation or any foreign government, and no Class “A” or “B” shareholder was the registered owner of more than 3.5% of the total outstanding shares of the voting capital stock of the Bank.

During the years 2011 and 2010, the Bank sold loans with a book value of $9.3 million and $20 million, respectively, with a net gain of $64 thousand and $201 thousand, respectively.