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Investment securities

12 Months Ended

Dec. 31, 2012

Investments, Debt and Equity Securities [Abstract]

6.	Investment securities

Securities available-for-sale

The amortized cost, related unrealized gross gain (loss) and fair value of securities available-for-sale by country risk and type of debt, are as follows:

	December 31, 2012
(In thousands of US$)	Amortized Cost		Unrealized Gross Gain		Unrealized Gross Loss		Fair Value

Corporate debt:
Brazil		13,581		158		-		13,739
Colombia		986		60		-		1,046
Chile		1,967		87		-		2,054
Peru		530		17		-		547
		17,064		322		-		17,386

Sovereign debt:
Brazil		28,783		1,965		-		30,748
Colombia		15,489		-		199		15,290
Chile		1,061		1		-		1,062
Honduras		15,986		224		-		16,210
Mexico		20,553		1,779		-		22,332
Panama		37,845		1,828		-		39,673
Venezuela		39,548		801		33		40,316
		159,265		6,598		232		165,631

Total		176,329		6,920		232		183,017

	December 31, 2011
(In thousands of US$)	Amortized Cost		Unrealized GrossGain		Unrealized Gross Loss		Fair Value

Corporate debt:
Brazil		45,937		152		2,094		43,995
Colombia		28,169		89		-		28,258
Peru		14,916		29		-		14,945
		89,022		270		2,094		87,198
Sovereign debt:
Brazil		44,541		2,401		376		46,566
Colombia		59,204		1,682		230		60,656
Guatemala		5,469		-		19		5,450
Honduras		16,384		-		166		16,218
Mexico		63,094		2,456		62		65,488
Panama		46,796		2,227		61		48,962
Peru		25,487		602		-		26,089
Venezuela		59,291		577		195		59,673
		320,266		9,945		1,109		329,102

Total		409,288		10,215		3,203		416,300

As of December 31, 2012 and 2011, securities available-for-sale with a carrying value of $152.3million and $375.5 million, respectively, were pledged to secure repurchase transactions accounted for as secured financings.

The following table discloses those securities that have had unrealized losses for less than 12 months and for 12 months or longer:

	December 31, 2012
(In thousands of US$)	Less than 12 months				12 months or longer				Total
	Fair Value		Unrealized Gross Losses		Fair Value		Unrealized Gross Losses		Fair Value		Unrealized Gross Losses

Sovereign debt		10,188		79		10,009		153		20,197		232
		10,188		79		10,009		153		20,197		232

	December 31, 2011
(In thousands of US$)	Less than 12 months				12 months or longer				Total
	Fair Value		Unrealized Gross Losses		Fair Value		Unrealized Gross Losses		Fair Value		Unrealized Gross Losses

Corporate debt		33,366		2,094		-		-		33,366		2,094
Sovereign debt		110,589		1,109		-		-		110,589		1,109
		143,955		3,203		-		-		143,955		3,203

Gross unrealized losses are related mainly to changes in market interest rates and other market factors and not due to underlying credit concerns by the Bank about the issuers. The sovereign debt that shows an unrealized gross loss for more than twelve months relates to a counterparty whose payment performance is and continues to be strong. The price of the bond in question has seen a recovery during 2012. Historically, this counterparty has not failed to perform on its obligations. As of December 31, 2012 the Bank does not intent to sell and will not be required to sell this security available-for-sale showing gross unrealized losses before the recovery of its amortized cost. As a result, the Bank does not consider this exposure to be other-than temporary impaired.

The following table presents the realized gains and losses on sale of securities available-for-sale:

(In thousands of US$)	Year ended December 31,
	2012			2011			2010

Gains		6,141			3,825			2,346
Losses		(111	)		(412	)		-
Net		6,030			3,413			2,346

The amortized cost and fair value of securities available-for-sale by contractual maturity as of December 31, 2012, are shown in the following table:

(In thousands of US$)	Amortized Cost		Fair Value

Due within 1 year		34,574		34,815
After 1 year but within 5 years		133,298		139,661
After 5 years but within 10 years		8,457		8,541
		176,329		183,017

Securities held-to-maturity

The amortized cost, related unrealized gross gain (loss) and fair value of securities held-to-maturity by country risk and type of debt are as follows:

	December 31, 2012
(In thousands of US$)	Amortized Cost		Unrealized Gross Gain		Unrealized Gross Loss		Fair Value

Corporate debt:
Panama		12,660		-		-		12,660

Sovereign debt:
Colombia		13,011		4		3		13,012
Honduras		6,442		9		19		6,432
Panama		2,000		45		-		2,045
		21,453		58		22		21,489

Total		34,113		58		22		34,149

	December 31, 2011
(In thousands of US$)	Amortized Cost		Unrealized Gross Gain		Unrealized Gross Loss		Fair Value

Corporate debt:
Panama		7,050		-		-		7,050

Sovereign debt:
Colombia		13,015		40		-		13,055
Honduras		4,471		1		-		4,472
Panama		2,000		60		-		2,060
		19,486		101		-		19,587

Total		26,536		101		-		26,637

Securities that show gross unrealized losseshave had losses for less than 12 months. These losses are related mainly to changes in market interest rates and other market factors and not due to underlying credit concerns by the Bank about the issuers therefore, such losses are considered temporary.

The amortized cost and fair value of securities held-to-maturity by contractual maturity as of December 31, 2012, are shown in the following table:

(In thousands of US$)	Amortized Cost		Fair Value

Due within 1 year		18,960		19,014
After 1 year but within 5 years		15,153		15,135
		34,113		34,149

As of December 31, 2012 and 2011, securities held-to-maturity with a carrying value of $19.4 million and $17.5 million, respectively, were pledged to secure repurchase transactions accounted for as secured financings.