Loans

12 Months Ended

Dec. 31, 2013

Loans

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

(In thousands of US$)	December 31,
	2013		2012
Corporations:
Private		2,375,178	2,202,613
State-owned		938,878	538,638
Banking and financial institutions:
Private		1,785,798	1,775,938
State-owned		474,193	416,085
Middle-market companies:
Private		574,107	681,912
Sovereign		144	100,370
Total		6,148,298	5,715,556

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

(In thousands of US$)	December 31,
	2013		2012

Banking and financial institutions		2,259,991	2,192,023
Industrial		936,290	1,108,223
Oil and petroleum derived products		1,170,684	894,368
Agricultural		924,251	853,377
Services		398,736	210,925
Mining		10,000	22,122
Sovereign		144	100,370
Others		448,202	334,148
Total		6,148,298	5,715,556

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

(In thousands of US$)	December 31, 2013
Rating ⁽¹⁾	Corporations				Banking and financial institutions				Middle-market companies		Sovereign		Total
	Private		State-owned		Private		State-owned		Private
1-6		2,372,053		938,878		1,785,798		474,193		574,107		144		6,145,173
7		-		-		-		-		-		-		-
8		3,125		-		-		-		-		-		3,125
9		-		-		-		-		-		-		-
10		-		-		-		-		-		-		-
Total		2,375,178		938,878		1,785,798		474,193		574,107		144		6,148,298

(In thousands of US$)	December 31, 2012
Rating ⁽¹⁾	Corporations				Banking and financial institutions				Middle-market companies		Sovereign		Total
	Private		State-owned		Private		State-owned		Private
1-6		2,202,613		538,638		1,775,938		416,085		681,912		100,370	5,715,556
7		-		-		-		-		-		-	-
8		-		-		-		-		-		-	-
9		-		-		-		-		-		-	-
10		-		-		-		-		-		-	-
Total		2,202,613		538,638		1,775,938		416,085		681,912		100,370	5,715,556

⁽¹⁾

Current ratings as of December 31, 2013 and 2012, respectively.

The remaining loan maturities are summarized as follows:

(In thousands of US$)	December 31,
	2013		2012
Current:
Up to 1 month		1,017,794		1,155,222
From 1 month to 3 months		1,749,348		1,475,201
From 3 months to 6 months		949,364		962,377
From 6 months to 1 year		774,803		752,822
From 1 year to 2 years		942,327		662,511
From 2 years to 5 years		711,537		692,884
More than 5 years		-		14,539
		6,145,173		5,715,556

Impaired:
Delinquent with impairment		3,125		-
		3,125		-

Total		6,148,298		5,715,556

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

(In thousands of US$)	December 31,
	2013		2012
Country:
Argentina		189,828		222,159
Belgium		-		30,692
Brazil		1,708,592		1,773,401
Chile		490,869		309,712
Colombia		701,577		450,037
Costa Rica		410,295		196,857
Dominican Republic		190,589		110,688
Ecuador		126,001		173,782
El Salvador		123,076		66,013
France		101,006		59,501
Guatemala		199,873		273,051
Honduras		73,524		70,701
Jamaica		60,784		9,772
Mexico		517,278		495,954
Netherlands		14,867		77,336
Nicaragua		7,823		10,169
Panama		223,505		277,144
Paraguay		102,244		27,060
Peru		580,881		841,032
Spain		-		9,695
Trinidad and Tobago		142,642		119,347
United States of America		28,283		2,925
Uruguay		154,761		108,528
		6,148,298		5,715,556

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

(In thousands of US$)	December 31,
	2013		2012

Fixed interest rates		3,252,331		3,282,876
Floating interest rates		2,895,967		2,432,680
		6,148,298		5,715,556

As of December 31, 2013 and 2012, for both years, 92% of the loan portfolio at fixed interest rates has remaining maturities of less than 180 days.

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

(In thousands of US$)	December 31,
	2013	2012	2011
Loans in non-accrual status
Private corporations	3,125	-	32,000
Total loans in non-accrual status	3,125	-	32,000

Interest which would have been recorded if the loans had not been in a non-accrual status	67	-	2,325
Interest income collected on non-accruing loans	-	2,288	2,375

An analysis of non-accruing loans with impaired balances as of December 31, 2013 and 2012 is detailed as follows:

(In thousands of US$)	December 31, 2013			2013
	Recorded investment	Unpaid principal balance	Related allowance	Average principal loan balance	Interest income recognized
With an allowance recorded
Private corporations	3,125	3,125	954	9	-
Total	3,125	3,125	954	9	-

(In thousands of US$)	December 31, 2012			2012
	Recorded investment	Unpaid principal balance	Related allowance	Average principal loan balance	Interest income recognized
With an allowance recorded
Private corporations	-	-	-	-	2,288
Total	-	-	-	-	2,288

During 2011, the average principal balance of impaired loans amounted to $26,860 thousand.

As of December 31, 2013 and 2012, there were no impaired loans without related allowance.

As of December 31, 2013 and 2012, 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, 2013
	91-120 days	121-150 days	151-180 days	Greater than 180 days	Total Past Due	Delinquent	Current	Total Loans
Corporations	-	-	-	-	-	3,125	3,310,931	3,314,056
Banking and financial institutions	-	-	-	-	-	-	2,259,991	2,259,991
Middle-market companies	-	-	-	-	-	-	574,107	574,107
Sovereign	-	-	-	-	-	-	144	144
Total	-	-	-	-	-	3,125	6,145,173	6,148,298

(In thousands of US$)	December 31, 2012
	91-120 days	121-150 days	151-180 days	Greater than 180 days	Total Past Due	Delinquent	Current	Total Loans
Corporations	-	-	-	-	-	-	2,741,251	2,741,251
Banking and financial institutions	-	-	-	-	-	-	2,192,023	2,192,023
Middle-market companies	-	-	-	-	-	-	681,912	681,912
Sovereign	-	-	-	-	-	-	100,370	100,370
Total	-	-	-	-	-	-	5,715,556	5,715,556

As of December 31, 2013 and 2012, the Bank has credit transactions in the normal course of business with 20% and 29%, respectively, of its Class “A” and “B” stockholders. 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, 2013 and 2012, approximately 12% and 18%, 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, 2013, 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 2013, 2012 and 2011, the Bank sold loans with a book value of $89.5 million, $146.2 million and $9.3 million, respectively, with a net gain of $421 thousand, $1,147 thousand and $64 thousand in 2013, 2012 and 2011, respectively.