Loans

12 Months Ended

Dec. 31, 2014

7. Loans

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

	December 31,
	2014		2013
Corporations:
Private		3,120,005		2,375,178
State-owned		711,955		938,878
Banking and financial institutions:
Private		1,890,605		1,785,798
State-owned		480,331		474,193
Middle-market companies:
Private		483,348		574,107
Sovereign		-		144
Total		6,686,244		6,148,298

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

	December 31,
	2014		2013
Banking and financial institutions		2,370,936		2,259,991
Industrial		1,325,091		936,290
Oil and petroleum derived products		1,013,324		1,170,684
Agricultural		1,132,330		924,251
Services		617,366		398,736
Mining		38,572		10,000
Sovereign		-		144
Others		188,625		448,202
Total		6,686,244		6,148,298

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

	December 31, 2014
					Banking and financial				Middle-market
	Corporations				institutions				companies
Rating ⁽¹⁾	Private		State-owned		Private		State-owned		Private		Sovereign		Total
1-6		3,112,079		711,955		1,890,605		480,331		482,439		-		6,677,409
7		4,801		-		-		-		-		-		4,801
8		-		-		-		-		909		-		909
9		-		-		-		-		-		-		-
10		3,125		-		-		-		-		-		3,125
Total		3,120,005		711,955		1,890,605		480,331		483,348		-		6,686,244

	December 31, 2013
					Banking and financial				Middle-market
	Corporations				institutions				companies
Rating ⁽¹⁾	Private		State-owned		Private		State-owned		Private		Sovereign		Total
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

⁽¹⁾

Current ratings as of December 31, 2014 and 2013, respectively.

The remaining loan maturities are summarized as follows:

	December 31,
	2014		2013
Current
Up to 1 month		947,624		1,017,794
From 1 month to 3 months		1,502,905		1,749,348
From 3 months to 6 months		1,268,478		949,364
From 6 months to 1 year		1,067,073		774,803
From 1 year to 2 years		989,805		942,327
From 2 years to 5 years		870,163		711,537
From 5 years to 7 years		31,361		-
		6,677,409		6,145,173

Delinquent		4,801		-

Impaired:
Delinquent with impairment		-		3,125
Past due with impairment		4,034		-
		8,835		3,125
Total		6,686,244		6,148,298

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

	December 31,
	2014		2013
Country:
Argentina		184,882		189,828
Bolivia		10,000		-
Brazil		1,971,776		1,708,592
Chile		157,309		490,869
Colombia		726,085		701,577
Costa Rica		320,832		410,295
Dominican Republic		243,038		190,589
Ecuador		120,010		126,001
El Salvador		115,830		123,076
France		6,000		101,006
Germany		100,000		-
Guatemala		262,733		199,873
Honduras		93,008		73,524
Jamaica		15,512		60,784
Mexico		868,045		517,278
Netherlands		10,455		14,867
Nicaragua		7,856		7,823
Panama		320,758		223,505
Paraguay		132,479		102,244
Peru		589,724		580,881
Switzerland		50,000		-
Trinidad and Tobago		165,042		142,642
United States of America		55,370		28,283
Uruguay		159,500		154,761
		6,686,244		6,148,298

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

	December 31,
	2014		2013
Fixed interest rates		3,322,817		3,252,331
Floating interest rates		3,363,427		2,895,967
		6,686,244		6,148,298

As of December 31, 2014 and 2013, 89% and 92%, respectively, 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:

	December 31,
	2014		2013		2012
Loans in non-accrual status
Private corporations		3,125		3,125		-
Middle-market companies		909		-		-
Total loans in non-accrual status		4,034		3,125		-

Interest which would have been recorded if the loans
had not been in a non-accrual status		191		67		-
Interest income collected on non-accruing loans		6		-		2,288

An analysis of non-accruing loans with impaired balances as of December 31, 2014 and, 2013 is detailed as follows:

	December 31, 2014						2014
			Unpaid				Average		Interest
	Recorded		principal		Related		principal		income
	investment		balance		allowance		loan balance		recognized
With an allowance recorded
Private corporations		3,125		2,813		2,284		3,125		-
Middle-market companies		909		40		131		339		6
Total		4,034		2,853		2,415		3,464		6

December 31, 2013

2013

Unpaid

Average

Interest

Recorded

principal

income

investment

balance

allowance

loan balance

recognized

With an allowance recorded

Private corporations

3,125

954

Total

3,125

954

As of December 31, 2014 and, 2013, there were no impaired loans without related allowance.

As of December 31, 2014, the Bank have troubled debt restructuring loans. An analysis of the trouble debt restructuring loans is as follows:

			Balance recorded		Balance recorded
	Number of		before		after
	contracts		restructuring		restructuring
Corporations:
Private		-		-		-
State-owned		-		-		-
Banking and financial institutions:
Private		-		-		-
State-owned		-		-		-
Middle-market companies:
Privates		2		890		919
Sovereign		-		-		-
Total		2		890		919

As of December 31, 2014, the quantitative information regarding past-due trouble debt restructuring loans is the following:

	Number of		Balance
	contracts		recorded
Corporations:
Privates		-		-
State-owned		-		-
Banking and finacial institutions:
Privates		-		-
State-owned		-		-
Middle-market companies:
Privates		2		909
Sovereign		-		-
Total		2		909

As of December 31, 2013, the Bank did not have any troubled debt restructurings.

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

	December 31, 2014
	91-120		121-150		151-180		Greater than		Total
	days		days		days		180 days		Past due		Delinquent		Current		Total loans
Corporations		-		-		-		3,125		3,125		4,801		3,824,034		3,831,960
Banking and financial institutions		-		-		-		-		-		-		2,370,936		2,370,936
Middle-market companies		909		-		-		-		909		-		482,439		483,348
Sovereign		-		-		-		-		-		-		-		-
Total		909		-		-		3,125		4,034		4,801		6,677,409		6,686,244

	December 31, 2013
	91-120		121-150		151-180		Greater than		Total
	days		days		days		180 days		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

As of December 31, 2014 and 2013, the Bank has credit transactions in the normal course of business with 15% and 20%, 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, 2014 and 2013, approximately 8% and 12%, 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, 2014, 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 2014, 2013 and 2012, the Bank sold loans on the secondary market with a book value of $515.6 million and $89.5 million and $146.2 millon, respectively, with a net gain of $2.2 million and $0.4 million and $1.1 million, in 2014, 2013 and 2012, respectively.