(Afree translation of the original version in portuguese)
Individual and Consolidated Financial Information under GAAP for the quarter ended on
September 30, 2014 and year ended on December 31, 2013 and Independent Auditors’
Report.
Banco Pine S.A.
PricewaterhouseCoopers Auditores Independentes
(A free translation of the original in Portuguese)
Banco Pine S.A. and
Subsidiaries
Quarterly Information (ITR) at
September 30, 2014
and Report on Review of
Quarterly Information
(A free translation of the original in Portuguese)
Report on Review of Quarterly Information
To the Board of Directors and Shareholders
Banco Pine S.A.
Introduction
We have reviewed the accompanying parent company and consolidated interim accounting
information of Banco Pine S.A. and Banco Pine S.A. and its subsidiaries, included in the Quarterly
Information Form (ITR) for the quarter ended September 30, 2014, comprising the balance sheet at
that date and the statements of operations and statements of comprehensive income for the quarter
and nine-month period then ended and the statements of changes in equity and cash flows for the
nine-month period then ended, and a summary of significant accounting policies and other
explanatory information.
Management is responsible for the preparation of the interim financial information in accordance with
accounting practices adopted in Brazil, applicable to institutions authorized to operate by the Brazilian
Central Bank (BACEN), and the standards issued by the Brazilian Securities Commission (CVM),
applicable to the preparation of the Quarterly Information (ITR). Our responsibility is to express a
conclusion on this interim financial information based on our review.
Scope of the review
We conducted our review in accordance with Brazilian and International Standards on Reviews of
Interim Financial Information (NBC TR 2410 – Review of Interim Financial Information Performed
by the Independent Auditor of the Entity and ISRE 2410 – Review of Interim Financial Information
Performed by the Independent Auditor of the Entity, respectively). A review of interim information
consists of making inquiries, primarily of persons responsible for the entity’s financial and accounting
matters, and applying analytical and other review procedures. A review is substantially less in scope
than an audit conducted in accordance with Brazilian and International Standards on Auditing and
consequently does not enable us to obtain assurance that we would become aware of all significant
matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
Conclusion on the interim information
Based on our review, nothing has come to our attention that causes us to believe that the
accompanying interim accounting information included in the quarterly information referred to above
has not been prepared, in all material respects, in accordance with accounting practices adopted in
Brazil, applicable to the preparation of the Quarterly Information by institutions authorized to operate
by the Brazilian Central Bank (BACEN) and presented in accordance with the standards issued by the
Brazilian Securities Commission (CVM).
Other matters
Interim statements of value added
We have also reviewed the parent company and consolidated interim statements of value added for the
quarter and nine-month period ended September 30, 2014 These statements are the responsibility of
management, and are required to be presented in accordance with standards issued by the Brazilian
Securities Commission (CVM) applicable to the preparation of Quarterly Information (ITR). These
statements have been submitted to the same review procedures described above and, based on our
review, nothing has come to our attention that causes us to believe that they have not been prepared,
in all material respects, in a manner consistent with the interim accounting information taken as a
whole.
Sáo Paulo, November 7, 2014
PricewaterhouseCoopers
Auditores Independentes
CRC 28P000160/0-5
Edison Arisa Pereira
Contador CRC 18P127241/0-0
BB PINE
Comments on 3Q14 Performance
PINE is a wholesale bank focused on establishing and maintaining long-term relationships with corporate clients and investors. Its strategy is
based on knowing its clients well and understanding their businesses and potential in order to build customized financial solutions and
alternatives. This strategy requires product diversity, highly qualified human capital and efficient and agile risk management, which are areas
where the Bank is consistently evolving.
Performance
ROAE reached 6.0%and Net Income R$19 million in the 3Q14.
R$ million
Total Loan Portifolio* Total Funding Shareholder’s Equity
2.5% +9.4% +0.7%
+2.
> 7? -_-
9,537 9,800 7,894 8,638 1,264 1,273
Sept-13 Sept-14 Sept -13 Sept-14 Sept-13 Sept-14
1 Includes Stand by LCs, Bank Guarantees, Credit Securities to be Received and Securities (bonds, CRIs, eurobonds and fund shares)
xxCredit
Expanded loan portfolio totaled R$9,800 million on September 30, 2014, representing a decrease of 2.3% Q0Q and an increase of 2.8% YoY. The
average term of the credit portfolio was 13 months in September 2014.
xxFunding
Total funding reached R$8,638 million on September 2014, 0.9% up from QoQ and 9.4%YoY. The weighted average term of funding transactions
reached 16 months.
+Capital Structure (BIS)
In the quarter, the capital adequacy ratio (BIS) stood at 13.8% above the regulatory minimum level of 11% The Tier | capital represented 12.4%
while Tier Il represented 1.4%
eDistribution of Profits / Interest on Own Capital and Dividends
On October 10, 2014, Pine paid a total of R$16.9 million as interest on own capital, which corresponds to a gross payout per share of R$0.14.
This amount represents a dividend yield of 9.7% Since 2008, Pine distributes proceeds in a quarterly basis.
eInvestor Relations
Pine makes information available to shareholders via its corporate website (www.pine.com/ir), electronic bulletins and quarterly reports, as
well as through its Investor Relations department (phone: +55 (11) 3372-5343, e-mail: irepine.com).
eIndependent Auditors
In compliance with CVM Instruction 381, of January 14, 2003, Pine reports that did not hire from the independent auditors any other services
than those related to the audit works for the period from January to September, 2014. Pine adopts the procedure of limiting the services
rendered by its independent auditors so as to ensure the auditor’s independence and objectivity pursuant to Brazilian and international
standards.
xxThanks
Pine thanks our shareholders, clients, suppliers and employees for their trust and partnership dedicated during the quarter.
Sáo Paulo, November 11, 2014
Board of Directors
Executive Directors
PINE
BANCO PINE S.A. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS AS AT SEPTEMBER 30, 2014 AND DECEMBER 31,2013
(In thousands of reais)
E
CURRENT ASSETS 7.259.890 6.775.528 7.184.502 6.919.289
Cash 4. 64.628 147.466 70.871 157.168
Short-term interbank investments 5. 1.529.109 667.692 1.529.132 668.002
Open market investments 1.446.196 183.922 1.446.219 184.232
Interbank deposits 14.167 58.199 14.167 58.199
Foreign currency investments 68.746 425.571 68.746 425.571
Marketable securities and derivative financial instruments 1.251.841 1.804.111 1.155.573 1.918.995
Own portfolio 6. a) 340.065 1.021.113 243.797 1.135.997
Subject to repurchase agreements 6.a) 644.584 551.072 644.584 551.072
Derivative financial instruments 6. b) 244.958 227.376 244,958 227.376
Subject to guarantees 6.a) 22.234 4.550 22.234 4.550
Interbank accounts 728 621 728 621
Unsettled payments and receipts 80 – 80 –
Restricted deposits:
Brazilian Central Bank 648 621 648 621
Loan operations 7. 3.384.952 3.133.477 3.394.699 3.145.959
Loan operations – private sector 3.115.896 2.917.156 3.125.723 2.929.833
Loan operations – public sector – 365 – 365
Credit transactions subject to transfer 7.i) 336.334 305.996 336.334 305.996
(-) Allowance for loan losses (67.278) (90.040) (67.358) (90.235)
Other receivables 908.897 854.969 913.746 861.352
Foreign exchange portfolio 8. 663.658 525.129 663.658 525.129
Income receivable 28.992 26.958 28.992 26.958
Negotiation and intermediation of securities 8.418 65.415 8.418 67.008
Sundry 9. 222.701 248.971 227.550 253.761
(-) Allowance for other loan losses (14.872) (11.504) (14.872) (11.504)
Other assets 119.735 167.192 119.753 167.192
Non-operating assets 115.356 162.764 115.356 162.764
Prepaid expenses 4.379 4.428 4.397 4.428
LONG-TERM RECEIVABLES 3.606.662 3.677.856 3.575.243 3.521.586
Marketable securities and derivative financial instruments 919.689 799.680 885.197 595.750
Own portfolio 6. a) 579.012 402.119 544.520 198.189
Derivative financial instruments 6. b) 208.330 287.982 208.330 287.982
Subject to guarantees 6.a) 132.347 109.579 132.347 109.579
Loan operations 7. 2.069.151 2.374.308 2.069.151 2.416.359
Loan operations – private sector 2.033.159 2.371.032 2.033.159 2.420.402
Loan operations – public sector – 18.626 – 18.626
Credit transactions subject to transfer 7.5) 84.683 60.538 84.683 60.538
(-) Allowance for loan losses (48.691) (75.888) (48.691) (83.207)
Other receivables 553.651 492.247 556.562 497.821
Foreign exchange portfolio 8. 118.737 – 118.737 –
Income receivable 42.463 29.987 42.463 29.987
Negotiation and intermediation of securities 1.739 – 1.739 –
Deposits in guarantee 15. (c) (d) 39.317 206.615 39.568 207.809
Sundry 9. 352.022 256.343 354.682 260.723
(-) Allowance for other loan losses (627) (698) (627) (698)
Other assets 64.171 11.621 64.333 11.656
Non-operating assets 55.501 – 55.501 –
Prepaid expenses 8.670 11.621 8.832 11.656
PERMANENT ASSETS 81.472 139.672 125.461 103.791
Investments 61.862 113.260 105.099 76.509
Investments subsidiaries – Abroad 10.a) 6.234 9.047 – –
Investments in local subsidiaries 10.a) 55.628 104.213 – –
Other investments 10.b) – – 105.099 76.509
Property and equipment in use t1.a) 18.699 24.984 19.204 25.619
Facilities, furniture and equipment in use 13.217 13.216 13.833 13.806
Other fixed assets in use 21.300 29.140 21.577 29.405
Accumulated depreciation (15.818) (17.372) (16.206) (17.592)
Intangible assets 11.b) 911 1.428 1.158 1.663
Expenses for acquisition and development of software 9.587 9.587 9.834 10.288
Accumulated amortization (8.676) (8.159) (8.676) (8.625)
TOTAL ASSETS 10.948.024 10.593.056 10.885.206 10.544.666
PINE
BANCO PINE S.A. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS AS AT SEPTEMBER 30, 2014 AND DECEMBER 31,2013
(In thousands of reais)
E
NN AZ
CURRENT LIABILITIES 6.248.543 6.029.282 5.882.662 5.633.178
Deposits 12. 1.972.758 2.104.966 1.941.763 2.045.453
Demand deposits 30.449 23.332 29.736 23.260
Interbank deposits 62.247 77.846 62.247 73.665
Time deposits 1.880.062 2.003.788 1.849.780 1.948.528
Funds obtained in the open market 13. 634.552 547.579 623.945 508.792
Own portfolio 634.552 547.579 324.723 333.529
Third-party portfolio – – 299.222 175.263
Funds from acceptance and issuance of securities 1.098.468 1.301.013 1.097.091 1.301.013
Real estate letters of credit 17.a) 240.354 270.317 240.354 270.317
Agribusiness letters of credit 17.a) 529.541 410.269 528.164 410.269
Financial bills 17.a) 312.632 599.368 312.632 599.368
Securities issued abroad 17.b) 15.941 21.059 15.941 21.059
Interbank accounts 79 25 79 25
Unsettled payments and receipts 70 – 70 –
Correspondent banks 9 25 9 25
Interdepartmental accounts 8.564 15.072 8.564 15.072
Third-party funds in transit 8.564 15.072 8.564 15.072
Borrowings and onlendings 16. 1.862.431 1.389.642 1.862.431 1.389.642
Foreign borrowings 1.214.753 1.045.727 1.214.753 1.045.727
Local onlendings – official institutions 594.141 341.050 594.141 341.050
Foreign onlendings 53.537 2.865 53.537 2.865
Derivative Financial Instruments 6.b) 148.756 160.353 148.756 160.353
Derivative financial instruments 148.756 160.353 148.756 160.353
Other liabilities 522.935 510.632 200.033 212.828
Collection and payment of taxes and similar 14.a) 1.562 1.163 1.562 1.163
Foreign exchange portfolio 8. 127.114 94.959 127.114 94.959
Social and statutory payables 2.161 6.432 2.161 6.432
Tax and social security contributions 14.b) 18.616 20.368 21.848 25.107
Negotiation and intermediation of securities 11.205 27.602 18.843 39.922
Subordinated debt 18. 7.147 14.150 7.147 14.150
Sundry 14.c) 355.130 345.958 21.358 31.095
Liabilities for sale and transfer of financial assets 7.j) 336.334 317.327 – –
Other 18.796 28.631 21.358 31.095
LONG-TERM LIABILITIES 3.348.294 3.222.867 3.651.357 3.570.581
Deposits 12. 824.274 1.159.366 802.409 1.110.748
Interbank deposits 35.830 16.093 35.787 16.053
Time deposits 788.444 1.143.273 766.622 1.094.695
Funds from acceptance and issuance of securities 862.482 436.686 862.482 436.686
Real estate letters of credit 17.a) 101.838 10.379 101.838 10.379
Agribusiness letters of credit 17.a) 69.866 28.073 69.866 28.073
Financial bills 17.a) 522.568 138.999 522.568 138.999
Securities issued abroad 17.b) 168.210 259.235 168.210 259.235
Borrowings and onlendings 16. 1.050.385 1.107.431 1.050.385 1.107.431
Foreign borrowings 73.530 304.538 73.530 304.538
Local onlendings – official institutions 697.395 800.058 697.395 800.058
Foreign onlendings 279.460 2.835 279.460 2.835
Derivative financial instruments 6.b) 16.083 30.480 16.083 30.480
Derivative financial instruments 16.083 30.480 16.083 30.480
Other liabilities 595.070 488.904 919.998 885.236
Foreign exchange portfolio 8. 122.072 – 122.072 –
Tax and social security contributions 14.b) 58.987 63.244 58.987 63.251
Subordinated debt 18. 305.217 346.061 305.217 346.061
Diversas 14.c) 108.794 79.599 433.722 475.924
Liabilities for sale and transfer of financial assets 7.j) 84.683 60.538 – –
Provision for contingent liabilities 15. d) 22.809 11.922 22.809 11.922
Obligations for shares of investment funds – – 409.611 456.863
Other 1.302 7.139 1.302 7.139
DEFERRED INCOME 77.768 68.499 77.768 68.499
EQUITY 19. 1.273.419 1.272.408 1.273.419 1.272.408
Capital 1.112.259 1.112.259 1.112.259 1.112.259
Local residents 981.692 979.805 981.692 979.805
Foreign residents 130.567 132.454 130.567 132.454
Capital reserves – 14.032 – 14.032
Revenue reserves 198.302 184.965 198.302 184.965
Carrying value adjustments (20.112) (16.765) (20.112) (16.765)
(-) Treasury shares (17.030) (22.083) (17.030) (22.083)
TOTAL LIABILITIES AND EQUITY 10.948.024 10.593.056 10.885.206 10.544.666
The accompanying notes are an integral part of these consolidated financial statements.
PINE
BANCO PINE S.A. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME FOR THE PERIODS ENDED SEPTEMBER 30, 2014 AND 2013
(In thousands of reais, except net income per share)
Individual [AE
PES 2013
3rd Quarter Accumulated EL RM CI EL RE MES EL RE MES
INCOME FROM FINANCIAL INTERMEDIATION 434.380 972.410 290.650 851.116 432.706 958.815 297.951 871.942
Loan operations 20.a) 221.425 580.468 151.312 393.743 222.026 583.829 154.571 405.024
Marketable securities 20.b) 80.562 262.116 66.767 190.201 78.287 245.160 70.809 199.746
Derivative financial instruments 6.b) 87.353 103.937 32.612 143.207 87.353 103.937 32.612 143.207
Foreign exchange transactions 45.040 25.889 39.959 123.965 45.040 25.889 39.959 123.965
EXPENSES FOR FINANCIAL INTERMEDIATION (336.660) (730.628) (220.971) (651.223) (318.793) (665.712) (220.800) (648.760)
Funds obtained in the market 20.c) (206.250) (487.878) (146.714) (442.620) (207.561) (488.012) (145.834) (439.448)
Borrowings and onlendings 20.d) (133.321) (173.534) (40.494) (132.433) (133.321) (173.534) (40.494) (132.433)
Sales or transfer of financial assets (19.028) (57.616) (1.871) (1.871) – – – –
Allowance for loan losses 21.939 (11.600) (31.892) (74.299) 22.089 (4.166) (34.472) (76.879)
GROSS PROFIT FROM FINANCIAL INTERMEDIATION 97.720 241.782 69.679 199.893 113.913 293.103 77.151 223.182
OPERATING INCOME (EXPENSE) (97.852) (172.196) (28.220) (88.656) (112.090) (218.671) (32.349) (104.134)
Income from services rendered 20.e) 17.888 54.536 22.246 64.222 25.074 68.530 31.678 90.319
Income from bank charges 765 1.593 876 2.086 765 1.593 876 2.086
Personnel expenses 20.1) (22.522) (64.896) (20.763) (63.023) (24.252) (69.900) (22.871) (66.863)
Other administrative expenses 20.9) (20.198) (63.903) (23.549) (67.585) (21.647) (67.990) (24.568) (69.421)
Tax expenses 20.h) (2.147) (6.936) (2.616) (8.310) (2.817) (8.231) (3.567) (10.979)
Equity in the results of investees 10. 4.299 5.816 6.272 19.889 – – – –
Other operating income 20.1) 5.308 20.382 6.260 22.401 4.732 21.390 6.050 21.255
Other operating expenses 20.j) (81.245) (118.788) (16.946) (58.336) (93.945) (164.063) (19.947) (70.531)
OPERATING PROFIT (132) 69.586 41.459 111.237 1.823 74.432 44.802 119.048
NON-OPERATING RESULTS 20.k) 4.362 15.669 2.151 7.176 4.362 15.669 2.151 7.176
INCOME BEFORE INCOME TAXES AND
PROFIT SHARING 4.230 85.255 43.610 118.413 6.185 90.101 46.953 126.224
INCOME TAX AND SOCIAL CONTRIBUTION 21. 8.818 (12.530) (8.016) (15.483) 7.360 (16.315) (11.006) (22.215)
Provision for current income tax 26.362 (238) 7.554 (310) 25.371 (2.757) 5.534 (4.936)
Provision for current social contribution 16.266 (150) 4.724 (190) 15.791 (1.437) 3.778 (2.208)
Deferred income tax and social contribution (83.810) (12.142) (20.294) (14.983) (83.802) (12.121) (20.318) (15.071)
PROFIT SHARING (11.369) (33.841) (10.989) (24.805) (11.866) (34.902) (11.342) (25.884)
REVERSION OF INTEREST ON OWN CAPITAL 16.938 50.201 15.638 46.334 16.938 50.201 15.638 46.334
NET INCOME 18.617 89.085 40.243 124.459 18.617 89.085 40.243 124.459
NUMBER OF OUTSTANDING SHARES 118.903.884 118.903.884 108.924.268 108.924.268 118.903.884 118.903.884 108.924.268 108.924.268
NET INCOME PER SHARE – IN REAIS 0,15657 0,74922 0,36946 1,14262 0,15657 0,74922 0,36946 1,14262
The accompanying notes are an integral part of these consolidated financial statements.
(A free translation of the original in Portuguese)
FA PINE
BANCO PINE S.A. AND SUBSIDIARIES
STATEMENTS OF OPERATIONS FOR THE PERIODS ENDED SEPTEMBER 30, 2014 AND 2013
(In thousands of reais, except net income per share)
30/09/2013
Net Income 18.617 89.085 40.243 124.459
Available-for-sale financial assets 545 (19.056) 6.375 (18.565)
Cash flow hedges 49 (24) – –
Income tax 2.110 13.468 (2.551) 7.426
Other (5.868) (14.500) 2 79
Comprehensive Income 15.453 68.973 44.069 113.399
The accompanying notes are an integral part of these consolidated financial statements.
(A free translation of the original in Portuguese)
BANCO PINE S.A. AND SUBSIDIARIES
STATEMENTS OF VALUE ADDED FOR THE PERIODS ENDED SEPTEMBER 30, 2014 AND 2013
(In thousands of reais)
PINE
PE]
Individual
2013
PE
Consolidated
ETICA
Receitas 420.335 984.403
Financial intermediation 434.380 972.410
Services rendered 17.888 54.536
Bank charges 765 1.593
Provision for loan losses 21.939 (11.600)
Other (54.637) (32.536)
Expenses for financial intermediation 358.599 719.028
Goods and services acquired from third parties 16.726 53.147
Materials, electricity and other 95 441
Third-party services 12.481 40.541
Other 4.150 12.165
Gross value added 45.010 212.228
Depreciation and amortization 822 2.949
Net value added produced by the institution 44.188 209.279
Value added transferred from others 4.299 5.816
Equity in the results of investees 4.299 5.816
Total value added to be distributed 48.487 215.095
Distribution of value added 48.487 215.095
Personnel 33.892 98.738
Salaries 15.476 43.885
Benefits, training 2.038 6.408
Social charges 5.009 14.604
Profit sharing 11.369 33.841
Taxes, charges and contributions (6.672) 19.465
Federal 1.074 3.339
State – 2
Municipal 1.072 3.594
Income tax and social contribution (8.818) 12.530
Remuneration of third-party capital 2.650 7.807
Rents and leased assets 2.650 7.807
Remuneration of own capital 18.617 89.085
Interest on own capital/dividends 16.938 56.938
Retained earnings 1.679 32.147
3rd Quarter
288.983
290.650
22.246
876
(81.892)
7.103
189.079
19.793
169
14.615
5.009
80.111
1.250
78.861
6.272
6.272
85.133
85.133
31.752
14.109
2.098
4.556
10.989
10.632
1.349
1.267
8.016
2.506
2.506
40.243
30.000
10.243
Accumulated
860.700
851.116
64.222
2.086
(74.299)
17.575
576.924
55.807
475
40.470
14.862
227.969
4.298
223.671
19.889
19.889
243.560
243.560
87.828
42.778
6.406
13.839
24.805
23.793
4.847
5
3.458
15.483
7.480
7.480
124.459
90.000
34.459
3rd Quarter
412.721
432,706
25.074
765
22.089
(67.913)
340.882
17.975
102
13.495
4.378
53.864
875
52.989
52.989
52.989
36.118
16.904
2.148
5.200
11.866
(4.543)
1.382
1.435
(7.360)
2.797
2.797
18.617
16.938
1.679
Accumulated
947.969
958.815
68.530
1.593
(4.166)
(76.803)
661.546
56.668
459
43.584
12.625
229.755
3.097
226.658
226.658
226.658
104.802
48.027
6.754
15.119
34.902
24.546
3.987
3
4.241
16.315
8.225
8.225
89.085
56.938
32.147
EEE
299.925
297.951
31.678
876
(84.472)
3.892
186.328
20.629
176
15.341
5.112
92.968
1.298
91.670
91.670
91.670
34.213
15.805
2.238
4.828
11.342
14.573
1.814
1.753
11.006
2.641
2.641
40.243
30.000
10.243
Accumulated
891.702
871.942
90.319
2.086
(76.879)
4.234
571.881
57.398
485
41.735
15.178
262.423
4.346
258.077
258.077
258.077
92.747
45.652
6.720
14.491
25.884
33.194
6.190
5
4.784
22.215
7.677
7.677
124.459
90.000
34.459
The accompanying notes are an integral part of these consolidated financial statements.
(A free translation of the original in Portuguese)
BANCO PINE S.A.
STATEMENTS OF CHANGES IN EQUITY FOR THE PERIODS ENDED SEPTEMBER 30, 2014 AND 2013
(In thousands of reais, except dividends and interest on own capital per share)
PINE
[TE]
NES
COTE
Legal
Statutory
UNE
adjustments
Paid-up
LEE
At December 31, 2012 935.683
Capital increase (Note 19) 31.576
Other capital reserves –
Sale of treasury shares –
MTM available-for-sale securities –
Other carrying value adjustments –
Net income –
Appropriations (Note 19):
Legal reserve –
Statutory reserve –
Approval/payment of proposed additional dividend –
Payment of proposed additional dividend –
Prepaid dividends (R$0,1396 per share) –
Interest on own capital (R$0,1391 per share) –
At September 30, 2013 967.259
At December 31, 2013 1.112.259
Acquisition of treasury shares –
Cancellation of treasury shares –
Sale of treasury shares –
MTM available-for-sale securities –
MTM Cash flow hedges –
Other carrying value adjustments –
Net income –
Appropriations (Note 19):
Legal reserve –
Statutory reserve –
Approval/payment of proposed additional dividend –
Payment of proposed additional dividend –
Prepaid dividends (R$0,2336 per share) –
Interest on own capital (R$0,2595 per share) –
At September 30, 2014 1.112.259
24.954
(423)
(11.060)
(16.765)
1.014
(20.112)
UCA Oca)
CEUIS
(12.750) –
(9.333) –
– 124.459
– (6.223)
– (28.236)
– (43.666)
– (46.334)
(22.083) –
(22.083) –
(24.254) –
29.307 –
– 89.085
– (4.454)
– (27.693)
– (6.737)
– (50.201)
(17.030) –
1.219.946
31.576
(3.452)
(9.333)
(10.637)
124.459
1.883
(43.666)
(46.334)
1.264.442
1.272.408
(24.254)
5.401
5
1.014
6
(4.367)
89.085
(21.177)
12.236
(6.737)
(50.201)
1.273.419
The accompanying notes are an integral part of these financial statements.
PINE
BANCO PINE S.A. AND SUBSIDIARIES
STATEMENTS OF CASH FLOWS (INDIRECT METHOD) FOR THE YEARS ENDED SEPTEMBER 30, 2014 AND 2013
(In thousands of reais)
LLL] Consolidated
Note ET] 2013
OPERATING ACTIVITIES
Adjusted net income 106.656 189.415 92.098 206.882
Net income 89.085 124.459 89.085 124.459
Allowance for loan losses 11.600 74.299 4.166 76.879
Deferred taxes 12.142 14.983 12.121 15.071
Depreciation and amortization 2.949 4.298 3.097 4.346
Provision for contingencies (3.304) (8.707) (3.304) (8.707)
Equity in the results of investee (5.816) (19.889) – –
Profit (loss) on sale of property and equipment/investment – (28) – (28)
Adjustments to fair value of other investments – – (13.067) (5.138)
Changes in assests and liabilities 736.441 541.604 820.020 584.519
(Increase) decrease in short-term interbank investments 43.517 36.787 43.517 36.787
(Increase) decrease in marketable securities 366.844 1.825.200 408.558 1.954.347
(Increase) decrease in loan operations 45.883 (982.132) 98.103 (900.873)
(Increase) decrease in other receivables (131.274) (210.430) (127.056) (217.043)
(Increase) decrease in other assets (5.093) (14.906) (5.238) (14.946)
(Increase) decrease in interbank and interdepartmental accounts (6.561) 6.776 (6.561) 6.776
(Increase) decrease in derivative financial instruments 36.076 (210.910) 36.076 (210.910)
Increase (decrease) in deposits (467.300) (374.340) (412.029) (395.183)
Increase (decrease) in purchase and sale commitments 86.973 (689.234) 115.153 (1.003.292)
Increase (decrease) in funds from acceptance and issuance of securities 223.251 213.208 221.874 213.208
Increase (decrease) in borrowings and onlendings 415.743 621.456 (41.120) 957.430
Increase (decrease) in other liabilities 119.113 305.752 479.474 143.841
Increase (decrease) in deferred income 9.269 14.377 9.269 14.377
Net cash provided by (used in) operating acti 843.097 731.019 912.118 791.401
INVESTING ACTIVITIES
Acquisition/sale of property and equipment in use 3.853 (367) 3.835 (1.288)
Investments in intangible assets – (83) (12) (85)
Acquisition of Investments 3.707 (10.223) (15.523) (67.984)
Dividends receipts from subsidiaries 53.507 – – –
Reduction/Capital increase in subsidiaries – (505) – –
Net cash used in investing acti 61.067 (11.178) (11.700) (69.357)
INVESTING ACTIVITIES
Capital increase – 31.576 – 31.576
Other capital reserves – (3.452) – (3.452)
Sale/acquisition of treasury shares (18.848) (9.333) (18.848) (9.333)
Interest on own capital and dividends paid (63.220) (83.476) (63.220) (83.476)
Net cash used in financing activities (82.068) (64.685) (82.068) (64.685)
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 822.096 655.156 818.350 657.359
Cash and cash equivalents at the beginning of the period 757.474 423.396 767.486 430.399
Cash and cash equivalents at the end of the period 4. 1.579.570 1.078.552 1.585.836 1.087.758
The accompanying notes are an integral part of these financial statements.
FEDERAL PUBLIC SERVICE
BRAZILIAN SECURITIES COMMISSION (CVM)
Quarterly Information (ITR) Brazilian corporate legislation
FINANCIAL INSTITUTION. Data-Base – 30/09/2014
02056-7 BANCO PINE S/A 62.144.175/0001-20
(A free translation of the original in Portuguese)
06.01 – NOTES TO QUARTERLY INFORMATION
“ln thousands of reas, except for the share’s uni price)
1. OPERATIONS
Banco Pine S.A. (the “Institution” or “Banco Pine”) is authorized to operate commercial, credit and financing and foreign exchange portfolios.
The Institution’s operations are conducted in the context of a group of institutions which act jointly, and certain transactions involve the co-participation or
intermediation of other members of the Pine Financial Group. The benefits from the intercompany services and the costs for the operating and administrative
structures are absorbed, either jointly or individually, by these companies as is most practicable and reasonable in the circumstances.
2. PRESENTATION OF FINANCIAL STATEMENTS
This presentation consists of the financial statements of Banco Pine, which include those of its Grand Cayman Branch and Pine Securities (Individual) and the
consolidated financial statements of Banco Pine and Subsidiaries (Consolidated).
The financial statements are presented in reais (R$), which is the Institution’s functional currency and that of its foreign branch and subsidiary. Unless otherwise
indicated, the financial information expressed in reais was rounded to the nearest thousand.
In compliance with Resolution 505/06, of the Brazilian Securities Commission (CVM), the Individual and Consolidated Financial Statements, as at September 30,
2014, were authorized for issue on October 31, 2014, by the Institution’s Board of Directors, among other matters.
The consolidated financial statements consider the transactions of Banco Pine S.A., including its branch and subsidiary abroad, its direct and indirect subsidiaries and
the special purpose entity presented below:
Net income.
Business activity ES a] (Loss)
Foreign Branches and Subsidiaries
¡Grand Cayman Branch Branch foreign 976.334 7.353 86.437 (1.624)
Subsidiaries
Securities USA LLO Subsidiary foreign 7.340 12.255 6.234 (8.057)
Investimentos Distribuidora de Títulos e Valores Mobiliários Ltda. Securities dealer 346.990 13.385 45.311 3.546
Assessoria e Consultoria Ltda. Consulting 7.622 500 6.524 3.638
Planejamento e Servigos Ltda Consulting 3.967 10 3.694 1.472
Special Purpose Entities (SPEs)
FIDO Pine Crédito Privado (a) FIDO 19.201 8.051 19,200 4.540
FIP Rio Corporate – Fundo De Investimento Em Participacoes (b) FIP 119.304 71.473 111.603 10.468
IRE Vil Desenvolvimento Imobiliário S/A (c) sPE 56.614 56.594 55.813 146
FIDG Pine Agro (d) FIDO 575.416 502.091 575.303 53.916
Net income.
Business activity ES A] (SS)
Foreign Branches and Subsi.
¡Grand Cayman Branch Branch foreign 936.238 7.028 83.206 (10.786)
Subsidiaries
Securities USA LLO Subsidiary foreign 10.392 11.713 9.047 (1412)
Investimentos Distribuidora de Títulos e Valores Mobiliários Ltda. Securities dealer 219.278 13.384 41.765 2.691
Pine Comercializadora de Energia Elétrica Ltda ‘” Consulting 6.573 1.000 4.984 3.925
Corretora de Seguros Ltda. ” Insurance broker 246 500 244 1
Assessoria e Consultoria Ltda. Consulting 38.609 500 37.995 2.486
Pine Assessoria em Comercializagáo de Energia ‘* Consulting 4 50 “4 (12)
Pine Planejamento e Servigos Ltda Consulting 19.740 10 19.223 15.105
Special Purpose Entities (SPEs)
FIDO Pine Crédito Privado (a) FIDO 69.974 47.758 69.935 12.742
FIP Rio Corporate – Fundo De Investimento Em Participacoes (b) FIP 97.981 55.950 85.611 29.661
IRE Vil Desenvolvimento Imobiliário S/A (c) sPE 46.667 46.878 45.951 (615)
FIDG Pine Agro (d) FIDO 590.854 571.429 590.725 19.296
(“The Pine Comercializadora de Energia Elétrica was extinguished on September 25, 2014.
1% The Pine Coretora de Seguros was extinguished on July 22, 2014.
% The Pine Assessoria em Comercializacáo de Energía was extinguished on September 15, 2014
a) Pine Crédito Privado
Since the control over receivables assigned to this receivables investment fund (FIDC) still lies with the Institution (receipt, transfer and collection) and, in essence, the
Institution is responsible for providing the guarantees to the FIDC’s investors as regards expected receivables and yield, management decided to consolidate the
FIDC, as provided for in CVM Circular 01/07.
In accordance with Article 5 of CVM Instruction 408/04, we present below the information on Pine Crédito Privado, considered in preparing the consolidated financial
statements:
i) Name, nature, purpose and activities of the FIDC.
Pine Crédito Privado Fundo de Investimento em Direitos Creditórios Financeiros, managed by Citibank Distribuidora de Títulos e Valores Mobiliários S/A., was
constituted as a closed fund on December 7, 2010. Distribution commenced on March 28, 2011. The Fund offered 207,000 senior shares at the unit value of R$1. The
distribution period ended on April 6, 2011. The Fund will terminate its activities in up to 180 days from the date on which the Senior Shares outstanding are redeemed
in full (54 months subsequent to the Fund’s distribution date).
Página 8
FEDERAL PUBLIC SERVICE
BRAZILIAN SECURITIES COMMISSION (CVM)
Quarterly Information (ITR) Brazilian corporate legislation
FINANCIAL INSTITUTION. Data-Base – 30/09/2014
02056-7 BANCO PINE S/A 62.144.175/0001-20
(A free translation of the original in Portuguese)
06.01 – NOTES TO QUARTERLY INFORMATION
The purpose of the Fund is to increase shareholder value, exclusively through the acquisition of financial segment Credit Rights, on business loans (working capital),
originated and assigned by Pine, which meet the Qualifying Criteria, as well as the portfolio composition and diversification indices established in the Regulation. As an
additional activity, the Fund will also make investments in Other Assets.
ii) Investment in the equity and results of the FIDC
In accordance with Article 24, section XV, of CVM Instruction 356, as amended by CVM Instruction 393, and Chapter 21 of the Fund Regulation, 69% of the Fund’s
equity will comprise senior shares and 31% will comprise subordinated shares. This ratio will be determined daily and shall be made available for consultation monthly
by the Fund’s shareholders.
iii) Nature of the Institution’s involvement with the FIDC and type of exposure to loss, if any, arising from this involvement.
Verification of whether the credit rights meet the assignment terms, pursuant to the assignment agreement, is the sole responsibility of the assignor (Banco Pine),
without limiting the assignee’s (Fund) right, either directly or through third parties, to also conduct such verification.
Non-compliance with any obligation originating from the credit rights and other active components of the Fund’s portfolio, is attributed to the subordinated shares up to
the limit corresponding to the sum of their total value. Once this total has been exceeded, the default of credit rights held by the Fund is attributed to the senior
shares. The subordinated shares do not have a profitability target, however, they may benefit from any surplus yield generated by the credit right portfolio.
In the event the percentage of subordinated shares falls below 31% of the Fund’s equity, the Institution shall have five business days to recoup this minimum ratio,
through the subscription of new subordinated shares, and if this does not occur, the management entity shall call an Evaluation Event under the terms of the Fund
regulations. In the event the subordinated shares comprise more than 31% of the Fund’s Equity, the management entity may partially amortize the subordinated
shares in the amount necessary to rebalance this ratio.
iv) Amount and nature of the receivables, payables, income and expenses between the Institution and the FIDC, assets transferred by the Institution and
rights of use over the FIDC assets.
No loans were assigned to the FIDC for the period ended September 30, 2014 and December 31, 2013.
Additionally, on account of its investment in subordinated shares in this Fund, at September 30, 2014, the Institution recognized income of R$21.808 in 3rd quarter
and in the period ended at september 30, 2014 recognized income of R$26.023 (At the periord ended september 30, 2013 – a loss of R$ 1,926 and in the 3rd quarter
aloss R$887) in the “marketable securities” account.
v) Total assets, liabilities and equity of the FIDC at September 30, 2014 and December 31, 2013:
30/09/2014 31/12/2013 30/09/2014 31/12/2013
Ativo circulante e realizável a longo prazo 13.231 69.974. Current liabilities 31 39
Cash 10 TS 31 39
Short-term interbank investments 23 310
Marketable securities 3.372 8.715
Loan operations 9.825 60.937 Equity 13.200 69.935
Total do ativo 13.291 69.974. Total liabilities and equity 13.231 69.974
vi) Guarantee, securities, mortgages or other colateral pledged in favor of the FIDC.
Banco Pine has provided no guarantee, surety, mortgage or any other collateral in favor of the FIDC or its investors.
vii) Identification of the principal beneficiary or group of principal beneficiaries of the FIDC’s activities.
Banco Pine is the sole holder of all the subordinated shares of this Fund. The senior shares are held by different qualified investors.
b) FIP Rio Corporate
Since its institution sole shareholder is the FIP and this is a Private Equity Fund, the management decided to consolidate the FIP, pursuant to resolution 2723 of May
31, 2000 the Central Bank of Brazil.
i) Name, nature, purpose and activities of the FIP.
FIP Rio Corporate, administered by BNY Mellon Financial Services Distributor Securities SA was set up in the form of condominium on April 18, 2013. The Fund
offered 100,000 shares with a par value of R$ 1. The closing date for the distribution is 30 months from the date of the first payment of quotas, which was on May 15,
2013. The Fund will terminate their activities five years from the date of the first payment of shares, which may be extended, upon proposal by the Manager and at the
General Meeting of Shareholders.
The purpose of the Fund is to increase shareholders invested capital appreciation over the long term by investing in shares of the Companys, whose exclusive
purpose is the development and economic exploitation, through leasing and sale of real estate enterprise.
les and equity of the FIP at September 30, 2014 and December 31, 2013.
ii) Total assets, liabi
Current assets 119.304 97.981 Current liabilities 7.701 12.370
Cash 1 1 Otherlliabilities 7.701 12.370
Securities trading 119.303 97.980
Shares in investment funds 606 33
Shares of the company closed 118.697 97.947 Equity 111.603 85.611
Total do ativo 119.304 97.981 Total lial ‘s and equity 119.304 97.981
C) IRE VII Desenvolvimento Imobiliário S/A
Since it has control over the SPE’ activities, the Institutio’s management decided to consolidate IRE VII Desenvolvimento Imobiliário S/A, in accordance with the
provisions of CVM Instruction 408/04.
i) Name, nature, purpose and activities of the SPE
IRE VIII Desenvolvimento Imobiliário S/A was constituted as a corporation on December 9, 2010. Its main activities include the management, purchase, sale and
rental of properties owned by itself or by third parties; real estate development and investment in other companies as a partner or shareholder.
Página 9
FEDERAL PUBLIC SERVICE
BRAZILIAN SECURITIES COMMISSION (CVM)
Quarterly Information (ITR) Brazilian corporate legislation
FINANCIAL INSTITUTION. Data-Base – 30/09/2014
02056-7 BANCO PINE S/A 62.144.175/0001-20
(A free translation of the original in Portuguese)
06.01- NOTES TO QUARTERLY INFORMATION
ii) Investment in the equity and results of the SPE
On May 16, 2013, through FIP Rio Corporate, the Institution acquired 100% of the shares of IRE VIl Desenvolvimento Imobiliário Ltda.
ii) Total assets, liabilities and equity of the SPE at September 30, 2014 and December 31, 2013.
31/12/2013 EEAO
Current assets 2.455 8.945 Current liabilities 801 716
Cash 4 361 Taxand social security contributions 46 141
Short-term interbank investments 1.378 8.507 Other liabilties 755 575
Other recelvables 1.073 77
Permanent Assets 54.159 37.722 Equity 55.813 45.951
Propeny 54.159 37.722
Total assets 56.614 46.667 Total líabil 56.614 46.667
d) Receivables investment fund (FIDC) Pine Agro
Pelo fato do Banco permanecer com os riscos e beneficios dos direitos creditorios cedidos ao Fundo através da aquisigáo de 100% das cotas subordinadas, a
administragáo do Banco decidiu consolidar o FIDC Pine Agro, conforme previsto no Oficio – circular da CVM n.* 01/07.
i) Name, nature, purpose and activities of the FIDC
Fundo de Investimento em Direitos Creditórios Financeiros – FIDC Pine Agro, managed by Oliveira Trust Distribuidora de Títulos e Valores Mobiliários S.A., was
constituted as a closed fund on September 16, 2013. The Fund’s equity will be comprised of two types of quotas: Senior Quotas and Subordinated Quotas, in
accordance with Article 12 of CVM Instruction 356/01. The first offer of the Fund’s Senior Quotas will be carried out as established by Instruction 476/09, only for
Qualified Investors acquiring a minimum amount of AS 1,000. The Fund has no fixed duration.
Santander Brasil S.A. was contracted to render controllership services for the Fund, as well as the qualified custody of the portfolio assets, custody of evidencing
documents and quota bookkeeping.
The objective of the Fund is to provide long term retums to Shareholders by investing the Fund’s resources in the acquisition of credit rights arising from (¡) loan
transactions originated and issued by the transferor, either exclusively or syndicated, to their customers in the sectors of operation, and (ii) debentures issued by
clients, active in sectors of operation, the title of the transferor, who may rely on warranties, guarantees among them, that meet the assignment conditions and
eligibility criteria, observing all composition and portfolio diversification indices as established in the Fund Regulation.
The Fund may acquire credit rights arising from and assigned by assignees in the following business segments: (1) sugar and alcohol; (ii) agriculture (primary
production); (ii) food segment retailers and distributors; (iv) animal protein; (v) grain; (vi) beverages; (vii) renewable energy; (vii) tradings: (ix) agricultural inputs; (x)
paper and pulp; and (xi) value-added products.
il) Investment in the equity and results of the FIDC .
In accordance with Article 24, item XV, of CVM . No. 356, as amended by CVM Instruction n . 393, and Chapter 21 of the Rules of the Fund, the relationship
between the value of the senior shares and shareholders’ equity of the Fund is 70%. This means that the Fund should have 30 % of its assets represented by
subordinated quotas . This ratio will be calculated daily and made available to the shareholders of the Fund monthly.
) Nature of involvement with the FIDC and type of exposure to losses , if any, arising from this involvement .
The verification of the framework of credit rights to the transfer agreements, in the form of the transfer agreement, is the sole responsibility of the Custodian (Pine
Bank) , without limiting the right of the assignee (the Fund) , directly or through third parties , to also perform such verification .
Non-compliance with any pecuniary obligation related to credit rights by the drawees and other assets which comprise the Funds portfolio is allocated to the
subordinated shares up to a limit equivalent to the sum of their total. Once this total is exceeded, a default on the credit rights of the Fund are allocated to senior
shares. Subordinated shares do not have a profitability goal, however, they should benefit from any eventual excess retums generated by the portfolio of the credit
rights.
In the event that the percentage of subordinated shares represents less than 30 % of the net assets of the Fund, the Bank will have 5 business days to reestablish
this minimum by means of subscribing for new subordinated shares which in the event this does not happen, the Administrator shall call upon the General Meeting of
Shareholders in accordance with the Fund Regulation.
iv) Amount and nature of receivables, liabilities , income and expenses between the company and the FIDC , assets transferred by the company and
rights to use assets from FIDC.
No período findo em 30 de setembro de 2014 houve operagóes cedidas para o FIDC Pine Agro no montante de R$417.865.
Additionally, on account of its investment in subordinated shares in this Fund, the Institution recognized loss of R$9,771 for the three-month period ended September
30, 2014 and a revenue of R$14,903 for the nine-month period ended September 30, 2014, revenue of R$1,673 for the three-month period ended September 30,
2013 and for the nine-month period ended September 30, 2013, in the “marketable securities” account.
v) Total Assets, liabilities and equity of the FIDC Pine Agro at September 30, 2014 and December 31, 2014:
30/09/2014 31/12/2013 30/09/2014 31/12/2013
Current assets 575.416 590.854. Current liabilities 113 129
Cash 10 839 Other liabilities 113 129
Short-term interbank investments 10.607 –
Marketable securities – Trading 168.490 189.314
Loan operations 394.418 360.320
Other receivables 1.891 40.381 Equity 575.303 590.725
Total assets 575.416 590.854. Total liabil 575.416 590.854
vi) Guarantees, sureties, mortgages or other collateral in favor of the FIDC .
Banco Pine has provided no guarantee, surety , mortgage or other collateral in favor of the Fund or its investors .
Página 10
FEDERAL PUBLIC SERVICE
BRAZILIAN SECURITIES COMMISSION (CVM)
Quarterly Information (ITR) Brazilian corporate legislation
FINANCIAL INSTITUTION. Data-Base – 30/09/2014
02056-7 BANCO PINE S/A 62.144.175/0001-20
(A free translation of the original in Portuguese)
06.01- NOTES TO QUARTERLY INFORMATION
vii) Identification of the principal beneficiary or group of beneficiaries of the main activities of the FDIC.
Banco Pine is the holder of all of the subordinated shares of the Fund, of which the senior shares belong to several qualified investors
3. SIGNIFICANT ACCOUNTING PRACTICES
The financial statements of Banco Pine are prepared and presented in accordance with the accounting practices adopted in Brazil applicable to institutions authorized
to operate by the Brazilian Central Bank (BACEN) and to corporations and by the Brazilian Securities Commission (CVM), where applicable.
The standards issued by the Brazilian Accounting Pronouncements Committee (CPC) related to the process of convergence with international accounting standards,
approved by CVM, but not yet ratified by BACEN, were not adopted in the consolidated balance sheets. The standards approved by CVM which did not conflict with
the rules of the National Monetary Council (CMN) and BACEN and those which had been ratified by BACEN were adopted for the disclosure purposes of these
financial statements.
We present below the main accounting practices used:
a) Consolidation
The balances and the results of the transactions between Banco Pine and its subsidiaries Pine Securities, Pine Investimentos, Pine Comercializadora, Pine Corretora,
Pine Assessoria and Pine Assessoria em Comercializagáo de Energia and Pine Planejamento were eliminated in the consolidated statements. In the consolidation
process of FIDC and FIDC Pine Agro, the balance of the loan assignment receivables portfolio was included in the Institution’s loan operations portfolio, with a
corresponding entry for the senior shares in the “Borrowings and onlendings – local”, account, net of investments in investment fund shares, comprising the shares
b) Determination of the results from operations
Revenues and expenses are recorded on the accrual basis of accounting, which establishes that revenues and expenses should be included in the determination of
the results for the periods in which they occur, simultaneously when correlated, irrespective of their receipt or payment.
Financial revenue and expenses are prorated, based substantially on the exponential method.
Transactions with floating rates or those indexed to foreign currencies are adjusted up to the balance sheet date.
e) Cash and cash equivalents
Cash and cash equivalents comprise cash in local and foreign currencies, short-term financial investments and time deposits, with maturities at the original investment
date equal to or less than 90 days and which present an immaterial risk of change in fair value. These are used by the Institution to manage its short-term
commitments.
d) Short-term interbank investments
Short-term interbank investments are presented at cost plus related earings up to the balance sheet dates.
€) Marketable securities
In accordance with BACEN Circular 3068/01, the Institution’s securities are classified in the following categories
“held-to-maturity securities”.
Trading securities are those acquired to be traded on a frequent and active basis. These securities are presented at cost plus related earnings up to the balance sheet
dates and adjusted based on fair value with the adjustments recorded in the corresponding revenue or expense account in results for the period.
: “trading securities”, “available-for-sale securities” and
The securities classified as available for sale are those for which Management has no intention to hold to maturity or which were not acquired to be traded on a
frequent and active basis. These securities are recorded at cost plus related eamings up to the balance sheet dates and are adjusted to market value against the
“Carrying value adjustments” account in equity, net of tax effects.
The securities classified as held to maturity are those which management acquires with the intention and financial ability to hold in its portfolio to maturity. These
securities are recorded at cost plus related eamings. Premium and discount, where applicable, are appropriated to results based on the term of the individual
securities.
Trading securities are presented in current assets, irrespective of their maturities.
1) Derivative financial instruments
In accordance with BACEN Circular 3082/02 and Circular Letter 3026/02, the derivative financial instruments related to transactions with options, forward transactions,
futures and swaps are recorded in compliance with the following criteria:
Options: premiums paid or received are recorded in assets or liabilities, respectively, until the options are effectively exercised and recorded as a decrease or
increase in the cost of the asset or right, based on the effective exercise of the option, or as revenue or expense in the case of non-exercise;
Futures: daily adjustments are recorded in an asset or liability account and appropriated daily as revenue or expense;
Swaps: differences receivable or payable are recorded in an asset or liability account, respectively, and appropriated as revenue or expense on a pro rata basis
up to the balance sheet date;
Forward contracts: recorded at the contract closing amount, less the difference between this amount and the spot price of the asset or right, recognizing the
revenue and expense over the term of the contract up to the balance sheet date.
The derivative financial instruments are measured at fair value, with the corresponding gains or losses recorded as follows:
Derivative financial instruments which do not qualify as hedges, as revenue or expense in results for the period
Financial instruments which meet hedging criteria are classified either as fair value or cash flow hedges.
Fair value hedges are designed to ofíset risks arising from the exposure to fluctuations in the market value of the hedged item. The instruments and hedged items are
adjusted to fair value and recorded in a profit or loss account.
Página 11
FEDERAL PUBLIC SERVICE
BRAZILIAN SECURITIES COMMISSION (CVM)
Quarterly Information (ITR) Brazilian corporate legislation
FINANCIAL INSTITUTION. Data-Base – 30/09/2014
02056-7 BANCO PINE S/A 62.144.175/0001-20
(A free translation of the original in Portuguese)
06.01- NOTES TO QUARTERLY INFORMATION
9) Loan operations and allowance for loan losses
The loan operations are classified, as regards risk level, based on criteria which consider current economic conditions, past experience and the specific risks related to
the transactions, the borrowers and the guarantors, in compliance with the parameters established by CMN Resolution 2682/99, which require the periodic analysis of
the portfolio and its classification into nine levels (from “AA” to “H”)
Income from loan operations past due for more than 60 days, regardless of the risk level, is only recognized as revenue on the date it is effectively received.
H-rated operations (allowance recorded at 100%) remain at this level for six months, and are subsequently written off against the existing allowance and controlled
over a five-year period in memorandum accounts and are no longer presented in the balance sheet.
Renegotiated loans are held at the same level at which they were originally classified at the time of the renegotiation.
Renegotiated loans which had already been written off as losses and which were recorded in memorandum accounts, are H rated, and any gains arising from the
renegotiation are only recognized when actually received.
The allowance for loan losses meets the minimum requirement established by the aforementioned Resolution, as described in Note 7.
h) Write off of financial assets
As established by BACEN Resolution 3533/08, financial assets are written off when the contractual rights to the cash flow of the financial asset expire or when the
financial asset is sold or transferred.
The sale or transfer of a financial asset is currently classified as:
Operations with substantial transfer of risks and benefits : the transferor has transferred substantially all risks and rewards of ownership of the financial assets
involved in the transaction , such as : ( i ) unconditional sale of financial assets , (ii ) sale of financial asset combined with an option to repurchase the asset at fair
value at the time of repurchase , and (ii) sale of a financial asset combined with an option to buy or sell of those which fiscal year is unlikely to occur ;
Operations with substantial retention of risks and benefits : the transferor retains substantially all the risks and rewards of ownership of the financial assets involved in
the transaction , such as : (1) the sale of the financial asset combined with a commitment to repurchase the same asset at a fixed price or the sale price of any added
income , (ii) securities lending agreements, ( iii) sale of financial asset combined with a contract rate swap that transfers the total retum exposure to market risk back
to transferor , ( iv ) the sale of financial asset combined with an option to buy or sell whose fiscal year is likely to occur , and ( v ) sale of receivables for which the
seller or transferor guarantees in any way compensate the purchaser or transferee for credit losses that may occur , or the sale occurred in conjunction with the
acquisition of the subordinated Investment Fund (FIDC ) buyer ;
Operations without transfer or substantial retention of risks and benefits : Shall be classified operations in which the transferor neither transfers nor retains
substantially all the risks and rewards of ownership of the financial assets involved in the transaction
The allowance for loan losses follows the guidelines established by Resolution No. 2.682/99 of the Central Bank.
i) Prepaid expenses
These are controlled by contract and recorded under prepaid expenses account. The expenses are appropriated to results for the period based on the corresponding
contract term and recorded in the “Other administrative expenses” account.
) Other current assets and long-term receivables
These are stated at cost, including, where applicable, related accrued income and monetary variations, less the corresponding provisions for loss or adjustments to
realizable value.
k) Permanent assets
These assets are stated at cost and consider the following:
Investments in subsidiaries are accounted for using the equity method
Property and equipment items correspond to rights in tangible assets which are used in the Institution’s business activities, or exercised for this purpose, including
those arising from transactions which transfer the risks, benefits and control of assets to the entity.
Depreciation of property and equipment is computed and recorded on the straight-line method at annual rates which consider the economic useful lives of the
Intangible assets correspond to the rights acquired in non-physical assets which are used in the Institution’s business or which are exercised for this purpose. The
intangible assets with identifiable useful lives are generally amortized on the straight-line method over the estimated period of economic benefit.
1) Impairment of non-financial assets
An impairment loss is recognized if the carrying amount of an asset or its cash generating unit exceeds its recoverable amount. A cash generating unit is the smallest
identifiable group of assets that generates cash flows that are largely independent of the cash flows from other assets or groups of assets. Impairment losses are
recognized in results for the period. The non-financial asset amounts, except for deferred tax assets are tested, at least, annually to determine whether there is any
indication of impairment.
m) Purchase and sale commitments
The purchase (sale) of financial assets based on a fixed price resale (repurchase) contract is recorded in the consolidated balance sheet as financing granted
(received), based on the nature of the debtor (creditor), in the “Funds obtained in the open market” account.
n) Current and long-term liabilities
These are stated at known or estimated amounts including, where applicable, accrued charges and monetary or exchange variations up to the balance sheet dates
Página 12
FEDERAL PUBLIC SERVICE
BRAZILIAN SECURITIES COMMISSION (CVM)
Quarterly Information (ITR) Brazilian corporate legislation
FINANCIAL INSTITUTION. Data-Base – 30/09/2014
02056-7 BANCO PINE S/A 62.144.175/0001-20
(A free translation of the original in Portuguese)
06.01- NOTES TO QUARTERLY INFORMATION
0) Contingent assets and liabilities and legal obligations
The recognition, measurement and disclosure of contingent assets and liabilities, and legal obligations (tax and social security) are based on the criteria defined in
Resolution 3823/09, and Letter Circular 3429/10, which approved CPC Technical Pronouncement 25, as follows:
Contingent assets: are not recorded in the financial statements, except when there is evidence which assures a high degree of confidence that they will be
realized, generally through a final and unappealable court decision.
Contingent liabilities: the reserve for contingencies is determined based on the probability of an unfavorable sentence or outcome of the related litigation, as well
as the probable period of the loss. The necessary reserve is calculated based on an analysis of each process and the opinion of the legal advisors. Reserves are
recorded for processes in which the possibility of loss is deemed probable. The reserves may be changed in the future, based on the progress of each suit; When the
probability of loss is deemed possible, no provision is recorded and the related suits are merely disclosed;
Legal obligations (tax and social security): these comprise administrative proceedings or lawsuits related to tax and social security obligations, the legality or
constitutionality of which is being contested, whose amounts, regardless of the related probability of success, are recorded at the full amount in dispute and adjusted
in accordance with the legislation in force.
p) Provision for income tax and social contribution
The provisions for income tax and social contribution are recorded at the following statutory rates: income tax – 15%, plus a 10% surcharge on taxable income
exceeding R$ 240 (for the year end) and social contribution – 15%. Further, deferred tax assets are recorded on temporary differences based on the assumption that
the future taxable income generated by the Institution will be sufficient to offset these assets.
In accordance with Provisional Measure (MP) 449/08, subsequently enacted into Law 11941/09, the changes in the criteria used to recognize revenue, costs and
expenses computed in determining net income, introduced by Law 11638/07 and by Articles 36 and 37 of the MP, may be ignored for purposes of calculating the
taxable income if companies elect to use the Transitional Tax System (RTT). In this case, for tax purposes, the accounting methods and criteria in force at December
31, 2007 will be followed.
q) Profit sharing
Banco Pine has its own profit sharing program ratified by the Bank Employees Trade Union.
The general assumptions of this program are: (a) business unit performance; (b) establishment of a fund for distribution across the organization; and (c) assessment
of the skills and the meeting of targets in the supporting areas. The related expenses were recognized in the “Profit sharing” account”.
r) Use of estimates
The preparation of financial statements requires Management to make estimates and assumptions, to the best of its judgment, that affect the reported amounts of
certain assets, liabilities, revenues and expenses and other transactions, such as the fair value of assets and derivatives and the allowance for loan losses, the
establishing of the period for realizing deferred tax assets, property and equipment depreciation rates, Amortisation of deferred charges and reserves for contingences
and others. Actual results may differ from these estimates.
s) Net income per share
This is calculated based on the number of outstanding shares paid up at the date of the financial statements.
4. CASH AND CASH EQUIVALENTS
Cash 64.628 273.008 70.871 281.218
Short+erm interbank investments 1.514.942 805.544 1.514.965 806.540
Total cash and cash equivalents 1.579.570 1.078.552 1.585.836 1.087.758
“These are ransactions mih maturtis atihe original investment dato equal to or less than 90 days.
5. INTERBANK INVESTMENTS
Interbank investments at September 30, 2014 and December 31, 2013, are comprised as follows:
From 3 to 12
[Security/Maturity ACES months From 1 to 3 years
Investments in purchase and sale commitments
¡Own portfolio position
National Treasury Bills (LTN) 619.999 – – 619.999
Federal Treasury Notes (NTN) 426.200 – – 426.200
Financial Treasury Notes (LFT) 399.997 – – 399.997
Subtotal 1.446.196 – . 1.446.196
Total investments in purchase and sale
commitments 1.446.196 – – 1.446.196
Interbank deposits
¡Own portfolio
Floating 2.176 – 1.243 3.419
col – 10.748 – 10.748
Total interbank
deposits 2.176 10.748 1.243 14.167
Foreign currency investments
Foreign currency investments 68.746 – – 68.746
Total foreign currency investments 68.746 – – 68.746
Total interbank
investments 1.517.118 10.748 1.243 1.529.109
Página 13
FEDERAL PUBLIC SERVICE
BRAZILIAN SECURITIES COMMISSION (CVM) PINE
Quarterly Information (ITR) Brazilian corporate legislation
FINANCIAL INSTITUTION. Data-Base – 30/09/2014
02056-7 BANCO PINE S/A 62.144.175/0001-20
(A free translation of the original in Portuguese)
06.01 – NOTES TO QUARTERLY INFORMATION
TEE
[Security/Maturity Up to 3 months months From 1 to 3 years
National Treasury Bills (LTN) 620.022 – – 620.022
Federal Treasury Notes (NTN) 426.200 – – 426.200
Financial Treasury Notes (LFT) 399.997 – – 399.997
Subtotal 1.446.219 – . 1.446.219
Total investments in purchase and sale
commitments 1.446.219 – – 1.446.219
Interbank deposits
‘Own portfolio
Floating 2.176 – 1.243 3.419
cor – 10.748 – 10.748
Total interbank
deposits 2.176 10.748 1.243 14.167
Foreign currency investments
Foreign currency investments 68.746 – – 68.746
Total foreign currency investments 168,746 – – 68.746
Total interbank
investments 1.517.141 10.748 1.243 1.529.132
CIEN
[Security/Maturity Up to 3 months O
Investments in purchase and sale commitments
pl
National Treasury Bills (LTN) 121.617 – 121.617
Federal Treasury Notes (NTN) 62.305 – 62.305
Total investments in purchase and sale
commitments 183.922 – 183.922
Interbank deposits
Own portfoli
Floating 9.264 35.144 44.408
cor – 13.791 13.791
Total interbank
deposits 9.264 48.935 58.199
Foreign currency investments
Foreign currency investments 425.571 – 425.571
Total foreign currency investments 425.571 – 425.571
Total interbank
investments 618.757 48.935 667.692
AT
[Security/Maturity MAS months
National Treasury Bills (LTN) 121.927 – 121.927
Federal Treasury Notes (NTN) 62.305 – 62.305
Total investments in purchase and sale
commitments 184.232 – 184.232
Interbank deposits
Own portfoli
Floating 9.264 35.144 44.408
cor – 13.791 13.791
Total interbank
deposits 9.264 48.935 58.199
Foreign currency investments
Foreign currency investments 425.571 – 425.571
Total foreign currency investments 425.571 – 425.571
Total interbank
investments 619.067 48.935 668.002
Página 14
FEDERAL PUBLIC SERVICE
BRAZILIAN SECURITIES COMMISSION (CVM)
PINE
Quarterly Information (ITR) Brazilian corporate legislation
FINANCIAL INSTITUTION. Data-Base – 30/09/2014
02056-7 BANCO PINE S/A 62.144.175/0001-20
(A free translation of the original in Portuguese)
06.01 – NOTES TO QUARTERLY INFORMATION
6. MARKETABLE SECURITIES AND DERIVATIVE FINANCIAL INSTRUMENTS
a) Marketable securities
The securities portfolio at September 30, 2014 and December 31, 2013 comprised as follows:
CT
From3to 12 From1to3 ES
ICO TO RTS
Available-for-sale sec
Own portfolio:
National Treasury Bills (LTN) – – 8.672 136.976 –
Federal Treasury Notes (NTN) – 50.057 131.482 50.171 27.925
Debentures – 407 20.218 – –
Receivables investment fund
shares – – 5.182 198.386 –
Subtotal – 50.464 165.554 385.533 27.925
Subject to repurchase
commitments:
Debentures – – – 17.006 –
Subtotal – . – 17.006 .
Subject to
guarantees:
National Treasury Bills (LTN) – – 86.718 – –
Federal Treasury Notes (NTN) – 1.284 19.676 – –
Debentures – – 25.953 – –
Subtotal – 1.284 132.347 . .
Total securities
Total available-for-sale – 51.748 297.901 402.539 27.925
“Own portfolio:
National Treasury Bills (LTN) – 8.252 – – –
Federal Treasury Notes (NTN) – 33.397 25.445 1.933 8.620
Debentures – – 12.584 –
Investment fund shares % 199.370 – – – –
Subtotal 199.370 41.649 38.029 1.933 8.620
Subject to repurchase
commitments:
National Treasury Bills (LTN) – 321.760 – – –
Federal Treasury Notes (NTN) – – – – 10.928
Debentures 47.186 26.976 105.058 110.623 –
Eurobonds 5.047 – – – –
Subtotal 52.233 348.736 105.058 110.623 10.928
Subject to
guarantees:
Promissory note – 20.950 – – –
Subtotal – 20.950 – . .
Total trading
securities 251.603 411.335 143.087 112.556 19.548
Total securities 251.603 463.083 440.988 515.095 47.473
Ca
RAE O
Up to 3 months O AS
Available-for-sale sec
¡Own portfolio:
National Treasury Bills (LTN) – – 8.672 136.976 –
Federal Treasury Notes (NTN) – 50.057 131.482 50.171 27.925
Debentures – 407 20.218 – –
Receivables investment fund
shares – – 5.182 19.529 –
Subtotal – 50.464 165.554 206.676 27.925
Subject to repurchase
commitments:
Debentures – – – 17.006 –
Subtotal – . – 17.006 .
Subject to
guarantees:
National Treasury Bills (LTN) – – 86.718 – –
Federal Treasury Notes (NTN) – 1.284 19.676 – –
Debentures – – 25.953 – –
Subtotal – 1.284 132.347 . .
Total securities
Total available-for-sale – 51.748 297.901 223.682 27.925
Página 15
145.548
259.635
20.625
203.568
629.476
17.006
17.006
86.718
20.960
25.953
133.631
780.113
8.252
69.395
12.584
199.370
289.601
321.760
10.928
289.843
5.047
627.578
20.950
20.950
938.129
1.718.242
145.548
259.635
20.625
24.711
450.619
17.006
17.006
86.718
20.960
25.953
133.631
601.256
148,530
274.367
21.031
209.568
647.496
16.949
16.949
87.068
22.112
25.545
134.725
799.170
8,257
70.395
12.737
199.370
290.760
321.723
11.539
282.444
5.047
620.753
20.910
20.910
932.423
1.731.593
148,530
274.367
21.031
24.711
468.639
16.949
16.949
87.068
22.112
25.545
134.725
620.313
FEDERAL PUBLIC SERVICE
BRAZILIAN SECURITIES COMMISSION (CVM)
Quarterly Information (ITR)
FINANCIAL INSTITUTION.
Brazilian corporate legislation
Data-Base – 30/09/2014
PINE
02056-7 BANCO PINE S/A.
162.144.175/0001-20
(A free translation of the original in Portuguese)
06.01 – NOTES TO QUARTERLY INFORMATION
Trading securities (”
Own portfoli
Financial Treasury Notes (LFT)
National Treasury Bills (LTN)
Federal Treasury Notes (NTN)
Debentures
Investment fund shares ‘%
Subtotal
Subject to repurchase
commitments:
National Treasury Bills (LTN)
Federal Treasury Notes (NTN)
Debentures
Eurobonds
Subtotal
Subject to
guarantees:
Promissory note
Subtotal
Total trading
securities
Total securi
National Treasury Bills (LTN)
Federal
Debentures
Promissory note
Receivables investment fund
shares
Subtotal
Subject to
guarantees:
Federal
Subtotal
Trading securities (”:
“Own portfoli
LIN
NTN
Debentures
Investment fund shares ‘%
Eurobonds
Subtotal
Subject to repurchase
commitments:
LIN
NTN
Debentures
Eurobonds
Subtotal
Subject to
guarantees:
LIN
NTN
Subtotal
Total trading
securities
Total securi
47.186
5.047
52.233
130.623
130.623
Up to 3 months
89.966
89.966
349.869
8.125
180.381
9
538.466
132
132
538.598
628.564
8.252 – –
33.397 25.445 1.933
– 12.584 –
41.649 38.029 1.933
321.760 – –
26.976 105.058 110.623
348.736 105.058 110.623
20.950 – –
20.950 – –
411.335 143.087 112.556
463.083 440.988 336.238
Cn
From3to 12 From1to3
O AS
73.077
85.138 48.089
– 713 –
44.686 – –
– 20.446 183.484
117.763 106.297 231.573
– 109.579 –
. 109.579 –
117.763 215.876 231.573
30.940 4.930 –
46 38.707 37.788
9.424 51.928 88.448
70 – –
40.480 90.565 126.236
161.579 40.217 –
80.339 18.969 48.089
46.180 10.800 117.924
128 2.686 –
288.226 72.172 166.013
1.074 – –
– 3.476 –
1.074 3.476 –
329.780 166.213 292.249
447.543 382.089 523.822
Página 16
169.077
8.620
177.697
10.928
10.928
188.625
216.550
ES
64,249
8.305
9.332
17.637
10.983
13.546
24.529
42.166
106.415
169.077
8.252
69.395
12.584
78.390
337.698
321.760
10.928
289.843
5.047
627.578
20.950
20.950
986.226
1.587.482
89.966
206.304
64.962
44.686
203.930
609.848
109.579
109.579
719.427
385.739
87.971
149.800
180.381
9.493
813.384
201.796
158.380
174.404
16.492
551.072
1.074
3.476
4.550
1.369.006
2.088.433
169.077
8,257
70.395
12.737
78.390
338.857
321.723
11.539
282.444
5.047
620.753
20.910
20.910
980.520
1.600.833
89.981
216.974
66.976
44.459
209.930
622.320
117.415
117.415
739.735
385.916
89.758
135.546
180.381
9.493
801.094
202.421
163.429
186.079
16.492
568.421
1.079
3.542
4.621
1.374.136
2.113.871
FEDERAL PUBLIC SERVICE
BRAZILIAN SECURITIES COMMISSION (CVM)
Quarterly Information (ITR) Brazilian corporate legislation
FINANCIAL INSTITUTION. Data-Base – 30/09/2014
02056-7 BANCO PINE S/A 62.144.175/0001-20
(A free translation of the original in Portuguese)
06.01 – NOTES TO QUARTERLY INFORMATION
CT
Up to 3 months From3to12 From1to3 ES
From 3 to 5 years
¡Own portfolio:
LIN 89.966 – – – 89.966 89.981
NTN – 73.077 85.138 48.089 – 206.304 216.974
Debentures – 713 – 64.249 64.962 66.976
Promissory note – 44.686 – – – 44.686 44.459
Subtotal 89.966 117.763 85.851 48.089 64,249 405.918 418.390
Subject to
guarantees:
NTN – – 109.579 – – 109.579 117.415
Subtotal – – 109.579 – – 109.579 117.415
Total available-for-sale
securities 89.966 117.763 195.430 48.089 64,249 515.497 535.805
Trading securities (”:
Own portfol
LET – – 30.070 8.715 147.552 186.337 186.337
LTN 349.869 30.940 4.930 – – 385.739 385.916
NTN 8.125 46 38.707 37.788 8.305 87.971 89.758
Debentures – 9.424 51.928 88.448 – 149.800 135.546
Investment fund shares ‘% 108.693 – – – – 108.693 108.693
Eurobonds a 70 – – 9.332 9.493 9.493
CDB 235 – – – – 235 235
Subtotal 467.013 40.480 120.635 134.951 165.189 928.268 915.978
Subject to repurchase
commitments:
LIN – 161.579 40.217 – – 201.796 202.421
NTN – 80.339 18.969 48.089 10.983 158.380 163.429
Debentures – 46.180 10.800 117.924 – 174.404 186.079
Eurobonds 132 128 2.686 – 13.546 16.492 16.492
Subtotal 132 288.226 72.172 166.013 24.529 551.072 568.421
Subject to
guarantees:
LIN – 1.074 – – – 1.074 1.079
NTN – – 3.476 – – 3.476 3.542
Subtotal – 1.074 3.476 – – 4.550 4.621
Total trading
securities 467.145 329.780 196.283 300.964 189.718 1.483.890 1.489.020
Total securities 557.111 447.543 391.713 349.053 253.967 1.999.387 2.024.825
“Securtes dlassedin ho “trading” category aro sialed based on her mauri datos.
%* The assets comprisng these funds are most debentures, promissory notes and receivables certificates totaling R$106,167 (December 31, 2013 – R$558,025) (Note 7a).
At September 30, 2014 and December 31, 2013, there were no securities classified as “held to maturity”.
As established in Article 5 of BACEN Circular 3068/08 securities may only be reclassified on the date of the half yearly balance sheet. At December 31, 2013, were
reclassified securities “avaiable for sale” to “trading” in the amount of 184,779, generating a negative impact on the gross amount of R$ 1,347 , R$ 808 net of tax
recorded in “Income from operations with securities”. At September 30, 2014 there was no reclassification of categories.
The market values of the securities recorded in the “available for sale” and “trading” categories were determined based on the prices and rates braded at September
30, 2014 and December 31, 2013, disclosed by the Brazilian Association of Financial and Capital Market Institutions (ANBIMA), BM8FBovespa S.A. – – Bolsa de
Valores, Mercadorias e Futuros, by the investment fund managers and by the international information agencies. The mark-to-market adjustment of the securities
recorded in the “available for sale” category generated a loss of R$19.057 on an Individual and Consolidated basis (December 31, 2013 – loss of R$ 20,308 on both
an Individual and Consolidated basis), affecting the equity of the Institution by R$11,433 on an Individual and Consolidated basis (December 31, 2013 – R$ 12,185 on
an Individual and Consolidated basis), net of tax effects. The mark-to-market adjustment of the securities recorded in the “trading” category resulted in a gain
adjustment of R$ 5,706 on an Individual and R$5.711 on Consolidated basis (September 30, 2014 – gain adjustment of R$ 5,130 in both the Individual and
Consolidated) in results.
b) Derivative financial instruments
i) Utilization policy
The growing level of company sophistication in a global market prompted an increase in the demand for derivative financial instruments to manage balance sheet
exposure to market risks, arising mainly from fluctuating interest and foreign exchange rates, the price of commodities and other asset prices. As a result, Banco Pine
offers its customers altematives for mitigating market risks through appropriate instruments, as well as to meet its own needs for managing these risks.
ii) Management
The management of portfolio risks is controlled using techniques which include the following: VaR, sensitivity, liquidity risk and stress scenarios. Based on this
information, the necessary derivative financial instruments are contracted by the treasury department, pursuant to Management’s previously defined market and
liquidity risk policy. Derivative transactions carried out by Banco Pine with customers are neutralized to eliminate market risks.
Página 17
FEDERAL PUBLIC SERVICE
BRAZILIAN SECURITIES COMMISSION (CVM)
Quarterly Information (ITR) Brazilian corporate legislation
FINANCIAL INSTITUTION. Data-Base – 30/09/2014
02056-7 BANCO PINE S/A 62.144.175/0001-20
(A free translation of the original in Portuguese)
06.01 – NOTES TO QUARTERLY INFORMATION
The sale of derivative financial instruments to customers is subject to prior credit limit approval. The credit limit approval process also considers potential stress
scenarios.
Knowing the customer, their operating sector and their risk appetite profile, as well as being able to provide information on the risks involved in the transaction and in
the terms and conditions negotiated, ensures that the relationship between the parties is transparent and permits the Institution to offer customers the products which
are most appropriate to their specific needs.
The majority of the derivative contracts negotiated by the Institution with customers in Brazil, comprise swaps, forward transactions, options and futures registered at
BM8FBovespa or CETIP S.A. – Balcáo Organizado de Ativos e Derivativos. The derivative contracts traded abroad comprise futures, forward transactions, options
and swaps mainly registered at the Chicago, New York and London exchanges. We stress that although certain trades abroad are carried out over-the-counter (OTC),
the related risks are low in relation to the Institutior’s total transaction.
The main market risk factors monitored by Banco Pine include exchange rates, local interest rate volatility (fixed, reference rate (TR), General Price Index – Market
(IGP-M) long-term interest rate (TULP) and Extended Consumer Price Index (IPCA), exchange coupon and commodities. The Institution adopts a conservative
approach, minimizing its exposure to risk factors and to the mismatching of portfolio terms.
) Evaluation and measurement criteria, methods and assumptions used to determine fair value
The Institution uses the market reference rates disclosed principally by BM8FBovespa, Intercontinental Exchange (ICE) and Bloomberg to determine the fair value of
the derivative financial instruments. For derivatives whose prices are not directly disclosed by the exchanges, the fair values are obtained through pricing models that
use market information, determined based on the prices disclosed for assets with the greatest liquidity. Based on these prices, the Institution extracts the interest
curves and market volatilities which are used as entry data for the models. The OTC derivatives, forward contracts and securities with low liquidity are determined in
this way.
iv) Credit Deivatives
Represent, in general, a bilateral contract in which one of the parties purchases protection against the credit risk of a particular financial instrument (the risk is
transferred). The counterparty selling protection receives a remuneration that is usually paid in a linear throughout the duration of the operation mode. In the case of a
credit event (“default”), the counterparty who bought protection receive a payment, whose goal is to offset the loss on the financial instrument. In this case, the
counterparty selling protection usually receives the underlying asset in exchange for the payment.
In the nine months ended September 30, 2014, Pine conducted operations with client sovereign risk of the Federative Republic of Brazil.
v) Amounts recorded in balance sheet and memorandum accounts, segregated into the following categories:
values, maturities, cost and fair values.
index, counterparty, trading market, notional
At September 30, 2014 and December 31, 2013, the derivative financial instrument positions are as follows:
co]
30/09/2014
AAA AAA
ASSETS
Swap – difference receivable 51.313 189.062 240.375 82.034 270.129 352.163
Forward contracts- receivable 93.499 13.398 106.897 72.953 17.853 90.806
Premiums on unexercised options 100.146 5.870 106.016 72.389 – 72.389
Total receivable 244.958 208.330 453.288 227.376 287.982 515.358
LIABILITIES
Swap – difference payable (24.600) (10.953) (85.553) (82.138) (25.464) (57.602)
Forward contracts- payable (70.665) (6.896) (74.561) (68.043) (4219) (72.262)
Premiums on written options (53.491) (1.234) (54.725) (60.172) (797) (60.969)
Total payable (148.756) (16.083) (164.839) (160.353) (30.480) (190.833)
Net amount 96.202 192.247 288.449 67.023 257.502 324.525
vi) Derivative financial instruments by index
co]
LETS
Notional amount receivable Amountpayable Result
Swap
Market risk
Asset position: 4.302.948 225.455 .
Interest 2.979.211 97.535
Currency 1.323.737 127.920
Variable income – – –
Liability position: 4.302.948 – (85.553)
Interest 2.134.647 – (7.539)
Currency 2.168.901 – (28.014)
Net amount 225.455 (85.553) 57.781
Cash flow hedges
Asset position: 259.675 14.920 .
Interest 259.675 14.920
Liability position: 259.675 – .
Interest 259.675 – –
Net amount 14.920 – (3.842)
Net amount of Swap 240.375 (85.553) 53.939
Página 18
FEDERAL PUBLIC SERVICE
BRAZILIAN SECURITIES COMMISSION (CVM)
Quarterly Information (ITR)
FINANCIAL INSTITUTION.
Brazilian corporate legislation
Data-Base – 30/09/2014
PINE
02056-7 BANCO PINE S/A. 162.144.175/0001-20
(A free translation of the original in Portuguese)
06.01 – NOTES TO QUARTERLY INFORMATION
Forward contracts
Asset posi 3.796.157 106.897
Interest 2.404.899 18.621
Currency 1.072.804 59.814
Commodities 318.454 28.462
Liability posi 3.796.157 –
Interest 826.820 –
Currency 2.909.269 –
Commodities 160.068 –
Net amount 106.897
Options
Premium on unexercised options: 425.726 106.016
Currency 1.488.453 34.046
Commodities 937.273 71.970
Premiums on written options: 1.573.883 –
Currency 731.141 –
Commodities 842.742 –
Net amount 106.016
Total receivable (payable) and gain (loss) 453.288
PA
Notional amount receivable
Swap
Market
Asset position: 5.581.191 352.163
Interest 3.408.528 179.337
Currency 2.130.411 172.770
Variable income 42.252 56
Liability position: 5.581.191 –
Interest 3.538.561 –
Currency 2.047.580 –
Net amount 352.163
Forward contracts
Asset posi 6.595.674 90.806
Interest 4.161.379 9.789
Currency 2.341.952 80.384
Commodities 92.343 633
Liability posi 6.595.674 –
Interest 1.930.135 –
Currency 4.623.121 –
Commodities 42.418 –
Net amount 90.806
Options
Premium on unexercised options: 408.454 72.389
Currency 766.584 23.108
Commodities 641.770 49.281
Premiums on written options: 1.623.553 –
Currency 980.528 –
Commodities 643.025 –
Net amount 72.389
Total receivable (payable) and gain (loss) 515.358
vii) Derivative financi
struments – futures contracts
Notional amount
TS
AS
(74.561)
(3.920)
(68.706)
(1.935)
(74.561) 169.560
(54.725)
(22.579)
(82.146)
(54.725) 59.991
(164.839) 283.490
Individual and Consolidated
DT
(57.602)
(28.160)
(29.442)
(57.502) 230.856
(72.262)
(6.960)
(65.244)
(58)
(72.262) (39.919)
(60.969)
(82.363)
(28.606)
(60.969) 48.163
(190.833) 239.100
CATA]
Daily
O
receivable
OS)
Interbank market: 1.701.842 1-830.167
Currency 883.870 682.167
Commodities 122.278 417.868
Future exchange coupon: 1.352.060 1.354.774
Exchange Swap – 1.099.038
Total 4.060.050 5.384.014
Página 19
2.282
(2.207)
(13)
1.255
(4.105)
(2.788) (183.395)
FEDERAL PUBLIC SERVICE
BRAZILIAN SECURITIES COMMISSION (CVM)
Quarterly Information (ITR)
FINANCIAL INSTITUTION
PINE
Brazilian corporate legislation
Data-Base – 30/09/2014
02056-7 BANCO PINE S/A. 162.144.175/0001-20
(A free translation of the original in Portuguese)
06.01 – NOTES TO QUARTERLY INFORMATION
Notional amount
CA]
Purchase
Interbank market: 2.479.543
Currency 1.840.127
Commodities 114.363
Future exchange coupon: 2.584.409
Exchange Swap –
Total 7.018.442
Derivative financi
struments by maturity
Market value
Daily
PON
receivable
(payable)
2.316.329 285
817.256 14.091
146.149 –
3.709.727 (22.419)
3.207.174 9.418
10.196.635 1.375 (42.887)
myrE ETE
AS O AS
Swap 459.349 1.903.337 939.150
Forward contracts 2.013.869 1.611.607 169.918
Options 2.096.570 1.714.025 189.014
Futures 4.961.276 3.027.536 1.108.405
Market value
O O
O
331.945 928.842 4.562.623
763 – 3.796.157
– – 3.999.609
183.287 163.560 9.444.064
Upto3 RO
ES O O
Swap 1.458.593 2.014.047 909.187
Forward contracts 4.306.823 1.998.871 289.443
Options 1.888.484 1.136.623 6.900
Futures 6.672.138 9.180.127 972.227
ix) Derivative financial instruments by trading market
From 3to 5 From 5to 15
O
402.264 797.100 5.581.191
1.037 – 6.595.674
– – 3.032.007
204.473 186.112 17.215.077
At September 30, 2014 and December 31, 2013, the swaps, forward contracts and options, whose notional values are recorded in a memorandum account are
comprised as follows:
Exchange 78.487
BM8FBOVESPA –
Exchanges abroad
1.071.109
Companies 3.413.027
Total 4.562.623
AS
178.074 2.417.056 9.444.064
– 1.784.319 8.905.460
178.074 632.737 538.604
3.618.083 1.582.553 –
48.971 – –
3.569.112 1.582.558 –
3.796.157 3.999.509 9.444.064
Exchange 173.603
BM8FBOVESPA 110.300
Exchanges abroad 63.303
OTC 5.407.588
Finant 1.609.369
Companies 3.798.219
Total 5.581.191
x) Amount and type of guarantee margin
The margin amounts deposited in guarantee at September 30, 2014 and December 31, 2013 are comprised as follows:
CUE
206.613 1.929.544 17.187.338
– 1.405.588 16.954.565
206.613 523.957 282.773
6.389.061 1.102.463 27.739
230.105 – 27.739
6.158.956 1.102.463 –
16.595.674 3.032.007 17.215.077
co]
30/09/2014
– Exchange clearing house – BMC
National Treasury Bills (LTN)
Federal Treasury Notes (NTN)
Subtotal
Guarantee margin – BMF8Bovespa
National Treasury Bis (CTN)
Federal Treasury Notes (NTN)
Subtotal
Página 20
– 1.074
1.283 3.475
1.283 4.549
86.718
19.676 107.486
106.394 107.486
FEDERAL PUBLIC SERVICE
BRAZILIAN SECURITIES COMMISSION (CVM)
Quarterly Information (ITR)
FINANCIAL INSTITUTION.
02056-7 BANCO PINE S/A
162.144.175/0001-20
(A free translation of the original in Portuguese)
06.01 – NOTES TO QUARTERLY INFORMATION
Guarantee margin – Other
Debentures
Promissory Note
Federal Treasury Notes (NTN)
Subtotal
Total
xi) Cash flow hedges
PINE
Brazilian corporate legislation
Data-Base – 30/09/2014
25.953 –
20.951 –
– 2.094
46.904 2.094
154.581 114.129
On March 28, 2014 USD 115 milion was acquired segregated into two parcels, through the Inter American Development Bank- IDB, converted at the exchange rate
of R$ 2.26/USD on that date, resulting in the loan amount of RS 260 million. This loan has a grace period for the principal, having its settlement on February 15 and
August 15, 2019, respectively. The bank opted to protect its exposure to the risks arising from this transaction through a cash flow hedge.
The effectiveness of the hedge portfolio is in accordance with the provisions of Circular No. 3,082, from 30/01/2002, issued by BACEN and the structure of hedge
accounting has been established:
Instrumentos de Hedge Hedge Objective
ESE
Hedges of onlendings abroad
Total
7. CREDIT PORTFOLIO, GUARANTEES PROVIDED AND SECURITIES WITH CREDIT RISK
259.675 (8.819) 279.121
259.675 (6.819) 279.121
We present below a summary of the loan operation portfolio information at September 30, 2014 and December 31, 2013:
a) By type of loan:
Public sector
Working capital
Resolution n* 3.844 (old Resolution n* 2.770)
Overdraft account
BNDES/FINAME onlending
Direct consumer financing (CDC) – vehicles
Foreign currency financing
Export financing
Subtotal – Loan operations
Debtors for purchase of assets
Advances on foreign exchange contracts and income receivable ‘%
Notes and credits receivable ‘”
Credit portf
Loans for imports
Guarantees provided
Guarantees provided and responsil
Notes and credits receivable ‘”
w
Corporate bonds ‘”
Total expanded portfol
“Recorded in “Other receivables – sundry” (Note 9a)
‘- Recorded in “Foreign exchange portfoo” (Note 8)
** Most debentures, promissory notes and receivables certcates i the funds” portlio and in Banco Pine’s porto (Note 6(a).
Página 21
30/09/2014
3.191.719 3.188.610 3.201.546 3.250.657
42.529 40.142 42.529 40.142
10.902 9.930 10.902 9.930
1.193.979 1.068.369 1.193.979 1.068.369
3.605 9.876 3.605 9.876
410.383 393.554 410.383 399.554
716.955 944.241 716.955 944.241
5.570.072 5.673.713 5.579.899 5.735.760
185.617 133.713 185.617 133,713
505.598 397.934 505.598 397.934
103.010 114,243 103.010 114,243
6.364.297 6.319.603 6.374.124 6.381.650
8,254 51.212 8.254 51.212
2.896.290 2.909.197 2.896.290 2.909.197
2.960.409 2.904.544 2.960.409
30.240 29.420 30.240
558.025 491.646 558.025
588,265 521.066 588.265
9.789.907 9.868.277 9.799.734 9.930.324
FEDERAL PUBLIC SERVICE
BRAZILIAN SECURITIES COMMISSION (CVM) PINE
Quarterly Information (ITR) Brazilian corporate legislation
FINANCIAL INSTITUTION Data-Base – 30/09/2014
02056-7 BANCO PINE S/A 62.144.175/0001-20
(A free translation of the original in Portuguese)
06.01 – NOTES TO QUARTERLY INFORMATION
b) By maturity:
E TEO
LY IT TL Ly
Up to 3 months 1.625.260 25,78 56.413 95,42 1.681.673 26,42
From 3 to 12 months 2.392.190 37,94 2.710 4,58 2.394.900 37,68
From 1 to 3 years 1.718.787 27,26 – – 1.718.787 27.01
From 3 to 5 years 406.642 6,45 – – 406.642 6,39
From 5 to 15 years 162.295 2,57 – – 162.295 2,55
Total credit portfolio 6.305.174 100,00 59.123 100,00 6.364.297 100,00
Up to 3 months 645.860 22,24 – – 645.860 22,24
From 3 to 12 months 646.988 22,28 – – 646.988 22,28
From 1 to 3 years 879.045 30,26 – – 879.045 30,26
From 3 to 5 years 732.651 25,22 – – 732.651 25,22
Total guarantees provided and responsi 2.904.544 100,00 – – 2.904.544 100,00
Up to 3 months. 47.186 9.06 – – 47.186 9,06
From 3 to 12 months 48.334 9,28 – – 48.334 9.28
From 1 to 3 years 263.449 50,56 – – 263.449 50,56
From 3 to 5 years 127.629 24,49 – – 127.629 24,49
From 5 to 15 years 34.468 661 – – 34.468 661
More Than 15 years – – – – – –
Total securities with credit risk 521.066 100,00 – – 521.066 100,00
Total expanded portfolio 9.730.784 59.123 9.789.907
E
Lo
Up to 3 months 1.626.102 25,75 56.413 95,42 1.682.515 26,40
From 3 to 12 months 2.401.175 38,02 2.710 4,58 2.403.885 37,71
From 1 to 3 years 1.718.787 27.22 – – 1.718.787 26,97
From 3 to 5 years 406.642 6,44 – – 406.642 6.38
From 5 to 15 years 162.294 2,57 – – 162.294 2,54
Total credit portfolio 6.315.000 100,00 59.123 100,00 6.374.123 100,00
Up to 3 months 645.860 22,24 – – 645.860 22,24
From 3 to 12 months 646.988 22,28 – – 646.988 22,28
From 1 to 3 years 879.045 30,26 – – 879.045 30,26
From 3 to 5 years 732.651 25,22 – – 732.651 25,22
Total guarantees provided and responsi 2.904.544 100,00 – – 2.904.544 100,00
Up to 3 months 47.186 9,06 – – 47.186 9,06
From 3 to 12 months 48.334 9,28 – – 48.334 9,28
From 1 to 3 years 263.449 50,56 – – 263.449 50,56
From 3 to 5 years 127.629 24,49 – – 127.629 24,49
From 5 to 15 years 34.468 6/61 – – 34.468 661
521.066 100,00 – – 521.066 100,00
9.740.610 59.123 9.799.733
E
LY
Up to 3 months 1.430.068 22,75 31.618 90,64 1.461.686 23,13
From 3 to 12 months 2.302.093 36,63 3.264 9,36 2.305.357 36.48
From 1 to 3 years 1.957.584 31,15 – – 1.957.584 30,98
From 3 to 5 years 435.585 6,93 – – 435.585 6,89
From 5 to 15 years 159.391 2,54 – – 159.391 2,52
Total credit portfolio 6.284.721 100,00 34.882 100,00 6.319.603 100,00
Up to 3 months 409.905 13,85 – – 409.905 13,85
From 3 to 12 months 1.112.950 37,59 – – 1.112.950 37,59
From 1 to 3 years 656.780 22,19 – – 656.780 22,19
From 3 to 5 years 694.853 23,47 – – 694.853 23,47
From 5 to 15 years 85.921 2,90 – – 85.921 2,90
Total guarantees provided and responsi 2.960.409 100,00 – – 2.960.409 100,00
From 3 to 12 months 100.289 17,05 – – 100.289 17,05
From 1 to 3 years 193.858 32,95 – – 193.858 32,95
From 3 to 5 years 176.364 29,98 – – 176.364 29,98
From 5 to 15 years 109.884 18,68 – – 109.884 18,68
More Than 15 years 7.870 1,34 – – 7.870 1,34
Total securities with credit risk 588.265 100,00 – – 588.265 100,00
Total expanded portfolio 9.833.395 9.868.277
Página 22
FEDERAL PUBLIC SERVICE
BRAZILIAN SECURITIES COMMISSION (CVM)
Quarterly Information (ITR)
FINANCIAL INSTITUTION.
02056-7 BANCO PINE S/A
(A free translation of the original in Portuguese)
162.144.175/0001-20
PINE
Brazilian corporate legislation
Data-Base – 30/09/2014
06.01 – NOTES TO QUARTERLY INFORMATION
Up to 3 months
From 3 to 12 months
From 1 to 3 years
From 3 to 5 years
From 5 to 15 years
Total credit portfolio
Up to 3 months
From 3 to 12 months
From 1 to 3 years
From 3 to 5 years
From 5 to 15 years
Total guarantees provided and responsi
From 3 to 12 months
From 1 to 3 years
From 3 to 5 years
From 5 to 15 years
More Than 15 years
Total securities
credit risk
Total expanded portfolio
C) By business activity:
LN ME
1.430.068 22,53 31.518 90,64, 1.461.686 22,90
2.314.769 36,47 3.264 9,36 2.318.033 36,32
2.006.955 31,62 – – 2.006.955 31,45
435.585 6,86 – – 435.585 6,83
159.391 2,51 – – 159.391 2,50
86.346.768 99,99 34.882 100,00 86.381.650 100,00
409.905 19,85 – – 409.905 13.85
1.112.950 37,59 – – 1.112.950 37,59
656.780 22,19 – – 656.780 22,19
694.853 23,47 – – 694.853 23,47
85.921 2,90 – – 85.921 2,90
2.960.409 100,00 – – 2.960.409 100,00
100.289 17,05 – – 100.289 17.05
193.858 32,95 – – 193.858 32,95
176.364 29,98 – – 176.364 29,98
109.884 18,68 – – 109.884 18,68
7.870 1,34 – – 7.870 1.34
588.265 100,00 – – 588.265 100,00
9.895.442 34.882 9.930.324
Civil construction
Sugar and ethanol
Electric and renewable energy
Agriculture
Building and engineering – Infrastructure
Transportation and logistics
Vehicles and parts
Specialized services
Metal products
Telecommunications
Chemical and petrochemical
Foreign trade
Individuals
Beverages and tobacco
Meat processing
Foodstuffs
Construction material and decor
Steel products
Financial institution
Paper and pulp
Recreation and tourism
Information technology
Plastic and rubber
Mechanics
Water and sanitation
Textiles and clothing
Wholesale trade
Medical services
Leather and footwear
Pharmaceuticals and cosmeticos
Electronics
Individuals
Communications and printing
Mining
Total expanded portfolio
1.170.513 1.388.464 1.171.987 1.395.441
1.377.208 1.391.668 1.377.208 1.397.413
919.501 891.931 919.501 891.931
1.049.944 871.830 1.050.721 884.798
763.213 846.040 764.416 859.056
562.843 480.410 564.397 484.293
372.879 437.040 372.879 437.040
331.266 473.851 331.266 476.545
322.989 453.883 322.989 457.250
427.194 349.218 428.060 358.236
356.271 273.740 356.271 273.740
273.128 298.612 273.128 298.612
228.687 192.940 228.687 192.940
271.115 235.210 271.115 236.893
301.167 164.348 301.167 164,348
147.242 187.718 148.620 191.164
161.004 208.102 161.846 208.102
121.202 128.015 121.202 128.015
64.621 103.299 66.354 107.529
77.576 95.142 77.576 95.142
– 41.576 – 41.576
41.288 47.185 41.288 47.185
63.236 40.455 63.236 40.455
31.960 17.986 31.960 17.986
44.593 93.445 44.593 93.445
66.928 38.487 66.928 39.407
19.241 26.332 19,241 26.332
26.797 15.331 26.797 15.391
33.171 – 33.171 –
17.784 18.086 17.784 18.086
11.147 10.565 11.147 10.565
31.908 44.177 31.908 44.177
53.336 – 53.336 –
48.955 3.191 48.954 3.191
9.789.907 9.868.277 9.799.733 9.930.324
d) Credit portfolio by risk level and allowance, in accordance with Resolution 2682/99:
Falling due
Past due
778.642
1.975.060
2.309.136
980.028
147.260
62.888
36.655
12.105
3.400
Total 86.305.174
zonm o>>
o co z
1.692
59.123
Individual
LS Falling due Past due
778.642 – 781.577 – 781.577 –
1.975.060 9.875 1.976.438 – 1.976.438 9.883
2.309.139 23.091 2.313.782 3 2.313.785 23.137
1.031.069 30.932 980.895 51.041 1.031.936 30.958
147.267 14.727 147.260 7 147.267 14.727
68.823 20.647 62.888 5.935 68.823 20.547
36.700 18.350 36.555 45 36.700 18.350
12.505 8.754 12.105 400 12.505 8.754
5.092 5.092 3.400 1.692 5.092 5.092
86.364.297 131.468 6.315.000 59.123 6.374.123 131.548
Página 23
FEDERAL PUBLIC SERVICE
BRAZILIAN SECURITIES COMMISSION (CVM) PINE
Quarterly Information (ITR) Brazilian corporate legislation
FINANCIAL INSTITUTION Data-Base – 30/09/2014
02056-7 BANCO PINE S/A 62.144.175/0001-20
(A free translation of the original in Portuguese)
06.01 – NOTES TO QUARTERLY INFORMATION
MEE
Falling due TM Allowance Falling due Past due
1.003.915 1.003.915 1.007.284 1.007.284
A 2.081.694 – 2.081.694 10.408 2.089.470 – 2.089.470 10.448
B 2.312.496 337 2.312.833 23.129 2.347.435 387 2.347.772 23.478
0 530.407 30.507 560.914 16.827 539.519 30.507 570.026 17.101
D 193.692 32 193.724 19.372 193.692 32 193.724 19.872
E 43.010 940 43.950 13.185 43.010 940 43.950 13.185
F 24.924 40 24.964 12.482 24.924 40 24.964 12.482
G 49.576 33 49.609 34.727 49.576 33 49.509 34.727
H 45.007 2.993 48.000 48.000 51.858 2.993 54.851 54.851
Total 6.284.721 6.319.603 178.130 6.346.768 34.882 86.381.650 185.644
e) By concentration level:
30/09/2014
or
Largest borrowers ON GO ON TN
Largest borrower 314.690 271.299 314.690 271.299
2nd to 10th 1.399.333 1.519.180 1.399.333 1.519.180
11th to 20th 1.019.908 10,42 1.095.399 11,10 1.019.908 10,41 1.095.399 11,03
216tto 50th 1.756.996 17.95 1.874.414 18,99 1.756.996 17,93 1.874.414 18.88
51st to 1001h 1.688.077 17.24 1.748.250 17,72 1.689.456 17,24 1.751.696 17.54
Other borrowers 3.610.903 36,89 3.359.735 34,05 3.619.351 36,93 3.418.336 34,42
Total expanded portfolio 9.789.907 100,00 9.868.277 100,00 9.799.734 100,00 9.930.324 100,00
1) Banco Pine’s total expanded credit portfo!
Individual
Rural E . 65.590 73.210
Housing – – 662
Industry 2.112.433 2.028.622 2.114.653 2.041.180
Commerce 701.400 803.378 701.400 805.981
Financial intermediation 85.999 122.443 87.731 126.774
Other services 6.336.061 6.446.837 6.341.160 6.475.924
Individuals 489.200 406.593 489.200 406.593
Total expanded portfolio 9.789.907 9.868.277 9.799.734 9.930.324
9) Change in the allowances for loan losses and other loan losses, in accordance with Resolution 2682/99;
Individual
Details 3rd Quarter/14 Accumulated _ 3rd Quarter/13 Accumulated
Opening balance 158.623 178.131 202.522 186.652
Additions/Reversals (21.939) 11.600 31.892 74.299
Amount written off (6.952) (68.698) (62.288) (79.066)
Exchange variation (1) 736 435 29 270
Closing balance 131.468 131.468 182.155 182.155
Consolidated
Details 3rd Quarter/14 Accumulated _ 3rd Quarter/13 Accumulated
Opening balance 158.852 185.644 202.522 188.254
Additions/Reversals (21.939) 11.600 34.472 72.697
Amount written off (6.952) (68.698) (62.288) (79.066)
Allowance-FIDC (149) (7.434) 4.929 7.509
Exchange variation ‘” 736 435 29 270
Closing balance 131.548 131.547 189.664 189.664
“Exchange vañalion on he alovance Torloan losses (PDD) of the overseas branch, classified in the “Other operating expenses” account in he statement of operations.
h) Credit recoveries
For the period end September 30, 2014, credits previously written off as loss were recovered in an amount of R$17.785 (At September 30, 2013 – R$ 17,134).
i) Renegotiation of contracts
At September 30, 2014, renegotiated contracts totaled R$ 98,722 (December 31, 2013 – R$163,543). The original ratings attributed to these contracts were
maintained.
j) Sale or transfer of financial assets
Página 24
FEDERAL PUBLIC SERVICE
BRAZILIAN SECURITIES COMMISSION (CVM) PINE
Quarterly Information (ITR) Brazilian corporate legislation
FINANCIAL INSTITUTION. Data-Base – 30/09/2014
02056-7 BANCO PINE S/A 62.144.175/0001-20
(A free translation of the original in Portuguese)
06.01 – NOTES TO QUARTERLY INFORMATION
i) Operations with substantial transfer of risks and benefit:
For the period ended September 30, 2014, were assigned loans without coobligation in an amount of R$ 49,327 (September 30, 2013 – R$ 26,966). These
assignments generated a loss in relation to their face value of R$ 46,972, without discounting the allowance for loan losses in the amount of R$ 37,924. The results of
the assignments are recorded in the “Other operating income/expenses” account”. Additionally, contracts previously written off as a loss of R$ 37,297 were assigned.
These assignments generated a gain of R$ 8,880, recorded in “Loan Operations”.
li) Operations with substantial retention of risks and benefit:
As of January 2012, as required by CMN Resolution 3533/08, the accounting records are to be made considering either the retention or not of the risks and benefits in
the sale or transfer of financial assets.
In the period ended September 30, 2014 were assigned operations for Pine Agro FIDC in the amount of R$ 417.865 (R$ 181,081 at December 31, 2013), represented
by:
LS
Debentures transferred –
s 169,744 169.744 148.769 148.769
Lending operations assigned –
Lending operations assigned – 251.273 251.273 217.766 217.766
Total 421.017 421.017 377.866 377.866
8. FOREIGN EXCHANGE PORTFOLIO
UTA
31/12/2013
Exchange purchases pending settlement 540.769 418.586 – –
Rights on exchange sales 27.095 99.814 – –
Income receivables 7.890 6.729 – –
Advances in local currency received (8.359) – – –
Exchange sales pending settlement – – 249.186 94.959
Liabilities from exchange purchases – – 497.708 391.205
Advances on foreign exchange contracts – – (497.708) (891.205)
Total 782.395 525.129 249.186 94.959
9. OTHER RECEIVABLES – SUNDRY
a) Other receivables – Sundry
These are comprised as follows:
Advances and salary prepayments 1.708 – 1.708 298 – 298
Advances for payments on our behalf 6131 – 6.131 7.159 – 7.159
Deferred tax assets (Note 9.b) 92.871 57.323 150.194 87.797 74.738 162.535
Debtors for purchase of assets 10.759 174.858 185.617 36.845 96.868 133.713
Income tax available for offset 345 93.636 93.981 – 54.043 54.043
Amount receivable from affiliates 50 – 50 39 – 39
Notes and credits receivable 106.225 26,205 132.430 113.836 30.647 144.483
Sundry debtors – Brazil and abroad 4.612 – 4.612 2.997 47 3.044
Total 222.701 352.022 574.723 248.971 256.343 505.314
Advances and salary prepayments 1777 – 1777 298 –
Advances for payments on our behalf 7.185 – 7.185 7.159 –
Deferred tax assets (Note 9.b) 92.877 57.323 150.200 87.797 74.742
Debtors for purchase of assets 10.759 174.858 185.617 36.845 96.868
Income tax available for offset – 96.296 96.296 – 58.418
Notes and credits receivable 106.225 26,205 132.430 113.836 30.647
Sundry debtors – Brazil and Abroad 8.727 – 8.727 7.826 48
Total 227.550 354.682 582.232 253.761 260.723
Página 25
FEDERAL PUBLIC SERVICE
BRAZILIAN SECURITIES COMMISSION (CVM) PINE
Quarterly Information (ITR) Brazilian corporate legislation
FINANCIAL INSTITUTION. Data-Base – 30/09/2014
02056-7 BANCO PINE S/A 62.144.175/0001-20
(A free translation of the original in Portuguese)
06.01 – NOTES TO QUARTERLY INFORMATION
b) Deferred tax assets
At September 30, 2014 de 2014 and December 31, 2013, the deferred tax assets and deferred tax liabilties related to income tax and social contribution were
comprised as follows:
Allowance for
loan losses 31.098 18.659 49.757 42.602 25.561 68.163
Adjustment of available-for-sale securities 4.764 2.858 7.622 5.077 3.046 8.128
Adjustment of trading securites – – – 1.284 zm 2.055
Credits written off as a loss 28.246 16.948 45.194 25.721 15.433 41.154
Future market – Law 11196 2371 1.422 3.793 5711 3.426 9.137
Provision for tax risks and
úcontingent liabilties 2.317 1.390 3.707 3.159 1.896 5.055
Provision for profit sharing – – – 2.875 1.725 4.600
Mark-to-market cash flow hedges 961 576 1.537
Provision for lawyers’ fees 326 195 521 1.599 959 2.558
Provision for equity accounting loss abroad 6.502 3.901 10.403 5.539 3.323 8.862
Provision for Resolution 3921 5.809 3.486 9.295 3.444 2.066 5.510
3.531 2.118 5.649 – – –
7.948 4.768 12.716 4.574 2.744 7318
93.873 56.321 150.194 101.585 60.950 162.535
Allowance for
loan losses 31.098 18.659 49.757 42.602 25.561 68.163
Adjustment of available-for-sale securities 4.764 2.858 7.622 5.077 3.046 8.123
Adjustment of trading securities – – – 1.284 Tm 2.055
Credits written off as a loss 28.246 16.948 45.194 25.721 15.433 41.154
Future market – Law 11196 2371 1.422 3.793 5711 3.426 9.137
Provision for tax risks and –
úcontingent liabilties 2.317 1.390 3.707 3.161 1.897 5.058
Provision for profit sharing – – – 2.875 1.725 4.600
Mark-to-market cash flow hedges 961 576 1.537 – – –
Provision for lawyers’ fees 326 195 521 1.599 959 2.558
Provision for equity accounting loss abroad 6.502 3.901 10.403 5.539 3.324 8.868
Provision for Resolution 3921 5.813 3.488 9.301 3.444 2.066 5510
Provision for devaluation of assets 3.531 2.118 5.649 – – –
Other provisions 7.948 4.768 12.716 4.574 2.744 7.318
Total 93.877 56.323 150.200 101.587 60.952 162.539
CERA]
Deferred tax liabilities
Mark-to-market adjustment of derivative
financial instruments 41.515 24.908 66.423 45.740 27.444 73.184
Adjustment of judicial deposit 366 220 586 649 389 1.038
MTM from renegotiation 1.505 903 2.408 – – –
Adjustment of account Hedge – Object 954 573 1.527
Income from renegotiation 588 352 940 292 175 467
MTM Interbank exchange 224 135 359 – – –
Total (Note 14.b) 45.152 27.091 72.243 46.681 28.008 74.689
Activity of deferred tax assets and deferred tax liabilities
EA
31/12/2013 TN
Opening balance 162.535 143.052 162.539 143.316
Amount recorded 108.060 151.383 108.065 151.046
Amount reversed (120.401) (131.900) (120.404) (131.823)
Closing balance 150.194 162.535 150.200 162.539
Individual
Opening balance 74.689 51.685
Amount recorded . 79.782 86.463
Amount reversed . . (82.228) (63.459)
Closing balance . . 72.243 74.689
Página 26
FEDERAL PUBLIC SERVICE
BRAZILIAN SECURITIES COMMISSION (CVM) PINE
Quarterly Information (ITR) Brazilian corporate legislation
FINANCIAL INSTITUTION Data-Base – 30/09/2014
02056-7 BANCO PINE S/A 62.144.175/0001-20
(A free translation of the original in Portuguese)
06.01 – NOTES TO QUARTERLY INFORMATION
Projected realization of deferred tax assets and deferred tax
EIA
Deferred tax assets
Up to 1 year 58.043 34.824 92.867 58.043 34.824 92.867
From 1 to 2 years 15.639 9.383 25.022 15.639 9.383 25.022
From 2to 3 years 7.868 4.721 12.589 7.868 4.721 12.589
From 3 to 4 years 4.851 2911 7.762 4.851 2911 7.762
From 4to 5 years 2.407 1.444 3.851 2.407 1.444 3.851
From 5 to 10 years 5.065 3.038 8.103 5.069 3.040 8.109
Total 93.873 56.321 150.194 93.877 56.323 150.200
co]
Up to 1 year 8516 5.109 13.625
From 1 to 2 years 8.470 5.083 13.553
From 2to 3 years 12.730 7.638 20.368
From 3 to 4 years 1.729 1.087 2.766
From 4to 5 years 847 508 1.355
From 5 to 10 years 12.860 7.716 20.576
Total 45.152 27.091 72.243
10. INVESTMENTS
a) Investments in associated and subsidiary companies
Pine TNT] Pine A A
E A A EOS A)
Holding – %. 100,000 99,9900 0,0000 99,998 0,0000 99,998 0,0000
Number of shares held – 10.000 – 892.298.000 – 500.000 –
Capital 12.255 10 – 13.385 – 500 –
Equity 6.234 3.694 – 45.311 – 6.624 –
Netincome for the quarter (1.510) 805 – 1.126 – 3.151 – 3.572
Investment amount 6.234 3.693 – 45.311 – 6.624 – 61.862
Equity in the results of investee (1.510) 805 – 1.126 (235) 3.151 2 3.339
Exchange variation 960 – – – – – – 960
TNT TS Pine Pine
SO A Assessoria O
Holding – %. 100,000 99,990 10,000 99,998 100,000 9,9998 9,9998
Number of shares held – 10.000 10.000 892.298.000 77.399.000 500.000 500.000
Capital 11.150 10 60 13.384 77.400 500 500
Equity 8.676 17.934 4 41.186 83.182 37.259 241
Netincome for the quarter (1.548) 13.815 0 3.113 2.753 1.750 7 19.881
Investment amount 8.676 17.932 4 41.186 83.182 37.259 241 188.480
Equity in the results of investee (1.548) 13.815 0) 3.113 2.753 1.750 7 19.889
71 On March 14, 2014 The Pio Consuling and Acvisary Senáces to Banco Pino paid dvidends in ro amount oí $35.008
(2) On Mare 14, 2014 Tho Plaming Pino Bank Pino paa cviends in ho amount ot $ 16.998
(3) The Pie Trader of Energy vas dissolvedon Septemer25, 2014.
(4) ro Pine Insurance Brorage vas cissoled on Juy 22, 2014.
(5) The Pine Acvio on Energy Tracing was disoted on Seplember15, 2014
b) Other Investments
At September 30, 2014, Banco Pine had a value of R$ 105,099 (R$ 76,509 at December 31, 2013), which corresponds to investments in land for the development of
real estate projects that are registered at IRE VII Desenvolvimento Imobiliário. In the consolidated balance sheet this investment is in the “Other Investments”
account.
11. PROPERTY AND EQUIPMENT AND INTANGIBLE ASSETS
a) Property and equipment
EINEN
PSA PA] e PO
CTS depreciation ELN CTN
) (10.282)
Fumiture and equipment in use 10 2.980 (1.833) 1.147 3.221 (1.921) 1.300
¡Communications system 10 1.459 (929) 530 1.461 (930) 531
Data processing system 20 914 (890) 24 1.189 (1.057) 132
Security system 10 32 (23) 9 32 (23) 9
Airraft 10 16.293 (1.105) 15.188 16.293 (1.105) 15.188
Transport system 20 2.602 (688) 1.714 2.602 (688) 1.714
Total 34.517 (15.818) 18.699 35.410 (16.206) 19.204
Página 27
FEDERAL PUBLIC SERVICE
BRAZILIAN SECURITIES COMMISSION (CVM)
Quarterly Information (ITR)
FINANCIAL INSTITUTION
Brazilian corporate legislation
Data-Base – 30/09/2014
PINE
02056-7 BANCO PINE S/A. 162.144.175/0001-20
(A free translation of the original in Portuguese)
06.01 – NOTES TO QUARTERLY INFORMATION
PE]
CTS
LTS
lual
SST
20 10.237
ture and equipment in use 10 2.979
Communications system 10 1.436
Data processing system 20 914
Security system 10 32
Airoraft 10 24.083
Transport system 20 2.675
Total 42.356
b) Intangible assets
q
INM AA
Amortisation
La
EN
134 10.596
1.328 3.210
589 1.439
38 1.176
1 32
20.872 24.083
2.012 2.675
24.984 43.211
(10.177)
(1.701)
(648)
(971)
21)
(6.211)
(663)
(17.592)
PA
20.872
2.012
25.619
TES
Expense for acquisition and
development of software
Total
10 9.587
9.587
PE]
TEA
Expense for acquisition and
development of software 10 9.587
Total 9.587
12. DEPOSITS
a) Analysis by maturity:
e]
(8.676)
(6.676)
POMO
Amortisation
(8.159)
(6.159)
Time
EIA
MM
EN
91 9.834
91 9.834
EIA
M1
EN
1.428
1.428
10.288
10.288
Amortisation
(8.676)
(8.576)
Pa
TN
(8.625)
(8.625)
Time
deposits.
No stated maturity
Up to 30 days
From 31 to 60 days –
From 61 to 90 days –
From 91 to 180 days –
From 181 to 360 days –
More than 360 days –
Total
COTOS
428.861
174.039
161.919
659.353
455.890
788.444
2.668.506
ETA)
Interbank e]
ATEO deposits.
– 29.736
50.471 –
45 –
421 –
124 –
11.186 –
35.830 –
98.077 29.736
deposits.
426.450
172.398
147.323
657.572
446.037
766.622
2.616.402
Time
390.667
225.554
233.690
669.634
428.983
1.094.695
TA)
De] ra Interbank De]
deposits pOTATS deposits deposits foro
No stated maturity 23.332 – – 23.260
Up to 30 days – 398.939 10.151 –
From 31 to 60 days – 225.900 24.480 –
From 61 to 90 days – 236.312 20.722 –
From 91 to 180 days – 687.228 3.128 –
From 181 to 360 days – 455.409 19.370 –
More than 360 days – 1.143.273 16.093 –
Total 23.332 3.147.061 93.939 23.260
b) Analysis by market segment:
EAT]
us
Individual
ET EAT]
3.043.223
a
LATE
Manufacturing, commercial and
services 29.424
Related companies 3
Individuals 312
Financial institutions and
investment funds 710
Total 30.449
deposits
697.066
52.104
19,401
1.899.935
2.668.506
Página 28
ATEO AT
– 29.424
43 –
– 312
98.034 –
98.077 29.736
deposits
697.066
19.401
1.899.935
2.616.402
98.034
98.034
FEDERAL PUBLIC SERVICE
BRAZILIAN SECURITIES COMMISSION (CVM) PINE
Quarterly Information (ITR) Brazilian corporate legislation
FINANCIAL INSTITUTION. Data-Base – 30/09/2014
02056-7 BANCO PINE S/A 62.144.175/0001-20
(A free translation of the original in Portuguese)
06.01 – NOTES TO QUARTERLY INFORMATION
Individual
us ET EAT]
COTOS deposits deposits COTOS
Manufacturing, commercial and
services 22.924 897.503 – 22.924 889.231 –
Related compar 72 95.566 4.221 – – –
Individuals 336 53.366 – 336 53.366 –
Financial institutions and
investment funds – 2.100.626 89.718 – 2.100.626 89.718
Total 23.332 3.147.061 93.939 23.260 3.043.223 89.718
13. FUNDS OBTAINED IN THE OPEN MARKET
AY
EE 31/12/2013
‘Own portfolio
National Treasury Bills (LTN) 320.933 201.413
Federal Treasury Notes (NTN) 10.607 156.794
Debentures 299.222 175.263
Other securities abroad 3.790 14.109
Subtotal 634.552 547.579
Funds obtained in the open market 634.552 547.579
ET
EUA PES
‘Own portfolio
National Treasury Bills (LTN) 320.933 201.413
Federal Treasury Notes (NTN) – 118.007
Other securities abroad 3.790 14.109
Subtotal 324.723 333.529
Third-party portfolio
Debentures 299.222 175.263
Subtotal 299.222 175.263
Funds obtained in the open market 623.945 508.792
14. OTHER LIABILITIES
a) Collection and payment of taxes and similar:
At September 30, 2014, this balance consists of the tax on financial transactions (1OF) payable in the amount of R$ 1,562 (December 31, 2013 – RS 1,663).
b) Tax and social security contributions
ET
Taxes and contributions on
third-pany services 176 – 176 183 – 183
Taxes and contributions on salaries 2.375 – 2.375 2.473 – 2.473
Taxes and contributions on income – – – 2.683 – 2.683
Service tax (ISS) 392 – 392 547 – 547
Withholding income tax (IRRF) 1.686 – 1.686 1.859 – 1.859
Social Integration Program (PIS) and Social Contribution on Revenues (COFINS) p 362 – 362 478 – 478
Provision for deferred income tax (IR) and social contribution (CS) (Note 09) 13.625 58.618 72.243 13.625 58.618 72.243
Provision for tax risks (Note 16. “e” and “d”) – 369 369 – 369 369
Total 18.516 58.987 77.603 21.848 58.987 80.835
Individual
Taxes and contributions on
third-pany services 156 – 156 177 – 177
Taxes and contributions on salaries 3.233 – 3.233 3.356 – 3.356
Taxes and contributions on income – – – 4.350 – 4.350
Service tax (ISS) 533 – 533 659 – 659
Withholding income tax (IRRF) 3.839 – 3.839 3.848 – 3.848
Social Integration Program (PIS) and Social Contribution on Revenues (COFINS) p 446 – 446 556 – 556
Provision for deferred income tax (IR) and social contribution (CS) (Note 09) 12.161 62.528 74.689 12.161 62.528 74.689
Provision for tax risks (Note 16. “e” and “d”) – 716 716 – 723 723
Total 20.368 63.244 83.612 25.107 63.251 88.358
Página 29
FEDERAL PUBLIC SERVICE
BRAZILIAN SECURITIES COMMISSION (CVM)
Quarterly Information (ITR) Brazilian corporate legislation
FINANCIAL INSTITUTION. Data-Base – 30/09/2014
02056-7 BANCO PINE S/A 62.144.175/0001-20
(A free translation of the original in Portuguese)
06.01- NOTES TO QUARTERLY INFORMATION
€) Sundry
EJ
ET
Provision for personnel expenses 9.960 – 9.960 11.091 – 11.091
Cashiers checks 6.096 – 6.096 6.096 – 6.096
Allowance for contingent
liabilities- civil (Note 15.6) – 7.510 7.510 – 7.510 7.510
Allowance for contingent
liabilíties – labor (Note 15.e) – 1.390 1.390 – 1.390 1.390
Other administrative expenses 2.517 1.303 3.820 3.000 1.303 4.303
Liabilies for sale and transfer of financial assets 336.335 84.683 421.018 – – –
Obrigagóes por cotas de fundos de investimentos – – – – 409.611 409.611
Sundry debtors – Brazil and abroad 222 – 222 1171 – 1.171
Other provisions – 13.908 13.908 – 13.908 13.908
Total 355.130 108.794 463.924 21.358 433.722 455.080
Individual
Provision for personnel expenses 18.809 – 18.809 19.068 – 19.068
Cashiers checks 6.910 – 6.910 6.910 – 6910
Allowance for contingent
liabilities- civil (Note 15.6) – 9.997 9.997 – 9.997 9.997
Allowance for contingent
liabilíties – labor (Note 15.e) – 1.925 1.925 – 1.925 1.925
Other administrative expenses 2.231 6.394 8.625 3.254 6.394 9.648
úObligations for investment fund shares – – – – 456.863 456.863
Liabilities for sale and transfer of financial assets 317.328 160.538 377.866 – – –
Sundry debtors – Brazil and abroad 680 745 1.425 1.863 745 2.608
Total 345.958 79.599 425.557 31.095 475.924 507.019
15. CONTINGENT ASSETS AND LIABILITIES AND LEGAL OBLIGATIONS – TAX AND SOCIAL SECURITY CONTRIBUTIONS
a) Adherence to the program for installment payment and discharging of tax debts (REFIS/Tax Amnesty – Law 12.865/2013)
On December 31, 2013, considering the terms and benefits offered by the tax amnesty program enacted by the Brazilian government, through Law 12865/13, the
Institution’s management reassessed, together with its legal counsel, the convenience of participating in this program. As a result, management decided to withdraw
from specific proceedings and to settle immediately the related contingent amount.
The proceedings totaled R$ 357 at the Individual and R$ 948 on a Consolidated basis, generating a positive impact on the gross amount of R$ 213 at the Individual,
and a negative impact at the Consolidated of R$ 140, positive impact R$ 64 net of tax at the Individual and a negative impact R$ 279 net of tax at the Consolidated,
respectively, and are mainly represented by PIS process (base year 1996) in Banco Pine, fully provisioned. This process was paid in full with judicial deposit in the
amount of R$ 173 and for processes PIS (based year 2007) in the amount of R$ 10, IRPJ year of 1996 amounting to R$10 and CSLL years 1997/98 amounting to R$
571. In Pine Investimentos DTVM, had not acerued amounts. These proceedings were partially paid with judicial deposit in the amount of R$ 138.
b) Contingent assets
There were no contingent assets at September 30, 2014 and December 31, 2013.
c) Legal obligations – taxes and social security
These are legal and administrative processes related to tax and social security obligations. The main processes are as follows:
PIS: The Institution and Pine Investimentos sought an injunction designed to render ineffective the wording of Article 3, paragraph 1, of Law 9718/1998, which
changed the calculation base of PIS and COFINS so that all corporate revenues are liable to these contributions. Prior to this rule, suspended in innumerous recent
decisions by the Federal Supreme Court, only revenues derived from services rendered and the sale of merchandise were liable to these contributions. The injunction
filed by Banco Pine received a partially favorable judgment and the appeal lodged by the Federal Government was dismissed. The admissibility of the Special and
Extraordinary Appeals filed by the Federal Government was denied and the judgment was made final and unappealable on September 17, 2013.
Supported by the opinion of its legal advisors and the patrons of the cause, according to whom the issue lies pacified with the Federal Supreme Court (STF) and no
longer any potential appeal to be filed by the National Treasury, the Banco Pine made a reversal of the related allowance for contingencies relating to the period from
May 2005 through October 2011, considering it no longer represents a legal obligation and it is no longer proboble of loss, which represented the recognition net
revenue totaling R$ 35,163 at the individual entity level and R$ 35,764 at the Consolidated level, for 2013 , which was recorded in the “Other operating income” and
the “tax expenditure” accounts.
In this respect, the Banco Pine will file a request for proof of claim at the Brazilian Federal Revenue authority (RFB), regarding the contributions to PIS which were
overpaid during the period from May 1999 to April 2005, in the historical amount of R$3,522 in the Institution and AS 3,566 on a Consolidated basis, which adjusted for
inflation, based on the variation in the SELIC rate up to March 31, 2014, totaled R$ 8,427 in the Institution and R$ 8,533 on a Consolidated basis. Based on the final
and unappealable judgment and the administrative procedure filed at RFB, a corresponding tax credit was recognized in “Other receivables – Tax recoverable”, as a
counter entry to the “Other operating income” account.
COFINS: In November 2005, the Federal Supreme Court (STF) judged as unconstitutional paragraph 1 of Article 3, of Law 9718/98, which introduced the new
calculation basis for COFINS determination purposes from February 1999, broadening the concept of revenue. Accordingly, the calculation base of COFINS was
decreased and gave rise to the unquestionable right to recover the amount of overpaid tax. The injunction filed against the Federal Government by the Institution
claiming the right to offset the refund of the incorrectly paid amount of COFINS against other current taxes was successful.
Página 30
FEDERAL PUBLIC SERVICE
BRAZILIAN SECURITIES COMMISSION (CVM) PIN
Quarterly Information (ITR) Brazilian corporate legislation
FINANCIAL INSTITUTION Data-Base – 30/09/2014
02056-7 BANCO PINE S/A 62.144.175/0001-20
(A free translation of the original in Portuguese)
06.01 – NOTES TO QUARTERLY INFORMATION
Supported by the opinion of its legal advisors and the patrons of the cause, according to whom the issue lies pacified with the STF and no longer any potential appeal
to be filed by the National Treasury, the Banco Pine made a reversal of the related allowance for contingencies relating to the period from May 2005 through October
2011, considering it no longer represents a legal obligation and it is no longer proboble of loss, which represented the recognition net revenue totaling RS 150,510 at
the individual entity level and R$ 151,357 at the Consolidated level, for 2011 , which was recorded in the “Other operating income” and the “tax expenditure” accounts.
In this context, the Bank has raised the amount of resources it should have the escrow deposit, and soon will file claim for credit clearance with the Federal Revenue
of Brazil (RFB), the values COFINS overpaid during the period June 2000 to April 2005, the historical value of R $ 15,679 in Single and R $ 15,872 Consolidated,
which restated selic until September 30, 2014, totaling R $ 38,557 (R $ 37,744 at December 31, 2013) in Single and R $ 39,010 (R $ 38,188 at December 31, 2013)
Consolidated. In view of the final decision and based on this administrative procedure to be started soon by the RFB, was recognized in the half year ended December
31, 2011, the corresponding tax credit recorded in “Other receivables – Tax recoverable” , matched against the caption “Other operating income”.
The amounts of the legal obligations and respective judicial deposits are presented as follows:
Individual
Allowance TAS Allowance
Social integration program (PIS) – – x – – 34.978 33.218
Social contribution on revenues(COFIN – – – . – – – 169.862
Total – – 34.755 . – – 34.978 203.080
d) Contingencies classified as probable are regularly provided for the year ended September 30, 2014 and December 31, 2013 are comprised as follows:
Individual
Allowance Ma EAS
014
Tax contingencies
Labor contingencies 1.390 575
Civil contingencies 7.510 2.385
Total 9.269 4.729
e) Activity in lial
y provisions
Opening balance 369 1.994 8.239 10.602 35.504 2.409 13.165 51.078
Amount recorded (reversed) – (634) (773) (1.407) 226 (429) (1.886) (2.089)
Adjustments – 30 4 74 526 48 47 621
Closing balance 369 1.390 7.510 9.269 36.256 2.028 11.326 49.610
Opening balance 369 1.994 8.239 10.602 36.076 2.441 13.165 51.682
Amount recorded (reversed) – (634) (773) (1.407) 254 (461) (1.886) (2.093)
Adjustments – 30 4 74 535 48 47 630
Closing balance 369 1.390 7.510 9.269 36.865 2.028 11.326 50.219
Opening balance 716 1.925 9.997 12.638 42.056 4.665 18.298 65.019
Amount recorded (reversed) (659) (654) (2.883) (3.890) (43.005) (2.939) (9.059) (55.003)
Adjustments 6 119 396 521 1.665 199 758 2.622
Closing balance 369 1.390 7.510 9.269 716 1.925 9.997 12.638
Opening balance 723 1.925 9.997 12.645 42.591 4.665 18.298 65.554
Amount recorded (reversed) (660) (654) (2.883) (3.897) (43.557) (2.939) (9.059) (55.555)
Adjustments 6 119 396 521 1.689 199 758 2.646
Closing balance 369 1.390 7.510 9.269 723 1.925 9.997 12.645
1) We present below the main suits and proceedings for which loss is considered possibl
Labor: At September 30, 2014, and December 31, 2013, the Institution had no labor claims classified as possible losses.
Civil: At September 30, 2014, and December 31, 2013, the Institution had no civil claims classified as possible losses.
Tax: At September 30, 2014 the Bank possessed tax cases classified as possible in the amount of R $ 8,531. At December 31, 2013 the Bank did not have tax cases
classified as possible.
Página 31
FEDERAL PUBLIC SERVICE
BRAZILIAN SECURITIES COMMISSION (CVM) PINE
Quarterly Information (ITR) Brazilian corporate legislation
FINANCIAL INSTITUTION Data-Base – 30/09/2014
02056-7 BANCO PINE S/A 62.144.175/0001-20
(A free translation of the original in Portuguese)
06.01 – NOTES TO QUARTERLY INFORMATION
16. BORROWINGS AND ONLENDINGS
py OLE From 3 to NE
EOS O TS BS
Local onlendings – official institutions 36.536 557.605 243.534 76.817 377.044 1.291.536
Foreign onlending transactions 1.651 51.886 134.428 145.032 – 332.997
Foreign borrowing transactions 694.198 520.555 – 73.530 – 1.288.283
Total 732.385 1.130.046 377.962 295.379 377.044 2.912.816
a RES REO From 5 to
ES O E 15 years
Local onlendings – official institutions 279.262 571.229 112.536 116.293 1.141.108
Foreign onlending transactions 2.855 2.835 – – 5.700
Foreign borrowing transactions 425.391 620.396 234.260 – 70.278 1.350.265
Total 487.129 902.513 808.324 112.536 186.571 2.497.073
17. FUNDS FROM ACCEPTANCE AND ISSUANCE OF SECURITIES
a) Funds from exchange acceptances
Go ES RETO a
PTOS 3 years 5 years 15 years Total
Real estate letters of credit (LCI) 192.542 101.392
Agribusiness letters of credit (LCA) 207.103 322.438 69.193 673 – 599.407
Financial bills (LF) 226.054 86.578 500.033 18.646 3.889 835.200
Total 480.969 601.558 670.618 19.765 3.889 1.776.799
Go ES RETO a
PTOS ETS 5 years 15 years
Real estate letters of credit (LCI) 192.542 101.392 342.192
Agríbusiness letters of credit (LCA) 205.726 322.438 69.193 598.030
Financial bills (LF) 226.054 86.578 500.033 18.646 3.889 835.200
Total 479.592 601.558 670.618 19.765 3.889 1.775.422
CERA]
ps From 3 to OLE From 3 to NE
ELO 12 months O TS BS
Real estate letters of credit (LCI) 98-167 172.150 9.969 410 – 280.696
Agribusiness letters of credit (LCA) 323.626 86.643 27.912 161 – 438.342
Financial bills (LF) – 599.368 115.835 19.678 3.486 738.367
Total 421.793 858.161 153.716 20.249 3.486 1.457.405
b) Securities issued abroad
We present below an analysis of the tranches and balances adjusted at the balance sheet dates:
Issuance AS A)
MESA currency rate O EAN
2.091 US$ 2,00% aa + Libor Jun/2014 – 3.197
2.000 US$ 185% aa + Libor Nov/2014 4.946 9.892
1.044 US$ 87% aa+ Libor Jan/2017 2612 2.551
39.333 US$ 30%aa+ Libor Jan/2014 – 7.139
23.529 US$ 4,20% aa + Libor abr/2022 58.961 106.021
20.000 US$ 585% aa + Libor dez/2023 50.011 –
73.000 CLP 6/0%a.a+ Van. uF Dez/2017 67.621 151.994
Total 184.151 280.294
(+) Current (15.941) (21.059)
168,210 259.235
Total long-term ies
18. SUBORDINATED DEBT
A CT Interest rate
“Fixed Rate Notes” Public 06/01/2017 US$125.000 8,75% aa 255.805 306.900
Financial Bills (LF) Private 06/12/2021 R$45.152 141,45% CDI 56.559 53.311
Total 312.364 360.211
(-) Current (7.147) (14.150)
305.217 346.061
Total long-term
Página 32
FEDERAL PUBLIC SERVICE
BRAZILIAN SECURITIES COMMISSION (CVM)
Quarterly Information (ITR) Brazilian corporate legislation
FINANCIAL INSTITUTION. Data-Base – 30/09/2014
02056-7 BANCO PINE S/A 62.144.175/0001-20
(A free translation of the original in Portuguese)
06.01- NOTES TO QUARTERLY INFORMATION
19. EQUITY
a) Capital
Pursuant to the by-laws, subscribed and paid-up capital totals RS 1,112,259 and comprises 121,172,024 (December 31, 2013 – 123,612,756) registered shares, of
which 65,178,483 (December 31, 2013 – 65,178,483) are common shares and 55,993,541 (December 31, 2012 – 58,434,273) are preferred shares with no par value.
The Banco Pine is authorized to increase its capital, without the necessity of any amendment to the by-laws, by up to a further 100,000,000 common or preferred
shares, all of which shall be nominative, book-entry and with no par value, by decision of the Board of Directors.
As deliberated at a meeting of the Board of Directors held on October 15, 2013 and ratified by the Central Bank (BC) on December 23, 2013, capital was increased
from R$ 967,259 to R$ 1,112,259, through the incorporation of part of the balance of the legal reserve in the amount of R $ 17,429, and part of the balance of the
statutory reserves in the amount of R$ 125,571 amounting to R$ 145,000, through the issuance of 12,770,443 new nominative shares, of which 6,733,594 common
shares and 6,036,849 preferred, passing total number from 110,842,313 to 123,612,756 nominative shares, being 65,178,483 common and 58,434,273 preferred
shares.
As approved at the Board of Directors held on February 4, 2013 and ratified by the Central Bank (BC) on April 19, 2013, capital was increased by R$ 31,576 through
the issuance of 2,211,213 new shares, with 1,887,605 to Societe de Promotion et de Participation Pour La Cooperation Economique SA – PROPARCO
(“PROPARCO”) and 323,608 other shareholders, preferred shares, and the capital stock of R$ 935,683 to R$ 967,259, divided into 110,842,313 nominative shares,
with 58,444,889 common shares and 52,397,424 preferred shares, without par value.
b) Reserva de capital
The capital reserve, pursuant to the provisions of Law 11638/07, may only be used to (i) absorb losses which are in excess of retained eamings and the revenue
reserves: (il) increase capital; (ii) cancel treasury shares; and (iv) pay dividends on preferred shares provided that they are entitled to this benefit.
c) Revenue reserve
Banco Pine’s “revenue reserve” account is comprised of legal and statutory reserves. The amount of the “revenue reserves” may not exceed the Banco Pine’s capital,
and any excess must be capitalized or distributed as dividends. The Banco Pine has no account named “other revenue reserves”.
Legal reserve – Pursuant to Law 11638/07 and the by-laws, the Institution must appropriate 5% of its net income for each year to the legal reserve. The legal reserve
shall not exceed 20% of the Institution’s paid-up capital. However, the Institution may choose not to appropriate a portion of its net income to the legal reserve for the
year in which the balance of this reserve plus the capital reserves, exceeds 30% of its capital.
Statutory reserve – Pursuant to Law 11638/07, the by-laws may constitute other reserves, since that determines its purpose, the percentage of net income to be
allocated to these reserves and the maximum amount to be maintained in each statutory reserve. The appropriation of funds to these reserves should not be
approved to the detriment of the mandatory dividend. The Institution recorded a statutory reserve of 100% of its net income, in the amount of R$ 27,693, alter the
appropriation of 5% to the legal reserve of R$ 4,454, the deduction of the payment of interest on own capital of R$ 50,201 and dividends in the amount of RS 6,737, to
maintain the Institution’s operating margin compatible with its asset transactions.
d) Dividends and interest on own capital
Stockholders are entitled to a minimum dividend of 25% of annual net income, adjusted pursuant to Brazilian corporate legislation, subject to the approval of the
General Meeting of stockholders.
In accordance with the provisions of Law 9249/95, interest on own capital was accrued and declared, calculated based on the variation in the long-term interest rate
(TULP)
for the period. This interest on own capital decreased the expense for income tax and social contribution for period ended September 30, 2014 by R$ 20,080
We present below the dividends and interest on own capital related to income for period ended September 30, 2014:
Amount per share – Total amount – Amount per share
Deta Release date Payment Date 1) 1) (Net of IR) Total amount (net)
Interest on own capital 30/06/2014 17/07/2014 0,1414 16.733 0,1202 14,223
Interest on own capital 01/04/2014 14/04/2014 0,1366 16.530 0,1161 14.051
Dividends 30/06/2014 17/07/2014 0,0276 3,267
Dividends 01/04/2014 14/04/2014 0,0287 3.470
Conforme Carta Circular n.? 3.516/11, os dividendos adicionais propostos ao dividendo mínimo no valor de R$12.236 (R$21.177 em 31 de dezembro de 2013)
encontram-se clasificados na rubrica “Reservas de Lucros”.
We present below the reconciliation of dividends and interest on own capital for period ended September 30, 2014 and 2013:
/2013
Netincome 124.459
Legal reserve (4.454) (6.223)
Calculation base 84.631 118.236
Interest on own capital 50.201 46.334
Withholding tax – IRRF (15%) (7.530) (6.950)
Prepaid dividends 6.737 43.666
Amount proposed 49.408 83.050
% of calculation base 58,38% 70,24%
e) Treasury shares
At the Board of Directors’ Meeting held on May 6, 2014, approved the authorization to acquire own shares of up to Pine 2,423,440 preferred shares for holding in
treasury and subsequent disposal. 2,342,239 shares were repurchased for an amount of R $ 17,536 at an average cost of R $ 7,49.
At the Board of Directors’ Meeting held on March 27, 2014, the cancelation of 2,440,732 preferred shares held in treasury was approved, without a capital reduction,
thus reducing the goodwill reserves in the subscription of shares and statutory reserve. These shares were acquired through the share buyback program approved by
the Board of Directors, in accordance with CVM Instruction No. 10 at 02.14.1980, as amended by CVM Instruction No. 268, at 11.13.1997 and 390 at 07.08.2003
At the Board of Directors’ Meeting held on March 27, 2014, the authorization to acquire up to 852,883 of the Banco Pine’s own preferred shares was approved, to be
held in treasury and subsequently disposed of, as well as payment of variable remuneration for statutory directors of the Banco Pine pursuant to Resolution No.
3.921/10, without a capital reduction. There have already been shares repurchased under this plan, in the amount of R$ 6,718 at an average cost of R$ 7.88.
On September 30, 2014, Banco Pine had 2.268.140 held in treasury (1.918.045 at December 31, 2013) preferred shares issued in the amount of R$ 17,030 (R$
22,083 at December 31, 2013). The market value of these shares was R$ 17,623 (R$ 20,197 at December 31, 2013).
Página 33
FEDERAL PUBLIC SERVICE
BRAZILIAN SECURITIES COMMISSION (CVM) PINE
Quarterly Information (ITR) Brazilian corporate legislation
FINANCIAL INSTITUTION Data-Base – 30/09/2014
02056-7 BANCO PINE S/A 62.144.175/0001-20
(A free translation of the original in Portuguese)
06.01 – NOTES TO QUARTERLY INFORMATION
1) Carrying value adjustments
co]
ETT EMPETE
Available-for-sale financial assets (19.056) (20.308)
Marketable securities (19.056) (20.308)
Cash flow hedges (24) .
Hedge’s Object 3.818 –
Hedge instrument (3.842) –
Other (14.500) (7.688)
Income tax 13.468 11.231
Total (20.112) (16.765)
20. STATEMENT OF OPERATIONS
a) Loan operations
ENE
3rd quarter/2014. Accumulated/14 _3rd quarter/2013 Accumulated/13
Advance to depositors 121 227 325 528
Income from loans 135.994 379.203 95.469 241.759
Income from financing 55.387 135.259 45.037 129.919
Income from discounted bills – – 1311 2.301
Income from financing – foreign currency 29.923 65.779 9.170 19.236
Total 221.425 580.468 151.312 393.743
Consolidated
ETT TE ETE TE
Advance to depositors 121 227 325 528
Income from loans 136.595 382.564 100.152 254.687
Income from discounted bills – – – 990
Income from financing 55.387 135.259 44.924 129.583
Income from financing – foreign currency 29.923 65.779 9.170 19.236
Total 222.026 583.829 154.571 405.024
b) Results of securities transactions
ENE
3rd quarter/2014. Accumulated/14 _3rd quarter/2013 Accumulated/13
Income from (expense for) transactions with fixed.income securities (FIDC) 12.037 40.926 786 (253)
Income from transactions with fixed-income securities 81.935 244.467 85.478 271.442
Expense for transactions with fixedincome securities (15.632) (85.010) (19.497) (80.988)
Income from transactions with variable-income securities 2.222 12.062 – –
Expense for transactions with variable-income securities – (329) – –
Total 80.562 262.116 66.767 190.201
TA]
3rd quarter/2013 – Accumulated/13
Income from transactions with fixed-income securities 280.585 90.196 280.628
Expense for transactions with fixedincome securities (15.857) (85.425) (19.387) (80.882)
Total 78.287 245.160 70.809 199.746
c) Funds obtained in the market
Expenses from interbank deposits 2.374 6.912 2.138 6.287
Expenses from time deposits 80.061 260.465 73.708 209.408
Expenses from purchase and sale commitments 12.314 32.867 23.656 76.573
Expense from (income from) securities issued abroad 59.792 52.358 18.679 75.241
Expenses from contribution to credit guarantee fund 3.641 11.422 3.873 11.946
Expenses from agríbusiness letters of credit 16.442 39.243 4.938 16.129
Expenses from financial bills 22.978 61.602 17.833 44.653
Expenses from real estate letters of credit 8.648 23.009 1.889 2.388
Total 206.250 487.878 146.714 442.620
Página 34
FEDERAL PUBLIC SERVICE
BRAZILIAN SECURITIES COMMISSION (CVM) PINE
Quarterly Information (ITR) Brazilian corporate legislation
FINANCIAL INSTITUTION Data-Base – 30/09/2014
02056-7 BANCO PINE S/A 62.144.175/0001-20
(A free translation of the original in Portuguese)
06.01 – NOTES TO QUARTERLY INFORMATION
ET]
ETA TE
Expenses from interbank deposits 2.028 5.938
Expenses from time deposits 69.738 200.601
Expenses from purchase and sale commitments 26.856 82.557
Expense from (income from) securities issued abroad 18.679 75.241
Expenses from contribution to credit guarantee fund 3.873 11.946
Expenses from agríbusiness letters of credit 4.938 16.129
Expenses from financial bills 17.833 44.653
Expenses from real estate letters of credit 1.889 2.383
Total 145.834 439.448
d) Borrowings and onlendings
DEIA
rd quarter/2014Accumulated/14 – 3rd quarter/2013 – Accumulated/13
Expenses from onlendings (BNDES) 13.558 34.920 8.668 26.468
Expenses from foreign onlendings – Resolution 3844 2.584 5.013 53 199
Expenses from payables to foreign bankers 116.647 132.155 31.282 104.299
Expenses from fromeign borrowings 532 1.446 491 1.467
Total 133.321 173.534 40.494 132.433
TA]
13 Accumulated/13
Despesas de repasses do BNDES 26.468
Despesas de repasses do exterior – Resolugáo n.? 3.844 2.584 5.013 53 199
Despesas de obrigagóes com banqueiros no exterior 116.647 132.155 31.282 104.299
Despesas de obrigagóes com cotistas seniores de FIDC – – 491 1.467
Despesas de empréstimos no exterior 532 1.446 – –
Total 133.321 173.534 40.494 132.433
e) Income from services rendered
Individual
3rd quarter/2014 Accumulated/14 _ 3rd quarter/2013 – Accumulated/13
3.963 14.120 8.592 23.647
¡Commission of guarantees 12.355 34.024 11.042 29.202
Commission of intermediary services 1.565 6.365 2.606 11.346
Other 5 27 6 27
Total 17.888 54.536 22.246 64.222
Consolidated
ETT E TT E
3.968 14.120 8.592 23.647
Commission of guarantees 12.355 34.024 11.042 29.202
Commission of intermediary services 8719 20.267 11.995 37.228
Other 37 119 49 242
Total 25.074 68.530 31.678 90.319
f) Personnel expenses
Individual
EXA TAE MOI TOTES TE
Salaries 15.033 42613 13.802 41.793
Benefits 1.980 6.225 2.040 6211
Social charges 5.009 14.604 4.556 19.839
Directors’ fees 377 1.031 231 715
Training 58 183 58 195
Interms 65 240 76 270
Total 22.522 64.896 20.763 163.023
ETA]
3rd quarter/2014 Accumulated/14 – 3rd quarter/2013 – Accumulated/13
Salaries 16.455 46.727 15.479 44.620
Benefits 2.086 6.554 2.180 6.521
Social charges 5.200 15.119 4.828 14.491
Directors” fees 378 1.033 235 727
Training 62 200 58 199
Interns 7 267 a 305
Total 24.252 69.900 22.871 166.863
Página 35
FEDERAL PUBLIC SERVICE
BRAZILIAN SECURITIES COMMISSION (CVM) PINE
Quarterly Information (ITR) Brazilian corporate legislation
FINANCIAL INSTITUTION Data-Base – 30/09/2014
02056-7 BANCO PINE S/A 62.144.175/0001-20
(A free translation of the original in Portuguese)
06.01 – NOTES TO QUARTERLY INFORMATION
9) Other administrative expenses
DEIA
ETA EN TAE
Water, electricity and gas 335 128 358
Rents 7.083 2.238 6.714
Leased assets 723 268 766
Communications 2.531 845 2.601
Charitable contributions 25 24 42
Maintenance and repair of assets 1.429 521 1.475
Materials 106 42 117
Data processing 6.314 1.804 6.019
Promotions and public relations 2.333 850 2.485
Insurance 246 219 286
Financial system services 12.058 4.085 11.498
Third-party services 2.046 944 2.610
Surveillance and security services 3.833 1.054 3.369
Specialized technical services 9.998 4.510 10.413
Transportation 843 289 1.005
Travel 1.756 745 2.027
Other administrative expenses 9.295 3.733 11.502
Amortization and depreciation 2.949 1.250 4.298
Total 63.903 23.549 167.585
Consolidated
ETT E TT E
Water, electric 61 134 369
Rents 2.527 7.502 2.373 6911
Leased assets am 723 268 766
Communications 837 2.547 854 2.610
Charitable contributions 24 25 24 42
Maintenance and repair of assets 517 1.432 522 1.479
Materials 41 106 42 117
Data processing 2.052 6.654 1.899 6.132
Promotions and public relations 796 2.397 995 2.688
Insurance 143 261 219 286
Financial system services 4.303 13.308 4.247 11.795
Third-party services 959 2.810 1.087 2.842
Surveillance and security services 1.226 3.833 1.054 3.369
Specialized technical services 2.805 10.603 4.732 10.820
Transportation 228 854 297 1.021
Travel 604 1.883 820 2.222
Other administrative expenses 3.378 9.602 3.753 11.606
Amortization and depreciation 875 3.097 1.298 4.346
Total 21.647 67.990 24.568 169.421
h) Tax expenses
DEIA
3rd quarter/2014 Accumulated/14 – 3rd quarter/2013 – Accumulated/13
Service tax (ISS) 967 3.440 1-194 3,232
Social contribution on revenues(COFINS) 773 2.307 925 2.555
¡al integration program (PIS) 126 375 282 1.866
281 814 215 657
2.147 6.936 2.616 8.310
ETA]
3rd quarter/2014 Accumulated/14 – 3rd quarter/2013 – Accumulated/13
Service tax (ISS) 1.328 4.086 1.679 4.557
Social contribution on revenues(COFINS) 1.015 2.806 1.281 3.498
program (PIS) 175 am 358 2.072
299 868 249 857
2.817 8,231 3.567 10.979
i) Other operating income
NTE
Recovery of charges and expenses 1.520 789 1.544
Indexation sit 886 2.295
Adjustment of judicial deposits 2.473 9.260 2.288 6.101
Reversal of provision for labor, tax and ci 1.250 3.453 2.003 9.264
Reversal of provision for FIDC – – 3 1.605
Other operating income 337 1311 291 1.592
Reversal of provision for derivative – 3.727 – –
Total 5.308 20.382 6.260 22.401
Página 36
FEDERAL PUBLIC SERVICE
BRAZILIAN SECURITIES COMMISSION (CVM)
Quarterly Information (ITR)
FINANCIAL INSTITUTION.
Brazilian corporate legislation
Data-Base – 30/09/2014
PINE
02056-7 BANCO PINE S/A.
(A free translation of the original in Portuguese)
06.01 – NOTES TO QUARTERLY INFORMATION
Recovery of charges and expenses
Indexation
Adjustment of judicial deposits
Reversal of provision for labor, tax and ci
Reversal of provision for FIDC
Other operating income
Reversal of provision for derivative
Total
j) Other operating expenses
Labor and civil proceedings
Expense for assignment
Indexation expense
Other provisions
Other operating expenses
Interest on capital
Total
Labor and ci
proceedings
Expense for assignment
Provision for FIDO
Expense obligations for investment fund shares
Other provisions
Other operating expenses
Interest on capital
Total
ETT E E TciE
815 1.565 789
484 1.125 906
2491 9.319 2.302
1.258 3.461 2.033
(616) 2.:192 20
– 3.728 –
4.732 21.390 6.050
3rd quarter/2014 -Accumulated/14 – Srd quarter/2013
83 506 –
46.004 47.319 –
785 244 –
17.225 17.225 –
210 3.293 1.308
16.938 50.201 15.638
81.245 118.788 16.946
A eE)
83 506
46.004 47.319 –
13.478 45.213 3.037
17.225 17.225 –
217 3.599 1.272
16.938 50.201 15.638
93.945 164.063 19.947
Consolidated
Accumulated/13
1.548
2.343
6.138
9.294
1.602
CA
NTE
99
6.811
5.092
46.334
58.336
A]
MATE
128
6.811
4,929
7.181
5.148
46.334
70.531
k) Non-operating income (expense)
At September 30, 2014, the amount of R$ 15,669 in the Individual and in the Consolidated (September 30, 2013 – R$ 7,176) corresponds mainly to the sale of assets
received as payment in kind for the settlement of loan operations.
21. INCOME TAX AND SOCIAL CONTRIBUTION
Reconciliation of expenses for income tax and social contribution on net income:
EAT
ETA ae
Income before income tax (IRPJ) and social contribution (CSLL)
and less profit sharing. 9.799 101.615 48.259 139.942
Interest on own capital (16.938) (50.201) (15.638) (46.334)
Income before taxes on income (7.139) 51.414 32.621 93.608
Current rate 40% 40% 40% 40%
Expected expense for IRPJ and CSLL, based on current tax rate 2.856 (20.566) (13.048) (37.443)
Permanent differences 5.962 8.036 5.032 21.960
Equity in the results of investees 5.924 5.159 3.385 8.524
Other adjustments 38 2.877 1.647 13.436
Income Tax and Social Contribution 8.818 (12.530) (6.016) (15.483)
ETA]
3rd quarter/2014 Accumulated/14 – 3rd quarter/2013 – Accumulated/13
Income before income tax (IRP4) and social contribution (CSLL)
and less profit sharing. 11.257 105.400 51.249 146.674
Interest on own capital (16.938) (50.201) (15.638) (46.334)
Income before taxes on income (5.681) 55.199 35.611 100.340
Current rate 40% 40% 40% 40%
Expected expense for IRPJ and CSLL, based on current tax rate 2.272 (22.080) (14.244) (40.136)
Permanent differences 5.088 5.765 3.238 17.921
Equity in the results of investees 5.924 5.159 3.385 8524
Other adjustments (636) 606 (147) 9.397
Income Tax and Social Contribution 7.360 (16.315) (11.006) (22.215)
Página 37
FEDERAL PUBLIC SERVICE
BRAZILIAN SECURITIES COMMISSION (CVM)
Quarterly Information (ITR) Brazilian corporate legislation
FINANCIAL INSTITUTION. Data-Base – 30/09/2014
02056-7 BANCO PINE S/A 62.144.175/0001-20
(A free translation of the original in Portuguese)
06.01 – NOTES TO QUARTERLY INFORMATION
22. RELATED-PARTY TRANSACTIONS
a) Management compensation
In 2012, the Institution approved the new Compensation Plan which addresses the standards and guidelines for the payment of fixed and variable compensation
applicable to the members of the Board of Directors and statutory directors and, at the discretion of the specific committee, other executive officers with important
positions and functions, in accordance with the provisions of Resolution 3921/10, of the National Monetary Council.
The new Plan has the following main objectives: (¡) alignment of the Institution’s executive compensation practices with its risk management policy; (ii) prevention of
conduct that increases risk exposure to levels above those considered prudent in the short, medium and long-term strategies adopted by the Institution; (ii) creation of
an instrument designed to attract and retain talent for the Institutior’s key positions; and (iv) adaptation of the compensation policy to meet the requirements of
Resolution 3921/10.
The compensation defined in the Plan takes the following into consideration: (1) the Institution’s current and potential risks; (i) the Institution’s overall result, in
particular, recurring realized income (net book income for the period adjusted based on unrealized results and excluding the effects of controllable non-recurring
events): (ii) capacity to generate cash flows; (iv) the economic environment in which the Institution operates and its related trends; (v) long-term sustainable financial
bases and adjustments to future payments, based on the risks assumed, fluctuation in capital costs and liquidity projections; (vi) the individual performance of the
Directors based on the target agreements entered into by each director as established in the profit share payment and filed at the Institutior’s head office; (vii) the
performance of the business unit; and (vii) the relation between the Directors” individual performance, the business unit performance and the Institution’s overall
performance.
Variable compensation is calculated as follows:
a) up to 50% of the amount established for variable compensation is paid in kind, at the same time as profit share payment.
b) the amount corresponding to 10% of that established for variable compensation will be paid in preferred shares of the Institution at the same time as profit share
payment.
c) the amount corresponding to the remaining 40% of variable compensation will be paid in preferred shares of the Institution and will be granted to the employee at
the same time as the payment of the amount in kind. The right to dispose of these shares will be on a “Deferred” basis, increasing as does the Director’s level of
The delivery of the shares related to deferred variable compensation attributable to the Directors will only occur if none of the following are verified during the
applicable deferral period: (i) a significant decrease in realized recurring income; loss in the Institution or business unit, or (ii) verification of errors in accounting
and/or administrative procedures which affect the results determined during the vesting period of the right to variable compensation.
The Banco Pine’s Compensation Committee, which was constituted at the general meeting held on January 16, 2012, will be responsible for (i) presenting proposal
to the board of directors regarding the various forms of fixed and variable compensation, as well as benefits and the special recruitment and termination programs;
monitoring the implementation and operation of the Institutio’s management compensation policy; (ii) reviewing annually the Institutior’s directors’ compensation
policy, recommending adjustments or improvements to the board of directors; (iv) recommending to the board of directors the total amount of the directors’
compensation to be submitted to the general meeting, in accordance with Article 152 of Brazilian Corporation Law; (v) evaluating future internal and extemal scenarios
and their possible impact on the Institution’s directors’ compensation policy; (vi) analyzing the Institutior’s directors’ compensation policy in relation to market practices,
to identify significant differences as compared to peer companies, proposing necessary adjustments; (vii) ensuring that the directors’ compensation policy is
permanently in line with the risk management policy, the Institution’s current and expected financial position and the provisions of this resolution; and (vii) preparing
annually, within a period of ninety days as from December 31, of each year, a Compensation Committee Report, as required by CMN Resolution 3921/10.
In the period ended September 30, 2014, variable remuneration was determined in the amount of R$29,638, (At September 30, 2013 – R$24,145), and the expense
was determined in the amount of R$9,367 (At 2013 – R$6,730) in accordance with the criteria defined in the new plan.
idual e Consolidated
ive Board 3rd quarter/2014 _ Accumulated/14 – 3rd quarter/2013
Fixed compensation 2.797 8.565 1960 6.324
Variable compensation 16.678 29.638 11.029 24.145
Short-term benefits 1.472 4.049 597 2.116
Total 20.947 42.252 13.586 32.585
Short-term benefits paid to directors mainly comprise salaries and social security contributions, paid leave and sick pay, profit sharing and bonuses (when payable
within twelve months subsequent to the year-end closing) and non-monetary benefits (such as health care and free or subsidized goods or services).
Employment agreement termination
The employment agreements are valid for an indefinite period. Officers are not entitled to any financial compensation when the employment relationship is terminated
either voluntarily or due to the non-fulfilment of his/her obligations. If the employment agreement is terminated by the Banco Pine, the officer may receive
indemnification. During the period ended September 30, 2014, there was no compensation (September 30, 2013 – R$466) was paid to officers who left the Institution.
b) Related parties
The related-party transactions mainly with the companies listed in Note 2, are carried out at average amounts, terms and rates practiced in the market, effective on the
corresponding dates with commutative conditions and comprise the following:
Página 38
FEDERAL PUBLIC SERVICE
BRAZILIAN SECURITIES COMMISSION (CVM) PINE
Quarterly Information (ITR) Brazilian corporate legislation
FINANCIAL INSTITUTION. Data-Base – 30/09/2014
02056-7 BANCO PINE S/A 62.144.175/0001-20
(A free translation of the original in Portuguese)
06.01 – NOTES TO QUARTERLY INFORMATION
COTAS)
Accumulated/13
Marketable securities 291.165 661.192 14.259 52.988 4711 3.672
Pine Crédito Privado – FIDO 3.372 8.715 21.808 26.023 (887) (1.926)
FIP Rio Corporate 119.303 97.980 2.222 12.062 3.925 3.925
Pine Crédito Privado – FIDC Agro 168.490 554.497 (9.771) 14.903 1.673 1.673
Demand deposits 749 150 – . . –
Pine Investimentos 7 27 – – – –
Pine Comercializadora de Energia Elétrica – 9 – – – –
Pine Corretora – 6 – – – –
Pine Assessoria 3 14 – – – –
Pine Assessoria em Comercializagáo de Energia – E – – – –
Pine Planejamento Ltda – 9 – – – –
IRE Vil Desenvolvimento Imobiliário Ltda 3 3 – – – –
Administradores e familiares imediatos ‘% 32 73 – – – –
Interbank deposits 43 4.222 (86) (172) (110) (349)
Pine Investimentos 43 4.222 (36) (172) (110) (849)
Time deposits 68.466 117.155 (1.783) (5.011) (3.695) (10.238)
Pine Investimentos 41.681 33.640 (1.092) (2.858) (650) (1.644)
Pine Comercializadora de Energia Elétrica – 3.883 – (98) (1.863) (4.839)
Pine Corretora – 230 – (12) 6 (13)
Pine Assessoria 6.760 38.487 (145) (999) (788) (2.046)
Pine Planejamento Ltda 3.663 19.293 (97) (553) (364) a)
Pine Assessoria em Comercializagáo de Energia – 32 – 0) 0) e)
IRE Vil Desenvolvimento Imobiliário Ltda – 8.507 – – – –
Administradores e familiares imediatos ‘” 16.362 13.083 (449) (490) (24) (983)
Borrowings for issuance of LCA 1.378 – (63) (83) . –
IRE Vil Desenvolvimento Imobiliário Ltda 1.378 – (83) (33) – –
Open market funding 309.829 214.051 (2.681) (4.827) (8.575) (6.504)
Pine Investimentos 299.222 175.263 (3.469) (6.823) (3.268) (6.052)
Pine Crédito Privado – FIDC Agro 10.607 38.788 788 1.996 (69) (69)
IRE Vil Desenvolvimento Imobiliário S/A – – – – (238) (883)
These amounts are not consolidated.
c) Capital ownership
The following table presents the direct investment in common and preferred shares, at September 30, 2014 and December 31, 2013, of stockholders with more than
five percent of total shares and of members of the Board of Directors and Executive Board.
A A Preferred A LE Total
shares shares(%) uc shares (%) uc shares(%)
Individuals 65.178.483 100,00 17.210.589 82.389.072
Board of Directors – – 63.566 0,26 63.566 0,07
Executive Officers – – 6.770.429 28,16 6.770.429 7,59
Total 65.178.483 100,00 24.044.684 100,00 89.223.167 100,00
A A Preferred A LE Total
shares shares(%) uc shares (%) uc shares(%)
58.444.889 100,00 15.410.863 29,41 73.855.752 66,63
Board of Directors – – 3.243.868 6,19 3.243.868 2,93
Executive Officers – – 3.103.532 5,92 3.103.532 2,80
Total 58.444.889 100,00 21.758.263 41,52 80.203.152 72,36
23. COMMITMENTS, GUARANTEES AND OTHER INFORMATION
EME 31/12/2013
Sureties and guarantees 2.896.290 2.114.296
Credit assignment with coobligation – 334
Letter of credit 8.254 8814
Total 2.904.544 2.123.444
24. EMPLOYEE BENEFITS
The Institution makes monthly contributions to a private pension company for VGBL and PGBL plans, at the option of the participant, in an amount equivalent to 1% of
the employee’s gross salary, provided that the employee also contributes at least 1% of his/her gross salary, to supplement their social security benefits, as part of a
defined contribution plan, and this is the sole responsibility of the Institution as sponsor.
For the six-month period ended September 30, 2014 the total of this contribution was R$ 211 (R$ 271 for the year ended September 30, 2013).
25. PROFIT SHARING PROGRAM
Banco Pine has a profit sharing program ratified by the Bank Employees’ Trade Union.
The general assumplions of this program are: (a) business unit performance; (b) establishment of a fund for distribution across the organizatio
of the skills and the meeting of targets in the supporting areas. The related expenses were recognized in the “Profit share” account”.
nd (c) assessment
Página 39
FEDERAL PUBLIC SERVICE
BRAZILIAN SECURITIES COMMISSION (CVM)
Quarterly Information (ITR) Brazilian corporate legislation
FINANCIAL INSTITUTION. Data-Base – 30/09/2014
02056-7 BANCO PINE S/A 62.144.175/0001-20
(A free translation of the original in Portuguese)
06.01- NOTES TO QUARTERLV INFORMATION
26. RISK AND CAPITAL MANAGEMENT
a) Introduction and overview
Banco Pine is exposed to risks resulting from the use of financial instruments which are continuously measured and monitored and has an analysis structure made up
of a board of directors, a council and a committee that assess the following risks:
Credit risk
Liquidity risk
Market risk
Operational risk
Risk management framework
The Board of Directors is responsible for identifying and controlling risks; however, there are other independent areas which are also responsible for managing and
monitoring risks
b) Credit risk
Definition
Credit risk is the exposure to loss in the case of total or partial default of customers or counterparties in fulfiling their financial obligations with the Institution. Credit
risk management seeks to support the definition of strategies, in addition to establishing limits, including an analysis of exposure and trends, as well as the
effectiveness of the credit policy.
Credi
risk management
Duties:
+ Formulate Credit Policies with all of the Institution’s units, including collateral requirements, credit assessment, risk rating and presentation of reports, legal and
documentary procedures, as well as compliance with regulatory and statutory requirements.
+ Establish the structure for approval and renewal of Credit lines. Limits are established and approved by the Credit Committee.
+ Review and assess credit risk. The Credit area evaluates all credit exposure which exceeds established limits, prior to the release of the credit lines to the customers
by the related business unit. Renewals and reviews of credit lines are subject to the same review process.
+ Limit concentration of exposure by counterparties, geographic regions and economic sectors, and by credit rating, market liquidity and country.
+ Develop and maintain the Institution’s risk classification to categorize exposure according to the degree of risk of financial loss and focus management on inherent
risk. The risk classification system is used to calculate credit exposure. The current risk classification structure includes degrees of credit risk and availability of
guarantees or other tools to mitigate credit risk.
+ Offer advice, guidance and specialized techniques to promote credit risk management best practices throughout the Institution.
Credit analysis and granting:
+ Assess the risks involved in transactions and the customers’ ability to settle their obligations according to the contracted terms.
Credit risk controls and management:
+ Perform preventive monitoring of active customers designed to anticipate default in the portfolio of operations involving credit risk, support decisions and commercial
strategies and provide data that permit the Credit Committee and Executive Board to monitor compliance with Banco Pine’s Strategic Planning.
Special Asset Management (Credit recovery department):
+ The Institution has a specific credit recovery area which is designed to support the areas involved in the collections process, and to identify and resolve potential
risks to the Institution, seeking agile and effective solutions to minimize possible losses, to be a source of information regarding payments which are overdue or which
for some reason are no longer certain, and to promote control over the risks which, pursuant to the policy established by the Institution, are managed by the Special
Assets Area.
e) Liquidity risk
Definition
Liquidity risk is associated with possible difficulties the Institution may face in meeting its obligations as they fall due, resulting from its financial liabilities
Liquidity risk management
Liquidity risk management seeks to protect the Institution from possible market developments that generate liquidity issues. Accordingly, the Institution monitors its
portfolios with regards to maturities, volumes and the liquidity of its assets.
Daily control is carried out through reports in which the following items are monitored:
+ Maturity mismatches between payment and receipt flows Group wide.
xx+ Projection of liquidity stress scenarios defined by the Asset-Liability Committee (ALCO).
This information is checked against the Institution’s cash position each day and assessed each week by ALCO.
Liquidity is managed by the Market, Liquidity and P8L Risk Oversight Board, which reports to the Risk Control Oversight Board.
Página 40
FEDERAL PUBLIC SERVICE
BRAZILIAN SECURITIES COMMISSION (CVM) PINE
Quarterly Information (ITR) Brazilian corporate legislation
FINANCIAL INSTITUTION Data-Base – 30/09/2014
02056-7 BANCO PINE S/A 62.144.175/0001-20
(A free translation of the original in Portuguese)
06.01 – NOTES TO QUARTERLY INFORMATION
d) Market risk
i) Definition
Market risks are related to possible monetary losses due to fluctuations in variables that impact market prices and rates. Oscillations of financial variables such as the
price of input material and end products, inflation, interest rates and foreign exchange rates have the potential for causing loss in almost all companies and, therefore,
represent financial risk factors.
The Market Risk to which an institution is exposed is mainly due to three factors: a) exposure – amount exposed to risk; b) sensitivity – the impact of price fluctuations;
and c) variation – the magnitude of price variations. We stress that, among these factors, exposure and sensitivity are controllable by the Institution as part of its
appetite for risk, while variation is a market characteristic, and as a result out of the Institution’s control.
Market risks can be classified under different types, such as interest rate risk, foreign exchange risk, commodities price risk and share price risk. Each type represents
the risk of incurting losses due to oscillations in the variation in the corresponding variable.
ii) Market risk management
Market risk is managed in a centralized manner by an area that is independent in relation to the trading desk and is chiefly responsible for monitoring and analyzing
market risk originating in positions assumed by the Institution vis-a-vis its appetite for risk as defined by ALCO and approved by the Board of Directors.
Market risk is managed daily by the Market Risk department, which calculates the Value at Risk (VaR) and generates the Duration Gap of Primitive Risk Factor
mismatches of assets in the Institution’s portfolio.
Amounts are compared daily to the VaR limits, exposure by Primitive Risk and Stop Loss Factors established by ALCO and approved by the Institution’s Board of
Directors.
For stress tests, scenarios considering bear and bull markets on the Commodities and Futures Exchange, as well as changes to the interest rate curves, are used.
Scenarios generated by ALCO may also be used.
i) Methodologies
Fair value:
The purpose of marking to market (Fair Value) is to ensure that the pricing of assets and liabilities in the Institutior’s portfolio is as transparent as possible for
shareholder protection.
Value at risk (VAR):
VaR measures the worst expected loss in a horizon given by normal market conditions in a given confidence level, that is, VR provides a measure of market risk.
Market risk management uses VaR as a measure of the Group’s potential losses. For the calculations, the parameters used are the horizon of one day and a 99%
confidence interval. The calculation is based on closing market prices, taken from different sources (ANBIMA, BM8.FBovespa, and the Brazilian Central Bank, among
others).
The VaR analysis is performed by market, vertex and risk factors associated with the interest curve, share prices, foreign exchange and commodities. If the VAR limit
is surpassed, an evaluation of the operations will be performed and those that present more risks will be readjusted by the Treasury in order to reduce risks and seek
alignment with the maximum exposure limit. Market liquidity will be evaluated as these operations are readjusted.
iv)Sensitivity analysis
Pursuant to CVM Instruction 475/08, we present below the sensitivity analysis for all transactions involving financial instruments, which expose the Institution to risks
arising from exchange and interest rate fluctuations or any other types of exposure at September 30, 2014:
Sensitivity analysis
Scenarios
O
Fixed interest rate (PRE) Fixed interest rate variations 6.335 (28.832) (57.665)
General Market Price index (IGPM) IGPM coupon variations 30 (459) (917)
Price index (IPCA) IPCA coupon variations 1.006 (6.966) (13.931)
Long:term interest rate (TJLP) TALP variations (6.252) 13.933 27.867
US dollar coupon rate Exchange coupon variation (1.158) (2.647) (6.293)
Other currency coupon rates Exchange coupon variation 55 75 149
Offshore rates (LIBOR + other Offshore) Variation in Offshore rates (1.828) (852) (482)
Currencies Change in exchange variation (272) 2.842 5.684
Total (uncorrelated sum)” (17.371) (56.960) (113.920)
Total (correlated sum)” (2.084) (22.406) (44.588)
“Uncoralated sum: Sum of he resuls oblaied in the worst stress scenaros for each risk factor.
ross test scenarios of all of the risk factors considering the correlation between them.
*Correlatod sum: The worst resulto ho sum of
Página 41
FEDERAL PUBLIC SERVICE
BRAZILIAN SECURITIES COMMISSION (CVM) PINE
Quarterly Information (ITR) Brazilian corporate legislation
FINANCIAL INSTITUTION. Data-Base – 30/09/2014
02056-7 BANCO PINE S/A 62.144.175/0001-20
(A free translation of the original in Portuguese)
06.01 – NOTES TO QUARTERLY INFORMATION
Scenario comprising the variation in market factors between June 30, 2014 and july 11, 2014 (variation in the fixed rate from 10,91% to 10,92% in a 1-year, de 11,68%
to 11,61% in a 3-year curve, variation in the US dollar from 2,2025 to 2,2228 and in the exchange coupon from 0,65% to 1,27% in a 1 year curve)
Scenario MI – Possible 0 Scenario comprising a 25% shock to the market interest rate curve amounts (disclosed by BM8F), and to the closing prices (US dollar and equity), as in the following
‘cenario Il – Possible
example:
Market rate New market rate
Curve (1 year) Shock (1 year)
Fixed merestrale (PREJ 11,78% 257% 14.72%
General Market Price index (IGPM) 5,15% 25% 6,44%
Price index (IPCA) 5,16% 25% 6,45%
Long-term interest rate (TJLP) 6,30% 25% 7,88%
US dollar coupon rate 1,90% 25% 2,37%
Other currency coupon rate 1,33% 25% 1,67%
LIBOR – USD 0,58% 25% 0,73%
LIBOR – Other Currencies 2,4510 25% 3,0638
Currencies
o Scenario comprising a 50% shock to the market interest rate curve values (disclosed by BM8F), and in the closing prices (US dollar and equity), as in the following
Scenario lll – Remote ‘? example:
Market rate New market rate
Curve (1 year) Shock (1 year)
Fixed interest rate (PRE] 11,78% 50% 17.57%
General Market Price index (IGPM) 5,15% 50% 7,73%
Price index (IPCA) 5,16% 50% 7,74%
Long-term interest rate (TJLP) 6,30% 50% 9,46%
US dollar coupon rate 1,90% 50% 2,84%
Other currency coupon rate 1,33% 50% 2,00%
LIBOR – USD 0,58% 50% 0,87%
Currencies 2,4510 50% 3,6765
*For Scenanos land II, the result of the high or low stress scenario was considered to obtain the most significant portolo losses.
e) Capital management
Capital management is an important process used by the Institution to optimize the use of capital and to achieve its strategic objectives. The ongoing enhancement of
credit, market, liquidity and operational risk management and control is essential to providing stability in financial results and to improving capital allocation.
In accordance with BACEN Resolution 3988/11, capital management is defined as an ongoing process for:
+ Capital monitoring and contro! carried out by the Institution
+ Assessing the need for capital to face the risks to which the Institution is subject
+ – Planning targets and capital requirements, based on the Institution’s strategic objectives
Capital policies and strategies are based on a forward-looking approach, anticipating the need for capital as a result of possible changes in market conditions and are
reviewed periodically by the Executive Board and Board of Directors, to ensure that they are compatible with the Institution’s strategic planning.
Financial institutions are required to permanently maintain their Required Regulatory Capital (PRE) compatible with the risks of their activities. Compliance with the
regulatory capital limits is strictly followed by management and monitored daily by the Risk area.
In March 2013, the Bank has made public the rules relating to the definition of capital and regulatory capital requirements in order to implement the recommendations
of the Brazil Committee on Banking Supervision (Basel III). The main objectives are: () improve the ability of financial institutions to absorb shocks from the financial
system or the other sectors of the economy, (ii) reduce the risk of contagion in the financial sector on the real sector of the economy, (ii) assist the maintaining
financial stability, and (iv) promoting sustainable economic growth. The implementation of the new Basel II! rules starts from 1st October 2013.
At September 30, 2014, the Institution’s Basel ratio was 13.83 % (December 31, 2013 – 14.14%), calculated based on the “consolidated financial” statements.
Basileia 111% 31/12/2013
Tier! 1.272.741 1.220.519
Capital 1.272.741 1.220.519
Equity 1.273.419 1.272.408
() Prudential Adjustments’% (678) (51.889)
Martcto-market adjustments – –
Tier 140.447 221.841
Subordinated debt 140.447 221.841
Reference equity (PR) 1.413.188 1.442.360
Risk-weighted assets – RWA 10.220.135 10.203.251
Credit risk 9.525.990 9.311.739
Market risk 544.856 731.173
Operational risk 149.289 160.339
Basel ratio – %. 13,83% 14,14%
Capital Level | 12,45% 11,96%
Capital 12,45% 11,96%
Capital Level Il 1,37% 2,17%
1″ Since October 2013, the reference assets have been determined based on Resolution No. 4.192/13 CMN which provides that the determination is made based on “Consolidated Financial”;
(2) Criteria used, from October 2013, according to Resolution No. 4.192/13 CMN;
Página 42
FEDERAL PUBLIC SERVICE
BRAZILIAN SECURITIES COMMISSION (CVM)
Quarterly Information (ITR) Brazilian corporate legislation
FINANCIAL INSTITUTION. Data-Base – 30/09/2014
02056-7 BANCO PINE S/A 62.144.175/0001-20
(A free translation of the original in Portuguese)
06.01- NOTES TO QUARTERLY INFORMATION
Banco Pine, pursuant to Circular 3477/09, reports information on a quarterly basis, related to the management of risk and required regulatory capital (PRE). The report
containing further details, structure and methodologies is available on the following website: www.pine.com/ri.
1) Risk Management Report – Pillar 3
In October 2013, the Central Bank issued Circular No. 3678 which provides for the disclosure of information relating to risk management, the determination of the
amount of risk-weighted assets and the calculation of the Referential Equity (PR). The new circular takes effect from June 2014, when it gets repealed Circular No. 30
3477. The new publication requirements incorporate the Brazilian regulatory requirements of Pillar 3 of Basel II and present mainly in Basel III.
The content of our new Risk Management Report – Pillar 3 will be available on the website: www.pine.com/ri days after August 29, 2014
9) Índice de Imobilizagáo
In accordance with BACEN Resolution 2286/96, the equity to fixed assets ratio is limited to 50.0%. At September 30, 2014, the equity to fixed assets ratio was 2.17%
(December 31, 2013 – 6.22%).
27. OTHER INFORMATION
a) Pro nal Measure 627
On May 14, 2014, Provisional Measure 627 was enacted into Law 12973, changing the federal tax legislation regarding corporate income tax (IRPJ), social
contribution on net income (CSLL), social integration program (PIS) and social contribution on revenues (COFINS). Law 12973/14 addresses the following, among
+ Revocation of the Transitional Tax Regime (RTT), introduced by Law 11941, of May 27, 2009
+ Taxation of corporate entities domiciled in Brazil, related to equity increases resulting from profit sharing eared abroad by associated and subsidiary companies, and
income earned by individuals resident in Brazil through corporate entities controlled abroad.
The Institution does not expect that Law 12973/14 will have any significant accounting effects of the financial statements of Banco Pine and its subsidiaries.
b) Seguros
The Banco Pine’s insurance strategy is based mainly on risk concentration and materiality, and policies are contracted at amounts established by management,
considering the nature of its business and the advice of its insurance brokers. Insurance coverage at September 30, 2014 is as follows:
MS EN
Directors and Officers Liability (D8O) Civil liability for directors and officers
Vehicles Fire, tobbery and collision for 18 vehicles 2.343
Buildings, machines, furniture and fixtures Any material damage to facilities, machinery and equipment 12.000
Bankers insurance Cash 300
Aircraft insurance Aircraft-part guarantees 623
c) Operating lease
Banco Pine has liabilities generated by operating leases. The amounts corresponding to the commitments for leased equipment are not presented in the balance
sheet, since the related lease agreements do not include a purchase option. The cost of the lease agreements is recognized in the statement of operations in the
“Administrative expenses – leased assets” account.
Expense for leased assets
Machinery and equipment leasing 4,24% 3 an 723 268 766
Total
Página 43
FEDERAL PUBLIC SERVICE
BRAZILIAN SECURITIES COMMISSION (CVM)
Quarterly Information (ITR) Brazilian corporate legislation
FINANCIAL INSTITUTION. Data-Base – 30/09/2014
02056-7 BANCO PINE S/A 62.144.175/0001-20
(A free translation of the original in Portuguese)
06.01 – NOTES TO QUARTERLY INFORMATION
d) Fair value of financial instruments
In accordance with CVM Instruction 235, we present below a comparison between the carrying amounts of financial assets and liabilities measured at amounts other
than fair value and their corresponding fair values at the end of the first six-month period.
Fair value O
Assets
Short-term interbank investments 1.529.132 1.529.132
Loan operations ‘” 5.448.655 5.448.351
Other recelvables !” 822.446 823.645
Total financial assets 7.800.233 7.801.128
Li
Demand deposits ‘” 29.736 29.736
Interbank deposits (% 98.034 98.034
Time deposits ‘“ 2.610.556 2.616.402
Funds from acceptance and issuance of securties !” 1.940.778 1.959.573
Borrowings and onlendings ‘” 2.619.154 2.633.695
Subordinated debtDí
Total financial l
la subordinada (% 328.008 312.364
s 7.626.266 7.649.804
We present below the methods and assumptions used to estimate fair value:
¡) The fair values of the short-term interbank investments substantially approximate their carrying amounts.
ii) The loan operations and other receivables are measured net of the allowance for loan losses. The fair value of these operations represents the discounted value of
the expected future cash flows. The expected cash flows are discounted at current market rates to determine their fair values.
ii) The estimated fair values of the demand and interbank deposits substantially approximate their carrying amounts.
iv) The estimated fair values of the time deposits and other loans which are not quoted in an active market are based on discounted cash flows, using the interest
rates for new debts with similar maturities.
e) Covenants
The Institution has credit lines with certain multilateral agencies which guarantee its loan operations. At September 30, 2014, Banco Pine was in compliance with the
related performance indices.
1) Disclosure of other services rendered by the independent auditors
In compliance with CVM Instruction 381, of January 14, 2008, for the period from January to September 2014, no services were contracted from the independent
auditor other than those related to the external audit. Banco Pine’s policy is to limit the services provided by its independent auditor to safeguard the auditorss
independence and objectivity, in conformity with Brazilian and international standards.
Página 44
Link al archivo en CMFChile: https://www.cmfchile.cl/sitio/aplic/serdoc/ver_sgd.php?s567=b5f441fa19751e22aacafac506d24498VFdwQmVFNUVSWGhOUkVWNVQxUk5NazVSUFQwPQ==&secuencia=-1&t=1682366909