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Cash and stock-based compensation plans | 12 Months Ended
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Dec. 31, 2013
Disclosure Of Compensation Related Costs, Share-Based Payments [Abstract] |
Disclosure Of Compensation Related Costs Share Based Payments [Text Block] |
17. | Cash and stock-based compensation plans
The Bank has established equity compensation plans under which it manages restricted stock, restricted stock units and stock purchase option plans to attract, retain and motivate Directors and top employees and compensate them for their contributions to the growth and profitability of the Bank. Vesting conditions for each of the Bank’s plans are only comprised of specified requisite service periods. A. 2008 Stock Incentive Plan – Directors and Executives In February 2008, the Board of Directors of the Bank approved an incentive plan for Directors and Executives allowing the Bank to grant restricted stock, restricted stock units, stock purchase options, and/or other similar compensation instruments. The maximum aggregate number of shares which may be granted under this plan is three million “Class E” common shares. The 2008 Stock Incentive Plan is administered by the Board of Directors which has the authority in its discretion to select the Directors and Executives to whom the Award may be granted; to determine whether and to what extent awards are granted, and to amend the terms of any outstanding award under this plan. Restricted stocks are issued at the grant date, but are withheld by the Bank until the vesting date. Restricted stocks are entitled to receive dividends. A restricted stock unit is a grant valued in terms of the Bank’s stock, but no stock is issued at the grant date. Restricted stock units are not entitled to dividends. The Bank issues and delivers common stock at the vesting date of the restricted stock units. During 2013, 2012 and 2011, the Board of Directors approved the grant of restricted stock to Directors and stock options and restricted stock units to certain Executives of the Bank, as follows:
Restricted stock – Directors In the years 2013, 2012 and 2011, the Board of Directors granted 28,500, 32,317 and 25,541“Class E” common shares. The fair value of restricted stock granted was based on the stock closing price in the New York Stock Exchange of the “Class E” shares on July 16, 2013, October 16, 2012, July 17, 2012, and July 15, 2011. The fair value of restricted stock granted totalled $713 thousand in 2013, $714 thousand in 2012 and $462 thousand in 2011, of which $637 thousand, $428 thousand and $414 thousand were charged against income during 2013, 2012 and 2011, respectively. The remaining cost pending amortization of $1,401 thousand at December 31, 2013 will be amortized over 2.39 years. Restricted stock vest on the grant’s date anniversary, as follows:
Year of Grant |  |  |
2013 |  | 35% in the first and second year, 30% in the third year |
2012 |  | 25% each year |
2011 |  | 20% each year |
A summary of the restricted stock granted to Directors is presented below:
|  |  |  |  | Weighted average |
|  |  |  |  | grant date fair |
|  | Shares |  |  | value |
Outstanding at January 1, 2011 |  | 88,027 |  | $ | 13.07 |
Granted |  | 25,541 |  |  | 18.07 |
Vested |  | (31,563) |  |  | 13.14 |
Outstanding at December 31, 2011 |  | 82,005 |  |  | 14.59 |
Granted |  | 32,317 |  |  | 22.09 |
Vested |  | (23,493) |  |  | 14.35 |
Outstanding at December 31, 2012 |  | 90,829 |  |  | 17.32 |
Granted |  | 28,500 |  |  | 25.00 |
Vested |  | (34,467) |  |  | 16.84 |
Outstanding at December 31, 2013 |  | 84,862 |  | $ | 20.10 |
Expected to vest |  | 84,862 |  | $ | 20.10 |
The fair value of vested stock during the years 2013, 2012 and 2011 was $581 thousand, $337 thousand and $415 thousand, respectively. Restricted Stock Units and Stock Purchase Options granted to certain Executives The Board of Directors approved the grant of stock purchase options and restricted stock units to certain Executives of the Bank with a grant date fair value of $2.1 million in 2013, $3.7 million in 2012 and $1.7 million in 2011. The 2013 grant was in restricted stock units only. In 2012, the distribution of the fair value in restricted stock units and stock purchase options was $3.2 million and $0.5 million, respectively. In the year 2011, the distribution of the fair value in restricted stock units and stock purchase options was $1.5 million and $0.2 million, respectively. The Bank grants one “Class E” share per each exercised option or vested restricted stock unit. Restricted stock units: The fair value of the stock units was based on the “Class E” stock closing price in the New York Stock Exchange on the grants date. These stock units vest 25% each year on the grant date’s anniversary.
Compensation costs of the restricted stock units are amortized during the period of restriction. Costs charged against income during 2013, 2012 and 2011 due to the amortization of these grants totaled $2,077 thousand, $1,317 thousand and $1,020 thousand, respectively. The remaining compensation cost pending amortization of $2,883 thousand in 2013 will be amortized over 2.55 years. A summary of the status of the restricted stock units granted to certain Executives is presented below:
|  |  |  |  |  | Weighted |  |  |  |
|  |  |  | Weighted |  | average |  |  |  |
|  |  |  | average grant |  | remaining |  |  | Aggregate |
|  |  |  | date fair |  | contractual |  |  | intrinsic value |
|  | Stock units |  | value |  | term |  |  | (thousands) |
Outstanding at January 1, 2011 |  | 222,710 |  | $ | 10.96 |  |  |  |  |  |
Granted |  | 94,496 |  |  | 15.84 |  |  |  |  |  |
Forfeited |  | (20,931) |  |  | 12.63 |  |  |  |  |  |
Vested |  | (69,865) |  |  | 11.09 |  |  |  |  |  |
Outstanding at December 31, 2011 |  | 226,410 |  |  | 12.80 |  |  |  |  |  |
Granted |  | 181,598 |  |  | 17.52 |  |  |  |  |  |
Forfeited |  | (54,367) |  |  | 13.88 |  |  |  |  |  |
Vested |  | (85,249) |  |  | 12.31 |  |  |  |  |  |
Outstanding at December 31, 2012 |  | 268,392 |  |  | 15.93 |  |  |  |  |  |
Granted |  | 114,070 |  |  | 18.76 |  |  |  |  |  |
Forfeited |  | (15,223) |  |  | 16.81 |  |  |  |  |  |
Vested |  | (124,490) |  |  | 16.08 |  |  |  | $ | 1,067 |
Outstanding at December 31, 2013 |  | 242,749 |  | $ | 17.13 |  | 2.30 years |  | $ | 2,643 |
Expected to vest |  | 242,749 |  | $ | 17.13 |  |  |  | $ | 2,643 |
The fair value of vested stock during the years 2013, 2012 and 2011 was $2,002 thousand, $1,050 thousand and $775 thousand, respectively. Stock purchase options: The fair value of stock purchase options granted to certain Executives during 2012 and 2011 was estimated using a binomial option-pricing model, based on the following factors:
|  | 2013 |  |  | 2012 |  |  |  | 2011 |
Weighted average fair value per option |  | - |  | $ | 3.01 |  |  | $ | 2.92 |
Weighted average expected term, in years |  | - |  |  | 5.50 |  |  |  | 5.50 |
Expected volatility |  | - |  |  | 33.35 | % |  |  | 30 | %
Risk-free rate |  | - |  |  | 0.18% a 1.34 | % |  |  | 2.52 | %
Expected dividend |  | - |  |  | 5.30 | % |  |  | 4.50 | %
These options expire seven years after the grant date and are exercisable at a rate of 25% each year on the grant date’s anniversary. Related cost charged against income during 2013, 2012 and 2011 as a result of the amortization of these plans amounted to $282 thousand, $485 thousand and $765, respectively. The remaining compensation cost pending amortization of $163 thousand in 2013 will be amortized over a period of 1.80 years. A summary of stock options granted is presented below:
|  |  |  |  |  |  | Weighted |  |  |  |
|  |  |  |  |  |  | average |  | Aggregate |
|  |  |  | Weighted |  | remaining |  | intrinsic |
|  |  |  | average |  | contractual |  | value |
|  | Options |  | exercise price |  | term |  | (thousands) |
Outstanding at January 1, 2011 |  | 1,142,019 |  | $ | 12.39 |  |  |  |  |  |
Granted |  | 72,053 |  |  | 17.81 |  |  |  |  |  |
Forfeited |  | (58,067) |  |  | 12.16 |  |  |  |  |  |
Exercised |  | (240,439) |  |  | 12.27 |  |  |  |  |  |
Outstanding at December 31, 2011 |  | 915,566 |  |  | 12.87 |  |  |  |  |  |
Granted |  | 182,420 |  |  | 18.93 |  |  |  |  |  |
Forfeited |  | (231,639) |  |  | 15.82 |  |  |  |  |  |
Exercised |  | (442,675) |  |  | 12.90 |  |  |  |  |  |
Outstanding at December 31, 2012 |  | 423,672 |  |  | 13.83 |  |  |  |  |  |
Granted |  | - |  |  | - |  |  |  |  |  |
Forfeited |  | (9,780) |  |  | 18.18 |  |  |  |  |  |
Exercised |  | (226,147) |  |  | 12.76 |  |  |  |  |  |
Outstanding at December 31, 2013 |  | 187,745 |  | $ | 14.90 |  | 3.65 years |  | $ | 2,464 |
Exercisable |  | 53,994 |  | $ | 11.58 |  | 1.12 years |  | $ | 888 |
Expected to vest |  | 133,751 |  | $ | 16.24 |  | 4.09 years |  | $ | 1,576 |
The intrinsic value of exercised options during the years 2013, 2012 and 2011 was $2,673 thousand, $3,375 thousand and $1,322 thousand, respectively. During the years 2013, 2012 and 2011 the Bank received $2,886 thousand, $5,709 thousand and $2,949 thousand, respectively, from exercised options. B. Restricted Stock – Directors (Discontinued) During 2003, the Board of Directors approved a restricted stock award plan for Directors of the Bank that was amended in 2007 and subsequently terminated in 2008. No grants were made after the 2007’s grant. The restricted stock vested at a rate of 20% each year on the grant date’s anniversary. Related costs charged against income related to these grants amounted to $41 thousand and $87 thousand in 2012 and 2011, respectively. Since December 31, 2012, the Bank has neither unrecognized compensation costs nor restricted stock related to this plan. A summary of restricted stock granted to Directors is presented below:
|  |  |  | Weighted average
|  |  |  | grant date fair |
|  | Shares |  | value |
Non vested at January 1, 2011 |  | 8,917 |  | $ | 20.77 |
Granted |  | - |  |  | - |
Vested |  | (5,399) |  |  | 20.39 |
Non vested at December 31, 2011 |  | 3,518 |  |  | 21.35 |
Granted |  | - |  |  | - |
Vested |  | (3,518) |  | $ | 21.35 |
Non vested at December 31, 2012 |  | - |  | $ | - |
The total fair value of vested stock during the years ended December 31, 2012 and 2011 was $75 thousand and $110 thousand, respectively.
C. Stock Option Plan 2006 – Directors and Executives (Discontinued) The 2006 Stock Option Plan was terminated in 2008. The options granted under this plan had an expiration term of seven years after the grant date. No grants were made after the 2007’s grant. Related cost charged against income as a result of the amortization of options granted under this compensation plan amounted to $25 thousand in 2011. As of December 31, 2011, there were no compensation costs pending amortization or outstanding options related to this plan. A summary of the share options granted to Directors and certain Executives is presented below:
|  |  |  |  |  |  | Weighted |  |  |  |
|  |  |  |  |  |  | average |  |  |  |
|  |  |  |  |  |  | remaining |  |  | Aggregate |
|  |  |  |  | Weighted average |  | contractual |  |  | intrinsic value |
|  | Options |  |  | exercise price |  | term |  |  | (thousands) |
Outstanding at January 1, 2011 |  | 207,706 |  | $ | 16.34 |  |  |  |  |  |
Forfeited |  | - |  |  | - |  |  |  |  |  |
Exercised |  | (27,552) |  |  | 16.34 |  |  |  |  |  |
Outstanding at December 31, 2011 |  | 180,154 |  |  | 16.34 |  |  |  |  |  |
Forfeited |  | - |  |  | - |  |  |  |  |  |
Exercised |  | (130,350) |  |  | 16.34 |  |  |  |  |  |
Outstanding at December 31, 2012 |  | 49,804 |  |  | 16.34 |  |  |  |  |  |
Forfeited |  | - |  |  | - |  |  |  |  |  |
Exercised |  | (49,804) |  |  | 16.34 |  |  |  |  |  |
Outstanding at December 31, 2013 |  | - |  | $ | - |  | - |  | $ | - |
The intrinsic value of exercised options during the year ended December 31, 2013, 2012 and 2011 was $442 thousand, $570 thousand and $45 thousand, respectively. During the year ended December 31, 2013, 2012 and 2011, the Bank received $814 thousand, $2,130 thousand and $450 thousand from exercised options, respectively. D. Indexed Stock Option Plan (Discontinued) During 2004, the Board of Directors approved an indexed stock purchase option plan for Directors and certain executives of the Bank, which was subsequently terminated in 2006. The indexed stock options had an expiration term of ten years after the grant date. The exercise price is adjusted based on the change in a customized Latin American general market index. There is no compensation cost pending amortization, or outstanding options related to this plan.
A summary of the indexed stock purchase options is presented below:
|  |  |  |  |  |  | Weighted |  |  |  |
|  |  |  |  |  |  | average |  |  |  |
|  |  |  |  |  |  | remaining |  | Aggregate |
|  |  |  | Weighted average |  | contractual |  | intrinsic value |
|  | Options |  | exercise price |  | term |  | (thousands) |
Outstanding at January 1, 2011 |  | 385,469 |  | $ | 17.98 |  |  |  |  |  |
Forfeited |  | - |  |  | - |  |  |  |  |  |
Expired |  | (4,100) |  |  | 11.87 |  |  |  |  |  |
Exercised |  | (55,433) |  |  | 12.12 |  |  |  |  |  |
Outstanding at December 31, 2011 |  | 325,936 |  |  | 12.86 |  |  |  |  |  |
Forfeited |  | - |  |  | - |  |  |  |  |  |
Expired |  | (3,542) |  |  | 14.48 |  |  |  |  |  |
Exercised |  | (322,394) |  |  | 16.41 |  |  |  |  |  |
Outstanding at December 31, 2012 |  | - |  | $ | - |  | - |  | $ | - |
The intrinsic value of options exercised during the years ended December 31, 2012 and 2011 was $1,213 thousand and $235 thousand, respectively. During the years ended December 31, 2012 and 2011, the Bank received $5,292 thousand and $672 thousand, respectively, from exercised options. E. Deferred Compensation Plan (the “DC Plan”) In 1999, the Board of Directors approved the DC Plan, which was subsequently terminated in 2003. The Bank could grant a number of deferred equity units (“DEU”). Eligible employees would vest the DEU after three years of service, and distributions were made on the later of (i) the date the vested DEU were credited to the employee’s account, and (ii) ten years the employee was first credited with DEU. Participating employees received dividends with respect to their unvested deferred equity units. A summary on changes is presented below:
|  | 2013 |  | 2012 |  | 2011 |
Outstanding at beginning of year |  | 534 |  | 1,812 |  | 17,746 |
Exercised |  | (534) |  | (1,278) |  | (15,934) |
Outstanding at end of year |  | - |  | 534 |  | 1,812 |
Related cost charged against income related to this plan amounted to $1 thousand in 2012 and 2011. There is no compensation cost related to this plan in 2013. F. Other plans - Expatriate Officer Plan The Bank sponsors a defined contribution plan for its expatriate top executives based in Panama, which are not eligible to participate in the Panamanian social security system. The Bank’s contributions are determined as a percentage of the annual salaries of top executives eligible for the plan, each contributing an additional amount withheld from their salary. Contributions to this plan are managed by a fund manager through a trust. The executives are entitled to the Bank’s contributions after completing at least three years of service in the Bank. During the years 2013, 2012 and 2011, the Bank charged to salaries expense $120 thousand, $131 thousand and $119 thousand, respectively, that correspond to the Bank’s contributions to this plan. As of December 31, 2013 and 2012, the accumulated liability payable amounted to $176 thousand and $198 thousand, respectively.

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- Definition The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5047-113901 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5070-113901 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 50 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6406099&loc=d3e25284-112666 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 40 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6418621&loc=d3e17540-113929 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5444-113901 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Staff Accounting Bulletin (SAB) -Number Topic 14 + Details
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