Stock Options

9 Months Ended

Sep. 30, 2019

Stock Options

Stock Options

Note 5 — Stock Options

On April 5, 2012, the Board of Directors adopted the 2012 International Bancshares Corporation Stock Option Plan (the “2012 Plan”). There are 800,000 shares of common stock available for stock option grants under the 2012 Plan, which may be qualified incentive stock options (“ISOs”) or non-qualified stock options. Options granted may be exercisable for a period of up to 10 years from the date of grant, excluding ISOs granted to 10% shareholders, which may be exercisable for a period of up to only five years. As of September 30, 2019, 27,276 shares were available for future grants under the 2012 Plan.

A summary of option activity under the stock option plan for the nine months ended September 30, 2019 is as follows:

				Weighted
		Weighted		average
		average		remaining	Aggregate
	Number of	exercise		contractual	intrinsic
	options	price		term (years)	value ($)
					(in Thousands)
Options outstanding at December 31, 2018	788,977	$	25.91
Plus: Options granted	16,500		35.34
Less:
Options exercised	87,663		17.30
Options expired	—		—
Options forfeited	34,576		26.95
Options outstanding at September 30, 2019	683,238		27.19	5.86	$	7,809
Options fully vested and exercisable at September 30, 2019	322,772	$	22.08	4.62	$	5,339

Stock-based compensation expense included in the consolidated statements of income for the three and nine months ended September 30, 2019 is $240,000 and $744,000, respectively. Stock-based compensation expense included in the consolidated statements of income for the three and nine months ended September 30, 2018 was $285,000 and $755,000, respectively. As of September 30, 2019, there was approximately $2,158,000 of total unrecognized stock-based compensation cost related to non-vested options granted under our plans that will be recognized over a weighted average period of 1.9 years.