Stock Options

3 Months Ended

Mar. 31, 2013

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 available for stock option grants under the 2012 Plan. Under the 2012 Plan, both qualified incentive stock options (“ISOs”) and non-qualified stock options (“NQSOs”) may be granted. 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 March 31, 2013, 757,500 shares were available for future grants under the 2012 Plan.

A summary of option activity under the stock option plans for the three months ended March 31, 2013 is as follows:

	Number of options	Weighted average exercise price		Weighted average remaining contractual term (years)	Aggregate intrinsic value ($)
					(Dollars in Thousands)
Options outstanding at December 31, 2012	794,877	$	19.03
Plus: Options granted	—	—
Less:
Options exercised	1,043	11.54
Options expired	22,343	23.50
Options forfeited	14,275	17.15
Options outstanding at March 31, 2013	757,216	18.95		3.63	3,164
Options fully vested and exercisable at March 31, 2013	382,186	23.7		1.64	603

Stock-based compensation expense included in the consolidated statements of income for the three months ended March 31, 2013 and March 31, 2012 was approximately $114,000 and $131,000, respectively.  As of March 31, 2013, there was approximately $1,043,000 of total unrecognized stock-based compensation cost related to non-vested options granted under the Company plans that will be recognized over a weighted average period of 1.9 years.