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Stock Options | 12 Months Ended
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Dec. 31, 2018
Stock Options |
Stock Options | (15) 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 December 31, 2018, 10,700 shares were available for future grants under the 2012 Plan. The fair value of each option award granted under the plan is estimated on the date of grant using a Black‑Scholes‑Merton option valuation model that uses the assumptions noted in the following table. Expected volatility is based on the historical volatility of the price of our stock. We use historical data to estimate the expected dividend yield and employee termination rates within the valuation model. The expected term of options is derived from historical exercise behavior. The risk‑free rate for periods within the contractual life of the option is based on the U.S. Treasury yield curve in effect at the time of grant.
|  | 2018 |  | 2017 |
Expected Life (Years) |  | 7.00 |  | — |
Dividend yield |  | 1.73 | % | — | %
Interest rate |  | 2.68 | % | — | %
Volatility |  | 31.65 | % | — | %
(1) No stock options were granted during the twelve months ended December 31, 2017. |  |  |
A summary of option activity under the stock option plans for the twelve months ended December 31, 2018 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, 2017 |  | 668,166 |  | $ | 20.41 |  |  |  |  |  |
Plus: Options granted |  | 234,700 |  |  | 38.27 |  |  |  |  |  |
Less: |  |  |  |  |  |  |  |  |  |  |
Options exercised |  | 84,701 |  |  | 17.89 |  |  |  |  |  |
Options expired |  | — |  |  | — |  |  |  |  |  |
Options forfeited |  | 29,188 |  |  | 22.73 |  |  |  |  |  |
Options outstanding at December 31, 2018 |  | 788,977 |  |  | 25.91 |  | 6.07 |  | $ | 7,587 |
Options fully vested and exercisable at December 31, 2018 |  | 310,108 |  | $ | 19.93 |  | 4.21 |  | $ | 4,486 |
Stock‑based compensation expense included in the consolidated statements of income for the years ended December 31, 2018, 2017 and 2016 was approximately $1,035,000, $903,000 and $1,082,000, respectively. As of December 31, 2018, there was approximately $2,798,000 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 2.1 years. Other information pertaining to option activity during the twelve month period ending December 31, 2018, 2017 and 2016 is as follows:
|  | Twelve Months Ended December 31, |
|  | 2018 |  | 2017 |  | 2016 |
Weighted average grant date fair value of stock options granted |  | $ | 11.78 |  | $ | — |  | $ | 8.74 |
Total fair value of stock options vested |  | $ | 1,077,000 |  | $ | 1,182,000 |  | $ | 1,015,000 |
Total intrinsic value of stock options exercised |  | $ | 2,045,000 |  | $ | 2,595,000 |  | $ | 792,000 |
(1) No stock options were granted during the twelve months ended December 31, 2017. |

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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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -URI http://asc.fasb.org/topic&trid=2228938 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 50 -URI http://asc.fasb.org/subtopic&trid=2208855 + Details
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