12:27pm: The Hawks officially announced in a press release that they've exercised Drew's option.
"Larry did an outstanding job this season in guiding our team to the fourth-best record in the Eastern Conference, despite a condensed schedule and unfortunate injuries," said GM Rick Sund. "The Hawks have reached the postseason in each of his years on the bench, and we feel Larry’s experience, expertise and dedication to the game were a key ingredient to our success."
11:40am: The Hawks have picked up their contract option for coach Larry Drew, according to Sekou Smith of NBA.com (via Twitter).
There were rumblings earlier this week that Drew might not have his option for 2012/13 exercised by the Hawks, after failing to make it past the Celtics in round one. But Atlanta's decision to pick it up means Drew will be back on the team's bench for a third season. In his first two years in Atlanta, Drew led the team to an 84-64 record, with one playoff series win, in 2011.
Zach Lowe of SI.com (via Twitter) called the Hawks' decision the "organizational equivalent of [a] shoulder shrug," arguing that Drew is a solid coach, but not one that will take the team to the next level.