Share Based Compensation Plans

The Corporation established the Access National Corporation 2009 Stock Option Plan (“the 2009 Plan”) which was approved by shareholders on May 19, 2009. The 2009 Plan reserved 975,000 shares of the Corporation’s common stock, $0.835 par value, for issuance under the plan. The 2009 Plan allowed for stock options to be granted with an exercise price equal to the fair market value at the date of grant. The expiration dates on options granted under this plan were generally five years from the grant date.

Total compensation cost for share-based payment arrangements recognized in 2017, 2016, and 2015 was $442 thousand, $335 thousand, and $332 thousand, respectively.

Cash received from option exercises under share-based payment arrangements for 2017, 2016, and 2015 was $2.3 million, $532 thousand, and $380 thousand, respectively.

Changes in the stock options outstanding under the 2009 Plan, for the years ended December 31, 2017, 2016 and 2015 are summarized as follows:



	Year Ended December 31,
	2017				2016				2015
	Number of Options		Weighted Average Exercise Price		Number of Options		Weighted Average Exercise Price		Number of Options		Weighted Average Exercise Price
Outstanding at beginning of year	481,381		$	16.52	407,832		$	15.33	316,423		$	14.02
Granted	185,600		27.85		129,550		18.77		125,434		18.03
Exercised	(155,769	)	14.60		(43,801	)	12.15		(29,975	)	12.62
Lapsed or canceled	(3,720	)	15.69		(12,200	)	16.54		(4,050	)	16.40
Outstanding at end of year	507,492		$	21.26	481,381		$	16.52	407,832		$	15.33
Options exercisable at end of year	142,859		$	16.65	173,781		$	14.49	105,889		$	12.99

Options outstanding and exercisable at year end 2017 were as follows:



	Options Outstanding						Options Exercisable
		Weighted- Average	Weighted					Weighted- Average	Weighted
Range of		Remaining	Average					Remaining	Average
Exercise	Number	Contractual	Exercise		Intrinsic		Number	Contractual	Exercise		Intrinsic
Price	Outstanding	Life (in yrs)	Price		Value		Exercisable	Life (in yrs)	Price		Value
$12.79-$19.85	311,142	1.89	$	17.24	$	3,297	139,484	1.26	$	16.50	$	1,582
$20.34-$28.17	196,350	4.32	27.62		56		3,375	3.45	22.99		17
	507,492	2.83	$	21.26	$	3,353	142,859	2.91	$	16.65	$	1,599

The fair value of stock options granted was estimated using the Black Scholes option pricing model with the following weighted average assumptions:



	Year Ended December 31,
	2017			2016			2015
Expected life of options granted	5.00 Years			4.12 Years			4.09 Years
Risk-free interest rate	1.49		%	1.25		%	1.06		%
Expected volatility of stock	29		%	30		%	30		%
Annual expected dividend yield	3		%	3		%	3		%
Fair value of granted options	$	1,143,434		$	473,272		$	357,456
Nonvested Options	364,633			307,600			301,943

The total intrinsic value of options exercised during the years ended December 31, 2017, 2016, and 2015 was $2.0 million, $340 thousand, and $239 thousand, respectively. The weighted average grant date fair value of options granted during the years 2017, 2016, and 2015 were $6.16, $4.12, and $2.85, respectively.

The total unrecognized compensation cost related to non-vested share based compensation arrangements granted under the 2009 Plan as of December 31, 2017 was $1.1 million. The cost is expected to be recognized over a weighted average period of 1.6 years.

In August 2017 the Corporation established the Access National Corporation 2017 Equity Compensation Plan (“the 2017 Plan”) which was approved by shareholders on October 26, 2017. The 2017 Plan authorizes the granting of stock options, restricted stock, restricted stock units, stock appreciation rights, performance units and performance cash awards. Awards may be granted under the 2017 Plan to key employees, non-employee directors, consultants and advisors to the Corporation and certain of its subsidiaries. The 2017 Plan reserves 1.5 million shares of the Corporation's common stock, $0.835 par value, for issuance under the 2017 Plan. As of December 31, 2017, no equity awards had been granted under the 2017 Plan. Awards previously granted under the 2009 Plan will remain outstanding and valid in accordance with their terms, but no new awards will be granted under the 2009 Plan.