Share-Based Compensation

3 Months Ended

Mar. 31, 2015

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Share-Based Compensation

SHARE-BASED COMPENSATION

Stock Options

There were no stock options granted, exercised or forfeited during the three months ended March 31, 2015.

The following table summarizes stock option activity for the three months ended March 31, 2015.

	Number of Options	Weighted- average Exercise Price		Weighted- average Remaining Contractual Term in Years	Aggregate Intrinsic Value
(amount in thousands, except Weighted-average exercise price)
Outstanding at January 1, 2015	3,168,067	$	12.61
Granted	—	—
Exercised	—	—
Forfeited	—	—
Outstanding at March 31, 2015	3,168,067	$	12.61	6.95	$	37,246
Exercisable at March 31, 2015	13,683	$	16.67	2.29	$	119

Restricted Stock Units

There were 146,920 restricted stock units granted during the three months ended March 31, 2015. Of the aggregate restricted stock units granted, 84,392 were granted under the Bonus Recognition and Retention Program and are subject to five-year cliff vesting. The remaining units are subject to three-year waterfall vesting with one third of the amount vesting annually. The following table summarizes restricted stock unit activity for the three months ended March 31, 2015.

	Restricted Stock Units		Weighted- average Grant- date Fair Value
Outstanding and unvested at January 1, 2015	788,971		$	13.00
Granted	146,920		19.09
Vested	(62,605	)	11.45
Forfeited	(1,658	)	14.32
Outstanding and unvested at March 31, 2015	871,628		$	14.13

Total share-based compensation expense for the three months ended March 31, 2015 and 2014 was $1.2 million and $1.0 million, respectively.

Customers Bancorp has a policy that permits its directors to elect to receive shares of voting common stock in lieu of their cash retainers. During the three months ended March 31, 2015, Customers Bancorp issued 10,631 shares of voting common stock with a fair value of $0.3 million to directors as compensation for their services during the first three months of 2015. The fair values were determined based on the opening price of the common stock on the day the shares were issued.