Share-Based Compensation

3 Months Ended

Mar. 31, 2016

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

Share-Based Compensation

SHARE-BASED COMPENSATION

Stock Options

The following table summarizes stock option activity for the three months ended March 31, 2016.

	Number of Options		Weighted- average Exercise Price		Weighted- average Remaining Contractual Term in Years	Aggregate Intrinsic Value
(amounts in thousands, except Weighted-average exercise price)
Outstanding at December 31, 2015	3,731,761		$	14.33
Granted	10,000		26.55
Exercised	(31,169	)	10.76			394
Forfeited	—		—
Expired	—		—
Outstanding at March 31, 2016	3,710,592		$	14.40	6.55	$	34,290
Exercisable at March 31, 2016	905,561		$	9.57	4.30	$	12,731

Cash received from the exercise of options during the three months ended March 31, 2016 was $0.3 million with a related tax benefit of $0.1 million.

Restricted Stock Units

There were 149,706 restricted stock units granted during the three months ended March 31, 2016. Of the aggregate restricted stock units granted, 86,654 were granted under the Bonus Recognition and Retention Program and are subject to five-year cliff vesting. The remaining units were granted under the Bancorp's Restated and Amended 2004 Incentive Equity and Deferred Compensation Plan and are subject to either a three-year waterfall vesting with one third of the amount vesting annually or a three-year cliff vesting. The following table summarizes restricted stock unit activity for the three months ended March 31, 2016.

	Restricted Stock Units		Weighted- average Grant- date Fair Value
Outstanding and unvested at December 31, 2015	873,264		$	14.24
Granted	149,706		22.96
Vested	(97,298	)	14.78
Forfeited	(198	)	17.65
Outstanding and unvested at March 31, 2016	925,474		$	15.59

Total share-based compensation expense for the three months ended March 31, 2016 and 2015 was $1.4 million and $1.2 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, 2016, Customers Bancorp issued 11,068 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 2016. The fair values were determined based on the opening price of the common stock on the day the shares were issued.