Share-Based Compensation

3 Months Ended

Mar. 31, 2014

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Share-Based Compensation

NOTE 9 — SHARE-BASED COMPENSATION

Stock Options

In February 2014, options to purchase an aggregate of 88,000 shares of voting common stock were granted to certain officers and team members. The options are subject to five-year cliff vesting. The fair values of the options were estimated using the Black-Scholes option pricing model. The following table presents the weighted-average assumptions used and the resulting weighted-average fair value of the options granted.

	March 31, 2014
Weighted-average risk-free interest rate		2.20	%
Expected dividend yield		0.00	%
Weighted-average expected volatility		17.61	%
Weighted-average expected life (in years)		7.00
Weighted-average fair value of each option granted	$	4.88

The following table summarizes stock option activity for the three months ended March 31, 2014.

	Number   of Options			Weighted-    average Exercise Price		Weighted- average Remaining Contractual   Term in Years		Aggregate    Intrinsic Value
	(dollars in thousands, except Weighted-average exercise price)
Outstanding at January 1, 2014		2,779,486		$	13.66
Granted		88,000			19.42
Forfeited		(5,000	)		14.94
Outstanding at March 31, 2014		2,862,486		$	13.84		7.93	$	20,183
Exercisable at March 31, 2014		14,438		$	20.06		3.07	$	59

Also in February 2014, 142,395 restricted stock units were granted to certain officers and team members. Of the aggregate restricted stock units, 47,760 were granted under the Bonus Recognition and Retention Program and are subject to five-year cliff vesting. The remainders are subject to three-year cliff vesting. The following table summarizes restricted stock activity for the three months ended March 31, 2014.

	Restricted Stock Units			Weighted- average grant- date fair value
Outstanding and unvested at January 1, 2014		613,464		$	13.00
Granted		142,395			19.42
Vested		(34,414	)		12.00
Outstanding and unvested at March 31, 2014		721,445		$	14.30

Total share-based compensation expense for the three months ended March 31, 2014 and 2013 was $1.0 million and $0.7 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. In January 2014, Customers Bancorp issued 25,541 shares of voting common stock with a fair value of $0.5 million to the directors as compensation for their services during 2013. In March 2014, Customers Bancorp issued 10,058 shares of voting common stock with a fair value of $0.2 million to directors as compensation for their services during first quarter 2014. The fair values were determined based on the opening price of the common stock on the day the shares were issued.