Customers’ 2019 Plan is administered by the Leadership Development and Compensation Committee of the Board of Directors. At June 30, 2026 and December 31, 2025, the aggregate number of shares of common stock available for grant under the 2019 Plan was 634,485 and 283,983 shares, respectively.

Share-based compensation expense relating to stock options and restricted stock units is recognized on a straight-line basis over the vesting periods of the awards and is a component of salaries and employee benefits expense. Total share-based compensation expense for the team members’ incentives for the three months ended June 30, 2026 and 2025 was $5.2 million and $4.1 million, respectively. Total share-based compensation expense for the team members’ incentives for the six months ended June 30, 2026 and 2025 was $10.6 million and $8.0 million, respectively. At June 30, 2026, there was $47.0 million of unrecognized compensation cost related to all non-vested share-based compensation awards. This cost is expected to be recognized through 2031.

The fair value of restricted stock units granted under the 2019 Plan is determined based on the closing market price of Customers’ common stock on the date of grant, except for the performance based restricted stock units with market conditions. There were 179,302 and 59,683 restricted stock units granted under the 2019 Plan during the three months ended June 30, 2026 and 2025, respectively. There were 411,523 and 338,498 restricted stock units granted under 2019 Plan during the six months ended June 30, 2026 and 2025, respectively. The grants are mostly subject to either a three-year waterfall vesting (with one third of the amount vesting annually) or a three-year cliff vesting, with 84,073 and 41,823 of those units for the three and six months ended June 30, 2026 and 2025, respectively, also subject to the performance metrics, including total shareholder return, return on average common equity, and average NPAs to total assets over a three-year period relative to the performance of its peer group. The performance conditions are considered probable.

In addition, in 2025, an incentive award of 225,000 performance-based restricted stock units were granted, subject to certain performance conditions under the Company’s 2019 Stock Incentive Plan in connection with an executive appointment. These restricted stock units vest if the executive is employed by the Company as of January 1, 2031 and, at any time during a five-year period commencing on January 1, 2026, the average closing price of the Company’s common stock is, for 20 consecutive trading days, equal to or greater than $125.00.

The tables below present the status of the restricted stock units at June 30, 2026 and 2025, and changes during the three and six months ended June 30, 2026 and 2025:


	Three Months Ended June 30, 2026			Three Months Ended June 30, 2025
	Restricted Stock Units	Weighted- Average Grant- Date Fair Value		Restricted Stock Units	Weighted- Average Grant- Date Fair Value
Outstanding and unvested at April 1,	1,094,607	$	47.67	980,921	$	39.18
Granted	179,302	62.78		59,683	42.77
Vested	(236,369)	26.44		(167,172)	27.25
Forfeited	(27,387)	57.04		(37,489)	45.87
Outstanding and unvested at June 30,	1,010,153	55.61		835,943	41.52


	Six Months Ended June 30, 2026			Six Months Ended June 30, 2025
	Restricted Stock Units	Weighted- Average Grant- Date Fair Value		Restricted Stock Units	Weighted- Average Grant- Date Fair Value
Outstanding and unvested at December 31,	1,028,926	$	42.63	1,110,122	$	32.61
Granted	411,523	65.47		338,498	49.28
Vested	(400,347)	34.84		(570,949)	28.31
Forfeited	(29,949)	56.58		(41,728)	45.20
Outstanding and unvested at June 30,	1,010,153	55.61		835,943	41.52

As a part of Customers’ annual equity compensation program, including the long-term incentive program, the Leadership Development and Compensation Committee of the Board of Directors approved granting of an aggregate of 71,007 restricted stock units, and 15,043 restricted stock units and 23,647 performance based restricted stock units under the long-term incentive program to certain executives (collectively, the “Contingent Grants”), subject to approval of an increase in the number of shares authorized for issuance under the 2019 Plan by the Customers Bancorp shareholders at the annual shareholders’ meeting. The amendments to the 2019 Plan were approved by the shareholders at the annual shareholders’ meeting on May 26, 2026, and the Contingent Grants are included in the tables above.