At the Company’s 2014 annual meeting, the shareholders adopted the Company’s 2014 Incentive Plan (“2014 Incentive Plan”). The 2014 Incentive Plan authorizes the Company to grant options, stock awards, stock units and other awards for up to 375,000 common shares of the Company. There were 248,736 shares available for future grants under this plan at March 31, 2019.

No options had been granted under the 2014 Incentive Plan as of March 31, 2019 and 2018.

Each year, the Board of Directors has awarded restricted common shares to senior officers of the Company. The restricted shares vest ratably over a three-year period following the grant date. The product of the number of restricted shares granted and the grant date market price of the Company’s common shares determines the fair value of restricted shares awarded under the Company’s 2014 Incentive Plan. Management recognizes compensation expense for the fair value of restricted shares on a straight-line basis over the requisite service period for the entire award.

On May 17, 2018, directors of the Company’s banking subsidiary, Civista, were paid a retainer in the form of non-restricted common shares of the Company. The aggregate of 6,204 common shares were issued to Civista directors as payment of their retainer for their service on the Civista Board of Directors covering the period up to the 2019 Annual Meeting. This issuance was expensed in its entirety when the shares were issued in the amount of $144.

On September 25, 2018, newly appointed directors of the Company’s banking subsidiary, Civista, were paid a retainer in the form of non-restricted common shares of the Company. The aggregate of 867 common shares were issued for their service on the Civista Board of Directors covering the period up to the 2019 Annual Meeting. This issuance was expensed in its entirety when the shares were issued in the amount of $21.

The Company classifies share-based compensation for employees with “Compensation expense” in the Consolidated Statements of Operations.

The following is a summary of the Company’s outstanding restricted shares and changes therein for the three-month period ended March 31, 2019:

	Three months ended
	March 31, 2019
	Number of Restricted Shares			Weighted Average Grant Date Fair Value
Nonvested at beginning of period		39,970		$	19.10
Granted		21,106			20.65
Vested		(16,557	)		17.31
Forfeited		(492	)		22.41
Nonvested at end of period		44,027		$	20.48

The following is a summary of the status of the Company’s outstanding restricted shares as of March 31, 2019:

At March 31, 2019
Date of Award	Shares		Remaining Expense		Remaining Vesting Period (Years)
January 15, 2016		4,108	$	37		1.75
March 20, 2017		3,725		37		0.75
March 20, 2017		3,581		67		2.75
April 10, 2018		5,282		86		1.75
April 10, 2018		6,225		117		3.75
March 14, 2019		10,188		198		2.75
March 14, 2019		10,918		203		4.75
		44,027	$	745		3.00

During the three months ended March 31, 2019, the Company recorded $89 of share-based compensation expense for shares granted under the 2014 Incentive Plan. At March 31, 2019, the total compensation cost related to unvested awards not yet recognized is $745, which is expected to be recognized over the weighted average remaining life of the grants of 3.00 years.