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 151,892 shares available for future grants under this plan at June 30, 2021.

No options were granted under the 2014 Incentive Plan during the periods ended June 30, 2021 and 2020.

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 28, 2021, 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 8,792 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 2022 Annual Meeting. This issuance was expensed in its entirety when the shares were issued in the amount of $196.

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- and six-month periods ended June 30, 2021:

	Three months ended					Six Months Ended
	June 30, 2021					June 30, 2021
	Number of Restricted Shares			Weighted Average Grant Date Fair Value		Number of Restricted Shares			Weighted Average Grant Date Fair Value
Nonvested at beginning of period		73,138		$	20.13		54,274		$	20.90
Granted		—			—		39,139			19.17
Vested		—			—		(20,275	)		20.35
Forfeited		(1,067	)		19.56		(1,067	)		19.56
Nonvested at end of period		72,071		$	20.13		72,071		$	20.13

The following is a summary of the status of the Company’s outstanding restricted shares as of June 30, 2021:

At June 30, 2021
Date of Award	Shares		Remaining Expense		Remaining Vesting Period (Years)
March 20, 2017		1,198	$	14		0.50
April 10, 2018		3,114		46		1.50
March 14, 2019		3,401		32		0.50
March 14, 2019		6,560		99		2.50
March 14, 2020		9,139		135		1.50
March 14, 2020		10,390		172		3.50
March 3, 2021		16,277		259		4.50
March 3, 2021		21,992		364		2.50
		72,071	$	1,121		2.80

The Company recorded $135 and $99, of share-based compensation expense during the three months ended June 30, 2021 and 2020, respectively. During the six months ended June 30, 2021 and 2020, $260 and $223 of share-based compensation expense was recorded, respectively. The Company recorded $196 of director retainer fees for shares granted under the 2014 Incentive Plan during the three months ended June 30, 2021. At June 30, 2021, the total compensation cost related to unvested awards not yet recognized is $1,121, which is expected to be recognized over the weighted average remaining life of the grants of 2.80 years.