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 117,263 shares available for future grants under this plan at June 30, 2022.

No options were granted under the 2014 Incentive Plan during the periods ended June 30, 2022 and 2021.

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 or five-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 25, 2022, 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 7,224 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 2023 Annual Meeting. This issuance was expensed in its entirety when the shares were issued in the amount of $168.

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, 2022:

	Three months ended					Six Months Ended
	June 30, 2022					June 30, 2022
	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		76,530		$	21.87		69,840		$	20.14
Granted		—			—		31,774			24.51
Vested		(2,644	)		21.57		(27,728	)		24.28
Forfeited		(2,138	)		21.99		(2,138	)		21.99
Nonvested at end of period		71,748		$	21.88		71,748		$	21.88

The following is a summary of the status of the Company’s outstanding restricted shares as of June 30, 2022:

At June 30, 2022
Date of Award	Shares		Remaining Expense		Remaining Vesting Period (Years)
April 10, 2018		1,470	$	15		0.50
March 14, 2019		4,034		59		1.50
March 14, 2020		4,304		42		0.50
March 14, 2020		6,951		118		2.50
March 3, 2021		11,359		183		3.50
March 3, 2021		13,692		197		1.50
March 3, 2022		12,914		282		4.50
March 3, 2022		17,024		335		2.50
		71,748	$	1,231		2.61

The Company recorded $153 and $135 of share-based compensation expense during the three months ended June 30, 2022 and 2021, respectively. During the six months ended June 30, 2022 and 2021, the Company recorded $331 and $260, respectively, of share-based compensation expense. The Company recorded $168 of director retainer fees for shares granted under the 2014 Incentive Plan during the three months ended June 30, 2022. At June 30, 2022, the total compensation cost related to unvested awards not yet recognized is $1,231, which was expected to be recognized over the weighted average remaining life of the grants of 2.61 years.