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Employee Benefits and Stock Compensation
 12 Months Ended
Dec. 31, 2020
Share-based Payment Arrangement [Abstract]  
Employee Benefits and Stock Compensation Employee Benefits and Stock Compensation
The Company’s defined contribution plan covers substantially all employees after one year of service and includes a matching benefit for employees who can elect to defer a portion of their compensation. In addition, amounts of compensation contributed by employees are matched on a percentage basis under the plan. The Company's contributions to this plan charged to operations were $2.8 million in 2020, $2.4 million in 2019, and $2.1 million in 2018.
The Company, through its Compensation and Governance Committee of the board of directors (the “Compensation Committee”), offers equity compensation to employees and non-employee directors of Seacoast and Seacoast Bank in the form
of various share-based awards, including stock options, restricted stock awards (“RSAs”), or restricted stock units (“RSUs”). The awards may vest over time, have certain performance based criteria, or both.
Stock options are granted with an exercise price at least equal to the market price of the Company’s stock at the date of grant. The fair value of options granted is estimated on the date of grant using the Black-Scholes option-pricing model. Compensation cost is amortized on a straight-line basis over the vesting period. Vesting is determined by the Compensation Committee at the time of grant, generally over five years. The options have a maximum term of ten years. 
The fair value of RSAs and RSUs are estimated based on the price of the Company’s common stock on the date of grant. Compensation cost is measured straight-line for RSAs and ratably for RSUs over the vesting period of the awards and reversed for awards which are forfeited due to unfulfilled service or performance criteria. To the extent the Company has treasury shares available, stock options exercised or stock grants awarded may be issued from treasury shares. If treasury shares are insufficient, the Company can issue new shares.
Vesting of share-based awards is immediately accelerated on death or disability of the recipient. The Compensation Committee may, at its discretion, accelerate vesting upon retirement (including a voluntary termination of employment at age 55) for those employees with five or more years of service with the Company, or upon the event of a change-in-control.
Awards are currently granted under the Seacoast 2013 Incentive Plan (“2013 Plan”), which shareholders approved on May 23, 2013 and has been twice amended to increase the number of authorized shares for issuance thereunder to 4,250,000. The 2013 Plan expires on May 26, 2025. Approximately 535,000 shares remain available for issuance as of December 31, 2020.
The impact of share-based compensation on the Company’s financial results is presented below:
For the Year Ended December 31,
(In thousands)202020192018
Share-based compensation expense$7,304 $7,244 $7,823 
Income tax benefit(1,737)(1,723)(1,911)
The total unrecognized compensation cost and the weighted-average period over which unrecognized compensation cost is expected to be recognized related to non-vested share-based compensation arrangements at December 31, 2020 is presented below:
(In thousands)Unrecognized
Compensation
Cost		Weighted-Average Period Remaining (Years)
Restricted stock awards$5,987 2.06
Restricted stock units3,153 1.93
Stock options96 0.25
Total$9,236 2.00
Restricted Stock Awards
RSAs are granted to various employees and vest over time, generally three years. Compensation cost of RSAs is based on the market value of the Company’s common stock at the date of grant and is recognized over the required service period on a straight-line basis. The Company’s accounting policy is to recognize forfeitures as they occur.
A summary of the status of the Company’s non-vested RSAs as of December 31, 2020, and changes during the year then ended, is presented below:
Restricted
Award
Shares		Weighted-Average Grant-Date Fair Value
Non-vested at January 1, 2020213,951 $26.07 
Granted379,869 18.36 
Forfeited/Canceled(11,064)22.19 
Vested(157,602)23.76 
Non-vested at December 31, 2020425,154 $20.03 
Information regarding restricted stock awards during each of the following years is presented below:
For the Year Ended December 31,
202020192018
Shares granted379,869 157,861 242,613 
Weighted-average grant date fair value$18.36 $26.86 $26.48 
Fair value of awards vested1
$3,745 $4,128 $2,515 
1Based on grant date fair value, in thousands
Restricted Stock Units
RSUs granted in 2020 and 2019 allow the grantee to earn 0%-225% while RSUs granted in 2018 and 2017 allow the grantee to earn 0%-200% of the target award all based on the Company's adjusted earnings per share growth or its adjusted return on average tangible equity, each measured over a three year period beginning with the year of grant.
A summary of the status of the Company’s non-vested RSUs as of December 31, 2020, and changes during the year then ended, is presented below:
Restricted
Award
Shares		Weighted-Average Grant-Date Fair Value
Non-vested at January 1, 2020381,930 $23.86 
Granted171,287 17.29 
Forfeited/Canceled(12,597)21.55 
Vested(231,023)19.54 
Non-vested at December 31, 2020309,597 $23.54 
 Information regarding restricted stock units during each of the following years is presented below:
For the Year Ended December 31,
202020192018
Shares granted171,287 75,002 173,193 
Weighted-average grant date fair value$17.29 $30.02 $24.02 
Fair value of awards vested1
$2,962 $2,864 $1,095 
1Based on grant date fair value, in thousands
Stock Options
The Company issued no stock options in 2020. In 2019 and 2018, the estimated the fair value of each option grant on the date of grant using the Black-Scholes options-pricing model with the following weighted-average assumptions:    
 For the Year Ended December 31,
 20192018
Risk-free interest rates2.53 %2.56 %
Expected dividend yield— %— %
Expected volatility34.50 %26.60 %
Expected lives (years)5.05.0
A summary of the Company’s stock options as of December 31, 2020, and changes during the year then ended, is presented below:
 OptionsWeighted-Average Exercise PriceWeighted-Average Remaining Contractual Term (Years)Aggregate
Intrinsic
Value
(000s)
Outstanding at January 1, 2020903,779 $22.22 
Granted— — 
Exercised(62,206)12.31 
Forfeited(1,689)29.30 
Outstanding at December 31, 2020839,884 $22.94 5.29$5,822 
Exercisable at December 31, 2020770,615 $22.20 5.125,822 
Information related to stock options during each of the following years:
For the Year Ended December 31,
202020192018
Options granted— 3,438 219,118 
Weighted-average grant date fair value$— $28.42 $5.65 
Intrinsic value of stock options exercised, in thousands830 277 3,045 
The following table summarizes information related to stock options as of December 31, 2020: 
Range of Exercise PricesOptions
Outstanding		Remaining
Contractual
Life (Years)		Options
Exercisable		Weighted
Average
Exercise
Price
$10.54 to $14.82
311,658 3.1311,658 $12.77 
$15.99 to $28.69
320,388 6.1320,388 27.51 
$31.15 to $31.15
207,838 7.3138,569 31.15 
Total839,884 5.3770,615 $22.20 
Employee Stock Purchase Plan
The Employee Stock Purchase Plan (“ESPP”), as amended, was approved by shareholders on April 25, 1989, and additional shares were authorized for issuance by shareholders on June 18, 2009 and May 2, 2013. Under the ESPP, the Company is authorized to issue up to 300,000 common shares of the Company’s common stock to eligible employees of the Company. These shares may be purchased by employees at a price equal to 95% of the fair market value of the shares on the purchase date. Purchases under the ESPP are made monthly. Employee contributions to the ESPP are made through payroll deductions. 
 202020192018
ESPP shares purchased19,713 16,320 15,225 
Weighted-average employee purchase price$20.68 $25.39 $26.85