Shareholders' Equity

12 Months Ended

Dec. 31, 2013

Equity [Abstract]

Shareholders' Equity

Note N     Shareholders’ Equity

A 1 for 5 reverse stock split was effective as of December 13, 2013. Each five shares of the Company’s common stock was automatically converted to one share of the Company’s common stock. Any fractional post-split shares as a result of the reverse split were rounded up to the nearest whole post-split share. Shareholders of the Company previously authorized the Board of Directors to approve a reverse stock split at the annual meeting in May 2013. All share amounts have been restated for all years presented.

The Company has reserved 300,000 common shares for issuance in connection with an employee stock purchase plan and 148,500 common shares for issuance in connection with an employee profit sharing plan. At December 31, 2013, an aggregate of 170,066 shares and 34,590 shares, respectively, have been issued as a result of employee participation in these plans.

In December 2008, in connection with the Troubled Asset Relief Program (TARP) Capital Purchase Program, established as part of the Emergency Economic Stabilization Act of 2008, the Company issued to the U.S. Treasury Department (U.S. Treasury) 2,000 shares of Fixed Rate Cumulative Perpetual Preferred Stock, Series A (“Series A Preferred Stock”) with a par value of $0.10 per share and a 10-year warrant to purchase approximately 117,925 shares of common stock at an exercise price of $31.80 per share. The proceeds received were allocated to the preferred stock and additional paid-in-capital based on their relative fair values. The Series A Preferred Stock initially paid quarterly dividends at a five percent annual rate that increased to nine percent after five years on a liquidation preference of $25,000 per share. Upon the request of the U.S. Treasury, at any time, the Company agreed to enter into a deposit arrangement pursuant to which the Series A Preferred Stock may be deposited and depository shares may be issued. The Corporation registered the Series A Preferred Stock, the warrant, the shares of common stock underlying the warrant and the depository shares, if any, for resale under the Securities Act of 1933. On March 28, 2012, the U.S. Treasury publicly offered through an auction process their investment in the Series A Preferred Stock. The auction concluded on April 3, 2012, thereby transferring all of the U.S. Treasury’s ownership in the Series A Preferred Stock to third party investors. The warrant to purchase shares of common stock was acquired by the Company on May 30, 2012 for $81,000, including related expenses. On December 31, 2013, the full amount of the Series A Preferred Stock was redeemed at par for $50 million plus accrued dividends through the date of redemption of $319,000 .

A common stock offering was completed during November 2013 adding $75 million to capital, with approximately $47 million (net of issuance costs) received during November 2013, and $25 million received in January 2014 from a single investor that was required to obtain approval of the Federal Reserve Bank for its investment. Of the funds received, $50 million was utilized to redeem the Series A Preferred Stock at December 31, 2013, with the remainder available for future growth and general corporate purposes.

Holders of common stock are entitled to one vote per share on all matters presented to shareholders as provided in the Company’s Articles of Incorporation. The Company implemented a dividend reinvestment plan during 2007, issuing no shares from treasury stock during 2013 and 2012.

The Company was subject to certain standards for executive compensation while its preferred shares were owned by the U.S. Treasury that included (a) prohibiting “golden parachute” payments as defined in the Emergency Economic Stabilization Act of 2008 (EESA) to senior executive officers; (b) requiring recovery of any compensation paid to senior executive officers based on criteria that is later proven to be materially inaccurate; (c) prohibiting incentive compensation that encourages unnecessary and excessive risks that threaten the value of the financial institution, and (d) accepting restrictions on the payment of dividends and the repurchase of common stock. Seacoast believes it complied with all TARP standards and restrictions during the time the Company was a participant.

Required Regulatory Capital

						Minimum for Capital Adequacy Purpose					Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions
	Amount		Ratio			Amount		Ratio			Amount		Ratio
	(Dollars in thousands)
SEACOAST BANKING CORP (CONSOLIDATED)
At December 31, 2013:
Total Capital (to risk-weighted assets)	$	227,310		16.88	%	$	107,757		>8.00	%		N/A		N/A
Tier 1 Capital (to risk-weighted assets)		210,433		15.62			53,878		>4.00	%		N/A		N/A
Tier 1 Capital (to adjusted average assets)		210,433		9.59			92,234		>4.00	%		N/A		N/A
At December 31, 2012:
Total Capital (to risk-weighted assets)	$	227,428		18.33	%	$	99,247		>8.00	%		N/A		N/A
Tier 1 Capital (to risk-weighted assets)		211,839		17.08			49,624		>4.00	%		N/A		N/A
Tier 1 Capital (to adjusted average assets)		211,839		10.04			84,377		>4.00	%		N/A		N/A
SEACOAST NATIONAL BANK (A WHOLLY OWNED BANK SUBSIDIARY)
At December 31, 2013:
Total Capital (to risk-weighted assets)	$	225,102		16.74	%	$	107,571		>8.00	%	$	134,463		>10.00	%
Tier 1 Capital (to risk-weighted assets)		208,253		15.49			53,785		>4.00	%		80,678		>  6.00	%
Tier 1 Capital (to adjusted average assets)		208,253		9.51			87,636		>4.00	%		109,545		>  5.00	%
At December 31, 2012:
Total Capital (to risk-weighted assets)	$	220,433		17.79	%	$	99,116		>8.00	%	$	123,895		>10.00	%
Tier 1 Capital (to risk-weighted assets)		204,864		16.54			49,558		>4.00	%		74,337		>  6.00	%
Tier 1 Capital (to adjusted average assets)		204,864		9.72			84,312		>4.00	%		105,389		>  5.00	%

N/A—Not Applicable

The Company is subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory, and possibly additional discretionary, actions by regulators that, if undertaken, could have a direct material effect on the Company’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company must meet specific capital guidelines that involve quantitative measures of the Company’s assets, liabilities and certain off-balance sheet items as calculated under regulatory accounting practices. The Company’s capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors.

Quantitative measures established by regulation to ensure capital adequacy require the Company to maintain minimum amounts and ratios of total and Tier 1 capital (as defined in the regulations) to risk-weighted assets (as defined) and of Tier 1 capital to average assets (as defined). Management believes, as of December 31, 2013, that the Company meets all capital adequacy requirements to which it is subject.

The Company is well capitalized under the regulatory framework for prompt corrective action. To be categorized as well capitalized, the Company must maintain minimum total risk-based, Tier 1 risk-based and Tier 1 leverage ratios as set forth above. At December 31, 2013, the Company’s deposit-taking bank subsidiary met the capital and leverage ratio requirements for well capitalized banks.