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Employee Benefits and Stock Compensation | 12 Months Ended
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Dec. 31, 2024
Share-Based Payment Arrangement [Abstract] |
Employee Benefits and Stock Compensation | Note 10 - 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 expense were $5.2 million in 2024, $4.8 million in 2023, and $3.5 million in 2022. 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, RSAs, or 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 that 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 or upon the event of a change-in-control. Awards are currently granted under the Seacoast 2021 Incentive Plan (“2021 Plan”), with 3,750,000 authorized shares for issuance, plus shares of underlying awards outstanding under the 2013 Incentive Plan (the “Prior Plan”) that thereafter terminate or expire unexercised or are cancelled, forfeited or lapse for any reason under the Prior Plan. The impact of share-based compensation on the Company’s financial results is presented below:
|  | For the Year Ended December 31,
(In thousands) |  | 2024 |  | 2023 |  | 2022
Share-based compensation expense 1 |  | $ | 13,744 |  |  | $ | 13,440 |  |  | $ | 11,155 |
Income tax benefit |  | $ | (3,483) |  |  | $ | (3,406) |  |  | $ | (2,827) |
1 Excludes $10.3 million in 2023 and $10.4 million in 2022 associated with replacement awards granted in bank acquisitions.
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, 2024 is presented below:
(In thousands) |  | Unrecognized Compensation Cost |  | Weighted-Average Period Remaining (Years)
Restricted stock awards |  | $ | 16,339 |  |  | 1.80
Restricted stock units |  | 6,829 |  |  | 2.21
Total |  | $ | 23,168 |  |  | 1.92
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, 2024, and changes during the year then ended, is presented below:
|  | Restricted Award Shares |  | Weighted-Average Grant-Date Fair Value
Non-vested at January 1, 2024 |  | 763,212 |  |  | $ | 27.45 |
Granted |  | 613,534 |  |  | 25.00 |
Forfeited/Canceled |  | (78,272) |  |  | 26.71 |
Vested |  | (340,952) |  |  | 28.78 |
Non-vested at December 31, 2024 |  | 957,522 |  |  | $ | 25.47 |
Information regarding restricted stock awards during each of the following years is presented below:
|  | For the Year Ended December 31,
|  | 2024 |  | 2023 |  | 2022
Weighted-average grant date fair value |  | $ | 25.00 |  |  | $ | 24.57 |  |  | $ | 33.08 |
Fair value of awards vested 1 |  | $ | 9,813 |  |  | $ | 8,156 |  |  | $ | 6,923 |
1 Based on grant date fair value, in thousands.
Restricted Stock Units RSUs allow the grantee to earn 0%-225% of the target award based on the Company's achievement of performance goals relating to average annual earnings per share growth and average annual return on average tangible equity relative to a group of peer companies, 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, 2024, and changes during the year then ended, is presented below:
|  | Restricted Award Units |  | Weighted-Average Grant-Date Fair Value
Non-vested at January 1, 2024 |  | 383,701 |  |  | $ | 29.31 |
Granted |  | 260,999 |  |  | 25.75 |
Forfeited/Canceled |  | (40,208) |  |  | 31.00 |
Vested |  | (82,966) |  |  | 36.52 |
Non-vested at December 31, 2024 |  | 521,526 |  |  | $ | 26.25 |
Information regarding restricted stock units during each of the following years is presented below:
|  | For the Year Ended December 31,
|  | 2024 |  | 2023 |  | 2022
Weighted-average grant date fair value |  | $ | 25.75 |  |  | $ | 22.84 |  |  | $ | 34.11 |
Fair value of awards vested 1 |  | $ | 3,030 |  |  | $ | 1,997 |  |  | $ | 2,305 |
1 Based on grant date fair value, in thousands.
Stock Options The fair value of options and warrants granted is estimated on the date of grant using the Black-Scholes options-pricing model. In 2023 and 2022, a total of 1,016,619 options to purchase shares of Seacoast stock were granted to option holders of acquired entities in accordance with the terms of the merger agreements. The Company did not grant any stock options in 2024.
|  | For the Year Ended December 31,
|  | 2024 |  | 2023 |  | 2022
Risk-free interest rates |  | N/A |  | 4.25 | % |  | 2.21 | %
Expected dividend yield |  | N/A |  | 2.45 | % |  | 1.95 | %
Expected volatility |  | N/A |  | 64.32 | % |  | 32.09 | %
Expected lives (years) |  | N/A |  | 1.8 |  | 1.0
A summary of the Company’s stock options as of December 31, 2024, and changes during the year then ended, is presented below:
|  | Options |  | Weighted-Average Exercise Price
Outstanding at January 1, 2024 |  | 823,963 |  |  | $ | 20.48 |
Granted |  | — |  |  | — |
Exercised |  | (185,606) |  |  | 13.31 |
Expired |  | (17,715) |  |  | 30.04 |
Outstanding and Exercisable at December 31, 2024 |  | 620,642 |  |  | $ | 22.38 |
Weighted-Average Remaining Contractual Term (Years) |  | 2.70 |  |
Aggregate Intrinsic Value (000s) |  | $ | 3,933 |  |  |
The following table presents information related to stock options during each of the following years:
|  | For the Year Ended December 31,
|  | 2024 |  | 2023 |  | 2022
Weighted-average grant date fair value |  | N/A |  | $ | 12.63 |  |  | $ | 14.28 |
Intrinsic value of stock options exercised, in thousands |  | $ | 2,487 |  |  | 5,969 |  |  | 8,860 |
Supplemental Executive Retirement Plan The Company sponsors a SERP, which is a non-qualified deferred compensation arrangement that provides the Company's CEO with supplemental retirement benefits. The present value of the accumulated benefit, which is recorded as an accrued liability, was $0.5 million and $0.4 million as of December 31, 2024 and 2023, respectively. Employee Stock Purchase Plan The ESPP authorizes the Company to issue up to 800,000 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. Employee contributions to the ESPP are made through payroll deductions.
|  | 2024 |  | 2023 |  | 2022
ESPP shares purchased |  | 32,840 |  |  | 35,630 |  |  | 20,972 |
Weighted-average employee purchase price |  | $ | 24.42 |  |  | $ | 22.56 |  |  | $ | 30.76 |

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