Seacoast Banking Corp. of Florida (SBCF) in Stuart plans to redeem its $50 million of outstanding Troubled Asset Relief Program shares.
The $1.7 billion company plans to pay face value for the stock, plus $386,000 in unpaid dividends, on Dec. 31. The redemption requires regulatory approval.
Seacoast began a $75 million public offering last month to fund the redemption. It issued the shares in December 2008, and the Treasury Department auctioned them last year. Seacoast has already bought back the warrant it issued the Treasury Department, it said in its latest annual report.
Separately, Seacoast's board approved a reverse stock split last week to bolster the company's stock price. The 1-for-5 split will take place Dec. 13, the company said.
"We believe a higher stock price following the effective date of the reverse split will broaden the range of investors in our stock, increase the visibility of our earnings trends and lower investor trading costs," Dennis Hudson, Seacoast's chief executive, said in a press release.
Seacoast's stock was trading at $2.23 a share early Monday, down slightly more than 1% from its Friday closing price.
Seacoast was freed from enforcement actions with the Office of the Comptroller of the Currency in September.