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<TITLE>S-1</TITLE>
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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>As filed with the Securities and Exchange Commission on June&nbsp;19, 2009</B>
</DIV>


<DIV align="right" style="font-size: 10pt; margin-top: 6pt"><B>Registration No.&nbsp;333-&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B>
</DIV>


<DIV style="width: 100%; border-bottom: 2pt solid black; font-size: 3pt">&nbsp;</DIV>
<DIV style="width: 100%; border-bottom: 1pt solid black; font-size: 1pt">&nbsp;</DIV>




<DIV align="center" style="font-size: 14pt; margin-top: 12pt"><B>UNITED STATES<BR>
SECURITIES AND EXCHANGE COMMISSION</B>
</DIV>

<DIV align="center" style="font-size: 12pt"><B>Washington, D.C. 20549<DIV align="center"><DIV style="font-size: 3pt; margin-top: 16pt; width: 26%; border-top: 1px solid #000000">&nbsp;</DIV></DIV></B>
</DIV>

<DIV align="center" style="font-size: 18pt; margin-top: 12pt"><B>FORM S-1</B>
</DIV>


<DIV align="center" style="font-size: 12pt; margin-top: 12pt"><B>REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933</B>
</DIV>

<DIV align="center" style="font-size: 24pt; margin-top: 12pt"><B>Seacoast Banking Corporation of Florida</B>
</DIV>

<DIV align="center" style="font-size: 10pt">(Exact name of registrant as specified in its charter)</DIV>


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
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    <TD width="31%">&nbsp;</TD>
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<TR valign="bottom">
    <TD align="center" valign="top"><B>Florida</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>6022</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>59-2260678</B></TD>
</TR>

<TR valign="bottom">
    <TD align="center" valign="top">(State or other jurisdiction of <BR>
incorporation or organization)
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">(Primary Standard Industrial<BR>
Classification Code Number)
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">(I.R.S. Employer<BR>
Identification Number)</TD>
</TR>
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</TABLE>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>Seacoast Banking Corporation of Florida<BR>
815 Colorado Avenue<BR>
Stuart, Florida 34994<BR>
(772)&nbsp;287-4000</B><BR>
(Address, including zip code, and telephone number,<BR>
including area code, of registrant&#146;s principal executive offices)<DIV align="center"><DIV style="font-size: 3pt; margin-top: 16pt; width: 26%; border-top: 1px solid #000000">&nbsp;</DIV></DIV>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>Dennis S. Hudson, III<BR>
Chief Executive Officer<BR>
Seacoast Banking Corporation of Florida<BR>
815 Colorado Avenue<BR>
Stuart, Florida 34994<BR>
(772)&nbsp;287-4000</B><BR>
(Name, address, including zip code, and telephone number,<BR>
including area code, of agent for service)<DIV align="center"><DIV style="font-size: 3pt; margin-top: 16pt; width: 26%; border-top: 1px solid #000000">&nbsp;</DIV></DIV>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><I>Copies to:</I>

</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
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    <TD width="47%">&nbsp;</TD>
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<TR valign="bottom">
    <TD align="center" valign="top"><B>Ralph F. MacDonald III, Esq. <BR>
Jones Day <BR>
1420 Peachtree Street, N.E., Suite&nbsp;800<BR>
Atlanta, Georgia 30309<BR>
(404)&nbsp;581-3939</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>Stuart G. Stein, Esq.<BR>
R. Daniel Keating, Esq.<BR>
Hogan &#038; Hartson LLP<BR>
555 Thirteenth Street, NW<BR>
Washington, DC 20004<BR>
(202)&nbsp;637-8575</B></TD>
</TR>
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</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Approximate date of commencement of proposed sale to the public: </B>As soon as practicable after
the effective date of this registration statement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If any of the securities being registered on this Form are to be offered on a delayed or
continuous basis pursuant to Rule&nbsp;415 under the Securities Act of 1933 check the following box.&nbsp;<FONT face="Wingdings">&#111;</FONT>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If this Form is filed to register additional securities for an offering pursuant to Rule
462(b) under the Securities Act, please check the following box and list the Securities Act
registration statement number of the earlier effective registration statement for the same
offering.&nbsp;<FONT face="Wingdings">&#111;</FONT>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If this Form is a post-effective amendment filed pursuant to Rule 462(c) under the Securities
Act, check the following box and list the Securities Act registration statement number of the
earlier effective registration statement for the same offering.&nbsp;<FONT face="Wingdings">&#111;</FONT>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If this Form is a post-effective amendment filed pursuant to Rule 462(d) under the Securities
Act, check the following box and list the Securities Act registration statement number of the
earlier effective registration statement for the same offering.&nbsp;<FONT face="Wingdings">&#111;</FONT>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Indicate by check mark whether the registrant is a large accelerated filer, an accelerated
filer, a non-accelerated filer, or a smaller reporting company. See the definitions of &#147;large
accelerated filer,&#148; &#147;accelerated filer&#148; and &#147;smaller reporting company&#148; in Rule&nbsp;12b-2 of the
Exchange Act. (check one):
</DIV>


<TABLE width="100%" style="font-size: 10pt; margin-top: 0pt">
<TR valign="top">
<TD>Large accelerated filer&nbsp;<FONT face="Wingdings">&#111;</FONT></TD>
<TD align="center">Accelerated filer&nbsp;<FONT face="Wingdings">&#254;</FONT>&nbsp;</TD>
<TD align="center">Non-accelerated filer&nbsp;<FONT face="Wingdings">&#111;</FONT><BR>(Do not check if a smaller reporting company)</TD>
<TD align="right">Smaller reporting company&nbsp;<FONT face="Wingdings">&#111;</FONT></TD>
</TR>
</TABLE>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>CALCULATION OF REGISTRATION FEE</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
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<TR style="font-size: 1px" valign="bottom">
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    <TD width="76%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD><!-- VRule -->
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD><!-- VRule -->
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>

    <TD width="1%">&nbsp;</TD>
</TR><TR style="font-size: 1px" valign="bottom">
    <TD nowrap align="left" colspan="13" style="border-bottom: 3px double #000000">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">    <TD width="1%">&nbsp;</TD>

    <TD nowrap align="CENTER">Title of Each Class</TD>
    <TD style="border-right: 2px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">Proposed Maximum</TD>
    <TD style="border-right: 2px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">    <TD width="1%">&nbsp;</TD>

    <TD nowrap align="CENTER">of Securities to</TD>
    <TD style="border-right: 2px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">Aggregate</TD>
    <TD style="border-right: 2px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">Amount of</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">    <TD width="1%">&nbsp;</TD>

    <TD nowrap align="CENTER">be Registered</TD>
    <TD style="border-right: 2px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">Offering Price(1)</TD>
    <TD style="border-right: 2px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">Registration Fee</TD>
    <TD width="1%">&nbsp;</TD>
</TR>

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    <TD width="1%" style="border-top: 2px solid #000000">&nbsp;</TD>
                <TD style="border-top: 2px solid #000000"><DIV style="margin-left:15px; text-indent:-15px">Common Stock, par value $0.10 per
share</DIV></TD>
    <TD style="border-right: 2px solid #000000; border-top: 2px solid #000000">&nbsp;</TD>
    <TD style="border-top: 2px solid #000000">&nbsp;</TD>
    <TD align="right" style="border-top: 2px solid #000000">$</TD>
    <TD align="right" style="border-top: 2px solid #000000">1,000,000</TD>
    <TD style="border-top: 2px solid #000000">&nbsp;</TD>
    <TD style="border-right: 2px solid #000000; border-top: 2px solid #000000">&nbsp;</TD>
    <TD style="border-top: 2px solid #000000">&nbsp;</TD>
    <TD align="right" style="border-top: 2px solid #000000">$</TD>
    <TD align="right" style="border-top: 2px solid #000000">55.80</TD>
    <TD style="border-top: 2px solid #000000">&nbsp;</TD>
    <TD width="1%" style="border-top: 2px solid #000000">&nbsp;</TD>
</TR>
<TR style="font-size: 1px" valign="bottom">
    <TD nowrap align="left" colspan="13" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>

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</TABLE>
</DIV>


<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 6pt; width: 6%; border-top: 0px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>Estimated solely for the purpose of calculating the amount of the registration fee
pursuant to Rule 457(o) under the Securities Act of 1933.</TD>
</TR>

</TABLE>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>The Registrant hereby amends this Registration Statement on such date or dates as may be necessary
to delay its effective date until the Registrant shall file a further amendment which specifically
states that this Registration Statement shall thereafter become effective in accordance with
Section&nbsp;</B><B>8(a)</B><B> of the Securities Act of 1933 or until the Registration Statement shall become
effective on such date as the Commission, acting pursuant to said Section&nbsp;</B><B>8(a)</B><B>, may determine.</B>
</DIV>

<DIV style="width: 100%; border-bottom: 1pt solid black; margin-top: 10pt; font-size: 1pt">&nbsp;</DIV>
<DIV style="width: 100%; border-bottom: 2pt solid black; font-size: 1pt">&nbsp;</DIV>





<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">








<P style="padding: 5px; border: 3px double #000000; font-size: 10pt; color: #FF0000"><B>The information in this prospectus is not complete and may be changed. We may not sell these
securities until the registration statement filed with the Securities and Exchange Commission is
effective. This prospectus is not an offer to sell these securities and it is not soliciting an
offer to buy these securities in any state where the offer or sale is not permitted.</B>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt; color: #FF0000"><B>SUBJECT TO COMPLETION, DATED JUNE 19, 2009</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>PROSPECTUS</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 16%"><B>Shares</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><IMG src="g19521seacost.gif" ALT="(SEACOAST LOGO)">
</DIV>



<DIV align="Center" style="font-size: 12pt; margin-top: 6pt"><B>Common Stock</B><DIV align="center"><DIV style="font-size: 3pt; margin-top: 16pt; width: 26%; border-top: 1px solid #000000">&nbsp;</DIV></DIV>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We are offering shares of our common stock, par value $0.10 per share. Our common stock is
listed on The Nasdaq Global Select Market under the symbol &#147;SBCF.&#148; On June&nbsp;18, 2009, the last
reported sale price of our common stock on The Nasdaq Global Select Market was $3.09 per share.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>You should read this prospectus carefully before you invest. Investing in our common stock
involves a high degree of risk. See the section entitled &#147;Risk Factors,&#148; beginning on page 6 of
this prospectus for certain risks and uncertainties you should consider.</B>
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="76%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>PER SHARE</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>TOTAL</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Public offering price</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Underwriting discounts and commissions</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Proceeds to Seacoast Banking Corporation of Florida
(before expenses)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We have granted the underwriters an option to purchase up to an additional&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares of
our common stock at the public offering price, less underwriting discounts and commissions, within 30
days from the date of this prospectus to cover over-allotments, if any.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Our shares of common stock are unsecured and are not deposits and are not insured or
guaranteed by the FDIC or any other governmental agency.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>None of the Securities and Exchange Commission, any state securities commission, nor any other
governmental agency has approved or disapproved of these securities or determined that this
prospectus is truthful or complete. Any representation to the contrary is a criminal offense.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The underwriters expect to deliver the shares of common stock through the facilities of The
Depository Trust Company, against payment on or about &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;, 2009.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><DIV align="center"><DIV style="font-size: 3pt; margin-top: 12pt; width: 26%; border-top: 1px solid #000000">&nbsp;</DIV></DIV>
</DIV>

<DIV align="center">
<TABLE style="font-size: 14pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="40%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="54%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="font-family: Helvetica,Arial,sans-serif"><FONT style="font-variant: 'small-caps'">Sandler O&#146;Neill + Partners L.P.</FONT>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><DIV style="font-family: Helvetica,Arial,sans-serif"><FONT style="font-variant: 'small-caps'">Fox-Pitt Kelton Cochran Caronia Waller</font></DIV></TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><DIV align="center"><DIV style="font-size: 3pt; margin-top: 12pt; width: 26%; border-top: 1px solid #000000">&nbsp;</DIV></DIV>

</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt">The date of this prospectus is &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;, 2009
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left">
<!-- TOC -->
</DIV>
<DIV align="left">
<A name="tocpage"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>TABLE OF CONTENTS</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="92%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" colspan="3" style="border-bottom: 1px solid #000000"><B>Page</B></TD>

</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#101">Special Cautionary Note Regarding Forward-Looking Statements</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">i</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#102">About This Prospectus</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" valign="top" align="right">ii</TD>
    <TD valign="top">&nbsp;</TD>

</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#103">Where You Can Find More Information</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" valign="top" align="right">iii</TD>
    <TD valign="top">&nbsp;</TD>

</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#104">Prospectus Summary</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">1</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#105">Risk Factors</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">6</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#106">Use of Proceeds</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">18</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#107">Price Range of Common Stock</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">19</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#108">Dividend Policy</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">20</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#109">Capitalization</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">21</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#110">Description of Capital Stock</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">22</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#111">Anti-Takeover Effects of Certain Articles of Incorporation Provisions</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">29</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#112">Certain United States Federal Income Tax Considerations Applicable To Non-U.S. Holders</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">31</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#113">Underwriting</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">35</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#114">Legal Matters</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">38</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#115">Experts</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">38</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="g19521exv3w4.htm">EX-3.4</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="g19521exv21w1.htm">EX-21.1</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="g19521exv23w1.htm">EX-23.1</A></FONT></TD></TR>
</TABLE>
</DIV>

<DIV align="left">
<!-- /TOC -->
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left">
<A name="101"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>SPECIAL CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Certain of the statements made herein or incorporated by reference under the captions
&#147;Management&#146;s Discussion and Analysis of Financial Condition and Results of Operations,&#148; &#147;Risk
Factors&#148; and elsewhere are &#147;forward-looking statements&#148; within the meaning and protections of
Section&nbsp;27A of the Securities Act of 1933 and Section&nbsp;21E of the Securities Exchange Act of 1934,
as amended, or the Exchange Act.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Forward-looking statements include statements with respect to our beliefs, plans, objectives,
goals, expectations, anticipations, assumptions, estimates, intentions, and future performance, and
involve known and unknown risks, uncertainties and other factors, which may be beyond our control,
and which may cause the actual results, performance or achievements of Seacoast Banking Corporation
of Florida to be materially different from future results, performance or achievements expressed or
implied by such forward-looking statements.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All statements other than statements of historical fact are statements that could be
forward-looking statements. You can identify these forward-looking statements through our use of
words such as &#147;may,&#148; &#147;will,&#148; &#147;anticipate,&#148; &#147;assume,&#148; &#147;should,&#148; &#147;indicate,&#148; &#147;would,&#148; &#147;believe,&#148;
&#147;contemplate,&#148; &#147;expect,&#148; &#147;estimate,&#148; &#147;continue,&#148; &#147;plan,&#148; &#147;point to,&#148; &#147;project,&#148; &#147;could,&#148; &#147;intend,&#148;
&#147;target&#148; and other similar words and expressions of the future. These forward-looking statements
may not be realized due to a variety of factors, including, without limitation:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the effects of future economic, business and market conditions, domestic and
foreign;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>governmental monetary and fiscal policies;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>legislative and regulatory changes, including changes in banking, securities and tax
laws and regulations and their application by our regulators, and changes in the scope
and cost of FDIC insurance and other coverages;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>changes in accounting policies, rules and practices;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the risks of changes in interest rates on the levels, composition and costs of
deposits, loan demand, and the values and liquidity of loan collateral, securities, and
interest sensitive assets and liabilities;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>credit risks of borrowers;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>changes in the availability and cost of credit and capital in the financial markets;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>changes in the prices, values and sales volumes of residential and commercial real
estate;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the effects of competition from a wide variety of local, regional, national and
other providers of financial, investment and insurance services;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the failure of assumptions underlying the establishment of reserves for possible
loan losses and other estimates;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the risks of mergers, acquisitions and divestitures, including, without limitation,
the related time and costs of implementing such transactions, integrating operations as
part of these transactions and possible failures to achieve expected gains, revenue
growth and/or expense savings from such transactions;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>changes in technology or products that may be more difficult, costly, or less
effective than anticipated;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the effects of war or other conflicts, acts of terrorism or other catastrophic
events that may affect general economic conditions; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>other factors and risks described under &#147;Risk Factors&#148; herein.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All written or oral forward-looking statements that are made by or are attributable to us are
expressly qualified in their entirety by this cautionary notice. We have no obligation and do not
undertake to update, revise or correct any of the forward-looking statements after the date of this
prospectus, or after the respective dates on which such statements otherwise are made.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->i&nbsp;<!-- /Folio -->
</DIV>

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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left">
<A name="102"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ABOUT THIS PROSPECTUS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;You should rely only on the information contained in this prospectus and in the documents
incorporated by reference herein. We have not, and the underwriters have not, authorized any other
person to provide you with different information. We are not, and the underwriters are not, making
an offer to sell our common stock in any jurisdiction in which the offer or sale is not permitted.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Neither we, the underwriters, nor any of our officers, directors, agents or representatives
make any representation to you about the legality of an investment in our common stock. You should
not interpret the contents of this prospectus to be legal, business, investment or tax advice. You
should consult with your own advisors for that type of advice and consult with them about the
legal, tax, business, financial and other issues that you should consider before investing in our
common stock.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This prospectus does not offer to sell, or ask for offers to buy, any shares of our common
stock in any state or jurisdiction where it would not be lawful or where the person making the
offer is not qualified to do so.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No action is being taken in any jurisdictions outside the United States to permit a public
offering of the common stock or possession or distribution of this prospectus in those
jurisdictions. Persons who come into possession of this prospectus in jurisdictions outside the
United States are required to inform themselves about, and to observe, any restrictions that apply
in those jurisdictions to this offering or the distribution of this prospectus.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unless the context indicates otherwise, all references in this prospectus to &#147;Seacoast,&#148; &#147;we,&#148;
&#147;us,&#148; &#147;our company&#148; and &#147;our&#148; refer to Seacoast Banking Corporation of Florida and its combined
subsidiaries. References to &#147;Seacoast National&#148; are to Seacoast National Bank, our principal bank
subsidiary.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->ii&nbsp;<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left">
<A name="103"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>WHERE YOU CAN FIND MORE INFORMATION</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We file annual, quarterly, and current reports, proxy statements and other information with
the SEC. Our SEC filings are available to the public over the Internet at the SEC&#146;s web site at
www.sec.gov and on the investor relations page of our website at www.seacoastbanking.net.
Information on our web site is not part of this prospectus. You may also read and copy any
document we file with the SEC at the SEC&#146;s Public Reference Room at 100 F Street N.E., Washington,
D.C. 20549. You can also obtain copies of the documents upon the payment of a duplicating fee to
the SEC. Please call the SEC at 1-800-SEC-0330 for further information on the operation of the
Public Reference Room. The SEC maintains an Internet site that contains reports, proxy and
information statements, and other information regarding issuers that file electronically with the
SEC like us. Our SEC filings are also available to the public from the SEC&#146;s website at
http://www.sec.gov.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This prospectus omits some information contained in the registration statement in accordance
with SEC rules and regulations. You should review the information and exhibits included in the
registration statement for further information about us and the securities we are offering.
Statements in this prospectus concerning any document we filed as an exhibit to the registration
statement or that we otherwise filed with the SEC are not intended to be comprehensive and are
qualified by reference to these filings. You should review the complete document to evaluate these
statements.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The SEC allows us to &#147;incorporate by reference&#148; information we file with it, which means that
we can disclose important information to you by referring you to other documents. The information
incorporated by reference is considered to be a part of this prospectus. Information contained in
this prospectus supersedes information incorporated by reference that we have filed with the SEC
prior to the date of this prospectus.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We incorporate by reference the following documents listed below, except to the extent that
any information contained in such filings is deemed &#147;furnished&#148; in accordance with SEC rules:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Our Annual Report on Form 10-K, as amended, for the year ended December&nbsp;31, 2008;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Our Definitive Proxy Statement on Schedule&nbsp;14A, filed with the SEC on April&nbsp;27,
2009;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Our Quarterly Report on Form 10-Q, as amended, for the quarter ended March&nbsp;31, 2009;
and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Our Current Reports on Form 8-K filed with the SEC on January&nbsp;5, 2009 and May&nbsp;22,
2009.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;These documents contain important information about us, our business and our financial
condition. You may request a copy of these filings, at no cost, by writing or telephoning us at:
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt">Seacoast Banking Corporation of Florida<BR>
P.O. Box 9012<BR>
Stuart, Florida 34995<BR>
Telephone: (772)&nbsp;287-4000<BR>
Facsimile: (772)&nbsp;288-6012
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We maintain an Internet website at www.seacoastbanking.com where the incorporated reports
listed above can be accessed.
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->iii&nbsp;<!-- /Folio -->
</DIV>



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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left">
<A name="104"></A>
</DIV>
<P>
<DIV style="width: 100%; border: 1px solid black; padding: 11px;">

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>PROSPECTUS SUMMARY</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>This summary highlights information contained elsewhere in this prospectus and may not contain
all of the information that may be important to you. You should read this entire prospectus
carefully, including the information set forth in &#147;Risk Factors&#148; before making an investment
decision.</I>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>Seacoast Banking Corporation of Florida</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We are a bank holding company registered under the Bank Holding Company Act of 1956, as
amended, and our principal subsidiary is Seacoast National Bank. Seacoast National commenced its
operations in 1933, and operated prior to 2006 as &#147;First National Bank &#038; Trust Company of the
Treasure Coast.&#148; At March&nbsp;31, 2009, Seacoast National had 40 banking offices in 14 counties in
Florida. In addition, Seacoast Marine Finance Division, a division of Seacoast National, has
offices located in Florida and California. Our subsidiary, FNB Brokerage Services, Inc., is a
securities broker-dealer engaged in securities brokerage and annuity sales.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As of March&nbsp;31, 2009, we had total consolidated assets of approximately $2.3&nbsp;billion, total
deposits of approximately $1.8&nbsp;billion, total consolidated liabilities, including deposits, of
approximately $2.1&nbsp;billion and consolidated shareholders&#146; equity of approximately $213.7&nbsp;million.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We offer a full array of deposit accounts and retail banking services, engage in consumer and
commercial lending and provide a wide variety of trust and asset management services.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We have expanded from Martin County, Florida into 13 other counties by establishing new
branches, acquiring branches, acquisitions from the receiver of failed banks, and whole bank
acquisitions. We have grown internally in nearby markets from Palm Beach County north to Brevard
County. Our last two acquisitions, in 2005 and 2006, added 12 branches and over $600&nbsp;million of
deposits. These acquisitions also brought us low cost deposits and diversified our loan and
deposit sources away from coastal Florida, and into the Orlando and central Florida markets. We
continuously evaluate our branch network to determine how to best serve our customers efficiently
and to improve our profitability.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We have offices in five of the 10 counties expected to have the highest population growth in
Florida and we are in two of the three counties in Florida with the highest median household income.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We have built our franchise upon relationship banking and a strong core deposit base. Our
strategy has focused on transaction accounts and certificates of deposit with customers who
maintain transaction accounts with us. At March&nbsp;31, 2009, we had $281.8&nbsp;million of non-interest
bearing demand deposits, and $827.3&nbsp;million of lower cost interest bearing savings, NOW and money
market deposit accounts. Our cost of deposits is lower than many of our peers, and we have a
strong net interest margin relative to our peers.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We have expanded our management team in recent years and have focused on credit quality and
identification and resolution of assets that are or are expected to become problems. Our efforts
to identify potential problems and reduce loan concentrations and risks began in 2006, and we have
sold $143.3&nbsp;million troubled loans since then at 100% in
2007, ranging from 30% to 100% in 2008 and 24% in 2009. We believe we began addressing these risks early and have made
continuous progress in our credit quality. We may sell additional assets in the future, and take
advantage of market opportunities to dispose of problem assets. Recently, we have emphasized cost controls, which have been an
important focus in recent years as economic growth has slowed.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our principal executive offices are located at 815 Colorado Avenue, Stuart, Florida 34994, and
our telephone number at that address is (772)&nbsp;287-4000. We maintain an Internet website at
www.seacoastbanking.com. Neither this website nor the information on this website is included or
incorporated in, or is a part of, this prospectus.
</DIV>
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->1<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<P>
<DIV style="width: 100%; border: 1px solid black; padding: 11px;">


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>Recent Developments</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On May&nbsp;19, 2009, we announced that our board of directors had suspended regular quarterly cash
dividends on our outstanding common stock and preferred stock as a result of recently adopted
Federal Reserve policies related to dividends and other distributions. Our board of directors also
determined to defer distributions on $52&nbsp;million of outstanding trust preferred securities.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On June&nbsp;18, 2009, at our annual meeting of shareholders, our shareholders approved certain amendments to our
amended and restated articles of incorporation, which we refer to as
our Articles of Incorporation. However, one proposal to amend Article
VII of our Articles of Incorporation, which requires
the approval of 66<sup>2</sup>/<SUP style="font-size: 85%; vertical-align: text-bottom">3</sup>% of all outstanding shares of our common stock, had not yet received the requisite vote. We adjourned the annual meeting in order to solicit the remaining votes needed for approval and we expect that such
proposal will be approved. The disclosure contained in this prospectus assumes that such proposal will be approved and gives effect to the amendments to
our Articles of Incorporation contemplated by such proposal.</DIV>

</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->2<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">
<P>
<DIV style="width: 100%; border: 1px solid black; padding: 11px;">

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>The Offering</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="48%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="48%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Common stock offered by us
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares of common stock, par value $0.10 per share.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Common stock outstanding after the offering<SUP style="font-size: 85%; vertical-align: text-top">(1)</SUP>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Net proceeds
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">The net proceeds of this offering will be approximately $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(after deducting offering expenses payable by us) based on
an assumed public offering price of $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;per share, the
closing price on&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;, 2009.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Use of proceeds
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">We expect to use the net proceeds we receive from this
offering to add capital to Seacoast National and for
general corporate purposes.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Nasdaq Global Select Market Symbol
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">SBCF</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>The number of shares of common stock outstanding after this offering includes 19,149,828 shares
outstanding as of March&nbsp;31, 2009, but does not include:</TD>
</TR>

</TABLE>



<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>shares of common stock issuable pursuant to the underwriters&#146; option to purchase
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; additional shares;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>shares reserved for issuance upon exercise of stock options with a weighted-average
exercise price of $21.02, which have been granted and remained outstanding as of
March&nbsp;31, 2009; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>1,179,245 shares of common stock that may be issued upon exercise of the Warrant (as
defined below).</TD>
</TR>

</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We have issued $50&nbsp;million of our Series&nbsp;A Preferred Stock to the United States Department of the Treasury (the &#147;Treasury&#148;) pursuant to the Troubled Asset Relief Program (&#147;TARP&#148;) Capital Purchase Program (&#147;CPP&#148;), together with the Warrant to purchase 1,179,245 shares of our
common stock at an initial purchase price of $6.36 per share. If this offering and any other qualified equity offerings that we may make prior to December&nbsp;31, 2009 result in aggregate gross proceeds of at least $50.0&nbsp;million, we expect that we would request that the Treasury reduce the Warrant it holds to purchase our common stock by 50%
to 589,622.5 shares.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Risk Factors</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Before investing, you should carefully consider the information set forth under &#147;Risk
Factors,&#148; beginning on page 6, for a discussion of the risks related to an investment in our common
stock.
</DIV>
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->3<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">
<P>
<DIV style="width: 100%; border: 1px solid black; padding: 11px;">

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>SUMMARY SELECTED CONSOLIDATED FINANCIAL DATA</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;You should read the summary selected consolidated financial information presented below in
conjunction with &#147;Management&#146;s Discussion and Analysis of Financial Condition and Results of
Operations&#148; and our financial statements and the notes to those financial statements appearing in
our Annual Report on Form 10-K for the fiscal year ended December&nbsp;31, 2008 and Quarterly Report on
Form 10-Q for the quarter ended March&nbsp;31, 2009, which are incorporated by reference in this
prospectus.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following tables set forth selected consolidated financial data for us at and for each of
the years in the five-year period ended December&nbsp;31, 2008 and at and for the three-month periods
ended March&nbsp;31, 2009 and 2008.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The selected statement of income data for the years ended December&nbsp;31, 2008, 2007 and 2006,
and the selected statement of financial condition data as of December&nbsp;31, 2008 and 2007, have been
derived from our audited financial statements included in our Annual Report on Form 10-K for the
year ended December&nbsp;31, 2008, which is incorporated by reference in this prospectus. The selected
statement of income data for the years ended December&nbsp;31, 2005 and 2004 and the summary statement
of financial condition data as of December&nbsp;31, 2006, 2005 and 2004 have been derived from our
audited financial statements that are not included in this prospectus.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The summary financial data at and for the three months ended March&nbsp;31, 2009 and 2008 have been
derived from our unaudited interim financial statements included in our Quarterly Reports on Form
10-Q for the quarter ended March&nbsp;31, 2009, and are incorporated by reference in this prospectus.
These unaudited interim financial statements include all adjustments (consisting only of normal
recurring adjustments) that we consider necessary for a fair presentation of our financial
condition and results of operations as of the dates and for the periods indicated. Historical
results are not necessarily indicative of future results and the results for the three months ended
March&nbsp;31, 2009 are not necessarily indicative of our expected results for the full year ending
December&nbsp;31, 2009.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="23%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7"><B>At or For the Three</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="19">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7" style="border-bottom: 1px solid #000000"><B>Months Ended March 31,</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="19" style="border-bottom: 1px solid #000000"><B>At or For The Year Ended December 31,</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2009</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2008</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2008</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2007</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2006</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2005</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2004</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="27"><B>(Dollars in thousands, except per share data)</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Selected Financial Data:</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">2,308,933</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">2,393,357</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">2,314,436</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">2,419,874</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">2,389,435</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">2,132,174</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">1,615,876</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Loans, net(1)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,632,577</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,854,968</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,647,340</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,876,487</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,718,196</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,280,989</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">892,949</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Securities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">375,836</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">294,450</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">345,901</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">300,729</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">443,941</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">543,024</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">588,017</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Investment Securities
Available for Sale</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">349,181</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">254,395</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">318,030</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">254,916</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">313,983</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">392,952</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">395,207</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Goodwill and intangibles</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">54,879</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">56,137</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">55,193</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">56,452</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">57,299</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">33,901</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,639</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Deposits</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,814,308</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,945,738</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,810,441</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,987,333</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,891,018</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,784,219</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,372,466</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Borrowings and Junior Subordinated
Debentures</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">118,849</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">118,917</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">118,912</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">118,640</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">67,760</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">86,723</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">39,912</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total Shareholders&#146; Equity</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">213,706</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">214,953</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">216,001</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">214,381</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">212,425</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">152,720</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">108,212</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Total Preferred Shareholders&#146; Equity</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">44,100</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">43,787</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Total Common Shareholders&#146; Equity</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">163,706</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">214,953</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">165,969</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">214,381</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">212,425</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">152,720</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">108,212</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD width="23%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Selected Operating Data:</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Interest Income</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">27,312</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">31,182</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">127,084</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">150,106</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">139,827</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">98,400</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">67,052</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Interest Expense</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9,138</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14,670</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">49,853</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">65,637</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">50,787</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">26,215</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14,278</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Net Interest Income</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18,174</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20,485</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">77,231</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">84,469</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">89,040</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">72,185</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">52,774</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Provision for Loan Losses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11,652</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">88,634</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12,745</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,285</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,317</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Non-interest Income (Loss)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,756</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,162</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21,920</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19,862</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">24,103</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20,645</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18,506</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Securities Gains (Losses)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">355</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(5,048</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(157</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">128</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">44</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Other</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,756</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,162</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21,565</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">24,910</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">24,260</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20,517</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18,462</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Non-interest Expenses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19,109</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18,684</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">78,214</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">77,423</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">73,045</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">59,100</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">47,281</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Earnings (Losses) Before Income Taxes</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(7,831</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,463</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(67,697</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14,163</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">36,813</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">32,413</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22,999</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Provision (Benefit) for Income Taxes</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(3,071</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">700</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(22,100</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,398</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12,959</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11,654</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,077</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net Income (Loss)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(4,760</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,763</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(45,597</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9,765</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">23,854</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20,759</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14,922</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD width="23%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Net Earnings:</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Less: Cumulative Preferred Stock Dividend
and Accretion</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">937</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">115</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net Income (Loss) Available to
Common Shareholders</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(5,697</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,763</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(45,712</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9,765</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">23,854</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20,759</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14,922</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Basic Earnings Per Common Share</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(0.30</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.09</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(2.41</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.52</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.30</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.27</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.97</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>
</DIV>
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->4<!-- /Folio -->


<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">
<P>
<DIV style="width: 100%; border: 1px solid black; padding: 11px;">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="23%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7"><B>At or For the Three</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="19">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7" style="border-bottom: 1px solid #000000"><B>Months Ended March 31,</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="19" style="border-bottom: 1px solid #000000"><B>At or For The Year Ended December 31,</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2009</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2008</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2008</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2007</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2006</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2005</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2004</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="27"><B>(Dollars in thousands, except per share data)</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Diluted Earnings Per Common Share</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(0.30</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.09</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(2.41</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.51</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.28</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.24</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.95</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Cash Dividends Declared Per
Common Share</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.01</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.16</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.34</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.64</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.61</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.58</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.54</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Weighted Average Common Shares:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Basic</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19,069,437</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18,928,375</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18,997,757</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18,936,541</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18,305,258</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16,361,196</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15,335,731</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Diluted</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19,069,437</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19,046,420</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18,997,757</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19,157,597</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18,671,752</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16,749,386</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15,745,445</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Book Value Per Common Share</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">8.86</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">11.25</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">8.98</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">11.22</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">11.20</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">8.94</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">7.00</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Market Price Per Common Share at Period End</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3.03</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10.95</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6.60</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10.28</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">24.80</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22.95</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22.25</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD width="23%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Selected Operating Ratios and Other Data:</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net Income (Loss) to Average Equity (ROE)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(8.83</TD>
    <TD nowrap>)%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">3.28</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(22.25</TD>
    <TD nowrap>)%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">4.46</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">12.06</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">14.95</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">13.75</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net Income (Loss) to Average Assets (ROA)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(0.83</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.30</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(1.97</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.42</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.03</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.07</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.05</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net Interest Margin (TE)(2)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3.44</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3.74</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3.58</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3.92</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4.15</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3.97</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3.89</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Non-interest Income to Total Net Revenue
(TE)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20.68</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">23.06</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21.76</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22.71</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21.36</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22.11</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25.87</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Efficiency Ratio(3)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">81.72</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">68.74</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">77.67</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">69.44</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">63.39</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">63.10</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">66.25</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Dividend Payout Ratio(4)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">n/m</TD>
    <TD nowrap>(5)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">171.80</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">n/m</TD>
    <TD nowrap>(5)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">124.80</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">47.10</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">46.30</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">55.60</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD width="23%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Credit Quality:</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Nonperforming Loans to Total Loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">6.69</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">3.86</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">5.19</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">3.57</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">0.72</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">0.03</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">0.16</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Nonperforming Assets to Total Assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5.29</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2.74</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3.98</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2.83</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.52</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.02</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.09</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net Charge-offs (Recoveries) /Average Loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2.07</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.93</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4.45</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.31</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(0.01</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.01</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.07</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Allowance/Total Loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.99</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.22</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.75</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.15</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.86</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.70</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.73</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Allowance/Total Nonperforming Loans and
Loans 90&nbsp;days or more
past due but still accruing</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">28.54</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">35.38</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">33.09</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">32.28</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">119.04</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,075.99</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">446.11</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net (Recoveries) Charge-offs</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">8,540</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">4,401</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">81,148</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">5,758</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">$</TD>
    <TD align="right">(106</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">134</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">562</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD width="23%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Regulatory Capital Ratios
Company:</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Leverage Ratio</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">9.13</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">9.09</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">9.58</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">9.10</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">8.53</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">7.86</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">7.10</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Tier 1 Risk-based Capital</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12.71</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">11.07</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12.75</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10.99</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10.87</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11.13</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10.36</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total Risk-based Capital</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">12.30</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12.17</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11.70</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11.76</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10.99</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Bank:</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Leverage Ratio</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">8.11</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">9.00</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">7.80</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">9.01</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">8.86</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">7.70</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">6.71</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Tier 1 Risk-based Capital</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11.31</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10.97</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10.38</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10.89</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11.30</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10.57</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9.79</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total Risk-based Capital</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12.57</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12.19</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11.64</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12.06</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12.12</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11.16</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10.42</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>Net of deferred fees and allowance for credit losses.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(2)</TD>
    <TD>&nbsp;</TD>
    <TD>Net interest income (TE)&nbsp;divided by total average earning assets.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(3)</TD>
    <TD>&nbsp;</TD>
    <TD>Noninterest expense (less amortization of intangibles) divided by total revenue (net interest
income (TE)&nbsp;and other operating income excluding securities gains and losses).</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(4)</TD>
    <TD>&nbsp;</TD>
    <TD>Cash dividends divided by net earnings.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(5)</TD>
    <TD>&nbsp;</TD>
    <TD>Not meaningful.</TD>
</TR>

</TABLE>

</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->5<!-- /Folio -->
</DIV>



<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left">
<A name="105"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>RISK FACTORS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>You should carefully consider the following risks before investing in our common stock. These
risks could materially affect our business, results of operations or financial condition and cause
the trading price of our common stock to decline. You could lose part or all of your investment.</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Risks Related to Our Business</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>There can be no assurance that recent legislation and administrative actions authorizing the U.S.
government to take direct actions within the financial services industry will help stabilize the
U.S. financial system.</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Emergency Economic Stabilization Act of 2008, or EESA, was enacted on October&nbsp;3, 2008.
Under EESA, the Treasury has the authority to,
among other things, invest in financial institutions and purchase up to $700&nbsp;billion of troubled
assets and mortgages from financial institutions for the purpose of stabilizing and providing
liquidity to the U.S. financial markets. Under Treasury&#146;s Capital Purchase Program, or CPP, it
committed to purchase up to $250&nbsp;billion of preferred stock and warrants in eligible institutions.
The EESA also temporarily increased FDIC deposit insurance coverage to $250,000 per depositor
through December&nbsp;31, 2009, which was recently extended to December&nbsp;31, 2013 under the Helping
Families Save Their Homes Act of 2009.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On February&nbsp;10, 2009, the Treasury announced the Financial Stability Plan which, among other
things, provides a forward-looking supervisory capital assessment program that is mandatory for
banking institutions with over $100&nbsp;billion of assets and makes capital available to financial
institutions qualifying under a process and criteria similar to the CPP. In addition, the American
Recovery and Reinvestment Act of 2009, or ARRA, was signed into law on February&nbsp;17, 2009, and
includes, among other things, extensive new restrictions on the compensation and governance
arrangements of financial institutions.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Numerous actions have been taken by the Federal Reserve, the U.S. Congress, the Treasury, the
FDIC, the SEC and others to address the current liquidity and credit crisis that has followed the
sub-prime mortgage crisis that commenced in 2007, including the Financial Stability Program adopted
by the Treasury. These measures include fiscal and monetary policy actions described under
&#147;Business&#151;Fiscal and Monetary Policy&#148; and &#147;Business&#151;Recent Legislative and Regulatory Changes&#148; in
our Annual Report on Form 10-K for the year ended December&nbsp;31, 2008, which is incorporated by
reference herein. In addition, the Secretary of the Treasury proposed fundamental changes to the
regulation of financial institutions, markets and products on June&nbsp;17, 2009.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We cannot predict the actual effects of EESA, the ARRA, the proposed regulatory reform
measures and various governmental, regulatory, monetary and fiscal initiatives which have been and
may be enacted on the financial markets, on us and on Seacoast National. The terms and
costs of these activities, or the failure of these actions to help stabilize the financial markets,
asset prices, market liquidity and a continuation or worsening of current financial market and
economic conditions could materially and adversely affect our business, financial condition,
results of operations, and the trading prices of our securities.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Difficult market conditions have adversely affected our industry and us.</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We are exposed to downturns in the U.S. economy, and particularly the local markets in which
we operate in Florida. Declines in the housing markets over the past year and a half, including
falling home prices and sales volumes, and increasing foreclosures, have negatively affected the
credit performance of mortgage loans and resulted in significant write-downs of asset values by
financial institutions, including government-sponsored entities and major commercial and investment
banks, as well as Seacoast National. These write-downs have caused many financial institutions to
seek additional capital, to merge with larger and stronger institutions and, in some cases, to
fail. Many lenders and institutional investors have reduced or ceased providing funding to
borrowers, including other financial institutions. This market turmoil and the tightening of
credit have led to increased levels of commercial and consumer delinquencies, lack of consumer
confidence, increased market volatility and reductions in business activity generally. The
resulting economic pressure on consumers and lack of confidence in the financial
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->6<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">markets has
adversely affected our business, financial condition and results of operations. We do not expect
that the
difficult conditions in the financial markets are likely to improve in the near future. A
worsening of these conditions would likely exacerbate the adverse effects of these difficult market
conditions on us and other financial institutions. In particular:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>We expect to face increased regulation of our industry, including as a result of
EESA, the ARRA and related initiatives by the U.S. government. Compliance with such
regulations may increase our costs and limit our ability to pursue business
opportunities.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Market developments and government programs may continue to adversely affect
consumer confidence levels and may cause adverse changes in borrower behaviors and
payment rates, resulting in further increases in delinquencies and default rates, which
could affect our loan charge-offs and our provisions for credit losses.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Our ability to assess the creditworthiness of our customers or to estimate the
values of our assets and collateral for loans will be reduced if the models and
approaches we use become less predictive of future behaviors, valuations, assumptions
or estimates. We estimate losses inherent in our credit exposure, the adequacy of our
allowance for loan losses and the values of certain assets by using estimates based on
difficult, subjective, and complex judgments, including estimates as to the effects of
economic conditions and how these economic conditions might affect the ability of our
borrowers to repay their loans or the value of assets.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Our ability to borrow from other financial institutions on favorable terms or at
all, or to raise capital, could be adversely affected by further disruptions in the
capital markets or other events, including, among other things, deteriorating investor
expectations.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Failures of other depository institutions in our markets and increasing
consolidation of financial services companies as a result of current market conditions
could increase our deposits and assets, necessitating additional capital, and may have
unexpected adverse effects upon our ability to compete effectively.</TD>
</TR>

</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>We are not paying dividends on our preferred stock or common stock and are deferring distributions
on our trust preferred securities, and we are restricted in otherwise paying cash dividends on our
common stock. The failure to resume paying dividends on our preferred stock and trust preferred
securities may adversely affect us.</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We historically paid cash dividends before we suspended dividend payments on our preferred and
common stock and distributions on our trust preferred securities on May&nbsp;19, 2009 pursuant to the
request of the Federal Reserve. The Federal Reserve, as a matter of policy, has indicated that
bank holding companies should not pay dividends or make distributions on trust preferred securities
using funds from the TARP CPP. We intend, following completion of this offering, to seek Federal
Reserve approval to pay all outstanding but unpaid dividends and distributions on our Series&nbsp;A
Preferred Stock and trust preferred securities. There is no assurance that we will receive
approval to resume paying cash dividends. Even if we are allowed to resume paying dividends again
by the Federal Reserve, future payment of cash dividends on our common stock, if any, will be
subject to the prior payment of all unpaid dividends and deferred distributions on our Series&nbsp;A
Preferred Stock and trust preferred securities. Further, we need prior Treasury approval to
increase our quarterly cash dividends above $0.01 per common share through the earliest of December&nbsp;23, 2011,
the date we redeem all shares of Series&nbsp;A Preferred Stock or the Treasury has transferred all
shares of Series&nbsp;A Preferred Stock to third parties. All dividends are declared and paid at the
discretion of our board of directors and are dependent upon our liquidity, financial condition,
results of operations, capital requirements and such other factors as our board of directors may
deem relevant. See &#147;Dividend Policy.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Further, dividend payments on our Series&nbsp;A Preferred Stock and distributions on our trust
preferred securities are cumulative and therefore unpaid dividends and distributions will accrue
and compound on each subsequent dividend payment date. In the event of any liquidation,
dissolution or winding up of the affairs of our company, holders of the Series&nbsp;A Preferred Stock
shall be entitled to receive for each share of Series&nbsp;A Preferred Stock the liquidation amount plus
the amount of any accrued and unpaid dividends. If we miss six quarterly
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">dividend payments,
whether or not consecutive, the Treasury will have the right to appoint two directors to our
board of directors until all accrued but unpaid dividends have been paid. We cannot pay
dividends on our outstanding shares of Series&nbsp;A Preferred Stock or our common stock until we have
paid in full all deferred distributions on our trust preferred securities, which will require prior approval of the Federal Reserve.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Nonperforming assets take significant time to resolve and adversely affect our results of
operations and financial condition.</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At December&nbsp;31, 2008 and March&nbsp;31, 2009, our nonperforming loans (which consist of non-accrual
loans) totaled $86.9&nbsp;million and $109.4&nbsp;million, or 5.18% and 6.70% of the loan portfolio,
respectively. At December&nbsp;31, 2008 and March&nbsp;31, 2009, our nonperforming assets (which include
foreclosed real estate) were $92.0&nbsp;million and $122.1&nbsp;million, or 3.97% and 5.29% of assets,
respectively. In addition, we had approximately $13.9&nbsp;million and $11.6&nbsp;million in accruing loans
that were 30-89&nbsp;days delinquent at December&nbsp;31, 2008 and March&nbsp;31, 2009, respectively. Our
non-performing assets adversely affect our net income in various ways. Until economic and market
conditions improve, we expect to continue to incur additional losses relating to an increase in
non-performing loans. We do not record interest income on non-accrual loans or other real estate
owned, thereby adversely affecting our income, and increasing our loan administration costs. When
we take collateral in foreclosures and similar proceedings, we are required to mark the related
loan to the then fair market value of the collateral, which may result in a loss. These loans and
other real estate owned also increase our risk profile and the capital our regulators believe is
appropriate in light of such risks. While we have reduced our problem assets through loan sales,
workouts, restructurings and otherwise, decreases in the value of these assets, or the underlying
collateral, or in these borrowers&#146; performance or financial conditions, whether or not due to
economic and market conditions beyond our control, could adversely affect our business, results of
operations and financial condition. In addition, the resolution of nonperforming assets requires
significant commitments of time from management and our directors, which can be detrimental to the
performance of their other responsibilities. There can be no assurance that we will not experience
further increases in nonperforming loans in the future.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Our allowance for loan losses may prove inadequate or we may be adversely affected by credit risk
exposures.</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our business depends on the creditworthiness of our customers. We periodically review our
allowance for loan losses for adequacy considering economic conditions and trends, collateral
values and credit quality indicators, including past charge-off experience and levels of past due
loans and nonperforming assets. We cannot be certain that our allowance for loan losses will be
adequate over time to cover credit losses in our portfolio because of unanticipated adverse changes
in the economy, market conditions or events adversely affecting specific customers, industries or
markets, or borrower behaviors towards repaying their loans. The
credit quality of our borrowers has deteriorated as a result of the
economic downturn in our markets. If the credit quality of our customer
base or their debt service behavior materially decreases further, if the risk profile of a market, industry
or group of customers declines further or weaknesses in the real estate markets and other
economics persist or worsen, or if our allowance for loan losses is not adequate, our business,
financial condition, including our liquidity and capital, and results of operations could be
materially adversely affected.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>During 2009, our commercial and residential real estate and real estate-related portfolios have
continued to be affected by adverse market conditions, including reduced real estate prices and
sales levels and, more generally, all of our loan portfolios have been affected by the sustained
economic weakness of our markets and the impact of higher unemployment rates.</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our commercial and residential real estate and real estate-related loans have continued to be
affected adversely by the on-going correction in real estate prices and reduced levels of sales.
More generally, all of our commercial real estate loan portfolios, especially construction and
development loans, have been affected adversely by the economic weakness of our Florida markets and
the effects of higher unemployment rates. We may have to increase our allowance for loan losses
through additional provisions for loan losses because of continued adverse changes in the economy,
market conditions, and events that adversely affect our customers or markets. Our business,
financial condition, liquidity, capital (especially tangible common equity), and results of
operations could be materially adversely affected by additional provisions for loan losses.
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Weaknesses in the real estate markets, including the secondary market for residential mortgage
loans, have adversely affected us and may continue to adversely affect us.</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The effects of ongoing mortgage market challenges, combined with the ongoing correction in
residential real estate market prices and reduced levels of home sales, could result in further
price reductions in single family home values, further adversely affecting the liquidity and value
of collateral securing commercial loans for residential land acquisition, construction and
development, as well as residential mortgage loans and residential property collateral securing
loans that we hold, mortgage loan originations and gains on sale of mortgage loans. Declining real
estate prices have caused higher delinquencies and losses on certain mortgage loans, generally,
particularly second lien mortgages and home equity lines of credit. Significant ongoing
disruptions in the secondary market for residential mortgage loans have limited the market for and
liquidity of most residential mortgage loans other than conforming Fannie Mae and Freddie Mac
loans. These trends could continue, notwithstanding various government programs to boost the
residential mortgage markets and stabilize the housing markets. Continued declines in real estate
values, home sales volumes and financial stress on borrowers as a result of job losses, interest
rate resets on adjustable rate mortgage loans or other factors could have further adverse effects
on borrowers that result in higher delinquencies and greater charge-offs in future periods, which
would adversely affect our financial condition, including capital and liquidity, or results of
operations. In the event our allowance for loan losses is insufficient to cover such losses, our
earnings, capital and liquidity could be adversely affected.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Our real estate portfolios are exposed to weakness in the Florida housing market and the overall
state of the economy.</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The declines in home prices and the volume of home sales in Florida, along with the reduced
availability of certain types of mortgage credit, have resulted in increases in delinquencies and
losses in our portfolios of home equity lines and loans, and commercial loans related to
residential real estate acquisition, construction and development. Further declines in home prices
coupled with the economic recession and associated rises in unemployment levels could cause
additional losses which could adversely affect our earnings and financial condition, including our
capital and liquidity.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Our concentration of commercial real estate loans could result in increased loan losses.</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Commercial real estate, or CRE, is cyclical and poses risks of loss to us due to concentration
levels and similar risks of the asset, especially since we had 53.5% of our portfolio in CRE loans
at year-end 2008 and 53.0% as of March&nbsp;31, 2009. The banking regulators continue to give CRE
lending greater scrutiny, and banks with higher levels of CRE loans are expected to implement
improved underwriting, internal controls, risk management policies and portfolio stress testing, as
well as higher levels of allowances for possible losses and capital levels as a result of CRE
lending growth and exposures. During 2008, we added $88.6&nbsp;million of provisions for loan losses
compared to $12.7&nbsp;million in 2007 and $3.3&nbsp;million in 2006, in part reflecting collateral
evaluations in response to recent changes in the market values of land collateralizing acquisition
and development loans.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Higher FDIC deposit insurance premiums and assessments could adversely affect our financial
condition.</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;FDIC insurance premiums have increased substantially in 2009 already and we expect to pay
significantly higher FDIC premiums in the future. Market developments have significantly depleted
the insurance fund of the FDIC and reduced the ratio of reserves to insured deposits. The FDIC
adopted a revised risk-based deposit insurance assessment schedule on February&nbsp;27, 2009, which
raised deposit insurance premiums. On May&nbsp;22, 2009, the FDIC also implemented a five basis point
special assessment of each insured depository institution&#146;s assets minus Tier 1 capital as of June
30, 2009, but no more than 10 basis points times the institution&#146;s assessment base for the second
quarter of 2009, to be collected on September&nbsp;30, 2009. Additional special assessments may be
imposed by the FDIC for future periods. We participate in the FDIC&#146;s Temporary Liquidity Guarantee
Program, or TLG, for noninterest-bearing transaction deposit accounts. Banks that participate in
the TLG&#146;s noninterest-bearing transaction account guarantee will pay the FDIC an annual assessment
of 10 basis points on the amounts in such accounts above the amounts covered by FDIC deposit
insurance. To the extent that these TLG assessments are insufficient to cover any loss or expenses
arising from the TLG program, the FDIC is authorized to impose an emergency special assessment on
all FDIC-insured depository institutions. The FDIC has authority to impose charges for the TLG
program upon depository institution holding companies, as well. These changes, along with the full
utilization of
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">our FDIC insurance assessment credit in early 2009, will cause the premiums and TLG
assessments charged by the FDIC to increase. These actions could significantly increase our
noninterest expense in 2009 and for the foreseeable future.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Current levels of market volatility are unprecedented.</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The capital and credit markets have been experiencing volatility and disruption for more than
a year. In some cases, the markets have produced downward pressure on stock prices and credit
availability for certain issuers without regard to those issuers&#146; underlying financial condition or
performance. If current levels of market disruption and volatility continue or worsen, we may
experience adverse effects, which may be material, on our ability to maintain or access capital and
on our business, financial condition and results of operations.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Liquidity risks could affect operations and jeopardize our financial condition.</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Liquidity is essential to our business. An inability to raise funds through deposits,
borrowings, the sale of loans and other sources could have a substantial negative effect on our
liquidity. Our funding sources include federal funds purchased, securities sold under repurchase
agreements, non-core deposits, and short- and long-term debt. We are also members of the Federal
Home Loan Bank of Atlanta and the Federal Reserve Bank of Atlanta, where we can obtain advances
collateralized with eligible assets. We maintain a portfolio of securities that can be used as a
secondary source of liquidity. There are other sources of liquidity available to us or Seacoast
National should they be needed, including our ability to acquire additional non-core deposits, the
issuance and sale of debt securities, and the issuance and sale of preferred or common securities
in public or private transactions. Our access to funding sources in amounts adequate to finance or
capitalize our activities or on terms which are acceptable to us could be impaired by factors that
affect us specifically or the financial services industry or economy in general. Our liquidity, on
a parent only basis, is adversely affected by our current inability to receive dividends from
Seacoast National without prior regulatory approval, offset by approximately $24.0&nbsp;million of cash
and short-term investments currently held by us at March&nbsp;31, 2009, largely due to the receipt of
TARP CPP proceeds. We invested $27.0&nbsp;million of the TARP CPP proceeds in Seacoast National to meet
the Office of the Comptroller of the Currency&#146;s, or the OCC&#146;s, capital requirements. Our ability to
borrow could also be impaired by factors that are not specific to us, such as further disruption in
the financial markets or negative views and expectations about the prospects for the financial
services industry in light of the recent turmoil faced by banking organizations and the continued
deterioration in credit markets.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>We could encounter difficulties as a result of our growth.</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our loans, deposits, fee businesses and employees have increased as a result of our organic
growth and acquisitions. Our failure to successfully manage and support this growth with
sufficient human resources, training and operational, financial and technology resources in
challenging markets and economic conditions could have a material adverse effect on our operating
results and financial condition. We may not be able to sustain our historical growth rates.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>We are required to maintain capital to meet regulatory requirements, and if we fail to maintain
sufficient capital, whether due to losses, an inability to raise additional capital or otherwise,
our financial condition, liquidity and results of operations, as well as our regulatory
requirements, would be adversely affected.</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Both we and Seacoast National must meet regulatory capital requirements and maintain
sufficient liquidity. We have an informal letter agreement with the OCC to maintain a Tier 1
leverage capital ratio of 7.50% and a total risk-based capital ratio of 12.0% at Seacoast National,
which are higher than the stated minimum capital ratios. We also face significant regulatory and
other governmental risk as a financial institution and a participant in the TARP CPP.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our ability to raise additional capital, when and if needed, will depend on conditions in the
capital markets, economic conditions and a number of other factors, including investor perceptions
regarding the banking industry and market condition, and governmental activities, many of which are
outside our control, and on our financial condition and performance. Accordingly, we cannot assure
you that we will be able to raise additional capital if
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">needed or on terms acceptable to us. If we fail to meet these capital and other regulatory
requirements, our financial condition, liquidity and results of operations would be materially and
adversely affected.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our failure to remain &#147;well capitalized&#148; for bank regulatory purposes could affect customer
confidence, our ability to grow, our costs of funds and FDIC insurance costs, our ability to pay
dividends on common and preferred stock, make distributions on our trust preferred securities, our
ability to make acquisitions, and our business, results of operation and financial conditions,
generally. Under FDIC rules, if Seacoast National ceases to be a &#147;well capitalized&#148; institution
for bank regulatory purposes, its ability to accept brokered deposits may be restricted, and the
interest rates that it pays may be restricted.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Sales of additional capital could dilute existing shareholders.</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Issuances of our common stock or securities convertible into or exchangeable for our common
stock could dilute the interests of our existing common shareholders or require shareholders to
approve an increase in the number of shares of common stock we are authorized to issue and could
increase the number of shares of common stock we are required to issue under the warrant we issued
to the Treasury under the TARP CPP. Among the securities we may issue are shares of preferred
stock which likely will have dividend and liquidation rights senior in priority to the rights of
holders of our common stock.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Our cost of funds may increase as a result of general economic conditions, FDIC insurance
assessments, interest rates and competitive pressures.</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our cost of funds may increase as a result of general economic conditions, FDIC insurance
assessments, interest rates and competitive pressures. We have traditionally obtained funds
principally through local deposits and we have a base of lower cost transaction deposits.
Generally, we believe local deposits are a cheaper and more stable source of funds than other
borrowings because interest rates paid for local deposits are typically lower than interest rates
charged for borrowings from other institutional lenders and reflect a mix of transaction and time
deposits, whereas brokered deposits typically are higher cost time deposits. Our costs of funds
and our profitability and liquidity are likely to be adversely affected, if and to the extent we
have to rely upon higher cost borrowings from other institutional lenders or brokers to fund loan
demand or liquidity needs, and changes in our deposit mix and growth could adversely affect our
profitability and the ability to expand our loan portfolio.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Our profitability and liquidity may be affected by changes in interest rates and economic
conditions.</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our profitability depends upon net interest income, which is the difference between interest
earned on assets, and interest expense on interest-bearing liabilities, such as deposits and
borrowings. Net interest income will be adversely affected if market interest rates change such
that the interest we pay on deposits and borrowings and our FDIC deposit insurance assessments
increase faster than the interest earned on loans and investments. Interest rates, and
consequently our results of operations, are affected by general economic conditions (domestic and
foreign) and fiscal and monetary policies may materially affect the level and direction of interest
rates. From June&nbsp;2004 to mid-2006, the Federal Reserve raised the federal funds rate from 1.0% to
5.25%. Since then, beginning in September&nbsp;2007, the Federal Reserve decreased the federal funds
rates by 100 basis points to 4.25% over the remainder of 2007, and has since reduced the target
federal funds rate by an additional 400 basis points to a range between zero to 25 basis points
beginning in December&nbsp;2008. Decreases in interest rates generally increase the market values of
fixed-rate, interest-bearing investments and loans held, and increase the values of loan sales and
mortgage loan activities. However, the production of mortgages and other loans and the value of
collateral securing our loans, are dependent on demand within the markets we serve, as well as
interest rates. The levels of sales, as well as the values of real estate in our markets, have
declined. Declining rates reflect efforts by the Federal Reserve to stimulate the economy, but may
not be effective, and thus may negatively affect our results of operations and financial condition,
liquidity and earnings.
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>The TARP CPP and the ARRA impose certain executive compensation and corporate governance
requirements that may adversely affect us and our business, including our ability to recruit and
retain qualified employees.</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The purchase agreement we entered into in connection with our participation in the TARP CPP
required us to adopt the Treasury&#146;s standards for executive compensation and corporate governance
while the Treasury holds the equity issued pursuant to the TARP CPP, including the common stock
which may be issued pursuant to the warrant to purchase 1,179,245 shares of common stock, or the
Warrant, which we refer to as the TARP Assistance Period. These standards generally apply to our
chief executive officer, chief financial officer and the three next most highly compensated senior
executive officers. The standards include:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>ensuring that incentive compensation for senior executives does not encourage
unnecessary and excessive risks that threaten the value of the financial institution;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>required clawback of any bonus or incentive compensation paid to a senior executive
based on statements of earnings, gains or other criteria that are later proven to be
materially inaccurate;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>prohibition on making golden parachute payments to senior executives; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>agreement not to deduct for tax purposes executive compensation in excess of
$500,000 for each senior executive.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In particular, the change to the deductibility limit on executive compensation may increase
the overall cost of our compensation programs in future periods.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The ARRA imposed further limitations on compensation during the TARP Assistance Period
including:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>a prohibition on making any golden parachute payment to a senior executive officer
or any of our next five most highly compensated employees;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>a prohibition on any compensation plan that would encourage manipulation of the
reported earnings to enhance the compensation of any of its employees; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>a prohibition of the five highest paid executives from receiving or accruing any
bonus, retention award, or incentive compensation, or bonus except for long-term
restricted stock with a value not greater than one-third of the total amount of annual
compensation of the employee receiving the stock.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The prohibition may expand to other employees based on increases in the aggregate value of
financial assistance that we receive in the future. For example, if we receive at least $250
million but less than $500&nbsp;million in TARP financial assistance, the senior executive officers and
at least the next 10 most highly compensated employees will be prohibited from receiving or
accruing any such bonus.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Treasury released an interim final rule on TARP standards for compensation and corporate
governance on June&nbsp;10, 2009, which implemented and further expanded the limitations and
restrictions imposed on executive compensation and corporate governance by the TARP CPP and ARRA.
The new Treasury interim final rules, which became effective on June&nbsp;15, 2009, also prohibit any
tax gross-up payments to senior executive officers and the next 20 highest paid executives. The
rule further authorizes the Treasury to establish the Office of the Special Master for TARP
Executive Compensation with broad powers to review compensation plans and corporate governance
matters of TARP recipients.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;These provisions and any future rules issued by the Treasury could adversely affect our
ability to attract and retain management capable and motivated sufficiently to manage and operate
our business through difficult economic and market conditions. If we are unable to attract and
retain qualified employees to manage and operate our business, we may not be able to successfully
execute our business strategy.
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>TARP lending goals may not be attainable.</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Congress and the bank regulators have encouraged recipients of TARP capital to use such
capital to make loans and it may not be possible to safely, soundly and profitably make sufficient
loans to creditworthy persons in the current economy to satisfy such goals. Congressional demands
for additional lending by TARP capital recipients, and regulatory demands for demonstrating and
reporting such lending are increasing. On November&nbsp;12, 2008, the bank regulatory agencies issued a
statement encouraging banks to, among other things, &#147;lend prudently and responsibly to creditworthy
borrowers&#148; and to &#147;work with borrowers to preserve homeownership and avoid preventable
foreclosures.&#148; We continue to lend and have expanded our mortgage loan originations, and to report
our lending to the Treasury. The future demands for additional lending are unclear and uncertain,
and we could be forced to make loans that involve risks or terms that we would not otherwise find
acceptable or in our shareholders&#146; best interest. Such loans could adversely affect our results of
operation and financial condition, and may be in conflict with bank regulations and requirements as
to liquidity and capital. The profitability of funding such loans using deposits may be adversely
affected by increased FDIC insurance premiums.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Changes in future rules applicable to banks generally or to TARP recipients could adversely affect
our operations, financial condition, and results of operations.</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The rules and policies applicable to recipients of capital under the TARP CPP continue to
evolve and their scope, timing and effect cannot be predicted. We are not using proceeds from this
offering to redeem our Series&nbsp;A Preferred Stock issued to the Treasury under the TARP CPP. Any
redemption of the securities sold to the Treasury to avoid these restrictions would require prior
Federal Reserve and Treasury approval. Based on recently issued Federal Reserve guidelines,
institutions seeking to redeem TARP CPP preferred stock must demonstrate an ability to access the
long-term debt markets without reliance on the FDIC&#146;s TLG, successfully demonstrate access to
public equity markets and meet a number of additional requirements and considerations before we can
redeem any securities sold to the Treasury. Therefore, it is uncertain if we will be able to
redeem such securities even if we have sufficient financial resources to do so.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Our future success is dependent on our ability to compete effectively in highly competitive
markets.</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We operate in the highly competitive markets of Martin, St. Lucie, Brevard, Indian River,
Palm Beach and Broward Counties in southeastern Florida, the Orlando, Florida metropolitan
statistical area, as well as in more rural competitive counties in the Lake Okeechobee, Florida
region. Our future growth and success will depend on our ability to compete effectively in these
markets. We compete for loans, deposits and other financial services in geographic markets with
other local, regional and national commercial banks, thrifts, credit unions, mortgage lenders, and
securities and insurance brokerage firms. Many of our competitors offer products and services
different from us, and have substantially greater resources, name recognition and market presence
than we do, which benefits them in attracting business. Larger competitors may be able to price
loans and deposits more aggressively than we can, and have broader customer and geographic bases to
draw upon.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>The soundness of other financial institutions could adversely affect us.</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our ability to engage in routine funding and other transactions could be adversely affected by
the actions and commercial soundness of other financial institutions. Financial services
institutions are interrelated as a result of trading, clearing, counterparty or other
relationships. As a result, defaults by, or even rumors or questions about, one or more financial
services institutions, or the financial services industry generally, have led to market-wide
liquidity problems, losses of depositor, creditor and counterparty confidence and could lead to
losses or defaults by us or by other institutions. We could experience increases in deposits and
assets as a result of other banks&#146; difficulties or failure, which would increase the capital we
need to support such growth.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>We operate in a heavily regulated environment.</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We and our subsidiaries are regulated by several regulators, including the Federal Reserve,
the OCC, the SEC, the FDIC and FINRA, and since December&nbsp;2008, the Treasury. Our success is
affected by state and federal regulations affecting banks and bank holding companies, and the
securities markets and securities and insurance
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">regulators. Banking regulations are primarily intended to protect depositors, not
shareholders. The financial services industry also is subject to frequent legislative and
regulatory changes and proposed changes, the effects of which cannot be predicted. Federal bank
regulatory agencies and the Treasury, as well as the Congress and the President, are evaluating the
regulation of banks, other financial services providers and the financial markets and such changes,
if any, could require us to maintain more capital, liquidity and risk management which could
adversely affect our growth, profitability and financial condition.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>We are subject to internal control reporting requirements that increase compliance costs and
failure to comply timely could adversely affect our reputation and the value of our securities.</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We are required to comply with various corporate governance and financial reporting
requirements under the Sarbanes-Oxley Act of 2002, as well as rules and regulations adopted by the
SEC, the Public Company Accounting Oversight Board and Nasdaq. In particular, we are required to
include management and independent auditor reports on internal controls as part of our annual
report on Form 10-K pursuant to Section&nbsp;404 of the Sarbanes-Oxley Act. We expect to continue to
spend significant amounts of time and money on compliance with these rules. The SEC also has
proposed a number of new rules or regulations requiring additional disclosure, such as lower-level
employee compensation. Our failure to track and comply with the various rules may materially
adversely affect our reputation, ability to obtain the necessary certifications to financial
statements, and the value of our securities.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Technological changes affect our business, and we may have fewer resources than many competitors to
invest in technological improvements.</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The financial services industry is undergoing rapid technological changes with frequent
introductions of new technology-driven products and services. In addition to serving clients
better, the effective use of technology may increase efficiency and may enable financial
institutions to reduce costs. Our future success will depend, in part, upon our ability to use
technology to provide products and services that provide convenience to customers and to create
additional efficiencies in operations. We may need to make significant additional capital
investments in technology in the future, and we may not be able to effectively implement new
technology-driven products and services. Many competitors have substantially greater resources to
invest in technological improvements.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>The anti-takeover provisions in our Articles of Incorporation and under Florida law may make it
more difficult for takeover attempts that have not been approved by our board of directors.</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Florida law and our Articles of Incorporation include anti-takeover provisions, such as provisions that
encourage persons seeking to acquire control of us to consult with our board, and which enable the
board to negotiate and give consideration on behalf of us and our shareholders and other
constituencies to the merits of any offer made. Such provisions, as well as supermajority voting
and quorum requirements and a staggered board of directors, may make any takeover attempts and
other acquisitions of interests in us, by means of a tender offer, open market purchase, a proxy
fight or otherwise, that have not been approved by our board of directors more difficult and more
expensive. These provisions may discourage possible business combinations that a majority of our
shareholders may believe to be desirable and beneficial. As a result, our board of directors may
decide not to pursue transactions that would otherwise be in your best interests as a holder of our
common stock.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Hurricanes or other adverse weather events would negatively affect our local economies or disrupt
our operations, which would have an adverse effect on our business or results of operations.</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our market areas in Florida are susceptible to hurricanes and tropical storms and related
flooding and wind damage. Such weather events can disrupt operations, result in damage to
properties and negatively affect the local economies in the markets where they operate. We cannot
predict whether or to what extent damage that may be caused by future hurricanes will affect its
operations or the economies in our current or future market areas, but such weather events could
result in a decline in loan originations, a decline in the value or destruction of properties
securing our loans and an increase in the delinquencies, foreclosures or loan losses. Our business
or results of operations may be adversely affected by these and other negative effects of future
hurricanes or tropical storms, including flooding and wind damage. Many of our customers have
incurred significantly higher property and
</DIV>

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</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">casualty insurance premiums on their properties located in our markets, which may adversely
affect real estate sales and values in our markets.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Future acquisitions and expansion activities may disrupt our business, dilute existing shareholders
and adversely affect our operating results.</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We regularly evaluate potential acquisitions and expansion opportunities. To the extent that
we grow through acquisitions, we cannot assure you that we will be able to adequately or profitably
manage this growth. Acquiring other banks, branches or businesses, as well as other geographic and
product expansion activities, involve various risks including:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>risks of unknown or contingent liabilities;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>unanticipated costs and delays;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>risks that acquired new businesses do not perform consistent with our growth and
profitability expectations;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>risks of entering new markets or product areas where we have limited experience;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>risks that growth will strain our infrastructure, staff, internal controls and
management, which may require additional personnel, time and expenditures;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>exposure to potential asset quality issues with acquired institutions;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>difficulties, expenses and delays of integrating the operations and personnel of
acquired institutions, and start-up delays and costs of other expansion activities;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>potential disruptions to our business;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>possible loss of key employees and customers of acquired institutions;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>potential short-term decreases in profitability; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>diversion of our management&#146;s time and attention from our existing operations and
business.</TD>
</TR>

</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Attractive acquisition opportunities may not be available to us in the future.</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;While we seek continued organic growth, as our earnings and capital position improve, we may
consider the acquisition of other businesses. We expect that other banking and financial
companies, many of which have significantly greater resources, will compete with us to acquire
financial services businesses. This competition could increase prices for potential acquisitions
that we believe are attractive. Also, acquisitions are subject to various regulatory approvals.
If we fail to receive the appropriate regulatory approvals, we will not be able to consummate an
acquisition that we believe is in our best interests. Among other things, our regulators consider
our capital, liquidity, profitability, regulatory compliance and levels of goodwill and intangibles
when considering acquisition and expansion proposals. Any acquisition could be dilutive to our
earnings and shareholders&#146; equity per share of our common stock.
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Risks Related to Our Common Stock</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>We may issue additional shares of common or preferred stock securities, which may dilute the
interests of our shareholders and may adversely affect the market price of our common stock.</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We are currently authorized to issue up to 65&nbsp;million shares of common stock, of which 19,166,327 shares are currently outstanding and up to 4&nbsp;million shares of preferred stock, of
which 2,000 shares are outstanding. Our board of directors has authority, without action or vote
of the shareholders, to issue all or part of the authorized but unissued shares and to establish
the terms of any series of preferred stock. These authorized but unissued shares could be issued
on terms or in circumstances that could dilute the interests of other shareholders.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>The Series&nbsp;A Preferred Stock diminishes the net income available to our common shareholders and
earnings per common share, and the Warrant we issued to Treasury may be dilutive to holders of our
common stock.</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The dividends accrued and the accretion on discount on the Series&nbsp;A Preferred Stock reduce the
net income available to common shareholders and our earnings per common share. The Series&nbsp;A
Preferred Stock is cumulative, which means that any dividends not declared or paid will accumulate
and will be payable when we resume paying dividends. Shares of Series&nbsp;A Preferred Stock will also
receive preferential treatment in the event of liquidation, dissolution or winding up of Seacoast.
Additionally, the ownership interest of the existing holders of our common stock will be diluted to
the extent the Warrant is exercised. The shares of common stock underlying the Warrant represent
approximately 6.16% of the shares of our common stock outstanding as of March&nbsp;31, 2009 (including
the shares issuable upon exercise of the Warrant in our total outstanding shares and not including
the 50% reduction in the number of shares subject to this Warrant which we currently expect would occur if we raise at least $50.0&nbsp;million in one or more qualified equity offerings prior to December&nbsp;31, 2009). Although Treasury has agreed not to vote any of the shares of common stock it receives
upon exercise of the Warrant, a transferee of any portion of the Warrant or of any shares of common
stock acquired upon exercise of the Warrant is not bound by this restriction.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Holders of the Series&nbsp;A Preferred Stock have certain voting rights that may adversely affect our
common shareholders, and the holders of shares of our Series&nbsp;A Preferred Stock may have different
interests from, and vote their shares in a manner deemed adverse to, our common shareholders.</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In the event that we fail to pay dividends on the Series&nbsp;A Preferred Stock for an aggregate of
at least six quarterly dividend periods (whether or not consecutive) the Treasury will have the
right to appoint two directors to our board of directors until all accrued but unpaid dividends
have been paid; otherwise, except as required by law, holders of the Series&nbsp;A Preferred Stock have
limited voting rights. So long as shares of the Series&nbsp;A Preferred Stock are outstanding, in
addition to any other vote or consent of shareholders required by law or our amended and restated
charter, the vote or consent of holders owning at least
66<sup>2</sup>/<SUP style="font-size: 85%; vertical-align: text-bottom">3</sup>% of the shares of Series&nbsp;A Preferred
Stock outstanding is required for:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>any authorization or issuance of shares ranking senior to the Series&nbsp;A Preferred
Stock;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>any amendment to the rights of the Series&nbsp;A Preferred Stock so as to adversely
affect the rights, preferences, privileges or voting power of the Series&nbsp;A Preferred
Stock; or</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>consummation of any merger, share exchange or similar transaction unless the shares
of Series&nbsp;A Preferred Stock remain outstanding, or if we are not the surviving entity
in such transaction, are converted into or exchanged for preference securities of the
surviving entity and the shares of Series&nbsp;A Preferred Stock remaining outstanding or
such preference securities have such rights, preferences, privileges and voting power
as are not materially less favorable to the holders than the rights, preferences,
privileges and voting power of the shares of Series&nbsp;A Preferred Stock. Holders of
Series&nbsp;A Preferred Stock could block the foregoing transaction, even where considered
desirable by, or in the best interests of, holders of our common stock.</TD>
</TR>

</TABLE>
</DIV>
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<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The holders of Series&nbsp;A Preferred Stock, including the Treasury, may have different interests
from the holders of our common stock, and could vote to disapprove transactions that are favored
by, or are in the best interests of, our common shareholders.
</DIV>

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</DIV>

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<DIV align="left">
<A name="106"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>USE OF PROCEEDS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
will receive net proceeds of approximately $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;million from the sale of shares of our common
stock in this offering, after deducting the underwriting discount and estimated offering expenses
of approximately $&nbsp;&nbsp;&nbsp;&nbsp; payable by us, based on an assumed public offering price of $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;per share, the
closing price on&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;, 2009. If the underwriters&#146; option to purchase additional shares is
exercised in full, our net proceeds will be approximately $&nbsp;&nbsp;&nbsp;&nbsp;million.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We intend to use the net proceeds of this offering to add capital to Seacoast National and for general corporate purposes.
</DIV>

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</DIV>

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<DIV align="left">
<A name="107"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>PRICE RANGE OF COMMON STOCK</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our common stock is listed on the Nasdaq Global Select Market under the symbol &#147;SBCF.&#148; The
table below sets forth the high and low sale prices per share of our common stock on the Nasdaq
Global Select Market and the dividends paid per share of our common stock for the indicated
periods. As of June&nbsp;18, 2009, we had approximately 19,166,327 shares of common stock issued and outstanding, held by approximately 1,436 record holders.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7" style="border-bottom: 0px solid #000000"><B>Sale Price Per Share of</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Quarterly Dividends</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7" style="border-bottom: 1px solid #000000"><B>Seacoast Common Stock</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Declared Per Share of</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>High</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Low</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Seacoast Common Stock</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>2007</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">First Quarter</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">24.650</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">22.220</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">0.16</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Second Quarter</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25.360</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20.270</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.16</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Third Quarter</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22.300</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15.620</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.16</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Fourth Quarter</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19.570</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10.280</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.16</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>2008</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">First Quarter</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">12.460</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">7.670</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">0.16</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Second Quarter</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11.200</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7.760</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.16</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Third Quarter</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12.570</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7.310</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.01</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Fourth Quarter</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11.000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4.370</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.01</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>2009</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">First Quarter</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">6.870</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">2.170</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">0.01</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Second Quarter (through June&nbsp;18, 2009)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4.350</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2.530</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">*</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">*</TD>
    <TD>&nbsp;</TD>
    <TD>Dividends were suspended as of May&nbsp;19, 2009.</TD>
</TR>

</TABLE>


<P align="center" style="font-size: 10pt"><!-- Folio -->19<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">





<DIV align="left">
<A name="108"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>DIVIDEND POLICY</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dividends from Seacoast National historically have been our primary source of funds to pay
dividends on our common stock. Under the National Bank Act, national banks may in any calendar
year, without the approval of the OCC, pay dividends to the extent of net profits for that year,
plus retained net profits for the preceding two years (less any required transfers to surplus).
The need to maintain adequate capital in Seacoast National also limits dividends that may be paid
to us. Beginning in the third quarter of 2008, we reduced our dividend per share of our common
stock to $0.01 and, as of May&nbsp;19, 2009, we have suspended the payment of dividends, as described
below. As of December&nbsp;31, 2008, Seacoast National cannot pay us any dividends without prior OCC
approval, and in all events must maintain appropriate capital that meets regulatory requirements
applicable to us.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The OCC and the Federal Reserve have policies that encourage banks and bank holding companies
to pay dividends from current earnings, and have the general authority to limit the dividends paid
by national banks and bank holding companies, respectively, if such payment may be deemed to
constitute an unsafe or unsound practice. If, in the particular circumstances, either of these
federal regulators determine that the payment of dividends would constitute an unsafe or unsound
banking practice, either the OCC or the Federal Reserve may, among other things, issue a cease and
desist order prohibiting the payment of dividends by Seacoast National or us, respectively. Under
a recently adopted Federal Reserve policy, the board of directors of a bank holding company must
consider different factors to ensure that its dividend level is prudent relative to the
organization&#146;s financial position and is not based on overly optimistic earnings scenarios such as
any potential events that may occur before the payment date that could affect its ability to pay,
while still maintaining a strong financial position. As a general matter, the Federal Reserve has
indicated that the board of directors of a bank holding company, such as Seacoast, should consult
with the Federal Reserve and eliminate, defer, or significantly reduce the bank holding company&#146;s
dividends if: (i)&nbsp;its net income available to shareholders for the past four quarters, net of
dividends previously paid during that period, is not sufficient to fully fund the dividends; (ii)
its prospective rate of earnings retention is not consistent with the its capital needs and overall
current and prospective financial condition; or (iii)&nbsp;it will not meet, or is in danger of not
meeting, its minimum regulatory capital adequacy ratios.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As a result of our participation in the TARP CPP program, additional restrictions have been
imposed on our ability to declare or increase dividends on shares of our common stock, including a
restriction on paying quarterly dividends above $0.01 per share. Specifically, we are unable to
declare dividend payments on our common, junior preferred or <I>pari passu </I>preferred shares if we are
in arrears on the dividends on the Series&nbsp;A Preferred Stock. Further, without the Treasury&#146;s
approval, we are not permitted to increase dividends on our common stock above $0.01 per share
until December&nbsp;19, 2011 unless all of the Series&nbsp;A Preferred Stock has been redeemed or transferred
by the Treasury. In addition, we cannot repurchase shares of common stock or use proceeds from the
Series&nbsp;A Preferred Stock to repurchase trust preferred securities. Consent of the Treasury
generally is required for us to make any stock repurchase until December&nbsp;19, 2011 unless all of the
Series&nbsp;A Preferred Stock has been redeemed or transferred by the Treasury to a third party.
Further, our common, junior preferred or <I>pari passu </I>preferred shares may not be repurchased if we
have not declared and paid all Series&nbsp;A Preferred Stock dividends.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On May&nbsp;19, 2009, our board of directors determined to suspend regular quarterly cash dividends
on our outstanding common stock and Series&nbsp;A Preferred Stock pursuant to a request from the Federal
Reserve as a result of recently adopted Federal Reserve policies related to dividends and other
distributions. Dividends will be suspended until such time as dividends are allowed by
the Federal Reserve. The Federal
Reserve has a policy that it does not want bank holding companies that have TARP CPP capital to use
TARP funds to pay dividends on common or preferred stock or to make distributions on our
outstanding trust preferred securities.
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->20<!-- /Folio -->
</DIV>



<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left">
<A name="109"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>CAPITALIZATION</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table sets forth our cash and cash equivalents, our capitalization, our per
common share book values, and our regulatory capital ratios, each as of March&nbsp;31, 2009 and to give
effect to the issuance of the common stock offered hereby, assuming that &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares of our common stock are sold in this offering at $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; per share
and that the net proceeds thereof are approximately $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; million after deducting underwriting
discounts and commissions and our estimated expenses, based on an assumed public offering
price of $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;per share, the closing price on &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;, 2009. If the underwriters&#146; over-allotment option is exercised in full, cash and cash
equivalents will increase to $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; million.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="76%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>As of March 31, 2009</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Actual</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>As Adjusted(1)</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6"><B>(Dollars in thousands, except per share</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6"><B>data and ratios)</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Cash and cash equivalents</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left"><B>$</B></TD>
    <TD align="right">149,491</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Total liabilities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left"><B>$</B></TD>
    <TD align="right">2,095,227</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Shareholders&#146; equity</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Preferred stock, authorized 4,000,000
shares, par value $0.10 per share; issued
and outstanding 2,000</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left"><B>$</B></TD>
    <TD align="right">44,100</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Warrant for purchase of shares of common
stock at $6.36 per share</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,900</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Common stock, authorized 65,000,000
shares, par value $0.10 per share; issued
and outstanding 19,258,632, actual; issued
and outstanding shares, as
adjusted</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,915</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Other shareholders&#146; equity</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">161,791</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Total shareholders&#146; equity</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left"><B>$</B></TD>
    <TD align="right">2,308,933</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Total capitalization</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left"><B>$</B></TD>
    <TD align="right">2,308,933</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Per common stock</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Common book value per share</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left"><B>$</B></TD>
    <TD align="right">8.86</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Tangible common book value per share</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5.99</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Regulatory capital ratios:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">For the Company:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Tier 1 leverage ratio</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">9.13</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Tier 1 risk-based capital ratio</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12.71</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Total risk-based capital ratio</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">For the Bank:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Tier 1 leverage ratio</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">8.11</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Tier 1 risk-based capital ratio</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11.31</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Total risk-based capital ratio</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12.57</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
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</DIV>




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<DIV style="font-family: 'Times New Roman',Times,serif">





<DIV align="left">
<A name="110"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>DESCRIPTION OF CAPITAL STOCK</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following description of shares of our common stock, par value $0.10 per share, or &#147;common
stock,&#148; is a summary only and is subject to applicable provisions of the Florida Business
Corporation Act, as amended, which we refer to as the Florida Act, and to our Articles of
Incorporation and our amended and restated bylaws. You should refer to, and read this summary
together with, our Articles of Incorporation and amended and restated bylaws to review all of the
terms of our capital stock. Our Articles of Incorporation are incorporated by reference as
exhibits to our Annual Report on Form 10-K for the year ended December&nbsp;31, 2008 filed with the SEC,
as amended.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Common Stock</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>General</I></B>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our Articles of Incorporation provide that we may issue up to 65&nbsp;million shares of common
stock, par value of $0.10 per share. As of June&nbsp;18, 2009, 19,166,327 shares of our common stock
were issued and outstanding. All outstanding shares of our common stock are
fully paid and nonassessable. Our common stock is listed on the Nasdaq Global Select Market under
the symbol &#147;SBCF.&#148;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B><I>Voting Rights</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each outstanding share of our common stock entitles the holder to one vote on all matters
submitted to a vote of shareholders, including the election of directors. The holders of our
common stock possess exclusive voting power, except as otherwise provided by law or by articles of
amendment establishing any series of our preferred stock, including the voting rights held by
holders of our Series&nbsp;A Preferred Stock.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;There is no cumulative voting in the election of directors, which means that the holders of a
plurality of our outstanding shares of common stock can elect all of the directors then standing
for election. When a quorum is present at any meeting, questions brought before the meeting will
be decided by the vote of the holders of a majority of the shares present and voting on such
matter, whether in person or by proxy, except when the meeting concerns matters requiring the vote
of the holders of a majority of all outstanding shares under applicable Florida law. Our Articles
of Incorporation provide certain anti-takeover provisions that require super-majority votes, which
may limit shareholders&#146; rights to effect a change in control as described under the section below
entitled
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B><I>Dividends, Liquidation and Other Rights</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Holders of shares of common stock are entitled to receive dividends only when, as and if
approved by our board of directors from funds legally available for the payment of dividends, after
payment of dividends on our outstanding series of preferred stock. Our shareholders are entitled
to share ratably in our assets legally available for distribution to our shareholders in the event
of our liquidation, dissolution or winding up, voluntarily or involuntarily, after payment of, or
adequate provision for, all of our known debts and liabilities and of any preferences of Series&nbsp;A
Preferred Stock or any other series of our preferred stock that may be outstanding in the future.
These rights are subject to the preferential rights of any other series of our preferred stock that
may then be outstanding.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Holders of shares of our common stock have no preference, conversion, exchange, sinking fund
or redemption rights and have no preemptive rights to subscribe for any of our securities. Our
board of directors may issue additional shares of our common stock or rights to purchase shares of
our common stock without the approval of our shareholders.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B><I>Transfer Agent and Registrar</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subject to compliance with applicable federal and state securities laws, our common stock may
be transferred without any restrictions or limitations. The transfer agent and registrar for
shares of our common stock is Continental Stock Transfer and Trust Company.
</DIV>


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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B><I>Preferred Stock</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We are authorized to issue 4&nbsp;million shares of preferred stock, $0.10 par value per share,
2,000 shares of which have been designated as Fixed Rate Cumulative Perpetual Preferred Stock,
Series&nbsp;A, or Series&nbsp;A Preferred Stock, all of which are issued and outstanding as of the date of
this prospectus. We do not have other preferred stock outstanding.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our board of directors may fix the voting powers, designations, preferences, rights,
qualifications, limitations and restrictions of any other series of preferred stock.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Series&nbsp;A Preferred Stock</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Series&nbsp;A Preferred Stock constitutes a series of our perpetual, cumulative, preferred
stock, consisting of 2,000 shares, par value $0.10 per share, having a liquidation preference
amount of $25,000 per share. The Series&nbsp;A Preferred Stock has no maturity date. We issued the
shares of Series&nbsp;A Preferred Stock and the Warrant to Treasury on December&nbsp;19, 2008 in connection
with the TARP Capital Purchase Program for an aggregate purchase price of $50.0&nbsp;million. Pursuant
to the Purchase Agreement between us and Treasury, we have agreed, if requested by Treasury, to
enter into a depositary arrangement pursuant to which the shares of Series&nbsp;A Preferred Stock may be
deposited and depositary shares, each representing a fraction of a share of Series&nbsp;A Preferred
Stock as specified by Treasury, may be issued. The Series&nbsp;A Preferred Stock and Warrant qualify as
Tier 1 capital for regulatory purposes.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B><I>Dividends</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Rate</B>. Dividends on the Series&nbsp;A Preferred Stock are payable quarterly in arrears, when, as
and if authorized and declared by our board of directors out of legally available funds, on a
cumulative basis on the $25,000 per share liquidation preference amount plus the amount of accrued
and unpaid dividends for any prior dividend periods, at a rate of (i)&nbsp;5% per annum, from the
original issuance date to but excluding the first day of the first dividend period commencing after
the fifth anniversary of the original issuance date (i.e., 5% per annum from December&nbsp;19, 2008 to
but excluding February&nbsp;15, 2014), and (ii)&nbsp;9% per annum, from and after the first day of the first
dividend period commencing after the fifth anniversary of the original issuance date (i.e., 9% per
annum on and after February&nbsp;15, 2014). Dividends are payable quarterly in arrears on February&nbsp;15,
May&nbsp;15, August&nbsp;15 and November&nbsp;15 of each year, commencing on February&nbsp;15, 2009. Each dividend
will be payable to holders of record as they appear on our stock register on the applicable record
date, which will be the 15th calendar day immediately preceding the related dividend payment date
(whether or not a business day), or such other record date determined by our board of directors
that is not more than 60 nor less than ten days prior to the related dividend payment date. Each
period from and including a dividend payment date (or the date of the issuance of the Series&nbsp;A
Preferred Stock) to but excluding the following dividend payment date is referred to as a &#147;dividend
period.&#148; Dividends payable for each dividend period are computed on the basis of a 360-day year
consisting of twelve 30-day months. If a scheduled dividend payment date falls on a day that is
not a business day, the dividend will be paid on the next business day as if it were paid on the
scheduled dividend payment date, and no interest or other additional amount will accrue on the
dividend. The term &#147;business day&#148; means any day except Saturday, Sunday and any day on which
banking institutions in the State of New York generally are authorized or required by law or other
governmental actions to close.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Dividends on the Series&nbsp;A Preferred Stock will be cumulative</B>. If for any reason our board of
directors does not declare a dividend on the Series&nbsp;A Preferred Stock for a particular dividend
period, or if the board of directors declares less than a full dividend, we will remain obligated
to pay the unpaid portion of the dividend for that period and the unpaid dividend will compound on
each subsequent dividend date (meaning that dividends for future dividend periods will accrue on
any unpaid dividend amounts for prior dividend periods).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We are not obligated to pay holders of the Series&nbsp;A Preferred Stock any dividend in excess of
the dividends on the Series&nbsp;A Preferred Stock that are payable as described above. There is no
sinking fund with respect to dividends on the Series&nbsp;A Preferred Stock.
</DIV>


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<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Priority of Dividends</B>. So long as the Series&nbsp;A Preferred Stock remains outstanding, we may
not declare or pay a dividend or other distribution on our common stock or any other shares of
Junior Stock (other than dividends payable solely in common stock) or Parity Stock (other than
dividends paid on a pro rata basis with the Series&nbsp;A Preferred Stock), and we generally may not
directly or indirectly purchase, redeem or otherwise acquire any shares of common stock, Junior
Stock or Parity Stock unless all accrued and unpaid dividends on the Series&nbsp;A Preferred Stock for
all past dividend periods are paid in full.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Junior Stock&#148; means our common stock and any other class or series of our stock the terms of
which expressly provide that it ranks junior to the Series&nbsp;A Preferred Stock as to dividend rights
and/or as to rights on liquidation, dissolution or winding up of Seacoast. We currently have no
outstanding class or series of preferred stock constituting Junior Stock.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Parity Stock&#148; means any class or series of our stock, other than the Series&nbsp;A Preferred
Stock, the terms of which do not expressly provide that such class or series will rank senior or
junior to the Series&nbsp;A Preferred Stock as to dividend rights and/or as to rights on liquidation,
dissolution or winding up of Seacoast, in each case without regard to whether dividends accrue
cumulatively or non-cumulatively. We currently have no outstanding class or series of stock
constituting Parity Stock.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B><I>Liquidation Rights</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In the event of any voluntary or involuntary liquidation, dissolution or winding up of the
affairs of Seacoast, holders of the Series&nbsp;A Preferred Stock will be entitled to receive for each
share of Series&nbsp;A Preferred Stock, out of the assets of Seacoast or proceeds available for
distribution to our shareholders, subject to any rights of our creditors, before any distribution
of assets or proceeds is made to or set aside for the holders of our common stock and any other
class or series of our stock ranking junior to the Series&nbsp;A Preferred Stock, payment of an amount
equal to the sum of (i)&nbsp;the $25,000 liquidation preference amount per share and (ii)&nbsp;the amount of
any accrued and unpaid dividends on the Series&nbsp;A Preferred Stock (including dividends accrued on
any unpaid dividends). To the extent the assets or proceeds available for distribution to
shareholders are not sufficient to fully pay the liquidation payments owing to the holders of the
Series&nbsp;A Preferred Stock and the holders of any other class or series of our stock ranking equally
with the Series&nbsp;A Preferred Stock, the holders of the Series&nbsp;A Preferred Stock and such other stock
will share ratably in the distribution.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For purposes of the liquidation rights of the Series&nbsp;A Preferred Stock, neither a merger or
consolidation of Seacoast with another entity nor a sale, lease or exchange of all or substantially
all of Seacoast&#146;s assets will constitute a liquidation, dissolution or winding up of the affairs of
Seacoast.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B><I>Redemptions and Repurchases</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Series&nbsp;A Preferred Stock is redeemable at our option, subject to prior approval by the
Board of Governors of the Federal Reserve System or its delegee (the &#147;Federal Reserve&#148;) and/or
Treasury in whole or in part at a redemption price equal to 100% of the liquidation preference
amount of $25,000 per share plus any accrued and unpaid dividends to but excluding the date of
redemption (including dividends accrued on any unpaid dividends), provided that any declared but
unpaid dividend payable on a redemption date that occurs subsequent to the record date for the
dividend will be payable to the holder of record of the redeemed shares on the dividend record
date, and provided further that the Series&nbsp;A Preferred Stock may be redeemed prior to the first
dividend payment date falling after the third anniversary of the original issuance date (i.e.,
prior to February&nbsp;15, 2012) only if (i)&nbsp;we have raised aggregate gross proceeds in one or more
Qualified Equity Offerings of at least the Minimum Amount and (ii)&nbsp;the aggregate redemption price
of the Series&nbsp;A Preferred Stock does not exceed the aggregate net proceeds from such Qualified
Equity Offerings by us and any successor. The &#147;Minimum Amount&#148; means $12,500,000 plus, in the
event we are succeeded in a business combination by another entity which also participated in the
TARP Capital Purchase Program, 25% of the aggregate liquidation preference amount of the preferred
stock issued by that entity to Treasury. A &#147;Qualified Equity Offering&#148; is defined as the sale for
cash by Seacoast (or its successor) of preferred stock or common stock that qualifies as Tier 1
capital under applicable regulatory capital guidelines.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To exercise the redemption right described above, we must give notice of the redemption to the
holders of record of the Series&nbsp;A Preferred Stock by first class mail, not less than 30&nbsp;days and
not more than 60&nbsp;days before the
</DIV>


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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">date of redemption. Each notice of redemption given to a holder of Series&nbsp;A Preferred Stock
must state: (i)&nbsp;the redemption date; (ii)&nbsp;the number of shares of Series&nbsp;A Preferred Stock to be
redeemed and, if less than all the shares held by such holder are to be redeemed, the number of
such shares to be redeemed from such holder; (iii)&nbsp;the redemption price; and (iv)&nbsp;the place or
places where certificates for such shares are to be surrendered for payment of the redemption
price. In the case of a partial redemption of the Series&nbsp;A Preferred Stock, the shares to be
redeemed will be selected either pro rata or in such other manner as our board of directors
determines to be fair and equitable.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Purchase Agreement between us and Treasury provides that so long as Treasury continues to
own any shares of Series&nbsp;A Preferred Stock, we may not repurchase any shares of Series&nbsp;A Preferred
Stock from any other holder of such shares unless we offer to repurchase a ratable portion of the
shares of Series&nbsp;A Preferred Stock then held by Treasury on the same terms and conditions.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shares of Series&nbsp;A Preferred Stock that we redeem, repurchase or otherwise acquire will revert
to authorized but unissued shares of preferred stock, which may then be reissued by us as any
series of preferred stock other than the Series&nbsp;A Preferred Stock.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B><I>No Conversion Rights</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Holders of the Series&nbsp;A Preferred Stock have no right to exchange or convert their shares into
common stock or any other securities.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B><I>Voting Rights</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The holders of the Series&nbsp;A Preferred Stock do not have voting rights other than those
described below, except to the extent specifically required by Florida law.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Whenever dividends have not been paid on the Series&nbsp;A Preferred Stock for six or more
quarterly dividend periods, whether or not consecutive, the authorized number of directors of
Seacoast will automatically increase by two and the holders of the Series&nbsp;A Preferred Stock will
have the right, with the holders of shares of any other classes or series of Voting Parity Stock
outstanding at the time, voting together as a class, to elect two directors (the &#147;Preferred
Directors&#148;) to fill such newly created directorships at our next annual meeting of shareholders (or
at a special meeting called for that purpose prior to the next annual meeting) and at each
subsequent annual meeting of shareholders until all accrued and unpaid dividends for all past
dividend periods on all outstanding shares of Series&nbsp;A Preferred Stock have been paid in full at
which time this right will terminate with respect to the Series&nbsp;A Preferred Stock, subject to
revesting in the event of each and every subsequent default by us as described above.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No person may be elected as a Preferred Director who would cause us to violate any corporate
governance requirements of any securities exchange or other trading facility on which our
securities may then be listed or traded that listed or traded companies must have a majority of
independent directors.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Upon any termination of the right of the holders of the Series&nbsp;A Preferred Stock and Voting
Parity Stock as a class to vote for directors as described above, the Preferred Directors will
cease to be qualified as directors, the terms of office of all Preferred Directors then in office
will terminate immediately and the authorized number of directors will be reduced by the number of
Preferred Directors which had been elected by the holders of the Series&nbsp;A Preferred Stock and the
Voting Parity Stock. Any Preferred Director may be removed at any time, with or without cause, and
any vacancy created by such a removal may be filled, only by the affirmative vote of the holders a
majority of the outstanding shares of Series&nbsp;A Preferred Stock voting separately as a class
together with the holders of shares of Voting Parity Stock, to the extent the voting rights of such
holders described above are then exercisable. If the office of any Preferred Director becomes
vacant for any reason other than removal from office, the remaining Preferred Director may choose a
successor who will hold office for the unexpired term of the office in which the vacancy occurred.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The term &#147;Voting Parity Stock&#148; means with regard to any matter as to which the holders of the
Series&nbsp;A Preferred Stock are entitled to vote, any series of Parity Stock (as defined under
&#147;&#151;Dividends-Priority of
</DIV>


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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Dividends&#148;) upon which voting rights similar to those of the Series&nbsp;A Preferred Stock have
been conferred and are exercisable with respect to such matter. We currently have no outstanding
shares of Voting Parity Stock.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If holders of the Series&nbsp;A Preferred Stock obtain the right to elect two directors and if the
Federal Reserve deems the Series&nbsp;A Preferred Stock a class of &#147;voting securities,&#148; (a)&nbsp;any bank
holding company that is a holder may be required to obtain the approval of the Federal Reserve to
acquire more than 5% of the Series&nbsp;A Preferred Stock and (b)&nbsp;any person may be required to obtain
the approval of the Federal Reserve to acquire or retain 10% or more of the then outstanding shares
of Series&nbsp;A Preferred Stock.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition to any other vote or consent required by Florida law or by our Articles of
Incorporation, the vote or consent of the holders of at least 66<sup>2</sup>/<SUP style="font-size: 85%; vertical-align: text-bottom">3</sup>% of the outstanding shares of
Series&nbsp;A Preferred Stock, voting as a separate class, is required in order to do the following:
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>amend our Articles of Incorporation to authorize or create or increase the
authorized amount of, or any issuance of, any shares of, or any securities convertible
into or exchangeable or exercisable for shares of, any class or series of stock ranking
senior to the Series&nbsp;A Preferred Stock with respect to the payment of dividends and/or
the distribution of assets on any liquidation, dissolution or winding up of Seacoast;
or</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>amend our Articles of Incorporation in a way that adversely affects the rights,
preferences, privileges or voting powers of the Series&nbsp;A Preferred Stock; or</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>consummate a binding share exchange or reclassification involving the Series&nbsp;A
Preferred Stock or a merger or consolidation of Seacoast with another entity, unless
(i)&nbsp;the shares of Series&nbsp;A Preferred Stock remain outstanding or, in the case of a
merger or consolidation in which Seacoast is not the surviving or resulting entity, are
converted into or exchanged for preference securities of the surviving or resulting
entity or its ultimate parent, and (ii)&nbsp;the shares of Series&nbsp;A Preferred Stock
remaining outstanding or such preference securities, have such rights, preferences,
privileges, voting powers, limitations and restrictions, taken as a whole, as are not
materially less favorable than the rights, preferences, privileges, voting powers,
limitations and restrictions of the Series&nbsp;A Preferred Stock prior to consummation of
the transaction, taken as a whole;</TD>
</TR>

</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>provided, however, </I>that (1)&nbsp;any increase in the amount of our authorized but unissued shares of
preferred stock, and (2)&nbsp;the creation and issuance, or an increase in the authorized or issued
amount, of any other series of preferred stock, or any securities convertible into or exchangeable
or exercisable for any other series of preferred stock, ranking equally with and/or junior to the
Series&nbsp;A Preferred Stock with respect to the payment of dividends, whether such dividends are
cumulative or non-cumulative and the distribution of assets upon our liquidation, dissolution or
winding up, will not be deemed to adversely affect the rights, preferences, privileges or voting
powers of the Series&nbsp;A Preferred Stock and will not require the vote or consent of the holders of
the Series&nbsp;A Preferred Stock.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To the extent holders of the Series&nbsp;A Preferred Stock are entitled to vote, holders of shares
of the Series&nbsp;A Preferred Stock will be entitled to one vote for each share then held.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The voting provisions described above will not apply if, at or prior to the time when the vote
or consent of the holders of the Series&nbsp;A Preferred Stock would otherwise be required, all
outstanding shares of the Series&nbsp;A Preferred Stock have been redeemed by us or called for
redemption upon proper notice and sufficient funds have been set aside by us for the benefit of the
holders of Series&nbsp;A Preferred Stock to effect the redemption.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Treasury Warrant</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We issued a Warrant to the Treasury on December&nbsp;19, 2008 concurrent with our sale to Treasury
of 2,000 shares of Series&nbsp;A Preferred Stock pursuant to the TARP Capital Purchase Program.
</DIV>


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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B><I>General</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Warrant gives the holder the right to initially purchase up to 1,179,245 shares of our
common stock at an exercise price of $6.36 per share. Subject to the limitations on exercise to
which Treasury is subject described under &#147;&#151;Transferability,&#148; the Warrant is immediately
exercisable and expires on December&nbsp;19, 2018. The exercise price may be paid (i)&nbsp;by having us
withhold from the shares of common stock that would otherwise be issued to the warrant holder upon
exercise, a number of shares of common stock having a market value equal to the aggregate exercise
price or (ii)&nbsp;if both we and the warrant holder consent, in cash.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B><I>Possible Reduction in Number of Shares</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If we (or any successor to us by a business combination) complete one or more Qualified Equity
Offerings (as defined under &#147;Description of Series&nbsp;A Preferred Stock&#151;Redemption and Repurchases&#148;)
prior to December&nbsp;31, 2009 resulting in aggregate gross proceeds of at least $50.0&nbsp;million, the
number of shares of common stock underlying the Warrant then held by Treasury will be reduced by
50%. The number of shares subject to the
Warrant are subject to further adjustment as described below under &#147;&#151;Other Adjustments.&#148;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B><I>Transferability</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Warrant is not subject to any restrictions on transfer; however, Treasury may not transfer
or exercise the Warrant with respect to more than one-half of the shares underlying the Warrant
until the earlier of (i)&nbsp;the date on which we (or any successor to us by a business combination)
have received aggregate gross proceeds of at least $50.0&nbsp;million from one or more Qualified Equity
Offerings (including those by any successor to us by a business combination) and (ii)&nbsp;December&nbsp;31,
2009.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B><I>Voting of Warrant Shares</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Treasury has agreed that it will not vote any of the shares of common stock that it acquires
upon exercise of the Warrant. This restriction does not apply to any other person who acquires any
portion of the Warrant, or the shares of common stock underlying the Warrant, from Treasury.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B><I>Other Adjustments</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The exercise price of the Warrant and the number of shares underlying the Warrant
automatically adjust upon the following events:
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>any stock split, stock dividend, subdivision, reclassification or combination of our
common stock;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>until the earlier of (i)&nbsp;the date on which Treasury no longer holds any portion of
the Warrant and (ii)&nbsp;December&nbsp;19, 2011, issuance of our common stock (or securities
convertible into our common stock) for consideration (or having a conversion price per
share) less than 90% of then current market value, except for issuances in connection
with benefit plans, business acquisitions and public or other broadly marketed
offerings;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>a pro rata repurchase by us of our common stock; or</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>a determination by our board of directors to make an adjustment to the anti-dilution
provisions as are reasonably necessary, in the good faith opinion of the board, to
protect the purchase rights of the warrant holders.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition, if we declare any dividends or distributions on our common stock other than our
historical, ordinary cash dividends, dividends paid in our common stock and other dividends or
distributions covered by the first bullet point above, the exercise price of the Warrant will be
adjusted to reflect such distribution.
</DIV>


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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In the event of any merger, consolidation, or other business combination to which we are a
party, the Warrant holder&#146;s right to receive shares of our common stock upon exercise of the
Warrant will be converted into the right to exercise the Warrant to acquire the number of shares of
stock or other securities or property (including cash) which the common stock issuable upon
exercise of the Warrant immediately prior to such business combination would have been entitled to
receive upon consummation of the business combination. For purposes of the provision described in
the preceding sentence, if the holders of our common stock have the right to elect the amount or
type of consideration to be received by them in the business combination, then the consideration
that the Warrant holder will be entitled to receive upon exercise will be the amount and type of
consideration received by a majority of the holders of the common stock who affirmatively make an
election.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B><I>No Rights as Shareholders</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Warrant does not entitle its holder to any of the rights of a shareholder of Seacoast.
</DIV>


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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left">
<A name="111"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ANTI-TAKEOVER EFFECTS OF CERTAIN ARTICLES OF INCORPORATION PROVISIONS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our Articles of Incorporation contain certain provisions that make it more difficult to
acquire control of us by means of a tender offer, open market purchase, a proxy fight or otherwise.
These provisions are designed to encourage persons seeking to acquire control of us to negotiate
with our directors. We believe that, as a general rule, the interests of our shareholders would be
best served if any change in control results from negotiations with our directors.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our Articles of Incorporation provide for a classified board to which approximately one-third
of our board of directors is elected each year at our annual meeting of shareholders. Accordingly,
our directors serve three-year terms rather than one-year terms. The classification of our board
of directors has the effect of making it more difficult for shareholders to change the composition
of our board of directors. At least two annual meetings of shareholders, instead of one, will
generally be required to effect a change in a majority of our board of directors. Such a delay may
help ensure that our directors, if confronted by a holder attempting to force a proxy contest, a
tender or exchange offer, or an extraordinary corporate transaction, would have sufficient time to
review the proposal as well as any available alternatives to the proposal and to act in what they
believe to be the best interests of our shareholders. The classification provisions apply to every
election of directors, however, regardless of whether a change in the composition of our board of
directors would be beneficial to us and our shareholders and whether or not a majority of our
shareholders believe that such a change would be desirable.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The classification of our board of directors could also have the effect of discouraging a
third party from initiating a proxy contest, making a tender offer or otherwise attempting to
obtain control of us, even though such an attempt might be beneficial to us and our shareholders.
The classification of our board of directors could thus increase the likelihood that incumbent
directors will retain their positions. In addition, because the classification of our board of
directors may discourage accumulations of large blocks of our stock by purchasers whose objective
is to take control of us and remove a majority of our board of directors, the classification of our
board of directors could tend to reduce the likelihood of fluctuations in the market price of our
common stock that might result from accumulations of large blocks of our common stock for such a
purpose. Accordingly, our shareholders could be deprived of certain opportunities to sell their
shares at a higher market price than might otherwise be the case.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our Articles of Incorporation require the affirmative vote of the holders of not less than
two-thirds of all the shares of our stock outstanding and entitled to vote generally in the
election of directors in addition to the votes required by law or elsewhere in the Articles of
Incorporation, the bylaws or otherwise, to approve: (a)&nbsp;any sale, lease, transfer, purchase and
assumption of all or substantially all of our consolidated assets and/or liabilities, (b)&nbsp;any
merger, consolidation, share exchange or similar transaction of the Company, or any merger of any
significant subsidiary, into or with another person, or (c)&nbsp;any reclassification of securities,
recapitalization or similar transaction that has the effect of increasing other than pro rata with
the other shareholders, the proportionate amount of shares that is beneficially owned by an
Affiliate (as defined in our Articles of Incorporation). Any business combination described above
may instead be approved by the affirmative vote of a majority of all the votes entitled to be cast
on the plan of merger if such business combination is approved and recommended to the shareholders
by (x)&nbsp;the affirmative vote of two-thirds of our board of directors, and (y)&nbsp;a majority of the
Continuing Directors (as defined in our Articles of Incorporation).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our Articles of Incorporation also contain additional provisions that may make takeover
attempts and other acquisitions of interests in us more difficult where the takeover attempt or
other acquisition has not been approved by our board of directors. These provisions include:
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>A requirement that any change to our Articles of Incorporation relating to the
structure of our board of directors, certain anti-takeover provisions and shareholder
proposals must be approved by the affirmative vote of holders of
two-thirds of the shares outstanding and entitled to vote;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>A requirement that any change to our bylaws, including any change relating to the
number of directors, must be approved by the affirmative vote of either (a) (i)
two-thirds of our board of directors, and (ii)&nbsp;a majority of the Continuing Directors
(as defined in our Articles of Incorporation) or (b)&nbsp;two-thirds of the shares entitled
to vote generally in the election of directors;</TD>
</TR>

</TABLE>
</DIV>
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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>A requirement that shareholders may call a meeting of shareholders on a proposed
issue or issues only upon the receipt by us from the holders of 50% of all shares
entitled to vote on the proposed issue or issues of signed and dated written demands
for the meeting describing the purpose for which it is to be held; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>A requirement that a shareholder wishing to submit proposals for a shareholder vote
or nominate directors for election comply with certain procedures, including advanced
notice requirements.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our Articles of Incorporation provide that, subject to the rights of any holders of our
preferred stock to act by written consent instead of a meeting, shareholder action may be taken
only at an annual meeting or special meeting of the shareholders and may not be taken by written
consent. The Articles of Incorporation also include provisions that make it difficult to replace
directors. Specifically, directors may be removed only for cause and only upon the affirmative
vote at a meeting duly called and held for that purpose upon not less than 30&nbsp;days&#146; prior written
notice of two-thirds of the shares entitled to vote generally in the election of directors. In
addition, any vacancies on the board of directors for any reason, and any newly created
directorships resulting from any increase in the number of directors, may be filled only by the
board of directors (except if no directors remain on the board, in which case the shareholders may
act to fill the vacant board).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We believe that the power of our board of directors to issue additional authorized but
unissued shares of our common stock or preferred stock without further action by our shareholders,
unless required by applicable law or the rules of any stock exchange or automated quotation system
on which our securities may be listed or traded, will provide us with increased flexibility in
structuring possible future financings and acquisitions and in meeting other needs that might
arise. Our board of directors could authorize and issue a class or series of stock that could,
depending upon the terms of such class or series, delay, defer or prevent a transaction or a change
in control of us that might involve a premium price for holders of our common stock or that our
shareholders otherwise consider to be in their best interest.
</DIV>


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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left">
<A name="112"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>CERTAIN UNITED STATES FEDERAL INCOME TAX<BR>
CONSIDERATIONS APPLICABLE TO NON-U.S. HOLDERS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following is a summary of certain United States federal income tax considerations related
to the purchase, ownership and disposition of our common stock that are applicable to a &#147;non-U.S.
holder&#148; (defined below) of the common stock.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This summary:
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>does not purport to be a complete analysis of all of the potential tax
considerations that may be applicable to an investor as a result of the investor&#146;s
particular tax situation;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>is based on the Internal Revenue Code of 1986, as amended (the &#147;Code&#148;), United
States federal income tax regulations promulgated or proposed under the Code, which we
refer to as the &#147;Treasury Regulations,&#148; judicial authority and published rulings and
administrative pronouncements, each as of the date hereof and each of which are subject
to change at any time, possibly with retroactive effect;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>is applicable only to beneficial owners of common stock who hold their common stock
as a &#147;capital asset,&#148; within the meaning of section 1221 of the Code;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>does not address all aspects of United States federal income taxation that may be
relevant to holders in light of their particular circumstances or who are subject to
special treatment under United States federal income tax laws, including but not
limited to:</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>certain former citizens and long-term residents of the United States;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#147;controlled foreign corporations&#148; and &#147;passive foreign investment companies&#148;;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>partnerships, other pass-through entities and investors in these entities; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>investors that expect to receive dividends or realize gain in
connection with the investors&#146; conduct of a United States trade or business,
permanent establishment or fixed base.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>does not discuss any possible applicability of any United States state or local
taxes, non-United States taxes or any United States federal tax other than the income
tax, including, but not limited to, the federal gift tax and estate tax.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>This summary of certain United States federal income tax considerations constitutes neither
tax nor legal advice. Prospective investors are urged to consult their own tax advisors to
determine the specific tax consequences and risks to them of purchasing, holding and disposing of
our common stock, including the application to their particular situation of any United States
federal estate and gift, United States state and local, non-United States and other tax laws and of
any applicable income tax treaty.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Non-U.S. Holder Defined</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For purposes of this discussion, a non-U.S. holder is a beneficial holder of our common stock
that is neither a &#147;United States person&#148; nor a partnership or entity or arrangement treated as a
partnership for United States federal income tax purposes. A &#147;United States person&#148; is:
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>an individual citizen or resident of the United States;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>a corporation, or other entity treated as an association taxable as a corporation,
that is organized in or under the laws of the United States, any state thereof or the
District of Columbia;</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->31<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>an estate the income of which is subject to United States federal income taxation
regardless of its source; or</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>a trust if it (1)&nbsp;is subject to the primary supervision of a court within the United
States and one or more United States persons have the authority to control all
substantial decisions of the trust or (2)&nbsp;has a valid election in effect under
applicable the Treasury Regulations to be treated as a United States person.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If a partnership holds our common stock, then the United States federal income tax treatment
of a partner in that partnership generally will depend on the status of the partner and the
partnership&#146;s activities. Partners and partnerships should consult their own tax advisors with
regard to the United States federal income tax treatment of an investment in our common stock.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Distributions</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Distributions paid to a non-U.S. holder of our common stock will constitute a &#147;dividend&#148; for
United States federal income tax purposes to the extent paid out of our current or accumulated
earnings and profits, as determined for United States federal income tax purposes. Any
distributions that exceed both our current and accumulated earnings and profits would first
constitute a non-taxable return of capital, which would reduce the holder&#146;s basis in our common
stock, but not below zero, and thereafter would be treated as gain from the sale of our common
stock (see &#147;&#151;Sale or Taxable Disposition of Common Stock&#148; below).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subject to the following paragraphs, dividends on our common stock generally will be subject
to United States federal withholding tax at a 30% gross rate, subject to any exemption or lower
rate as may be specified by an applicable income tax treaty. We may withhold up to 30% of either
(i)&nbsp;the gross amount of the entire distribution, even if the amount of the distribution is greater
than the amount constituting a dividend, as described above, or (ii)&nbsp;the amount of the distribution
we project will be a dividend, based upon a reasonable estimate of both our current and our
accumulated earnings and profits for the taxable year in which the distribution is made. If tax is
withheld on the amount of a distribution in excess of the amount constituting a dividend, then you
may obtain a refund of such excess amounts by timely filing a claim for refund with the Internal
Revenue Service.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In order to claim the benefit of a reduced rate of or an exemption from withholding tax under
an applicable income tax treaty, a non-U.S. holder will be required (a)&nbsp;to satisfy certain
certification requirements, which may be made by providing us or our agent with a properly executed
and completed Internal Revenue Service Form W-8BEN (or other applicable form) certifying, under
penalty of perjury, that the holder qualifies for treaty benefits and is not a United States person
or (b)&nbsp;if our common stock is held through certain non-United States intermediaries, to satisfy the
relevant certification requirements of Treasury Regulations. Special certification and other
requirements apply to certain non-U.S. holders that are pass-through entities.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dividends that are effectively connected with the conduct of a trade or business by the
non-U.S. holder within the United States (and, if required by an applicable income tax treaty, are
attributable to a U.S. permanent establishment or, in the case of an individual non-U.S. holder, a
fixed base) are not subject to the withholding tax, provided that the non-U.S. holder so certifies,
under penalty of perjury, on a properly executed and delivered Internal Revenue Service Form W-8ECI
(or other applicable form). Instead, such dividends would be subject to United States federal
income tax on a net income basis in the same manner as if the non-U.S. holder were a United States
person.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Corporate holders who receive effectively connected dividends may also be subject to an
additional &#147;branch profits tax&#148; at a gross rate of 30% on their earnings and profits for the
taxable year that are effectively connected with the holder&#146;s conduct of a trade or business within
the United States, subject to any exemption or reduction provided by an applicable income tax
treaty.
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->32<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Sale or Taxable Disposition of Common Stock</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any gain realized on the sale, exchange or other taxable disposition of our common stock
generally will not be subject to United States federal income tax unless:
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the gain is effectively connected with a trade or business of the non-U.S. holder in
the United States (and, if required by an applicable income tax treaty, is attributable
to a U.S. permanent establishment of the non-U.S. holder or, in the case of an
individual, a fixed base);</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the non-U.S. holder is an individual who is present in the United States for 183
days or more in the taxable year of that disposition, and certain other conditions are
met; or</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>we are or have been a &#147;United States real property holding corporation&#148; for United
States federal income tax purposes at any time during the shorter of the five-year
period preceding such disposition and the non-U.S. holder&#146;s holding period in the
common stock.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A non-U.S. holder described in the first bullet point above generally will be subject to
United States federal income tax on the net gain derived from the sale or disposition under regular
graduated United States federal income tax rates, as if the holder were a United States person. If
such non-U.S. holder is a corporation, then it may also, under certain circumstances, be subject to
an additional &#147;branch profits&#148; tax at a gross rate of 30% on its earnings and profits for the
taxable year that are effectively connected with its conduct of its United States trade or
business, subject to exemption or reduction provided by any applicable income tax treaty.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;An individual non-U.S. holder described in the second bullet point immediately above will be
subject to a tax at a 30% gross rate, subject to any reduction or reduced rate under an applicable
income tax treaty, on the net gain derived from the sale, which may be offset by U.S. source
capital losses, even though the individual is not considered a resident of the United States.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We believe we are not, have not been and will not become a &#147;United States real property
holding corporation&#148; for United States federal income tax purposes. In the event that we are or
become a United States real property holding corporation at any time during the applicable period
described in the third bullet point above, any gain recognized on a sale or other taxable
disposition of our common stock may be subject to United States federal income tax, including any
applicable withholding tax, if either (1)&nbsp;the non-U.S. holder beneficially owns, or has owned, more
than 5% of the total fair value of our common stock at any time during the applicable period, or
(2)&nbsp;our common stock ceases to be traded on an &#147;established securities market&#148; within the meaning
of the Code. Non-U.S. holders who own or may own more than 5% of our common stock are encouraged
to consult their tax advisors with respect to the United States tax consequences of a disposition
of our common stock.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Information Reporting and Backup Withholding</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We must report annually to the Internal Revenue Service and to each non-U.S. holder the amount
of dividends paid to such holder and the tax withheld with respect to such dividends, regardless of
whether withholding was required. Copies of the information returns reporting such dividends and
withholding may also be made available to the tax authorities in the country in which the non-U.S.
holder resides under the provisions of an applicable income tax treaty.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A non-U.S. holder will be subject to backup withholding, currently at a 28% rate, for
dividends paid to such holder unless such holder certifies under penalty of perjury as to
non-United States person status (and neither we nor the paying agent has actual knowledge or reason
to know that such holder is a United States person), or such holder otherwise establishes an
exemption.
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->33<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Information reporting and, depending on the circumstances, backup withholding will apply to
the proceeds of a sale of our common stock within the United States or conducted through certain
U.S.-related financial intermediaries, unless the beneficial owner certifies under penalty of
perjury as to non-United States person status (and neither the broker nor intermediary has actual
knowledge or reason to know that the beneficial owner is a United States person), or such owner
otherwise establishes an exemption.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any amounts withheld under the backup withholding rules may be allowed as a refund or a credit
against a non-U.S. holder&#146;s United States federal income tax liability provided the required
information is timely furnished to the Internal Revenue Service.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Recent Legislative Developments</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Treasury has recently proposed legislation that would limit the ability of non-U.S.
investors to claim relief from U.S. withholding tax in respect of dividends paid on common stock,
if such investors hold common stock through a non-U.S. intermediary that is not a &#147;qualified
intermediary.&#148; The Administration&#146;s proposals also would limit the ability of certain non-U.S.
entities to claim relief from U.S. withholding tax in respect of dividends paid to such non-U.S.
entities unless those entities have provided documentation of their beneficial owners to the
withholding agent. A third proposal would impose a 20% withholding tax on the gross proceeds of
the sale of common stock effected through a non-U.S. intermediary that is not a qualified
intermediary and that is not located in a jurisdiction with which the United States has a
comprehensive income tax treaty having a satisfactory exchange of information provision. A
non-U.S. investor generally would be permitted to claim a refund to the extent any tax withheld
exceeded the investor&#146;s actual tax liability. It is unclear whether, or in what form, these
proposals may be enacted. Non-U.S. holders are encouraged to consult with their tax advisers
regarding the possible implications of the Administration&#146;s proposals on their investment in
respect of the common stock.
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->34<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left">
<A name="113"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>UNDERWRITING</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We are offering shares of our common stock described in this prospectus in an underwritten
offering in which Sandler O&#146;Neill &#038; Partners, L.P. is acting as representative of the underwriters
named below. We have entered into an underwriting agreement with Sandler O&#146;Neill &#038; Partners, L.P.,
acting as representative of the underwriters named below, with respect to the common stock being
offered. Subject to the terms and conditions stated in the underwriting agreement, each
underwriter has severally agreed to purchase the respective number of shares of common stock set
forth opposite its name below:
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="88%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left"><B>Name</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Number of Shares</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Sandler O&#146;Neill &#038; Partners, L.P.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Fox-Pitt Kelton Cochran Caronia Waller (USA)&nbsp;LLC</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-BOTTOM: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><B>Total</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-BOTTOM: 3px DOUBLE #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The underwriting agreement provides that the obligation of the underwriters to purchase our
common stock depends on the satisfaction of the conditions contained in the underwriting agreement,
including:
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the representations and warranties made by us are true and agreements have been
performed;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>there is no material adverse change in our business; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>we deliver customary closing documents.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subject to these conditions, the underwriters are committed to purchase and pay for all shares
of our common stock offered by this prospectus, if any such shares are taken. However, the
underwriters are not obligated to take or pay for shares of our common stock covered by the
underwriters&#146; over-allotment option described below, unless and until such option is exercised.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our common stock is listed on the Nasdaq Global Select Market under the symbol &#147;SBCF.&#148;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Over-Allotment Option</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We have granted the underwriters an option, exercisable no later than 30&nbsp;days after the date
of the underwriting agreement, to purchase up to an aggregate of &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;additional shares of
common stock at the public offering price, less the underwriting discounts and commissions set
forth under &#147;&#151; Commissions and Expenses&#148; and on the cover page of this prospectus. We will be obligated to sell these shares of common
stock to the underwriters to the extent the over-allotment option is exercised. The underwriters
may exercise this option only to cover over-allotments, if any, made in connection with the sale of
our common stock offered by this prospectus.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Commissions and Expenses</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The underwriters propose to offer our common stock directly to the public at the public
offering price set forth on the cover page of this prospectus and to dealers at the public offering
price less a concession not in excess of $&nbsp;&nbsp;per share. The underwriters may allow, and the dealers
may reallow, a concession not in excess of $&nbsp;&nbsp;per share on sales to brokers and dealers. After the
public offering of our common stock, the underwriters may change the offering price, concessions
and other selling terms.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table shows per share and total underwriting discounts and commissions that we
will pay to the underwriters and the proceeds we will receive before expenses. These amounts are
shown assuming both no exercise and full exercise of the underwriters&#146; over-allotment option:
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->35<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Without</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>With</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Per Share</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Option</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Option</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Public offering price</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Underwriting discounts and commissions payable by us</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Proceeds to us, before expenses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition to the underwriting discount, we will reimburse the underwriters for their
reasonable out-of-pocket expenses incurred in connection with their engagement as underwriters,
regardless of whether this offering is consummated, including, without limitation, legal fees and
expenses, marketing, syndication and travel expenses of up to $200,000. We estimate that our total
expenses for this offering, exclusive of underwriting discounts and commissions, will be
approximately $ , and are payable by us.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Indemnity</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We have agreed to indemnify the underwriters, and persons who control the underwriters,
against certain liabilities, including liabilities under the Securities Act of 1933, and to
contribute to payments that the underwriters may be required to make in respect of these
liabilities.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Lock-Up Agreement</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We, and each of our directors and executive officers, have agreed for a period of 90&nbsp;days
after the date of this prospectus, subject to certain exceptions, to not sell, offer, agree to
sell, contract to sell, hypothecate, pledge, grant any option to purchase, make any short sale or
otherwise dispose of or hedge, directly or indirectly, any shares of common stock or securities
convertible into, exchangeable or exercisable for any shares of common stock or warrants or other
rights to purchase shares of common stock or any other of our securities that are substantially
similar to our common stock without, in each case, the prior written consent of Sandler O&#146;Neill &#038;
Partners, L.P. These restrictions are expressly agreed to preclude us, and our executive officers
and directors, from engaging in any hedging or other transactions or arrangement that is designed
to, or which reasonably could be expected to, lead to or result in a sale, disposition or transfer,
in whole or in part, of any of the economic consequences of ownership of our common stock, whether
such transaction would be settled by delivery of common stock or other securities, in cash or
otherwise. The 90-day restricted period described above will be automatically extended if (1)
during the last 18&nbsp;days of the 90-day restricted period, we issue an earnings release or material
news or a material event relating to us occurs or (2)&nbsp;prior to the expiration of the 90-day
restricted period, we announce we will release earnings results or become aware that material news
or a material event will occur during the 16-day period beginning on the last day of the 90-day
restricted period, in which case the restricted period will continue to apply until the expiration
of the 18-day period beginning on the date on which the earnings release is issued or the material
news or material event related to us occurs.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Stabilization</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In connection with this offering, the underwriters may engage in stabilizing transactions,
over-allotment transactions, syndicate covering transactions and penalty bids:
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Stabilizing transactions permit bids to purchase common stock so long as the
stabilizing bids do not exceed a specified minimum, and are engaged in for the purpose
of preventing or retarding a decline in the market price of the common stock while the
offering is in progress.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Over-allotment transactions involves sales of common stock in excess of the number
of shares the underwriters are obligated to purchase. This creates a syndicate short
position which may be either a covered short position or a naked short position In a
covered short position, the number of shares of common stock over-allotted by the
underwriters is not greater than the number of shares that they may purchase in the
option to purchase additional shares. In a naked short position, the number of shares
involved is greater than the number of shares in the option to
purchase additional shares. The underwriters may close out any short position by exercising their option
to purchase additional shares and/or purchasing shares in the open market.</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->36<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Syndicate covering transactions involve purchases of shares of common stock in the
open market after the distribution has been completed in order to cover syndicate short
positions. In determining the source of shares to close out the short position, the
underwriters will consider, among other things, the price of shares available for
purchase in the open market as compared with the price at which they
may purchase shares through exercise of the option to purchase additional shares. If the
underwriters sell more shares than could be covered by exercise of the option to
purchase additional shares and, therefore, have a naked short position, the position
can be closed out only by buying shares in the open market. A naked short position is
more likely to be created if the underwriters are concerned that after pricing there
could be downward pressure on the price of the shares in the open market that could
adversely affect investors who purchase in the offering.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Penalty bids permit the underwriters to reclaim a selling concession from a
syndicate member when the shares of common stock originally sold by that syndicate
member are purchased in stabilizing or syndicate covering transactions to cover
syndicate short positions.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;These stabilizing transactions, syndicate covering transactions and penalty bids may have the
effect of raising or maintaining the market price of our common stock or preventing or retarding a
decline in the market price of our common stock. As a result, the price of our common stock in the
open market may be higher than it would otherwise be in the absence of these transactions. Neither
we nor the underwriters make any representation or prediction as to the effect that the
transactions described above may have on the price of our common stock. These transactions may be
effected on the Nasdaq Global Select Market, in the over-the-counter market or otherwise and if
commenced, may be discontinued by the underwriters at any time.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Passive Market Making</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In connection with this offering, the underwriters and selected dealers, if any, who are
qualified market makers on the Nasdaq Global Select Market, may engage in passive market making
transactions in our common stock on the Nasdaq Global Select Market in accordance with Rule&nbsp;103 of
Regulation&nbsp;M under the Securities Act of 1933. Rule&nbsp;103 permits passive market making activity by
the participants in our common stock offering. Passive market making may occur before the pricing
of our offering, or before the commencement of offers or sales of our common stock. Each passive
market maker must comply with applicable volume and price limitations and must be identified as a
passive market maker. In general, a passive market maker must display its bid at a price not in
excess of the highest independent bid for the security. If all independent bids are lowered below
the bid of the passive market maker, however, the bid must then be lowered when purchase limits are
exceeded. Net purchases by a passive market maker on each day are limited to a specified
percentage of the passive market maker&#146;s average daily trading volume in the common stock during a
specified period and must be discontinued when that limit is reached. The underwriters and other
dealers are not required to engage in passive market making and may end passive market making
activities at any time.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Our Relationship with the Underwriters</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Sandler
O&#146;Neill &#038; Partners, L.P. and Fox-Pitt Kelton Cochran Caronia Weller (USA) LLC and some of their affiliates have performed and continue to
perform investment banking and financial advisory services for us in the ordinary course of its
business, and may have received, and may continue to receive, compensation for such services.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our common stock is being offered by the underwriters, subject to prior sale, when, as and if
issued to and accepted by them, subject to approval of certain legal matters by counsel for the
underwriters and other conditions.
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->37<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left">
<A name="114"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>LEGAL MATTERS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The validity of the common stock will be passed upon for us by Crary, Buchanan, Bowdish,
Bovie, Beres, Elder &#038; Williamson, Chartered. We were represented by Jones Day and the underwriters
were represented by Hogan &#038; Hartson LLP.
</DIV>

<DIV align="left">
<A name="115"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>EXPERTS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The consolidated financial statements of Seacoast Banking Corporation of Florida as of
December&nbsp;31, 2008 and 2007, and for each of the years in the three-year period ended December&nbsp;31,
2008, and management&#146;s assessment of the effectiveness of internal control over financial reporting
as of December&nbsp;31, 2008 have been incorporated by reference herein in reliance upon the reports of
KPMG LLP, independent registered public accounting firm, incorporated by reference herein, and upon
the authority of said firm as experts in accounting and auditing. The audit report dated March&nbsp;9,
2009 with respect to the consolidated financial statements refers to the adoption of Statement of
Financial Accounting Standards (SFAS)&nbsp;No.&nbsp;157, <I>Fair Value Measurements</I>, and SFAS No.&nbsp;159, <I>The Fair
Value Option for Financial Assets and Financial Liabilities &#151; Including an Amendment of FASB
Statement No.&nbsp;115</I>, as of January&nbsp;1, 2007.
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->38<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="center" style="font-size: 14pt; margin-top: 18pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shares
</DIV>


<DIV align="Center" style="font-size: 18pt; margin-top: 6pt">&nbsp;</DIV>

<DIV align="Center" style="font-size: 14pt; margin-top: 6pt">Common Stock

</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><IMG src="g19521seacost.gif" ALT="(SEACOAST LOGO)">
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>PROSPECTUS</B><DIV align="center"><DIV style="font-size: 3pt; margin-top: 16pt; width: 26%; border-top: 1px solid #000000">&nbsp;</DIV></DIV>
</DIV>


<DIV style="font-family: Helvetica,Arial,sans-serif"><DIV align="Center" style="font-size: 18pt; margin-top: 6pt"><FONT style="font-variant: 'small-caps'">Sandler O&#146;Neill + Partners L.P.</FONT></DIV></DIV>





<DIV style="font-family: Helvetica,Arial,sans-serif"><DIV align="Center" style="font-size: 18pt; margin-top: 36pt"><FONT style="font-variant: 'small-caps'">Fox-Pitt Kelton Cochran Caronia Waller</FONT>
</DIV></DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 60pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>, 2009</b>

</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio --><!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>PART II<BR>
INFORMATION NOT REQUIRED IN PROSPECTUS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Item&nbsp;13. Other Expenses of Issuance and Distribution</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table sets forth the fees and expenses, other than underwriting discounts and
commissions, payable in connection with the registration of the common stock hereunder. All
amounts are estimates except the SEC registration fee, the FINRA filing fee and the Nasdaq Global
Select Market listing fee.
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="88%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Amount to be paid</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">SEC Registration Fee</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">55.80</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">FINRA Filing Fee</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">*</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Nasdaq Global Select Market Listing Fee</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">*</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Legal Fees and Expenses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">*</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Accounting Fees and Expenses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">*</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Printing and Engraving Expenses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">*</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Blue Sky Fees and Expenses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">*</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Transfer Agent and Registrar Fees</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">*</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Miscellaneous Expenses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">*</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Total</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">*</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">*</TD>
    <TD>&nbsp;</TD>
    <TD>To be completed by amendment.</TD>
</TR>

</TABLE>



<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Item&nbsp;14. Indemnification of Directors and Officers</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Florida Act permits, under certain circumstances, the indemnification of any person with
respect to any threatened, pending or completed action, suit or proceeding, whether civil,
criminal, administrative or investigative, to which such person was or is a party or is threatened
to be made a party, by reason of his or her being an officer, director, employee or agent of the
corporation, or is or was serving at the request of, such corporation as a director, officer,
employee or agent of another corporation, partnership, joint venture, trust or other enterprise,
against liability incurred in connection with such proceeding, including appeals thereof; provided,
however, that the officer, director, employee or agent acted in good faith and in a manner that he
or she reasonably believed to be in, or not opposed to, the best interests of the corporation and,
with respect to any criminal action or proceeding, had no reasonable cause to believe his or her
conduct was unlawful. The termination of any such third-party action by judgment, order,
settlement, or conviction or upon a plea of <I>nolo contendere </I>or its equivalent does not, of itself,
create a presumption that the person (i)&nbsp;did not act in good faith and in a manner which he or she
reasonably believed to be in, or not opposed to, the best interests of the corporation or (ii)&nbsp;with
respect to any criminal action or proceeding, had reasonable cause to believe that his or her
conduct was unlawful.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In the case of proceedings by or in the right of the corporation, the Florida Act permits for
indemnification of any person by reason of the fact that such person is or was a director, officer,
employee or agent of the corporation, or is or was serving at the request of, such corporation as a
director, officer, employee or agent of another corporation, partnership, joint venture, trust or
other enterprise, against liability incurred in connection with such proceeding, including appeals
thereof; <I>provided, however</I>, that the officer, director, employee or agent acted in good faith and
in a manner that he or she reasonably believed to be in, or not opposed to, the best interests of
the corporation, except that no indemnification is made where such person is adjudged liable,
unless a court of competent jurisdiction determines that, despite the adjudication of liability but
in view of all circumstances of the case, such person is fairly and reasonably entitled to
indemnity for such expenses which such court shall deem proper.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To the extent that such person is successful on the merits or otherwise in defending against
any such proceeding, the Florida Act provides that he or she shall be indemnified against expenses
actually and reasonably incurred by him or her in connection therewith.
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->II-1<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Also, under the Florida Act, expenses incurred by an officer or director in defending a civil
or criminal proceeding may be paid by the corporation in advance of the final disposition of such
proceeding upon receipt of an undertaking by or on behalf of such director or officer to repay such
amount if he or she is ultimately found not to be entitled to indemnification by the corporation
pursuant to this section. Expenses incurred by other employees and agents may be paid in advance
upon such terms or conditions that the board of directors deems appropriate.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our amended and restated bylaws contain indemnification provisions similar to the Florida Act,
and further provide that we may purchase and maintain insurance on behalf of our directors,
officers, employees and agents in their capacities as such, or serving at the request of us,
against any liabilities asserted against such persons whether or not we would have the power to
indemnify such persons against such liability under our amended and restated bylaws.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Insofar as indemnification for liabilities arising under the Securities Act may be permitted
to our directors and officers, or to persons controlling us, pursuant to our amended and restated
bylaws or the Florida Act, we have been informed that in the opinion of the Securities and Exchange
Commission such indemnification is against public policy as expressed in the Securities Act and is
therefore unenforceable.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition to the authority granted to us by the Florida Act to indemnify our directors,
certain other provisions of the Florida Act have the effect of further limiting the personal
liability of our directors. Pursuant to the Florida Act, a director of a Florida corporation
cannot be held personally liable for monetary damages to the corporation or any other person for
any act or failure to act regarding corporate management or policy except in the case of certain
qualifying breaches of the director&#146;s duties.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We have purchased certain liability insurance for our officers and directors.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Item&nbsp;15. Recent Sales of Unregistered Securities.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On December&nbsp;19, 2008, we entered into a purchase agreement with the United States Department
of the Treasury, pursuant to which we agreed to issue and sell (i)&nbsp;2,000 shares of our Fixed Rate
Cumulative Perpetual Preferred Stock, Series&nbsp;A, par value $0.10 per share and (ii)&nbsp;a warrant to
purchase 1,179,245 shares of our common stock, par value $0.10 per share, for an aggregate purchase
price of $50,000,000 in cash. These securities were sold in a transaction exempt from the
registration requirements of the Securities Act in reliance on Section (4)(2) of the Securities
Act. The purchaser in such transaction was an &#147;accredited investor&#148; within the meaning of Rule&nbsp;501
of Regulation&nbsp;D promulgated under the Securities Act.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Item&nbsp;16. Exhibits and Financial Statement Schedules</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;Exhibits
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="92%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center"><B>Exhibit</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Number</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Description</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">1.1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Form of Underwriting Agreement.*</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">3.1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"> Amended and Restated Articles of Incorporation </TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Incorporated herein by reference from the Company&#146;s Quarterly Report of Form&nbsp;10-Q,
dated May&nbsp;10, 2006.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">3.2
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"> Amended and Restated By-laws of the Corporation </TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Incorporated herein by reference from the Company&#146;s Form&nbsp;8-K, dated December&nbsp;18, 2007.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">3.3
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"> Articles of Amendment to the Amended and Restated Articles of Incorporation </TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Establishing and designating Fixed Rate Cumulative Perpetual Preferred Stock, Series
A incorporated herein by reference from the Company&#146;s Form&nbsp;8-K, dated December&nbsp;23,
2008.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">3.4
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"> Articles of Amendment to the Amended and Restated Articles of Incorporation </TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Increasing the authorized shares of Common Stock and modifying Article&nbsp;X of the amended and restated articles of incorporation
(filed herewith).</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->II-2<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="92%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center"><B>Exhibit</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Number</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Description</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">4.1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"> Specimen Common Stock Certificate </TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Incorporated herein by reference from the Company&#146;s Form&nbsp;10-K, dated March&nbsp;28, 2003.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">4.2
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"> Junior Subordinated Indenture </TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Dated as of March&nbsp;31, 2005, between the Company and Wilmington Trust Company, as
Trustee (including the form of the Floating Rate Junior Subordinated Note, which
appears in Section&nbsp;2.1 thereof), incorporated herein by reference from the Company&#146;s
Form&nbsp;8-K, dated March&nbsp;31, 2005.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">4.3
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"> Guarantee Agreement </TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Dated as of March&nbsp;31, 2005 between the Company, as Guarantor, and Wilmington Trust
Company, as Guarantee Trustee, incorporated herein by reference from the Company&#146;s
Form&nbsp;8-K, dated March&nbsp;31, 2005.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">4.4
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"> Amended and Restated Trust Agreement </TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Dated as of March&nbsp;31, 2005, among the Company, as Depositor, Wilmington Trust
Company, as Property Trustee, Wilmington Trust Company, as Delaware Trustee and the
Administrative Trustees named therein, as Administrative Trustees (including exhibits
containing the related forms of the SBCF Capital Trust I Common Securities
Certificate and the Preferred Securities Certificate), incorporated herein by
reference from the Company&#146;s Form&nbsp;8-K, dated March&nbsp;31, 2005.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">4.5
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"> Indenture </TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Dated as of December&nbsp;16, 2005, between the Company and U.S. Bank National
Association, as Trustee (including the form of the Junior Subordinated Debt Security,
which appears as Exhibit&nbsp;A to the Indenture), incorporated herein by reference from
the Company&#146;s Form&nbsp;8-K, dated December&nbsp;16, 2005.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">4.6
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"> Guarantee Agreement </TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Dated as of December&nbsp;16, 2005, between the Company, as Guarantor, and U.S. Bank
National Association, as Guarantee Trustee, incorporated herein by reference from the
Company&#146;s Form&nbsp;8-K, dated December&nbsp;16, 2005.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">4.7
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"> Amended and Restated Declaration of Trust </TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Dated as of December&nbsp;16, 2005, among the Company, as Sponsor, Dennis S. Hudson, III
and William R. Hahl, as Administrators, and U.S. Bank National Association, as
Institutional Trustee (including exhibits containing the related forms of the SBCF
Statutory Trust II Common Securities Certificate and the Capital Securities
Certificate), incorporated herein by reference from the Company&#146;s Form&nbsp;8-K, dated
December&nbsp;16, 2005.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">4.8
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"> Indenture </TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Dated June&nbsp;29, 2007, between the Company and LaSalle Bank, as Trustee (including the
form of the Junior Subordinated Debt Security, which appears as Exhibit&nbsp;A to the
Indenture), incorporated herein by reference from the Company&#146;s Form&nbsp;8-K, dated June
29, 2007.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">4.9
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"> Guarantee Agreement </TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Dated June&nbsp;29, 2007, between the Company, as Guarantor, and LaSalle Bank, as
Guarantee, incorporated herein by reference from the Company&#146;s Form&nbsp;8-K, dated June
29, 2007.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">4.10
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"> Amended and Restated Declaration of Trust </TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Dated June&nbsp;29, 2007, among the Company, as Sponsor, Dennis S. Hudson, III and
William R. Hahl, as Administrators, and LaSalle Bank, as Institutional Trustee
(including exhibits containing the related forms of the SBCF Statutory Trust III
Common Securities Certificate and the Capital Securities Certificate), incorporated
herein by reference from the Company&#146;s Form&nbsp;8-K, dated June&nbsp;29, 2007.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">4.11
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"> Trust Agreement of SBCF Capital Trust IV </TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Dated May&nbsp;16, 2008, among the Company, as Depositor and Wilmington Trust Company, a
Delaware banking corporation, as Trustee (including exhibits containing the related
forms of Junior Subordinated Indenture, Subordinated Indenture, Senior Indenture,
Guarantee Agreement and the Amended and Restated Trust Agreement of SBCF Capital
Trust IV), incorporated herein by reference from the Company&#146;s
Form&nbsp;S-3, dated May&nbsp;23,
2008.</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->II-3<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="92%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center"><B>Exhibit</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Number</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Description</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">4.12
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"> Trust Agreement of SBCF Capital Trust V </TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Dated May&nbsp;16, 2008, among the Company, as Depositor and Wilmington Trust Company, a
Delaware banking corporation, as Trustee (including exhibits containing the related
forms of Junior Subordinated Indenture, Subordinated Indenture, Senior Indenture,
Guarantee Agreement and the Amended and Restated Trust Agreement of SBCF Capital
Trust V), incorporated herein by reference from the Company&#146;s Form&nbsp;S-3, dated May&nbsp;23,
2008.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">4.13
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"> Specimen Preferred Stock Certificate </TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Incorporated herein by reference from the Company&#146;s Form&nbsp;8-K, dated December&nbsp;23, 2008.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">4.14
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"> Warrant for Purchase of Shares of Common Stock </TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Incorporated herein by reference from the Company&#146;s Form&nbsp;8-K, dated December&nbsp;23, 2008.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">5.1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Opinion of Crary, Buchanan, Bowdish, Bovie, Beres, Elder &#038; Williamson, Chartered*</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">10.1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"> Amended and Restated Retirement Savings Plan, with Amendments </TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Incorporated herein by reference from the Company&#146;s Annual Report on Form&nbsp;10-K, dated
March&nbsp;28, 2003.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">10.2
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"> Amended and Restated Employee Stock Purchase Plan </TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Incorporated herein by reference from the Company&#146;s Proxy Statement on Form&nbsp;DEF 14A
as Exhibit&nbsp;A, dated April&nbsp;27, 2009.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">10.3
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"> Amendment #1 to the Employee Stock Purchase Plan </TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Incorporated herein by reference from the Company&#146;s Annual Report on Form&nbsp;10-K, dated
March&nbsp;29, 1991.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">10.4
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"> Executive Employment Agreement </TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Dated March&nbsp;22, 1991 between A. Douglas Gilbert and the Bank, incorporated herein by
reference from the Company&#146;s Annual Report on Form&nbsp;10-K, dated March&nbsp;29, 1991.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">10.5
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"> Executive Employment Agreement </TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Dated January&nbsp;18, 1994 between Dennis S. Hudson, III and the Bank, incorporated
herein by reference from the Company&#146;s Annual Report on Form&nbsp;10-K, dated March&nbsp;28,
1995.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">10.6
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"> Executive Employment Agreement </TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Dated July&nbsp;31, 1995 between C. William Curtis, Jr. and the Bank, incorporated
herein by reference from the Company&#146;s Annual Report on Form&nbsp;10-K, dated March&nbsp;28,
1996.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">10.7
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"> Executive Employment Agreement </TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Dated January&nbsp;2, 2007 between Harry R. Holland, III and the Bank, incorporated
herein by reference from the Company&#146;s Form&nbsp;8-K, dated January&nbsp;2, 2007.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">10.8
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"> 1996 Long Term Incentive Plan </TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Incorporated herein by reference from the Company&#146;s Registration Statement on Form
S-8 File No. 333-91859, dated December&nbsp;1, 1999.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">10.9
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"> 2000 Long Term Incentive Plan, as Amended </TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Incorporated herein by reference from the Company&#146;s Proxy Statement on Form&nbsp;DEF 14A
as Exhibit&nbsp;A, dated March&nbsp;13, 2000.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">10.10
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"> Executive Deferred Compensation Plan </TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Incorporated herein by reference from the Company&#146;s Annual Report on Form&nbsp;10-K, dated
March&nbsp;30, 2001.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">10.11
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"> Line of Credit Agreement </TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Incorporated herein by reference from the Company&#146;s Annual Report on Form&nbsp;10-K, dated
March&nbsp;28, 2003.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">10.12
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"> Change of Control Employment Agreement </TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Dated December&nbsp;24, 2003 between Dennis S. Hudson, III and the Registrant,
incorporated herein by reference from the Company&#146;s Form&nbsp;8-K, dated December&nbsp;24,
2003.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">10.13
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"> Change of Control Employment Agreement </TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Dated December&nbsp;24, 2003 between A. Douglas Gilbert and the Registrant, incorporated
herein by reference from the Company&#146;s Form&nbsp;8-K, dated December&nbsp;24, 2003.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">10.14
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"> Change of Control Employment Agreement </TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Dated December&nbsp;24, 2003 between C. William Curtis, Jr. and the Registrant,
incorporated herein by reference from the Company&#146;s Form&nbsp;8-K, dated December&nbsp;24,
2003.</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->II-4<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="92%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center"><B>Exhibit</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Number</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Description</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">10.15
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Change of Control Employment Agreement</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Dated December&nbsp;24, 2003 between William R. Hahl and the Company, incorporated herein
by reference from the Company&#146;s Form&nbsp;8-K, dated December&nbsp;24, 2003.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">10.16
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Change of Control Employment Agreement</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Dated December&nbsp;24, 2003 between Jean Strickland and the Company, incorporated herein
by reference from the Company&#146;s Form&nbsp;8-K, dated January&nbsp;7, 2004.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">10.17
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Change of Control Employment Agreement</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Dated July&nbsp;18, 2006 between Richard A. Yanke and the Registrant, incorporated herein
by reference from the Company&#146;s Annual Report on Form&nbsp;10-K, dated March&nbsp;15, 2007.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">10.18
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Directors Deferred Compensation Plan</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Dated June&nbsp;15, 2004, but effective July&nbsp;1, 2004, incorporated herein by reference
from the Company&#146;s Annual Report on Form&nbsp;10-K, filed on March&nbsp;17, 2005.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">10.19
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Executive Transition Agreement</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Dated June&nbsp;22, 2007, between A. Douglas Gilbert and the Registrant incorporated
herein by reference from the Company&#146;s Form&nbsp;8-K, dated June&nbsp;22, 2007.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">10.20
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Consulting and Restrictive Covenants Agreement</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Dated June&nbsp;22, 2007, between A. Douglas Gilbert and the Registrant incorporated
herein by reference from the Company&#146;s Form&nbsp;8-K, dated June&nbsp;22, 2007.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">10.21
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Executive Employment Agreement</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Dated March&nbsp;26, 2008 between O. Jean Strickland and the Bank and Company,
incorporated herein by reference from the Company&#146;s Annual Report on Form&nbsp;8-K, dated
March&nbsp;26, 2008.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">10.22
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">2008 Long-Term Incentive Plan</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Incorporated herein by reference from the Company&#146;s Proxy Statement on Form&nbsp;DEF 14A
as Exhibit&nbsp;A, dated March&nbsp;18, 2008.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">10.23
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Letter Agreement</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Dated December&nbsp;19, 2008, between the Company and the United States Department of the
Treasury incorporated herein by reference from the Company&#146;s Form&nbsp;8-K, dated December
23, 2008.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">10.24
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Formal Agreement</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Dated December&nbsp;16, 2008, between the Company and the Office of the Comptroller of the
Currency incorporated herein by reference from the Company&#146;s Form&nbsp;8-K, dated December
23, 2008.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">10.25
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Waiver of Senior Executive Officers</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Dated December&nbsp;19, 2008, issued to the United Stated Department of the Treasury
incorporated herein by reference from the Company&#146;s Form&nbsp;8-K, dated December&nbsp;23,
2008.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">10.26
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Consent of Senior Executive Officers</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Dated December&nbsp;19, 2008, issued to the United States Department of the Treasury
incorporated herein by reference from the Company&#146;s Form&nbsp;8-K, dated December&nbsp;23,
2008.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">10.27
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Form of 409A Amendment to Employment Agreements with Dennis S. Hudson, III, William
R. Hahl, A. Douglas Gilbert, O. Jean Strickland and H. Russell Holland, III</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Incorporated herein by reference from the Company&#146;s Form&nbsp;8-K, dated January&nbsp;5, 2009</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">21.1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Subsidiaries of the Registrant (filed herewith).</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">23.1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Consent of KPMG LLP (filed herewith).</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">23.2
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Consent of Crary, Buchanan, Bowdish, Bovie, Beres, Elder &#038; Williamson, Chartered
(included in Exhibit&nbsp;5.1)*</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">24.1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Power of Attorney (see signature page).</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">*</TD>
    <TD>&nbsp;</TD>
    <TD>To be filed by amendment.</TD>
</TR>

</TABLE>



<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Item&nbsp;17. Undertakings</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The undersigned registrant hereby undertakes as follows:
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->II-5<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;For purposes of determining any liability under the Securities Act of 1933, the
information omitted from the form of prospectus filed as part of this registration statement in
reliance upon Rule&nbsp;430A and contained in a form of prospectus filed by the registrant pursuant to
Rule 424(b) (1)&nbsp;or (4)&nbsp;or 497(h) under the Securities Act shall be deemed to be part of this
registration statement as of the time it was declared effective.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;For the purpose of determining any liability under the Securities Act of 1933, each
post-effective amendment that contains a form of prospectus shall be deemed to be a new
registration statement relating to the securities offered therein, and the offering of such
securities at that time shall be deemed to be the initial bona fide offering thereof.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Insofar as indemnification for liabilities arising under the Securities Act of 1933 may be
permitted to directors, officers and controlling persons of the registrant pursuant to the
foregoing provisions, or otherwise, the registrant has been advised that in the opinion of the
Securities and Exchange Commission such indemnification is against public policy as expressed in
the Act and is, therefore, unenforceable. In the event that a claim for indemnification against
such liabilities (other than the payment by the registrant of expenses incurred or paid by a
director, officer or controlling person of the registrant in the successful defense of any action,
suit or proceeding) is asserted by such director, officer or controlling person in connection with
the securities being registered, the registrant will, unless in the opinion of its counsel the
matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the
question whether such indemnification by it is against public policy as expressed in the Act and
will be governed by the final adjudication of such issue.
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->II-6<!-- /Folio -->
</DIV>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>SIGNATURES</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to the requirements of the Securities Act of 1933, the registrant has duly caused
this registration statement to be signed on its behalf by the undersigned, thereunto duly
authorized in the City of Stuart, State of Florida, on June&nbsp;19, 2009.
</DIV>


<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left"><B>SEACOAST BANKING CORPORATION OF FLORIDA</B><BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">/s/ Dennis S. Hudson, III
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left">Dennis S. Hudson, III&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left">Chairman of the Board and Chief Executive Officer&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
</TABLE>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>POWER OF ATTORNEY</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;KNOW ALL MEN BY THESE PRESENTS, that each of the undersigned being a director of Seacoast
Banking Corporation of Florida, a Florida corporation (the &#147;Company&#148;), constitutes and appoints
each of Dennis S. Hudson, III, O. Jean Strickland and William R. Hahl, as agent, with full power of
substitution, for his and in his name, place and stead, in any and all capacities, to sign any and
all amendments, including post-effective amendments, to this registration statement, and to file
the same, therewith, with the Securities and Exchange Commission, and to make any and all state
securities law filings, granting unto said attorney-in-fact and agent, full power and authority to
do and perform each and every act and thing requisite or necessary to be done in about the
premises, as fully to all intents and purposes as he might or could do in person, hereby ratifying
the confirming all that said attorney-in-fact and agent, or any substitute or substitutes, may
lawfully do or cause to be done by virtue hereof.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to the requirements of the Securities Act of 1933, this registration statement has
been signed by the following persons in the capacities and on the dates indicated.
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="30%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="30%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="30%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center"><B>Signature</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Title</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Date</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom"><!-- Blank Space -->
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top">/s/ Dennis S. Hudson, III<BR>
<DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
Dennis S. Hudson, III
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;Chairman
and Chief Executive<br>
Officer (Principal Executive
Officer)
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">June&nbsp;19, 2009</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top">/s/ Dale M. Hudson<BR>
<DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
Dale M. Hudson
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;Dale
M. Hudson, Vice-Chairman
of the <BR>Board and Director
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">June&nbsp;19, 2009</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top">/s/ William R. Hahl<BR>
<DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
William R. Hahl
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;Executive
Vice President and
Chief <BR>Financial Officer<BR>
(Principal Financial and
Accounting&nbsp; Officer)
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">June&nbsp;19, 2009</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top">/s/ Stephen E. Bohner<BR>
<DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
Stephen E. Bohner
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;Director
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">June&nbsp;19, 2009</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top">/s/ Jeffrey C. Bruner<BR>
<DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
Jeffrey C. Bruner
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;Director
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">June&nbsp;19, 2009</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->II-7<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="30%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="30%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="30%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center"><B>Signature</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Title</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Date</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom"><!-- Blank Space -->
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top">/s/ John H. Crane<BR>
<DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
John H. Crane
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;Director
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">June&nbsp;19, 2009</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top">/s/ T. Michael Crook<BR>
<DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
T. Michael Crook
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;Director
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">June&nbsp;19, 2009</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top">/s/ H. Gilbert Culbreth, Jr.<BR>
<DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
H. Gilbert Culbreth, Jr.
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;Director
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">June&nbsp;19, 2009</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top">/s/ Christopher E. Fogal<BR>
<DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
Christopher E. Fogal
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;Director
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">June&nbsp;19, 2009</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top">/s/ Jeffrey S. Furst<BR>
<DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
Jeffrey S. Furst
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;Director
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">June&nbsp;19, 2009</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top">/s/ A. Douglas Gilbert<BR>
<DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
A. Douglas Gilbert
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;Director
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">June&nbsp;19, 2009</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top">/s/ Dennis S. Hudson Jr.<BR>
<DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
Dennis S. Hudson Jr.
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;Director
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">June&nbsp;19, 2009</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top">/s/ Thomas E. Rossin<BR>
<DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
Thomas E. Rossin
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;Director
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">June&nbsp;19, 2009</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top">/s/ Thomas H. Thurlow, Jr.<BR>
<DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
Thomas H. Thurlow, Jr.
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;Director
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">June&nbsp;19, 2009</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top">/s/ Edwin E. Walpole III<BR>
<DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
Edwin E. Walpole III
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;Director
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">June&nbsp;19, 2009</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->II-8<!-- /Folio -->
</DIV>




</BODY>
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{"company-data": {"conformed-name": "SEACOAST BANKING CORP OF FLORIDA", "cik": "0000730708", "assigned-sic": "6022", "irs-number": "592260678", "state-of-incorporation": "FL", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "S-1", "act": "33", "file-number": "333-160133", "film-number": "09902344"}, "business-address": {"street1": "815 COLORADO AVE", "street2": "P O BOX 9012", "city": "STUART", "state": "FL", "zip": "34994", "phone": "5612874000"}, "mail-address": {"street1": "815 COLORADO AVE", "street2": "P O BOX 9012", "city": "STUART", "state": "FL", "zip": "34995"}}
S-1
Table of Contents
As filed with the Securities and Exchange Commission on June 19, 2009
Registration No. 333-
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM S-1
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933
Seacoast Banking Corporation of Florida
(Exact name of registrant as specified in its charter)
Florida
6022
59-2260678
(State or other jurisdiction of
incorporation or organization)
(Primary Standard Industrial
Classification Code Number)
(I.R.S. Employer
Identification Number)
Seacoast Banking Corporation of Florida
815 Colorado Avenue
Stuart, Florida 34994
(772) 287-4000
(Address, including zip code, and telephone number,
including area code, of registrant's principal executive offices)
Dennis S. Hudson, III
Chief Executive Officer
Seacoast Banking Corporation of Florida
815 Colorado Avenue
Stuart, Florida 34994
(772) 287-4000
(Name, address, including zip code, and telephone number,
including area code, of agent for service)
Copies to:
Ralph F. MacDonald III, Esq.
Jones Day
1420 Peachtree Street, N.E., Suite 800
Atlanta, Georgia 30309
(404) 581-3939
Stuart G. Stein, Esq.
R. Daniel Keating, Esq.
Hogan & Hartson LLP
555 Thirteenth Street, NW
Washington, DC 20004
(202) 637-8575
Approximate date of commencement of proposed sale to the public:
As soon as practicable after
the effective date of this registration statement.
If any of the securities being registered on this Form are to be offered on a delayed or
continuous basis pursuant to Rule 415 under the Securities Act of 1933 check the following box.
o
If this Form is filed to register additional securities for an offering pursuant to Rule
462(b) under the Securities Act, please check the following box and list the Securities Act
registration statement number of the earlier effective registration statement for the same
offering.
o
If this Form is a post-effective amendment filed pursuant to Rule 462(c) under the Securities
Act, check the following box and list the Securities Act registration statement number of the
earlier effective registration statement for the same offering.
o
If this Form is a post-effective amendment filed pursuant to Rule 462(d) under the Securities
Act, check the following box and list the Securities Act registration statement number of the
earlier effective registration statement for the same offering.
o
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated
filer, a non-accelerated filer, or a smaller reporting company. See the definitions of "large
accelerated filer," "accelerated filer" and "smaller reporting company" in Rule 12b-2 of the
Exchange Act. (check one):
Large accelerated filer
o
Accelerated filer
þ
Non-accelerated filer
o
(Do not check if a smaller reporting company)
Smaller reporting company
o
CALCULATION OF REGISTRATION FEE
Title of Each Class
Proposed Maximum
of Securities to
Aggregate
Amount of
be Registered
Offering Price(1)
Registration Fee
Common Stock, par value $0.10 per
share
$
1,000,000
$
55.80
(1)
Estimated solely for the purpose of calculating the amount of the registration fee
pursuant to Rule 457(o) under the Securities Act of 1933.
The Registrant hereby amends this Registration Statement on such date or dates as may be necessary
to delay its effective date until the Registrant shall file a further amendment which specifically
states that this Registration Statement shall thereafter become effective in accordance with
Section
8(a)
of the Securities Act of 1933 or until the Registration Statement shall become
effective on such date as the Commission, acting pursuant to said Section
8(a)
, may determine.
Table of Contents
The information in this prospectus is not complete and may be changed. We may not sell these
securities until the registration statement filed with the Securities and Exchange Commission is
effective. This prospectus is not an offer to sell these securities and it is not soliciting an
offer to buy these securities in any state where the offer or sale is not permitted.
SUBJECT TO COMPLETION, DATED JUNE 19, 2009
PROSPECTUS
Shares
Common Stock
We are offering shares of our common stock, par value $0.10 per share. Our common stock is
listed on The Nasdaq Global Select Market under the symbol "SBCF." On June 18, 2009, the last
reported sale price of our common stock on The Nasdaq Global Select Market was $3.09 per share.
You should read this prospectus carefully before you invest. Investing in our common stock
involves a high degree of risk. See the section entitled "Risk Factors," beginning on page 6 of
this prospectus for certain risks and uncertainties you should consider.
PER SHARE
TOTAL
Public offering price
$
$
Underwriting discounts and commissions
$
$
Proceeds to Seacoast Banking Corporation of Florida
(before expenses)
$
$
We have granted the underwriters an option to purchase up to an additional            shares of
our common stock at the public offering price, less underwriting discounts and commissions, within 30
days from the date of this prospectus to cover over-allotments, if any.
Our shares of common stock are unsecured and are not deposits and are not insured or
guaranteed by the FDIC or any other governmental agency.
None of the Securities and Exchange Commission, any state securities commission, nor any other
governmental agency has approved or disapproved of these securities or determined that this
prospectus is truthful or complete. Any representation to the contrary is a criminal offense.
The underwriters expect to deliver the shares of common stock through the facilities of The
Depository Trust Company, against payment on or about           , 2009.
Sandler O'Neill + Partners L.P.
Fox-Pitt Kelton Cochran Caronia Waller
The date of this prospectus is           , 2009
TABLE OF CONTENTS
Page
Special Cautionary Note Regarding Forward-Looking Statements
i
About This Prospectus
ii
Where You Can Find More Information
iii
Prospectus Summary
1
Risk Factors
6
Use of Proceeds
18
Price Range of Common Stock
19
Dividend Policy
20
Capitalization
21
Description of Capital Stock
22
Anti-Takeover Effects of Certain Articles of Incorporation Provisions
29
Certain United States Federal Income Tax Considerations Applicable To Non-U.S. Holders
31
Underwriting
35
Legal Matters
38
Experts
38
EX-3.4
EX-21.1
EX-23.1
Table of Contents
SPECIAL CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
Certain of the statements made herein or incorporated by reference under the captions
"Management's Discussion and Analysis of Financial Condition and Results of Operations," "Risk
Factors" and elsewhere are "forward-looking statements" within the meaning and protections of
Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934,
as amended, or the Exchange Act.
Forward-looking statements include statements with respect to our beliefs, plans, objectives,
goals, expectations, anticipations, assumptions, estimates, intentions, and future performance, and
involve known and unknown risks, uncertainties and other factors, which may be beyond our control,
and which may cause the actual results, performance or achievements of Seacoast Banking Corporation
of Florida to be materially different from future results, performance or achievements expressed or
implied by such forward-looking statements.
All statements other than statements of historical fact are statements that could be
forward-looking statements. You can identify these forward-looking statements through our use of
words such as "may," "will," "anticipate," "assume," "should," "indicate," "would," "believe,"
"contemplate," "expect," "estimate," "continue," "plan," "point to," "project," "could," "intend,"
"target" and other similar words and expressions of the future. These forward-looking statements
may not be realized due to a variety of factors, including, without limitation:
•
the effects of future economic, business and market conditions, domestic and
foreign;
•
governmental monetary and fiscal policies;
•
legislative and regulatory changes, including changes in banking, securities and tax
laws and regulations and their application by our regulators, and changes in the scope
and cost of FDIC insurance and other coverages;
•
changes in accounting policies, rules and practices;
•
the risks of changes in interest rates on the levels, composition and costs of
deposits, loan demand, and the values and liquidity of loan collateral, securities, and
interest sensitive assets and liabilities;
•
credit risks of borrowers;
•
changes in the availability and cost of credit and capital in the financial markets;
•
changes in the prices, values and sales volumes of residential and commercial real
estate;
•
the effects of competition from a wide variety of local, regional, national and
other providers of financial, investment and insurance services;
•
the failure of assumptions underlying the establishment of reserves for possible
loan losses and other estimates;
•
the risks of mergers, acquisitions and divestitures, including, without limitation,
the related time and costs of implementing such transactions, integrating operations as
part of these transactions and possible failures to achieve expected gains, revenue
growth and/or expense savings from such transactions;
•
changes in technology or products that may be more difficult, costly, or less
effective than anticipated;
•
the effects of war or other conflicts, acts of terrorism or other catastrophic
events that may affect general economic conditions; and
•
other factors and risks described under "Risk Factors" herein.
All written or oral forward-looking statements that are made by or are attributable to us are
expressly qualified in their entirety by this cautionary notice. We have no obligation and do not
undertake to update, revise or correct any of the forward-looking statements after the date of this
prospectus, or after the respective dates on which such statements otherwise are made.
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ABOUT THIS PROSPECTUS
You should rely only on the information contained in this prospectus and in the documents
incorporated by reference herein. We have not, and the underwriters have not, authorized any other
person to provide you with different information. We are not, and the underwriters are not, making
an offer to sell our common stock in any jurisdiction in which the offer or sale is not permitted.
Neither we, the underwriters, nor any of our officers, directors, agents or representatives
make any representation to you about the legality of an investment in our common stock. You should
not interpret the contents of this prospectus to be legal, business, investment or tax advice. You
should consult with your own advisors for that type of advice and consult with them about the
legal, tax, business, financial and other issues that you should consider before investing in our
common stock.
This prospectus does not offer to sell, or ask for offers to buy, any shares of our common
stock in any state or jurisdiction where it would not be lawful or where the person making the
offer is not qualified to do so.
No action is being taken in any jurisdictions outside the United States to permit a public
offering of the common stock or possession or distribution of this prospectus in those
jurisdictions. Persons who come into possession of this prospectus in jurisdictions outside the
United States are required to inform themselves about, and to observe, any restrictions that apply
in those jurisdictions to this offering or the distribution of this prospectus.
Unless the context indicates otherwise, all references in this prospectus to "Seacoast," "we,"
"us," "our company" and "our" refer to Seacoast Banking Corporation of Florida and its combined
subsidiaries. References to "Seacoast National" are to Seacoast National Bank, our principal bank
subsidiary.
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WHERE YOU CAN FIND MORE INFORMATION
We file annual, quarterly, and current reports, proxy statements and other information with
the SEC. Our SEC filings are available to the public over the Internet at the SEC's web site at
www.sec.gov and on the investor relations page of our website at www.seacoastbanking.net.
Information on our web site is not part of this prospectus. You may also read and copy any
document we file with the SEC at the SEC's Public Reference Room at 100 F Street N.E., Washington,
D.C. 20549. You can also obtain copies of the documents upon the payment of a duplicating fee to
the SEC. Please call the SEC at 1-800-SEC-0330 for further information on the operation of the
Public Reference Room. The SEC maintains an Internet site that contains reports, proxy and
information statements, and other information regarding issuers that file electronically with the
SEC like us. Our SEC filings are also available to the public from the SEC's website at
http://www.sec.gov.
This prospectus omits some information contained in the registration statement in accordance
with SEC rules and regulations. You should review the information and exhibits included in the
registration statement for further information about us and the securities we are offering.
Statements in this prospectus concerning any document we filed as an exhibit to the registration
statement or that we otherwise filed with the SEC are not intended to be comprehensive and are
qualified by reference to these filings. You should review the complete document to evaluate these
statements.
The SEC allows us to "incorporate by reference" information we file with it, which means that
we can disclose important information to you by referring you to other documents. The information
incorporated by reference is considered to be a part of this prospectus. Information contained in
this prospectus supersedes information incorporated by reference that we have filed with the SEC
prior to the date of this prospectus.
We incorporate by reference the following documents listed below, except to the extent that
any information contained in such filings is deemed "furnished" in accordance with SEC rules:
•
Our Annual Report on Form 10-K, as amended, for the year ended December 31, 2008;
•
Our Definitive Proxy Statement on Schedule 14A, filed with the SEC on April 27,
2009;
•
Our Quarterly Report on Form 10-Q, as amended, for the quarter ended March 31, 2009;
and
•
Our Current Reports on Form 8-K filed with the SEC on January 5, 2009 and May 22,
2009.
These documents contain important information about us, our business and our financial
condition. You may request a copy of these filings, at no cost, by writing or telephoning us at:
Seacoast Banking Corporation of Florida
P.O. Box 9012
Stuart, Florida 34995
Telephone: (772) 287-4000
Facsimile: (772) 288-6012
We maintain an Internet website at www.seacoastbanking.com where the incorporated reports
listed above can be accessed.
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PROSPECTUS SUMMARY
This summary highlights information contained elsewhere in this prospectus and may not contain
all of the information that may be important to you. You should read this entire prospectus
carefully, including the information set forth in "Risk Factors" before making an investment
decision.
Seacoast Banking Corporation of Florida
We are a bank holding company registered under the Bank Holding Company Act of 1956, as
amended, and our principal subsidiary is Seacoast National Bank. Seacoast National commenced its
operations in 1933, and operated prior to 2006 as "First National Bank & Trust Company of the
Treasure Coast." At March 31, 2009, Seacoast National had 40 banking offices in 14 counties in
Florida. In addition, Seacoast Marine Finance Division, a division of Seacoast National, has
offices located in Florida and California. Our subsidiary, FNB Brokerage Services, Inc., is a
securities broker-dealer engaged in securities brokerage and annuity sales.
As of March 31, 2009, we had total consolidated assets of approximately $2.3 billion, total
deposits of approximately $1.8 billion, total consolidated liabilities, including deposits, of
approximately $2.1 billion and consolidated shareholders' equity of approximately $213.7 million.
We offer a full array of deposit accounts and retail banking services, engage in consumer and
commercial lending and provide a wide variety of trust and asset management services.
We have expanded from Martin County, Florida into 13 other counties by establishing new
branches, acquiring branches, acquisitions from the receiver of failed banks, and whole bank
acquisitions. We have grown internally in nearby markets from Palm Beach County north to Brevard
County. Our last two acquisitions, in 2005 and 2006, added 12 branches and over $600 million of
deposits. These acquisitions also brought us low cost deposits and diversified our loan and
deposit sources away from coastal Florida, and into the Orlando and central Florida markets. We
continuously evaluate our branch network to determine how to best serve our customers efficiently
and to improve our profitability.
We have offices in five of the 10 counties expected to have the highest population growth in
Florida and we are in two of the three counties in Florida with the highest median household income.
We have built our franchise upon relationship banking and a strong core deposit base. Our
strategy has focused on transaction accounts and certificates of deposit with customers who
maintain transaction accounts with us. At March 31, 2009, we had $281.8 million of non-interest
bearing demand deposits, and $827.3 million of lower cost interest bearing savings, NOW and money
market deposit accounts. Our cost of deposits is lower than many of our peers, and we have a
strong net interest margin relative to our peers.
We have expanded our management team in recent years and have focused on credit quality and
identification and resolution of assets that are or are expected to become problems. Our efforts
to identify potential problems and reduce loan concentrations and risks began in 2006, and we have
sold $143.3 million troubled loans since then at 100% in
2007, ranging from 30% to 100% in 2008 and 24% in 2009. We believe we began addressing these risks early and have made
continuous progress in our credit quality. We may sell additional assets in the future, and take
advantage of market opportunities to dispose of problem assets. Recently, we have emphasized cost controls, which have been an
important focus in recent years as economic growth has slowed.
Our principal executive offices are located at 815 Colorado Avenue, Stuart, Florida 34994, and
our telephone number at that address is (772) 287-4000. We maintain an Internet website at
www.seacoastbanking.com. Neither this website nor the information on this website is included or
incorporated in, or is a part of, this prospectus.
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Recent Developments
On May 19, 2009, we announced that our board of directors had suspended regular quarterly cash
dividends on our outstanding common stock and preferred stock as a result of recently adopted
Federal Reserve policies related to dividends and other distributions. Our board of directors also
determined to defer distributions on $52 million of outstanding trust preferred securities.
On June 18, 2009, at our annual meeting of shareholders, our shareholders approved certain amendments to our
amended and restated articles of incorporation, which we refer to as
our Articles of Incorporation. However, one proposal to amend Article
VII of our Articles of Incorporation, which requires
the approval of 66
2
/
3
% of all outstanding shares of our common stock, had not yet received the requisite vote. We adjourned the annual meeting in order to solicit the remaining votes needed for approval and we expect that such
proposal will be approved. The disclosure contained in this prospectus assumes that such proposal will be approved and gives effect to the amendments to
our Articles of Incorporation contemplated by such proposal.
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The Offering
Common stock offered by us
shares of common stock, par value $0.10 per share.
Common stock outstanding after the offering
(1)
shares
Net proceeds
The net proceeds of this offering will be approximately $     
(after deducting offering expenses payable by us) based on
an assumed public offering price of $     per share, the
closing price on       , 2009.
Use of proceeds
We expect to use the net proceeds we receive from this
offering to add capital to Seacoast National and for
general corporate purposes.
Nasdaq Global Select Market Symbol
SBCF
(1)
The number of shares of common stock outstanding after this offering includes 19,149,828 shares
outstanding as of March 31, 2009, but does not include:
•
shares of common stock issuable pursuant to the underwriters' option to purchase
                               additional shares;
•
shares reserved for issuance upon exercise of stock options with a weighted-average
exercise price of $21.02, which have been granted and remained outstanding as of
March 31, 2009; and
•
1,179,245 shares of common stock that may be issued upon exercise of the Warrant (as
defined below).
We have issued $50 million of our Series A Preferred Stock to the United States Department of the Treasury (the "Treasury") pursuant to the Troubled Asset Relief Program ("TARP") Capital Purchase Program ("CPP"), together with the Warrant to purchase 1,179,245 shares of our
common stock at an initial purchase price of $6.36 per share. If this offering and any other qualified equity offerings that we may make prior to December 31, 2009 result in aggregate gross proceeds of at least $50.0 million, we expect that we would request that the Treasury reduce the Warrant it holds to purchase our common stock by 50%
to 589,622.5 shares.
Risk Factors
Before investing, you should carefully consider the information set forth under "Risk
Factors," beginning on page 6, for a discussion of the risks related to an investment in our common
stock.
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SUMMARY SELECTED CONSOLIDATED FINANCIAL DATA
You should read the summary selected consolidated financial information presented below in
conjunction with "Management's Discussion and Analysis of Financial Condition and Results of
Operations" and our financial statements and the notes to those financial statements appearing in
our Annual Report on Form 10-K for the fiscal year ended December 31, 2008 and Quarterly Report on
Form 10-Q for the quarter ended March 31, 2009, which are incorporated by reference in this
prospectus.
The following tables set forth selected consolidated financial data for us at and for each of
the years in the five-year period ended December 31, 2008 and at and for the three-month periods
ended March 31, 2009 and 2008.
The selected statement of income data for the years ended December 31, 2008, 2007 and 2006,
and the selected statement of financial condition data as of December 31, 2008 and 2007, have been
derived from our audited financial statements included in our Annual Report on Form 10-K for the
year ended December 31, 2008, which is incorporated by reference in this prospectus. The selected
statement of income data for the years ended December 31, 2005 and 2004 and the summary statement
of financial condition data as of December 31, 2006, 2005 and 2004 have been derived from our
audited financial statements that are not included in this prospectus.
The summary financial data at and for the three months ended March 31, 2009 and 2008 have been
derived from our unaudited interim financial statements included in our Quarterly Reports on Form
10-Q for the quarter ended March 31, 2009, and are incorporated by reference in this prospectus.
These unaudited interim financial statements include all adjustments (consisting only of normal
recurring adjustments) that we consider necessary for a fair presentation of our financial
condition and results of operations as of the dates and for the periods indicated. Historical
results are not necessarily indicative of future results and the results for the three months ended
March 31, 2009 are not necessarily indicative of our expected results for the full year ending
December 31, 2009.
At or For the Three
Months Ended March 31,
At or For The Year Ended December 31,
2009
2008
2008
2007
2006
2005
2004
(Dollars in thousands, except per share data)
Selected Financial Data:
Assets
$
2,308,933
$
2,393,357
$
2,314,436
$
2,419,874
$
2,389,435
$
2,132,174
$
1,615,876
Loans, net(1)
1,632,577
1,854,968
1,647,340
1,876,487
1,718,196
1,280,989
892,949
Securities
375,836
294,450
345,901
300,729
443,941
543,024
588,017
Investment Securities
Available for Sale
349,181
254,395
318,030
254,916
313,983
392,952
395,207
Goodwill and intangibles
54,879
56,137
55,193
56,452
57,299
33,901
2,639
Deposits
1,814,308
1,945,738
1,810,441
1,987,333
1,891,018
1,784,219
1,372,466
Borrowings and Junior Subordinated
Debentures
118,849
118,917
118,912
118,640
67,760
86,723
39,912
Total Shareholders' Equity
213,706
214,953
216,001
214,381
212,425
152,720
108,212
Total Preferred Shareholders' Equity
44,100
0
43,787
—
—
—
—
Total Common Shareholders' Equity
163,706
214,953
165,969
214,381
212,425
152,720
108,212
Selected Operating Data:
Interest Income
$
27,312
$
31,182
$
127,084
$
150,106
$
139,827
$
98,400
$
67,052
Interest Expense
9,138
14,670
49,853
65,637
50,787
26,215
14,278
Net Interest Income
18,174
20,485
77,231
84,469
89,040
72,185
52,774
Provision for Loan Losses
11,652
5,500
88,634
12,745
3,285
1,317
1,000
Non-interest Income (Loss)
4,756
6,162
21,920
19,862
24,103
20,645
18,506
Securities Gains (Losses)
0
0
355
(5,048
)
(157
)
128
44
Other
4,756
6,162
21,565
24,910
24,260
20,517
18,462
Non-interest Expenses
19,109
18,684
78,214
77,423
73,045
59,100
47,281
Earnings (Losses) Before Income Taxes
(7,831
)
2,463
(67,697
)
14,163
36,813
32,413
22,999
Provision (Benefit) for Income Taxes
(3,071
)
700
(22,100
)
4,398
12,959
11,654
8,077
Net Income (Loss)
(4,760
)
1,763
(45,597
)
9,765
23,854
20,759
14,922
Net Earnings:
Less: Cumulative Preferred Stock Dividend
and Accretion
$
937
$
0
$
115
—
—
—
—
Net Income (Loss) Available to
Common Shareholders
(5,697
)
1,763
(45,712
)
9,765
23,854
20,759
14,922
Basic Earnings Per Common Share
(0.30
)
0.09
(2.41
)
0.52
1.30
1.27
0.97
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At or For the Three
Months Ended March 31,
At or For The Year Ended December 31,
2009
2008
2008
2007
2006
2005
2004
(Dollars in thousands, except per share data)
Diluted Earnings Per Common Share
(0.30
)
0.09
(2.41
)
0.51
1.28
1.24
0.95
Cash Dividends Declared Per
Common Share
0.01
0.16
0.34
0.64
0.61
0.58
0.54
Weighted Average Common Shares:
Basic
19,069,437
18,928,375
18,997,757
18,936,541
18,305,258
16,361,196
15,335,731
Diluted
19,069,437
19,046,420
18,997,757
19,157,597
18,671,752
16,749,386
15,745,445
Book Value Per Common Share
$
8.86
$
11.25
$
8.98
$
11.22
$
11.20
$
8.94
$
7.00
Market Price Per Common Share at Period End
3.03
10.95
6.60
10.28
24.80
22.95
22.25
Selected Operating Ratios and Other Data:
Net Income (Loss) to Average Equity (ROE)
(8.83
)%
3.28
%
(22.25
)%
4.46
%
12.06
%
14.95
%
13.75
%
Net Income (Loss) to Average Assets (ROA)
(0.83
)
0.30
(1.97
)
0.42
1.03
1.07
1.05
Net Interest Margin (TE)(2)
3.44
3.74
3.58
3.92
4.15
3.97
3.89
Non-interest Income to Total Net Revenue
(TE)
20.68
23.06
21.76
22.71
21.36
22.11
25.87
Efficiency Ratio(3)
81.72
68.74
77.67
69.44
63.39
63.10
66.25
Dividend Payout Ratio(4)
n/m
(5)
171.80
%
n/m
(5)
124.80
%
47.10
%
46.30
%
55.60
%
Credit Quality:
Nonperforming Loans to Total Loans
6.69
%
3.86
%
5.19
%
3.57
%
0.72
%
0.03
%
0.16
%
Nonperforming Assets to Total Assets
5.29
2.74
3.98
2.83
0.52
0.02
0.09
Net Charge-offs (Recoveries) /Average Loans
2.07
0.93
4.45
0.31
(0.01
)
0.01
0.07
Allowance/Total Loans
1.99
1.22
1.75
1.15
0.86
0.70
0.73
Allowance/Total Nonperforming Loans and
Loans 90 days or more
past due but still accruing
28.54
35.38
33.09
32.28
119.04
1,075.99
446.11
Net (Recoveries) Charge-offs
$
8,540
$
4,401
$
81,148
$
5,758
$
(106
)
$
134
$
562
Regulatory Capital Ratios
Company:
Leverage Ratio
9.13
%
9.09
%
9.58
%
9.10
%
8.53
%
7.86
%
7.10
%
Tier 1 Risk-based Capital
12.71
11.07
%
12.75
10.99
10.87
11.13
10.36
Total Risk-based Capital
14.00
12.30
%
14.00
12.17
11.70
11.76
10.99
Bank:
Leverage Ratio
8.11
%
9.00
%
7.80
%
9.01
%
8.86
%
7.70
%
6.71
%
Tier 1 Risk-based Capital
11.31
10.97
10.38
10.89
11.30
10.57
9.79
Total Risk-based Capital
12.57
12.19
11.64
12.06
12.12
11.16
10.42
(1)
Net of deferred fees and allowance for credit losses.
(2)
Net interest income (TE) divided by total average earning assets.
(3)
Noninterest expense (less amortization of intangibles) divided by total revenue (net interest
income (TE) and other operating income excluding securities gains and losses).
(4)
Cash dividends divided by net earnings.
(5)
Not meaningful.
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RISK FACTORS
You should carefully consider the following risks before investing in our common stock. These
risks could materially affect our business, results of operations or financial condition and cause
the trading price of our common stock to decline. You could lose part or all of your investment.
Risks Related to Our Business
There can be no assurance that recent legislation and administrative actions authorizing the U.S.
government to take direct actions within the financial services industry will help stabilize the
U.S. financial system.
The Emergency Economic Stabilization Act of 2008, or EESA, was enacted on October 3, 2008.
Under EESA, the Treasury has the authority to,
among other things, invest in financial institutions and purchase up to $700 billion of troubled
assets and mortgages from financial institutions for the purpose of stabilizing and providing
liquidity to the U.S. financial markets. Under Treasury's Capital Purchase Program, or CPP, it
committed to purchase up to $250 billion of preferred stock and warrants in eligible institutions.
The EESA also temporarily increased FDIC deposit insurance coverage to $250,000 per depositor
through December 31, 2009, which was recently extended to December 31, 2013 under the Helping
Families Save Their Homes Act of 2009.
On February 10, 2009, the Treasury announced the Financial Stability Plan which, among other
things, provides a forward-looking supervisory capital assessment program that is mandatory for
banking institutions with over $100 billion of assets and makes capital available to financial
institutions qualifying under a process and criteria similar to the CPP. In addition, the American
Recovery and Reinvestment Act of 2009, or ARRA, was signed into law on February 17, 2009, and
includes, among other things, extensive new restrictions on the compensation and governance
arrangements of financial institutions.
Numerous actions have been taken by the Federal Reserve, the U.S. Congress, the Treasury, the
FDIC, the SEC and others to address the current liquidity and credit crisis that has followed the
sub-prime mortgage crisis that commenced in 2007, including the Financial Stability Program adopted
by the Treasury. These measures include fiscal and monetary policy actions described under
"Business—Fiscal and Monetary Policy" and "Business—Recent Legislative and Regulatory Changes" in
our Annual Report on Form 10-K for the year ended December 31, 2008, which is incorporated by
reference herein. In addition, the Secretary of the Treasury proposed fundamental changes to the
regulation of financial institutions, markets and products on June 17, 2009.
We cannot predict the actual effects of EESA, the ARRA, the proposed regulatory reform
measures and various governmental, regulatory, monetary and fiscal initiatives which have been and
may be enacted on the financial markets, on us and on Seacoast National. The terms and
costs of these activities, or the failure of these actions to help stabilize the financial markets,
asset prices, market liquidity and a continuation or worsening of current financial market and
economic conditions could materially and adversely affect our business, financial condition,
results of operations, and the trading prices of our securities.
Difficult market conditions have adversely affected our industry and us.
We are exposed to downturns in the U.S. economy, and particularly the local markets in which
we operate in Florida. Declines in the housing markets over the past year and a half, including
falling home prices and sales volumes, and increasing foreclosures, have negatively affected the
credit performance of mortgage loans and resulted in significant write-downs of asset values by
financial institutions, including government-sponsored entities and major commercial and investment
banks, as well as Seacoast National. These write-downs have caused many financial institutions to
seek additional capital, to merge with larger and stronger institutions and, in some cases, to
fail. Many lenders and institutional investors have reduced or ceased providing funding to
borrowers, including other financial institutions. This market turmoil and the tightening of
credit have led to increased levels of commercial and consumer delinquencies, lack of consumer
confidence, increased market volatility and reductions in business activity generally. The
resulting economic pressure on consumers and lack of confidence in the financial
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markets has
adversely affected our business, financial condition and results of operations. We do not expect
that the
difficult conditions in the financial markets are likely to improve in the near future. A
worsening of these conditions would likely exacerbate the adverse effects of these difficult market
conditions on us and other financial institutions. In particular:
•
We expect to face increased regulation of our industry, including as a result of
EESA, the ARRA and related initiatives by the U.S. government. Compliance with such
regulations may increase our costs and limit our ability to pursue business
opportunities.
•
Market developments and government programs may continue to adversely affect
consumer confidence levels and may cause adverse changes in borrower behaviors and
payment rates, resulting in further increases in delinquencies and default rates, which
could affect our loan charge-offs and our provisions for credit losses.
•
Our ability to assess the creditworthiness of our customers or to estimate the
values of our assets and collateral for loans will be reduced if the models and
approaches we use become less predictive of future behaviors, valuations, assumptions
or estimates. We estimate losses inherent in our credit exposure, the adequacy of our
allowance for loan losses and the values of certain assets by using estimates based on
difficult, subjective, and complex judgments, including estimates as to the effects of
economic conditions and how these economic conditions might affect the ability of our
borrowers to repay their loans or the value of assets.
•
Our ability to borrow from other financial institutions on favorable terms or at
all, or to raise capital, could be adversely affected by further disruptions in the
capital markets or other events, including, among other things, deteriorating investor
expectations.
•
Failures of other depository institutions in our markets and increasing
consolidation of financial services companies as a result of current market conditions
could increase our deposits and assets, necessitating additional capital, and may have
unexpected adverse effects upon our ability to compete effectively.
We are not paying dividends on our preferred stock or common stock and are deferring distributions
on our trust preferred securities, and we are restricted in otherwise paying cash dividends on our
common stock. The failure to resume paying dividends on our preferred stock and trust preferred
securities may adversely affect us.
We historically paid cash dividends before we suspended dividend payments on our preferred and
common stock and distributions on our trust preferred securities on May 19, 2009 pursuant to the
request of the Federal Reserve. The Federal Reserve, as a matter of policy, has indicated that
bank holding companies should not pay dividends or make distributions on trust preferred securities
using funds from the TARP CPP. We intend, following completion of this offering, to seek Federal
Reserve approval to pay all outstanding but unpaid dividends and distributions on our Series A
Preferred Stock and trust preferred securities. There is no assurance that we will receive
approval to resume paying cash dividends. Even if we are allowed to resume paying dividends again
by the Federal Reserve, future payment of cash dividends on our common stock, if any, will be
subject to the prior payment of all unpaid dividends and deferred distributions on our Series A
Preferred Stock and trust preferred securities. Further, we need prior Treasury approval to
increase our quarterly cash dividends above $0.01 per common share through the earliest of December 23, 2011,
the date we redeem all shares of Series A Preferred Stock or the Treasury has transferred all
shares of Series A Preferred Stock to third parties. All dividends are declared and paid at the
discretion of our board of directors and are dependent upon our liquidity, financial condition,
results of operations, capital requirements and such other factors as our board of directors may
deem relevant. See "Dividend Policy."
Further, dividend payments on our Series A Preferred Stock and distributions on our trust
preferred securities are cumulative and therefore unpaid dividends and distributions will accrue
and compound on each subsequent dividend payment date. In the event of any liquidation,
dissolution or winding up of the affairs of our company, holders of the Series A Preferred Stock
shall be entitled to receive for each share of Series A Preferred Stock the liquidation amount plus
the amount of any accrued and unpaid dividends. If we miss six quarterly
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dividend payments,
whether or not consecutive, the Treasury will have the right to appoint two directors to our
board of directors until all accrued but unpaid dividends have been paid. We cannot pay
dividends on our outstanding shares of Series A Preferred Stock or our common stock until we have
paid in full all deferred distributions on our trust preferred securities, which will require prior approval of the Federal Reserve.
Nonperforming assets take significant time to resolve and adversely affect our results of
operations and financial condition.
At December 31, 2008 and March 31, 2009, our nonperforming loans (which consist of non-accrual
loans) totaled $86.9 million and $109.4 million, or 5.18% and 6.70% of the loan portfolio,
respectively. At December 31, 2008 and March 31, 2009, our nonperforming assets (which include
foreclosed real estate) were $92.0 million and $122.1 million, or 3.97% and 5.29% of assets,
respectively. In addition, we had approximately $13.9 million and $11.6 million in accruing loans
that were 30-89 days delinquent at December 31, 2008 and March 31, 2009, respectively. Our
non-performing assets adversely affect our net income in various ways. Until economic and market
conditions improve, we expect to continue to incur additional losses relating to an increase in
non-performing loans. We do not record interest income on non-accrual loans or other real estate
owned, thereby adversely affecting our income, and increasing our loan administration costs. When
we take collateral in foreclosures and similar proceedings, we are required to mark the related
loan to the then fair market value of the collateral, which may result in a loss. These loans and
other real estate owned also increase our risk profile and the capital our regulators believe is
appropriate in light of such risks. While we have reduced our problem assets through loan sales,
workouts, restructurings and otherwise, decreases in the value of these assets, or the underlying
collateral, or in these borrowers' performance or financial conditions, whether or not due to
economic and market conditions beyond our control, could adversely affect our business, results of
operations and financial condition. In addition, the resolution of nonperforming assets requires
significant commitments of time from management and our directors, which can be detrimental to the
performance of their other responsibilities. There can be no assurance that we will not experience
further increases in nonperforming loans in the future.
Our allowance for loan losses may prove inadequate or we may be adversely affected by credit risk
exposures.
Our business depends on the creditworthiness of our customers. We periodically review our
allowance for loan losses for adequacy considering economic conditions and trends, collateral
values and credit quality indicators, including past charge-off experience and levels of past due
loans and nonperforming assets. We cannot be certain that our allowance for loan losses will be
adequate over time to cover credit losses in our portfolio because of unanticipated adverse changes
in the economy, market conditions or events adversely affecting specific customers, industries or
markets, or borrower behaviors towards repaying their loans. The
credit quality of our borrowers has deteriorated as a result of the
economic downturn in our markets. If the credit quality of our customer
base or their debt service behavior materially decreases further, if the risk profile of a market, industry
or group of customers declines further or weaknesses in the real estate markets and other
economics persist or worsen, or if our allowance for loan losses is not adequate, our business,
financial condition, including our liquidity and capital, and results of operations could be
materially adversely affected.
During 2009, our commercial and residential real estate and real estate-related portfolios have
continued to be affected by adverse market conditions, including reduced real estate prices and
sales levels and, more generally, all of our loan portfolios have been affected by the sustained
economic weakness of our markets and the impact of higher unemployment rates.
Our commercial and residential real estate and real estate-related loans have continued to be
affected adversely by the on-going correction in real estate prices and reduced levels of sales.
More generally, all of our commercial real estate loan portfolios, especially construction and
development loans, have been affected adversely by the economic weakness of our Florida markets and
the effects of higher unemployment rates. We may have to increase our allowance for loan losses
through additional provisions for loan losses because of continued adverse changes in the economy,
market conditions, and events that adversely affect our customers or markets. Our business,
financial condition, liquidity, capital (especially tangible common equity), and results of
operations could be materially adversely affected by additional provisions for loan losses.
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Weaknesses in the real estate markets, including the secondary market for residential mortgage
loans, have adversely affected us and may continue to adversely affect us.
The effects of ongoing mortgage market challenges, combined with the ongoing correction in
residential real estate market prices and reduced levels of home sales, could result in further
price reductions in single family home values, further adversely affecting the liquidity and value
of collateral securing commercial loans for residential land acquisition, construction and
development, as well as residential mortgage loans and residential property collateral securing
loans that we hold, mortgage loan originations and gains on sale of mortgage loans. Declining real
estate prices have caused higher delinquencies and losses on certain mortgage loans, generally,
particularly second lien mortgages and home equity lines of credit. Significant ongoing
disruptions in the secondary market for residential mortgage loans have limited the market for and
liquidity of most residential mortgage loans other than conforming Fannie Mae and Freddie Mac
loans. These trends could continue, notwithstanding various government programs to boost the
residential mortgage markets and stabilize the housing markets. Continued declines in real estate
values, home sales volumes and financial stress on borrowers as a result of job losses, interest
rate resets on adjustable rate mortgage loans or other factors could have further adverse effects
on borrowers that result in higher delinquencies and greater charge-offs in future periods, which
would adversely affect our financial condition, including capital and liquidity, or results of
operations. In the event our allowance for loan losses is insufficient to cover such losses, our
earnings, capital and liquidity could be adversely affected.
Our real estate portfolios are exposed to weakness in the Florida housing market and the overall
state of the economy.
The declines in home prices and the volume of home sales in Florida, along with the reduced
availability of certain types of mortgage credit, have resulted in increases in delinquencies and
losses in our portfolios of home equity lines and loans, and commercial loans related to
residential real estate acquisition, construction and development. Further declines in home prices
coupled with the economic recession and associated rises in unemployment levels could cause
additional losses which could adversely affect our earnings and financial condition, including our
capital and liquidity.
Our concentration of commercial real estate loans could result in increased loan losses.
Commercial real estate, or CRE, is cyclical and poses risks of loss to us due to concentration
levels and similar risks of the asset, especially since we had 53.5% of our portfolio in CRE loans
at year-end 2008 and 53.0% as of March 31, 2009. The banking regulators continue to give CRE
lending greater scrutiny, and banks with higher levels of CRE loans are expected to implement
improved underwriting, internal controls, risk management policies and portfolio stress testing, as
well as higher levels of allowances for possible losses and capital levels as a result of CRE
lending growth and exposures. During 2008, we added $88.6 million of provisions for loan losses
compared to $12.7 million in 2007 and $3.3 million in 2006, in part reflecting collateral
evaluations in response to recent changes in the market values of land collateralizing acquisition
and development loans.
Higher FDIC deposit insurance premiums and assessments could adversely affect our financial
condition.
FDIC insurance premiums have increased substantially in 2009 already and we expect to pay
significantly higher FDIC premiums in the future. Market developments have significantly depleted
the insurance fund of the FDIC and reduced the ratio of reserves to insured deposits. The FDIC
adopted a revised risk-based deposit insurance assessment schedule on February 27, 2009, which
raised deposit insurance premiums. On May 22, 2009, the FDIC also implemented a five basis point
special assessment of each insured depository institution's assets minus Tier 1 capital as of June
30, 2009, but no more than 10 basis points times the institution's assessment base for the second
quarter of 2009, to be collected on September 30, 2009. Additional special assessments may be
imposed by the FDIC for future periods. We participate in the FDIC's Temporary Liquidity Guarantee
Program, or TLG, for noninterest-bearing transaction deposit accounts. Banks that participate in
the TLG's noninterest-bearing transaction account guarantee will pay the FDIC an annual assessment
of 10 basis points on the amounts in such accounts above the amounts covered by FDIC deposit
insurance. To the extent that these TLG assessments are insufficient to cover any loss or expenses
arising from the TLG program, the FDIC is authorized to impose an emergency special assessment on
all FDIC-insured depository institutions. The FDIC has authority to impose charges for the TLG
program upon depository institution holding companies, as well. These changes, along with the full
utilization of
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our FDIC insurance assessment credit in early 2009, will cause the premiums and TLG
assessments charged by the FDIC to increase. These actions could significantly increase our
noninterest expense in 2009 and for the foreseeable future.
Current levels of market volatility are unprecedented.
The capital and credit markets have been experiencing volatility and disruption for more than
a year. In some cases, the markets have produced downward pressure on stock prices and credit
availability for certain issuers without regard to those issuers' underlying financial condition or
performance. If current levels of market disruption and volatility continue or worsen, we may
experience adverse effects, which may be material, on our ability to maintain or access capital and
on our business, financial condition and results of operations.
Liquidity risks could affect operations and jeopardize our financial condition.
Liquidity is essential to our business. An inability to raise funds through deposits,
borrowings, the sale of loans and other sources could have a substantial negative effect on our
liquidity. Our funding sources include federal funds purchased, securities sold under repurchase
agreements, non-core deposits, and short- and long-term debt. We are also members of the Federal
Home Loan Bank of Atlanta and the Federal Reserve Bank of Atlanta, where we can obtain advances
collateralized with eligible assets. We maintain a portfolio of securities that can be used as a
secondary source of liquidity. There are other sources of liquidity available to us or Seacoast
National should they be needed, including our ability to acquire additional non-core deposits, the
issuance and sale of debt securities, and the issuance and sale of preferred or common securities
in public or private transactions. Our access to funding sources in amounts adequate to finance or
capitalize our activities or on terms which are acceptable to us could be impaired by factors that
affect us specifically or the financial services industry or economy in general. Our liquidity, on
a parent only basis, is adversely affected by our current inability to receive dividends from
Seacoast National without prior regulatory approval, offset by approximately $24.0 million of cash
and short-term investments currently held by us at March 31, 2009, largely due to the receipt of
TARP CPP proceeds. We invested $27.0 million of the TARP CPP proceeds in Seacoast National to meet
the Office of the Comptroller of the Currency's, or the OCC's, capital requirements. Our ability to
borrow could also be impaired by factors that are not specific to us, such as further disruption in
the financial markets or negative views and expectations about the prospects for the financial
services industry in light of the recent turmoil faced by banking organizations and the continued
deterioration in credit markets.
We could encounter difficulties as a result of our growth.
Our loans, deposits, fee businesses and employees have increased as a result of our organic
growth and acquisitions. Our failure to successfully manage and support this growth with
sufficient human resources, training and operational, financial and technology resources in
challenging markets and economic conditions could have a material adverse effect on our operating
results and financial condition. We may not be able to sustain our historical growth rates.
We are required to maintain capital to meet regulatory requirements, and if we fail to maintain
sufficient capital, whether due to losses, an inability to raise additional capital or otherwise,
our financial condition, liquidity and results of operations, as well as our regulatory
requirements, would be adversely affected.
Both we and Seacoast National must meet regulatory capital requirements and maintain
sufficient liquidity. We have an informal letter agreement with the OCC to maintain a Tier 1
leverage capital ratio of 7.50% and a total risk-based capital ratio of 12.0% at Seacoast National,
which are higher than the stated minimum capital ratios. We also face significant regulatory and
other governmental risk as a financial institution and a participant in the TARP CPP.
Our ability to raise additional capital, when and if needed, will depend on conditions in the
capital markets, economic conditions and a number of other factors, including investor perceptions
regarding the banking industry and market condition, and governmental activities, many of which are
outside our control, and on our financial condition and performance. Accordingly, we cannot assure
you that we will be able to raise additional capital if
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needed or on terms acceptable to us. If we fail to meet these capital and other regulatory
requirements, our financial condition, liquidity and results of operations would be materially and
adversely affected.
Our failure to remain "well capitalized" for bank regulatory purposes could affect customer
confidence, our ability to grow, our costs of funds and FDIC insurance costs, our ability to pay
dividends on common and preferred stock, make distributions on our trust preferred securities, our
ability to make acquisitions, and our business, results of operation and financial conditions,
generally. Under FDIC rules, if Seacoast National ceases to be a "well capitalized" institution
for bank regulatory purposes, its ability to accept brokered deposits may be restricted, and the
interest rates that it pays may be restricted.
Sales of additional capital could dilute existing shareholders.
Issuances of our common stock or securities convertible into or exchangeable for our common
stock could dilute the interests of our existing common shareholders or require shareholders to
approve an increase in the number of shares of common stock we are authorized to issue and could
increase the number of shares of common stock we are required to issue under the warrant we issued
to the Treasury under the TARP CPP. Among the securities we may issue are shares of preferred
stock which likely will have dividend and liquidation rights senior in priority to the rights of
holders of our common stock.
Our cost of funds may increase as a result of general economic conditions, FDIC insurance
assessments, interest rates and competitive pressures.
Our cost of funds may increase as a result of general economic conditions, FDIC insurance
assessments, interest rates and competitive pressures. We have traditionally obtained funds
principally through local deposits and we have a base of lower cost transaction deposits.
Generally, we believe local deposits are a cheaper and more stable source of funds than other
borrowings because interest rates paid for local deposits are typically lower than interest rates
charged for borrowings from other institutional lenders and reflect a mix of transaction and time
deposits, whereas brokered deposits typically are higher cost time deposits. Our costs of funds
and our profitability and liquidity are likely to be adversely affected, if and to the extent we
have to rely upon higher cost borrowings from other institutional lenders or brokers to fund loan
demand or liquidity needs, and changes in our deposit mix and growth could adversely affect our
profitability and the ability to expand our loan portfolio.
Our profitability and liquidity may be affected by changes in interest rates and economic
conditions.
Our profitability depends upon net interest income, which is the difference between interest
earned on assets, and interest expense on interest-bearing liabilities, such as deposits and
borrowings. Net interest income will be adversely affected if market interest rates change such
that the interest we pay on deposits and borrowings and our FDIC deposit insurance assessments
increase faster than the interest earned on loans and investments. Interest rates, and
consequently our results of operations, are affected by general economic conditions (domestic and
foreign) and fiscal and monetary policies may materially affect the level and direction of interest
rates. From June 2004 to mid-2006, the Federal Reserve raised the federal funds rate from 1.0% to
5.25%. Since then, beginning in September 2007, the Federal Reserve decreased the federal funds
rates by 100 basis points to 4.25% over the remainder of 2007, and has since reduced the target
federal funds rate by an additional 400 basis points to a range between zero to 25 basis points
beginning in December 2008. Decreases in interest rates generally increase the market values of
fixed-rate, interest-bearing investments and loans held, and increase the values of loan sales and
mortgage loan activities. However, the production of mortgages and other loans and the value of
collateral securing our loans, are dependent on demand within the markets we serve, as well as
interest rates. The levels of sales, as well as the values of real estate in our markets, have
declined. Declining rates reflect efforts by the Federal Reserve to stimulate the economy, but may
not be effective, and thus may negatively affect our results of operations and financial condition,
liquidity and earnings.
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The TARP CPP and the ARRA impose certain executive compensation and corporate governance
requirements that may adversely affect us and our business, including our ability to recruit and
retain qualified employees.
The purchase agreement we entered into in connection with our participation in the TARP CPP
required us to adopt the Treasury's standards for executive compensation and corporate governance
while the Treasury holds the equity issued pursuant to the TARP CPP, including the common stock
which may be issued pursuant to the warrant to purchase 1,179,245 shares of common stock, or the
Warrant, which we refer to as the TARP Assistance Period. These standards generally apply to our
chief executive officer, chief financial officer and the three next most highly compensated senior
executive officers. The standards include:
•
ensuring that incentive compensation for senior executives does not encourage
unnecessary and excessive risks that threaten the value of the financial institution;
•
required clawback of any bonus or incentive compensation paid to a senior executive
based on statements of earnings, gains or other criteria that are later proven to be
materially inaccurate;
•
prohibition on making golden parachute payments to senior executives; and
•
agreement not to deduct for tax purposes executive compensation in excess of
$500,000 for each senior executive.
In particular, the change to the deductibility limit on executive compensation may increase
the overall cost of our compensation programs in future periods.
The ARRA imposed further limitations on compensation during the TARP Assistance Period
including:
•
a prohibition on making any golden parachute payment to a senior executive officer
or any of our next five most highly compensated employees;
•
a prohibition on any compensation plan that would encourage manipulation of the
reported earnings to enhance the compensation of any of its employees; and
•
a prohibition of the five highest paid executives from receiving or accruing any
bonus, retention award, or incentive compensation, or bonus except for long-term
restricted stock with a value not greater than one-third of the total amount of annual
compensation of the employee receiving the stock.
The prohibition may expand to other employees based on increases in the aggregate value of
financial assistance that we receive in the future. For example, if we receive at least $250
million but less than $500 million in TARP financial assistance, the senior executive officers and
at least the next 10 most highly compensated employees will be prohibited from receiving or
accruing any such bonus.
The Treasury released an interim final rule on TARP standards for compensation and corporate
governance on June 10, 2009, which implemented and further expanded the limitations and
restrictions imposed on executive compensation and corporate governance by the TARP CPP and ARRA.
The new Treasury interim final rules, which became effective on June 15, 2009, also prohibit any
tax gross-up payments to senior executive officers and the next 20 highest paid executives. The
rule further authorizes the Treasury to establish the Office of the Special Master for TARP
Executive Compensation with broad powers to review compensation plans and corporate governance
matters of TARP recipients.
These provisions and any future rules issued by the Treasury could adversely affect our
ability to attract and retain management capable and motivated sufficiently to manage and operate
our business through difficult economic and market conditions. If we are unable to attract and
retain qualified employees to manage and operate our business, we may not be able to successfully
execute our business strategy.
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TARP lending goals may not be attainable.
Congress and the bank regulators have encouraged recipients of TARP capital to use such
capital to make loans and it may not be possible to safely, soundly and profitably make sufficient
loans to creditworthy persons in the current economy to satisfy such goals. Congressional demands
for additional lending by TARP capital recipients, and regulatory demands for demonstrating and
reporting such lending are increasing. On November 12, 2008, the bank regulatory agencies issued a
statement encouraging banks to, among other things, "lend prudently and responsibly to creditworthy
borrowers" and to "work with borrowers to preserve homeownership and avoid preventable
foreclosures." We continue to lend and have expanded our mortgage loan originations, and to report
our lending to the Treasury. The future demands for additional lending are unclear and uncertain,
and we could be forced to make loans that involve risks or terms that we would not otherwise find
acceptable or in our shareholders' best interest. Such loans could adversely affect our results of
operation and financial condition, and may be in conflict with bank regulations and requirements as
to liquidity and capital. The profitability of funding such loans using deposits may be adversely
affected by increased FDIC insurance premiums.
Changes in future rules applicable to banks generally or to TARP recipients could adversely affect
our operations, financial condition, and results of operations.
The rules and policies applicable to recipients of capital under the TARP CPP continue to
evolve and their scope, timing and effect cannot be predicted. We are not using proceeds from this
offering to redeem our Series A Preferred Stock issued to the Treasury under the TARP CPP. Any
redemption of the securities sold to the Treasury to avoid these restrictions would require prior
Federal Reserve and Treasury approval. Based on recently issued Federal Reserve guidelines,
institutions seeking to redeem TARP CPP preferred stock must demonstrate an ability to access the
long-term debt markets without reliance on the FDIC's TLG, successfully demonstrate access to
public equity markets and meet a number of additional requirements and considerations before we can
redeem any securities sold to the Treasury. Therefore, it is uncertain if we will be able to
redeem such securities even if we have sufficient financial resources to do so.
Our future success is dependent on our ability to compete effectively in highly competitive
markets.
We operate in the highly competitive markets of Martin, St. Lucie, Brevard, Indian River,
Palm Beach and Broward Counties in southeastern Florida, the Orlando, Florida metropolitan
statistical area, as well as in more rural competitive counties in the Lake Okeechobee, Florida
region. Our future growth and success will depend on our ability to compete effectively in these
markets. We compete for loans, deposits and other financial services in geographic markets with
other local, regional and national commercial banks, thrifts, credit unions, mortgage lenders, and
securities and insurance brokerage firms. Many of our competitors offer products and services
different from us, and have substantially greater resources, name recognition and market presence
than we do, which benefits them in attracting business. Larger competitors may be able to price
loans and deposits more aggressively than we can, and have broader customer and geographic bases to
draw upon.
The soundness of other financial institutions could adversely affect us.
Our ability to engage in routine funding and other transactions could be adversely affected by
the actions and commercial soundness of other financial institutions. Financial services
institutions are interrelated as a result of trading, clearing, counterparty or other
relationships. As a result, defaults by, or even rumors or questions about, one or more financial
services institutions, or the financial services industry generally, have led to market-wide
liquidity problems, losses of depositor, creditor and counterparty confidence and could lead to
losses or defaults by us or by other institutions. We could experience increases in deposits and
assets as a result of other banks' difficulties or failure, which would increase the capital we
need to support such growth.
We operate in a heavily regulated environment.
We and our subsidiaries are regulated by several regulators, including the Federal Reserve,
the OCC, the SEC, the FDIC and FINRA, and since December 2008, the Treasury. Our success is
affected by state and federal regulations affecting banks and bank holding companies, and the
securities markets and securities and insurance
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regulators. Banking regulations are primarily intended to protect depositors, not
shareholders. The financial services industry also is subject to frequent legislative and
regulatory changes and proposed changes, the effects of which cannot be predicted. Federal bank
regulatory agencies and the Treasury, as well as the Congress and the President, are evaluating the
regulation of banks, other financial services providers and the financial markets and such changes,
if any, could require us to maintain more capital, liquidity and risk management which could
adversely affect our growth, profitability and financial condition.
We are subject to internal control reporting requirements that increase compliance costs and
failure to comply timely could adversely affect our reputation and the value of our securities.
We are required to comply with various corporate governance and financial reporting
requirements under the Sarbanes-Oxley Act of 2002, as well as rules and regulations adopted by the
SEC, the Public Company Accounting Oversight Board and Nasdaq. In particular, we are required to
include management and independent auditor reports on internal controls as part of our annual
report on Form 10-K pursuant to Section 404 of the Sarbanes-Oxley Act. We expect to continue to
spend significant amounts of time and money on compliance with these rules. The SEC also has
proposed a number of new rules or regulations requiring additional disclosure, such as lower-level
employee compensation. Our failure to track and comply with the various rules may materially
adversely affect our reputation, ability to obtain the necessary certifications to financial
statements, and the value of our securities.
Technological changes affect our business, and we may have fewer resources than many competitors to
invest in technological improvements.
The financial services industry is undergoing rapid technological changes with frequent
introductions of new technology-driven products and services. In addition to serving clients
better, the effective use of technology may increase efficiency and may enable financial
institutions to reduce costs. Our future success will depend, in part, upon our ability to use
technology to provide products and services that provide convenience to customers and to create
additional efficiencies in operations. We may need to make significant additional capital
investments in technology in the future, and we may not be able to effectively implement new
technology-driven products and services. Many competitors have substantially greater resources to
invest in technological improvements.
The anti-takeover provisions in our Articles of Incorporation and under Florida law may make it
more difficult for takeover attempts that have not been approved by our board of directors.
Florida law and our Articles of Incorporation include anti-takeover provisions, such as provisions that
encourage persons seeking to acquire control of us to consult with our board, and which enable the
board to negotiate and give consideration on behalf of us and our shareholders and other
constituencies to the merits of any offer made. Such provisions, as well as supermajority voting
and quorum requirements and a staggered board of directors, may make any takeover attempts and
other acquisitions of interests in us, by means of a tender offer, open market purchase, a proxy
fight or otherwise, that have not been approved by our board of directors more difficult and more
expensive. These provisions may discourage possible business combinations that a majority of our
shareholders may believe to be desirable and beneficial. As a result, our board of directors may
decide not to pursue transactions that would otherwise be in your best interests as a holder of our
common stock.
Hurricanes or other adverse weather events would negatively affect our local economies or disrupt
our operations, which would have an adverse effect on our business or results of operations.
Our market areas in Florida are susceptible to hurricanes and tropical storms and related
flooding and wind damage. Such weather events can disrupt operations, result in damage to
properties and negatively affect the local economies in the markets where they operate. We cannot
predict whether or to what extent damage that may be caused by future hurricanes will affect its
operations or the economies in our current or future market areas, but such weather events could
result in a decline in loan originations, a decline in the value or destruction of properties
securing our loans and an increase in the delinquencies, foreclosures or loan losses. Our business
or results of operations may be adversely affected by these and other negative effects of future
hurricanes or tropical storms, including flooding and wind damage. Many of our customers have
incurred significantly higher property and
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casualty insurance premiums on their properties located in our markets, which may adversely
affect real estate sales and values in our markets.
Future acquisitions and expansion activities may disrupt our business, dilute existing shareholders
and adversely affect our operating results.
We regularly evaluate potential acquisitions and expansion opportunities. To the extent that
we grow through acquisitions, we cannot assure you that we will be able to adequately or profitably
manage this growth. Acquiring other banks, branches or businesses, as well as other geographic and
product expansion activities, involve various risks including:
•
risks of unknown or contingent liabilities;
•
unanticipated costs and delays;
•
risks that acquired new businesses do not perform consistent with our growth and
profitability expectations;
•
risks of entering new markets or product areas where we have limited experience;
•
risks that growth will strain our infrastructure, staff, internal controls and
management, which may require additional personnel, time and expenditures;
•
exposure to potential asset quality issues with acquired institutions;
•
difficulties, expenses and delays of integrating the operations and personnel of
acquired institutions, and start-up delays and costs of other expansion activities;
•
potential disruptions to our business;
•
possible loss of key employees and customers of acquired institutions;
•
potential short-term decreases in profitability; and
•
diversion of our management's time and attention from our existing operations and
business.
Attractive acquisition opportunities may not be available to us in the future.
While we seek continued organic growth, as our earnings and capital position improve, we may
consider the acquisition of other businesses. We expect that other banking and financial
companies, many of which have significantly greater resources, will compete with us to acquire
financial services businesses. This competition could increase prices for potential acquisitions
that we believe are attractive. Also, acquisitions are subject to various regulatory approvals.
If we fail to receive the appropriate regulatory approvals, we will not be able to consummate an
acquisition that we believe is in our best interests. Among other things, our regulators consider
our capital, liquidity, profitability, regulatory compliance and levels of goodwill and intangibles
when considering acquisition and expansion proposals. Any acquisition could be dilutive to our
earnings and shareholders' equity per share of our common stock.
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Risks Related to Our Common Stock
We may issue additional shares of common or preferred stock securities, which may dilute the
interests of our shareholders and may adversely affect the market price of our common stock.
We are currently authorized to issue up to 65 million shares of common stock, of which 19,166,327 shares are currently outstanding and up to 4 million shares of preferred stock, of
which 2,000 shares are outstanding. Our board of directors has authority, without action or vote
of the shareholders, to issue all or part of the authorized but unissued shares and to establish
the terms of any series of preferred stock. These authorized but unissued shares could be issued
on terms or in circumstances that could dilute the interests of other shareholders.
The Series A Preferred Stock diminishes the net income available to our common shareholders and
earnings per common share, and the Warrant we issued to Treasury may be dilutive to holders of our
common stock.
The dividends accrued and the accretion on discount on the Series A Preferred Stock reduce the
net income available to common shareholders and our earnings per common share. The Series A
Preferred Stock is cumulative, which means that any dividends not declared or paid will accumulate
and will be payable when we resume paying dividends. Shares of Series A Preferred Stock will also
receive preferential treatment in the event of liquidation, dissolution or winding up of Seacoast.
Additionally, the ownership interest of the existing holders of our common stock will be diluted to
the extent the Warrant is exercised. The shares of common stock underlying the Warrant represent
approximately 6.16% of the shares of our common stock outstanding as of March 31, 2009 (including
the shares issuable upon exercise of the Warrant in our total outstanding shares and not including
the 50% reduction in the number of shares subject to this Warrant which we currently expect would occur if we raise at least $50.0 million in one or more qualified equity offerings prior to December 31, 2009). Although Treasury has agreed not to vote any of the shares of common stock it receives
upon exercise of the Warrant, a transferee of any portion of the Warrant or of any shares of common
stock acquired upon exercise of the Warrant is not bound by this restriction.
Holders of the Series A Preferred Stock have certain voting rights that may adversely affect our
common shareholders, and the holders of shares of our Series A Preferred Stock may have different
interests from, and vote their shares in a manner deemed adverse to, our common shareholders.
In the event that we fail to pay dividends on the Series A Preferred Stock for an aggregate of
at least six quarterly dividend periods (whether or not consecutive) the Treasury will have the
right to appoint two directors to our board of directors until all accrued but unpaid dividends
have been paid; otherwise, except as required by law, holders of the Series A Preferred Stock have
limited voting rights. So long as shares of the Series A Preferred Stock are outstanding, in
addition to any other vote or consent of shareholders required by law or our amended and restated
charter, the vote or consent of holders owning at least
66
2
/
3
% of the shares of Series A Preferred
Stock outstanding is required for:
•
any authorization or issuance of shares ranking senior to the Series A Preferred
Stock;
•
any amendment to the rights of the Series A Preferred Stock so as to adversely
affect the rights, preferences, privileges or voting power of the Series A Preferred
Stock; or
•
consummation of any merger, share exchange or similar transaction unless the shares
of Series A Preferred Stock remain outstanding, or if we are not the surviving entity
in such transaction, are converted into or exchanged for preference securities of the
surviving entity and the shares of Series A Preferred Stock remaining outstanding or
such preference securities have such rights, preferences, privileges and voting power
as are not materially less favorable to the holders than the rights, preferences,
privileges and voting power of the shares of Series A Preferred Stock. Holders of
Series A Preferred Stock could block the foregoing transaction, even where considered
desirable by, or in the best interests of, holders of our common stock.
16
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The holders of Series A Preferred Stock, including the Treasury, may have different interests
from the holders of our common stock, and could vote to disapprove transactions that are favored
by, or are in the best interests of, our common shareholders.
17
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USE OF PROCEEDS
We
will receive net proceeds of approximately $     million from the sale of shares of our common
stock in this offering, after deducting the underwriting discount and estimated offering expenses
of approximately $     payable by us, based on an assumed public offering price of $     per share, the
closing price on      , 2009. If the underwriters' option to purchase additional shares is
exercised in full, our net proceeds will be approximately $    million.
We intend to use the net proceeds of this offering to add capital to Seacoast National and for general corporate purposes.
18
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PRICE RANGE OF COMMON STOCK
Our common stock is listed on the Nasdaq Global Select Market under the symbol "SBCF." The
table below sets forth the high and low sale prices per share of our common stock on the Nasdaq
Global Select Market and the dividends paid per share of our common stock for the indicated
periods. As of June 18, 2009, we had approximately 19,166,327 shares of common stock issued and outstanding, held by approximately 1,436 record holders.
Sale Price Per Share of
Quarterly Dividends
Seacoast Common Stock
Declared Per Share of
High
Low
Seacoast Common Stock
2007
First Quarter
$
24.650
$
22.220
$
0.16
Second Quarter
25.360
20.270
0.16
Third Quarter
22.300
15.620
0.16
Fourth Quarter
19.570
10.280
0.16
2008
First Quarter
$
12.460
$
7.670
$
0.16
Second Quarter
11.200
7.760
0.16
Third Quarter
12.570
7.310
0.01
Fourth Quarter
11.000
4.370
0.01
2009
First Quarter
$
6.870
$
2.170
$
0.01
Second Quarter (through June 18, 2009)
4.350
2.530
*
*
Dividends were suspended as of May 19, 2009.
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DIVIDEND POLICY
Dividends from Seacoast National historically have been our primary source of funds to pay
dividends on our common stock. Under the National Bank Act, national banks may in any calendar
year, without the approval of the OCC, pay dividends to the extent of net profits for that year,
plus retained net profits for the preceding two years (less any required transfers to surplus).
The need to maintain adequate capital in Seacoast National also limits dividends that may be paid
to us. Beginning in the third quarter of 2008, we reduced our dividend per share of our common
stock to $0.01 and, as of May 19, 2009, we have suspended the payment of dividends, as described
below. As of December 31, 2008, Seacoast National cannot pay us any dividends without prior OCC
approval, and in all events must maintain appropriate capital that meets regulatory requirements
applicable to us.
The OCC and the Federal Reserve have policies that encourage banks and bank holding companies
to pay dividends from current earnings, and have the general authority to limit the dividends paid
by national banks and bank holding companies, respectively, if such payment may be deemed to
constitute an unsafe or unsound practice. If, in the particular circumstances, either of these
federal regulators determine that the payment of dividends would constitute an unsafe or unsound
banking practice, either the OCC or the Federal Reserve may, among other things, issue a cease and
desist order prohibiting the payment of dividends by Seacoast National or us, respectively. Under
a recently adopted Federal Reserve policy, the board of directors of a bank holding company must
consider different factors to ensure that its dividend level is prudent relative to the
organization's financial position and is not based on overly optimistic earnings scenarios such as
any potential events that may occur before the payment date that could affect its ability to pay,
while still maintaining a strong financial position. As a general matter, the Federal Reserve has
indicated that the board of directors of a bank holding company, such as Seacoast, should consult
with the Federal Reserve and eliminate, defer, or significantly reduce the bank holding company's
dividends if: (i) its net income available to shareholders for the past four quarters, net of
dividends previously paid during that period, is not sufficient to fully fund the dividends; (ii)
its prospective rate of earnings retention is not consistent with the its capital needs and overall
current and prospective financial condition; or (iii) it will not meet, or is in danger of not
meeting, its minimum regulatory capital adequacy ratios.
As a result of our participation in the TARP CPP program, additional restrictions have been
imposed on our ability to declare or increase dividends on shares of our common stock, including a
restriction on paying quarterly dividends above $0.01 per share. Specifically, we are unable to
declare dividend payments on our common, junior preferred or
pari passu
preferred shares if we are
in arrears on the dividends on the Series A Preferred Stock. Further, without the Treasury's
approval, we are not permitted to increase dividends on our common stock above $0.01 per share
until December 19, 2011 unless all of the Series A Preferred Stock has been redeemed or transferred
by the Treasury. In addition, we cannot repurchase shares of common stock or use proceeds from the
Series A Preferred Stock to repurchase trust preferred securities. Consent of the Treasury
generally is required for us to make any stock repurchase until December 19, 2011 unless all of the
Series A Preferred Stock has been redeemed or transferred by the Treasury to a third party.
Further, our common, junior preferred or
pari passu
preferred shares may not be repurchased if we
have not declared and paid all Series A Preferred Stock dividends.
On May 19, 2009, our board of directors determined to suspend regular quarterly cash dividends
on our outstanding common stock and Series A Preferred Stock pursuant to a request from the Federal
Reserve as a result of recently adopted Federal Reserve policies related to dividends and other
distributions. Dividends will be suspended until such time as dividends are allowed by
the Federal Reserve. The Federal
Reserve has a policy that it does not want bank holding companies that have TARP CPP capital to use
TARP funds to pay dividends on common or preferred stock or to make distributions on our
outstanding trust preferred securities.
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Table of Contents
CAPITALIZATION
The following table sets forth our cash and cash equivalents, our capitalization, our per
common share book values, and our regulatory capital ratios, each as of March 31, 2009 and to give
effect to the issuance of the common stock offered hereby, assuming that                shares of our common stock are sold in this offering at $      per share
and that the net proceeds thereof are approximately $      million after deducting underwriting
discounts and commissions and our estimated expenses, based on an assumed public offering
price of $      per share, the closing price on           , 2009. If the underwriters' over-allotment option is exercised in full, cash and cash
equivalents will increase to $      million.
As of March 31, 2009
Actual
As Adjusted(1)
(Dollars in thousands, except per share
data and ratios)
Cash and cash equivalents
$
149,491
Total liabilities
$
2,095,227
Shareholders' equity
Preferred stock, authorized 4,000,000
shares, par value $0.10 per share; issued
and outstanding 2,000
$
44,100
Warrant for purchase of shares of common
stock at $6.36 per share
5,900
Common stock, authorized 65,000,000
shares, par value $0.10 per share; issued
and outstanding 19,258,632, actual; issued
and outstanding shares, as
adjusted
1,915
Other shareholders' equity
161,791
Total shareholders' equity
$
2,308,933
Total capitalization
$
2,308,933
Per common stock
Common book value per share
$
8.86
Tangible common book value per share
5.99
Regulatory capital ratios:
For the Company:
Tier 1 leverage ratio
9.13
%
Tier 1 risk-based capital ratio
12.71
Total risk-based capital ratio
14.00
For the Bank:
Tier 1 leverage ratio
8.11
%
Tier 1 risk-based capital ratio
11.31
Total risk-based capital ratio
12.57
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DESCRIPTION OF CAPITAL STOCK
The following description of shares of our common stock, par value $0.10 per share, or "common
stock," is a summary only and is subject to applicable provisions of the Florida Business
Corporation Act, as amended, which we refer to as the Florida Act, and to our Articles of
Incorporation and our amended and restated bylaws. You should refer to, and read this summary
together with, our Articles of Incorporation and amended and restated bylaws to review all of the
terms of our capital stock. Our Articles of Incorporation are incorporated by reference as
exhibits to our Annual Report on Form 10-K for the year ended December 31, 2008 filed with the SEC,
as amended.
Common Stock
General
Our Articles of Incorporation provide that we may issue up to 65 million shares of common
stock, par value of $0.10 per share. As of June 18, 2009, 19,166,327 shares of our common stock
were issued and outstanding. All outstanding shares of our common stock are
fully paid and nonassessable. Our common stock is listed on the Nasdaq Global Select Market under
the symbol "SBCF."
Voting Rights
Each outstanding share of our common stock entitles the holder to one vote on all matters
submitted to a vote of shareholders, including the election of directors. The holders of our
common stock possess exclusive voting power, except as otherwise provided by law or by articles of
amendment establishing any series of our preferred stock, including the voting rights held by
holders of our Series A Preferred Stock.
There is no cumulative voting in the election of directors, which means that the holders of a
plurality of our outstanding shares of common stock can elect all of the directors then standing
for election. When a quorum is present at any meeting, questions brought before the meeting will
be decided by the vote of the holders of a majority of the shares present and voting on such
matter, whether in person or by proxy, except when the meeting concerns matters requiring the vote
of the holders of a majority of all outstanding shares under applicable Florida law. Our Articles
of Incorporation provide certain anti-takeover provisions that require super-majority votes, which
may limit shareholders' rights to effect a change in control as described under the section below
entitled
Dividends, Liquidation and Other Rights
Holders of shares of common stock are entitled to receive dividends only when, as and if
approved by our board of directors from funds legally available for the payment of dividends, after
payment of dividends on our outstanding series of preferred stock. Our shareholders are entitled
to share ratably in our assets legally available for distribution to our shareholders in the event
of our liquidation, dissolution or winding up, voluntarily or involuntarily, after payment of, or
adequate provision for, all of our known debts and liabilities and of any preferences of Series A
Preferred Stock or any other series of our preferred stock that may be outstanding in the future.
These rights are subject to the preferential rights of any other series of our preferred stock that
may then be outstanding.
Holders of shares of our common stock have no preference, conversion, exchange, sinking fund
or redemption rights and have no preemptive rights to subscribe for any of our securities. Our
board of directors may issue additional shares of our common stock or rights to purchase shares of
our common stock without the approval of our shareholders.
Transfer Agent and Registrar
Subject to compliance with applicable federal and state securities laws, our common stock may
be transferred without any restrictions or limitations. The transfer agent and registrar for
shares of our common stock is Continental Stock Transfer and Trust Company.
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Preferred Stock
We are authorized to issue 4 million shares of preferred stock, $0.10 par value per share,
2,000 shares of which have been designated as Fixed Rate Cumulative Perpetual Preferred Stock,
Series A, or Series A Preferred Stock, all of which are issued and outstanding as of the date of
this prospectus. We do not have other preferred stock outstanding.
Our board of directors may fix the voting powers, designations, preferences, rights,
qualifications, limitations and restrictions of any other series of preferred stock.
Series A Preferred Stock
The Series A Preferred Stock constitutes a series of our perpetual, cumulative, preferred
stock, consisting of 2,000 shares, par value $0.10 per share, having a liquidation preference
amount of $25,000 per share. The Series A Preferred Stock has no maturity date. We issued the
shares of Series A Preferred Stock and the Warrant to Treasury on December 19, 2008 in connection
with the TARP Capital Purchase Program for an aggregate purchase price of $50.0 million. Pursuant
to the Purchase Agreement between us and Treasury, we have agreed, if requested by Treasury, to
enter into a depositary arrangement pursuant to which the shares of Series A Preferred Stock may be
deposited and depositary shares, each representing a fraction of a share of Series A Preferred
Stock as specified by Treasury, may be issued. The Series A Preferred Stock and Warrant qualify as
Tier 1 capital for regulatory purposes.
Dividends
Rate
. Dividends on the Series A Preferred Stock are payable quarterly in arrears, when, as
and if authorized and declared by our board of directors out of legally available funds, on a
cumulative basis on the $25,000 per share liquidation preference amount plus the amount of accrued
and unpaid dividends for any prior dividend periods, at a rate of (i) 5% per annum, from the
original issuance date to but excluding the first day of the first dividend period commencing after
the fifth anniversary of the original issuance date (i.e., 5% per annum from December 19, 2008 to
but excluding February 15, 2014), and (ii) 9% per annum, from and after the first day of the first
dividend period commencing after the fifth anniversary of the original issuance date (i.e., 9% per
annum on and after February 15, 2014). Dividends are payable quarterly in arrears on February 15,
May 15, August 15 and November 15 of each year, commencing on February 15, 2009. Each dividend
will be payable to holders of record as they appear on our stock register on the applicable record
date, which will be the 15th calendar day immediately preceding the related dividend payment date
(whether or not a business day), or such other record date determined by our board of directors
that is not more than 60 nor less than ten days prior to the related dividend payment date. Each
period from and including a dividend payment date (or the date of the issuance of the Series A
Preferred Stock) to but excluding the following dividend payment date is referred to as a "dividend
period." Dividends payable for each dividend period are computed on the basis of a 360-day year
consisting of twelve 30-day months. If a scheduled dividend payment date falls on a day that is
not a business day, the dividend will be paid on the next business day as if it were paid on the
scheduled dividend payment date, and no interest or other additional amount will accrue on the
dividend. The term "business day" means any day except Saturday, Sunday and any day on which
banking institutions in the State of New York generally are authorized or required by law or other
governmental actions to close.
Dividends on the Series A Preferred Stock will be cumulative
. If for any reason our board of
directors does not declare a dividend on the Series A Preferred Stock for a particular dividend
period, or if the board of directors declares less than a full dividend, we will remain obligated
to pay the unpaid portion of the dividend for that period and the unpaid dividend will compound on
each subsequent dividend date (meaning that dividends for future dividend periods will accrue on
any unpaid dividend amounts for prior dividend periods).
We are not obligated to pay holders of the Series A Preferred Stock any dividend in excess of
the dividends on the Series A Preferred Stock that are payable as described above. There is no
sinking fund with respect to dividends on the Series A Preferred Stock.
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Table of Contents
Priority of Dividends
. So long as the Series A Preferred Stock remains outstanding, we may
not declare or pay a dividend or other distribution on our common stock or any other shares of
Junior Stock (other than dividends payable solely in common stock) or Parity Stock (other than
dividends paid on a pro rata basis with the Series A Preferred Stock), and we generally may not
directly or indirectly purchase, redeem or otherwise acquire any shares of common stock, Junior
Stock or Parity Stock unless all accrued and unpaid dividends on the Series A Preferred Stock for
all past dividend periods are paid in full.
"Junior Stock" means our common stock and any other class or series of our stock the terms of
which expressly provide that it ranks junior to the Series A Preferred Stock as to dividend rights
and/or as to rights on liquidation, dissolution or winding up of Seacoast. We currently have no
outstanding class or series of preferred stock constituting Junior Stock.
"Parity Stock" means any class or series of our stock, other than the Series A Preferred
Stock, the terms of which do not expressly provide that such class or series will rank senior or
junior to the Series A Preferred Stock as to dividend rights and/or as to rights on liquidation,
dissolution or winding up of Seacoast, in each case without regard to whether dividends accrue
cumulatively or non-cumulatively. We currently have no outstanding class or series of stock
constituting Parity Stock.
Liquidation Rights
In the event of any voluntary or involuntary liquidation, dissolution or winding up of the
affairs of Seacoast, holders of the Series A Preferred Stock will be entitled to receive for each
share of Series A Preferred Stock, out of the assets of Seacoast or proceeds available for
distribution to our shareholders, subject to any rights of our creditors, before any distribution
of assets or proceeds is made to or set aside for the holders of our common stock and any other
class or series of our stock ranking junior to the Series A Preferred Stock, payment of an amount
equal to the sum of (i) the $25,000 liquidation preference amount per share and (ii) the amount of
any accrued and unpaid dividends on the Series A Preferred Stock (including dividends accrued on
any unpaid dividends). To the extent the assets or proceeds available for distribution to
shareholders are not sufficient to fully pay the liquidation payments owing to the holders of the
Series A Preferred Stock and the holders of any other class or series of our stock ranking equally
with the Series A Preferred Stock, the holders of the Series A Preferred Stock and such other stock
will share ratably in the distribution.
For purposes of the liquidation rights of the Series A Preferred Stock, neither a merger or
consolidation of Seacoast with another entity nor a sale, lease or exchange of all or substantially
all of Seacoast's assets will constitute a liquidation, dissolution or winding up of the affairs of
Seacoast.
Redemptions and Repurchases
The Series A Preferred Stock is redeemable at our option, subject to prior approval by the
Board of Governors of the Federal Reserve System or its delegee (the "Federal Reserve") and/or
Treasury in whole or in part at a redemption price equal to 100% of the liquidation preference
amount of $25,000 per share plus any accrued and unpaid dividends to but excluding the date of
redemption (including dividends accrued on any unpaid dividends), provided that any declared but
unpaid dividend payable on a redemption date that occurs subsequent to the record date for the
dividend will be payable to the holder of record of the redeemed shares on the dividend record
date, and provided further that the Series A Preferred Stock may be redeemed prior to the first
dividend payment date falling after the third anniversary of the original issuance date (i.e.,
prior to February 15, 2012) only if (i) we have raised aggregate gross proceeds in one or more
Qualified Equity Offerings of at least the Minimum Amount and (ii) the aggregate redemption price
of the Series A Preferred Stock does not exceed the aggregate net proceeds from such Qualified
Equity Offerings by us and any successor. The "Minimum Amount" means $12,500,000 plus, in the
event we are succeeded in a business combination by another entity which also participated in the
TARP Capital Purchase Program, 25% of the aggregate liquidation preference amount of the preferred
stock issued by that entity to Treasury. A "Qualified Equity Offering" is defined as the sale for
cash by Seacoast (or its successor) of preferred stock or common stock that qualifies as Tier 1
capital under applicable regulatory capital guidelines.
To exercise the redemption right described above, we must give notice of the redemption to the
holders of record of the Series A Preferred Stock by first class mail, not less than 30 days and
not more than 60 days before the
24
Table of Contents
date of redemption. Each notice of redemption given to a holder of Series A Preferred Stock
must state: (i) the redemption date; (ii) the number of shares of Series A Preferred Stock to be
redeemed and, if less than all the shares held by such holder are to be redeemed, the number of
such shares to be redeemed from such holder; (iii) the redemption price; and (iv) the place or
places where certificates for such shares are to be surrendered for payment of the redemption
price. In the case of a partial redemption of the Series A Preferred Stock, the shares to be
redeemed will be selected either pro rata or in such other manner as our board of directors
determines to be fair and equitable.
The Purchase Agreement between us and Treasury provides that so long as Treasury continues to
own any shares of Series A Preferred Stock, we may not repurchase any shares of Series A Preferred
Stock from any other holder of such shares unless we offer to repurchase a ratable portion of the
shares of Series A Preferred Stock then held by Treasury on the same terms and conditions.
Shares of Series A Preferred Stock that we redeem, repurchase or otherwise acquire will revert
to authorized but unissued shares of preferred stock, which may then be reissued by us as any
series of preferred stock other than the Series A Preferred Stock.
No Conversion Rights
Holders of the Series A Preferred Stock have no right to exchange or convert their shares into
common stock or any other securities.
Voting Rights
The holders of the Series A Preferred Stock do not have voting rights other than those
described below, except to the extent specifically required by Florida law.
Whenever dividends have not been paid on the Series A Preferred Stock for six or more
quarterly dividend periods, whether or not consecutive, the authorized number of directors of
Seacoast will automatically increase by two and the holders of the Series A Preferred Stock will
have the right, with the holders of shares of any other classes or series of Voting Parity Stock
outstanding at the time, voting together as a class, to elect two directors (the "Preferred
Directors") to fill such newly created directorships at our next annual meeting of shareholders (or
at a special meeting called for that purpose prior to the next annual meeting) and at each
subsequent annual meeting of shareholders until all accrued and unpaid dividends for all past
dividend periods on all outstanding shares of Series A Preferred Stock have been paid in full at
which time this right will terminate with respect to the Series A Preferred Stock, subject to
revesting in the event of each and every subsequent default by us as described above.
No person may be elected as a Preferred Director who would cause us to violate any corporate
governance requirements of any securities exchange or other trading facility on which our
securities may then be listed or traded that listed or traded companies must have a majority of
independent directors.
Upon any termination of the right of the holders of the Series A Preferred Stock and Voting
Parity Stock as a class to vote for directors as described above, the Preferred Directors will
cease to be qualified as directors, the terms of office of all Preferred Directors then in office
will terminate immediately and the authorized number of directors will be reduced by the number of
Preferred Directors which had been elected by the holders of the Series A Preferred Stock and the
Voting Parity Stock. Any Preferred Director may be removed at any time, with or without cause, and
any vacancy created by such a removal may be filled, only by the affirmative vote of the holders a
majority of the outstanding shares of Series A Preferred Stock voting separately as a class
together with the holders of shares of Voting Parity Stock, to the extent the voting rights of such
holders described above are then exercisable. If the office of any Preferred Director becomes
vacant for any reason other than removal from office, the remaining Preferred Director may choose a
successor who will hold office for the unexpired term of the office in which the vacancy occurred.
The term "Voting Parity Stock" means with regard to any matter as to which the holders of the
Series A Preferred Stock are entitled to vote, any series of Parity Stock (as defined under
"—Dividends-Priority of
25
Table of Contents
Dividends") upon which voting rights similar to those of the Series A Preferred Stock have
been conferred and are exercisable with respect to such matter. We currently have no outstanding
shares of Voting Parity Stock.
If holders of the Series A Preferred Stock obtain the right to elect two directors and if the
Federal Reserve deems the Series A Preferred Stock a class of "voting securities," (a) any bank
holding company that is a holder may be required to obtain the approval of the Federal Reserve to
acquire more than 5% of the Series A Preferred Stock and (b) any person may be required to obtain
the approval of the Federal Reserve to acquire or retain 10% or more of the then outstanding shares
of Series A Preferred Stock.
In addition to any other vote or consent required by Florida law or by our Articles of
Incorporation, the vote or consent of the holders of at least 66
2
/
3
% of the outstanding shares of
Series A Preferred Stock, voting as a separate class, is required in order to do the following:
•
amend our Articles of Incorporation to authorize or create or increase the
authorized amount of, or any issuance of, any shares of, or any securities convertible
into or exchangeable or exercisable for shares of, any class or series of stock ranking
senior to the Series A Preferred Stock with respect to the payment of dividends and/or
the distribution of assets on any liquidation, dissolution or winding up of Seacoast;
or
•
amend our Articles of Incorporation in a way that adversely affects the rights,
preferences, privileges or voting powers of the Series A Preferred Stock; or
•
consummate a binding share exchange or reclassification involving the Series A
Preferred Stock or a merger or consolidation of Seacoast with another entity, unless
(i) the shares of Series A Preferred Stock remain outstanding or, in the case of a
merger or consolidation in which Seacoast is not the surviving or resulting entity, are
converted into or exchanged for preference securities of the surviving or resulting
entity or its ultimate parent, and (ii) the shares of Series A Preferred Stock
remaining outstanding or such preference securities, have such rights, preferences,
privileges, voting powers, limitations and restrictions, taken as a whole, as are not
materially less favorable than the rights, preferences, privileges, voting powers,
limitations and restrictions of the Series A Preferred Stock prior to consummation of
the transaction, taken as a whole;
provided, however,
that (1) any increase in the amount of our authorized but unissued shares of
preferred stock, and (2) the creation and issuance, or an increase in the authorized or issued
amount, of any other series of preferred stock, or any securities convertible into or exchangeable
or exercisable for any other series of preferred stock, ranking equally with and/or junior to the
Series A Preferred Stock with respect to the payment of dividends, whether such dividends are
cumulative or non-cumulative and the distribution of assets upon our liquidation, dissolution or
winding up, will not be deemed to adversely affect the rights, preferences, privileges or voting
powers of the Series A Preferred Stock and will not require the vote or consent of the holders of
the Series A Preferred Stock.
To the extent holders of the Series A Preferred Stock are entitled to vote, holders of shares
of the Series A Preferred Stock will be entitled to one vote for each share then held.
The voting provisions described above will not apply if, at or prior to the time when the vote
or consent of the holders of the Series A Preferred Stock would otherwise be required, all
outstanding shares of the Series A Preferred Stock have been redeemed by us or called for
redemption upon proper notice and sufficient funds have been set aside by us for the benefit of the
holders of Series A Preferred Stock to effect the redemption.
Treasury Warrant
We issued a Warrant to the Treasury on December 19, 2008 concurrent with our sale to Treasury
of 2,000 shares of Series A Preferred Stock pursuant to the TARP Capital Purchase Program.
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General
The Warrant gives the holder the right to initially purchase up to 1,179,245 shares of our
common stock at an exercise price of $6.36 per share. Subject to the limitations on exercise to
which Treasury is subject described under "—Transferability," the Warrant is immediately
exercisable and expires on December 19, 2018. The exercise price may be paid (i) by having us
withhold from the shares of common stock that would otherwise be issued to the warrant holder upon
exercise, a number of shares of common stock having a market value equal to the aggregate exercise
price or (ii) if both we and the warrant holder consent, in cash.
Possible Reduction in Number of Shares
If we (or any successor to us by a business combination) complete one or more Qualified Equity
Offerings (as defined under "Description of Series A Preferred Stock—Redemption and Repurchases")
prior to December 31, 2009 resulting in aggregate gross proceeds of at least $50.0 million, the
number of shares of common stock underlying the Warrant then held by Treasury will be reduced by
50%. The number of shares subject to the
Warrant are subject to further adjustment as described below under "—Other Adjustments."
Transferability
The Warrant is not subject to any restrictions on transfer; however, Treasury may not transfer
or exercise the Warrant with respect to more than one-half of the shares underlying the Warrant
until the earlier of (i) the date on which we (or any successor to us by a business combination)
have received aggregate gross proceeds of at least $50.0 million from one or more Qualified Equity
Offerings (including those by any successor to us by a business combination) and (ii) December 31,
2009.
Voting of Warrant Shares
Treasury has agreed that it will not vote any of the shares of common stock that it acquires
upon exercise of the Warrant. This restriction does not apply to any other person who acquires any
portion of the Warrant, or the shares of common stock underlying the Warrant, from Treasury.
Other Adjustments
The exercise price of the Warrant and the number of shares underlying the Warrant
automatically adjust upon the following events:
•
any stock split, stock dividend, subdivision, reclassification or combination of our
common stock;
•
until the earlier of (i) the date on which Treasury no longer holds any portion of
the Warrant and (ii) December 19, 2011, issuance of our common stock (or securities
convertible into our common stock) for consideration (or having a conversion price per
share) less than 90% of then current market value, except for issuances in connection
with benefit plans, business acquisitions and public or other broadly marketed
offerings;
•
a pro rata repurchase by us of our common stock; or
•
a determination by our board of directors to make an adjustment to the anti-dilution
provisions as are reasonably necessary, in the good faith opinion of the board, to
protect the purchase rights of the warrant holders.
In addition, if we declare any dividends or distributions on our common stock other than our
historical, ordinary cash dividends, dividends paid in our common stock and other dividends or
distributions covered by the first bullet point above, the exercise price of the Warrant will be
adjusted to reflect such distribution.
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In the event of any merger, consolidation, or other business combination to which we are a
party, the Warrant holder's right to receive shares of our common stock upon exercise of the
Warrant will be converted into the right to exercise the Warrant to acquire the number of shares of
stock or other securities or property (including cash) which the common stock issuable upon
exercise of the Warrant immediately prior to such business combination would have been entitled to
receive upon consummation of the business combination. For purposes of the provision described in
the preceding sentence, if the holders of our common stock have the right to elect the amount or
type of consideration to be received by them in the business combination, then the consideration
that the Warrant holder will be entitled to receive upon exercise will be the amount and type of
consideration received by a majority of the holders of the common stock who affirmatively make an
election.
No Rights as Shareholders
The Warrant does not entitle its holder to any of the rights of a shareholder of Seacoast.
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ANTI-TAKEOVER EFFECTS OF CERTAIN ARTICLES OF INCORPORATION PROVISIONS
Our Articles of Incorporation contain certain provisions that make it more difficult to
acquire control of us by means of a tender offer, open market purchase, a proxy fight or otherwise.
These provisions are designed to encourage persons seeking to acquire control of us to negotiate
with our directors. We believe that, as a general rule, the interests of our shareholders would be
best served if any change in control results from negotiations with our directors.
Our Articles of Incorporation provide for a classified board to which approximately one-third
of our board of directors is elected each year at our annual meeting of shareholders. Accordingly,
our directors serve three-year terms rather than one-year terms. The classification of our board
of directors has the effect of making it more difficult for shareholders to change the composition
of our board of directors. At least two annual meetings of shareholders, instead of one, will
generally be required to effect a change in a majority of our board of directors. Such a delay may
help ensure that our directors, if confronted by a holder attempting to force a proxy contest, a
tender or exchange offer, or an extraordinary corporate transaction, would have sufficient time to
review the proposal as well as any available alternatives to the proposal and to act in what they
believe to be the best interests of our shareholders. The classification provisions apply to every
election of directors, however, regardless of whether a change in the composition of our board of
directors would be beneficial to us and our shareholders and whether or not a majority of our
shareholders believe that such a change would be desirable.
The classification of our board of directors could also have the effect of discouraging a
third party from initiating a proxy contest, making a tender offer or otherwise attempting to
obtain control of us, even though such an attempt might be beneficial to us and our shareholders.
The classification of our board of directors could thus increase the likelihood that incumbent
directors will retain their positions. In addition, because the classification of our board of
directors may discourage accumulations of large blocks of our stock by purchasers whose objective
is to take control of us and remove a majority of our board of directors, the classification of our
board of directors could tend to reduce the likelihood of fluctuations in the market price of our
common stock that might result from accumulations of large blocks of our common stock for such a
purpose. Accordingly, our shareholders could be deprived of certain opportunities to sell their
shares at a higher market price than might otherwise be the case.
Our Articles of Incorporation require the affirmative vote of the holders of not less than
two-thirds of all the shares of our stock outstanding and entitled to vote generally in the
election of directors in addition to the votes required by law or elsewhere in the Articles of
Incorporation, the bylaws or otherwise, to approve: (a) any sale, lease, transfer, purchase and
assumption of all or substantially all of our consolidated assets and/or liabilities, (b) any
merger, consolidation, share exchange or similar transaction of the Company, or any merger of any
significant subsidiary, into or with another person, or (c) any reclassification of securities,
recapitalization or similar transaction that has the effect of increasing other than pro rata with
the other shareholders, the proportionate amount of shares that is beneficially owned by an
Affiliate (as defined in our Articles of Incorporation). Any business combination described above
may instead be approved by the affirmative vote of a majority of all the votes entitled to be cast
on the plan of merger if such business combination is approved and recommended to the shareholders
by (x) the affirmative vote of two-thirds of our board of directors, and (y) a majority of the
Continuing Directors (as defined in our Articles of Incorporation).
Our Articles of Incorporation also contain additional provisions that may make takeover
attempts and other acquisitions of interests in us more difficult where the takeover attempt or
other acquisition has not been approved by our board of directors. These provisions include:
•
A requirement that any change to our Articles of Incorporation relating to the
structure of our board of directors, certain anti-takeover provisions and shareholder
proposals must be approved by the affirmative vote of holders of
two-thirds of the shares outstanding and entitled to vote;
•
A requirement that any change to our bylaws, including any change relating to the
number of directors, must be approved by the affirmative vote of either (a) (i)
two-thirds of our board of directors, and (ii) a majority of the Continuing Directors
(as defined in our Articles of Incorporation) or (b) two-thirds of the shares entitled
to vote generally in the election of directors;
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•
A requirement that shareholders may call a meeting of shareholders on a proposed
issue or issues only upon the receipt by us from the holders of 50% of all shares
entitled to vote on the proposed issue or issues of signed and dated written demands
for the meeting describing the purpose for which it is to be held; and
•
A requirement that a shareholder wishing to submit proposals for a shareholder vote
or nominate directors for election comply with certain procedures, including advanced
notice requirements.
Our Articles of Incorporation provide that, subject to the rights of any holders of our
preferred stock to act by written consent instead of a meeting, shareholder action may be taken
only at an annual meeting or special meeting of the shareholders and may not be taken by written
consent. The Articles of Incorporation also include provisions that make it difficult to replace
directors. Specifically, directors may be removed only for cause and only upon the affirmative
vote at a meeting duly called and held for that purpose upon not less than 30 days' prior written
notice of two-thirds of the shares entitled to vote generally in the election of directors. In
addition, any vacancies on the board of directors for any reason, and any newly created
directorships resulting from any increase in the number of directors, may be filled only by the
board of directors (except if no directors remain on the board, in which case the shareholders may
act to fill the vacant board).
We believe that the power of our board of directors to issue additional authorized but
unissued shares of our common stock or preferred stock without further action by our shareholders,
unless required by applicable law or the rules of any stock exchange or automated quotation system
on which our securities may be listed or traded, will provide us with increased flexibility in
structuring possible future financings and acquisitions and in meeting other needs that might
arise. Our board of directors could authorize and issue a class or series of stock that could,
depending upon the terms of such class or series, delay, defer or prevent a transaction or a change
in control of us that might involve a premium price for holders of our common stock or that our
shareholders otherwise consider to be in their best interest.
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CERTAIN UNITED STATES FEDERAL INCOME TAX
CONSIDERATIONS APPLICABLE TO NON-U.S. HOLDERS
The following is a summary of certain United States federal income tax considerations related
to the purchase, ownership and disposition of our common stock that are applicable to a "non-U.S.
holder" (defined below) of the common stock.
This summary:
•
does not purport to be a complete analysis of all of the potential tax
considerations that may be applicable to an investor as a result of the investor's
particular tax situation;
•
is based on the Internal Revenue Code of 1986, as amended (the "Code"), United
States federal income tax regulations promulgated or proposed under the Code, which we
refer to as the "Treasury Regulations," judicial authority and published rulings and
administrative pronouncements, each as of the date hereof and each of which are subject
to change at any time, possibly with retroactive effect;
•
is applicable only to beneficial owners of common stock who hold their common stock
as a "capital asset," within the meaning of section 1221 of the Code;
•
does not address all aspects of United States federal income taxation that may be
relevant to holders in light of their particular circumstances or who are subject to
special treatment under United States federal income tax laws, including but not
limited to:
•
certain former citizens and long-term residents of the United States;
•
"controlled foreign corporations" and "passive foreign investment companies";
•
partnerships, other pass-through entities and investors in these entities; and
•
investors that expect to receive dividends or realize gain in
connection with the investors' conduct of a United States trade or business,
permanent establishment or fixed base.
•
does not discuss any possible applicability of any United States state or local
taxes, non-United States taxes or any United States federal tax other than the income
tax, including, but not limited to, the federal gift tax and estate tax.
This summary of certain United States federal income tax considerations constitutes neither
tax nor legal advice. Prospective investors are urged to consult their own tax advisors to
determine the specific tax consequences and risks to them of purchasing, holding and disposing of
our common stock, including the application to their particular situation of any United States
federal estate and gift, United States state and local, non-United States and other tax laws and of
any applicable income tax treaty.
Non-U.S. Holder Defined
For purposes of this discussion, a non-U.S. holder is a beneficial holder of our common stock
that is neither a "United States person" nor a partnership or entity or arrangement treated as a
partnership for United States federal income tax purposes. A "United States person" is:
•
an individual citizen or resident of the United States;
•
a corporation, or other entity treated as an association taxable as a corporation,
that is organized in or under the laws of the United States, any state thereof or the
District of Columbia;
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•
an estate the income of which is subject to United States federal income taxation
regardless of its source; or
•
a trust if it (1) is subject to the primary supervision of a court within the United
States and one or more United States persons have the authority to control all
substantial decisions of the trust or (2) has a valid election in effect under
applicable the Treasury Regulations to be treated as a United States person.
If a partnership holds our common stock, then the United States federal income tax treatment
of a partner in that partnership generally will depend on the status of the partner and the
partnership's activities. Partners and partnerships should consult their own tax advisors with
regard to the United States federal income tax treatment of an investment in our common stock.
Distributions
Distributions paid to a non-U.S. holder of our common stock will constitute a "dividend" for
United States federal income tax purposes to the extent paid out of our current or accumulated
earnings and profits, as determined for United States federal income tax purposes. Any
distributions that exceed both our current and accumulated earnings and profits would first
constitute a non-taxable return of capital, which would reduce the holder's basis in our common
stock, but not below zero, and thereafter would be treated as gain from the sale of our common
stock (see "—Sale or Taxable Disposition of Common Stock" below).
Subject to the following paragraphs, dividends on our common stock generally will be subject
to United States federal withholding tax at a 30% gross rate, subject to any exemption or lower
rate as may be specified by an applicable income tax treaty. We may withhold up to 30% of either
(i) the gross amount of the entire distribution, even if the amount of the distribution is greater
than the amount constituting a dividend, as described above, or (ii) the amount of the distribution
we project will be a dividend, based upon a reasonable estimate of both our current and our
accumulated earnings and profits for the taxable year in which the distribution is made. If tax is
withheld on the amount of a distribution in excess of the amount constituting a dividend, then you
may obtain a refund of such excess amounts by timely filing a claim for refund with the Internal
Revenue Service.
In order to claim the benefit of a reduced rate of or an exemption from withholding tax under
an applicable income tax treaty, a non-U.S. holder will be required (a) to satisfy certain
certification requirements, which may be made by providing us or our agent with a properly executed
and completed Internal Revenue Service Form W-8BEN (or other applicable form) certifying, under
penalty of perjury, that the holder qualifies for treaty benefits and is not a United States person
or (b) if our common stock is held through certain non-United States intermediaries, to satisfy the
relevant certification requirements of Treasury Regulations. Special certification and other
requirements apply to certain non-U.S. holders that are pass-through entities.
Dividends that are effectively connected with the conduct of a trade or business by the
non-U.S. holder within the United States (and, if required by an applicable income tax treaty, are
attributable to a U.S. permanent establishment or, in the case of an individual non-U.S. holder, a
fixed base) are not subject to the withholding tax, provided that the non-U.S. holder so certifies,
under penalty of perjury, on a properly executed and delivered Internal Revenue Service Form W-8ECI
(or other applicable form). Instead, such dividends would be subject to United States federal
income tax on a net income basis in the same manner as if the non-U.S. holder were a United States
person.
Corporate holders who receive effectively connected dividends may also be subject to an
additional "branch profits tax" at a gross rate of 30% on their earnings and profits for the
taxable year that are effectively connected with the holder's conduct of a trade or business within
the United States, subject to any exemption or reduction provided by an applicable income tax
treaty.
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Sale or Taxable Disposition of Common Stock
Any gain realized on the sale, exchange or other taxable disposition of our common stock
generally will not be subject to United States federal income tax unless:
•
the gain is effectively connected with a trade or business of the non-U.S. holder in
the United States (and, if required by an applicable income tax treaty, is attributable
to a U.S. permanent establishment of the non-U.S. holder or, in the case of an
individual, a fixed base);
•
the non-U.S. holder is an individual who is present in the United States for 183
days or more in the taxable year of that disposition, and certain other conditions are
met; or
•
we are or have been a "United States real property holding corporation" for United
States federal income tax purposes at any time during the shorter of the five-year
period preceding such disposition and the non-U.S. holder's holding period in the
common stock.
A non-U.S. holder described in the first bullet point above generally will be subject to
United States federal income tax on the net gain derived from the sale or disposition under regular
graduated United States federal income tax rates, as if the holder were a United States person. If
such non-U.S. holder is a corporation, then it may also, under certain circumstances, be subject to
an additional "branch profits" tax at a gross rate of 30% on its earnings and profits for the
taxable year that are effectively connected with its conduct of its United States trade or
business, subject to exemption or reduction provided by any applicable income tax treaty.
An individual non-U.S. holder described in the second bullet point immediately above will be
subject to a tax at a 30% gross rate, subject to any reduction or reduced rate under an applicable
income tax treaty, on the net gain derived from the sale, which may be offset by U.S. source
capital losses, even though the individual is not considered a resident of the United States.
We believe we are not, have not been and will not become a "United States real property
holding corporation" for United States federal income tax purposes. In the event that we are or
become a United States real property holding corporation at any time during the applicable period
described in the third bullet point above, any gain recognized on a sale or other taxable
disposition of our common stock may be subject to United States federal income tax, including any
applicable withholding tax, if either (1) the non-U.S. holder beneficially owns, or has owned, more
than 5% of the total fair value of our common stock at any time during the applicable period, or
(2) our common stock ceases to be traded on an "established securities market" within the meaning
of the Code. Non-U.S. holders who own or may own more than 5% of our common stock are encouraged
to consult their tax advisors with respect to the United States tax consequences of a disposition
of our common stock.
Information Reporting and Backup Withholding
We must report annually to the Internal Revenue Service and to each non-U.S. holder the amount
of dividends paid to such holder and the tax withheld with respect to such dividends, regardless of
whether withholding was required. Copies of the information returns reporting such dividends and
withholding may also be made available to the tax authorities in the country in which the non-U.S.
holder resides under the provisions of an applicable income tax treaty.
A non-U.S. holder will be subject to backup withholding, currently at a 28% rate, for
dividends paid to such holder unless such holder certifies under penalty of perjury as to
non-United States person status (and neither we nor the paying agent has actual knowledge or reason
to know that such holder is a United States person), or such holder otherwise establishes an
exemption.
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Information reporting and, depending on the circumstances, backup withholding will apply to
the proceeds of a sale of our common stock within the United States or conducted through certain
U.S.-related financial intermediaries, unless the beneficial owner certifies under penalty of
perjury as to non-United States person status (and neither the broker nor intermediary has actual
knowledge or reason to know that the beneficial owner is a United States person), or such owner
otherwise establishes an exemption.
Any amounts withheld under the backup withholding rules may be allowed as a refund or a credit
against a non-U.S. holder's United States federal income tax liability provided the required
information is timely furnished to the Internal Revenue Service.
Recent Legislative Developments
The Treasury has recently proposed legislation that would limit the ability of non-U.S.
investors to claim relief from U.S. withholding tax in respect of dividends paid on common stock,
if such investors hold common stock through a non-U.S. intermediary that is not a "qualified
intermediary." The Administration's proposals also would limit the ability of certain non-U.S.
entities to claim relief from U.S. withholding tax in respect of dividends paid to such non-U.S.
entities unless those entities have provided documentation of their beneficial owners to the
withholding agent. A third proposal would impose a 20% withholding tax on the gross proceeds of
the sale of common stock effected through a non-U.S. intermediary that is not a qualified
intermediary and that is not located in a jurisdiction with which the United States has a
comprehensive income tax treaty having a satisfactory exchange of information provision. A
non-U.S. investor generally would be permitted to claim a refund to the extent any tax withheld
exceeded the investor's actual tax liability. It is unclear whether, or in what form, these
proposals may be enacted. Non-U.S. holders are encouraged to consult with their tax advisers
regarding the possible implications of the Administration's proposals on their investment in
respect of the common stock.
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UNDERWRITING
We are offering shares of our common stock described in this prospectus in an underwritten
offering in which Sandler O'Neill & Partners, L.P. is acting as representative of the underwriters
named below. We have entered into an underwriting agreement with Sandler O'Neill & Partners, L.P.,
acting as representative of the underwriters named below, with respect to the common stock being
offered. Subject to the terms and conditions stated in the underwriting agreement, each
underwriter has severally agreed to purchase the respective number of shares of common stock set
forth opposite its name below:
Name
Number of Shares
Sandler O'Neill & Partners, L.P.
Fox-Pitt Kelton Cochran Caronia Waller (USA) LLC
Total
The underwriting agreement provides that the obligation of the underwriters to purchase our
common stock depends on the satisfaction of the conditions contained in the underwriting agreement,
including:
•
the representations and warranties made by us are true and agreements have been
performed;
•
there is no material adverse change in our business; and
•
we deliver customary closing documents.
Subject to these conditions, the underwriters are committed to purchase and pay for all shares
of our common stock offered by this prospectus, if any such shares are taken. However, the
underwriters are not obligated to take or pay for shares of our common stock covered by the
underwriters' over-allotment option described below, unless and until such option is exercised.
Our common stock is listed on the Nasdaq Global Select Market under the symbol "SBCF."
Over-Allotment Option
We have granted the underwriters an option, exercisable no later than 30 days after the date
of the underwriting agreement, to purchase up to an aggregate of      additional shares of
common stock at the public offering price, less the underwriting discounts and commissions set
forth under "— Commissions and Expenses" and on the cover page of this prospectus. We will be obligated to sell these shares of common
stock to the underwriters to the extent the over-allotment option is exercised. The underwriters
may exercise this option only to cover over-allotments, if any, made in connection with the sale of
our common stock offered by this prospectus.
Commissions and Expenses
The underwriters propose to offer our common stock directly to the public at the public
offering price set forth on the cover page of this prospectus and to dealers at the public offering
price less a concession not in excess of $  per share. The underwriters may allow, and the dealers
may reallow, a concession not in excess of $  per share on sales to brokers and dealers. After the
public offering of our common stock, the underwriters may change the offering price, concessions
and other selling terms.
The following table shows per share and total underwriting discounts and commissions that we
will pay to the underwriters and the proceeds we will receive before expenses. These amounts are
shown assuming both no exercise and full exercise of the underwriters' over-allotment option:
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Without
With
Per Share
Option
Option
Public offering price
Underwriting discounts and commissions payable by us
Proceeds to us, before expenses
In addition to the underwriting discount, we will reimburse the underwriters for their
reasonable out-of-pocket expenses incurred in connection with their engagement as underwriters,
regardless of whether this offering is consummated, including, without limitation, legal fees and
expenses, marketing, syndication and travel expenses of up to $200,000. We estimate that our total
expenses for this offering, exclusive of underwriting discounts and commissions, will be
approximately $ , and are payable by us.
Indemnity
We have agreed to indemnify the underwriters, and persons who control the underwriters,
against certain liabilities, including liabilities under the Securities Act of 1933, and to
contribute to payments that the underwriters may be required to make in respect of these
liabilities.
Lock-Up Agreement
We, and each of our directors and executive officers, have agreed for a period of 90 days
after the date of this prospectus, subject to certain exceptions, to not sell, offer, agree to
sell, contract to sell, hypothecate, pledge, grant any option to purchase, make any short sale or
otherwise dispose of or hedge, directly or indirectly, any shares of common stock or securities
convertible into, exchangeable or exercisable for any shares of common stock or warrants or other
rights to purchase shares of common stock or any other of our securities that are substantially
similar to our common stock without, in each case, the prior written consent of Sandler O'Neill &
Partners, L.P. These restrictions are expressly agreed to preclude us, and our executive officers
and directors, from engaging in any hedging or other transactions or arrangement that is designed
to, or which reasonably could be expected to, lead to or result in a sale, disposition or transfer,
in whole or in part, of any of the economic consequences of ownership of our common stock, whether
such transaction would be settled by delivery of common stock or other securities, in cash or
otherwise. The 90-day restricted period described above will be automatically extended if (1)
during the last 18 days of the 90-day restricted period, we issue an earnings release or material
news or a material event relating to us occurs or (2) prior to the expiration of the 90-day
restricted period, we announce we will release earnings results or become aware that material news
or a material event will occur during the 16-day period beginning on the last day of the 90-day
restricted period, in which case the restricted period will continue to apply until the expiration
of the 18-day period beginning on the date on which the earnings release is issued or the material
news or material event related to us occurs.
Stabilization
In connection with this offering, the underwriters may engage in stabilizing transactions,
over-allotment transactions, syndicate covering transactions and penalty bids:
•
Stabilizing transactions permit bids to purchase common stock so long as the
stabilizing bids do not exceed a specified minimum, and are engaged in for the purpose
of preventing or retarding a decline in the market price of the common stock while the
offering is in progress.
•
Over-allotment transactions involves sales of common stock in excess of the number
of shares the underwriters are obligated to purchase. This creates a syndicate short
position which may be either a covered short position or a naked short position In a
covered short position, the number of shares of common stock over-allotted by the
underwriters is not greater than the number of shares that they may purchase in the
option to purchase additional shares. In a naked short position, the number of shares
involved is greater than the number of shares in the option to
purchase additional shares. The underwriters may close out any short position by exercising their option
to purchase additional shares and/or purchasing shares in the open market.
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•
Syndicate covering transactions involve purchases of shares of common stock in the
open market after the distribution has been completed in order to cover syndicate short
positions. In determining the source of shares to close out the short position, the
underwriters will consider, among other things, the price of shares available for
purchase in the open market as compared with the price at which they
may purchase shares through exercise of the option to purchase additional shares. If the
underwriters sell more shares than could be covered by exercise of the option to
purchase additional shares and, therefore, have a naked short position, the position
can be closed out only by buying shares in the open market. A naked short position is
more likely to be created if the underwriters are concerned that after pricing there
could be downward pressure on the price of the shares in the open market that could
adversely affect investors who purchase in the offering.
•
Penalty bids permit the underwriters to reclaim a selling concession from a
syndicate member when the shares of common stock originally sold by that syndicate
member are purchased in stabilizing or syndicate covering transactions to cover
syndicate short positions.
These stabilizing transactions, syndicate covering transactions and penalty bids may have the
effect of raising or maintaining the market price of our common stock or preventing or retarding a
decline in the market price of our common stock. As a result, the price of our common stock in the
open market may be higher than it would otherwise be in the absence of these transactions. Neither
we nor the underwriters make any representation or prediction as to the effect that the
transactions described above may have on the price of our common stock. These transactions may be
effected on the Nasdaq Global Select Market, in the over-the-counter market or otherwise and if
commenced, may be discontinued by the underwriters at any time.
Passive Market Making
In connection with this offering, the underwriters and selected dealers, if any, who are
qualified market makers on the Nasdaq Global Select Market, may engage in passive market making
transactions in our common stock on the Nasdaq Global Select Market in accordance with Rule 103 of
Regulation M under the Securities Act of 1933. Rule 103 permits passive market making activity by
the participants in our common stock offering. Passive market making may occur before the pricing
of our offering, or before the commencement of offers or sales of our common stock. Each passive
market maker must comply with applicable volume and price limitations and must be identified as a
passive market maker. In general, a passive market maker must display its bid at a price not in
excess of the highest independent bid for the security. If all independent bids are lowered below
the bid of the passive market maker, however, the bid must then be lowered when purchase limits are
exceeded. Net purchases by a passive market maker on each day are limited to a specified
percentage of the passive market maker's average daily trading volume in the common stock during a
specified period and must be discontinued when that limit is reached. The underwriters and other
dealers are not required to engage in passive market making and may end passive market making
activities at any time.
Our Relationship with the Underwriters
Sandler
O'Neill & Partners, L.P. and Fox-Pitt Kelton Cochran Caronia Weller (USA) LLC and some of their affiliates have performed and continue to
perform investment banking and financial advisory services for us in the ordinary course of its
business, and may have received, and may continue to receive, compensation for such services.
Our common stock is being offered by the underwriters, subject to prior sale, when, as and if
issued to and accepted by them, subject to approval of certain legal matters by counsel for the
underwriters and other conditions.
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LEGAL MATTERS
The validity of the common stock will be passed upon for us by Crary, Buchanan, Bowdish,
Bovie, Beres, Elder & Williamson, Chartered. We were represented by Jones Day and the underwriters
were represented by Hogan & Hartson LLP.
EXPERTS
The consolidated financial statements of Seacoast Banking Corporation of Florida as of
December 31, 2008 and 2007, and for each of the years in the three-year period ended December 31,
2008, and management's assessment of the effectiveness of internal control over financial reporting
as of December 31, 2008 have been incorporated by reference herein in reliance upon the reports of
KPMG LLP, independent registered public accounting firm, incorporated by reference herein, and upon
the authority of said firm as experts in accounting and auditing. The audit report dated March 9,
2009 with respect to the consolidated financial statements refers to the adoption of Statement of
Financial Accounting Standards (SFAS) No. 157,
Fair Value Measurements
, and SFAS No. 159,
The Fair
Value Option for Financial Assets and Financial Liabilities — Including an Amendment of FASB
Statement No. 115
, as of January 1, 2007.
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Shares
Common Stock
PROSPECTUS
Sandler O'Neill + Partners L.P.
Fox-Pitt Kelton Cochran Caronia Waller
, 2009
Table of Contents
PART II
INFORMATION NOT REQUIRED IN PROSPECTUS
Item 13. Other Expenses of Issuance and Distribution
The following table sets forth the fees and expenses, other than underwriting discounts and
commissions, payable in connection with the registration of the common stock hereunder. All
amounts are estimates except the SEC registration fee, the FINRA filing fee and the Nasdaq Global
Select Market listing fee.
Amount to be paid
SEC Registration Fee
$
55.80
FINRA Filing Fee
*
Nasdaq Global Select Market Listing Fee
*
Legal Fees and Expenses
*
Accounting Fees and Expenses
*
Printing and Engraving Expenses
*
Blue Sky Fees and Expenses
*
Transfer Agent and Registrar Fees
*
Miscellaneous Expenses
*
Total
$
*
*
To be completed by amendment.
Item 14. Indemnification of Directors and Officers
The Florida Act permits, under certain circumstances, the indemnification of any person with
respect to any threatened, pending or completed action, suit or proceeding, whether civil,
criminal, administrative or investigative, to which such person was or is a party or is threatened
to be made a party, by reason of his or her being an officer, director, employee or agent of the
corporation, or is or was serving at the request of, such corporation as a director, officer,
employee or agent of another corporation, partnership, joint venture, trust or other enterprise,
against liability incurred in connection with such proceeding, including appeals thereof; provided,
however, that the officer, director, employee or agent acted in good faith and in a manner that he
or she reasonably believed to be in, or not opposed to, the best interests of the corporation and,
with respect to any criminal action or proceeding, had no reasonable cause to believe his or her
conduct was unlawful. The termination of any such third-party action by judgment, order,
settlement, or conviction or upon a plea of
nolo contendere
or its equivalent does not, of itself,
create a presumption that the person (i) did not act in good faith and in a manner which he or she
reasonably believed to be in, or not opposed to, the best interests of the corporation or (ii) with
respect to any criminal action or proceeding, had reasonable cause to believe that his or her
conduct was unlawful.
In the case of proceedings by or in the right of the corporation, the Florida Act permits for
indemnification of any person by reason of the fact that such person is or was a director, officer,
employee or agent of the corporation, or is or was serving at the request of, such corporation as a
director, officer, employee or agent of another corporation, partnership, joint venture, trust or
other enterprise, against liability incurred in connection with such proceeding, including appeals
thereof;
provided, however
, that the officer, director, employee or agent acted in good faith and
in a manner that he or she reasonably believed to be in, or not opposed to, the best interests of
the corporation, except that no indemnification is made where such person is adjudged liable,
unless a court of competent jurisdiction determines that, despite the adjudication of liability but
in view of all circumstances of the case, such person is fairly and reasonably entitled to
indemnity for such expenses which such court shall deem proper.
To the extent that such person is successful on the merits or otherwise in defending against
any such proceeding, the Florida Act provides that he or she shall be indemnified against expenses
actually and reasonably incurred by him or her in connection therewith.
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Also, under the Florida Act, expenses incurred by an officer or director in defending a civil
or criminal proceeding may be paid by the corporation in advance of the final disposition of such
proceeding upon receipt of an undertaking by or on behalf of such director or officer to repay such
amount if he or she is ultimately found not to be entitled to indemnification by the corporation
pursuant to this section. Expenses incurred by other employees and agents may be paid in advance
upon such terms or conditions that the board of directors deems appropriate.
Our amended and restated bylaws contain indemnification provisions similar to the Florida Act,
and further provide that we may purchase and maintain insurance on behalf of our directors,
officers, employees and agents in their capacities as such, or serving at the request of us,
against any liabilities asserted against such persons whether or not we would have the power to
indemnify such persons against such liability under our amended and restated bylaws.
Insofar as indemnification for liabilities arising under the Securities Act may be permitted
to our directors and officers, or to persons controlling us, pursuant to our amended and restated
bylaws or the Florida Act, we have been informed that in the opinion of the Securities and Exchange
Commission such indemnification is against public policy as expressed in the Securities Act and is
therefore unenforceable.
In addition to the authority granted to us by the Florida Act to indemnify our directors,
certain other provisions of the Florida Act have the effect of further limiting the personal
liability of our directors. Pursuant to the Florida Act, a director of a Florida corporation
cannot be held personally liable for monetary damages to the corporation or any other person for
any act or failure to act regarding corporate management or policy except in the case of certain
qualifying breaches of the director's duties.
We have purchased certain liability insurance for our officers and directors.
Item 15. Recent Sales of Unregistered Securities.
On December 19, 2008, we entered into a purchase agreement with the United States Department
of the Treasury, pursuant to which we agreed to issue and sell (i) 2,000 shares of our Fixed Rate
Cumulative Perpetual Preferred Stock, Series A, par value $0.10 per share and (ii) a warrant to
purchase 1,179,245 shares of our common stock, par value $0.10 per share, for an aggregate purchase
price of $50,000,000 in cash. These securities were sold in a transaction exempt from the
registration requirements of the Securities Act in reliance on Section (4)(2) of the Securities
Act. The purchaser in such transaction was an "accredited investor" within the meaning of Rule 501
of Regulation D promulgated under the Securities Act.
Item 16. Exhibits and Financial Statement Schedules
(a) Exhibits
Exhibit
Number
Description
1.1
Form of Underwriting Agreement.*
3.1
Amended and Restated Articles of Incorporation
Incorporated herein by reference from the Company's Quarterly Report of Form 10-Q,
dated May 10, 2006.
3.2
Amended and Restated By-laws of the Corporation
Incorporated herein by reference from the Company's Form 8-K, dated December 18, 2007.
3.3
Articles of Amendment to the Amended and Restated Articles of Incorporation
Establishing and designating Fixed Rate Cumulative Perpetual Preferred Stock, Series
A incorporated herein by reference from the Company's Form 8-K, dated December 23,
2008.
3.4
Articles of Amendment to the Amended and Restated Articles of Incorporation
Increasing the authorized shares of Common Stock and modifying Article X of the amended and restated articles of incorporation
(filed herewith).
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Exhibit
Number
Description
4.1
Specimen Common Stock Certificate
Incorporated herein by reference from the Company's Form 10-K, dated March 28, 2003.
4.2
Junior Subordinated Indenture
Dated as of March 31, 2005, between the Company and Wilmington Trust Company, as
Trustee (including the form of the Floating Rate Junior Subordinated Note, which
appears in Section 2.1 thereof), incorporated herein by reference from the Company's
Form 8-K, dated March 31, 2005.
4.3
Guarantee Agreement
Dated as of March 31, 2005 between the Company, as Guarantor, and Wilmington Trust
Company, as Guarantee Trustee, incorporated herein by reference from the Company's
Form 8-K, dated March 31, 2005.
4.4
Amended and Restated Trust Agreement
Dated as of March 31, 2005, among the Company, as Depositor, Wilmington Trust
Company, as Property Trustee, Wilmington Trust Company, as Delaware Trustee and the
Administrative Trustees named therein, as Administrative Trustees (including exhibits
containing the related forms of the SBCF Capital Trust I Common Securities
Certificate and the Preferred Securities Certificate), incorporated herein by
reference from the Company's Form 8-K, dated March 31, 2005.
4.5
Indenture
Dated as of December 16, 2005, between the Company and U.S. Bank National
Association, as Trustee (including the form of the Junior Subordinated Debt Security,
which appears as Exhibit A to the Indenture), incorporated herein by reference from
the Company's Form 8-K, dated December 16, 2005.
4.6
Guarantee Agreement
Dated as of December 16, 2005, between the Company, as Guarantor, and U.S. Bank
National Association, as Guarantee Trustee, incorporated herein by reference from the
Company's Form 8-K, dated December 16, 2005.
4.7
Amended and Restated Declaration of Trust
Dated as of December 16, 2005, among the Company, as Sponsor, Dennis S. Hudson, III
and William R. Hahl, as Administrators, and U.S. Bank National Association, as
Institutional Trustee (including exhibits containing the related forms of the SBCF
Statutory Trust II Common Securities Certificate and the Capital Securities
Certificate), incorporated herein by reference from the Company's Form 8-K, dated
December 16, 2005.
4.8
Indenture
Dated June 29, 2007, between the Company and LaSalle Bank, as Trustee (including the
form of the Junior Subordinated Debt Security, which appears as Exhibit A to the
Indenture), incorporated herein by reference from the Company's Form 8-K, dated June
29, 2007.
4.9
Guarantee Agreement
Dated June 29, 2007, between the Company, as Guarantor, and LaSalle Bank, as
Guarantee, incorporated herein by reference from the Company's Form 8-K, dated June
29, 2007.
4.10
Amended and Restated Declaration of Trust
Dated June 29, 2007, among the Company, as Sponsor, Dennis S. Hudson, III and
William R. Hahl, as Administrators, and LaSalle Bank, as Institutional Trustee
(including exhibits containing the related forms of the SBCF Statutory Trust III
Common Securities Certificate and the Capital Securities Certificate), incorporated
herein by reference from the Company's Form 8-K, dated June 29, 2007.
4.11
Trust Agreement of SBCF Capital Trust IV
Dated May 16, 2008, among the Company, as Depositor and Wilmington Trust Company, a
Delaware banking corporation, as Trustee (including exhibits containing the related
forms of Junior Subordinated Indenture, Subordinated Indenture, Senior Indenture,
Guarantee Agreement and the Amended and Restated Trust Agreement of SBCF Capital
Trust IV), incorporated herein by reference from the Company's
Form S-3, dated May 23,
2008.
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Exhibit
Number
Description
4.12
Trust Agreement of SBCF Capital Trust V
Dated May 16, 2008, among the Company, as Depositor and Wilmington Trust Company, a
Delaware banking corporation, as Trustee (including exhibits containing the related
forms of Junior Subordinated Indenture, Subordinated Indenture, Senior Indenture,
Guarantee Agreement and the Amended and Restated Trust Agreement of SBCF Capital
Trust V), incorporated herein by reference from the Company's Form S-3, dated May 23,
2008.
4.13
Specimen Preferred Stock Certificate
Incorporated herein by reference from the Company's Form 8-K, dated December 23, 2008.
4.14
Warrant for Purchase of Shares of Common Stock
Incorporated herein by reference from the Company's Form 8-K, dated December 23, 2008.
5.1
Opinion of Crary, Buchanan, Bowdish, Bovie, Beres, Elder & Williamson, Chartered*
10.1
Amended and Restated Retirement Savings Plan, with Amendments
Incorporated herein by reference from the Company's Annual Report on Form 10-K, dated
March 28, 2003.
10.2
Amended and Restated Employee Stock Purchase Plan
Incorporated herein by reference from the Company's Proxy Statement on Form DEF 14A
as Exhibit A, dated April 27, 2009.
10.3
Amendment #1 to the Employee Stock Purchase Plan
Incorporated herein by reference from the Company's Annual Report on Form 10-K, dated
March 29, 1991.
10.4
Executive Employment Agreement
Dated March 22, 1991 between A. Douglas Gilbert and the Bank, incorporated herein by
reference from the Company's Annual Report on Form 10-K, dated March 29, 1991.
10.5
Executive Employment Agreement
Dated January 18, 1994 between Dennis S. Hudson, III and the Bank, incorporated
herein by reference from the Company's Annual Report on Form 10-K, dated March 28,
1995.
10.6
Executive Employment Agreement
Dated July 31, 1995 between C. William Curtis, Jr. and the Bank, incorporated
herein by reference from the Company's Annual Report on Form 10-K, dated March 28,
1996.
10.7
Executive Employment Agreement
Dated January 2, 2007 between Harry R. Holland, III and the Bank, incorporated
herein by reference from the Company's Form 8-K, dated January 2, 2007.
10.8
1996 Long Term Incentive Plan
Incorporated herein by reference from the Company's Registration Statement on Form
S-8 File No. 333-91859, dated December 1, 1999.
10.9
2000 Long Term Incentive Plan, as Amended
Incorporated herein by reference from the Company's Proxy Statement on Form DEF 14A
as Exhibit A, dated March 13, 2000.
10.10
Executive Deferred Compensation Plan
Incorporated herein by reference from the Company's Annual Report on Form 10-K, dated
March 30, 2001.
10.11
Line of Credit Agreement
Incorporated herein by reference from the Company's Annual Report on Form 10-K, dated
March 28, 2003.
10.12
Change of Control Employment Agreement
Dated December 24, 2003 between Dennis S. Hudson, III and the Registrant,
incorporated herein by reference from the Company's Form 8-K, dated December 24,
2003.
10.13
Change of Control Employment Agreement
Dated December 24, 2003 between A. Douglas Gilbert and the Registrant, incorporated
herein by reference from the Company's Form 8-K, dated December 24, 2003.
10.14
Change of Control Employment Agreement
Dated December 24, 2003 between C. William Curtis, Jr. and the Registrant,
incorporated herein by reference from the Company's Form 8-K, dated December 24,
2003.
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Exhibit
Number
Description
10.15
Change of Control Employment Agreement
Dated December 24, 2003 between William R. Hahl and the Company, incorporated herein
by reference from the Company's Form 8-K, dated December 24, 2003.
10.16
Change of Control Employment Agreement
Dated December 24, 2003 between Jean Strickland and the Company, incorporated herein
by reference from the Company's Form 8-K, dated January 7, 2004.
10.17
Change of Control Employment Agreement
Dated July 18, 2006 between Richard A. Yanke and the Registrant, incorporated herein
by reference from the Company's Annual Report on Form 10-K, dated March 15, 2007.
10.18
Directors Deferred Compensation Plan
Dated June 15, 2004, but effective July 1, 2004, incorporated herein by reference
from the Company's Annual Report on Form 10-K, filed on March 17, 2005.
10.19
Executive Transition Agreement
Dated June 22, 2007, between A. Douglas Gilbert and the Registrant incorporated
herein by reference from the Company's Form 8-K, dated June 22, 2007.
10.20
Consulting and Restrictive Covenants Agreement
Dated June 22, 2007, between A. Douglas Gilbert and the Registrant incorporated
herein by reference from the Company's Form 8-K, dated June 22, 2007.
10.21
Executive Employment Agreement
Dated March 26, 2008 between O. Jean Strickland and the Bank and Company,
incorporated herein by reference from the Company's Annual Report on Form 8-K, dated
March 26, 2008.
10.22
2008 Long-Term Incentive Plan
Incorporated herein by reference from the Company's Proxy Statement on Form DEF 14A
as Exhibit A, dated March 18, 2008.
10.23
Letter Agreement
Dated December 19, 2008, between the Company and the United States Department of the
Treasury incorporated herein by reference from the Company's Form 8-K, dated December
23, 2008.
10.24
Formal Agreement
Dated December 16, 2008, between the Company and the Office of the Comptroller of the
Currency incorporated herein by reference from the Company's Form 8-K, dated December
23, 2008.
10.25
Waiver of Senior Executive Officers
Dated December 19, 2008, issued to the United Stated Department of the Treasury
incorporated herein by reference from the Company's Form 8-K, dated December 23,
2008.
10.26
Consent of Senior Executive Officers
Dated December 19, 2008, issued to the United States Department of the Treasury
incorporated herein by reference from the Company's Form 8-K, dated December 23,
2008.
10.27
Form of 409A Amendment to Employment Agreements with Dennis S. Hudson, III, William
R. Hahl, A. Douglas Gilbert, O. Jean Strickland and H. Russell Holland, III
Incorporated herein by reference from the Company's Form 8-K, dated January 5, 2009
21.1
Subsidiaries of the Registrant (filed herewith).
23.1
Consent of KPMG LLP (filed herewith).
23.2
Consent of Crary, Buchanan, Bowdish, Bovie, Beres, Elder & Williamson, Chartered
(included in Exhibit 5.1)*
24.1
Power of Attorney (see signature page).
*
To be filed by amendment.
Item 17. Undertakings
The undersigned registrant hereby undertakes as follows:
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(a) For purposes of determining any liability under the Securities Act of 1933, the
information omitted from the form of prospectus filed as part of this registration statement in
reliance upon Rule 430A and contained in a form of prospectus filed by the registrant pursuant to
Rule 424(b) (1) or (4) or 497(h) under the Securities Act shall be deemed to be part of this
registration statement as of the time it was declared effective.
(b) For the purpose of determining any liability under the Securities Act of 1933, each
post-effective amendment that contains a form of prospectus shall be deemed to be a new
registration statement relating to the securities offered therein, and the offering of such
securities at that time shall be deemed to be the initial bona fide offering thereof.
Insofar as indemnification for liabilities arising under the Securities Act of 1933 may be
permitted to directors, officers and controlling persons of the registrant pursuant to the
foregoing provisions, or otherwise, the registrant has been advised that in the opinion of the
Securities and Exchange Commission such indemnification is against public policy as expressed in
the Act and is, therefore, unenforceable. In the event that a claim for indemnification against
such liabilities (other than the payment by the registrant of expenses incurred or paid by a
director, officer or controlling person of the registrant in the successful defense of any action,
suit or proceeding) is asserted by such director, officer or controlling person in connection with
the securities being registered, the registrant will, unless in the opinion of its counsel the
matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the
question whether such indemnification by it is against public policy as expressed in the Act and
will be governed by the final adjudication of such issue.
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SIGNATURES
Pursuant to the requirements of the Securities Act of 1933, the registrant has duly caused
this registration statement to be signed on its behalf by the undersigned, thereunto duly
authorized in the City of Stuart, State of Florida, on June 19, 2009.
SEACOAST BANKING CORPORATION OF FLORIDA
By:
/s/ Dennis S. Hudson, III
Dennis S. Hudson, III
Chairman of the Board and Chief Executive Officer
POWER OF ATTORNEY
KNOW ALL MEN BY THESE PRESENTS, that each of the undersigned being a director of Seacoast
Banking Corporation of Florida, a Florida corporation (the "Company"), constitutes and appoints
each of Dennis S. Hudson, III, O. Jean Strickland and William R. Hahl, as agent, with full power of
substitution, for his and in his name, place and stead, in any and all capacities, to sign any and
all amendments, including post-effective amendments, to this registration statement, and to file
the same, therewith, with the Securities and Exchange Commission, and to make any and all state
securities law filings, granting unto said attorney-in-fact and agent, full power and authority to
do and perform each and every act and thing requisite or necessary to be done in about the
premises, as fully to all intents and purposes as he might or could do in person, hereby ratifying
the confirming all that said attorney-in-fact and agent, or any substitute or substitutes, may
lawfully do or cause to be done by virtue hereof.
Pursuant to the requirements of the Securities Act of 1933, this registration statement has
been signed by the following persons in the capacities and on the dates indicated.
Signature
Title
Date
/s/ Dennis S. Hudson, III
Dennis S. Hudson, III
Chairman
and Chief Executive
Officer (Principal Executive
Officer)
June 19, 2009
/s/ Dale M. Hudson
Dale M. Hudson
Dale
M. Hudson, Vice-Chairman
of the
Board and Director
June 19, 2009
/s/ William R. Hahl
William R. Hahl
Executive
Vice President and
Chief
Financial Officer
(Principal Financial and
Accounting  Officer)
June 19, 2009
/s/ Stephen E. Bohner
Stephen E. Bohner
Director
June 19, 2009
/s/ Jeffrey C. Bruner
Jeffrey C. Bruner
Director
June 19, 2009
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Signature
Title
Date
/s/ John H. Crane
John H. Crane
Director
June 19, 2009
/s/ T. Michael Crook
T. Michael Crook
Director
June 19, 2009
/s/ H. Gilbert Culbreth, Jr.
H. Gilbert Culbreth, Jr.
Director
June 19, 2009
/s/ Christopher E. Fogal
Christopher E. Fogal
Director
June 19, 2009
/s/ Jeffrey S. Furst
Jeffrey S. Furst
Director
June 19, 2009
/s/ A. Douglas Gilbert
A. Douglas Gilbert
Director
June 19, 2009
/s/ Dennis S. Hudson Jr.
Dennis S. Hudson Jr.
Director
June 19, 2009
/s/ Thomas E. Rossin
Thomas E. Rossin
Director
June 19, 2009
/s/ Thomas H. Thurlow, Jr.
Thomas H. Thurlow, Jr.
Director
June 19, 2009
/s/ Edwin E. Walpole III
Edwin E. Walpole III
Director
June 19, 2009
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