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Original blog posting (January 6, 2014)

How much does Seacoast Banking Corporation of Florida pay to redeem one share of its preferred stock ?. Original blog posting (January 6, 2014). Seacoast National Bank plans a stock redemption. In November 2013, Seacoast National Bank issued a press release

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Original blog posting (January 6, 2014)

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  1. How much does Seacoast Banking Corporation of Florida pay to redeem one share of its preferred stock? Original blog posting (January 6, 2014)

  2. Seacoast National Bank plans a stock redemption • In November 2013, Seacoast National Bank issued a press release • Press release excerpt on next slide

  3. “…Seacoast National Bank...announced it has issued a notice to redeem, subject to regulatory approval, all of its 2,000 shares of Fixed Rate Cumulative Perpetual Preferred Stock, Series A… for an aggregate price of $50,000,000, the face liquidation amount of the shares, plus approximately $386,000 of accrued but unpaid dividends. The shares will be redeemed from current holders through The Depository Trust Company as securities depository for the Series A Preferred Stock. The redemption date is expected to be December 31, 2013, subject to regulatory approval.”

  4. Question 1 Is Seacoast National Bank required to pay the accrued dividends?  How do you know?

  5. Question 2 How much is the accrued dividend on each preferred share?

  6. Question 3 What does “face liquidation value” mean? What is the face liquidation value of each share of preferred stock?

  7. Question 4 How much in total will each preferred share be redeemed for?

  8. Question Recap • Is Seacoast National Bank required to pay the accrued dividends?  How do you know? • How much is the accrued dividend on each preferred share? • What does “face liquidation value” mean? What is the face liquidation value of each share of preferred stock? • How much in total will each preferred share be redeemed for?

  9. For additional news stories to use in the accounting classroom, see the Accounting in the Headlines blog at http://accountingintheheadlines.com/Related video resources can be found at http://www.youtube.com/user/accountingheadlinesQuestions or comments? Contact Dr. Wendy Tietz at wtietz@kent.edu

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