Shareholders' Equity

9 Months Ended

Sep. 30, 2012

Shareholders' Equity

12. Shareholders’ Equity

Common Shares

At September 30, 2012, the Company had 75,000,000 authorized shares of common stock of which 12,751,690 shares were issued and outstanding. As disclosed in Note 15, Equity Based Compensation, as of October 24, 2012 the Company has reserved a total of 427,725 shares for future issuance under various equity incentive plans. During the nine months ended September 30, 2012, the Company awarded a total of 17,613 shares of restricted stock to directors as payment of their annual retainer fee and 8,020 shares of restricted stock to certain employees (employees are commonly referred to by the Company as “teammates”) in recognition of performance.

Authorized Preferred Shares

The Company has authorized preferred stock of 2,500,000 shares with such preferences, limitations and relative rights within legal limits of the class, or one or more series within the class, as are set by the Board of Directors. To date, the Company has not issued any preferred shares.

Cash Dividends

The Board of Directors has not declared or paid a dividend on the Company’s common stock since the first quarter 2009. Currently, the Company must obtain prior approval from the Federal Reserve Bank of Richmond to pay a dividend to its shareholders. Dividends from the Bank are the Company’s primary source of funds for payment of dividends to its common shareholders. Under the terms of a Consent Order the Bank entered into with the FDIC and the South Carolina State Board of Financial Institutions (the “State Board”) in June 2010 (the “Consent Order”), the Bank is currently prohibited from paying dividends to the Company without the prior consent of these regulatory agencies.