Shareholders' Equity

12 Months Ended

Dec. 31, 2016

Equity [Abstract]

Shareholders' Equity

Note N      Shareholders' Equity

The Company has reserved 300,000 common shares for issuance in connection with an employee stock purchase plan and 1,000,000 common shares for issuance in connection with an employee profit sharing plan. At December 31, 2016, an aggregate of 202,897 shares and 32,120 shares, respectively, have been issued as a result of employee participation in these plans.

Holders of common stock are entitled to one vote per share on all matters presented to shareholders as provided in the Company’s Articles of Incorporation. The Company implemented a dividend reinvestment plan during 2007, issuing no shares from treasury stock during 2016 and 2015.

Required Regulatory Capital

											Minimum To Be Well
											Capitalized Under Prompt
						Minimum for Capital Adequacy					Corrective Action
						Purpose (1)					Provisions
	Amount		Ratio			Amount		Ratio			Amount		Ratio
	(Dollars in thousands)
SEACOAST BANKING CORP
(CONSOLIDATED)
At December 31, 2016:
Total Capital Ratio (to risk-weighted assets)	$	432,058		13.25	%	$	260,790		≥ 8.00	%		n/a		n/a
Tier 1 Capital Ratio (to risk-weighted assets)		408,596		12.53			195,592		≥ 6.00	%		n/a		n/a
Common Equity Tier 1 Capital (to risk-weighted assets)		351,769		10.79			146,694		≥ 4.50	%		n/a		n/a
Tier 1 Leverage Ratio (to adjusted average assets)		408,596		9.15			178,656		4.0			n/a		n/a
At December 31, 2015:
Total Capital Ratio (to risk-weighted assets)	$	383,039		16.01	%	$	191,413		≥ 8.00	%		n/a		n/a
Tier 1 Capital Ratio (to risk-weighted assets)		363,873		15.21			143,560		≥ 6.00	%		n/a		n/a
Common Equity Tier 1 Capital (to risk-weighted assets)		317,004		13.25			107,670		≥ 4.50	%		n/a		n/a
Tier 1 Leverage Ratio (to adjusted average assets)		363,873		10.70			136,009		≥ 4.00	%		n/a		n/a
SEACOAST BANK
(A WHOLLY OWNED BANK SUBSIDIARY)
At December 31, 2016:
Total Capital Ratio (to risk-weighted assets)	$	415,147		12.75	%	$	260,491		≥ 8.00	%	$	325,987		≥ 10.00	%
Tier 1 Capital Ratio (to risk-weighted assets)		391,685		12.03			195,368		≥ 6.00	%		260,790		≥ 8.00	%
Common Equity Tier 1 Capital (to risk-weighted assets)		391,685		12.03			146,526		≥ 4.50	%		211,892		≥ 6.50	%
Tier 1 Leverage Ratio (to adjusted average assets)		391,685		8.78			178,501		4.0			223,320		≥ 5.00	%
At December 31, 2015:
Total Capital Ratio (to risk-weighted assets)	$	337,259		14.11	%	$	191,240		≥ 8.00	%	$	239,050		≥ 10.00	%
Tier 1 Capital Ratio (to risk-weighted assets)		318,093		13.31			143,430		≥ 6.00	%		191,240		≥ 8.00	%
Common Equity Tier 1 Capital (to risk-weighted assets)		318,093		13.31			107,572		≥ 4.50	%		155,382		≥ 6.50	%
Tier 1 Leverage Ratio (to adjusted average assets)		318,093		9.36			135,929		≥ 4.00	%		169,911		≥ 5.00	%

(1) Excludes new capital conservation buffer of 0.625% the Company is subject to, which if not exceeded may constrain dividends, equity repurchases and compensation.

n/a - not applicable

The Company is subject to various regulatory capital requirements administered by the federal banking agencies. Under new Basel III standards adopted January 1, 2015, deferred tax assets (DTAs) were substantially restricted in regulatory capital calculations, the Common Equity Tier 1 Capital calculation was created, and new minimum adequacy and well capitalized thresholds were established. Failure to meet minimum capital requirements can initiate certain mandatory, and possibly additional discretionary, actions by regulators that, if undertaken, could have a direct material effect on the Company's financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company must meet specific capital guidelines that involve quantitative measures of the Company's assets, liabilities and certain off-balance sheet items as calculated under regulatory accounting practices. The Company's capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors.

Quantitative measures established by regulation to ensure capital adequacy require the Company to maintain minimum amounts and ratios of total, Tier 1 capital and common equity Tier 1 capital (as defined in the regulations) to risk-weighted assets (as defined) and of Tier 1 capital to average assets (as defined). Management believes, as of December 31, 2016, that the Company meets all capital adequacy requirements to which it is subject. At December 31, 2016, the capital conservation buffer requisite the Company is subject to was 0.625%.

On February 21, 2017, the Company closed on its offering of 8,912,500 shares of common stock, consisting of 2,702,500 shares sold by the Company and 6,210,000 shares sold by one of its shareholders. Seacoast received proceeds of $56.8 million that will be reduced by legal and professional fees from the issuance of the 2,702,500 shares of its common stock. The Company intends to use the net proceeds from the offering for general corporate purposes, including potential future acquisitions and to support organic growth. Seacoast did not receive any proceeds from the sale of its shareholder's shares. Herbert Lurie, who is a member of our board of directors, is a consulting Senior Advisor to Guggenheim Securities, LLC, an underwriter of this offering. Under his consulting agreement with Guggenheim, Mr. Lurie is entitled to receive customary compensation, including in connection with our offering of common stock. Mr. Lurie has recused himself and will continue to recuse himself from any board decisions regarding the offering.