Shareholders' Equity

Required Regulatory Capital

The Company is subject to various regulatory capital requirements administered by the Federal banking agencies. Failure to meet the minimum capital requirements can initiate certain mandatory and possible additional discretionary actions by the regulators, which could have a direct material impact on the financial statements. These requirements involve quantitative measures of assets, liabilities and certain off-balance sheet items calculated pursuant to regulatory guidance. 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).

At December 31, 2018 and 2017, the Company and Seacoast Bank, our wholly-owned banking subsidiary, were both considered "well capitalized" based on the applicable U.S. regulatory capital ratio requirements as reflected in the table below:



					Minimum to meet "Well Capitalized" Requirements					Minimum for Capital Adequacy Purpose⁽¹⁾
(Dollars in thousands)	Amount		Ratio		Amount			Ratio		Amount			Ratio
Seacoast Banking Corporation
(Consolidated)

At December 31, 2018:
Total Risk-Based Capital Ratio (to risk-weighted assets)	$	744,687	14.43	%	n/a			n/a		$	412,754	≥	8.00	%
Tier 1 Capital Ratio (to risk-weighted assets)	712,144		13.80	%	n/a			n/a		309,566		≥	6.00	%
Common Equity Tier 1 Capital Ratio (to risk-weighted assets)	641,340		12.43	%	n/a			n/a		232,174		≥	4.50	%
Leverage Ratio (to adjusted average assets)	712,144		11.16	%	n/a			n/a		255,167		≥	4.00	%
At December 31, 2017:
Total Risk-Based Capital Ratio (to risk-weighted assets)	$	619,746	14.24	%	n/a			n/a		$	348,191	≥	8.00	%
Tier 1 Capital Ratio (to risk-weighted assets)	592,562		13.61	%	n/a			n/a		261,143		≥	6.00	%
Common Equity Tier 1 Capital Ratio (to risk-weighted assets)	523,832		12.04	%	n/a			n/a		195,858		≥	4.50	%
Leverage Ratio (to adjusted average assets)	592,562		10.68	%	n/a			n/a		221,863		≥	4.00	%

Seacoast National Bank
(A Wholly Owned Bank Subsidiary)
At December 31, 2018:
Total Risk-Based Capital Ratio (to risk-weighted assets)	$	701,093	13.60	%	$	515,607	≥	10.00	%	$	412,486	≥	8.00	%
Tier 1 Capital Ratio (to risk-weighted assets)	668,550		12.97	%	412,486		≥	8.00	%	309,364		≥	6.00	%
Common Equity Tier 1 Capital Ratio (to risk-weighted assets)	668,550		12.97	%	335,145		≥	6.50	%	232,023		≥	4.50	%
Leverage Ratio (to adjusted average assets)	668,550		10.49	%	318,795		≥	5.00	%	255,036		≥	4.00	%
At December 31, 2017:							≥
Total Risk-Based Capital Ratio (to risk-weighted assets)	$	565,149	13.04	%	$	433,475	≥	10.00	%	$	346,780	≥	8.00	%
Tier 1 Capital Ratio (to risk-weighted assets)	537,965		12.41	%	346,780		≥	8.00	%	260,085		≥	6.00	%
Common Equity Tier 1 Capital Ratio (to risk-weighted assets)	537,965		12.41	%	281,759		≥	6.50	%	195,022		≥	4.50	%
Leverage Ratio (to adjusted average assets)	537,965		9.72	%	276,791		≥	5.00	%	221,432		≥	4.00	%

⁽¹⁾Excludes the capital conservation buffer of 1.875% for 2018 and 1.250% for 2017, which if not exceeded may constrain dividends, equity repurchases and compensation.

n/a - not applicable

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.

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 under this plan during 2018 and 2017.

On February 21, 2017, the Company closed on its offering of 8.9 million shares of common stock, consisting of 2.7 million shares sold by the Company and 6.2 million shares sold by one of its shareholders. The Company received proceeds of $56.7 million less legal and professional fees of $1.1 million from the issuance of the 2.7 million shares of its common stock. The Company is using the net proceeds from the offering for general corporate purposes, including the acquisitions of GulfShore Bancshares, Inc., NorthStar Banking Corporation, and Palm Beach Community Bank in 2017, First Green Bancorp, Inc in 2018, 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 Adviser to Guggenheim Securities, LLC, an underwriter of this offering. Under his consulting agreement with Guggenheim, Mr. Lurie was entitled to receive customary compensation, including in connection with our offering of common stock. Mr. Lurie recused himself from board decisions regarding this offering.