CapGen Investing in Florida Bank

CapGen Financial has struck a deal to acquire a 10% stake in Seacoast Banking Corporation of Florida (NASDAQ, SBCF). The deal is structured such that CapGen will acquire 6 million shares of the company's common stock as part of a public offering at $2.50, the same price at which the stock is being offered to the public. The bank ran into trouble with the fall of the Florida housing market and received $50 million through the TARP program in December. It has not posted a profit in over a year.