An investing group led by CapGen Financial Partners has completed a $103 million private placement in bank holding company Palmetto Bancshares. Howe Barnes Hoefer & Arnett acted as the placement agent. The group purchased roughly 39.9 million shares of common stock at $2.60 per share. CapGen itself invested $55 million of the total amount and was joined on the investment by Patriot Financial Partners and Sandler O'Neill Asset Management. Most of the proceeds were used to contribute capital to the company's principal banking subsidiary,The Palmetto Bank.