The market for bank stocks has been tough, but Greater Bay Bancorp of Palo Alto, Calif., can't complain. It recently raised $20 million in equity, evidence of Wall Street's appetite for the high-flying company.
Greater Bay, which has $2.3 billion of assets, said it will use the funds to bolster capital and sustain its high growth rate. Internal revenue growth alone has averaged 30% a year in the past three years, excluding increases from five acquisitions in the period. The company may soon tap the debt market for $50 million, sources said. Those funds would be raised in the form of trust-preferred securities and counted as Tier 1 capital.