Bridgewater Bancshares' planned equity raise should boost capital ratios, Wall Street says

Brokerage Stephens says it views community lender Bridgewater Bancshares BWB.O's planned equity raise positively

Says prospective proceeds would improve BWB's capital and commercial real estate concentration ratios, as well as supply dry powder to capitalize on the bank's lending pipeline

BWB on Friday entered into up to $50 million an up to "at-the-market" equity distribution agreement handled by Piper Sandler

Proceeds are to be used for general purposes, which may include boosting BWB's capital and supporting lending activities, growth

"Bridgewater's latest investor presentation included a new bullet that stated the company's approach to capital is 'opportunistic and nimble' and may participate as a 'purchaser or issuer'" - Stephens

Hovde Group says its read on the announcement is primarily around bolstering the bank's capital ratio and supporting loan growth

"We're surprised that this is BWB's first come to market for common since the bank's 2018 IPO given the company's growth ambitions (and success) over the past near-decade as a public institution" - Hovde

As of last close, BWB stock up 4.3% YTD