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UPDATE: D.A. Davidson & Co. Reiterates On Bridge Capital As Loan Production Drives Continued Growth

Dwight Einhorn

In a report published Wednesday, D.A. Davidson & Co. analyst Gary P. Tenner reiterated a Buy rating on Bridge Capital (NASDAQ: BBNK), but lowered the price target from $27.50 to $26.00.

In the report, D.A. Davidson & Co. noted, “BBNK reported average loan growth of 18% annualized, with the commercial portfolio driving most of the growth. Period-end C&I loans increased $36 million (23% annualized), attracting new relationships through its Technology and Banking groups. Apart from C&I, the construction book was the only other segment to see significant growth, while the asset-based lending portion saw a continued decline, falling 6% sequentially. The factoring and asset-based lending segment is expected to continue to taper as the economy continues to improve. The overall pipeline appears to stay strong. Average loan yields increased 7bp to 6.45%, aided by a higher level of loan related fees.”

Bridge Capital closed on Tuesday at $21.79.

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