Eastern in Mass. should sell itself: Activist investor

Core Viewpoint - Eastern Bankshares is under scrutiny from activist investor HoldCo Asset Management, which claims the bank has misallocated its excess capital and should consider selling itself to a larger institution [1][2][9]. Group 1: Activist Investor's Claims - HoldCo Asset Management has accused Eastern's leadership of diluting shareholder value over the past five years through overpayment for acquisitions and ineffective securities restructurings [2][5]. - The activist investor suggests that Eastern should explore a sale to a larger bank, such as M&T Bank, and is prepared to engage in a proxy battle if necessary [2][3][9]. Group 2: Financial Performance and Capital Allocation - Eastern Bankshares raised $1.8 billion through its initial public offering and has maintained high capital ratios, but has since deployed most of its excess capital through acquisitions and restructurings [5][6]. - Following the acquisition of HarborOne Bancorp for $490 million, Eastern's excess capital is expected to be nearly depleted, aligning with its target capital ratio of 12% [6][7]. Group 3: Recent Developments and Market Reaction - Eastern's assets are projected to increase from $25 billion to $30 billion with the HarborOne acquisition, which has been approved by regulators [7]. - The market reacted positively to the activist investor's proposal, with Eastern's shares rising over 3% [3].