Core Insights - Eastern Bankshares is focused on organic growth and post-merger integration, but remains open to evaluating future merger opportunities if they arise [1][6] - The bank's stock fell over 4.5% following comments from the CEO about potential mergers, amid pressure from an activist investor [2][9] Financial Performance - Eastern reported a third-quarter net income of $106.1 million, a significant increase from a loss of $6.2 million in the same quarter last year [10] - Earnings per share reached $0.53, exceeding consensus estimates of $0.37 [10] - Total revenue increased to $241.5 million from $203.4 million year-over-year, with net interest income rising to $200.2 million from $169.9 million [10] - Fee income also grew to $43.1 million, up from $33.5 million a year ago [10] - Wealth management assets under management reached a record high of $9.2 billion [11] - Total expenses decreased by approximately $20 million to $140.4 million, primarily due to reduced nonoperating costs [11] Activist Investor Pressure - HoldCo Asset Management published a report accusing Eastern's leadership of diluting shareholder value through overpayment in acquisitions, including the $490 million HarborOne Bancorp deal [3][4] - HoldCo suggested that Eastern should refrain from further acquisitions and return excess capital to shareholders, or face a potential proxy battle [4][5] - The presence of an activist investor may drive Eastern to improve operating performance, according to analysts [7]
Shares in Mass. bank drop after talk of more potential M&A