TimesSquare Capital Management, LLC on Eastern Bankshares, Inc.
Thesis
TimesSquare established a new position in Eastern Bankshares, a New England regional bank. The central part of the thesis is significant excess capital that can finance elevated share repurchases. The manager also expects healthy returns and describes the bank’s credit as clean. That balance-sheet strength is especially important in the higher-rate and restrictive monetary environment described elsewhere in the commentary.
“The bank's significant excess capital should support continued elevated share repurchases, along with healthy returns and clean credit.”