Activist Investor Pressure on Regional Banks: A Strategic Opportunity in HoldCo's Target List?

The rise of activist investor campaigns in the banking sector has become a defining feature of 2025's financial landscape. HoldCo Asset Management, a firm managing $2.6 billion in assets, has emerged as a key player, targeting regional banks like Columbia Banking System (COLB) and Eastern Bankshares (EBA) to challenge governance practices and unlock shareholder value. This analysis evaluates whether these campaigns represent strategic opportunities, focusing on governance risk, valuation dislocation, and the broader implications for institutional investors.

Governance Risk and Activist Leverage

HoldCo's engagement with Columbia Banking System underscores the tension between activist agendas and corporate governance. In September 2025, the firm presented a detailed critique to the board, arguing that management's reliance on high-risk strategies-such as aggressive acquisitions-has exposed shareholders to undue risk, as laid out in HoldCo's presentation to Columbia's board. The presentation, titled "Failed Gambles Borne Solely By Owners – Protective Covenants Needed," called for stronger board oversight and capital preservation measures. This aligns with HoldCo's broader philosophy of prioritizing long-term stability over short-term growth, a stance that contrasts with Columbia's recent focus on expanding its market reach through the acquisition of Pacific Premier Bancorp, as reflected in the Columbia Q2 2025 transcript.

For Eastern Bankshares, HoldCo's approach is more confrontational. The firm has acquired a 3% stake and is pushing for a sale of the bank to a larger regional competitor like M&T Bank. According to a MarketScreener article, HoldCo criticizes Eastern's management for poor capital allocation, including three acquisitions over five years that it claims eroded shareholder value. The activist has also signaled a willingness to escalate pressure in 2026, including proxy fights to replace board members. This reflects a pattern seen in prior campaigns, such as HoldCo's successful push for Comerica's merger with Fifth Third, as reported by MarketScreener.

Valuation Dislocation: A Tale of Two Banks

Valuation metrics reveal divergent narratives. Columbia Banking System has demonstrated robust profitability, with a return on tangible common equity (ROE) of 16.85% in Q2 2025, per the Columbia Q2 2025 transcript. Its price-to-book (P/B) ratio of 0.98 as of July 2025 suggests the market values its tangible assets closely, according to Koyfin's dividend data, while a 5.51% dividend yield offers income-focused investors an attractive proposition (Koyfin). However, HoldCo's concerns about governance risk-particularly around its acquisition strategy-highlight potential misalignments between management's vision and shareholder interests.

Eastern Bankshares, by contrast, lacks comparable transparency in its valuation metrics. While no 2025 P/B ratio or ROE data is available, HoldCo's push for a sale implies a belief that the bank's intrinsic value is underappreciated. The activist's criticism of Eastern's capital allocation-specifically its 2020 IPO-related acquisitions-suggests a view that the bank's current trajectory is suboptimal. If HoldCo's campaign succeeds, the resulting liquidity event could create a valuation dislocation that benefits opportunistic investors.

Strategic Implications for Investors

The campaigns against these banks illustrate a broader trend: activist investors are increasingly targeting regional banks with governance vulnerabilities and underperforming capital structures. For institutional investors, the key question is whether these interventions represent value-creation opportunities or short-term volatility.

In Columbia Banking System's case, the board's response to HoldCo's demands will be critical. If management resists, the risk of a proxy battle could weigh on the stock, despite its strong ROE and dividend yield. Conversely, a compromise-such as adopting stricter governance covenants-might enhance long-term stability.

For Eastern Bankshares, the potential for a forced sale introduces both risk and reward. A merger could unlock synergies, but it also depends on the acquirer's strategic fit and pricing discipline. HoldCo's prior success with Comerica suggests it has the playbook to influence favorable outcomes, according to MarketScreener, but the absence of clear governance risk scores or valuation metrics for Eastern complicates due diligence.

Conclusion

Activist pressure on regional banks like Columbia and Eastern Bankshares reflects a broader shift in investor priorities toward governance accountability and capital efficiency. While HoldCo's campaigns are not without controversy, they highlight areas where institutional investors can assess dislocation and governance risk to identify strategic opportunities. The coming months will test whether these interventions translate into sustainable value creation-or merely short-term market noise.