Feb. 25 at 4:42 PM
Hingham Institution for Savings fell after short seller Wolfpack Research disclosed a short position, alleging undisclosed foreclosures and distressed loans.
Wolfpack claims the bank is overleveraged and under-reserved, identifying over
$125 million in high-risk loans in Washington, D.C. It said two loans totaling
$5.2 million were foreclosed in January but not classified as nonperforming as of Dec. 31, 2025. It also cited a
$17 million loan on a vacant property at 1701 Park Road NW and a
$31 million loan at 50 M St NW that is 270 days delinquent.
The firm noted roughly 40% of the bank’s 13-F portfolio is in Alphabet Inc. , adding that nearly half of 2023–2025 earnings came from mark-to-market gains. Wolfpack estimates downside of about 60%+, citing limited liquidity and capital buffer. The bank trades at 1.38x book value versus 1.20x for the SPDR S&P Regional Banking ETF .
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