EverBank and WaFd Announce Merger to Strengthen Financial Profiles
Seattle-based WaFd Inc. has announced a merger with Jacksonville, Florida-based EverBank in an effort to address key financial challenges for both institutions. The combined entity is expected to create a $75 billion regional bank with enhanced profitability and earnings power. For EverBank, the deal offers diversification from its reliance on higher-cost digital deposits, while WaFd aims to accelerate its shift from traditional thrift operations toward commercial banking. The merger is projected to generate pro forma net income of $788 million in 2027—14.5% more than either bank could achieve independently—and potentially allow the new company to sell parts of WaFd’s residential mortgage portfolio and reinvest proceeds into higher-yielding commercial loans. The deal, expected to close by early 2027, is seen as a strategic move that analysts believe will improve returns for both institutions. Piper Sandler analyst Matthew Clark views the merger favorably, noting it could position the combined bank to outperform either company independently in terms of profitability and competitive returns.
Tickers: $WAFD
Topics: EverBank Financial merger regional banking strategy WaFd Bank