EverBank to Merge with WaFd Inc. in $3.9 Billion Deal
EverBank Financial has agreed to merge with publicly traded WaFd Inc. (NASDAQ:WAFD) in a $3.9 billion reverse merger, creating a regional bank with approximately $75 billion in assets. The new entity will retain the EverBank name and trade under the ticker symbol EVBK on Nasdaq. This combination brings together EverBank's digital banking platform and specialty lending expertise with WaFd’s extensive branch network across the Western U.S., aiming to create greater scale, diversification, and cost savings. The merger is expected to significantly benefit both parties: EverBank will gain access to a public listing, broader funding sources, and reduced reliance on wholesale financing. For WaFd, it offers increased earnings potential—projected 29% EPS growth in 2027—and expanded customer reach through digital capabilities and affluent clients. However, the deal still requires regulatory and shareholder approvals before finalizing. The transaction also highlights strategic diversification for EverBank as its loan portfolio shifts from heavy exposure to nonbank financial companies—currently over 40%—to around 28%. This shift could help mitigate risks in a challenging private-credit market. Management anticipates the combined company will achieve pro forma return on tangible common equity of about 15%, though integration challenges and time lags for synergy realization remain potential hurdles.
Tickers: $WAFD
Topics: banking digital banking mergers and acquisitions regional banks