Key Takeaways:
- $3.9B merger creates a much larger regional bank
- The merger combines complementary banking strengths.
- The deal is targeting significant shareholder returns.
EverBank Financial Corp. and WaFd, Inc. have agreed to a **$3.9 billion reverse merger** that will create a banking organization with approximately **$75 billion in assets**, bringing together EverBank’s nationwide digital banking platform and WaFd’s established commercial banking and branch network.
Under the agreement, EverBank Financial Corp. will merge into WaFd, with WaFd remaining the publicly traded holding company. Following the completion of the transaction, however, WaFd will change its name to **EverBank Financial Corp.** and trade on the Nasdaq under the new ticker symbol **EVBK**. EverBank will be designated as the accounting acquirer.
The transaction is expected to close in **early 2027**, subject to regulatory approval, approval from WaFd shareholders, and other customary closing conditions.
The ownership structure will also change following the merger. Existing EverBank investors, including funds managed by Stone Point Capital, Warburg Pincus, Reverence Capital Partners, Sixth Street and Bayview Asset Management, along with TIAA, are expected to own approximately **59.2%** of the combined company. WaFd shareholders will hold the remaining **40.8%**.
The deal represents a significant expansion for both institutions, creating a larger regional bank with a broader geographic presence and diversified sources of deposits and lending.
EverBank and WaFd Bring Complementary Strengths
The proposed combination is designed to bring together two banking models with different but complementary strengths. EverBank has built a nationwide specialty banking business supported by digital banking capabilities, consumer deposits, and commercial lending operations. WaFd, headquartered in Seattle, operates more than **200 branches across nine western states** and has a strong presence in commercial and community banking.
Following the merger, the combined bank is expected to operate **more than 250 financial centers**. WaFd’s commercial customer base and deposit franchise would complement EverBank’s retail and online banking operations, creating a more diversified funding platform.
Both banks have also increased their focus on commercial banking in recent years. EverBank has expanded into areas including commercial real estate bridge lending, life insurance premium finance, Small Business Administration lending and fund finance. WaFd has developed its commercial lending, SBA, and commercial real estate businesses through its established relationships across the western United States.
The transaction is also expected to expand wealth management opportunities. EverBank’s affluent customer base could provide additional opportunities to grow WaFd’s registered investment adviser business and increase fee-based revenue.
Leadership of the combined organization has been outlined as part of the agreement. **Greg Seibly**, EverBank’s chief executive, will become CEO, while **Brent Beardall**, WaFd’s CEO and vice chairman, will serve as president. Robert Radway, EverBank’s current chairman, is expected to become chairman of the combined company.
Merger Targets Higher Earnings and Profitability
The companies expect the merger to improve operating efficiency and strengthen financial performance as the combined organization gains greater scale.
Once expected cost synergies are fully realized, the company projects a **return on tangible common equity of approximately 15%**. WaFd shareholders are expected to benefit from approximately **29% accretion to 2027 earnings per share**, while the dilution to tangible book value is projected to be recovered in less than two years.
The transaction also comes as regional banks seek greater scale, stronger deposit bases and broader digital capabilities to compete with larger financial institutions. By combining EverBank’s nationwide platform with WaFd’s western branch network and commercial banking expertise, the companies expect the enlarged institution to have a broader customer base and more diversified operations.
Until regulatory and shareholder approvals are secured and the transaction closes, EverBank and WaFd will continue to operate as separate institutions.
If completed as planned, the merger will create a significantly larger regional banking organization under the EverBank name, combining digital and physical banking capabilities while expanding its commercial lending, wealth management, and deposit-gathering operations.
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