WaFd and EverBank Financial agree on $3.9bn reverse merger

WaFd and EverBank Financial Corp have agreed to a merger under which EverBank Financial will be folded into WaFd.

According to media reports, the transaction is valued at $3.9bn.

Under the agreed terms, EverBank Financial shareholders will be issued WaFd common stock in exchange for their current holdings.

After the deal closes, WaFd is set to stay listed on the public market but will be renamed as EverBank Financial and trade on Nasdaq under the ticker EVBK.

For accounting purposes, EverBank Financial will be treated as the acquirer.

Once the holding company merger is completed, WaFd Bank will be combined into EverBank.

The transaction would broaden the deposit base by bringing together WaFd Bank’s commercial customers and EverBank’s retail customers.

This would be supported by several deposit-gathering channels, including a network of more than 250 financial centres, with limited dependence on wholesale funding.

WaFd CEO and vice chairman Brent Beardall said: “It is a privilege every day to work side by side with the WaFd team of bankers. This opportunity to partner with EverBank is an elegant fit, and it allows us to carry forward the ethos of WaFd and deliver improved returns for our shareholders. Both banks bring exceptional credit quality and strong capital to the partnership.

“I’m honoured to work with Greg and our team to challenge the status quo for the banking industry.”

The combined bank would expand WaFd Bank’s wealth management business by using EverBank’s affluent client base to grow Registered Investment Advisor offerings and increase fee-income streams.

Following completion, investors in EverBank Financial are expected to own about 59.2% of the combined company on a pro forma basis. WaFd shareholders are expected to hold the remaining 40.8%.

The investors are funds managed by Stone Point Capital, Warburg Pincus, Reverence Capital Partners, Sixth Street, Bayview Asset Management, and TIAA.

The transaction is expected to close in early 2027, subject to regulatory clearance, and other customary closing conditions.

EverBank Financial Corp CEO Greg Seibly said: “Today, we’re starting down an exciting new path with the merger of EverBank and WaFd Bank. Simply put, our two banks are stronger together. The combination of EverBank and WaFd Bank will open many new opportunities for nationwide growth and financial performance. “By joining together, we’ll leverage our existing scalable consumer and commercial banking platforms to deliver high-value products and services to clients across the country in the ways that best meet their unique needs and goals.”