EverBank poised for $3.9 billion merger with Washington-based WaFd (Courtesy of the Jacksonville Business Journal) — EverBank Financial Corp, one of the largest banks in Jacksonville, is pursuing a merger with Washington-based WaFd Inc. (Nasdaq: WAFD) in a deal valued at $3.9 billion.
The reverse merger, which hinges on approval from shareholders and regulators, is anticipated to be completed early next year.
Under the terms of the deal, WaFd will continue as the holding company but assume the EverBank name — simultaneously catapulting the Jacksonville-born brand across the western U.S. and creating the region’s fourth-largest bank holding company.
Based in Seattle, WaFd is the second-largest bank based in Washington, with $27.55 billion in assets as of the first quarter. It has 2,061 employees companywide and operates more than 200 branches across nine states.
EverBank, which commands 23.99% of Jacksonville’s market share of local deposits, has $34.8 billion in assets as of the latest FDIC data. It operates 40 branches across California, Missouri, New York and Florida. As of last year, the bank had 1,621 employees.
The merged entity would have about $75 billion in assets, with 254 branches in 11 states and a direct digital bank.
“Simply put, our two banks are stronger together,” EverBank CEO Greg Seibly said. “The combination of EverBank and WaFd Bank will open many new opportunities for nationwide growth and financial performance.”
EverBank shareholders would receive common stock in WaFd in exchange for their shares.
Once the merger is completed, WaFd will change its name to EverBank and remain on the Nasdaq, trading under the ticker symbol EVBK.
EverBank investors — including funds managed by Stone Point Capital, Warburg Pincus, Reverence Capital Partners, Sixth Street and Bayview Asset Management, along with TIAA — will own 59.2% of the combined company. WaFd investors will control the other 40.8%.
Seibly will be CEO of the new combined bank, and current WaFd CEO Brent Beardall will be president. Seibly and Beardall will sit on the new board of directors, which will have 13 seats, seven for legacy EverBank directors and six for WaFd directors.
EverBank chairman Robert Radway will become chairman of the new board.
In January, WaFd’s Community Reinvestment Act (CRA) rating was upgraded by the Federal Deposit Insurance Corp. from “needs to improve” to “satisfactory.” The bank had been downgraded in December 2024 and appealed the decision, with the FDIC’s Supervision Appeals Review Committee upgrading the rating earlier this month.
The “needs to improve” rating covered the period from June 2020 to March 2024, as regulators usually review CRA compliance every few years. The low rating prohibited the Washington bank from expanding.
Photo courtesy of WaFd Bank