Combination will create a regional bank with about $75 billion in assets and give EverBank investors majority control
Florida-based EverBank Financial has agreed to acquire Pacific Northwest lender WaFd in a $3.9 billion reverse-merger transaction that will create a regional bank with roughly $75 billion in assets, the companies said Monday.
The transaction will combine EverBank’s banking and financial-services operations with WaFd’s established branch network and customer base across the Pacific Northwest, creating a larger regional lender at a time when banks are increasingly pursuing scale to improve efficiency and compete for deposits and commercial customers.
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Under the agreement, EverBank will merge into WaFd, allowing WaFd to remain a publicly traded company. Following completion, the combined company will be renamed EverBank Financial Corp and will trade on the Nasdaq under the ticker EVBK.
EverBank shareholders will collectively own approximately 59.2% of the combined company, while existing WaFd shareholders will hold the remaining 40.8%.
The transaction is expected to close in early 2027, subject to regulatory approvals and other customary closing conditions. The companies said the combination is expected to increase WaFd’s 2027 earnings per share by approximately 29% and recover the tangible book value dilution associated with the transaction in less than two years.
The deal gives EverBank a significantly larger balance sheet and provides a platform for expanding its presence beyond its existing Florida base.
The transaction offers WaFd access to EverBank’s capital and earnings profile while allowing the Pacific Northwest lender to participate in a larger institution with greater scale. The roughly $75 billion pro forma asset base would place the combined bank among the larger U.S. regional lenders, potentially giving it greater capacity to invest in technology, lending platforms and deposit-gathering capabilities.
The transaction also indicates the continued appeal of bank consolidation as lenders contend with higher technology and compliance costs, intense competition for deposits and pressure on net interest margins. Larger institutions can spread those expenses across a broader asset base while diversifying revenue streams and geographic exposure.
The reverse-merger structure has gained attention because EverBank, the acquiring business, will merge into WaFd, the legal surviving public company. The arrangement allows the combined institution to preserve a public-market listing while transferring control to EverBank’s existing shareholders.
The projected 29% increase in 2027 earnings per share for WaFd shareholders is a central financial justification for the transaction. The companies also expect to recover tangible book value dilution in less than two years, suggesting that management sees the deal as capable of generating sufficient earnings and capital benefits to offset the initial impact on book value.
For bank investors, the ability to restore tangible book value relatively quickly can be a great measure of whether an acquisition creates value rather than simply increasing the size of the balance sheet. The combined company will also have a broader geographic footprint, potentially reducing its dependence on economic conditions in any single regional market.
The transaction nevertheless leaves execution as a critical factor. Integrating banking operations, technology systems, employees, and customer relationships can create costs and operational risks, while the expected earnings benefits depend on achieving projected synergies and maintaining asset quality.
Regulatory approval will also be closely watched given the size of the resulting institution.
The deal comes as the U.S. banking industry continues to adjust to a higher-cost operating environment and changing competitive dynamics.
Regional banks have faced pressure to maintain attractive deposit rates while protecting lending margins, particularly as customers become more sensitive to yields on cash and alternative investment products. At the same time, banks need greater scale to fund technology investments and meet complex regulatory requirements.
The EverBank-WaFd combination provides a response to those pressures by bringing together two complementary franchises and creating a substantially larger balance sheet.
The success of the deal will ultimately depend less on the headline $3.9 billion valuation than on whether the combined bank can deliver the projected earnings growth while retaining customers, controlling costs and maintaining strong credit quality. If completed as planned, the transaction will create a new regional banking platform with approximately $75 billion in assets and a shareholder structure in which EverBank investors hold the controlling economic interest.