EverBank completes reverse merger with WaFd (WAFD.US) for $3.9 billions, confirming the US banking industry's "scale for survival" trend

According to Golden Ten Data APP, Florida-based digital bank EverBank Financial announced on Monday that it has agreed to a reverse merger with Seattle-based WaFd (WAFD.US) at a price of $3.9 billion. The transaction will create a regional bank with assets of approximately $75 billion.

According to the agreement, EverBank will be merged into WaFd, which, after changing its name to “EverBank Financial Corp” and switching its stock ticker to “EVBK,” will continue to operate as a public company listed on Nasdaq. After the transaction is completed, current EverBank shareholders will hold about 59.2% of the merged company's equity, while WaFd shareholders will hold the remaining 40.8%.

Both parties expect the merger to be completed by early 2027, and it is anticipated to boost WaFd's 2027 earnings per share by about 29%, with the tangible book value dilution expected to be recovered within two years.

By asset size, the combined bank will rank among the top 50 banks in the United States. Industry executives increasingly believe that scale is more important than ever. This was one of the main topics discussed by WaFd CEO Brent Beard and EverBank CEO Greg Seibly over dinner as they considered the potential deal.

"You have to get bigger to survive," Seibly said in an interview. Many banks are facing "the same challenges."

Business complementarity is another rationale behind this merger. EverBank primarily operates as a digital bank, with only a few dozen branches mainly in Florida and California. WaFd, on the other hand, has more than 200 branches in Washington state, Oregon, and other western states. Seibly pointed out: "The strengths of one side perfectly fill the gaps of the other."