WaFd and EverBank to Combine in $3.9 Billion Reverse Merger

Florida-based digital bank EverBank Financial announced Monday it has agreed to merge with Seattle-based WaFd Inc. (NASDAQ: WAFD) in a $3.9 billion reverse merger. The transaction will create a regional banking powerhouse with approximately $75 billion in assets, placing it among the top 50 largest banks in the United States.

Transaction Details

Under the terms of the agreement, EverBank will merge into WaFd. The combined entity will operate as a publicly traded company on the Nasdaq exchange, rebranding as "EverBank Financial Corp" and adopting the new stock ticker "EVBK."

Upon completion, existing EverBank shareholders will own approximately 59.2% of the combined company, with WaFd shareholders holding the remaining 40.8%. The banks anticipate the merger will close in early 2027 and project it will be significantly accretive, boosting WaFd's 2027 earnings per share by an estimated 29%. Any tangible book value dilution is expected to be earned back within two years.

The Drive for Scale

The merger underscores a key trend in the U.S. banking industry, where institutions are increasingly pursuing scale to remain competitive. Executives from both banks cited size as a critical factor in their decision to combine.

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"You have to get bigger to survive," EverBank CEO Greg Seibly said in an interview, noting that many banks are facing the same challenges. The increased asset base allows the combined bank to better absorb regulatory costs, invest in technology, and compete with larger national players.

Complementary Strengths

The deal is also driven by the complementary nature of the two banks' business models. EverBank operates primarily as a digital bank with a limited physical footprint, concentrated in Florida and California. In contrast, WaFd maintains a traditional network of over 200 branches across Washington, Oregon, and other western states.

This combination marries EverBank's digital platform with WaFd's established branch network and deposit base. "One's strength fills the other's weakness," Seibly added, highlighting the strategic fit between the two organizations.