$WAFD

WaFd Agrees to $3.9 Billion Reverse Merger Deal With EverBank Financial

WaFd (WAFD) shares were up early Tuesday after it agreed to combine with private financial holding company EverBank Financial in a reverse merger transaction worth $3.9 billion.EverBank Financial, the parent company of specialty bank EverBank, will merge with and into WaFd, which owns WaFd Bank, according to a late Monday statement. WaFd's stock gained 2.7% in the most recent premarket activity.Upon completion of the transaction, WaFd will continue as the publicly traded financial holding company. It will be renamed EverBank Financial, and its shares will trade on Nasdaq under the ticker EVBK. WaFd Bank will also merge with and into EverBank, according to the companies."The combination of EverBank and WaFd Bank will open many new opportunities for nationwide growth and financial performance," EverBank Financial Chief Executive Greg Seibly said in the statement. "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."The transaction, which requires approval from WaFd's shareholders and clearance from regulators, is expected to complete early next year. Following completion, EverBank Financial's investors will own roughly 59.2% of the combined company on a pro forma basis, while WaFd shareholders will hold the remaining 40.8% stake.The combined bank is expected to generate about 29% in per-share earnings accretion in 2027 for WaFd shareholders, according to the statement. The lenders also anticipate more stable funding and faster growth of WaFd's wealth management platform.The merger is expected to "deliver improved returns for our shareholders," WaFd CEO Brent Beardall said. "Both banks bring exceptional credit quality and strong capital to the partnership."Beardall will serve as president of the combined entity, while Seibly will be CEO.During an earnings call in July, Beardall said he expected banking-sector merger and acquisition activity to increase over the next two years amid a difficult operating environment. He said at the time that WaFd was "always looking at opportunities."PNC Financial Services (PNC) agreed to buy FirstBank Holding for $4.1 billion in September last year, while Fifth Third Bancorp (FITB) announced a $10.9 billion deal to acquire Comerica (CMA) in October.