Bank with large Idaho operation to merge with Florida firm. Future brand not revealed
A bank with a large Boise-area presence is set to buy a larger bank based across the country, in what’s being dubbed a “reverse merger.”
WaFd Bank, which is based in Seattle, will buy EverBank Financial of Jacksonville, Florida. WaFd has more than two dozen branches across Idaho and was previously known as Washington Federal Bank.
WaFd is valued at $2.7 billion and has about $28 billion in assets, while EverBank is valued at $3.9 billion and counts $47 billion in assets. EverBank operates primarily as a digital-only bank, with a handful of branches in California and Florida.
WaFd currently operates what it describes as a “second headquarters” in Boise, with an operation in West Boise.
The deal is structured to merge the private EverBank into WaFd Inc., which is a public company. It will allow EverBank’s shareholders, which include several large private equity firms, to cash out their stakes in EverBank on the open market. While WaFd is technically the acquiring firm, WaFd Inc. will change its name to EverBank, and EverBank’s shareholders will own 59.2% of the merged company.
EverBank said the deal will result in “approximately 15%” in “expected cost synergies,” which often includes layoffs of overlapping operations or staff.
The companies did not explicitly say what would happen to the WaFd Bank brand, but instead said that nothing changes until the deal closes. An information page noted, “There will be a transition period as we integrate the operations and systems of the two banks. Once the integration is complete, clients will be able to use locations across the combined bank.”
EverBank is perhaps best known outside of its operating areas as the sponsor of EverBank Stadium in Jacksonville, the home of the NFL’s Jaguars.
“This opportunity to partner with EverBank is an elegant fit, and it allows us to carry forward the ethos of WaFd and deliver improved returns for our shareholders,” WaFd CEO Brent Beardall said. “Both banks bring exceptional credit quality and strong capital to the partnership.”
Beardall said that the combination will allow WaFd’s experience to boost EverBank’s commercial real estate lending options, while EverBank’s 28 banks in California will enhance WaFd’s West Coast operations. EverBank’s CEO Greg Geibly said the two banks will be “better together” and allow the combined firm to offer additional wealth management services.