WaFd, Inc. (WAFD) is set to merge with EverBank Financial Corp, a move expected to enhance WaFd’s earnings profile significantly. The merger, anticipated to close by early 2027, will result in a projected 29% earnings per share (EPS) accretion for WaFd shareholders and recovery of tangible book value dilution within two years. Post-merger, legacy EverBank investors will own 59.2% of the combined entity, to be renamed EverBank Financial Corp, while WaFd shareholders will hold 40.8%.
The deal aims to create a more robust funding mix by integrating WaFd’s commercial deposit relationships and branch network with EverBank’s direct-to-consumer platform. This is expected to mitigate reliance on wholesale funding and support balance-sheet growth. Both banks will leverage their strengths, with WaFd enhancing its wealth management services through EverBank’s affluent client base.
In a broader industry context, this merger comes as Western regional banks, including Columbia Banking System, Inc. and Western Alliance Bancorporation, are also pursuing expansions through mergers and geographical diversification. WaFd’s stock has seen a 17.7% increase over the last six months, outperforming the industry average of 13.1%.
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