WaFd's EverBank Merger Deal: A Boost to Earnings & Scale?

WaFd, Inc.’s WAFD planned merger with EverBank Financial Corp is expected to materially strengthen its earnings profile and competitive positioning. For WaFd shareholders, the expected 29% EPS accretion in 2027 stands out, while tangible book value dilution is projected to be recovered in less than two years. The combined company is also targeting a return on tangible common equity of nearly 15% once anticipated cost synergies are fully captured.

The structure of the deal is notable. EverBank Financial will merge into WaFd, with WaFd remaining the surviving holding company before being renamed EverBank Financial Corp and adopting the Nasdaq ticker “EVBK.” At the bank level, WaFd Bank will merge into EverBank, N.A., which will continue as the operating bank. Following completion, legacy EverBank investors are expected to own 59.2% of the combined company, while existing WaFd shareholders will hold 40.8%.

The deal will likely improve WaFd’s funding mix by combining WaFd Bank’s commercial deposit relationships and branch network with EverBank’s nationwide direct-to-consumer deposit platform. This broader deposit base could enhance funding stability, reduce reliance on wholesale sources and support balance-sheet growth.

Commercial banking opportunity is another meaningful positive. WaFd brings established commercial real estate (CRE) capabilities, while EverBank has expanded across commercial and industrial lending, SBA lending, CRE bridge finance, fund finance and other specialized businesses. The merger could also accelerate WaFd’s wealth-management ambitions by leveraging EverBank’s affluent customer base and expanding registered investment advisor offerings.

Notably, WAFD’s prior acquisition of Luther Burbank Corporation provides relevant integration experience. That transaction expanded WaFd’s California presence and gave management experience integrating a sizable banking franchise. Overall, the EverBank deal appears capable of accelerating WAFD’s transition toward a larger, more diversified and commercially focused banking model. Still, regulatory approvals, shareholder approval, integration execution and delivery of projected synergies will remain key factors ahead of the expected early-2027 closing.

Expansion Efforts by WAFD’s Peers

WaFd’s expansion comes as several western regional-bank peers like Columbia Banking System, Inc. COLB and Western Alliance Bancorporation WAL pursue scale and geographic diversification.

Columbia Banking completed its acquisition of Pacific Premier Bancorp in 2025, significantly increasing its Southern California presence and creating a $70-billion-asset franchise, while continuing to add offices in markets such as Colorado and Utah.

Western Alliance has similarly been investing in expansion, including a new full-service San Francisco office in 2026 and continued development of specialized commercial lending channels.

Against this backdrop, the EverBank combination could help WAFD keep pace with peers that are increasingly using acquisitions, new-market entry and specialized banking capabilities to strengthen their competitive positions.

WaFd’s Price Performance & Zacks Rank

Over the past six months, WAFD shares have gained 17.7%, outperforming the industry’s 13.1% growth.

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Currently, WaFd carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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