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WaFd Stock Falls 5.3% on $3.9B EverBank Reverse Merger

PR Newswire2 min read6 sources

Why is WaFd stock down today?

WaFd (WAFD) stock fell 5.3% to $34.36 on Tuesday after the bank announced a $3.9 billion reverse merger with EverBank that handed 59.2% of the combined company to private investors.

Key numbers

Deal Value$3.9Breverse merger valuation for the combined entity
Combined Total Assets$75B+$47B added from EverBank vs. WaFd standalone $28B
2027 EPS Accretion~29%projected boost to WaFd shareholders' earnings per share post-close
EverBank Investors' Stake59.2%of combined company; WaFd shareholders retain 40.8%
WAFD 1-Day Move (Sept 8)-5.3%to $34.36 on announcement day on dilution concerns (per [4])
Tangible Book Value Earn-back<2 yearsperiod to recover book value dilution from new share issuance

What happened

WaFd (WAFD) stock fell 5.3% to $34.36 on Tuesday after the bank announced a $3.9 billion reverse merger with EverBank that handed 59.2% of the combined company to private investors. The deal creates a bank with $75 billion in total assets that will trade on Nasdaq as EVBK — one of the largest US regional banking combinations of 2026. WaFd's 200-plus western branches combine with EverBank's California financial centers and digital lending platform to span 11 states. The merger is projected to boost WaFd shareholders' earnings per share by about 29% in 2027, once the deal closes in early 2027.

Why it matters

WaFd's merger shows that midsize US banks face growing pressure to get bigger — at $75 billion in combined assets, the new entity gains scale to compete with larger banks on technology, commercial lending, and deposit rates. For current WaFd shareholders, their stake in the combined bank shrinks to 40.8%, but the deal projects a 29% boost in earnings per share in 2027 as the payoff. For EverBank's private equity backers — including Stone Point Capital and Warburg Pincus — the deal is a path to a public market listing without a traditional IPO.

Who this affects

Marketmixed
Medium impact
Regional bank stocks may see more M&A activity ahead.
Companymixed
High impact
WaFd shareholders diluted now; 29% EPS gain expected 2027.
Competitorsbearish
Medium impact
Smaller western regional banks face a larger rival.
Industrybullish
Medium impact
Validates the case for consolidation among US regional banks.

WaFd vs Western Alliance, Columbia Banking, Banner Corp

WaFdWAFD$2.5B$28B+9.0%10.7x
Western AllianceWAL$9.1B$90B+——
Columbia BankingCOLB—$65.4B+7.9%—
Banner CorpBANR$2.4B—+13.0%—

As of 2026-09-16

How we got here

  1. WaFd and EverBank sign definitive $3.9B reverse merger agreement.

  2. WAFD stock drops 5.3%; management hosts investor call on deal terms.

  3. WaFd shareholder vote expected; regulatory filings to advance.

  4. Deal closes; bank renames to EverBank Financial Corp, trades as EVBK.

What to watch

  • WaFd shareholder vote outcome; bloc opposition could block the deal.Q4 2026
  • Federal Reserve and OCC approval, which sets the closing timeline.Q1 2027
  • EVBK first Nasdaq trading day, when EverBank's private backers gain liquidity.Q1 2027

Educational content only. Not investment advice.

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