WaFd and EverBank Financial have agreed to a $3.9 billion all-stock reverse merger that would create a regional bank with approximately $75 billion in assets. WaFd will issue about 103 million shares to acquire EverBank, and EverBank shareholders are set to hold 59.2% of the combined company. WaFd Inc. plans to rebrand as EverBank Financial, while WaFd Bank will merge into EverBank, leaving EverBank as the surviving bank subsidiary. The companies target a first-quarter 2027 closing, subject to regulatory and WaFd shareholder approvals. The combined company projects $788 million in pro forma net income for 2027, 14.5% above the banks' stand-alone projections, and expects return on tangible common equity to exceed 15%. WaFd reported an 11% return on tangible common equity at the end of the second quarter, when single-family mortgages accounted for more than one-third of its loan portfolio despite its January 2025 plan to leave mortgage lending. The merged company is considering selling part of WaFd's $7.4 billion legacy residential portfolio and redeploying proceeds into higher-yielding commercial loans. EverBank brings a larger commercial and consumer platform, while WaFd contributes 212 branches across nine states. EverBank's digital-only subsidiary will remain in operation as EverBank Direct, focusing on new markets and areas where the bank has a smaller presence. Greg Seibly will become chief executive officer of the combined company and Brent Beardall will serve as president. Piper Sandler analyst Matthew Clark said the transaction is a logical combination, though investors may need time to assess EverBank's strategy.