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In a bold consolidation that could redraw the map of American banking, EverBank Financial Corp. and WaFd Inc. have locked arms in a $3.9 billion reverse merger. Powerhouse firms Wachtell Lipton Rosen & Katz and Simpson Thacher & Bartlett LLP are steering the high-stakes transaction.

The parent companies of EverBank NA and WaFd Bank declared Monday that WaFd Inc. will emerge as the surviving financial holding company and stay publicly traded. Yet it will shed its name for EverBank Financial Corp. and debut on the Nasdaq under a fresh ticker—like a seasoned vessel raising a new flag after absorbing a formidable ally.

Profitability and Scale on the Horizon

The deal, targeted for early 2027 completion, promises “significantly improved profitability” by uniting “aligned consumer and commercial capabilities and strategies,” the companies stated. Greater operational scale and sharper efficiencies are expected to fortify the enlarged bank’s returns profile.

Both institutions have already charted a parallel course, accelerating away from residential and consumer lending toward commercial banking and broader loan diversification. EverBank has organically expanded its legacy commercial lending and finance platform while launching fresh channels such as commercial real estate bridge lending. WaFd has harnessed its western U.S. footprint to build offerings in Small Business Administration lending, commercial loans and commercial real estate.

Coast-to-Coast Footprint Takes Shape

EverBank maintains financial centers in Florida, California and New York. WaFd runs more than 200 branches across nine Western states. Together they are projected to field more than 250 locations spanning 11 states—an expansive network poised to serve clients from the Atlantic to the Pacific.

Leadership and Ownership Align

EverBank CEO Greg Seibly will take the helm as CEO of the combined company. WaFd CEO Brent Beardall will step into the president role. Robert Radway, current chair of EverBank Financial Corp., will chair the new board.

Upon closing, EverBank Financial Corp. investors—including funds managed by Stone Point Capital, Warburg Pincus, Reverence Capital Partners, Sixth Street and Bayview Asset Management, plus TIAA—will collectively hold about 59.2 percent of the pro forma company. WaFd Inc. shareholders will own roughly 40.8 percent.

The Wachtell team advising EverBank is led by partners Edward D. Herlihy, Mark F. Veblen and Steven R. Green. Simpson Thacher’s group is headed by partners Lee Meyerson, Ravi Purushotham and Louis Argentieri.