WaFd CEO on EverBank merger: Economics are absolutely compelling
Speakers
Brant Beardall
— CEO of WaFd Bank
Brian Sullivan
— Anchor, CNBC (Last Call / Power Lunch)
Summary
WaFd CEO Brent Beardall discusses the reverse merger with EverBank, which would create a $75 billion-asset lender. He argues the deal is compelling due to EPS accretion, mortgage repricing, and cost reductions. Beardall also expects more bank consolidation industry-wide over the next two years as scale becomes more important.
- WaFd and EverBank agree to a $3.9 billion reverse merger
- Combined company would have $75 billion in assets
- Management expects 29% EPS accretion in the first full year after synergies
- Deal allows repricing of low-rate mortgages to market yields
- About 11% combined expense reduction is expected
- CEO expects more bank M&A over the next two years
- Scale matters with only about 200 US banks between $3 billion and JPMorgan's size
Ideas
WaFd-EverBank merger is compelling and accretive
The WaFd-EverBank reverse merger is compelling because the two banks are complementary, the combined company reaches $75 billion in assets, and management expects EPS to increase 29% in the first full year after synergies. The deal also lets WaFd reprice low-rate mortgages made two to three years ago to market yields, cut combined expenses by about 11%, and move toward a 15% return on tangible common equity.
More bank M&A coming next two years
Bank M&A has been held back by valuation, but as valuations tick up he expects more deals over the next two years. With only about 200 US banks from $3 billion to JPMorgan's $5 trillion, scale matters and consolidation is likely.
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This CNBC video, published September 08, 2026, features Brant Beardall discussing WAFD, KBE. 2 trade ideas extracted by AI with direction and confidence scoring.
Speakers: Brant Beardall · Tickers: WAFD, KBE