M&A

EverBank Reveals Buyout Negotiations

Lender EverBank is in talks with a prospective buyer, in what would be one of the largest banking takeovers since the financial crisis.
Vincent RyanJuly 26, 2016

Midsize lender EverBank Financial is in the midst of negotiating a takeover that would be one of the biggest acquisitions of a bank since the financial crisis.

The Jacksonville, Fla.-based online banking company confirmed on Tuesday that it was in “advanced negotiations with a well-respected financial services company.” Currently, the terms call for EverBank, which had $27.4 billion of assets as of June 30, to be acquired for $19.50 per share, or $2.5 billion.

EverBank shares were trading at $18.64 early Tuesday. The stock has a 52-week high of $21.18, but was trading below $14 per share as late as the middle of June.

Drive Business Strategy and Growth

Drive Business Strategy and Growth

Learn how NetSuite Financial Management allows you to quickly and easily model what-if scenarios and generate reports.

The bank confirmed the talks in its second-quarter earnings release, in which it reported a surprise fall in earnings. The company’s profits fell to $21.6 million, or 15 cents per share, down from 31 cents per share a year ago. Revenue dropped 22% to $196.6 million.

EverBank said second-quarter earnings were dented by an 11% drop in loan originations. In addition, the bank’s noninterest income fell 36% compared with the prior quarter. Noninterest expenses rose 4%.

Total deposits were $18.8 billion at June 30, 2016, a decrease of $185 million, or 1%, compared with the prior quarter and an increase of $2.3 billion, or 14%, year over year.

EverBank went public in 2012 and has grown through acquisitions, including Bank of Florida in 2010, assisted by the FDIC, and MetLife’s warehouse finance business, according to Dow Jones.

EverBank said it is under agreement to negotiate exclusively with the current prospective buyer through August 8.