TIAA Bolsters Its Banking Operations

EverBank’s headquarters in Jacksonville, FL. The combined entity will continue to be based in Jacksonville.

JACKSONVILLE, FL—TIAA is expanding its banking business with the $2.5-billion acquisition of consumer and commercial lender EverBank, the two companies announced Monday. The Jacksonville, FL-based lender will be combined with TIAA’s existing banking operations, with the combined entity to be based in Jacksonville. TIAA launched TIAA Direct, an online banking business, in 2012. Reuters reported last week that TIAA, which rebranded from TIAA-CREF this past February, was in exclusive talks to acquire EverBank, which operates primarily online. Founded in 1998, EverBank offers a variety of consumer and business loan products including commercial mortgages ranging up to $50 million. It has $27.4 billion in assets and $18.8 billion in deposits. “EverBank’s complementary capabilities and two decades of profitability make this an excellent investment and a great strategic fit for TIAA,” says Roger W. Ferguson Jr., president and CEO of TIAA. “Together, we look forward to bringing an enhanced level of service and an expanded range of financial solutions to our millions of loyal customers and the institutions we serve.” According to an FAQ posted to EverBank’s website, TIAA intends to make EverBank “an integral part of its retail financial services business and envisions offering banking and lending core services to its over five million members and 16,000 institutional clients. TIAA believes EverBank will significantly enhance the company’s ability to fully serve its clients by providing high-value, straightforward lending, savings and cash management solutions throughout the financial life cycle.” The EverBank deal, which is expected to close in the first half of 2017 subject to regulatory approval, follows TIAA’s purchase of digital wealth management company MyVest in late June. Terms of the MyVest deal were not disclosed. On the EverBank deal, valued at $19.50 per share, Lazard acted as lead financial advisor and Davis Polk & Wardwell LLP served as legal counsel to TIAA. J.P. Morgan Securities LLC also acted as financial advisor to TIAA. UBS Investment Bank acted as lead financial advisor to EverBank and Sullivan & Cromwell LLP served as the bank’s legal counsel.