Financial companies are building closer to the customer
- EverBank-WaFd shows banks moving beyond the digital-versus-branch debate, combining EverBank’s digital deposits and national lending with WaFd’s branches and relationship banking to own more of the customer relationship.
- Circle-Tazapay takes a similar approach from the payments side, adding banking relationships and local payment rails around USDC.
Weekly 10-Q
The weekly 10-Q newsletter is part of the Tearsheet Pro subscription, where I unpack the recent moves and strategies of leading banks and fintechs in the public space, coupled with stock market analysis. In your inbox every Friday!
Note: This week’s 10Q story is out today following Monday’s Columbus Day holiday.
Financial companies are building closer to the customer
Every firm wants a little more of the financial relationship.
Last week, I wrote about Nubank reportedly eyeing Monzo to expand its financial relationships into another market. Now, that deal appears to be off the table. So instead, let’s look at a couple of recent M&As that did happen and ask what makes these deals worth pursuing.
EverBank and WaFd are putting a digital bank, commercial lending platform, and branch network under one roof. Circle is buying the banking relationships and local payment rails that sit around its USDC stablecoin.
EverBank and WaFd want digital AND branch
On September 7, EverBank Financial and WaFd announced a $3.9 billion all-stock reverse merger that will create a bank with about $75 billion in assets, $59 billion in deposits, and more than 250 financial centers across 11 states. The transaction is expected to close in early 2027. WaFd will be the legal surviving holding company, but the combined company will take the EverBank name and EVBK ticker. EverBank shareholders will own 59.2% of the combined company. At the bank level, WaFd Bank will merge into EverBank, N.A., with EverBank continuing as the surviving bank.
This is a combination of two franchises that have built very different strengths. EverBank has built a national specialty bank around digital deposits and commercial lending. WaFd brings a longstanding branch network and relationship-based commercial banking franchise across the Western U.S.
…
