PE owners explore EverBank exit three years after acquisition
A consortium of five private equity firms is exploring a sale of EverBank, just three years after acquiring the Florida-based digital bank from TIAA, according to a report by the Wall Street Journal citing unnamed people familiar with the matter.
The lender is considering several strategic options, including a potential sale or merger, while an initial public offering could provide an alternative if a buyer cannot be secured. The sale process has reportedly been underway for several months.
Stone Point Capital, Warburg Pincus, Reverence Capital Partners, Sixth Street and Bayview Asset Management acquired EverBank in 2023. The terms of that transaction were not disclosed.
EverBank, which operates predominantly through digital channels but maintains several dozen branches, primarily in Florida and California, had approximately $47bn of assets at the end of June. That makes it the 57th-largest US bank holding company. Deposits stood at roughly $38bn.
The ownership consortium initially saw opportunities to expand through further bank acquisitions, mirroring the buy-and-build strategies commonly pursued by private equity investors in other sectors.
That strategy has produced at least one major transaction. In 2024, EverBank agreed to acquire Sterling Bank & Trust for $261m, adding 25 branches in California and another in Queens, New York.
However, differences over the bank’s strategic direction have reportedly created tensions among the five sponsors and within EverBank’s boardroom. The emergence of a potential sale has added further complexity, with investment banks and advisers now involved in the process.
Under the current strategy, EverBank has pursued rapid balance-sheet growth, including greater investment in its mobile banking offering and an expansion of high-yield savings products designed to attract retail customers. While these products can help increase deposits and customer numbers, they typically offer thinner margins.
The bank has also significantly increased lending to non-bank financial institutions. That category includes private credit firms, real estate investors and insurance companies, among other borrowers.
EverBank said it had improved profitability, expanded its retail franchise and grown its commercial banking business.
The bank said it has consistently evaluated a range of options for its future, including acquisitions, a sale or merger and a potential IPO, while remaining confident in its long-term growth prospects.
For its private equity owners, an exit after three years would come as US banks attract renewed interest from financial sponsors and strategic buyers, following regulatory changes intended to make it easier for private equity investors to participate in bank transactions.
