TIAA-CREF agreed to buy EverBank Financial Corp., Florida's largest lender by deposits, for about $2.5 billion in cash.
EverBank shareholders will receive $19.50 a share, the companies said Monday in a statement. The transaction, subject to regulatory approval by the Federal Reserve and the Office of the Comptroller of the Currency, is expected to close in the first half of 2017, according to the statement.
The deal adds to TIAA's wealth management business and gives it a platform for providing personal and business loans in the U.S. Jacksonville-based EverBank is primarily an online bank with about 3,000 employees and just 12 branches at the end of last year.
“EverBank's complementary capabilities and two decades of profitability make this an excellent investment and a great strategic fit for TIAA,” said Roger Ferguson, president and CEO of TIAA, in the statement.
EverBank shares gained 2.8% to $19.16 in early trading in New York. The stock climbed 20% to $18.64 through Aug. 5 from $15.50 on July 22, the last day of trading before Bloomberg reported the bank was exploring a sale.
EverBank had $27.4 billion of assets and $18.8 billion of deposits as of June 30. Its name also adorns the stadium that's home to the National Football League's Jacksonville Jaguars. TIAA said it will maintain a strong presence in Jacksonville, with the city serving as the bank's headquarters, according to the statement.
“We are also pleased to be joining a company with a long-term focus, a deep commitment to the communities in which it operates and a desire to grow our franchise,” Rob Clements, EverBank's CEO, said in the statement.