EverBank's $47B sale process tests PE appetite for bank ownership

EverBank, the Florida-based digital bank with $47 billion in assets, is up for sale three years after five private-equity firms bought it from TIAA, with an IPO as fallback if no buyer emerges.

"We've always considered a number of options for the bank's future—including acquisitions; a potential sale of the bank or merger; or an initial public offering," the bank said in a statement. "We continue to be enormously optimistic about the bank's potential for growth and performance."

The five firms — Stone Point Capital, Warburg Pincus, Reverence Capital Partners, Sixth Street and Bayview Asset Management — acquired the bank in 2023 from TIAA, the pension fund serving academics. The deal price was not disclosed. EverBank operates mostly as a digital bank with a few dozen branches, primarily in Florida and California, and held about $38 billion in deposits as of midyear, ranking as the 57th-largest bank holding company in the U.S.

The sales process has stretched for months, and the firms struggled to form a cohesive strategy, creating tension among owners and inside the boardroom, according to people familiar with the matter. If no sale is reached, an IPO remains the likely path. The outcome carries implications for the regional banking sector, where federal law limits how much of a bank a private firm can own without becoming a bank holding company.

The deal was watched closely across the banking industry when it closed in 2023. Federal law caps how much of a bank a firm can own without triggering bank holding company status, which typically restricts private investors to minority stakes. With EverBank, the firms split ownership and, as a group, were considering acquiring more banks after the TIAA deal, similar to how private-equity firms often seek to roll up industries.

In 2024, EverBank agreed to acquire Sterling Bank & Trust for $261 million, gaining 25 branches in California and one in Queens, New York. The acquisition expanded the bank's physical footprint even as it continued to push digital-first growth. The bank also serves as the sponsor of the Jacksonville Jaguars stadium and brand partner of quarterback Trevor Lawrence.

Balance Sheet Expansion and Private-Credit Exposure

EverBank has sought to aggressively grow its balance sheet. It focused on its mobile-app service and leaned into high-yield savings for consumers, which bring in new customers but carry thinner margins. Meanwhile, EverBank roughly doubled its loans to nonbank financial institutions, a category that includes private-credit firms as well as real-estate investors and insurance companies.

The bank's exposure to private credit has drawn scrutiny across the banking industry, as regulators have flagged the rapid growth of lending to nonbank financial institutions. The FDIC earlier this year moved to make it easier for private-equity investors to participate in acquisitions of failed banks, a shift that could reshape how PE firms engage with the banking sector.

Now, swarms of investment bankers and corporate lawyers are circling around a possible deal, further complicating the ownership dynamics, the people said. The bank's statement emphasized its progress: "We've significantly improved the bank's profitability, grown our retail presence across the country and expanded our commercial banking capabilities."

The outcome of the sale process will determine whether the five firms realize a return on their 2023 investment or whether EverBank goes public as an independent entity. For the broader banking sector, the deal tests whether private-equity ownership of a mid-sized bank can work at scale — and whether the FDIC's recent rule changes will attract more PE capital into banking. If the sale succeeds, it could set a precedent for other PE-owned banks seeking exits; if it fails and EverBank goes public, it would mark one of the largest bank IPOs in recent years.

This article is for informational purposes only and does not constitute investment advice.