August 9, 2016    1 minute read

TIAA To Buy EverBank For $2.5bn

   August 9, 2016    1 minute read

TIAA To Buy EverBank For $2.5bn

Non-profit pensions group TIAA will take over American internet-focused financial institution EverBank Financial for $2.5bn.

Editor’s Remarks: The pensions group, which already owns a small bank, is looking to diversify its banking capabilities. The group is interested in EverBank’s digital technology and its mortgage business. EverBank will bring $27.4bn in assets and $18.8bn in deposits. Small and midsize lenders have seen increased pressure in recent years and are the most active in the financial industry M&A market. Low interest rates have cut into margins, and the banks are also facing increasing regulatory costs. As the larger institutions in the US seem to be stable, it is only a matter of time before the smaller players start to merge with each other.

What to watch: Fed Key Interest Rate, Dow Jones US Banks Index, JP Morgan Chase, BOA, Wells Fargo, Banking M&A

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