EverBank Financial Corp. cleared one hurdle Wednesday in its path to completing its $2.5 billion buyout by financial services firm TIAA, as the Jacksonville-based bank’s shareholders approved the deal.
But several issues remain before the deal can be completed, including deciding the name of the merged bank — and whether that will impact EverBank’s naming rights deal for Jacksonville’s football stadium.
Shareholders approved the deal Wednesday morning at a special meeting at the Downtown EverBank Center. No shareholders showed up to vote in person at the brief meeting.
The buyout plan calls for EverBank to merge with TIAA’s bank subsidiary, which is headquartered in St. Louis, while keeping the headquarters of the merged bank in Jacksonville.
Although the stockholder vote was a significant step, the companies are a long way from completing the deal. They are hoping to complete it in the first half of 2017.
The merger still needs approval from bank regulators. When the deal was first announced in August, Bloomberg News reported regulators may be wary because TIAA is buying a bank that is much larger than its banking subsidiary.
TIAA, a nearly century-old nonprofit, is a giant company with $35 billion in revenue last year, ranking 82nd on the Fortune 500 list of the largest U.S. companies. However, its bank unit has only about $4 billion in assets, compared with EverBank’s $28.7 billion in total assets.
EverBank CEO Robert Clements said after Wednesday’s meeting that talks with regulators about the merger have gone well.
“We feel good about how the process is coming along at this point,” he said.
Clements said there is no timetable for choosing a name for the merged bank and whether the company will keep its naming rights deal for EverBank Field.
It may not even be decided until after the merger is completed.
The Jacksonville Jaguars signed a five-year, $16.6 million naming rights deal with EverBank in 2010 and agreed to a 10-year, $43 million extension in 2014.
Clements reiterated his view that the merger is good for all stakeholders of EverBank because of the decision to keep the headquarters in Jacksonville and hopefully grow the bank.
“It’s a very exciting outcome for this city, our employees and our shareholders,” he said.
The two companies are working on operational details but already announced that Clements will retire as chairman and CEO of the bank once the merger is completed.
EverBank President Blake Wilson will succeed him as CEO and TIAA executive Kathie Andrade will become chairman.
Clements said he is unsure of his next move after he leaves EverBank.
“There are several things that I’m assessing and considering,” he said.
“I’m not feeling any rush,” Clements said. “I want to take a little time (after the merger) to catch my breath.”