US: More mid-sized banks seek to consolidate

Florida’s largest bank by deposits, EverBank Financial Corp., is in “advanced negotiations” to sell itself to an undisclosed bidder as various regional lenders look for ways to cope with regulations and low interest rates.

A “well-respected financial-services company” has discussed buying EverBank for $19.50 a share along with payments to holders of preferred stock, the Jacksonville-based lender said in a statement on July 26. The bank jumped 13 percent to $17.56 per share on Monday, giving it a valuation of about $2.2 billion, after Bloomberg reported it was exploring a sale.

Acquisitions of small and midsize banks have recently been accelerating as regional lenders seek to contend with higher regulatory costs and interest rates at almost historic lows. F.N.B. Corp. agreed to buy Yadkin Financial Corp. for about $1.4 billion last week, while Canadian Imperial Bank of Commerce said last month it would acquire Chicago-based PrivateBancorp Inc. for $3.8 billion.

EverBank also announced second-quarter financial results on the 26th saying that it won’t conduct a previously scheduled conference call. Net income dropped 48 percent to $21.6 million.

Full Content: Bloomberg

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