EverBank inks deal to acquire life premium finance business from Primis Bank

EverBank, N.A., has announced a significant acquisition agreement with Primis Bank to acquire its Life Premium Finance division, a specialized provider of premium financing solutions tailored for high-net-worth individuals and entities. With a focus on loans for life insurance premium financing, this division helps clients fund annual premiums on permanent life insurance policies, leveraging a unique lending platform that streamlines loan processing and facilitates enhanced transactions.

Key Transaction Details

The Life Premium Finance division, founded in 2021 and supported by seasoned financial experts, provides loans fully backed by the cash value of insurance policies and other liquid assets of borrowers. EverBank CEO Greg Seibly highlighted the acquisition as a natural fit, given the increasing demand among wealthy individuals and business owners for complex life insurance funding solutions. EverBank plans to integrate this offering into its consumer and commercial banking services nationwide, which will further strengthen its foothold in the premium financing market.

The deal is structured in two phases, with the first closing set for October 31, 2024, where EverBank will purchase around $370 million in loans. Subsequent loan acquisitions are expected through January 31, 2025, at which point the Primis Life Premium Finance team will join EverBank, enhancing the bank’s expertise in this rapidly expanding segment. This acquisition aligns with EverBank’s long-term growth strategy to deliver targeted financial products to its expanding client base.

EverBank’s Strategic Expansion: Sterling Bank & Trust Acquisition

This acquisition is part of a broader expansion strategy by EverBank. Last month, EverBank Holdings, the parent company of EverBank, announced a landmark agreement to acquire Sterling Bank & Trust, a wholly owned subsidiary of Sterling Bancorp, Inc. With this acquisition, EverBank aims to expand its physical presence in key U.S. regions, acquiring 25 Sterling Bank branches in California‘s San Francisco Bay Area, metropolitan Los Angeles, Orange County, and a branch in New York City’s Flushing area. The deal includes approximately $900 million in loans and $2 billion in deposits, significantly boosting EverBank’s asset portfolio.

Expert Opinion: Growth Potential in the Premium Financing and Regional Banking Market

Financial experts see EverBank’s acquisition moves as a targeted response to growing demand for tailored financial solutions for affluent clients and regional banking expansion in high-growth areas like California. With EverBank’s latest acquisition, the company can tap into the life insurance premium financing market, which has seen increased traction among high-net-worth clients looking to secure large policies without the immediate liquidity drain.

According to industry analysts, EverBank’s strategic acquisitions place it well for sustained growth in both specialized financing and regional banking, potentially solidifying its presence in the lucrative California market.