TIAA announced on Monday an agreement to acquire EverBank, a nationwide consumer and commercial bank with $27.4 billion in total assets.

“This acquisition significantly expands TIAA’s banking and lending products and complements the company’s full suite of retirement, investment and advisory services available to help customers achieve financial well-being,” according to the announcement.

Under the terms of the agreement, EverBank stockholders will receive $19.50 per share in cash, or an approximate total of $2.5 billion.

EverBank, which was founded more than 20 years ago, has established banking operations that will allow TIAA to provide a more comprehensive range of services. Currently, TIAA offers a variety of savings and lending products to its customers.

The combination of TIAA’s existing banking operations and EverBank will strengthen TIAA’s banking capabilities and form a full-service banking company for both companies’ customers.

“Saving is essential to reaching important life goals. Whether building emergency savings or buying their first home, customers want to turn to a company they trust,” Kathie Andrade, chief executive officer of TIAA’s Retail Financial Services business, said in a statement. “Helping our clients succeed throughout their lives is at the heart of TIAA’s mission, and the reason our employees come to work each day.”

The acquisition will allow TIAA to accelerate its plans in banking.

“TIAA intends to make EverBank an integral part of its Retail Financial Services business and envisions offering banking and lending core services to its over 5 million members and 16,000 institutional clients,” according to EverBank’s website. “TIAA believes EverBank will significantly enhance the company’s ability to fully serve its clients by providing high-value, straightforward lending, savings and cash management solutions throughout the financial life cycle.”

Rob Clements, EverBank chairman and CEO, said the two companies are a “great match.”

TIAA – which offers retirement, investment and advisory services – will be able to support EverBank’s customers and help them achieve financial well-being in a more robust way.

“We look forward to introducing our unique consumer and commercial banking products to the millions of individuals and the institutions that TIAA serves today, while enhancing the investment and retirement product offerings for our clients,” Clements said in a statement. “We are also pleased to be joining a company with a long-term focus, a deep commitment to the communities in which it operates and a desire to grow our franchise.”

This acquisition will also give TIAA an employee base and significant business operations in Jacksonville, Florida, where EverBank is based. TIAA intends to maintain an active role in the Jacksonville community, with the city serving as the combined bank’s headquarters.

According to the announcement, EverBank’s board of directors unanimously approved the transaction following a comprehensive review of the transaction and strategic and financial alternatives. While the transaction is subject to closing conditions, it is expected to close in the first half of 2017.

Certain stockholders, directors and executive officers of EverBank with the power to vote approximately 22% of EverBank’s outstanding common stock have entered into voting and support agreements with TIAA to vote in favor of, and otherwise support, the transaction.

The holders of the EverBank’s Series A 6.75% Non-Cumulative Perpetual Preferred Stock will have the right to receive the liquidation preference of $25,000 plus accrued and unpaid dividends on a share in cash at closing.

TIAA has $889 billion in assets under management as of June 30 and offers a wide range of financial solutions including investing, banking, advice and guidance, and retirement services.

— Check out Nearly Half of Advisors Don’t Offer Social Investing: TIAA on ThinkAdvisor.