Wheeling, W.V.-based WesBanco, Inc., is expanding in Indiana and Michigan by acquiring Defiance, Ohio-based Premier Financial Corp. for $959 million.
The all-stock deal is expected to be completed in the first quarter of 2025. WesBanco will add 73 branches through the merger in northern Ohio, southern Michigan and northeastern Indiana. The combined bank is expected to have $27 billion in assets and be the eighth largest bank in Ohio based on deposit market share. Four members of Premier’s board of directors are expected to be appointed to WesBanco’s board.
As of June 30, WesBanco had $18.1 billion in consolidated assets, $13.4 billion in deposits and $12.3 billion in total loans. Premier Financial Corp. had $8.8 billion in consolidated assets, $7.2 billion in deposits and $6.8 billion in total loans.
WesBanco is entering into subscription agreements with investors to issue $200 million in common stock to support the deal. The agreement includes a $125 million investment from Wellington Management, with additional investors including Glendon Capital Management LP and Klaros Capital.
Premier President and CEO Gary Small said the merger “makes for an excellent strategic fit. Both organizations value community level banking, are well aligned from a culture perspective and are focused on performance.
“The expanded reach of the organization will serve as a catalyst for growth and increased investment in products and services, to the benefit of all stakeholders: Customers, associates, shareholders, as well as the communities we serve,” he added.
WesBanco President and CEO Jeff Jackson said the merger “will bring together two high-caliber institutions to create a community-focused, regional financial services partner strongly positioned to serve the unique needs of both our new and legacy communities.”
St. Petersburg, Fla.-based Raymond James & Associates, Inc., represented WesBanco, and Minneapolis-based Piper Sandler & Co. represented Premier. Raymond James & Associates served as placement agent on the private placement.
Legal representations for WesBanco included Wheeling-based Phillips, Gardill, Kaiser & Altmeyer, PLLC and Pittsburgh-based K&L Gates LLP. Columbia, S.C.-based Nelson Mullins Riley & Scarborough LLP was legal representative for Premier Financial Corp.