WesBanco , Inc. (NASDAQ: NASDAQ:WSBC) and Premier Financial Corp. (NASDAQ: PFC) have announced an all-stock merger agreement valued at approximately $959 million in a deal unanimously approved by both companies' boards.
The deal will see WesBanco acquiring Premier, with Premier shareholders receiving 0.80 shares of WesBanco for each Premier share owned.
The merger, expected to be completed in the first quarter of 2025, will create a regional financial institution with over $27 billion in assets and a more significant market presence, particularly in Ohio, Indiana, and nine other states. It is anticipated to be over 40% accretive to WesBanco's 2025 earnings, excluding certain charges.
To support the merger, WesBanco has secured $200 million in capital commitments, including a $125 million investment from Wellington Management. The capital raise, closing on August 1, 2024, will bolster the pro forma bank's balance sheet and regulatory capital ratios.
Jeff Jackson, CEO of WesBanco, emphasized the merger's alignment with the bank's growth strategy and commitment to community-focused financial services. The combined entity aims to offer enhanced banking and wealth management services to its customers.
Post-merger, Premier shareholders will hold 30% of the combined company's shares, with 8% from the capital raise and the remaining 62% held by existing WesBanco shareholders. Additionally, four members of Premier's Board will join WesBanco's Board of Directors.
The merger is subject to regulatory approvals and the approval of shareholders from both companies. The transaction is also expected to qualify as a tax-free reorganization.
As of June 30, 2024, WesBanco reported consolidated assets of approximately $18.1 billion, while Premier reported assets of nearly $8.8 billion. The merger will expand WesBanco's footprint to over 250 financial centers and loan production offices across nine states.
InvestingPro Insights
As WesBanco, Inc. (NASDAQ: WSBC) prepares for its strategic merger with Premier Financial Corp., investors and analysts are closely monitoring the financial metrics that could influence the combined company's future performance. WesBanco's commitment to dividend growth is notable, with the company having raised its dividend for 13 consecutive years, demonstrating a strong track record of returning value to shareholders.
The company's financial health, as reflected in real-time data from InvestingPro, shows a market capitalization of approximately $2.04 billion and a price-to-earnings (P/E) ratio of 14.37, which adjusts slightly to 14.27 for the last twelve months as of Q1 2024. This P/E ratio suggests a relatively reasonable valuation in the current market. Additionally, WesBanco has maintained a consistent dividend payout, with a current yield of 4.2%, which is attractive to income-focused investors.
InvestingPro Tips indicate that the company has experienced a strong return over the last three months, with a 26.25% price total return, signaling robust investor confidence leading up to the merger. Moreover, the company is trading near its 52-week high, with its price at 98.36% of the peak. This could indicate a positive market sentiment surrounding WesBanco's growth prospects and its upcoming merger with Premier Financial Corp.
For investors seeking more insights, there are additional InvestingPro Tips available, which can be accessed by visiting https://www.investing.com/pro/WSBC. Use coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription, unlocking further valuable investment tips and data to guide your financial decisions.
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