FDIC approval advances WesBanco and Premier Bank merger to create regional banking leader

The Federal Deposit Insurance Corporation (FDIC) has approved the merger application submitted by WesBanco Bank, Inc., headquartered in Wheeling, West Virginia, to acquire and merge with Premier Bank, based in Youngstown, Ohio. This approval represents a major milestone in the creation of a regional banking powerhouse spanning nine states, including West Virginia, Ohio, Indiana, Kentucky, Maryland, Michigan, and Pennsylvania.

With total projected assets of $27 billion, this merger positions WesBanco as a dominant player in the regional banking sector. The expanded geographic footprint, coupled with a stronger balance sheet, will enable the bank to deliver enhanced financial solutions to communities while achieving significant economies of scale.

What Factors Did the FDIC Evaluate Before Approving the Merger?

The FDIC’s review of bank mergers under the Bank Merger Act (BMA) is a rigorous process designed to ensure that such transactions serve the public interest. For this merger, the FDIC considered:

• Market Competition: The merger was assessed to ensure it would not negatively affect competition in the banking sector.
• Community Needs: The agency evaluated how the combined entity would meet the financial needs of the communities it serves.
• Financial Stability: The institutions’ managerial and financial resources were carefully examined to ensure stability.
• Regulatory Compliance: Both banks’ compliance with anti-money laundering regulations and other statutory requirements were reviewed.

In addition, the transaction was scrutinized under Section 44 of the Federal Deposit Insurance Act as an interstate merger. FDIC Acting Chairman Travis Hill has emphasized the importance of refining the bank merger approval process, reflecting the agency’s commitment to thorough oversight.

Why Did Shareholders Overwhelmingly Approve the Merger?

The merger received resounding support from the shareholders of both institutions. At WesBanco’s special meeting in December 2024, approximately 85% of votes cast were in favor of the merger. Meanwhile, 68% of Premier Financial shareholders approved the transaction.

WesBanco CEO Jeff Jackson highlighted the strong confidence this merger inspires among stakeholders. He noted that the deal offers opportunities to enhance community support, expand services, and deliver long-term value to employees, customers, and shareholders.

With the FDIC approval now secured, the merger is expected to close during the first quarter of 2025, subject to remaining regulatory approvals and customary closing conditions.

What Does the Combined Entity Mean for Customers and Communities?

This merger will bring together WesBanco’s 150 years of banking expertise with Premier Bank’s deep community roots across Ohio, Michigan, Indiana, and Pennsylvania. The combined company will operate under the WesBanco Bank, Inc. name, with increased resources to deliver comprehensive retail and commercial banking services.

Customers can expect expanded access to financial solutions, including trust, brokerage, wealth management, and insurance services. The merger also aims to strengthen community engagement through localized services while leveraging the efficiencies of a larger organization.

The resulting institution will also gain the scale needed to compete more effectively with larger banks, improving its ability to innovate and invest in technology.

How Will This Merger Impact the Banking Industry?

This transaction is part of a broader trend in the banking sector, where regional banks are consolidating to achieve scale and compete with national institutions. By combining complementary and contiguous markets, WesBanco will become the 8th largest bank in Ohio by deposit market share, while extending its presence in Indiana and beyond.

The $27 billion asset base will also enhance WesBanco’s profitability metrics, allowing it to deliver value to shareholders while maintaining a strong commitment to serving local communities.

Expert Insights on the WesBanco and Premier Bank Merger

Financial analysts view this merger as a strategic step forward for both institutions. By combining resources, the new WesBanco will not only reduce costs through economies of scale but also strengthen its ability to innovate in a highly competitive industry.

Moreover, the merger’s focus on expanding its geographic footprint without overextending aligns with a sustainable growth strategy. This balanced approach ensures that customers will continue to receive high-quality, personalized service.