The Federal Deposit Insurance Corporation (FDIC) has approved a Bank Merger Act (BMA) application submitted by WesBanco Bank for the previously announced $959m all-stock merger deal with Premier Bank.
The combined entity will operate under the name WesBanco Bank with a presence across West Virginia, Indiana, Kentucky, Maryland, Michigan, Pennsylvania, and Ohio.
The merger is expected to create a regional financial services institution with approximately $27bn in assets. It will also have the advantages of enhanced economies of scale, and strong profitability metrics.
During its review of the application, the FDIC assessed statutory factors mandated by the BMA, including the competitive impact of the merger, the financial and managerial resources of both institutions, and their future prospects.
Additionally, the FDIC considered the convenience and needs of the communities served, the stability of the US financial system and the anti-money laundering (AML) records of the parties involved.
The transaction also met requirements for an interstate merger under section 44 of the Federal Deposit Insurance (FDI) Act.
Announced in July this year, the deal remains subject to final approvals, exemptions, and non-objections from relevant federal and state regulatory authorities.
Last month, the merger secured shareholder approval from both banks.
Approximately 85% of WesBanco shareholders’ votes supported the merger and the issuance of new common stock, while around 68% of Premier Financial’s outstanding shares were voted in favour of the agreement.
Under the terms of the definitive agreement, Premier Financial shareholders will receive 0.8 shares of WesBanco common stock for each share of Premier Financial common stock.
The transaction is also expected to establish WesBanco as the eighth-largest bank in Ohio by deposit market share.
