Photo by Derek Redd WesBanco announced Friday a merger with Youngstown, Ohio-based Premier Financial.

WesBanco on Friday morning announced a merger with Youngstown, Ohio-based Premier Financial Corp., a move that WesBanco officials said will position the company for a bright future.

“The proposed merger with Premier brings together two high quality institutions with highly compatible cultures and business models to create a community focused regional financial service partner,” said WesBanco President and CEO Jeff Jackson on Friday.

In merging with Premier, WesBanco gains a stronger foothold in Ohio — it will become the state’s eighth-largest bank — while enhancing its presence in Indiana and earning entry into Michigan. Premier operates 73 branches and nine loan offices in Ohio, Michigan, Indiana and Pennsylvania. That group will move under the WesBanco umbrella.

There will be no change in the executive leadership team, but there will be additions in areas like compliance, fraud prevention and loan review.

Also, four members of Premier’s board of directors will join WesBanco’s board.

According to WesBanco CFO Dan Weiss, the merger is a 100% stock deal with a fixed exchange ratio of.80 shares of WesBanco stock for each share of Premier, with WesBanco ultimately representing more than 60% of the combined pro forma company. The deal is valued at approximately $960 million with over 40% earnings per share.

Jackson said WesBanco leadership has known Premier leadership for several years. He began talking with Premier President and CEO Gary Small at a January conference. During those discussions, Jackson realized the two companies shared plenty of synergies and similar characteristics.

“It almost feels like we’re acquiring kind of a smaller version of ourselves because of the rural and metro markets,” Jackson said.

According to WesBanco, the proposed merger will create a regional financial services institution with approximately $27 billion in assets, significant economies of scale, and strong pro forma profitability metrics. In a news release announcing the proposed merger, Small said he also was excited that the two companies were joining forces.

“The combination of WesBanco and Premier makes for an excellent strategic fit. Both organizations value community level banking, are well aligned from a culture perspective, and are focused on performance,” Small said. “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.”

The merger agreement was signed Thursday, and must still go through customary shareholder and regulatory approvals. WesBanco has about $13 million in capitalized expenses planned to complete branch upgrades at Premier sites, upgrading ATMs and rebranding signage.

“As we have gotten to know Premier, we’re excited to welcome them to the WesBanco family and provide their customers with a broader array of banking services,” Jackson said, “including expanding commercial lending and treasury management capabilities, and additional wealth management solutions.”