WHEELING, W.Va. – WesBanco Inc., based here, is buying ESB Financial Corp., based in Ellwood City, Pa., in a cash and stock merger transaction valued at $324.4 million or $17.65 per share.
The agreement and merger plan, unanimously approved Wednesday by the board of directors of both companies, was jointly announced Wednesday.
Under the agreement and merger plan, unanimously approved Wednesday by ESB shareholders, they will receive 0.502 shares of WesBanco common stock and cash in the amount of $1.76 per share for each share of ESB common stock for a total value of approximately $17.65 per share or $324.4 million in aggregate.
"This transaction leverages our existing presence in the Pittsburgh market, expands our franchise, strengthens our leadership position and builds on our previous momentum in Pittsburgh and western Pennsylvania,” said Todd F. Clossin, president and CEO of WesBanco, in a prepared statement, “With the acquisition of ESB, WesBanco will become a top 10 player in this important market. ESB is a well-established institution with a very strong franchise and exceptional customer service culture. We believe we can provide customers of those offices with a broader array of banking services, including expanded commercial and mortgage lending capabilities as well as leverage our trust and wealth management services."
WesBanco has assets of $6.3 billion and operates through 119 branch locations and 105 ATMs in West Virginia, Ohio, and Pennsylvania. Its banking subsidiary is WesBanco Bank Inc. The transaction will expand WesBanco's franchise by 23 offices located in the Pittsburgh MSA and Lawrence County, western Pennsylvania.
At Sept. 30, ESB had assets of $1.9 billion, deposits of $1.3 billion, loans of $713 million and shareholders' equity of $205 million.
When the transaction is consummated, the combination of the two banking companies will create a bank with $8.2 billion in total assets providing banking services through 143 branch locations and 128 ATM's in three states.
SOURCE: WesBanco Inc.
Copyright 2014 The Business Journal, Youngstown, Ohio.
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