July 26 (Reuters) - WesBanco ( WSBC ) has agreed to buy

smaller rival Premier Financial in an all-stock deal

valued at $959 million, the lenders said on Friday, offering

another sign of growing consolidation in the U.S. regional

banking industry.

WHY IT IS IMPORTANT

Regional banks in the U.S. continue to remain more susceptible

to economic fluctuations triggered by high interest rates than

their so-called "too-big-to-fail" rivals.

The failure of three mid-sized U.S. lenders reverberated

across the global financial system last year.

In the aftermath, Treasury Secretary Janet Yellen had said

the current banking environment and pressures on earnings might

lead to some concentration in the sector, and regulators would

likely be open to such mergers.

CONTEXT

Earlier this year, regional lender UMB Financial ( UMBF ) agreed

to buy smaller rival Heartland Financial in an

all-stock deal valued at about $2 billion.

United Bankshares ( UBSI ) also agreed to buy Piedmont

Bancorp in a deal valued at about $267 million in May.

WesBanco ( WSBC ) expects the deal with Premier to help it expand

significantly and have more than 250 financial centers, as well

as loan production offices, across nine states.

It has also agreed to raise capital to support the

transaction led by a $125 million contribution from private

investment firm Wellington Management.

The deal is expected to create a combined bank with roughly

$27 billion in assets.

BY THE NUMBERS

Premier shareholders will be entitled to receive 0.80 of a share

of WesBanco ( WSBC ) common stock for each share of Premier common stock

they own.

As of June 30, WesBanco ( WSBC ) had consolidated assets of around

$18.1 billion, while Premier's came in at roughly $8.8 billion.

Premier stock has gained 5.7% so far this year, giving the

lender a market value of $912.5 million, according to LSEG data.

MARKET REACTION

Premier shares rose nearly 1% in morning trading, while WesBanco ( WSBC )

declined 7%.