First Hawaiian to buy TriCo in all-stock deal, forming $34B bank
What's the deal? First Hawaiian, the Honolulu-based parent of First Hawaiian BankDealroom has a profile for this one. Try Dealroom →, has agreed to acquire California's TriCo BancsharesDealroom has a profile for this one. Try Dealroom → in an all-stock transaction, the companies said on July 13. TriCo shareholders will receive 2.095 First Hawaiian shares for each TriCo share, valuing the stock at $63.12 based on First Hawaiian's July 10 closing price.
What's the endgame? The combined company will hold roughly $34 billion in assets, making it the sixth-largest bank headquartered in the Western US. The deal extends First Hawaiian's reach onto the mainland, adding TriCo's California deposit franchise and branch network.
First Hawaiian shareholders will own about 65% of the combined company, with TriCo holders taking the remaining 35%. Four TriCo directors, including chief executive officer Rick SmithDealroom has a profile for this one. Try Dealroom →, will join First Hawaiian's boards.
What changes for customers? Not much day to day. First Hawaiian will keep the Tri Counties Bank brand on the mainland, and no branch closings are expected.
Why now? First Hawaiian framed the deal as its next growth phase. "TriCo is an ideal partner to execute this next phase of our growth," said Bob Harrison, chairman, president and chief executive officer of First Hawaiian, citing TriCo's deposit franchise and credit culture.
The financials: The announcement preceded First Hawaiian's second-quarter results, due July 24. The company expects net income of $73.4 million and diluted earnings per share of $0.60, up from $67.8 million and $0.55 in the prior quarter, with cost of deposits improving two basis points to 1.20%.
What could go wrong? The deal still needs regulatory approvals and sign-off from both companies' shareholders. The boards unanimously approved the agreement, and the parties expect to close by the end of 2026.
The signal: The transaction reflects continued consolidation among regional US lenders seeking scale and geographic diversification. For First Hawaiian, a Hawaii franchise, buying its way onto the mainland marks a bid to broaden beyond an island economy.
Read more: Associated Press
Image credit: jijake1977
