TriCo Bancshares to Be Acquired by First Hawaiian in $2.0B All-Stock Deal at $63.12/Share

summarizeSummary

TriCo Bancshares will be acquired by First Hawaiian in a $2.0 billion all-stock deal, with TriCo shareholders receiving 2.095 First Hawaiian shares per TriCo share, implying $63.12 per share. The merger creates a $34 billion Pacific banking franchise and is expected to close by end-2026.

check_boxKey Events · M&A and Partnerships · TCBK

• Merger Agreement Signed

  TriCo Bancshares entered into a definitive agreement to be acquired by First Hawaiian in an all-stock transaction valued at $2.0 billion, or $63.12 per TriCo share, representing a 17.7% premium to TriCo's last closing price.

• Exchange Ratio and Ownership

  TriCo shareholders will receive 2.095 shares of First Hawaiian common stock for each TriCo share, resulting in pro forma ownership of approximately 65% First Hawaiian and 35% TriCo shareholders.

• Pro Forma Financial Impact

  The combined company is expected to have $34 billion in assets, with 2027E ROAA above 1.35%, ROATCE above 18%, and an efficiency ratio below 50%, driven by $61 million in pre-tax cost synergies.

• First Hawaiian Preliminary Q2 2026 Results

  First Hawaiian reported preliminary Q2 2026 net income of $73.4 million ($0.60 diluted EPS), with net interest margin expanding to 3.25% and cost of deposits improving to 1.20%.

auto_awesomeAnalysis · TCBK · Finance

TriCo Bancshares has agreed to be acquired by First Hawaiian in an all-stock deal that values TriCo at $2.0 billion, or $63.12 per share — a 17.7% premium to its last close. The merger creates a $34 billion Pacific banking franchise, with TriCo shareholders receiving 2.095 First Hawaiian shares for each TriCo share and owning 35% of the combined company. The deal is expected to close by end-2026, subject to regulatory and shareholder approvals. First Hawaiian also previewed strong Q2 2026 results, with net income up 8% sequentially and NIM expanding to 3.25%. Pro forma metrics point to top-quartile profitability, with 2027E ROAA above 1.35% and ROATCE above 18%, supported by $61 million in cost synergies. The transaction is immediately and meaningfully accretive to First Hawaiian's EPS, with manageable TBV dilution and a 2.8-year earnback. For TriCo shareholders, the premium and ongoing participation in a larger, more diversified institution represent a favorable outcome, though the all-stock nature ties ultimate value to First Hawaiian's share price through closing.