TriCo Bancshares to Be Acquired by First Hawaiian in $2.0B All-Stock Deal; Preliminary Q2 Results Beat

summarizeSummary

TriCo Bancshares will be acquired by First Hawaiian in a $2.0 billion all-stock deal, creating a $34 billion Pacific banking franchise. TriCo shareholders get 2.095 First Hawaiian shares per TriCo share, a 35% stake. First Hawaiian also reported strong preliminary Q2 results with EPS of $0.60 and NIM expansion.

check_boxKey Events · M&A and Partnerships · TCBK

• Acquisition by First Hawaiian

  TriCo Bancshares has entered into a definitive agreement to be acquired by First Hawaiian in an all-stock transaction valued at $2.0 billion. Under the terms, TriCo shareholders will receive 2.095 First Hawaiian shares for each TriCo share, representing $63.12 per share based on First Hawaiian's July 10 closing price.

• Pro Forma Ownership and Governance

  Upon closing, First Hawaiian and TriCo shareholders will own approximately 65% and 35% of the combined company, respectively. Four TriCo directors, including CEO Rick Smith, will join the First Hawaiian board, and the Tri Counties Bank branding will be retained in California.

• Preliminary Q2 2026 Results

  First Hawaiian reported preliminary Q2 net income of $73.4 million ($0.60 diluted EPS), up 8% sequentially. Net interest margin expanded 6 bps to 3.25%, cost of deposits improved to 1.20%, and tangible book value per share rose to $15.04.

• Financial Impact and Synergies

  The deal is expected to be EPS accretive with manageable TBVPS dilution (4.7%) and a 2.8-year earnback. Management targets $61 million in pre-tax cost synergies (25% of TriCo's non-interest expense), with 50% phased in 2027. The pro forma CET1 ratio at close is 12.4%.

auto_awesomeAnalysis · TCBK · Finance

TriCo Bancshares has agreed to be acquired by First Hawaiian in an all-stock deal valued at $2.0 billion, or $63.12 per share based on First Hawaiian's July 10 closing price. For each TriCo share, holders will receive 2.095 First Hawaiian shares, implying a 35% ownership stake in the combined $34 billion Pacific banking franchise. The deal is expected to close by the end of 2026, pending regulatory and shareholder approvals. Separately, First Hawaiian released preliminary Q2 2026 results showing net income of $73.4 million ($0.60 EPS), up 8% sequentially, with net interest margin expanding to 3.25% and tangible book value per share rising to $15.04. The transaction creates a top-decile deposit franchise with a 1.23% cost of deposits and is projected to be EPS accretive with manageable TBVPS dilution and a 2.8-year earnback. Four TriCo directors, including CEO Rick Smith, will join the combined board, and the Tri Counties Bank branding will be retained in California.