Key Points – First Hawaiian and TriCo Bancshares agreed to merge in an all-stock deal valued at about $2 billion, creating a combined bank with roughly $34 billion in assets.
First Hawaiian shareholders would own about 65% of the new company, while TriCo shareholders would own about 35%. – The merger is aimed at expanding First Hawaiian’s presence in California and strengthening its Pacific/West Coast franchise, while Tri Counties Bank is expected to keep its brand and there are no anticipated branch closures
Executives stressed that TriCo’s leadership and relationship-based banking culture will remain in place. – Management said the deal should deliver about 6% EPS accretion, a 2.8-year earnback, and around 25% cost savings without relying on branch cuts or revenue synergies. The companies expect the transaction to close in the fourth quarter, pending regulatory and shareholder approvals. First Hawaiian and TriCo Bancshares (NASDAQ:TCBK) announced a definitive agreement to combine in an all-stock transaction that executives said would create a larger Pacific and West Coast banking franchise with approximately $34 billion in assets.
On an investor call discussing the deal, First Hawaiian Chairman, President and CEO Bob Harrison described TriCo as “the ideal partner” and said the transaction would extend First Hawaiian’s strategy in California while maintaining its commitment to Hawaiʻi. “Hawaiʻi remains the foundation of our franchise, and we will continue to be central to our identity,” Harrison said. He added that the transaction is expected to strengthen First Hawaiian through greater diversification, additional growth opportunities and capital generation. Deal Terms and Ownership First Hawaiian Chief Financial Officer Jamie Moses said TriCo shareholders will receive 2.095 shares of First Hawaiian common stock for each share of TriCo common stock under a fixed exchange ratio agreement.