First Hawaiian to Buy TriCo Bancshares in $2.02 Billion All-Stock Deal
The combination creates the leading Pacific banking franchise and gives First Hawaiian its long-sought scale on the California mainland.
First Hawaiian, Inc. (FHB), parent company of First Hawaiian Bank, agreed to acquire TriCo Bancshares (TCBK), parent company of Tri Counties Bank, in an all-stock transaction valued at roughly $2.02 billion. The deal creates a combined bank with approximately $34 billion of assets, making it the sixth-largest bank headquartered in the Western U.S..
Under the terms of the agreement, TriCo shareholders will receive 2.095 First Hawaiian shares for each TriCo share, a ratio that valued TriCo at $63.12 a share based on First Hawaiian's closing stock price on July 10, 2026. That works out to 1.98 times tangible book value and 14.4 times TriCo's projected 2027 earnings, or 10.7 times earnings on a fully synergized basis. First Hawaiian shareholders are expected to own approximately 65% of the combined company at close, with TriCo shareholders holding the remaining 35%. The boards of both companies unanimously approved the agreement, which the parties expect to close by the end of 2026, subject to regulatory approvals, shareholder votes at both companies and other customary closing conditions.
The transaction accelerates First Hawaiian's mainland growth by pairing two relationship-driven banking franchises with strong deposit bases and disciplined credit cultures. "This partnership creates a broader platform for long-term growth," said Bob Harrison, Chairman, President and CEO of First Hawaiian. "TriCo is an ideal partner to execute this next phase of our growth: a well-managed, relationship-focused bank in California with a strong deposit franchise, disciplined credit culture, experienced local leadership and deep commitment to its communities."
TriCo, headquartered in Chico, California, operates 68 branches and 83 ATMs across 31 counties in Northern and Central California, with $9.9 billion in total assets, $7.1 billion in loans and $8.4 billion in deposits as of the quarter ended March 31, 2026. The bank carries a 1.26% cost of deposits, a 54.6% efficiency ratio and a 13.3% CET1 ratio, and ranks eighth by deposits across the counties in which it operates. First Hawaiian plans to retain the Tri Counties Bank brand on the mainland, with no expected branch closings tied to the transaction. Four current TriCo directors, including Chairman, President and CEO Rick Smith, will join the First Hawaiian and First Hawaiian Bank boards.
The deal follows Banner Corporation's April 2026 all-stock agreement to acquire Pacific Financial Corporation, parent of Bank of the Pacific, a transaction that similarly targeted Pacific Northwest deposit density ahead of an expected $18 billion combined asset base. Together with the First Hawaiian-TriCo pairing, the deals point to continued consolidation among West Coast community and regional banks seeking scale and low-cost deposit funding.
First Hawaiian expects the deal to be accretive to earnings per share by roughly 6% in 2027 on a fully synergized basis, with tangible book value dilution of 4.7% and an earnback period of 2.8 years. The company modeled pre-tax cost synergies of $61 million, equal to 25% of TriCo's estimated 2026 noninterest expense, phased in at 50% during 2027 and fully realized thereafter, alongside one-time integration costs of $125 million. Evercore advised First Hawaiian and Sullivan & Cromwell LLP served as its legal counsel; Keefe, Bruyette & Woods advised TriCo, with Holland & Knight LLP as legal counsel.