Acquisition Announcement Moves Both Stocks
First Hawaiian (NASDAQ:FHB) shares fell 4.8% on Monday, while TriCo Bancshares (NASDAQ:TCBK) gained 7% after the companies announced an all-stock merger agreement.
Under the proposed transaction, TriCo shareholders will receive 2.095 First Hawaiian shares for each TriCo share they own, valuing TriCo at approximately $63.12 per share based on First Hawaiian’s closing price on 10 July 2026.
Following completion of the deal, existing First Hawaiian shareholders are expected to own around 65% of the combined company, with TriCo investors holding the remaining 35%.
Combined Bank to Hold $34 Billion in Assets
The acquisition will create a regional banking group with approximately $34 billion in total assets, making it the sixth-largest bank headquartered in the Western United States.
First Hawaiian said the Tri Counties Bank brand will continue to operate across mainland markets, and the transaction is not expected to result in branch closures.
Board Changes Planned
As part of the agreement, four members of TriCo’s current board, including Chairman, President and Chief Executive Officer Rick Smith, will join the boards of both First Hawaiian and First Hawaiian Bank.
The merger has received unanimous approval from the boards of both companies and is expected to close before the end of 2026, subject to regulatory clearances and shareholder approval.
Preliminary Quarterly Results Released
Alongside the acquisition announcement, First Hawaiian also released preliminary second-quarter financial figures.
The bank expects to report net income of $73.4 million, up from $67.8 million in the previous quarter, while diluted earnings per share are projected to increase to $0.60 from $0.55.
Net interest margin improved by six basis points to 3.25%, while the cost of deposits edged down to 1.20% from 1.22%. Gross loans also increased, rising to $14.6 billion compared with $14.4 billion in the prior quarter.
Full Results Due Later This Month
First Hawaiian is scheduled to publish its complete second-quarter earnings on 24 July 2026, when investors will receive further details on the bank’s financial performance and the proposed acquisition.
First Hawaiian stock price
TriCo Bancshares stock price
