First Hawaiian and TriCo Bancshares announced that they entered into a definitive agreement under which First Hawaiian will acquire TriCo in an all-stock transaction. First Hawaiian is the parent company of First Hawaiian Bank, while TriCo is the parent company of Tri Counties Bank. The combination will bring together two relationship-driven banking franchises with strong local market positions, disciplined credit cultures, and attractive deposit bases.
On a combined basis, the company will have approximately $34 billion of assets. The companies said the combination will create the sixth-largest bank headquartered in the Western U.S.
The acquisition will expand First Hawaiian’s presence on the mainland and add TriCo’s California banking franchise to First Hawaiian’s Hawaii, Guam, and Saipan footprint. The combined bank is expected to offer customers a broader suite of banking capabilities across a more diverse geographic base.
Under the terms of the agreement, TriCo shareholders will receive 2.095 First Hawaiian shares for each TriCo share. Based on First Hawaiian’s closing stock price on July 10, 2026, the exchange ratio represented $63.12 per TriCo share.
After closing, First Hawaiian shareholders are expected to own approximately 65% of the combined company, while TriCo shareholders are expected to own approximately 35%.
Four current TriCo directors, including TriCo Chairman, President and CEO Rick Smith, will join the First Hawaiian and First Hawaiian Bank Boards of Directors. The remaining three TriCo directors joining the boards will be mutually agreed upon by First Hawaiian and TriCo before closing.
The companies said leadership will include representation from both organizations to support business and client continuity. First Hawaiian will also retain the Tri Counties Bank brand on the mainland.
No branch closings are expected in connection with the transaction. The companies also said TriCo’s commitment to its communities is not expected to change.
The Boards of Directors of First Hawaiian and TriCo unanimously approved the definitive agreement. The transaction is expected to close by the end of 2026, subject to required regulatory approvals, approval by First Hawaiian and TriCo shareholders, and customary closing conditions.
First Hawaiian also provided preliminary second-quarter 2026 financial highlights ahead of its scheduled earnings release on July 24, 2026. The company expects to report net income of $73.4 million and diluted earnings per share of $0.60, compared with net income of $67.8 million and diluted EPS of $0.55 in the prior quarter.
First Hawaiian said its cost of deposits improved by two basis points to 1.20%, while net interest margin expanded by six basis points quarter over quarter to 3.25%. Return on average assets improved to 1.23%, compared with 1.14% in the prior quarter.
The company also expects to report return on average tangible common equity of 16.3%, compared with 15.3% in the prior quarter. Gross loans increased to $14.6 billion from $14.4 billion, while book value per share rose to $23.22 from $22.75.
First Hawaiian said tangible book value per share was $15.04, reflecting 3% quarter-over-quarter growth. The company noted that return on average tangible common equity and tangible book value per share are non-GAAP financial measures.
First Hawaiian Bank was founded in 1858 under the name Bishop & Company and is Hawaii’s oldest and largest financial institution. Tri Counties Bank was established in 1975 and serves communities throughout California through branches, loan production offices, ATMs, online banking, and mobile banking.
Support: Evercore served as financial advisor and Sullivan & Cromwell served as legal counsel to First Hawaiian. Keefe, Bruyette & Woods, A Stifel Company served as financial advisor and Holland & Knight served as legal counsel to TriCo.
KEY QUOTES:
“This partnership creates a broader platform for long-term growth. 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. Together, we will preserve what has made both companies successful while creating a stronger and more diversified bank. I could not be more excited to partner with TriCo.”
Bob Harrison, Chairman, President and CEO of First Hawaiian
“TriCo has built its franchise around long-term customer relationships, local decision-making and a commitment to the communities we serve. First Hawaiian shares those values and brings the scale, capital strength and broader product capabilities to help us do even more for our customers and communities. We are excited for our employees and shareholders to participate in the future of the combined company, and we look forward to working closely with Bob and the First Hawaiian team.”
Rick Smith, Chairman, President and CEO of TriCo
