First Hawaiian is paying 2.095 of its own shares for every TriCo Bancshares share, or $63.12 apiece based on Friday’s close, in an all-stock deal First Hawaiian, Inc. to Acquire TriCo Bancshares values at roughly $2 billion. TriCo shareholders end up owning about 35% of the combined bank.
What does First Hawaiian actually get? A Chico-based lender with nearly $10 billion in assets and roughly 75 branches across Northern California, on top of First Hawaiian’s own 53-location footprint. Combined, the bank hits $34 billion in assets and $29 billion in deposits, and First Hawaiian projects the deal closing by year-end.
This is First Hawaiian’s second run at a mainland network. It was part of BNP Paribas until 2019, before BNP sold its U.S. arm, Bank of the West, to BMO. CEO Bob Harrison said on the deal call that the bank has “lacked” a branch network ever since that separation. Buying TriCo outright, instead of renting distribution inside someone else’s parent company, means First Hawaiian keeps the branding, the board seats and the control this time. Four TriCo directors join First Hawaiian’s board, including CEO Rick Smith.
No branches close. The deal needs shareholder and regulatory sign-off before year-end.
— Diana Kowalski