US bank First Hawaiian bets on mainland growth with $2 billion TriCo buy

TriCo shareholders will receive 2.095 shares of First Hawaiian for each held, valuing the Chico, California-based lender at $63.12 apiece, they said on Monday.

The offer represents a 17.7% premium to TriCo's last close. Its shares rose about 8% in premarket trading, while First Hawaiian fell 7%.

The deal will give First Hawaiian scale in California, the largest state economy in the U.S. where the bank has operated for decades.

TriCo, which manages roughly $10 billion in assets, has a strong presence across Northern and Central California. The combined lender, with about $34 billion in total assets, will be the sixth-largest bank headquartered in the Western U.S.

First Hawaiian and TriCo shareholders are expected to own roughly 65% and 35%, respectively, of the combined bank.

The transaction is expected to close by the end of 2026. Four TriCo directors, including CEO Rick Smith, will join First Hawaiian's board.

Evercore advised First Hawaiian on the deal, while Keefe, Bruyette & Woods advised TriCo.

July 13 (Reuters) - First Hawaiian FHB.O will buy U.S. regional lender TriCo Bancshares TCBK.O in a $2 billion all-stock deal, as it aims to bolster its presence in mainland markets.

Dealmaking among U.S. banks has accelerated over the past year as boardrooms take advantage of a more relaxed regulatory environment and consolidate to better compete against bigger rivals.