CHICO, Calif. — A California bank with branches locally has welcomed a Hawaiian-based bank back to the mainland.
First Hawaiian, Inc., parent company of First Hawaiian Bank, and TriCo Bancshares, parent company of Tri Counties Bank, announced July 13 that Honolulu-based bank will acquire TriCo in an all-stock transaction. On a combined basis, the company will have approximately $34 billion of assets and be the fifth largest bank headquartered on the West Coast, moving past well-known banks including WaFd Bank in Seattle and coming up just behind Banc of California in Los Angeles.
This partnership will increase First Hawaiian’s presence on the mainland, offer customers the full suite of banking capabilities and expand the combined market areas to include a more diverse geography. The combined bank is expected to leverage its strong capital position, liquidity profile and credit quality to deliver enhanced earnings and generate long-term value to shareholders.
Both CEOs shared a vision of strengthening their identities as deeply-rooted community banks who understand their service areas. That was central to their decision to combine as both banks had investigated other options for expansion.
“This partnership creates a broader platform for long-term growth,” First Hawaiian President Bob Harrison, Chairman, President and CEO of First Hawaiian in a statement. “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.”
To ensure business and client continuity, First Hawaiian will retain Tri Counties Bank branding on the mainland. There are no expected branch closings associated with the transaction and TriCo’s commitment to its communities is not expected to change.
“TriCo has built its franchise around long-term customer relationships, local decision-making and a commitment to the communities we serve,” said Rick Smith, Chairman, President and CEO of TriCo in a statement. “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.”
Aloha, Again
This is not the first time First Hawaiian has expanded onto the mainland. Bill Weeshoff, executive VP and chief marketing officer for First Hawaiian, said the bank acquired 31 branches in Oregon, Washington and Idaho in 1996 as part of a shared-stock merger with Bank of the West. When Bank of the West spun off to become an independent bank, First Hawaiian sold off and divested itself of the mainland branches under the name Pacific One Bank in 2016.
Tri Counties Bank “looked and smelled like” the bank that First Hawaiian was looking for, said Peter Wiese, executive VP and CFO for Tri Counties Bank. Tri Counties Bank is active throughout the state in different programs. In the Valley, the bank is known for its involvement in the Volunteer Income Tax Assistance (VITA) program, which helped more than 600 low-income families across Northern and Central California receive a total of $1.2 million in tax refunds, and scholarships it provides in partnership with the Community Foundation of the North State.
This year, 80 students from 68 high schools in 21 counties in Northern and Central California received scholarships of $1,000 or $1,500. Tri Counties Bank also produces reports on the California economy, such as its Feb. 19 report on how U.S. small business owners are using artificial intelligence and their expectations for its future impact.
Wiese said there have been no in-depth talks of any changes in personnel and that those changes were unlikely to affect anyone at the retail level. He did say the projections for the merger are to eventually achieve a 25% cost savings, but that most of that is likely to come from overlap in vendor contracts and not from personnel.
“You can’t run a bank on the mainland from Hawaii, and you can’t run a bank in Hawaii from the mainland,” Wiese said.
Shareholder Approval
Pursuant to the terms of the agreement, TriCo’s shareholders will receive 2.095 First Hawaiian shares for each TriCo share, representing $63.12 per share as of First Hawaiian’s closing stock price on July 10, 2026. Upon closing of the transaction, First Hawaiian and TriCo shareholders are expected to own approximately 65% and 35%, respectively, of the combined company. Four current TriCo directors, including Rick Smith, will join the First Hawaiian and First Hawaiian Bank Boards of Directors, with the remaining three to be mutually agreed upon by First Hawaiian and TriCo prior to the closing.
The Boards of Directors of both banks unanimously approved the agreement and the parties expect to close the transaction by the end of 2026, subject to the receipt of required approvals from regulatory agencies, shareholders, and the satisfaction of customary closing conditions.
Evercore served as financial advisor and Sullivan & Cromwell LLP served as legal counsel to First Hawaiian. Keefe, Bruyette & Woods, A Stifel Company served as financial advisor and Holland & Knight LLP served as legal counsel to TriCo.
First Hawaiian, Inc., which trades on the NASDAQ under the ticker FHB, is a bank holding company headquartered in Honolulu, Hawaii. Its principal subsidiary, First Hawaiian Bank, was founded in 1858 and is Hawaii’s oldest and largest financial institution with branch locations throughout Hawaii, Guam and Saipan. For more information about First Hawaiian, Inc., visit the Company’s website, www.fhb.com.
Established in 1975, Tri Counties Bank is a wholly-owned subsidiary of TriCo Bancshares, which trades on the NASDAQ under the ticker TCBK. The bank is headquartered in Chico, California, providing services in traditional stand-alone and in-store bank branches and loan production offices in communities throughout Northern and Central California.
Visit www.TriCountiesBank.com to learn more.
