Jul. 13 at 12:55 PM
First Hawaiian shares fell while TriCo Bancshares climbed about 7% after the companies announced an all-stock merger. Under the agreement, TriCo shareholders will receive 2.095 First Hawaiian shares for each TriCo share, valuing TriCo at
$63.12 per share based on First Hawaiian's July 10 closing price. After the deal closes, First Hawaiian and TriCo shareholders are expected to own approximately 65% and 35% of the combined company, respectively.
The merger will create a bank with roughly
$34 billion in assets, making it the sixth-largest bank headquartered in the western U.S. First Hawaiian will retain the Tri Counties Bank brand on the mainland, and no branch closures are expected. Four TriCo directors, including CEO Rick Smith, will join the boards of the combined company.
Alongside the acquisition announcement, First Hawaiian released preliminary Q2 results, forecasting net income of
$73.4 million and EPS of
$0.60, up from
$67.8 million and
$0.55 in the prior quarter.
$FHB $TCBK