First Hawaiian, Inc. (NASDAQ:FHB) has agreed to acquire TriCo Bancshares (NASDAQ:TCBK), a combination the bank said will create the leading Pacific banking franchise and accelerate its expansion on the US mainland.
First Hawaiian described the transaction as a strategic step that pairs two deposit-focused banking platforms, extending its reach beyond its core Hawaii market into TriCo's California footprint.
First Hawaiian, the holding company for First Hawaiian Bank, is the largest financial institution headquartered in Hawaii, with a franchise built on retail and commercial deposits across the islands.
TriCo Bancshares is the parent of Tri Counties Bank, a community-focused lender operating across Northern and Central California.
The pairing of deposit platforms sits at the core of the rationale, as low-cost deposits underpin a bank's funding and lending capacity.
Shares of First Hawaiian dropped 4.2% on Monday morning while TriCo Bancshares was up nearly 11%.