First Hawaiian stock holds at Hold as Benchmark cites TriCo acquisition

First Hawaiian stock holds at Hold as Benchmark cites TriCo acquisition

US concludes third round of strikes against Iran after Trump reinstates blockade Investing.com - Benchmark maintained its Hold rating on First Hawaiian (NASDAQ:FHB) following the bank’s announcement of its acquisition of TriCo Bancshares. First Hawaiian announced it is acquiring Chico, California-based TriCo Bancshares, adding $9.9 billion in assets, $7.1 billion in loans, and $8.4 billion in deposits. The acquisition significantly expands First Hawaiian’s footprint, with the bank currently holding a market capitalization of $3.54 billion and trading at a P/E ratio of 12.77.

TriCo operates 68 branches with zero overlap with First Hawaiian, and no branch closures are anticipated. The transaction is expected to close by year-end, subject to customary regulatory and shareholder approvals. Key members of TriCo management will be retained in leadership positions, including CEO Rick Smith, CFO Peter Weise, and CBO Dan Bailey.

Management retention has been a requirement in First Hawaiian’s deal criteria. The bank’s financial stability supports such strategic moves, offering shareholders a 3.57% dividend yield and maintaining dividend payments for 11 consecutive years, according to InvestingPro analysis. InvestingPro data indicates the stock is currently undervalued, with comprehensive analysis available in the platform’s Pro Research Report covering FHB and over 1,400 US equities.

Rick Smith will join the board, along with three other TriCo representatives to be named later. The mainland banking presence will continue to operate as Tri Counties Bank. In other recent news, First Hawaiian Inc. reported its first-quarter earnings for 2026, showing a slight beat on earnings per share (EPS) but missing revenue expectations.

The company reported an EPS of $0.55, slightly above the forecast of $0.54. However, revenue came in at $220.35 million, just below the expected $221.04 million. In another development, First Hawaiian announced the acquisition of TriCo Bancshares in an all-stock transaction.

TriCo shareholders will receive 2.095 First Hawaiian shares for each TriCo share. Upon closing, First Hawaiian and TriCo shareholders are expected to own approximately 65% and 35% of the combined company, respectively. These recent developments highlight significant changes for First Hawaiian, both in terms of financial performance and strategic growth.