First Hawaiian has agreed to acquire TriCo Bancshares in an all-stock transaction valued at about US$2b. TriCo shareholders will receive 2.095 First Hawaiian shares for each TriCo share. The deal follows strong momentum for TriCo, with a 43.90% one-year total shareholder return. TriCo closed at $60.07, trading at a price-to-earnings ratio of 14.9x, above the US Banks industry average of 12.2x but below a peer group average of 28.3x. A discounted cash flow model estimates fair value at $77.87 per share, suggesting the stock is undervalued.
First Hawaiian IncFirst Hawaiian is the acquirer in a $2B all-stock deal, which is a capital event (M&A).
TriCo BancsharesTriCo Bancshares is being acquired at a premium, with shareholders receiving 2.095 First Hawaiian shares per TriCo share.