First Hawaiian Reports Q2 2026 Financial Results, Announces $2 Billion Acquisition of TriCo Bancshares

First Hawaiian, Inc. reported its financial results for the second quarter of 2026, revealing a net income of $73.4 million, a slight increase from $73.2 million in the same period last year. Basic and diluted earnings per share rose to $0.60, up from $0.58 in the prior year. The company's total interest income for the quarter was $232.4 million, down from $236.7 million a year earlier, while interest expense decreased to $61.4 million from $73.2 million, resulting in a net interest income of $171.0 million, a 5% increase year-over-year. The provision for credit losses was $5.6 million, reflecting a 24% increase compared to the previous year, attributed to higher provisions for consumer and construction loans.

In terms of operational metrics, First Hawaiian's total loans and leases increased to $14.6 billion as of June 30, 2026, a 2% rise from $14.3 billion at the end of 2025. The allowance for credit losses stood at $168.1 million, representing 1.15% of total loans and leases, slightly down from 1.18% at the end of the previous year. The company maintained a strong capital position, with a Common Equity Tier 1 (CET1) capital ratio of 13.27%, up from 13.17% at the end of 2025.

Strategically, First Hawaiian announced a definitive agreement to acquire TriCo Bancshares in an all-stock transaction valued at approximately $2 billion. This merger is expected to enhance First Hawaiian's geographic footprint and product offerings, with TriCo's assets reported at around $10 billion. The merger is subject to regulatory and shareholder approvals and is anticipated to close by the end of 2026.

The company also reported a decrease in total deposits to $20.2 billion, down from $20.5 billion at the end of 2025, primarily due to reductions in savings and demand deposit balances. Despite this, First Hawaiian's liquidity remains strong, with cash and cash equivalents totaling $1.0 billion. The bank's efficiency ratio improved to 56.17% from 57.23% a year earlier, indicating better cost management relative to its income generation.

Looking ahead, First Hawaiian's management expressed confidence in maintaining its capital adequacy and liquidity levels while navigating the challenges posed by the current economic environment, including inflation and interest rate fluctuations. The company aims to leverage its strong financial position to capitalize on growth opportunities, particularly through the upcoming merger with TriCo, which is expected to provide significant strategic benefits.