First Hawaiian capital figures released on October 23, 2026, showed third-quarter tangible book value of $14.97 per share and a common equity tier 1 capital ratio of 13.5%. The update comes as the Honolulu-based bank holding company prepares for its planned acquisition of TriCo Bancshares, the parent of Tri Counties Bank.
Key Takeaways
- Third-quarter tangible book value was $14.97 per share, with a CET1 capital ratio of 13.5%.
- The planned all-stock TriCo acquisition would expand First Hawaiian’s mainland banking presence.
- A 45% dividend payout ratio indicates earnings coverage but does not guarantee future payments.
Table of Contents
- First Hawaiian capital measures frame the quarterly update
- TriCo acquisition targets a broader mainland franchise
- Dividend figures show coverage, not a payment guarantee
- Conclusion
First Hawaiian capital measures frame the quarterly update
Management highlighted strong quarterly earnings and deposit growth alongside the capital figures. The figures provide a snapshot of the bank’s balance sheet ahead of the proposed combination, rather than a measure of the acquisition’s eventual financial effects.
Tangible book value per share measures shareholder equity after excluding intangible assets. CET1 is a regulatory measure of core equity capital relative to risk-weighted assets. The two figures describe different aspects of the balance sheet and should not be treated as interchangeable measures of financial strength.
| Item | Details |
|---|---|
| TriCo exchange ratio | 2.095 First Hawaiian shares for each TriCo share. |
| Expected combined ownership | Approximately 65% for First Hawaiian shareholders and 35% for TriCo shareholders upon closing. |
| Board representation | Four current TriCo directors would join the First Hawaiian and First Hawaiian Bank boards. |
| Branch plans | No branch closings were expected in connection with the transaction at announcement. |
TriCo acquisition targets a broader mainland franchise
First Hawaiian’s July 13 acquisition announcement set out an all-stock purchase of TriCo Bancshares. The companies said the combination would have approximately $34 billion in assets and expand First Hawaiian’s geographic reach into California.
The boards of both companies unanimously approved the agreement. At announcement, the companies expected completion by the end of 2026, subject to regulatory approvals, shareholder approvals and customary closing conditions. That timetable is an expectation, not confirmation that the transaction has closed.
First Hawaiian already operates through its principal banking subsidiary across Hawaii, Guam and Saipan. The proposed combination would add Tri Counties Bank’s California franchise while retaining its mainland branding.
Dividend figures show coverage, not a payment guarantee
The metrics accompanying the October update put First Hawaiian’s dividend yield at 4.07% and its payout ratio at 45%. Dividend growth had been flat over the preceding three years.
A 45% payout ratio means dividends represented less than half of earnings under that measure. It does not establish that payments will increase or remain unchanged. The yield also depends on the share price, so it is a point-in-time figure rather than a fixed return.
Conclusion
The next milestone for First Hawaiian is progress toward the planned TriCo closing. The announced year-end 2026 target remains subject to the required approvals and other closing conditions.
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