Notice Regarding Issuance of Class C Preferred Shares by Third-Party Allotment, Partial Amendment of Articles of Incorporation and Concurrent Reduction of Capital and Capital Surplus upon Share Issuance

Overview of Capital Policy

The Shimane Bank,Ltd. will carry out a third-party allotment to SBI Shinsei Bank aimed at strengthening community-based banking and improving financial soundness. The number of shares to be issued is 10,000,000 shares at an issue price of 1,000 yen, raising a total of 100 hundred million yen. At the same time, the articles of incorporation will be amended to newly establish Class C preferred shares. In conjunction with this, the amounts of capital and capital surplus will each be reduced by 5,000,000,000 yen and transferred to other capital surplus.

Outlook and Impact on Shareholders

This third-party allotment is structured to maintain and improve the stability of the capital adequacy ratio, with measures to suppress dilution. It includes detailed provisions such as redemption terms, conversion conditions, and market price linkage adjustments, and is conditional upon approval at an extraordinary general meeting of shareholders. Going forward, it may lead to a review of mid-term plan KGIs and affect future capital policy.