Regarding the Conclusion of Capital and Business Alliance with Ikeda Senshu Holdings, Inc.

Background and Purpose of the Capital and Business Alliance

In light of significant changes surrounding regional financial institutions, such as population decline, shifts in industrial structures, progress in digitalization, and decarbonization efforts, Shiga Bank and Ikeda Senshu Holdings have decided to form a capital and business alliance to create value as regional financial institutions. Both companies mainly operate in Osaka Prefecture and Hyogo Prefecture, providing community-based financial services. They aim to mutually utilize management resources such as branch networks, customer bases, human resources, and brands to create high value-added services and contribute to sustainable development.

Overview of the Alliance and Future Initiatives

This alliance involves mutual share acquisition to establish a capital relationship, with an expected acquisition ratio of approximately 0.5% to 1.0%. The specific number of shares and acquisition method will be determined by both companies considering market conditions. Business cooperation will span corporate, individual, sustainability and community support, human resources, and digital domains to deepen collaboration and strengthen regional financial capabilities. The impact on consolidated financial results is assessed as minor, but if any significant impact is identified, it will be promptly disclosed.