Chiba Kogyo Bank announces merger and share repurchase

The Chiba Kogyo Bank, Ltd. announced a management consolidation with The Chiba Bank, Ltd., through a joint share transfer establishing a holding company by April 1, 2027. This move aims to strengthen regional financial capabilities, facilitate regional revitalization, and optimize management resources. The new financial group will combine total assets of JPY 24,878.1 bn, deposits of JPY 19,148.3 bn, and 5,593 employees.

In a separate but related announcement, The Chiba Kogyo Bank, Ltd. detailed the repurchase of 500,000 Class II Preferred Shares, representing 25% of total issued shares, for a total of JPY 2,000,000,000 at JPY 4,000 per share. This repurchase, effective October 20, 2025, is intended to reduce future dividend burdens related to these preferred shares and enhance the value of the Bank's common shares. Class II Preferred Shares, deemed "qualifying noncumulative perpetual preferred stock" under Basel III, are partially excluded from core capital calculations for the capital adequacy ratio as of March 2026.