Daiwa Securities Group : The Bank of Iwate, Ltd. and Daiwa Securities Co. Ltd. Sign Final Agreement for Comprehensive Business Alliance to Build A New Model of Collaboration

The Bank of Iwate, Ltd. and Daiwa Securities Co. Ltd. announced that their respective boards of directors have resolved to enter into a final agreement based on a memorandum of understanding for a comprehensive business alliance between IwateBank and Daiwa Securities, which was concluded on November 12, 2024, and discussions regarding the Alliance. Purpose of the Alliance- Since the conclusion of the MOU, Iwate Bank and Daiwa Securities have held a number of discussions to build a new model of collaboration. In the areas where Iwate Bank is mainly based, the population is declining and aging at a faster pace than the national average, and it is an urgent task for financial service providers in these areas to support customers in managing their assets appropriately and encourage local customers to build up their assets based on a higher level of financial literacy. Based on the recognition of these issues, the two companies again agreed on the importance of "achieving a high-level consulting" and "improving and raising the level of financial literacy in the region" by combining Iwate Bank's community-based support network and Daiwa Securities' knowledge, experience and platform in the securities business, as stipulated in the MOU. The two companies will aim to build a new model of collaboration based on the Final Agreement in April 2026, when Iwate Bank's next medium-term management plan begins. The two companies intend to pursue a wealth management business model tailored to the local area by forming a organization to provide a wide range of products and services to customers from eight bases centered on Iwate Prefecture. The two companies will work together to provide asset building and wealth management services that are more accessible to local customers, with the aim of helping to enrich their lives and contribute to the development of the local economy. Details of the Alliance- The details of the Alliance are as follows. (1) Integration of customers' securities-related accounts. The customers' securities accounts at Iwate Bank related to public bonds and investment trusts will be transferred to Daiwa Securities through an absorption-type company split. In addition to the above accounts, Daiwa Securities will integrate and manage accounts related to financial instruments intermediary contracts that have already been concluded between Iwate Bank and Daiwa Securities and the accounts of Daiwa Securities' Morioka Branch (excluding some accounts of listed corporations and financial corporations, etc.). (2) Entrustment of financial instruments intermediary services and other services from Daiwa Securities to Iwate Bank. Regarding the integrated accounts described above in "(1) Integration of customers' securities-related accounts", Daiwa Securities will entrust to Iwate Bank financial instruments intermediary services for stocks, bonds, investment trusts, and foreign exchange transactions, as well as services related to intermediation of discretionary investment contracts for fund wraps, etc. With regard to the bank agency business entrusted to Daiwa Securities by Daiwa Next Bank, Ltd., Iwate Bank, which has been re-entrusted by Daiwa Securities, will act as a bank agency for Daiwa Next Bank and act as an intermediary in concluding contracts for "accepting deposits" and "domestic exchange transactions". (3) Secondment of employees, etc. from Daiwa Securities Daiwa Securities will second employees, etc. to Iwate Bank, and the econded employees, etc. will work with employees of Iwate Bank in the entrusted businesses described above in "(2) Entrustment of financial instruments intermediary services and other services from Daiwa Securities to Iwate Bank." (Daiwa Securities' Morioka Branch will close in conjunction with the start of the new model of collaboration.) (4) Sales organization and locations Iwate Bank will establish a new "Asset Consulting Department" within the bank to act as an intermediary for financial products and plans to build a network to provide a wide range of products and services from each of the following locations (tentative): Morioka, Ninohe, Hanamaki, Oshu, Miyako, Ofunato, Hachinohe, and Sendai. By providing high-value-added consulting services for all customer assets, the two companies aim to increase the total value of assets under management, including insurance, from the current total of approximately 580 billion yen to 850 billion yen within five (5) years of the start of their collaboration. 4. Schedule for the Alliance (Tentative) (1) Conclusion of absorption-type company split agreement: March 24, 2025 (2) Contacting customers (sending documents explaining the Alliance): May 2025 and thereafter in stages (3) Start of new model of collaboration through the Alliance: April 2026 (4) Transition of financial product intermediary accounts through the Alliance Iwate Bank financial product intermediary accounts and Daiwa Securities Morioka Branch accounts: April 2026. Iwate Bank securities accounts: May 2026. 5. Future Outlook, The planned Alliance will have marginal impact on the consolidated financial results of Iwate Bank and Daiwa Securities Group Inc. They will immediately issue an announcement if the possibility of a material impact arises.