The business integration described in this press release involves securities of a foreign company.
The business integration is subject to disclosure requirements of a foreign country that aredifferent from those of the United States. Financial information included in this document, if
any, was excerpted from financial statements prepared in accordance with foreign accounting
standards that may not be comparable to the financial statements of United States companies.
It may be difficult for you to enforce your rights and any claim you may have arising under theU.S. federal securities laws, since the issuer is located in a foreign country and all of its officers
and directors are residents of a foreign country. You may not be able to sue a foreign company
or its officers or directors in a foreign court for violations of the U.S. securities laws. It may bedifficult to compel a foreign company and its affiliates to subject themselves to a U.S. court’s
judgment.
You should be aware that the issuer may purchase securities otherwise than under the businessintegration, such as in open market or privately negotiated purchases.
This document has been translated from the Japanese-language original for reference purposes
only. While this English translation is believed to be generally accurate, it is subject to, andqualified by, in its entirety, the Japanese-language original. Such Japanese-language original
shall be the controlling document for all purposes.

August 24, 2018
To whom it may concern:
Company Name: Fukuoka Financial Group, Inc.
Representative: Takashige Shibato, President
Head Office: 8-3, Otemon 1 chome, Chuo-ku, Fukuoka(Code No. 8354 TSE First Section, FSE)
Contact:

Tomoyuki

Ushijima,GeneralManager,Corporate Planning Division(Phone +81-92-723-2502)
Company Name: The Eighteenth Bank, Limited
Representative:

TakujiroMori,Representative

Executive Officer & President
Head Office: 1-11, Doza–machi, Nagasaki(Code No. 8396 TSE First Section, FSE)
Contact: Kiyoshi Adachi, General Manager, CorporatePlanning Division(Phone +81-95-828-8099)

Notice concerning Receipt of Review Results from Japan Fair Trade Commission
concerning Business Integration of Fukuoka Financial Group, Inc. and The EighteenthBank, Limited
As we announced in the press release of February 26, 2016, titled “Memorandum ofUnderstanding regarding Business Integration,” Fukuoka Financial Group, Inc.
(President: Takashige Shibato) and The Eighteenth Bank, Limited (Representative
Executive Officer & President: Takujiro Mori) are promoting consultation andconsideration toward the realization of a business integration.
Two (2) years and six (6) months have passed since the announcement of theMemorandum of Understanding regarding Business Integration, and in the meantime,
we have twice postponed the schedule and have caused worry to our customers and local
residents in Nagasaki. However, we announce that, in connection with the businessintegration plan of both companies, we received the “Notice of Non-issuance of Cease
and Desist Order” from Japan Fair Trade Commission today.
The Notice of Non-issuance of Cease and Desist Order which we received today ispremised on the transfer of a certain amount of credited loans and the establishment
and operation of a monitoring structure. Please see the website of Japan Fair TradeCommission (http://www.jftc.go.jp/) for details.
In addition, we announce the purpose of the business integration and the futureschedule as follows.

1. Purpose of Business Integration and Efforts toward Realization Thereof
In the severe environment, Fukuoka Financial Group and Eighteenth Bank aim,
through the efficiencies realized by the business integration, to play the essential role of
the regional financial institution contributing to the development of the economy ofNagasaki in the future, and set forth the following three (3) points as the purpose andphilosophy of the business integration: (i) “simultaneous realization of the vitalizationof the regional economy and the improvement of corporate value” through operational
efficiencies achieved by economies of scale, (ii) “contribution to the development ofenterprises in Nagasaki” by the establishment of a new bank with robust managementfoundation, and (iii) being a “financial group with No.1 customer experience” utilizing
the networks among group banks and the enhancement of the function of the holdingcompany.
Specifically, as we have explained, we will strengthen efforts to resolve customerissues by utilizing the management resources, including manpower, derived from thesynergy effect from the business integration to establish close relationships withcustomers, and will maintain the networks of branches across the whole of Nagasaki,including on the isolated islands, through operational efficiencies realized byeliminating and consolidating overlapping branches etc., and thereby we will improvecustomer convenience so as to be better than ever.
Within this fiscal year, we will set up a system under which period disclosure will beconducted as follows with reference to quantitative and qualitative criteria, so that local
residents can confirm that those efforts are indeed being implemented.
・ We will maintain the networks of branches, including on the isolated islands,
after the merger by and between Eighteenth Bank and Shinwa Bank. For thepurpose of confirming this point, with respect to the elimination andconsolidation of branches scheduled to be conducted after the integration, we
will disclose the criteria by which residents can confirm that only branches inclose proximity to others are to be subject to elimination and consolidation, tothe extent that customer convenience is not harmed.
・ We will introduce a system under which the interest rate level can be checked
before lending, so that the interest rate for the loan cannot be unduly raised
after the integration, and at the same time, we will disclose the “New Lending
Rates on Loans for Small- and Medium-sized Companies in Nagasaki.”・ We will disclose the “Number of Parties for which Assistance for BusinessSuccession has been Provided” and the “Number of Cases of Expansion ofDistribution Routes” etc. so that we can make sure that the synergy effect fromthe integration is passed on to services for customers.
・ By utilizing the manpower derived from the integration to establish
relationships with customers, we will implement loans with a better
understanding of the business of customers. In order to make sure of thisissue, we will disclose the “Number of Parties on which Business Assessments
have been Conducted,” “Number of Cases where the Guidelines forManagement Guaranty have been Utilized,” “Number of Parties concerningwhich Efforts of Assistance to Improve Management have been Conducted,”and “Percentage of Small- and Medium-sized Companies in Nagasaki which
Carry Out Loan Transactions with Eighteenth Bank and Shinwa Bank within
All Companies in Nagasaki” etc.

We will improve the criteria for this monitoring, through hearing the opinions oflocal residents, including customers, and carrying on a dialogue with them in earnest,by periodically conducting questionnaire surveys, etc. in the future. Also, we will set
such additional criteria as are required for review or inspection and supervision by
Financial Services Agency (FSA).
Furthermore, through the triple check structure, where not only will we check thestate of implementation of the above, but we will also report to the committee comprisedof third parties such as the local business owners and experts, and, furthermore thestatus of implementation shall be subject to the inspection and supervision by FSA, wewill make efforts so that the results of the integration will contribute to the well-beingof local people.
We consider that conduct of the operations under these structures, avoiding theharmful effects of monopoly and oligopoly, will lead to the elimination of “worries orconcerns of local residents” caused by the business integration in the same region, andwill satisfy the function of “maintenance and conduct of the monitoring structure”
which is one of the conditions of the approval by Japan Fair Trade Commission.

2. Future Schedule
From now, toward the business integration as of April 1, 2019 and the merger by andbetween Eighteenth Bank and Shinwa Bank in April 2020, we will accelerate thepreparations for the integration of both companies, and will aim at early realization of
the purpose of the integration, such as contribution to the development of the economyof Nagasaki in the severe environment.
October 2018

(Planned)

Execution of Share Exchange Agreement (Executionof Definitive Agreement)

December 2018 (Planned)

Extraordinary General Meeting of Shareholders

April 1, 2019

(Planned)

Effective Date of Share Exchange

April 1, 2020

(Planned)

Merger by and between Eighteenth Bank andShinwa Bank

3. Previous Background 【For the Reference Purposes】

February 26, 2016

Announcement of “Memorandum of Understanding regarding Business
Integration”(Effective Date of Share Exchange was set for April 1, 2017.)

June 8, 2016

Commencement of initial review by Japan Fair Trade Commission

July 8, 2016

Commencement of secondary review by Japan Fair Trade Commission

August 30, 2016

Announcement of “Notice concerning Schedule for Execution of Definitive
Agreement regarding Business Integration”

January 20, 2017Announcement of “Notice concerning Schedule for Business Integration of
Fukuoka Financial Group, Inc. and The Eighteenth Bank, Limited”(Effective Date of Share Exchange was postponed to October 1, 2017.)

July 25, 2017

Announcement of “Notice concerning Schedule for Business Integration of
Fukuoka Financial Group, Inc. and The Eighteenth Bank, Limited”(Effective date of Share Exchange was postponed with the statement that
it would be announced “when it is determined, without delay.”)

May 7, 2018

Announcementof“TowardRealizationofBusiness

Integration

Contributing to Vitalization of Nagasaki Economy”(Efforts toward realization of purpose of business integration andconduct of refinancing assistance)<Contact for inquiries regarding this matter>
Fukuoka Financial Group: Corporate Planning Division, Corporate Strategy Group
Phone +81-92-723-2622

Eighteenth Bank: Corporate Planning Division
Phone +81-95-828-8099