Taichung Bank Fined NT$2 Million by Financial Supervisory Commission Due to Former Employee Misconduct

Disclosure Date: 1150816 Statement Date: 1150815 Statement Time: 181505 Company Code: 2812 Company Name: Taichung Bank Subject: Announcement Regarding Explanation of FSC Penalty Case Compliance Clause: Clause 26 Event Date: 1150815

Details: 1. Event Date: 115/08/15 2. Entity Involved: Our Company 3. Reason for Incident (Event Description): A former employee of Taichung Commercial Bank misappropriated on-hand cash and committed deficiencies in credit operations, violating Article 45-1, Paragraph 1 of the Banking Act and related regulations under its authorization, specifically Article 4, Paragraph 1, Article 12, Paragraph 1 and Paragraph 3 of the 'Implementation Rules for Internal Control and Audit Systems of Financial Holding Companies and Financial Institutions'. Accordingly, a fine of NT$2 million was imposed under Article 129, Clause 7 of the same Act. 4. Handling Process: The bank will implement relevant improvement measures based on the regulatory authority's recommendations. 5. Penalty Details: A fine of NT$2,000,000 imposed. 6. Whether Fined: Yes 7. Fine Amount (NTD): NT$2,000,000 8. Estimated Potential Loss or Impact: NT$2,000,000 9. Potential Insurance Payout Amount (NTD): None 10. Improvement Status and Future Measures: The bank will carry out improvement measures as directed by the regulatory authority. Company operations remain normal. 11. Has a material information announcement on the same event been issued previously: No 12. Other Matters to be Disclosed: None