Today, on 21 February 2022, the boards of Sparebanken Vest and Etne Sparebank
have decided on a plan for merging the two banks. The agreement regulating the
main principles related to a merger was unanimously adopted by both banks'
boards.

Background and objectives:

Today, Sparebanken Vest and Etne Sparebank are two strong and locally anchored
savings banks, with a number of similarities in profile, and with some
overlapping market areas in Sunnhordland. The banks currently have strong
product cooperation through the companies Frende, Brage and Norne.
The merger will create added value for customers and the local community in Etne
and Vindafjord.
The merger will create the basis for a long-term investment in the region, for
the benefit of retail and corporate customers. Sparebanken Vest's high customer
satisfaction and strong digital solutions will be a good match with the offer
Etne Sparebank's customers know today. Both banks have a tradition of sharing
their profits with the local community. This is strengthened through the merger.
In addition, current customers of Etne Sparebank will also be allowed to take
part in the profit sharing through customer dividends. It is also a goal to
maintain an environment of work places in finance in the area.

Selected pro-forma key figures (not audited) based on accounting figures as of
31 December 2021 show for the merged bank
o Average assets under management, incl. loans transferred to Verd Boligkreditt:
240 billion
o Gross lending incl. loans transferred to Verd Boligkreditt: 206 billion 
o Deposits: 92 billion 
o Total equity: 20 billion 
o Number of branches: 35
o Number fulltime equivalents: 774
 
General principles based on the agreement:

According to the agreement, Sparebanken Vest will be the takeover bank and the
merged bank's name will be Sparebanken Vest. The bank's head office will be
located in Bergen.
The merged bank will keep Sparebanken Vest's profile and anchoring as a strong
local savings bank. The agreement plans to keep an office in Etne, increase
investment in Etne and Vindafjord, and build on the strong position Etne
Sparebank has established in the area. 
No changes are proposed to the general meeting, nomination committee, board of
directors or group management in Sparebanken Vest as a result of the merger.

Terms:

The valuation is set at NOK 320 million, which corresponds to price/book 1.15
based on estimated book equity in Etne Sparebank 31 December 2021. The valuation
may be adjusted after the quarterly result for Etne Sparebank is published, and
following the completion of the financial due dilligence.
80% of the settlement will be made through the issuance of 2,473,430 new equity
certificates in Sparebanken Vest (SVEG). The number of new equity certificates
may be adjusted following a possible adjustment of the valuation.The
subscription price for the equity certificates issued is NOK 108, which
corresponds to the volume-weighted average price on equity certificates in
Sparebanken Vest in the period from 26 January to 16 February 2022. 
The subscription price shall be adjusted for dividends per equity certificate
for the financial year 2021 adopted by the general meeting. 
The equity certificates will be granted dividend rights from the financial year
2022. 20% of the settlement will be made as cash. The settlement will be placed
in a newly established foundation, Sparebankstiftelsen Etne, which aims to own
equity certificates in Sparebanken Vest and continue the savings bank tradition
by disposing of dividends (gifts) for non-profit purposes.
After the transaction, the percentage of ownership will be about 40.8%

Financial effects of the transaction:

So far, the Banks have identified MNOK 25-30 in annual synergies fully phased
in, divided between cost and capital synergies. Banks expect the synergies,
provided that the merger is fully realised, to achieve full effect in 2024. 
In 2024, the transaction will have a neutral effect on Sparebanken Vest's return
on equity. Earnings per equity certificate are expected to increase by about 15
øre per equity certificate.
Transaction costs and implementation costs for realising synergies are expected
to accrue in 2022, and are currently estimated to amount to approximately MNOK
30 after tax. 
In year 1, the transaction will therefore have a negative effect on the return
on equity of approximately 0.25% points and approximately 5 øre on earnings per
equity certificate.
Sparebanken Vest's long-term financial target is unchanged as a result of the
transaction.

Time-line: 

The merger agreements will be decided on at the banks' general meetings on 23
March 2022. According to the preliminary timetable, implementation of the merger
is scheduled for autumn 2022.

Other:

The agreement is conditional on, among other things, approval at the Banks'
general meetings, and the necessary approvals from authorities and contracting
parties on acceptable terms.
Banks have engaged PWC as advisors in connection with the merger, while
Advokatfirmaet Selmer AS is engaged as a joint legal advisor. 

Contacts: 

Sparebanken Vest:
Jan Erik Kjerpeseth, CEO, phone. 951 98 430
Frank Johannesen, CFO, phone. 952 65 971
Hans Olav Ingdal, Director of Finance and IR, phone. 948 09 328
Hanne Dankertsen, Director of Communications, phone. 994 49 173

Etne Sparebank:
Sveinung Eskeland, Chairman of the Board of Directors, phone. 917 22 196
Rune Ramsvik, CEO, phone. 950 05 070

This information is subject to the disclosure requirements pursuant to Section
5-12 of the Securities Trading Act.