ProfileNagano Bank is a regional bank established in 1950. It is based in Nagano Prefecture in central Japan. Since its
founding, the bank has worked tirelessly to contribute to local communities by offering a wide range offinancial products and services.
As of March 31, 2020, we operate 52 branches in Nagano Prefecture and 1 branch in Tokyo. At the same time,
total deposits stood at ¥1,074 billion (US$9,875 million) and total assets at ¥1,134 billion (US$10,427million).
Moreover, the bank got listed in the Second Section of the Tokyo Stock Exchange in March 1997. The listing
was subsequently moved to the First Section in September 1998, and additional capital was raised via thirdparty allotments of shares in 1999 to further improve the bank’s equity and gradually build a strong businessfoundation.

Message from the Management
I would like to express my appreciation to all stakeholders for their patronage and loyal support of Nagano
Bank. We have published this disclosure report to provide stakeholders with a deeper understanding of thebank’s operations and an easy-to-understand explanation of our business results and initiatives for the fiscal
year that ended on March 31, 2020. We hope you will take the time to read this disclosure report and find it
useful.
Based on our 11th medium-term management plan whose implementation began in April 2019, we havealready made efforts to unify management of accounts to further improve efficiency in order to deepen ourrelationship with small and medium-sized businesses and retail customers by positioning ourselves as“Nagano Prefecture’s home bank.”
The business environment we operate in is influenced by a population decline and aging society with a lowbirthrate. They produce a contraction of our business base. Moreover, the Bank of Japan’s quantitative andqualitative monetary easing with yield curve control causes deterioration of our business earnings as well as
the entries of different industries make our industry more competitive. These create an even more challenging
situation. Meanwhile, vigorous activities may decrease in the local business due to the COVID-19 pandemic,
while the impact of Typhoon No.19 in 2019 remains.
To overcome these aspects of the business environment, everyday business operations will take a big leap
forward by making all employees a part of this process according to our 11th medium-term management plan.
It is our company’s 70th anniversary in November this year. This would not have been possible without yourcontribution, and we deeply appreciate it.

July 2020

Hitoshi Nishizawa, President

1Non-Consolidated Balance Sheets

As of March 31, 2020 and 2019

Thousands ofU.S.dollars

Millions of yen2020

2019

2020

¥ 105,062¥ 47,201$ 965,385

Call loans

10,0008,776

91,886

Securities

380,714

399,459

3,498,251

Loans and bills discounted

620,535

620,348

5,701,875

Foreign exchanges

2,735

468

25,136

Other assets

10,50013,631

96,483

Tangible fixed assets

8,950

9,581

82,242Intangible fixed assets

528

617

4,855

Prepaid pension cost

624

594

5,740

Customers' liabilities for acceptances and guarantees

1,437

1,412

13,209Allowance for loan losses(6,246)(7,805)(57,394)¥ 1,134,843¥1,094,288$ 10,427,673¥ 1,074,758¥1,031,209$ 9,875,574

Borrowed money

103

358

948

Foreign exchanges－0－Bonds with subscription rights to shares

2,965

2,965

27,244

Other liabilities

6,132

3,096

56,350

Provisions

1,087

1,082

9,993

444

2,007

4,082

1,437

1,412

13,209¥ 1,086,929¥1,042,132$ 9,987,404

Capital stock¥ 13,017¥13,017$ 119,613

Capital surplus

9,681

9,681

88,956

Retained earnings

22,632

21,978207,964

Treasury stock

(702)

(759)

(6,458)

Total shareholders' equity

44,628¥ 43,917

410,076

Total valuation and translation adjustments

3,237¥ 8,162

29,749

48

75

443

47,914¥ 52,155

440,269¥1,134,843¥1,094,288$ 10,427,673

AssetsCash and due from banks

Total assets
Liabilities and net assets
Liabilities
Deposits

Deferred tax liability
Acceptances and guarantees
Total liabilities
Net assets

Subscription rights to shares
Total net assets
Total liabilities and net assets

Notes:1. Japanese yen figures are expressed with amounts under one million omitted. Accordingly, breakdown figures may not add up to the sum totals given.
2. U.S. dollar amounts represent translations of Japanese yen at the exchange rate of ¥108.83 to US$1.00, the prevailing rate on March 31, 2020
(the last business day of the term).

2Non-Consolidated Statements of Operations and Retained Earnings

For the years ended March 31, 2020 and 2019

Thousands ofU.S.dollars

millions of yen2020

2019

2020

IncomeInterest on loans and discounts¥ 7,981¥ 8,396$ 73,342

5,284

4,380

48,556

Interest on call loans

218

21

Other interest income

2026

184

Fees and commissions

1,366

1,199

12,555

Other operating income

585

740

5,382

Other income

2,322

1,358

21,344

Total income¥ 17,563¥ 16,120$ 161,387

Interest on deposits

¥ 208

¥ 233

$ 1,916

Interest on call money(0)(0)(0)

Other interest expenses

7778

716

Fees and commissions

1,561

1,596

14,345

Other operating expenses

1,928

891

17,716

General and administrative expenses

10,311

10,52994,745

Other expenses

1,694

1,602

15,566

Total expenses¥ 15,780¥ 14,931$ 145,005

Income before income taxes

1,782

1,189

$ 16,381

Income taxes-current

85

263

781

Income taxes-deferred

532

(255)

4,893

¥ 1,165¥ 1,181$ 10,706Interest and dividends on securities

Expenses

Net incomeNotes:1. Japanese yen figures are expressed with amounts under one million omitted. Accordingly, breakdown figures may not add up to the sum totals given.
2. U.S. dollar amounts represent translations of Japanese yen at the exchange rate of ¥108.83 to US$1.00, the prevailing rateon March 31, 2020 (the last business day of the term)

3

Risk-Managed Loans under the Banking Law

As of March 31, 2020 and 2019

Thousands ofU.S. dollars

Millions of yen2020

2019

2020

Loans to legally bankrupt borrowers１¥ 1,140¥ 1,478$ 10,483

Loans with repayment in arrears2

13,201

15,504

121,307－
457－
529

－
4,200

¥ 14,799¥ 17,512$ 135,991

Loans repayment extended for more than three months3
Loans whose terms have been eased4
TotalNotes:

1. Loans to legally bankrupt borrowers refer to loans for which the accrual of interest income for accounting purposes is no longer recognized, and at the same time where theobligor is the subject of legal proceedings under the company rehabilitation law, the bankruptcy law, the civil rehabilitation law, or the commercial code; and/or where theobligor’s bills are barred by clearing houses.
2. Loans with repayment in arrears refer to loans for which the accrual of interest income for accounting purposes is no longer recognized, other than those falling into thecategory of “loans to legally bankrupt borrowers” or loans on which the receipt of interest has been waived in order to provide support for the obligor in corporate
rehabilitation efforts.
3. Loans repayment extended for more than three months or more refers to loans for which payments of principal or interest are delinquent by three months or more, ascalculated from the day following the contracted payment date, but that are not within the scope of loans to legally bankrupt borrowers or loans with repayment in arrears.
4. Loans whose terms have been eased comprise loans for which lending conditions have been relaxed to promote the financial rehabilitation of obligors in distress, such as
reduction of the original interest rate, forbearance of interest payment and/or principal repayment, waiver of claims, and similar measures that are outside the scope of thecategories of “loans to legally bankrupt borrowers,” “loans with repayment in arrears,” and “loans repayment extended for more than three months or more.”
5. Japanese yen figures are expressed with amounts under one million omitted. Accordingly, breakdown figures may not add up to the sum totals given.
6. U.S. dollar amounts represent translations of Japanese yen at the exchange rate of ¥108.83 to US$1.00, the prevailing rate on March 31, 2020
(the last business day of the term).

Risk Management System
Evolving regulatory frameworks, internationalization and derivatives trading are only some of the elements of the changing world of finance.
It is necessary to ensure more diversification and find ways to deal with increasingly complex settings for financial organizations to be able tofind new business opportunities. For this reason, risk management in the financial sector is more important than ever.
To ensure that our financial situation remains sound and revenue growth develops as anticipated within this environment, we consider risk
management an issue of the highest priority and therefore engage in ongoing efforts to strengthen our comprehensive risk management system.
The main risks financial institutions are exposed to include credit risk, market risk, liquidity risk and operational risk. To adequately addressthese issues, Nagano Bank has drafted internal policies and regulations to clearly define responsibilities within the organization in regards torisk management. Furthermore, to monitor the effectiveness of our risk management system, we conduct internal audits that are carried out by
the Main Audit Department and also implement external audits performed by an affiliated certified accountant. In addition, to align the risk
management practices of our entire organization, we have established a Risk Management Section within the General Planning Department.
Also, we provide integrated management of “earnings, risks and capital” by applying this comprehensive risk management
to Risk Appetitive Framework. The frame of risk management will develop into the frame of business management.

4Corporate Data

As of March 31, 2020

Founded: November 1950
Capital stock: ¥13,017 million
Number of Employees: 642

Board of Directors

As of June 30, 2020

President
Hitoshi Nishizawa
Managing Directors Masayasu Kondo
Koichi Osawa
Sachio Miyazaki

Service NetworkDirectors Masanao Watanabe
Katsuo Tokutake
Kazuyuki Koide
Sayuri Uchikawa
Keizo Futatsugi

Standing Auditor Masumi TsukadaAuditors
Mika Godo
Hayato Todoroki
Seiichiro Furihata

As of March 31, 2020

Head Office

Address: 2-9-38, Nagisa, Matsumoto City,
Nagano 390-8708, Japan
Phone: +81-263-27-3311
URL:https://www.naganobank.co.jp/
Email: enagagin@naganobank.co.jp

Tokyo Branch

Address: 2-12-6, Uchikanda, Chiyoda-ku,
Tokyo 101-0047, Japan
Phone: +81-3-3258-6351

Securities & International
Department

NAGANOPREFECTURE:
52 Offices

Address: 2-9-38, Nagisa, Matsumoto City,
Nagano 390-8708, Japan
Phone: +81-263-27-3311
Fax: +81-263-28-6550
SWIFT: NAGAJPJZ

Number of Branches
Money Exchange Offices

Nagano: 52 Offices
Tokyo: 1 Office
11 Offices

TOKYO:
1 Office

THE NAGANO BANK, LTD.
Head Office
Address: 2-9-38, Nagisa, Matsumoto City, Nagano 390-8708, Japan
Phone: +81-263-27-3311

5