Proﬁle of NAGANO BANK

2023
Financial Statements
March 31, 2023

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, 2023, we operate 52 branches in Nagano Prefecture and 1 branch in Tokyo. At the same time,
total deposits stood at ¥1,080 billion (US$8,091 million) and total assets at ¥1,127 billion (US$8,446million).
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. After the restructuring of the Tokyo Stock
Exchange in April 2022, Nagano Bank was listed on the Standard Market.
Nagano Bank concluded a business consolidation with Hachijuni Bank on 1 June 2023. Both banks arecurrently negotiating and reviewing a fundamental plan of action to achieve a merger in the fiscal year 2025.
Furthermore, given the realized consolidation with Hachijuni Bank, Ltd., Nagano Bank ceased to be listed onthe Standard Market of the Tokyo Stock Exchange in May 2023.

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, 2023. We hope you will take the time to read this disclosure report and find it
useful.
Nagano Bank’s activities reflect the local business environment at the time the COVID-19 pandemic is
winding down. However, during the ongoing process of a steady recovery, there have been various other areas
demanding attention, such as the recent explosion in energy prices, the return of demand in conjunction withstaff shortages, and concerns about a global economic downturn. In addition, there are medium-term
challenges like a declining population together with a low birthrate and an aging society, as well as the drive
toward carbon neutrality. In the midst of this, Nagano Bank has focused its efforts on supporting clients’ corebusinesses and overcoming regional challenges. To respond to varied and complex needs, we believe it isnecessary to liaise with clients even more than before and find solutions together.
To be able to increasingly contribute to local development under these circumstances, Nagano Bank andHachijuni Bank, Ltd., a key institution in Nagano Prefecture, consolidated their businesses on 1 June 2023.
Both banks are currently negotiating and reviewing a fundamental plan of action to achieve a merger in thefiscal year 2025.
Both banks have made it their mission to engage in local development by building a robust businessfoundation while solidifying their positions as financial intermediaries to meet clients’ needs and transformbusiness structures to institute sustainable business models. After careful deliberations, we concluded that abusiness consolidation was in the best interest of supporting the development of both banks’ shareholders.
From now on, we will operate under the new slogan “From competition to joint development” to transform
into a bank that can grow with the region.

July 2023

Hitoshi Nishizawa, President1

Non-Consolidated Balance Sheets

As of March 31, 2023 and 2022

Thousands ofU.S.dollars

Millions of yen
2023

2022

2023

¥ 76,829¥ 193,924$ 575,373

Call loans－5,000－Securities

336,003395,282

2,516,314

Loans and bills discounted

695,082

647,880

5,205,441

Foreign exchanges

4,751

2,343

35,584

Other assets

7,728

9,284

57,874

Tangible fixed assets

8,430

8,503

63,137

Intangible fixed assets

572

616

4,287

Prepaid pension cost

740

694

5,548

Deferred tax assets

2,528

822

18,935

Customers' liabilities for acceptances and guarantees

1,409

1,55610,556

Allowance for loan losses(6,193)(6,213)(46,382)¥ 1,127,883¥1,259,696$ 8,446,670¥ 1,080,441¥1,073,849$ 8,091,376

Borrowed money

1,210

127,814

9,067

Foreign exchanges

00

2Other liabilities

5,525

9,085

41,379Provisions

1,034

973

7,747

Acceptances and guarantees

1,409

1,556

10,556¥ 1,089,622¥1,213,280$ 8,160,130

Capital stock¥ 13,017¥ 13,017$ 97,487

Capital surplus

9,681

9,681

72,501Retained earnings

24,577

23,973

184,056

Treasury stock(584)(585)(4,380)

Total shareholders' equity¥ 46,690¥46,086$ 349,664

Total valuation and translation adjustments¥ (8,430)¥328$ (63,132)

118¥ 38,261¥46,416$ 286,540¥ 1,127,883¥1,259,696$ 8,446,670

AssetsCash and due from banks

Total assets
Liabilities and net assets
Liabilities
Deposits

Total liabilities
Net assets

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

Notes:1. Japanese yen figures are expressed in millions. Broken-down numbers may therefore not add up to the indicated sum total.
2. The U.S. dollar amount corresponds to an exchange rate of JPY 133.53 to USD 1.00, the rate prevailing as of March 31,
2023 (last business day of the fiscal year).

2Non-Consolidated Statements of Income

For the years ended March 31, 2023 and 2022

Thousands of
U.S.dollars

millions of yen
2023

2022

2023

IncomeInterest on loans and discounts¥ 7,546¥ 7,570$ 56,516

3,370

3,522

25,241

Interest on call loans

4637

Other interest income

110191

824

Fees and commissions

2,437

1,665

18,254

Other operating income

1,3226289,903

Other income

1,055

914

7,901

Total income¥ 15,847¥ 14,498$ 118,680

¥ 114

¥ 119

$ 859

Interest on call money

0(0)

0

Other interest expenses

4245

316

Fees and commissions

1,508

1,504

11,293

Other operating expenses

2,164

770

16,211

General and administrative expenses

9,620

9,589

72,049

901

727

6,747

Total expenses¥ 14,351¥ 12,756$ 107,478

Income before income taxes

1,495

1,741

$ 11,202

Income taxes-current

498

484

3,732

Income taxes-deferred(59)26(447)¥ 1,057¥ 1,231$ 7,916

Interest and dividends on securities

Expenses
Interest on deposits

Other expenses

Net income

Notes:1. Japanese yen figures are expressed in millions. Broken-down numbers may therefore not add up to the indicated sum total.
2. The U.S. dollar amount corresponds to an exchange rate of JPY 133.53 to USD 1.00, the rate prevailing as of March 31,
2023 (last business day of the fiscal year).

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Loans based on the Financial Reconstruction
Act as well as the status of risk-monitored loans

As of March 31, 2023 and 2022

Thousands ofU.S. dollars

Millions of yen2023

2022

2023

Bankrupt and quasi-bankrupt loans 1¥ 3,311¥ 4,134$ 24,798

Doubtful loans 2

11,60910,362

86,941Substandard loans 3

1,962

1,820

14,699

－－－

1,962

1,820

14,699Subtotal

16,883

16,317

126,439

Performing loans

684,676

637,341

5,127,508¥ 701,559¥ 653,658$ 5,253,947

Loans delinquent for 3 months or more 4
Restructured loans 5

Total
Notes:

1. Bankrupt and quasi-bankrupt loans are loans where either bankruptcy proceedings or a reorganization or rehabilitation process hascommenced after the debtor has been declared bankrupt or quasi-bankrupt.
2.Doubtful loans are loans where debtors have not been declared bankrupt but their financial position or operating result hasdeteriorated and contractually due loan repayments or interest payments are unlikely to be made.
3.Substandard loans are loans delinquent for 3 months or more or loans that have been restructured.
4.Loans delinquent for 3 months or more are loans where loan repayments or interest payments were due, as contractuallyagreed, at least three months prior, but where the loan cannot be classified as "bankrupt and quasi -bankrupt" or "doubtful".
5.Restructured loans are loans where the debtor aspires to a management reorganization or seeks support in the form of a reduced
interest rate, deferred interest payments, deferred loan repayments, debt forgiveness, or other agreements beneficial to the debtor toensure that "bankrupt and quasi-bankrupt", "doubtful", or "delinquent" conditions do not apply.
6.Japanese yen figures are expressed in millions. Broken-down numbers may therefore not add up to the indicated sum total.
7.The U.S. dollar amount corresponds to an exchange rate of JPY 133.53 to USD 1.00, the rate prevailing as of March 31, 2023
( last business day of the fiscal year).

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Risk Management System
Evolving regulatory frameworks, internationalization and derivatives trading are only some of the elements of thechanging world of finance.
It is necessary to ensure more diversification and find ways to deal with increasingly complex settings forfinancial organizations to be able to find new business opportunities. For this reason, risk management in thefinancial sector is more important than ever.
To ensure that our financial situation remains sound and revenue growth develops as anticipated within thisenvironment, 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 operationalrisk. To adequately address these issues, Nagano Bank has drafted internal policies and regulations to clearly
define responsibilities within the organization in regards to risk management. Furthermore, to monitor theeffectiveness 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, toalign the risk management practices of our entire organization, we have established a Risk Management Section
within the Risk-Compliance 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 ofbusiness management.

Risk Management System Organization

Independent Auditors

Board of Directors

Attorneys

Board of Auditors

Executive Committee
OverallRisk
Management Dept.:
Risk-Compliance Dept.

Respective Risk Committees:
Credit Risk Committee (Credit Risk)
ALM Committee (Overall Market and Liquidity Risk)
Operational Risk Committee (Administrative and System Risk)
Corporate Officers Council / Compliance Committee
Deposit Guarantee Committee(Overall Other Operational Risk)

Internal Auditing Dept.:
Auditing Dept.

Management Dept.:

Credit Risk

Market Risk

Liquidity Risk

FinancingGeneralization
Dept.
InvestmentDept.

InvestmentDept.
Business
Unification
Dept.

Risk-Compliance
Dept.
InvestmentDept.

Administrative
Risk

System Risk

Other Operational Risk

Business
OperationsDept.
Respectivedept.

Business
OperationsDept.
Respectivedept.

Legal Risk:
Risk-ComplianceDept.
Human Risk:
Human Resources Dept.
TangibleAssetRisk: GeneralAffairsDept.
ReputationRisk: Risk-ComplianceDept.
OtherRisk:
Risk-ComplianceDept.

Head Office, Branches, Affiliated Companies

5Corporate Data

As of March 31, 2023

Founded: November 1950
Capital stock: ¥13,017 million
Number of Employees: 621

Board of Directors

As of June 30, 2023

PresidentHitoshi Nishizawa
Managing Directors Koichi Osawa
Sachio Miyazaki

Service Network

Directors Hiroyuki Agata
Kazuhisa Kaneki
Takahiko Asai
Sayuri Uchikawa
Akira Iguchi
Hiroyuki Nomoto

Standing Auditor Shinji Horikawa
Auditors
Mika Godo
Hayato Todoroki
Seiichiro Furihata

As of March 31, 2023

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

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