Note: This document has been translated from a part of the Japanese original for reference purposes only. In the event of any
discrepancy between this translated document and the Japanese original, the original shall prevail.

Securities Code: 8563
June 1, 2017
To our shareholders:
Takao Suzuki
Director and President
THE DAITO BANK, LTD.
19-1, Nakamachi, Koriyama City, Fukushima

NOTICE OF CONVOCATION OF THE 112TH ANNUAL GENERAL MEETING OF
SHAREHOLDERS
You are cordially invited to attend the 112th Annual General Meeting of Shareholders of THE DAITO BANK,
LTD. (the “Bank”). The meeting will be held for the purposes as described below.
If you are unable to attend the meeting, you can exercise your voting rights in writing by submitting the Voting
Rights Exercise Form. Please review the Reference Documents for the General Meeting of Shareholders (describedhereinafter) and exercise your voting rights by indicating your vote for or against the proposal on the enclosed
Voting Rights Exercise Form and return it so that it arrives by 5:00 p.m. Thursday, June 22, 2017 (JST).
1. Date and Time: Friday, June 23, 2017, at 10:00 a.m. (JST)
2. Place:
6F, Main Conference Room, Head Office of the Bank
19-1, Nakamachi, Koriyama City, Fukushima
3. Meeting Agenda:
Matters to be reported:
1. The Business Report and Non-consolidated Financial Statements for the Bank’s 112th Fiscal Year (fromApril 1, 2016 to March 31, 2017)
2. Consolidated Financial Statements for the Bank’s 112th Fiscal Year (from April 1, 2016 to March 31,2017) and results of audits of the Consolidated Financial Statements by the Accounting Auditor and theBoard of Corporate Auditors
Proposals to be resolved:
Proposal No. 1:
Appropriation of Surplus
Proposal No. 2:
Election of Nine (9) Directors
Proposal No. 3:
Election of One (1) Corporate Auditor
Proposal No. 4:
Consolidation of Shares-When attending the meeting, please submit the enclosed Voting Rights Exercise Form to the reception desk. Please also bring thisConvocation Notice to save resources when attending the meeting.
- Of the documents to be provided with this Convocation Notice, the following items are omitted as they are posted on the Bank’s
website (http://www.daitobank.co.jp/) in accordance with laws and regulations and Article 15 of the Articles of Incorporation ofthe Bank:
1) Non-consolidated Statement of Changes in Shareholders’ Equity
2) Notes to Non-consolidated Financial Statements
3) Consolidated Statement of Changes in Shareholders’ Equity
4) Notes to Consolidated Financial Statements- Any updates to the Reference Documents for the General Meeting of Shareholders, Business Report, Consolidated FinancialStatements, or Non-consolidated Financial Statements will be posted on the Bank’s website (http://www.daitobank.co.jp/).

- 1 -Reference Documents for the General Meeting of Shareholders
Proposals and References
Proposal No. 1:

Appropriation of Surplus

The Bank proposes the appropriation of surplus as follows.
1. Matters concerning year-end dividends
With regard to the year-end dividends for the 112th fiscal year, comprehensively taking into accountcontinuing to provide stable dividends and the business results of the Bank for the fiscal year under review, theBank proposes as follows.
In addition, internal reserves will continue to be used efficiently for effective investments, etc., in order toenhance the Bank’s operational foundations and strengthening the management structure.
(1) Dividend asset typeCash(2) Matters concerning the allotment of dividend property to shareholders and the total amount3 yen per share of common stock, for a total of 380,295,411 yen(3) Effective date of distribution of surplus
June 26, 2017
2. Other matters concerning the appropriation of surplus(1) Item and the amount of surplus to be increased
General reserve 800,000,000 yen(2) Item and amount of surplus to be decreased
Retained earnings brought forward 800,000,000 yen- 2 -Proposal No. 2:

Election of Nine (9) Directors

The terms of office of all eight (8) Directors will expire at the conclusion of this Annual General Meeting ofShareholders. In that regard, the Bank proposes the election of nine (9) Directors, increasing the number ofDirectors by one (1) to further enhance the management system and corporate governance.
The candidates are as follows:No.

12Name(Date of birth)

Past experience, positions, and roles at the Bank, and significant Number of sharesconcurrent positionsof the Bank held
Apr. 1976
Joined the Bank
Feb. 1996
General Manager of Uneme BranchMar. 1998
Deputy General Manager of Head OfficeBusiness Division
Takao Suzuki
Apr. 2001
General Manager of Nihonmatsu Branch(November 15, 1953)
Mar. 2003
Asahi Area Manager and General Manager of
91,000 shares
Reelection
Asahi BranchJune 2004
Managing Director
June 2008
Senior Managing Director
June 2010
Director and President
To the present<Reasons for nomination as a candidate for Director>
Mr. Suzuki possesses a wealth of business knowledge and experience through his services as Branch General Manager,
and since becoming Managing Director in 2004, he has amassed abundant management experience through holding
positions as Senior Managing Director. Therefore, the Bank believes that he is capable of conducting the Bank’sbusiness management in an accurate, fair, and efficient manner, and thus has nominated him as a candidate for Director.
Apr. 1974
Joined the Bank
Mar. 1999
General Manager of Ishikawa Branch
Apr. 2001
General Manager of Kawamata BranchMar. 2003
General Manager of Shirakawa Branch
June 2004
General Manager of Credit Management
Yasuhiro Oka
Division(November 30, 1955)
25,000 shares
July 2008
Executive Officer and General Manager ofReelection
Credit Division
June 2010
Director and General Manager of Credit
Division
June 2013
Managing Director
To the present<Reasons for nomination as a candidate for Director>
Mr. Oka possesses a wealth of business knowledge and experience through his services as Branch General Manager andGeneral Manager of Credit Management Division and Credit Division, and since becoming a Director in 2010, he has
amassed abundant management experiences. Therefore, the Bank believes that he is capable of conducting the Bank’sbusiness management in an accurate, fair, and efficient manner, and thus has nominated him as a candidate for Director.

- 3 -No.

34Name(Date of birth)

Past experience, positions, and roles at the Bank, and significant Number of sharesconcurrent positionsof the Bank heldApr. 1980
Joined The Long-Term Credit Bank of Japan,Limited(currently Shinsei Bank, Limited)
July 2008
General Manager of Fukuoka Branch of Shinsei
Bank, Limited
Nov. 2010
Seconded to the Bank from Shinsei Bank,Limited
Executive Officer and General Manager ofManagement Division
June 2012
Director and General Manager of Management
Division
Kenichi Miura
July 2012
Director and General Manager of Sales(January 26, 1958)
13,000 shares
Planning Division
Reelection
July 2014
Director and General Manager of Management
Division
July 2015
Director and General Manager of Systems
DivisionAug. 2015
Director, General Manager of Systems
Division, and General Manager of
Administration Division
June 2016
Managing Director, General Manager ofSystems Division, and General Manager of
Administration Division
To the present<Reasons for nomination as a candidate for Director>
Mr. Miura possesses a wealth of business knowledge and experience through his services as Branch General Managerat a major bank and serving as General Manager at the Bank’s Management Division, Sales Planning Division, Systems
Division and Administration Division, and since becoming Director in 2012, he has amassed abundant management
experiences. Therefore, the Bank believes that he is capable of conducting the Bank’s business management in anaccurate, fair, and efficient manner, and thus has nominated him as a candidate for Director.
Apr. 1986
Joined The Fuji Bank, Limited(currently Mizuho Bank, Ltd.)
Feb. 2009
Deputy General Manager of Operation
Planning Division of Mizuho Bank, Ltd.
Jan. 2011
General Manager of Fukuoka Branch andGeneral Manager of Fukuoka Branch Division
1 of Mizuho Bank, Ltd.
Ryo Haga
Aug. 2013
Seconded to the Bank from Mizuho Bank, Ltd.
(May 14, 1962)
5,000 shares
Executive Officer and General Manager ofReelection
Sales Planning Division of the Bank
June 2014
Director and General Manager of Sales
Planning Division
July 2015
Director, General Manager of Sales Planning
Division, and General Manager of Personal
Loan Division
To the present<Reasons for nomination as a candidate for Director>
Mr. Haga possesses a wealth of business knowledge and experience through his services as Branch General Manager ata major bank and serving as General Manager of the Bank’s Sales Planning Division and Personal Loan Division.
Therefore, the Bank believes that he is capable of conducting the Bank’s business management in an accurate, fair, andefficient manner, and thus has nominated him as a candidate for Director.

- 4 -No.

56Name(Date of birth)

Past experience, positions, and roles at the Bank, and significant Number of sharesconcurrent positionsof the Bank heldApr. 1984
Joined the BankJuly 2002
General Manager of Tsurumidan Branch
July 2005
Koriyama A Block Manager, General Managerof Houhaccho Branch, and General Manager ofKoharada Branch
July 2008
Iwaki Block Manager and General Manager ofTaira Branch
July 2010
Northern Block Manager and General Manager
Mitsuo Furukawaof Fukushima Branch(June 10, 1961)
June 2012
Executive Officer, Northern Block Manager,
17,000 shares
Reelection
and General Manager of Fukushima Branch
July 2013
Executive Officer, General Manager of Credit
Division, and General Manager of Credit
Management Division
July 2014
Executive Officer and General Manager ofHead Office Business Division
June 2016
Director and General Manager of Head OfficeBusiness Division
To the present<Reasons for nomination as a candidate for Director>
Mr. Furukawa possesses a wealth of business knowledge and experience through his services as Branch General
Manager, General Manager of Credit Division and Credit Management Division, and General Manager of Head OfficeBusiness Division. Therefore, the Bank believes that he is capable of conducting the Bank’s business management in an
accurate, fair, and efficient manner, and thus has nominated him as a candidate for Director.
Apr. 1984
Joined the BankMar. 2003
General Manager of Hiwada Branch
July 2005
General Manager of Tokyo Branch and General
Manager of Tokyo Office
July 2007Koriyama C Block Manager and General
Manager of Asaka Branch
July 2010
Iwaki Block Manager and General Manager ofTaira Branch
June 2013
Executive Officer, Iwaki Block Manager,Hiroshi Murakami
General Manager of Taira Branch and Kabeya(September 30, 1961)
33,000 shares
BranchReelection
July 2013
Executive Officer, Northern Block Manager,
General Manager of Fukushima Branch andFukushima Minami Branch
June 2016
Director, Northern Block Manager, General
Manager of Fukushima Branch and Fukushima
Minami Branch
Director and General Manager of Management
July 2016
DivisionTo the present<Reasons for nomination as a candidate for Director>
Mr. Murakami possesses a wealth of business knowledge and experience through his services as Branch General
Manager, General Manager of Tokyo Branch, and General Manager of Tokyo Office. Therefore, the Bank believes that
he is capable of conducting the Bank’s business management in an accurate, fair, and efficient manner, and thus has
nominated him as a candidate for Director.

- 5 -No.

789(Notes)

Name(Date of birth)

Past experience, positions, and roles at the Bank, and significant Number of sharesconcurrent positionsof the Bank heldApr. 1981
Joined the BankApr. 2001
Deputy Manager of Securities and InternationalDivision
Mar. 2003
Deputy Manager of General Planning Division
June 2004
Deputy Manager of Management Division
Hiroaki OsatoJuly 2005
Deputy General Manager of Management(December 26, 1957)
3,000 shares
Division
New election
July 2008
General Manager of Securities andInternational Division
June 2013
Executive Officer and General Manager ofSecurities and International Division
To the present<Reasons for nomination as a candidate for Director>
Mr. Osato possesses a wealth of business knowledge and experience through his services as Deputy General Managerof Management Division and General Manager of Securities and International Division. Therefore, the Bank believes
that he is capable of conducting the Bank’s business management in an accurate, fair, and efficient manner, and thus
has nominated him as a candidate for Director.
Apr. 1973
Joined Koriyama City Office
Apr. 2008
General Manager of Living EnvironmentDivision
Gaku Ohashi
July 2008
General Manager of Sewerage Division(January 22, 1950)
Apr. 2009
General Manager of General Affairs Division
Reelection
Apr. 2010
Director of Koriyama City Social Welfare
5,000 shares
Outside Director
CouncilIndependent Officer
June 2010
Full-time Vice Chairman
Mar. 2013
Resigned from Full-time Vice Chairman
June 2013
Outside Director of the BankTo the present<Reasons for nomination as a candidate for Outside Director>
Based on Mr. Ohashi’s knowledge, experience, etc., gained from his years in government service, the Bank has
nominated him based on the judgment that he is capable of aptly executing his duties as Outside Director, such asproviding accurate advice toward the Bank’s general management from his wide-ranging perspective.
Nov. 1987
Passed the bar examination
Apr. 1990
Registered as an attorney-at-law (TOKYOBAR ASSOCIATION)
Yoshihiro Kasama
Joined Shimizu Kiyoshi Law Office(August 10, 1952)
Apr. 1992
Resigned from Shimizu Kiyoshi Law Office
Reelection
Changed registration to Fukushima Bar
1,200 shares
Outside Director
Association and established Kasama Law
Independent OfficerOffice
June 2008
Corporate Auditor of the Bank
June 2015
Outside Director
To the present<Reasons for nomination as a candidate for Outside Director>
Mr. Kasama possesses a wealth of experience in the legal profession as well as a high level of acumen as a legal
specialist, and thus the Bank has nominated him based on the judgment that he is capable of aptly executing his duties
as Outside Director, such as providing accurate advice toward the Bank’s general management from his wide-ranging
perspective.
1. There is no special interest between each candidate for Director and the Bank.
2. Candidates for Director Gaku Ohashi and Yoshihiro Kasama are candidates for Outside Director. The Bank has
appointed Messrs. Gaku Ohashi and Yoshihiro Kasama as Independent Officers prescribed by Tokyo Stock Exchange
and submitted a notification of the appointment to the same Exchange.
3. Matters concerning the candidates for Outside Directors are as shown below.
(1) Regarding the number of years since the Outside Director candidates assumed the position of Outside Director
Mr. Gaku Ohashi currently serves as an Outside Director of the Bank. His term of office as Outside Director will befour years at the conclusion of this year’s Annual General Meeting of Shareholders. Mr. Yoshihiro Kasama
currently serves as an Outside Director of the Bank. His term of office as Outside Director will be two year at theconclusion of this year’s Annual General Meeting of Shareholders.
- 6 -(2) Limited liability agreements with Outside Directors
The Bank has stipulated in the Articles of Incorporation to allow for the conclusion of agreements with OutsideDirectors that limit their liability for damages to a certain range so that they can fully perform their expected roles.
If the election of Messrs. Gaku Ohashi and Yoshihiro Kasama is approved as proposed, the Bank plans to renew
agreements that limit their liability for damages set forth in Article 423, paragraph 1 of the Companies Act pursuant
to the provisions of Article 427, paragraph 1 of the said act. The liability limitation agreements define that if anOutside Director is held liable for damages due to negligence of duties, he/she will be responsible for such liability
to the extent of the minimum liability amount set forth in laws and regulations or 1 million yen, whichever isgreater.

- 7 -Proposal No. 3:

Election of One (1) Corporate Auditor

Corporate Auditor Takahiro Ono will resign at the conclusion of this Annual General Meeting of Shareholders.
Accordingly, the election of one (1) Corporate Auditor is proposed.
Furthermore, since the candidate for Corporate Auditor Tadashi Sakuma will be elected as Mr. Ono’s substitute,
his term of office will be until the expiration date of the retiring Corporate Auditor’s term of office, as provided forin the Bank’s Articles of Incorporation.
The Board of Corporate Auditors has previously given its approval to this proposal.
The candidate is as follows:
Name(Date of birth)

Past experience, positions at the Bank, and representation of other
Number of shares
corporationsof the Bank held
Apr. 1972
Joined the Bank
July 2007
Koriyama B Block Manager, Asahi Area Manager andGeneral Manager of Asahi Branch
July 2009
General Manager of Audit Division
Tadashi Sakuma
June 2010
Executive Officer and General Manager of Audit Division(October 11, 1953)
26,800 shares
July 2011
Executive Officer and General Manager of Personal Loan
New election
Division
June 2014
Director and President of The Daito Cerdit Service. Ltd.
June 2015
Director and President of Sawayaka Shoji Co., Ltd.
To the present<Reasons for nomination as a candidate for Corporate Auditor>
Mr. Sakuma possesses a wealth of business knowledge and experience through his services as the Bank’s Branch General Manager,
Executive Officer and General Manager of Audit Division and Executive Officer and General Manager of Personal Loan Division as
well as management experiences as Director and President of The Daito Credit Service. Ltd. and Sawayaka Shoji Co., Ltd.
Therefore, the Bank has nominated him based on the judgment that he is capable of aptly executing his duties as Corporate Auditor.
(Note) There is no special interest between the candidate for Corporate Auditor and the Bank.

- 8 -Proposal No. 4:
(1)

(2)

(3)
(4)

Consolidation of Shares

Reasons for the proposal
The Japanese stock exchanges are promoting the “Action Plan for Consolidating Trading Units,” which aims
to consolidate 100 shares of common stock of domestic companies listed on Japanese stock exchanges intoone (1) trading unit (number of shares per share unit), for the convenience of users of the stock markets, suchas investors. In accordance with this initiative and the provisions of the Companies Act, the Bank has decided
to alter its number of shares constituting one unit of shares from 1,000 to 100 based on the resolution of theBoard of Directors meeting on May 12, 2017.
In this regard, to maintain price level per trading unit of the Bank’s shares and the number of voting rights ofeach shareholder after the alteration of the number of shares constituting one unit of shares, the total numberof shares authorized to be issued will also be changed with this ratio, from the current 180,000,000 shares to18,000,000 shares, to coincide with the combination of ten (10) of the Bank’s shares into one (1) share.
Moreover, on the condition that approval is given for this proposal as originally proposed, theaforementioned alteration to the number of shares per share unit will become effective as of October 1, 2017.
Ratio of the consolidation
The Bank will consolidate ten (10) shares into one (1) share.
For all shareholders for whom fractional shares of less than one share of equity securities arise as a result of
the consolidation of shares, such shares shall be subject to a bulk sale in accordance with the provisions of theCompanies Act, and the Bank will issue the proceeds of this sale in a proportion that corresponds to thefraction of shares owned.
Date on which the consolidation of shares will come into effect (effective date)
October 1, 2017
Total number of shares authorized to be issued as of the effective date
18,000,000 shares
Through this consolidation of shares, and based on the stipulations of Article 182, paragraph 2 of theCompanies Act, the Bank shall be deemed to have changed the provisions of the Articles of Incorporation
regarding the total number of authorized shares to be issued as of the effective date.
[Reference]
On the condition that approval is given for this proposal as originally proposed, as of October 1, 2017, someof the Bank’s Articles of Incorporation will change as follows.
(Amendments are underlined)

Current Articles of Incorporation(Total Number of Shares Authorized to Be Issued)
Article 6.
The total number of shares authorized to be issued by the Bank
shall be 180,000,000 shares.

Proposed Change(Total Number of Shares Authorized to Be Issued)
Article 6.
The total number of shares authorized to be issued by the Bank
shall be 18,000,000 shares.

Article 7. (Omitted)

Article 7. (Unchanged)(Number of Shares per Share Unit)
Article 8.
The number of shares constituting one unit of shares of the
Bank shall be 1,000 shares.

(Number of Shares per Share Unit)
Article 8.
The number of shares constituting one unit of shares of theBank shall be 100 shares.

(Newly established)

Supplementary provision
Amendments of Article 6 (Total Number of Shares Authorized toBe Issued) and Article 8 (Number of Shares per Share Unit) will
come into effect on October 1, 2017, and this supplementaryprovision will be removed on the day following the effectivedate.

- 9 -