Annual
Repor t2015

Our Mission
Region-Based Operations and Sound Management
Maintaining a close relationship with the communities in the region
where we operate, we will contribute to the prosperity of the region andthe development of its economy, with a commitment tosound management that enjoys the trust of our customers,
while bolstering our business operations.

Management Vision

A highly trustworthy bank that fully satisfies customers

SloganBecoming the No.1 bank in customer and employee satisfaction

Medium-Term Management Plan

Basic policies in the “Best Bank Plan 2016” planIncrease Operating Income
Build Strong Management Structure■ Promote CSR■■

Profile (as of March 31, 2015)
Corporate Name:The Yamanashi Chuo Bank, Ltd.

Head Office:20-8, Marunouchi 1-chome,
Kofu, Yamanashi

Established:

December 1, 1941

President:
Nakaba Shindo

Common Stock:

Head office¥15,400 million

Number of Shares Issued:
174,915,000 shares

Stock Listing:First Section of the Tokyo Stock Exchange

Long-Term Credit Rating:

A+ (Rating and Investment Information, Inc.)

Network:

Domestic: 	 90 locations (Head Office and Branches: 88, District Offices: 2)
Corporate Sales Office: 1
Overseas: Hong Kong Representative OfficeBusinesses:

The Yamanashi Chuo Bank Group comprises the Yamanashi Chuo Bankand four consolidated subsidiaries. Centered on its core banking business, the Group provides an integrated financing service that includes
a leasing and credit-card business. The Bank is the leading local bank in
Yamanashi Prefecture, and its sphere of operations encompasses boththe prefecture and the western part of the Tokyo metropolitan region.
Forward-looking statements
Statements contained in this report regarding the Bank’s future performance
do not constitute statements of historical fact, and are thus subject to a numberof risks and uncertainties. Readers are therefore cautioned not to place undue
reliance on forward-looking statements, as factors beyond the Bank’s control
and outside its ability to predict, including general economic conditions
and market fluctuations, could cause results to diverge materially from theCompany’s projections.

Contents
1 Consolidated Financial Highlights
2 Message from the President
4 Best Bank Plan 2016 Medium-Term Management Plan
6 Region-Based Financial Services
8 Operational Review
10 Financial Review (on a consolidated basis)
11 Consolidated Balance Sheets
13 Consolidated Statements of Income
15 Consolidated Statements of Comprehensive Income
16 Consolidated Statements of Changes in Net Assets
19 Consolidated Statements of Cash Flows
21 Notes to Consolidated Financial Statements
47 Corporate Data
48 Board of Directors and Corporate Auditors
48 Organization
49 Internal Control and Risk Management

Consolidated Financial Highlights
The Yamanashi Chuo Bank, Ltd. and Consolidated Subsidiaries
Fiscal years ended March 31

Millions of yen

2011

2012

2013

2014

2015

Ordinary Income

54,51451,89250,47050,51850,335

Ordinary Profit

8,013

9,606

10,912

12,826

13,464Net Income

4,056

7,323

6,362

8,736

8,753

(5)

14,70823,393

8,617

40,346

Net Assets

159,424

172,343

193,620

199,258

237,440

Total Assets

2,731,372

2,890,741

3,028,916

3,041,323

3,155,903

Net Assets per Share (Yen)878.10959.53

1,093.22

1,136.72

1,367.58

Net Income per Share (Yen)

22.23

40.68

35.69

49.86

50.38

Capital Adequacy Ratio (Domestic Standard, %)

16.07

16.41

16.75

17.28

17.35

Return on Equity (%)

2.53

4.44

3.50

4.48

4.40

Price Earning Ratio (Times)

18.16

9.04

12.02

9.34

10.44

Cash Flows from Operating Activities

44,621207,059

72,87088,999(3,806)

Cash Flows from Investing Activities(61,293)(181,424)(70,360)(50,148)(61,232)

Cash Flows from Financing Activities(2,551)(1,821)(2,467)(1,625)(2,018)Cash and Cash Equivalents

65,03088,84488,889126,115

59,058Comprehensive Income

Notes(1) Amounts do not include consumption and local taxes payable by the Bank and its consolidated subsidiaries.
(2) Capital ratio is calculated on a consolidated basis in accordance with the Bulletin Notification No. 19 issued by the Financial Services Agency in 2006 underParagraph 2, Article 14 of the Banking Law. Because the amended capital adequacy rules have been applied to banks that focus on domestic operations
since the fiscal year ended March 31, 2014, from the fiscal year ended March 31, 2014, the Bank calculated the capital adequacy ratio based on the formulaset forth in the notification after the amendment.

Total assets

Net income

ROE/
Capital adequacy ratio(Domestic standard)(¥ billion)(¥ billion)

(%)

3,200

10.0

18.0

3,100

15.0

8.0

Capital adequacy
ratio

12.0

3,000
6.0

9.0

2,900
4.0

2.0

2,700

2,600

ROE

6.0

2,800

2011

2012

2013

2014

2015

0.0

3.0

2011

2012

2013

2014

THE YAMANASHI CHUO BANK 2015

1

2015

0.0

2011

2012

2013

2014

2015

Message from the President

I would like to take this opportunity to thank our shareholders and other stakeholders for theirsteadfast support for the Bank and its Group companies.
The Bank launched its medium-term management plan “Best Bank Plan 2016” with the
management vision of becoming a highly trustworthy bank that fully satisfies customers. All
management and employees are working on various strategies to achieve this vision under
the three principal policies of increasing operating income, building a strong management
structure, and promoting CSR.
The government has proclaimed regional creation as an important element of Japan’s
growth strategy, and at a Cabinet meeting held in December last year instituted the“Cities, People, and Job Creation Long-Term Vision” and “Cities, People, and Job Creation
Comprehensive Strategy.” In light of this, and in order for customers to smoothly carry out theirbusiness activities and also to stabilize the lives of customers, the Bank will further strengthen
its efforts to ensure regional creation brings about regional economic revitalization by offering
more sophisticated financial capabilities and by manifesting its consulting capabilities.
Below, we present an overview of our business performance for fiscal 2014 (April 2014 to

Nakaba Shindo, President

March 2015), together with a report on future management plans.

Overview of fiscal 2014 performance

Accommodating Foreign Tourists” for tourist-related businesses andprovided information on the consumption tax exemption system
for foreign tourists. In international operations, we formed a newalliance with the Vietcombank of Vietnam and Bank of East Asia
of Hong Kong, in addition to existing operation tie-ups with the
Bangkok Bank of Thailand, the Bank of Communications of China, Bank
Negara Indonesia of Indonesia, and Metropolitan Bank & Trust of thePhilippines, thus further enhancing our preparedness for overseas
expansion support. In Bangkok, Thailand, we held the “Yamanashi Food
Export Trade Fair in Bangkok” and helped companies to enter anddevelop marketing channels in the countries of Asia, which continue to
see high economic growth rates, by jointly sponsoring overseas study
missions, business meetings, and various seminars with Yamanashi
Prefecture and JETRO Yamanashi.
In the areas of business succession and inheritance measures,the Bank reinforced its support readiness through partnerships withoutside institutions and held individual consultations to accurately
meet the needs of customers.
With the aim of contributing to regional growth and industrial revitalization and of growing and developing together with customers, theBank worked on loan creation to increase customers’ business value
and assisted with the management improvement that accompanies
the provision of new funding.
Specifically, to improve the ability of Bank employees to identify
problems and create proposals and loan projects — the basis of loancreation — we systematically shared knowhow and skills by providing
various types of training throughout the Bank and developed ourhuman resources.
In order to provide highly effective management improvement
support, and respond to the diversifying and increasingly sophisticatedmanagement issues and needs of customers, we brought together ourhighly specialized human resource expertise and established a system
to provide optimal solutions.

In the year ended March 31, 2015, despite weak personal consumption
in the first half of the fiscal year stemming from the consumption tax
increase and the effects of the unseasonable summer weather, thegradual recovery of the Japanese economy continued due to strong
capital investment in the second half along with a rebound in exports
and production. Looking at the financial situation during this period,
the foreign exchange rate largely favored a weak yen due to greater
monetary easing by the Bank of Japan. The Nikkei Stock Average rosesignificantly, peaking at ¥20,000 at the end of the fiscal year.
Against this financial and economic backdrop, in the middle
year of “Best Bank Plan 2016,” the Bank’s three-year medium-term
management plan running from April 2013 through March 2016, we
proactively implemented the following measures with the aim of
becoming a highly trustworthy bank that fully satisfies customers, as
described in our management vision.
We helped our corporate and sole proprietorship customers
resolve their business issues by drawing on the resources of Yamanashi
Chugin Management Support Services, which links up local universities
and support organizations. Further, we actively supported customers
trying to expand their business by offering the Yamanashi Chugin“Growth Platform Reinforcement Fund” using the Growth Platform
Reinforcement Fund of the Bank of Japan. As measures to support
the development and expansion of sales channels, we conducted
the “Yamanashi Food Sector Business Matching Fair,” “Regional
Banking Food Selection,” and other events. We held our Agri-Business
School with the goal of supporting new agri-business and the sixth
industrialization for agriculture- and food-related business operators.
In addition, to assist businesses engaged in the sixth industrialization,
we established the “Yamanashi Sixth Industrialization Support Fund”
with the Agriculture, Forestry and Fisheries Fund Corporation for
Innovation, Value-Chain and Expansion. We held the “Seminar for

THE YAMANASHI CHUO BANK 20152

Message from the President

The Economy of Yamanashi Prefecture — Our Business Base (fiscal 2013)¥3,535 billion
Real Growth Rate:
1.4%
Shipment Value of Production in Prefecture: ¥1,985 billion

Shares in Yamanashi Pref. (%)

General Prefectural Production:(as of March 31, 2015)

Deposit
SharesMajor Products and Their Share in Japanese Market
Products

Shipment Value

Share

Ranking

Precious Metal Products

27.4

28.3

No. 1

Mineral Water

33.1

25.9

No. 1

Numerical Control Robots

129.8

69.2

No. 1

Quartz crystal units (excluding for clock and watch use)

12.8

8.8

(¥ billion)

(%)

1.7

12.9

7.3

Loan
Shares

50.2

28.0

9.2
40.8

33.5
9.2

7.2
Yamanashi Chuo Bank

Yamanashi Chuo Bank

Major banks

Major banks

No. 3

Shinkin banks/credit unions

Shinkin banks/credit unions

Agricultural cooperatives

Agricultural cooperatives

Other Semi-government institutions/otherFlat-Panel Display Manufacturing Equipment

23.8

7.1

No. 3

Medical Apparatus and Instruments

41.6

7.5

No. 4

We have responded to the wide-ranging and diversifying asset
management needs of individual customers by conducting the“Yamanashi Chugin NISA Account Opening Campaign” and the“Yamanashi Chugin Asset Management Start Campaign,” introducing
new investment trust and life insurance products, and proposing
a “household budget review” tailored to the customer’s life plan.
Meanwhile, to meet customers’ needs for financing, we continued toprovide the mortgage interest rate plan and also provided products
and services to meet customers’ life plans such as running a campaign
featuring special interest rates on auto and education loans.
As a result of the foregoing, in the fiscal year ended March 31, 2015,
operating income decreased ¥183 million year on year to ¥50,335
million. Ordinary profit increased ¥638 million to ¥13,464 million, andnet income rose ¥16 million to ¥8,753 million on a consolidated basis.
In the Bank’s main accounts (consolidated basis), the Bank
enhanced its deposit products and services to appropriately and swiftly
meet the diversifying asset management needs of customers. As aresult, the year-end balance of total deposits increased ¥65.5 billion
to ¥2,701.4 billion mainly due to an increase in deposits held by bothindividual and corporate customers.
Total deposits including negotiable certificates of deposit (NCDs)
increased ¥43.6 billion during the year to ¥2,805.2 billion.
The year-end balance of over-the-counter Japanese government
bonds and investment trusts declined ¥16.5 billion during the yearto ¥155.6 billion. Turning to loans, we proactively expanded lending
to second-tier companies and SMEs and also promoted loans to
individuals. At the same time, we proactively met the funding demandprimarily from local government bodies. As a result, the balance ofloans increased by ¥48.2 billion to ¥1,488.6 billion.

(excluding Japan Post Bank)

included the sharp increase in foreign tourists. The development andexpansion of the transportation infrastructure is moving forward withlarge scale national projects such as the opening of the Chubu Odan
Expressway to Shizuoka Prefecture (scheduled for completion in 2017)
and the Linear Chuo Shinkansen (scheduled to open in 2027). These
projects are expected to contribute significantly to the cultural andeconomic development of Yamanashi Prefecture.
Meanwhile, changes to the social structure are becoming apparent
as the population of Yamanashi Prefecture dropped below 840,000 in
November of last year, making the advent of a depopulating society
more likely.
Further, in the financial sector, with competition among financial
institutions expected to grow more severe due mainly to Japan Post
Bank’s aggressive expansion and the prominence of online banking,aiming to create a business model focused 5 to 10 years into the
future, the industry undertook new initiatives including the management integration of local financial institutions.
In light of these changes in the business environment, the Bank will
set its sights on achieving the management vision outlined in the “BestBank Plan 2016” medium-term management plan, now in its final fiscal
year. Under the three basic policies of increasing operating income,building a strong management structure, and promoting CSR, more
rapidly than ever before, we will develop a range of strategies.
Specifically, with respect to “increasing operating income,” wewill strengthen our marketing capabilities by reinforcing our businessstructure, and promoting strategies for individual and corporate
customers, as well as regional and branch strategies. In addition,
we will ensure stable profits by strengthening our market operation
capabilities.
The Group and all management and employees will work together
to contribute to community prosperity and economic development.

Future management policies
In Yamanashi Prefecture, boosted by the listing of Mount Fuji as a
World Heritage Site and the weak yen, there was good news thatPresident

Nakaba Shindo

THE YAMANASHI CHUO BANK 20153

Best Bank Plan 2016
Medium-Term Management Plan
Overview
In April 2013, the Bank launched its “Best Bank Plan 2016” medium-

In tandem with this strategy, we are working toward the goal ofterm management plan for the period April 2013 to March 2016.

becoming No.1 in customer satisfaction, which necessarily means

We have drawn up a management vision, to be realizedalso being No. 1 in employee satisfaction. We aim to create athrough achievement of three principal goals: increasing operating

virtuous circle, with improved customer and employee satisfaction

income, building a strong management structure, and promoting

generating stronger earnings, in turn triggering further improve-

CSR. A range of policies are being rolled out to achieve thesement in customer and employee satisfaction. This will be the key togoals. Our aim is to be a highly trustworthy bank that fully satisfies

achieving sustainable growth.

customers.
(Plan duration: April 2013 to March 2016)

Our Mission: Region-Based Operations and Sound Management

Management Vision

SloganA highly trustworthy bank thatfully satisfies customers

Becoming No.1 bank in customer
and employee satisfaction

Improvecustomersatisfaction

Increase operating income
Strengthen marketing capabilities
Strengthen marketing
Corporate customer marketing strategies

Individual marketing strategies
Area and branch strategies

Improve
employeesatisfaction

Increase capabilities in fund operations

Build strong management structure

Promote CSR
Measures to stimulate the local economy
Initiatives for contributing to the local community
Initiatives for environmental protection

Greater work efficiency and cost optimization
Strengthen the internal controls system
Train human resources andfoster dynamic organizational environment

Initiatives for promoting community-based financing

Compliance / Protection of customer information

Medium-Term Plan Target (FY2015)
Gross banking profit

Net business profit

Capital adequacy ratio(domestic standard)

OHR

THE YAMANASHI CHUO BANK 2015

4

Average loan balance

Average deposit
balanceBest Bank Plan 2016
Medium-Term Management Plan

CSR within the medium-term management plan
At the Yamanashi Chuo Bank, we have been working to fulfill our corporate social responsibilities, as we recognize that
this, along with sustained value creation and improved competitiveness, is essential in forging even stronger ties withall our stakeholders, including our customers and shareholders, other market investors, our employees, and the regional
community. We work to enhance corporate governance and to further reinforce our compliance stance. In addition tocontributing to regional economy revitalization through our core businesses, we will take further measures to contributeto society and protect the environment to meet our obligations as a corporate citizen.

Contribute to the Regional Community – Strengthening CSR Initiatives
Detailed businesstalk scheduling

Find out from externalbuyers the best ways ofdisplaying food products

Hosted a follow-up
meeting

Matching fair

Results of “Yamanashi Food Matching Fair 2014 in Tokyo” (As of December 31, 2014)• Number of business meetings held: 2,250•M atches made at business meetings (contracts concluded): 70•P otential contracts/Business meetings continued: 141• Loan procurement, etc.: 37
Held “Yamanashi Food Matching Fair”

Regional Economic Revitalization Initiatives■

Industry revitalization through regional cooperation■

Participate in regional development■

Publication of “Business
Chances Directly from the
University of Yamanashi”

S upport for regional economic revitalization linked togovernment policies

Publication of “Management
Navigation” from Yamanashi
Gakuin University

Contributing to the Regional
CommunityE ducational support
Promotion of culture, arts, sports, etc.
■
Social contribution activities, in welfare etc.
■■

Sustainable
Developmentof the Regional
Community

Environmental Initiatives■■■

Acquired the namingrights to the Kose Sports
Park athletic fieldE nvironmental business initiatives
through Bank’s main line of businessInitiatives to reduce Bank’s environmental impact
 ngoing, proactive environmental
O
conservation initiatives based oncooperation with local communities

Promotion of sports inYamanashi Prefecture
through volleyball

Solar power unit

Holding financial courses
at universities

Raise Corporate Valueand Competitiveness

THE YAMANASHI CHUO BANK 2015

5

Environment-friendly
products

Region-Based Financial Services
Basic Policy
The provision of region-based financial services (relationship banking) is a long-term issue for the Bank,and our “Best Bank Plan 2016” Medium-Term Management Plan (April 2013 – March 2016) embodies
this principle and approach. Accordingly, we are promoting relationship banking by resolutely implementing various supporting measures in the medium-term plan.
Looking ahead, we will continue to take measures to develop the regional economy and community,
improve our services for customers in the region, and promote relationship banking.

1

Demonstrate consulting capabilities to corporate customers

2

Constructively participate in entire region’s revitalization

3

Actively disseminate information to communities and customers

Our Mission: Region-Based Operations and Sound Management
Best Bank Plan 2016 medium-term management plan
Promotion of relationship banking

1Demonstrate consulting capabilities to corporate customers• Provide prompt, fitting solutions for companies at different growth stages*• Upgrade our solutions services through alliances with external organizations

and regional public bodies• Use specialist financial tools to support the growth of regional enterprises

and the fostering and deployment of personnel with intellectual skills*The growth stages of a company: foundation, growth and other development stages,
and degree of enterprise sustainability

23Constructively participate in entire region’s revitalization• Involvement in and partnerships for measures for regional regeneration

through public bodies, etc.

• Measures for community contributions such as support for education,and promotion of culture, the arts and sports

Actively disseminate information to communities and customers• Easy-to-understand information made available through various media

including our website and annual report

THE YAMANASHI CHUO BANK 2015

6

Aiming to provide
satisfaction andearn unshakabletrustRegion-Based Financial Services

Corporate growth assistance through collaboration with business advisors (April 2001 to March 2015)
Number of investment target and borrower enterprises, investment amount
Number of business matching deals

Yamanashi Chugin Management Support Coordination Services,and corporate customer support through business matching services (April 2005 to March 2015)
Number of companies that havereceived support (problem-solving)from Yamanashi Chugin Management
Support Services
Number of business matching deals
successfully concluded via the Bank’s
network or Bank-sponsored businessmeetings

Achievements in support for management improvement (April 2012 to March 2014)

THE YAMANASHI CHUO BANK 2015

7

Operational Review

Corporate Banking

Support for companies through our solutions businesses
In collaboration with outside support organizations, the Grouphas created a support system for establishing businesses, starting up new businesses, and growing and revitalizing business,and is working to provide high-quality financial services.
In fiscal 2014, we continued our previous fiscal year’s efforts
to facilitate smooth financing to local companies, provide
consulting services to corporate customers, and strengthen
our solutions businesses. In response to the “SME Finance
Facilitation Act,” we meticulously consulted with customers
about financing based on the “Basic Policy for Financial
Facilitation” established by the Bank. At the same time, we
strengthened our support system, formulated management
improvement plans, and provided strong support for the
implementation of those plans.
Specifically, we helped customers resolve their businessissues by drawing on the resources of Yamanashi Chugin
Management Support Services, which links up local universities
and support organizations. We actively supported customers
trying to expand their business by offering the Yamanashi
Chugin “Growth Platform Reinforcement Fund” using the
Growth Platform Reinforcement Fund of the Bank of Japan. To
support the development and expansion of sales channels,
we actively carried out business matching services such as
the “Yamanashi Food Sector Business Matching Fair” and the“Regional Banking Food Selection.”
We held our Agri-Business School with the goal of supporting new agri-business and the sixth industrialization for
agriculture- and food-related business operators. In addition,
to assist businesses engaged in the sixth industrialization, weestablished the “Yamanashi Sixth Industrialization Support
Fund” with the Agriculture, Forestry and Fisheries Fund
Corporation for Innovation, Value-Chain and Expansion.
We held the “Seminar for Accommodating Foreign Tourists” fortourism-related business operators and provided information on
the consumption tax exemption system for overseas tourists.
In international operations, we formed a new alliancewith the Vietcombank of Vietnam and Bank of East Asia of

Hong Kong, in addition to existing operation tie-ups with the
Bangkok Bank of Thailand, the Bank of Communications ofChina, Bank of Negara Indonesia of Indonesia, and Metropolitan
Bank & Trust of Philippines, thus further enhancing our
preparedness for overseas expansion support. In Bangkok
Thailand, we held the “Yamanashi Food Export Trade Fair in
Bangkok” and supported setting up units and expanding
marketing channels in the countries of Asia, which continue to
see high economic growth rates, by jointly sponsoring overseas
study missions, business meetings, and various seminars with
Yamanashi Prefecture and JETRO Yamanashi.
In the areas of business succession and inheritance services,
the Bank reinforced its support readiness through partnerships
with outside institutions and held individual consultations toaccurately meet the needs of customers.
With the aim of contributing to regional growth and industrial revitalization and growing and developing together withcustomers, the Bank worked on loan creation to increase thecustomers’ business value and assisted with the management
improvement that accompanies the provision of new funding.
Specifically, to improve the ability of Bank employees to
identify problems and create proposals and loan projects— the basis of loan creation — we systematically sharedknowhow and skills by providing various types of training
throughout the Bank and developed our human resources.
In order to provide highly effective management improvement support, and respond to the diversifying and increasingly
sophisticated management issues and needs of customers,
we brought together our highly specialized human resource
expertise and established a system to provide optimal solutions.
The total of loans outstanding to SMEs as of March 31, 2015
was up by ¥2.0 billion year on year to ¥473.3 billion, accounting
for 31.6% of all loans outstanding.
Looking ahead, the Bank will work hard to provide
comprehensive financial services and strengthen its consulting
capabilities to better respond to the needs of our corporate
customers who form the bedrock of the regional economy.

Agri-Business School

Yamanashi Food Business Liaison Conference

THE YAMANASHI CHUO BANK 20158

Operational Review

Consumer Banking
Meeting customers’ diverse needs

We have responded to a wide range of diversifying asset management needs by conducting the “Yamanashi Chugin NISA
Account Opening Campaign,” the “Yamanashi Chugin AssetManagement Start Campaign,” introducing new investment
trust and life insurance products, and proposing a “household
budget review” tailored to the customer’s life plan. Meanwhile,
to meet customers’ needs for financing, we continued toprovide the mortgage interest rate plan and also provided
products and services to meet customers’ life plans such as
running a campaign featuring special interest rates on auto andeducation loans .
The balance of loans to individuals as of March 31, 2015,
decreased by ¥2.0 billion from the previous year-end to ¥375.8
billion, accounting for 25.1% of all loans. The balance of housing loans outstanding at the year-end stood at ¥367.9 billion,
unchanged from March 31, 2014.

Various asset management seminars held

Western Tokyo Bloc

Seeking greater potential beyond Yamanashi Prefecture
Bordering Yamanashi Prefecture to the east, the western partof Tokyo in which we operate, is a large market that is home
to around 5.49 million people, and 170,000 business sites. We
call it the Western Tokyo Bloc and it has tremendous growthpotential. As of March 31, 2015, we had 14 branches and one
corporate sales office within this Bloc. Most have been in
operation for 30 to 40 years and are well-established as a local
financial institution in their local communities. In August 2015,
we made the Kumegawa Corporate Sales Office into a branchas the Higashimurayama Branch with the aim of improving
customer convenience and expanding our customer base in
the Western Tokyo Bloc.
This region has achieved greater profitability and efficiency
exceeding that within Yamanashi Prefecture and we view thisas one of the pillars for “increasing operating income” in the
new medium-term management plan. In this plan, we will
expand the marketing base multi-dimensionally through theactive investment of human resources and the aggressive
expansion of new business bases with the aim of even greater
profitability and efficiency.
In the fiscal year ended March 31, 2015, personal loans
increased by ¥0.8 billion year on year to ¥79.2 billion, whilebusiness loans increased by ¥0.9 billion to ¥89.0 billion. The
total of corporate borrowers now on our books increased by

103 to 1,768 (in terms of transactions). Loan RAROA (earnings
after deduction of credit cost/loans), a prime indicator of profitability, was better than in Yamanashi Prefecture, reflecting highprofitability of our operations in the western Tokyo area.

Loans and corporate borrowers
in Western Tokyo Bloc
Personal loans

Business loans

Corporate borrowers(¥ billion)

1,768

90

60

1,659

1,665

2012

2013

1,590
30

0

(FY)

2011

* Local public bodies are excluded in corporate borrowers

THE YAMANASHI CHUO BANK 2015

9

2014

Financial Review(on a consolidated basis)

Operating Environment

consolidated basis increased ¥65.5 billion to ¥2,701.4 billion mainly due to anincrease in deposits held by both individual and corporate customers.
Total deposits including negotiable certificates of deposit (NCDs)
increased ¥43.6 billion during the year to ¥2,805.2 billion. The year-end balance of over-the-counter Japanese government bonds and investment trusts
declined ¥16.5 billion during the year to ¥155.6 billion.
Turning to loans, we proactively expanded lending to second-tiercompanies and SMEs and promoted loans to individuals. At the same time,
we proactively met funding demand primarily from local government bodies.
As a result, the balance of loans increased by ¥48.2 billion to ¥1,488.6 billion.
In investment securities, we took measures to ensure smooth management, while keeping a close eye on the investment environment and market
trends. We also underwrote public debt such as municipal, governmentguaranteed and other public bonds. As a result, the balance of investment
securities increased ¥100.0 billion to ¥1,515.3 billion.
The consolidated capital adequacy ratio (domestic standard) increased
0.07 percentage points to 17.35%.

In the year ended March 31, 2015, despite weak personal consumption in
the first half of the fiscal year stemming from the consumption tax increase
and the effects of unseasonable summer weather, the gradual recovery of
the Japanese economy continued due to strong capital investments in thesecond half along with a rebound in exports and production. Looking at
the financial situation during this period, the foreign exchange rate largely
favored a weak yen due to greater monetary easing by the Bank of Japan.
The Nikkei Stock Average rose significantly, peaking at ¥20,000 at the end of
the fiscal year.
The economy of Yamanashi Prefecture, despite somewhat lackluster
personal consumption, continued to show signs of recovery overall withstrong production and a rebound in capital investment. In tourism, boosted
by the listing of Mount Fuji as a World Heritage Site and the weak yen, theentire prefecture was bustling due to a sharp increase in foreign tourists andother factors.

Overview of Earnings
The Bank continued to strengthen its earning capacity and streamline overall
operations. Although interest on loans and bills discounted declined due
to lower interest rates on loans and bills discounted, gross business profit
increased on higher interest and dividends on securities under favorable
market conditions and an increase in fees and commissions resulting fromhigher sales of investment trusts and insurance.
As a result, consolidated ordinary income decreased ¥183 million fromthe previous year to ¥50,335 million. Consolidated ordinary profit increased¥638 million to ¥13,464 million, and consolidated net income rose ¥16
million to ¥8,753 million.

Cash FlowsNet cash used in operating activities amounted to ¥3.8 billion (comparedwith inflows of ¥88.9 billion in the previous year), with deposits increasing¥43.6 billion and loans and bills discounted increasing ¥48.2 billion.
Net cash used in investing activities totaled ¥61.2 billion (comparedwith a net outflow of ¥50.1 billion in the previous year), with acquisition of
investment securities totaling ¥280.1 billion and sales and redemption of
investment securities totaling ¥222.6 billion.
Net cash used in financing activities came to ¥2.0 billion (compared witha net outflow of ¥1.6 billion in the previous year), with expenses on acquisition of treasury stock totaling ¥0.8 billion and dividend payments of ¥1.1
billion.
As a result, cash and cash equivalents at the end of the fiscal year came to¥59.0 billion (down ¥67.0 million from the previous year).

Overview of Principal Accounts
In the Bank’s main accounts, the Bank enhanced its deposit products andservices to appropriately and swiftly meet the diversifying asset management
needs of customers. As a result, the year-end balance of total deposits on a

ROA

OHR

Capital adequacy ratio(Domestic standard)

(%)

(%)

0.8

20.0

80.0

0.6

15.0

75.0

0.4

10.0

70.0

0.2

5.0

65.0

0.0

March 31

2011

2012

2013

2014

2015

0.0

March 31

(%)

2011

2012

2013

2014

2015

60.0

March 31

ROA = Core net business profit/(Average Balance of Total Assets - Average Balance of Customers’ Liabilities for Acceptances & Guarantees)
Capital Ratio = On a consolidated basis, domestic standard OHR = Operating expenses/Core Gross Business Profit
Note: A ll except for the capital ratio are on a non-consolidated basis.
THE YAMANASHI CHUO BANK 2015

10

2011

2012

2013

2014

2015

【Consolidated Financial Statements】①【Consolidated Balance Sheets】
Millions of Yen
End of FY2014(March 31, 2015)

Thousands of U.S. Dollars

End of FY2013(March 31, 2014)

End of FY2014(March 31, 2015)

Assets:Cash and due from banks¥ 69,226¥136,295$576,075

Call loans and bills bought

34,287

4,766

285,325

Monetary claims bought

11,716

10,90297,503－43－

1,515,314

1,415,253

12,609,759

1,488,648

1,440,401

※6

1,067

1,442

8,882

※8, ※912,99813,325

108,168

25,546

24,663

212,584

Buildings

8,851

7,942

73,661

Land

13,521

13,235112,516

Construction in progress

622

1,103

5,184

Other tangible fixed assets

2,550

2,381

21,222

4,091

5,043

34,046

Software

2,748

3,637

22,874

Software in progress

1,009

1,015

8,405

332

390

2,767

2,585

1,123

21,517

395

353

3,288

4,968

5,386

41,343(14,944)(17,677)(124,359)¥3,155,903¥3,041,323$26,261,990

Trading securities
Securities※1, ※8, ※13

Loans and bills discounted※2, ※3, ※4, ※5, ※6, ※7, ※10
Foreign exchanges
Other assets

Tangible fixed assets※11, ※12

Intangible fixed assets

Other intangible fixed assets
Net defined benefit asset
Deferred tax assets
Customers’ liabilities for acceptances and guarantees
Allowance for possible loan losses
Total assets

11

THE YAMANASHI CHUO BANK 2015

11

12,387,858

Millions of Yen
End of FY2014(March 31, 2015)

Thousands of U.S. Dollars
End of FY2014(March 31, 2015)

End of FY2013(March 31, 2014)

Liabilities:※8¥2,701,437¥2,635,875$22,480,135

Negotiable certificates of deposit

103,832

125,777

864,044

5,287

6,483

44,00026,095

7,537

188,985

22,71021,637217,155

183

113

1,528

26,331

24,767219,122

Accrued bonuses to directors and corporate auditors

44

45

373

Net defined benefit liability

971

976

8,081

7

6

64

Reserve for reimbursement of deposits

237

190

1,974

Reserve for contingent losses

107

236

898

Deferred tax liabilities

26,247

13,029218,416

Acceptances and guarantees

4,968

5,386

41,343

2,918,462

2,842,064

24,286,119

Common stock

15,40015,400128,152

Capital surplus

8,287

8,287

68,964Retained earnings

145,268

140,009

1,208,862

Treasury stock(1,126)(2,423)(9,373)

Total shareholders’ equity

167,829

161,272

1,396,604

Unrealized gains on available-for-sale securities

68,04237,450566,219(259)(1,071)(2,161)

67,78236,379564,057

124

90

1,038

Minority interests

1,703

1,515

14,172

Total net assets

237,440

199,258

1,975,871¥3,155,903¥3,041,323$26,261,990

Deposits

Call money and bills soldPayables under securities lending transactions
Borrowed money※8※8, ※9Foreign exchanges
Other liabilities

Reserve for directors’ and corporate auditors’
retirement benefits

Total liabilities

Net assets:

Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Subscription rights to shares

Total liabilities and net assets

12
THE YAMANASHI CHUO BANK 201512

②【Consolidated Statements of Income and Consolidated Statements of Comprehensive Income】【Consolidated Statements of Income】
Millions of Yen

Thousands of U.S. Dollars

Consolidated FY2014(From April 1, 2014
to March 31, 2015)

Consolidated FY2013(From April 1, 2013
to March 31, 2014)

Consolidated FY2014(From April 1, 2014
to March 31, 2015)

Ordinary income:¥50,335¥50,518$418,870

Interest and dividends income

35,00034,476291,259

Interest on loans and bills discounted

19,29020,563

160,528

Interest and dividends on securities

15,45013,749128,573

Interest on call loans and bills bought

46

27

391

Interest on due from banks

91

52

762

Other

120

83

1,005

Fees and commissions

7,716

7,347

64,217

Other operating income

4,190

5,619

34,871Other ordinary income

3,427

3,075

28,523

Reversal of allowance for possible loan losses

1,686

1,533

14,035

Other

1,741

1,541

14,488

Ordinary expenses

36,871

37,692306,824

Interest expenses

1,690

1,704

14,069Deposits

1,506

1,517

12,534

Negotiable certificates deposits

95

104

796

Call money and bills sold

19

15

162

Borrowed money

36

60

304

Other

32

5

272

Fees and commissions

1,931

1,875

16,073

Other operating expenses

3,606

4,579

30,012

29,217

29,204

243,136

424

328

3,534

13,464

12,826

112,046※1

General and administrative expenses※2

Other expenses
Ordinary profit

13

THE YAMANASHI CHUO BANK 2015

13

Millions of Yen

Thousands of U.S. Dollars

Consolidated FY2014(From April 1, 2014
to March 31, 2015)

Consolidated FY2013(From April 1, 2013
to March 31, 2014)

Consolidated FY2014(From April 1, 2014
to March 31, 2015)

─

120

─

Gain on disposal of fixed assets

─

118

─

Other extraordinary income

─

2

─

417

458

3,475

353

318

2,943

63

139

532

Income before income taxes and minority interests

13,047

12,488

108,571

Income taxes – current

3,001

2,715

24,977

Income taxes – deferred

1,105

824

9,201

Total income taxes

4,107

3,540

34,178

Income before minority interests

8,939

8,948

74,393

Minority interests in net income

186

212

1,549

¥8,753¥8,736$72,844

Extraordinary income:Extraordinary losses
Impairment losses※3

Losses on disposal of fixed assets

Net income

14
THE YAMANASHI CHUO BANK 201514

【Consolidated Statements of Comprehensive Income】
Millions of Yen
Consolidated FY2013(From April 1, 2013
to March 31, 2014)

Consolidated FY2014(From April 1, 2014
to March 31, 2015)¥8,939¥8,94874,39331,406(331)

261,351

30,594(331)

254,597

811

－

6,755

40,346

8,617

335,744

40,157

8,398

334,169

189

218

1,576

Income before minority interests
Other comprehensive income

Thousands of U.S. Dollars

Consolidated FY2014(From April 1, 2014
to March 31, 2015)※1

Net unrealized gains on available-for-sale securities
Remeasurements of defined benefit plans
Total comprehensive income
Total comprehensive income attributable toshareholders of the parent
Total comprehensive income attributable to minority
interests

15
THE YAMANASHI CHUO BANK 201515

③【Consolidated Statements of Changes in Net Assets】
Millions of Yen
Shareholders' equity
Consolidated FY2014 (From April 1,2014 to March 31, 2015)
Common stock Capital surplus
Balance at beginning of current year
¥15,400¥8,287
Cumulative effect of changes inaccounting policies
Balance at beginning of year
15,4008,287
reflecting changes in accounting
policies
Changes during year:
Cash dividends
Net income
Purchases of treasury stock
Cancellation of treasury stock(2,140)
Disposals of treasury stock(0)
Transfer from retained earnings tocapital surplus

Retainedearnings
Treasury stock¥140,009¥(2,423)(179)
139,829(1,173)
8,753

Total
shareholders’equity¥161,272(179)(2,423)

(844)
2,140
1

161,092(1,173)
8,753
(844)
1

2,140

(2,140)

─

─

5,439

1,297

6,737

¥15,400¥8,287¥145,268¥(1,126)¥167,829

Net changes in items other thanshareholders' equity
Total changes during year
Balance at end of current year

Millions of Yen
Accumulated other comprehensive income

Consolidated FY2014 (From April 1,2014 to March 31, 2015)
Balance at beginning of current year
Cumulative effect of changes inaccounting policies
Balance at beginning of year
reflecting changes in accounting
policies

Total
Unrealized
accumulated
gains onRemeasurements
otheravailable-for- of defined benefit comprehensive Subscription
rights to shares Minority interests
sale securities
plans
income¥ 37,450¥(1,071)¥36,379¥90¥1,515

Total net
assets¥199,258(179)

37,450(1,071)36,37990

1,515

199,078

Changes during year:
Cash dividends(1,173)

Net income

8,753

Purchases of treasury stock(844)

Cancellation of treasury stock
Disposals of treasury stock

1

Transfer from retained earnings tocapital surplus
Net changes in items other thanshareholders' equity

30,591811

31,40334

187

31,625

Total changes during year

30,591811

31,40334

187

38,362

Balance at end of current year

¥68,042¥(259)¥67,782¥124¥1,703¥237,440

16

THE YAMANASHI CHUO BANK 201516

Millions of Yen
Shareholders' equity
Consolidated FY2013 (From April 1,2013 to March 31, 2014)
Common stock Capital surplus
Balance at beginning of current year
¥15,400¥8,287
Cumulative effect of changes inaccounting policies
Balance at beginning of year
15,4008,287
reflecting changes in accounting
policies
Changes during year:

Retainedearnings
Treasury stock¥132,330¥(1,566)

132,330(1,566)

Total
shareholders’equity¥154,451

154,451

Cash dividends(1,053)(1,053)

Net income

8,736

8,736

Purchases of treasury stock

(882)

(882)

24

20

(857)
¥(2,423)

6,821¥161,272

Cancellation of treasury stock
Disposals of treasury stock(4)

Transfer from retained earnings tocapital surplus

4

(4)

－
¥8,287

7,678¥140,009

Net changes in items other thanshareholders' equity
Total changes during year
Balance at end of current year－
¥15,400

Millions of Yen
Accumulated other comprehensive income

Consolidated FY2013 (From April 1,2013 to March 31, 2014)
Balance at beginning of current year
Cumulative effect of changes inaccounting policies
Balance at beginning of year
reflecting changes in accounting
policies
Changes during year:

Total
Unrealized
accumulated
gains onRemeasurements
otheravailable-for- of defined benefit comprehensive Subscription
rights to shares Minority interests
sale securities
plans
income¥ 37,789¥－¥37,789¥71¥1,30837,789－37,78971

1,308

Total net
assets¥193,620

193,620

Cash dividends(1,053)

Net income

8,736

Purchases of treasury stock(882)

Cancellation of treasury stock
Disposals of treasury stock

20

Transfer from retained earnings tocapital surplus
Net changes in items other thanshareholders' equity
Total changes during year
Balance at end of current year(338)

(1,071)(1,409)19

206(1,183)(338)¥37,450(1,071)¥(1,071)(1,409)¥36,379

19
¥90

206
¥1,515

5,637¥199,258

17

THE YAMANASHI CHUO BANK 201517

Thousands of U.S. Dollars
Shareholders' equity
Consolidated FY2014 (From April 1,2014 to March 31, 2015)
Common stock
Balance at beginning of current year
Cumulative effect of changes inaccounting policies
Balance at beginning of year
reflecting changes in accounting
policies$ 128,152

Capital surplus$68,964Retainedearnings

Treasury stock$1,165,093$ (20,171)(1,498)128,152

68,964

1,163,595

Total
shareholders’equity$1,342,038(1,498)(20,171)

1,340,540

Changes during year:
Cash dividends(9,767)(9,767)

Net income

72,844

72,844Purchases of treasury stock(7,029)(7,029)16

15

10,797$ (9,373)

56,063$1,396,604

Cancellation of treasury stock
Disposals of treasury stock(1)

Transfer from retained earnings tocapital surplus

17,811(17,811)－$68,964

45,266$1,208,862

Net changes in items other thanshareholders' equity
Total changes during year
Balance at end of current year－
$128,152

Thousands of U.S. Dollars
Accumulated other comprehensive income

Consolidated FY2014 (From April 1,2014 to March 31, 2015)
Balance at beginning of current year
Cumulative effect of changes inaccounting policies
Balance at beginning of year
reflecting changes in accounting
policies

Total
Unrealized
accumulated
gains onRemeasurements
otheravailable-for- of defined benefit comprehensive Subscription
rights to shares Minority interests
sale securities
plans
incomeTotal net
assets$ 311,648$－$302,733$754$12,610$1,658,135

－

－

－

－

－

(1,498)311,648(8,916)

302,733

754

12,6101,656,637

Changes during year:
Cash dividends(9,767)

Net income

72,844Purchases of treasury stock(7,029)Cancellation of treasury stock
Disposals of treasury stock

15

Transfer from retained earnings tocapital surplus
Net changes in items other thanshareholders' equity
Total changes during year
Balance at end of current year

254,570

10,410261,325

283

1,562

263,170

254,570$566,219

10,410$(10,410)

261,325$564,057

283$1,0381,562$14,172

319,233$1,975,871

18

THE YAMANASHI CHUO BANK 201518

④【Consolidated Statements of Cash Flows】
Millions of Yen

Thousands of U.S. Dollars

Consolidated FY2014(From April 1, 2014
to March 31, 2015)

Consolidated FY2013(From April 1, 2013
to March 31, 2014)

Consolidated FY2014(From April 1, 2014
to March 31, 2015)¥13,047¥12,488$108,571

3,295

3,196

27,426

353

318

2,943

(2,733)(3,091)(22,746)

Increase (decrease) in accrued bonuses todirectors and corporate auditors

(1)

0

(9)

Increase (decrease) in liability for employees’
retirement benefits－(7,680)－(1,253)(1,799)(10,434)

Increase (decrease) in net defined benefit liability

(491)

－

(4,089)

Increase (decrease) in reserve for directors’ andcorporate auditors’ retirement benefits

1

(6)

12

Increase (decrease) in reserve forreimbursement of deposits

47

(85)

392

Increase (decrease) in reserve for contingent
losses

(128)

(43)

(1,070)Interest income recognized on consolidated
statements of income(35,000)(34,476)(291,259)

Interest expenses recognized on consolidated
statements of income

1,690

1,704

14,069Losses (gains) on investment securities(1,042)(1,023)(8,677)

Foreign exchange losses – net(3,320)(358)(27,634)

63

21

532

Net increase (decrease) in loans and bills
discounted(48,247)

59,473(401,491)

Net increase in deposits

65,561

88,958545,576

Net increase in negotiable certificates of deposit(21,945)(8,017)(182,616)

1,073(84,188)

8,930

10

(71)

90

Net decrease (increase) in call loans(30,335)

11,029(252,441)

Net increase (decrease) in call money(1,196)

5,731(9,957)

Net increase (decrease) in payables under
securities lending transactions

18,557

7,537

154,430

374

(320)

3,119

.
Operating activities:
Income before income taxes and minority interests
Adjustment for:
Depreciation and amortization
Impairment losses
Increase (decrease) in allowance for possible
loan losses

Decrease (increase) in net defined benefit asset

Losses on disposal of premises and equipment

Net increase (decrease) in borrowed money
Net decrease in due from banks (excluding cash
equivalents)

Net decrease (increase) in foreign exchanges(assets)

19

THE YAMANASHI CHUO BANK 2015

19

Millions of Yen
Consolidated FY2014(From April 1, 2014
to March 31, 2015)
Net increase (decrease) in foreign exchanges(liabilities)

Thousands of U.S. Dollars

Consolidated FY2013(From April 1, 2013
to March 31, 2014)

Consolidated FY2014(From April 1, 2014
to March 31, 2015)

69

5

582

Interest income (cash basis)39,01638,378324,678

Interest expenses (cash basis)(1,283)(1,427)(10,681)

Other – net

2,742

7,550

22,819Total adjustments(1,073)93,803(8,933)

Income taxes paid

(2,733)(4,804)(22,746)

Net cash provided by operating activities(3,806)88,999(31,679)

Purchases of investment securities(280,148)(336,278)(2,331,272)

Proceeds from sales of investment securities

105,249

149,795

875,835

Proceeds from redemption of investment securities

117,424

139,019

977,157

Purchases of premises and equipment(2,669)(1,768)(22,212)

－

167

－

(1,089)(1,086)(9,070)1

1

12(61,232)(50,148)(509,550)(1,173)(1,053)(9,767)

(1)

(1)

(14)

(844)

(636)

(7,029)

1

1

15

－

64

－

(2,018)(1,625)(16,795)021

Net increase (decrease) in cash and cash equivalents(67,057)

37,226(558,024)

Cash and cash equivalents, beginning of year

126,11588,8891,049,478¥59,058¥126,115$491,454

Investing activities:

Proceeds from sales of premises and equipment
Purchases of intangible fixed assets
Proceeds from sales of intangible fixed assets
Net cash used in investing activities
Financing activities:
Dividends paid
Payment of dividends to minority interests
Repurchases of treasury stock
Proceeds from sales of treasury stock
Proceeds transferred frompurchase of treasury stock

trust

account

for

Net cash used in financing activities
Foreign currency transaction adjustments on cash andcash equivalents

Cash and cash equivalents, end of year

※1

20
THE YAMANASHI CHUO BANK 201520

【Notes to Consolidated Financial Statements】
Important items used as basis for preparing consolidated financial statements
1. Items relating to scope of consolidation(1) Consolidated subsidiaries

4 companies

The names of consolidated subsidiaries are Yamanashi Chuo Guarantee Co., Ltd., Yamanashi Chugin Lease Co., Ltd.,
Yamanashi Chugin DC Card Co., Ltd. and Yamanashi Chugin Management Consulting Co., Ltd.
(2) Number of non-consolidated subsidiaries

2 companies

Yamanashi New Business Support Investment Limited Partnership
Yamanashi Sixth Industrialization Support Investment Limited Partnership
Non-consolidated subsidiaries are excluded from the scope of consolidation since their assets, ordinary income, and ourownership percentage of their net income and retained earnings does not have a material impact on our results ofoperations and financial condition.
Both partnerships were newly established in the consolidated fiscal year under review.

2. Items relating to application of equity method(1) Non-consolidated subsidiaries that are applied to equity method
Not applicable(2) Affiliates that are applied to equity method
Not applicable(3) Number of non-consolidated subsidiaries not accounted for by the equity method

2 companies

Yamanashi New Business Support Investment Limited Partnership
Yamanashi Sixth Industrialization Support Investment Limited Partnership
Non-consolidated subsidiaries not accounted for by the equity method are excluded from the scope of the equity method
since our ownership percentage of their net income and retained earnings do not have a material impact on our consolidated
financial statements.
(4) Affiliates that are not applied to equity method
Not applicable

3. Items relating to business years of consolidated subsidiaries
All of the consolidated subsidiaries have their settlement day on March 31.

4. Items relating to accounting standards(1) Valuation standards and methods for trading account securities
Trading securities, which are held for the purpose of earning capital gains, are reported at fair value and the related
unrealized gains and losses are included in earnings.
(2) Valuation standards and methods for securities
Held-to-maturity debt securities, which management has the positive intent and ability to hold to maturity are reported atamortized cost, and available-for-sale securities, which are not classified as either of the aforementioned securities, arereported at fair value with unrealized gains and losses, net of applicable taxes, reported in a separate component of equity.
Available-for-sale securities whose fair values are extremely difficult to be determined are stated at cost determined by themoving-average method. The cost of securities sold is determined based on the moving-average method.
(3) Valuation standards and methods for derivative transactions
Derivative transactions are measured at fair value.
(4) Methods of depreciation of fixed assets

21

THE YAMANASHI CHUO BANK 201521

① Tangible fixed assets (excluding lease assets)
Depreciation of tangible fixed assets is calculated principally using the declining-balance method. Useful lives of tangible
fixed assets are primarily as follows:
Buildings

3 to 50 years

Other

2 to 20 years② Intangible fixed assets (excluding lease assets)
Amortization of intangible fixed assets is calculated principally using the straight-line method.
Software for internal use by the Bank and its subsidiaries is calculated over the useful life of the software (principally
five years).
③ Lease assets
Lease assets employed in leasing transactions that do not transfer ownership of the lease assets to the lessee – bothpremises and equipment and intangible fixed assets – are depreciated by the straight-line method over the lease period.
Residual value of those lease assets is zero unless any guaranteed amount is prescribed in the lease agreement.
(5) Allowance for possible loan losses
The allowance for possible loan losses is stated in amounts considered to be appropriate based on management’s
judgment and an assessment of future losses estimated through the Bank’s self assessment of the quality of all loans.
The Bank has a credit rating system and a self assessment system. These systems are used to assess the Bank’s asset
quality based on past experience of credit losses, possible credit losses, analysis of customers’ conditions, such as
business conditions, character and quality and the overall performance of the portfolio. For claims of debtors who haverestructured loans (refer to note 4 in “Notes to Consolidated Financial Statements”) for which cash flows related to therecovery of loan principal or receipt of interest could be reasonably estimated, an allowance for possible loan losses (basedon the cash flow estimate method) is provided for the difference between the present value of expected future cash flows
discounted at the contracted interest rate and the carrying value of the claim. All loans are classified into one of fivecategories for self assessment purposes, “normal,” “caution,” “possible bankruptcy,” “virtual bankruptcy” or “legal
bankruptcy.”
The allowance for possible loan losses is calculated based on the actual past loss ratio for “normal” and “caution”
categories, and the fair value of the collateral for collateral-dependent loans and other factors, including the value of future
cash flows for other self assessment categories.
The policy for the allowance for possible loan losses of consolidated subsidiaries is similar to the Bank’s.
(6) Accrued bonuses to directors and corporate auditors
Accrued bonuses to directors and corporate auditors are provided in the amount of the estimated bonuses which are
attributable to each fiscal year.
(7) Reserve for directors’ and corporate auditors’ retirement benefits
A reserve for directors’ and corporate auditors’ retirement benefits is provided at the amount which would be required if all
directors and corporate auditors retired at the balance sheet date.
(8) Reserve for reimbursement of deposits
Provision is made for possible losses on future claims of withdrawal of deposits which were derecognized as liabilities undercertain conditions in an amount deemed necessary based on historical reimbursement experience.
(9) Reserve for contingent losses
Reserve for contingent losses, which is provided for possible losses from contingent events, is calculated by estimation of
the impact of those contingent events.
(10) Accounting procedures for retirement benefits
In calculating retirement benefit obligations, the Bank used the benefit formula as the method of attributing the estimatedretirement benefits to periods of service to the end of the consolidated fiscal year under review.
In addition, the method of recording expenses for past service costs and actuarial gains and losses are as follows.

22

THE YAMANASHI CHUO BANK 201522

Past service costs: Recognized in profit and loss using the straight-line method over a fixed period (10 years) within the
average remaining service period of employees at the time they occur.
Actuarial gains and losses: Recognized the amount equally divided by using the straight-line method over a fixed period(10 years) based on the average remaining service period in each consolidated fiscal year in which they occur and recorded
in profit and loss from each of the following year of the occurrence.
(11) Foreign currency items
Foreign currency assets and liabilities are translated into yen at the exchange rates prevailing at the balance sheet date.
(12) Lease transactions(Lessor)
Revenues and cost of revenues of finance lease transactions are recognized when lease payments are made.
(13) Cash and cash equivalents
For the purpose of reporting cash flows, cash and cash equivalents are defined as cash and due from the Bank of Japan.
(14) Consumption taxes
The accounting treatment of the consumption tax and local consumption tax descends by excluding tax method. However,deducting off the subject to the consumption tax to tangible fixed assets are summed up to the cost in this fiscal year.
(15) U.S. dollar amounts
The translations of Japanese yen amounts into U.S. dollar amounts are included solely for the convenience of readers
outside Japan and have been made at the rate of ¥120.17 to $1, the exchange rate prevailing on March 31, 2015.
[Changes in accounting policies][Application of Accounting Standard for Retirement Benefits]
Accounting Standard for Retirement Benefits (ASBJ Statement No. 26, May 17, 2012) and Guidance on Accounting Standard for
Retirement Benefits (ASBJ Guidance No. 25, March 26, 2015) have been applied since the consolidated fiscal year under review
with respect to the provisions contained in paragraph 35 of Accounting Standard for Retirement Benefits and paragraph 67 of
Guidance on Accounting Standard for Retirement Benefits. After reviewing the method for calculating retirement benefit
obligations and service costs, the Bank has changed from straight-line attribution as its method for allocating projected retirement
benefits to the benefit formula. At the same time, the Bank changed its method for determining the discount rate with respect tothe period of the bond, which forms the basis for determining the discount rate, from a method that uses the average period until
the expected payment date of the retirement benefit as its basis, to a method that uses multiple discount rates set for each
expected payment period of the retirement benefit.
In applying the Accounting Standard for Retirement Benefits, the Bank follows the transitional provisions set forth in Article 37of the Accounting Standard for Retirement Benefits. At the beginning of the consolidated fiscal year under review, the amount of
the impact following the change of method for calculating retirement benefit obligations and service costs was adjusted inretained earnings.
As a result, at the beginning of the fiscal year under review, retirement benefit obligations and retirement benefit assets
increased by ¥486 million and ¥208 million, respectively, and retained earnings decreased by ¥179 million. In the fiscal year
under review, ordinary income and income before income taxes and minority interests each increased by ¥71 million.
The effect this has on per share information is described in the relevant section.

23

THE YAMANASHI CHUO BANK 201523

[New accounting standards not yet applied]○ Accounting Standard for Business Combinations (September 13, 2013)(1) Summary
Said accounting standard primarily changed (1) parent company’s treatment of changes in its ownership interests in
subsidiaries when control is retained due to cases including the additional acquisition of stock of a subsidiary, (2) treatment ofacquisition-related expenses, (3) treatment of provisional accounting procedures, (4) presentation of net income and change
from minority interests to non-controlling interests.
(2) Planned date of application
The Bank plans to apply said revised accounting standard from the beginning of the consolidated fiscal year starting April 1,
2015.
(3) Effect of applying the changes
The effect of applying said accounting standard has not yet been determined.

24
THE YAMANASHI CHUO BANK 201524

(Relating to Consolidated Balance Sheets)*1 Shares held or investments in non-consolidated subsidiaries and affiliates
As of March 31, 2015

(Millions of yen)

Investments¥156*2 The amounts of loans to customers in bankruptcy and past due loans included in loans and bills discounted were as follows:
As of March 31, 2015

(Millions of yen)

Loans to customers in bankruptcy¥2,749

Past due loans¥37,263

Loans to customers in bankruptcy represent nonaccrual loans to debtors who are legally bankrupt, as defined in Article 96,
Paragraph 1, Subparagraphs 3 and 4 of Enforcement Ordinance for the Corporation Tax Law. Past due loans are defined
as nonaccrual loans except for loans to customers in bankruptcy and loans of which the interest payments are deferred inorder to assist in the financial recovery of a debtor in financial difficulties.
*3 The amount of accruing loans contractually past due three months or more included in loans and bills discounted was asfollows:
As of March 31, 2015

(Millions of yen)

Past due loans of three months or more

¥19

Accruing loans contractually past due three months or more are loans on which the principal or interest is three months ormore past due.
*4 The amount of restructured loans for which the Bank has relaxed lending conditions included in loans and bills discounted was
as follows:
As of March 31, 2015
Restructured loans for which the Bank hasrelaxed lending conditions(Millions of yen)
¥3,338

Restructured loans are loans for which the Bank has relaxed lending conditions, such as: reduction of the original interest
rate, deferral of interest payment, extension of maturity date, or reduction of the amount of the debt or accrued interest.
*5 The total amount of loans to customers in bankruptcy, past due loans, accruing loans contractually past due three months ormore and restructured loans for which the Bank has relaxed lending conditions was as follows:
As of March 31, 2015
Total amount(Millions of yen)
¥43,371

The loan amounts identified in the preceding items (2) to (5) are before deducting any allowance for possible loan losses.
*6 Bills discounted are accounted for as financial transactions in accordance with JICPA Industry Audit Committee Report No. 24,“Treatment for Accounting and Auditing of Application of Accounting Standard for Financial Instruments in Banking Industry.”
The Bank has the right to sell or pledge commercial bills discounted and foreign exchanges bought without restrictions. The
face amount was as follows:
As of March 31, 2015

(Millions of yen)
¥5,573*7 The amount of loan participation recorded in the consolidated balance sheet and included in participated principals that were
accounted for as loans to original debtors in accordance with JICPA Accounting System Committee Report No. 3“Accounting Treatment and Representation of Loan Participation” was as follows:
As of March 31, 2015

(Millions of yen)
¥3,00025

THE YAMANASHI CHUO BANK 201525

*8 Assets pledged as collateral were as follows:
As of March 31, 2015

(Millions of yen)

Assets pledged as collateral
Investment securities¥247,017

Liabilities related to pledged assets
Deposits¥18,495

Payables under securities lendingtransactions¥26,095

Borrowed money¥22,282

In addition to the aforementioned, the following items were pledged as collateral for the settlement of foreign currency
exchange and other transactions:
As of March 31, 2015

(Millions of yen)

Investment securities¥72,733

Moreover, guarantee deposits included in other assets were as follows:
As of March 31, 2015

(Millions of yen)

Guarantee deposits¥257*9 Lease contract assets (the total sum of lease investment assets included in Other assets and interest receivables on lease
investment assets) for the remaining lease periods, which were pledged as collateral for a portion of borrowed money, wereas follows:
As of March 31, 2015

(Millions of yen)

Lease contract assets¥740

Corresponding borrowed money¥428*10 Commitment line contracts on overdrafts and loans are agreements to lend to customers when they apply for borrowing, up
to a prescribed amount, as long as there is no violation of any condition established in the contract. The amounts of unused
commitments as of March 31, 2015 were as follows:
As of March 31, 2015
Total amount of unused commitments as ofthe end of the period:
Amount of unused commitments whose
original contract terms were within one year
or unconditionally cancelable at any time

(Millions of yen)
¥380,212¥369,417

Since many of these commitments are expected to expire without being drawn upon, the total amount of unused
commitments does not necessarily represent actual future cash flow requirements. Many of these commitments haveclauses that allow the Bank to withdraw the commitment line offer or reduce the contract amounts in situations where
economic conditions are changed, the Bank needs to secure claims, or other conditions are triggered.
In addition, the Bank requires the customers to pledge collateral such as premises and securities and takes necessary
measures such as seizing the customers’ financial positions, revising contracts when the need arises and securing claims
after conclusion of the contracts.
*11 Accumulated depreciation of tangible fixed assets
As of March 31, 2015
Total amount of accumulated depreciation(Millions of yen)
¥33,591*12 Deferred gains on tangible fixed assets deductible for tax purposes:
As of March 31, 2015

(Millions of yen)

Deferred gains¥1,03726

THE YAMANASHI CHUO BANK 201526

*13 The amount of guarantee liabilities for private placement bonds in “Securities” (provided in accordance with the Financial
Instruments and Exchange Act, Article 2, Paragraph 3) was as follows:
As of March 31, 2015

(Millions of yen)
¥1,312(Relating to Consolidated Statements of Income)*1 “Other ordinary income” includes the following item:
From April 1, 2014 to March 31, 2015

(Millions of yen)

Gain on sales stock¥1,188*2 “General and administrative expenses” include the following.:
From April 1, 2014 to March 31, 2015

(Millions of yen)

Salary allowance¥12,379

Depreciation and amortization

3,295*3 In the case of the following asset groups, book values were written down to the recoverable levels due to falling land prices
and lower net cash from operating activities, and differences have been recorded as impairment losses.
From April 1, 2014 to March 31, 2015

(Millions of yen)

Location

Use

Category

Total impairment loss

Yamanashi Prefecture

Operating assets

Land and intangible
fixed assets

Idle assets

Land

2

Tokyo

Operating assets

Other tangible fixed
assets

4

Total

―

―

¥346

¥353

In this method of asset grouping, operating assets as a rule are treated as business premises units (however businesspremises groups that handle combined businesses are treated as Group units), and idle assets are treated as individual asset
units. Head Office, computing centers, company residences and dormitories, etc. are regarded as shared assets.
Recoverable amounts are whichever is the higher of net selling prices and value in use. In the case of net selling prices, thecalculation involves deduction of expected disposal expenses from the sum reasonably calculated by real estate asset valuation,etc. In the case of value in use, the calculation uses a 1.6% discount rate for future cash flow.

27

THE YAMANASHI CHUO BANK 201527

(Relating to Consolidated Statements of Comprehensive Income)*1 Reclassification adjustment and tax effect related to comprehensive income
From April 1, 2014 to March 31, 2015

(Millions of yen)

Valuation difference on available-for-salesecurities:
Difference arising during the fiscal year

¥ 44,518

Reclassification adjustment to profit and loss

(2,214)

Amount before income tax effect42,304

Income tax effect(11,709)

Valuation difference on available-for-salesecurities:

30,594Remeasurements of defined benefit plans
Gains (losses) arising during the fiscal year

923

Reclassification adjustment to profit and loss

346

Amount before income tax effect

1,270

Income tax effect(458)

Remeasurements of defined benefit plans

811

Total other comprehensive income¥ 31,406(Relating to Consolidated Statements of Changes in Net Assets)
1 Items to kind and total number of shares outstanding and treasury stocks(Thousands of shares)
Number of shares atthe beginning of
FY2014

Number of shares
increased during
FY2014

179,915

―

6,036

1,599

Number of shares
decreased during
FY2014

Number of shares atthe end of FY2014

Remarks

5,000

174,915

Note 2

5,004

2,631

Note 1,2

Shares outstanding
Common stock
Treasury stock
Common stock

Notes 1 Breakdown of increases in the number of shares during the consolidated fiscal year under review is as follows:
Increase by acquisition of treasury stock upon resolution of the board of directors
Increase by purchase claims of less than one unit

1,577 thousand
22 thousand

2 Breakdown of decrease in the number of shares during the consolidated fiscal year under review is as follows:(1) Issued and outstanding shares
Decrease due to cancellation of treasury stock by resolution of the board of directors

5,000 thousand(2) Treasury stock
Decrease due to cancellation of treasury stock by resolution of the board of directors

5,000 thousand

Decrease by exercise of stock option rights

4 thousand

Decrease by purchase claims of less than one unit

0 thousand

28

THE YAMANASHI CHUO BANK 201528

2 Matters concerning share subscription rights and own share options

Classification

Breakdown of
share
subscription
rightsThe Bank

Stock options as
share
subscription
rightsClass of shares tobe issued ortransferred upon
the exercise ofshare
subscription rights

Number of shares to be issued or transferred upon the exerciseof share subscription rights (shares)
FY2014
Beginning ofEnd of the
Increase
Decrease
FY2014FY2014

Total

Balance as ofthe end of the
FY2014(Millions of yen)

―

¥124

―

¥124

3 Items relating to dividends(1) Dividend paid during FY2014(Resolution)
Annual General
Meeting of
Shareholders on June27, 2014
Board of Directors’Meeting on
November 14, 2014

Total dividend

Dividends per share(Millions of yen)

(Yen)

Common stock¥ 608

Common stock

565

Type of stock

Reference date

Effective date

¥3.50

March 31, 2014

June 30, 2014

3.25

September 30, 2014

December 3, 2014

(2) Dividends whose reference date falls in the current fiscal year, but where the effective date of dividend occurs after the end of
FY2014.
(Resolution)

Type of stock

Total dividend(Millions of yen)Fund for dividend

Dividends per
share (Yen)

Reference date

Effective date

Annual General
Meeting of
Shareholders on
June 24, 2015

Common stock¥646

Retained earnings¥3.75

March 31, 2015

June 25, 2015

(Relating to Consolidated Statements of Cash Flows)*1 The reconciliation of the cash and due from banks in the consolidated balance sheets and the cash and cash equivalents at
March 31, 2015, is as follows:
Cash and due from banks¥ 69,226 million

Due from banks, excluding due from Bank of Japan(10,168) million

Cash and cash equivalents¥ 59,058 million(Relating to Lease Transactions)
Finance leases(Lessor)
1. Details of net investment in leases for the year ended March 31, 2015 are as follows:(Millions of yen)
Gross lease receivables¥ 7,471

Estimated residual value―

Unearned interest income(604)

Net investment in leases¥ 6,866

29

THE YAMANASHI CHUO BANK 201529

2. Expected amounts from the collection of gross lease receivables for the year ended March 31, 2015 are as follows:(Millions of yen)
1 year or less¥ 2,436

1 to 2 years

1,929

2 to 3 years

1,433

3 to 4 years924

4 to 5 years

475

Over 5 years272¥ 7,471

Total(Financial Instruments and Related Disclosure)
1. Qualitative Information of Financial Instruments(1) Policy for financial instruments
The Group is involved in financial services including the leasing and the credit card business, etc. around the banking
business. Within banking, we are involved in the business of taking deposits, making loans and securities trading, as well as
the over-the-counter sale of public bonds such as Japanese government bonds, investment trusts and insurance. In addition,
for the purpose of short-term fund raising, we enter into call loans and call money in the interbank market. In hedging foreignexchange risk and finance and using different currencies, we enter into forward exchange contracts including fund swap
transactions. However, we do not conduct transactions whose structures are complicated and speculative transactions.
Because we hold financial assets and liabilities with interest rate risk, we conduct Asset Liability Management (ALM) to limit
the disadvantageous influence from fluctuations in interest.
(2) Nature and extent of risks arising from financial instruments
The financial assets that the Group holds are loans for domestic customers and domestic and foreign securities. Loans havecredit risk, brought about by the borrower’s nonperformance of contractual obligations. The contents of securities are mainly
bonds, stocks and investment trusts. The Group holds these securities for the purpose of holding to maturity, investment
available for sale and policy investment (business promotion). Securities have issuer’s credit risk, interest rate risk and market
price risk.
The Group regards the deposits from customers as its main supply of financial funds. The Group secures stable financing
by maintaining the soundness of financial affairs, but has liquidity risk that it may not be possible to obtain necessary funds
due to the outflow of unexpected funds.
When forward foreign exchange contract transactions and fund swap transactions, which are derivative transactions, areperformed, hedge accounting is applied based on JICPA Industry Audit Committee Report No. 25, “Treatment of Accounting
and Auditing concerning Accounting for Foreign Currency Transactions in the Banking Industry.” Derivative transactions that
do not meet the criteria for hedge accounting contain foreign exchange fluctuation risk.
(3) Risk management systems for financial instruments① Credit risk management
The Group performs maintenance of the credit screening system, fosters talented human resources and positively advances
credit risk management. The credit screening system keeps the credit screening section independent and performs strict
screening in advance, performs interim screening and assesses credit enhancements and credit risk management after
lending. Regarding administration, the marketing section and credit screening section or the headquarters and businessoffices perform mutual check functions. The Group tries for the observance of the financing rule and appropriate use andthereby acts in enhancement of system support such as the practical use of the financing support system. Furthermore, for
coping with risk fluctuating continually, the Group monitors the actual condition of customers through credit rating and self
assessment to be performed regularly or at any time. The Group introduced “Credit risk information integration service” that30

THE YAMANASHI CHUO BANK 201530

is a joint undertaking of the banks that joined the Regional Bank Association to attempt the upgrade of the credit risk
management and are aiming at refining measurement of value at risk (VaR).
We monitor credit information, current-prices and VaR and manage the credit risk of issuers of securities andcounterparty risk of derivative transactions in the risk management section.
The situation of these risk management activities is reported to management regularly in the ALM Committee and theboard of directors.
② Market risk management(A) Interest-rate risk management
The Group supports the needs of customers properly and, for the earning capacity improvement of the bank, conducts
interest rate risk management as a basic policy. We devised “the basic policy for the interest rate risk hedge” as a
general rule every half term to control interest rate risk properly in the ALM Committee in which management is involved
as the main members and involved in examining interest rate changes and reviews it regularly. In addition, in the ALM
committee meeting held monthly, the Group examines an interest rate predictive report that the interest rate prediction
committee produces and monitors the change in the interest rate risk amount of the whole bank account closely. In therisk management section, the Group calculates VaR and basis point value (BPV) and manages the interest rate risk
amount of the banking account. In addition, the Group performs stress tests based on a stress scenario extending toeach risk category. These results are reported to management regularly in the ALM Committee and the board of
directors.
(B) Foreign exchange risk management
The Group manages foreign exchange risk by monitoring exposure to foreign exchange and VaR in the risk management
section. Moreover, it reports regularly to management in the ALM committee and board of directors, etc. The majority offoreign exchange risk is hedged by forward exchange contracts.
(C) Market price risk management
Regarding investment in financial instruments including securities, the Group conducts risk management in conformity
with a basic administration policy. The basic administration policy is as follows. The Group executes the market businesswhile attempting to secure fairness and prompt correspondence. The Group takes the opportunity for earnings byactively taking risks that can be measured and managed. The proof of maximizing management vitality, like earnings andequity capital, are assumed to be a precondition. The operative plans are decided by the board of managing directors
after discussion with the ALM Committee.
In making the plans, the Group examines the expected rate of return based on the prospect of interest rate and stock
prices, market price risk and return in consideration of the correlation between the financial instruments invested in. The
Group measures market price risks such as stock price risk using the VaR method. The ALM Committee monitors VaR
based on risk limits and the results of stress tests and tries for coexistence of securing of financial soundness andearning profit.
(D) Derivative transactions
For derivative transactions, the aim is for maintenance of strong management so as not to exert a negative influence on
profit and loss, and the Group tries to set position limits and operate loss-cut rules strictly based on the risk management
standard. Moreover, the Group reports regularly to management in the ALM committee and the board of directors, etc.
(E) Quantitative information regarding market risk
In principle, the Group undertakes a quantitative analysis of the market risks applicable to all of its financial instruments.
The volume of market risk is mainly managed utilizing the VaR method. In specific terms, market risks are managed in amanner that ensures that VaR (the amount of risk after writing down investment in shares undertaken for strategic
business purposes for a portion of VaR) does not exceed the maximum amount of risk (amount of capital allocation)
determined by a resolution of the Board of Directors or other appropriate bodies. The variance-covariance method(holdings period: 240 days; confidence interval: 99%; observation period: 240 business days) is used to measure VaR(excluding trading securities) while taking into consideration the correlation among interest rates for shares and

31

THE YAMANASHI CHUO BANK 201531

investment trusts. In addition, with respect to the yen-denominated interest risk applicable to demand deposits, internal
models are used to estimate core deposits and VaR used as the means for measurement. Trading securities VaR ismeasured using the separate holding period of 10 days. Financial instruments including shares of non-listed companies,
where fair values are deemed as being extremely difficult to ascertain, are managed on a credit risk basis. Taking into
consideration the nominal amount of market risk applicable to the financial instruments held by consolidated subsidiaries,
these financial instruments are excluded from the scope of VaR measurement.
The Group’s VaR (excluding trading securities) amounted to ¥54,162 million as of March 31, 2015 compared with
¥59,880 million as of the end of the previous fiscal year. There was no VaR of trading securities. (There was ¥0 VaR oftrading securities in the previous fiscal year). The VaR of trading securities was ¥0 million as of the end of the fiscal year
under review, unchanged from the previous fiscal year-end. The Group undertakes backtesting to compare VaR,
calculated using VaR measurement models, with actual income and loss. The results of this comparison are reported to
the ALM Committee on a monthly basis. As a result of this backtesting, the Group is confident that the VaR measurement
models used are more than adequate in accurately identifying market risks. However, VaR represents the amount ofmarket risks arising with a certain probability using a statistical methodology based on historical market volatilities.
Accordingly, situations may arise where it is not possible to identify risks appropriately due to market environment
volatility that exceeds normally recognized parameters.
③ Liquidity risk management
The Group controls liquidity risk by managing the mismatch between the terms of investing and procuring funds as well as
holding highly liquid assets. Financing risk is limited by holding assets with high liquidity as payment reserves forunexpected capital outflows, and a smooth financing resource is secured. Moreover, the Group reports regularly to
management in the risk management committee and the board of directors, etc.
(4) Supplementary explanation of the fair value financial instruments
The fair value of financial instruments includes, in addition to the value based on the market price, the value reasonably
calculated if no market prices are available. Certain assumptions are used in the calculation of such amounts. Accordingly,
the results of such calculations may vary if different assumptions are used.

32

THE YAMANASHI CHUO BANK 201532

2. Fair Values of Financial Instruments
Fair value and carrying amounts of financial instruments are shown below. Some instruments, such as unlisted stocks, whose fairvalues are extremely difficult to determine, are not included in the table below (see Note 2).
(Millions of yen)
Carrying amount

Fair value

Difference(1) Cash and due from banks¥69,226¥69,226¥―(2) Call loans and bills bought

34,28734,287

―

―

―

―

1,309

1,310

0

1,513,331

1,513,331―

1,473,779

1,485,040

11,261

Total¥3,091,935¥3,103,197¥11,262(1) Deposits¥2,701,437

2,704,166

678

103,875

103,89015¥2,807,363¥2,808,057

¥693

(499)

(499)

―

―

―

―

¥(499)¥(499)¥―(3) Trading securities
Trading securities(4) Securities
Held-to-maturity
Available-for-sale securities

1,488,648(5) Loans and bills discounted
Accrued income (Interest on loans)

709

Deferred income (Interest on loans and guarantee
charge) (*1)

(948)
(14,630)

Reserve for possible loan losses (*2)

2,050

Accrued expenses (Interest on deposits)

2,703,488
103,832(2) Negotiable certificates of deposits

42

Accrued expenses (Interest on NCDs)

Total
Derivatives (*3)
Hedge accounting is not applied
Hedge accounting is applied
Total*1. Represents deferred interest received on loans and deferred guarantee fees received of a consolidated subsidiary performing guarantees on
the Bank’s loans to customers.
*2. General reserve for possible loan losses and specific reserve for possible loan losses provided to “Loans and bills discounted” are separately
presented in the above table.
*3. Derivative transactions recorded in “Other assets” and “Other liabilities” are aggregated and shown herein. Assets and liabilities attributable tothe derivative transactions are totally offset and the net liability position as a consequence of offsetting would be represented with brackets.

(Note 1) Method Used for Determining the Fair Value of Financial Instruments
Assets(1) Cash and due from banks
For due from banks without maturity, fair value is the value closest to acquisition cost or amortized cost method value. For
due from banks with maturity, the contract period is short (less than one year) and fair value is the value closest toacquisition cost or amortized cost method value.

33

THE YAMANASHI CHUO BANK 201533

(2) Call loans and bills bought
The fair values of fixed-rate loans and bills discounted whose terms are short (within one year) approximate theiracquisition cost or depreciable cost, and the fair values are therefore deemed equal to these values.
(3) Trading securities
The fair values of securities such as bonds held for trading are determined by reference to quoted market prices on stock
exchanges or prices offered by correspondent financial institutions.
(4) Securities
The fair values of stocks are determined by reference to quoted market prices on stock exchanges. The fair values ofbonds are determined by reference to quoted market prices or prices offered by correspondent financial institutions. The
prices of the Bank’s guaranteed private placement bonds are calculated by discounting the estimated future cash flows foreach classification based on the issuers’ internal rating and terms by using the risk-free interest rates plus credit cost rates
and expense rates. Investment trusts are determined by reference to their publicly available net asset value.
Information outlining notes for investment securities according to the purpose for which they are held is contained under“Relating to securities.”(5) Loans and bills discounted
As floating-rate loans and bills discounted reflect market interest rates over short periods, unless the credit standing of theborrower is significantly different after the loan was made or the bill was drawn, the fair value approximates the carrying
value. The fair value is therefore deemed equal to the carrying value.
The fair values of fixed-rate loans and bills discounted are their present values that are estimated for each classification
based on their type, internal rating, status of collateral and guarantee, and terms, and by discounting the future cash flowsof the principal and interest using the rates at which similar new loans would be made or market interest rates plus credit
cost rates in accordance with internal ratings and expense rates. The fair values of fixed-rate loans and bills discounted
whose terms are short (within one year) approximating their carrying values and are therefore deemed equal to thecarrying values.
Losses from loans to borrowers in legal bankruptcy, in virtual bankruptcy and in possible bankruptcy are computed
based on estimated recoverable amounts. Then the fair values of those loans approximate the consolidated balance sheet
amounts at the closing date minus the currently estimated losses and are therefore deemed equal to the amounts.
The fair values of loans and bills discounted for which repayment terms are not set because of their attributes (e.g.
loans are limited to the amounts of pledged assets) are assumed to approximate their carrying values, considering the
expected repayment periods and interest rate conditions, and are deemed equal to the carrying values.
Liabilities(1) Deposits and (2) Negotiable certificates of deposits
The fair values of demand deposits are deemed equal to the amounts that would be paid (carrying values) if the payments
were demanded at the balance sheet date. The fair values of time deposits and negotiable certificates of deposit, which areclassified in accordance with their periods, are their present values that are estimated by discounting the future cash flows
using the rates that would be offered for new deposits to be received.
The fair values of deposits and negotiable certificates of deposit with short deposit terms (within one year) or withvariable interest rates approximate their carrying values and are deemed equal to their carrying values.

34

THE YAMANASHI CHUO BANK 201534

Derivatives
Derivative transactions are listed under “Relating to derivative transactions.”(Note 2) Financial instruments whose fair values are extremely difficult to be determined recorded on the consolidatedbalance sheet are as follows. The following instruments are not included in ‘Assets (4) Securities’ in the abovetable showing the fair values of financial instruments as of March 31, 2015.
(Millions of yen)
Carrying amountUnlisted equity securities (*1) (*2)¥516

Contributions to unions (*1) (*3)

156

Total

¥673

*1. They are excluded from disclosure because they do not have a market price and their fair values are extremely difficult to determine.
*2. Classified as available-for-sale securities; in the previous consolidated fiscal year, an impairment loss of ¥0 million was recognized.
Classified as available-for-sale securities; in the consolidated fiscal year under review, no impairment loss was recognized.
*3. It is an investment in non-consolidated subsidiaries.

(Note 3) Maturity analysis for monetary claims and securities with contractual maturities(Millions of yen)
1 year or lessOver 1 year less
3 years

Over 3 years less
5 years

Over 5 years less
7 years

Over 7 years less10 years

Over 10 years

Due from banks¥41,782

¥―

¥―

¥―

¥―

¥―

Securities

215,416

365,857

124,731

166,778

147,022

172,923

348

604

359

―

―

―

Held-to-maturity

348

604

359

―

―

―

Available-for-salesecurities that havematurities
Japanesegovernment bonds

215,068

365,252

124,371

166,778

147,022

172,923

132,003

236,500

42,00073,70099,100164,400

Municipal bond

28,00973,09050,22537,48028,0798,523

Corporate bonds

53,25253,859

9,554

8,130

14,436―

OthersCorporate bonds

1,802

1,802

22,59147,467

5,407―

Loans and bills
discounted (*)

337,248

316,557

213,987

127,352

149,926

199,139

Total¥594,447¥682,414¥338,719¥294,130¥296,949¥372,063* Of loans and bills discounted, the portion whose timing of collection is unforeseeable, such as loans to borrowers in legal bankruptcy, in virtual
bankruptcy and in possible bankruptcy, amounting to ¥40,013 million, is not included in the above table. Loans that do not have contractual
maturities, amounting to ¥104,275 million are not included either.

35

THE YAMANASHI CHUO BANK 2015

35

(Note 4) Maturity analysis for interest-bearing debt
(Millions of yen)
1 year or lessOver 1 year less
3 years

Over 3 years less
5 years

Over 5 years less
7 years

Over 7 years less10 years

Over 10 years

Deposits (*)¥2,306,019¥288,323¥21,171

¥―

¥―

¥―

Negotiablecertificates ofdeposits

103,687

144

―

―

―

―

Borrowed money

17,867

4,806

36

―

―

―

¥2,427,573¥293,273¥21,208

¥―

¥―

¥―

Total

* Non-interest-bearing deposits such as checking accounts are excluded. Demand deposits are included in “1 year or less.”(Relating to securities)
1. Trading securities(Millions of yen)
Unrealized gains/losses recognized as income
Trading securities¥0

2. Held-to-maturity debt securities(Millions of yen)
Carrying amount

Fair value

Differences

Fair value exceeded carrying amount:

Corporate bonds

¥919

¥922

¥3

Fair value not exceeded carrying amount:

Corporate bonds

390

387

(3)

¥1,309¥1,310

¥0

Total

36

THE YAMANASHI CHUO BANK 201536

3. Available-for-sale securities(Millions of yen)
Fair value

Cost¥90,295¥41,916¥48,378

1,157,469

1,129,705

27,763

Japanese Government bonds

793,515774,291

19,223

Japanese municipal bonds

222,076

216,229

5,846Japanese corporate bonds

141,877

139,184

2,693

234,429

210,640

23,7891,482,194

1,382,262

99,931

912

991

(79)

9,804

9,821

(16)

―

―

―

Japanese municipal bonds

9,245

9,259

(14)

Japanese corporate bonds

559

561

(2)

Other securities

20,42020,546(125)

Sub-total

31,13731,358(221)¥1,513,331¥1,413,621¥99,710

Japanese stocks
Bonds total
Fair value exceeded
cost:

Other securities
Sub-total
Japanese stocks
Bonds total
Japanese Government bonds
Fair value notexceeded cost:

Valuation differences

Total

Note: Unlisted stocks that have a fair value and cost of ¥516 million, respectively, are excluded from the table above since there are no market
prices and their fair values are extremely difficult to be determined.

4. Held-to-maturity debt securities sold(Millions of yen)Type

Sales costs

Japanese corporate bonds

Sales proceeds

Gains on sales

¥50

¥50

¥0

The above securities were sold due to redemption by the issuer.

5. Available-for-sale securities sold(Millions of yen)Type

Sales costs

Gross realized gains

Gross realized losses

Japanese stocks¥6,326¥1,065¥79

Bonds total

79,404

94

85

Japanese Government bonds

73,06867

84

Japanese municipal bonds

5,705

4

0

Japanese corporate bonds

630

23

―

2,035

118

―

¥87,766¥1,279¥164

Other securities
Total

37

THE YAMANASHI CHUO BANK 201537

6. Securities recognized for revaluation loss
Among securities other than securities for trading purposes (except securities for which the fair value is extremely difficult toascertain), for securities that are not recognized as having prospects of recovery after their fair value fell sharply comparedwith the acquisition costs, fair value is recognized in the consolidated balance sheets, and valuation difference is treated as
an impairment loss (“revaluation loss”) in the consolidated year under review.
A revaluation loss of ¥87 million (of which ¥79 million was from stocks and ¥7 million from bonds) was recognized in
the previous consolidated fiscal year.
A revaluation loss of ¥76 million was recognized during the consolidated fiscal year under review.
The impairment accounting standards applied in cases where fair value is judged to have fallen significantly are as follows:(1) Across-the-board impairment losses shall be booked for securities whose fair values as of the consolidated balance
decline by 50% or more compared with their acquisition costs.
(2) Impairment losses shall be booked for securities whose fair values decline by 30% or more, but less than 50% where it isdeemed that there is little likelihood of a recovery in value after taking into consideration fair value levels over the pastyear.
(3) Impairment losses shall be booked for securities whose fair values decline by less than 30% as and when deemednecessary after taking into consideration the financial standing and related factors of the issuer.

(Relating to Net Unrealized Gains/Losses on Available-for-Sale Securities)
Available-for-sale securities were valued at market and net unrealized gains/losses on valuation were as follows:(Millions of yen)Amounts
Valuation difference¥99,710Deferred tax liabilities

31,654

Net unrealized gains (before minority interests)

68,056
13

Minority interests¥68,042Net unrealized gains on available-for-sale securities

38

THE YAMANASHI CHUO BANK 201538

(Relating to Derivative Transactions)
1 Derivative Instruments not accounted for as hedges
Regarding the derivative instruments which are not accounted for as hedge transactions, Contract Amount or Notional Amount,
Fair Value and Unrealized Gain or Loss for each type of derivative transactions, respectively, at the end of the consolidatedbalance sheet date, and Determination of fair value are as follows. Contract Amount or Notional Amount does not show itself
market risk of derivative instruments.
(1) Interest-related derivative instruments
Not applicable(2) Currency-related derivative instruments(Millions of yen)Contract Amount or
Notional AmountOver 1 Year

Fair Value

Unrealized Gain/Loss

Forward Rate Agreements
OTC(Notes)Sold¥49,779―¥(515)¥(515)

Buy

733

―

15

15

Total

―

―

¥(499)¥(499)

1 Derivative instruments are revalued to fair value. Changes in fair value are included in the consolidated statement of operations.
2 Determination of fair value:
Fair value is determined based on the discounted net present value model.

(3) Stock-related derivative instruments
Not applicable(4) Bond-related derivative instruments
Not applicable(5) Commodity-related derivative instruments
Not applicable(6) Credit derivative transactions
Not applicable
2 Derivative Instruments accounted for as hedges
Not applicable

39

THE YAMANASHI CHUO BANK 201539

(Relating to Employees’ Retirement Benefits)
1. Outline of employees’ retirement benefits
To provide for employees’ retirement benefits, the Bank has a funded defined benefit pension plan. The defined-benefit
corporate pension plan (funded plan) pays a lump sum or a pension based on employee compensation and length of service.
The defined benefit corporate pension plan has within it a retirement benefit trust.
The lump-sum retirement plan (an unfunded plan, but as a result of the establishment of the retirement benefit trust, it has
become a funded plan) pays a lump sum based on employee compensation and length of service.
2. Funded defined benefit pension plan
(1) Reconciliation of retirement benefits obligations at beginning of year and end of year
(Millions of yen)
Retirement benefit obligations at beginning of year

25,169Cumulative effect of changes in accounting policies

277

Balance at beginning of year reflecting changes in accounting policies

25,447

Service cost

775

Interest cost

322

Actuarial gains and losses

1,170

Retirement benefits payment(1,125)

Past service cost

―

Other

―

Retirement benefits obligations at end of year

26,590(2) Reconciliation of pension assets at beginning of year and end of year
(Millions of yen)
Pension assets at beginning of year

25,316

Expected return on plan assets

788

Actuarial gains and losses

2,094

Employer's contribution

671

Retirement benefits payment

(666)

Other

―

Pension assets at end of year

28,20440

THE YAMANASHI CHUO BANK 201540

(3) Reconciliation of retirement benefits obligations and pension assets at end of year and liabilities and assets of retirement
benefits recorded in the consolidated balance sheets(Millions of yen)
Retirement benefits obligations of funded plan

26,590Pension assets(28,204)(1,614)Retirement benefits obligations of unfunded plans－

Assets and liabilities recorded in consolidated balance sheets, net(1,614)(Millions of yen)
Liability of retirement benefits

971

Assets of retirement benefits(2,585)

Liabilities and assets recorded in the consolidated balance sheets, net(1,614)(4) Retirement benefit costs and its breakdown(Millions of yen)
Service cost

775

Interest cost

322

Expected return on plan assets(788)

Actuarial gains and losses recorded in expenses

434

Past service costs recorded in expenses

(87)

Other

－

Retirement benefit costs of defined benefit plan

656

(5) Remeasurements of defined benefit plans
Breakdown of items (before tax-related effects) recorded in remeasurements of defined benefit plans are as follows:(Millions of yen)
Past service costs

87

Actuarial gains and losses(1,357)

Other－

Retirement benefit costs of defined benefit plan

(1,270)41
THE YAMANASHI CHUO BANK 201541

(6) Accumulated adjustment for retirement benefits
The breakdown of items (before the deduction of tax effects) recorded in accumulated adjustment for retirement benefits is
as follows:(Millions of yen)
Unrecognized past service costs(110)

Unrecognized actuarial gains and losses

492

Other

－

Retirement benefit costs of defined benefit plan

382

(7) Pension assets
1. The percentage of each main category for total pension assets is as follows:
Stocks

43%

Bonds

41%

Life insurance general account

10%

Other

6%

Total

100%

Note: Included in total pension assets is 14% (compared with 14% in the previous fiscal year) for retirement benefit trusts
established in the corporate pension plan, and 30% (compared with 31% in the previous fiscal year) for retirement benefit
trusts established in the lump-sum retirement plan.

2. Method for calculating the long-term expected rate of return on plan assets
To determine the long-term expected rate of return on plan assets, the Bank considers the current and projected pension
assets allocations, as well as the current and expected long-term rate of return for the various assets that make up thepension assets.
(8) Basis for calculating actuarial calculations
Basis for calculating main actuarial calculations (weighted average)
Discount rate

1.3%

Long-term expected rate of return on plan assets

3.1%

Rate of salary increase
Defined-benefit corporate pension plan

3.6%

Lump-sum retirement plan

3.5%

42

THE YAMANASHI CHUO BANK 2015

42

(Stock options and other related information)
1. Accounting line item and the amount of stock options charged as expenses(Millions of yen)
Consolidated FY2014(From April 1, 2013 to March 31, 2015)
General and administrative expenses¥35

2. Description of stock options / Changes in the size of stock options(1) Description of stock options
2014 Stock Options
Category and number of people to whom stock options are granted

The Bank’s directors (excluding outside directors): 11

Type and number of shares granted as stock options

Common stock: 80,300 shares

Date on which stock options were granted

July 25, 2014

Vesting terms and conditions

Vesting terms and conditions have not been prescribed

Vesting period

Vesting period has not been prescribed

Exercise period

July 26, 2014 to July 25, 2044

Note: The number of stock options is presented after converting to the number of shares.

(2) Changes in the size of stock options
The following describes changes in the size of stock options that existed during the fiscal year ended March 31, 2015. The
number of stock options is converted into the number of shares.
①

Number of stock options
2014 Stock Options

Stock options which are not yet vested (shares):
As of March 31, 2014―

Granted80,300Forfeited―

Vested80,300

Balance of stock options not vested―

Stock options which have already been vested (shares):
As of March 31, 2014―

Vested80,300Exercised―

Forfeited―

Balance of stock options not exercised②

80,300Per share price information2014 Stock Options

Exercise price (Yen)1

Average price per share upon exercise (Yen)―Fair value per share at the grant date (Yen)

443

43

THE YAMANASHI CHUO BANK 201543

3. Method for estimating the per share fair value of stock options
During the fiscal year ended March 31, 2015, the fair value per share with respect to 2014 stock options was estimated asfollows:(1) Evaluation technique used to estimate the fair value per share: Black-Scholes method(2) Main numerical and estimation methods
2014 Stock Options
Stock price volatility (Note 1)

31.9％

Projected residual period (Note 2)

24 months

Projected cash dividends (Note 3)¥6.50/share

No risk interest rate (Note 4)

0.07％

Notes:
1. Stock price volatility is calculated based on the stock price performance for the period (weekly from the week of July 16, 2012 to the weekof July 21, 2014) that corresponds to the projected residual period.
2. The projected residual period is estimated based on the average period in office of directors (excluding outside directors) who have retiredin the past.
3. Projected cash dividends are based on cash dividend results for the fiscal year ended March 31, 2014.
4. The no risk interest rate is the yield on government bonds for the period that corresponds to the projected residual period.

4. Estimation method for the number of stock options vested
Because it is difficult to reasonably estimate the number of stock options that will be forfeited in the future, the number of stock
options that has actually been forfeited is solely reflected for the stock options that have already been vested.

(Relating to tax effect accounts)
1. The tax effects of significant temporary differences and tax loss carry-forwards which resulted in deferred tax assets andliabilities are as follows:(Millions of yen)
Consolidated FY2014(From April 1, 2013 to March 31, 2015)
Deferred tax assets:
Allowance for possible loan losses¥4,381

Net defined benefit liability

2,944

Losses on investment securities

1,712

Depreciation

1,072

Other

2,418

Sub-total

12,529Valuation allowance(6,004)

Total deferred tax assets

6,524

Deferred tax liabilities:(31,654)

Unrealized gains on available-for-sale securities

(722)

Other
Total deferred tax liabilities(32,376)

Net deferred tax assets (figures in parentheses represent liabilities)(25,851)

44

THE YAMANASHI CHUO BANK 201544

2. A reconciliation between the normal effective statutory tax rate and the actual effective tax rate reflected in the accompanying
consolidated statements of income is as follows:
Consolidated FY2014(From April 1, 2014 to March 31, 2015)
Normal effective statutory tax rate

35.2％

Valuation allowance(5.1)％

Income not taxable for income tax purposes(2.7)％

Expenses not deductible for income tax purposes

0.3％

Reduction in fiscal year-end deferred tax assets due to tax rate changes

3.7％

Other—net

0.1％

Actual effective tax rate

31.5％

3. Revision of amount of deferred tax assets and deferred tax liabilities due to change in corporate income tax rate
The “Act for Partial Revision of the Income Tax Act, etc.” (2015, Law No. 9) was announced on March 31, 2015 and thecorporate income tax rate was lowered from the consolidated fiscal year starting on or after April 1, 2015. Accordingly, thestatutory effective tax rate used in calculating deferred tax assets and deferred tax liabilities lowered from the previous 35.2%
to 32.8% for temporary differences which are expected to be dissolved in the consolidated fiscal year starting April 1, 2015, andwill be lowered further to 32.1% for temporary differences which are expected to be dissolved in the consolidated fiscal year
starting April 1, 2016. Due to the change in the tax rate, deferred tax assets decreased ¥560 million, deferred tax liabilities
decreased ¥3,129 million, valuation difference on available-for-sale securities increased ¥3,059 million, and income taxes
deferred increased ¥489 million.

(Segment information by type of business)【Segment information】
Segment Information is not shown in these statements, since the banking business is the only reportable segment.
【Related information】
1 Information for service segment(Millions of yen)
Loans
Ordinary income from
customers

Securities investment¥21,779

Other¥16,782

Total¥11,774(Note) Instead of the net sales of a non-financial company, ordinary income in gross is indicated.

2 Information for geographic areas
Not describe.
3 Information about major customers
Not describe.
【Information about impairment loss of fixed assets in segment】
Not describe.
【Information about the amortization of goodwill and unamortized balance by reportable segment】
Not applicable.
【Information about the gain recognized on negative goodwill by reportable segment】
Not applicable.

45

THE YAMANASHI CHUO BANK 201545

¥50,335

【Related-Party Transactions】
1. Related-party transactions involving directors, corporate auditors and major stockholders (individuals only) of the Bank.
(Millions of yen)
Relationship

Statutory
auditorDirector’s
consortName

Toshihito
FuruyaMayumi
Nagasaka

Address――

Votingrights[%]

Details of
businessrelationship

Corporate
auditor of theBank,simultaneously
serving as legal
advisor

0.01

Lending
Compensation
for legal
advisory
services

Director’s consortof the Bank―

Paid-in
capitalPosition――

Lending

Transactions

Transaction Accounting Year-end
amountnamebalanceLending
Interest
incomeLegaladvisoryfee paid
Lending
Interest
income

―

Loans

127

3

―

―

4

―

―

―

Loans

36

0

―

―

Note: The conditions as applied to general parties with which the Bank enters into transactions are applied.

(Per Share Information)(Yen)
Consolidated FY2014(From April 1, 2014 to March 31, 2015)
Net assets per share¥1,367.58

Net income per share

50.38

Diluted net income per share

50.29

Note 1: The basis for calculating net income per share and diluted net income per share is presented as follows.
(Millions of yen)
Consolidated FY2014(From April 1, 2014 to March 31, 2015)
Net income per share
Net income¥8,753

Net income attribute to common stock¥8,753

Average balance of common stock (thousands)

173,721

Diluted net income per share
Increase in the number of common stock (thousands)

320

New share subscription rights (thousands)

320

Note 2: As described in “Changes in Accounting Policies,” Accounting Standard for Retirement Benefits (ASBJ Statement No. 26,

May 17, 2012) and Guidance on Accounting Standard for Retirement Benefits (ASBJ Guidance No. 25, March 26, 2015) havebeen applied since the beginning of the consolidated fiscal year under review with respect to the provisions contained inparagraph 35 of Accounting Standard for Retirement Benefits and paragraph 67 of Guidance on Accounting Standard for
Retirement Benefits and the Bank follows the transitional provisions set forth in Article 37 of the Accounting Standard for
Retirement Benefits.
As a result, at the beginning of the fiscal year under review, net assets per share decreased ¥1.3, while net income per shareand diluted net income per share increased ¥0.27 and ¥0.28, respectively.

(Important subsequent events)
Not applicable.

46

THE YAMANASHI CHUO BANK 201546

Corporate Data(as of March 31, 2015)

Common Stock: ¥15,400 million

Breakdown of Stockholders

Number of Shares :	Authorized 398,000,000 shares
Issued		
174,915,000 shares

Financial institutions 71,634
Securities companies
1,751
Other corporations
33,100Foreigners
20,504
Individuals and others 46,744

Total

173,733
sharesNumber of
Stockholders: 5,794

Stock Listing: First Section of the Tokyo Stock Exchange

Transfer Agent: Mitsubishi UFJ Trust & Banking Corporation

41.23%
1.01%
19.05%
11.80%
26.91%*Shares (1 trading unit: 1,000 shares)
Note: The category “Individuals and others” contains treasury
stock in the number of 2,631 trading units of shares.

Major Stockholders
Name

Number of shares held
(thousands)

Percentage of
all shares issued (%)

10,181
7,169
6,047
5,821
3,676
3,265
3,000
3,000
2,977
2,657
47,794

5.82
4.09
3.45
3.32
2.10
1.86
1.71
1.71
1.70
1.51
27.32

Japan Trustee Services Bank, Ltd. (Trustee Account)
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Meiji Yasuda Life Insurance Company
The Yamanashi Chuo Bank, Ltd. Employees’ Stockholdings
The Master Trust Bank of Japan, Ltd. (Trustee Account)
CBNY DFA INTL SMALL CAP VALUE PORTFOLIO
Tokio Marine & Nichido Fire Insurance Co., Ltd.
Fukoku Mutual Life Insurance Company
Teikyo University
FUJI KYUKO CO., LTD.
Total

Yamanashi Chuo Bank’s Share Price and Trading Volume on the Tokyo Stock Exchange
2,000
1,500

Tokyo Stock Price Index (TOPIX)

1,000
500

9,000
6,000

700
600
500
400
300
200

Yamanashi Chuo Bank’s share price (yen)Trading volume (thousands)

3,000
0

Apr.
2013

May

Jun.

Jul.

Aug.

Sep.

Oct.

Nov.

Dec.

Jan.
2014

Feb.

Mar.

Apr.

May

Jun.

Jul.

Aug.

Sep.

Oct.

Nov.

Dec.

Jan.
2015

Feb.

Mar.

Consolidated Subsidiaries
Tokyo Stock Price Index (TOPIX)
Name

1165.13
Yamanashi Chuo Guarantee
Co., Ltd.
1135.78
Yamanashi Chugin Lease Co.,Ltd.
1133.84
Yamanashi Chugin DC Card
Co., Ltd.
1131.701106.05Consulting Co., Ltd.
Yamanashi Chugin Management
1194.101194.26
1258.66
1302.291220.64
1211.66(yen)
Yamanashi
share price
Chuo
Capital Chuo Bank’sYamanashi
Bank’s share (%)(Millions of yen)

452
409
419
392
389
408
414
438
458
THE YAMANASHI CHUO 438
BANK 2015
47
419

20
20
20
200

99.8
61.0
67.5
87.5

Trading volume (thousands)

Lines of business

6379
Loan guarantees
5570
Leasing4207
Credit cards 3916
2094
Consulting, economic
research
2183
3045
2742
3498
2652
3849

Board of Directors and Corporate Auditors(as of July 1, 2015)

ChairmanManaging Directors

Directors

Standing Corporate Auditors

Toshihisa Ashizawa

Tadashi Kato
Kimihisa Tanabe
Tatsuyuki Miyake

Fumiaki Asakawa
Kunihito Inoue
Takeshi Nakajima
Kazuhiko Kitta
Hisanobu Yoshizawa
Hirohiko Yanada
Michio Masukawa
Riyo Kano

Takehiko Sano
Masaki Saito

President

Nakaba Shindo
Senior Managing Director

Mitsuyoshi Seki

Corporate Auditors

Magozaemon Takano
Toshihito Furuya
Koichiro Horiuchi

Organization(as of July 1, 2015)

Annual General Meeting of Shareholders
Corporate Planning
Board of Directors

Chairman

Personnel Division
Planning and
Administration

Corporate
Administration

Management Control Division
General Affairs Division

President
Deputy President
Senior Managing Director

Credit Screening

Credit Screening Division

Financial Markets

Financial Market Division
Business Promotion Division

Managing Directors
Business Planningand Control
Department

Directors
Non-Standing Director

Corporate Planning DivisionMarketing(in charge of International Division)

Corporate Sales Promotion Division
Retail Sales Promotion Division
Operation Administration Division

Operations

Systems Administration Division

Board of Corporate Auditors
Central Operations Division
Standing Corporate Auditors
Corporate Auditors

Secretariat

Office of Corporate Auditors

Tokyo Liaison Office
Auditing Division

Auditing

Branches

THE YAMANASHI CHUO BANK 201548

Internal Control and Risk Management
Enhancing corporate governanceTo fulfill its mission, the Bank has built a stronger internal control

Yamanashi Chuo Bank is very aware of its social responsibility asa banking institution and its public-service mission in that role.

system and organizational structure to improve its management

Accordingly, it aims to secure the trust of the community it serves by

efficiency. All staff are committed to maintaining high ethical stan-such means as maintaining sound management and assuring trans-

dards, and to enhancing corporate governance through ongoingparency of management, seeking constantly to contribute to theinitiatives and the active disclosure of corporate activities.

prosperity of the local region and the development of its economy.

The structure of the internal control system
General Meeting of Stockholders
Board of Corporate Auditors

Board of Directors
ChairmanStanding Corporate Auditors

President

Non-Standing Director

Deputy President

Corporate Auditors

Senior Managing Director

Office of Corporate Auditors

Board of Managing Directors

Managing Directors
Directors

Independent Auditors
Auditing Division

Compliance Committee Risk Management Committee
Head Office Divisions
All Branches

Risk management

Group Companies

rights and enhancement of user convenience.
At the Yamanashi Chuo Bank, we assign a high management

The operating environment for financial institutions is changing

priority to compliance. To maintain and reinforce the relationshipconstantly, and banks consequently face a diversifying array ofof trust we enjoy with our customers, we have set up a complianceincreasingly complex risks. To secure a steady earnings stream into

management system headed by the Compliance Committee, andthe future, it is therefore essential for the Bank to accurately ascer-

we work constantly to further strengthen our compliance stance.

tain the monetary value of the various risks involved in the conduct

To supervise and monitor compliance-related matters at all theof its banking operations, and then to continuously monitor andBank’s offices, compliance officers have been appointed in eachmanage those risks.

department at the Bank’s Head Office and at each branch. We

The risks to which the Bank is exposed are broadly categorized

conduct the Compliance Program every fiscal year to establish an

for management purposes as credit risk, market risk, liquidity

effective compliance framework.

risk and operational risk. To ensure integrated risk appraisal and

The program lays out concrete steps to realize complianceanalysis, the Bank’s ALM committee and the Risk Managementwith the provisions of particular laws and regulations, as well as

Committee assess the possible impact of risk materialization on thecompliance training courses. The staff at the Bank’s Head Office

Bank’s operations and work out countermeasures. The Bank uses a

departments and its branch offices are working together to ensure

system of risk-adjusted capital allocation to ensure the soundness

adequate compliance throughout the Bank. We intend to furtherof banking operations and effective use of capital.

reinforce our compliance stance in the coming years.

ComplianceWith regard to compliance, we believe that our duty is not solely toabide by the law, but also to ensure the strict observance of social
norms, to meet the demands and expectations of the broader
community. We are committed to ensuring protection of customer
THE YAMANASHI CHUO BANK 201549

20-8, Marunouchi 1-chome,
Kofu, Yamanashi 400-8601, Japan
Phone: 055-233-2111
URL: http://www.yamanashibank.co.jp/