AOGIN Annual Report 2021
The Aomori Bank, Ltd.

AOGIN Annual Report 2021

AOGIN Annual Report 2021
ProﬁleAomori Bank has been serving its customers for more than 140 years and is
known aﬀectionately in the area as “AOGIN"
The Aomori Bank, Ltd. has engaged in sound business practices since its founding as the 59th National Bankin 1879. In 1943, ﬁve banks based in Aomori Prefecture subsequently merged to form the present-day
Aomori Bank. Since this time, as the region's leading ﬁnancial institution, we have continued to show strong
growth. In April 2019, we formulated our 16th three-year medium-term business plan. Based on this plan,we aim to increase corporate value and to continue growing together with the local community.
The Aomori Bank, Ltd.

●Company Name

●Date of Establishment●Paid-in Capital

October 1, 1943

19.562 billion yen●Loans and Bills Discounted●Head Oﬃce

9-30, Hashimoto 1-chome, Aomori 030-8668, Japan●Date of Foundation

January 20, 1879

●Number of Outstanding Shares

1.8563 trillion yen●Number of Employees

20.512 million shares●Capital Adequacy Ratio

1,216●Web URL

https://www.a-bank.jp/●Number of Oﬃces90

3.6664 trillion yen●Credit Rating A- (Japan Credit Rating Agency, Ltd.)●Total Assets

9.09% (Domestic Standard)Contents▼Greeting …………………………………………………… 1▼Non-consolidated Financial Statements …… 11〜14▼The 16th Medium-Term Business Plan …………… 2▼Board of Directors and Executive Oﬃcers ………… 15▼AOGIN s CSR Initiatives ………………………… 3〜7▼Organization …………………………………………… 15▼Share in Aomori Prefecture and Loan Assets ……… 8▼Corporate Data ………………………………………… 16▼Financial Highlights ………………………………… 9〜10

Greeting
I would like to thank all of you for your continued support. I would also like to express my deepest sympathies to those whohave been aﬀected by the COVID-19 pandemic.
I am pleased to present "AOGIN NOW - a Brief Disclosure Document for the Fiscal Year Ended March 2021.” I invite you to readthrough this booklet and sincerely hope that it will deepen your understanding of the bank.
Over the course of ﬁscal 2020, the economy of Aomori Prefecture, and that of Japan as a whole, faced many challenges.
Personal consumption throughout the country declined as coronavirus emergency measures were enacted and export
growth slowed with the spread of infections abroad. Locally, economic recovery has slowed as the number of persons Infectedwith COVID-19 has continued to rise and as personal consumption and the number of new job openings have continued tofall. Under these circumstances, the Aomori Bank Group considers the health of the local economy and local employment tobe a top priority, and is working diligently to provide prompt and ﬂexible ﬁnancing to our customers and local businesses.
AOGIN and the other major bank in Aomori Prefecture, the Michinoku Bank, Ltd., have reached a basic agreement on the
integration of our business operations, the aim of which is to maximize the strengths of both groups. Regardless of the
ﬁnancial framework that emerges, the two banks will work together to create a new group that can contribute to the growthand development of the region and the well-being of our customers.
The two banks, in order to create shared value with the region and with our customers, in addition to building a sound andeﬃcient management base through enhanced rationalization and eﬃcient management, will continue to expand ourbusiness operations by taking advantage of our regional advantages and by strengthening our ﬁnancial intermediaryfunctions through the integration of our know-how and our information and networks.
The management and employees at AOGIN, together with the local community, will work to overcome this challenging
economic environment in order to bring about a happy and prosperous future. We will continue these eﬀorts so that our
future stakeholders and the children who will bear the futures of our hometowns will say, "Thank you for that time."
We look forward to your continued support and patronage.

Susumu Narita, President

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AOGIN Annual Report 2021

The 16th Medium-Term Business Plan

The 16th Medium-TermBusiness Plan

〜Change the Future〜

Three Years that will Genuinely Change the Future of our Community, our Customers, theBank, and our employees
Community / Customers

Bank

Employees

Conﬁdence of the community andcustomers to consult with AOGIN
ﬁrst and expect good results

Aim of becoming a consulting
group that operates beyond theframework of conventional banks

An active, exciting and energetic
workplace culture[Plan Period] April 2019 to March 2022

VisionBe the Only One Consulting Bank that creates a prosperous andhappy future together with the community and our customers

Basic Strategies

Ⅰ.Practice community- and customer-ﬁrst consulting
Ⅱ.Improve human resource andorganizational capabilities

Ⅲ.Enact business reforms

Management Targets
Non-consolidated net
incomeConsolidated net
incomeRate of non-interest
incomeConsolidated return on
equity (ROE)¥3.0 billion or above¥3.2 billion or above

15 ％ or above

3 ％ or above(during the plan period)(during the plan period)(FY2021)

1.
2.
3.

(FY2021)*5% from a medium- to long-term
perspective

Number of new consulting
clients in the prefecture+1,500 or above(cumulative total during theplan period)

Rate of non-interest income = (Core gross business proﬁt - Net interest income) / Core gross business proﬁt * Non-consolidated basis
ROE = Net income÷Shareholders' equity
The number of new consulting clients in the prefecture is the total of the "Net increase in the number of debtors in the prefecture as of the end ofﬁscal 2018" and the "Non-debtors in the prefecture that concluded a solution agreement with the bank (including Group companies)."2

AOGIN Annual Report 2021

AOGIN's CSR Initiatives
Please visit the following URL for our CSR report (Aomori Bank website → About Aomori Bank → CSR Initiatives)
https://www.a-bank.jp/contents/guide/aboutabank/csr/report/index.html

Creation of the FutureEver since our founding, we at AOGIN have maintained a hope for the “enduring development of Aomori Prefecture and theopportunity to grow with it together." Going forward, we will continue to engage with all of our stakeholders and generate mutual
value for the future, while also coming to grips with environmental, social, economic and other issues that aﬀect our region.

<AOGIN CSR> Activity Policies
Following its <AOGIN CSR> Activity Policies, AOGIN aims to create mutual value with our stakeholders.

Naturalenvironment[Activity Policy 1] Pass the wealth of our hometowns on to future generations[Activity Policy 2] Contribute to the sustainable growth of the local community

Local
community

Customers

AomoriBank[Activity Policy 3] Help our stakeholders build their future[Activity Policy 4] Create a fulﬁlling workplace[Activity Policy 5] Improve corporate value

Employees

Shareholders/
Investors

Our Approach to ESG and SDGs
(1) AOGIN recognizes the importance of initiatives for tackling environmental, social and governance (ESG) issues
and consider these to be of the utmost importance. We are committed to actively promoting ESG goals and SDGs
through our CSR business activities, activities that also aim to create mutual value.
(2) AOGIN provides ESG information in our CSR Report (available on our website). However, we use SDGs, which area framework common to countries throughout the world, when discussing social sustainability.

Activity Policy 1: Passing on the wealth of our hometowns to future generations
Deployment of road-marking paint as an eﬀective use for scallop shells
We used Shell Marker (*), a paint made from recycled scallop shells, tomark the white lines in the parking lots of our Yaeda, Kominato andTsukuda branches. In May 2021, we also used it in Aomori City in our
Matsubara-Dori and Hamadate branch parking lots.
The scallop industry is a key industry in Aomori Prefecture. However,the disposal of the large volume of shells and other materials thatremain after processing has become an issue, due to the environmental
impact and disposal costs. Shell Marker is an eco-friendly compositethat contributes to the reduction of industrial waste and protection of
the natural environment, while at the same time maintaining the samelevel of eﬀectiveness as similar products on the market.

(*) Shell Marker: A product approved for the “Letʼs Buy New Products Made in
Aomori” campaign, introduced by the prefecture in October 2016. Manufacturer:
Daikan-kogyo Corporation (Aomori City)

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AOGIN Annual Report 2021

Activity Policy 1: Passing on the wealth of our hometowns to future generations
The use of certiﬁed eco-friendly paper and the elimination of plastic shopping bags
We used paper made from forest products that have received certiﬁcation (*2) as being
sustainably grown and harvested for the "Shareholder Beneﬁt Catalog" that is sent to AOGIN
Yū-Yū Club (*1) shareholders as one of their beneﬁts. It was also used for the "Notiﬁcation of theConvening of the General Shareholders' Meeting," the "AOGIN Annual Report," and thecorrugated cardboard boxes that we use for paper product recycling. In doing so, we are doing
our part to support forest conservation and the forestry industry as well as help curb illegal
logging and other environmentally destructive activities.
In April 2021, we discontinued the distribution of over-the-counter plastic shopping bags.
Instead, we have prepared eco-friendly bags made from certiﬁed paper as part of our eﬀort tocontribute to the reduction of plastic waste and the realization of SDGs.
(*1) Shareholder special beneﬁt plan, "AOGIN Yū-Yū Club""AOGIN Yū-Yū Club" is a shareholder beneﬁt plan established in July 1997 to show ourgratitude to our shareholders. In this plan, special products from Aomori Prefecture are
oﬀered to shareholders who have held their shares for at least one year, with the yenamount that can be ordered from the catalogue determined by the number of shares
held as of March 31, 2021.
(*2) Forest certiﬁcation: A certiﬁcation system, carried out by an outside auditing body,that certiﬁes a companyʼs sustainable management of forestry resources.

Activity Policy 2: Contributing to the sustainable growth of the local community
AOGIN's "Creating the Future" ‒ an SDGs private placement bondAs part of our commitment to the local community and with the goal of realizing asustainable society by promoting SDGs throughout the region, we have updated ourprevious CSR private placement bond (a private placement bond with a donation option).
Since December 2018, we have administered the "AOGIN 'Creating the Future' SDGs
Private Placement Bond." When this private placement bond is issued, AOGIN willcontribute an amount equivalent of up to 0.2% of the issued bond, which then goes toaddress the 17 SDGs through donations of materials to schools, child welfare facilities,
local governments, and other bodies to which the issuing company wishes to donate.
In addition, since October 1, 2020, we have administered the "AOGIN 'Supporting
Healthcare Workers' SDGs Private Placement Bond." When this bond is issued, we
contribute an amount equivalent of up to 0.2% of the issued bond to the Aomori Medical
Association, which is used to support healthcare workers who are serving patients amidst
the growing COVID-19 pandemic.

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AOGIN Annual Report 2021

Activity Policy 2: Contributing to the sustainable growth of the local community
Crowdfunding initiatives for regional revitalization
We have utilized the crowdfunding platforms "Makuake," "Readyfor," and"CAMPFIRE" to support regional revitalization projects. The following are the main
projects introduced in the second half of ﬁscal 2020.

・"Watching over Hirosaki for 368 years̶Calls for support for the
restoration of the Saishō-in Temple Niō Guardians ̶"- This aim of this project was to fund restoration work on the Niō Guardian statues,
the oldest statues in Aomori. These statues were placed at the entrance of theKongōzan Saishō-in Temple (Shingon sect) in Hirosaki 368 years ago. Saishō-in itself
dates back over 500 years to its original construction in 1532. This fundraisingproject reached its target with the support of many donors.

・"Enjoy the taste of Singapore at home̶The ultimate bak kut teh
soup kit made in Takko with the aroma of garlic̶"- The goal of this project was to raise the proﬁle of bak kut teh soup made with garlicgrown in Takko, a town located in the eastern part of Aomori Prefecture that is wellknown for the garlic that is grown there. Takanao Igarashi,the president of Aoimori
Trading, moved the company to Takko in order replicate this iconic Singaporean
dish with an infusion of Takko garlic, as well as to realize his desire to contribute to
the revitalization of the Takko area. The contributions of many donors helped thisproject meet its target.

Activity Policy 3: Helping our stakeholders build their future
Support for the expansion of Mutsu Bay scallop exports
In March 2021, we collaborated with the Aomori branch of the Japan FinanceCorporation to provide ﬁnancing for the Yamajin Co., Ltd. to enable it to upgrade its
automated storage freezers.
Established in 1973, Yamajin is one of the leading scallop processors in Aomori
Prefecture. It processes scallops raised in Mutsu Bay into frozen boiled scallops,
frozen raw scallops and frozen breaded scallops for deep-frying. It ships out nearly
2,500 tons of product a year.
Although the company continued to export processed scallops to the EU, the exportof breaded scallops to France has been held up largely due to COVID-19. However,since scallops from Mutsu Bay are of the highest quality, the company believes
demand will increase when the situation returns to normal. It has therefore been
preparing to resume these exports to the EU.
Speciﬁcally, Yamajin will build an automated storage freezer adjacent to its mainbuilding that will be attached to the processing facility, a facility that obtained EU-HACCP certiﬁcation in 2018. The next aim of Yamajin is to obtain EU-HACCP
certiﬁcation for the entire production process̶from raw material storage to processing and product storage̶which would enable the company to export
all its products to the EU. Previously, the company had been leasing a freezer in a warehouse in Hachinohe for the storage of raw materials and ﬁnishedproducts, which has been an issue in obtaining the certiﬁcation. This investment, however, will solve this issue.

5

AOGIN Annual Report 2021

Activity Policy 3: Helping our stakeholders build their future
Responses to the spread of Covid-19
We are working to prevent the spread of COVID-19 by prioritizing the health and safety of our customers and employees. We have also established aconsultation desk to provide prompt ﬁnancial services for our customers, including support for business ﬁnancing and consultations for business
improvement.

Business consultation help desk for COVID-19 related issues at 72 branches (70 locations) (as of March 31, 2021)* Our oﬃce also provides consultations for individual customers regarding loan payments and other issues.

Initiatives for agribusinessWe have established a "Agri-Partner Team," made up of agribusiness specialists in
our Business Partner Department, to bolster our eﬀorts to promote Aomori
Prefecture's core industries of agriculture, forestry and ﬁsheries.
In April 2021, AOGIN co-hosted, with Aomori Prefecture and the city of Hirosaki, ademonstration at Hirosaki Apple Park of labor-saving farm implements that cancollect pruned tree branches and spread fertilizer.
This demonstration was planned to show ways, given the challenges presented
by an aging farming population and increasing labor shortages, that labor inputs
can be reduced by mechanizing springtime apple orchard work. Another aim was
to show how technological advances can support farm management
improvements through the expansion of scale.
Around 70 farmers from Hirosaki and other areas attended the demonstration.
Staﬀ from the machine manufacturers, Yamabiko Corp. and Shirakami Agri Service
Inc., explained how the implements worked and then demonstrated thecollection of pruned branches and the application of fertilizer using a tractor anda riding mower equipped with a special implement designed for these tasks.

Launch of the management support platform Aogin Big AdvanceIn April 2021, we launched the management support platform Aogin Big Advance (*), the aim of which is to help local
business owners deal with some of the operational challenges they face.
Aogin Big Advance is a one-stop service that oﬀers a diversity of content through its membership site on the web. It is a
one-stop service that can help local businessmen, among other things, expand sales channels and improve operationaleﬃciency. By introducing this service, we are continuing our eﬀorts to contribute to the growth of local businesses.

(*) Aogin Big AdvanceThis is a digital platform service based on Big Advance, developed by Kokopelli Inc. It oﬀers business matching between over 900 major
companies and ﬁnancial institutions that participate in the platform. It also provides one-stop solutions for management issues faced by
local businesses, such as how to expand sales channels and improve operational eﬃciency. It also supports the creation of newtechnologies, services, and new businesses in the community through open innovation programs with large companies.

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AOGIN Annual Report 2021

Activity Policy 4: Creating a fulﬁlling workplace
Meetings between management teams and employees to exchange ideas
We have been holding meetings between employees and management
teams every year since 2007. These meetings provide opportunities for
management to convey the Bankʼs management policies and sales
strategies as well as to receive feedback from participating employees. In
2020, discussions were held with employees from all branches at 48
locations; approximately 900 employees participated. Going forward, we
will continue to work to build good relationships within the Bank throughhonest and open discussions between management and employees.

Introduction of a ﬂextime system
In April 2020, we introduced a ﬂextime system (*) to improve productivity by reducing total working hours and to enhance the work-life balance of ouremployees. The introduction of this system has enabled our employees to distribute their working hours in such a way that makes it possible for them tocarry out their work for the Bank in an eﬃcient way while also allowing for a diversity of workstyles and individual living situations such as those that involve
childcare and elderly care responsibilities.
(*) Flextime
A system that allows employees to determine their working hours and their starting and ﬁnishing times for each workday, set within a predetermined range of total working hours for acertain period (one month).

Activity Policy 5: Improving corporate value
Measures to prevent money laundering and the ﬁnancing of terrorist activities
We consider the adoption of measures to prevent money laundering and the ﬁnancing of terrorist activities to be one of our most critical management
issues. We also recognize the need to bolster our capacity to do so. We are therefore working to reinforce our internal management framework in order toensure that money laundering and other illegal activities are prevented in accordance with the “Act on Prevention of Transfer of Criminal Proceeds” andthe “Foreign Exchange and Foreign Trade Act.”
Furthermore, we have clariﬁed our procedures for the prevention of money laundering and other such illegal activities and have established a “Money
Laundering and Terrorist Financing Prevention Policy” to provide the response framework and management system necessary to align with the “Money
Laundering and Terrorist Financing Prevention Management Regulations.”
We also periodically provide in-house training sessions that deal with these issues, the aim of which is to improve the Bankʼs eﬀectiveness as well as ourknowledge of the practices that prevent money laundering in the Bankʼs daily operations, such as bank transfers and account openings.
We will strengthen our eﬀorts to prevent money laundering and the ﬂow of funds to criminal organizations and terrorists in line with the “Guidelines for
Anti-Money Laundering and Combating the Financing of Terrorism,” published by the Financial Services Agency of Japan.

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AOGIN Annual Report 2021

Share of Loans and Assets in Aomori Prefecture
Share of deposits and loans in the prefecture

Ratio of deposits and loans
in Aomori Prefecture(End of March 2021)(End of March 2021)

Thanks to the strong support of our customers, we have maintained the

The Bank's ratio of deposits within Aomori Prefecture was 96.4%, most of

top share in both deposits and loans in Aomori Prefecture. This is the result

which were made by customers in Aomori Prefecture, our home region.

of having retained customer trust for the more than 140 years since ourMeanwhile, the ratio of loans made in Aomori Prefecture was 78.6%.

founding. We will continue to strive to be a trusted bank．

deposits

Shinkin Bank (cooperative regional ﬁnancial
institutions) and credit cooperatives

From outside the prefecture(¥102.5 billion)

17.4%

City banks,regional bank,second-tierregional banks

Shinkin Bank (cooperative
regional ﬁnancial institutions)and credit cooperatives

Ratio of deposits
received in Aomori
Prefecture

AOGIN
46%

Share of deposits
in AomoriPrefecture

From inside the prefecture

96.4%(¥2.7909 trillion)

Total balance of deposit ¥2.8935 trillion

36.5%

loans

For outside theprefecture(¥395.5 billion)

13.3%

City banks,regional bank,second-tierregional banks

AOGIN
45.4%

Ratio of loans
made in Aomori
Prefecture

Share of loans
in AomoriPrefecture

For inside the prefecture

78.6%(¥1.4608 trillion)

41.1%

Balance of loans ¥1.8563 trillion※Excluding Japan Post Bank Co. Ltd. workers' credit
unions, agricultural cooperative associations, andgovernment ﬁnancial institutions

Claims disclosed subject to the Financial
Revitalization Law(End of March 2021)

Securing claims disclosed subject to the
Financial Revitalization Law(End of March 2021)

The amount of loans that were disclosed subject to the Financial Revitalization

Of the amount of loans disclosed, excluding performing claims, 81.0%

Law at the end of the term under review decreased by ¥3.2 billion from the end of

were secured by reserves, collateral, etc.

the previous term to ¥24.4 billion. This change was due to an increase in doubtful
claims. The ratio of the amount of loans disclosed against the overall credit rose by
0.15% from the end of the previous term to 1.29%.
Claims requiring supervision(Unit: ¥100 million; %)Doubtful claims

2000Collateralcoverage ratio

Bankrupt andsubstantiallybankrupt claims

40

40

100.0

Doubtful claims

165

136

82.5

Claims requiringsupervision

37

20

54.0

Total

244

197

81.0

1.50

1.14%
0.96%

244
211

172

1.29%

103

1.00

37

33

30
100

Securedamount(Unit: ¥100 million; %)

400

300

Claimsbalance

Bankrupt claims

Ratio of disclosed claims towards the balance of loans

136

165

38

41

40

End of March2019

End of March
2020

End of March
2021

0.50

0.00

* The listed amounts are abbreviated to the indicated unit. The component ratios, rates of increase or decrease, and other percentages are abbreviated to the indicatednumeric values.

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AOGIN Annual Report 2021

Financial Highlights
Deposits

Loans

The total balance of deposits at the end of March 2021, including

The total loan balance at the end of March 2021 was ¥1.8563 trillion (upnegotiable certiﬁcates of deposit, was ¥2.8935 trillion (up 9.0% from the

2.8% from the end of the previous ﬁscal year) due to an increase in loans to

end of the previous ﬁscal year). This was due to the favorable growth ofgeneral corporations within the prefecture and an increase in personal

personal and corporate deposits.

loans, largely for home mortgages.

The balance of assets under custody at the end of March 2021 was ¥247.8
billion (up 0.7% from the end of the previous ﬁscal year). This was due toan increase in investment trusts that resulted from improvements in themarket environment, this despite a drop in public bonds handled by the
Bank.

Total balance of deposits

Balance of loans
Balance (¥100 million)

Balance (¥100 million)
20,00030,00028,935

18,56318,00028,00017,62426,00026,15026,52318,05316,00000
End of March 2019 End of March 2020

End of March 2021

End of March 2019 End of March 2020

Balance of deposits from individual customers

End of March 2021

Balance of SME loans (excluding loans to individual customers)

Balance (¥100 million)

Balance (¥100 million)
6,000

20,0005,569
18,00016,0005,000

18,356

16,743

5,108

5,191

17,1554,000

00End of March 2019 End of March 2020

End of March 2019 End of March 2020

End of March 2021

Balance of assets under custody

End of March 2021

Balance of customer loans
Balance (¥100 million)

Housing loan balance (¥100 million)

Balance (¥100 million)

2,600

5,500

2,581
2,400

2,460

2,478

5,000

2,200

5,001
4,698

4,500

4,508

4,399
2,000

4,194

4,000

3,914
0

0
End of March 2019 End of March 2020

End of March 2019 End of March 2020

End of March 2021

End of March 2021

* The listed amounts are abbreviated to the indicated unit. The component ratios, rates of increase or decrease, and other percentages are abbreviated to the indicatednumeric values.

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AOGIN Annual Report 2021

Proﬁt and Loss
Core net business proﬁt increased ¥19 million year-on-year to ¥4 billion. Although net interest income fell, due to a decrease in fund management income,this was oﬀset by an increase in business proﬁts as well as a reduction of expenses. Ordinary proﬁts also increased by ¥1.1 billion year-on-year to ¥2.9 billion
due to an improvement in gains on investment securities.
net income also increased by ¥0.9 billion year-on-year to ¥2.1 billion, due in part to an extraordinary gain resulting from the merger by acquisition of a subsidiary.

Core net business proﬁt

Net business income

This is the most accurate indicator of proﬁt from the Bank's coreThis is an indicator of earning power from the Bank's core businesses,

businesses.

which include deposits, loans, and currency exchange, etc.
60

60

45

40

40

40

40

40
33

20

Balance (¥100 million)

30

20

Balance (¥100 million)0
End of Fiscal Year
March 2019

End of Fiscal Year
March 20200
End of Fiscal Year
March 2019

End of Fiscal Year
March 2021

End of Fiscal Year
March 2020

End of Fiscal Year
March 2021

Ordinary proﬁt

Net income

Net operating proﬁt is derived by adding or subtracting gains or losses on

Net income is derived by adding or subtracting extraordinary items, taxes,

shares, bad loan write-oﬀ costs, etc.

etc. to or from ordinary proﬁt.

60

60

47

40

40

32

29

20

20

21

17
Balance (¥100 million)

12
Balance (¥100 million)0
End of Fiscal Year
March 2019

End of Fiscal Year
March 20200
End of Fiscal Year
March 2019

End of Fiscal Year
March 2021

End of Fiscal Year
March 2020

End of Fiscal Year
March 2021

Capital adequacy ratio

Rating

The capital adequacy ratio at the end of March 2021 increased 0.04% fromThe Japan Credit Rating Agency, an objective and authoritative rating

the end of the previous ﬁscal year to 9.09%, due to an accumulation of

agency, assigned a high rating of A- (Long-term Issuer Rating) to AOGIN

proﬁts. This continues to be well above the domestic standard of 4%.

due to the Bank's exceptional record of reliability and security.
(End of March 2021)

12.00
10.00

10.05％
9.31％

9.78％
9.05％

9.77％

Japan Credit Rating
Agency (JCR)

Non-consolidated

9.09％

8.00

Consolidated

6.00

Domestic
standard: 4%

4.00
2.00
0.00

End of March2019

End of March
2020

End of March
2021* The listed amounts are abbreviated to the indicated unit. The component ratios, rates of increase or decrease, and other percentages are abbreviated to the indicatednumeric values.

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AOGIN Annual Report 2021

Non-consolidated Financial Statements
Non-consolidated Balance Sheets: The Aomori Bank, Ltd.
As of March 31, 2021 and 2020
Millions of Yen
2021

2020

Thousands of
U.S. dollars
2021

AssetsCash and due from banks
Call loans
Monetary claims bought
Money held in trust
Investment securities
Loans and bills discounted
Foreign exchange
Other assets
Tangible fixed assets
Intangible fixed assets
Prepaid pension costs
Deferred tax assets
Customers' liabilities for
acceptances and guarantees
Reserve for possible loan losses
Total assets
Liabilities and shareholders' equity
Liabilities
Deposits
Negotiable certificates of deposit
Call money
Payables under securities lending transactions
Borrowed funds
Foreign exchange
Other liabilities
Reserve for employees’ bonuses
Reserve for directors’ bonuses
Reserve for stock benefits
Reserve for reimbursement of deposits
Deferred tax liabilities
Deferred tax liabilities for revaluation
Acceptances and guarantees
Total liabilities
Net assets
Shareholders’ equity
Common stock
Capital surplus
Total retained earnings
Legal reserve
Appropriated retained earnings
Unappropriated retained earnings
Treasury stock
Total Shareholders’ equity
Valuation and translation adjustments
Net unrealized gains (losses) on securities
Net deferred gains (losses) on hedging instruments
Revaluation reserve for land
Total Valuation and translation adjustments
Total net assets
Total liabilities and net assets

11¥878,144
20,0002,483
5,000
839,458
1,856,349
1,575
30,361
20,686
1,914
3,618
-

¥393,648
15,0002,604
9,980
864,907
1,805,392
2,320
43,26920,750
1,664
3,199
1,466

$7,931,931
180,652
22,43145,1637,582,502
16,767,675
14,232274,245
186,851
17,29332,684-

14,224(7,398)¥3,666,419

15,559(6,972)¥3,172,791

128,485(66,823)$33,117,326¥2,714,057
179,483
1,107
103,423
522,500
3
17,616
523
14
153
333
1,690
1,481
14,224
3,556,612¥2,475,840
176,497
8,129
49,125
312,000
32
31,737
560
9
127
420
1,541
15,5593,071,581$24,515,015
1,621,202
10,000934,180
4,719,537
27
159,124
4,724
127
1,390
3,013
15,271
13,382
128,485
32,125,482

19,562
12,916
65,1186,646
55,5002,972(783)
96,813

19,562
12,91663,903
6,646
55,0002,257(791)
95,590176,701
116,669
588,190
60,032
501,309
26,848(7,078)874,481

12,132(1,525)
2,385
12,993
109,807¥3,666,419

6,836(3,670)2,453
5,618
101,209¥3,172,791

109,592(13,774)
21,544
117,362
991,844$33,117,326

AOGIN Annual Report 2021

Non-consolidated Income
The Aomori Bank, Ltd.
Years ended March 31, 2021 and 2020
Thousands of
U.S. dollars
2021

Millions of Yen
2020

2021
IncomeInterest on;
Loans and discounts
Securities
Other
Fees and commissions
Other income
Total income
Expenses
Interest on;
Deposits
Other
Fees and commissions
General and administrative expenses
Other expenses
Impairment losses on fixed assets
Total expenses¥16,352
6,595
82
23,0307,156
1,489
31,676¥16,7547,557
28
24,3406,828
2,024
33,193$147,705
59,573745
208,024
64,643
13,452
286,120

215
390
605
4,193
22,2381,521
244
28,803

419
374
793
4,925
23,0582,794
146
31,719

1,945
3,527
5,472
37,877200,867
13,7442,208
260,170

2,872

1,473

25,949Net Profits before taxes
Income taxes
Corporate tax, local taxes, business tax
Corporate tax adjustments
Tax total
Net profits

850
(143)

171
51

7,682
(1,299)706¥2,166223¥1,250

6,382$19,567

Net profits per share¥106.76¥61.63

U.S. DOLLARS$0.9643Yen

12

AOGIN Annual Report 2021

Non-consolidated Statements of Changes in Net Assets
The Aomori Bank, Ltd.
As of March 31, 2021 and 2020
Millions of yen
Shareholders' equity
Retained earnings
Commonstock
Balances as ofMarch 31, 2020

¥19,562

Capitalsurplus¥12,916

Treasury
stock

Total

Legal reserve

Appropriatedretained earnings

Unappropriatedretainedearnings

Total retained
earnings¥6,646¥55,000¥2,257¥63,903(1,019)(1,019)(1,019)

2,166

2,166

(¥791)¥95,590

Changes during theaccounting period
Dividends from surplus
500

Appropriated retained earnings

(500)
2,166

Net Income
Purchase of treasury stock

(1)

(1)

Disposal of treasury stock10

10

Reversal of land
revaluation excess

68

68

68

500

715

1,215

8

1,223

¥55,500¥2,972¥65,118(¥783)¥96,813

Changes other thanShareholders' equity (net)Total changes during
the accounting period
Balances as ofMarch 31, 2021

¥19,562¥12,916¥6,646

Thousands of U.S. dollars
Shareholders' equity
Retained earnings
Commonstock
Balances as ofMarch 31, 2020

$176,701

Capitalsurplus$116,669

Total retained Treasury stockearnings

Legal reserve

Appropriatedretained earnings

Unappropriatedretainedearnings$60,032$496,793$20,387$577,213(9,205)(9,205)($7,153)

Total$863,430

Changes during theaccounting period
Dividends from surplus
4,516

Appropriated retained earnings(4,516)
19,567Net Income(9,205)

19,567

19,567Purchase of treasury stock

(16)

(16)

Disposal of treasury stock90

90

Reversal of land
revaluation excess
Changes other thanShareholders' equity (net)Total changes during
the accounting period
Balances as ofMarch 31, 2021

$176,701$116,669$60,032

13

615

615

615

4,516

6,460

10,97774

11,051$501,309$26,848$588,190($7,078)$874,481

AOGIN Annual Report 2021

Non-consolidated Statements of Changes in Net Assets
The Aomori Bank, Ltd.
As of March 31, 2021 and 2020
Millions of yen
Valuation and translation adjustments

Balances as ofMarch 31, 2020

Net unrealized
gains(losses)
on securities

Deferred
gains(losses)on hedging
instruments¥6,836(¥3,670)

Revaluation
reservefor land¥2,453

Total net assets
Total¥5,618¥101,209

Changes during theaccounting period
Dividends from surplus(1,019)Appropriated retained earnings
Net Income

2,166

Purchase of treasury stock(1)

Disposal of treasury stock10

Reversal of land
revaluation excess

68

Changes other thanShareholders' equity (net)

5,296

2,145

(68)

7,374

7,374

Total changes during
the accounting period

5,296

2,145

(68)

7,374

8,597

¥12,132(¥1,525)¥2,385¥12,993¥109,807

Balances as ofMarch 31, 2021

Thousands of U.S. dollars
Valuation and translation adjustments

Balances as ofMarch 31, 2020

Net unrealized
gains(losses)
on securities

Deferred
gains(losses)on hedging
instruments

Revaluation
reservefor land$61,750($33,156)$22,160

Total net assets
Total$50,753$914,184

Changes during theaccounting period(9,205)

Dividends from surplus
Appropriated retained earnings

19,567Net Income
Purchase of treasury stock(16)

Disposal of treasury stock90

Reversal of land
revaluation excess

615

Changes other thanShareholders' equity (net)47,842

19,382(615)

66,60866,608

Total changes during
the accounting period

47,842

19,382(615)

66,60877,659Balances as of$109,592($13,774)$21,544$117,362$991,844
March 31, 2021(*) The non-consolidated financial statements presented herein are expressed in yen and, solely for the convenience of the reader, have beentranslated into United States dollars at the rate of ￥110.71= U.S.$1, the prevailing rate as of March 31, 2021. This translation should not
be construed as a representation that all the amounts shown could be converted into U.S. dollars.

14

AOGIN Annual Report 2021

Board of Directors and Executive Oﬃcers (as of June 24, 2021)▶Director / President▶Managing Executive Oﬃcers
Tsuyoshi Tamura

Susumu Narita

Tsutomu Shikanai▶Director / Deputy President

Yo Mori

Akihiro Kawamura

Takahiro Kudo

▶Directors/ Senior Managing Executive Oﬃcers
Tomohiko Sasaki
Keitaro Ishikawa▶Executive Oﬃcers
Daisuke Yatsu▶Director

Shunsuke Kasai

Naotake Atsumi

Motomi Shiratori
Yoshiaki Matsuhashi▶Directors / Audit & Supervisory Committee Members

Shin Kidachi

Akira Nakagawa
Norihisa IshidaToshisada Kushibiki
Mie Ishida

Kunihiko Yamanaka
Hayato Takahashi

Organization (as of April １, 2021)
General Meeting of Shareholders

Regional Headquarters
General Planning Division
Public Relations Oﬃce
Tokyo Liaison Oﬃce
Risk Administration Division

Board of Directors

Legal & Compliance Oﬃce

Audit & Surpervisory Committee

Business Administration Division
Customer Relations Oﬃce
Financial Products Management Oﬃce
Business Promotion Division

Executive Committee

Regional Development Oﬃce
Business Partnering Division
Credit Supervision DivisionCorporate Support Oﬃce
Treasury & International Division
Personnel Division
System Development Division
Operations Administration Division
Operations Oﬃce
General Aﬃars Division
Auditing Division
Operations Auditing Oﬃce
Audit & Supervisory Committee Oﬃce

15

AOGIN Annual Report 2021

Corporate Data (as of March 31, 2021)▶Company Name
The Aomori Bank, Ltd.
▶Head Oﬃce
9-30, Hashimoto 1-chome, Aomori 030-8668, Japan▶Web URL
https://www.a-bank.jp/▶Date of Establishment
October 1, 1943
▶Date of Foundation
January 20, 1879
▶Number of Employees
1,216▶Number of Oﬃces
90▶Paid-in Capital
19.562 billion yen▶Number of Outstanding Shares
20.512 million shares▶Total Assets
3.6664 trillion yen▶Loans and Bills Discounted
1.8563 trillion yen▶Capital Adequacy Ratio
9.09% (Domestic Standards)▶Credit Rating
A- (Japan Credit Rating Agency, Ltd.)AOGIN Annual Report 2021
Issued September 2021 The Aomori Bank, Ltd.
9-30, Hashimoto 1-chome, Aomori 030-8668, Japan telephone : 017-777-1111

16

fax : 017-777-1006