F inancial Review
Business Environment
The Japanese economy remained in a difficult situation during the current fiscal year with severe restrictions on social andeconomic activities due to the impact of the COVID-19 global
pandemic, but there were some signs of recovery. In the corporate sector, capital investment was restrained due to declining
profits and uncertainty about the future of the global economy,
but with the resumption of economic activities in each country,
automobile-related exports recovered and production recoveredto an increasing trend. In the household budget sector, employment and income conditions remained weak, and although personal consumption showed signs of recovery after the first stateof emergency was lifted, consumption of services fell as a resultof the second and third waves of the pandemic and announcement of the second state of emergency.
Although there have been continued movements to curb
capital investment in both Gifu and Aichi prefectures, whichmake up the main business base of the Bank, there were signsof resilience such as exports and production returning to anincreasing trend mainly in the automobile industry. In thehousehold budget sector, personal consumption showed signs ofrecovery amid continued weakness in employment and income
conditions, but consumption of services such as lodging anddining fell with the suspension of the “Go To Travel” campaign
to stimulate tourist demand at the end of last year and announcement of the second state of emergency at the beginningof this year.

Performance
Ordinary income from banking operations increased by ¥2,408
million year on year to ¥79,063 million owing to an increase inother operating income. Ordinary expenses decreased by ¥1,575
million to ¥56,557 million due to decreases in interest expenseand operating expenses. As a result, ordinary profit increased by¥3,983 million year on year to ¥22,506 million.
In the leasing business, ordinary income increased by ¥724
million year on year to ¥25,859 million, ordinary expenses increased by ¥1,230 million year on year to ¥25,379 million, andordinary profit decreased by ¥506 million year on year to ¥480
million.
In other businesses, including the credit card business andcredit guarantee business, ordinary income increased by ¥1,495
million year on year to ¥9,282 million, and ordinary expenses
decreased by ¥44 million year on year to ¥7,171 million, and ordinary profit increased by ¥1,539 million year on year to ¥2,111
million.

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As a result, ordinary income on a consolidated basis increased by ¥4,486 million year on year to ¥111,346 million,
and ordinary expenses decreased by ¥624 million year on year to¥86,738 million. Ordinary profit increased by ¥5,111 million
year on year to ¥24,608 million, and net income attributable toowners of the parent increased by ¥1,860 million to ¥14,722
million.
Net cash provided by operating activities amounted to¥580,590 million (¥84,244 million was provided in the previous fiscal year) mainly as a result of an increase in deposits. Net
cash used in investing activities amounted to ¥274,206 million (¥63,122 million was provided in the previous fiscal year)
mainly as a result of purchase of securities. Net cash used infinancing activities amounted to ¥4,624 million (¥3,734 million was used in the previous fiscal year) mainly as a result ofdividends paid. As a result, the closing balance of cash and cash
equivalents increased by ¥301,765 million during the fiscal year
under review to ¥930,917 million.

Financial Position
As a “comprehensive financial group that builds a future with
its local communities and achieves sustainable growth withlocal economies,” we have endeavored to provide high-quality
customer-oriented services tailored to life events so that ourcustomers and their families can achieve their dreams.
The balance of deposits as of March 31, 2021 increased by¥454.1 billion year on year to ¥6,137.8 billion, mainly due toan increase in personal and corporate deposits.
In addition, as a result of responding to the diverse needsof individual customers with a wide range of products such as
personal pension insurance and investment trusts, our balanceof individual customer assets including deposits increased by¥315.0 billion to ¥4,971.6 billion.
With regard to loans, the balance increased by ¥133.1 billion year on year to ¥4,509.8 billion, reflecting our proactive
engagement in financing consultations with customers in theregion amid the COVID-19 pandemic and our initiatives for
personal loans centering on mortgage loans.
With regard to securities, we have endeavored to manage
securities appropriately in accordance with a basic policy of
expanding total profit over the medium to long term by building a portfolio that maintains a balance between risk and return
while flexibly responding to changes in market conditions.
As a result, the balance of securities as of March 31, 2021
increased by ¥309.1 billion year on year to ¥1,572.1 billion.