# EDGAR Filing Document

**Accession Number:** 0000800571
**File Stem:** 0000947871-23-000260
**Filing Date:** 2023-3
**Character Count:** 411223
**Document Hash:** 5b5096a922910665f8287bff67bca6bc
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0000947871-23-000260.hdr.sgml**: 20230302

**ACCESSION NUMBER**: 0000947871-23-000260

**CONFORMED SUBMISSION TYPE**: CB

**PUBLIC DOCUMENT COUNT**: 28

**FILED AS OF DATE**: 20230302

**DATE AS OF CHANGE**: 20230302

**SUBJECT COMPANY**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Nagano Bank, Ltd.
- **CENTRAL INDEX KEY:** 0001948307
- **IRS NUMBER:** 000000000
- **STATE OF INCORPORATION:** M0
- **FISCAL YEAR END:** 0331

**FILING VALUES:**
- **FORM TYPE:** CB
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 005-93776
- **FILM NUMBER:** 23696273

**BUSINESS ADDRESS:**
- **STREET 1:** 2-9-38, NAGISA
- **CITY:** MATSUMOTO
- **STATE:** M0
- **ZIP:** 390-8708
- **BUSINESS PHONE:** 81-263-27-1531

**MAIL ADDRESS:**
- **STREET 1:** 2-9-38, NAGISA
- **CITY:** MATSUMOTO
- **STATE:** M0
- **ZIP:** 390-8708
**FILED BY**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** HACHIJUNI BANK LTD /FI
- **CENTRAL INDEX KEY:** 0000800571
- **IRS NUMBER:** 000000000
- **FISCAL YEAR END:** 0331

**FILING VALUES:**
- **FORM TYPE:** CB

**BUSINESS ADDRESS:**
- **STREET 1:** 178-8, OKADA
- **CITY:** NAGANO
- **STATE:** M0
- **ZIP:** 380-8682
- **BUSINESS PHONE:** 81-26-224-6188

**MAIL ADDRESS:**
- **STREET 1:** 178-8, OKADA
- **CITY:** NAGANO
- **STATE:** M0
- **ZIP:** 380-8682

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** HACHIJUNI BANK LTD                                      /FI
- **DATE OF NAME CHANGE:** 19860908

**UNITED STATES<br> SECURITIES AND EXCHANGE COMMISSION<br> Washington, D.C. 20549** 

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FORM CB<br> TENDER OFFER/RIGHTS OFFERING NOTIFICATION FORM

Please place an X in the box(es) to designate the appropriate rule provision(s) relied upon to file this Form:

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| | |
|:---|:---|
| Securities Act Rule 801 (Rights Offering) | □ |
| Securities Act Rule 802 (Exchange Offer) | ⌧ |
| Exchange Act Rule 13e-4(h)(8) (Issuer Tender Offer) | □ |
| Exchange Act Rule 14d-1(c) (Third Party Tender Offer) | □ |
| Exchange Act Rule 14e-2(d) (Subject Company Response) | □ |

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| |
|:---|
| **Kabushiki Kaisha Nagano Ginko** |
| (Name of Subject Company)<br>|
| **The Nagano Bank, Ltd.** |
| (Translation of Subject Company's Name into English (if applicable)) |
| **Japan** |
| (Jurisdiction of Subject Company's Incorporation or Organization) |
| **The Hachijuni Bank, Ltd.** |
| (Name of Person(s) Furnishing Form) |
| **Common Stock** |
| (Title of Class of Subject Securities) |
| **N/A** |
| (CUSIP Number of Class of Securities (if applicable)) |
| <br> **The Nagano Bank, Ltd.**<br> **Attn: Nobuyuki Takahashi**<br> **2-9-38, Nagisa, Matsumoto, Nagano 390-8708, Japan**<br> **+81-263-27-1531**<br>|
| (Name, Address (including zip code) and Telephone Number (including area code)<br> of Person(s) Authorized to Receive Notices and Communications on Behalf of Subject Company)<br>|
| **N/A** |
| (Date Tender Offer/Rights Offering Commenced) |

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**PART I – INFORMATION SENT TO SECURITY HOLDERS**

**Item 1. Home Jurisdiction Documents** 

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| | |
|:---|:---|
| **Exhibit**<br> **<u>Number</u>** |  |
| 99.1 | &nbsp;&nbsp;Notice of the Extraordinary Meeting of the Shareholders of The Nagano Bank, Ltd. (English Translation). |
| 99.2 | &nbsp;&nbsp;Reference Documents for the Extraordinary Meeting of the Shareholders of The Nagano Bank, Ltd. (English Translation). |
| 99.3 | &nbsp;&nbsp;Matters Disclosed on the Internet Concerning Notice of Convocation of Extraordinary Meeting of Shareholders of The Nagano Bank, Ltd. (English Translation). |
| 99.4 | &nbsp;&nbsp;Supplementary document entitled "Business Integration with The Hachijuni Bank, Ltd." (English Translation). |

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**Item 2. Informational Legends**

The required legend is prominently included in the document(s) referred to in Item 1.

**PART II – INFORMATION NOT REQUIRED TO BE SENT TO SECURITY HOLDERS** 

N/A

**PART III – CONSENT TO SERVICE OF PROCESS**

The Hachijuni Bank, Ltd. submitted to the Securities and Exchange Commission a written irrevocable consent and power of attorney on Form F-X dated October 6, 2022.<br>

**SIGNATURES** 

After due inquiry and to the best of my knowledge and belief, I certify that the information set forth in this statement is true, complete and correct.

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| |
|:---|
| **The Hachijuni Bank, Ltd.** |
| /s/ Shohei Hidai |
| Name: Shohei Hidai |
| Title: Director |

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Date: March 2, 2023

## Exhibit 99.1

The transactions pursuant to the share exchange described in this document involve securities of a Japanese company. The share exchange is subject to disclosure requirements of Japan that are different from those of the United States. Financial information included in this document, if any, was excerpted from financial statements prepared in accordance with foreign accounting standards that may not be comparable to the financial statements of United States companies.<br> It may be difficult for you to enforce your rights and any claim you may have arising under the U.S. federal securities laws, since the issuer is located in Japan and some or all of its officers and directors reside outside of the United States. You may not be able to sue a Japanese company or its officers or directors in a Japanese court for violations of the U.S. securities laws. It may be difficult to compel a Japanese company and its affiliates to subject themselves to a U.S. court's judgment. You should be aware that the issuer may purchase securities otherwise than under the share exchange, such as in the open market or through privately negotiated purchases.<br> This document has been translated from the Japanese-language original for reference purposes only. In the event of any conflict or discrepancy between this document and the Japanese-language original, the Japanese-language original shall prevail in all respects.<br>

Notice of the Extraordinary Meeting of the Shareholders

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| | |
|:---|:---|
| Time and Date | 10:00 a.m. on Friday, March 24, 2023 (JST) |
|  | <br> Reception opens at 9:00 a.m. |
| Venue | Large Conference Room on the 2nd Floor, |
|  | Head Office of The Nagano Bank, Ltd.<br> 2-9-38 Nagisa, Matsumoto City, Nagano, Japan |
| [Agenda] |  |

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| | | |
|:---|:---|:---|
| Proposal 1 | Approval of the Share Exchange Agreement |  |
| Proposal 2 | Partial Amendment to the Articles of Incorporation |  |
| Proposal 3 | Partial Revision of the Compensation Limits for Performance-linked Stock Compensation Plan for Directors due to the Stock Exchange |  |
|  |  | &nbsp;&nbsp;&nbsp;❬Dear Shareholder❭<br> For prevention of the spread of COVID-19 and putting the health and safety of our shareholders first, we encourage you to exercise your voting rights for the Extraordinary Meeting of the Shareholders in writing (via mail) or through the internet in advance, and refrain from visiting the meeting venue in person on the day of the meeting.<br>We stopped distributing gifts to shareholders at General Meetings of the Shareholders two years ago. We would appreciate your understanding. |

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| | |
|:---|:---|
| ![](image_001.jpg) | **THE NAGANO BANK, LTD.**<br> Securities Code: 8521 |

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| | | |
|:---|:---|:---|
|  | Securities code 8521 | Securities code 8521 |
|  | March 2, 2023 | March 2, 2023 |
| Dear Shareholder | | |
| | | 2-9-38 Nagisa, Matsumoto City, Nagano, Japan |
| | | THE NAGANO BANK, LTD. |
| | | President Hitoshi Nishizawa |

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Notice of the Extraordinary Meeting of the Shareholders

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| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;I would like to take this opportunity to thank you, our shareholder, for your support of The Nagano Bank, Ltd.<br> The Extraordinary Meeting of the Shareholders of The Nagano Bank, Ltd. ("Nagano Bank") will be held as described below.<br> For convocation of the Extraordinary Meeting of the Shareholders, the information which is the details including the reference documents for the General Meeting of the Shareholders (the matters subject to be provided electronically, hereinafter, the "Electronic Provision Measures Matters") is provided electronically and posted as part of "Notice of the Extraordinary Meeting of the Shareholders" on the Nagano Bank's website. Please access our website and confirm the information. | &nbsp;&nbsp;&nbsp;I would like to take this opportunity to thank you, our shareholder, for your support of The Nagano Bank, Ltd.<br> The Extraordinary Meeting of the Shareholders of The Nagano Bank, Ltd. ("Nagano Bank") will be held as described below.<br> For convocation of the Extraordinary Meeting of the Shareholders, the information which is the details including the reference documents for the General Meeting of the Shareholders (the matters subject to be provided electronically, hereinafter, the "Electronic Provision Measures Matters") is provided electronically and posted as part of "Notice of the Extraordinary Meeting of the Shareholders" on the Nagano Bank's website. Please access our website and confirm the information. |
| &nbsp;&nbsp;&nbsp;Nagano Bank's website https://www.naganobank.co.jp/site/kabu/sokai.html | ![Title: PRONEXUS_SIZE:11.07_11.07 - Description: プロネクサス定義の値です。 タイトルの変更・削除はしないでください。](image_002.jpg) |
| &nbsp;&nbsp;&nbsp;The Electronic Provision Measures Matters are posted to the website of the Tokyo Stock Exchange ("TSE") in addition to the above website. Please access the TSE's website below (Tokyo Stock Exchange Listed Company Search), search by entering the company name or securities code, select "Basic Information," and then choose "Documents for public inspection/PR Information" to view the information. | &nbsp;&nbsp;&nbsp;The Electronic Provision Measures Matters are posted to the website of the Tokyo Stock Exchange ("TSE") in addition to the above website. Please access the TSE's website below (Tokyo Stock Exchange Listed Company Search), search by entering the company name or securities code, select "Basic Information," and then choose "Documents for public inspection/PR Information" to view the information. |
| &nbsp;&nbsp;&nbsp;TSE's website (Tokyo Stock Exchange Listed Company Search)<br> https://www2.jpx.co.jp/tseHpFront/JJK010010Action.do?Show=Show | ![Title: PRONEXUS_SIZE:11.07_11.07 - Description: プロネクサス定義の値です。 タイトルの変更・削除はしないでください。](image_003.jpg) |
| &nbsp;&nbsp;&nbsp;If you are unable to attend the Extraordinary Meeting of the Shareholders on the meeting day, you may exercise your voting rights through either one of the following means. Please read and consider the reference documents for the general meeting of shareholders in the following pages, and exercise your voting rights by 5:00 p.m., Thursday, March 23, 2023.  | &nbsp;&nbsp;&nbsp;If you are unable to attend the Extraordinary Meeting of the Shareholders on the meeting day, you may exercise your voting rights through either one of the following means. Please read and consider the reference documents for the general meeting of shareholders in the following pages, and exercise your voting rights by 5:00 p.m., Thursday, March 23, 2023.  |
| [Exercising voting rights via the internet] |  |
| &nbsp;&nbsp;&nbsp;Please read the instructions on exercising voting rights on pages 3 and 4, access our designated voting site (https://soukai.mizuho-tb.co.jp/) on your smartphone or personal computer, and enter your approval or disapproval for each of the proposals, as prompted on the screen by the voting deadline indicated above. | &nbsp;&nbsp;&nbsp;Please read the instructions on exercising voting rights on pages 3 and 4, access our designated voting site (https://soukai.mizuho-tb.co.jp/) on your smartphone or personal computer, and enter your approval or disapproval for each of the proposals, as prompted on the screen by the voting deadline indicated above. |
| [Exercising voting rights via mail] |  |
| &nbsp;&nbsp;&nbsp;Please indicate your approval or disapproval for each of the proposals on the enclosed voting form and return it to us by the voting deadline indicated above. | &nbsp;&nbsp;&nbsp;Please indicate your approval or disapproval for each of the proposals on the enclosed voting form and return it to us by the voting deadline indicated above. |

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| | | |
|:---|:---|:---|
| &nbsp;&nbsp;&nbsp;1 Time and Date | &nbsp;&nbsp;&nbsp;1 Time and Date | 10:00 a.m. on Friday, March 24, 2023 (JST) (Reception opens at 9:00 a.m.) |
| &nbsp;&nbsp;&nbsp;2 Venue | &nbsp;&nbsp;&nbsp;2 Venue | Large Conference Room on the 2nd Floor, Head Office of The Nagano Bank, Ltd. |
|  |  | 2-9-38 Nagisa, Matsumoto City, Nagano, Japan |
| &nbsp;&nbsp;&nbsp;3 Agenda for the Meeting | &nbsp;&nbsp;&nbsp;3 Agenda for the Meeting | &nbsp;&nbsp;&nbsp;3 Agenda for the Meeting |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Matters to be resolved | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Matters to be resolved | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Matters to be resolved |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proposal 1 | Approval of the Share Exchange Agreement | Approval of the Share Exchange Agreement |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proposal 2 | Partial Amendment to the Articles of Incorporation | Partial Amendment to the Articles of Incorporation |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proposal 3 | Partial Revision of the Compensation Limits for Performance-linked Stock Compensation Plan for Directors due to the Stock Exchange | Partial Revision of the Compensation Limits for Performance-linked Stock Compensation Plan for Directors due to the Stock Exchange |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4 Instructions on Exercising Voting Rights | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4 Instructions on Exercising Voting Rights | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4 Instructions on Exercising Voting Rights |
| &nbsp;&nbsp;&nbsp;&nbsp;(1) When exercising your voting rights in writing (via mail), if neither approval nor disapproval for a proposal(s) is indicated on the voting form returned to us; it will be deemed as approval for the proposal(s). | &nbsp;&nbsp;&nbsp;&nbsp;(1) When exercising your voting rights in writing (via mail), if neither approval nor disapproval for a proposal(s) is indicated on the voting form returned to us; it will be deemed as approval for the proposal(s). | &nbsp;&nbsp;&nbsp;&nbsp;(1) When exercising your voting rights in writing (via mail), if neither approval nor disapproval for a proposal(s) is indicated on the voting form returned to us; it will be deemed as approval for the proposal(s). |
| &nbsp;&nbsp;&nbsp;&nbsp;(2) When exercising your voting rights by proxy, you may attend the general meeting of shareholders by appointing one other shareholder who has voting rights in Nagano Bank as your proxy. However, please be advised that a document proving their proxy right must be submitted. | &nbsp;&nbsp;&nbsp;&nbsp;(2) When exercising your voting rights by proxy, you may attend the general meeting of shareholders by appointing one other shareholder who has voting rights in Nagano Bank as your proxy. However, please be advised that a document proving their proxy right must be submitted. | &nbsp;&nbsp;&nbsp;&nbsp;(2) When exercising your voting rights by proxy, you may attend the general meeting of shareholders by appointing one other shareholder who has voting rights in Nagano Bank as your proxy. However, please be advised that a document proving their proxy right must be submitted. |
| &nbsp;&nbsp;&nbsp;5. Measures for Electronic Provision | &nbsp;&nbsp;&nbsp;5. Measures for Electronic Provision | &nbsp;&nbsp;&nbsp;5. Measures for Electronic Provision |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To shareholders who have made a request for delivery of materials in paper-based format ("Request for Delivery of Document"), Nagano Bank will send written documents on which the matters subject to be provided electronically ("Electronic Provision Measures Matters") are written along with this notice. However, the documents do not include the following matters regarding the Hachijuni Bank Ltd., pursuant to laws and regulations, and the provisions of Article 17 of the existing Articles of Incorporation of Nagano Bank. | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To shareholders who have made a request for delivery of materials in paper-based format ("Request for Delivery of Document"), Nagano Bank will send written documents on which the matters subject to be provided electronically ("Electronic Provision Measures Matters") are written along with this notice. However, the documents do not include the following matters regarding the Hachijuni Bank Ltd., pursuant to laws and regulations, and the provisions of Article 17 of the existing Articles of Incorporation of Nagano Bank. | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To shareholders who have made a request for delivery of materials in paper-based format ("Request for Delivery of Document"), Nagano Bank will send written documents on which the matters subject to be provided electronically ("Electronic Provision Measures Matters") are written along with this notice. However, the documents do not include the following matters regarding the Hachijuni Bank Ltd., pursuant to laws and regulations, and the provisions of Article 17 of the existing Articles of Incorporation of Nagano Bank. |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Articles of Incorporation; | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Articles of Incorporation; | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Articles of Incorporation; |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) "Particulars related to share options," "Basic policy concerning the requirements for the person controlling the decision of the financial and business policies," "Systems for ensuring proper business activities," "Matters regarding specified wholly-owned subsidiary company," "Transaction between the company and its parent company, etc.," and "Other" included in the business report; | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) "Particulars related to share options," "Basic policy concerning the requirements for the person controlling the decision of the financial and business policies," "Systems for ensuring proper business activities," "Matters regarding specified wholly-owned subsidiary company," "Transaction between the company and its parent company, etc.," and "Other" included in the business report; | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) "Particulars related to share options," "Basic policy concerning the requirements for the person controlling the decision of the financial and business policies," "Systems for ensuring proper business activities," "Matters regarding specified wholly-owned subsidiary company," "Transaction between the company and its parent company, etc.," and "Other" included in the business report; |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) "Statement of changes in shareholders' equity, etc." and "Table of explanatory notes" included in the financial statements; and | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) "Statement of changes in shareholders' equity, etc." and "Table of explanatory notes" included in the financial statements; and | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) "Statement of changes in shareholders' equity, etc." and "Table of explanatory notes" included in the financial statements; and |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) "Consolidated statement of change in shareholders' equity, etc." and "Tables of explanatory notes on consolidated financial statements," included in the consolidated financial statement | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) "Consolidated statement of change in shareholders' equity, etc." and "Tables of explanatory notes on consolidated financial statements," included in the consolidated financial statement | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) "Consolidated statement of change in shareholders' equity, etc." and "Tables of explanatory notes on consolidated financial statements," included in the consolidated financial statement |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;• If you are attending the General Meeting of the Shareholders in person, please hand in the enclosed voting form to the reception. Also, please make sure to bring this notice of the EGM with you to the meeting venue for resources conservation.<br> &nbsp;&nbsp;&nbsp;&nbsp;• Should there be any corrections to the Electronic Provision Measures Matters, that effect and the Electronic Provision Measures Matters before and after the corrections will be posted to the websites of Nagano Bank and the Tokyo Stock Exchange ("TSE").<br><Reminders regarding the novel coronavirus [COVID-19]><br> For prevention of the spread of COVID-19, we encourage you to exercise your voting rights for the EGM in writing (via mail) or through the internet in advance, and also consider refraining from visiting the meeting venue in person on the day of the meeting.<br> For shareholders considering attending the meeting in person, please make sure to check the status of the spread of COVID-19 as of the day of the meeting as well as your health condition, and take precautions such as wearing a mask to prevent infection to come to the meeting venue.<br> ><br> We stopped distributing gifts to shareholders who have come to General Meetings of the Shareholders two years ago. We would appreciate your understanding.<br>

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|:---|:---|
| ![Title: PRONEXUS_SIZE:162.08_45.86 - Description: プロネクサス定義の値です。 タイトルの変更・削除はしないでください。](image_004.jpg) | Instructions on Exercising Voting Rights<br>Voting rights in the General Meeting of the Shareholders is an important right of yours as a shareholder.<br> We kindly ask that you review the reference documents for the General Meeting of the Shareholders in the following pages and exercise your voting rights.<br> You have three ways to exercise your voting rights as described below. |

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|:---|:---|:---|
| ![Title: PRONEXUS_SIZE:162.08_45.86 - Description: プロネクサス定義の値です。 タイトルの変更・削除はしないでください。](image_005.jpg) | ![Title: PRONEXUS_SIZE:162.08_45.86 - Description: プロネクサス定義の値です。 タイトルの変更・削除はしないでください。](image_006.jpg) | ![Title: PRONEXUS_SIZE:162.08_45.86 - Description: プロネクサス定義の値です。 タイトルの変更・削除はしないでください。](image_007.jpg) |
| Attending the General Meeting of the Shareholders in person | Voting by a written document (postal mail) | Voting via the internet |
| Please hand in the enclosed voting form to the receptionist at the meeting venue. | Please indicate your approval or disapproval for the proposals on the enclosed voting form and return it to us. | Please enter your approval or disapproval for the proposals in accordance with the instructions on the following pages. |
| Meeting time and date | Voting deadline | Voting deadline |
| Friday, March 24, 2023<br> At 10:00 a.m. (Reception opens at 9:00 a.m.) | Thursday, March 23, 2023<br> Return by no later than 5:00 p.m. | Thursday, March 23, 2023<br> Enter by no later than 5:00 p.m. |

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How to fill out the voting form

![](image_008.jpg)

\* Voting form is a sample for illustration purposes only.

If you cast your votes by mail as well as through the internet, the votes through the internet will be treated as effective. If you cast your votes through the internet more than once, your last vote casted for each of the proposals will be treated as effective.

Instructions on Exercising Voting Rights via the Internet

![](image_009.jpg)

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|:---|:---|
| If you are not clear about how to operate your personal computer, smartphone, or mobile phone for the internet voting, please contact the number on the right. | Internet Helpdesk, Stock Transfer Agency Department, Mizuho Trust & Banking Co., Ltd.&nbsp;&nbsp;&nbsp;&nbsp;![Title: PRONEXUS_SIZE:89.87_51.39 - Description: プロネクサス定義の値です。 タイトルの変更・削除はしないでください。](image_010.jpg)0120-768-524<br> (Hours of operation: From 9:00 a.m. to 9:00 p.m. excluding year-end and new-year holidays) |

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Reference Documents for the General Meeting of the Shareholders

Proposals and Reference Matters

Proposal 1 Approval of the Share Exchange Agreement

The Bank and The Hachijuni Bank, Ltd. (hereinafter, "Hachijuni Bank"; Hachijuni Bank and Nagano Bank are collectively referred to as the "Banks"), in accordance with the Basic Agreement executed on September 28, 2022, resolved to execute a business integration (hereinafter, the "Business Integration") through a share exchange (hereinafter, the "Share Exchange") which effective date is June 1, 2023, subject to obtaining approval by the General Meeting of the shareholders of Nagano Bank and the necessary permits and approvals by relevant authorities. The resolution was made at the respective meetings of the Board of Directors of the Banks held on January 20, 2023. The Banks have executed a share exchange agreement (hereinafter, the "Share Exchange Agreement") stated below "2. Details of the Share Exchange Agreement" between the Banks as of January 20, 2023.

We, therefore, request shareholder approval for the Share Exchange Agreement.

The Share Exchange will be executed through the procedures of a simplified share exchange at Hachijuni Bank, in accordance with the provisions of Article 796, Paragraph 2 of the Companies Act, without approval by its General Meeting of the Shareholders. At Nagano Bank, the Share Exchange will be executed upon obtaining shareholder approval for the Share Exchange Agreement at the Extraordinary Meeting of the Shareholders.

If the Share Exchange is approved, Nagano Bank will become a wholly-owned subsidiary of Hachijuni Bank as of the effective date (June 1, 2023 (planned)). Consequently, prior to the effective date (June 1, 2023 (planned)), the common stocks of Nagano Bank are to be delisted by May 30, 2023 (the last trading date will be May 29, 2023), in accordance with the Delisting Criteria of the Tokyo Stock Exchange (hereinafter, the "TSE").

The reasons for the Share Exchange and the details of the Share Exchange Agreement are as follows.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Reasons for the Share Exchange

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Background of the Business Integration

The Banks are regional banks with head offices located in Nagano Prefecture, each engaged in financial intermediation function and developed with the regional community by maintaining a stable financial system and providing a broad range of financial services.

As the financial and economic environment surrounding the Banks is expected to become increasingly difficult due to the contraction of interest rate spread between deposits and loans caused by the prolonged low-interest rate environment, the Banks are expected to provide detailed functions and services, expand to new business fields; develop technologies including for during and after the COVID-19 pandemic and for digitalization; and to respond to the transformation of social structures such as decarbonization. The Banks believe that their role in the regional community will become increasingly important.

Under this business environment, the Banks concluded that the best option for contributing to the development of stakeholders of the Banks is to join forces under the shared mission of regional development to build a sound management foundation; reinforce the financial intermediation function; and establish a sustainable business model that matches the change in customers' needs and transformation of social structure, as stated in the press release "Notice Regarding Basic Agreement on Business Integration between The Hachijuni Bank, Ltd. and The Nagano Bank, Ltd." dated September 28, 2022. Consequently, the Banks have resolved to promote discussions and analysis toward the Business Integration on June 1, 2023, based on mutual trust and equal footing, and have reached the final agreement on January 20, 2023.

In addition, the Banks will promote discussion and review towards early merger after the effective date of the Share Exchange to maximize the effect of the integration.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Basic Principle and Purpose of the Business Integration

The Banks will promote the Business Integration under the assumption of equal footing, realize quick integration, and transform into a bank that can grow with the region by combining the expertise, relationship, and human assets of the Banks, and provide better value to the customers, region, shareholders, employees, etc.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Expected Synergies from the Business Integration

The Banks will consider specific measures considering the following synergy effects for early achievement of the purpose of the Business Integration:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Utilization of human capital and transformation of the corporate culture

The Banks will transform their corporate culture to enable a better response to the change of times, with maximum use of human capital that will be the driving force for the growth and development of the Banks, promote mutual resource exchange, and optimal resource allocation to the areas of the business to be strengthened.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Enhancement of financial intermediation functions and financial services

By combining the Banks' expertise, information, and networks and utilizing the corporate group functions, the Banks will promote the development and growth of the regional industries by strengthening relationship-based banking, core business support, and actively providing risk money. In addition, the Banks will improve the convenience of settlement transactions, asset formation, and use of loans; and provide services corresponding to their customers' needs by expanding digital channels and services.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Enhancing expansion of business fields

The Banks will contribute to the further development of regional industries and improve residents' quality of life by concentrating the Banks' human assets, information, and expertise to expand the new business fields that resolve regional issues.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) Strengthening the business foundation

The Banks will build a sound business foundation that will enable continued contribution to the regional community by providing stable functions and services, improving business efficiency through consolidation and abolition of redundant branches, etc. streamlining and integrating headquarter organizations, and with shared systems and administration, etc.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Details of the Share Exchange Agreement

The details of the Share Exchange Agreement are as described in the "Share Exchange Agreement (Copy)" as follows.

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| | | |
|:---|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Share Exchange Agreement (Copy)<br>The Hachijuni Bank, Ltd. (hereinafter, "Hachijuni Bank") and The Nagano Bank, Ltd. (hereinafter, "Nagano Bank") have entered into this Share Exchange Agreement (hereinafter, the "Agreement"), as follows.<br>Article 1 Share Exchange Method<br> Hachijuni Bank and Nagano Bank shall execute the share exchange (hereinafter, the "Share Exchange"), which will make Hachijuni Bank a wholly-owning parent company and Nagano Bank a wholly-owned subsidiary as of the effective date (hereinafter, the "Effective Date") set forth in Article 5 of the Agreement.<br>Article 2 Trade Names and Addresses of Hachijuni Bank and Nagano Bank<br> The trade names and addresses of Hachijuni Bank and Nagano Bank are as follows.<br> &nbsp;&nbsp;&nbsp;&nbsp;(1) Wholly-owning parent company after the Share Exchange (Hachijuni Bank)<br> Trade name: The Hachijuni Bank, Ltd.<br> Address: 178-8 Ooaza Nakagosho, Aza Okada, Nagano-City, Nagano, Japan<br> &nbsp;&nbsp;&nbsp;&nbsp;(2) Wholly-owned subsidiary after the Share Exchange (Nagano Bank)<br> Trade name: The Nagano Bank, Ltd.<br> Address 2-9-38 Nagisa, Matsumoto City, Nagano, Japan<br>Article 3 Delivery of Consideration upon the Share Exchange and the Allotment<br> 1. In conjunction with the Share Exchange, Hachijuni Bank shall issue to the shareholders of Nagano Bank, as monies, etc. in lieu of the shares of Nagano Bank, the number of common stock of Hachijuni Bank which is obtained by multiplying by 2.54 the total number of the common stock of Nagano Bank held by the shareholders (excluding Hachijuni Bank) who are listed or recorded in the final shareholder register of Nagano Bank as of the day before the Effective Date.<br> 2. For the allotment of the consideration in the preceding paragraph, the number of common stock of Hachijuni Bank, which is obtained by multiplying the total number of the common stock of Nagano Bank held by the shareholders (excluding Hachijuni Bank) who are listed or recorded in the final shareholder register of Nagano Bank as of the day before the Effective Date by 2.54 shall be allotted to each of the said shareholders.<br>Article 4 Capital and Reserves of Hachijuni Bank<br> The amount of capital and reserves of Hachijuni Bank to be increased through the Share Exchange shall be as follows. Provided, however, that Hachijuni Bank and Nagano Bank may change the following, taking into consideration changes in circumstances until the Effective Date, by agreement after consultation between Hachijuni Bank and Nagano Bank. | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Share Exchange Agreement (Copy)<br>The Hachijuni Bank, Ltd. (hereinafter, "Hachijuni Bank") and The Nagano Bank, Ltd. (hereinafter, "Nagano Bank") have entered into this Share Exchange Agreement (hereinafter, the "Agreement"), as follows.<br>Article 1 Share Exchange Method<br> Hachijuni Bank and Nagano Bank shall execute the share exchange (hereinafter, the "Share Exchange"), which will make Hachijuni Bank a wholly-owning parent company and Nagano Bank a wholly-owned subsidiary as of the effective date (hereinafter, the "Effective Date") set forth in Article 5 of the Agreement.<br>Article 2 Trade Names and Addresses of Hachijuni Bank and Nagano Bank<br> The trade names and addresses of Hachijuni Bank and Nagano Bank are as follows.<br> &nbsp;&nbsp;&nbsp;&nbsp;(1) Wholly-owning parent company after the Share Exchange (Hachijuni Bank)<br> Trade name: The Hachijuni Bank, Ltd.<br> Address: 178-8 Ooaza Nakagosho, Aza Okada, Nagano-City, Nagano, Japan<br> &nbsp;&nbsp;&nbsp;&nbsp;(2) Wholly-owned subsidiary after the Share Exchange (Nagano Bank)<br> Trade name: The Nagano Bank, Ltd.<br> Address 2-9-38 Nagisa, Matsumoto City, Nagano, Japan<br>Article 3 Delivery of Consideration upon the Share Exchange and the Allotment<br> 1. In conjunction with the Share Exchange, Hachijuni Bank shall issue to the shareholders of Nagano Bank, as monies, etc. in lieu of the shares of Nagano Bank, the number of common stock of Hachijuni Bank which is obtained by multiplying by 2.54 the total number of the common stock of Nagano Bank held by the shareholders (excluding Hachijuni Bank) who are listed or recorded in the final shareholder register of Nagano Bank as of the day before the Effective Date.<br> 2. For the allotment of the consideration in the preceding paragraph, the number of common stock of Hachijuni Bank, which is obtained by multiplying the total number of the common stock of Nagano Bank held by the shareholders (excluding Hachijuni Bank) who are listed or recorded in the final shareholder register of Nagano Bank as of the day before the Effective Date by 2.54 shall be allotted to each of the said shareholders.<br>Article 4 Capital and Reserves of Hachijuni Bank<br> The amount of capital and reserves of Hachijuni Bank to be increased through the Share Exchange shall be as follows. Provided, however, that Hachijuni Bank and Nagano Bank may change the following, taking into consideration changes in circumstances until the Effective Date, by agreement after consultation between Hachijuni Bank and Nagano Bank. | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Share Exchange Agreement (Copy)<br>The Hachijuni Bank, Ltd. (hereinafter, "Hachijuni Bank") and The Nagano Bank, Ltd. (hereinafter, "Nagano Bank") have entered into this Share Exchange Agreement (hereinafter, the "Agreement"), as follows.<br>Article 1 Share Exchange Method<br> Hachijuni Bank and Nagano Bank shall execute the share exchange (hereinafter, the "Share Exchange"), which will make Hachijuni Bank a wholly-owning parent company and Nagano Bank a wholly-owned subsidiary as of the effective date (hereinafter, the "Effective Date") set forth in Article 5 of the Agreement.<br>Article 2 Trade Names and Addresses of Hachijuni Bank and Nagano Bank<br> The trade names and addresses of Hachijuni Bank and Nagano Bank are as follows.<br> &nbsp;&nbsp;&nbsp;&nbsp;(1) Wholly-owning parent company after the Share Exchange (Hachijuni Bank)<br> Trade name: The Hachijuni Bank, Ltd.<br> Address: 178-8 Ooaza Nakagosho, Aza Okada, Nagano-City, Nagano, Japan<br> &nbsp;&nbsp;&nbsp;&nbsp;(2) Wholly-owned subsidiary after the Share Exchange (Nagano Bank)<br> Trade name: The Nagano Bank, Ltd.<br> Address 2-9-38 Nagisa, Matsumoto City, Nagano, Japan<br>Article 3 Delivery of Consideration upon the Share Exchange and the Allotment<br> 1. In conjunction with the Share Exchange, Hachijuni Bank shall issue to the shareholders of Nagano Bank, as monies, etc. in lieu of the shares of Nagano Bank, the number of common stock of Hachijuni Bank which is obtained by multiplying by 2.54 the total number of the common stock of Nagano Bank held by the shareholders (excluding Hachijuni Bank) who are listed or recorded in the final shareholder register of Nagano Bank as of the day before the Effective Date.<br> 2. For the allotment of the consideration in the preceding paragraph, the number of common stock of Hachijuni Bank, which is obtained by multiplying the total number of the common stock of Nagano Bank held by the shareholders (excluding Hachijuni Bank) who are listed or recorded in the final shareholder register of Nagano Bank as of the day before the Effective Date by 2.54 shall be allotted to each of the said shareholders.<br>Article 4 Capital and Reserves of Hachijuni Bank<br> The amount of capital and reserves of Hachijuni Bank to be increased through the Share Exchange shall be as follows. Provided, however, that Hachijuni Bank and Nagano Bank may change the following, taking into consideration changes in circumstances until the Effective Date, by agreement after consultation between Hachijuni Bank and Nagano Bank. |
| &nbsp;&nbsp;&nbsp;(1) | Share capital | ¥0 |
| &nbsp;&nbsp;&nbsp;(2) | Capital reserve | The amount separately determined by Hachijuni Bank in accordance with the Regulation on Corporate Accounting |
| &nbsp;&nbsp;&nbsp;(3) | Retained earnings reserve | ¥0 |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Article 5 Effective Date<br> The Effective Date shall be June 1, 2023. Provided, however, that this can be changed by agreement after consultation between Hachijuni Bank and Nagano Bank when necessitated by procedures for the Share Exchange or other reasons.<br>Article 6 Cancellation of Treasury Share<br> Nagano Bank shall cancel all of its treasury shares (including the stock acquired by Nagano Bank in response to the right to request the purchase of shares exercised by Nagano Bank's shareholders in relation to the Share Exchange, pursuant to Article 785 of the Companies Act) that it holds immediately prior to the time (hereinafter, the "Record Time") when Hachijuni Bank acquires all of the issued and outstanding shares of Nagano Bank (excluding the common stock of Nagano Bank held by Hachijuni Bank). The cancellation shall take place at the Record Time, by resolutions of Nagano Bank's Board of Directors meeting held by no later than the day prior to the Effective Date.<br>Article 7 Maximum Amount of Dividend Payment from Surplus<br> 1. After the conclusion of the Share Exchange Agreement, Hachijuni Bank shall not make any dividend payment from surplus based on the Record Dates that are prior to the Effective Date, except for the dividend payment from surplus to its shareholders as of March 31, 2023, which is up to consolidated dividend payout ratio per share of 40% (the amount obtained by deducting Hachijuni Bank's mid-term dividend for the fiscal year ending March 31, 2023 of ¥10 from the amount obtained by multiplying Hachijuni Bank's consolidated profit per share for the full year of the fiscal year ending March 31, 2023 by 40% (round up after the decimal point)).<br> 2. After the conclusion of the Agreement, Nagano Bank shall not make any dividend payment from surplus based on the Record Dates that are prior to the Effective Date, except for the dividend payment from surplus to its shareholders as of March 31, 2023, which is up to the amount of ¥25 per share. At the Annual General Meeting of the Shareholders of Nagano Bank to be held on June 2023, Hachijuni Bank shall exercise its voting rights that is required for Nagano Bank to pay dividends from surplus to its shareholders as of March 31, 2023.<br>Article 8 Management of Company Assets with the Due Care of a Good Manager, etc.<br> 1. During the period after the conclusion of the Agreement until the Effective Date, Hachijuni Bank and Nagano Bank shall individually execute their operations, manage and administer their assets with the due care of good managers; and cause their subsidiaries to execute their operations, and manage and administer their assets with the due care of good managers.<br> 2. During the period after the conclusion of the Agreement until the Effective Date, Hachijuni Bank and Nagano Bank shall not conduct any act that may cause material impact to the status of their respective consolidated assets and future profit and loss, nor shall cause their subsidiaries to conduct such act, unless otherwise separately agreed between Hachijuni Bank and Nagano Bank.<br>Article 9 Amendment and Cancellation of the Agreement<br> During the period after the conclusion of the Agreement until the Effective Date, Hachijuni Bank and Nagano Bank may amend the terms and conditions of the Agreement or cancel the Agreement upon agreement after consultation between Hachijuni Bank and Nagano Bank; (i) in the event of material changes in the assets or business circumstances of Hachijuni Bank or Nagano Bank by reasons including Acts of God; or (ii) in the event that Hachijuni Bank or Nagano Bank identifies circumstances constituting material impediments to the execution of the Share Exchange or occurrence of events making the execution extremely difficult.<br>

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| | | |
|:---|:---|:---|
| &nbsp;&nbsp;Article 10 Approval and Effect of the Agreement | &nbsp;&nbsp;Article 10 Approval and Effect of the Agreement | &nbsp;&nbsp;Article 10 Approval and Effect of the Agreement |
| &nbsp;&nbsp;1. | Nagano Bank shall hold its Extraordinary Meeting of the Shareholders on March 24, 2023 and obtain approval for the Agreement. Provided, however, that this can be changed by agreement after consultation between Hachijuni Bank and Nagano Bank when necessitated by procedures for the Share Exchange or other reasons. | Nagano Bank shall hold its Extraordinary Meeting of the Shareholders on March 24, 2023 and obtain approval for the Agreement. Provided, however, that this can be changed by agreement after consultation between Hachijuni Bank and Nagano Bank when necessitated by procedures for the Share Exchange or other reasons. |
| &nbsp;&nbsp;2. | The Agreement shall lose its effect if the Agreement is not approved at Nagano Bank's General Meeting of the Shareholders, or not permitted or approved by relevant government authorities set forth by laws and regulations by the date prior to the Effective Date. | The Agreement shall lose its effect if the Agreement is not approved at Nagano Bank's General Meeting of the Shareholders, or not permitted or approved by relevant government authorities set forth by laws and regulations by the date prior to the Effective Date. |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <br> Article 11 Matters not Stipulated in the Agreement<br> Any matters not stipulated in the Agreement and any other matters necessary for the Share Exchange shall be determined upon negotiation and agreement between Hachijuni Bank and Nagano Bank.<br>IN WITNESS of the conclusion of the Agreement, the Agreement has been prepared in duplicate, signed and sealed by Hachijuni Bank and Nagano Bank, who each retain one.<br>January 20, 2023 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <br> Article 11 Matters not Stipulated in the Agreement<br> Any matters not stipulated in the Agreement and any other matters necessary for the Share Exchange shall be determined upon negotiation and agreement between Hachijuni Bank and Nagano Bank.<br>IN WITNESS of the conclusion of the Agreement, the Agreement has been prepared in duplicate, signed and sealed by Hachijuni Bank and Nagano Bank, who each retain one.<br>January 20, 2023 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <br> Article 11 Matters not Stipulated in the Agreement<br> Any matters not stipulated in the Agreement and any other matters necessary for the Share Exchange shall be determined upon negotiation and agreement between Hachijuni Bank and Nagano Bank.<br>IN WITNESS of the conclusion of the Agreement, the Agreement has been prepared in duplicate, signed and sealed by Hachijuni Bank and Nagano Bank, who each retain one.<br>January 20, 2023 |
|  | The Hachijuni Bank, Ltd. | Masaki Matsushita, President<br> 178-8 Ooaza Nakagosho, Aza Okada, Nagano-City, Nagano, Japan (Seal) |
|  | The Nagano Bank, Ltd. | Hitoshi Nishizawa, President<br> 2-9-38 Nagisa, Matsumoto-City, Nagano, Japan (Seal) |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Matters related to the Appropriateness of the Consideration for the Exchange

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Matters Related to the Appropriateness of the Total Number and the Allotment of Consideration for the
Exchange

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Details of the allotment in the Share Exchange

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| | | |
|:---|:---|:---|
| | The Hachijuni Bank, Ltd.<br> (Wholly-owning parent company after the share exchange) | The Nagano Bank, Ltd.<br> (Wholly-owned subsidiary after the share exchange) |
| Share Exchange Ratio | 1 | 2.54 |
| Number of shares to be issued for the Share Exchange | Common stock of Hachijuni Bank: 22,664,539 shares (planned) | Common stock of Hachijuni Bank: 22,664,539 shares (planned) |

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(Note 1) The ratio of allotment of shares

For each share of common stock of Nagano Bank, 2.54 shares of common stock of Hachijuni Bank will be allotted. However, no shares will be allotted through the Share Exchange for the 152,000 shares of common stock of Nagano Bank held by Hachijuni Bank (as of December 31, 2022).

(Note 2) Number of new shares to be issued by Hachijuni Bank in the Share Exchange (Planned)

Common stock of Hachijuni Bank: 22,664,539 shares (planned)

The number of common stocks stated above was calculated based on 9,259,356 shares considering the number of issued and outstanding common stocks of Nagano Bank (9,258,856 shares) as of December 31, 2022 and the 500 shares of common stock under the assumption that all of the stock acquisition rights issued by Nagano Bank (a total of five rights) are to be exercised within 30 days from the day after such date of approval in accordance with the provisions of the issuing guidelines, etc., and converted to 500 shares of common stock of Nagano Bank, subject to the approval of the Share Exchange Agreement by the Extraordinary Meeting of Shareholders of Nagano Bank to be held on March 24, 2023. Provided, however, that Nagano Bank plans to cancel all of its treasury shares no later than the time immediately before the Share Exchange takes effect (hereinafter, the "Record Time"). Accordingly, the treasury shares of Nagano Bank as of December 31, 2022 (184,309 shares) have been excluded from the above calculation of issuance of new shares of Hachijuni Bank. Also, the 152,000 shares of common stock of Nagano Bank held by Hachijuni Bank as of December 31, 2022 have been excluded from the above calculation of issuance of new shares of Hachijuni Bank.

The number of new shares to be allotted by Hachijuni Bank may change in case the number of treasury stocks of Nagano Bank as of December 31, 2022 changes by the Record Time, including due to the exercise of the right to request the purchase of shares by the shareholders of Nagano Bank.

(Note 3) Handling of shares constituting less than one unit

When the Business Integration is consummated, shareholders of Nagano Bank who receive shares constituting less than one unit (100 shares) of the common stock of Hachijuni Bank (hereinafter, the "Shares Constituting Less Than One Unit") in the Share Exchange may not sell Shares Constituting Less Than One Unit on the Tokyo Stock Exchange Inc. or any other financial instruments exchange. Shareholders who will own such Shares Constituting Less Than One Unit may request Hachijuni Bank to purchase the Shares Constituting Less Than One Unit pursuant to the provisions of Article 192, Paragraph 1 of the Companies Act. In addition, such shareholders may request Hachijuni Bank to sell the number of shares needed to constitute one unit together with the Shares Constituting Less Than One Unit held by such a shareholder pursuant to the provisions of Article 194, Paragraph 1 of the Companies Act and the Articles of Incorporation of Hachijuni Bank, unless Hachijuni Bank does not have the number of treasury stock referred to in the request of sale.

(Note 4) Processing of fractional shares constituting less than one stock

In case fractional shares are included in the number of the common stock of Hachijuni Bank to be allotted in the Share Exchange, Hachijuni Bank shall deliver monies in the amount corresponding to such factional share to the shareholders of Nagano Bank who will receive such fractional shares, pursuant to the provisions of Article 234 of the Companies Act and other relevant laws and regulations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Basis for the details of allotment in the Share Exchange

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I. Basis and reason for the allotment

As stated in the above "1. (1) Background of the Business Integration," the Banks reached a basic agreement on promoting discussions and analysis towards the Business Integration on September 28, 2022, and engaged in discussions and review by the establishment of the Business Integration Committee to implement the Business Integration with June 1, 2023 (planned) as the Effective Date of the Share Exchange.

As stated in below "III. Measures to ensure fairness," to secure the fairness of the compensation for the Share Exchange and fairness of the Business Integration otherwise, Hachijuni Bank has selected Nomura Securities Co., Ltd. (hereinafter, "Nomura Securities") as its third-party valuation institution, and Iwata Godo Attorneys and Counsellors at Law as the legal advisor and commenced review of the Business Integration. As a result of careful discussion and review referencing the share exchange ratio calculation report dated January 19, 2023, received from the third party valuation institution Nomura Securities, and the legal advice by the legal advisor Iwata Godo Attorneys and Counsellors at Law, Hachijuni Bank determined that implementing the Business Integration based on the Share Exchange Ratio stated in above "(i) Details of the allotment in the Share Exchange" is appropriate.

On the other hand, as stated in below "III. Measures to ensure fairness," to secure the fairness of the compensation for the Share Exchange and fairness of the Business Integration otherwise, Nagano Bank has selected Daiwa Securities Co. Ltd. (hereinafter, "Daiwa Securities") as its third-party valuation institution, and Nagashima Ohno & Tsunematsu as its legal advisor and commenced review of the Business Integration. As a result of careful discussion and review referencing the share exchange ratio calculation report dated January 19, 2023, received from the third party valuation institution Daiwa Securities, and the legal advice by the legal advisor Nagashima Ohno & Tsunematsu, Nagano Bank determined that implementing the Business Integration based on the Share Exchange Ratio stated in above "(i) Details of the allotment in the Share Exchange" is appropriate.

The Banks have comprehensively considered factors including the market price of the shares, financial status, and future outlook based on the result of mutual due diligence referencing the results of calculation and analysis by the third-party valuation institutions and advice by the legal advisors, and engaged in a series of careful negotiation and discussion on the Share Exchange Ratio between the Banks. Consequently, the Banks have ultimately reached a decision that the Share Exchange Ratio stated in the above "(i) Details of the allotment in the Share Exchange" is appropriate, and agreed on the Share Exchange Ratio in the Share Exchange with a resolution by the respective Board of Directors of the Banks held on January 20, 2023.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;II. Matters concerning the calculation

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The names of valuation institutions and their relations with the Banks

Nomura Securities and Daiwa Securities, who are the financial advisor (third-party valuation institutions) of Hachijuni Bank and Nagano Bank, respectively, are third-party valuation institutions independent from the Banks, who do not fall under related parties and do not have a material conflict of interest that must be stated concerning the Business Integration.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Overview of the calculation

To ensure fairness of the calculation of the Share Exchange Ratio to be used for the Share Exchange, Hachijuni Bank selected Nomura Securities, and Nagano Bank selected Daiwa Securities as the respective third-party valuation institutions and separately requested the calculation and analysis of the Share Exchange Ratio.

Considering that the common stock of Hachijuni Bank is listed on the Tokyo Stock Exchange's Prime Market and the market price is available, Nomura Securities calculated the value of the common stock of Hachijuni Bank using the average Market Share Price Analysis.

Nomura Securities calculated the value of the common stock of Nagano Bank by applying: (a) the average Market Share Price Analysis considering that the common stock of Nagano Bank is listed on the Tokyo Stock Exchange's Standard Market and the market price is available; (b) the Comparable Companies Analysis considering that Nagano Bank has multiple comparable listed companies to enable estimation of the value of its stock; and (c) the dividend discount model method (hereinafter, the "DDM Analysis") which analyzes the value of the stock by discounting the profit attributable to shareholders after retained earnings, etc., necessary for maintaining the particular capital structure to the present value using the cost of capital which is widely utilized for valuation of financial institutions, to reflect the status of the future business activities to the valuation. Ranges for the Share Exchange Ratio calculated with the value of one common stock of Hachijuni Bank as "1" are as stated below:

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| | | |
|:---|:---|:---|
| | Calculation method | Range of Share Exchange Ratio |
| 1 | Market Share Price Analysis (Reference Date 1) | 2.48 – 2.75 |
| 2 | Market Share Price Analysis (Reference Date 2) | 2.45 – 2.54 |
| 3 | Comparable Companies Analysis | 2.04 – 2.65 |
| 4 | DDM Analysis | 2.14 – 3.10 |

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For the average Market Share Price Analysis, the business day before September 28, 2022 on which the execution of the Basic Agreement was announced, is set as the reference date for the calculation (hereinafter, "Reference Date 1" in this press release), and the closing price on Reference Date 1 and simple average of the closing price on trading days for the period of five business days, one month, three months, and six months before Reference Date 1 have been applied. In addition, January 19, 2023, is also set as the reference date for the calculation (hereinafter, "Reference Date 2" in this press release), and the closing price on Reference Date 2 and simple average of the closing price on trading days for the period of five business days, one month, three months, and six months before Reference Date 2 have been applied.

Nomura Securities calculated the Share Exchange Ratio using the information provided by the Banks and publicly available information under the assumption that such materials and information are all accurate and complete and have not independently reviewed the accuracy or completeness of such information. In addition, independent assessment, appraisal, or valuation have not been performed on the assets and liabilities (including contingent liabilities) of the Banks and their associated companies (referring to "Associated Companies" as defined in Article 8, Paragraph 8 of the Regulation on Terminology, Forms, and Preparation Methods of Financial Statements; hereinafter the same), including analysis and assessment of independent assets and liabilities, and no requests have been made to third party agencies for appraisal or evaluation. Nomura Securities' Share Exchange Ratio calculation reflects information and economic conditions up to January 19, 2023. The financial forecasts by Nagano Bank (including profit plans and other information) are based on Nagano Bank's future forecasts for the fiscal year ending March 31, 2023 and thereafter, which incorporates various factors such as the business plan provided by Nagano Bank and confirmed by Hachijuni Bank, interviews with Nagano Bank and publicly available information. The sole purpose of Nomura Securities' calculation is to be used as reference by the Board of Directors of Hachijuni Bank to discuss the Share Exchange Ratio.

There are no fiscal years with a significant increase or decrease in profits in the future financial forecasts of Nagano Bank for the period that Nomura Securities based its DDM Analysis valuation.

Daiwa Securities calculated the Share Exchange Ratio for the Banks by applying: (a) the Market Share Price Analysis considering that the common stocks of Hachijuni Bank and Nagano Bank are listed on the Tokyo Stock Exchange's Prime Market and Standard Market, respectively, and the market price of the stocks are available; (b) the Comparable Companies Analysis considering that the Banks have multiple comparable listed companies to enable estimation of the value of stocks; and (c) the DDM Analysis to reflect the status of the future business activities to the valuation.

The results of the Share Exchange Ratio calculation using the above-stated valuation methods with the value of one common stock of Hachijuni Bank as "1" are as stated below:

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| | | |
|:---|:---|:---|
| | Calculation method | Range of Share Exchange Ratio |
| 1 | Market Share Price Analysis | 2.45 – 2.54 |
| 2 | Comparable Companies Analysis | 1.68 - 2.51 |
| 3 | DDM Analysis | 2.41 - 3.23 |

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For the Market Share Price Analysis, the date of the share exchange ratio calculation report, January 19, 2023, (Reference Date 2) was used as the reference date for the calculation, and the ratio was calculated using the closing price of the shares on Reference Date 2, and the average closing prices for the periods of one, three, and six months to Reference Date 2.

Daiwa Securities calculated the Share Exchange Ratio using the materials and information provided by the Banks and publicly available information as is in principle, assuming that all materials and information used for the analysis and review were accurate and complete. Daiwa Securities have not independently reviewed the accuracy or completeness of such materials and information, and it is not obligated to do so. In addition, Daiwa Securities have not performed an independent assessment, appraisal, or valuation on any assets and liabilities, including analysis and evaluation of individual assets and liabilities (including but not limited to financial derivatives, off-balance sheet assets and liabilities, and other contingent liabilities) of the Banks and their associated companies, including analysis and assessment of independent assets and liabilities, and no requests have been made to third party agencies for assessment, appraisal or evaluation. Daiwa Securities have assumed that the business plans, financial forecasts, and other information concerning the future were prepared based on the best forecast and judgment at such time by the respective management of the Banks and in accordance with reasonable and appropriate procedures. With the consent of Nagano Bank, Daiwa Securities have relied on the business plans, financial forecasts, and other information concerning the future of Nagano Bank and Hachijuni Bank without independent review of the accuracy, appropriateness, or feasibility of such information. Calculation of the Share Exchange Ratio by Daiwa Securities is based on the financial, economic, and other situations as of January 19, 2023. A significant increase or decrease in profits is not expected in the future business plans by the Banks underlying the DDM Analysis calculation by Daiwa Securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;III. Measures to ensure fairness

Hachijuni Bank has implemented the following measures to ensure fairness of the Business Integration:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Obtaining a share exchange ratio calculation report by an independent third-party valuation institution

To ensure fairness of the Business Integration, Hachijuni Bank has selected Nomura Securities as its third-party valuation institution as stated in above "I. Basis and reason for the allotment," and obtained a share exchange ratio calculation report to use as the basis of agreement on the Share Exchange Ratio to be applied to the Share Exchange. Hachijuni Bank has engaged in negotiation and discussion with Nagano Bank referencing the analysis and opinions of Nomura Securities as its third-party valuation institution, and at its Board of Directors' meeting held on January 20, 2023, resolved to implement the Share Exchange with the Share Exchange Ratio stated in above "(1) (i) Details of the allotment in the Share Exchange."

Hachijuni Bank has not obtained an opinion (fairness opinion) from Nomura Securities on the appropriateness of the Share Exchange Ratio from a financial point of view.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Advice from an independent law firm

Hachijuni Bank has obtained legal advice from Iwata Godo Attorneys and Counselors at Law, a legal advisor independent from the Banks, on the decision-making methods, processes, and other procedures of Hachijuni Bank concerning the Business Integration to ensure fairness and appropriateness of the decision-making of the Board of Directors.

On the other hand, Nagano Bank has implemented the following measures to ensure fairness of the Business Integration:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Obtaining a share exchange ratio calculation report by an independent third-party valuation institution

To ensure fairness of the Business Integration, Nagano Bank has selected Daiwa Securities as its third-party valuation institution as stated in above "(1) (ii) I. Basis and reason for the allotment," and obtained a share exchange ratio calculation report to use as the basis of agreement on the Share Exchange Ratio to be applied to the Share Exchange. Furthermore, Nagano Bank has engaged in negotiation and discussion with Hachijuni Bank referencing the analysis and opinions of Daiwa Securities as its third-party valuation institution, and at its Board of Directors' meeting held on January 20, 2023, resolved to implement the Share Exchange with the Share Exchange Ratio stated in above "(1) (i) Details of the allotment in the Share Exchange."

Nagano Bank has not obtained an opinion (fairness opinion) from Daiwa Securities on the appropriateness of the Share Exchange Ratio from a financial point of view.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Advice from an independent law firm

Nagano Bank has obtained legal advice on its decision-making methods, processes, and other procedures of Nagano Bank concerning Business Integration from Nagashima Ohno & Tsunematsu, a legal advisor independent from the Banks, to ensure fairness and appropriateness of the decision-making of the Board of Directors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IV. Measures to avoid conflicts of interest

Special measures have not been implemented as no specific conflicts of interest will arise from the Share Exchange between Hachijuni Bank and Nagano Bank.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Reason Why the Common Stock of Hachijuni Bank was Selected as Consideration for the Exchange

Nagano Bank deemed the common stock of Hachijuni Bank appropriate as the consideration for the Share Exchange, given that (i) trading opportunities for the common stock of Hachijuni Bank which will be allotted to shareholders of Nagano Bank are secured because the common stock of Hachijuni Bank will remain listed on the Tokyo Stock Exchange's Prime Market and its liquidity and cashability will be kept intact, even after delisting of the common stock of Nagano Bank; and (ii) shareholders of Nagano Bank who will hold the common stock of Hachijuni Bank will be able to benefit from the effects of the integration brought by Nagano Bank becoming a wholly-owned subsidiary of Hachijuni Bank.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Matters Related to the Appropriateness of the Amount of Capital and Reserves of Hachijuni Bank

The amount of capital and reserves of Hachijuni Bank to be increased through the Share Exchange shall be as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Amount of share capital to be increased: ¥0

(ii) Amount of capital reserve to be increased: The amount separately determined by Hachijuni Bank in accordance with the Regulation on Corporate
Accounting

(iii) Amount of retained earnings reserve to be increased: ¥0

The amount of share capital and reserves were determined within the scope provided for in the Regulations on Company Accounting, after comprehensively studying and accounting for the size of Hachijuni Bank and other circumstances, and therefore considered appropriate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. Matters of Reference regarding the Consideration for the Exchange

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Provisions
 of the Articles of Incorporation of Hachijuni Bank

The Articles of Incorporation of the Hachijuni Bank Ltd. are omitted in the written documents ("documents stating the Electronic Provision Measures Matters") sent to shareholders who have made a Request for Delivery of Document, in accordance with laws and regulations, and the provisions of Article 17 of the existing Articles of Incorporation of Nagano Bank.However, they are posted to the websites of Nagano Bank (https://www.naganobank.co.jp/site/kabu/sokai.html) and the TSE (https://www2.jpx.co.jp/tseHpFront/JJK010010Action.do?Show=Show).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Matters
 Concerning the Conversion Method of the Consideration for the Exchange into Cash

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Market on which the consideration for the exchange is traded

The common stock of Hachijuni Bank is traded at the Tokyo Stock Exchange's Prime Market.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The person acting as intermediary, broker, or agency for trading the consideration for the exchange

Securities companies in Japan act as intermediary, broker or agency for trading the common stock of Hachijuni Bank.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Restriction on the transfer or other disposition of the consideration for the exchange, and the details thereof

There are no matters to report.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Matters Concerning the Market Price of the Consideration for the Exchange

Given that the business day before January 20, 2023 on which the execution of the Share Exchange Agreement was announced is set as the reference date, the average of the closing price of Hachijuni Bank's share on trading days of the Tokyo Stock Exchange's Prime Market for the period of one month, three months, and six months were ¥547, ¥509, and ¥496, respectively (any fraction of less than ¥1 is rounded off).

The latest share price and information of the common stock of Hachijuni Bank are available at the website of the Tokyo Stock Exchange (<u>https://www.jpx.co.jp/</u>).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) Details of the Balance Sheets of Hachijuni Bank Pertaining to Each Business Year of Which Last Day has
Arrived in the Past Five Years

The details of the balance sheets are omitted because Hachijuni Bank files securities report each business year in accordance with the provisions of Article 24, Paragraph 1 of the Financial Instruments and Exchange Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. Matters Concerning the Appropriateness of the Provisions for Stock Acquisition Rights Pertaining to the
Share Exchange

If the Share Exchange Agreement is approved at the Extraordinary Meeting of the Shareholders, in relation to the Share Exchange, all of the stock acquisition rights issued by Nagano Bank will be exercised within 30 days from the day after the approval in accordance with the issuing guidelines of the stock acquisition rights. Nagano Bank has not issued bonds with stock acquisition rights.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. Matters Related to Financial Statements, etc.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Details of Financial Statements Pertaining to the Most Recent Business Year of Hachijuni Bank

The details of financial statements pertaining to the most recent business year (fiscal year ending March 31, 2022) of Hachijuni Bank are as shown on the pages 1 through 39 of the enclosed "Reference Documents for the Extraordinary Meeting of the Shareholders."

The details of financial statements pertaining to the most recent business year (fiscal year ending March 31, 2022) of Hachijuni Bank are as shown on the pages 1 through 39 of the enclosed "Reference Documents for the Extraordinary Meeting of the Shareholders." The information on the following matters of the Hachijuni Bank Ltd. is omitted in the written documents ("documents stating the Electronic Provision Measures Matters") sent to shareholders who have made a Request for Delivery of Document, in accordance with laws and regulations, and the provisions of Article 17 of the existing Articles of Incorporation of Nagano Bank.

However, they are posted to the websites of Nagano Bank (https://www.naganobank.co.jp/site/kabu/sokai.html) and the TSE (https://www2.jpx.co.jp/tseHpFront/JJK010010Action.do?Show=Show).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) "Particulars
 related to share options," "Basic policy concerning the requirements for the
 person controlling the decision of the financial and business policies," "Systems
 for ensuring proper business activities," "Matters regarding specified wholly-owned
 subsidiary company," "Transaction between the company and its parent company,
 etc.," and "Other" included in the business report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) "Statement
 of changes in shareholders' equity, etc." and "Table of explanatory notes"
 included in the financial statements; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) "Consolidated
 statement of change in shareholders' equity, etc." and "Tables of explanatory
 notes on consolidated financial statements," included in the consolidated financial
 statements

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Details of Events Occurred in Hachijuni Bank After the Last Day of the Most Recent Business Year That
Have Material Impact on the Status of the Company Assets

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Conclusion of the Share Exchange Agreement

Hachijuni Bank resolved to conclude the Share Exchange Agreement with Nagano Bank at its Board of Directors Meeting held on January 20, 2023 and entered into the Agreement on the same day. The details of the Share Exchange Agreement are as stated in the above "2. Details of the Share Exchange Agreement."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Acquisition and cancellation of treasury share

At the Board of Directors Meeting held on April 28, 2022, Hachijuni Bank resolved the following: the acquisition of its treasury share in accordance with the provisions of Article 156 of the Companies Act as applied following the deemed replacement of terms pursuant to the provisions of Article 165 Paragraph 3 of the same Act, and the cancellation of the shares pursuant to the provisions of Article 178 of the same Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I. Details of matters regarding the acquisition of shares

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Class of shares to be acquired: Common stock

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Total number of shares to be acquired: Up to 20,000,000 shares

(Proportion to the total issued and outstanding shares (including treasury share): 4.08%)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Total acquisition cost of the shares to be acquired: Up to ¥10,000,000,000

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Acquisition period: From May 2, 2022 to March 31, 2023

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Acquisition method: Market buying including Purchases through Off-Floor Treasury Share Repurchase Trading (ToSTNeT-3)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;II. Details of matters regarding the cancellation of shares

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Class of shares to be cancelled: Common stock

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Total number of shares to be cancelled: 20,000,000 shares

(Proportion to the total issued and outstanding shares (including treasury share) before the cancellation: 3.91%)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Scheduled cancellation date: May 20, 2022

Hachijuni Bank has acquired 6,435,500 shares of common stock (total acquisition cost: ¥2,999,979,100) by December 31, 2022, and cancelled 20,000,000 shares of common stock by May 20, 2022 in accordance with the above resolution.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Details of Events Occurred in Nagano Bank After the Last Day of the Most Recent Business Year That Have
Material Impact on the Status of the Company Assets

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Conclusion of the Share Exchange Agreement

Nagano Bank resolved to conclude the Share Exchange Agreement with Hachijuni Bank at its Board of Directors Meeting held on January 20, 2023 and entered into the Agreement on the same day. The details of the Share Exchange Agreement are as stated in the above "2. Details of the Share Exchange Agreement."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Cancellation of treasury share

Nagano Bank shall, by resolutions of its Boards of Directors Meeting held by no later than the day prior to of the Effective Date, cancel all of its treasury shares (including the stock acquired by Nagano Bank in response to the right to request the purchase of shares exercised by Nagano Bank's shareholders in relation to the Share Exchange as set forth in Article 785 of the Companies Act) that it holds immediately prior to the time when the Share Exchange comes into effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. Matters Concerning Resolution of the Proposal

The proposal shall be null and void if the Share Exchange Agreement was cancelled, pursuant to the provisions of Article 9 (Amendment and Cancellation of the Agreement); or if the Share Exchange Agreement loses its effect, pursuant to the provisions of Article 10 (Approval and Effect of the Agreement).

Proposal 2 Partial Amendment to the Articles of Incorporation

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Reasons for proposal

If the Proposal 1 (Approval of the Share Exchange Agreement) is approved at the Extraordinary Meeting of the Shareholders, and if the Share Exchange takes effects on the Effective Date (June 1, 2023 (planned)); Hachijuni Bank will be the sole shareholder of Nagano Bank commencing with the Effective Date.

Accordingly, Nagano Bank no longer needs to establish the Record Date for Annual General Meetings of the Shareholders. Consequently, we will abolish the Record Date system, and delete Article 11 of the existing Articles of Incorporation as well as renumbering and amending the relevant provisions thereof (hereinafter, "Amendment").

The Amendment shall take effect on May 31, 2023 subject to the approval of Proposal 1 (Approval of the Share Exchange Agreement) at the Extraordinary Meeting of the Shareholders, and the fact that the Share Exchange Agreement has not ceased to be effective by the date immediately before May 31, 2023.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Details of the Amendment

We propose to make the following changes to parts of the existing Articles of Incorporation.

(Changes are underlined.)

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| | |
|:---|:---|
| Existing Articles of Incorporation | Proposed changes |
| &nbsp;&nbsp;Article 1 to Article 10 (Provisions omitted) | Article 1 to Article 10 (No changes)<br>|
| &nbsp;&nbsp;<u>(Record Date)</u> | &nbsp;&nbsp;(Deleted) |
| &nbsp;&nbsp;<u>Article 11</u> |  |
| &nbsp;&nbsp;<u>Shareholders listed or recorded in the shareholder register as of the 31st of March each year shall be the shareholders having rights exercisable in the Annual General Meeting of the Shareholders held in relation to the corresponding business year.</u> |  |
| <u>2. In addition to the preceding paragraph, If necessary, the Company may set the Record Date with a prior public notice thereof by a resolution of the Board of Directors.</u><br>|  |
| &nbsp;&nbsp;<u>Article 12</u> to <u>Article 13</u> (Provisions omitted) | &nbsp;&nbsp;<u>Article 11</u> to <u>Article 12</u> (Renumber the articles. Provisions unchanged) |

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| | |
|:---|:---|
| Existing Articles of Incorporation | Proposed changes |
| &nbsp;&nbsp;(Class A Preferred Dividends) | &nbsp;&nbsp;(Class A Preferred Dividends) |
| &nbsp;&nbsp;<u>Article 13-2</u> | &nbsp;&nbsp;<u>Article 12-2</u> |
| &nbsp;&nbsp;In the event of distributing dividends from surplus provided for in <u>Article 40</u>, the Company shall distribute cash dividends in such respective amount as prescribed below to the holders of Class A Preferred Stock (hereinafter, the "Class A Preferred Shareholders") or registered share pledgees who hold pledges over Class A Preferred Stock (hereinafter, the "Registered Class A Preferred Stock Pledgees"), whose names have been listed or recorded in the final shareholder register as of the Record Date for the said dividend distribution form surplus, with priority over the holders of common stock (hereinafter, the "Common Shareholders") or registered share pledgees who hold pledges over the common stock (hereinafter, the "Registered Common Stock Pledgees"). The amount of such cash dividend (hereinafter, the "Class A Preferred Dividend") shall be calculated by multiplying the subscription price per each relevant Class A Preferred Stock (provided, however; this shall be appropriately adjusted in the event of a stock split, gratis allotment of shares, reverse stock split or any other similar event of Class A Preferred Stock) by the annual dividend ratio resolved by the Board of Directors prior to the issuance of Class A Preferred Stock. The annual dividend ratio shall be up to 8.0%. Provided, however, if any Class A Preferred Interim Dividend stipulated in <u>Article 13-3</u> has been paid to the Class A Preferred Shareholders or the Registered Class A Preferred Stock Pledgees during the business year to which the said Record Date belongs; the amount of the interim dividend will be deducted from the aforementioned dividend amount. | &nbsp;&nbsp;In the event of distributing dividends from surplus provided for in <u>Article 39</u>, the Company shall distribute cash dividends in such respective amount as prescribed below to the holders of Class A Preferred Stock (hereinafter, the "Class A Preferred Shareholders") or registered share pledgees who hold pledges over Class A Preferred Stock (hereinafter, the "Registered Class A Preferred Stock Pledgees"), whose names have been listed or recorded in the final shareholder register as of the Record Date for the said dividend distribution form surplus, with priority over the holders of common stock (hereinafter, the "Common Shareholders") or registered share pledgees who hold pledges over the common stock (hereinafter, the "Registered Common Stock Pledgees"). The amount of such dividend (hereinafter, the "Class A Preferred Dividend") shall be calculated by multiplying the subscription price per each relevant Class A Preferred Stock (provided, however; this shall be appropriately adjusted in the event of a stock split, gratis allotment of shares, reverse stock split, or any other similar event of Class A Preferred Stock) by the annual dividend ratio resolved by the Board of Directors prior to the issuance of Class A Preferred Stock. The annual dividend ratio shall be up to 8.0%. Provided, however, if any Class A Preferred Interim Dividend stipulated in <u>Article 12-3</u> has been paid to the Class A Preferred Shareholders or the Registered Class A Preferred Stock Pledgees during the business year to which the said Record Date belongs; the amount of the interim dividend will be deducted from the aforementioned dividend amount. |
| &nbsp;&nbsp;2, 3 (Provisions omitted) | 2,3 (Unchanged)<br>|
| &nbsp;&nbsp;(Class A Preferred Interim Dividends) | &nbsp;&nbsp;(Class A Preferred Interim Dividends) |
| &nbsp;&nbsp;<u>Article 13-3</u> | &nbsp;&nbsp;<u>Article 12-3</u> |
| &nbsp;&nbsp;In the event of distributing interim dividends stipulated in <u>Article 41</u>, the Company shall pay monies to the Class A Preferred Shareholders or the Registered Class A Preferred Stock Pledgees whose names have been listed or recorded in the final shareholder register as of the Record Date for the interim dividend, with priority over the Common Shareholders or the Registered Common Stock Pledgees. The amount of such interim dividend shall be up to one-half of the Class A Preferred Dividend per share of Class A Preferred Stock (hereinafter, the "Class A Preferred Interim Dividend"). | &nbsp;&nbsp;In the event of distributing interim dividends stipulated in <u>Article 40</u>, the Company shall pay monies to the Class A Preferred Shareholders or the Registered Class A Preferred Stock Pledgees whose names have been listed or recorded in the final shareholder register as of the Record Date for the interim dividend, with priority over the Common Shareholders or the Registered Common Stock Pledgees. The amount of such interim dividend shall be up to one-half of the Class A Preferred Dividend per share of Class A Preferred Stock (hereinafter, the "Class A Preferred Interim Dividend"). |
| &nbsp;&nbsp;<u>Article 13-4</u> to <u>Article 19</u> (Provisions omitted) | &nbsp;&nbsp;<u>Article 12-4</u> to <u>Article 18</u> (Renumber the articles. Provisions unchanged) |

---

---

| | |
|:---|:---|
| Existing Articles of Incorporation | Proposed changes |
| &nbsp;&nbsp;(General Meetings of Class Shareholders) | &nbsp;&nbsp;(General Meetings of Class Shareholders) |
| &nbsp;&nbsp;<u>Article 20</u> | &nbsp;&nbsp;<u>Article 19</u> |
| &nbsp;&nbsp;<u>The provisions of Articles 16; 17; 18, Paragraph 1; and 19</u> shall apply mutatis mutandis to General Meetings of Class Shareholders. | &nbsp;&nbsp;<u>The provisions of Articles 15; 16; 17, Paragraph 1; and 18</u> shall apply mutatis mutandis to General Meetings of Class Shareholders. |
| &nbsp;&nbsp;<u>2 The provisions of Article 11 shall apply mutatis mutandis to General Meetings of Class Shareholders held on the same day as an Annual General Meeting of the Shareholders.</u> | &nbsp;&nbsp;(Deleted) |
| &nbsp;&nbsp;<u>3</u> Resolutions of General Meetings of Class Shareholders prescribed in Article 324, Paragraph 2 of the Companies Act shall be made by at least two-thirds of the voting rights of the shareholders present at the relevant General Meeting of Class Shareholders where shareholders holding at least one-third of the voting rights that may be exercised are present. | <u>2</u> Resolutions of General Meetings of Class Shareholders prescribed in Article 324, Paragraph 2 of the Companies Act shall be made by at least two-thirds of the voting rights of the shareholders present at the relevant General Meeting of Class Shareholders where shareholders holding at least one-third of the voting rights that may be exercised are present.<br>|
| &nbsp;&nbsp;<u>Article 21</u> to <u>Article 42</u> (Provisions omitted) | &nbsp;&nbsp;<u>Article 20</u> to <u>Article 41</u> (Renumber the articles. Provisions unchanged) |

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Proposal 3 Partial Revision of the Compensation Limits for Performance-linked Stock Compensation Plan for Directors due to the Stock Exchange

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Reasons for the Proposal and Why the Proposal Is Reasonable

At the 57th Annual General Meeting of the Shareholders of Nagano Bank held on June 24, 2016, Nagano Bank received approval for introduction of a performance-linked stock compensation plan (hereinafter, the "Plan") to directors of Nagano Bank (excluding outside directors; the same applies hereinafter with respect to this proposal). At the 62nd Annual General Meeting of the Shareholders held on June 25, 2021, Nagano Bank received the approval for reestablishing the compensation limits due to the amendment to the Companies Act (hereinafter the resolution made at each of the said Annual General Meetings of the Shareholders are collectively referred to as the "Original Resolutions"), and the Plan has continued operation until now. As in the Proposal 1, Nagano Bank has planned to execute a business integration with Hachijuni Bank through a share exchange, and will be a wholly-owned subsidiary of Hachijuni Bank once the Business Integration takes place. After the Business Integration, Nagano Bank would like to maintain the Plan as a performance-linked stock compensation plan which is linked to the common stock of Hachijuni Bank, the wholly-owning parent company to be, in lieu of the stock of Nagano Bank; and thus ask for approval for a revision of the existing compensation limits of the Plan for the directors.

We believe the proposal is appropriate because of the following reasons. This proposal is a procedural matter associated with the Business Integration through the share exchange and is not to raise the actual limits compared with the compensation limits under the Original Resolutions. As in the Original Resolutions, the changes to the Plan are intended to further clarify the link between the compensation of directors, and the business performance and stock price of Hachijuni Bank and Nagano Bank; and to enhance the motivation of directors to contribute to the improvement of the medium- to long-term corporate value by sharing not only benefits of share price increase but also risks of share price decline with the shareholders; which is also in compliance with Nagano Bank's Policy for Decisions on the Details of Directors' Individual Compensation, etc. (Please refer to the Business Report [pages 20 to 22 of the 63rd Annual General Meeting of the Shareholders as of June 2, 2022]).

This proposal is to ask for approval for the amount and details of Nagano Bank's directors compensation under the Plan, separately from the amount of directors compensation (¥180 million) which was approved at the Annual General Meeting of the Shareholders held on June 26, 2009. Nagano Bank kindly asks our shareholders to leave the decisions on the details of the Plan within the limits #2 below to the Board of Directors.

The number of directors subject to the Plan is six as of now.

The resolution of the proposal will become effective on June 1, 2023, subject to that the Proposal 1 "Approval of the Share Exchange Agreement" is approved as proposed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Details and the Amount of Compensation, etc. of the Plan

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Outline
 of the Plan (Main changes are underlined.)

(i) Beneficiaries
 of the Plan •
 Directors (outside directors are out of the scope of the Plan.)

(ii) Total
 amount of shares acquired (As
 shown in (2) below) •
 ¥50 million per fiscal year (¥150 million per target period)

(iii) Acquisition
 method and the number of <u>the parent company's shares</u> to be acquired through
 the trust (As
 shown in (2) and (3) below) •
 Shares will be acquired through the exchange market or purchasing <u>Hachijuni Bank</u> 's
 treasury share. • <u>63,500 shares per fiscal year (equivalent to 25,000 points)</u> 

(iv) Timing
 of the delivery of <u>the parent company's shares</u> (As
 shown in (5) below) After
 the retirement of director's position (If they are dismissed by a shareholders resolution, the director is unable to obtain
 the right to receive the benefit.)

The Plan is a performance-linked stock compensation plan where the shares of the parent company are acquired through the trust (hereinafter, the "Trust") with the monies contributed by Nagano Bank as underlying resource, and the parent company's shares and the monies equivalent to the converted value of such shares (hereinafter, the "Parent Company's Shares, etc.") are delivered to directors, in accordance with the regulations for the directors stock compensation stipulated by Nagano Bank.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Amount of Trust

Nagano Bank implemented the Plan for the three years commencing with the fiscal year ended March 31, 2017 to the fiscal year ended March 31, 2019 (hereinafter, the three fiscal years and each three-fiscal-year period following the initial three years are severally called "Target Period".) and each Target Period thereafter. For the initial Target Period, Nagano Bank contributed monies up to ¥150 million as acquisition cost for shares to be delivered to the directors of Nagano Bank in accordance with the Plan, and established the Trust whose beneficiaries are the directors of Nagano Bank who are eligible beneficiaries. The Trust has acquired 765,000 shares of Nagano Bank's stock during the initial Target Period using the monies trusted by Nagano Bank as underlying resources.

Even after the end of the initial Target Period, Nagano Bank continues to make additional contributions up to ¥150 million for each Target Period until the Plan ends. However, when making such additional contributions, if there are remaining shares of the parent company (excluding those that correspond to points given to directors, for which the shares has yet to be given to the directors) and monies (hereinafter, the "Remaining Shares, etc.") in the trust assets on the last day of the Target Period immediately before the Target Period for which additional contributions are to be made, then the sum of the amount of the Remaining Shares, etc. (the book value as of the end of the last Target Period in the case of the parent company shares) and the amount of additional contribution shall be within the limit that will be approved as proposed by this proposal. If Nagano Bank decides to make additional contributions, it will disclose such effect in a timely and appropriate fashion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Acquisition Method and the Number of the Parent Company's Shares to Be Acquired Through the Trust

Acquisition of the parent company's shares through the Trust is executed by acquiring the parent company's shares from the stock market or purchasing Hachijuni Bank's treasury share, with the monies contributed as in (2) above as underlying resources. Since the points granted to directors are up to 25,000 per fiscal year, the number of parent company's shares to be acquired by the Trust for each Target Period is up to 190,500 shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) Maximum Number of the Parent Company's Shares, etc. to Be Delivered to Directors

For each business year, Nagano Bank's directors are given the number of points determined based on factors such as their positions, the business performance, and the levels of achievement of the relevant medium-term management plan, in accordance with the regulations on directors compensation. The total number of points granted to directors per fiscal year is up to 25,000 points. Nagano Bank decided the number of points, considering the current levels of directors compensation, and trend and outlook of the number of directors in a comprehensive manner, and thus deems appropriate.

The points given to directors are converted, when delivering the Parent Company's Shares, etc. to directors as in (5) below, at 2.54 shares of the parent company shares per point (however, the maximum number of points, the number of given points, and the conversion rate will be reasonably adjusted if a stock split, gratis allotment of shares, reverse stock split or other similar event of the parent company shares takes place after the approval of the proposal.).

The proportion of the number of parent company's shares (63,500 shares), which is equivalent to the maximum number of points given to directors per fiscal year, to the total number of issued and outstanding shares (as of September 30, 2022 net of the treasury share) is approximately 0.013%.

The number of points given to directors, which is the basis for delivering the Parent Company's Shares, etc. in (5) below, in principle, is the cumulative number of points given to the directors until their retirement (hereinafter, the points calculated in this manner are called the "Finalized Points".).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) Delivery of the Parent Company's Shares, etc.

If a director has retired and satisfied the beneficiary requirements, the director may receive from the Trust, after their retirement, the number of the parent company's shares based on the Finalized Points provided for in (4) above in principle, by following the procedures for the settlement of the beneficial interests. If, however, a director satisfies the requirements stipulated in the regulations on directors compensation, the director may receive the amount of monies equivalent to the market price of the parent company's shares in lieu of the parent company's shares, within a certain percentage. The Trust may sell shares of the parent company in order to deliver such monies.

Even if a director has been granted points by Nagano Bank, the director will be unable to obtain the right to receive the Parent Company's Shares, etc. if they are dismissed by a resolution of a General Meeting of the Shareholders.

Note section

Note section

**Articles of Incorporation**

**of The Hachijuni Bank, Ltd.**

**Table of Contents**

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| | |
|:---|:---|
| &nbsp;&nbsp;**Chapter 1.** GENERAL PROVISIONS | &nbsp;&nbsp;A－000－001 |
| &nbsp;&nbsp;**Chapter 2.** SHARES | &nbsp;&nbsp;A－000－001 |
| &nbsp;&nbsp;**Chapter 3.** GENERAL MEETING OF SHAREHOLDERS | &nbsp;&nbsp;A－000－003 |
| &nbsp;&nbsp;**Chapter 4.** DIRECTORS AND BOARD OF DIRECTORS | &nbsp;&nbsp;A－000－003 |
| &nbsp;&nbsp;**Chapter 5.** AUDIT & SUPERVISORY BOARD MEMBERS AND AUDIT & SUPERVISORY BOARD | &nbsp;&nbsp;A－000－005 |
| &nbsp;&nbsp;**Chapter 6.** ACCOUNTS | &nbsp;&nbsp;A－000－006 |

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&nbsp;&nbsp; Issued on: August 1 1931<br> Last revised: March 2 2023<br>

Incorporated by reference in the Notice of the Extraordinary Meeting of the Shareholders of The Nagano Bank, Ltd.

**Articles of Incorporation**

**<u>of The Hachijuni Bank, Ltd.</u>**

**(as amended on** **March 2nd, 2023)**

**Chapter 1. GENERAL PROVISIONS**

<u>Article 1.</u> (Trade Name)

This Bank shall be called Kabushiki Kaisha Hachijuni Ginko.

It shall be, however, written in the English language as The Hachijuni Bank, Ltd.

<u>Article 2.</u> (Purposes)

The purposes of this Bank shall be to engage in the following business:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Taking deposit and installment savings, lending funds or discounting bills and notes and exchange transactions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Guaranteeing debts or acceptance of bills and notes and other business incidental to the banking business mentioned in the preceding sub-paragraph.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Underwriting, handling of offering for subscription or sale, sale and other business involving national bonds, local bonds, government guaranteed bonds and other securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. Trust business.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. In addition to the business mentioned in each of the preceding sub-paragraphs, business which a bank may engage in by virtue of the Banking Law, the Secured Debenture Trust Law and other laws and regulations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. Matters incidental or relating to the business mentioned in each of the preceding sub-paragraphs.

<u>Article 3.</u> (Location of Head Office)

This Bank shall have its head office in Nagano City.

<u>Article 4.</u> (Organization)

The Bank shall be organized to consist of the following in addition to the General Meeting of Shareholders and the Directors:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Board of Directors

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Audit & Supervisory Board Members

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Audit & Supervisory Board

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. Accounting auditors

<u>Article 5.</u> (Method of Public Notice)

The public notices of this Bank shall be given in the form of electronic notices. However, if an electronic notice cannot be given due to an accident or other unavoidable circumstances, such notice shall be given in the Shinano Mainichi Shimbun and in the Nihon Keizai shimbun.

**Chapter 2. SHARES**

<u>Article 6.</u> (Total Number of Shares Authorized to be Issued)

The total number of shares which this Bank is authorized to issue shall be two billion (2,000,000,000).

<u>Article 7.</u> (Acquisition of the Bank's Own Shares)

The Bank may acquire its own shares by resolution of the Board of Directors in accordance with Article 165, Section 2 of the Corporate Law.

<u>Article 8.</u> (Number of One Unit of Share)

The number of shares which constitutes one unit of share of this Bank shall be one hundred.

<u>Article 9.</u> （Rights to Shares Constituting less than One Unit）

The shareholders of this Bank may not execute any rights concerning their shares constituting less than one unit except for the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Rights provided under Article 189, Section 2 of the Corporate Law

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Rights to make claims in accordance with the provisions of Article 166, Section
1 of the Corporate Law

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Rights to receive allotment of new shares and new share warrants depending
on the number of shares owned by the shareholder

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) Rights to make claims provided under the next article

<u>Article 10.</u> (Rights to Buy Shares less than One Unit)

The shareholders of this Bank, who hold their shares constituting less than one unit, may claims on this Bank to sell a shortfall of shares which constitute one unit.

<u>Article 11.</u> (Shareholders' List Manager)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. This Bank shall have a Shareholders' List Manager.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Shareholders' List Manager and its office shall be decided by resolution of the Board of Directors, and shall be publicly notified.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. The shareholders' list and the register of share warrants shall be prepared and kept by the Shareholders' List Manager. The Shareholder's List Manager shall be entrusted to do other matters regarding the shareholders' list and the register of share warrants. This Bank shall not do above-mentioned matters.

<u>Article 12.</u> (Handling of Shares)

Handling, fees and other matters related to the shares of the Bank shall be governed by the Rules of Handling of Shares adopted by the Board of Directors in addition to any applicable laws and these Articles of Incorporation.

<u>Article 13.</u> (Registration Obligation of Shareholders)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. A shareholder, pledgee or his legal agent or representative shall register the name and address of the individual or organization with this Bank. This applies to any changes of the same.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. If a person mentioned in the preceding paragraph resides in a foreign country, he shall designate the place or agent for receiving notices within Japan and registering the same with this Bank. This applies to any change of the same.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. This Bank shall assume no responsibility as to notices or calls to a person who neglected the registration mentioned in the two preceding paragraphs.

<u>Article 14.</u> (Record Date)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. This Bank shall authorize the shareholders listed in the latest Register of Shareholders as of March 31 of every year, to exercise the rights at the Ordinary General Meeting of Shareholders for the business year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. In addition to the preceding paragraph, when necessary, the shareholders or registered pledgees listed or recorded in the latest Register of Shareholders on a specific date, which is announced by advance public notice, based on a resolution of the Board of Directors, shall be the shareholders or pledgees who can exercise the rights.

**Chapter 3. GENERAL MEETING OF SHAREHOLDERS**

<u>Article 15.</u> (Ordinary and Extraordinary General Meeting of Shareholders)

The Ordinary General Meeting of Shareholders shall be convened within three months from the last day of every business year, and an Extraordinary General Meeting of Shareholders shall be convened at any time when necessary.

<u>Article 16.</u> (Measures for Electronic Provision, Etc.)

The Bank shall, when convening a General Meeting of Shareholders, provide information contained in the Reference Documents for the General Meeting of Shareholders, etc. electronically.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Among the matters to be provided electronically, the Bank may choose not to include all or part of the matters stipulated in the Ordinance of the Ministry of Justice in the paper copy to be sent to shareholders who have requested it by the record date for voting rights.

<u>Article 17.</u> (Chairman of the General Meeting of Shareholders)

President shall act as the chairman of the General Meeting of Shareholders. When President is unable to act or when such office is vacant, another Director shall act as such in the order determined by the Board of Directors.

<u>Article 18.</u> (Voting by Proxy)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. A shareholder may exercise his voting rights by proxy. Such proxy shall be another shareholder of this Bank who has the right to vote.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. The above shareholder or proxy must submit a certificate of proxy in writing to the Bank at each General Meeting of Shareholders.

<u>Article 19.</u> (Method of Ordinary Resolutions)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Unless otherwise provided for in the laws and regulations or in the Articles of Incorporation, resolution of the General Meeting of Shareholders shall require a majority of the voting rights of the shareholders who are present and may exercise their voting rights.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. The resolution set forth in Article 309, Section 2 of the Corporate Law shall require the quorum of shareholders holding one-third or more of the voting rights of the shareholders who may exercise their voting rights, and shall be adapted by at least two-thirds of voting rights represented at the meeting.

**Chapter 4. DIRECTORS AND BOARD OF DIRECTORS**

<u>Article 20.</u> (Number of Directors)

This Bank shall have twelve or fewer Directors.

<u>Article 21.</u> (Appointment of Directors)

Directors shall be appointed at the General Meeting of Shareholders.

The decision on the appointment thereof shall require the presence of shareholders holding one-third or more of voting rights of shareholders who may exercise their voting rights and shall be adopted by a majority of voting rights thereof.

Appointment of Directors shall not be subject to cumulative voting.

<u>Article 22.</u> (Term of Office of Directors)

The term of office of Directors shall expire at the time of completion of the Ordinary General Meeting of Shareholders relating to the last settlement period within two years after their assuming office.

<u>Article 23.</u> (Executive Directors)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The Board of Directors, by its resolution, may appoint one President.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. The Board of Directors, by its resolution, may appoint one Chairman and several Vice Presidents, Senior Managing Directors and Managing Directors.

<u>Article 24.</u> (Representative Directors)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The President shall represent the Bank.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. The Board of Directors, by its resolution, may appoint Directors representing the Bank from among Executive Directors in addition to the stipulation of the preceding paragraph.

<u>Article 25.</u> (Remuneration and Other Financial Benefits of Directors)

Remuneration, bonuses or other financial benefits that Directors receive from this Bank in consideration of exercising their duties ("Remuneration etc.") shall be determined by a resolution of the General Meeting of Shareholders.

<u>Article 26.</u> (Board of Directors)

The Board of Directors shall be formed with all the Directors and shall make decisions on the conduct of important business of this Bank in addition to the matters provided for in the laws and regulations and by the Articles of Incorporation and shall supervise execution of duties of Directors.

<u>Article 27.</u> (Convocation of Meetings of the Board of Directors)

The notice of convocation of a meeting of the Board of Directors shall be dispatched to each Director and each Audit & Supervisory Board Member up to three days prior to the date of the meeting. However, if there is urgent need, this period may be shortened.

<u>Article 28.</u> (Omission of a Resolution of the Board of Directors）

The Bank deems that a resolution of the Board of Directors was passed when the requirements under Articles 370 of the Corporate Law have been satisfied.

<u>Article 29.</u> (Limitation of Liability Contract with an Outside Director)

The Bank may conclude a contract concerning limitation of liability with an Outside Director when the legal requirements concerning Article 423, Section 1 of the Corporate Law are applicable. However, the maximum limit of liability under such a contract shall be the minimum total liability provided by law.

<u>Article 30.</u> (Rules of the Board of Directors)

Except as provided for in the laws and regulations and by the Articles of Incorporation matters relating to the Board of Directors shall be as provided for in the Rules of the Meeting of the Board of Directors adopted by the Board of Directors.

<u>Article 31.</u> (Advisers and Counselors)

Advisers and Counselors may be appointed by a resolution of the Board of Directors.

**Chapter 5. AUDIT & SUPERVISORY BOARD MEMBERS AND AUDIT & SUPERVISORY BOARD**

<u>Article 32.</u> (Number of Audit & Supervisory Board Members)

This bank shall have six or fewer Audit & Supervisory Board Members.

<u>Article 33.</u> (Appointment of Audit & Supervisory Board Members)

Audit & Supervisory Board Members shall be appointed at the General Meeting of Shareholders. The decision on the appointment thereof shall require the presence of shareholders holding one-third or more of voting rights of shareholders who may exercise their voting rights and shall be adopted by a majority of voting rights thereof.

<u>Article 34.</u> (Term of Office of Audit & Supervisory Board Members)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The term of office of Audit & Supervisory Board Members shall expire at the time of completion of the Ordinary General Meeting of Shareholders relating to the last business year within four years after their appointment.

<u>Article 35.</u> (Full-Time Audit & Supervisory Board Members)

The Audit & Supervisory Board Members shall elect by its resolution one or more Full-Time Audit & Supervisory Board Member(s).

<u>Article 36.</u> (Remuneration and Other Financial Benefits of Audit & Supervisory Board Members)

Remuneration and other financial benefits of Audit & Supervisory Board Members shall be determined by a resolution of the General Meeting of Shareholders.

<u>Article 37.</u> (Audit & Supervisory Board)

The Audit & Supervisory Board shall be formed with all the Audit & Supervisory Board Members and shall, in conformity with the laws and regulations and with the Articles of Incorporation, receive reports, hold consultations or pass resolutions on important audit-related matters.

However, it may not hinder the Audit & Supervisory Board Members in the exercise of their authority.

<u>Article 38.</u> (Convocation of Meetings of the Audit & Supervisory Board)

The notice of convocation of a meeting of the Audit & Supervisory Board shall be dispatched to each Audit & Supervisory Board Members up to three days prior to the date of the meeting. However, if there is urgent need, this period may be shortened.

<u>Article 39.</u> (Limitation of Liability Contract with an Outside Audit & Supervisory Board Member)

The Bank may conclude a contract concerning limitation of liability with an Outside Audit & Supervisory Board Members when the legal requirements concerning Article 423, Section 1 of the Corporate Law are applicable. However, the maximum limit of liability under such a contract shall be the minimum total liability provided by law.

<u>Article 40.</u> (Rules of the Audit & Supervisory Board)

Except as provided for in the laws and regulations and by the Articles of Incorporation, matters relating to the Audit & Supervisory Board shall be as provided for in the Rules of the Meeting of the Audit & Supervisory Board adopted by the Audit & Supervisory Board.

**Chapter 6. ACCOUNTS**

<u>Article 41.</u> (Business Year)

A business year of this Bank shall be from April 1 of each year to March 31 of the following year.

<u>Article 42.</u> (Disposition of Surplus)

The surplus of this Bank, unless otherwise provided for in the laws and regulations, shall be disposed of by a resolution of the General Meeting of Shareholders.

<u>Article 43.</u> (Year-End Dividend of Surplus)

The year-end dividend of the surplus of this Bank shall be paid to the shareholders or registered pledgees who are listed or recorded in the latest shareholders' list as of March 31 every year.

<u>Article 44.</u> (Interim Dividend)

This Bank may, by a resolution of the Board of Directors, pay the Interim Dividend to the shareholders or registered pledgees who are listed or recorded in the latest shareholders' list as of September 30 every year.

<u>Article 45.</u> (Exclusion Period)

In case the payment of the year-end dividend of surplus and interim dividend is not received after five years have elapsed from the date when the payment thereof began, this Bank shall be discharged from liability to make the payment.

## Exhibit 99.2

The transactions pursuant to the share exchange described in this document involve securities of a Japanese company. The share exchange is subject to disclosure requirements of Japan that are different from those of the United States. Financial information included in this document, if any, was excerpted from financial statements prepared in accordance with foreign accounting standards that may not be comparable to the financial statements of United States companies.<br> It may be difficult for you to enforce your rights and any claim you may have arising under the U.S. federal securities laws, since the issuer is located in Japan and some or all of its officers and directors reside outside of the United States. You may not be able to sue a Japanese company or its officers or directors in a Japanese court for violations of the U.S. securities laws. It may be difficult to compel a Japanese company and its affiliates to subject themselves to a U.S. court's judgment. You should be aware that the issuer may purchase securities otherwise than under the share exchange, such as in the open market or through privately negotiated purchases.<br> This document has been translated from the Japanese-language original for reference purposes only. In the event of any conflict or discrepancy between this document and the Japanese-language original, the Japanese-language original shall prevail in all respects.<br>

**Reference Documents for the Extraordinary Meeting of the Shareholders**

Proposal No. 1: Approval of the Share Exchange Agreement

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Details of Financial Statements pertaining to the Most Recent Business Year (Fiscal Year Ended March 31,
2022) of The Hachijuni Bank, Ltd.

.............................................................................................................1

(P.16 of the Notice of Convocation "6. Matters Related to Financial Statements, etc.")

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| ![](image_001.jpg) | **THE NAGANO BANK, LTD.**<br> Securities Code: 8521 |

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**Details of Financial Statements pertaining to the Most Recent Business Year (Fiscal Year Ended March 31, 2022) of The Hachijuni Bank, Ltd.**

**Business Report for the 139th Fiscal Year** **(from April 1, 2021 to March 31, 2022)**

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| **1** | &nbsp;&nbsp;**Particulars** **Regarding Current Status of the Bank** |

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**(1) Progress, Outcomes, etc., of Business**

**■** **Principal Line of Business of the Bank**

The Bank engages in such businesses as deposits, loans, sale of trading securities, securities investment, domestic exchange, foreign exchange, trust, and financial instruments intermediary service, and provides a wide variety of financial products and services to regional community.

**■** **Financial and Economic Environment**

The overall Japanese economy lacked strength in FY2021 as personal consumption remained sluggish because it heavily depended on the infection situation of COVID-19, while exports and capital investment picked up due to the recovery of overseas economies. In Nagano Prefecture, which is the major business base for the Bank, the overall economy remained sluggish due to the slow recovery of non-manufacturing industries despite the improvement of the manufacturing sector. In terms of production, exports and capital investment increased in large part due to a growing demand for information technology ("IT"), but the growth slowed down in second half of the fiscal year due to the shortage of semiconductors and other components. As for personal consumption, sales of large retail stores were strong thanks to higher demand for home cooking and prepared food, whereas restaurants and hotels in the service sector were affected by the rebound of the COVID-19 epidemic. Housing investment was in line with the previous year, public investment maintained the high level due to large-scale construction projects, such as road maintenance and disaster resilience.

Financially, against the backdrop of declining US long-term interest rates, the yield on the 10-year Japanese government bond (JGB) dropped to just over 0%, and then temporarily rebounded to the level above 0.1% because investors had expectations for normalization of monetary policies across the globe. After that, following a seesawing phase depending on the outbreak situation of the omicron variant, in the second half of the fiscal year, the 10-year JGB yield gradually went up as interest rates rose globally, topping 0.2% at the end of the fiscal year.

–1–

The stock market remained at a standstill because of concerns about delayed economic recovery due to the rebound of the COVID-19 epidemic, and at the same time, rising expectation for normalization of the domestic economy supported by accelerated vaccination programs. After mid-year, stock prices continuously fluctuated to a large extent with expectation for the result of general election of lower house members as well as mounting global concerns about inflation driven by rising commodity prices. In addition, increased geopolitical risk over Ukraine caused the overall market to remain highly volatile by the end of the year.

**■** **Progress, Outcomes, etc., of Business**

Under such financial and economic circumstances, the Bank has developed the Medium-Term Management Vision 2021: Supporting Customers and the Region by "Finance × Nonfinance × Relations" as a vision to transform its business model according to customers' needs and changing social environment. Under this vision, aiming to realize the five themes, namely "Sustainability as a core element of business management," "Deepening life support business," "Providing comprehensive financial services and functions," "Digital reform of business operations and organization," and "Personnel system reform to support growth and job satisfaction," the Bank has engaged in a broad range of activities to contribute to the development of the regional community, as it sets out in its Management Philosophy.

**○** **Theme 1: Sustainability as a core element of business management**

The Bank, as one of the leading regional banks of Japan, has worked to solve regional social challenges through both financial and non-financial services in order to contribute to the sustainable development of the regional community.

Setting out the "Hachijuni Bank Group's Sustainable Investment and Lending Policy" as part of its financial initiatives, the Bank aims to achieve a sustainable finance of cumulative ¥1.5 trillion by FY2030 in order to solve environmental problems and social challenges and contribute to the achievement of a sustainable society. We launched new products in relation to sustainable finance "SDGs loan," "Sustainability Link Loan ("SLL")" and "Positive Impact Finance ("PIF")." In addition, we established "Hachijuni Sustainability No.1 Fund" with our new subsidiary, Hachijuni Investment Co., Ltd. In December 2021 , starting with selling "SDGs foreign currency time deposits," designed to donate a portion of foreign exchange commissions, we are expanding SDGs initiatives in corporation with customers.

–2–

Among non-financial initiatives, as our 90th Anniversary Commemorative Project, we, together with Hachijuni Culture Foundation, started promoting local cultural inheritance activities which subsides organizations engaged in local cultural inheritance activities rooted in communities, including traditional culture, folk performing arts, and traditional dietary culture. Further, volunteer activities aiming for preservation of terraced rice paddies in Nagano Prefecture were carried out and rice harvested was donated to organizations operating children's cafeterias.

In September 2021, our program for decarbonization was adopted as Japan's Ministry of the Environment "portfolio carbon analysis pilot program support project for financial institutions." We acquired knowledge on how to measure greenhouse gas emissions in relation to our customers.

Centering on Sustainability Supervision Office under the Planning and Coordination Department, established in June 2021, the Bank will enhance the framework for promoting sustainability initiatives and thereby continue to actively conduct a wide range of activities for by helping customers' efforts for decarbonization.

**○** **Theme 2: Deepening life support business**

We aim to be a lifetime transaction bank that supports every area of customers' lives by making financial services more sophisticated and expanding non-face-to-face transactions in addition to improving non-financial services.

For expansion of non-financial services, we started providing the "Hachijuni Life Support Services " that can solve a wide range of problems in customers' daily life, such as garden pruning, housekeeping, house cleaning, etc.

As more sophisticated financial services, the Trust Group was set up under the Business Promotion Department and started providing new trust services for individuals with the Bank as trustee in order to meet the asset management needs of our elderly customers and the inheritance and asset transfer needs to the next generation. For housing loans, we increased the lineup of products with illness benefits that covers all types of illnesses and injuries without charging additional interest rates. To reinforce consulting functions for individual customers, we set up a new circle for acquiring FP 1st grade and CFP qualifications to encourage employees to voluntarily develop their skills. We also developed the consulting system targeting high-net-worth individuals by assigning financial advisors with expertise and know-how. Together with our new subsidiary, Hachijuni Asset Management Co., Ltd., we will endeavor to make our financial services more sophisticated.<br>

–3–

**○** **Theme 3: Providing comprehensive financial services and functions**

Through expansion of consulting service menu and the group functions, we aim to be a bank that provides one-stop solution to a broad range of areas in business customers' corporate management.

To provide business customers with solution to corporate management challenges, the Bank, in collaboration with Hachijuni System Development Co., Ltd., launched the IT Consulting service to help them improve their business operations and enhance their service capabilities based on digital technology. Furthermore, the Bank has launched a new training program for acquiring qualification of IT coordinators to enable staff at sales branches to respond to customers' various needs for IT utilization and digitalization. For customers interested in personnel systems for work style reform and securing human resources, the Bank began offering the Human Resources Consulting in collaboration with Nagano Economic Research Institute. To assist in using subsidies, such as "monozukuri subsidy" and "business restructuring subsidy," the headquarters and staff at sales branches worked together to provide support for customers' application procedures and in their development of business strategies in the age of coexisting with COVID-19.

We set up new investment funds worth ¥30,000 million in total jointly with Hachijuni Investment Co., Ltd., which is a new investment-dedicated subsidiary founded in October 2021. By utilizing financial services through both investment and lending and exercising concerted consulting functions across the Group, we will always right by our business customers and support their growth.

**○** **Theme 4: Digital reform of business operations and organization**

The Bank is working to develop a new business model through operational efficiency and development of new services by utilizing digital technology and data solution.

In June 2021, we established the Digital Transformation Department and the Digital Promotion Group under the Planning and Coordination Department which are responsible for enhancing customers' convenience and improving operational excellency through digitalization. To enhance customer convenience, the Bank introduced the Visit Reservation System on a trial basis designed to reduce customers' waiting time for over-the-counter consultation. With the introduction of "Hachijuni Electronic Contracting Service" and the expanded lineup of web-contracting products, loan procedures can be completed only on the website. In addition, our newly introduced "Hachijuni Business Matching System" allows us to quickly respond to a wide range of business needs of our customers, including expansion of sales channels. By introducing the smartphone application "Wallet+" and AI-driven sales staff support system, now under development, we will commit ourselves to continued efforts to develop and provide innovative money services.

–4–

**○** **Theme 5: Personnel system reform to support growth and job satisfaction**

The Bank has continued implementing personnel system and work style reform to respond to the diversification of employees' values and lifestyles and worked to build an organization where each and every employee can realize their personal growth and feel satisfied at work.

The Diversity Promotion Office in charge of promoting work style reform and diversity was put in place under the Personnel Department in June 2021. Under the new Basic Policy on Diversity & Inclusion , we aim to cultivate a corporate culture where a diverse range of human resources, regardless of gender or age, can fully exercise their potential, and improve organizational strength with fresh new ideas. To support career building for employees, the Bank put in place the Career Development Group under the Personnel Department and introduced the Professional Course as part of building the framework that responds to each person's career plan. Aiming to help each employee realize their personal growth and feel satisfied at work and thereby become a bank group preferred by customers, we will commit ourselves to personnel reform.

**○** **Branch**

In May 2021, Agematsu Branch was relocated in the new town hall building of Agematsu town and Direct Loan Branch and Hachijuni Call Center were integrated into Direct Branch which consolidates non-face-to-face operations. In July, Naganoekimae Branch was relocated and its access to and from Nagano Station improved. In October, Niigata Corporate Sales Office catering to business customers was established to promptly respond to inquiries from business operators in Chuetsu and Kaetsu regions of Niigata Prefecture. The new building of Iwamurada Branch was reconstructed on the same site. This first Net Zero Energy Building ("ZEB") in the Group is shared by Hachijuni Lease Co., Ltd.

Earnings results for FY2022 are as follows:

**○** **Non-Consolidated Business Results**

Ordinary income increased ¥327 million from a year earlier to ¥111,915 million due to increases in gains on money held in trust and in gains on sales of bonds.

Ordinary expenses decreased ¥4,885 million from a year earlier to ¥80,550 million mainly due to decreases in provision of allowance for loan losses.

As a result, ordinary profit increased ¥5,213 million year on year to ¥31,365 million.

Profit increased ¥3,878 million year on year to ¥22,396 million.

On a consolidated basis, ordinary profit increased ¥5,899 million from the previous year to ¥38,047 million and profit attributable to owners of parent increased ¥4,283 million to ¥26,667 million.

–5–

**○** **Deposits and Loans and Bills Discounted**

Outstanding balance of deposits increased ¥395.8 billion to ¥8,066.6 billion from a year earlier mainly owing to increases in deposits from individuals.

Outstanding balance of loans and bills discounted increased ¥386.5 billion to ¥5,974.0 billion mainly due to an increase in loans to the Japanese government. Outstanding balance of business loans to SMEs increased ¥25.7 billion to ¥1,695.3 billion, whereas outstanding balance of personal loans increased ¥67.9 billion to ¥1,312.3 billion.

**○** **Securities**

The Bank secured stable profits through keeping a close watch on the market movement and flexible trading. Outstanding balance of securities decreased ¥524.0 billion to ¥2,809.8 billion mainly due to a decrease in Japanese government bonds and foreign securities.

**○** **Others**

The total capital ratio, which indicates the soundness of the Bank, is 19.06 % on a consolidated basis and 17.62 % on a non-consolidated basis, maintaining the highest level in the banking industry.

**■** **Issues to Be Addressed**

As we move into the third year of the COVID-19 pandemic, people have been gradually accustomed to the new way of lifestyle and thinking. Not only digital transformation ("DX") and work style reform, but also worldwide sustainability initiatives, such as SDGs and decarbonization, are currently positioned as important challenges in corporate activities, and overall society is rapidly changing.

To deal with such changes in business environment and continue to contribute to the development of the regional community, the Bank has developed the Medium-Term Management Vision 2021. Setting the sustainability as a core element of business management to continue to be a bank group preferred by the regional community, the Bank will strive to transform its business model and improve profitability.

Specifically, for business customers that work on business strategies in the age of coexisting with COVID-19 and intend to enhance corporate value from new perspectives, such as DX and decarbonization, we will expand the Group's business area and put together all the resources in the Group to meet their expectations in every aspect of corporate management, including financial services, human resources, goods and information, and jointly create a vibrant regional community.

Meanwhile, to respond to an increasingly diverse life plans in the era of the 100-year lifespan, we will be more capable of supporting a full range of customers' lives through active use of digital technology and provide safe, secure and convenient money services so that we can be preferred throughout the life of a customer.

–6–

To develop human resources in charge of transforming business models, we will drastically revamp our personnel system to encourage each and every employee to change their mindset and behavior so that they can think and act on their own with a sense of urgency. We will build better working environment where employees with diverse values can fully exercise their potential and thereby evolve into a highly attractive corporate group.

Instead of staying within traditional banking business, we will expand our business area to non-financial services to enhance its profitability and, as the leading regional bank in Nagano Prefecture over the past 90 years, continue to contribute to the development of the regional community with all our business activities.

We would like to express our utmost gratitude for the patronage of our shareholders, and we will commit ourselves to making every effort to live up to expectations of people in the regional community. Thank you for your continued support.

–7–

(2) Status of Property and Profits and Losses

(Millions of yen)

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|:---|:---|:---|:---|:---|
| | FY2018 | FY2019 | FY2020 | FY2021 |
| &nbsp;&nbsp;&nbsp;Deposits | 6746895 | 6989187 | 7670775 | 8066627 |
| &nbsp;&nbsp;&nbsp;Time deposits | 2369820 | 2360604 | 2398680 | 2436170 |
| &nbsp;&nbsp;&nbsp;Others | 4377075 | 4628583 | 5272094 | 5630457 |
| &nbsp;&nbsp;&nbsp;Loans and bills discounted | 5310562 | 5443996 | 5587528 | 5974071 |
| &nbsp;&nbsp;&nbsp;Individuals | 1176531 | 1216227 | 1244386 | 1312385 |
| &nbsp;&nbsp;&nbsp;SMEs | 1513671 | 1526454 | 1669635 | 1695376 |
| &nbsp;&nbsp;&nbsp;Others | 2620360 | 2701314 | 2673507 | 2966309 |
| &nbsp;&nbsp;&nbsp;Trading account assets | 13373 | 29559 | 12157 | 13370 |
| &nbsp;&nbsp;&nbsp;Trading account liabilities | 4356 | 3444 | 3066 | 4279 |
| &nbsp;&nbsp;&nbsp;Securities | 2771528 | 2920426 | 3333897 | 2809850 |
| &nbsp;&nbsp;&nbsp;Government bonds | 1001092 | 1000867 | 1181165 | 820553 |
| &nbsp;&nbsp;&nbsp;Local government bonds | 383801 | 362245 | 352304 | 308214 |
| &nbsp;&nbsp;&nbsp;Others | 1386634 | 1557313 | 1800426 | 1681082 |
| &nbsp;&nbsp;&nbsp;Total assets | 10394621 | 10413208 | 12075029 | 13265200 |
| &nbsp;&nbsp;&nbsp;Domestic Exchange Transactions | 50824472 | 51783906 | 48304817 | 50221596 |
| &nbsp;&nbsp;&nbsp;Foreign Exchange Transactions | million dollars | million dollars | million dollars | million dollars |
| &nbsp;&nbsp;&nbsp;Foreign Exchange Transactions | 21831 | 20900 | 22639 | 24376 |
| &nbsp;&nbsp;&nbsp;Ordinary profit | 29024 | 28021 | 26152 | 31365 |
| &nbsp;&nbsp;&nbsp;Profit | 21830 | 19562 | 18517 | 22396 |
| &nbsp;&nbsp;&nbsp;Profit per share | yen | yen | yen | yen |
| &nbsp;&nbsp;&nbsp;Profit per share | 43.85 | 39.69 | 37.83 | 45.74 |
| &nbsp;&nbsp;&nbsp;Trust property | 395 | 378 | 347 | 673 |
| &nbsp;&nbsp;&nbsp;Trust fees | 2 | 2 | 2 | 7 |

---

&nbsp;&nbsp;&nbsp;&nbsp;(Note) 1. Yen figures less than a unit have been rounded down.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Loans and bills discounted for individuals and SMEs include overdrafts and exclude loans from overseas branch and loans from special international financial transactions account .

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Profit per share is computed by dividing profit by the average number of issued and outstanding shares (less the number of treasury shares) for the period.

–8–

Consolidated business results in past years

(Millions of yen)

---

| | | | | |
|:---|:---|:---|:---|:---|
| | FY2018 | FY2019 | FY2020 | FY2021 |
| &nbsp;&nbsp;&nbsp;Ordinary income | 160013 | 163637 | 152604 | 151349 |
| &nbsp;&nbsp;&nbsp;Ordinary profit | 34354 | 33447 | 32147 | 38047 |
| &nbsp;&nbsp;&nbsp;Profit attributable to owners of parent | 22492 | 22077 | 22384 | 26667 |
| &nbsp;&nbsp;&nbsp;Net assets | 765509 | 748432 | 909694 | 912698 |
| &nbsp;&nbsp;&nbsp;Total assets | 10451533 | 10470547 | 12160638 | 13343796 |

---

&nbsp;&nbsp;&nbsp;&nbsp;(Note) 1. Yen figures less than a unit have been rounded down.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. From the consolidated fiscal year under review, the presentation of dividends from group credit life insurance is changed from Ordinary income to decrease in Ordinary expenses. This change is reflected in Ordinary income for the fiscal year ended March 31, 2021 and earlier.

(3) Status of Employees

---

| | |
|:---|:---|
| | As of the End of the Fiscal Year |
| &nbsp;&nbsp;&nbsp;&nbsp;Number of employees | 3067 |
| &nbsp;&nbsp;&nbsp;&nbsp;Average age | 42 years 4 months old |
| &nbsp;&nbsp;&nbsp;&nbsp;Average years of service | 16 years 2 months |
| &nbsp;&nbsp;&nbsp;&nbsp;Average monthly salary | 367 thousand yen |

---

&nbsp;&nbsp;&nbsp;&nbsp;(Note) 1. Figures for average age, average years of service, and average monthly salary are each rounded off to the closest whole number.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Number of employees excludes temporary workers and contract workers.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Average monthly salary is the average monthly salary in the month of March 2022 excluding bonus.

–9–

(4) Status of Business Offices, etc.

&nbsp;&nbsp;&nbsp;&nbsp;A. Number of business offices

---

| | | |
|:---|:---|:---|
| | As of the End of the Fiscal Year | As of the End of the Fiscal Year |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Nagano Prefecture | <br> 131 branches | (include number of sub-offices)<br> (9) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Niigata Prefecture | 4 | (—) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Tokyo Metropolitan | 6 | (—) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Saitama Prefecture | 5 | (—) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gunma Prefecture | 2 | (—) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Aichi Prefecture | 1 | (—) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gifu Prefecture | 1 | (—) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Osaka Prefecture | 1 | (—) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Domestic total | 151 | (9) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Asia | 1 | (—) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Overseas total | 1 | (—) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | 152 | (9) |

---

&nbsp;&nbsp;&nbsp;&nbsp;(Note) 1. Other than the above, as of the end of the fiscal year, 3 overseas representative offices, 221 out-of-branch automated teller machines ("ATMs"), 13,501 out-of-branch ATMs affiliated with Lawson Bank, Inc. (In Nagano Prefecture: 172, outside Nagano Prefecture: 13,329), 24,681 out-of-branch ATMs affiliated with Seven Bank, Ltd. (In Nagano Prefecture: 488, outside Nagano Prefecture: 24,193), and 12,100 out-of-branch ATMs affiliated with E-net Co., Ltd. (In Nagano Prefecture: 144, outside Nagano Prefecture: 11,956) are installed. In addition, the Bank has set up 1 sales office exclusive for corporate transactions, which does not engage in over-the-counter sales following the deregulation of branch openings.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Since 11 (including 2 sub-offices) out of 131 branches in Nagano Prefecture have been relocated within another branch by taking a branch-in-branch method, the number of sites is 120.

&nbsp;&nbsp;&nbsp;&nbsp;B. New branches established during the fiscal year

There are no matters to report.

&nbsp;&nbsp;&nbsp;&nbsp;(Note) 1. Installation of new out-of-branch ATMs (2 sites)

Delicia Nakagomi, Delicia Garden Akashina

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Removal of out-of-branch ATMs (8 sites)

Olympus Corporation Nagano Facility Tatsuno, Nishikomago, Sansai, Nakagomi, Hakubahappo Bus Terminal, Hirata, Murayama-ekimae, and Shinshu University Hospital East Ward

–10–

&nbsp;&nbsp;&nbsp;&nbsp;C. List of bank agents

There are no matters to report.

&nbsp;&nbsp;&nbsp;&nbsp;D. Status of Bank Agency Business, etc. Conducted by the Bank

There are no matters to report.

(5) Status of Facilities and Equipment Investment

&nbsp;&nbsp;&nbsp;&nbsp;A. Total amount of facilities and equipment investment

(Millions of yen)

---

| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;Total amount of facilities and equipment investment | 4313 |

---

&nbsp;&nbsp;&nbsp;&nbsp;B. New significant facilities and equipment established

(Millions of yen)

---

| | |
|:---|:---|
| Details | Amount |
| &nbsp;&nbsp;&nbsp;Software | 1266 |
| &nbsp;&nbsp;&nbsp;Introduction, upgrade, etc. of office equipment and computer system equipment | 845 |
| &nbsp;&nbsp;&nbsp;Reconstruction of Shimizu Apartment | 553 |
| &nbsp;&nbsp;&nbsp;Reconstruction of Building of Iwamurada Branch | 366 |

---

(6) Status of Parent Company and Significant Subsidiaries, etc.

&nbsp;&nbsp;&nbsp;&nbsp;A. Status of Parent Company

The Bank does not have a parent company.

–11–

&nbsp;&nbsp;&nbsp;&nbsp;B. Status of Subsidiaries, etc.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Company name | Address | Line of business | Share capital | Voting rights ratio of subsidiaries, etc. held by the Bank | Others |
| &nbsp;&nbsp;Hachijuni Securities Co., Ltd. | &nbsp;&nbsp;1277-2 Minami-Ishido-cho, Ooaza Minami-Nagano, Nagano-shi, Nagano, Japan | &nbsp;&nbsp;Trading of securities, intermediary, brokerage and agency for securities trading | million yen<br> 3,000 | %<br> 100.00 |  |
| &nbsp;&nbsp;Hachijuni Lease Co., Ltd. | &nbsp;&nbsp;218-14 Okada, Ooaza Nakagosho, Nagano-shi, Nagano, Japan | &nbsp;&nbsp;Leasing | 200 | 100.00 |  |
| &nbsp;&nbsp;Hachijuni Card Co., Ltd. | &nbsp;&nbsp;218-11 Ooaza Nakagosho, Nagano-shi, Nagano, Japan | &nbsp;&nbsp;Credit card business | 30 | 100.00 |  |
| &nbsp;&nbsp;Hachijuni Credit Guarantee Co., Ltd. | &nbsp;&nbsp;178-2 Aza Okada, Ooaza Nakagosho, Nagano-shi, Nagano, Japan | &nbsp;&nbsp;Credit guarantee service | 30 | 100.00 |  |
| &nbsp;&nbsp;Hachijuni System Development Co., Ltd. | &nbsp;&nbsp;178-13 Aza Okada, Ooaza Nakagosho, Nagano-shi, Nagano, Japan | &nbsp;&nbsp;Development of computer systems | 40 | 5.00 |  |
| &nbsp;&nbsp;Hachijuni Capital Co., Ltd. | &nbsp;&nbsp;1282-11 Minami-Ishido-cho, Ooaza Minami-Nagano, Nagano-shi, Nagano, Japan | &nbsp;&nbsp;Investment business | 200 | 10.00 |  |
| &nbsp;&nbsp;Hachijuni Staff Service Co., Ltd | &nbsp;&nbsp;178-2 Aza Okada, Ooaza Nakagosho, Nagano-shi, Nagano, Japan | &nbsp;&nbsp;Dispatching workers, paid employment placement, administrative agent | 20 | 100.00 |  |
| &nbsp;&nbsp;Yamabiko Services Co., Ltd. | &nbsp;&nbsp;178-2 Aza Okada, Ooaza Nakagosho, Nagano-shi, Nagano, Japan | &nbsp;&nbsp;Credit collection and management | 510 | 99.00 |  |
| &nbsp;&nbsp;Hachijuni Auto Lease Co., Ltd. | &nbsp;&nbsp;218-14 Okada, Ooaza Nakagosho, Nagano-shi, Nagano, Japan | &nbsp;&nbsp;Leasing | 100 | 0.00 |  |
| &nbsp;&nbsp;Hachijuni Asset Management Co., Ltd. | &nbsp;&nbsp;4-1-22 Nihonbashi-Muromachi, Chuo-ku, Tokyo, Japan | &nbsp;&nbsp;Investment management service | 200 | 100.00 |  |
| &nbsp;&nbsp;Hachijuni Investment Co., Ltd. | &nbsp;&nbsp;1282-11 Minami-Ishido-cho, Ooaza Minami-Nagano, Nagano-shi, Nagano, Japan | &nbsp;&nbsp;Investment business | 30 | 100.00 |  |

---

–12–

&nbsp;&nbsp;&nbsp;&nbsp;C. Overview of significant business alliances

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The Bank offers cash withdrawal service and other interoperable ATM services through All Japan Card Service
("ACS"), the alliance of 62 regional banks.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. The Bank has tied up with 62
regional banks, major commercial banks, trust banks, member banks of Second Association of Regional Banks, shinkin banks, credit unions,
finances of whole Japan Agricultural Cooperatives and Marine Bank of Japan Fisheries Cooperative (including
The Norinchukin Bank and Shinren), and labor banks (meaning the partnership called "MICS"), and has offered cash withdrawal
service, etc. through mutual use of ATMs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Through the alliance with Chigin
Network Service Co., Ltd. (a company co-funded by 62 regional banks; "CNS"), the Bank offers the data transmission services,
such as general transfers and account transfers with business partners ,
and deposit and withdrawal statements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. The Bank has tied up with E-net Co., Ltd. and offered cash withdrawal, depositing services, etc. via jointly
installed ATMs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. The Bank has tied up with Seven Bank, Ltd. and offered cash withdrawal, depositing services, etc. via the
company's ATMs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. The Bank has tied up with Lawson Bank, Inc. and offered cash withdrawal, depositing services, etc. via the
company's ATMs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. The Bank has developed and offered its shared system to member banks of the Juudankai (namely The Yamagata
Bank, Ltd., Tsukuba Bank, Ltd., The Musashino Bank, Ltd., The Awa Bank, Limited. The Miyazaki Bank, Ltd., and Bank of The Ryukyus, Limited).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. The Bank has tied up with JAPAN POST BANK Co., Ltd. and offered cash withdrawal, depositing services, etc.
through mutual use of ATMs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. The Bank has tied up with 6 shinkin
banks in Nagano Prefecture (namely THE ALUPUSCHUO SHINKIN BANK, THE IIDA SHINKIN BANK, UEDA SHINKIN BANK, SUWA SHINKIN BANK, NAGANO SHINKIN
BANK, MATSUMOTO SHINKIN BANK; This partnership is called "Gurutto Shinshu Net "),
and has made available cash withdrawal service, etc. through mutual use of ATMs for free of charge or at reduced fees.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. The Bank has tied up with THE TOHO BANK, LTD. and The Gunma Bank, Ltd., and has made available cash withdrawal
service, etc. through mutual use of ATMs for free of charge or at reduced fees.<br>

–13–

(7) Status of Business Transfer, etc.

There are no matters to report.

(8) Other Important Matters Regarding Current Status of the Bank

There are no matters to report.

–14–

---

| | |
|:---|:---|
| 2 | &nbsp;&nbsp;**Particulars Regarding Company Officers (Directors and Audit & Supervisory Board Members)** |

---

(1) Status of Company Officers

---

| | | | |
|:---|:---|:---|:---|
| Name | Positions and responsibilities | Significant concurrent positions | Others |
| &nbsp;&nbsp;&nbsp;Shoichi Yumoto | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Chairman<br> Internal Audit Department  |  |  |
| &nbsp;&nbsp;&nbsp;Masaki Matsushita | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; President<br> Digital Transformation Department<br> General Secretariat<br> Tokyo Liaison Office |  |  |
| &nbsp;&nbsp;&nbsp;Takahiko Asai | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deputy President<br> Planning and Coordination Department<br> Financial Market Department<br> Operations Administration Department<br> Loan Control Center , Operation Center<br> Head Office Center, Matsumoto Center  |  |  |
| &nbsp;&nbsp;&nbsp;Yuichi Sato | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Managing Director<br> Loan Control Department |  |  |
| &nbsp;&nbsp;&nbsp;Hiroyuki Miyahara | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Managing Director<br> Risk Management Department<br> Personnel Department<br> General Affairs Department |  |  |
| &nbsp;&nbsp;&nbsp;Shinji Sato | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Managing Director<br> General Manager, Matsumoto Business Department |  |  |
| &nbsp;&nbsp;&nbsp;Shohei Hidai | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Managing Director<br> Business Planning Department<br> Business Promotion Department<br> International Department<br> Computer Systems Department |  |  |
| &nbsp;&nbsp;&nbsp;Kayo Tashita | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Outside Director |  | Attorney |
| &nbsp;&nbsp;&nbsp;Soukichi Kurosawa | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Outside Director |  |  |
| &nbsp;&nbsp;&nbsp;Miyako Hamano | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Outside Director |  |  |
| &nbsp;&nbsp;&nbsp;Eiji Kanzawa | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Outside Director | President and CEO of KISSEI COMTEC CO., LTD. |  |
| &nbsp;&nbsp;&nbsp;Yoshimi Kitazawa | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Fulltime Audit & Supervisory Board Member |  |  |
| &nbsp;&nbsp;&nbsp;Chishu Minemura | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Fulltime Audit & Supervisory Board Member |  |  |
| &nbsp;&nbsp;&nbsp;Takeshi Kadota | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Outside Audit & Supervisory Board Member |  |  |
| &nbsp;&nbsp;&nbsp;Yasuyoshi Wada | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Outside Audit & Supervisory Board Member |  |  |
| &nbsp;&nbsp;&nbsp;Kiyohito Yamasawa | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Outside Audit & Supervisory Board Member |  |  |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Note) The Bank has designated all Outside Directors and Outside Audit & Supervisory Board Members as independent
directors under regulations of the Tokyo Stock Exchange and made a submission designating them as such to the aforementioned Exchange.

–15–

(2) Remunerations of Company Officers, etc.

&nbsp;&nbsp;&nbsp;&nbsp;A. Matters regarding the policy on determining directors' compensation on an individual basis

At the Bank, the Board of Directors, held on February 19, 2021, passed a resolution on the policy on determining directors' compensation on an individual basis. Before such board resolution, with regard to the proposal subject to resolution, the Board of Directors receives advice and proposal from the Nominating and Compensation Committee. The Nominating and Compensation Committee is an advisory body of the Board of Directors, which consists of three or more directors including at least one independent outside director.

In addition, the Board of Directors confirmed that, with regard to directors' compensation, etc. on an individual basis for the fiscal year under review, the method of determining the compensation, etc. and the compensation determined were consistent with the compensation policy approved by the Board of Directors, while respecting the proposal from the Nominating and Compensation Committee, and determined that they were in accordance with such compensation policy.

The policy on determining directors' compensation on an individual basis is as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Basic Policy

As for the basic policy for directors' remuneration, the Bank adopts a system that makes the remuneration act as an incentive for directors to enhance their motivation for contributing to improving business performance and increasing corporate value, and run business from the perspectives of management that puts shareholders first, and ensures that the remuneration of directors on an individual basis shall be determined at an appropriate level based on duties and achievements, etc. of each director. Specifically, directors' remuneration is composed of fixed-amount compensation, performance-linked compensation, and non-monetary compensation.

Only fixed-amount compensation shall be paid to outside directors in view of his duties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Policy on determining the amount of fixed-amount compensation on an individual basis (including policies on determining timing and conditions of providing compensation, etc.)

Fixed-amount compensation shall be monthly fixed compensation, which shall be determined, based on position, responsibilities, and years in office, by comprehensively taking into account the Bank's business performance and other companies' standards, etc.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Policy on determining performance indicator used for performance-linked compensation and the calculation of the amount or number of performance-linked compensation (including policies on determining timing and conditions of providing compensation, etc.)

Performance-linked compensation shall be positioned as a short-term incentive designed to increase directors' motivation to contribute to improvement of performance and boost their moral, and by using profit, which is the final result of a fiscal year, as a performance indicator, the amount calculated according to the amount of non-consolidated profit for each fiscal year shall be paid in cash at a certain time of every year.

–16–

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. Policy on determining non-monetary compensation and the calculation of the amount or number of non-monetary compensation (including policies on determining timing and conditions of providing compensation, etc.)

Non-monetary compensation shall be positioned as an incentive designed to share not only benefits from rising stock prices but also the risks from falling stock prices with our shareholders, and thus increase directors' motivation to contribute to improving medium- to long-term performance and increasing corporate value and boost their moral. Non-monetary compensation shall be stock options (share options). The unit number of stock acquisition rights to be allocated to each director shall be the number obtained by dividing the amount of stock options prescribed for each position by (a fair value for determining the number of such stock acquisition rights per such stock acquisition rights) within the upper limit approved at the General Meeting of Shareholders, and shall be allocated within one year after the date on which the Annual General Meeting of Shareholders is held; provided, however, that this shall be within the unit number per year approved at the General Meeting of Shareholders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. Policy on determining the ratio of fixed-amount compensation amount, performance-linked compensation amount, and non-monetary compensation amount to the amount of directors' compensation on an individual basis

Ratio of compensation of each director by type shall be an appropriate ratio according to position based on the basic policy. The total amount of compensation by type used as a premise for determining the ratio of the amount of compensation of each director is as follows:

Compensation amounts by type (Resolution of the General Meeting of Shareholders held on June 25, 2008)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• As for directors' remuneration, the Bank introduces three types of remuneration: fixed-amount compensation, performance-linked compensation, and stock-based compensation. (However, this does not include the portion of employee's salary for directors who concurrently serve as employees.)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. The monthly amount of fixed-amount compensation is limited to be within ¥25 million.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. Performance-linked compensation is based on the Bank's profit.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iii. The form of stock-based compensation is stock options (share options). The amount of stock acquisition rights to be allocated is limited to be within ¥100 million a year (which is up to 1,500 units per year, and up to 150,000 shares of common stock per year).

–17–

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Upper limit of performance-linked compensation by profit level

---

| | |
|:---|:---|
| &nbsp;&nbsp;Profit level | &nbsp;&nbsp;Remuneration standards |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Up to ¥10 billion | &nbsp;&nbsp;— |
| &nbsp;&nbsp;More than ¥10.0 billion and up to ¥15.0 billion | &nbsp;&nbsp;¥40 million |
| &nbsp;&nbsp;More than ¥15.0 billion and up to ¥20.0 billion | &nbsp;&nbsp;¥50 million |
| &nbsp;&nbsp;More than ¥20.0 billion and up to ¥25.0 billion | &nbsp;&nbsp;¥60 million |
| &nbsp;&nbsp;More than ¥25.0 billion and up to ¥30.0 billion | &nbsp;&nbsp;¥70 million |
| &nbsp;&nbsp;More than ¥30.0 billion and up to ¥35.0 billion | &nbsp;&nbsp;¥80 million |
| &nbsp;&nbsp;More than ¥35.0 billion | &nbsp;&nbsp;¥90 million |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. Matters regarding the policy on determining directors' compensation on an individual basis

The authority regarding the amount of compensation on an individual basis shall be delegated to President based on a board resolution, and the authority covers the amount of fixed-amount compensation and the amount of performance-linked compensation for each director and the number of units of stock acquisition rights allocated to each director. The Nominating and Compensation Committee shall deliberate on matters related to directors' compensation, and give advice and recommendations to the Board of Directors, and based on such advice and recommendation, President shall determine the amount of fixed-amount compensation and the amount of performance-linked compensation for each director and the number of units of stock acquisition rights allocated to each director.

–18–

&nbsp;&nbsp;&nbsp;&nbsp;B. Total amount of remuneration, etc. of directors and audit & supervisory board members

(Millions of yen)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Category | Total amount of remuneration, etc. | Total amount of remuneration, etc. by type | Total amount of remuneration, etc. by type | Total amount of remuneration, etc. by type | Number of officers covered |
| Category | Total amount of remuneration, etc. | Fixed-amount compensation | Performance-linked compensation | Non-monetary compensation | Number of officers covered |
| &nbsp;&nbsp;&nbsp;Directors (include outside directors) | 314<br> (18) | 207<br> (18) | 60<br> (—) | 47<br> (—) | 13<br> (4) |
| &nbsp;&nbsp;&nbsp;Audit & supervisory board members (include outside audit & supervisory board member) | 75<br> (16) | 75<br> (16) | —<br> (—) | —<br> (—) | 5<br> (3) |
| &nbsp;&nbsp;&nbsp;Total (include outside officers) | 389<br> (35) | 282<br> (35) | 60<br> (—) | 47<br> (—) | 18<br> (7) |

---

&nbsp;&nbsp;&nbsp;&nbsp;(Note) 1. Includes two directors who resigned during the fiscal year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Performance Indicator used for performance-linked compensation is profit, which was ¥22,396 million for the fiscal year. This indicator was chosen because it represents the final result of a fiscal year. The Bank determines the remuneration standards of performance-linked compensation according to profit level.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. The form of non-monetary compensation is stock options (share options), and conditions, etc. in allocating stock acquisition rights shall be as described in "A. Matters regarding the policy on determining directors' compensation on an individual basis."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. The monthly amount of fixed-amount compensation for directors was determined to be within ¥25 million at the 125th Annual General Meeting of Shareholders held on June 25, 2008. The number of directors was 9 as of the conclusion of the said General Meeting of Shareholders.<br> Aside from fixed-amount compensation, it was determined at the 125th Annual General Meeting of Shareholders held on June 25, 2008 that the amount of stock acquisition rights in the form of stock options to be allocated is limited to be within ¥100 million a year (which is up to 1,500 units per year, and up to 150,000 shares of common stock per year) The number of directors was 9 as of the conclusion of the said General Meeting of Shareholders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. The monthly amount of fixed-amount compensation for audit & supervisory board members was determined to be within ¥8 million at the 125th Annual General Meeting of Shareholders held on June 25, 2008. The number of audit & supervisory board members was 5 as of the conclusion of the said General Meeting of Shareholders. The said amount of compensation shall be allocated through consultation between audit & supervisory board members.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. The Board of Directors has delegated the authority to determine the amount of fixed-amount compensation and the amount of performance-linked compensation for each director and the number of units of stock acquisition rights allocated to each director to President Masaki Matsushita (responsible for Digital Transformation Department, General Secretariat, and Tokyo Liaison Office). The reason for the delegation is that the Board of Directors determined that President is appropriate to take into account overall business performance of the Bank and evaluate the performance of each director. Before deciding on any matter delegated, the Nominating and Compensation Committee is to confirm the validity of such decision.

–19–

(3) Liability Limitation Agreement

---

| | |
|:---|:---|
| Name | Overview of liability limitation agreement |
| &nbsp;&nbsp;&nbsp;Kayo Tashita | &nbsp;&nbsp;&nbsp;The Bank has made an agreement with these seven company officers to limit their liability for damages to the minimum liability amount to the extent that they have acted in good faith without gross negligence during the course of their duties in accordance with Article 423, Paragraph 1 of the Companies Act. |
| &nbsp;&nbsp;&nbsp;Soukichi Kurosawa | &nbsp;&nbsp;&nbsp;The Bank has made an agreement with these seven company officers to limit their liability for damages to the minimum liability amount to the extent that they have acted in good faith without gross negligence during the course of their duties in accordance with Article 423, Paragraph 1 of the Companies Act. |
| &nbsp;&nbsp;&nbsp;Miyako Hamano | &nbsp;&nbsp;&nbsp;The Bank has made an agreement with these seven company officers to limit their liability for damages to the minimum liability amount to the extent that they have acted in good faith without gross negligence during the course of their duties in accordance with Article 423, Paragraph 1 of the Companies Act. |
| &nbsp;&nbsp;&nbsp;Eiji Kanzawa | &nbsp;&nbsp;&nbsp;The Bank has made an agreement with these seven company officers to limit their liability for damages to the minimum liability amount to the extent that they have acted in good faith without gross negligence during the course of their duties in accordance with Article 423, Paragraph 1 of the Companies Act. |
| &nbsp;&nbsp;&nbsp;Takeshi Kadota | &nbsp;&nbsp;&nbsp;The Bank has made an agreement with these seven company officers to limit their liability for damages to the minimum liability amount to the extent that they have acted in good faith without gross negligence during the course of their duties in accordance with Article 423, Paragraph 1 of the Companies Act. |
| &nbsp;&nbsp;&nbsp;Yasuyoshi Wada | &nbsp;&nbsp;&nbsp;The Bank has made an agreement with these seven company officers to limit their liability for damages to the minimum liability amount to the extent that they have acted in good faith without gross negligence during the course of their duties in accordance with Article 423, Paragraph 1 of the Companies Act. |
| &nbsp;&nbsp;&nbsp;Kiyohito Yamasawa | &nbsp;&nbsp;&nbsp;The Bank has made an agreement with these seven company officers to limit their liability for damages to the minimum liability amount to the extent that they have acted in good faith without gross negligence during the course of their duties in accordance with Article 423, Paragraph 1 of the Companies Act. |

---

(4) Indemnification Agreements

&nbsp;&nbsp;&nbsp;&nbsp;A. Indemnification agreements with incumbent company officers

There are no matters to report.

&nbsp;&nbsp;&nbsp;&nbsp;B. Matters regarding performance of indemnification agreements

There are no matters to report.

(5) Matters Regarding Directors and Officers Liability Insurance Contract

The Bank has entered into the directors and officers liability insurance contract, as outlined below.

[Range of the insured]

Directors, Audit & Supervisory Board Members, and Executive Officers of the Bank

[Outline of directors and officers liability insurance contract]

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Actual ratio of premiums paid by the insured

The premiums are paid by the Bank, including for riders. The insured does not bear the actual premiums.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Outline of events insured against

The contract, together with riders, will cover any damages, litigation costs, and other outlays that may arise due to the insured directors and officers assuming liability for the execution of their duties or receiving a claim related to the pursuit of such liability. However, there are certain exemptions, such as in case of actions taken with the knowledge that such actions are in violation of laws and regulations.

–20–

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Measures to prevent appropriateness of directors' and officers' duties from being undermined

The insurance contract provides for exemption from liability in certain amount, below which damages are not covered. It also provides for a reduced rate at which the Bank bears the risk at certain rate.

–21–

---

| | |
|:---|:---|
| 3 | &nbsp;&nbsp;**Matters Concerning Outside Officers** |

---

(1) Status of Concurrent Holding of Positions by Outside Officers

Mr. Eiji Kanzawa holds a concurrent position of President and CEO of KISSEI COMTEC CO., LTD. The Bank has ordinary transactions, including deposits and loans and bills discounted, with KISSEI COMTEC CO., LTD.

(2) Status of Main Activities of Outside Officers

---

| | | |
|:---|:---|:---|
| Name | Term of office | &nbsp;&nbsp;Main activities |
| &nbsp;&nbsp;&nbsp;Kayo Tashita | 5 years and 9 months | &nbsp;&nbsp;Ms. Kayo Tashita attended all of 14 meetings of the Board of Directors held during the fiscal year and has expressed opinions mainly from a professional viewpoint as an attorney. She has served as the chair of the Nominating and Compensation Committee and be involved in the selection of director candidates and deliberation on director remuneration of the Bank from an independent standpoint. By doing so, she has fulfilled expected roles as outside director. |
| &nbsp;&nbsp;&nbsp;Soukichi Kurosawa | 4 years and 9 months | &nbsp;&nbsp;Mr. Kurosawa attended 13 of 14 meetings of the Board of Directors held during the fiscal year and has expressed opinions mainly based on a wealth of experience in the financial sector and diverse knowledge of organizational operations. He has served as a member of the Nominating and Compensation Committee and be involved in the selection of director candidates and deliberation on director remuneration of the Bank from an independent standpoint. By doing so, he has fulfilled expected roles as outside director. |
| &nbsp;&nbsp;&nbsp;Miyako Hamano | 9 months | &nbsp;&nbsp;Ms. Miyako Hamano attended all of 10 meetings of the Board of Directors held during the fiscal year and expressed opinions mainly from a professional viewpoint in the global field. She has served as a member of the Nominating and Compensation Committee and be involved in the selection of director candidates and deliberation on director remuneration of the Bank from an independent standpoint. By doing so, she has fulfilled expected roles as outside director. |
| &nbsp;&nbsp;&nbsp;Eiji Kanzawa | 9 months | &nbsp;&nbsp;Mr. Eiji Kanzawa attended all of 10 meetings of the Board of Directors held during the fiscal year and expressed opinions mainly from a professional viewpoint in the DX field. He has served as a member of the Nominating and Compensation Committee and be involved in the selection of director candidates and deliberation on director remuneration of the Bank from an independent standpoint. By doing so, he has fulfilled expected roles as outside director. |

---

–22–

---

| | | |
|:---|:---|:---|
| &nbsp;&nbsp;&nbsp;Takeshi Kadota | 14 years and 9 months | &nbsp;&nbsp;Mr. Takeshi Kadota attended all of 14 meetings of the Board of Directors and 14 meetings of the Audit & Supervisory Board held during the fiscal year and has expressed opinions mainly based on a wealth of experience and diverse knowledge about international finance and corporate investment. |
| &nbsp;&nbsp;&nbsp;Yasuyoshi Wada | 6 years and 9 months | &nbsp;&nbsp;Mr. Yasuyoshi Wada attended all of 14 meetings of the Board of Directors and 14 meetings of the Audit & Supervisory Board held during the fiscal year and has expressed opinions mainly based on a wealth of experience in the administrative field and diverse knowledge of organizational operations. |
| &nbsp;&nbsp;&nbsp;Kiyohito Yamasawa | 5 years and 9 months | &nbsp;&nbsp;Mr. Kiyohito Yamasawa attended all of 14 meetings of the Board of Directors and 14 meetings of the Audit & Supervisory Board held during the fiscal year and has expressed opinions mainly based on a wealth of academic experience and diverse knowledge of organizational operations. |

---

&nbsp;&nbsp;&nbsp;&nbsp;(Note) For Ms. Miyako Hamano and Mr. Eiji Kanzawa, the Board of Directors meetings held after their appointment on June 25, 2021 are covered.

(3) Remunerations of Outside Officers, etc.

---

| | | | |
|:---|:---|:---|:---|
| | Officers paid | Remuneration, etc. from the Bank (Million yen) | Remuneration, etc. from the parent, etc. of the Bank (Million yen) |
| &nbsp;&nbsp;&nbsp;&nbsp;Total amount of remuneration, etc. | 7 | 35 (—) |  |

---

&nbsp;&nbsp;&nbsp;&nbsp;(Note) Any amount other than fixed-amount compensation is stated in brackets.

(4) Opinions of Outside Officers

There are no matters to report.

–23–

---

| | |
|:---|:---|
| 4 | &nbsp;&nbsp;**Particulars Regarding Stock of the Bank** |

---

---

| | | |
|:---|:---|:---|
| (1) Number of Shares | Total number of authorized shares | 2,000,000 thousand shares |
|  | Total number of issued and outstanding shares | 511,103 thousand shares |

---

&nbsp;&nbsp;&nbsp;&nbsp;(Note) Any fraction less than a thousand unit for the number of shares is rounded off.

(2) Number of Shareholders as of the End of the Fiscal Year 19,687

(3) Major Shareholders

---

| | | |
|:---|:---|:---|
| Name | Investment in the Bank | Investment in the Bank |
| Name | Number of shares held | Stock ownership ratio |
|  | in thousand | % |
| &nbsp;&nbsp;The Master Trust Bank of Japan, Ltd. (Trust Account) | 66518 | 13.58 |
| &nbsp;&nbsp;Custody Bank of Japan, Ltd. (Trust Account) | 19350 | 3.95 |
| &nbsp;&nbsp;Meiji Yasuda Life Insurance Company | 17867 | 3.64 |
| &nbsp;&nbsp;Nippon Life Insurance Company | 13600 | 2.77 |
| &nbsp;&nbsp;STATE STREET BANK AND TRUST COMPANY 505223 | 13529 | 2.76 |
| &nbsp;&nbsp;Shin-Etsu Chemical Co., Ltd. | 11830 | 2.41 |
| &nbsp;&nbsp;Showa Shoji Co., Ltd. | 11820 | 2.41 |
| &nbsp;&nbsp;MUFG Bank, Ltd. | 10182 | 2.07 |
| &nbsp;&nbsp;Aioi Nissay Dowa Insurance Co., Ltd. | 10041 | 2.05 |
| &nbsp;&nbsp;NORTHERN TRUST CO. (AVFC) SUB A/C USL NON-TREATY | 9669 | 1.97 |

---

&nbsp;&nbsp;&nbsp;&nbsp;(Note) 1. Any fraction less than a thousand unit for the number of shares held is rounded off, and the stock ownership ratio are rounded off to two decimal places.

&nbsp;&nbsp;&nbsp;&nbsp;(Note) 2. The Stock ownership ratio is computed by dividing the number of shares held by the number of issued and outstanding shares (less the number of treasury shares).

(4) Stocks Held by Officers

There are no matters to report.

–24–

---

| | |
|:---|:---|
| 5 | &nbsp;&nbsp;**Matters Regarding Accounting Auditors** |

---

(1) Status of Accounting Auditors

---

| | | | |
|:---|:---|:---|:---|
| Name | Name | Remuneration for the fiscal year | Others |
| &nbsp;&nbsp;Deloitte Touche Tohmatsu LLC | &nbsp;&nbsp;Deloitte Touche Tohmatsu LLC | ¥71 million | &nbsp;&nbsp; (Note 2)<br> (Note 3) |
| &nbsp;&nbsp;Designated Limited Liability Partner | Megumi Yanaga |  | &nbsp;&nbsp; (Note 2)<br> (Note 3) |
| &nbsp;&nbsp;Designated Limited Liability Partner | Masahiko Mutsuda |  | &nbsp;&nbsp; (Note 2)<br> (Note 3) |
| &nbsp;&nbsp;Designated Limited Liability Partner | Masaki Ishio |  | &nbsp;&nbsp; (Note 2)<br> (Note 3) |

---

&nbsp;&nbsp;&nbsp;&nbsp;(Note) 1. Audit remuneration of the audit as stipulated in the Companies Act and that of the audit as stipulated in the Financial Instruments and Exchange Act are not clearly separated in the contract between the Bank and the accounting auditor and cannot be separated in real terms. Accordingly the sum of these is stated in the above remuneration for the fiscal year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Reasons the Audit & Supervisory Board gave consent to the amount of remuneration of each accounting auditor Based on the "Audit & Supervisory Board Members' Audit Standards" and other rules, the Audit & Supervisory Board of the Bank confirmed the content of audit plans, the status of performance of duties for accounting audit, the basis for calculation of remuneration estimates, and other relevant matters with regard to accounting auditors, and analyzed and examined the appropriateness of the remuneration, and as a result found each item appropriate and reasonable and considered it possible to maintain audit quality. Accordingly the Audit & Supervisory Board gave the consent of the remuneration of the accounting auditors as required in Article 399, Paragraph 1 of the Companies Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. The total amount of remuneration payable to the accounting auditors by the Bank and its subsidiaries is ¥94 million.

(2) Liability Limitation Agreement

There are no matters to report.

(3) Indemnification Agreements

&nbsp;&nbsp;&nbsp;&nbsp;A. Indemnification agreements with incumbent accounting auditors

There are no matters to report.

&nbsp;&nbsp;&nbsp;&nbsp;B. Matters regarding performance of indemnification agreements

There are no matters to report.

(4) Other Matters Regarding Accounting Auditors

&nbsp;&nbsp;&nbsp;&nbsp;A. Policies for determination of dismissal or refusal of reelection of accounting auditors

If an accounting auditor falls under any of the items of Article 340, Paragraph 1 of the Companies Act, the Audit & Supervisory Board shall dismiss the accounting auditor subject to unanimous approval from audit & supervisory board members.

If the Audit & Supervisory Board determines that it is appropriate to dismiss or refuse the reelection of an accounting auditor due to other reasons that impair independence or eligibility, the Audit & Supervisory Board, based on its decision, submit a proposal for the dismissal or the refusal of reelection of the accounting auditor to the General Meeting of Shareholders.

–25–

&nbsp;&nbsp;&nbsp;&nbsp;B. In the case of a large company provided for in Article 444, Paragraph 3 of the Companies Act, the fact that a certified public accountant (including a foreign certified public accountant prescribed in Article 16-2, Paragraph 5 of the Certified Public Accountant Act) other than a bank's accounting auditors, or an audit corporation (including persons having the qualifications equivalent to those qualifications in a foreign state) engages in audit (limited to an audit under the Companies Act or the Financial Instruments and Exchange Act (including foreign laws and regulations equivalent to these Acts)) of accounting documents (including documents equivalent thereto) concerning important subsidiaries of the bank, if any.

There are no matters to report.

–26–

---

| | |
|:---|:---|
| 6 | &nbsp;&nbsp;**Matters Regarding Accounting Advisors** |

---

(1) Liability Limitation Agreement

There are no matters to report.

(2) Indemnification Agreements

&nbsp;&nbsp;&nbsp;&nbsp;A. Indemnification agreements with incumbent accounting advisors

There are no matters to report.

&nbsp;&nbsp;&nbsp;&nbsp;B. Matters regarding performance of indemnification agreements

There are no matters to report.

–27–

Non-consolidated Balance Sheet as of March 31, 2022 (Millions of yen)

---

| | | | |
|:---|:---|:---|:---|
| Account name | Amount | Account name | Amount |
| Assets |  | Liabilities |  |
| &nbsp;&nbsp;&nbsp;Cash and due from banks | 4031655 | &nbsp;&nbsp;&nbsp;Deposits | 8066627 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash | 122352 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Current deposits | 366975 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Due from banks | 3909303 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ordinary deposits | 5002443 |
| &nbsp;&nbsp;&nbsp;Call loans | 20000 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Savings deposits | 58580 |
| &nbsp;&nbsp;&nbsp;Monetary claims bought | 116411 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Time deposits | 2403977 |
| &nbsp;&nbsp;&nbsp;Trading account assets | 13370 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Installment savings | 32193 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Trading securities | 731 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other deposits | 202457 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Trading account financial derivatives | 4640 | &nbsp;&nbsp;&nbsp;Negotiable certificates of deposit | 156457 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other trading account assets | 7998 | &nbsp;&nbsp;&nbsp;Call money | 1504861 |
| &nbsp;&nbsp;&nbsp;Money Held in Trust | 79448 | &nbsp;&nbsp;&nbsp;Securities sold under repurchase agreements | 53041 |
| &nbsp;&nbsp;&nbsp;Securities | 2809850 | &nbsp;&nbsp;&nbsp;Cash collateral received for securities lent | 322484 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Government bonds | 820553 | &nbsp;&nbsp;&nbsp;Trading account liabilities | 4279 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Local government bonds | 308214 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Trading account financial derivatives | 4279 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Corporate bonds | 524690 | &nbsp;&nbsp;&nbsp;Borrowed money | 2080959 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stocks | 507908 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Borrowings from other banks | 2080959 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other securities | 648484 | &nbsp;&nbsp;&nbsp;Foreign exchanges | 960 |
| &nbsp;&nbsp;&nbsp;Loans and bills discounted | 5974071 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Due to foreign banks (our accounts) | 10 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Bills discounted | 13031 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Foreign bills sold | 228 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loans on bills | 139384 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Foreign bills payable | 720 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loans on deeds | 5166696 | &nbsp;&nbsp;&nbsp;Borrowed money from trust account | 360 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Overdrafts | 654959 | &nbsp;&nbsp;&nbsp;Other liabilities | 81636 |
| &nbsp;&nbsp;&nbsp;Foreign exchanges | 30546 | &nbsp;&nbsp;&nbsp;Domestic exchange settlement account, credit | 8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Due from foreign banks (our accounts) | 26313 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income taxes payable | 1653 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Foreign bills bought | 3800 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued expenses | 4217 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Foreign bills receivable | 432 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unearned revenue | 1749 |
| &nbsp;&nbsp;&nbsp;Other assets | 132812 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Reserve for interest on installment savings | 0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Domestic exchange settlement account, debit | 21 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Variation margins of futures markets | 93 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses | 779 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Financial derivatives | 14461 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued revenue | 7144 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash collateral received for financial instruments | 7542 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Margin deposits for futures transactions | 60 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Lease liabilities | 354 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Financial derivatives | 35813 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Asset retirement obligations | 144 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash collateral paid for financial instruments | 13538 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other | 51411 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other | 75454 | &nbsp;&nbsp;&nbsp;Provision for retirement benefits | 10236 |
| &nbsp;&nbsp;&nbsp;Tangible fixed assets | 25924 | &nbsp;&nbsp;&nbsp;Provision for reimbursement of deposits | 499 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Buildings, net | 11155 | &nbsp;&nbsp;&nbsp;Provision for contingent loss | 1341 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Land | 10776 | &nbsp;&nbsp;&nbsp;Deferred tax liabilities | 109329 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Leased assets, net | 324 | &nbsp;&nbsp;&nbsp;Acceptances and guarantees | 38113 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Construction in progress | 923 | &nbsp;&nbsp;&nbsp;Total liabilities | 12431189 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other tangible fixed assets | 2744 | Net assets |  |
| &nbsp;&nbsp;&nbsp;Intangible fixed assets | 4471 | &nbsp;&nbsp;&nbsp;Share capital | 52243 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Software | 3876 | &nbsp;&nbsp;&nbsp;Capital surplus | 32557 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Leased assets | 0 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Legal capital surplus | 29609 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other intangible fixed assets | 594 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other capital surplus | 2948 |
| &nbsp;&nbsp;&nbsp;Prepaid pension costs | 23756 | &nbsp;&nbsp;&nbsp;Retained earnings | 477569 |
| &nbsp;&nbsp;&nbsp;Customers' liabilities for acceptances and guarantees | 38113 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Legal retained earnings | 47610 |
| &nbsp;&nbsp;&nbsp;Allowance for loan losses | (35232) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other retained earnings | 429959 |
| &nbsp;&nbsp;&nbsp;Total assets | 13265200 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Reserve for tax purpose reduction entry of non-current assets | 1095 |
|  |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;General reserve | 399600 |
|  |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Retained earnings brought forward | 29263 |
|  |  | &nbsp;&nbsp;&nbsp;Treasury shares | (11576) |
|  |  | &nbsp;&nbsp;&nbsp;Total shareholders' equity | 550794 |
|  |  | &nbsp;&nbsp;&nbsp;Valuation difference on available-for-sale securities | 267274 |
|  |  | &nbsp;&nbsp;&nbsp;Deferred gains or losses on hedges | 15670 |
|  |  | &nbsp;&nbsp;&nbsp;Total valuation and translation adjustments | 282945 |
|  |  | &nbsp;&nbsp;&nbsp;Share acquisition rights | 271 |
|  |  | &nbsp;&nbsp;&nbsp;Total net assets | 834011 |
|  |  | &nbsp;&nbsp;&nbsp;Total liabilities and net assets | 13265200 |

---

–28–

Non-consolidated Statements of Income <br> for the Fiscal Year Ended March 31, 2022 (from April 1, 2021 to March 31, 2022) (Millions of yen)

---

| | | |
|:---|:---|:---|
| Account name | Amount | Amount |
| &nbsp;&nbsp;&nbsp;&nbsp;Ordinary income |  | 111915 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest income | 72676 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest on loans and discounts | 41922 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest and dividends on securities | 26874 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest on call loans | 33 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest on deposits with banks | 3255 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other interest income | 589 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Trust fees | 7 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Fees and commissions | 17847 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Fees and commissions on domestic and foreign exchanges | 5515 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other fees and commissions | 12332 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gain on trading account transactions | 198 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net gain on trading securities | 29 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net gain on trading account financial derivatives | 166 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net gain on other trading account transactions | 1 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other ordinary income | 10941 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gain on foreign exchange transactions | 1226 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gain on sale of bonds | 9714 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gain on redemption of bonds | 0 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other | 0 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other Income | 10243 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Recoveries of written off receivables | 19 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gain on sale of equity securities | 4669 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gain on money held in trust | 4267 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other | 1287 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Ordinary expenses |  | 80550 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest expenses | 4289 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest on deposits | 594 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest on negotiable certificates of deposit | 7 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest on call money | (167) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest expenses on securities sold under repurchase agreements | 102 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest expenses on cash collateral received for securities lent | 291 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest on borrowings and rediscounts | 270 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest expenses on interest rate swaps | 3175 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other interest expenses | 13 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Fees and commissions payments | 7893 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Fees and commissions on domestic and foreign exchanges | 905 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other fees and commissions | 6987 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other ordinary expenses | 7748 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loss on sale of bonds | 7717 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loss on financial derivatives | 31 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;General and administrative expenses | 48510 |  |

---

–29–

(Millions of yen)

---

| | | |
|:---|:---|:---|
| Account name | Amount | Amount |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other expenses | 12108 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Provision of allowance for loan losses | 1888 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Written-off of loans | 3 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Losses on sale of equity securities | 2419 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loss on devaluation of equity securities | 50 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Losses on money held in trust | 3717 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other | 4028 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Ordinary profit |  | 31365 |
| &nbsp;&nbsp;&nbsp;&nbsp;Extraordinary income |  | 762 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gain on disposal of non-current assets | 762 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Extraordinary losses |  | 754 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loss on disposal of non-current assets | 451 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Impairment losses | 302 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Profit before income taxes |  | 31373 |
| &nbsp;&nbsp;&nbsp;&nbsp;Income taxes - current | 7081 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Income taxes - deferred | 1895 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Total income taxes |  | 8977 |
| &nbsp;&nbsp;&nbsp;&nbsp;Profit |  | 22396 |

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–30–

Consolidated Balance Sheet as of March 31, 2022 (Millions of yen)

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| | | | |
|:---|:---|:---|:---|
| Account name | Amount | Account name | Amount |
| Assets |  | Liabilities |  |
| &nbsp;&nbsp;&nbsp;Cash and due from banks | 4049642 | &nbsp;&nbsp;&nbsp;Deposits | 8049875 |
| &nbsp;&nbsp;&nbsp;Call loans and bills bought | 20000 | &nbsp;&nbsp;&nbsp;Negotiable certificates of deposit | 132507 |
| &nbsp;&nbsp;&nbsp;Monetary claims bought | 116411 | &nbsp;&nbsp;&nbsp;Call money and bills sold | 1504861 |
| &nbsp;&nbsp;&nbsp;Trading account assets | 13370 | &nbsp;&nbsp;&nbsp;Securities sold under repurchase agreements | 53041 |
| &nbsp;&nbsp;&nbsp;Money Held in Trust | 79448 | &nbsp;&nbsp;&nbsp;Cash collateral received for securities lent | 322484 |
| &nbsp;&nbsp;&nbsp;Securities | 2801655 | &nbsp;&nbsp;&nbsp;Trading account liabilities | 4279 |
| &nbsp;&nbsp;&nbsp;Loans and bills discounted | 5931315 | &nbsp;&nbsp;&nbsp;Borrowed money | 2087634 |
| &nbsp;&nbsp;&nbsp;Foreign exchanges | 30546 | &nbsp;&nbsp;&nbsp;Foreign exchanges | 960 |
| &nbsp;&nbsp;&nbsp;Lease receivables and investments in leases | 68041 | &nbsp;&nbsp;&nbsp;Borrowed money from trust account | 360 |
| &nbsp;&nbsp;&nbsp;Other assets | 152789 | &nbsp;&nbsp;&nbsp;Other liabilities | 108104 |
| &nbsp;&nbsp;&nbsp;Tangible fixed assets | 34378 | &nbsp;&nbsp;&nbsp;Retirement benefit liability | 11653 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Buildings, net | 11546 | &nbsp;&nbsp;&nbsp;Provision for reimbursement of deposits | 499 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Land | 11144 | &nbsp;&nbsp;&nbsp;Provision for contingent loss | 1341 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Construction in progress | 923 | &nbsp;&nbsp;&nbsp;Reserves under special laws | 12 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other tangible fixed assets | 10764 | &nbsp;&nbsp;&nbsp;Deferred tax liabilities | 115367 |
| &nbsp;&nbsp;&nbsp;Intangible fixed assets | 4628 | &nbsp;&nbsp;&nbsp;Acceptances and guarantees | 38113 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Software | 4018 | &nbsp;&nbsp;&nbsp;Total liabilities | 12431097 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other intangible fixed assets | 609 | Net assets |  |
| &nbsp;&nbsp;&nbsp;Retirement benefit asset | 42803 | &nbsp;&nbsp;&nbsp;Share capital | 52243 |
| &nbsp;&nbsp;&nbsp;Deferred tax assets | 1780 | &nbsp;&nbsp;&nbsp;Capital surplus | 59176 |
| &nbsp;&nbsp;&nbsp;Customers' liabilities for acceptances and guarantees | 38113 | &nbsp;&nbsp;&nbsp;Retained earnings | 512403 |
| &nbsp;&nbsp;&nbsp;Allowance for loan losses | (41129) | &nbsp;&nbsp;&nbsp;Treasury shares | (11576) |
| &nbsp;&nbsp;&nbsp;Total assets | 13343796 | &nbsp;&nbsp;&nbsp;Total shareholders' equity | 612246 |
|  |  | &nbsp;&nbsp;&nbsp;Valuation difference on available-for-sale securities | 268743 |
|  |  | &nbsp;&nbsp;&nbsp;Deferred gains or losses on hedges | 15670 |
|  |  | &nbsp;&nbsp;&nbsp;Remeasurements of defined benefit plans | 12266 |
|  |  | &nbsp;&nbsp;&nbsp;Total accumulated other comprehensive income | 296680 |
|  |  | &nbsp;&nbsp;&nbsp;Share acquisition rights | 271 |
|  |  | &nbsp;&nbsp;&nbsp;Non-controlling interests | 3499 |
|  |  | &nbsp;&nbsp;&nbsp;Total net assets | 912698 |
|  |  | &nbsp;&nbsp;&nbsp;Total liabilities and net assets | 13343796 |

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Consolidated Statements of Income <br> for the Fiscal Year Ended March 31, 2022 (from April 1, 2021 to March 31, 2022) (Millions of yen)

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| | | |
|:---|:---|:---|
| Account name | Amount | Amount |
| &nbsp;&nbsp;&nbsp;&nbsp;Ordinary income |  | 151349 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest income | 72803 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest on loans and discounts | 41893 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest and dividends on securities | 26989 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest on call loans and bills bought | 33 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest on deposits with banks | 3257 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other interest income | 629 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Trust fees | 7 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Fees and commissions | 22010 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gain on trading account transactions | 2063 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other ordinary income | 44177 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other Income | 10287 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Recoveries of written off receivables | 25 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other | 10261 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Ordinary expenses |  | 113301 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest expenses | 4318 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest on deposits | 594 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest on negotiable certificates of deposit | 6 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest on call money and bills sold | (167) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest expenses on securities sold under repurchase agreements | 102 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest expenses on cash collateral received for securities lent | 291 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest on borrowings and rediscounts | 295 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other interest expenses | 3195 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Fees and commissions payments | 5600 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other ordinary expenses | 37263 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;General and administrative expenses | 54038 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other expenses | 12080 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Provision of allowance for loan losses | 1800 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other | 10279 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Ordinary profit |  | &nbsp;&nbsp;&nbsp;&nbsp;38047 |
| &nbsp;&nbsp;&nbsp;&nbsp;Extraordinary income |  | &nbsp;&nbsp;&nbsp;&nbsp;762 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gain on disposal of non-current assets | 762 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Extraordinary losses |  | &nbsp;&nbsp;&nbsp;&nbsp;754 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loss on disposal of non-current assets | &nbsp;&nbsp;&nbsp;&nbsp;451 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Impairment losses | 302 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Provision of reserve for financial instruments transaction liabilities | 0 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Profit before income taxes |  | &nbsp;&nbsp;&nbsp;&nbsp;38055 |
| &nbsp;&nbsp;&nbsp;&nbsp;Income taxes - current | &nbsp;&nbsp;&nbsp;&nbsp;8950 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Income taxes - deferred | &nbsp;&nbsp;&nbsp;&nbsp;2254 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Total income taxes |  | &nbsp;&nbsp;&nbsp;&nbsp;11204 |
| &nbsp;&nbsp;&nbsp;&nbsp;Profit |  | &nbsp;&nbsp;&nbsp;&nbsp;26850 |
| &nbsp;&nbsp;&nbsp;&nbsp;Profit attributable to non-controlling interests |  | &nbsp;&nbsp;&nbsp;&nbsp;182 |
| &nbsp;&nbsp;&nbsp;&nbsp;Profit attributable to owners of parent |  | &nbsp;&nbsp;&nbsp;&nbsp;26667 |

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–32–

Accounting Auditors' Report (certified copy)

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| | | |
|:---|:---|:---|
| &nbsp;&nbsp; Independent Auditors' Report<br> May 13, 2022<br> To the Board of Directors of The Hachijuni Bank, Ltd.<br> Deloitte Touche Tohmatsu LLC, Nagano Office | &nbsp;&nbsp; Independent Auditors' Report<br> May 13, 2022<br> To the Board of Directors of The Hachijuni Bank, Ltd.<br> Deloitte Touche Tohmatsu LLC, Nagano Office | &nbsp;&nbsp; Independent Auditors' Report<br> May 13, 2022<br> To the Board of Directors of The Hachijuni Bank, Ltd.<br> Deloitte Touche Tohmatsu LLC, Nagano Office |
| &nbsp;&nbsp; Designated Limited Liability Partner<br> Engagement Partner | &nbsp;&nbsp;&nbsp;Certified Public Accountant | &nbsp;&nbsp;Megumi Yanaga &nbsp;&nbsp;&nbsp;(Seal) |
| &nbsp;&nbsp; Designated Limited Liability Partner<br> Engagement Partner | &nbsp;&nbsp;&nbsp;Certified Public Accountant | &nbsp;&nbsp;Masahiko Mutsuda &nbsp;&nbsp;&nbsp;(Seal) |
| &nbsp;&nbsp; Designated Limited Liability Partner<br> Engagement Partner | &nbsp;&nbsp;&nbsp;Certified Public Accountant | &nbsp;&nbsp;Masaki Ishio &nbsp;&nbsp;&nbsp;(Seal) |
| &nbsp;&nbsp;&nbsp; Opinion<br> We have audited the non-consolidated financial statements of The Hachijuni Bank, Ltd. (hereinafter referred to as the "Company"), which comprise the non-consolidated balance sheet as at March 31, 2022, the non-consolidated statement of income, the non-consolidated statement of changes in equity, and the notes to the non-consolidated financial statements and the annexed detailed statements thereof for the 139th fiscal year from April 1, 2021 to March 31, 2022 (hereinafter referred to as the "Financial Statements") in accordance with Article 436-2, Paragraph 1 of the Companies Act.<br> In our opinion, the aforementioned Financial Statements present fairly, in all material respects, the status of its financial position as of March 31, 2022 and its operating results for the fiscal year ended March 31, 2022 in accordance with accounting standards generally accepted in Japan.<br>Basis for Opinion<br> We conducted our audit in accordance with the accounting standards generally accepted in Japan. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements of our report. We are independent of the Company in accordance with the provisions of the Code of Professional Ethics in Japan, and we have fulfilled our other ethical responsibilities as auditors. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.<br>Other Information<br> The other information comprises the Business Report and the annexed detailed statements thereof. Management is responsible for the preparation and disclosure of the other information. The Audit & Supervisory Board Members and the Audit & Supervisory Board are responsible for overseeing the execution of duties by Directors relating to the design and operation of the Company's reporting process of the other information.<br> Our opinion on the Financial Statements does not cover the other information and we do not intend to express opinion thereon.<br> In connection of our audit of the Financial Statements, our responsibility is to read the other information, and, in doing so, consider whether the other information is materially inconsistent with the Financial Statements or our knowledge obtained in the audit and pay attention to any sign of material errors in other information other than such material differences.<br> If we judged that there are material errors in other information based on the work we carried out, we are required to report that fact.<br> We found no matter we should report regarding other information. | &nbsp;&nbsp;&nbsp; Opinion<br> We have audited the non-consolidated financial statements of The Hachijuni Bank, Ltd. (hereinafter referred to as the "Company"), which comprise the non-consolidated balance sheet as at March 31, 2022, the non-consolidated statement of income, the non-consolidated statement of changes in equity, and the notes to the non-consolidated financial statements and the annexed detailed statements thereof for the 139th fiscal year from April 1, 2021 to March 31, 2022 (hereinafter referred to as the "Financial Statements") in accordance with Article 436-2, Paragraph 1 of the Companies Act.<br> In our opinion, the aforementioned Financial Statements present fairly, in all material respects, the status of its financial position as of March 31, 2022 and its operating results for the fiscal year ended March 31, 2022 in accordance with accounting standards generally accepted in Japan.<br>Basis for Opinion<br> We conducted our audit in accordance with the accounting standards generally accepted in Japan. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements of our report. We are independent of the Company in accordance with the provisions of the Code of Professional Ethics in Japan, and we have fulfilled our other ethical responsibilities as auditors. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.<br>Other Information<br> The other information comprises the Business Report and the annexed detailed statements thereof. Management is responsible for the preparation and disclosure of the other information. The Audit & Supervisory Board Members and the Audit & Supervisory Board are responsible for overseeing the execution of duties by Directors relating to the design and operation of the Company's reporting process of the other information.<br> Our opinion on the Financial Statements does not cover the other information and we do not intend to express opinion thereon.<br> In connection of our audit of the Financial Statements, our responsibility is to read the other information, and, in doing so, consider whether the other information is materially inconsistent with the Financial Statements or our knowledge obtained in the audit and pay attention to any sign of material errors in other information other than such material differences.<br> If we judged that there are material errors in other information based on the work we carried out, we are required to report that fact.<br> We found no matter we should report regarding other information. | &nbsp;&nbsp;&nbsp; Opinion<br> We have audited the non-consolidated financial statements of The Hachijuni Bank, Ltd. (hereinafter referred to as the "Company"), which comprise the non-consolidated balance sheet as at March 31, 2022, the non-consolidated statement of income, the non-consolidated statement of changes in equity, and the notes to the non-consolidated financial statements and the annexed detailed statements thereof for the 139th fiscal year from April 1, 2021 to March 31, 2022 (hereinafter referred to as the "Financial Statements") in accordance with Article 436-2, Paragraph 1 of the Companies Act.<br> In our opinion, the aforementioned Financial Statements present fairly, in all material respects, the status of its financial position as of March 31, 2022 and its operating results for the fiscal year ended March 31, 2022 in accordance with accounting standards generally accepted in Japan.<br>Basis for Opinion<br> We conducted our audit in accordance with the accounting standards generally accepted in Japan. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements of our report. We are independent of the Company in accordance with the provisions of the Code of Professional Ethics in Japan, and we have fulfilled our other ethical responsibilities as auditors. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.<br>Other Information<br> The other information comprises the Business Report and the annexed detailed statements thereof. Management is responsible for the preparation and disclosure of the other information. The Audit & Supervisory Board Members and the Audit & Supervisory Board are responsible for overseeing the execution of duties by Directors relating to the design and operation of the Company's reporting process of the other information.<br> Our opinion on the Financial Statements does not cover the other information and we do not intend to express opinion thereon.<br> In connection of our audit of the Financial Statements, our responsibility is to read the other information, and, in doing so, consider whether the other information is materially inconsistent with the Financial Statements or our knowledge obtained in the audit and pay attention to any sign of material errors in other information other than such material differences.<br> If we judged that there are material errors in other information based on the work we carried out, we are required to report that fact.<br> We found no matter we should report regarding other information. |

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–33–

&nbsp;&nbsp;&nbsp;&nbsp; Responsibilities of Management, the Audit & Supervisory Board Members and the Audit & Supervisory Board for the Financial Statements<br> Management is responsible for the preparation and fair presentation of the Financial Statements in accordance with accounting standards generally accepted in Japan. This includes the design and operation of internal control that management determines is necessary to enable the preparation and fair presentation of the Financial Statements that are free from material misstatement, whether due to fraud or error.<br> In preparing the Financial Statements, management is responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern in accordance with accounting standards generally accepted in Japan.<br> Audit & Supervisory Board Members and the Audit & Supervisory Board are responsible for overseeing the execution of duties by Directors relating to the design and operation of the Company's financial reporting process.<br>Auditor's Responsibilities for the Audit of the Financial Statements<br> Our objectives are to obtain reasonable assurance about whether the Financial Statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion on the Financial Statements expressed from an independent perspective. A misstatement may occur due to fraud or error, and we judge it to be material when it is reasonably expected that, individually or in the aggregate, it has an impact on economic decisions by the users of these Financial Statements.<br> As part of our audit in accordance with auditing standards generally accepted in Japan, we exercise professional judgement and maintain professional skepticism throughout the audit. We also:<br> &nbsp;&nbsp;&nbsp;&nbsp;• Identify and asses the risks of material misstatement of the Financial Statements, whether due to fraud or error. Design and perform audit procedures responsive to those risks. Select and apply audit procedure based on the auditor's judgement. Further, we obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.<br> &nbsp;&nbsp;&nbsp;&nbsp;• Obtain, in performing risk assessment procedures, an understanding of the internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, while the objective of the audit is not to express an opinion on the effectiveness of the Company's internal control.<br> &nbsp;&nbsp;&nbsp;&nbsp;• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates, and related notes made by management.<br> &nbsp;&nbsp;&nbsp;&nbsp;• Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company's ability to continue as a going concern. If we conclude that a material uncertainty regarding the Company's ability to continue as a going concern exists, we are required to draw attention in our auditor's report to the related notes in the Financial Statements or, if such notes are inadequate, to express our opinion with exceptions on the Financial Statements, etc. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Company to cease to continue as a going concern.<br> &nbsp;&nbsp;&nbsp;&nbsp;• Evaluate the overall presentation, structure, and content of the Financial Statements, including the notes, and whether the Financial Statements represent the underlying transactions and events in a manner that achieves fair presentation in accordance with accounting standards generally accepted in Japan.<br> We communicate with Audit & Supervisory Board Members and the Audit & Supervisory Board regarding, among other matters required by auditing standards, the planned scope and timing of the audit, significant audit findings, including any significant deficiencies in internal control that we identify during our audit.<br> We also provide the Audit & Supervisory Board Members and the Audit & Supervisory Board with a statement that we have complied with relevant ethical requirements regarding independence, and communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.<br>Interest<br> Our firm and its engagement partners do not have any interest in the Company which is required to be disclosed pursuant to the provisions of the Certified Public Accountants Act of Japan.<br> End of document<br>

–34–

Accounting Auditors' Report for Consolidated Financial Statements (certified copy)

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| | | |
|:---|:---|:---|
| &nbsp;&nbsp; Independent Auditors' Report<br> May 13, 2022,<br> To the Board of Directors of The Hachijuni Bank, Ltd.<br> Deloitte Touche Tohmatsu LLC, Nagano Office | &nbsp;&nbsp; Independent Auditors' Report<br> May 13, 2022,<br> To the Board of Directors of The Hachijuni Bank, Ltd.<br> Deloitte Touche Tohmatsu LLC, Nagano Office | &nbsp;&nbsp; Independent Auditors' Report<br> May 13, 2022,<br> To the Board of Directors of The Hachijuni Bank, Ltd.<br> Deloitte Touche Tohmatsu LLC, Nagano Office |
| &nbsp;&nbsp; Designated Limited Liability Partner<br> Engagement Partner | &nbsp;&nbsp;&nbsp;Certified Public Accountant | &nbsp;&nbsp;Megumi Yanaga &nbsp;&nbsp;&nbsp;(Seal) |
| &nbsp;&nbsp; Designated Limited Liability Partner<br> Engagement Partner | &nbsp;&nbsp;&nbsp;Certified Public Accountant | &nbsp;&nbsp;Masahiko Mutsuda &nbsp;&nbsp;&nbsp;(Seal) |
| &nbsp;&nbsp; Designated Limited Liability Partner<br> Engagement Partner | &nbsp;&nbsp;&nbsp;Certified Public Accountant | &nbsp;&nbsp;Masaki Ishio &nbsp;&nbsp;&nbsp;(Seal) |
| &nbsp;&nbsp;&nbsp; Opinion<br> We have audited the consolidated financial statements of The Hachijuni Bank, Ltd. (hereinafter referred to as the "Company"), which comprise the consolidated balance sheet as at March 31, 2022, the consolidated statement of income, the consolidated statement of changes in equity, and the notes to the consolidated financial statements for the fiscal year from April 1, 2021 to March 31, 2022 (hereinafter referred to as the "Consolidated Financial Statements") in accordance with Article 444, Paragraph 4 of the Companies Act.<br> In our opinion, the aforementioned Consolidated Financial Statements present fairly, in all material respects, the status of the financial position of the Group comprising The Hachijuni Bank, Ltd. and its consolidated subsidiaries as of March 31, 2022 and the operating results of the Group for the fiscal year ended March 31, 2022 in accordance with accounting standards generally accepted in Japan.<br>Basis for Opinion<br> We conducted our audit in accordance with the accounting standards generally accepted in Japan. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Consolidated Financial Statements of our report. We are independent of the Company and its consolidated subsidiaries in accordance with the provisions of the Code of Professional Ethics in Japan, and we have fulfilled our other ethical responsibilities as auditors. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.<br>Other Information<br> The other information comprises the Business Report and the annexed detailed statements thereof. Management is responsible for the preparation and disclosure of the other information. The Audit & Supervisory Board Members and the Audit & Supervisory Board are responsible for overseeing the execution of duties by Directors relating to the design and operation of the Company's reporting process of the other information.<br> Our opinion on the Consolidated Financial Statements does not cover the other information and we do not intend to express opinion thereon.<br> In connection of our audit of the Consolidated Financial Statements, our responsibility is to read the other information, and, in doing so, consider whether the other information is materially inconsistent with the Consolidated Financial Statements or our knowledge obtained in the audit and pay attention to any sign of material errors in other information other than such material differences.<br> If we judged that there are material errors in other information based on the work we carried out, we are required to report that fact.<br> We found no matter we should report regarding other information. | &nbsp;&nbsp;&nbsp; Opinion<br> We have audited the consolidated financial statements of The Hachijuni Bank, Ltd. (hereinafter referred to as the "Company"), which comprise the consolidated balance sheet as at March 31, 2022, the consolidated statement of income, the consolidated statement of changes in equity, and the notes to the consolidated financial statements for the fiscal year from April 1, 2021 to March 31, 2022 (hereinafter referred to as the "Consolidated Financial Statements") in accordance with Article 444, Paragraph 4 of the Companies Act.<br> In our opinion, the aforementioned Consolidated Financial Statements present fairly, in all material respects, the status of the financial position of the Group comprising The Hachijuni Bank, Ltd. and its consolidated subsidiaries as of March 31, 2022 and the operating results of the Group for the fiscal year ended March 31, 2022 in accordance with accounting standards generally accepted in Japan.<br>Basis for Opinion<br> We conducted our audit in accordance with the accounting standards generally accepted in Japan. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Consolidated Financial Statements of our report. We are independent of the Company and its consolidated subsidiaries in accordance with the provisions of the Code of Professional Ethics in Japan, and we have fulfilled our other ethical responsibilities as auditors. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.<br>Other Information<br> The other information comprises the Business Report and the annexed detailed statements thereof. Management is responsible for the preparation and disclosure of the other information. The Audit & Supervisory Board Members and the Audit & Supervisory Board are responsible for overseeing the execution of duties by Directors relating to the design and operation of the Company's reporting process of the other information.<br> Our opinion on the Consolidated Financial Statements does not cover the other information and we do not intend to express opinion thereon.<br> In connection of our audit of the Consolidated Financial Statements, our responsibility is to read the other information, and, in doing so, consider whether the other information is materially inconsistent with the Consolidated Financial Statements or our knowledge obtained in the audit and pay attention to any sign of material errors in other information other than such material differences.<br> If we judged that there are material errors in other information based on the work we carried out, we are required to report that fact.<br> We found no matter we should report regarding other information. | &nbsp;&nbsp;&nbsp; Opinion<br> We have audited the consolidated financial statements of The Hachijuni Bank, Ltd. (hereinafter referred to as the "Company"), which comprise the consolidated balance sheet as at March 31, 2022, the consolidated statement of income, the consolidated statement of changes in equity, and the notes to the consolidated financial statements for the fiscal year from April 1, 2021 to March 31, 2022 (hereinafter referred to as the "Consolidated Financial Statements") in accordance with Article 444, Paragraph 4 of the Companies Act.<br> In our opinion, the aforementioned Consolidated Financial Statements present fairly, in all material respects, the status of the financial position of the Group comprising The Hachijuni Bank, Ltd. and its consolidated subsidiaries as of March 31, 2022 and the operating results of the Group for the fiscal year ended March 31, 2022 in accordance with accounting standards generally accepted in Japan.<br>Basis for Opinion<br> We conducted our audit in accordance with the accounting standards generally accepted in Japan. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Consolidated Financial Statements of our report. We are independent of the Company and its consolidated subsidiaries in accordance with the provisions of the Code of Professional Ethics in Japan, and we have fulfilled our other ethical responsibilities as auditors. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.<br>Other Information<br> The other information comprises the Business Report and the annexed detailed statements thereof. Management is responsible for the preparation and disclosure of the other information. The Audit & Supervisory Board Members and the Audit & Supervisory Board are responsible for overseeing the execution of duties by Directors relating to the design and operation of the Company's reporting process of the other information.<br> Our opinion on the Consolidated Financial Statements does not cover the other information and we do not intend to express opinion thereon.<br> In connection of our audit of the Consolidated Financial Statements, our responsibility is to read the other information, and, in doing so, consider whether the other information is materially inconsistent with the Consolidated Financial Statements or our knowledge obtained in the audit and pay attention to any sign of material errors in other information other than such material differences.<br> If we judged that there are material errors in other information based on the work we carried out, we are required to report that fact.<br> We found no matter we should report regarding other information. |

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–35–

&nbsp;&nbsp;&nbsp;&nbsp; Responsibilities of Management, the Audit & Supervisory Board Members and the Audit & Supervisory Board for the Consolidated Financial Statements<br> Management is responsible for the preparation and fair presentation of the Consolidated Financial Statements in accordance with accounting standards generally accepted in Japan. This includes the design and operation of internal control that management determines is necessary to enable the preparation and fair presentation of the Consolidated Financial Statements that are free from material misstatement, whether due to fraud or error.<br> In preparing the Consolidated Financial Statements, management is responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern in accordance with accounting standards generally accepted in Japan.<br> Audit & Supervisory Board Members and the Audit & Supervisory Board are responsible for overseeing the execution of duties by Directors relating to the design and operation of the Company's financial reporting process.<br>Auditor's Responsibilities for the Audit of the Consolidated Financial Statements<br> Our objectives are to obtain reasonable assurance about whether the Consolidated Financial Statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion on the Consolidated Financial Statements expressed from an independent perspective. A Misstatement may occur due to fraud or error, and we judge it to be material when it is reasonably expected that, individually or in the aggregate, it has an impact on economic decisions by the users of these Consolidated Financial Statements.<br> As part of our audit in accordance with auditing standards generally accepted in Japan, we exercise professional judgement and maintain professional skepticism throughout the audit. We also:<br> &nbsp;&nbsp;&nbsp;&nbsp;• Identify and asses the risks of material misstatement of the Financial Statements, whether due to fraud or error. Design and perform audit procedures responsive to those risks. Select and apply audit procedure based on the auditor's judgement. Further, we obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.<br> &nbsp;&nbsp;&nbsp;&nbsp;• Obtain, in performing risk assessment procedures, an understanding of the internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, while the objective of the audit is not to express an opinion on the effectiveness of the Company's internal control.<br> &nbsp;&nbsp;&nbsp;&nbsp;• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates, and related notes made by management.<br> &nbsp;&nbsp;&nbsp;&nbsp;• Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company's ability to continue as a going concern. If we conclude that a material uncertainty regarding the Company's ability to continue as a going concern exists, we are required to draw attention in our auditor's report to the related notes in the Consolidated Financial Statements or, if such notes are inadequate, to express our opinion with exceptions on the Consolidated Financial Statements, etc. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Company to cease to continue as a going concern.<br> &nbsp;&nbsp;&nbsp;&nbsp;• Evaluate the overall presentation, structure, and content of the Consolidated Financial Statements, including the notes, and whether the Consolidated Financial Statements represent underlying transactions and events in a manner that achieves fair presentation in accordance with accounting standards generally accepted in Japan.<br> &nbsp;&nbsp;&nbsp;&nbsp;• Obtain sufficient and appropriate audit evidence regarding the financial information in relation to the Company and its consolidated subsidiaries to express our opinion on the Consolidated Financial Statements. We are responsible for the direction, supervision, and performance of the audit of the Consolidated Financial Statements. We are solely responsible for our audit opinion.<br> We communicate with Audit & Supervisory Board Members and the Audit & Supervisory Board regarding, among other matters required by auditing standards, the planned scope and timing of the audit, significant audit findings, including any significant deficiencies in internal control that we identify during our audit.<br>

–36–

&nbsp;&nbsp;&nbsp; We also provide the Audit & Supervisory Board Members and the Audit & Supervisory Board with a statement that we have complied with relevant ethical requirements regarding independence, and communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.<br>Interest<br> Our firm and its engagement partners do not have any interest in the Company and its consolidated subsidiaries which is required to be disclosed pursuant to the provisions of the Certified Public Accountants Act of Japan.<br> End of document<br>

–37–

Audit & Supervisory Board's Audit Report (certified copy)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Audit Report<br>The Audit & Supervisory Board, based on audit reports prepared by each Audit & Supervisory Board Member, prepared this audit report regarding the execution of duties by Directors for the 139th fiscal year from April 1, 2021 to March 31, 2022 through deliberation, and report as follows:<br> 1. Method and Details of Audit Made by the Audit & Supervisory Board Members and the Audit & Supervisory Board<br> (1) The Audit & Supervisory Board established its audit policy, audit plan, and relevant matters, received reports on the implementation status and result of an audit from each Audit & Supervisory Board Member, received reports from Directors, etc. and accounting auditors on the status of execution of their duties, and demanded an explanation as necessary.<br> (2) Each Audit & Supervisory Board Member, in accordance with the Audit & Supervisory Board Members' Audit Standards established by the Audit & Supervisory Board and based on the audit policy, audit plan and other rules, communicated with Directors, internal audit section and other employees and equivalents, endeavored to collect information and build a better audit environment, and conducted audit in the following manner:<br> &nbsp;&nbsp;&nbsp;&nbsp;(i) Attended the Board of Directors and other important meetings, received reports from Directors, employees and others on the status of execution of their duties, demanded an explanation as necessary, reviewed important approval documents and the like, and examined the status of business operations and property at the headquarters and main sales branches. Communicated and exchanged information with Directors and Audit & Supervisory Board Members, etc. of subsidiaries, and received reports from the subsidiaries on their business as necessary.<br> &nbsp;&nbsp;&nbsp;&nbsp;(ii) With regard to the content of the resolution by the Board of Director concerning the development of systems necessary to ensure that the execution of duties by Directors as stated in the Business Report complies with laws and regulations and the Articles of Incorporation, and other systems prescribed in Article 100, Paragraphs 1 and 3 of the Regulation for Enforcement of the Companies Act as systems necessary to ensure the properness of operations of a stock company and operations of group of enterprises consisting of the stock company and its subsidiary companies, and the systems developed based on the said resolution (the internal control system), regularly received reports from Directors, employees and other persons on the status of establishment and operation thereof, demanded explanations as necessary, and expressed opinions. Received reports on the internal controls over financial reports from Directors and equivalents, and Deloitte Touche Tohmatsu LLC on the assessment of the internal control and the status of audit and demanded an explanation as necessary.<br> &nbsp;&nbsp;&nbsp;&nbsp;(iii) Monitored and verified if accounting auditors maintain a stance of independence and conduct appropriate audit, and received reports from the accounting auditors on the status of execution of their duties and demanded an explanation as necessary. Received the notice to the effect that the systems for ensuring that the performance of the duties of the accounting auditors is being carried out correctly (as stipulated in the items of Article 131 of the Company Accounting Rules) were developed in accordance with the quality control standard for auditing (published by the Business Accounting Council on October 28, 2005), and demanded explanations as necessary.<br> Based on the aforementioned methods, we examined the Business Report and the annexed detailed statements thereof, the non-consolidated financial statements (namely the non-consolidated balance sheet, the non-consolidated statements of income, the non-consolidated statements of changes in equity, and the notes to the non-consolidated financial statements) and the annexed detailed statements thereof, and the consolidated financial statements (namely the consolidated balance sheet, the consolidated statements of income, the consolidated statements of changes in equity, and the notes to the consolidated financial statements) for the fiscal year under review.<br> &nbsp;&nbsp;&nbsp;&nbsp;2. Audit Result<br> (1) Audit result of Business Report<br> &nbsp;&nbsp;&nbsp;&nbsp;(i) We find that the Business Report and the annexed detailed statements thereof comply with laws, regulations and the Articles of Incorporation and accurately represent the status of the Company.<br> &nbsp;&nbsp;&nbsp;&nbsp;(ii) We find no fraudulent act about the execution of duties by Directors or no material fact in violation of laws, regulations or the Articles of Incorporation.<br> &nbsp;&nbsp;&nbsp;&nbsp;(iii) We find the content of the resolution of the Board of Directors regarding the internal control system (including internal controls over financial reports) appropriate.<br> We find no finding in relation to the content described in the Business Report regarding such internal control system and the execution of duties by directors, either.<br>

–38–

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| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (2) Audit result of Financial Statements and the Financial Statements and the annexed detailed statements thereof<br> We find the method and results of the audit made by Deloitte Touche Tohmatsu LLC appropriate.<br> (3) Audit result of Consolidated Financial Statements<br> We find the method and results of the audit made by Deloitte Touche Tohmatsu LLC appropriate.<br> May 13, 2022<br> The Audit & Supervisory Board of The Hachijuni Bank, Ltd. | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (2) Audit result of Financial Statements and the Financial Statements and the annexed detailed statements thereof<br> We find the method and results of the audit made by Deloitte Touche Tohmatsu LLC appropriate.<br> (3) Audit result of Consolidated Financial Statements<br> We find the method and results of the audit made by Deloitte Touche Tohmatsu LLC appropriate.<br> May 13, 2022<br> The Audit & Supervisory Board of The Hachijuni Bank, Ltd. |
| &nbsp;&nbsp;&nbsp;Fulltime Audit & Supervisory Board Member | &nbsp;&nbsp;Yoshimi Kitazawa &nbsp;&nbsp;&nbsp;(Seal) |
| &nbsp;&nbsp;&nbsp;Fulltime Audit & Supervisory Board Member | &nbsp;&nbsp;Chishu Minemura &nbsp;&nbsp;&nbsp;(Seal) |
| &nbsp;&nbsp;&nbsp;Outside Audit & Supervisory Board Member | &nbsp;&nbsp;Takeshi Kadota &nbsp;&nbsp;&nbsp;(Seal) |
| &nbsp;&nbsp;&nbsp;Outside Audit & Supervisory Board Member | &nbsp;&nbsp;Yasuyoshi Wada &nbsp;&nbsp;&nbsp;(Seal) |
| &nbsp;&nbsp;&nbsp;Outside Audit & Supervisory Board Member | &nbsp;&nbsp;Kiyohito Yamasawa &nbsp;&nbsp;&nbsp;(Seal) |

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End of document

–39–

## Exhibit 99.3

The transactions pursuant to the share exchange described in this document involve securities of a Japanese company. The share exchange is subject to disclosure requirements of Japan that are different from those of the United States. Financial information included in this document, if any, was excerpted from financial statements prepared in accordance with foreign accounting standards that may not be comparable to the financial statements of United States companies.<br> It may be difficult for you to enforce your rights and any claim you may have arising under the U.S. federal securities laws, since the issuer is located in Japan and some or all of its officers and directors reside outside of the United States. You may not be able to sue a Japanese company or its officers or directors in a Japanese court for violations of the U.S. securities laws. It may be difficult to compel a Japanese company and its affiliates to subject themselves to a U.S. court's judgment. You should be aware that the issuer may purchase securities otherwise than under the share exchange, such as in the open market or through privately negotiated purchases.<br> This document has been translated from the Japanese-language original for reference purposes only. In the event of any conflict or discrepancy between this document and the Japanese-language original, the Japanese-language original shall prevail in all respects.<br>

**Matters Disclosed on the Internet Concerning Notice of Convocation of Extraordinary Meeting of Shareholders**

**Proposal No. 1: Approval of the Share Exchange Agreement**

**Matters Disclosed on the Internet**

**(The following matters on P.16 of the Notice of Convocation "6. Matters Related to Financial Statements, etc., (1) Details of Financial Statements Pertaining to the Most Recent Business Year of Hachijuni Bank.")**

---

| | |
|:---|:---|
| &nbsp;&nbsp;**The Hachijuni Bank, Ltd.** | &nbsp;&nbsp;**The Hachijuni Bank, Ltd.** |
| &nbsp;&nbsp;**Business Report** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Matters Related to Stock Acquisition Rights, etc.** | &nbsp;&nbsp;**1** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Basic Policy Concerning Requirements for the Person** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Controlling Decisions of Financial and Business Policies** | &nbsp;&nbsp;**4** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Systems to Ensure the Properness of Business Activities** | &nbsp;&nbsp;**4** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Matters Related to Specified Wholly-owned Subsidiary Company** | &nbsp;&nbsp;**9** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Matters Related to Transactions with Parent Company, etc.** | &nbsp;&nbsp;**9** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Others** | &nbsp;&nbsp;**9** |
| &nbsp;&nbsp;**Non-consolidated Financial Statements** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Non-consolidated Statement of Changes in Equity** | &nbsp;&nbsp;**10** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Notes to Non-consolidated Financial Statements** | &nbsp;&nbsp;**12** |
| &nbsp;&nbsp;**Consolidated Financial Statements** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Consolidated Statement of Changes in Equity** | &nbsp;&nbsp;**24** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Notes to Consolidated Financial Statements** | &nbsp;&nbsp;**26** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;From April 1 to March 31, 2022) |  |

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**THE NAGANO BANK, LTD.**

The above-stated matters are deemed to have been provided to shareholders by their being posted on the Bank's website (https://www.naganobank.co.jp/site/kabu/sokai.html) in accordance with laws and regulations and Article 17 of the Articles of Incorporation of the Bank.

1 Matters Related to Stock Acquisition Rights, etc.

(1) Stock acquisition rights held by company officers of the Bank as of March 31, 2022

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| | | | |
|:---|:---|:---|:---|
| | Description of stock acquisition rights, etc. | Description of stock acquisition rights, etc. | Number of persons granted |
| Directors<br> (Excluding Outside Directors) | (1) | Name | 1 director |
| Directors<br> (Excluding Outside Directors) |  | 4th Stock Acquisition Rights | 1 director |
| Directors<br> (Excluding Outside Directors) | (2) | Class and number of underlying stocks | 1 director |
| Directors<br> (Excluding Outside Directors) |  | Common stock 15,200 shares | 1 director |
| Directors<br> (Excluding Outside Directors) | (3) | Exercise period | 1 director |
| Directors<br> (Excluding Outside Directors) |  | From August 9, 2011 to August 8, 2036 | 1 director |
| Directors<br> (Excluding Outside Directors) | (4) | Exercise price per share | 1 director |
| Directors<br> (Excluding Outside Directors) |  | ¥1 | 1 director |
| Directors<br> (Excluding Outside Directors) | (5) | Conditions for exercise of the rights | 1 director |
| Directors<br> (Excluding Outside Directors) |  | A holder of a stock acquisition right may exercise his/her right only within 10 days from the day following the date on which the holder lost his/her status as Director of the Bank. | 1 director |
| Directors<br> (Excluding Outside Directors) | (1) | Name | 1 director |
| Directors<br> (Excluding Outside Directors) |  | 5th Stock Acquisition Rights | 1 director |
| Directors<br> (Excluding Outside Directors) | (2) | Class and number of underlying stocks | 1 director |
| Directors<br> (Excluding Outside Directors) |  | Common stock 15,200 shares | 1 director |
| Directors<br> (Excluding Outside Directors) | (3) | Exercise period | 1 director |
| Directors<br> (Excluding Outside Directors) |  | From August 7, 2012 to August 6, 2037 | 1 director |
| Directors<br> (Excluding Outside Directors) | (4) | Exercise price per share | 1 director |
| Directors<br> (Excluding Outside Directors) |  | ¥1 | 1 director |
| Directors<br> (Excluding Outside Directors) | (5) | Conditions for exercise of the rights | 1 director |
| Directors<br> (Excluding Outside Directors) |  | A holder of a stock acquisition right may exercise his/her right only within 10 days from the day following the date on which the holder lost his/her status as Director of the Bank. | 1 director |
| Directors<br> (Excluding Outside Directors) | (1) | Name | 1 director |
| Directors<br> (Excluding Outside Directors) |  | 6th Stock Acquisition Rights | 1 director |
| Directors<br> (Excluding Outside Directors) | (2) | Class and number of underlying stocks | 1 director |
| Directors<br> (Excluding Outside Directors) |  | Common stock 28,800 shares | 1 director |
| Directors<br> (Excluding Outside Directors) | (3) | Exercise period | 1 director |
| Directors<br> (Excluding Outside Directors) |  | From August 6, 2013 to August 5, 2038 | 1 director |
| Directors<br> (Excluding Outside Directors) | (4) | Exercise price per share | 1 director |
| Directors<br> (Excluding Outside Directors) |  | ¥1 | 1 director |
| Directors<br> (Excluding Outside Directors) | (5) | Conditions for exercise of the rights | 1 director |
| Directors<br> (Excluding Outside Directors) |  | A holder of a stock acquisition right may exercise his/her right only within 10 days from the day following the date on which the holder lost his/her status as Director of the Bank. | 1 director |
| Directors<br> (Excluding Outside Directors) | (1) | Name | 1 director |
| Directors<br> (Excluding Outside Directors) |  | 7th Stock Acquisition Rights | 1 director |
| Directors<br> (Excluding Outside Directors) | (2) | Class and number of underlying stocks | 1 director |
| Directors<br> (Excluding Outside Directors) |  | Common stock 26,900 shares | 1 director |
| Directors<br> (Excluding Outside Directors) | (3) | Exercise period | 1 director |
| Directors<br> (Excluding Outside Directors) |  | From July 23, 2014 to July 22, 2039 | 1 director |
| Directors<br> (Excluding Outside Directors) | (4) | Exercise price per share | 1 director |
| Directors<br> (Excluding Outside Directors) |  | ¥1 | 1 director |
| Directors<br> (Excluding Outside Directors) | (5) | Conditions for exercise of the rights | 1 director |
| Directors<br> (Excluding Outside Directors) |  | A holder of a stock acquisition right may exercise his/her right only within 10 days from the day following the date on which the holder lost his/her status as Director of the Bank. | 1 director |

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---

| | | | |
|:---|:---|:---|:---|
| | Description of stock acquisition rights, etc. | Description of stock acquisition rights, etc. | Number of persons granted |
| Directors<br> (Excluding Outside Directors) | (1) | Name | 2 directors |
| Directors<br> (Excluding Outside Directors) |  | 8th Stock Acquisition Rights | 2 directors |
| Directors<br> (Excluding Outside Directors) | (2) | Class and number of underlying stocks | 2 directors |
| Directors<br> (Excluding Outside Directors) |  | Common stock 23,500 shares | 2 directors |
| Directors<br> (Excluding Outside Directors) | (3) | Exercise period | 2 directors |
| Directors<br> (Excluding Outside Directors) |  | From July 28, 2015 to July 27, 2040 | 2 directors |
| Directors<br> (Excluding Outside Directors) | (4) | Exercise price per share | 2 directors |
| Directors<br> (Excluding Outside Directors) |  | ¥1 | 2 directors |
| Directors<br> (Excluding Outside Directors) | (5) | Conditions for exercise of the rights | 2 directors |
| Directors<br> (Excluding Outside Directors) |  | A holder of a stock acquisition right may exercise his/her right only within 10 days from the day following the date on which the holder lost his/her status as Director of the Bank. | 2 directors |
| Directors<br> (Excluding Outside Directors) | (1) | Name | 2 directors |
| Directors<br> (Excluding Outside Directors) |  | 9th Stock Acquisition Rights | 2 directors |
| Directors<br> (Excluding Outside Directors) | (2) | Class and number of underlying stocks | 2 directors |
| Directors<br> (Excluding Outside Directors) |  | Common stock 44,600 shares | 2 directors |
| Directors<br> (Excluding Outside Directors) | (3) | Exercise period | 2 directors |
| Directors<br> (Excluding Outside Directors) |  | From July 26, 2016 to July 25, 2041 | 2 directors |
| Directors<br> (Excluding Outside Directors) | (4) | Exercise price per share | 2 directors |
| Directors<br> (Excluding Outside Directors) |  | ¥1 | 2 directors |
| Directors<br> (Excluding Outside Directors) | (5) | Conditions for exercise of the rights | 2 directors |
| Directors<br> (Excluding Outside Directors) |  | A holder of a stock acquisition right may exercise his/her right only within 10 days from the day following the date on which the holder lost his/her status as Director of the Bank. | 2 directors |
| Directors<br> (Excluding Outside Directors) | (1) | Name | 2 directors |
| Directors<br> (Excluding Outside Directors) |  | 10th Stock Acquisition Rights | 2 directors |
| Directors<br> (Excluding Outside Directors) | (2) | Class and number of underlying stocks | 2 directors |
| Directors<br> (Excluding Outside Directors) |  | Common stock 42,000 shares | 2 directors |
| Directors<br> (Excluding Outside Directors) | (3) | Exercise period | 2 directors |
| Directors<br> (Excluding Outside Directors) |  | From July 25, 2017 to July 24, 2042 | 2 directors |
| Directors<br> (Excluding Outside Directors) | (4) | Exercise price per share | 2 directors |
| Directors<br> (Excluding Outside Directors) |  | ¥1 | 2 directors |
| Directors<br> (Excluding Outside Directors) | (5) | Conditions for exercise of the rights | 2 directors |
| Directors<br> (Excluding Outside Directors) |  | A holder of a stock acquisition right may exercise his/her right only within 10 days from the day following the date on which the holder lost his/her status as Director of the Bank. | 2 directors |
| Directors<br> (Excluding Outside Directors) | (1) | Name | 3 directors |
| Directors<br> (Excluding Outside Directors) |  | 11th Stock Acquisition Rights | 3 directors |
| Directors<br> (Excluding Outside Directors) | (2) | Class and number of underlying stocks | 3 directors |
| Directors<br> (Excluding Outside Directors) |  | Common stock 66,400 shares | 3 directors |
| Directors<br> (Excluding Outside Directors) | (3) | Exercise period | 3 directors |
| Directors<br> (Excluding Outside Directors) |  | From July 24, 2018 to July 23, 2043 | 3 directors |
| Directors<br> (Excluding Outside Directors) | (4) | Exercise price per share | 3 directors |
| Directors<br> (Excluding Outside Directors) |  | ¥1 | 3 directors |
| Directors<br> (Excluding Outside Directors) | (5) | Conditions for exercise of the rights | 3 directors |
| Directors<br> (Excluding Outside Directors) |  | A holder of a stock acquisition right may exercise his/her right only within 10 days from the day following the date on which the holder lost his/her status as Director of the Bank. | 3 directors |

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| | | | |
|:---|:---|:---|:---|
| | Description of stock acquisition rights, etc. | Description of stock acquisition rights, etc. | Number of persons granted |
| Directors<br> (Excluding Outside Directors) | (1) | Name | 5 directors |
| Directors<br> (Excluding Outside Directors) |  | 12th Stock Acquisition Rights | 5 directors |
| Directors<br> (Excluding Outside Directors) | (2) | Class and number of underlying stocks | 5 directors |
| Directors<br> (Excluding Outside Directors) |  | Common stock 97,300 shares | 5 directors |
| Directors<br> (Excluding Outside Directors) | (3) | Exercise period | 5 directors |
| Directors<br> (Excluding Outside Directors) |  | From July 23, 2019 to July 22, 2044 | 5 directors |
| Directors<br> (Excluding Outside Directors) | (4) | Exercise price per share | 5 directors |
| Directors<br> (Excluding Outside Directors) |  | ¥1 | 5 directors |
| Directors<br> (Excluding Outside Directors) | (5) | Conditions for exercise of the rights | 5 directors |
| Directors<br> (Excluding Outside Directors) |  | A holder of a stock acquisition right may exercise his/her right only within 10 days from the day following the date on which the holder lost his/her status as Director of the Bank. | 5 directors |
| Directors<br> (Excluding Outside Directors) | (1) | Name | 6 directors |
| Directors<br> (Excluding Outside Directors) |  | 13th Stock Acquisition Rights | 6 directors |
| Directors<br> (Excluding Outside Directors) | (2) | Class and number of underlying stocks | 6 directors |
| Directors<br> (Excluding Outside Directors) |  | Common stock 132,500 shares | 6 directors |
| Directors<br> (Excluding Outside Directors) | (3) | Exercise period | 6 directors |
| Directors<br> (Excluding Outside Directors) |  | From July 21, 2020 to July 20, 2045 | 6 directors |
| Directors<br> (Excluding Outside Directors) | (4) | Exercise price per share | 6 directors |
| Directors<br> (Excluding Outside Directors) |  | ¥1 | 6 directors |
| Directors<br> (Excluding Outside Directors) | (5) | Conditions for exercise of the rights | 6 directors |
| Directors<br> (Excluding Outside Directors) |  | A holder of a stock acquisition right may exercise his/her right only within 10 days from the day following the date on which the holder lost his/her status as Director of the Bank. | 6 directors |
| Directors<br> (Excluding Outside Directors) | (1) | Name | 7 directors |
| Directors<br> (Excluding Outside Directors) |  | 14th Stock Acquisition Rights | 7 directors |
| Directors<br> (Excluding Outside Directors) | (2) | Class and number of underlying stocks | 7 directors |
| Directors<br> (Excluding Outside Directors) |  | Common stock 130,700 shares | 7 directors |
| Directors<br> (Excluding Outside Directors) | (3) | Exercise period | 7 directors |
| Directors<br> (Excluding Outside Directors) |  | From July 20, 2021 to July 19, 2046 | 7 directors |
| Directors<br> (Excluding Outside Directors) | (4) | Exercise price per share | 7 directors |
| Directors<br> (Excluding Outside Directors) |  | ¥1 | 7 directors |
| Directors<br> (Excluding Outside Directors) | (5) | Conditions for exercise of the rights | 7 directors |
| Directors<br> (Excluding Outside Directors) |  | A holder of a stock acquisition right may exercise his/her right only within 10 days from the day following the date on which the holder lost his/her status as Director of the Bank. | 7 directors |
| &nbsp;&nbsp;&nbsp;&nbsp;Outside Directors | ― | ― |  |
| Audit & Supervisory Board Members | ― | ― |  |

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(2) Stock acquisition rights, etc. of the Bank granted to employees, etc. during the fiscal year

There are no matters to report.

2 Basic Policy Concerning Requirements for the Person Controlling Decisions of Financial and Business Policies

There are no matters to report.

3 Systems to Ensure the Properness of Business Activities

(1) Outline of Status of Establishment of Systems to Ensure the Properness of Business Activities

Matters concerning systems to ensure the properness of business activities determined by the Board of directors of the Bank as of March 31, 2022 are as follows:

&nbsp;&nbsp;&nbsp;&nbsp;A. Systems to ensure that the execution of duties of Directors and employees complies with laws and regulations and the Articles of Incorporation

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) The Bank shall define and publicly announce the Corporate Governance Principle as its basic policies for such matters as corporate governance, corporate ethics, and disclosure of information to enhance corporate value and carry out its corporate social responsibility, and comply with laws, regulations, its Articles of Incorporation, and the Corporate Governance Principle.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) The Board of Directors shall operate appropriately in accordance with the Regulations of the Board of Directors. The Board of Directors shall be held at least once a month in principle to maintain close communication and supervise the status of business operations with one another, and shall thus endeavor to establish systems to ensure appropriate business operations and prevent and control any conduct in breach of laws and regulations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) The Bank shall define the Basic Policy against Antisocial Forces, observe the code of conduct as a sensible corporate citizen, and eliminate any relationship whatsoever with antisocial forces.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) The Bank shall define the Compliance Basic Policy under the Compliance Management Rules and set out the Standards of Practice for Group-wide Compliance under the Compliance Manual, which shall be observed by everyone working for the Bank. In addition, the Board of Directors shall determine the Compliance Program (practical plan for group-wide compliance) for each fiscal year, which shall be implemented across the board.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(E) The Bank shall establish an internal reporting system and a whistle-blowing system designed to prevent any breach of laws, regulations, or internal rules and promptly respond to any event that has already occurred, and shall endeavor to operate such systems appropriately.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(F) The internal audit section shall conduct internal audits as an organization that directly reports to the Board of Directors, independent of execution departments. In addition, Audit & Supervisory Board Members shall audit the execution of duties of Directors in accordance with the Regulations of the Audit & Supervisory Board and the Audit Standards for Audit & Supervisory Board Members.

&nbsp;&nbsp;&nbsp;&nbsp;B. Systems related to the retention and management of information pertaining to the execution of duties of Directors

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) The Bank shall retain and manage documents, etc. pertaining to the execution of duties of Directors pursuant to laws and regulations and conduct appropriate retention and management thereof in accordance with the information management regulations and other relevant rules.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) The Bank shall take appropriate security measures for information assets mainly in accordance with the information management regulations and review the system as necessary, for example, by introducing new methods and media, etc. for information storage and establishing preventive measures for any information leakage.

&nbsp;&nbsp;&nbsp;&nbsp;C. Rules and other systems related to management of the risk of loss

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) With regard to regulations or other systems concerning the management of any risk of loss, the Bank shall manage all risks comprehensively by appointing departments in charge of each risk of loss under its Integrated Risk Management Regulations, as well as the departments that comprehensively monitor and manage all risks.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) The Bank shall maintain and enhance systems for appropriately handling any risk identified and emergency in accordance with its Integrated Risk Management Regulations, the Emergency Management Regulations, or the like.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) The Bank shall monitor and extract new risk of loss and endeavor to establish and operate the risk management system to minimize expansion of damage in the event of contingency.

&nbsp;&nbsp;&nbsp;&nbsp;D. Systems to ensure that the execution of duties of Directors is performed efficiently

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) The Board of Directors shall be held at least once a month in principle in accordance with the Regulations of the Board of Directors to ensure that the execution of duties of Directors is performed efficiently. The Board of Directors shall delegate the authorities to discuss and make decisions on matters concerning general business management and matters requiring general coordination in day-to-day business operations to the Management Committee, composed of Managing Executive Officers and/or officers with higher titles. With regard to the important matters concerning the Bank's management policies and management strategies which have been already deliberated on by the Management Committee, the Board of Directors shall make decisions on execution thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) With regard to business execution based on a decision made by the Board of Directors, the Bank shall specify division of duties, execution authority, etc. in the Regulations of Office Organization and the Regulations on Administrative Authority, etc., and review these regulations as necessary to maintain a system for the efficient business execution.

&nbsp;&nbsp;&nbsp;&nbsp;E. Systems to ensure the properness of business activities in a business group comprised of the Bank and consolidated subsidiaries

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) Regarding reporting to the Bank on matters related to the execution of duties of Directors and equivalents of consolidated subsidiaries and other group companies, the Bank shall specify matters subject to reporting and frequency of reporting in its Regulations for Management of Group Companies, etc.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) The Bank shall manage possible risk of losses of consolidated subsidiaries and other group companies comprehensively by specifying the Planning and Coordination Department and departments in charge of outsourcing as departments in charge of risk related to group companies in the Integrated Risk Management Regulations developed by the Bank.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) To ensure the efficient execution of duties of Directors and equivalents of consolidated subsidiaries and other group companies, the Bank shall define matters to be consulted with the Bank in the Regulations for Management of Group Companies, etc., and establish systems under which financial results, management plans and other important matters shall be regularly reported to the Management Committee and the Board of Directors and equivalents. Furthermore, liaison conferences of representatives, liaison conference for administrative affairs and the like shall be held regularly to seek cooperation with group companies.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) To ensure that the execution of duties of Directors and equivalents and employees of consolidated subsidiaries and other group companies is in compliance with laws, regulations and the Articles of Incorporation, the Bank shall define that the Regulations for Management of Group Companies, etc. shall require a group company to establish rules in accordance with the Bank's risk management-related regulations. In addition, the Bank shall conduct internal audit based on a separate agreement with a group company and verify the appropriateness of business operations of the group company by such means as internal controls over financial reporting and auditing by Audit & Supervisory Board Members.

&nbsp;&nbsp;&nbsp;&nbsp;F. Matters related to the independence of an employee appointed to assist the duties of Audit & Supervisory Board Members from Directors and matters related to ensuring the effectiveness of instructions given by Audit & Supervisory Board Members to the said employee

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) The secretariat of the Audit & Supervisory Board is in place as an organization independent of the business execution department.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) Employees assisting the duties of Audit & Supervisory Board Members shall be assigned to the secretariat of the Audit & Supervisory Board.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) Employees assisting the duties of Audit & Supervisory Board Members shall be exclusively assigned to assist their duties under the instructions from the Audit & Supervisory Board Members, independently of Directors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) Personnel changes, personnel appraisal, etc. of employees assisting the duties of Audit & Supervisory Board Members shall be subject to consent of Audit & Supervisory Board Members.

&nbsp;&nbsp;&nbsp;&nbsp;G. Systems for Directors and employees of the Bank, and Directors and Audit & Supervisory Board Members, etc., and employees of consolidated subsidiaries and other group companies or persons who receive reports from them to report to Audit & Supervisory Board Members of the Bank, and systems for ensuring that persons who make a report are not treated disadvantageously due to making said report

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) The Bank's internal audit section shall regularly report to the Bank's Audit & Supervisory Board Members on the status of internal audit. Further, the Bank's integrated risk management section shall regularly report to the Bank's Audit & Supervisory Board Members on the status of compliance, risk management and other relevant matters.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) When officers and employees of the Bank and group companies detect any shall report on any violation, etc. of laws, regulations or the like or any fact that may cause significant damage, they shall inform immediately the Bank's compliance management section thereof by the method specified by the Compliance Manual, etc. The Bank's compliance management section shall promptly inform the Bank's Audit & Supervisory Board Members of such fact.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) Sections in charge of receiving reports via the whistle-blowing system shall immediately inform the Bank's Audit & Supervisory Board Members of the status of whistle-blowing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) The Bank shall specify in the Compliance Manual that the person who made a report pursuant to the preceding items (B) or (C) shall not be treated disadvantageously due to making said a report, and appropriately manage such report in consideration for protection of privacy.

&nbsp;&nbsp;&nbsp;&nbsp;H. Matters related to policies concerning the procedure for advance payment or reimbursement of expenses that arise with regard to execution of duties of Audit & Supervisory Board Members or any other processing of expenses or obligations that arise with regard to execution of said duties

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) When an Audit & Supervisory Board Member claims from the Bank advance payment, etc. of expenses pertaining to his/her duties in accordance with the Companies Act, the relevant payment shall be promptly processed unless such expenses, etc. are deemed unnecessary for the execution of duties of such Audit & Supervisory Board Member.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) The Audit & Supervisory Board shall budget expenses deemed necessary for the execution of duties of Audit & Supervisory Board Members in advance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I. Other systems to ensure that audits by Audit & Supervisory Board Members are performed effectively

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) Directors and employees of the Bank and group companies shall make necessary report for the execution of duties of Audit & Supervisory Board Members of the Bank in accordance with the Audit Standards for Audit & Supervisory Board Members established by the Audit & Supervisory Board. In addition, they shall make appropriate reports promptly if so requested by Audit & Supervisory Board Members of the Bank in relation to business execution.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) Audit & Supervisory Board Members shall ensure the effectiveness of their audits by such means as attending the Board of Directors and other important meetings and cooperating with the internal audit section, Account Auditing Company, and Audit & Supervisory Board Members of group companies.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) Audit & supervisory board members shall regularly exchange opinions with Representative Directors.

(2) Outline of Status of Operation of Systems to Ensure the Properness of Business Activities

The status of operation of systems to ensure the properness of business activities for the period from April 1, 2021 to March 31, 2022 is as follows:

&nbsp;&nbsp;&nbsp;&nbsp;A. Systems to ensure that the execution of duties of Directors and employees complies with laws and regulations and the Articles of Incorporation

The Bank has put in place the system for ensuring that every person working for the Bank carries out their duties in compliance with laws and regulations by implementing the Compliance Program (implementation plan for group-wide compliance) that is determined by the Board of Directors for each fiscal year. Working together with the police, the Bank has eliminated any deal with antisocial forces.

&nbsp;&nbsp;&nbsp;&nbsp;B. Systems related to the retention and management of information pertaining to the execution of duties of Directors

Any information in relation to the execution of duties of Directors has been retained and managed appropriately.<br> In addition, initiatives for enhancing information security and preventing information leakage have remained in place.

&nbsp;&nbsp;&nbsp;&nbsp;C. Rules and other systems related to management of the risk of loss

The Bank has comprehensively managed any possible risk of losses, and taken measures to minimize the scale of damage from any risk identified.

&nbsp;&nbsp;&nbsp;&nbsp;D. Systems to ensure that the execution of duties of Directors is performed efficiently

Decisions concerning execution of business operations are being made promptly at the Management Committee as well as the Board of Directors. Each Director has efficiently perform his/her duties entrusted in accordance with the Regulations on Administrative Authority, etc.

&nbsp;&nbsp;&nbsp;&nbsp;E. Systems to ensure the properness of business activities in a business group comprised of the Bank and consolidated subsidiaries

Systems for management of various risks of group companies are being developed, and important matters in relation to group company management are being reported to the Board of Directors and the Management Committee. In addition, the Bank's Internal Audit Department and Audit & Supervisory Board Members have verified the appropriateness of business operations of consolidated subsidiaries.

&nbsp;&nbsp;&nbsp;&nbsp;F. Matters related to the independence of an employee appointed to assist the duties of Audit & Supervisory Board Members from Directors and matters related to ensuring the effectiveness of instructions given by Audit & Supervisory Board Members to the said employee

The Bank has ensured the effectiveness of audits of Audit & Supervisory Board Members by continuing assigning employees who assist their duties independently of Directors.

&nbsp;&nbsp;&nbsp;&nbsp;G. Systems for Directors and employees of the Bank, and Directors and Audit & Supervisory Board Members, etc., and employees of consolidated subsidiaries and other group companies or persons who receive reports from them to report to Audit & Supervisory Board Members of the Bank, and systems for ensuring that persons who make a report are not treated disadvantageously due to making said report

Systems whereby officers and employees of the Bank, consolidated subsidiaries and other group companies, etc. shall make report to Audit & Supervisory Board Members of the Bank have been in place and managed appropriately. The Regulations specify that a person who made a report shall not be treated disadvantageously due to making said report.

&nbsp;&nbsp;&nbsp;&nbsp;H. Matters related to policies concerning the procedure for advance payment or reimbursement of expenses that arise with regard to execution of duties of Audit & Supervisory Board Members or any other processing of expenses or obligations that arise with regard to execution of said duties

Expenses necessary for the execution of duties of Audit & Supervisory Board Members are budgeted. Claimed expenses for auditing have been promptly processed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I. Other systems to ensure that audits by Audit & Supervisory Board Members are performed effectively

The effectiveness of audits of Audit & Supervisory Board Members has been ensured particularly by establishing the system for making appropriate reports to Audit & Supervisory Board Members, including matters subject to reporting and investigation stipulated in the Companies Act as rights of Audit & Supervisory Board Members.

4 Matters Related to Specified Wholly-owned Subsidiary Company

There are no matters to report.

5 Matters Related to Transactions with Parent Company, etc.

There are no matters to report.

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| | |
|:---|:---|
| 6 | &nbsp;&nbsp;Others |

---

There are no matters to report.

Non-consolidated Statement of Changes in Equity for the Fiscal Year Ended March 31, 2022<br> (from April 1, 2021 to March 31, 2022)

(Millions of yen)

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | Shareholders' equity | Shareholders' equity | Shareholders' equity | Shareholders' equity | Shareholders' equity |
| | Share capital | Capital surplus | Capital surplus | Capital surplus | &nbsp;&nbsp;&nbsp;&nbsp;Retained earnings |
| | Share capital | &nbsp;&nbsp;&nbsp;&nbsp;Legal capital surplus | &nbsp;&nbsp;&nbsp;&nbsp;Other capital surplus | &nbsp;&nbsp;&nbsp;&nbsp;Total capital surplus | &nbsp;&nbsp;&nbsp;&nbsp;Legal retained earnings |
| &nbsp;&nbsp;Balance at the beginning of current period | 52243 | 29609 | 2954 | 32563 | 47610 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cumulative effects in accounting policies |  |  |  |  |  |
| &nbsp;&nbsp;Balance as of the beginning of the period reflecting changes in accounting policies | 52243 | 29609 | 2954 | 32563 | 47610 |
| &nbsp;&nbsp;Changes of items during the period |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dividends of surplus |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Provision of reserve for tax purpose reduction entry of non-current assets |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Reversal of reserve for tax purpose reduction entry of non-current assets |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Provision of general reserve |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Profit |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Acquisition of treasury share |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cancellation of treasury share |  |  | (5) | (5) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net changes of items other than shareholders' equity |  |  |  |  |  |
| &nbsp;&nbsp;Total changes of items during the period |  |  | (5) | (5) |  |
| &nbsp;&nbsp;Balance at the end of current period | 52243 | 29609 | 2948 | 32557 | 47610 |

---

(Millions of yen)

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | Shareholders' equity | Shareholders' equity | Shareholders' equity | Shareholders' equity | Shareholders' equity | Shareholders' equity |
| | Retained earnings | Retained earnings | Retained earnings | Retained earnings | Treasury shares | Total shareholders' equity |
| | Other retained earnings | Other retained earnings | Other retained earnings | &nbsp;&nbsp;Total retained earnings | Treasury shares | Total shareholders' equity |
| | Reserve for tax purpose reduction entry of non-current assets | General reserve | Retained earnings brought forward | &nbsp;&nbsp;Total retained earnings | Treasury shares | Total shareholders' equity |
| &nbsp;&nbsp;Balance at the beginning of current period | 869 | 388600 | 25158 | 462238 | (11629) | 535415 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cumulative effects in accounting policies |  |  | (211) | (211) |  | (211) |
| &nbsp;&nbsp;Balance as of the beginning of the period reflecting changes in accounting policies | 869 | 388600 | 24947 | 462027 | (11629) | 535204 |
| &nbsp;&nbsp;Changes of items during the period |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dividends of surplus |  |  | (6854) | (6854) |  | (6854) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Provision of reserve for tax purpose reduction entry of non-current assets | 251 |  | (251) |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Reversal of reserve for tax purpose reduction entry of non-current assets | (25) |  | 25 |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Provision of general reserve |  | 11000 | (11000) |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Profit |  |  | 22396 | 22396 |  | 22396 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Acquisition of treasury share |  |  |  |  | (0) | (0) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cancellation of treasury share |  |  |  |  | 53 | 48 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net changes of items other than shareholders' equity |  |  |  |  |  |  |
| &nbsp;&nbsp;Total changes of items during the period | 225 | 11000 | 4316 | 15541 | 53 | 15590 |
| &nbsp;&nbsp;Balance at the end of current period | 1095 | 399600 | 29263 | 477569 | (11576) | 550794 |

---

(Millions of yen)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | Valuation and translation adjustments | Valuation and translation adjustments | Valuation and translation adjustments | Share Acquisition Rights | Total net assets |
| | &nbsp;&nbsp;Valuation difference on available-for-sale securities | Deferred gain or loss on hedges | Total valuation and translation adjustments | Share Acquisition Rights | Total net assets |
| &nbsp;&nbsp;Balance at the beginning of current period | 292709 | 4426 | 297136 | 272 | 832824 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cumulative effects in accounting policies |  |  |  |  | (211) |
| &nbsp;&nbsp;Balance as of the beginning of the period reflecting changes in accounting policies | 292709 | 4426 | 297136 | 272 | 832613 |
| &nbsp;&nbsp;Changes of items during the period |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dividends of surplus |  |  |  |  | (6854) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Provision of reserve for tax purpose reduction entry of non-current assets |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Reversal of reserve for tax purpose reduction entry of non-current assets |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Provision of general reserve |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Profit |  |  |  |  | 22396 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Acquisition of treasury share |  |  |  |  | (0) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cancellation of treasury share |  |  |  |  | 48 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net changes of items other than shareholders' equity | (25435) | 11243 | (14191) | (0) | (14191) |
| &nbsp;&nbsp;Total changes of items during the period | (25435) | 11243 | (14191) | (0) | 1398 |
| &nbsp;&nbsp;Balance at the end of current period | 267274 | 15670 | 282945 | 271 | 834011 |

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Notes to Non-consolidated Financial Statements

Yen figures have been rounded down to the nearest million yen.

I Significant Accounting Policies

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Standards for Valuation of Trading Assets and Liabilities and Presentation of Income and Expenses

Transactions for purposes of seeking to capture gains arising from short-term changes in interest rates, currency exchange rates, or market prices of securities and other market-related indices or from gaps among markets (hereinafter referred to as "Trading Purposes") are included in "Trading Assets" and "Trading Liabilities" in the balance sheet on a trade-date basis and income and expenses arising from such transactions are included in "Trading Income" and "Trading Expenses" in the statement of income.

As for valuation of Trading Assets and Liabilities, trading securities and monetary claims bought for Trading Purposes are stated at fair value at the balance sheet date. Trading-related financial derivatives, such as swaps, futures, and options are stated at amounts that would be received or paid for settlement if such transactions were terminated at the balance sheet date.

Trading Income and Trading Expenses include the interest received and interest paid during the fiscal year, the gains or losses resulting from any change in the value of securities and other monetary claims between the beginning and the end of the fiscal year and the gains or losses resulting from any change in the value of financial derivatives between the beginning and the end of the fiscal year, assuming they were settled at the end of the fiscal year.

For financial derivatives, the fair value of each group of financial assets and financial liabilities is calculated based on the net assets or liabilities of financial assets and financial liabilities offset with respect to specific market risks or specific credit risks.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Valuation Standards and Methods of Securities

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) For valuation of securities, held-to-maturity debt securities are stated at amortized cost computed using straight-line method, stocks in subsidiaries and associated companies, etc. are carried at cost determined by the moving-average method, and other securities are calculated using the market value method (cost of sales is calculated mainly by the moving average method). Non-marketable available-for-sale securities are stated at cost using the moving-average method.

Unrealized gains and losses, net of applicable taxes, are reported in a separate component of equity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Securities included in the money held in trust constituting trust property are stated in the same method as (1) above.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Valuation Standards and Methods of Derivatives

Derivatives, excluding transactions for Trading Purposes, are stated at fair value.

The fair value of each group of financial assets and financial liabilities is calculated based on the net assets or liabilities of financial assets and financial liabilities offset with respect to specific market risks or specific credit risks.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. Depreciation and Amortization of Fixed Assets

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Tangible fixed assets (excluding leased assets)

Depreciation for tangible fixed assets is computed under the declining-balance method. The estimated useful lives are principally as follows:

Buildings 3 to 50 years <br> Others 3 to 20 years

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Intangible fixed assets (excluding leased assets)

Intangible fixed assets are depreciated using the straight-line method. Capitalized software for internal use is depreciated over its estimated useful life (five years) as determined by the Bank.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Leased assets

Property, plant, and equipment in relation to leased assets under finance lease transactions that do not transfer ownership and leased assets under intangible fixed assets are depreciated by applying the straight-line method using the lease term as the useful life. Residual values are computed at the amount of residual values guaranteed under lease contracts, and otherwise at zero.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. Translation of Foreign Currency-denominated Assets and Liabilities into Japanese Yen

Assets and liabilities denominated in foreign currencies held domestically and the accounts of the Bank's overseas branch are translated into Japanese yen generally at the exchange rates prevailing on the balance sheet date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. Recognition Standards for Allowances and Provisions

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Allowance for loan losses

The allowance for loan losses is recorded as follows in accordance with predetermined amortization and allowance standards.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Bankrupt: Borrowers in which facts of legal or formal management failure have occurred, such as bankruptcy, corporate rehabilitation, and transaction suspension at a clearing house

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Defacto Bankrupt: Borrowers who are unable to meet their obligations

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• In Danger of Bankruptcy: Borrowers who are not currently in a state of bankruptcy but are likely to fall into bankruptcy in the future

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Need Special Attention: Borrowers who need to manage all or part of the loans requiring attention (loan conditions relaxed loans and loans overdue for three months or more)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Need Attention: Borrowers who have problems with lending conditions or repayment performance, business conditions are sluggish or unstable, and need to be managed in the future

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Normal: Borrowers with good performance and no financial problems

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Loans to "Bankrupt" and "Defacto Bankrupt," the expected amount of collateral disposal and the expected amount of recovery by guarantee are deducted from the amount of the loan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Loans to "In Danger of Bankruptcy," the expected amount of collateral disposal and the expected amount of recovery by guarantee are deducted from the amount of the loan. Of the remaining balance (hereinafter referred to as "non-conservation amount"), the amount deemed necessary is recorded. For example:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) For loans to large borrowers provided with a certain credit limit or above, the Bank comprehensively judges a borrower's situation and estimates a recoverable amount by cash flow and the balance of non-conservation amounts less such cash flow is recognized as the allowance for loan losses ("the collectible amount from cash flow method").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) For loans to borrowers other than the item (a) above, the amount estimated by multiplying non-conservation amounts by the expected loss rate calculated from the probability of default in the past certain period is recognized as the allowance for loan losses.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) For loans to large borrowers provided with a certain credit limit or above among borrowers categorized as "Need Special Attention" and "Need Attention," the difference between the cash flow "the discounted cash flow method" discounted at the original contracted interest rate and the carrying amount of the receivable would be recorded as the allowance for loan losses.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) For loans to "Need Special Attention" and "Need Attention" other than (iii), and "Normal," the allowance for loan losses is recorded based on the expected loss rate calculated from the probability of default in the past certain period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Note) 1. Grouping in calculating the probability of default

The probability of default is allocated to six categories, including one "Normal" division, three "Need Attention" divisions (including top level and lower level of "Need Attention" divisions and "Need Special Attention" division), and two "In Danger of Bankruptcy" divisions.<br> \* "Need Attention" divisions are classified according to the comprehensive judgment of the creditworthiness of the borrowers and the existence of loans with relaxed loan terms.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. A certain period in which the expected loss rate will be estimated in the future

Allowance for loan losses is determined based on the expected loss rate for "Normal" borrowers over the next one year, for borrowers of "Need Attention" and "Need Special Attention" over the period corresponding to the average remaining life of the loans, and for "In Danger of Bankruptcy" borrowers over the next three years. (The average remaining period is 39 months for top level of "Need Attention," 43 months for lower level of "Need Attention," and 46 months for "Need Special Attention.")

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Adjustment and determination of the probability of default based on future prospects, etc.

The probability of default used to calculate the allowance is determined by comparing the average value of the last three determination periods with the long-term average value, considering the entity's business cycle. The average value for the last three determination periods is calculated by including necessary revisions such as the current circumstances and future projections.

Based on the self-assessment standard of assets, all receivables are assessed by the asset assessment section, which is independent from the sales section, and the internal audit section provides an assessment of these results.<br>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Provision for retirement benefits

To provide for employee retirement benefits, the Bank accounts for the liability for retirement benefits based on the projected benefit obligations and plan assets at the balance sheet date. The projected benefit obligations are attributed to periods up to the end of the fiscal year ended March 31, 2022 on a benefit formula basis. Actuarial gains and losses are recognized in profit or loss as follows:

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| | |
|:---|:---|
| Actuarial gains and losses | The amount prorated by the straight-line method over a certain number of years (10 years) within the average remaining service period of employees for each fiscal year is recognized in profit and loss for the following fiscal year and beyond. |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Provision for reimbursement of deposits

A provision for reimbursement of deposits, which were derecognized as liabilities under certain conditions, is provided for possible losses on future claims of withdrawal based on historical reimbursement experience.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) Provision for contingent loss

A provision for contingent loss is provided for the contribution to the National Federation of Credit Guarantee Corporations' liability sharing program and is recorded in the amount of estimated future contributions based on subrogate performance, etc. The rate of subrogate performance is calculated for the same period as the determination period of the expected loss rate for the allowance for loan losses.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. Recognition Standards for Income and Expenses

The Group applies the "Accounting Standards for Revenue Recognition" (ASBJ Guidance No.29, March 31, 2020) and recognizes revenue at the time in exchange for transferring promised goods or services to a customer, and the amount expected to be received in exchange for goods or services.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. Hedge Accounting

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Hedge accounting for interest rate risk

The Bank applies portfolio hedging accounting to hedges of interest rate risk associated with financial assets and liabilities in accordance with "Accounting and Auditing Treatments on the Application of Accounting Standards for Financial Instruments in the Banking Industry" (Industry Committee Practical Guidelines No.24 issued by the Japanese Institute of Certified Public Accountants ("JICPA") on March 17, 2022; hereinafter referred to as the "Industry Committee Practical Guidelines No.24") A portfolio of hedged items, such as deposits or loans with common maturities, is matched with a group of hedging instruments, such as interest rate swaps, which offset the effect of fair value fluctuations of the hedged items by identified maturities. The effectiveness of the portfolio hedge is assessed by each group. The effectiveness of cash flow hedging to protect the Group's cash flow against fluctuations is assessed by verifying a correlation between factors affecting interest rate fluctuations for hedged items and hedging instruments.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Hedge accounting for foreign currency risk

Currency swap and foreign exchange swap transactions associated with financial assets and liabilities denominated in foreign currencies are accounted for using deferral hedge accounting by fully applying "Accounting and Auditing Treatments for Foreign Currency Transactions in the Banking Industry" (Industry Committee Practical Guidelines No.25 issued by JICPA on October 8, 2020; hereinafter referred to as the "Industry Committee Practical Guidelines No.25").

Under deferral hedge accounting, hedged items are identified by grouping the foreign currency-denominated financial assets and liabilities by currencies and designating derivative transactions, such as currency swap transactions and forward exchange contracts as hedging instruments. Hedge effectiveness is reviewed by comparing the total foreign currency position of the hedged items and hedging instruments by currency.

For hedging the foreign currency exposure of foreign currency-denominated securities (other than debt securities), which were designated in advance, deferral hedge accounting and fair value hedge accounting are adopted on a portfolio basis when the cost of the hedged securities is covered with offsetting liabilities denominated in the same foreign currency as the hedged securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Intercompany and intracompany transactions, etc.

With respect to derivative transactions between Trading accounts and other accounts, the Bank manages interest rate swap and currency swap transactions designated as hedging instruments in accordance with the strict hedging criteria for external mirror transactions stipulated in the Industry Committee Practical Guidelines No.24 and the Industry Committee Practical Guidelines No.25. Therefore, the Bank accounts for the gains and losses on these swap transactions in its earnings or defers until maturity as deferred gain (loss) under hedge accounting in a separate component of equity.

Deferred hedging and interest rate swaps are exceptionally applied to some of the assets and liabilities.

II Change in Accounting Policies

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Application of Accounting Standards for Revenue Recognition, etc.

Effective April 1, 2021, the Bank adopted ASBJ Statement No.29, "Accounting Standard for Revenue Recognition" issued on March 31, 2020 (hereinafter referred to as the "Accounting Standards for Revenue Recognition"), etc.

As a result, the Bank decided to recognize revenue when the service was provided, not when the consideration was received as before.

According to the transitional measures prescribed in the proviso of paragraph 84 of the Accounting Standards for Revenue Recognition, the Bank has recognized the cumulative effect of applying accounting standards for revenue recognition as an adjustment to the opening balance of retained earnings at the beginning of the fiscal year ended March 31, 2022, as its first reporting period under the new accounting policy.

The impact on profit before income taxes for the current fiscal year is immaterial.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Appling Accounting Standard for Fair Value Measurement

Effective April 1, 2021, the Bank adopted ASBJ Statement No.30, "Accounting Standard for Fair Value Measurement" issued on July 4, 2019 (hereinafter referred to as the "Accounting Standard for Fair Value Measurement"), etc.

In accordance with the transitional treatment stipulated in paragraph 20 of the Accounting Standard for Fair Value Measurement, which requires reflecting credit risk of a counterparty and its own in fair value of derivative transactions, the cumulative impact of retroactive application of the new accounting policy is added to or subtracted from retained earnings at the beginning of the current fiscal year. As a result, Trading Assets at the beginning of the current fiscal year decreased by ¥21 million, other assets decreased by ¥139 million, Trading Liabilities increased by ¥12 million, other liabilities increased by ¥129 million, deferred tax debt decreased by ¥91 million, and retained earnings decreased by ¥211 million. The impact on profit before income taxes for the current fiscal year is immaterial.

III Changes in Presentation

The Bank revised the recognition method for dividends received from its contracts of group credit life insurance, etc., previously recorded as other income due to changes in contracts related to premiums paid and dividends received for some group credit life insurances and expected increase in such insurance contracts. As a result of examination, the Bank concluded that it was more appropriate to recognize the balance of premiums paid less dividends received as expenses from perspectives of presenting insurance premiums payable, and recognized such amount as fees and commissions from the fiscal year ended March 31, 2022.

IV Significant Accounting Estimates

Allowance for loan losses

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Amounts recorded in the financial statements for the year ended March 31, 2022

Allowance for loan losses was ¥35,232 million

Of the above, allowance for loan losses by "the collectible amount from cash flow method" was ¥12,698 million, whereas allowance for loan losses by "the discounted cash flow method" was ¥3,078 million.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Information that contributes to understanding the content of significant accounting estimates for the identified item

For particulars to be noted for this matter, please see the Notes to Consolidated Financial Statements.

V Notes

(Balance Sheet)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The securities placed under unsecured lending agreements are included in government bonds in the amount of ¥193,771 million.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Loans under the Banking Act and the Act on Emergency Measures for the Revitalization of the Financial Functions are as follows. Loans include, in the consolidated balance sheet, corporate bonds in "Securities" (limited to those for which payment of principal and interest is guaranteed in whole or in part, and the issuance of such bonds is through private placement of securities (stipulated in Article 2, Paragraph 3 of the Financial Instruments and Exchange Act)), loans and bills discounted, foreign exchanges, accrued interest and suspense payables in "Other assets," customers' liabilities for acceptances and guarantees and securities in the case of loaned securities in the notes to the non-consolidated balance sheet (limited to only those subject to a usage and lending or lending agreement).

---

| | |
|:---|:---|
| Bankrupt and quasi-bankrupt loans | ¥6,174 million |
| Doubtful loans | ¥77,767 million |
| Three months or more past due loans | ¥1,725 million |
| Restructured loans | ¥20,466 million |
| Total | ¥106,134 million |

---

"Bankrupt and quasi-bankrupt loans" refers to the loans to customers in bankrupt such as insolvency, company rehabilitation, civil rehabilitation, etc., and to customers in quasi-bankrupt conditions.

"Doubtful loans" refers to the loans, excluding "Bankrupt and quasi-bankrupt loans," for which substantial doubt is judged to exist as to ultimate collectability of either principal or interest because of the deterioration in business results and financial conditions of customers who are not in bankrupt.

"Three months or more past due loans" refers to the loans, either principal or interest payment of which is contractually past due three months or more from the next day of the due date, excluding "Bankrupt and quasi-bankrupt loans" and "Doubtful loans."

"Restructured loans" refers to the loans to customers, excluding "bankrupt and quasi-bankrupt loans," "Doubtful loans" and "Three months or more past due loans," on which the Bank granted concessions such as reduction of the stated interest rate, extension of maturity date, debt forgiveness, and other arrangements favoring customers to support for their management reconstruction.

Allowance for loan losses is not deducted from the amounts stated above.

(Changes in Presentation)

Following the "Cabinet Office Order to Amend the Ordinance for Enforcement of the Banking Act, etc." (Cabinet Office Ordinance No.3, January 24, 2020) effective on March 31, 2022, the classification, etc. of risk-monitored loans under the Banking Act is presented in accordance with the classification, etc. under the Act on Emergency Measures for the Revitalization of the Financial Functions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. In accordance with the Industry Committee Practical Guidelines No.24, bills discounted are accounted for as financial transactions. As a result, the Bank has the right to sell or pledge commercial bills and foreign exchanges bills bought without restrictions. Face value of these bills amounted to ¥16,831 million.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. Assets pledged as collateral as of March 31, 2022 consisted of the following:

Assets pledged:

---

| | |
|:---|:---|
| Trading assets | ¥5,999 million |
| Securities | ¥1,298,835 million |
| Loans and bills discounted | ¥1,652,965 million |
| Cash (other assets) | ¥408 million |

---

Related liabilities:

Deposits ¥66,030 million <br> Cash collateral received for securities lent ¥322,484 million <br> Borrowed money ¥2,073,288 million

In addition, securities of ¥1,194 million, cash (other assets) of ¥25 million, and deposits to central counterparty (other assets) of ¥56,733 million are pledged as collateral for transactions, such as exchange settlement transactions, or as substitute securities for initial margin on futures transactions.

"Other assets" includes guarantee deposits of ¥578 million.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. Overdraft contracts and contracts for loan commitments are those by which the Bank is bound to extend loans up to a prearranged amount, upon the request of customers, unless the customer is in breach of contract conditions.

Unfunded amounts relating to these contracts totaled ¥1,605,542 million. Of these contracts, loan commitments with a maturity of one year or less amounted to ¥1,470,567 million.

As a large majority of these commitments expire without being drawn down upon, the unfunded amounts do not necessarily represent the Bank's future cash requirements. Many of these agreements include conditions granting the Bank the right to reject the drawdown or to reduce the amount on the basis of changes in the financial circumstances of the borrower or other reasonable grounds. In addition, the Bank obtains collateral when necessary to reduce credit risk at the execution of the contracts, and after the contracts are signed, take necessary measures, such as regularly monitoring customers' financial positions in accordance with the Bank's internal procedures, revising contracts when such needs arise and securing claims.

6. Accumulated depreciation of tangible fixed assets ¥63,764 million <br> 7. Deferred gains on tangible fixed assets deductible for tax purposes ¥7,788 million

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. The Bank's guarantee obligations for bonds in private placement (defined in Paragraph 3, Article 2 of the Financial Instruments and Exchange Act) included in securities were ¥53,313 million.

9. Monetary claims against Directors and Audit & Supervisory Board Members due to transactions with them ¥7 million <br> 10. Monetary claims against subsidiaries and affiliated companies ¥43,928 million <br> 11. Monetary liabilities against subsidiaries and affiliated companies ¥42,374 million

(Statement of Income)

---

| | |
|:---|:---|
| 1. Income from transactions with subsidiaries and affiliated companies |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest income earned - total | ¥190 million |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Fees and commissions earned - total | ¥531 million |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other operating income and other ordinary income earned - total | ¥53 million |
| &nbsp;&nbsp;&nbsp;&nbsp;Expenses from transactions with subsidiaries and affiliated companies |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest expenses incurred - total | ¥2 million |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Fees and commissions incurred - total | ¥2,293 million |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;General and administrative expenses - total | ¥2,069 million |
| 2. Notes to transactions with related parties |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subsidiaries and affiliates, etc. |  |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| Category | Company name | &nbsp;&nbsp;Equity ratio | &nbsp;&nbsp;Relationship with related parties | &nbsp;&nbsp;Details of transaction | Transaction amount | Account name | Balance at the end of current period |
| Subsidiary | Hachijuni Credit Guarantee Co., Ltd. | Directly owned<br> 100.0% | &nbsp;&nbsp;Guaranteeing the Bank's loans, and appointment of Director | &nbsp;&nbsp;Guaranteeing of the Bank's loans | ¥1,239,834 million |  |  |
| Subsidiary | Hachijuni Credit Guarantee Co., Ltd. | Directly owned<br> 100.0% | &nbsp;&nbsp;Guaranteeing the Bank's loans, and appointment of Director | &nbsp;&nbsp;Subrogation payment associated with the above | ¥806 million |  |  |

---

Loans extended by the Bank are guaranteed by Hachijuni Credit Guarantee Co., Ltd. Guarantee commissions are directly paid by a borrower of each loan, and paid by the Bank for some loans, which amounted to ¥2,214 million. Conditions for transactions are fixed through consultation in each case.

(Non-consolidated Statement of Changes in Equity)

Classes and number of treasury share

(Thousands of shares)

  <u>Number of shares at the beginning of the period</u> <u>Number of shares increased during the period</u> <u>Number of shares decreased during the period</u> <u>Number of shares at the end of the period</u> <u>Remarks</u> <br> <u>Treasury shares</u>           <br> <u>Common stock</u> <u>21,544</u> <u>0</u> <u>100</u> <u>21,445</u> <u>(Note)</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Note) Treasury share increased by 0 thousand shares due to the purchase request for shares constituting less than one unit. Treasury share decreased by 99,000 shares due to the excise of stock acquisition rights and by 0 thousand shares due to the purchase increase request for shares constituting less than one unit.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Securities)

In addition to "Government bonds," "Local government bonds," "Corporate bonds," "Stocks," and "Other securities" in the balance sheet, also presented are beneficial interests in trust investments within the item "Monetary claims bought," "Trading securities," and "Other trading account assets."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Securities for trading purposes (as of March 31, 2022)

  <u>Valuation difference included in income for the year ended March 31, 2022 (millions of yen)</u> <br> <u>Securities for trading purposes</u> <u>(2)</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Stocks in subsidiaries and affiliated companies (as of March 31, 2022)

None

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Note) Amount on balance sheet of non-marketable equity securities that are not included above

---

| | |
|:---|:---|
|  | Amount on Balance sheet<br> (Millions of yen) |
| &nbsp;&nbsp;Stocks in subsidiaries | 14808 |
| &nbsp;&nbsp;Investment in partnerships | 1142 |
| Total | 15950 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Available-for-sale securities (as of March 31, 2022)

---

| | | | | |
|:---|:---|:---|:---|:---|
| | Category | Amount on Balance sheet<br> (Millions of yen) | Acquisition cost<br> (Millions of yen) | Difference<br> (Millions of yen) |
| &nbsp;&nbsp;Securities for which the amount on balance sheet exceeds the acquisition cost | &nbsp;&nbsp;Stocks | 483473 | 91306 | 392167 |
| &nbsp;&nbsp;Securities for which the amount on balance sheet exceeds the acquisition cost | &nbsp;&nbsp;Bonds | 550465 | 534855 | 15609 |
| &nbsp;&nbsp;Securities for which the amount on balance sheet exceeds the acquisition cost | &nbsp;&nbsp;&nbsp;&nbsp;Government bonds | 241606 | 227839 | 13767 |
| &nbsp;&nbsp;Securities for which the amount on balance sheet exceeds the acquisition cost | &nbsp;&nbsp;&nbsp;&nbsp;Local government bonds | 169747 | 168938 | 808 |
| &nbsp;&nbsp;Securities for which the amount on balance sheet exceeds the acquisition cost | &nbsp;&nbsp;&nbsp;&nbsp;Corporate bonds | 139110 | 138078 | 1032 |
| &nbsp;&nbsp;Securities for which the amount on balance sheet exceeds the acquisition cost | &nbsp;&nbsp;Others | 279538 | 259557 | 19980 |
| &nbsp;&nbsp;Securities for which the amount on balance sheet exceeds the acquisition cost | &nbsp;&nbsp;&nbsp;&nbsp;Foreign securities | 159251 | 154259 | 4991 |
| &nbsp;&nbsp;Securities for which the amount on balance sheet exceeds the acquisition cost | Subtotal | 1313477 | 885719 | 427757 |
| &nbsp;&nbsp;Securities for which the amount on balance sheet does not exceed the acquisition cost | &nbsp;&nbsp;Stocks | 4486 | 5096 | (609) |
| &nbsp;&nbsp;Securities for which the amount on balance sheet does not exceed the acquisition cost | &nbsp;&nbsp;Bonds | 1102992 | 1124192 | (21199) |
| &nbsp;&nbsp;Securities for which the amount on balance sheet does not exceed the acquisition cost | &nbsp;&nbsp;&nbsp;&nbsp;Government bonds | 578946 | 597720 | (18773) |
| &nbsp;&nbsp;Securities for which the amount on balance sheet does not exceed the acquisition cost | &nbsp;&nbsp;&nbsp;&nbsp;Local government bonds | 138466 | 138658 | (191) |
| &nbsp;&nbsp;Securities for which the amount on balance sheet does not exceed the acquisition cost | &nbsp;&nbsp;&nbsp;&nbsp;Corporate bonds | 385579 | 387813 | (2234) |
| &nbsp;&nbsp;Securities for which the amount on balance sheet does not exceed the acquisition cost | &nbsp;&nbsp;Others | 403601 | 426869 | (23267) |
| &nbsp;&nbsp;Securities for which the amount on balance sheet does not exceed the acquisition cost | &nbsp;&nbsp;&nbsp;&nbsp;Foreign securities | 271648 | 286501 | (14852) |
| &nbsp;&nbsp;Securities for which the amount on balance sheet does not exceed the acquisition cost | Subtotal | 1511081 | 1556157 | (45076) |
| Total | Total | 2824558 | 2441877 | 382681 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Note) Amount on balance sheet of non-marketable equity securities, etc. and investment in partnerships that are not included in the above table

---

| | |
|:---|:---|
| | Amount on Balance sheet<br> (Millions of yen) |
| &nbsp;&nbsp;Unlisted stocks | 5139 |
| &nbsp;&nbsp;Investment in partnerships | 27366 |
| Total | 32506 |

---

Fair value of investment in partnerships is not disclosed in accordance with Paragraph 27 of the "Implementation Guidance on Accounting Standard for Fair Value Measurement" (ASBJ Guidance No.31, issued on July 4, 2019).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. Available-for-sale securities sold during the fiscal year ended March 31, 2022 (from April 1, 2021 to March 31, 2022)

---

| | | | |
|:---|:---|:---|:---|
| | Proceeds<br> (Millions of yen) | Gain on sale<br> (Millions of yen) | Loss on sale<br> (Millions of yen) |
| &nbsp;&nbsp;Stocks | 20464 | 2714 | 1081 |
| &nbsp;&nbsp;Bonds | 534450 | 1089 | 3679 |
| &nbsp;&nbsp;&nbsp;Government bonds | 503746 | 964 | 3679 |
| &nbsp;&nbsp;&nbsp;Local government bonds | 29134 | 118 |  |
| &nbsp;&nbsp;&nbsp;Corporate bonds | 1569 | 6 |  |
| &nbsp;&nbsp;Others | 123964 | 4090 | 3847 |
| &nbsp;&nbsp;&nbsp;&nbsp;Foreign securities | 98482 | 2769 | 3697 |
| Total | 678879 | 7894 | 8608 |

---

(Money Held in Trust)

Money held in trust for trading purposes (as of March 31, 2022)

---

| | | |
|:---|:---|:---|
|  | Amount on Balance sheet<br> (Millions of yen) | &nbsp;&nbsp;Valuation difference included in income for the year ended March 31, 2022 (millions of yen) |
| &nbsp;&nbsp;Money held in trust for trading purposes | 79448 | (339) |

---

(Deferred Taxes)

The tax effects of significant temporary differences that resulted in deferred tax assets and liabilities are as follows:

---

| | | |
|:---|:---|:---|
| Deferred tax assets |  |  |
| &nbsp;&nbsp;&nbsp;Valuation difference on available-for-sale securities | 13680 | million yen |
| &nbsp;&nbsp;&nbsp;Allowance for loan losses | 9770 |  |
| &nbsp;&nbsp;&nbsp;Depreciation | 2827 |  |
| &nbsp;&nbsp;&nbsp;Deferred gain or loss on hedges | 2099 |  |
| &nbsp;&nbsp;&nbsp;Impairment losses | 1527 |  |
| &nbsp;&nbsp;&nbsp;Provision for retirement benefits | 1087 |  |
| &nbsp;&nbsp;&nbsp;Write-offs of securities | 964 |  |
| &nbsp;&nbsp;&nbsp;Accrued enterprise tax | 214 |  |
| &nbsp;&nbsp;&nbsp;Others | 2201 |  |
| Subtotal deferred tax assets | 34374 |  |
| Less - valuation allowance | (2622) |  |
| Total deferred tax assets | 31751 |  |
| Deferred tax liabilities |  |  |
| &nbsp;&nbsp;&nbsp;Valuation difference on available-for-sale securities | 129310 |  |
| &nbsp;&nbsp;&nbsp;Deferred gain or loss on hedges | 8928 |  |
| &nbsp;&nbsp;&nbsp;Gain on contribution of securities to employee retirement benefit trust | 1665 |  |
| &nbsp;&nbsp;&nbsp;Others | 1176 |  |
| Total deferred tax liabilities | 141081 |  |
| Deferred tax liabilities, net | 109329 |  |

---

(Per Share Data)

Net assets per share ¥1,702.69 <br> Profit per share ¥45.74

(Stock Options, etc.)

For particulars to be noted for this matter, please see the Notes to Consolidated Financial Statements.

Consolidated Statement of Changes in Equity for the Fiscal Year Ended March 31, 2022<br> (from April 1, 2021 to March 31, 2022)

(Millions of yen)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | Shareholders' equity | Shareholders' equity | Shareholders' equity | Shareholders' equity | Shareholders' equity |
| | &nbsp;&nbsp;&nbsp;&nbsp;Share capital | &nbsp;&nbsp;&nbsp;&nbsp;Capital surplus | &nbsp;&nbsp;&nbsp;&nbsp;Retained earnings | &nbsp;&nbsp;&nbsp;&nbsp;Treasury shares | &nbsp;&nbsp;&nbsp;&nbsp;Total shareholders' equity |
| &nbsp;&nbsp;Balance at the beginning of current period | 52243 | 59181 | 492869 | (11629) | 592665 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cumulative effects in accounting policies |  |  | (279) |  | (279) |
| &nbsp;&nbsp;Balance as of the beginning of the period reflecting changes in accounting policies | 52243 | 59181 | 492589 | (11629) | 592385 |
| &nbsp;&nbsp;Changes of items during the period |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dividends of surplus |  |  | (6854) |  | (6854) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Profit attributable to owners of the parent |  |  | 26667 |  | 26667 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Acquisition of treasury share |  |  |  | (0) | (0) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cancellation of treasury share |  | (5) |  | 53 | 48 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net changes of items other than shareholders' equity |  |  |  |  |  |
| &nbsp;&nbsp;Total changes of items during the period |  | (5) | 19813 | 53 | 19861 |
| &nbsp;&nbsp;Balance at the end of current period | 52243 | 59176 | 512403 | (11576) | 612246 |

---

(Millions of yen)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | Accumulated other comprehensive income | Accumulated other comprehensive income | Accumulated other comprehensive income | Accumulated other comprehensive income | Share Acquisition Rights |
| | &nbsp;&nbsp;Valuation difference on available-for-sale securities | &nbsp;&nbsp;Deferred gain or loss on hedges | &nbsp;&nbsp;Remeasurements of defined benefit plans | &nbsp;&nbsp;Total accumulated other comprehensive income | Share Acquisition Rights |
| &nbsp;&nbsp;Balance at the beginning of current period | 294333 | 4426 | 14594 | 313354 | 272 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cumulative effects in accounting policies |  |  |  |  |  |
| &nbsp;&nbsp;Balance as of the beginning of the period reflecting changes in accounting policies | 294333 | 4426 | 14594 | 313354 | 272 |
| &nbsp;&nbsp;Changes of items during the period |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dividends of surplus |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Profit attributable to owners of the parent |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Acquisition of treasury share |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cancellation of treasury share |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net changes of items other than shareholders' equity | (25590) | 11243 | (2327) | (16674) | (0) |
| &nbsp;&nbsp;Total changes of items during the period | (25590) | 11243 | (2327) | (16674) | (0) |
| &nbsp;&nbsp;Balance at the end of current period | 268743 | 15670 | 12266 | 296680 | 271 |

---

(Millions of yen)

---

| | | |
|:---|:---|:---|
| | Non-controlling interests | Total net assets |
| &nbsp;&nbsp;Balance at the beginning of current period | 3402 | 909694 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cumulative effects in accounting policies |  | (279) |
| &nbsp;&nbsp;Balance as of the beginning of the period reflecting changes in accounting policies | 3402 | 909414 |
| &nbsp;&nbsp;Changes of items during the period |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dividends of surplus |  | (6854) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Profit attributable to owners of the parent |  | 26667 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Acquisition of treasury share |  | (0) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cancellation of treasury share |  | 48 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net changes of items other than shareholders' equity | 96 | (16578) |
| &nbsp;&nbsp;Total changes of items during the period | 96 | 3283 |
| &nbsp;&nbsp;Balance at the end of current period | 3499 | 912698 |

---

Notes to Consolidated Financial Statements

I Policies for Preparing Consolidated Financial Statements

The definition of subsidiaries and affiliated companies is subject to Paragraph 8, Article 2 of the Banking Act and Article 4-2 of Order for Enforcement of the Banking Act.

&nbsp;&nbsp;&nbsp;&nbsp;1. Scope of Consolidation

(1) Number of consolidated subsidiaries 11 companies <br> Company name

---

| | |
|:---|:---|
| Hachijuni Securities Co., Ltd. | Hachijuni Lease Co., Ltd. |
| Hachijuni Card Co., Ltd. | Hachijuni Credit Guarantee Co., Ltd. |
| Hachijuni System Development Co., Ltd. | Hachijuni Capital Co., Ltd. |
| Hachijuni Staff Service Co., Ltd | Yamabiko Services Co., Ltd. |
| Hachijuni Auto Lease Co., Ltd. | Hachijuni Asset Management Co., Ltd. |
| Hachijuni Investment Co., Ltd. |  |

---

Hachijuni Asset Management Co., Ltd. and Hachijuni Investment Co., Ltd., newly founded, became consolidated in the fiscal year ended March 31, 2022. 11 companies

---

| | | | |
|:---|:---|:---|:---|
| (2) | Number of unconsolidated subsidiaries | 6 companies | 11 companies |
|  | Principal company<br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Kodama Investment Ltd.<br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The unconsolidated subsidiaries were excluded from the scope of consolidation, due to the immateriality of their assets, ordinary income, profit (to the extent of equity position), retained earnings (to the extent of equity position), and accumulated other comprehensive income (to the extent of equity position). Their exclusion from the scope of consolidation would not impede reasonable judgement as to the financial condition or performance of the group. | Principal company<br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Kodama Investment Ltd.<br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The unconsolidated subsidiaries were excluded from the scope of consolidation, due to the immateriality of their assets, ordinary income, profit (to the extent of equity position), retained earnings (to the extent of equity position), and accumulated other comprehensive income (to the extent of equity position). Their exclusion from the scope of consolidation would not impede reasonable judgement as to the financial condition or performance of the group. | Principal company<br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Kodama Investment Ltd.<br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The unconsolidated subsidiaries were excluded from the scope of consolidation, due to the immateriality of their assets, ordinary income, profit (to the extent of equity position), retained earnings (to the extent of equity position), and accumulated other comprehensive income (to the extent of equity position). Their exclusion from the scope of consolidation would not impede reasonable judgement as to the financial condition or performance of the group. |

---

&nbsp;&nbsp;&nbsp;&nbsp;2. Application of Equity Method

---

| | | |
|:---|:---|:---|
| (1) | Unconsolidated subsidiaries accounted for by the equity method | 11 companies |
| (2) | Affiliated companies accounted for by the equity method |  |
| (3) | Unconsolidated subsidiaries not accounted for by the equity method |  |
|  | Principal company |  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Kodama Investment Ltd. |  |
| (4) | Affiliated companies not accounted for by the equity method |  |
|  | Principal company |  |

---

ALL Shinshu Tourism Vitalization Investment Limited Partnership

The unconsolidated subsidiaries not accounted for by the equity method were excluded from the application of the equity method, due to the immateriality of their profit (to the extent of equity position), retained earnings (to the extent of equity position), and accumulated other comprehensive income (to the extent of equity position). Their exclusion from the application of the equity method would not have material impact on the consolidated financial statements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Yen figures have been rounded down to the nearest million yen.

II Accounting Policies

&nbsp;&nbsp;&nbsp;&nbsp;1. Standards for Valuation of Trading Assets and Liabilities and Presentation of Income and Expenses

Transactions for purposes of seeking to capture gains arising from short-term changes in interest rates, currency exchange rates, or market prices of securities and other market-related indices or from gaps among markets (hereinafter referred to as "Trading Purposes") are included in "Trading Assets" and "Trading Liabilities" in the consolidated balance sheet on a trade-date basis and income and expenses arising from such transactions are included in "Trading Income" and "Trading Expenses" in the consolidated statement of income.

As for valuation of Trading Assets and Liabilities, trading securities and monetary claims bought for Trading Purposes are stated at fair value at the consolidated balance sheet date. Trading-related financial derivatives, such as swaps, futures, and options are stated at amounts that would be received or paid for settlement if such transactions were terminated at the consolidated balance sheet date.

Trading Income and Trading Expenses include the interest received and interest paid during the consolidated fiscal year, the gains or losses resulting from any change in the value of securities and other monetary claims between the beginning and the end of the consolidated fiscal year and the gains or losses resulting from any change in the value of financial derivatives between the beginning and the end of the consolidated fiscal year, assuming they were settled at the end of the fiscal year.

For financial derivatives, the fair value of each group of financial assets and financial liabilities is calculated based on the net assets or liabilities of financial assets and financial liabilities offset with respect to specific market risks or specific credit risks.

&nbsp;&nbsp;&nbsp;&nbsp;2. Valuation Standards and Methods of Securities

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) For valuation of securities, held-to-maturity debt securities are stated at amortized cost computed using straight-line method, stocks in unconsolidated subsidiaries and associated companies, etc. that are not accounted for by the equity method are carried at cost determined by the moving-average method, and other securities are calculated using the market value method (cost of sales is calculated mainly by the moving average method). Non-marketable available-for-sale securities are stated at cost using the moving-average method. Unrealized gains and losses, net of applicable taxes, are reported in a separate component of equity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Securities included in the money held in trust constituting trust property are stated in the same method as (1) above.

&nbsp;&nbsp;&nbsp;&nbsp;3. Valuation Standards and Methods of Derivatives

Derivatives, excluding transactions for Trading Purposes, are stated at fair value.

The fair value of each group of financial assets and financial liabilities is calculated based on the net assets or liabilities of financial assets and financial liabilities offset with respect to specific market risks or specific credit risks.

&nbsp;&nbsp;&nbsp;&nbsp;4. Depreciation and Amortization of Fixed Assets

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Tangible fixed assets

Depreciation for tangible fixed assets of the Bank is computed under the declining-balance method. The estimated useful lives are principally as follows:

Buildings 3 to 50 years <br> Others 3 to 20 years

Tangible fixed assets in relation to consolidated subsidiaries are depreciated under the declining-balance method at rates based on the estimated useful lives.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Intangible fixed assets

Intangible fixed assets are depreciated using the straight-line method. Capitalized software for internal use is depreciated over its estimated useful life (five years) as determined by the Bank and consolidated subsidiaries.

&nbsp;&nbsp;&nbsp;&nbsp;5. Recognition Standards for Allowance for Loan Losses

The allowance for loan losses is recorded as follows in accordance with predetermined amortization and allowance standards.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Bankrupt: Borrowers in which facts of legal or formal management failure have occurred, such as bankruptcy, corporate rehabilitation, and transaction suspension at a clearing house

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Defacto Bankrupt: Borrowers who are unable to meet their obligations

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• In Danger of Bankruptcy: Borrowers who are not currently in a state of bankruptcy but are likely to fall into bankruptcy in the future

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Need Special Attention: Borrowers who need to manage all or part of the loans requiring attention (loan conditions relaxed loans and loans overdue for three months or more)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Need Attention: Borrowers who have problems with lending conditions or repayment performance, business conditions are sluggish or unstable, and need to be managed in the future

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Normal: Borrowers with good performance and no financial problems

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Loans to "Bankrupt" and "Defacto Bankrupt," the expected amount of collateral disposal and the expected amount of recovery by guarantee are deducted from the amount of the loan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Loans to "In Danger of Bankruptcy," the expected amount of collateral disposal and the expected amount of recovery by guarantee are deducted from the amount of the loan. Of the remaining balance (hereinafter referred to as "non-conservation amount"), the amount deemed necessary is recorded. For example:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) For loans to large borrowers provided with a certain credit limit or above, the Bank comprehensively judges a borrower's situation and estimates a recoverable amount by cash flow and the balance of non-conservation amounts less such cash flow is recognized as the allowance for loan losses ("the collectible amount from cash flow method").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) For loans to borrowers other than the item (a) above, the amount estimated by multiplying non-conservation amounts by the expected loss rate calculated from the probability of default in the past certain period is recognized as the allowance for loan losses.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) For loans to large borrowers provided with a certain credit limit or above among borrowers categorized as "Need Special Attention" and "Need Attention," the difference between the cash flow "the discounted cash flow method" discounted at the original contracted interest rate and the carrying amount of the receivable would be recorded as the allowance for loan losses.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) For loans to "Need Special Attention" and "Need Attention" other than (iii), and "Normal," the allowance for loan losses is recorded based on the expected loss rate calculated from the probability of default in the past certain period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Note) 1. Grouping in calculating the probability of default

The probability of default is allocated to six categories, including one "Normal" division, three "Need Attention" divisions (including top level and lower level of "Need Attention" divisions and "Need Special Attention" division), and two "In Danger of Bankruptcy" divisions.<br> \* "Need Attention" divisions are classified according to the comprehensive judgment of the creditworthiness of the borrowers and the existence of loans with relaxed loan terms.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. A certain period in which the expected loss rate will be estimated in the future

Allowance for loan losses is determined based on the expected loss rate for "Normal" borrowers over the next one year, for borrowers of "Need Attention" and "Need Special Attention" over the period corresponding to the average remaining life of the loans, and for "In Danger of Bankruptcy" borrowers over the next three years. (The average remaining period is 39 months for top level of "Need Attention," 43 months for lower level of "Need Attention," and 46 months for "Need Special Attention.")

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Adjustment and determination of the probability of default based on future prospects, etc.

The probability of default used to calculate the allowance is determined by comparing the average value of the last three determination periods with the long-term average value, considering the entity's business cycle. The average value for the last three determination periods is calculated by including necessary revisions such as the current circumstances and future projections.

Based on the self-assessment standard of assets, all receivables are assessed by the asset assessment section, which is independent from the sales section, and the internal audit section provides an assessment of these results.

Allowance for loan losses in relation to consolidated subsidiaries is recorded at an amount to be considered necessary in accordance with the Bank's amortization and allowance standards.

&nbsp;&nbsp;&nbsp;&nbsp;6. Recognition Standards for Provision for Reimbursement of Deposits

A provision for reimbursement of deposits, which were derecognized as liabilities under certain conditions, is provided for possible losses on future claims of withdrawal based on historical reimbursement experience.

&nbsp;&nbsp;&nbsp;&nbsp;7. Recognition Standards for Provision for Contingent Loss

A provision for contingent loss is provided for the contribution to the National Federation of Credit Guarantee Corporations' liability sharing program and is recorded in the amount of estimated future contributions based on subrogate performance, etc. The rate of subrogate performance is calculated for the same period as the determination period of the expected loss rate for the allowance for loan losses.

&nbsp;&nbsp;&nbsp;&nbsp;8. Recognition Standards for Reserves under Special Laws

A reserve under special laws is the financial instruments transaction liability reserve provided for contingent liabilities from brokering of securities or derivative transactions in accordance with Article 46-5 of the Financial Instruments and Exchange, and recorded at the amount computed by consolidated subsidiaries in accordance with Article 175 of the Cabinet Office Ordinance on Financial Instruments Business.

&nbsp;&nbsp;&nbsp;&nbsp;9. Accounting Method of Retirement Benefits

The projected benefit obligations are attributed to periods up to the end of the consolidated fiscal year ended March 31, 2022 on a benefit formula basis. Actuarial gains and losses are recognized in profit or loss as follows:

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| | |
|:---|:---|
| Actuarial gains and losses | The amount prorated by the straight-line method over a certain number of years (principally 10 years) within the average remaining service period of employees for each consolidated fiscal year is recognized in profit and loss for the following consolidated fiscal year and beyond. |

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Some consolidated subsidiaries adopt the simplified method to calculate their liability for employees' retirement benefit and retirement benefit costs, based on the projected benefit obligations for each retirement plan that would be required if all employees retired voluntarily at the balance sheet date, and based on the recent actuarial benefit obligations for the corporate pension plan.

&nbsp;&nbsp;&nbsp;&nbsp;10. Translation of Foreign Currency-denominated Assets and Liabilities into Japanese Yen

Assets and liabilities denominated in foreign currencies held domestically and the accounts of the Bank's overseas branch are translated into Japanese yen generally at the exchange rates prevailing on the consolidated balance sheet date.

&nbsp;&nbsp;&nbsp;&nbsp;11. Standards for Recognition of Significant Income and Expenses

The Group applies the "Accounting Standards for Revenue Recognition" (ASBJ Guidance No.29, March 31, 2020) and recognizes revenue at the time in exchange for transferring promised goods or services to a customer, and the amount expected to be received in exchange for goods or services.

&nbsp;&nbsp;&nbsp;&nbsp;12. Recognition Standards for Income and Expenses for Leases

Income and expenses for finance leases are recognized at the end of the lease term.

&nbsp;&nbsp;&nbsp;&nbsp;13. Significant Hedge Accounting

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Hedge accounting for interest rate risk

The Bank applies portfolio hedging accounting to hedges of interest rate risk associated with financial assets and liabilities in accordance with "Accounting and Auditing Treatments on the Application of Accounting Standards for Financial Instruments in the Banking Industry" (Industry Committee Practical Guidelines No.24 issued by the Japanese Institute of Certified Public Accountants ("JICPA") on March 17, 2022; hereinafter referred to as the "Industry Committee Practical Guidelines No.24"). A portfolio of hedged items, such as deposits or loans with common maturities, is matched with a group of hedging instruments, such as interest rate swaps, which offset the effect of fair value fluctuations of the hedged items by identified maturities. The effectiveness of the portfolio hedge is assessed by each group. The effectiveness of cash flow hedging to protect the Group's cash flow against fluctuations is assessed by verifying a correlation between factors affecting interest rate fluctuations for hedged items and hedging instruments.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Hedge accounting for foreign currency risk

Currency swap and foreign exchange swap transactions associated with financial assets and liabilities denominated in foreign currencies are accounted for using deferral hedge accounting by fully applying "Accounting and Auditing Treatments for Foreign Currency Transactions in the Banking Industry" (Industry Committee Practical Guidelines No.25 issued by the JICPA on October 8, 2020; hereinafter referred to as the "Industry Committee Practical Guidelines No.25").

Under deferral hedge accounting, hedged items are identified by grouping the foreign currency-denominated financial assets and liabilities by currencies and designating derivative transactions, such as currency swap transactions and forward exchange contracts as hedging instruments. Hedge effectiveness is reviewed by comparing the total foreign currency position of the hedged items and hedging instruments by currency.

For hedging the foreign currency exposure of foreign currency-denominated securities (other than debt securities), which were designated in advance, deferral hedge accounting and fair value hedge accounting are adopted on a portfolio basis when the cost of the hedged securities is covered with offsetting liabilities denominated in the same foreign currency as the hedged securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Intercompany and Intracompany Derivative Transactions

With respect to derivative transactions between consolidated subsidiaries or internal transactions between Trading accounts and other accounts, the Bank manages interest rate swap and currency swap transactions designated as hedging instruments in accordance with the strict hedging criteria for external mirror transactions stipulated in the Industry Committee Practical Guidelines No.24 and No.25. Therefore, the Bank accounts for the gains and losses on these swap transactions in its earnings or defers until maturity as deferred gain (loss) under hedge accounting in a separate component of equity.

Deferred hedging and interest rate swaps are exceptionally applied to some of the assets and liabilities.

III Change in Accounting Policies

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Application of Accounting Standards for Revenue Recognition, etc.

Effective April 1, 2021, the Group adopted ASBJ Statement No.29, "Accounting Standard for Revenue Recognition" issued on March 31, 2020 (hereinafter referred to as the "Accounting Standards for Revenue Recognition"), etc.

As a result, the Bank and certain subsidiaries decided to recognize revenue when the service was provided, not when the consideration was received as before.

According to the transitional measures prescribed in the proviso of paragraph 84 of the Accounting Standards for Revenue Recognition, the Group has recognized the cumulative effect of applying accounting standards for revenue recognition as an adjustment to the opening balance of retained earnings at the beginning of the consolidated fiscal year ended March 31, 2022, as its first reporting period under the new accounting policy.

As a result, retained earnings at the beginning of the current consolidated fiscal year decreased by ¥68 million. The impact on profit before income taxes for the current consolidated fiscal year is immaterial.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Appling Accounting Standard for Fair Value Measurement

Effective April 1, 2021, the Group adopted ASBJ Statement No.30, "Accounting Standard for Fair Value Measurement" issued on July 4, 2019 (hereinafter referred to as the "Accounting Standard for Fair Value Measurement"), etc.

In accordance with the transitional treatment stipulated in paragraph 20 of the Accounting Standard for Fair Value Measurement, which requires reflecting credit risk of a counterparty and its own in fair value of derivative transactions, the cumulative impact of retroactive application of the new accounting policy is added to or subtracted from retained earnings at the beginning of the current consolidated fiscal year. As a result, specified Trading Assets at the beginning of the current consolidated fiscal year decreased by ¥21 million, other assets decreased by ¥139 million, Trading Liabilities increased by ¥12 million, other liabilities increased by ¥129 million, deferred tax debt decreased by ¥91 million, and retained earnings decreased by ¥211 million. The impact on profit before income taxes for the current consolidated fiscal year is immaterial.

IV Changes in Presentation

The Bank revised the recognition method for dividends received from its contracts of group credit life insurance, etc., previously recorded as other income due to changes in contracts related to premiums paid and dividends received for some group credit life insurances and expected increase in such insurance contracts. As a result of examination, the Bank concluded that it would be more appropriate to recognize the balance of premiums paid less dividends received as expenses from perspectives of presenting insurance premiums payable, and started recognizing it as fees and commissions for the consolidated fiscal year ended March 31, 2022.

V Significant Accounting Estimates

Allowance for loan losses

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Amounts recorded in the consolidated financial statements for the consolidated fiscal year ended March 31, 2022

Allowance for loan losses was ¥41,129 million

Of the above, allowance for loan losses by "the collectible amount from cash flow method" was ¥12,698 million, whereas allowance for loan losses by "the discounted cash flow method" was ¥3,078 million.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Information that contributes to understanding the content of significant accounting estimates for the identified item

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Determination method

The allowance for loan losses is computed based on the borrower category in accordance with predetermined amortization and allowance standards as described in "Notes to Consolidated Financial Statements, II Accounting Policies, 5. Recognition Standards for Allowance for Loan Losses."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Key assumptions

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The business plan used to determine borrower category and used to estimate future cash flow by the discounted cash flow method and the collectible amount from cash flow method.

Sales forecast, expense forecast, and future outlook for debt repayment plan in the business plan used to determine borrower category and used to estimate future cash flow by the discounted cash flow method and the collectible amount from cash flow method are assumed as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Period for which the COVID-19 infection affects business performance in the industry sector or industry to which the borrower belongs

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Market growth potential and market price trends in the industry sector or industry to which the borrower belongs

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The impact of COVID-19 infection

The economic environment due to the COVID-19 infection may last for the time being. The Bank assumes that the credit risk of loans and bills discounted will be affected to some extent and the creditworthiness (financial capacity for repayment) of some borrowers will weaken. However, the Bank assumes that the credit costs will not significantly increase.

Based on such assumption and in light of recent outlook for future business performance, the Bank has computed allowance for loan losses by revising the borrower category for some borrowers, and reflecting such actual situations in estimating future cash flow by the collectible amount from cash flow method and the discounted cash flow method.

The assumption is uncertain. Therefore, the performance of the Bank for on and after the fiscal year ended March 31, 2022, may be affected depending on the COVID-19 infection and its impact on the economic environment.<br>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Impact on consolidated financial statements for the next consolidated fiscal year

If the assumptions used in the estimation at the end of the current consolidated fiscal year change due to changes in the borrower's business environment, including the status of the COVID-19 infection, the borrower category, estimated future cash flow by the collectible amount from cash flow method and the discounted cash flow method may have a significant impact on the allowance for loan losses recorded in the consolidated financial statements for the next consolidated fiscal year.

VI Notes

(Consolidated Balance Sheet)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The securities placed under unsecured lending agreements are included in government bonds under "Securities" in the amount of ¥193,771 million.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Loans under the Banking Act and the Act on Emergency Measures for the Revitalization of the Financial Functions are as follows. Loans include, in the consolidated balance sheet, corporate bonds in "Securities" (limited to those for which payment of principal and interest is guaranteed in whole or in part, and the issuance of such bonds is through private placement of securities (stipulated in Article 2, Paragraph 3 of the Financial Instruments and Exchange Act)), loans and bills discounted, foreign exchanges, accrued interest and suspense payables in "Other assets," customers' liabilities for acceptances and guarantees and securities in the case of loaned securities in the notes to the consolidated balance sheet (limited to only those subject to a usage and lending or lending agreement).

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| | |
|:---|:---|
| Bankrupt and quasi-bankrupt loans | ¥7,386 million |
| Doubtful loans | ¥77,879 million |
| Three months or more past due loans | ¥1,725 million |
| Restructured loans | ¥20,466 million |
| Total | ¥107,457 million |

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"Bankrupt and quasi-bankrupt loans" refers to the loans to customers in bankrupt such as insolvency, company rehabilitation, civil rehabilitation, etc., and to customers in quasi-bankrupt conditions.

"Doubtful loans" refers to the loans, excluding "Bankrupt and quasi-bankrupt loans," for which substantial doubt is judged to exist as to ultimate collectability of either principal or interest because of the deterioration in business results and financial conditions of customers who are not in bankrupt.

"Three months or more past due loans" refers to the loans, either principal or interest payment of which is contractually past due three months or more from the next day of the due date, excluding "Bankrupt and quasi-bankrupt loans" and "Doubtful loans."

"Restructured loans" refers to the loans to customers, excluding "bankrupt and quasi-bankrupt loans," "Doubtful loans" and "Three months or more past due loans," on which the Bank granted concessions such as reduction of the stated interest rate, extension of maturity date, debt forgiveness, and other arrangements favoring customers to support for their management reconstruction.

Allowance for loan losses is not deducted from the amounts stated above.

(Changes in Presentation)

Following the "Cabinet Office Order to Amend the Ordinance for Enforcement of the Banking Act, etc." (Cabinet Office Ordinance No.3, January 24, 2020) effective on March 31, 2022, the classification, etc. of risk-monitored loans under the Banking Act is presented in accordance with the classification, etc. under the Act on Emergency Measures for the Revitalization of the Financial Functions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. In accordance with the Industry Committee Practical Guidelines No.24, bills discounted are accounted for as financial transactions. As a result, the Bank has the right to sell or pledge commercial bills and foreign exchanges bills bought, etc. without restrictions. Face value of these bills amounted to ¥16,831 million.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. Assets pledged as collateral as of March 31, 2022 consisted of the following:

Assets pledged:

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| | |
|:---|:---|
| Trading assets | ¥5,999 million |
| Securities | ¥1,298,835 million |
| Loans and bills discounted | ¥1,652,965 million |
| Cash (other assets) | ¥408 million |

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Related liabilities:

Deposits ¥66,030 million <br> Cash collateral received for securities lent ¥322,484 million <br> Borrowed money ¥2,073,288 million

In addition, securities of ¥1,194 million, cash (other assets) of ¥25 million, and other assets of ¥70,272 million are pledged as collateral for transactions, such as exchange settlement transactions, or as substitute securities for initial margin on futures transactions.

"Other assets" includes initial margin of futures markets of ¥60 million and guarantee deposits of ¥651 million.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. Overdraft contracts and contracts for loan commitments are those by which the Bank is bound to extend loans up to a prearranged amount, upon the request of customers, unless the customer is in breach of contract conditions.

Unfunded amounts relating to these contracts totaled ¥1,664,934 million. Of these contracts, loan commitments with a maturity of one year or less amounted to ¥1,470,567 million.

As a large majority of these commitments expire without being drawn down upon, the unfunded amounts do not necessarily represent future cash requirements of the Bank and its consolidated subsidiaries. Many of these agreements include conditions granting the Bank and its consolidated subsidiaries the right to reject the drawdown or to reduce the amount on the basis of changes in the financial circumstances of the borrower or other reasonable grounds. In addition, the Bank obtains collateral when necessary to reduce credit risk at the execution of the contracts, and after the contracts are signed, take necessary measures, such as regularly monitoring customers' financial positions in accordance with the internal procedures of the Bank or its consolidated subsidiaries, revising contracts when such needs arise and securing claims.

6. Accumulated depreciation of tangible fixed assets ¥72,937 million <br> 7. Deferred gains on tangible fixed assets deductible for tax purposes ¥7,788 million

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. Guarantee obligations for bonds in private placement (defined in Paragraph 3, Article 2 of the Financial Instruments and Exchange Act) included in securities were ¥53,313 million.

(Consolidated Statement of Income)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. "Other expenses" includes Losses on money held in trust of ¥3,717 million and Losses on sales
of equity securities of ¥2,419 million.

(Consolidated Statement of Changes in Equity)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Classes and number of issued and outstanding stock and treasury share

&nbsp;&nbsp;(Thousands of shares)

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| | | | | |
|:---|:---|:---|:---|:---|
| | &nbsp;&nbsp;Number of shares at the beginning of the period | &nbsp;&nbsp;Number of shares increased during the period | &nbsp;&nbsp;Number of shares decreased during the period | &nbsp;&nbsp;Number of shares at the end of the period |
| &nbsp;&nbsp;Issued and outstanding stock |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Common stock | 511103 |  |  | 511103 |
| &nbsp;&nbsp;Treasury shares |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Common stock | 21544 | 0 | 100 | 21445 (Note) |

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&nbsp;&nbsp;&nbsp;&nbsp;(Note) Treasury share increased by 0 thousand shares due to the purchase request for shares constituting less than one unit. Treasury share decreased by 99,000 shares due to the excise of stock acquisition rights and by 0 thousand shares due to the purchase increase request for shares constituting less than one unit.

&nbsp;&nbsp;&nbsp;&nbsp;2. Matters Related to Stock Acquisition Rights, etc.

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| Category | &nbsp;&nbsp;Details of Stock Acquisition Rights | Class of Underlying Stocks | &nbsp;&nbsp;Number of Underlying Stocks | &nbsp;&nbsp;Number of Underlying Stocks | &nbsp;&nbsp;Number of Underlying Stocks | &nbsp;&nbsp;Number of Underlying Stocks | &nbsp;&nbsp; Balance at the end of the period<br> (Millions of yen) | &nbsp;&nbsp;Remarks |
| Category | &nbsp;&nbsp;Details of Stock Acquisition Rights | Class of Underlying Stocks | &nbsp;&nbsp;Number of shares at the beginning of the period | &nbsp;&nbsp;Number of shares increased during the period | &nbsp;&nbsp;Number of shares decreased during the period | &nbsp;&nbsp;Number of shares at the end of the period | &nbsp;&nbsp; Balance at the end of the period<br> (Millions of yen) | &nbsp;&nbsp;Remarks |
| The Nagano Bank, Ltd. | &nbsp;&nbsp;Stock Acquisition Rights as Stock Option |  |  |  |  |  | 271 |  |
| Total |  |  |  |  |  |  | 271 |  |

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&nbsp;&nbsp;&nbsp;&nbsp;3. Information on Dividends

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Dividends paid during the period

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| &nbsp;&nbsp; <br> Resolution | Class of Stocks | Aggregate dividends | &nbsp;&nbsp;Cash dividend per share | &nbsp;&nbsp;Record date | &nbsp;&nbsp;Effective date |
| June 25, 2021 Annual General Meeting of Shareholders | Common stock | ¥3,916 million | ¥8.00 | March 31, 2021 | June 28, 2021 |
| October 29, 2021 Board of Directors | Common stock | ¥2,937 million | ¥6.00 | September 30, 2021 | December 3, 2021 |
| Total |  | ¥6,854 million |  |  |  |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Cash dividends with record date that belongs to the consolidated fiscal year ended March 31, 2022 and effective date that comes after the end of the fiscal year

The following item regarding dividends of common stock was presented as a proposal to the Annual General Meeting of Shareholders held on June 24, 2022:

(i) Aggregate dividends ¥4,896 million

(ii) Cash dividend per share ¥10

(iii) Record date March 31, 2022

(iv) Effective date June 27, 2022

Retained earnings will be used as source of dividends.

(Financial Instruments)

&nbsp;&nbsp;&nbsp;&nbsp;1. Matters concerning financial instruments

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Group policy for financial instruments

The Group offers financial services such as providing loans and sales of investment products to customers. In performing these operations, the Group uses funds received as deposits from customers or by borrowing money from the short-term financial market in consideration of market conditions and the balance in funding periods between the short term and the long term.

As the Bank holds financial assets and liabilities affected by interest rate movements, it carries out Asset Liability Management (hereinafter referred to as "ALM") to avoid negative effects of interest movements. In managing interest rate movements, the Bank utilizes derivatives.

The Bank and certain consolidated subsidiaries also hold securities for sale to customers.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Details and extent of risks arising from financial instruments

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Loans and bills discounted

The Bank provides loans and bills discounted mainly to domestic customers. These loans and bills discounted are exposed to credit risk in the case of the customers' breach of the contract. The domestic loans and bills discounted does not focus on specific groups of companies, but the percentage of loans and bills discounted in Nagano Prefecture, the Bank's main business area, is over approximately 50%. As such, the Bank's credit risk is likely to deteriorate if there are negative changes in the economy in Nagano Prefecture.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Securities

Securities are mainly bonds, stocks, investment trusts, and investments in partnerships. These securities are classified into categories, such as securities held to maturity, securities available for sale, and securities for trading purposes to sell to customers. All securities are exposed to the credit risk of the securities' issuers or interest rate risk, market price risk, foreign exchange risk, and liquidity risk.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Deposits

The Bank receives deposits from customers. These deposits are exposed to interest rate risk, foreign exchange risk, and liquidity risk.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) Derivatives

The purpose of using derivatives is to provide customers various hedging instruments to hedge the Group's portfolio under ALM and to enhance its profit.

Derivatives include interest rate swaps, interest cap transactions, and currency exchange swaps. Using these derivatives as hedging instruments for loans and bills discounted and securities, the Bank applies hedge accounting to derivative transactions and assesses the effectiveness of the hedged items and hedging instruments from the start of hedging to the time of judgement of effectiveness.

Derivative transactions used for hedging purposes are carried out in accordance with the Group's annual hedging policy.

These derivative transactions are exposed to market risk and credit risk.

&nbsp;&nbsp;&nbsp;&nbsp;(3) Risk management for financial instruments

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Credit risk management

In accordance with internal rules of credit risk management, the Group examines every loan, manages loans according to credit lines for each borrower, addresses troubled loans, reviews the borrower category and borrower's credit rating, and manages the Bank's loan and bills discounted portfolio. Regarding the loan examination structure, the loan promotion section is separated from the loan examination section in the head office. These two sections monitor and check each other. Every loan from the business branches is examined in many stages from loan application to the Bank's final decision. The Bank reviews the borrower category and each borrower's credit rating on a regular basis to identify troubled loans in a timely manner. In addition, the Bank uses such examination results to measure credit risk and manage the Bank's loan portfolio.

To address the credit risk of securities' issuers, the Bank carries out its business under credit line limits for each borrower and transaction item. Such limits are defined by the Risk Management Department on a semiannual basis.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Market risk management

The Group stipulates internal rules of market risk management and controls market risk so as to maintain management soundness and profitability.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Interest rate risk, foreign exchange risk, and market price risk

Considering the market and the Bank's financial strength, the Bank updates its Market Risk Management Policy on a semiannual basis to maintain an appropriate balance between risk and return and to adjust the volume of risk. Furthermore, the Management Committee confirms the risk limit and loss limit by each transaction type for each customer according to the Market Risk Management Policy. The Bank defines the limit of investment, limit of holding, and limit of valuation losses, as necessary. It also defines the threshold that should limit market risk and losses to certain amounts. Each section in charge of transaction should carry out its business within risk limits, as well as report the risk status to the executive officer on a daily basis. In this way, the Group are practicing appropriate responses promptly.

Regarding management of business operations, the front office which executes transaction is separated from the back office which operates procedures. The middle office which controls and manages risk is also separated from these two offices. These three offices monitor and check each other.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Management of interest rate risk

To manage risk caused by interest rate fluctuations, the Bank uses Value at Risk (hereinafter referred to as "VaR") for the change of economic value and uses ALM for the change of interest rate in gap analysis. The "ALM and Integrated Risk Conference" monitors the Group's risk status and discusses various measures corresponding to risks. As stated above, the Bank uses some derivative transactions, such as interest rate swaps and interest cap transactions, for hedging against interest rate risk under ALM.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Management of foreign exchange risk

The Bank manages the change of economic value arising from fluctuations in foreign exchange rates by VaR. To avoid excessive foreign exchange risk, the Bank defines the upper holding limit in its Market Risk Management Policy.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Management of market price risk

The Bank manages the change of economic value arising from fluctuations in market prices by VaR. The Board of Directors defines the upper limit of risk on a semiannual basis by taking into account the Bank's capital status and market conditions. The Bank comply with the upper limit. Certain consolidated subsidiaries manage the risk by reporting market values of holding securities to the Bank's Board of Directors on a regular basis.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Derivative transactions

The Bank establishes internal rules for derivative transactions and manages the Group's risk in an integrated fashion, including derivative transactions made by consolidated subsidiaries. Regarding derivatives, the total positions, market values, and market risk amounts are reported to both the executive officers and the "ALM and Integrated Risk Conference" on a regular basis.

To manage risk arising from derivative transactions, the middle office which checks and controls risk is separated from the front office which executes transactions so as to monitor the front office's transactions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Liquidity risk management

The Bank manages liquidity risk through diversification of funding and adjustment of funding periods between long term and short term under ALM.

&nbsp;&nbsp;&nbsp;&nbsp;(4) Supplemental explanation for the matters concerning fair values, etc. of financial instruments

The fair values of financial instruments are calculated based on certain conditions and assumptions, the resulted values would differ if such calculations were made under different conditions and assumptions.

&nbsp;&nbsp;&nbsp;&nbsp;2. Matters concerning fair values, etc. of financial instruments

Amounts on consolidated balance sheet, fair values of financial instruments and their difference on March 31, 2022 are as follows. Investments in equity instruments that do not have a quoted market price in an active market and investments in partnerships are not included in the following table (See Note 1). The fair values of "Cash and due from banks," "Call loans and bills bought," "Foreign exchange (assets and liabilities)," "Call money and bills sold," "Securities sold under repurchase agreements," "Cash collateral received for securities lent," and "Short-term corporate bonds" are not disclosed because their maturities are short and the carrying values approximate fair value.

(Millions of yen)

---

| | | | | |
|:---|:---|:---|:---|:---|
| | | Amount on consolidated balance sheet | Fair value | Difference |
| (1) | &nbsp;&nbsp;Securities |  |  |  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;Held-to-maturity debt securities | 99 | 101 | 1 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;Available-for-sale securities | 2766219 | 2766219 |  |
| (2) | &nbsp;&nbsp;Loans and bills discounted | 5931315 |  |  |
|  | &nbsp;&nbsp;Allowance for loan losses (\*1) | (34564) |  |  |
|  |  | 5896751 | 5922770 | 26018 |
| &nbsp;&nbsp;Total assets | &nbsp;&nbsp;Total assets | 8663071 | 8689090 | 26019 |
| &nbsp;&nbsp;(1) | &nbsp;&nbsp;Deposits | 8049875 | 8049968 | 93 |
| &nbsp;&nbsp;(2) | &nbsp;&nbsp;Negotiable certificates of deposit | 132507 | 132507 | 0 |
| &nbsp;&nbsp;(3) | &nbsp;&nbsp;Borrowed money | 2087634 | 2086200 | (1434) |
| &nbsp;&nbsp;Total liabilities | &nbsp;&nbsp;Total liabilities | 10270016 | 10268675 | (1341) |
| &nbsp;&nbsp;Derivative transactions (\*2) (\*3) | &nbsp;&nbsp;Derivative transactions (\*2) (\*3) |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Hedge accounting not applied | &nbsp;&nbsp;&nbsp;&nbsp;Hedge accounting not applied | (686) | (686) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Hedge accounting applied | &nbsp;&nbsp;&nbsp;&nbsp;Hedge accounting applied | 22399 | 22399 |  |
| &nbsp;&nbsp;Total derivative transactions | &nbsp;&nbsp;Total derivative transactions | 21713 | 21713 |  |

---

\*1 General allowance for loan losses and specific allowance for loan losses provided to Loans and bills discounted are deducted by ¥17,034 million and ¥17,530 million respectively.

\*2 Claims and liabilities attributable to the derivative transactions are totally offset and any net liability position as a consequence of offsetting would be represented with brackets.

\*3 These are interest rate swaps, etc. designated as hedging instruments in order to offset market fluctuations of securities, loans and bills discounted, and deposits which are hedged items, and deferral hedge accounting and exceptional treatment are applied. The "Practical Solution on the Treatment of Hedge Accounting for Financial Instruments that Reference LIBOR" (ASBJ Practical Response Report No.40, issued on March 17, 2022) is applied to these hedging accounting methods.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Note) 1. Amounts on consolidated balance sheet of non-marketable equity securities and investments in partnership are as follows and not included in "Available-for-sale securities" in the above table regarding the fair values of financial instruments.

(Millions of yen)

---

| | |
|:---|:---|
| Category | Amount on consolidated balance sheet |
| &nbsp;&nbsp;(i) Unlisted stocks (\*1) | 6782 |
| &nbsp;&nbsp;(ii) Investments in partnerships (\*2) | 27366 |
| Total | 34149 |

---

\*1 Fair value of unlisted stocks is not disclosed in accordance with Paragraph 5 of the "Implementation Guidance on Disclosure about Fair Value of Financial Instruments" (ASBJ Guidance No.19, issued on March 31, 2020).

\*2 Fair value of investments in partnership is not disclosed in accordance with Paragraph 27 of the "Implementation Guidance on Accounting Standard for Fair Value Measurement" (ASBJ Guidance No.31, issued on July 4, 2019).

&nbsp;&nbsp;&nbsp;&nbsp;3. Financial instruments categorized by fair value hierarchy

The fair value of financial instruments is categorized into the following three levels, depending on the observability and significance of the inputs used in making fair value measurements:

Level 1: Fair values measured by using quoted prices (unadjusted) in active markets for identical assets or liabilities

Level 2: Fair values measured by using inputs other than quoted prices included within Level 1 that are observable for the assets or liabilities

Level 3: Fair values measured by using unobservable inputs for the assets or liabilities

If multiple inputs are used that have a significant impact on the measurement of fair value, fair value is classified at the lowest level in the fair value measurement among the levels to which each of these inputs belongs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Financial assets and liabilities measured at fair value in the consolidated balance sheet

Consolidated fiscal year ended March 31, 2022

---

| | | | | |
|:---|:---|:---|:---|:---|
| | | | | (Millions of yen) |
| Category | Fair value | Fair value | Fair value | Fair value |
| Category | Level 1 | Level 2 | Level 3 | Total |
| &nbsp;&nbsp;Securities |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Available-for-sale securities (\*1) |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Government bonds | 806882 | 13671 |  | 820553 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Local government bonds |  | 308214 |  | 308214 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Corporate bonds |  | 471667 | 53022 | 524690 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stocks | 492725 | 60 |  | 492786 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Others | 89298 | 282428 |  | 371727 |
| &nbsp;&nbsp;Total assets | 1388906 | 1076041 | 53022 | 2517971 |
| &nbsp;&nbsp;Derivative transactions (\*2) |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest rate swaps |  | 25303 |  | 25303 |
| &nbsp;&nbsp;&nbsp;&nbsp;Currency derivatives |  | (3667) |  | (3667) |
| &nbsp;&nbsp;&nbsp;&nbsp;Bond derivatives | 77 |  |  | 77 |
| &nbsp;&nbsp;Total derivative transactions | 77 | 21636 |  | 21713 |

---

---

| | |
|:---|:---|
| \*1 | In accordance with Paragraph 26 of the "Implementation Guidance on Accounting Standard for Fair Value Measurement" (ASBJ Guidance No.31, issued on July 4, 2019), investment trusts, etc. to which transitional treatment were applied are not included in the above table. The amount of such investment trusts, etc. was ¥248,248 million on the consolidated balance sheet. |

---

---

| | |
|:---|:---|
| \*2 | Derivatives recorded in "Trading assets," "Trading liabilities," "Other assets," and "Other liabilities" are aggregated and shown herein in total. Claims and liabilities attributable to the derivative transactions are totally offset and any net liability position as a consequence of offsetting would be represented with brackets. |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Financial assets and liabilities not measured at fair value in the consolidated balance sheet

Consolidated fiscal year ended March 31, 2022

---

| | | | | |
|:---|:---|:---|:---|:---|
| | | | | (Millions of yen) |
| Category | Fair value | Fair value | Fair value | Fair value |
| Category | Level 1 | Level 2 | Level 3 | Total |
| &nbsp;&nbsp;Securities |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Held-to-maturity debt securities |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Government bonds | 101 |  |  | 101 |
| &nbsp;&nbsp;Loans and bills discounted |  |  | 5922770 | 5922770 |
| &nbsp;&nbsp;Total assets | 101 | － | 5922770 | 5922871 |
| &nbsp;&nbsp;Deposits |  | 8049968 |  | 8049968 |
| &nbsp;&nbsp;Negotiable certificates of deposit |  | 132507 |  | 132507 |
| &nbsp;&nbsp;Borrowed money |  | 2079521 | 6678 | 2086200 |
| &nbsp;&nbsp;Total liabilities |  | 10261996 | 6678 | 10268675 |

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&nbsp;&nbsp;&nbsp;&nbsp;(Note) 1. Explanation of valuation techniques and valuation inputs used in fair value measurements

Assets

Securities

In principle, the fair values of stocks are based on the market price. They are mainly classified into Level 1 depending on the level of market activity. The fair values of bonds with market prices are based on the market price. Government bonds are classified into Level 1 and other bonds are classified into Level 2.

Fair values of private placement bonds are measured by discounting the total amount of principal and interest and others at interest rates based on the discount rate reflecting expected loss and various risk factors by categories based on the internal ratings and terms and are mainly categorized as Level 3 since the discount rate is unobservable.

Information relating to securities for holding purpose is included in the section "(Securities)".

Loans and bills discounted

Because floating-rate loans and bills discounted are immediately affected by the movement of interest rates, the carrying amounts of these loans and bills discounted are equivalent to fair values in cases where the credit risk of debtors has not totally changed from the execution of the loans. For fixed-rate loans and bills discounted used to fund business, fair values are determined by discounting the total amounts of the principal and interest at market rates plus spreads. The spreads are defined in internal guidelines. For fixed-rate loans and bills discounted other than business funds, fair values are determined by discounting the total amounts of the principal and interest at expected rates if the Bank newly executes similar loans to customers. Such expected rates are determined according to the loans' type and period. The carrying value of fixed-rate loans and bills discounted other than business funds with short maturity (within one year) approximates the book value and is therefore deemed equal to the fair value.

For loans to "Bankrupt", "Defacto Bankrupt" and "In Danger of Bankruptcy," a reserve for possible loan losses calculated from the current value of expected future cash flows or from the expected amount to be collected through disposal of collateral or execution of guarantees is provided. Therefore, the book values at the consolidated balance sheet date, net of reserve amounts, are regarded as the fair values.

Specific loans and bills discounted in which the loan amount can be increased or decreased within the collateral amount have no maturity dates. The carrying amounts of such loans are assumed to be equivalent to the fair values because of the loans' period and conditions.

Fair value of those loans is categorized as Level 3.

Liabilities

Deposits and negotiable certificates of deposit

Fair values of demand deposits are measured at the expected amount to be paid to depositors from the Bank at the consolidated balance sheet date (book values). For time deposits and negotiable certificates of deposit, according to each period, fair values are measured by discounting future cash flows. The rate that the Bank applies to new deposits is used in discounting the future cash flows. The carrying amounts of short-time deposits (within one year) approximates the book value and is therefore deemed equal to the fair values.

Fair value of those is categorized as Level 2.

Borrowed money

Because floating-rate borrowed money is immediately affected by the movement of interest rates, the carrying value of this borrowed money is equivalent to fair value in cases where the credit risk of consolidated subsidiaries has not totally changed from when the money was borrowed. The fair value of fixed rate borrowed money, which is classified in accordance with its period, is estimated at the total amount of the principal and interest discounted using rates that would be offered to similar borrowings. The carrying value of borrowed money whose term is short (within one year) approximates the book value and is therefore deemed equal to the fair value.

Fair value of those is mainly categorized as Level 2.

Derivative transactions

Derivative transactions that can be measured at unadjusted quoted prices in active markets are categorized as Level 1, which includes such transactions as bonds futures and interest rate futures.

However, since most derivative transactions are over-the-counter transactions and there are no quoted market prices, market values are measured using valuation techniques such as the discounted cash flow method and the Black-Scholes model, depending on the type of transaction and the maturity period. The main inputs which are used in those valuation techniques are interest rate, currency rate, volatility and others. In addition, price adjustments based on credit risk of counterparty and credit risk of ourselves and price adjustments are made. When unobservable inputs are not used or impact of unobservable inputs are not material, transactions are categorized as Level 2.

&nbsp;&nbsp;&nbsp;&nbsp;(Note) 2. Financial assets and liabilities measured at fair value in the consolidated balance sheet and classified as Level 3

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Quantitative information on significant unobservable valuation inputs (as of March 31, 2022)

---

| | | | | |
|:---|:---|:---|:---|:---|
| Category | Valuation technique | Significant unobservable valuation inputs | &nbsp;&nbsp;Range of valuation input (\*) | Weighted average (\*) |
| &nbsp;&nbsp;Securities |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Available-for-sale securities |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Corporate bonds | Discounted cash flow method | Probability of default<br> Loss rate at the time of default | 0.0% - 8.1%<br> 28.8% - 99.7% | 0.4%<br> 74.6% |

---

\* Those issued to "Bankrupt", "Defacto Bankrupt" and "In Danger of Bankruptcy," are excluded from "Range of valuation input" and "Weighted average."

&nbsp;&nbsp;&nbsp;&nbsp;(2) Adjustment sheet from beginning balance to ending balance as of period, and net unrealized gains (losses) recognized as gains (losses) for the period (March 31, 2022)

---

| | | |
|:---|:---|:---|
|  |  | (Millions of yen) |
|  |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Securities<br> Available-for-sale securities<br> Corporate bonds |
|  |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Securities<br> Available-for-sale securities<br> Corporate bonds |
| &nbsp;&nbsp;Balance at the beginning of the period | &nbsp;&nbsp;Balance at the beginning of the period | &nbsp;&nbsp;48968 |
| &nbsp;&nbsp;Gains (losses) or other comprehensive income for the period | &nbsp;&nbsp;Recorded to gains (losses) for the period (\*1) | &nbsp;&nbsp;0 |
| &nbsp;&nbsp;Gains (losses) or other comprehensive income for the period | &nbsp;&nbsp;Recorded to other comprehensive income (\*2) | &nbsp;&nbsp;(128) |
| &nbsp;&nbsp;Purchase, sale, and settlement | &nbsp;&nbsp;Net amount of sale | &nbsp;&nbsp;13480 |
| &nbsp;&nbsp;Purchase, sale, and settlement | &nbsp;&nbsp;Net amount of purchase | &nbsp;&nbsp;(9297) |
| &nbsp;&nbsp;Purchase, sale, and settlement | &nbsp;&nbsp;Net amount of settlement | &nbsp;&nbsp;— |
| &nbsp;&nbsp;Transfer to fair values of Level 3 | &nbsp;&nbsp;Transfer to fair values of Level 3 | &nbsp;&nbsp;— |
| &nbsp;&nbsp;Transfer from fair values of Level 3 | &nbsp;&nbsp;Transfer from fair values of Level 3 | &nbsp;&nbsp;— |
| &nbsp;&nbsp;Balance at the end of the period | &nbsp;&nbsp;Balance at the end of the period | &nbsp;&nbsp;53022 |
| &nbsp;&nbsp;Unrealized gains (losses) on financial assets and liabilities held as of the consolidated balance sheet date among the amount recorded to gains (losses) for the period (\*1) | &nbsp;&nbsp;Unrealized gains (losses) on financial assets and liabilities held as of the consolidated balance sheet date among the amount recorded to gains (losses) for the period (\*1) | &nbsp;&nbsp;(290) |

---

\*1 Included in "Other ordinary income" and "Other ordinary expenses" in the consolidated statement of income.

\*2 Included in "Valuation difference on available-for-sale securities" under "Other comprehensive income" in the consolidated statement of comprehensive income.

&nbsp;&nbsp;&nbsp;&nbsp;(3) Explanation of the process of fair value measurement

In the Bank, the market middle office, which is the risk management section, have established policies and procedures related to the measurement of fair values, and according to these, the market back office measure the fair values. For the fair values, the validity of the valuation techniques and valuation inputs used in fair value measurement are verified by the market back office and front office. The results of the verification are reported to the market middle office every fiscal year, and the appropriateness of policies and procedures are ensured that related to the measurement of fair values.

In fair value measurement, valuation models in which the nature and characteristics of individual assets are most appropriately reflected are used. In addition, when quoted prices obtained from third parties are used, the validity of the prices is verified by appropriate methods such as confirmation of valuation techniques and used valuation inputs and comparison with the fair values of similar financial instruments.

&nbsp;&nbsp;&nbsp;&nbsp;(4) Explanation of the impact on fair values in the case where significant unobservable inputs are varied

Significant unobservable inputs used in calculating the fair value of corporate bonds are the probability of default and the loss given default rate. Each significant increase (decrease) in the default rate and the loss given default would be accompanied by a decrease (increase) of the fair values. The changes of the probability of default are generally accompanied by changes in the same direction as the assumptions of the loss given default rate.

(Securities)

In addition to "Securities" in the consolidated balance sheet, also presented are beneficial interests in trust investments within "Monetary claims bought," trading securities and other trading assets within "Trading account assets."

&nbsp;&nbsp;&nbsp;&nbsp;1. Securities for trading purposes (as of March 31, 2022)

  <u>Valuation difference included in income for the consolidated year ended March 31, 2022 (millions of yen)</u> <br> <u>Securities for trading purposes</u> <u>(2)</u>

&nbsp;&nbsp;&nbsp;&nbsp;2. Held-to-maturity debt securities (as of March 31, 2022)

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| | | | | |
|:---|:---|:---|:---|:---|
| | Category | Amount on consolidated balance sheet<br> (Millions of yen) | Fair value<br> (Millions of yen) | Difference<br> (Millions of yen) |
| &nbsp;&nbsp;Securities for which the fair value exceeds the amount on consolidated balance sheet | &nbsp;&nbsp;Government bonds | 99 | 101 | 1 |
| &nbsp;&nbsp;Securities for which the fair value does not exceeds the amount on consolidated balance sheet | &nbsp;&nbsp;Government bonds |  |  |  |
| Total | Total | 99 | 101 | 1 |

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&nbsp;&nbsp;&nbsp;&nbsp;3. Available-for-sale securities (as of March 31, 2022)

---

| | | | | |
|:---|:---|:---|:---|:---|
| | Category | Amount on consolidated balance sheet<br> (Millions of yen) | Acquisition cost<br> (Millions of yen) | Difference<br> (Millions of yen) |
| &nbsp;&nbsp;Securities for which the amount on consolidated balance sheet exceeds the acquisition cost | &nbsp;&nbsp;Stocks | 488299 | 92329 | 395969 |
| &nbsp;&nbsp;Securities for which the amount on consolidated balance sheet exceeds the acquisition cost | &nbsp;&nbsp;Bonds | 550465 | 534855 | 15609 |
| &nbsp;&nbsp;Securities for which the amount on consolidated balance sheet exceeds the acquisition cost | &nbsp;&nbsp;&nbsp;&nbsp;Government bonds | 241606 | 227839 | 13767 |
| &nbsp;&nbsp;Securities for which the amount on consolidated balance sheet exceeds the acquisition cost | &nbsp;&nbsp;&nbsp;&nbsp;Local government bonds | 169747 | 168938 | 808 |
| &nbsp;&nbsp;Securities for which the amount on consolidated balance sheet exceeds the acquisition cost | &nbsp;&nbsp;&nbsp;&nbsp;Corporate bonds | 139110 | 138078 | 1032 |
| &nbsp;&nbsp;Securities for which the amount on consolidated balance sheet exceeds the acquisition cost | &nbsp;&nbsp;Others | 279538 | 259557 | 19980 |
| &nbsp;&nbsp;Securities for which the amount on consolidated balance sheet exceeds the acquisition cost | &nbsp;&nbsp;&nbsp;&nbsp;Foreign securities | 159251 | 154259 | 4991 |
| &nbsp;&nbsp;Securities for which the amount on consolidated balance sheet exceeds the acquisition cost | Subtotal | 1318302 | 886743 | 431559 |
| &nbsp;&nbsp;Securities for which the amount on consolidated balance sheet does not exceed the acquisition cost | &nbsp;&nbsp;Stocks | 4486 | 5096 | (609) |
| &nbsp;&nbsp;Securities for which the amount on consolidated balance sheet does not exceed the acquisition cost | &nbsp;&nbsp;Bonds | 1102992 | 1124192 | (21199) |
| &nbsp;&nbsp;Securities for which the amount on consolidated balance sheet does not exceed the acquisition cost | &nbsp;&nbsp;&nbsp;&nbsp;Government bonds | 578946 | 597720 | (18773) |
| &nbsp;&nbsp;Securities for which the amount on consolidated balance sheet does not exceed the acquisition cost | &nbsp;&nbsp;&nbsp;&nbsp;Local government bonds | 138466 | 138658 | (191) |
| &nbsp;&nbsp;Securities for which the amount on consolidated balance sheet does not exceed the acquisition cost | &nbsp;&nbsp;&nbsp;&nbsp;Corporate bonds | 385579 | 387813 | (2234) |
| &nbsp;&nbsp;Securities for which the amount on consolidated balance sheet does not exceed the acquisition cost | &nbsp;&nbsp;Others | 403601 | 426869 | (23267) |
| &nbsp;&nbsp;Securities for which the amount on consolidated balance sheet does not exceed the acquisition cost | &nbsp;&nbsp;&nbsp;&nbsp;Foreign securities | 271648 | 286501 | (14852) |
| &nbsp;&nbsp;Securities for which the amount on consolidated balance sheet does not exceed the acquisition cost | Subtotal | 1511081 | 1556157 | (45076) |
| Total | Total | 2829384 | 2442900 | 386483 |

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&nbsp;&nbsp;&nbsp;&nbsp;4. Available-for-sale securities sold during the consolidated fiscal year ended March 31, 2022 (from April 1, 2021 to March 31, 2022)

---

| | | | |
|:---|:---|:---|:---|
| | Proceeds<br> (Millions of yen) | Gain on sale<br> (Millions of yen) | Loss on sale<br> (Millions of yen) |
| &nbsp;&nbsp;Stocks | 20464 | 2714 | 1081 |
| &nbsp;&nbsp;Bonds | 534450 | 1089 | 3679 |
| &nbsp;&nbsp;&nbsp;Government bonds | 503746 | 964 | 3679 |
| &nbsp;&nbsp;&nbsp;Local government bonds | 29134 | 118 |  |
| &nbsp;&nbsp;&nbsp;Corporate bonds | 1569 | 6 |  |
| &nbsp;&nbsp;Others | 123964 | 4090 | 3847 |
| &nbsp;&nbsp;&nbsp;Foreign securities | 98482 | 2769 | 3697 |
| Total | 678879 | 7894 | 8608 |

---

(Revenue Recognition)

Information about Disaggregation of Revenue from Contracts with Customers (March 31, 2022)

(Millions of yen)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | Reportable segment | Reportable segment | Reportable segment | Others | Total |
| | Banking | Leasing | Total | Others | Total |
| &nbsp;&nbsp;Ordinary income |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Revenue from contracts with customers | 20459 |  | 20459 | 2009 | 22469 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other revenue | 94327 | 32527 | 126855 | 2024 | 128880 |
| &nbsp;&nbsp;&nbsp;&nbsp;Ordinary income from outside customers | 114786 | 32527 | 147314 | 4034 | 151349 |

---

(Per Share Data)

Net assets per share ¥1,856.25 <br> Profit attributable to owners of parent per share ¥54.46

(Stock Options, etc.)

&nbsp;&nbsp;&nbsp;&nbsp;1. Stock-based compensation expenses and account name for the consolidated fiscal year

General and administrative expenses ¥47 million

&nbsp;&nbsp;&nbsp;&nbsp;2. Details of stock options

---

| | | | |
|:---|:---|:---|:---|
| | 2011 Stock Option | 2012 Stock Option | 2013 Stock Option |
| &nbsp;&nbsp;Persons granted | &nbsp;&nbsp;8 directors | &nbsp;&nbsp;8 directors | &nbsp;&nbsp;7 directors |
| &nbsp;&nbsp;Number of options granted | Common stock<br> 150,000 shares | Common stock<br> 150,000 shares | Common stock<br> 129,300 shares |
| &nbsp;&nbsp;Date of grant | &nbsp;&nbsp;August 8, 2011 | &nbsp;&nbsp;August 6, 2012 | &nbsp;&nbsp;August 5, 2013 |
| &nbsp;&nbsp;Vesting conditions |  |  |  |
| &nbsp;&nbsp;Requisite service period |  |  |  |
| &nbsp;&nbsp;Exercise period | &nbsp;&nbsp;From August 9, 2011 to August 8, 2036 | &nbsp;&nbsp;From August 7, 2012 to August 6, 2037 | &nbsp;&nbsp;From August 6, 2013 to August 5, 2038 |

---

---

| | | | |
|:---|:---|:---|:---|
| | 2014 Stock Option | 2015 Stock Option | 2016 Stock Option |
| &nbsp;&nbsp;Persons granted | &nbsp;&nbsp;8 directors | &nbsp;&nbsp;8 directors | &nbsp;&nbsp;8 directors |
| &nbsp;&nbsp;Number of options granted | Common stock<br> 133,800 shares | Common stock<br> 78,900 shares | Common stock<br> 150,000 shares |
| &nbsp;&nbsp;Date of grant | &nbsp;&nbsp;July 22, 2014 | &nbsp;&nbsp;July 27, 2015 | &nbsp;&nbsp;July 25, 2016 |
| &nbsp;&nbsp;Vesting conditions |  |  |  |
| &nbsp;&nbsp;Requisite service period |  |  |  |
| &nbsp;&nbsp;Exercise period | &nbsp;&nbsp;From July 23, 2014 to July 22, 2039 | &nbsp;&nbsp;From July 28, 2015 to July 27, 2040 | &nbsp;&nbsp;From July 26, 2016 to July 25, 2041 |

---

---

| | | | |
|:---|:---|:---|:---|
| | 2017 Stock Option | 2018 Stock Option | 2019 Stock Option |
| &nbsp;&nbsp;Persons granted | &nbsp;&nbsp;7 directors | &nbsp;&nbsp;8 directors | &nbsp;&nbsp;8 directors |
| &nbsp;&nbsp;Number of options granted | Common stock<br> 109,600 shares | Common stock<br> 150,000 shares | Common stock<br> 150,000 shares |
| &nbsp;&nbsp;Date of grant | &nbsp;&nbsp;July 24, 2017 | &nbsp;&nbsp;July 23, 2018 | &nbsp;&nbsp;July 22, 2019 |
| &nbsp;&nbsp;Vesting conditions |  |  |  |
| &nbsp;&nbsp;Requisite service period |  |  |  |
| &nbsp;&nbsp;Exercise period | &nbsp;&nbsp;From July 25, 2017 to July 24, 2042 | &nbsp;&nbsp;From July 24, 2018 to July 23, 2043 | &nbsp;&nbsp;From July 23, 2019 to July 22, 2044 |

---

---

| | | |
|:---|:---|:---|
| | 2020 Stock Option | 2021 Stock Option |
| &nbsp;&nbsp;Persons granted | &nbsp;&nbsp;7 directors | &nbsp;&nbsp;7 directors |
| &nbsp;&nbsp;Number of options granted | Common stock<br> 150,000 shares | Common stock<br> 130,700 shares |
| &nbsp;&nbsp;Date of grant | &nbsp;&nbsp;July 20, 2020 | &nbsp;&nbsp;July 19, 2021 |
| &nbsp;&nbsp;Vesting conditions |  |  |
| &nbsp;&nbsp;Requisite service period |  |  |
| &nbsp;&nbsp;Exercise period | &nbsp;&nbsp;From July 21, 2020 to July 20, 2045 | &nbsp;&nbsp;From July 20, 2021 to July 19, 2046 |

---

&nbsp;&nbsp;&nbsp;&nbsp;3. Scale of stock options and relevant subsequent changes

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Number of Options Granted

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | 2011 Stock Option | 2012 Stock Option | 2013 Stock Option | 2014 Stock Option | 2015 Stock Option |
| &nbsp;&nbsp;Nonvested |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Outstanding at beginning of year | 15,200 shares | 15,200 shares | 28,800 shares | 26,900 shares | 23,500 shares |
| &nbsp;&nbsp;&nbsp;&nbsp;Granted |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Canceled |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Vested |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Outstanding at year end | 15,200 shares | 15,200 shares | 28,800 shares | 26,900 shares | 23,500 shares |
| &nbsp;&nbsp;Vested |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Outstanding at beginning of year |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Exercised |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Canceled |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Outstanding at year end |  |  |  |  |  |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | 2016 Stock Option | 2017 Stock Option | 2018 Stock Option | 2019 Stock Option | 2020 Stock Option |
| &nbsp;&nbsp;Nonvested |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Outstanding at beginning of year | 44,600 shares | 65,600 shares | 95,600 shares | 126,900 shares | 150,000 shares |
| &nbsp;&nbsp;&nbsp;&nbsp;Granted |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Canceled |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Vested |  | 23,600 shares | 29,200 shares | 29,600 shares | 17,500 shares |
| &nbsp;&nbsp;&nbsp;&nbsp;Outstanding at year end | 44,600 shares | 42,000 shares | 66,400 shares | 97,300 shares | 132,500 shares |
| &nbsp;&nbsp;Vested |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Outstanding at beginning of year |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Exercised |  | 23,600 shares | 29,200 shares | 29,600 shares | 17,500 shares |
| &nbsp;&nbsp;&nbsp;&nbsp;Canceled |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Outstanding at year end |  |  |  |  |  |

---

---

| | |
|:---|:---|
| | 2021 Stock Option |
| &nbsp;&nbsp;Nonvested |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Outstanding at beginning of year |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Granted | 130,700 shares |
| &nbsp;&nbsp;&nbsp;&nbsp;Canceled |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Vested |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Outstanding at year end | 130,700 shares |
| &nbsp;&nbsp;Vested |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Outstanding at beginning of year |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Exercised |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Canceled |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Outstanding at year end |  |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Unit Price

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | 2011 Stock Option | 2012 Stock Option | 2013 Stock Option | 2014 Stock Option | 2015 Stock Option | 2016 Stock Option |
| &nbsp;&nbsp;Exercise price | ¥1 | ¥1 | ¥1 | ¥1 | ¥1 | ¥1 |
| &nbsp;&nbsp;Average stock price at exercise |  |  |  |  |  |  |
| &nbsp;&nbsp;Fair value price at grant date | ¥374 | ¥410 | ¥602 | ¥628 | ¥927 | ¥455 |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | 2017 Stock Option | 2018 Stock Option | 2019 Stock Option | 2020 Stock Option | 2021 Stock Option |
| &nbsp;&nbsp;Exercise price | ¥1 | ¥1 | ¥1 | ¥1 | ¥1 |
| &nbsp;&nbsp;Average stock price at exercise | ¥369 | ¥369 | ¥369 | ¥369 |  |
| &nbsp;&nbsp;Fair value price at grant date | ¥689 | ¥443 | ¥413 | ¥391 | ¥336 |

---

&nbsp;&nbsp;&nbsp;&nbsp;4. Assumption Used to Measure Fair Value of Stock Option

The assumption used to measure the fair value of the 2021 Stock Option granted in the consolidated fiscal year ended March 31, 2022 is as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Valuation technique used: Black-Scholes option pricing model

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Key basic figures and assumption

---

| | |
|:---|:---|
|  | &nbsp;&nbsp;2021 Stock Option |
| &nbsp;&nbsp;Volatility of stock price (Note 1) | &nbsp;&nbsp;25.12% |
| &nbsp;&nbsp;Estimated remaining outstanding period (Note 2) | &nbsp;&nbsp;13 months |
| &nbsp;&nbsp;Estimated dividend (Note 3) | &nbsp;&nbsp;¥14 per share |
| &nbsp;&nbsp;Risk-free interest rate (Note 4) | &nbsp;&nbsp;(0.121%) |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Note) 1. Calculated based on stock prices for the period corresponding to the estimated remaining outstanding period of 13 months (from June 2020 to July 2021).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Estimated remaining outstanding period constitutes the period of the average term of office for past directors less the average term of office for incumbent directors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Dividends paid for the year ended March 31, 2021

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. Government bond yield for the estimated remaining outstanding period

&nbsp;&nbsp;&nbsp;&nbsp;5. Assumption Used to Measure Number of Exercised Stock Options

As it is difficult to reasonably measure the number of stock options to be canceled in the future in principle, the method to reflect the number of canceled stock options was applied.

## Exhibit 99.4

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The transactions pursuant to the share exchange described in this document involve securities of a Japanese company. The share exchange is subject to disclosure requirements of Japan that are different from those of the United States. Financial information included in this document, if any, was excerpted from financial statements prepared in accordance with foreign accounting standards that may not be comparable to the financial statements of United States companies. It may be difficult for you to enforce your rights and any claim you may have arising under the U.S. federal securities laws, since the issuer is located in Japan and some or all of its officers and directors reside outside of the United States. You may not be able to sue a Japanese company or its officers or directors in a Japanese court for violations of the U.S. securities laws. It may be difficult to compel a Japanese company and its affiliates to subject themselves to a U.S. court's judgment. You should be aware that the issuer may purchase securities otherwise than under the share exchange, such as in the open market or through privately negotiated purchases. This document has been translated from the Japanese-language original for reference purposes only. In the event of any conflict or discrepancy between this document and the Japanese-language original, the Japanese-language original shall prevail in all respects.

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Extraordinary Meeting of Shareholders Supplementary Documents To our shareholders with Voting Rights: Business Integration with The Hachijuni Bank, Ltd. THE NAGANO BANK, LTD. Securities Code: 8521

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"From competition to co-creation" **Table of Contents**

1. Outline of the Business Integration 2. Background of the Business Integration 3. Basic Principle and Purpose of the Business Integration 4. Expected Synergies from the Business Integration 5. Business Integration Q&A

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1. Outline of the Business Integration Hachijuni Bank and Nagano Bank (the "Banks") will integrate business in June 2023 and promote discussions and reviews towards early merger after the business integration. Format and Schedule of the Business Integration The Banks will execute the business integration (become a corporate group) on June 1, 2023, through a share exchange with Hachijuni Bank as the wholly-owning parent company and Nagano Bank as the wholly-owned subsidiary (Note). The Banks will promote discussions and reviews with the basic policy to merge promptly after the business integration. (Note) Subject to obtaining the approval by the Meeting of the General Shareholders of Nagano Bank and obtaining the necessary permits and approvals by relevant authorities for implementing the Business Integration. June 2023: Business integration (planned) The Hachijuni Bank, Ltd. The Nagano Bank, Ltd. The Hachijuni Bank, Ltd. Subsidiaries (12) The Nagano Bank, Ltd. Subsidiaries (2) Early merger after the business integration (planned) Surviving Bank after Merger Subsidiaries (14) January 20, 2023 : Execution of the Share Exchange Agreement and Business Integration Agreement March 24, 2023 (planned) : Extraordinary Meeting of the Shareholders of Nagano Bank May 30, 2023 (planned) : Delisting of Nagano Bank June 1, 2023 (planned) : Business integration (become wholly-owned parent and subsidiary) Share Exchange Ratio For each share of common stock of Nagano Bank, 2.54 shares of common stock of Hachijuni Bank will be allotted (Note). (Note) Please refer to the timely disclosure material submitted to the Tokyo Stock Exchange for details. Share Exchange Ratio The Hachijuni Bank, Ltd. The Nagano Bank, Ltd. 1 2.54 2

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2. Background of the Business Integration As the financial and economic environment surrounding the Banks is expected to become increasingly difficult due to factors including the prolonged low-interest rate environment, the Banks are expected to provide detailed functions and services, expand to new business fields, and develop technologies suited during and after the COVID-19 pandemic and for digitalization. Accordingly, the role of the Banks in the regional community will become increasingly important. The Banks concluded that the best option for contributing to the advancement of stakeholders is to join forces under the shared mission of regional development to build a sound management foundation, reinforce financial intermediation functions, and establish a sustainable business model. Therefore, the Banks agreed to execute the business integration. Management Philosophy of the Banks The Hachijuni Bank, Ltd. Stick firmly to sound banking principles, thereby contributing to the development of the regional community The Nagano Bank, Ltd. Do our best for the happiness and prosperity of our customers, shareholders, and employees Change in Environment Change in demographics from the decrease in birth rate and an aging population Diversified needs of customers due to the development of digital technologies and decarbonization Contraction of interest rate spread between deposits and loans caused by the prolonged low-interest rate environment Change in a competitive environment with entry from other industries Expectations for the Banks Stable management Provision of detailed functions and services Expansion to new business fields Corresponding to the transformation of the social structure during and after the COVID-19 pandemic Support for GX and DX initiatives The Banks with a common mission are to join forces to become a new banking group that can grow with the regional community 3

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3. Basic Principle and Purpose of the Business Integration The Banks will promote Business Integration under the assumption of equal footing, realize quick integration, and combine the expertise, relationships, and human assets of the Banks to transform into a bank that can grow with the region by providing better value to customers, the regional community, shareholders, employees, etc. Prompt integration of the Banks: "From competition to co-creation" Know-how Relationships Human resources Provide better value Customers Community Shareholders Employees, etc. 4

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4. Expected Synergies from the Business Integration (1) 1 Utilization of human capital and transformation of corporate culture The Banks will transform their corporate culture to respond to the change of times, with maximum utilization of human capital, the driver of our growth and development. Utilization of human capital and transformation of corporate culture Training Optimal resource allocation Diversity & Inclusion Attracting talent Joint events Resource exchange Joint training Career development Corporate culture that encourages taking on challenges Growth and satisfaction Grow with the regional community Respond to changing times Early integration Become a new banking group Initiatives to integrate human resources Reallocation to growth areas Workstyle reform / promotion of participation by diverse human resources Strengthening recruitment of new and experienced hires by enhancing the brand Support for autonomous career development External training/secondment to specialist areas Human resource operation with consideration to career and life planning 5

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4. Expected Synergies from the Business Integration (2) 2 Enhancement of financial intermediation functions and financial services By combining the Banks' expertise, data, and networks and utilizing the group functions, we will strengthen support for core business and promote the development and growth of regional industries. In addition, the Banks will improve the convenience of various services by expanding digital channels and services and providing services corresponding to their customers' needs. The Hachijuni Bank, Ltd. The Nagano Bank, Ltd. Provide financial services Provide diverse consulting products Provide services in new business fields Utilize group functions Utilize expertise and networks of the Banks Customers Regional community Corporate customers and business owners Provide financial services that contribute to regional industry vitalization Share management issues and support resolution/growth Support business succession and M&A, etc., according to the business lifecycle Development and growth of the regional community Support resolution of issues for the regional community, including with support for DX, GX, industry development, and support for entrepreneurship Resolve issues together with regional stakeholders in a comprehensive manner and co-create, etc. Retail customers Support asset formulation suited to the life stage Support succession of important assets Provide lifestyle-supporting services, etc. 6

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4. Expected Synergies from the Business Integration (3) 3 Enhancing expansion of business fields The Banks will contribute to the further development of regional industries and the improvement of residents' quality of life by consolidating our human assets, data, and expertise to enhance comprehensive financial services, while also expanding new business fields that resolve regional issues. Develop new business Expand business fields Diversify business Total financial service Deepen lifestyle supporting business Utilize human capital Provide fundamental services Regional trading companies Electricity business DX/GX consulting Asset management Utilization of branches, etc. Management support Equity finance Business succession / M&A Life design support Digital marketing 7

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4. Expected Synergies from the Business Integration (4) 4 Strengthening business foundation Consolidate headquarters and group functions Optimize branch network Share administration and IT Integrate headquarter organizations Consolidate group functions Integrate core systems/subsystems Shared administrative procedures Maintain convenience Optimize branch network Promote digitalization organizational operation Improve business productivity and raise efficiency of organizational operation Allocate generated management resources to growth areas Build sound management foundation that can continue contribution to regional community The Banks will build a sound business foundation that will enable continued contribution to the regional community by providing stable functions and services. This will be achieved through the promotion of improved business efficiency with the consolidation and elimination of redundant branches, etc., streamlining and integration of headquarter organizations, and sharing of systems and administration, etc. 8

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5. Business Integration Q&A (1) Q1 What is a share exchange? A1 Share exchange refers to organizational restructuring by exchanging all of the issued and outstanding shares of Company A with shares issued by Company B by which Company A becomes 100% subsidiary of Company B. In our case, Nagano Bank is Company A, and Hachijuni Bank is Company B. The "share exchange ratio" refers to the ratio applied to the exchange of shares. In our case, 2.54 shares of common stock of Hachijuni Bank are to be allocated to each share of common stock of Nagano Bank, as stated on page 2 of this document. Q2 What happens to the shares of Nagano Bank held by the shareholders of Nagano Bank? A2 For example, a shareholder holding 100 shares of common stock of Nagano Bank will receive 254 (100 x 2.54) shares of common stock of Hachijuni Bank. As a result of the business integration with the share exchange, Nagano Bank will become a wholly-owned subsidiary of Hachijuni Bank as of the effective date of the share exchange on June 1, 2023. Consequently, Nagano Bank will be delisted as of May 30, 2023. However, common stock of Hachijuni Bank will be allotted to the shareholders of Nagano Bank on June 1, 2023, according to the share exchange ratio. This will allow shareholders of Nagano Bank to continue trading the relevant shares on the Tokyo Stock Exchange, where Hachijuni Bank is listed. Shareholders of Nagano Bank are not required to take any action concerning the allocation of shares. The common stocks of Nagano Bank can be traded until May 29, 2023, the day before the delisting date (May 30, 2023). Q3 What happens to the FY2022 dividends of Nagano Bank? A3 We plan to pay a maximum of 25 yen per share dividend of surplus to shareholders of Nagano Bank as of March 31, 2023. Q4 What happens to the shareholder benefit program? A4 Nagano Bank's shareholder benefit program with the vesting date of March 31, 2023, is to be offered on the same terms as the previous fiscal year. 9

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5. Business Integration Q&A (2) Q5 What should I do if I receive shares constituting less than one unit as a result of the share exchange? A5 Shareholders of Nagano Bank who receive shares constituting less than one unit (100 shares) of Hachijuni Bank in the share exchange may not sell such shares constituting less than one unit on the Tokyo Stock Exchange or any other financial instruments exchange. Shareholders who will own such shares constituting less than one unit may request Hachijuni Bank to purchase the shares constituting less than one unit pursuant to the provisions of Article 192, Paragraph 1 of the Companies Act. In addition, such shareholders may request Hachijuni Bank to sell the number of shares needed to constitute one unit together with the shares constituting less than one unit held by the shareholder pursuant to the provisions of Article 194, Paragraph 1 of the Companies Act and the Articles of Incorporation of Hachijuni Bank, unless Hachijuni Bank does not have the number of treasury stock referred to in the request of sale. Please contact the securities company where you hold an account for detailed procedures. Q6 What should I do if I receive fractional shares as a result of the share exchange? A6 We will pay the amount corresponding to the fractional shares. In case fractional shares are included in the number of shares of Hachijuni Bank to be allotted in the share exchange, Hachijuni Bank shall pay monies in the amount corresponding to such factional share to the relevant shareholders pursuant to the provisions of Article 234 of the Companies Act and other applicable laws and regulations. Q7 Will existing deposits and loans be affected? A7 Our customers' deposits and loans will not be affected by the Business Integration. Transactions can be continued with Nagano Bank or Hachijuni Bank, where the account is held. In addition, the Banks will continue discussions and reviews to ensure that the planned merger will not inconvenience the customers. 10

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5. Business Integration Q&A (3) Contact Information 1. Shareholders are requested to contact their respective securities companies for confirmation of the number of shares held and for various procedures, including change of address, inheritance, and designation of bank account for the transfer of dividends. 2. Shareholders are requested to contact the administrator of the shareholder registry below for inquiries regarding shares other than the above, receipt of unclaimed dividends, etc. Contact Information (Nagano Bank shares) For questions regarding the administration of Nagano Bank shares, please contact the following: The administrator of shareholder registry for Nagano Bank will be changed to the Mitsubishi UFJ Trust and Banking Corporation from March 25, 2023. Until March 24, 2023 Stock Transfer Agency Department, Mizuho Trust & Banking Co., Ltd. Tel: 0120-288-324 (toll-free within Japan only) (Hours: 9:00 am to 5:00 pm (JST), except Saturdays, Sundays and Japanese national holidays) From March 25, 2023 Securities Agency Division, Mitsubishi UFJ Trust and Banking Corporation Tel: 0120-232-711 (Tokyo) (toll-free within Japan only) Tel: 0120-094-777 (Osaka) (toll-free within Japan only) (Hours: 9:00 am to 5:00 pm (JST), except Saturdays, Sundays and Japanese national holidays) 11