Hachijuni Bank : Consolidated Financial Results for the Year Ended March 31, 2025 （PDF：554KB）

Consolidated Financial Results for the Year Ended March 31, 2025

[Japanese GAAP]

May 9, 2025

Company name: The Hachijuni Bank, Ltd. Listing: Tokyo Stock Exchange

Securities code: 8359

URL: https://www.82bank.co.jp/ Representative: Masaki Matsushita,President

Inquiries: Takehiko Kimura,Executive Officer and Planning and Coordination Department Manager

Telephone: +81-26-227-1182

Scheduled date of annual general meeting of shareholders: June 20, 2025 Scheduled date to commence dividend payments: June 23, 2025 Scheduled date to file annual securities report: June 17, 2025

Trading accounts: Yes

Preparation of supplementary material on financial results: Yes Holding of financial results briefing: Yes

(Amounts and percentages listed in this document are rounded down to the nearest unit.)

1. Consolidated Financial Results for the Fiscal Year Ended March 31, 2025 (April 1, 2024 to March 31, 2025)

   1. Consolidated Operating Results (Percentages indicate year-on-year changes.)

      	Ordinary revenues		Ordinary profit		Profit attributable to owners of parent
      Fiscal year ended March 31, 2025 March 31, 2024	Millions of yen 254,193 212,201	% 19.7 7.1	Millions of yen 63,838 35,217	% 81.2 0.9	Millions of yen 47,982 37,071	% 29.4 53.6

      (Note) Comprehensive income:	Fiscal year ended March 31, 2025:	¥	(117,253) million [	-%]
      	Fiscal year ended March 31, 2024:	¥	207,392 million [	798.9%]

      	Basic earnings per share	Diluted earnings per share	Rate of return on equity	Ordinary profit to total assets ratio	Ordinary profit to ordinary revenues ratio
      Fiscal year ended	Yen	Yen	%	%	%
      March 31, 2025	101.23	101.16	4.6	0.4	25.1
      March 31, 2024	76.37	76.31	3.6	0.2	16.5

   2. Consolidated Financial Position

      	Total assets	Net assets	Capital adequacy ratio	Net assets per share
      As of March 31, 2025 March 31, 2024	Millions of yen 13,515,316 14,827,752	Millions of yen 967,658 1,118,275	% 7.1 7.5	Yen 2,087.32 2,309.80

      (Reference) Equity: As of March 31, 2025:	¥	963,361 million
      As of March 31, 2024:	¥	1,113,897 million

      (Note) "Capital adequacy ratio" is calculated by dividing (total equity at the end of the year − stock acquisition rights at the end of the year - noncontrolling interests at the end of the year) by total assets at the end of the year. "Capital adequacy ratio" herein is not the capital adequacy ratio specified by regulatory notices pertaining to the capital adequacy ratio.

   3. Consolidated Cash Flows

   	Cash flows from operating activities	Cash flows from investing activities	Cash flows from financing activities	Cash and cash equivalents at the end of period
   Fiscal year ended March 31, 2025 March 31, 2024	Millions of yen (639,483) 454,973	Millions of yen (7,544) (335,319)	Millions of yen (33,391) (19,637)	Millions of yen 2,999,723 3,680,144

2. Dividends

   	Annual dividends					Total dividends	Payout ratio (consolidated)	Dividends to net assets (consolidated)
   	1st quarter-end	2nd quarter-end	3rd quarter-end	Year-end	Total
   Fiscal year ended March 31, 2024 March 31, 2025	Yen - -	Yen 10.00 13.00	Yen - -	Yen 14.00 29.00	Yen 24.00 42.00	Millions of yen 11,667 19,587	% 31.4 41.4	% 1.1 1.9
   Fiscal year ending March 31, 2026 (Forecast)	-	20.00	-	30.00	50.00		46.1

   (Note) Breakdown of final dividend for the fiscal year ending March 31,2026 (forecast):

   Year-end dividend Ordinary dividend: 25.00 yen Commemorative dividend: 5.00 yen

3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2026 (April 1, 2025 to March 31, 2026)

(Percentages indicate year-on-year changes.)

* Notes:

1. Significant changes in the scope of consolidation during the period: None

2. Changes in accounting policies, changes in accounting estimates, and restatement

   1. Changes in accounting policies due to revisions to accounting standards and other regulations: Yes

   2. Changes in accounting policies due to other reasons: None

   3. Changes in accounting estimates: None

   4. Restatement: None

      (Note) For details, please see the attached document on page 12, " 3. (5) Notes to consolidated financial statements (Changes in accounting policies)"

3. Number of issued shares (common shares)

   1. Total number of issued shares at the end of the period (including treasury shares): March 31, 2025: 493,767,424 shares

      March 31, 2024: 513,767,424 shares

   2. Number of treasury shares at the end of the period:

      March 31, 2025: 32,238,561 shares

      March 31, 2024: 31,519,797 shares

   3. Average number of shares outstanding during the period:

Fiscal Year ended March 31, 2025: 473,974,220 shares

Fiscal Year ended March 31, 2024: 485,390,305 shares

(Reference) Overview of Non-consolidated Financial Results

1. Non-consolidated Financial Results for the Fiscal Year Ended March 31, 2025 (April 1, 2024 to March 31, 2025)

   1. Non-consolidated Operating Results (Percentages indicate year-on-year changes.)

      	Ordinary revenues		Ordinary profit		Net income
      Fiscal year ended March 31, 2025 March 31, 2024	Millions of yen 199,313 162,281	% 22.8 1.6	Millions of yen 59,934 36,249	% 65.3 19.8	Millions of yen 45,989 27,174	% 69.2 25.9

      	Basic earnings per share	Diluted earnings per share
      Fiscal year ended	Yen	Yen
      March 31, 2025	97.01	96.94
      March 31, 2024	55.97	55.93

   2. Non-consolidated Financial Position

   	Total assets	Net assets	Capital adequacy ratio	Net assets per share
   As of March 31, 2025 March 31, 2024	Millions of yen 12,532,911 13,711,395	Millions of yen 872,569 1,011,717	% 6.9 7.3	Yen 1,889.98 2,097.20

   (Reference) Equity: As of March 31, 2025: ¥ 872,418 million

   As of March 31, 2024: ¥ 1,011,575 million

   (Note) "Capital adequacy ratio" is calculated by dividing (total equity at the end of the year − stock acquisition rights at the end of the year) by total assets at the end of the year. "Capital adequacy ratio" herein is not the capital adequacy ratio specified by regulatory notices pertaining to the capital adequacy ratio.

2. Non-consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2026 (April 1, 2025 to March 31, 2026)

   (Percentages indicate year-on-year changes.)

   	Ordinary profit		Net income		Basic earnings per share
   	Millions of yen	%	Millions of yen	%	Yen
   Six months ending September 30, 2025	36,000	54.7	24,500	44.1	53.07
   Full year	72,500	20.9	49,000	6.5	106.15

   • Financial results reports are exempt from audit conducted by certified public accountants or an audit firm.

   • Proper use of earnings forecasts, and other special matters

     Forecasts are based on information available to the Bank as of the date of publication of this document and on certain assumptions deemed reasonable, and do not represent any guarantee of future performance. Actual results may differ materially from the forecasted figures due to various factors in the future.

     • Table of Contents of the Attached Materials

   1. Overview of Operating Results, etc 2

      1. Overview of operating results for the fiscal year under review 2

      2. Overview of financial position for the fiscal year under review 2

      3. Overview of cash flows for the fiscal year under review 3

      4. Future outlook 3

      5. Significant events related to entity's ability to continue as going concern, etc 3

   2. Basic Policy on Selection of Accounting Standards 3

   3. Consolidated Financial Statements and Major Notes 4

      1. Consolidated balance sheets 4

      2. Consolidated statements of income and comprehensive income 6

      3. Consolidated statements of changes in equity 8

      4. Consolidated statements of cash flows 10

      5. Notes to consolidated financial statements 12

         (Note on entity's ability to continue as going concern) 12

         (Changes in accounting policies) 12

         (Additional information) 12

         (Segment information, etc.) 13

         (Per share information) 15

         (Significant subsequent events) 15

   4. Non-consolidated Financial Statements 16

      1. Balance sheets 16

      2. Statements of income 19

      3. Statements of changes in equity 21

   * FY2024 Financial Results

   1. Overview of Operating Results, etc.

      1. Overview of operating results for the fiscal year under review The Bank's performance on a consolidated basis is as follows.

         Ordinary income increased by 41,992 million yen year on year to 254,193 million yen, mainly

         due to increases in interest income and other income, despite a decrease in other operating income.

         Ordinary expenses increased by 13,371 million yen year on year to 190,355 million yen due to factors such as increases in funding costs and general and administrative expenses, despite a decrease in other operating expenses.

         As a result, ordinary profit increased by 28,621 million yen year on year to 63,838 million yen.

         In the previous fiscal year, the Bank conducted a share exchange with The Nagano Bank, Ltd. (hereinafter, "The Nagano Bank") in which the Bank became the parent company and The Nagano Bank became its wholly-owned subsidiary and included The Nagano Bank, The Nagagin Lease Co., Ltd. (hereinafter, "Nagagin Lease"), and Nagano Card Co., Ltd. (hereinafter, "Nagano Card") in the scope of consolidation, subsequently recording 17,322 million yen in gain on bargain purchase under extraordinary gains. As a result, profit attributable to owners of parent increased by 10,910 million yen year on year to 47,982 million yen.

         The deemed acquisition date of the business combination with The Nagano Bank, Nagagin Lease, and Nagano Card is June 30, 2023, and the gains and losses of the three companies from April 1, 2023 to June 30, 2023 are not included in the consolidated operating results for the previous fiscal year.

         The Bank's non-consolidated performance, which accounted for the majority of the consolidated financial results, is as follows.

         Ordinary income increased by 37,032 million yen year on year to 199,313 million yen, mainly due to increases in interest income and gain on sale of equity securities, despite a decrease in gain on sale of bonds. In addition, ordinary expenses increased by 13,346 million yen year on year to 139,378 million yen, mainly due to increases in funding costs and general and administrative expenses.

         As a result, ordinary profit increased by 23,685 million yen year on year to 59,934 million yen and profit increased by 18,815 million yen year on year to 45,989 million yen.

         As for the Bank's performance by reportable segment, segment profit in the banking business increased by 28,292 million yen year on year to 61,685 million yen, and segment profit in the leasing business increased by 701 million yen year on year to 2,323 million yen.

      2. Overview of financial position for the fiscal year under review

         The Bank's financial position as of the end of the fiscal year under review is as follows. Total assets decreased by 1,312.4 billion yen from the end of the previous fiscal year to

         13,515.3 billion yen as a result of factors such as a decrease in deposits due from the Bank of Japan. Liabilities decreased by 1,161.8 billion yen from the end of the previous fiscal year to 12,547.6 billion yen due to factors such as decreases in call money and bills sold, and loans from the Bank of Japan. Net assets decreased by 150.6 billion yen from the end of the previous fiscal year to 967.6 billion yen.

         Other main accounts are as follows.

         Loans and bills discounted decreased by 319.6 billion yen during the period to a balance of 6,461.5 billion yen at the end of the fiscal year.

         Securities decreased by 236.3 billion yen during the period to a balance of 3,406.7 billion yen at the end of the fiscal year.

         Deposits increased by 111.4 billion yen during the period to a balance of 9,549.4 billion yen at the end of the fiscal year.

         The Bank's non-consolidated main accounts are as follows.

         Loans and bills discounted decreased by 177.3 billion yen during the period to a balance of 6,026.0 billion yen at the end of the fiscal year due to a decrease in funds to the central

         government, despite increases in funds to corporate entities and funds to individuals.

         Securities decreased by 138.2 billion yen during the period to a balance of 3,207.6 billion yen at the end of the fiscal year due to factors such as decreases in equity securities, corporate bonds, and local government bonds, despite an increase in national government bonds.

         Deposits increased by 226.1 billion yen during the period to a balance of 8,693.8 billion yen at the end of the fiscal year mainly centered around personal deposits and corporate deposits.

      3. Overview of cash flows for the fiscal year under review Consolidated cash flows are as follows.

         Net cash used in operating activities amounted to 639.4 billion yen (net cash provided in the

         previous fiscal year was 454.9 billion yen), as outflows from call money, etc. and a decrease in borrowed money exceeded inflows mainly from a decrease in loans and bills discounted.

         Net cash used in investing activities amounted to outflows 7.5 billion yen (net cash used in the previous fiscal year was 335.3 billion yen), as outflows purchases of investment securities exceeded proceeds from sales of investment securities and proceeds from maturities of investment securities

         Net cash used in financing activities amounted to 33.3 billion yen (net cash used in the previous fiscal year was 19.6 billion yen) due to payments to acquire treasury stock and dividends paid.

         As a result of the above, the balance of cash and cash equivalents at the end of the fiscal year decreased by 680.4 billion yen during the period to 2,999.7 billion yen.

      4. Future outlook

         For the fiscal year ending March 31, 2026, the Bank forecasts, on a consolidated basis, ordinary profit to increase by 11.1 billion yen to 75.0 billion yen and profit attributable to owners of parent to increase by 2.0 billion yen to 50.0 billion yen.

         On a non-consolidated basis, the Bank forecasts ordinary profit to increase by 12.5 billion yen to 72.5 billion yen and profit to increase by 3.0 billion yen to 49.0 billion yen.

      5. Significant events related to entity's ability to continue as going concern, etc. Not applicable.

   2. Basic Policy on Selection of Accounting Standards

   The Group applies Japanese GAAP as the accounting standards. The Bank is currently collecting information and conducting research based on the status of Japanese systems in regard to the application of International Financial Reporting Standards (IFRS).

3. Consolidated Financial Statements and Major Notes

   1. Consolidated balance sheets

      (Millions of yen)

      As of March 31, 2024 As of March 31, 2025

      Assets
      Cash and due from banks	3,717,670	3,027,055
      Call loans and bills bought	7,569	11,958
      Monetary claims bought	127,461	105,003
      Trading account assets	45,596	38,602
      Money held in trust	79,993	78,761
      Securities	3,643,073	3,406,740
      Loans and bills discounted	6,781,218	6,461,544
      Foreign exchanges	26,812	18,482
      Lease receivables and investments in leases	89,110	96,629
      Other assets	196,387	156,648
      Tangible fixed assets	37,329	38,628
      Buildings, net	13,015	12,260
      Land	11,493	11,913
      Leased assets, net	407	384
      Construction in progress	45	1,155
      Other tangible fixed assets	12,367	12,913
      Intangible fixed assets	4,458	4,076
      Software	3,791	3,428
      Leased assets	13	2
      Other intangible fixed assets	652	645
      Retirement benefit asset	70,388	64,335
      Deferred tax assets	1,652	1,698
      Customers' liabilities for acceptances and guarantees	53,936	60,149
      Allowance for loan losses	(54,905)	(55,000)
      Total assets	14,827,752	13,515,316
      Liabilities
      Deposits	9,437,959	9,549,428
      Negotiable certificates of deposit	55,194	218,447
      Call money and bills sold	1,179,536	593,483
      Securities sold under repurchase agreements	174,836	127,391
      Cash collateral received for securities lent	323,201	97,492
      Trading account liabilities	5,873	6,945
      Borrowed money	2,105,286	1,581,461
      Foreign exchanges	2,379	2,431
      Borrowed money from trust account	1,181	1,499
      Other liabilities	164,464	167,558
      Provision for share awards for directors (and other officers)	97	90
      Retirement benefit liability	12,142	11,233
      Provision for reimbursement of deposits	274	351
      Provision for contingent loss	1,738	1,719
      Reserves under special laws	15	15
      Provision for loss on cancellation of system contracts	2,287	2,058
      Deferred tax liabilities	189,069	125,899
      Acceptances and guarantees	53,936	60,149
      Total liabilities	13,709,476	12,547,657

      (Millions of yen)

      As of March 31, 2024 As of March 31, 2025

      Net assets
      Share capital	52,243	52,243
      Capital surplus	71,074	56,960
      Retained earnings	546,496	579,909
      Treasury shares	(20,713)	(25,397)
      Total shareholders' equity	649,099	663,715
      Valuation difference on available-for-sale securities	411,889	229,750
      Deferred gains or losses on hedges	27,116	51,676
      Remeasurements of defined benefit plans	25,792	18,218
      Total accumulated other comprehensive income	464,797	299,645
      Share acquisition rights	141	150
      Non-controlling interests	4,236	4,147
      Total net assets	1,118,275	967,658
      Total liabilities and net assets	14,827,752	13,515,316

   2. Consolidated statements of income and comprehensive income

      Consolidated Statements of Income
      		(Millions of yen)
      	For the fiscal year	For the fiscal year
      	ended March 31, 2024	ended March 31, 2025
      Ordinary income	212,201	254,193
      Interest income	124,761	148,962
      Interest on loans and discounts	64,732	72,700
      Interest and dividends on securities	55,430	65,671
      Interest on call loans and bills bought	308	373
      Interest on deposits with banks	2,544	8,386
      Other interest income	1,745	1,830
      Trust fees	12	11
      Fees and commissions	25,695	25,763
      Gain on trading account transactions	302	270
      Other ordinary income	47,471	42,428
      Other income	13,958	36,756
      Recoveries of written off receivables	2	1
      Other	13,955	36,755
      Ordinary expenses	176,983	190,355
      Interest expenses	37,014	44,711
      Interest on deposits	4,640	9,496
      Interest on negotiable certificates of deposit	4	241
      Interest on call money and bills sold	2,239	2,592
      Interest expenses on securities sold under repurchase agreements	7,168	7,731
      Interest expenses on cash collateral received for securities lent	3,773	3,171
      Interest on borrowings and rediscounts	6,509	4,714
      Other interest expenses	12,678	16,764
      Fees and commissions payments	7,245	8,015
      Loss on trading account transactions	2	-
      Other ordinary expenses	53,551	51,540
      General and administrative expenses	66,251	72,578
      Other expenses	12,919	13,508
      Provision of allowance for loan losses	1,130	1,120
      Other	11,788	12,388
      Ordinary profit	35,217	63,838
      Extraordinary income	17,524	1,692
      Gain on step acquisitions	70	-
      Gain on disposal of non-current assets	132	1,463
      Gain on bargain purchase	17,322	-
      Reversal of provision for loss on cancellation of system contracts	-	228
      Extraordinary losses	1,911	666
      Loss on disposal of non-current assets	261	145
      Impairment losses	1,646	521
      Provision of reserve for financial instruments transaction liabilities	3	-
      Profit before income taxes	50,829	64,863
      Income taxes - current	10,940	16,407
      Income taxes - deferred	2,851	356
      Total income taxes	13,791	16,764
      Profit	37,038	48,099
      Profit (loss) attributable to non-controlling interests	(33)	117
      Profit attributable to owners of parent	37,071	47,982

      Consolidated Statements of Comprehensive Income
      		(Millions of yen)
      	For the fiscal year ended March 31, 2024	For the fiscal year ended March 31, 2025
      Profit	37,038	48,099
      Other comprehensive income	170,353	(165,352)
      Valuation difference on available-for-sale securities	145,229	(182,335)
      Deferred gains or losses on hedges	10,810	24,560
      Remeasurements of defined benefit plans, net of tax	14,314	(7,578)
      Comprehensive income	207,392	(117,253)
      Comprehensive income attributable to

      Comprehensive income attributable to owners of parent

      206,441 (117,170)

      Comprehensive income attributable to non-controlling

      interests

      950

      (83)

   3. Consolidated statements of changes in equity

      For the fiscal year ended March 31, 2024

      (Millions of yen)

      	Shareholders' equity
      	Share capital	Capital surplus	Retained earnings	Treasury shares	Total shareholders' equity
      Balance at beginning of period	52,243	56,960	519,053	(10,848)	617,409
      Changes during period
      Dividends of surplus			(9,628)		(9,628)
      Profit attributable to owners of parent			37,071		37,071
      Increase by share exchanges		14,142		(77)	14,064
      Purchase of treasury shares				(10,003)	(10,003)
      Disposal of treasury shares		(29)		215	186
      Net changes in items other than shareholders' equity
      Total changes during period	-	14,113	27,442	(9,865)	31,690
      Balance at end of period	52,243	71,074	546,496	(20,713)	649,099

      	Accumulated other comprehensive income				Share acquisition rights	Noncontrolling interests	Total net assets
      	Valuation difference on available-for-sale securities	Deferred gains or losses on hedges	Remeasurements of defined benefit plans	Total accumulated other comprehen- sive income
      Balance at beginning of period	267,636	16,305	11,485	295,427	288	2,828	915,953
      Changes during period
      Dividends of surplus							(9,628)
      Profit attributable to owners of parent							37,071
      Increase by share exchanges							14,064
      Purchase of treasury shares							(10,003)
      Disposal of treasury shares							186
      Net changes in items other than shareholders' equity	144,253	10,810	14,306	169,370	(146)	1,407	170,630
      Total changes during period	144,253	10,810	14,306	169,370	(146)	1,407	202,321
      Balance at end of period	411,889	27,116	25,792	464,797	141	4,236	1,118,275

      For the fiscal year ended March 31, 2025

      (Millions of yen)

      	Shareholders' equity
      	Share capital	Capital surplus	Retained earnings	Treasury shares	Total shareholders' equity
      Balance at beginning of period	52,243	71,074	546,496	(20,713)	649,099
      Changes during period
      Dividends of surplus			(12,954)		(12,954)
      Profit attributable to owners of parent			47,982		47,982
      Purchase of treasury shares				(20,520)	(20,520)
      Disposal of treasury shares		28		80	108
      Cancellation of treasury shares		(14,141)	(1,615)	15,756	-
      Net changes in items other than shareholders' equity
      Total changes during period	-	(14,113)	33,412	(4,683)	14,615
      Balance at end of period	52,243	56,960	579,909	(25,397)	663,715

      	Accumulated other comprehensive income				Share acquisition rights	Noncontrolling interests	Total net assets
      	Valuation difference on available-for-sale securities	Deferred gains or losses on hedges	Remeasurements of defined benefit plans	Total accumulated other comprehen- sive income
      Balance at beginning of period	411,889	27,116	25,792	464,797	141	4,236	1,118,275
      Changes during period
      Dividends of surplus							(12,954)
      Profit attributable to owners of parent							47,982
      Purchase of treasury shares							(20,520)
      Disposal of treasury shares							108
      Cancellation of treasury shares							-
      Net changes in items other than shareholders' equity	(182,138)	24,560	(7,573)	(165,152)	8	(89)	(165,232)
      Total changes during period	(182,138)	24,560	(7,573)	(165,152)	8	(89)	(150,616)
      Balance at end of period	229,750	51,676	18,218	299,645	150	4,147	967,658

      (4) Consolidated statements of cash flows
      		(Millions of yen)
      	For the fiscal year ended March 31, 2024	For the fiscal year ended March 31, 2025
      Cash flows from operating activities
      Profit before income taxes	50,829	64,863
      Depreciation	5,965	6,186
      Impairment losses	1,646	521
      Gain on bargain purchase	(17,322)	-
      Increase (decrease) in allowance for loan losses	96	95
      Decrease (increase) in retirement benefit asset	(24,991)	6,052
      Increase (decrease) in retirement benefit liability	895	(909)
      Increase (decrease) in provision for reimbursement of (89) 76 deposits

      Increase (decrease) in provision for contingent loss 104 (18)

      Increase (decrease) in reserves under special laws 3 -

Increase (decrease) in provision for directors' stock

benefits

10 (6)

Net increase (decrease) in negotiable certificates of deposit

(23,939) 163,253

Net increase (decrease) in borrowed money

(excluding subordinated borrowings)

532,980

(523,825)

Net decrease (increase) in foreign exchanges - assets 6,685 8,329

Net increase (decrease) in foreign exchanges -

liabilities

871

52

Net decrease (increase) in lease receivables and

investments in leases

(4,192) (7,518)

(Millions of yen)

(5) Notes to consolidated financial statements

(Note on entity's ability to continue as going concern) Not applicable.

(Changes in accounting policies)

[Application of "Practical Solution on the Accounting for and Disclosure of Current Taxes Related to the Global Minimum Tax Rules"]

The Group has applied the "Practical Solution on the Accounting for and Disclosure of Current Taxes Related to the Global Minimum Tax Rules" (ASBJ Practical Solution No. 46, March 22, 2024) from the beginning of the fiscal year under review. These changes have no impact on the consolidated financial statements.

[Application of "Accounting Standard for Current Income Taxes," etc.]

The Group has applied the "Accounting Standard for Current Income Taxes" (ASBJ Statement No. 27, revised on October 28, 2022; hereinafter, the "Revised Accounting Standard of 2022"), etc. from the beginning of the fiscal year under review. Revisions to categories for recording income taxes (taxation on other comprehensive income) conform to the transitional treatment in the proviso of Paragraph 20-3 of the Revised Accounting Standard of 2022, and Paragraph 65-2 (2) of the "Guidance on Accounting Standard for Tax Effect Accounting" (ASBJ Guidance No. 28, revised on October 28, 2022; hereinafter, the "Revised Guidance of 2022"). These changes have no impact on the consolidated financial statements.

As for the revision related to the review of the treatment in the consolidated financial statements in the case of the deferral for tax purposes of gain or loss on sale arising from the sale of shares of subsidiaries, etc. between consolidated companies, the Bank has applied the Revised Guidance of 2022 from the beginning of the fiscal year under review. These changes have no impact on the consolidated financial statements.

(Additional information)

[Introduction of restricted stock compensation plan]

At the meeting of the Board of Directors held on May 10, 2024, the Bank resolved to introduce a restricted stock compensation plan (hereinafter, the "Plan") as a new compensation plan for the Bank's Directors (excluding Outside Directors; hereinafter, the "Eligible Director(s)") and Executive Officers who do not concurrently serve as Directors (hereinafter, collectively referred to as the "Eligible Director(s), etc."). The aim of this introduction is to raise the motivation and morale of the Eligible Directors, etc. to enhance business performance in the medium to long term and improve corporate value by sharing not only the benefits from an increase in the Bank's stock prices but also the risks associated with a drop in stock prices with shareholders. Furthermore, in accordance with the Plan, at the 141st Annual General Meeting of Shareholders held on June 21, 2024, approval was obtained to pay monetary receivables not exceeding 100 million yen per annum to Eligible Directors as compensation to be used as properties contributed for the acquisition of restricted stock (hereinafter, the "Restricted Stock Compensation"), as well as to issue or dispose of the Bank's common stock to an amount not exceeding 150,000 shares per annum, and to set the transfer restriction period for such Restricted Stock Compensation at thirty (30) years.

Pursuant to a resolution at the meeting of the Board of Directors held on June 21, 2024, 88,854 shares of

treasury stock were disposed of on July 19, 2024 as an allotment of restricted stock compensation.

(Segment information, etc.) [Segment information]

1. Description of reportable segments

   The Group's reportable segments consist of the banking business centered around the Bank and The Nagano Bank, and the leasing business developed by Hachijuni Lease Co., Ltd., Hachijuni Auto Lease Co., Ltd. and The Nagagin Lease Co., Ltd.

   In the banking business, overall strategies and plans related to deposit operations, loan operations, domestic and foreign currency exchange operations, debt guarantees, and credit card operations, etc. are formulated at the Bank's head office, and business activities are conducted by the Bank's head office, branches, and consolidated subsidiaries.

   The leasing business is involved in business related to finance leases and operating leases mainly for companies.

2. Calculation method for ordinary income, profit (loss), assets, liabilities and other items by reportable segment The accounting policies for the reportable business segments are generally consistent with the method used in

   the preparation of the consolidated financial statements. Profits of reportable segments are based on ordinary profit. Intersegment ordinary income is based on prevailing market prices.

3. Information about ordinary income, profit (loss), assets, liabilities and other items by reportable segment Fiscal year ended March 31, 2024 (from April 1, 2023 to March 31, 2024)

   (Millions of Yen)

   	Reportable segment			Other	Total	Reconciliations	Consolidated
   	Banking	Leasing	Total
   Ordinary income Outside customers Intersegment	175,194 602	33,689 351	208,884 953	3,316 30	212,201 983	- (983)	212,201 -
   Total	175,796	34,040	209,837	3,347	213,184	(983)	212,201
   Segment profit (loss)	33,392	1,621	35,014	201	35,215	1	35,217
   Segment assets	14,746,434	121,014	14,867,449	34,757	14,902,206	（74,454)	14,827,752
   Segment liabilities	13,684,813	76,757	13,761,571	18,862	13,780,433	（70,956)	13,709,476
   Other:
   Depreciation	3,813	2,097	5,911	53	5,965	-	5,965
   Interest income	124,727	49	124,777	199	124,976	(215)	124,761
   Interest expense	36,971	246	37,217	14	37,231	(217)	37,014
   Extraordinary gains	17,523	0	17,524	-	17,524	-	17,524
   Gain on bargain purchase	17,322	-	17,322	-	17,322	-	17,322
   Extraordinary losses	1,908	0	1,908	3	1,911	-	1,911
   Loss on disposal of assets	261	0	261	-	261	-	261
   Impairment losses of assets	1,646	0	1,646	0	1,646	-	1,646
   Income taxes	13,188	503	13,691	96	13,787	4	13,791
   Increase in property, plant, and equipment and intangible assets	4,785	3,855	8,641	137	8,778	-	8,778

   (Notes) 1. Ordinary income is listed in place of net sales reported by general corporations.

   1. The "Other" section is a business segment that is not included in the reportable segments and includes the securities business, the venture capital business, and other businesses.

   2. Details of reconciliation are as follows.

      1. Reconciliations for segment profit of 1 million yen are eliminations of intersegment transactions.

      2. Reconciliations for segment assets of (74,454) million yen are eliminations of intersegment transactions.

      3. Reconciliations for segment liabilities of (70,956) million yen are eliminations of intersegment transactions.

      4. Reconciliations for interest income of (215) million yen are eliminations of intersegment transactions.

      5. Reconciliations for interest expense of (217) million yen are eliminations of intersegment transactions.

      6. Reconciliations for income taxes of 4 million yen is due to the offsetting of claims and obligations from intersegment

         transactions.

   3. Segment profit is reconciled with the ordinary profit in the consolidated statement of income.

Fiscal year ended March 31, 2025 (from April 1, 2024 to March 31, 2025)

(Millions of Yen)

(Notes) 1. Ordinary income is listed in place of net sales reported by general corporations.

1. The "Other" section is a business segment that is not included in the reportable segments and includes the securities business, the venture capital business, and other businesses.

2. Details of reconciliation are as follows.

   1. Reconciliations for segment profit of 28 million yen are eliminations of intersegment transactions.

   2. Reconciliations for segment assets of (82,560) million yen are eliminations of intersegment transactions.

   3. Reconciliations for segment liabilities of (79,082) million yen are eliminations of intersegment transactions.

   4. Reconciliations for interest income of (341) million yen are eliminations of intersegment transactions.

   5. Reconciliations for interest expense of (343) million yen are eliminations of intersegment transactions.

   6. Reconciliations for income taxes of 13 million yen is due to the offsetting of claims and obligations from intersegment transactions.

3. Segment profit is reconciled with the ordinary profit in the consolidated statement of income.

(Per share information)

(Notes) 1. The basis for calculating net assets per share is as follows.

(Note) The number of shares of the Bank's common stock held by the Stock Benefit Trust for Directors of a subsidiary (96 thousand shares in the previous fiscal year and 72 thousand shares in the fiscal year under review) are deducted from the number of shares of common stock, which is the basis for calculating net assets per share.

2. The basis for calculating basic earnings per share and diluted earnings per share is as follows.

(Note) In the calculation of the average number of common stock outstanding during the period, which is the basis for calculating basic earnings per share and diluted earnings per share, the number of shares of the Bank's common stock held by the Stock Benefit Trust for Directors of a subsidiary (81 thousand shares in the previous fiscal year and 79 thousand shares in the fiscal year under review) are included in the number of shares of treasury stock deducted in the calculation therein.

(Significant subsequent events) Not applicable.

1. Non-consolidated Financial Statements

   1. Balance sheets

(Millions of yen)

As of March 31, 2024 As of March 31, 2025

As of March 31, 2024 As of March 31, 2025

As of March 31, 2024 As of March 31, 2025

Net assets

(Millions of yen)

(3) Statements of changes in equity

For the fiscal year ended March 31, 2024

(Millions of yen)

For the fiscal year ended March 31, 2025

(Millions of yen)

The Hachijuni Bank, Ltd.(8359)

ANNUAL FINANCIAL DATA FOR FISCAL YEAR 2024

(THE FISCAL YEAR ENDED MARCH 31, 2025)

*The capital ratio as of the end of March 2025 (Basel III standards) is currently being calculated and will be announced once it is finalized.