DAISHI REPORT 2013 · Daishi Bank is the oldest bank in Japan and the most influential financial institution in the prefecture. It was founded in 1873 as the Fourth National Bank

DAISHI REPORT 2013Year ended March 31, 2013

A bright future, with you

(As of March 31, 2013)

Profile (Consolidated)

Niigata Prefecture, Daishi Bank's target marketaerA

noitalupoP

PDG

Gross agricultural output

Industrial shipment per capital

Annual sales

Deposits ¥4,246 billion

Loans ¥2,666 billion

Total assets ¥4,895 billion

Credit rating A3 (Moody’s)

Head Office 1071-1, Higashiborimae-dori, 7-bancho, Chuo-ku, Niigata, Japan

Founded November 1873

Niigata, Our Target MarketIn Niigata Prefecture, basic technology indispensable formanufacturing is accumulating at an accelerated rate. Thisincludes mold-making, high-precision machining, casting,forging, and metal pressing. Niigata Prefecture is the numberone manufacturer in Japan of products such as metal table-ware and oil stoves.

With a prosperous agricultural industry centering on ricegrowing, it is a leading producer of rice and the number onemanufacturer of rice confectionery in Japan.

Contents13 Consolidated Statements of Operations

Consolidated Statements of Comprehensive Income

14 Consolidated Statements of Shareholders' Equity

15 Consolidated Statements of Cash Flows

16 Notes To Consolidated Financial Statements

30 Corporate Organization Directory Chart

31 Corporate Data

32 Company History

2 Message from the President

4 Financial Highlights

5 Financial Review

6 Corporate Social Responsibility

8 Compliance

9 Corporate Governance

10 Risk Management

1 Niigata, Our Target Market

Our 140th anniversary


12 Consolidated Balance Sheets

Air RoutesSea Routes

Keelung

Kaohsiung

To Singapore

To the East Coast of North America

Niigata

Tokyo

Guam

Sapporo

Fukuoka

NagoyaOsaka

Pusan

Seoul

Dalian

Shanghai

Qingdao

Hong Kong Naha

ShinkansenExpressway

Narita International Airport

Central Japan International Airport

Kansai International Airport

Niigata

JoetsuKoriyama

OmiyaTakasaki

Nagano

NagoyaKyoto

Nagaoka

Sendai

Tokyo

Osaka

Harbin

km2

thousands

billion

billion

billion

billion

12,583

2,347

¥8,423

¥275

¥4,300

¥7,185

( 5 th of 47 pref.)

(14 th of 47 pref.)

(14 th of 47 pref.)

( 9 th of 47 pref.)

(23 th of 47 pref.)

(14 th of 47 pref.)

3 Medium-Term Business Plan

Narita

ZarubinoVladivostok

Daishi Bank will celebrate its 140th anniversary in November 2013.Our success over the years has been due to the loyal patronage of our customers, shareholders and

local communities, and our executive officers and employees are very grateful to them all.The Bank's endeavors are based on a desire to show appreciation to our customers and local commu-

nities, to pave the way for upcoming generations, and to bring greater energy to our organization. In this way, we respond to the support we ourselves receive every day.

Anniversary motto and logoOur motto, "A bright future, with you" includes these thoughts: When each of our customers achieves a bright outcome, the Niigata region becomes brighter, and then our bank's future becomes brighter as well. The positive light emitted by customers, our region and ourselves joins to show the way to an even brighter future.

Our logo "140" represents the number of years since the founding of Daishi Bank, and the zero is illustrated with our emblem. This emblem, which has symbolized our bank since its founding, is an idealized depiction of the cross-section of a persimmon (a fruit that grows well in Niigata), and was chosen because it illustrates the bright, shining sun.

Based in Niigata Prefecture northwest of Tokyo, Daishi Bank is the oldest bank in Japanand the most influential financial institution in the prefecture. It was founded in 1873 as the Fourth National Bank of Japan.



Profile (Consolidated)

Niigata Prefecture, Daishi Bank's target marketaerA

noitalupoP

PDG

Gross agricultural output

Industrial shipment per capital

Annual sales

Deposits ¥4,246 billion

Loans ¥2,666 billion

Total assets ¥4,895 billion

Credit rating A3 (Moody’s)

Head Office 1071-1, Higashiborimae-dori, 7-bancho, Chuo-ku, Niigata, Japan

Founded November 1873

Niigata, Our Target MarketIn Niigata Prefecture, basic technology indispensable formanufacturing is accumulating at an accelerated rate. Thisincludes mold-making, high-precision machining, casting,forging, and metal pressing. Niigata Prefecture is the numberone manufacturer in Japan of products such as metal table-ware and oil stoves.

With a prosperous agricultural industry centering on ricegrowing, it is a leading producer of rice and the number onemanufacturer of rice confectionery in Japan.

Contents13 Consolidated Statements of Operations


14 Consolidated Statements of Shareholders' Equity

15 Consolidated Statements of Cash Flows

16 Notes To Consolidated Financial Statements

30 Corporate Organization Directory Chart

31 Corporate Data

32 Company History

2 Message from the President

4 Financial Highlights

5 Financial Review

6 Corporate Social Responsibility

8 Compliance

9 Corporate Governance

10 Risk Management

1 Niigata, Our Target Market



12 Consolidated Balance Sheets

Air RoutesSea Routes

Keelung

Kaohsiung

To Singapore

To the East Coast of North America

Niigata

Tokyo

Guam

Sapporo

Fukuoka

NagoyaOsaka

Pusan

Seoul

Dalian

Shanghai

Qingdao

Hong Kong Naha

ShinkansenExpressway

Narita International Airport

Central Japan International Airport

Kansai International Airport

Niigata

JoetsuKoriyama

OmiyaTakasaki

Nagano

NagoyaKyoto

Nagaoka

Sendai

Tokyo

Osaka

Harbin

km2

thousands

billion

billion

billion

billion

12,583

2,347

¥8,423

¥275

¥4,300

¥7,185

( 5 th of 47 pref.)

(14 th of 47 pref.)

(14 th of 47 pref.)

( 9 th of 47 pref.)

(23 th of 47 pref.)

(14 th of 47 pref.)

3 Medium-Term Business Plan

Narita

ZarubinoVladivostok

Daishi Bank will celebrate its 140th anniversary in November 2013.Our success over the years has been due to the loyal patronage of our customers, shareholders and

local communities, and our executive officers and employees are very grateful to them all.The Bank's endeavors are based on a desire to show appreciation to our customers and local commu-

nities, to pave the way for upcoming generations, and to bring greater energy to our organization. In this way, we respond to the support we ourselves receive every day.

Anniversary motto and logoOur motto, "A bright future, with you" includes these thoughts: When each of our customers achieves a bright outcome, the Niigata region becomes brighter, and then our bank's future becomes brighter as well. The positive light emitted by customers, our region and ourselves joins to show the way to an even brighter future.

Our logo "140" represents the number of years since the founding of Daishi Bank, and the zero is illustrated with our emblem. This emblem, which has symbolized our bank since its founding, is an idealized depiction of the cross-section of a persimmon (a fruit that grows well in Niigata), and was chosen because it illustrates the bright, shining sun.

Based in Niigata Prefecture northwest of Tokyo, Daishi Bank is the oldest bank in Japanand the most influential financial institution in the prefecture. It was founded in 1873 as the Fourth National Bank of Japan.


1THE DAISHI BANK 2013 ANNUAL REPORT

　Daishi Bank thanks you for your continued support.　Daishi Bank launched its Step-up 140 Medium-term Business Plan in FY2012. Under this plan, we aim to achieve lasting growth with local communi-ties based on relationships of trust established with our customers, while pursuing the following three strategies: revenue structure reform; full use of human resources and organizational strength; and enhancement of risk management.　Japan's declining population (due to a low birthrate and aging population) and economic globalization are expected to bring even more changes to Japan's social structure. This has led to forecasts of an increasingly challenging manage-ment environment for financial institutions, includ-ing greater competition among them.　To meet these challenges, we will work within the guidelines of our Step-up 140 Medium-term Business Plan to continue our traditional role as a financial intermediary, especially by facilitating the smooth supply of capital to customers, and to further strengthen our role as an information intermediary through our consulting services.

In these ways we intend to fulfill our obligation to contribute to the development of local economies and regions. In addition, to ensure the unwavering confidence that is given us, we will strengthen our corporate governance system, while promoting high ethical values and meeting our corporate social responsibility, especially in the area of work-ing toward solutions for environmental issues.

　Daishi Bank will celebrate its 140th anniversary in November 2013. Since its founding in 1873, it has grown in tandem with the development of local communities, and for this we will always feel grateful to our customers, local residents and shareholders for their continued support.　During our long history we have developed strong relationships of trust with our customers, and our corporate directors and employees are pleased to strive to meet customer expectations.　　We will execute our management philosophy by contributing to local communities and earning their appreciation and trust.　We thank you for your continued support.

Message from the President

Fujio Namiki President

Our Mission

1. To contribute to the region while being appreciated and trusted as Niigata Prefecture’s best bank

2. To be a bank of strong and resolute action in the face of the challenge of change3. To be a creative, resourceful, and dynamic bank

Daishi Bank celebrates 140 years since its founding in November 2013. For its Medium-Term Business Plan, the "Step-up 140" revenue structure reform program, we will aim to "achieve lasting growth" with customers and the local community based on relationships of trust forged with customers over our long history.

Period

Vision for the Program

Basic strategies

Benchmark Goals for Management

Conceptual Diagram

Revenue structure reform program Step-up 140

April 2012 to March 2015

Lasting growth based on relationships of trust formed with customers -A step-up beyond our 140th anniversary

Benchmarks for Management

Goal for the Final Fiscal Year of the Plan (FY2014)

Profitability Core Net Business Profit （Net Business Profit） Over ¥20 billion

Efficiency Core Gross Business Profit OHR （Gross Business Profit OHR） 68% level

Soundness Core Capital Ratio 10.5% or more

StrategyI

Revenue structure reform

StrategyII

StrategyIII

Fully realize human resources strength and organizational strength

Enhancement of risk management

Daishi Bank

Customers

Our MissionIdeal Form

Benchmark Goalsfor Management

StrategyI

StrategyIII

StrategyII


Relationships of Trust



Medium-Term Business Plan

2 THE DAISHI BANK 2013 ANNUAL REPORT

　Daishi Bank thanks you for your continued support.　Daishi Bank launched its Step-up 140 Medium-term Business Plan in FY2012. Under this plan, we aim to achieve lasting growth with local communi-ties based on relationships of trust established with our customers, while pursuing the following three strategies: revenue structure reform; full use of human resources and organizational strength; and enhancement of risk management.　Japan's declining population (due to a low birthrate and aging population) and economic globalization are expected to bring even more changes to Japan's social structure. This has led to forecasts of an increasingly challenging manage-ment environment for financial institutions, includ-ing greater competition among them.　To meet these challenges, we will work within the guidelines of our Step-up 140 Medium-term Business Plan to continue our traditional role as a financial intermediary, especially by facilitating the smooth supply of capital to customers, and to further strengthen our role as an information intermediary through our consulting services.

In these ways we intend to fulfill our obligation to contribute to the development of local economies and regions. In addition, to ensure the unwavering confidence that is given us, we will strengthen our corporate governance system, while promoting high ethical values and meeting our corporate social responsibility, especially in the area of work-ing toward solutions for environmental issues.

　Daishi Bank will celebrate its 140th anniversary in November 2013. Since its founding in 1873, it has grown in tandem with the development of local communities, and for this we will always feel grateful to our customers, local residents and shareholders for their continued support.　During our long history we have developed strong relationships of trust with our customers, and our corporate directors and employees are pleased to strive to meet customer expectations.　　We will execute our management philosophy by contributing to local communities and earning their appreciation and trust.　We thank you for your continued support.

Message from the President

Fujio Namiki President

Our Mission

1. To contribute to the region while being appreciated and trusted as Niigata Prefecture’s best bank

2. To be a bank of strong and resolute action in the face of the challenge of change3. To be a creative, resourceful, and dynamic bank

Daishi Bank celebrates 140 years since its founding in November 2013. For its Medium-Term Business Plan, the "Step-up 140" revenue structure reform program, we will aim to "achieve lasting growth" with customers and the local community based on relationships of trust forged with customers over our long history.

Period

Vision for the Program

Basic strategies

Benchmark Goals for Management

Conceptual Diagram

Revenue structure reform program Step-up 140

April 2012 to March 2015

Lasting growth based on relationships of trust formed with customers -A step-up beyond our 140th anniversary

Benchmarks for Management

Goal for the Final Fiscal Year of the Plan (FY2014)

Profitability Core Net Business Profit （Net Business Profit） Over ¥20 billion

Efficiency Core Gross Business Profit OHR （Gross Business Profit OHR） 68% level

Soundness Core Capital Ratio 10.5% or more

StrategyI


StrategyII

StrategyIII



Daishi Bank

Customers

Our MissionIdeal Form

Benchmark Goalsfor Management

StrategyI

StrategyIII

StrategyII


Relationships of Trust



Medium-Term Business Plan


(For the Years ended March 31)

Thousands ofU.S. DollarsMillions of Yen

Notes: (1) In this annual report, Japanese yen in millions are indicated with fractions omitted.

U.S. DollarsYen

Financial Highlights

IncomeInterest on Loans and

Discounts.....................................

Interest and Dividends on

Securities.....................................

Total Income...................................

ExpensesInterest on Deposits .......................

General and Administrative

Expenses.....................................

Total Expenses...............................

Net Income ...................................

AssetsSecurities........................................

Loans and Bills Discounted............

Total Assets ....................................

LiabilitiesDeposits .........................................

Total Liabilities................................

Net AssetsCapital Stock ..................................

Shareholders’ Equity ......................

Total Net Assets .............................

Amounts per Share of Capital StockNet Income.....................................

Cash Dividends..............................

(2) The translations of the Japanese yen amounts into U.S. dollars are using the prevailing exchange rate at March 31, 2013, which was ¥94.05 to U.S. $1.

(Consolidated)

2013

¥ 38,276

17,52295,306

2,123

47,16775,638

10,804

1,875,7102,666,4334,895,854

4,246,7724,614,953

32,776210,541280,900

30.267.00

2011

¥ 41,582

17,94498,918

4,921

49,88585,423

6,114

1,740,8332,524,1174,614,017

4,095,8214,377,666

32,776196,141236,351

16.68 7.00

2012

¥ 39,732

18,03199,182

2,851

49,03278,969

9,744

1,784,5162,540,7344,682,871

4,175,9704,428,750

32,776203,247254,120

27.08 7.00

2013

$ 406,983

186,3081,013,363

22,578

501,514804,236

114,876

19,943,75428,351,23852,055,869

45,154,41149,069,151

348,5062,238,6112,986,718

0.320.07


4.00

3.00

2.00

1.00

0

120

90

60

30

0

651

109

Caa

Ca

C

B

Ba

Baa

Aa

A

Aaa

Daishi Bank

A2

A3

A1

Daishi Bank

AA

AA--

AA+

D

CCC

CC

C

B

BB

BBB

AA

A

AAA

Balance of deposits

Balance of loans

Capital adequacy ratio

Credit rating

Nonperforming loans

2013

2013

2013

Financial Review (Non-Consolidated)

As of March 31, 2013

*Daishi Bank calculates capital adequacy ratioaccording to the new BIS standards.

The balance of deposits outstanding rose to ¥4,180.7 billion as of the end of March 2013, due primarily to an increase in deposits from customers in Niigata Prefecture.

In August 2012, the Japan Credit Rating Agency, Ltd. (JCR) upgraded Daishi Bank's senior long-term credit rating to AA-, from A+.In addition, Moody's has maintained the Bank's long-term deposit rating at A3.

At the end of March 2013, Daishi Bank's nonperforming loan balance disclosed under Japan's Financial Reconstruction Law was ¥73 billion, and its nonperforming loan ratio was 2.65%.Our head office and business offices have joined forces to support improvements in our clients' business affairs.

Daishi Bank has responded proactively to the financial needs of its customers, and as a result the balance of loans outstanding was ¥2,681.0 billion as of the end of March 2013.

While Daishi Bank is required to maintain a capital adequacy ratio of at least 4% by domestic standards, the ratio is over 10% on both a consolidated and non-consolidated basis; therefore, the Bank continues to remain highly financially sound.

Non-consolidated Consolidated

●JCR ●

(¥ Billion)

(¥ Billion)

5,000

4,000

3,000

2,000

0

3,000

2,000

1,000

0

Moody’s

8

12

(%)

4

2012

4,047 4,180

2011

3,982

2012

2,557 2,681

2011

2,541

2012

12.7311.85

2011

12.8011.96

(¥ Billion) (%)

Loans subject to bankruptcy or rehabilitation (left side)Nonperforming loan ratio (right side)

Loans requiring management Loans at risk

8273

3.152.65

2012

843.24

2011

12.4111.50

2013


Since FY2009, Daishi Bank has participated in forest promotion activities under the Niigata Afforestation Support Project implemented by the Niigata prefectural govern-ment. Our efforts have led to the creation of the Daishi-no-Mori (Daishi Forest) in Agamachi, Higashikanbara-gun,

Niigata Prefecture. The trees and other forms of vegetation establish a link with future generations in the region.

We offer financing at lower than normal interest rates to private individuals who install eco-friendly equipment in their homes or buy a hybrid vehicle. And, for corporate entities wishing to procure funds, we offer advantages under our Daishi Environmental Ranking Financial System, and privately placed Ecology Bonds for companies with an eco-friendly component.

Since November 2012, under the Daishi Solar Power Sun-Sun Plan, we have been offering special loans for projects that promote greater use of solar power.

Corporate Social Responsibility

Daishi-no-Mori (Daishi Forest) Creation

Products and services for environmental conservation

In March 2013, Daishi Bank was presented with the 2012 Award of Ecological Excellence* (eco-unit category) spon-sored by the Tokyo Chamber of Commerce and Industry, in recognition of our diverse activities for a better environ-ment.

*The award is given to an individual or group whose eco-friendly activities aim to encourage many people or groups to attain a higher level of knowledge of environmental conservation and act on that knowledge, and whose activities establish a model for such activities.

Daishi Bank given 2012 Award of Ecological Excellence

【Basic Philosophy】

. Compliance

. Reducing environmental impact

. Supporting customers through excellence in banking

. Activities to preserve the environment

To preserve the abundant and beautiful natural environment of our native Niigata Prefecture and achieve a sustainable society, the Daishi Bank Group will work together to support customers who are working to preserve the environment, actively initiate measures to preserve the regional environment as a corporate citizen, and work toward solutions for environmental issues.

We comply with all environmental laws and regulations, taking due precautions to minimize environmental impact at all times.

We establish targets for reduction of environmental impact and undertake continuous activities to improve the environment by reducing energy, conserving resources, and implementing recycling.

We develop environmentally friendly products and services to offer comprehensive financial services to support customers making efforts to preserve the environment.

All directors and employees take steps to deepen their awareness of environmental issues and practice environmental awareness in all aspects of operations.

Code ofEnvironmentalConduct

Daishi-no-Mori (Daishi Forest) Creation▲

Promotion of efforts under the Daishi Solar Power Sun-Sun Plan

▲

Award of Ecological Excellence Presentation Ceremony

▲

which have regional banks from all over Japan in atten-dance, and the Principles for Financial Action towards a Sustainable Society (Principles for Financial Action for the 21st Century), to which Daishi Bank became a signatory in December 2011.

We have formed the Daishi Bank Group Environmental Policy and take part in a wide range of environmental activi-ties. In addition to this, we are pushing forward with measures in line with the purpose of activities put forth in meetings held by the Save the Forest in Japan foundation,

Environmental Measures


The food product-related sector is a key industry in Niigata Prefecture, and to bring greater dynamism to this industry we established the Daishi Food Product Industry Promotion Fund in April 2013. The Fund promotes efforts conducted under the umbrella of the Niigata Food Project, which encourages the revitalization of industries that focus

on food. Daishi Bank joined with the Daishi Management Consulting Co., Ltd. and the Agriculture, Forestry and Fisheries Fund Corporation for Innovation, Value-chain and Expansion Japan, to invest in 6th industry entities that pro-mote tie-ups with agriculture, forestry, fisheries and other industries.

Daishi Bank is promoting the Niigata Food Project to sup-port the development of agriculture and food-related industries, which are economic mainstays in our region. The project helps food-related enterprises expand their sales channels and raise brand recognition. After opening the Daishi School of Tourism in 2011, we opened the Daishi School of Food Products in 2012. People taking courses at the second-named school take part in a practi-

cal program, learning food product planning, customer attraction methods, sales promotion systems, and more.

Establishment of the Daishi Food Product Industry Promotion Fund

Daishi Bank has signed comprehensive partnership agreements with Niigata University, Nagaoka University of Technology, and Niigata University of Pharmacy and Ap-plied Life Sciences. Through the agreements, we serve as

an intermediary connecting customers to those universi-ties, promote the resolution of technical difficulties faced by enterprises, and contribute to industrial revitalization in Niigata Prefecture.

Tie-ups with Industry, academic institutions and government entities

Niigata Food Project

A concert hall constructed within our head office in 1992 is available for classical music concerts and other events. The hall promotes culture and the arts for people in the region, and performers from Japan and abroad are invited to perform. We continue our practice of sponsor-

ing cheaply pr iced, high-quality performances of music in the Daishi Concert series.

Daishi Hall

In 1970, Daishi Bank began presenting tulips (our offi-cial flower) to social welfare facilities in Niigata Prefec-ture. We carry on that tradition to this day, making it our longest social contribution program. We currently present

tulips every year to more than 100 facilities -- potted plants in the spring, and bulbs in the fall.

Tulip Presentations

In May 2012, we opened up space for exhibits and busi-ness discussions on the first and second floors of our Tokyo Office. Called Bridge Niigata, the space serves as a base for corporations in the Tokyo metropolitan market. They can rent space there to organize product exhibitions promoting sales, and to conduct business discussions. By the end of March 2013, events had been held there 66 times (of these, 14 were events sponsored by Daishi Bank).

So far, a total of about 190,000 people have visited the events and more than 200 business discussions have been held, indicating other ways Daishi Bank is contributing to the pro-motion of business opportuni-ties.

Bridge Niigata -- Niigata's new connection to other entities, now active in Tokyo's Nihonbashi district

Regional Development Measures

Contributing to Regional Communities

Daishi School of Food Products▲

Presentation of tulips▲

▲Scene during a Daishi Concert series performance

Daishi School of Tourism▲

Bridge Niigata▲


Four basic principles

Compliance

1

Customer trust is a bank’s greatest asset. To ensure that we continue to earn and maintain the trust of our customers, we at Daishi Bank must improve the soundness of management and win the confidence of the community based on our corporate ethics. The cornerstone of this effort is compli-ance.

　At Daishi Bank, compliance is our top priority. Adhering to four basic principles, all directors and employees are work-ing every day to establish a management constitution that is firmly grounded in the spirit of compliance.

Guided by our mission and adhering to our corporate ethics, we are establishing a thor-ough compliance framework through the development and execution of a practical com-pliance program.

2In operations, all directors and employees understand both the letter and spirit of the code of ethics regulated by the Japanese Bankers Association. The directors and employees of Daishi Bank work together to apply the code of this charter with common principles of con-duct.

3Through training and awareness-raising exercises, we build and instill a strong ethical consciousness and compliance-oriented mindset in our employees. We also work hard to produce a rigorous system for the verification of bank processes, strengthening measures to prevent violations of the law and other problems.

4We appropriately verify, evaluate, and report the status of compliance and of the imple-mentation of our compliance program. We make every effort to discover issues early and solve them promptly, with effective measures for correction of problems and prevention of their recurrence.

The Compliance Committee, whose activities are linked closely with everyday operations, meets in principle once a month to discuss important issues and the status of efforts on compliance.　The Compliance Office, established within the Manage-ment Administration Division, plans compliance measures, provides valuable support to each division, and offers guidance on compliance issues to each branch.

The Compliance Manual is a set of standards distributed to all directors and employees. This manual is used for joint training exercises and compliance seminars within each branch and office.　Through development of an e-learning service and other training activities, we are broadening and deepening employee awareness of compliance issues.

Our Compliance Manual is distributed to all of our directors and employees, and is used in joint training sessions and in compliance seminars held in our offices and branches.　We are strengthening our practical training curriculum, which includes e-learning sessions to test knowledge and understanding of major relevant laws, regulations and ordinances, and also includes group discussions and case studies. These are helpful in broadening employee awareness of compliance issues, and ensuring they remain vigilant about such matters.

Compliance SystemDivisions

Training and Education

Education and Awareness Raising Activities

Fundamental Policies Toward Compliance


Basic Approach

Governance Framework

Corporate Governance

Daishi Bank aims to be a bank that satisfies all of its stake-holders, from customers to shareholders. On the financial front, we are bolstering the soundness of our asset portfolio and the profitability of our operations. We realize that strengthening and fulfilling our corporate governance

regime is vital for our management. At the same time, we are enhancing audition and monitoring of management, enforcing thorough and consistent compliance, and improv-ing transparency.

As of the end of March 2013, the Board of Directors consists of 7 directors (8 directors as of the end of June 2013). In addition to basic affairs relating to management and imple-menting important business decisions, the Board of Direc-tors monitors the status of business management by each director. For important affairs of business management based on basic policies decided by the Board of Directors management, conferences established under the Board of Directors are held in principle once a week. 　Furthermore, to accelerate management decision-making and strengthen execution capability, Daishi Bank adopts a system of “operating directors”. Under this system, the Board of Directors elects a group of operating directors, each of whom is responsible for operations in their sector. In addition, a number of specialized commit-tees are established, including the Risk Management Com-mittee, the Asset Liability Management (ALM) Committee, and the Compliance Committee. 　Daishi Bank also adopts a system of auditors. The Board of Corporate Auditors consists of two statutory auditors and three external auditors; the latter are chosen for their ability to offer advice and suggestions from a broad perspective, based on extensive knowledge and experience in profes-sional fields. The corporate auditors monitor and supervise the performance of the directors by attending board meet-ings and other important meetings as well as reviewing important documents. 　The statutory auditors constantly monitor the status of Daishi Bank’s management, reporting and deliberating on their findings at the Board of Corporate Auditors, which

meets in principle once a month. Moreover, the Board of Corporate Auditors works closely with accounting auditors and Daishi Bank’s internal auditing organization, the Audit and Inspection Division, to monitor accounting auditors and ensure an efficient auditing process. 　The Board of Corporate Auditors also submits a general audit report every year to the Board of Directors, who carefully deliberates on the opinions given before suggest-ing policies in response. In order to assist the professional duties of the auditors, a specialized staff member is assigned, supporting the auditing duties of the external auditors. 　The Audit and Inspection Division is directly controlled by the Board of Directors with independence and neutrality from the target groups. They verify the appropriateness of compliance systems and various risk management systems. Every year, the Audit and Inspection Division conducts a comprehensive operational, system, and asset audit of all branches, head offices, centers, and Daishi Bank group companies, based on an audition policy and auditing plan approved by the Board of Directors. 　The results of these audits are reported to the Board of Directors and are used to examine and follow up on improvements to matters indicated in internal audits.　When a decision on legal matters is required, Daishi Bank calls on the third-party services of advisory legal attorneys. In addition, we have been accepting proposals related to the improvement of business operations through financial auditing from the accounting inspector KPMG Azusa LLC at regular intervals.


Risk Management

The advance of financial deregulation and globalization,　coupled with rapid progress in the IT sphere, has signifi-cantly broadened the scope of products and services that banks can handle. Each time financial institutions widen their circle of operations, however, the risks they confront grow more varied and complex.

To support a sound management base for its operations, and to win the confidence of its customers, Daishi Bank is strengthening its risk-management framework. As ever, Daishi Bank recognizes the critical importance of assess-ing. Through auditing of this process, profits corresponding to the risk are stably guaranteed, and the planning of the appropriate distribution of management resources is accomplished as a basic policy of risk management.

Organizationally, under this basic policy, Daishi Bank assigns specific jurisdiction over responses to each type of risk to specific sectors, while establishing a Management Administration Division that understands and manages risk comprehensively, cutting across organizational boundaries.

The Audit and Inspection Division, which is separated from the sectors it audits, conducts rigorous audits of the general sweep of bank operations, testing the appropriateness and effectiveness of Daishi Bank’s internal-control provisions.

Daishi Bank has instituted a number of committees to oversee risk management. The Risk Management Commit-tee supervises risk management and advances organiza-tional restructuring for the entire bank. The ALM Committee measures and analyzes risk, with the aim of controlling risk and securing stable revenues, and the Compliance Com-mittee pursues business management that thoroughly complies with laws and regulations. These committees work in concert to address and resolve a wide range of risk-related issues.

Under the risk-management system described above, Daishi Bank maintains sound control of its assets and conducts effective risk allocation, ensuring that assets are invested prudently for the effective management of risk capital.

Credit risk is the risk that a company or individual to whom a bank has lent money and who may fail to repay some or all of the principal and interest owed, usually due to bank-ruptcy or other deterioration of financial circumstances, resulting in a loss incurred by the bank.

Daishi Bank implements effective operation/management of credit risks by adhering to our credit risk policy estab-lished based on credit risk management.

The Credit Supervision Division and Management Admin-istration Division, which have general control over credit risk management, implement regulations to manage credit risk and plan/execute activities to analyze, evaluate and improve them.

Completely autonomous from the business promotion section, the Loan Examination Division strictly inspects finances and properly deals with problem loans as well as ensures the assets in regards to business improvement

support activities relating to business deals for the entire bank.

To foster strict and accurate credit examination, autono-mous assessment of lending is carried out at two levels, with local branches and the Loan Examination Division each conducting separate investigations. In addition, auditing by the Audit and Inspection Division ensures the accuracy and appropriateness of credit examination and autonomous assessment.

Daishi Bank is currently working to strengthen and enhance its credit risk management functions by quantify-ing credit risk* and setting credit risk limits, etc. that suit our capital adequacy.

Market risk is the risk that assets held by a bank may fall in value due to fluctuations in market factors, causing a bank to incur a loss. Such market factors include domestic and foreign interest rates, valuations on securities and foreign exchange rates.

Each fiscal year Daishi Bank establishes an asset liability management (ALM) policy to determine the quanti-tative level of risk that we deem acceptable and ensure stable earnings. Based on this policy, we set risk-taking and loss limits in the market sector. In addition, an ALM Commit-tee meets once a month, in principle to discuss important issues in market risk management. If the market sections encounter a serious incident, this framework ensures that the details are reported to management immediately.

The handling of market transactions is separated

between market administration (the Treasury and Capital Markets Division), office administration (the Securities Operation Administration office, the International Division) and integrated risk administration (the Management Admin-istration Division). Daishi Bank is also constructing a frame-work of checks and balances to ensure that the auditing section can operate with maximum efficacy.

Daishi Bank is constantly working to strengthen and enhance its management of market risks. For example, we conduct daily VaR* measurements to ensure accurate assessment and analysis of risks associated with financial market fluctuations.

* VaR: Value at RiskA risk-management technique in which statistical methods are used to calculate the maximum loss that can occur within a given period.

*Quantification of credit risk The expression of the degree of risk in quantitative form, based on statistical treatment of data from various rating services.

Credit Risk Management

Market Risk Management

Risk Management Framework

Liquidity risk is the combination of two related types of risk: fundraising risk and market liquidity risk. Fundraising risk is the risk that the financial institution may be unable to secure the necessary funds, or may unavoidably be obliged to do so at unusually high rates of interest. Market liquidity risk is the risk that the only market transactions available may be those with disadvantageous terms and prices.

Daishi Bank stipulates its methods of risk management in the operation guidance for liquidity risk management, which are used to control risk according to circumstances. Fundraising risk in particular is a fundamental risk for finan-cial institutions. Daishi Bank recognizes that the essence of

effective liquidity risk management lies in supporting a sound management constitution and maintaining the confi-dence of customers and financial markets. The Treasuny and Capital Markets Division, The International Division handles cash flow issues by carefully managing cash positions, while the Management Administration Division, our liquidity risk management arm, conducts monitoring to maintain a smooth cash flow.

In addition, we stipulate a set of countermeasures, which spell out how to respond in the face of unexpected events, while taking steps to implement a framework to maintain a stable cash flow.

Operational Risk Management SystemOperational risk is the risk that Daishi Bank’s internal admin-istrative procedures, actions of directors or employees, or systems operations may be inappropriate, or that loss may occur due to external factors. At Daishi Bank, this risk consists of 1) administrative risk, 2) systems risk, and 3) other operational risk. The other operational risk is divided into seven subcategories and managed: 1) information-security risk, 2) legal risk, 3) personnel risk, 4) tangible-asset risk, 5) outsourcing risk, 6) reputational risk, and 7) other risk.

To manage operational risk appropriately, the sector with jurisdiction for each risk collects and analyzes data on

losses that represent the realization of the risks in question, and the sector conducts examination and evaluation of the status of controls designed to minimize said risks. This assessment of Daishi Bank’s own risk-control status is called control self-assessment (CSA). Key risk indicators (KRIs) are gathered and analyzed to assess latent risks.

Tasked with managing operational risk, the Management Administration Division oversees the status of management of these risks and reports regularly to senior management via the Risk Management Committee. Through this system, appropriate responses are framed to minimize risk.

In the event of disasters or other unforeseen events, Daishi Bank must be able to continue to function with minimal disruption to customers and to bank management. To prepare for such contingencies, Daishi Bank is building a robust system to maintain continuity of operations. One aspect of these preparations is the formation of the Basic Policy on Operational Continuity.

The Basic Policy on Operational Continuity stipulates a system of responses that vary according to the nature of the disruptive event. For example, a Disaster Response Division is established to implement prompt recovery and continuity of operations in the event of a major natural disas-ter or system interruption.

(As of July 1, 2013)

Types of risk

Management regulations

Sectors responsiblefor each type of risk

ALM CommitteeDeliberation and monitoring of important issues in the general

management of assets and liabilities

Risk Management Committee

Deliberation and monitoring of important risk-management issues

Compliance Committee

Deliberation and monitoring of important compliance issues

Executive Committee

Board of Directors

All risks (comprehensive risk management)Operation guidelines for risk management

Management Administration Division (in general charge of risk management)

Audi

t and

Insp

ectio

n D

ivis

ion

(inte

rnal

mon

itorin

g se

ctor

s)

Boar

d of

Cor

pora

te A

udito

rs

Exte

rnal

aud

its (a

uditi

ng fi

rm)

Offices, Head Office Divisions, Group companies Operating sectors

Operational risk

Other operational risks

Operation guidelines for operational-risk management

Credit risk

Credit risk policy

Market riskOperation

guidelines for market risk

management

Liquidity riskOperation

guidelines for liquidity risk

managementAdministrative

risk

Operation guidelines for clerical-risk

management

Systemrisk

Operation guidelines for information

security management

Information-security risk

Operation guidelines for information-security risk

management

Legal risk

Legal-risk management regulations

personnelrisk

Operation guidelines for personnel risk management

Tangible-assetrisk

Operation guidelines for tangible-asset

risk management

Outsourcingrisk

Operation guidelines for

outsourcing risk management

Reputationalrisk

Manual designated for external affairs

Credit Supervision

DivisionManagement Administration

Division

Systems Planning Division

Management Administration

Division


DivisionPersonnel Division

General Affairs

Division


Division

Planning and Coordination

Division

Operation Administration Division

Credit Supervision DivisionInternational Division

Management Administration Division

Liquidity Risk ManagementRisk Management

Systems for operational continuity


Risk Management

The advance of financial deregulation and globalization,　coupled with rapid progress in the IT sphere, has signifi-cantly broadened the scope of products and services that banks can handle. Each time financial institutions widen their circle of operations, however, the risks they confront grow more varied and complex.

To support a sound management base for its operations, and to win the confidence of its customers, Daishi Bank is strengthening its risk-management framework. As ever, Daishi Bank recognizes the critical importance of assess-ing. Through auditing of this process, profits corresponding to the risk are stably guaranteed, and the planning of the appropriate distribution of management resources is accomplished as a basic policy of risk management.

Organizationally, under this basic policy, Daishi Bank assigns specific jurisdiction over responses to each type of risk to specific sectors, while establishing a Management Administration Division that understands and manages risk comprehensively, cutting across organizational boundaries.

The Audit and Inspection Division, which is separated from the sectors it audits, conducts rigorous audits of the general sweep of bank operations, testing the appropriateness and effectiveness of Daishi Bank’s internal-control provisions.

Daishi Bank has instituted a number of committees to oversee risk management. The Risk Management Commit-tee supervises risk management and advances organiza-tional restructuring for the entire bank. The ALM Committee measures and analyzes risk, with the aim of controlling risk and securing stable revenues, and the Compliance Com-mittee pursues business management that thoroughly complies with laws and regulations. These committees work in concert to address and resolve a wide range of risk-related issues.

Under the risk-management system described above, Daishi Bank maintains sound control of its assets and conducts effective risk allocation, ensuring that assets are invested prudently for the effective management of risk capital.

Credit risk is the risk that a company or individual to whom a bank has lent money and who may fail to repay some or all of the principal and interest owed, usually due to bank-ruptcy or other deterioration of financial circumstances, resulting in a loss incurred by the bank.

Daishi Bank implements effective operation/management of credit risks by adhering to our credit risk policy estab-lished based on credit risk management.

The Credit Supervision Division and Management Admin-istration Division, which have general control over credit risk management, implement regulations to manage credit risk and plan/execute activities to analyze, evaluate and improve them.

Completely autonomous from the business promotion section, the Loan Examination Division strictly inspects finances and properly deals with problem loans as well as ensures the assets in regards to business improvement

support activities relating to business deals for the entire bank.

To foster strict and accurate credit examination, autono-mous assessment of lending is carried out at two levels, with local branches and the Loan Examination Division each conducting separate investigations. In addition, auditing by the Audit and Inspection Division ensures the accuracy and appropriateness of credit examination and autonomous assessment.

Daishi Bank is currently working to strengthen and enhance its credit risk management functions by quantify-ing credit risk* and setting credit risk limits, etc. that suit our capital adequacy.

Market risk is the risk that assets held by a bank may fall in value due to fluctuations in market factors, causing a bank to incur a loss. Such market factors include domestic and foreign interest rates, valuations on securities and foreign exchange rates.

Each fiscal year Daishi Bank establishes an asset liability management (ALM) policy to determine the quanti-tative level of risk that we deem acceptable and ensure stable earnings. Based on this policy, we set risk-taking and loss limits in the market sector. In addition, an ALM Commit-tee meets once a month, in principle to discuss important issues in market risk management. If the market sections encounter a serious incident, this framework ensures that the details are reported to management immediately.

The handling of market transactions is separated

between market administration (the Treasury and Capital Markets Division), office administration (the Securities Operation Administration office, the International Division) and integrated risk administration (the Management Admin-istration Division). Daishi Bank is also constructing a frame-work of checks and balances to ensure that the auditing section can operate with maximum efficacy.

Daishi Bank is constantly working to strengthen and enhance its management of market risks. For example, we conduct daily VaR* measurements to ensure accurate assessment and analysis of risks associated with financial market fluctuations.

* VaR: Value at RiskA risk-management technique in which statistical methods are used to calculate the maximum loss that can occur within a given period.

*Quantification of credit risk The expression of the degree of risk in quantitative form, based on statistical treatment of data from various rating services.

Credit Risk Management

Market Risk Management

Risk Management Framework

Liquidity risk is the combination of two related types of risk: fundraising risk and market liquidity risk. Fundraising risk is the risk that the financial institution may be unable to secure the necessary funds, or may unavoidably be obliged to do so at unusually high rates of interest. Market liquidity risk is the risk that the only market transactions available may be those with disadvantageous terms and prices.

Daishi Bank stipulates its methods of risk management in the operation guidance for liquidity risk management, which are used to control risk according to circumstances. Fundraising risk in particular is a fundamental risk for finan-cial institutions. Daishi Bank recognizes that the essence of

effective liquidity risk management lies in supporting a sound management constitution and maintaining the confi-dence of customers and financial markets. The Treasuny and Capital Markets Division, The International Division handles cash flow issues by carefully managing cash positions, while the Management Administration Division, our liquidity risk management arm, conducts monitoring to maintain a smooth cash flow.

In addition, we stipulate a set of countermeasures, which spell out how to respond in the face of unexpected events, while taking steps to implement a framework to maintain a stable cash flow.

Operational Risk Management SystemOperational risk is the risk that Daishi Bank’s internal admin-istrative procedures, actions of directors or employees, or systems operations may be inappropriate, or that loss may occur due to external factors. At Daishi Bank, this risk consists of 1) administrative risk, 2) systems risk, and 3) other operational risk. The other operational risk is divided into seven subcategories and managed: 1) information-security risk, 2) legal risk, 3) personnel risk, 4) tangible-asset risk, 5) outsourcing risk, 6) reputational risk, and 7) other risk.

To manage operational risk appropriately, the sector with jurisdiction for each risk collects and analyzes data on

losses that represent the realization of the risks in question, and the sector conducts examination and evaluation of the status of controls designed to minimize said risks. This assessment of Daishi Bank’s own risk-control status is called control self-assessment (CSA). Key risk indicators (KRIs) are gathered and analyzed to assess latent risks.

Tasked with managing operational risk, the Management Administration Division oversees the status of management of these risks and reports regularly to senior management via the Risk Management Committee. Through this system, appropriate responses are framed to minimize risk.

In the event of disasters or other unforeseen events, Daishi Bank must be able to continue to function with minimal disruption to customers and to bank management. To prepare for such contingencies, Daishi Bank is building a robust system to maintain continuity of operations. One aspect of these preparations is the formation of the Basic Policy on Operational Continuity.

The Basic Policy on Operational Continuity stipulates a system of responses that vary according to the nature of the disruptive event. For example, a Disaster Response Division is established to implement prompt recovery and continuity of operations in the event of a major natural disas-ter or system interruption.

(As of July 1, 2013)

Types of risk

Management regulations

Sectors responsiblefor each type of risk

ALM CommitteeDeliberation and monitoring of important issues in the general

management of assets and liabilities

Risk Management Committee

Deliberation and monitoring of important risk-management issues

Compliance Committee

Deliberation and monitoring of important compliance issues

Executive Committee

Board of Directors

All risks (comprehensive risk management)Operation guidelines for risk management

Management Administration Division (in general charge of risk management)

Audi

t and

Insp

ectio

n D

ivis

ion

(inte

rnal

mon

itorin

g se

ctor

s)

Boar

d of

Cor

pora

te A

udito

rs

Exte

rnal

aud

its (a

uditi

ng fi

rm)

Offices, Head Office Divisions, Group companies Operating sectors

Operational risk

Other operational risks

Operation guidelines for operational-risk management

Credit risk

Credit risk policy

Market riskOperation

guidelines for market risk

management

Liquidity riskOperation

guidelines for liquidity risk

managementAdministrative

risk

Operation guidelines for clerical-risk

management

Systemrisk

Operation guidelines for information

security management

Information-security risk

Operation guidelines for information-security risk

management

Legal risk

Legal-risk management regulations

personnelrisk

Operation guidelines for personnel risk management

Tangible-assetrisk

Operation guidelines for tangible-asset

risk management

Outsourcingrisk

Operation guidelines for

outsourcing risk management

Reputationalrisk

Manual designated for external affairs

Credit Supervision

DivisionManagement Administration

Division



Division


DivisionPersonnel Division

General Affairs

Division


Division

Planning and Coordination

Division


Credit Supervision DivisionInternational Division


Liquidity Risk ManagementRisk Management

Systems for operational continuity


Years ended March 31, 2012 and 2013

Note : The translations of the Japanese yen amounts into US dollars are using the prevailing exchange rate at March 31,2013, which was ￥94.05 to US $1.

Cash and due from banks Monetary claims bought Trading account securities Securities Loans and bills discounted Foreign exchanges Other assets Property,plant and equipment Intangible assets Deferred tax assets Customers' liabilities for acceptances and guarantees Allowance for loan losses Allowance for investment loss

Total Assets

$ 2,142,018 305,287

30,727 19,943,754 28,351,238

113,356 646,360 506,487

59,922 10,956

164,418 (213,626)

(5,031)

$ 52,055,869

¥ 200,479 27,325

2,977 1,784,516 2,540,734

11,059 67,666 49,120

2,960 5,805

13,796 (22,579)

(990)

¥ 4,682,871

2013

Thousands of U.S. Dollars

2012Millions of Yen

Assets

Deposits and Negotiable certificates of deposit Payables under securities lending transactions Borrowed money Foreign exchanges Other liabilities Provision for directors' bonuses Provision for retirement benefits Provision for directors' retirement benefits Provision for reimbursement of deposits Provision for contingent loss Reserves under special laws Deferred tax liabilities Deferred tax liabilities for land revaluation Negative goodwill Acceptances and guarantees

Liabilities

Total Liabilities

$ 45,154,411 999,287

1,967,234 1,319

504,160 780

107,378 313

4,261 10,767

97 83,012 71,632

75 164,418

$ 49,069,151

¥ 4,175,970 71,287

104,949 202

43,629 84

10,333 30

396 1,161

10 91

6,791 14

13,796

¥ 4,428,750

Capital stock Authorized-576,999 thousand shares, Issued-360,233 thousand sharesCapital surplus Retained earnings Treasury stock Shareholder'equityValuation difference on available-for-sale securities Deferred gains or losses on hedges Revaluation reserve for land Valuation and translation adjustmentsSubscription rights to shares Minority interests

Total Net assets

Net Assets

Total Liabilities and Net Assets

$ 348,506 198,322

1,711,435 (19,653)

2,238,611 448,892

(3,295)69,656

515,252 2,829

230,025 2,986,718

$ 52,055,869

¥ 32,776 18,652

153,558 (1,741)

203,247 25,260

(146)6,642

31,756 230

18,885 254,120

¥ 4,682,871

Consolidated Balance Sheets

¥ 201,456 28,712

2,889 1,875,710 2,666,433

10,661 60,790 47,635

5,635 1,030

15,463 (20,091)

(473)

¥ 4,895,854

2013

¥ 4,246,772 93,983

185,018 124

47,416 73

10,098 29

400 1,012

9 7,807 6,737

7 15,463

¥ 4,614,953

¥ 32,776 18,652

160,960 (1,848)

210,541 42,218

(309)6,551

48,459 266

21,633 280,900

¥ 4,895,854

Interest on loans and discountsInterest and dividends on securitiesOther interest income Fees and commissionsOther ordinary income Other income

Income

Total Income

$ 406,983 186,308

4,315 174,828 39,432

201,494

$ 1,013,363

¥ 39,732 18,031

425 16,077

3,751 21,165

¥ 99,182

2013


2012Millions of Yen

Interest on deposits Interest on borrowings and rediscountsOther interest expensesFees and commissions paymentsOther ordinary expenses General and administrative expenses Other expenses

Expenses

Total Expenses

$ 22,578 2,411 4,933

42,271 7,921

501,514 222,606

$ 804,236

¥ 2,851 212 467

3,789 1,554

49,032 21,061

¥ 78,969

Income before income taxes and minority interestsProvision for income taxes: Income taxes-current Income taxes-deferred

Net income before minority interestsMinority interests in income

Net Income

$ 209,126

50,613 29,381

129,132 14,255

$ 114,876

¥ 20,212

5,958 3,558

10,696 951

¥ 9,744

Amounts per share of capital stock:Ｎet income Cash dividends

$ 0.32 0.07

¥ 27.08 7.00

¥ 38,276 17,522

405 16,442 3,708

18,950

¥ 95,306

2013

¥ 2,123 226 463

3,975 745

47,167 20,936

¥ 75,638

¥ 19,668

4,760 2,763

12,144 1,340

¥ 10,804

¥ 30.26 7.00

sralloD .S.UneY


Consolidated Statements of Operations

Net income before minority interests Other comprehensive income Valuation difference on available-for-sale securities Deferred gains or losses on hedges Revaluation reserve for landTotal comprehensive income Comprehensive income attributable to shareholders of the parent Comprehensive income attributable to minority interests

$ 129,132 193,788 195,532

(1,743)––

322,920 293,439 29,481

¥ 10,696 10,177

9,427 (209)959

20,873 19,774

1,099

2013


2012Millions of Yen



¥ 12,144 18,225 18,389

(163)––

30,370 27,597 2,772

2013



Note : The translations of the Japanese yen amounts into US dollars are using the prevailing exchange rate at March 31,2013, which was ￥94.05 to US $1.

Cash and due from banks Monetary claims bought Trading account securities Securities Loans and bills discounted Foreign exchanges Other assets Property,plant and equipment Intangible assets Deferred tax assets Customers' liabilities for acceptances and guarantees Allowance for loan losses Allowance for investment loss

Total Assets

$ 2,142,018 305,287 30,727

19,943,754 28,351,238

113,356 646,360 506,487 59,922 10,956

164,418 (213,626)

(5,031)

$ 52,055,869

¥ 200,479 27,325 2,977

1,784,516 2,540,734

11,059 67,666 49,120 2,960 5,805

13,796 (22,579)

(990)

¥ 4,682,871

2013


2012Millions of Yen

Assets

Deposits and Negotiable certificates of deposit Payables under securities lending transactions Borrowed money Foreign exchanges Other liabilities Provision for directors' bonuses Provision for retirement benefits Provision for directors' retirement benefits Provision for reimbursement of deposits Provision for contingent loss Reserves under special laws Deferred tax liabilities Deferred tax liabilities for land revaluation Negative goodwill Acceptances and guarantees

Liabilities

Total Liabilities

$ 45,154,411 999,287

1,967,234 1,319

504,160 780

107,378 313

4,261 10,767

97 83,012 71,632

75 164,418

$ 49,069,151

¥ 4,175,970 71,287

104,949 202

43,629 84

10,333 30

396 1,161

10 91

6,791 14

13,796

¥ 4,428,750

Capital stock Authorized-576,999 thousand shares, Issued-360,233 thousand sharesCapital surplus Retained earnings Treasury stock Shareholder'equityValuation difference on available-for-sale securities Deferred gains or losses on hedges Revaluation reserve for land Valuation and translation adjustmentsSubscription rights to shares Minority interests

Total Net assets

Net Assets

Total Liabilities and Net Assets

$ 348,506 198,322

1,711,435 (19,653)

2,238,611 448,892

(3,295)69,656

515,252 2,829

230,025 2,986,718

$ 52,055,869

¥ 32,776 18,652

153,558 (1,741)

203,247 25,260

(146)6,642

31,756 230

18,885 254,120

¥ 4,682,871

Consolidated Balance Sheets

¥ 201,456 28,712 2,889

1,875,710 2,666,433

10,661 60,790 47,635 5,635 1,030

15,463 (20,091)

(473)

¥ 4,895,854

2013

¥ 4,246,772 93,983

185,018 124

47,416 73

10,098 29

400 1,012

9 7,807 6,737

7 15,463

¥ 4,614,953

¥ 32,776 18,652

160,960 (1,848)

210,541 42,218

(309)6,551

48,459 266

21,633 280,900

¥ 4,895,854

Interest on loans and discountsInterest and dividends on securitiesOther interest income Fees and commissionsOther ordinary income Other income

Income

Total Income

$ 406,983 186,308

4,315 174,828

39,432 201,494

$ 1,013,363

¥ 39,732 18,031

425 16,077

3,751 21,165

¥ 99,182

2013


2012Millions of Yen

Interest on deposits Interest on borrowings and rediscountsOther interest expensesFees and commissions paymentsOther ordinary expenses General and administrative expenses Other expenses

Expenses

Total Expenses

$ 22,578 2,411 4,933

42,271 7,921

501,514 222,606

$ 804,236

¥ 2,851 212 467

3,789 1,554

49,032 21,061

¥ 78,969

Income before income taxes and minority interestsProvision for income taxes: Income taxes-current Income taxes-deferred

Net income before minority interestsMinority interests in income

Net Income

$ 209,126

50,613 29,381

129,132 14,255

$ 114,876

¥ 20,212

5,958 3,558

10,696 951

¥ 9,744

Amounts per share of capital stock:Ｎet income Cash dividends

$ 0.32 0.07

¥ 27.08 7.00

¥ 38,276 17,522

405 16,442

3,708 18,950

¥ 95,306

2013

¥ 2,123 226 463

3,975 745

47,167 20,936

¥ 75,638

¥ 19,668

4,760 2,763

12,144 1,340

¥ 10,804

¥ 30.26 7.00

sralloD .S.UneY


Consolidated Statements of Operations

Net income before minority interests Other comprehensive income Valuation difference on available-for-sale securities Deferred gains or losses on hedges Revaluation reserve for landTotal comprehensive income Comprehensive income attributable to shareholders of the parent Comprehensive income attributable to minority interests

$ 129,132 193,788 195,532

(1,743)––

322,920 293,439

29,481

¥ 10,696 10,177

9,427 (209)959

20,873 19,774

1,099

2013


2012Millions of Yen



¥ 12,144 18,225 18,389

(163)––

30,370 27,597

2,772

2013


Consolidated Statements of Shareholders' EquityYears Ended March 31, 2012 and 2013

¥ 17,819 –– –– –– –– –– –– ––

1,066 1,066

¥ 6,246 –– –– –– –– –– –– ––

396 396

¥ 63 –– –– –– –– –– –– ––

(209)(209)

¥ 15,980 –– –– –– –– –– –– ––

9,279 9,279

¥ (2,134)–– ––

(1,003)343

1,052 –– –– ––

392

¥ 146,843 (2,519)9,744

–– (7)

(1,052)563 (12)––

6,715

¥ 18,655 –– –– –– (3)–– –– –– –– (3)

Minorityinterests

Valuationdifference on

available-for-sale

securities

Deferredgains or losses onhedges

Revaluationreservefor land

¥ 99 –– –– –– –– –– –– ––

130 130

Subscriptionrights to shares


Treasurystock

Retainedearnings

Capitalsurplus

Capitalstock

¥ 32,776 –– –– –– –– –– –– –– –– ––

367,579 –– –– –– ––

(3,810)–– –– –– ––

Shares ofCapital stock(Thousands)

Millions of Yen

Minorityinterests


available-for-sale

securities

Deferredgains or

losses onhedges


Treasurystock

Retainedearnings

Capitalsurplus

Capitalstock


Balance at March 31, 2011 Dividends from surplus Net income Purchase of treasury stock Disposal of treasury stock Retirement of treasury stock Reversal of revaluation reserve for land Change of scope of consolidation Net changes of items other than shareholders' equity Total changes of items during the period

¥ 18,885 –– –– –– –– –– ––

2,747 2,747

¥ 6,642 –– –– –– –– –– –– (91)(91)

¥ (146)–– –– –– –– –– ––

(163)(163)

¥ 25,260 –– –– –– –– –– ––

16,957 16,957

¥ (1,741)–– ––

(1,505)406 992 –– ––

(107)

¥ 153,558 (2,502)10,804

–– ––

(990)91 ––

7,401

¥ 18,652 –– –– ––

1 (1)–– ––

0

¥ 32,776 –– –– –– –– –– –– –– ––

363,769 –– –– –– ––

(3,536)–– –– ––

Balance at March 31, 2012 Dividends from surplus Net income Purchase of treasury stock Disposal of treasury stock Retirement of treasury stock Reversal of revaluation reserve for land Net changes of items other than shareholders' equity Total changes of items during the period

¥ 21,633 ¥ 6,551 ¥ (309)¥ 42,218 ¥ (1,848)¥ 160,960 ¥ 18,652 ¥ 32,776 360,233 Balance at March 31, 2013

$ 200,807 –– –– –– –– –– ––

29,217 29,217

$ 70,625 –– –– –– –– –– ––

(968)(968)

$ (1,552)–– –– –– –– –– ––

(1,743)(1,743)

$ 268,586 –– –– –– –– –– ––

180,305 180,305

$ (18,512)–– ––

(16,011)4,317

10,553 –– ––

(1,141)

$1,632,736 (26,613)114,876

–– ––

(10,533)968 ––

78,698

$ 198,322 –– –– –– 19

(19)–– ––

0

$ 348,506 –– –– –– –– –– –– –– ––


$ 230,025 $ 69,656

¥ 230 –– –– –– –– –– –– 35 35

¥ 266

$ 2,454 –– –– –– –– –– ––

375 375

$ 2,829 $ (3,295)$ 448,892 $ (19,653)$ 1,711,435 $ 198,322 $ 348,506 Balance at March 31, 2013


Consolidated Statements of Shareholders' EquityYears Ended March 31, 2012 and 2013

¥ 17,819 –– –– –– –– –– –– ––

1,066 1,066

¥ 6,246 –– –– –– –– –– –– ––

396 396

¥ 63 –– –– –– –– –– –– ––

(209)(209)

¥ 15,980 –– –– –– –– –– –– ––

9,279 9,279

¥ (2,134)–– ––

(1,003)343

1,052 –– –– ––

392

¥ 146,843 (2,519)9,744

–– (7)

(1,052)563 (12)––

6,715

¥ 18,655 –– –– –– (3)–– –– –– –– (3)

Minorityinterests


available-for-sale

securities

Deferredgains or losses onhedges


¥ 99 –– –– –– –– –– –– ––

130 130



Treasurystock

Retainedearnings

Capitalsurplus

Capitalstock

¥ 32,776 –– –– –– –– –– –– –– –– ––

367,579 –– –– –– ––

(3,810)–– –– –– ––

Shares ofCapital stock(Thousands)

Millions of Yen

Minorityinterests


available-for-sale

securities

Deferredgains or

losses onhedges


Treasurystock

Retainedearnings

Capitalsurplus

Capitalstock


Balance at March 31, 2011 Dividends from surplus Net income Purchase of treasury stock Disposal of treasury stock Retirement of treasury stock Reversal of revaluation reserve for land Change of scope of consolidation Net changes of items other than shareholders' equity Total changes of items during the period

¥ 18,885 –– –– –– –– –– ––

2,747 2,747

¥ 6,642 –– –– –– –– –– –– (91)(91)

¥ (146)–– –– –– –– –– ––

(163)(163)

¥ 25,260 –– –– –– –– –– ––

16,957 16,957

¥ (1,741)–– ––

(1,505)406 992 –– ––

(107)

¥ 153,558 (2,502)10,804

–– ––

(990)91 ––

7,401

¥ 18,652 –– –– ––

1 (1)–– ––

0

¥ 32,776 –– –– –– –– –– –– –– ––

363,769 –– –– –– ––

(3,536)–– –– ––


¥ 21,633 ¥ 6,551 ¥ (309)¥ 42,218 ¥ (1,848)¥ 160,960 ¥ 18,652 ¥ 32,776 360,233 Balance at March 31, 2013

$ 200,807 –– –– –– –– –– ––

29,217 29,217

$ 70,625 –– –– –– –– –– ––

(968)(968)

$ (1,552)–– –– –– –– –– ––

(1,743)(1,743)

$ 268,586 –– –– –– –– –– ––

180,305 180,305

$ (18,512)–– ––

(16,011)4,317

10,553 –– ––

(1,141)

$1,632,736 (26,613)114,876

–– ––

(10,533)968 ––

78,698

$ 198,322 –– –– –– 19

(19)–– ––

0

$ 348,506 –– –– –– –– –– –– –– ––


$ 230,025 $ 69,656

¥ 230 –– –– –– –– –– –– 35 35

¥ 266

$ 2,454 –– –– –– –– –– ––

375 375

$ 2,829 $ (3,295)$ 448,892 $ (19,653)$ 1,711,435 $ 198,322 $ 348,506 Balance at March 31, 2013

Consolidated Statements of Cash FlowsYears ended March 31, 2012 and 2013

Net cash provided by (used in) operating activities:Income before income taxes and minority interestsAdjustments to reconcile income before provision for income taxesand minority interests to net cash provided by operating activities: Depreciation and amortization Impairment loss Amortization of negative goodwill Increase (decrease) in allowance for loan losses Increase (decrease) in allowance for investment losses Increase (decrease) in provision for contingent loss Increase (decrease) in provision for directors' bonuses Increase (decrease) in provision for retirement benefits Increase (decrease) in provision for director's retirement benefits Increase (decrease) in provision for reimbursement of deposits Gain on fund management Financing expenses Loss (gain) related to securities Foreign exchange losses (gains) Loss (gain) on disposal of noncurrent assets Net decrease (increase) in trading account securities Net decrease (increase) in loans and bills discounted Net increase (decrease) in deposit Net increase (decrease) in negotiable certificates of deposit Net increase (decrease) in borrowed money (excluding subordinated borrowings) Net decrease (increase) in deposit (excluding deposit paid to Bank of Japan) Net decrease (increase) in call loans Net increase (decrease) in payables under securities lending transactions Net decrease (increase) in foreign exchanges-assets Net increase (decrease) in foreign exchanges-liabilities Proceeds from fund management Payments for finance Other, net

sub-totalIncome taxes paid

Total adjustments Net cash provided by (used in) operating activities

$ 209,126

38,315 1,876

(75)(26,456)

(5,504)(1,579)

(115)(2,497)

(8)49

(597,607)29,922 18,759

8 901 933

(1,336,516)1,431,600 (678,794)851,345

(3,159)(12,511)241,312

4,234 (833)

604,988 (43,638)(70,678)653,400 (68,529)375,744

$ 584,871

¥ 20,212

3,962 804

(7)(3,453)

(170)241

12 261

3 (15)

(58,189)3,531

967 0

615 876

(16,616)63,438 16,711

1,567 294

6,972 (21,333)

(2,704)3

57,552 (5,787)4,965

74,718 (5,147)49,358

¥ 69,570

2013


2012Millions of Yen

Effect of exchange rate change on cash and cash equivalentsNet increase (decrease) in cash and cash equivalentsCash and cash equivalents at beginning of the year

Cash and cash equivalents at the end of the year

(8)7,229

2,125,139

$ 2,132,369

(0)24,982

174,886

¥ 199,869

Net cash provided by (used in) financing activities:Decrease in subordinated borrowingsCash dividends paidCash dividends paid to minority shareholdersPurchase of treasury stockProceeds from sales of treasury stock

Net cash provided by (used in) financing activities

–– (26,613)

(254)(16,011)

3,325

$ (39,553)

(3,000)(2,519)

(23)(1,003)

323

¥ (6,222)

Net cash provided by (used in) investment activities:Purchase of short-term investment securitiesProceeds from sales of short-term investment securitiesProceeds from redemption of securitiesPurchase of property, plant and equipmentPurchase of intangible assetsProceeds from sales of property, plant and equipmentProceeds from sales of intangible assets

Net cash provided by (used in) investment activities:

(5,584,849)3,048,102 2,052,083

(18,582)(38,994)

4,159 0

$ (538,079)

(580,471)416,045 128,419

(2,480)(552)674

0

¥ (38,365)

¥ 19,668

3,603 176

(7)(2,488)

(517)(148)

(10)(234)

(0)4

(56,204)2,814 1,764

0 84 87

(125,699)134,642 (63,840)80,069

(297)(1,176)22,695

398 (78)

56,899 (4,104)(6,647)61,452 (6,445)35,338

¥ 55,007

2013

(0)679

199,869

¥ 200,549

–– (2,502)

(23)(1,505)

312

¥ (3,720)

(525,255)286,674 192,998

(1,747)(3,667)

391 0

¥ (50,606)


Notes To Consolidated Financial StatementsMarch 31, 2012 and 2013

1. Basis of presenting consolidated financial statements

The Daishi Bank, Ltd., (the “Bank”) and its consolidated domestic subsidiaries maintain their official accounting records in Japanese yen in accordance with the provisions set forth in the Japanese Corporation Law, the Bank Law of Japan, and the Financial Instruments and Exchange Law, and in conformity with accounting principles and practices generally accepted in Japan (“Japanese GAAP”). Certain accounting principles and practices generally accepted in Japan are different from International Financial Reporting Standards and standards in other countries in certain respects as to application and disclosure requirements. Accordingly, the accompanying consolidated financial statements are intended for use by those who are informed about Japanese accounting principles and practices.

The accompanying consolidated financial statements have been restructured and translated into English with some expanded descriptions and the inclusion of consolidated statements of stockholders’ equity from the consolidated financial statements of the Bank which were prepared in accordance with Japanese GAAP and filed with the appropriate Local Finance Bureau of the Ministry of Finance as required by the Financial Instruments and Exchange Law. Some supple-mentary information included in the statutory Japanese language consolidated financial statements, but not required for fair presentation, is not presented in the accompanying consolidated financial statements.

Amounts less than one million yen have been omitted. As a result, the totals in Japanese yen shown in the financial statements do not necessarily agree with the sum of the individual amounts.

The translations of the Japanese yen amounts into U.S.Dollars are included solely for the convenience of the readers,using the prevailing exchange rate on March 31, 2013, which was ¥94.05 to U.S. $1. These convenience translations should not be construed as representations that the Japanese yen amounts have been, could have been, or could in the future be converted into U.S. dollars at this or any other rate of exchange.

2. Significant accounting policies ConsolidationThe consolidated financial statements include the accounts of the Bank and all of its significant subsidiaries (together, the“Group”).The number of consolidated subsidiaries as of March 31,2013 and 2012 was 7.All significant intercompany balances and transactions have been eliminated.

Cash and cash equivalents In preparing the consolidated statements of cash flows, cash and due from THE BANK OF JAPAN are considered to be cash and cash equivalents.

Trading account securities The Bank’s trading account securities are stated at fair market value, and unrealized gains or losses are recognized in the consolidated statements of income.

Realized gains or losses on sale of such securities are

primarily computed using the moving-average cost.

SecuritiesAccording to the Japanese Accounting Standards for Financial Instruments, securities are classified as follows based on their intention of holdings: (a) securities held for trading purposes(hereafter, "trading securities"), (b) debt securities intended to be held to maturity (hereafter, "held-to-maturity debt securities"),(c) equity securities issued by subsidiaries and affiliated companies, and (d) for all other securities that are not classified in any of the above categories (hereafter, "available-for-sale securities")　　　

Trading securities are stated at fair market value. Gains and losses realized on disposal and unrealized gains and losses from market value fluctuations are recognized as gains or losses in the period of the change.

Held-to-maturity debt securities are stated at amortized cost.Equity securities issued by subsidiaries and affiliated

companies which are not consolidated or accounted for using the equity method are stated at moving-average cost.

Available-for-sale securities with available fair values are stated at fair value. Unrealized gains and unrealized losses on these securities are reported, net of applicable income taxes, as a separate component of net assets. Realized gains and losses on sale of such securities are computed using moving-average cost.

Other securities whose fair value is judged to be difficult to determine are stated at moving-average cost.

If there is significant decline in the market value of held-to-maturity debt securities, equity securities issued by unconsoli-dated subsidiaries and affiliated companies, and available-for-sale securities, such securities are stated at fair value and the difference between fair value and the carrying amount is recognized as loss in the period of the decline. If the fair value of equity securities issued by unconsolidated subsidiaries and affiliated companies not on the equity method is not readily available, such securities should be written down to net asset value with a corresponding charge in the income statement in the event that net asset value declines significantly.In these cases, such fair value or the net asset value will be the carrying amount of the securities at the beginning of the next year.

DerivativesDerivative financial instruments are stated at fair value and changes in the fair value are recognized as gains or losses unless derivative financial instruments are used for hedging purposes.

Property, plant and equipment (excluding lease assets)Property, plant and equipment are stated at cost less accumu-lated depreciation except for certain revalued land used for business operations as explained in Note 14.

Depreciation of property, plant and equipment is computed using the declining-balance method at rates based on the estimated useful lives of respective assets. The estimated useful lives of major items are as follows: Buildings; 10 – 50 years Others; 2 – 20 years(Modification of an accounting policy that involved difficulties in differentiating changes in accounting estimates)

In compliance with amendments to the Corporation Tax Act, beginning this consolidated fiscal year Daishi Bank and its consolidated subsidiaries have changed their method of calculating the depreciation of tangible fixed assets acquired after April 1, 2012 to a method that conforms with the said amended act.

The effect of this change is negligible.

Intangible assets (excluding lease assets)Intangible assets are amortized on a straight-line depreciation.

Software for internal use is amortized on a straight-line basis over its estimated useful life (principally 5 years).

Lease assetsAmong “property,plant and equipment” and “intangible assets”, lease assets relating to finance leases which do not transfer ownership to lessees are amortized on the straight-line method over the lease term. For residual value, residual value guaran-tees decided upon based on lease contracts are shown at the aforementioned residual value guarantee amount, others are shown as zero.

Foreign currency translation Assets and liabilities denominated in foreign currencies are translated into Japanese yen at the exchange rates prevailing on the balance sheet date.

Allowance for loan lossesFor loans to insolvent customers who are undergoing bankruptcy or other collection proceeding or in a similar financial condition, allowance for loan losses is provided in the full amount of such loans, excluding the portion that is estimated to be recoverable due to available security interests or guarantees.

For the unsecured and unguaranteed portions of loans to customers not presently in the above circumstances but for which there is a high probability of so becoming, the allowance for loan losses is provided for estimated unrecoverable amounts determined after evaluating the customer’s overall financial conditions.

For other loans, allowance for loan losses are provided based on the rate of the Bank’s actual loan losses in the past.

All branches and other business related sections evaluate all loans in accordance with the self-assessment rule, and their evaluations are audited by the asset audit section, which is independent from branches and other business related sections, and the evaluations are revised as required based on the audits.

Also, consolidated subsidiaries provide for an allowance for loan losses. It consists of the estimated uncollectible amount with respect to identified doubtful accounts and an amount calculated mainly using the rate of actual loan losses in the past.

Loans to insolvent customers who are undergoing bankruptcy or other collection proceedings or in a similar financial condition are stated net of estimated uncollectible amount equal to the full amount of such loans less the portion that is estimated to be recoverable due to available security interests or guarantees.

Such estimated uncollectible amounts directly deducted from receivables amounted to ¥21,730 million and ¥20,360 million ($216,490 thousand) at March 31, 2012 and 2013, respectively.

Provision for retirement benefitsThe Bank provides two types of post-employment benefit plans, funded lump-sum payment plans and funded non-contributory pension plans, under which all eligible employees are entitled to benefits based on the level of wages and salaries at the time of retirement or termination, length of service, and certain other factors.

Also, consolidated subsidiaries provide lump-sum payment plans and one of them provides cash balance plans.

The Bank contributed certain marketable equity securities to an employee retirement benefit trust.

Liabilities and expenses for employees’ retirement benefits are determined based on the amounts actuarially calculated using certain assumptions. The Bank and its consolidated subsidiaries provide reserve for employees’ severance and retirement benefits based on the estimated amounts of projected benefit obligation at the balance sheet date and the fair value of the plan assets at that date.

Prior service costs are recognized in profit and loss using the straight-line method over 10 years commencing with the year incurred.

Actuarial gains and losses are recognized in profit and loss using the straight-line method over 10 years commencing with the following period.

Allowance for investment lossAllowance for investment losses is provided for the estimated losses on investments based on the evaluation of the financial conditions of the investees.

Provision for directors’ retirement benefitsThe reserve for directors’ retirement benefits of the consoli-dated subsidiaries is appropriated in the amount of the portion of expected total retirement-benefit payment that is recognized as generated in the consolidated fiscal year under review, to provide for payment of retirement benefits to directors.

Provision for reimbursement of depositsReserves against refund of inactive bank accounts are prepared against repayment losses that may be incurred when the holders of inactive bank accounts with suspended liability appropriation demand repayment. These reserves are prepared in the amount of the estimated future repayment loss based on past repayment results.

Provision for directors’ bonusesProvision for directors’ bonuses is appropriated as the total amount of bonuses expected to be paid to directors within the current consolidated fiscal year.

Provision for contingent lossThe reserve for contingent liabilities is a reserve for unexpected or incidental losses not covered by the other reserves. Losses expected to occur in the future are estimated, and the amount deemed necessary is appropriated.

Reserves under the special lawsReserves under the special laws are reserves for financial products transaction liabilities in securities business consoli-dated subsidiaries, and in order to compensate for any losses


Notes To Consolidated Financial StatementsMarch 31, 2012 and 2013

1. Basis of presenting consolidated financial statements

The Daishi Bank, Ltd., (the “Bank”) and its consolidated domestic subsidiaries maintain their official accounting records in Japanese yen in accordance with the provisions set forth in the Japanese Corporation Law, the Bank Law of Japan, and the Financial Instruments and Exchange Law, and in conformity with accounting principles and practices generally accepted in Japan (“Japanese GAAP”). Certain accounting principles and practices generally accepted in Japan are different from International Financial Reporting Standards and standards in other countries in certain respects as to application and disclosure requirements. Accordingly, the accompanying consolidated financial statements are intended for use by those who are informed about Japanese accounting principles and practices.

The accompanying consolidated financial statements have been restructured and translated into English with some expanded descriptions and the inclusion of consolidated statements of stockholders’ equity from the consolidated financial statements of the Bank which were prepared in accordance with Japanese GAAP and filed with the appropriate Local Finance Bureau of the Ministry of Finance as required by the Financial Instruments and Exchange Law. Some supple-mentary information included in the statutory Japanese language consolidated financial statements, but not required for fair presentation, is not presented in the accompanying consolidated financial statements.

Amounts less than one million yen have been omitted. As a result, the totals in Japanese yen shown in the financial statements do not necessarily agree with the sum of the individual amounts.

The translations of the Japanese yen amounts into U.S.Dollars are included solely for the convenience of the readers,using the prevailing exchange rate on March 31, 2013, which was ¥94.05 to U.S. $1. These convenience translations should not be construed as representations that the Japanese yen amounts have been, could have been, or could in the future be converted into U.S. dollars at this or any other rate of exchange.

2. Significant accounting policies ConsolidationThe consolidated financial statements include the accounts of the Bank and all of its significant subsidiaries (together, the“Group”).The number of consolidated subsidiaries as of March 31,2013 and 2012 was 7.All significant intercompany balances and transactions have been eliminated.

Cash and cash equivalents In preparing the consolidated statements of cash flows, cash and due from THE BANK OF JAPAN are considered to be cash and cash equivalents.

Trading account securities The Bank’s trading account securities are stated at fair market value, and unrealized gains or losses are recognized in the consolidated statements of income.

Realized gains or losses on sale of such securities are

primarily computed using the moving-average cost.

SecuritiesAccording to the Japanese Accounting Standards for Financial Instruments, securities are classified as follows based on their intention of holdings: (a) securities held for trading purposes(hereafter, "trading securities"), (b) debt securities intended to be held to maturity (hereafter, "held-to-maturity debt securities"),(c) equity securities issued by subsidiaries and affiliated companies, and (d) for all other securities that are not classified in any of the above categories (hereafter, "available-for-sale securities")　　　

Trading securities are stated at fair market value. Gains and losses realized on disposal and unrealized gains and losses from market value fluctuations are recognized as gains or losses in the period of the change.

Held-to-maturity debt securities are stated at amortized cost.Equity securities issued by subsidiaries and affiliated

companies which are not consolidated or accounted for using the equity method are stated at moving-average cost.

Available-for-sale securities with available fair values are stated at fair value. Unrealized gains and unrealized losses on these securities are reported, net of applicable income taxes, as a separate component of net assets. Realized gains and losses on sale of such securities are computed using moving-average cost.

Other securities whose fair value is judged to be difficult to determine are stated at moving-average cost.

If there is significant decline in the market value of held-to-maturity debt securities, equity securities issued by unconsoli-dated subsidiaries and affiliated companies, and available-for-sale securities, such securities are stated at fair value and the difference between fair value and the carrying amount is recognized as loss in the period of the decline. If the fair value of equity securities issued by unconsolidated subsidiaries and affiliated companies not on the equity method is not readily available, such securities should be written down to net asset value with a corresponding charge in the income statement in the event that net asset value declines significantly.In these cases, such fair value or the net asset value will be the carrying amount of the securities at the beginning of the next year.

DerivativesDerivative financial instruments are stated at fair value and changes in the fair value are recognized as gains or losses unless derivative financial instruments are used for hedging purposes.

Property, plant and equipment (excluding lease assets)Property, plant and equipment are stated at cost less accumu-lated depreciation except for certain revalued land used for business operations as explained in Note 14.

Depreciation of property, plant and equipment is computed using the declining-balance method at rates based on the estimated useful lives of respective assets. The estimated useful lives of major items are as follows: Buildings; 10 – 50 years Others; 2 – 20 years(Modification of an accounting policy that involved difficulties in differentiating changes in accounting estimates)

In compliance with amendments to the Corporation Tax Act, beginning this consolidated fiscal year Daishi Bank and its consolidated subsidiaries have changed their method of calculating the depreciation of tangible fixed assets acquired after April 1, 2012 to a method that conforms with the said amended act.

The effect of this change is negligible.

Intangible assets (excluding lease assets)Intangible assets are amortized on a straight-line depreciation.

Software for internal use is amortized on a straight-line basis over its estimated useful life (principally 5 years).

Lease assetsAmong “property,plant and equipment” and “intangible assets”, lease assets relating to finance leases which do not transfer ownership to lessees are amortized on the straight-line method over the lease term. For residual value, residual value guaran-tees decided upon based on lease contracts are shown at the aforementioned residual value guarantee amount, others are shown as zero.

Foreign currency translation Assets and liabilities denominated in foreign currencies are translated into Japanese yen at the exchange rates prevailing on the balance sheet date.

Allowance for loan lossesFor loans to insolvent customers who are undergoing bankruptcy or other collection proceeding or in a similar financial condition, allowance for loan losses is provided in the full amount of such loans, excluding the portion that is estimated to be recoverable due to available security interests or guarantees.

For the unsecured and unguaranteed portions of loans to customers not presently in the above circumstances but for which there is a high probability of so becoming, the allowance for loan losses is provided for estimated unrecoverable amounts determined after evaluating the customer’s overall financial conditions.

For other loans, allowance for loan losses are provided based on the rate of the Bank’s actual loan losses in the past.

All branches and other business related sections evaluate all loans in accordance with the self-assessment rule, and their evaluations are audited by the asset audit section, which is independent from branches and other business related sections, and the evaluations are revised as required based on the audits.

Also, consolidated subsidiaries provide for an allowance for loan losses. It consists of the estimated uncollectible amount with respect to identified doubtful accounts and an amount calculated mainly using the rate of actual loan losses in the past.

Loans to insolvent customers who are undergoing bankruptcy or other collection proceedings or in a similar financial condition are stated net of estimated uncollectible amount equal to the full amount of such loans less the portion that is estimated to be recoverable due to available security interests or guarantees.

Such estimated uncollectible amounts directly deducted from receivables amounted to ¥21,730 million and ¥20,360 million ($216,490 thousand) at March 31, 2012 and 2013, respectively.

Provision for retirement benefitsThe Bank provides two types of post-employment benefit plans, funded lump-sum payment plans and funded non-contributory pension plans, under which all eligible employees are entitled to benefits based on the level of wages and salaries at the time of retirement or termination, length of service, and certain other factors.

Also, consolidated subsidiaries provide lump-sum payment plans and one of them provides cash balance plans.

The Bank contributed certain marketable equity securities to an employee retirement benefit trust.

Liabilities and expenses for employees’ retirement benefits are determined based on the amounts actuarially calculated using certain assumptions. The Bank and its consolidated subsidiaries provide reserve for employees’ severance and retirement benefits based on the estimated amounts of projected benefit obligation at the balance sheet date and the fair value of the plan assets at that date.

Prior service costs are recognized in profit and loss using the straight-line method over 10 years commencing with the year incurred.

Actuarial gains and losses are recognized in profit and loss using the straight-line method over 10 years commencing with the following period.

Allowance for investment lossAllowance for investment losses is provided for the estimated losses on investments based on the evaluation of the financial conditions of the investees.

Provision for directors’ retirement benefitsThe reserve for directors’ retirement benefits of the consoli-dated subsidiaries is appropriated in the amount of the portion of expected total retirement-benefit payment that is recognized as generated in the consolidated fiscal year under review, to provide for payment of retirement benefits to directors.

Provision for reimbursement of depositsReserves against refund of inactive bank accounts are prepared against repayment losses that may be incurred when the holders of inactive bank accounts with suspended liability appropriation demand repayment. These reserves are prepared in the amount of the estimated future repayment loss based on past repayment results.

Provision for directors’ bonusesProvision for directors’ bonuses is appropriated as the total amount of bonuses expected to be paid to directors within the current consolidated fiscal year.

Provision for contingent lossThe reserve for contingent liabilities is a reserve for unexpected or incidental losses not covered by the other reserves. Losses expected to occur in the future are estimated, and the amount deemed necessary is appropriated.

Reserves under the special lawsReserves under the special laws are reserves for financial products transaction liabilities in securities business consoli-dated subsidiaries, and in order to compensate for any losses


incurred with respect to securities futures, etc., are appropriated at an amount calculated based on the establishment of article 46, provision 5 of the Financial Instruments and Exchange Law.

Accounting for certain lease transactions(Lessees)Among finance leases which do not transfer ownership to lessees for Daishi Bank and our subsidiaries as well as affiliates, etc., the standard accounting method is applied to those from consolidated fiscal year accounting beginning before April 1st, 2008 based on standard lease transactions.(Lessors)The standard accounting method is applied to finance leases which do not transfer ownership to lessees for lease business consolidated domestic subsidiaries, however finance leases which do not transfer ownership to lessees from consolidated fiscal year accounting beginning before April 1st, 2008 are appropriated at carrying values (after deducting accumulated depreciation) appropriate for fixed assets at the end of the previous consolidated fiscal year accounting for the first year of application for the following guidelines based on Item No. 81 of Accounting Standards Implementation Guidelines for Lease Transactions (Corporate Accounting Standards Imple-mentation Guidelines No. 16, March 30, 2007) as the lease investment asset beginning-of-term carrying values, and equivalent interest amounts are distributed evenly according to the total amount for each term during the residual lease term.

Compared with the application of Item No. 80 of the same implementation guidelines, the net income before tax and adjustments for the period was increased by ¥205 million ($2,181 thousand).

Lease transaction revenue/expense appropriation standardsRevenue/expense appropriation standards concerning finance lease transactions depend on the appropriation method for proceeds and costs of sales at the time of lease charge acceptance.

Hedge accounting①Hedge accounting for interest rate riskAs for the hedge accounting method applied to hedging transactions for interest rate risk arising from financial assets and liabilities, the Bank applies deferred hedge accounting stipulated in “the Treatment for Accounting and Auditing of Application of Accounting Standard for Financial Instruments in Banking Industry” (JICPA Industry Audit Committee Report No.24). The Bank assesses the effectiveness of such hedge for offsetting changes in interest rate, by classifying the hedged items (such as deposits and loans) and the hedging instruments (such as interest rate swaps) by their maturity. The Bank assesses the effectiveness of such hedges for fixing cash flows by verifying the correlation between the hedged items and the hedging instruments.

②Hedge accounting for exchange rate riskAs for the hedge accounting method applied to hedging transactions for exchange rate risk arising from foreigncur-rency- denominated financial assets and liabilities, the Bank applies deferred hedge accounting stipulated in “the Treatment for Accounting and Auditing Concerning Accounting for Foreign Currency Transactions in Banking Industry” (JICPA

Industry Audit Committee Report No.25).The effectiveness of such hedge accounting is assessed by

considering currency swap transactions, which are for the purpose of offsetting foreign exchange risks arising from foreign-currency-denominated financial assets and liabilities as hedge methods, and by verifying the existence of foreigncurrency-position of such hedging methods matching up to the foreign-currency-denominated assets and liabilities of the hedging objects.

Amounts per shareComputation of net income per share is based on the weighted-average number of capital shares outstanding during each year.

Cash dividends per share represent the actual amounts declared as applicable to the respective years.

Cash and cash equivalentsThe reconciliation of cash and due from banks in the consoli-dated balance sheets and cash and cash equivalents in the consolidated statements of cash flows for 2012 and 2013 is as follows:

3. Issues relating to fair value, etc. of financial instrumentsThe consolidated balance sheet amounts, fair values, and their differences as of March 31, 2012 and 2013 are as follows. Non-listed stock, etc. whose fair value is judged to be difficult to determine are not included in the following charts (see Note 1).

2013

2013Millions of Yen

（1）Cash and due from banks（2）Securities

Trading securities Held-to-maturity debt securities Other securities

（3）Loans Allowance for loan losses

Asset capital

（1）Deposits（2）Negotiable deposit（3）Payables under securities

lending transactions （4）Borrowed money

Total liabilities

Derivative transactionsHedge accounting not appliedHedge accounting applied

Total derivative transactions

––

–– 4,596

––

32,938 ¥ 37,534

(486)(6)

–– (6)

¥ (498)

–– (617)

¥ (617)

Difference¥ 201,456

144 113,359

1,762,182

2,680,275 ¥ 4,757,418

4,175,329 71,935

93,983 185,024

¥ 4,526,272

87 (8,251)

¥ (8,163)

Fair value¥ 201,456

144 108,763

1,762,182 2,666,433

(19,096)2,647,337

¥ 4,719,884 4,174,842

71,929

93,983 185,018

¥ 4,525,773

87 (7,634)

¥ (7,546)

Book value

2012Millions of Yen




Asset capital



Total liabilities



––

–– 2,442

––

33,143 ¥ 35,586

(1,074)(15)

–– 0

¥ (1,089)

–– (420)

¥ (420)


116 113,344

1,668,306

2,552,255 ¥ 4,534,503

4,041,275 135,785

71,287 104,948

¥ 4,353,297

(357)(605)

¥ (963)


116 110,902

1,668,306 2,540,734

(21,622)2,519,111

¥ 4,498,917 4,040,200

135,770

71,287 104,949

¥ 4,352,207

(357)(185)

¥ (543)

Book value




Asset capital



Total liabilities



––

–– 48,868

––

350,218 $ 399,087

(5,173)(64)

–– (63)

$ (5,302)

–– (6,561)

$ (6,561)


Difference$ 2,142,018

1,531 1,205,316

18,736,657

28,498,409 $ 50,583,932

44,394,782 764,867

999,287 1,967,298

$ 48,126,235

932 (87,734)

$ (86,801)

Fair value$ 2,142,018

1,531 1,156,447

18,736,657 28,351,238

(203,047)28,148,190

$ 50,184,845 44,389,608

764,802

999,287 1,967,234

$ 48,120,933

932 (81,172)

$ (80,240)

Book value

Cash and due from banksOther

Cash and cash equivalents

Thousands ofU.S. Dollars

2012 2013 2013

Millions of Yen

¥ 200,479 (610)

¥ 199,869

¥ 201,456 (907)

¥ 200,549

$ 2,142,018 (9,648)

$ 2,132,369

Due from banksSecurities Held-to-maturity debt securities Those that are Japanese government bonds Japanese local government bonds Corporate bonds Other securities Those that are Japanese government bonds Japanese local government bonds Corporate bondsLoans

Total

¥ 167,387

12,050

11,000

––1,050

205,981

100,200

18,38543,092

491,541¥ 876,960

––

19,248

16,700

––2,548

430,796

203,976

31,488135,475516,309

¥ 966,354

––

5,794

3,300

––2,494

453,274

276,100

55,27345,233

447,592¥ 906,661

––

13,517

13,000

––517

303,003

221,500

55,49525,409

188,993¥ 505,513

––

58,000

58,000

––––

218,917

171,600

34,32512,474

192,175¥ 469,092

––

––

––

––––

4,120

––

––––

360,451¥ 364,572

Millions of Yen

Within 1year

1 to 3years

3 to 5years

5 to 7years

7 to 10years

Over 10years

2013


Total

¥ 164,639

5,430

4,250

––1,180

238,032

128,560

14,75347,333

416,105¥ 824,207

––

26,761

24,500

––2,261

438,102

199,776

47,844139,858587,017

¥ 1,051,880

––

5,761

3,750

––2,011

397,651

298,840

16,96952,796

380,798¥ 784,211

––

7,762

7,000

––762

199,404

81,500

73,32543,432

173,126¥ 380,293

––

65,000

65,000

––––

281,836

242,600

26,09012,381

172,205¥ 519,041

––

––

––

––––

6,045

––

––––

324,444¥ 330,490

Millions of Yen

Within 1year

1 to 3years

3 to 5years

5 to 7years

7 to 10years

Over 10years

(Note 1) The financial instruments whose fair value is judged to be difficult to determine are as follows. They are not included in “Assets Other securities” in fair value information for financial instruments.

(Note 2) The scheduled repayment amount after the consoli-dated balance sheet date for monetary claims and matured securities.

①Listed stock ②Associated investments, etc.

Total

2012

$ 39,80219,468

$ 59,271


2013¥ 3,743

1,831¥ 5,574

2013¥ 4,207

2,328¥ 6,536

2012


incurred with respect to securities futures, etc., are appropriated at an amount calculated based on the establishment of article 46, provision 5 of the Financial Instruments and Exchange Law.

Accounting for certain lease transactions(Lessees)Among finance leases which do not transfer ownership to lessees for Daishi Bank and our subsidiaries as well as affiliates, etc., the standard accounting method is applied to those from consolidated fiscal year accounting beginning before April 1st, 2008 based on standard lease transactions.(Lessors)The standard accounting method is applied to finance leases which do not transfer ownership to lessees for lease business consolidated domestic subsidiaries, however finance leases which do not transfer ownership to lessees from consolidated fiscal year accounting beginning before April 1st, 2008 are appropriated at carrying values (after deducting accumulated depreciation) appropriate for fixed assets at the end of the previous consolidated fiscal year accounting for the first year of application for the following guidelines based on Item No. 81 of Accounting Standards Implementation Guidelines for Lease Transactions (Corporate Accounting Standards Imple-mentation Guidelines No. 16, March 30, 2007) as the lease investment asset beginning-of-term carrying values, and equivalent interest amounts are distributed evenly according to the total amount for each term during the residual lease term.

Compared with the application of Item No. 80 of the same implementation guidelines, the net income before tax and adjustments for the period was increased by ¥205 million ($2,181 thousand).

Lease transaction revenue/expense appropriation standardsRevenue/expense appropriation standards concerning finance lease transactions depend on the appropriation method for proceeds and costs of sales at the time of lease charge acceptance.

Hedge accounting①Hedge accounting for interest rate riskAs for the hedge accounting method applied to hedging transactions for interest rate risk arising from financial assets and liabilities, the Bank applies deferred hedge accounting stipulated in “the Treatment for Accounting and Auditing of Application of Accounting Standard for Financial Instruments in Banking Industry” (JICPA Industry Audit Committee Report No.24). The Bank assesses the effectiveness of such hedge for offsetting changes in interest rate, by classifying the hedged items (such as deposits and loans) and the hedging instruments (such as interest rate swaps) by their maturity. The Bank assesses the effectiveness of such hedges for fixing cash flows by verifying the correlation between the hedged items and the hedging instruments.

②Hedge accounting for exchange rate riskAs for the hedge accounting method applied to hedging transactions for exchange rate risk arising from foreigncur-rency- denominated financial assets and liabilities, the Bank applies deferred hedge accounting stipulated in “the Treatment for Accounting and Auditing Concerning Accounting for Foreign Currency Transactions in Banking Industry” (JICPA

Industry Audit Committee Report No.25).The effectiveness of such hedge accounting is assessed by

considering currency swap transactions, which are for the purpose of offsetting foreign exchange risks arising from foreign-currency-denominated financial assets and liabilities as hedge methods, and by verifying the existence of foreigncurrency-position of such hedging methods matching up to the foreign-currency-denominated assets and liabilities of the hedging objects.

Amounts per shareComputation of net income per share is based on the weighted-average number of capital shares outstanding during each year.

Cash dividends per share represent the actual amounts declared as applicable to the respective years.

Cash and cash equivalentsThe reconciliation of cash and due from banks in the consoli-dated balance sheets and cash and cash equivalents in the consolidated statements of cash flows for 2012 and 2013 is as follows:

3. Issues relating to fair value, etc. of financial instrumentsThe consolidated balance sheet amounts, fair values, and their differences as of March 31, 2012 and 2013 are as follows. Non-listed stock, etc. whose fair value is judged to be difficult to determine are not included in the following charts (see Note 1).

2013

2013Millions of Yen




Asset capital



Total liabilities



––

–– 4,596

––

32,938 ¥ 37,534

(486)(6)

–– (6)

¥ (498)

–– (617)

¥ (617)


144 113,359

1,762,182

2,680,275 ¥ 4,757,418

4,175,329 71,935

93,983 185,024

¥ 4,526,272

87 (8,251)

¥ (8,163)


144 108,763

1,762,182 2,666,433

(19,096)2,647,337

¥ 4,719,884 4,174,842

71,929

93,983 185,018

¥ 4,525,773

87 (7,634)

¥ (7,546)

Book value

2012Millions of Yen




Asset capital



Total liabilities



––

–– 2,442

––

33,143 ¥ 35,586

(1,074)(15)

–– 0

¥ (1,089)

–– (420)

¥ (420)


116 113,344

1,668,306

2,552,255 ¥ 4,534,503

4,041,275 135,785

71,287 104,948

¥ 4,353,297

(357)(605)

¥ (963)


116 110,902

1,668,306 2,540,734

(21,622)2,519,111

¥ 4,498,917 4,040,200

135,770

71,287 104,949

¥ 4,352,207

(357)(185)

¥ (543)

Book value




Asset capital



Total liabilities



––

–– 48,868

––

350,218 $ 399,087

(5,173)(64)

–– (63)

$ (5,302)

–– (6,561)

$ (6,561)


Difference$ 2,142,018

1,531 1,205,316

18,736,657

28,498,409 $ 50,583,932

44,394,782 764,867

999,287 1,967,298

$ 48,126,235

932 (87,734)

$ (86,801)

Fair value$ 2,142,018

1,531 1,156,447

18,736,657 28,351,238

(203,047)28,148,190

$ 50,184,845 44,389,608

764,802

999,287 1,967,234

$ 48,120,933

932 (81,172)

$ (80,240)

Book value

Cash and due from banksOther

Cash and cash equivalents


2012 2013 2013

Millions of Yen

¥ 200,479 (610)

¥ 199,869

¥ 201,456 (907)

¥ 200,549

$ 2,142,018 (9,648)

$ 2,132,369


Total

¥ 167,387

12,050

11,000

––1,050

205,981

100,200

18,38543,092

491,541¥ 876,960

––

19,248

16,700

––2,548

430,796

203,976

31,488135,475516,309

¥ 966,354

––

5,794

3,300

––2,494

453,274

276,100

55,27345,233

447,592¥ 906,661

––

13,517

13,000

––517

303,003

221,500

55,49525,409

188,993¥ 505,513

––

58,000

58,000

––––

218,917

171,600

34,32512,474

192,175¥ 469,092

––

––

––

––––

4,120

––

––––

360,451¥ 364,572

Millions of Yen

Within 1year

1 to 3years

3 to 5years

5 to 7years

7 to 10years

Over 10years

2013


Total

¥ 164,639

5,430

4,250

––1,180

238,032

128,560

14,75347,333

416,105¥ 824,207

––

26,761

24,500

––2,261

438,102

199,776

47,844139,858587,017

¥ 1,051,880

––

5,761

3,750

––2,011

397,651

298,840

16,96952,796

380,798¥ 784,211

––

7,762

7,000

––762

199,404

81,500

73,32543,432

173,126¥ 380,293

––

65,000

65,000

––––

281,836

242,600

26,09012,381

172,205¥ 519,041

––

––

––

––––

6,045

––

––––

324,444¥ 330,490

Millions of Yen

Within 1year

1 to 3years

3 to 5years

5 to 7years

7 to 10years

Over 10years

(Note 1) The financial instruments whose fair value is judged to be difficult to determine are as follows. They are not included in “Assets Other securities” in fair value information for financial instruments.

(Note 2) The scheduled repayment amount after the consoli-dated balance sheet date for monetary claims and matured securities.

①Listed stock ②Associated investments, etc.

Total

2012

$ 39,80219,468

$ 59,271


2013¥ 3,743

1,831¥ 5,574

2013¥ 4,207

2,328¥ 6,536

2012


Total sales of available-for-sale securities sold in the year ended March 31, 2012 amounted to ¥408,892 million and the related gains and losses amounted to ¥2,541 million and ¥2,884 million, respectively, and those sales in the year ended March 31, 2013 amounted to ¥281,282 million ($2,990,772 thousand) and the related gains and losses amounted to ¥2,401 million ($25,530 thousand) and ¥3,699 million ($39,332 thousand), respectively.

Difference betweenCost and Fair Value on available-for-sale securities Deferred tax liability

Sub-total

Minority Interests

Valuation difference on Available-for-sale securities


2013

Millions of Yen

(C)

Swap:Receive fixed – pay variable rateReceive variable – pay fixed rateReceive variable – pay variable rate

Option:SellBuy


Option:SellBuy

¥ 12,226 12,126 2,742

12,705 12,854

¥ 224 (197)

––

(29)13

$ 130,005 128,941 29,154

135,091 136,672

$ 2,383 (2,099)

––

(315)142

Notional principal amount

Fair valueNotionalprincipalamount

Fair value

Millions of YenThousands ofU.S. Dollars

2013 2013

Currency Swap:Foreign exchange contract:

Sell Buy

Currency options:Sell Buy


Fair value

Millions of Yen

2012

(2) Foreign exchange-related transactions

Valuation difference on available-for-sale securities at March 31, 2012 and 2013 were as follows:

(B) Held-to-maturity debt securities sold in the year ended March 31, 2013 were ¥20 million ($217 thousand) and the related gain was ¥0 million ($4 thousand). March 31,2012 was nothing.

(D) Notionalprincipalamount

Fair value

Millions of Yen

2012

(1) Interest rate-related transaction

5. Derivative financial instrumentsThe Bank engages in derivative transactions to mitigate interest rate risk and liquidity risk of foreign currencies in the normal course of asset-liability management (ALM), and to meet customers’ needs. The Bank established the ALM committee and Risk Control Team to assess derivative transactions and market risks surrounding these transactions according to the Bank’s policy regarding derivative transactions. The Risk Control Team analyzes risks related to derivative transactions and reports to the ALM committee for review every month.

The Bank’s consolidated subsidiaries did not engage in any derivative transactions for the years ended March 31, 2012 and 2013.

The following tables summarized the underlying notional principal amounts and fair values for outstanding derivative financial instruments by risk category and instrument type at March 31, 2012 and 2013:

¥ 26,035 8,050 2,742

13,867 13,861

¥ 248 (227)

––

(44)28

¥ 59,371

19,602 10,166

95,131 95,128

¥ 82

(545)100

(9,800)9,799

¥ 67,262(23,267)

43,994(1,775)

¥ 42,218

$ 715,173(247,399)

467,773(18,881)

$ 448,892

2012 2013

(13,551)

25,604(343)

¥ 25,260

¥ 39,155

(Note 3) The scheduled repayment amount after the consoli-dated balance sheet date for borrowed money and other interest-bearing debt.

DepositsNegotiable depositPayables under securities lending transactionsBorrowed money

Total

¥ 3,686,675133,870

71,287100,693

¥ 3,992,526

¥ 324,6851,900

––2,100

¥ 328,685

¥ 21,443––

––2,155

¥ 23,599

¥ 757––

––––

¥ 757

––––

––––––

Millions of Yen

Within 1year

1 to 3years

3 to 5years

5 to 7years

7 to 10years

Over 10years

4. Securities (A) The following tables summarize acquisition costs, book

values, fair value, and other information of securities with available fair values as of March 31, 2012 and 2013:

(1) Trading securities

(2) Held-to-maturity debt securities

Book valueAmount of net unrealized

gains included in theincome statement

$ 32,258

1,116


89

Millions of Yen

Book valueFair valueDifference


2013

2013$ 1,156,447

1,205,31648,868

¥ 3,0332013

105

¥ 3,0942012

¥ 110,902113,344

2,442

2012 2013¥ 108,763

113,3594,596

StocksBondsOther than stocks

and bonds


and bonds

Total

(3) Available-for-sale securities

Acquisitioncost

Millions of Yen


and bonds

Total

Total

Acquisitioncost

Millions of Yen

$ 574,31815,282,538

2,268,031$ 18,124,888

$ 294,880361,425

58,866$ 715,173

$ 869,19915,643,964

2,326,898$ 18,840,061

Acquisitioncost Book value Difference


2013

2013

2012

2013

¥ 57,1251,427,373

158,743¥ 1,643,242

¥ 11,81726,954

383¥ 39,155

¥ 68,9431,454,328

159,127¥ 1,682,398

¥ 54,0141,437,322

213,308¥ 1,704,645

¥ 27,73333,992

5,536¥ 67,262

¥ 81,7481,471,314

218,844¥ 1,771,907

Book value Difference



Total

$ 40,672,170764,802

999,2871,922,667

$ 44,358,929

$ 3,379,151––

––31,754

$ 3,410,905

$ 249,759––

––7,496

$ 257,255

$ 12,718––

––2,126

$ 14,845

$ 75,808––

––3,189

$ 78,998

––––

––––––


Within 1year

1 to 3years

3 to 5years

5 to 7years

7 to 10years

Over 10years

2012

¥ 6,639––

––––

¥ 6,639

2013


Total

¥ 3,825,21771,929

93,983180,826

¥ 4,171,957

¥ 317,809––

––2,986

¥ 320,795

¥ 23,489––

––705

¥ 24,194

¥ 1,196––

––200

¥ 1,396

¥ 7,129––

––300

¥ 7,429

––––

––––––

Millions of Yen

Within 1year

1 to 3years

3 to 5years

5 to 7years

7 to 10years

Over 10years

Due from banks Securities Held-to-maturity debt securities Those that are Japanese government bonds Japanese local government bonds Corporate bonds Other securities Those that are Japanese government bonds Japanese local government bonds Corporate bondsLoans

Total

$ 1,779,768

128,123

116,959

––11,164

2,190,131

1,065,390

195,488458,181

5,226,379$ 9,324,402

––

204,659

177,565

––27,094

4,580,504

2,168,803

334,8001,440,4635,489,736

$10,274,900

––

61,607

35,087

––26,519

4,819,508

2,935,672

587,707480,948

4,759,085$ 9,640,202

––

143,721

138,224

––5,497

3,221,726

2,355,130

590,065270,165

2,009,499$ 5,374,946

––

616,693

616,693

––––

2,327,667

1,824,561

364,965132,631

2,043,331$ 4,987,692

––

––

––

––––

43,814

––

––––

3,832,555$ 3,876,370


Within 1year

1 to 3years

3 to 5years

5 to 7years

7 to 10years

Over 10years

2013


Total sales of available-for-sale securities sold in the year ended March 31, 2012 amounted to ¥408,892 million and the related gains and losses amounted to ¥2,541 million and ¥2,884 million, respectively, and those sales in the year ended March 31, 2013 amounted to ¥281,282 million ($2,990,772 thousand) and the related gains and losses amounted to ¥2,401 million ($25,530 thousand) and ¥3,699 million ($39,332 thousand), respectively.

Difference betweenCost and Fair Value on available-for-sale securities Deferred tax liability

Sub-total

Minority Interests

Valuation difference on Available-for-sale securities


2013

Millions of Yen

(C)


Option:SellBuy


Option:SellBuy

¥ 12,226 12,126 2,742

12,705 12,854

¥ 224 (197)

––

(29)13

$ 130,005 128,941 29,154

135,091 136,672

$ 2,383 (2,099)

––

(315)142



Fair value


2013 2013


Sell Buy



Fair value

Millions of Yen

2012

(2) Foreign exchange-related transactions

Valuation difference on available-for-sale securities at March 31, 2012 and 2013 were as follows:

(B) Held-to-maturity debt securities sold in the year ended March 31, 2013 were ¥20 million ($217 thousand) and the related gain was ¥0 million ($4 thousand). March 31,2012 was nothing.

(D) Notionalprincipalamount

Fair value

Millions of Yen

2012

(1) Interest rate-related transaction

5. Derivative financial instrumentsThe Bank engages in derivative transactions to mitigate interest rate risk and liquidity risk of foreign currencies in the normal course of asset-liability management (ALM), and to meet customers’ needs. The Bank established the ALM committee and Risk Control Team to assess derivative transactions and market risks surrounding these transactions according to the Bank’s policy regarding derivative transactions. The Risk Control Team analyzes risks related to derivative transactions and reports to the ALM committee for review every month.

The Bank’s consolidated subsidiaries did not engage in any derivative transactions for the years ended March 31, 2012 and 2013.

The following tables summarized the underlying notional principal amounts and fair values for outstanding derivative financial instruments by risk category and instrument type at March 31, 2012 and 2013:

¥ 26,035 8,050 2,742

13,867 13,861

¥ 248 (227)

––

(44)28

¥ 59,371

19,602 10,166

95,131 95,128

¥ 82

(545)100

(9,800)9,799

¥ 67,262(23,267)

43,994(1,775)

¥ 42,218

$ 715,173(247,399)

467,773(18,881)

$ 448,892

2012 2013

(13,551)

25,604(343)

¥ 25,260

¥ 39,155

(Note 3) The scheduled repayment amount after the consoli-dated balance sheet date for borrowed money and other interest-bearing debt.


Total

¥ 3,686,675133,870

71,287100,693

¥ 3,992,526

¥ 324,6851,900

––2,100

¥ 328,685

¥ 21,443––

––2,155

¥ 23,599

¥ 757––

––––

¥ 757

––––

––––––

Millions of Yen

Within 1year

1 to 3years

3 to 5years

5 to 7years

7 to 10years

Over 10years

4. Securities (A) The following tables summarize acquisition costs, book

values, fair value, and other information of securities with available fair values as of March 31, 2012 and 2013:

(1) Trading securities

(2) Held-to-maturity debt securities

Book valueAmount of net unrealized

gains included in theincome statement

$ 32,258

1,116


89

Millions of Yen

Book valueFair valueDifference


2013

2013$ 1,156,447

1,205,31648,868

¥ 3,0332013

105

¥ 3,0942012

¥ 110,902113,344

2,442

2012 2013¥ 108,763

113,3594,596


and bonds


and bonds

Total

(3) Available-for-sale securities

Acquisitioncost

Millions of Yen


and bonds

Total

Total

Acquisitioncost

Millions of Yen

$ 574,31815,282,538

2,268,031$ 18,124,888

$ 294,880361,425

58,866$ 715,173

$ 869,19915,643,964

2,326,898$ 18,840,061

Acquisitioncost Book value Difference


2013

2013

2012

2013

¥ 57,1251,427,373

158,743¥ 1,643,242

¥ 11,81726,954

383¥ 39,155

¥ 68,9431,454,328

159,127¥ 1,682,398

¥ 54,0141,437,322

213,308¥ 1,704,645

¥ 27,73333,992

5,536¥ 67,262

¥ 81,7481,471,314

218,844¥ 1,771,907




Total

$ 40,672,170764,802

999,2871,922,667

$ 44,358,929

$ 3,379,151––

––31,754

$ 3,410,905

$ 249,759––

––7,496

$ 257,255

$ 12,718––

––2,126

$ 14,845

$ 75,808––

––3,189

$ 78,998

––––

––––––


Within 1year

1 to 3years

3 to 5years

5 to 7years

7 to 10years

Over 10years

2012

¥ 6,639––

––––

¥ 6,639

2013


Total

¥ 3,825,21771,929

93,983180,826

¥ 4,171,957

¥ 317,809––

––2,986

¥ 320,795

¥ 23,489––

––705

¥ 24,194

¥ 1,196––

––200

¥ 1,396

¥ 7,129––

––300

¥ 7,429

––––

––––––

Millions of Yen

Within 1year

1 to 3years

3 to 5years

5 to 7years

7 to 10years

Over 10years

Due from banks Securities Held-to-maturity debt securities Those that are Japanese government bonds Japanese local government bonds Corporate bonds Other securities Those that are Japanese government bonds Japanese local government bonds Corporate bondsLoans

Total

$ 1,779,768

128,123

116,959

––11,164

2,190,131

1,065,390

195,488458,181

5,226,379$ 9,324,402

––

204,659

177,565

––27,094

4,580,504

2,168,803

334,8001,440,4635,489,736

$10,274,900

––

61,607

35,087

––26,519

4,819,508

2,935,672

587,707480,948

4,759,085$ 9,640,202

––

143,721

138,224

––5,497

3,221,726

2,355,130

590,065270,165

2,009,499$ 5,374,946

––

616,693

616,693

––––

2,327,667

1,824,561

364,965132,631

2,043,331$ 4,987,692

––

––

––

––––

43,814

––

––––

3,832,555$ 3,876,370


Within 1year

1 to 3years

3 to 5years

5 to 7years

7 to 10years

Over 10years

2013


9. Assets PledgedAssets pledged as collateral and related liabilities at March 31, 2012 and 2013 were as follows:

In addition, the following assets were pledged as collateral for settlement of exchange, short-term financial transaction, and forward exchange contracts.

Guaranty money deposited was included in other assets, and amounted to ¥657 million and ¥652 million ($6,933 thousand) at March 31, 2012 and 2013

Current depositsOrdinary depositsNegotiable certificates of

depositsSavings depositsDeposits at noticeTime depositsOther deposits

Total


2012 2013 2013

Millions of Yen

Trading account securitiesSecurities

Total


Assets pledged: SecuritiesRelated liabilities: Deposits Payables under securities lending transactionsBorrowed money


Non-accrual loans:Loans to borrowers under

bankruptcy proceedingsLoans past due six

months or more

Total non-accrual loans

Accrual loans past due overmore than three months

Restructured loans-adjustedthe terms in favor ofborrowers for financialassistance

$ 30,135

717,338$ 747,473

$ 8,518

$ 23,305


¥ 2,834

67,465¥ 70,299

¥ 801

¥ 2,191

2012 2013 2013

Millions of Yen

Non-accrual loans, accrual loans past due over more than three months, and restructured loans at March 31, 2012 and 2013 were as follows:

¥ 4,310

70,625¥ 74,936

¥ 164

¥ 8,015

8. DepositsDeposits at March 31, 2012 and 2013 consisted of the following:

¥ 200,5812,107,137

135,77030,46615,891

1,590,44395,679

¥ 4,175,970

¥ 204,2762,177,277

71,92929,45998,114

1,553,241112,472

¥ 4,246,772

$ 2,172,00323,150,216

764,802313,231

1,043,21216,515,061

1,195,881$ 45,154,411

Due within 1 yearDue after 1 year but within 2 years Due after 2 years but within 3 years Due after 3 years but within 4 yearsDue after 4 years but within 5 yearsDue after 5 years

Total

2012¥ 730

657535416321399

¥ 3,062

2013¥ 701

600478381226272

¥ 2,661

2013$ 7,456

6,3805,0914,0562,4102,900

$ 28,295

(1) Lease credit

(2) Lease investment assets



Total

2012¥ 10,629

8,1656,1043,9652,0371,552

¥ 32,456

2013¥ 10,320

7,9765,8223,8162,0122,109

¥ 32,058

2013$ 109,729

84,81361,90840,58221,39722,429

$ 340,862


Loans on notesLoans on deedsBills discountedOverdraftsOther

Total

$ 973,50022,782,491

219,9444,284,869

90,432$ 28,351,238


¥ 91,5572,142,693

20,685402,991

8,505¥ 2,666,433

2012 2013 2013

Millions of Yen

7. Loans and bills discounted Loans and bills discounted at March 31, 2012 and 2013 consisted of the following:

¥ 96,7612,000,897

20,823415,323

6,927

¥ 2,540,734

$ 4,375,895

1,635,080

999,2871,878,489

¥ 411,552

153,779

93,983176,671

¥ 316,441

144,632

71,28796,348

$ 3,058643,003

$ 646,062

¥ 28760,474

¥ 60,762

¥ 28786,914

¥ 87,201

Due within 1 yearDue after 1 year

Total

$ 2,3273,083

$ 5,410


¥ 218289

¥ 508

2012 2013 2013

Millions of Yen

¥ 206309

¥ 515

(Operating lease transactions)

1. LesseesNot applicable

2. LessorsFuture minimum lease receipts under non-cancelable finance and operating leases

2012 2013 2013

2012 2013 2013

•Equivalent of interest expense calculation method Computed using the straight-line method over the lease terms assuming no residual value.

•Equivalent of interest expense calculation method Computed using the interest rate method over the lease terms for the difference between acquisition cost and total lease payments, and the allocation method for each consolidated fiscal year accounting is appropriated using the interest method.

(2) Lessors　Not applicable

2. Lease receivables among lease investment assets,estimated residual value, and equivalent interest/dividends received values

3. Estimated receivables for lease receivables amounts after the consolidated balance sheet date regarding lease credit and lease investment assets.

Cost estimation residual value amountsEstimated residual valueEquivalent interest/dividends received values

Lease investment assets

¥ 32,058 1,416

(4,751)¥ 28,724

2012 2013 2013


¥ 32,456 1,536

(4,483)¥ 29,509

$ 340,862 15,066

(50,516)$ 305,412

6. Information for certain lease trans-actions

(Finance lease transactions)1. Finance lease transactions which do not transfer ownership to

lessees with account processing based on methods relating to standard lease transactions

(1) LesseesEquivalent lease property acquisition cost, equivalent accumulated depreciation expense, and equivalent of net book value

•Property,plant and equipment

•Future minimum lease payments

•Lease payments equivalent of depreciation expense,and equivalent of interest expense

Equivalent acquisition costEquivalent accumulated depreciation expense

Equivalent of net book value


¥ 10

9¥ 1

2012 2013 2013

Millions of Yen

¥ 16

12¥ 3

$ 116

105$ 11


Total


¥ 1––

¥ 1

2012 2013 2013

Millions of Yen

¥ 21

¥ 4

$ 12––

$ 12

Lease paymentsEquivalent of depreciation expenseEquivalent of interest expense


¥ 220

2012 2013 2013

Millions of Yen

¥ 330

$ 3129

0


Sell Buy


¥ 50,700

16,087 11,060

95,584 95,577

¥ 61

(53)69

(4,156)4,156

$ 539,076

171,055 117,599

1,016,313 1,016,239

$ 652

(569)734

(44,194)44,198

Notionalprincipal amount


Fair value


2013 2013

Fair values of interest rate and currency swap contracts are estimated based on discounted cash flow method.

Derivative transactions for which hedge accounting is applied are excluded from the table above. Because the Bank adopted the transitional treatments prescribed in the Industry Audit Committee Report No.24 and No.25.


9. Assets PledgedAssets pledged as collateral and related liabilities at March 31, 2012 and 2013 were as follows:

In addition, the following assets were pledged as collateral for settlement of exchange, short-term financial transaction, and forward exchange contracts.

Guaranty money deposited was included in other assets, and amounted to ¥657 million and ¥652 million ($6,933 thousand) at March 31, 2012 and 2013

Current depositsOrdinary depositsNegotiable certificates of

depositsSavings depositsDeposits at noticeTime depositsOther deposits

Total


2012 2013 2013

Millions of Yen

Trading account securitiesSecurities

Total


Assets pledged: SecuritiesRelated liabilities: Deposits Payables under securities lending transactionsBorrowed money


Non-accrual loans:Loans to borrowers under

bankruptcy proceedingsLoans past due six

months or more

Total non-accrual loans

Accrual loans past due overmore than three months

Restructured loans-adjustedthe terms in favor ofborrowers for financialassistance

$ 30,135

717,338$ 747,473

$ 8,518

$ 23,305


¥ 2,834

67,465¥ 70,299

¥ 801

¥ 2,191

2012 2013 2013

Millions of Yen

Non-accrual loans, accrual loans past due over more than three months, and restructured loans at March 31, 2012 and 2013 were as follows:

¥ 4,310

70,625¥ 74,936

¥ 164

¥ 8,015

8. DepositsDeposits at March 31, 2012 and 2013 consisted of the following:

¥ 200,5812,107,137

135,77030,46615,891

1,590,44395,679

¥ 4,175,970

¥ 204,2762,177,277

71,92929,45998,114

1,553,241112,472

¥ 4,246,772

$ 2,172,00323,150,216

764,802313,231

1,043,21216,515,061

1,195,881$ 45,154,411


Total

2012¥ 730

657535416321399

¥ 3,062

2013¥ 701

600478381226272

¥ 2,661

2013$ 7,456

6,3805,0914,0562,4102,900

$ 28,295

(1) Lease credit

(2) Lease investment assets



Total

2012¥ 10,629

8,1656,1043,9652,0371,552

¥ 32,456

2013¥ 10,320

7,9765,8223,8162,0122,109

¥ 32,058

2013$ 109,729

84,81361,90840,58221,39722,429

$ 340,862


Loans on notesLoans on deedsBills discountedOverdraftsOther

Total

$ 973,50022,782,491

219,9444,284,869

90,432$ 28,351,238


¥ 91,5572,142,693

20,685402,991

8,505¥ 2,666,433

2012 2013 2013

Millions of Yen

7. Loans and bills discounted Loans and bills discounted at March 31, 2012 and 2013 consisted of the following:

¥ 96,7612,000,897

20,823415,323

6,927

¥ 2,540,734

$ 4,375,895

1,635,080

999,2871,878,489

¥ 411,552

153,779

93,983176,671

¥ 316,441

144,632

71,28796,348

$ 3,058643,003

$ 646,062

¥ 28760,474

¥ 60,762

¥ 28786,914

¥ 87,201


Total

$ 2,3273,083

$ 5,410


¥ 218289

¥ 508

2012 2013 2013

Millions of Yen

¥ 206309

¥ 515

(Operating lease transactions)

1. LesseesNot applicable

2. LessorsFuture minimum lease receipts under non-cancelable finance and operating leases

2012 2013 2013

2012 2013 2013

•Equivalent of interest expense calculation method Computed using the straight-line method over the lease terms assuming no residual value.

•Equivalent of interest expense calculation method Computed using the interest rate method over the lease terms for the difference between acquisition cost and total lease payments, and the allocation method for each consolidated fiscal year accounting is appropriated using the interest method.

(2) Lessors　Not applicable

2. Lease receivables among lease investment assets,estimated residual value, and equivalent interest/dividends received values

3. Estimated receivables for lease receivables amounts after the consolidated balance sheet date regarding lease credit and lease investment assets.

Cost estimation residual value amountsEstimated residual valueEquivalent interest/dividends received values

Lease investment assets

¥ 32,058 1,416

(4,751)¥ 28,724

2012 2013 2013


¥ 32,456 1,536

(4,483)¥ 29,509

$ 340,862 15,066

(50,516)$ 305,412

6. Information for certain lease trans-actions

(Finance lease transactions)1. Finance lease transactions which do not transfer ownership to

lessees with account processing based on methods relating to standard lease transactions

(1) LesseesEquivalent lease property acquisition cost, equivalent accumulated depreciation expense, and equivalent of net book value

•Property,plant and equipment

•Future minimum lease payments

•Lease payments equivalent of depreciation expense,and equivalent of interest expense

Equivalent acquisition costEquivalent accumulated depreciation expense

Equivalent of net book value


¥ 10

9¥ 1

2012 2013 2013

Millions of Yen

¥ 16

12¥ 3

$ 116

105$ 11


Total


¥ 1––

¥ 1

2012 2013 2013

Millions of Yen

¥ 21

¥ 4

$ 12––

$ 12

Lease paymentsEquivalent of depreciation expenseEquivalent of interest expense


¥ 220

2012 2013 2013

Millions of Yen

¥ 330

$ 3129

0


Sell Buy


¥ 50,700

16,087 11,060

95,584 95,577

¥ 61

(53)69

(4,156)4,156

$ 539,076

171,055 117,599

1,016,313 1,016,239

$ 652

(569)734

(44,194)44,198

Notionalprincipal amount


Fair value


2013 2013

Fair values of interest rate and currency swap contracts are estimated based on discounted cash flow method.

Derivative transactions for which hedge accounting is applied are excluded from the table above. Because the Bank adopted the transitional treatments prescribed in the Industry Audit Committee Report No.24 and No.25.


The Bank policies for asset grouping are as follows. In principle, grouping is implemented at the smallest managerial accounting division level, individual branch offices. Grouping is also carried out at the asset level for assets scheduled for disposal and for inactive assets. The headquarters, operation centers, and welfare centers which are assets related to the entire Daishi Bank are treated as common assets.

The recoverable price of the asset group for this consolidated fiscal year is set as the net selling price, and is mainly calcu-lated based on the real estate appraisal value.

14. Accumulated depreciationAccumulated depreciation of Property, plant and equipment were ¥78,670 million as of March 31, 2012 and ¥79,263 million($842,781 thousand) as of March 31, 2013.

12. Revaluation reserve for landPursuant to the Law concerning Revaluation of Land (the “Law”), land used for business operations was revalued at fair value at March 31, 1998. Due to the revaluation, land was appreciated by ¥21,889 million to ¥41,412 million at March 31, 1998. Net unrealized gain was classified in a separate compo-nent of net assets, net of applicable income taxes, as “Revalua-tion reserve for land” and in liabilities as “Deferred tax liabilities for land revaluation” in the accompanying consoli-dated balance sheets. Under the Law, once after the Bank revalued the land, it is not permitted to revalue the land. Such unrealized revaluation loss at March 31, 2013 was ¥16,045 million ($170,604 thousand).

Deferred tax assets:Allowance for loan losses

and write-off of claimsRetirement benefitsDepreciationOtherLess valuation allowance

Total deferred income tax assets

Deferred tax liabilities:Unrealized gains on

securities availablefor sale

Gain on contibution ofsecurities to employeeretierment benefit trust

Other

Total deferred income taxliabilities

Net deferred tax assets(liabilities)


2012 2013 2013

Millions of Yen

¥ 13,124 5,007 1,344 5,447

(4,143)

20,780

(13,551)

(854)(661)

(15,067)

¥ 5,713

¥ 11,543 4,884 1,248 4,649

(4,313)

18,013

(23,267)

(826)(695)

(24,790)

¥ (6,776)

$ 122,734 51,938 13,275 49,438

(45,858)

191,528

(247,399)

(8,785)(7,398)

(263,583)

$ (72,055)

13. Long-lived AssetsThe Group recognized impairment losses for the years ended March 31, 2013 as follows:

Niigata Pref.

Niigata Pref.

Total

Thousands ofMillionsof Yen U.S. DollarsArea

Branch offices and other

Idle assets and other

Principal purpose

of use

Land and buildings

Land and buildings

Classification

$ 1,821

$ 55

$ 1,876

¥ 171

¥ 5

¥ 176

Service costs – benefits earned during the year

Interest cost on projected benefit obligation

Expected return on planassets

Amortization of priorservice cost

Amortization of actuarialdifferences

Other

Severance and retirement benefit expenses

Basic assumptions of employees’ retirement benefits calculation:


¥ 951

818

(481)

(332)

1,102 279

¥2,337

$ 10,120

8,707

(5,121)

(3,532)

11,717 2,967

$24,858

2012 2013 2013

Millions of Yen

Discount rateExpected return rate of assetsAllocation basis of expect

retirement benefitsAmortization term of unrecognized

prior service costAmortization term of unrecognized

actuarial differences

0–2.0%

Fixed

10 years

10 years

20122.0%

0–2.0%

Fixed

10 years

10 years

2013

¥ 978

816

(466)

(518)

1,764 295

¥ 2,869

11. Income taxes The Bank is subject to a number of taxes levied on income,which, in the aggregate, indicate a statutory rate in Japan of approximately 40.4% for the year ended March 31, 2012 and 37.8% for the year ended March 31, 2013.

The following table summarizes the significant differences between the statutory tax rate and the Bank’s effective tax rate for financial statement purposes for the years ended March 31, 2012:

The difference for the years ended March 31, 2013 are not disclosed as permitted under Japanese accounting standards since the difference is not more than 5% of the statutory tax rate.

Significant components of deferred tax assets and liabilities at March 31, 2012 and 2013 were as follows:

Statutory tax rateDecrease of valuation allowanceNon-taxable income (dividend income, etc.)Non-deductible expensesInhabitants taxEnd-of-term deferred tax assets revised down due to tax rate changesOther

Effective tax rate

10. Employee’s severance and pen-sion benefits

The Provision for retirement benefits included in the liability section of the consolidated balance sheets as of March 31, 2012and 2013 consisted of the following:

Included in the consolidated statements of operations for the years ended March 31, 2012 and 2013 are severance and retirement benefit expenses comprised of the following:

Projected benefit obligationPension assetsUnrecognized actuarial

differencesUnrecognized prior

service cost

Net amount recognized in theconsolidated balance sheets

Prepaid pension costs

Provision for retirement benefits


¥ 41,778 (29,703)

(2,460)

484

10,098 ––

¥ 10,098

$ 444,215 (315,831)

(26,160)

5,155

107,378 ––

$ 107,378

2012 2013 2013

Millions of Yen

¥ 42,131 (27,164)

(5,450)

817

10,333 ––

¥ 10,333

2.0%

201240.4%

(0.6)(1.8)

0.4 0.3

8.3 (0.0)

47.0%


The Bank policies for asset grouping are as follows. In principle, grouping is implemented at the smallest managerial accounting division level, individual branch offices. Grouping is also carried out at the asset level for assets scheduled for disposal and for inactive assets. The headquarters, operation centers, and welfare centers which are assets related to the entire Daishi Bank are treated as common assets.

The recoverable price of the asset group for this consolidated fiscal year is set as the net selling price, and is mainly calcu-lated based on the real estate appraisal value.

14. Accumulated depreciationAccumulated depreciation of Property, plant and equipment were ¥78,670 million as of March 31, 2012 and ¥79,263 million($842,781 thousand) as of March 31, 2013.

12. Revaluation reserve for landPursuant to the Law concerning Revaluation of Land (the “Law”), land used for business operations was revalued at fair value at March 31, 1998. Due to the revaluation, land was appreciated by ¥21,889 million to ¥41,412 million at March 31, 1998. Net unrealized gain was classified in a separate compo-nent of net assets, net of applicable income taxes, as “Revalua-tion reserve for land” and in liabilities as “Deferred tax liabilities for land revaluation” in the accompanying consoli-dated balance sheets. Under the Law, once after the Bank revalued the land, it is not permitted to revalue the land. Such unrealized revaluation loss at March 31, 2013 was ¥16,045 million ($170,604 thousand).

Deferred tax assets:Allowance for loan losses

and write-off of claimsRetirement benefitsDepreciationOtherLess valuation allowance

Total deferred income tax assets

Deferred tax liabilities:Unrealized gains on

securities availablefor sale

Gain on contibution ofsecurities to employeeretierment benefit trust

Other

Total deferred income taxliabilities

Net deferred tax assets(liabilities)


2012 2013 2013

Millions of Yen

¥ 13,124 5,007 1,344 5,447

(4,143)

20,780

(13,551)

(854)(661)

(15,067)

¥ 5,713

¥ 11,543 4,884 1,248 4,649

(4,313)

18,013

(23,267)

(826)(695)

(24,790)

¥ (6,776)

$ 122,734 51,938 13,275 49,438

(45,858)

191,528

(247,399)

(8,785)(7,398)

(263,583)

$ (72,055)

13. Long-lived AssetsThe Group recognized impairment losses for the years ended March 31, 2013 as follows:

Niigata Pref.

Niigata Pref.

Total

Thousands ofMillionsof Yen U.S. DollarsArea

Branch offices and other

Idle assets and other

Principal purpose

of use

Land and buildings

Land and buildings

Classification

$ 1,821

$ 55

$ 1,876

¥ 171

¥ 5

¥ 176

Service costs – benefits earned during the year

Interest cost on projected benefit obligation

Expected return on planassets

Amortization of priorservice cost

Amortization of actuarialdifferences

Other

Severance and retirement benefit expenses

Basic assumptions of employees’ retirement benefits calculation:


¥ 951

818

(481)

(332)

1,102 279

¥2,337

$ 10,120

8,707

(5,121)

(3,532)

11,717 2,967

$24,858

2012 2013 2013

Millions of Yen

Discount rateExpected return rate of assetsAllocation basis of expect

retirement benefitsAmortization term of unrecognized

prior service costAmortization term of unrecognized

actuarial differences

0–2.0%

Fixed

10 years

10 years

20122.0%

0–2.0%

Fixed

10 years

10 years

2013

¥ 978

816

(466)

(518)

1,764 295

¥ 2,869

11. Income taxes The Bank is subject to a number of taxes levied on income,which, in the aggregate, indicate a statutory rate in Japan of approximately 40.4% for the year ended March 31, 2012 and 37.8% for the year ended March 31, 2013.

The following table summarizes the significant differences between the statutory tax rate and the Bank’s effective tax rate for financial statement purposes for the years ended March 31, 2012:

The difference for the years ended March 31, 2013 are not disclosed as permitted under Japanese accounting standards since the difference is not more than 5% of the statutory tax rate.

Significant components of deferred tax assets and liabilities at March 31, 2012 and 2013 were as follows:

Statutory tax rateDecrease of valuation allowanceNon-taxable income (dividend income, etc.)Non-deductible expensesInhabitants taxEnd-of-term deferred tax assets revised down due to tax rate changesOther

Effective tax rate

10. Employee’s severance and pen-sion benefits

The Provision for retirement benefits included in the liability section of the consolidated balance sheets as of March 31, 2012and 2013 consisted of the following:

Included in the consolidated statements of operations for the years ended March 31, 2012 and 2013 are severance and retirement benefit expenses comprised of the following:

Projected benefit obligationPension assetsUnrecognized actuarial

differencesUnrecognized prior

service cost

Net amount recognized in theconsolidated balance sheets

Prepaid pension costs

Provision for retirement benefits


¥ 41,778 (29,703)

(2,460)

484

10,098 ––

¥ 10,098

$ 444,215 (315,831)

(26,160)

5,155

107,378 ––

$ 107,378

2012 2013 2013

Millions of Yen

¥ 42,131 (27,164)

(5,450)

817

10,333 ––

¥ 10,333

2.0%

201240.4%

(0.6)(1.8)

0.4 0.3

8.3 (0.0)

47.0%


Depreciation and amortization



Operating income:External customersIntersegment

Total

Operating profit

Assets

Millions of Yen

2012

2013Thousands of U.S. Dollars

Segment information for the years ended March 31, 2012 and 2013 is shown in the tables below:

15. Segment information

Banking Leasing Securities OthersSubtotal Total Adjustment Consolidated

2013Banking Leasing Securities OthersSubtotal Total Adjustment Consolidated

Millions of Yen


Liabilities

Others

Increase in tangible and intangible fixed assets

Interest incomeInterest expenses


Total

Operating profit (loss)

Assets

Liabilities

Others




Total

Operating profit

Assets

Liabilities

Others



$ 25,74314,768

$ 40,51114,832

$ 194,284$ 80,362

755,511

154

12

$ 25,69653

$ 25,7502,915

$ 158,600$ 66,910

481641127

137

$ 990,21214,616

$ 1,004,829198,350

$ 52,293,326$ 49,386,827

37,736595,073

32,550

55,594

$ 1,015,95629,385

$ 1,045,341213,183

$ 52,487,611$ 49,467,189

37,812600,584

32,705

55,606

$ (2,657)(29,385)

$ (32,042)(1,294)

$ (431,741)$ (398,038)

514 (2,976)(2,782)

1,969

$ 1,013,298––

$ 1,013,298211,888

$ 52,055,869$ 49,069,151

38,327597,607

29,922

57,576

$ 169,7948,408

$ 178,2038,901

$ 472,756$ 378,851

5,097549

2,973

6,996

$ 794,7216,154

$ 800,875186,534

$ 51,661,969$ 48,941,064

32,157593,882

29,448

48,460

¥ 2,4211,388

¥ 3,8101,395

¥ 18,272¥ 7,558

6518

14

1

¥ 2,4165

¥ 2,421274

¥ 14,916¥ 6,292

456012

12

¥ 93,1291,374

¥ 94,50418,654

¥ 4,918,187¥ 4,644,831

3,54955,966

3,061

5,228

¥ 95,5502,763

¥ 98,31420,049

¥ 4,936,459¥ 4,652,389

3,55556,484

3,075

5,229

¥ (249)(2,763)

¥ (3,013)(121)

¥ (40,605)¥ (37,435)

48 (279)(261)

185

¥ ¥95,300––

¥ 95,30019,928

¥ 4,895,854¥ 4,614,953

3,60356,204

2,814

5,415

¥ 15,969790

¥ 16,760837

¥ 44,462¥ 35,631

47951

279

657

¥ 74,743578

¥ 75,32217,543

¥ 4,858,808¥ 4,602,907

3,02455,854

2,769

4,557

¥ 2,4411,411

¥ 3,8531,174

¥ 16,374¥ 6,618

6601

16

----

¥ 2,075 2

¥ 2,078 (23)

¥ 11,773 ¥ 5,360

43 100

17

44

¥ 97,0831,456

¥ 98,54020,522

¥ 4,708,252¥ 4,460,723

3,84057,898

3,807

2,671

¥ 99,5242,868

¥ 102,39321,697

¥ 4,724,626¥ 4,467,341

3,84758,500

3,824

2,671

¥ (346)(2,868)

¥ (3,215)(64)

¥(41,754)¥(38,591)

115 (311)(293)

361

¥ 99,178 ----

¥ 99,178 21,632

¥ 4,682,871 ¥ 4,428,750

3,962 58,189

3,531

3,032

¥ 16,184820

¥ 17,005866

¥ 44,454¥ 36,377

47040

347

713

¥ 78,822634

¥ 79,45619,679

¥ 4,652,024¥ 4,418,985

3,32757,7573,442

1,912

(Related information)Current consolidated fiscal year (from April 1, 2012 to March 31, 2013)1. Segment information by service

2. Segment information by location

(1) Operating incomeSince the operating income for external customers of Japan is more than 90% of the operating income of the consoli-dated income statement, such information is not disclosed.

(2) Tangible fixed assetsSince the amount of tangible fixed assets in Japan is more than 90% of the tangible fixed assets of the consolidatedbalance sheet, such information is not disclosed.

3. Segment information by main customersSince the operating income for specific customers is less than 10% of the operating income of the consolidated incomestatement, such information is not disclosed.

(Information on impairment loss of fixed assets by reported segment)Current consolidated fiscal year (from April 1, 2012 to March 31, 2013)

(Information on amortization of goodwill and unamortized balance by reported segment)None available

(Information on gain on negative goodwill by reported segment)None available

Operating income: External customers

TotalOthersLeasingSecuritiesInvestment

Loans

$ 1,013,298$ 180,568$ 168,506$ 215,727$ 448,495


TotalOthers

Impairment loss $ 1,876––$ 1,876$ 12$ 1,864 ––


Banking Leasing Securities Subtotal



Loans

¥ 95,300¥ 16,982¥ 15,848¥ 20,289¥ 42,181

Millions of Yen

TotalOthers

Impairment loss ¥ 176––¥ 176¥ 175 ––

Impairment loss

Impairment loss ¥ 1

Millions of Yen







Total

Operating profit

Assets

Millions of Yen

2012

2013Thousands of U.S. Dollars

Segment information for the years ended March 31, 2012 and 2013 is shown in the tables below:

15. Segment information


2013Banking Leasing Securities OthersSubtotal Total Adjustment Consolidated

Millions of Yen


Liabilities

Others




Total

Operating profit (loss)

Assets

Liabilities

Others




Total

Operating profit

Assets

Liabilities

Others



$ 25,74314,768

$ 40,51114,832

$ 194,284$ 80,362

755,511

154

12

$ 25,69653

$ 25,7502,915

$ 158,600$ 66,910

481641127

137

$ 990,21214,616

$ 1,004,829198,350

$ 52,293,326$ 49,386,827

37,736595,073

32,550

55,594

$ 1,015,95629,385

$ 1,045,341213,183

$ 52,487,611$ 49,467,189

37,812600,584

32,705

55,606

$ (2,657)(29,385)

$ (32,042)(1,294)

$ (431,741)$ (398,038)

514 (2,976)(2,782)

1,969

$ 1,013,298––

$ 1,013,298211,888

$ 52,055,869$ 49,069,151

38,327597,607

29,922

57,576

$ 169,7948,408

$ 178,2038,901

$ 472,756$ 378,851

5,097549

2,973

6,996

$ 794,7216,154

$ 800,875186,534

$ 51,661,969$ 48,941,064

32,157593,882

29,448

48,460

¥ 2,4211,388

¥ 3,8101,395

¥ 18,272¥ 7,558

6518

14

1

¥ 2,4165

¥ 2,421274

¥ 14,916¥ 6,292

456012

12

¥ 93,1291,374

¥ 94,50418,654

¥ 4,918,187¥ 4,644,831

3,54955,966

3,061

5,228

¥ 95,5502,763

¥ 98,31420,049

¥ 4,936,459¥ 4,652,389

3,55556,484

3,075

5,229

¥ (249)(2,763)

¥ (3,013)(121)

¥ (40,605)¥ (37,435)

48 (279)(261)

185

¥ ¥95,300––

¥ 95,30019,928

¥ 4,895,854¥ 4,614,953

3,60356,204

2,814

5,415

¥ 15,969790

¥ 16,760837

¥ 44,462¥ 35,631

47951

279

657

¥ 74,743578

¥ 75,32217,543

¥ 4,858,808¥ 4,602,907

3,02455,854

2,769

4,557

¥ 2,4411,411

¥ 3,8531,174

¥ 16,374¥ 6,618

660116

----

¥ 2,075 2

¥ 2,078 (23)

¥ 11,773 ¥ 5,360

43 100

17

44

¥ 97,0831,456

¥ 98,54020,522

¥ 4,708,252¥ 4,460,723

3,84057,898

3,807

2,671

¥ 99,5242,868

¥ 102,39321,697

¥ 4,724,626¥ 4,467,341

3,84758,5003,824

2,671

¥ (346)(2,868)

¥ (3,215)(64)

¥(41,754)¥(38,591)

115 (311)(293)

361

¥ 99,178 ----

¥ 99,178 21,632

¥ 4,682,871 ¥ 4,428,750

3,962 58,189 3,531

3,032

¥ 16,184820

¥ 17,005866

¥ 44,454¥ 36,377

47040

347

713

¥ 78,822634

¥ 79,45619,679

¥ 4,652,024¥ 4,418,985

3,32757,757

3,442

1,912

(Related information)Current consolidated fiscal year (from April 1, 2012 to March 31, 2013)1. Segment information by service

2. Segment information by location

(1) Operating incomeSince the operating income for external customers of Japan is more than 90% of the operating income of the consoli-dated income statement, such information is not disclosed.

(2) Tangible fixed assetsSince the amount of tangible fixed assets in Japan is more than 90% of the tangible fixed assets of the consolidatedbalance sheet, such information is not disclosed.

3. Segment information by main customersSince the operating income for specific customers is less than 10% of the operating income of the consolidated incomestatement, such information is not disclosed.

(Information on impairment loss of fixed assets by reported segment)Current consolidated fiscal year (from April 1, 2012 to March 31, 2013)

(Information on amortization of goodwill and unamortized balance by reported segment)None available

(Information on gain on negative goodwill by reported segment)None available



Loans

$ 1,013,298$ 180,568$ 168,506$ 215,727$ 448,495


TotalOthers

Impairment loss $ 1,876––$ 1,876$ 12$ 1,864 ––





Loans

¥ 95,300¥ 16,982¥ 15,848¥ 20,289¥ 42,181

Millions of Yen

TotalOthers

Impairment loss ¥ 176––¥ 176¥ 175 ––

Impairment loss

Impairment loss ¥ 1

Millions of Yen



Prior to vesting (stocks)

　At end of previous consolidated fiscal year

　Granted

　Forfeited

　Vested

　Unvested

After vesting (stocks)


　Vested

　Exercised

　Forfeited

　Unexercised

431,600

––

––

164,200

267,400

––

164,200

164,200

––

––

2010 Stock options

2012 Stock options

② Unit price

(2)Scale of stock options and changes① Number of stock options

Exercising price (¥)

Avg. stock price at time of exercising (¥)

Fair carrying value per unit at date of grant (¥)

1

240

286

2010 Stock options

1

––

211

2012 Stock options

Volatility of stock price

Expected remaining period

Expected dividend

Risk-free interest rate

25.30%

2years and 6months

¥7 per share

0.103%

3. Pro forma calculation of the fair carrying value per unit of stock optionsThe pro forma calculation of the fair carrying value per unit of 2012 stock options granted in the current consolidated fiscal year is as follows.

(1) Applied evaluation method: Black-Scholes method(2) Main base numerical value and pro forma calculation

Written-off of loansLosses on sales of fixed assetsLosses on sales of stocks　and other securitiesLosses on devaluation of stocks　and other securitiesImpairment lossesOther

Total

Reversal of allowance for loan losses

Gain on sales of stocksand other securities

Recoveries of written-off claimsOther

Total

$ 27,381949

33,250

3,7111,876

155,436$ 222,606


¥ 2,57589

3,127

349176

14,618¥ 20,936

2012 2013 2013

Millions of Yen

$ 4,503

2,47613,113

181,400$201,494


2012 2013 2013

Millions of Yen

¥ 2,005

3231,444

17,391¥ 21,165

¥ 1,985619

2,229

86804

15,336¥ 21,061

¥ 423

2321,233

17,060¥18,950

16. Other incomeOther income for the years ended March 31, 2012 and 2013 consisted of the following:

17. Other expensesOther expenses for the years ended March 31, 2012 and 2013 consisted of the following:

18. Subsequent eventsAt the general meeting held on June 25, 2013, the stockholders approved a cash dividend totaling ¥1,250 million ($13,290 thousand) or ¥3.50 per share.

19. Stock options1. Stock-based compensation expenses was ¥130 million ($1,386 thousand) for the fiscal year ended March 31, 2013.

2. Details/scale of stock options and changes(1)Stock option details

Date of grant

Vesting conditions

Vesting period

Exercise period

9 directors and 8 executive officers of the Daishi Bank

Daishi Bank common stock: 465,400 stocks

July 27,2010

None set

None set

July 28,2010 to July 27,2040

Number of stock options by stock type

Number and type of option holders

2010 Stock options

606,600

––

––

203,800

402,800

––

203,800

203,800

––

––

2011 Stock options

––

597,600

––

––

597,600

––

––

––

––

––

2012 Stock options

1

240

236

2011 Stock options



July 28, 2011

None set

None set

July 29,2011 to July 28,2041

2011 Stock options7 directors and 9 executive officers of the Daishi Bank


July 30, 2012

None set

None set

July 31,2012 to July 30,2042

2012 Stock options


Prior to vesting (stocks)


　Granted

　Forfeited

　Vested

　Unvested

After vesting (stocks)


　Vested

　Exercised

　Forfeited

　Unexercised

431,600

––

––

164,200

267,400

––

164,200

164,200

––

––

2010 Stock options

2012 Stock options

② Unit price

(2)Scale of stock options and changes① Number of stock options

Exercising price (¥)

Avg. stock price at time of exercising (¥)

Fair carrying value per unit at date of grant (¥)

1

240

286

2010 Stock options

1

––

211

2012 Stock options

Volatility of stock price

Expected remaining period

Expected dividend

Risk-free interest rate

25.30%

2years and 6months

¥7 per share

0.103%

3. Pro forma calculation of the fair carrying value per unit of stock optionsThe pro forma calculation of the fair carrying value per unit of 2012 stock options granted in the current consolidated fiscal year is as follows.

(1) Applied evaluation method: Black-Scholes method(2) Main base numerical value and pro forma calculation

Written-off of loansLosses on sales of fixed assetsLosses on sales of stocks　and other securitiesLosses on devaluation of stocks　and other securitiesImpairment lossesOther

Total

Reversal of allowance for loan losses

Gain on sales of stocksand other securities

Recoveries of written-off claimsOther

Total

$ 27,381949

33,250

3,7111,876

155,436$ 222,606


¥ 2,57589

3,127

349176

14,618¥ 20,936

2012 2013 2013

Millions of Yen

$ 4,503

2,47613,113

181,400$201,494


2012 2013 2013

Millions of Yen

¥ 2,005

3231,444

17,391¥ 21,165

¥ 1,985619

2,229

86804

15,336¥ 21,061

¥ 423

2321,233

17,060¥18,950

16. Other incomeOther income for the years ended March 31, 2012 and 2013 consisted of the following:

17. Other expensesOther expenses for the years ended March 31, 2012 and 2013 consisted of the following:

18. Subsequent eventsAt the general meeting held on June 25, 2013, the stockholders approved a cash dividend totaling ¥1,250 million ($13,290 thousand) or ¥3.50 per share.

19. Stock options1. Stock-based compensation expenses was ¥130 million ($1,386 thousand) for the fiscal year ended March 31, 2013.

2. Details/scale of stock options and changes(1)Stock option details

Date of grant

Vesting conditions

Vesting period

Exercise period



July 27,2010

None set

None set

July 28,2010 to July 27,2040

Number of stock options by stock type

Number and type of option holders

2010 Stock options

606,600

––

––

203,800

402,800

––

203,800

203,800

––

––

2011 Stock options

––

597,600

––

––

597,600

––

––

––

––

––

2012 Stock options

1

240

236

2011 Stock options



July 28, 2011

None set

None set

July 29,2011 to July 28,2041

2011 Stock options7 directors and 9 executive officers of the Daishi Bank


July 30, 2012

None set

None set

July 31,2012 to July 30,2042

2012 Stock options


Corporate Organization Directory Chart

Assets Review and Audit Office


Secretariat

Planning and Coordination Division

Public Relations Office

System Integration Promotion Office

Compliance and Risk Supervision Office

ALM Office


Audit and Inspection Division

Credit Supervision Division

Loan Examination Division

Operation Centralization Division

Operation Support Division

Treasury and Capital Markets Division

International Division

Corporate Support Office


Business Process Reengineering Promotion Office

Loan Administration Division

Loan Operation Center

International Business Support Office

Shanghai Representative Office

Securities Operation Office

Securities Operation Administration Office

New Business Planning Office

Customer Relations Office

Consulting Promotion Office

Public Institutions Office

Credit Card Office

Call Center

Loan Centers

Business Promotion Division

Consumer Business Support Division

Corporate Business Support Division

Personnel Division

Human Resources Development Office


General Affairs Division

Tokyo Representative Office

Offices

Board of Corporate Auditors

Accounting Auditors

Board of Directors

Executive Committee

General Meeting of Stockholders

Sourcing Administration Office

Offices

Consulting Plaza

Area Headquarters

OperationHeadquarters


Number of Offices by Area

Niigata 110

Tokyo 2

Others 7

Total 119


Domestic

Shanghai 1

Overseas



Head Office1071-1, Higashiborimae-dori7-bancho chuo-ku, Niigata 951-8066, JapanTelephone: 81(25)222-4111URL: http://www.daishi-bank.co. jp/

Internetional Division HeadquartersAddress: same as above.Telephone: 81(25)222-4111Facsimile: 81(25)225-2331SWIFT: DAIS JPJT

Shanghai Representative Office28 th floor, Hang Seng Bank Tower,No.1000 Lujiazui Ring Road,Pudong New Area,Shanghai,200120, People’s Republic of ChinaTelephone: 86(21)5011-9832Facsimile: 86(21)5011-9833

Chief RepresetativeNaoki Tsuchida

Board of Directors andCorporate Auditors

Service Network

Major stockholders (10 largest)Number of Share

(Thousand)

The Daishi Lease Co., Ltd.2-10, Akashi 2-chome chuo-ku, Niigata 950-0084

The Daishi Computer Service Co., Ltd.1-17, Abumi 1-chome chuo-ku, Niigata 950-0913

The Daishi Guaranty Co., Ltd.224-1, Honcho-dori 5-bancho chuo-ku, Niigata 951-8067

The Daishi JCB Card Co., Ltd.1245, Kamiokawamae-dori 8-bancho chuo-ku, Niigata 950-8068

The Daishi Management Consulting Co., Ltd.1-18, Higashi-odori 2-chome chuo-ku, Niigata 950-0087

The Daishi DC Card Co., Ltd.1245, Kamiokawamae-dori 8-bancho chuo-ku, Niigata 950-8068

latipaCnoitaroprocnIssenisub rojaMynapmoC

Ratio of shareholder voting rights held bythe Daishi Bank

General leasing business

Computer-related services

Credit guarantee business

Credit card andcredit guaranty businesses

Consulting business andventure capital

Credit card business

Niigata Securities Co., Ltd.8-26, Jonaicho 3-chome, Nagaoka 940-0061

The securities industry

Corporate Data

Subsidiaries

PresidentFujio Namiki

Deputy PresidentYoshihito Saito

Senior Managing DirectorKousuke Sasaki

Managing DirectorsSatoshi HasegawaAkira SakagamiMinoru SoyamaSeiya Kiguchi

DirectorAkira Kiriyama

Standing Corporate AuditorsYasunori KokuryouHideki Hara

Corporate AuditorsMichiei TakahashiKouichi MasudaToshihito Suzuki

International Division General ManagerYutaka Fuzisawa

Percent

(As of June 25, 2013)

1. Japan Trustee Service Bank,Ltd.(Trust Account) 19,469 5.40

2. Nippon Life Insurance Company 12,826 3.56

3. Employees' stockholdings 10,067 2.79

4. Tohoku Electric Power Co.,Inc. 8,372 2.32

5. Meiji Yasuda Life Insurance Company 8,159 2.26

6. The Bank of Tokyo-Mitsubishi UFJ,Ltd. 7,484 2.07

7. Daido Life Insurance Company 7,056 1.95

8. Nipponkoa Insurance Co.,Ltd. 6,947 1.92

9. The Master Trust Bank of Japan,Ltd.(Trust Account) 6,527 1.81

10. Tokio Marine & Nichido Fire Insurance Co.,Ltd 6,000 1.66

Nov. 11, 1974 ¥ 100 million 5%

May 10, 1976 ¥ 15 million 5%

Oct. 27, 1978 ¥ 50 million 5%

March 1,1990 ¥ 30 million 5%

Aug. 8,1952 ¥ 600 million 48%

Nov. 12, 1982 ¥ 30 million 5%

June 8, 1984 ¥ 20 million 5%


Company History

1990 The New York Office is opened1992 The New Head Office is completed

1993 The Hong Kong Office is openedBegan operation as a trust services agent

1998 Began over-the-counter sales of investment trusts1999 The New York Office is closed2000 The Hong Kong Office is closed2001 Began services as a non-life insurance agent2002 Began services as a life insurance agent2005 Began a securities brokerage business2006 Niigata Securities Co., Ltd. made a consolidated

subsidiary2011 The Shanghai Representative Office is opened2012 Outstanding deposits reach ¥4 trillion2013 140 years since the Daishi Bank's founding

A complete view of the current Head Office completed in 1992

1873 Founded as The Fourth National Bank of Japan 1874 Operations begin, and the Tokyo Office opened

1896 Reorganized as Niigata Bank, Ltd.

1912 Successive mergers with banks in Niigata prefecture1917 Corporate name changed to The Daishi Bank, Ltd.

1945 Merged with Niigata Trust Company to operate trust services concurrentlyThis brings the number of banks merged with to 29

1949 Listed on the Niigata Stock Exchange1961 Began foreign exchange trading

1963 Trust services discontinued1973 The Daishi Bank celebrates 100 years since its founding

Listed on the second section of the Tokyo Stock Exchange

1975 Changed listing of shares to the first section of the Tokyo Stock Exchange

1977 Began direct dealings with overseas banks1978 Outstanding deposits reach ¥1 trillion1982 Obtained all-inclusive approval for overseas

correspondent agreements1985 Began dealing operations1986 The New York Representative Office is opened1988 The Hong Kong Representative Office is opened

A complete view of the newly built Head Office in 1882



A complete view of the Head Office at the time of its founding






Documents

DAISHI REPORT 2013 · Daishi Bank is the oldest bank in Japan and the most influential financial institution in the prefecture. It was founded in 1873 as the Fourth National Bank