Regarding the Capital Adequacy Ratio at the End of the Third Quarter of the Fiscal Year Ending March 2026

Status of Capital Adequacy Ratio

At the end of the third quarter of the fiscal year ending March 2026 (end of December 2025), Hokuyo Bank, Ltd.'s capital adequacy ratio was 12.61% on a consolidated basis and 12.28% on a standalone basis, decreasing by 0.22% and 0.20% respectively from the previous quarter (end of September 2025). While the capital amount increased to ¥377.4 billion consolidated and ¥361.3 billion standalone, the increase in risk assets to ¥2,990.8 billion consolidated and ¥2,940.7 billion standalone was the main factor leading to the decline in the ratio. On a Basel III fully implemented basis, the capital adequacy ratios were 11.31% consolidated and 11.06% standalone, also showing slight decreases compared to the previous quarter.

Disclosures and Future Information Provision

Credit risk is calculated using the Basic Internal Ratings-Based Approach, and operational risk is calculated using the Standardized Measurement Approach. The total required capital is equivalent to 4% of risk assets, etc. Detailed disclosures on the composition of capital are published on the company’s website based on the "Pillar 3 (Market Discipline)" requirements. By referring to this information, investors can gain a more detailed understanding of the bank's capital soundness and risk management status.