Notice Regarding Revision of Full-Year Earnings Guidance for the Fiscal Year Ending March 2026

Details of the Earnings Guidance Revision

The consolidated full-year earnings forecast for the fiscal year ending March 2026 has been revised. Ordinary income was previously forecasted at a positive 3.5 billion yen but is now expected to post a loss of 30 billion yen. Net income attributable to owners of parent was also revised downward significantly from a positive 3.5 billion yen forecast to a loss of 26 billion yen. Earnings per share decreased from 98.17 yen to a loss of 729.27 yen. Individual earnings forecasts have been revised similarly. The dividend forecast remains unchanged with a year-end dividend of 35 yen and an annual dividend of 35 yen.

Reasons for the Revision and Future Policy

In the third quarter financial results for the fiscal year ending March 2026, core operations progressed smoothly thanks to increases in deposits and loans. However, due to rising domestic interest rates and an expansion in unrealized losses on securities, a securities disposal loss of approximately 35 billion yen is expected to be recorded in the fourth quarter. This is projected to lead to a significant net loss for the fiscal year. The bank aims to reduce future interest rate risks and enhance profitability by restructuring its investment portfolio. Funds from sales will be used for business loans in the regional area to contribute to revitalizing the local economy.

Reduction of Executive Compensation

Following the revision of earnings guidance, to clarify management responsibility, the representative director and president executive officer and the representative director and deputy president executive officer will have their monthly compensation reduced by 30%; managing directors and executive directors will have a 25% reduction; and managing executive officers will receive a 20% reduction. The applicable period is three months from April through June 2026.