FINANCIAL STATEMENT 2009

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					FINANCIAL   STATEMENT   2009
                                                          Financial Statement 2009
                                                                Fiscal Year Ended March31,2009




                               CONTENTS

   Independent Auditors’ Report------------------------------     2

   Consolidated Balance Sheets ------------------------------     3

   Consolidated Statements of Operations ----------------         4

   Consolidated Statements of Changes In Equity -----             5

   Consolidated Statements of Cash Flows ---------------          7

   Notes to Consolidated Financial Statements----------           9




THE CHUKYO BANK,LIMITED                   1
                                                                                Financial Statement 2009
                                                                                           Fiscal Year Ended March31,2009


                                                                                        Deloitte Touche Tohmatsu LLC
                                                                                        Nagoya Daiya Building 3-goukan,
                                                                                        13-5, Meieki 3-chome,
                                                                                        Nakamura-ku, Nagoya
                                                                                        Aichi 450-8530,Japan

                                                                                        Tel: +81(52)565 5511
                                                                                        Fax: +81(52)569 1394
                                                                                        www.deloitte.com/jp

INDEPENDENT AUDITORS’ REPORT

To the Board of Directors of
    The Chukyo Bank, Ltd.:

We have audited the accompanying consolidated balance sheets of The Chukyo Bank, Ltd. (the Bank ) and
subsidiaries as of March 31, 2009 and 2008, and the related consolidated statements of operations, changes in
equity and cash flows for the years then ended, all expressed in Japanese yen. These consolidated financial
statements are the responsibility of the Bank’s management. Our responsibility is to express an opinion on
these consolidated financial statements based on our audits.

We conducted our audits in accordance with auditing standards generally accepted in Japan. Those standards
require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements
are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the
amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles
used and significant estimates made by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the
consolidated financial position of the Bank and subsidiaries as of March 31, 2009 and 2008, and the consolidated
results of their operations and their cash flows for the years then ended in conformity with accounting principles
generally accepted in Japan.

Our audits also comprehended the translation of Japanese yen amounts into U.S. dollar amounts and, in our
opinion, such translation has been made in conformity with the basis stated in Note 1. Such U.S. dollar
amounts are presented solely for the convenience of readers outside Japan.




June 26, 2009
(August 11, 2009 as to Note 26 (2))




THE CHUKYO BANK,LIMITED                                    2
                                                                                       Financial Statement 2009
                                                                                                   Fiscal Year Ended March31,2009

THE CHUKYO BANK, LTD. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
MARCH 31, 2009 AND 2008
                                                                                                           Thousands of
                                                                              Millions of Yen             U.S. Dollars (Note 1)
                                                                           2009             2008               2009
ASSETS:
   Cash and due from banks (Note 3)                                        ¥ 72,022        ¥ 52,236         $    733,048
   Call loans and bills purchased                                             2,095           1,260               21,323
   Monetary receivables purchased                                               266           1,721                2,708
   Trading securities (Note 4)                                                  498             694                5,069
   Securities (Notes 4 and 11)                                              352,003         370,247            3,582,728
   Loans and bills discounted (Note 5)                                    1,198,158       1,187,219           12,194,993
   Foreign bills of exchange (Note 6)                                         6,761           5,892               68,814
   Other assets (Note 7)                                                     13,040          11,500              132,723
   Premises and equipment (Notes 8, 9 and 12)                                22,464          22,552              228,641
   Intangible assets                                                             80              83                  814
   Deferred tax assets (Note 13)                                              9,029             872               91,898
   Customers' liabilities for acceptances and guarantees (Note 10)           10,640          12,676              108,295
   Reserve for possible loan losses                                         (26,818)        (15,646)            (272,957)
         Total assets                                                   ¥ 1,660,238     ¥ 1,651,306         $ 16,898,097
LIABILITIES:
   Deposits (Notes 11 and 14)                                           ¥ 1,518,319     ¥ 1,502,496        $    15,453,628
   Call money and bills sold (Note 11)                                       15,000                -               152,672
   Borrowed money (Note 15)                                                        -             800                      -
   Foreign bills of exchange (Note 6)                                             3              34                     31
   Subordinated bonds (Note 16)                                              20,000          20,000                203,562
   Other liabilities (Note 18)                                               14,565          15,820                148,245
   Liability for retirement benefits for employees (Note 17)                  1,497           1,328                 15,237
   Retirement allowances for directors and corporate auditors                   180             159                  1,832
   Reserve for reimbursement of dormant deposits                                398             350                  4,051
   Reserve for contingencies                                                    192              61                  1,954
   Deferred tax liabilities (Note 13)                                              -            943                       -
   Deferred tax liabilities for land revaluation surplus (Note 12)            4,106           4,221                 41,791
   Acceptances and guarantees (Note 10)                                      10,640          12,676                108,295
         Total liabilities                                                1,584,900       1,558,888             16,131,298


COMMITMENTS AND CONTINGENT LIABILITIES (Notes 19, 23 and 24)

EQUITY (Note 20):
 Capital stock:
   Common stock: authorized, 500,000 thousand shares;
                     issued, 217,459 thousand shares in 2009 and 2008        31,844          31,844               324,112
 Capital surplus                                                             23,185          23,185               235,980
 Retained earnings                                                           16,458          19,581               167,511
 Land revaluation surplus (Note 12)                                           5,022           5,197                51,115
 Net unrealized (loss) gain on available-for-sale securities                 (1,648)         12,209               (16,774)
 Deferred loss on derivatives under hedge accounting                           (105)           (224)               (1,069)
 Treasury stock, at cost:
     565 thousand shares in 2009 and 471 thousand shares in 2008               (215)           (188)                (2,188)
         Total                                                               74,541          91,604                758,687
 Minority interests                                                             797             814                  8,112
         Total equity                                                        75,338          92,418                766,799
         Total liabilities and equity                                   ¥ 1,660,238     ¥ 1,651,306             16,898,097


See notes to consolidated financial statements.

THE CHUKYO BANK,LIMITED                                          3
                                                                 Financial Statement 2009
                                                                                   Fiscal Year Ended March31,2009

THE CHUKYO BANK, LTD. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
YEARS ENDED MARCH 31, 2009 AND 2008
                                                                                                Thousands of
                                                               Millions of Yen               U.S. Dollars (Note 1)
                                                             2009           2008                    2009

INCOME:
 Interest on:
  Loans and discounts                                       ¥ 25,598           ¥ 25,671              $ 260,540
  Securities                                                   5,469              5,564                 55,664
  Other                                                          600                724                  6,107
 Fees and commissions                                          4,561              5,164                 46,422
 Other operating income                                        1,369                927                 13,934
 Gain on sales of premises and equipment                            -               117                       -
 Collection of previously unrecoverable debts                      8                191                     81
 Other income (Note 21)                                        6,745              1,951                 68,651

      Total income                                            44,350               40,309               451,399

EXPENSES:
 Interest on:
  Deposits                                                     5,048                5,011                51,379
  Borrowings                                                       8                   36                    81
  Bonds                                                          334                  335                 3,399
  Other                                                           93                  117                   947
 Fees and commissions                                          1,764                1,875                17,954
 Other operating expenses                                      2,775                1,048                28,244
 General and administrative expenses                          21,647               21,580               220,326
 Provision for possible loan losses                           14,103                1,819               143,542
 Loss on sales and disposal of premises and equipment             80                   60                   814
 Impairment loss on long-lived assets (Note 9)                     3                  108                    31
 Other expenses (Note 22)                                      3,531                2,725                35,939

     Total expenses                                           49,386               34,714               502,656

(LOSS) INCOME BEFORE INCOME TAXES AND MINORITY INTERESTS       (5,036)              5,595               (51,257)

INCOME TAXES (Note 13):
 Current                                                          206               1,881                 2,097
 Deferred                                                      (3,048)               (470)              (31,023)
     Total income taxes                                        (2,842)              1,411               (28,926)

MINORITY INTERESTS IN NET INCOME                                  18                  66                    183

NET (LOSS) INCOME                                           ¥ (2,212)          ¥    4,118           $   (22,514)


PER SHARE OF COMMON STOCK (Note 2.q):                                    Yen                     U.S. Dollars
 Basic net (loss) income                                    ¥ (10.19)          ¥    18.97             $ (0.10)
 Cash dividends applicable to the year                          4.00                 5.00                  0.04

See notes to consolidated financial statements.




THE CHUKYO BANK,LIMITED                                 4
                                                                               Financial Statement 2009
                                                                                              Fiscal Year Ended March31,2009

THE CHUKYO BANK, LTD. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
YEARS ENDED MARCH 31, 2009 AND 2008
                                           Thousands                                  Millions of Yen
                                          Outstanding                                                                 Net Unrealized
                                           Number of                                                       Land      (Loss) Gain on
                                           Shares of  Common             Capital         Retained       Revaluation Available-for-sale
                                         Common Stock  Stock             Surplus         Earnings        Surplus       Securities

BALANCE AT APRIL 1, 2007                      217,054    ¥ 31,844        ¥ 23,185        ¥ 16,480         ¥ 5,265       ¥ 27,117
  Net income                                        -             -               -          4,118                -              -
  Cash dividends, \5.00 per share                   -             -               -         (1,085)               -              -
  Purchases of treasury stock                    (78)             -               -               -               -              -
  Disposal of treasury stock                      12              -               -             (0)               -              -
  Reversal of land revaluation surplus              -             -               -             68             (68)              -
  Net change in the year                            -             -               -               -               -       (14,908)
BALANCE AT MARCH 31, 2008                    216,988        31,844          23,185          19,581           5,197         12,209
 Net loss                                           -             -               -         (2,212)               -              -
 Cash dividends, \5.00 per share                    -             -               -         (1,085)               -              -
 Purchases of treasury stock                    (112)             -               -               -               -              -
 Disposal of treasury stock                       18              -               -             (1)               -              -
 Reversal of land revaluation surplus               -             -               -            175            (175)              -
  Net change in the year                            -             -               -               -               -       (13,857)
BALANCE AT MARCH 31, 2009                  ¥ 216,894      ¥ 31,844        ¥ 23,185        ¥ 16,458         ¥ 5,022       ¥ (1,648)

                                                                                      Millions of Yen
                                                        Deferred Loss
                                                        on Derivatives
                                                         under Hedge     Treasury                        Minority         Total
                                                          Accounting      Stock            Total         Interests        Equity

BALANCE AT APRIL 1, 2007                                    ¥ (671)         ¥ (166)      ¥ 103,054           ¥ 753      ¥ 103,807
  Net income                                                      -               -          4118                 -          4118
  Cash dividends, \5.00 per share                                 -               -         (1,085)               -        (1,085)
  Purchases of treasury stock                                     -            (26)            (26)               -           (26)
  Disposal of treasury stock                                      -              4               4                -             4
  Reversal of land revaluation surplus                            -               -               -               -              -
  Net change in the year                                   ¥ 447                  -        (14,461)             61        (14,400)
BALANCE AT MARCH 31, 2008                                     (224)           (188)         91,604             814         92,418
 Net loss                                                         -               -         (2,212)               -        (2,212)
 Cash dividends, \5.00 per share                                  -               -         (1,085)               -        (1,085)
 Purchases of treasury stock                                      -            (34)            (34)               -           (34)
 Disposal of treasury stock                                       -              7               6                -             6
 Reversal of land revaluation surplus                             -               -               -               -              -
  Net change in the year                                       119                -        (13,738)            (17)       (13,755)
BALANCE AT MARCH 31, 2009                                  ¥ (105)         ¥ (215)       ¥ 74,541           ¥ 797       ¥ 75,338




THE CHUKYO BANK,LIMITED                           5
                                                                                 Financial Statement 2009
                                                                                               Fiscal Year Ended March31,2009

THE CHUKYO BANK, LTD. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
YEARS ENDED MARCH 31, 2009 AND 2008
                                                                     Thousands of U.S. Dollars (Note 1)
                                                                                                                Net Unrealized
                                                                                                   Land      (Loss) Gain on
                                                    Common         Capital       Retained       Revaluation Available-for-sale
                                                     Stock         Surplus       Earnings        Surplus       Securities
BALANCE AT MARCH 31, 2008                           $ 324,112      $ 235,980     $ 199,298        $ 52,896      $ 124,265
  Net loss                                                   -              -      (22,514)               -                -
  Cash dividends, $0.05 per share                            -              -      (11,044)               -                -
  Purchases of treasury stock                                -              -              -              -                -
  Disposal of treasury stock                                 -              -           (10)              -                -
  Reversal of land revaluation surplus                       -              -        1,781          (1,781)                -
  Net change in the year                                     -              -              -              -      (141,039)
BALANCE AT MARCH 31, 2009                           $ 324,112      $ 235,980     $ 167,511        $ 51,115      $ (16,774)



                                                                     Thousands of U.S. Dollars (Note 1)
                                                  Deferred Loss
                                                  on Derivatives
                                                   under Hedge     Treasury                       Minority          Total
                                                    Accounting      Stock          Total          Interests         Equity
BALANCE AT MARCH 31, 2008                             $ (2,280)      $ (1,913)    $ 932,358          $ 8,285       $ 940,643
  Net loss                                                    -              -      (22,514)                -        (22,514)
  Cash dividends, $0.05 per share                             -              -      (11,044)                -        (11,044)
  Purchases of treasury stock                                 -          (346)         (346)                -           (346)
  Disposal of treasury stock                                  -            71            61                 -             61
  Reversal of land revaluation surplus                        -              -             -                -               -
  Net change in the year                                 1,211               -     (139,828)            (173)       (140,001)
BALANCE AT MARCH 31, 2009                             $ (1,069)      $ (2,188)    $ 758,687          $ 8,112       $ 766,799




See notes to consolidated financial statements.




THE CHUKYO BANK,LIMITED                                     6
                                                                                      Financial Statement 2009
                                                                                               Fiscal Year Ended March31,2009

THE CHUKYO BANK, LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS
YEARS ENDED MARCH 31, 2009 AND 2008
                                                                                                               Thousands of
                                                                                            Millions of Yen U.S. Dollars (Note 1)
OPERATING ACTIVITIES:                                                                      2009         2008       2009

 (Loss) Income before income taxes and minority interests                                 ¥ (5,036)    ¥ 5,595     $ (51,257)
 Adjustments for:
   Income taxes paid                                                                       (1,912)      (1,844)      (19,461)
   Depreciation and amortization                                                              641          600         6,524
   Impairment loss on long-lived assets                                                         3          108            31
   Equity in (earnings) loss of an affiliated company                                         (45)          39          (458)
   Net gain on sales and redemption of securities                                          (2,434)        (155)      (24,774)
   Net foreign exchange loss                                                                   90        1,545           916
   Net loss (gain) on sales and disposal of premises and equipment                             80          (57)          814
   Changes in assets and liabilities
     Net increase in loans and bills discounted                                           (10,939)     (5,816)      (111,338)
     Net increase in deposits                                                              15,823      18,581        161,048
     Net decrease in borrowed money (excluding subordinated borrowings of the Bank)          (800)     (1,600)        (8,142)
     Net increase in due from banks (excluding due from the Bank of Japan)                    (56)       (139)          (570)
     Net (increase) decrease in call loans and bills purchased                               (834)      1,494         (8,489)
     Net increase in call money and bills sold                                             15,000            -       152,672
     Net decrease (increase) in monetary receivables purchased                              1,455         (92)        14,809
     Net (increase) decrease in foreign bills of exchange, debit                             (869)        832         (8,845)
     Net (decrease) increase in foreign bills of exchange, credit                             (31)         28           (315)
     Net increase (decrease) in reserve for possible loan losses                           11,171      (3,021)       113,700
     Net increase in liability for retirement benefits for employees                          169          40          1,720
     Net increase in retirement allowances for directors and corporate auditors                21          25            214
     Net decrease in prepaid pension expense                                                  160         110          1,629
     Net increase in interest receivable                                                   (5,819)     (5,498)       (59,227)
     Net increase in interest payable                                                         589       1,045          5,995
     Net decrease in defined contribution pension payable                                        -       (662)              -
     Net increase in other assets                                                            (786)       (590)        (8,000)
     Net increase in other liabilities                                                        158       1,100          1,608
      Total adjustments                                                                    20,835       6,073        212,061

      Net cash provided by operating activities                                            15,799      11,668       160,804

FORWARD                                                                                  ¥ 15,799     ¥ 11,668     $ 160,804

                                                                                                                  (Continued)




THE CHUKYO BANK,LIMITED                                                7
                                                                  Financial Statement 2009
                                                                             Fiscal Year Ended March31,2009

THE CHUKYO BANK, LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS
YEARS ENDED MARCH 31, 2009 AND 2008
                                                                                             Thousands of
                                                                          Millions of Yen U.S. Dollars (Note 1)
                                                                         2009         2008       2009

FORWARD                                                                 ¥ 15,799    ¥ 11,668    $ 160,804

INVESTING ACTIVITIES:
  Purchases of securities                                               (78,443)    (63,930)     (798,402)
  Proceeds from sales of securities                                      31,049      14,921       316,020
  Proceeds from maturities of securities                                 47,534      32,379       483,807
  Dividends and interest received from investing activities               5,864       5,913        59,684
  Purchases of premises and equipment                                      (736)       (612)       (7,491)
  Proceeds from sales of premises and equipment                             135          70         1,374
       Net cash provided by (used in) investing activities                5,403     (11,259)       54,992


FINANCING ACTIVITIES:
 Interest paid on subordinated loans                                        (335)       (335)      (3,410)
 Dividends paid                                                           (1,085)     (1,085)     (11,043)
 Dividends paid by subsidiaries to minority shareholders                      (1)         (1)         (10)
 Acquisition of treasury stock                                               (34)        (26)        (346)
 Proceeds from sales of treasury stock                                         5           4           51
 Repayment of lease obligations                                               (0)           -          (0)
       Net cash used in financing activities                              (1,450)     (1,443)     (14,758)

FOREIGN CURRENCY TRANSLATION ADJUSTMENTS ON CASH AND CASH EQUIVALENTS        (23)        (20)        (234)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS                      19,729      (1,054)     200,804
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR                              51,312      52,366      522,260
CASH AND CASH EQUIVALENTS, END OF YEAR (Note 3)                         ¥ 71,041    ¥ 51,312    $ 723,064


See notes to consolidated financial statements.




THE CHUKYO BANK,LIMITED                                       8
                                                                            Financial Statement 2009
                                                                                      Fiscal Year Ended March31,2009
THE CHUKYO BANK,LTD. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
YEARS ENDED MARCH 31, 2009 AND 2008

1.   Basis of Presenting Consolidated Financial Statements

      The accompanying consolidated financial statements of The Chukyo Bank, Ltd. (the “Bank”) and its
      subsidiaries (together, the “Group”) have been prepared in accordance with the provisions set forth in the
      Japanese Financial Instruments and Exchange Act and its related accounting regulations and the
      Enforcement Regulation for the Banking Law, and in conformity with accounting principles generally
      accepted in Japan, which are different in certain respects as to application and disclosure requirements of
      International Financial Reporting Standards.

      In preparing these consolidated financial statements, certain reclassifications and rearrangements have
      been made to the consolidated financial statements issued domestically in order to present them in a form
      which is more familiar to readers outside Japan. In addition, certain reclassifications have been made in
      the 2008 financial statements to conform to the classifications used in 2009.

      The consolidated financial statements are stated in Japanese yen, the currency of the country in which the
      Bank is incorporated and operates. The translations of Japanese yen amounts into U.S. dollar amounts
      are included solely for the convenience of readers outside Japan and have been made at the rate of ¥98.25
      to $1, the approximate rate of exchange at March 31, 2009. Such translations should not be construed as
      representations that the Japanese yen amounts could be converted into U.S. dollars at that or any other
      rate.

2.   Summary of Significant Accounting Policies

     a.   Consolidation

           The consolidated financial statements as of March 31, 2009 include the accounts of the Bank and all
           four (five in 2008) subsidiaries including The Chukyo Business Service Co., Ltd., The Chukyo Card
           Co., Ltd., Kikyo Service Co., Ltd. and The Chukyo Finance Co., Ltd.

           The Chukyo Business Service Co., Ltd. and Takara Fudosan Co., Ltd. were merged on April 1, 2008.
           Under the merger, the surviving company was defined as Takara Fudosan Co., Ltd. Simultaneously,
           the merged company was renamed as The Chukyo Business Service Co., Ltd.

           Under the control or influence concept, those companies in which the Bank, directly or indirectly, is
           able to exercise control over operations are fully consolidated, and those companies over which the
           Group has ability to exercise significant influence are accounted for by the equity method.

           An investment in an affiliated company, The Chukyo Sogo Leasing Co., Ltd., is accounted for by the
           equity method for the years ended March 31, 2009 and 2008.

           All significant intercompany balances and transactions have been eliminated in consolidation. All
           material unrealized profit included in assets resulting from transactions within the Group is
           eliminated.
THE CHUKYO BANK,LIMITED                                 9
                                                                             Financial Statement 2009
                                                                                        Fiscal Year Ended March31,2009




          The fiscal years of all subsidiaries are the same as the Bank.

          The Group adopted the Paragraph 30-2 of the Japanese Institute of Certified Public Accountants
          (“JICPA”) Accounting Practice Committee Statement No. 6 “Practical Guidelines on Deferred Tax
          Accounting for Consolidated Financial Statements” for tax effects of sales of investments such as
          subsidiaries’ stocks within the Group for the year ended March 31, 2008.

   b.   Cash and Cash Equivalents

          Cash and cash equivalents in the consolidated statements of cash flows consist of cash and due from
          the Bank of Japan, included in “cash and due from banks” in the consolidated balance sheets.

   c.   Trading Securities

          Trading securities are stated at fair value, and the related unrealized gains and losses are included in
          earnings. The cost of trading securities sold is determined based on the moving-average method.

   d.   Securities

          Securities other than trading securities are classified and accounted for, depending on management’s
          intent, as follows:

          i) held-to-maturity debt securities, which are expected to be held to maturity with the positive intent
          and ability to hold to maturity, are reported at amortized cost and ii) available-for-sale securities,
          which are not classified as held-to-maturity debt securities, are reported at fair value, with unrealized
          gains and losses, net of applicable taxes, reported in a separate component of equity. The cost of
          securities sold is determined based on the moving-average method.

          Non-marketable available-for-sale securities are stated at cost determined by the moving-average
          method. For other than temporary declines in fair value, available-for-sale securities are reduced to
          net realizable value by a charge to income.

   e.   Premises and Equipment

          Premises and equipment are stated at cost less accumulated depreciation. Depreciation of premises
          and equipment other than leased property of the Bank is computed by the declining-balance method
          based on the estimated useful lives of the assets, while the straight-line method is applied to
          buildings acquired after April 1, 1998. Premises and equipment held by the subsidiaries are
          depreciated mainly using the straight-line method.

          The range of useful lives is principally from 7 to 50 years for buildings, and from 3 to 20 years for
          other premises and equipment.

          Leased property under finance leases which do not deem to transfer ownership of the leased property
          to the lessee included in premises and equipment is depreciated by the straight-line method over the
          lease period. Residual value is zero unless residual value is stipulated in lease agreements.

THE CHUKYO BANK,LIMITED                                10
                                                                            Financial Statement 2009
                                                                                       Fiscal Year Ended March31,2009


   f.   Long-lived Assets

           The Group reviews its long-lived assets for impairment whenever events or changes in circumstance
           indicate the carrying amount of an asset or asset group may not be recoverable. An impairment
           loss would be recognized if the carrying amount of an asset or asset group exceeds the sum of the
           undiscounted future cash flows expected to result from the continued use and eventual disposition of
           the asset or asset group. The impairment loss would be measured as the amount by which the
           carrying amount of the asset exceeds its recoverable amount, which is the higher of the discounted
           cash flows from the continued use and eventual disposition of the asset or the net selling price at
           disposition.

   g.   Intangible Assets

           Intangible assets are amortized by the straight-line method.

           Software for internal use is charged to income as incurred because its contribution to revenues or
           reduction of expenses in the future is uncertain.

   h.   Reserve for Possible Loan Losses

          The Bank implemented a self-assessment system for asset quality. The quality of all loans is
          assessed by the related lending division and subsequently audited by the asset audit division, which is
          independent from the lending division, in accordance with the Bank’s policies and rules for
          self-assessment of asset quality.

          The Bank has established a credit rating system under which its customers are classified into five
          categories such as “normal,” “caution,” “possible bankruptcy,” “virtual bankruptcy” and “legal
          bankruptcy.” The credit rating system is used for self-assessment of asset quality.

          For normal and caution loans, the reserve for possible loan losses is provided for based on actual past
          loss ratios.

          For loans to customers classified as possible bankruptcy, the reserve is provided for in an amount
          deemed necessary to cover possible loan losses. The amount is determined by considering the
          customer’s solvency and other factors, after the estimated fair value of the real estate collateral or
          guaranteed amount has been deducted.

          For loans to customers classified as virtual bankruptcy or legal bankruptcy, the reserve is provided for
          in an amount deemed necessary to cover possible loan losses after the estimated fair value of the real
          estate collateral or guaranteed amount has been deducted.

          Reserve for possible loan losses of subsidiaries is provided based on actual past loss ratios and
          estimated collectability of specific claims.

   i.   Retirement and Pension Plans

          The Bank has defined benefit plans such as lump-sum retirement payment and corporate pension fund
          for its employees. The Bank also has a defined contribution pension plan for its employees.
THE CHUKYO BANK,LIMITED                                11
                                                                             Financial Statement 2009
                                                                                        Fiscal Year Ended March31,2009
          Additionally, the consolidated subsidiaries have lump-sum retirement payment plans for their
          employees.

          Effective April 1, 2000, the Group adopted an accounting standard for retirement benefits and
          accounted for the liability for employees’ retirement benefits based on projected benefit obligations
          and plan assets at the balance sheet date. Unrecognized transitional obligation, excluding exempted
          portions of the governmental pension program and transferred portion to defined contribution pension
          plan managed by the Bank, is amortized over 15 years (See Note 17).

          Prior to April 1, 2008, the unrecognized prior service benefit and unrecognized actuarial loss were
          amortized over a certain period (12 years) within the average remaining working lives of employees.
          However, the amortization period was changed from 12 years to 11 years from the year ended March
          31, 2009 because the average remaining working lives of employees had been shortened. The effect
          of this change was to increase loss before income taxes and minority interests by ¥60 million ($611
          thousand) for the year ended March 31, 2009.

          Retirement allowance for directors and corporate auditors are recorded to state the liability at the
          amount that would be required if all directors and corporate auditors retired at each balance sheet date.

   j.   Bonuses to Directors and Corporate Auditors

          Bonuses to directors and corporate auditors are accrued at year end to which such bonuses are
          attributable.

   k.   Reserve for Reimbursement of Dormant Deposits

          Reserve for reimbursement of dormant deposits is provided for the deposits derecognized from the
          liabilities at the estimated amount of future claims for withdrawal based on the actual past loss
          amount.

          Effective from the year ended March 31, 2008, the Group adopted the JICPA Auditing and Assurance
          Practice Committee Statement No. 42 “Auditing Treatment relating to Reserve defined under the
          Special Tax Measurement Law, Reserve defined under the Special Law and Reserve for Director and
          Corporate Auditor Retirement Benefits” issued on April 13, 2007.

   l.   Reserve for Contingencies

          Reserve for contingencies is provided for contingent liabilities to the Credit Guarantee Corporations at
          the estimated amount of future payment based on the Joint Responsibility System with the Credit
          Guarantee Corporations.

         The Group recognized reserve for contingencies for the year ended March 31, 2008 in accordance with
         commencement of the Joint Responsibility System with the Credit Guarantee Corporations on October
         1, 2007.

   m.    Income Taxes

          The provision for income taxes is computed based on the pretax income included in the consolidated
          statements of operations. The asset and liability approach is used to recognize deferred tax assets
THE CHUKYO BANK,LIMITED                                12
                                                                            Financial Statement 2009
                                                                                      Fiscal Year Ended March31,2009
         and liabilities for the expected future tax consequences of temporary differences between the carrying
         amounts and the tax bases of assets and liabilities. Deferred taxes are measured by applying
         currently enacted tax laws to the temporary differences. Future tax benefits are recognized to the
         extent that such benefits are more likely than not to be realized..

   n. Leases

         In March 2007, the ASBJ issued ASBJ Statement No.13, “Accounting Standard for Lease
         Transactions,” which revised the previous accounting standard for lease transactions issued in June
         1993. The revised accounting standard for lease transaction is effective for fiscal years beginning on
         or after April 1, 2008 with early adoption permitted for fiscal years beginning on or after April 1,
         2007.

         Under the previous accounting standard, finance leases that deem to transfer ownership of the leased
         property to the lessee were to be capitalized. However, other finance leases were permitted to be
         accounted for as operating lease transactions if certain “as if capitalized” information is disclosed in
         the note to the lessee’s financial statements. The revised accounting standard requires that all finance
         lease transactions should be capitalized to recognize lease assets and lease obligations in the balance
         sheet. In addition, the revised accounting standard permits leases which existed at the transition date
         and do not transfer ownership of the leased property to the lessee to be accounted for as operating
         lease transactions.

         The Group applied the revised accounting standard effective April 1, 2008. In addition, the Group
         accounted for leases which existed at the transition date and do not transfer ownership of the leased
         property to the lessee as operating lease transactions. The effect of this change was immaterial.

         All other leases are accounted for as operating leases.

   o.   Foreign Currency Translations

         Foreign currency assets and liabilities of the Group are translated into Japanese yen amounts at the
         exchange rates prevailing at the fiscal year end. The foreign exchange gains and losses from
         translation are recognized in the statements of operations to the extent that they are not hedged by
         forward exchange contracts.

   p.   Derivatives and Hedging Activities

         The Group uses a variety of derivative financial instruments including foreign currency forward
         contracts, interest rate swaps and others.

         Derivative financial instruments are classified and accounted for as follows: a) all derivatives are
         recognized as either assets or liabilities and measured at fair value, and gains or losses on derivative
         transactions are recognized in the consolidated statements of operations and b) for derivatives used for
         hedging purposes, if derivatives qualify for hedge accounting because of high correlation and
         effectiveness between the hedging instruments and the hedged items, gains or losses on derivatives
         follow hedge accounting.

         Interest rate risk hedges

THE CHUKYO BANK,LIMITED                                13
                                                                                 Financial Statement 2009
                                                                                            Fiscal Year Ended March31,2009
             The Bank applies the principle treatment of the JICPA Industry Audit Committee Statement No. 24.
             The effectiveness of hedge transactions to offset the fluctuations of fair value is evaluated by inspecting
             each hedged item, such as deposits and loans, and the hedging instruments, such as interest rate swaps,
             separately. The effectiveness of cash flow hedges is evaluated by verifying the correlation between
             the hedged items and the hedging instruments concerning interest volatility.

            Exchange rate risk hedges

            The Bank applies the principle treatment of the JICPA Industry Audit Committee Statement No. 25.
            Foreign exchange swaps and currency swaps, originated for the purpose of conversion between
            borrowing and lending currencies, are recorded using hedge accounting. The effectiveness of
            currency swaps and foreign exchange swaps transactions is verified by confirming that these hedging
            instruments are executed for the purpose of offsetting the risk of currency exchange rates of the
            corresponding hedged items, such as foreign currency monetary receivables and payables.

     q.    Per Share Information

            Basic net income (or loss) per share is computed by dividing net income (or loss) available to common
            shareholders by the weighted-average number of common shares outstanding for the period,
            retroactively adjusted for stock splits.

            The weighted average number of common shares used in the computation for the years ended March
            31, 2009 and 2008 was 216,951,480 shares and 217,019,065 shares, respectively.

            Diluted net income per share reflects the potential dilution that could occur if securities were exercised
            or converted into common stock. Diluted net income per share of common stock assumes full
            conversion of the outstanding convertible notes and bonds at the beginning of the year (or at the time
            of issuance) with an applicable adjustment for related interest expense, net of tax, and full exercise of
            outstanding warrants. Diluted net income per share is not disclosed because of the net loss position
            for the year ended March 31, 2009. Diluted net income per share is not disclosed because there were
            no dilutive shares for the year ended March 31, 2008.

            Cash dividends per share presented in the accompanying consolidated statements of operations are
            dividends applicable to the respective years including dividends to be paid after the end of the year.

3.   Cash and Due from Banks

     Cash and due from banks as of March 31, 2009 and 2008 consisted of the following:

                                                                                       Thousands of
                                                       Millions of Yen                 U.S. Dollars
                                                    2009             2008                 2009
          Cash on hand                                ¥ 20,638          ¥ 18,537           $ 210,056
          Due from banks                                51,384            33,699             522,992
             Total                                    ¥ 72,022          ¥ 52,236           $ 733,048




THE CHUKYO BANK,LIMITED                                    14
                                                                                 Financial Statement 2009
                                                                                        Fiscal Year Ended March31,2009
     A reconciliation of the cash and due from banks in the consolidated balance sheets to the cash and cash
     equivalents in the consolidated statements of cash flows for the years ended March 31, 2009 and 2008 was
     as follows:

                                                                                    Thousands of
                                                    Millions of Yen                 U.S. Dollars
                                                 2009             2008                  2009
       Cash and due from banks                   ¥ 72,022        ¥    52,236           $ 733,048
       Due from banks other than
          the Bank of Japan                          (981)               (924)             9,984
       Cash and cash equivalents                 ¥ 71,041            ¥ 51,312          $ 723,064

4.   Trading Securities and Securities

     Trading securities as of March 31, 2009 and 2008 consisted of the following:

                                                                                     Thousands of
                                                   Millions of Yen                   U.S. Dollars
                                                2009              2008                  2009
        National government bonds                 ¥ 496             ¥ 693                $ 5,049
        Local government bonds                        2                 1                      20
        Total                                     ¥ 498             ¥ 694                $ 5,069

     Valuation gains of trading securities included in (loss) income before income taxes and minority interests for
     the years ended March 31, 2009 and 2008 were ¥9 million ($92 thousand) and ¥15 million, respectively.

     Securities as of March 31, 2009 and 2008 consisted of the following:

                                                                                         Thousands of
                                                         Millions of Yen                 U.S. Dollars
                                                    2009                2008                 2009
          National government bonds               ¥ 129,756            ¥ 115,457           $ 1,320,672
          Local government bonds                      38,926              33,220               396,193
          Corporate bonds                             86,777              88,278               883,227
          Equity securities                           24,245              41,688               246,768
          Other securities                            72,299              91,604               735,868
             Total                                ¥ 352,003            ¥ 370,247           $ 3,582,728

     Investments in an affiliated company, which were included in securities in the accompanying consolidated
     balance sheets, for the years ended March 31, 2009 and 2008 were ¥956 million ($9,730 million) and ¥909
     million, respectively.

     The carrying amounts and aggregate fair values of available-for-sale securities as of March 31, 2009 and
     2008 were as follows:




THE CHUKYO BANK,LIMITED                                 15
                                                                                  Financial Statement 2009
                                                                                                 Fiscal Year Ended March31,2009


                                                                            2009
                                                                      Millions of Yen
                                                                 Unrealized    Unrealized                         Fair
                                                   Cost            Gains         Losses                          Value
     Securities classified as
       Available-for-sale:
         Equity securities                     ¥    17,034           ¥    4,509       ¥    (2,017)           ¥     19,526
         Debt securities                           241,359                2,600            (1,951)                242,008
         Other                                      78,692                  465            (6,858)                 72,299

                                                                            2009
                                                                 Thousands of U.S. Dollars
                                                                 Unrealized    Unrealized                         Fair
                                                   Cost            Gains         Losses                          Value
     Securities classified as
       Available-for-sale:
         Equity securities                    $     173,374      $       45,893   $       (20,529)       $         198,738
         Debt securities                          2,456,580              26,463           (19,857)               2,463,186
         Other                                      800,936               4,733           (69,801)                 735,868

                                                                           2008
                                                                     Millions of Yen
                                                                Unrealized    Unrealized                          Fair
                                                   Cost           Gains         Losses                           Value
     Securities classified as
       Available-for-sale:
         Equity securities                     ¥    20,817       ¥       16,825       ¥      (619)       ¥         37,023
         Debt securities                           220,256                2,897            (1,249)                221,904
         Other                                      92,603                2,391            (3,390)                 91,604

   Losses on the write-down of available-for-sale securities are recognized when their fair value declines more
   than or equal to 30% of the carrying amounts and such decline is expected to continue for approximately a
   year or longer.

   For the years ended March 31, 2009 and 2008, losses on the write-down of available-for-sale securities to
   reflect the decline in value considered to be other than temporary were ¥4,048 million ($41,201 thousand)
   and ¥880 million, respectively.

   Available-for-sale securities whose fair value was not readily determinable as of March 31, 2009 and 2008
   were as follows:

                                                              Carrying amount
                                                                                          Thousands of
                                                  Millions of Yen                         U.S. Dollars
                                             2009             2008                           2009
      Available-for-sale:
       Equity securities                 ¥     3,763            ¥         3,757           $  38,300
       Debt securities                        13,451                     15,050             136,906
         Total                           ¥    17,214            ¥        18,807           $ 175,206




THE CHUKYO BANK,LIMITED                                   16
                                                                                Financial Statement 2009
                                                                                            Fiscal Year Ended March31,2009


     Proceeds from sales of available-for-sale securities for the years ended March 31, 2009 and 2008 were
     ¥30,552 million ($310,962 thousand) and ¥13,879 million, respectively. Gross realized gains and losses on
     these sales, computed on the moving-average cost basis, were ¥6,678 million ($67,969 thousand) and ¥1
     million ($10 thousand), respectively, for the year ended March 31, 2009, and ¥1,642 million and ¥464
     million, respectively, for the year ended March 31, 2008.

     The carrying values of debt securities and other by contractual maturities for available-for-sale securities as
     of March 31, 2009 were as follows:

                                                                            Thousands of
                                              Millions of Yen               U.S. Dollars
        Due in one year or less                    ¥    41,413                 $   421,506
        Due after one year
           through five years                         132,462                    1,348,214
        Due after five years
           through ten years                        130,398                     1,327,206
        Due after ten years                          12,077                       122,921
           Total                                  ¥ 316,350                   $ 3,219,847

5.   Loans and Bills Discounted

     Loans and bills discounted as of March 31, 2009 and 2008 consisted of the following:

                                                                                      Thousands of
                                                  Millions of Yen                     U.S. Dollars
                                           2009                      2008                2009
        Bills discounted                  ¥   20,651             ¥    25,652            $        210,188
        Loans on bills                        96,539                 106,395                     982,585
        Loans on deeds                       862,031                 838,796                   8,773,853
        Overdrafts                           218,937                 216,376                   2,228,367
            Total                        ¥ 1,198,158             ¥ 1,187,219            $     12,194,993

     Nonaccrual loans, which include loans to borrowers in bankruptcy and past due loans, are defined as loans
     which the Bank and its subsidiaries discontinue the accrual of interest income. Borrowers are generally
     placed on nonaccrual status when substantial doubt is deemed to exist as to ultimate collectibility of either
     the principal or interest, and if the loans are past due for a certain period or for other reasons.

     Loans to borrowers in bankruptcy represent nonaccrual loans to debtors who are legally bankrupt, which are
     defined in Article 96, Paragraph 1, Subparagraphs 3 and 4 of the Enforcement Ordinance for the Corporation
     Tax Law. Loans to borrowers in legal bankruptcy as of March 31, 2009 and 2008 were ¥13,388 million
     ($136,265 thousand) and ¥5,060 million, respectively.

     Past due loans are nonaccrual loans other than loans to borrowers in bankruptcy and loans of which interest
     payments are deferred in order to assist the financial recovery of debtor in financial difficulties. Past due
     loans as of March 31, 2009 and 2008 were ¥34,235 million ($348,448 thousand) and ¥37,425 million,
     respectively.

     Accruing loans past due three months or more are defined as loans on which principal or interest is past due
     more than three months. Loans classified as loans to borrowers in bankruptcy or past due loans are
THE CHUKYO BANK,LIMITED                                   17
                                                                             Financial Statement 2009
                                                                                          Fiscal Year Ended March31,2009
     excluded from accruing loans past due three months or more. The balances of accruing loans past due
     three months or more as of March 31, 2009 and 2008 were ¥541 million ($5,506 thousand) and ¥233 million,
     respectively.

     Restructured loans are defined as loans to which the lender is providing financial support to a borrower by a
     reduction of the interest rate, deferral of interest payment, extension of maturity date, or reduction of the
     face or maturity amount of the debt or accrued interest. Loans classified as loans to borrowers in
     bankruptcy, past due loans, or accruing loans past due three months or more are excluded from restructured
     loans. The balances of restructured loans as of March 31, 2009 and 2008 were ¥3,047 million ($31,013
     thousand) and ¥4,148 million, respectively.

     Total amounts of loans to borrowers in bankruptcy, past due loans, accruing loans past due three months or
     more and restructured loans as of March 31, 2009 and 2008 were ¥51,211 million ($521,232 thousand) and
     ¥46,866 million, respectively.

     The loan amounts above represent amounts prior to the deduction of reserves for possible loan losses.

     Bills discounted are accounted for as financial transactions in accordance with “Treatment of Accounting
     and Auditing in Applying Accounting Standard for Financial Instruments in the Banking Industry” issued by
     the JICPA. The Bank has rights to sell or pledge accepted commercial bills discounted and foreign bills of
     exchange bought without restrictions. The total face value of commercial bills discounted and foreign bills
     of exchange bought included in foreign exchanges as of March 31, 2009 and 2008 was ¥23,286 million
     ($237,008 thousand) and ¥28,223 million, respectively.

     The total amount of loan participations which was accounted for as loans to original debtors included in
     “loans and bills discounted” in accordance with the JICPA Accounting Standard Committee Statement No. 3
     issued on June 1, 1995 was ¥20,580 million ($209,466 thousand) as of March 31, 2009.

6.   Foreign Bills of Exchange

     Foreign bills of exchange as of March 31, 2009 and 2008 consisted of the following:

                                                                                                   Thousands of
                                                                Millions of Yen                    U.S. Dollars
                                                             2009              2008                   2009
        Assets:
           Due from foreign correspondent account            ¥    1,126         ¥         835           $   11,461
           Foreign bills of exchange bought                       2,635                 2,571               26,819
           Foreign bills of exchange receivable                   3,000                 2,486               30,534
                Total                                        ¥    6,761          ¥      5,892          $    68,814

                                                                                                   Thousands of
                                                                Millions of Yen                    U.S. Dollars
                                                             2009              2008                   2009
        Liabilities:
           Due to foreign correspondent account               ¥       0             ¥    28                 $    0
           Foreign bills of exchange sold                             2                   4                     21
           Foreign bills of exchange payable                          1                   2                     10
                Total                                         ¥       3             ¥    34                 $   31

THE CHUKYO BANK,LIMITED                                 18
                                                                              Financial Statement 2009
                                                                                    Fiscal Year Ended March31,2009


7.   Other Assets

     Other assets as of March 31, 2009 and 2008 consisted of the following:

                                                                                     Thousands of
                                                     Millions of Yen                 U.S. Dollars
                                              2009                     2008             2009
        Domestic exchange
          settlement, debit               ¥       324             ¥        377        $   3,298
        Accrued income                          2,275                    2,326           23,155
        Accounts receivable - other             3,350                    3,376           34,097
        Rights of indemnity                     2,064                    2,088           21,008
        Temporary payments                      2,083                      841           21,201
        Other                                   2,944                    2,492           29,964
           Total                          ¥    13,040             ¥     11,500        $ 132,723

8.   Premises and Equipment

     The accumulated depreciation of premises and equipment as of March 31, 2009 and 2008 amounted to
     ¥16,218 million ($165,069 thousand) and ¥16,162 million, respectively.

     Deferred gain on premises and equipment deductible for tax purposes was ¥1,400 million ($14,249
     thousand) as of March 31, 2009.

9.   Impairment Loss On Long-lived Assets

     The Bank reviewed its long-lived assets for impairment losses as of March 31, 2009 and 2008. As a result,
     impairment losses of ¥3 million ($31 thousand) and ¥108 million were recognized for land and buildings
     due to changes in their purpose for use. The carrying amount of the assets was written down to the
     recoverable amount for the year ended March 31, 2009. The recoverable amount was measured at the net
     selling price.

10. Customers’ Liabilities for Acceptances and Guarantees

     All contingent liabilities arising from acceptances and guarantees are reflected in acceptances and
     guarantees. As contra accounts, customers’ liabilities for acceptances and guarantees are presented as
     assets, representing the Bank’s rights of indemnity from applicants.

     The Bank offset customer’s liabilities for acceptance and guarantees with acceptance and guarantees of
     ¥13,451 million ($136,906 thousand) and ¥15,050 million arising from guarantees of private placement
     securities in 2009 and 2008, respectively.




THE CHUKYO BANK,LIMITED                                 19
                                                                              Financial Statement 2009
                                                                                          Fiscal Year Ended March31,2009
11. Assets Pledged

    Assets pledged as collateral and their relevant liabilities as of March 31, 2009 were as follows:

                                                                   Carrying amount
                                                                               Thousands of
                                                        Millions of Yen        U.S. Dollars
      Assets pledged as collateral:
        Securities                                             ¥ 18,172               $ 184,957
      Relevant liabilities to above assets:
        Deposit                                                ¥    5,085             $    51,756
        Call money                                                 15,000                 152,672

    In addition, securities of ¥42,386 million ($431,410 thousand) were pledged as collateral for settlement of
    exchange.

    Guarantee money included in other assets as of March 31, 2009 and 2008 were ¥399 million ($4,061
    thousand) and ¥401 million, respectively.

12. Land Revaluation

    Under the “Law of Land Revaluation,” the Bank elected a one-time revaluation of its own-use land to a value
    based on real estate appraisal information as of March 31, 1998.

    The resulting land revaluation surplus represents unrealized appreciation of land and is stated, net of income
    taxes, as a component of equity. There is no effect on the consolidated statements of operations.
    Continuous readjustment is not permitted unless the land value subsequently declines significantly such that
    the amount of the decline in value should be removed from the land revaluation surplus account and related
    deferred tax liabilities.

    The carrying amount of the land after the above one-time revaluation exceeded the market value by ¥557
    million ($5,669 thousand) as of March 31, 2009.

13. Income Taxes

    The Bank and its subsidiaries are subject to Japanese national and local income taxes which, in the
    aggregate, resulted in a normal effective statutory tax rate of 39.5% for the years ended March 31, 2009 and
    2008.

    The tax effects of significant temporary differences, which resulted in deferred tax assets and liabilities as of
    March 31, 2009 and 2008, were as follows:




THE CHUKYO BANK,LIMITED                                  20
                                                                            Financial Statement 2009
                                                                                       Fiscal Year Ended March31,2009


                                                                                         Thousands of
                                                        Millions of Yen                  U.S. Dollars
                                                    2009              2008                  2009
      Deferred tax assets:
        Reserve for possible loan losses        ¥     7,731          ¥    4,513          $   78,687
        Write-down of securities                      3,855               5,822              39,237
        Liability for retirement benefits               528                 388               5,374
        Deferred loss on derivatives
          under hedge accounting                         69                 147                 702
        Depreciation                                  1,173               1,120              11,939
        Accrued bonuses                                 368                 360               3,746
        Impairment loss (land)                          244                 242               2,483
        Unrealized loss on available-for-
         sale securities                             1,594                   -              16,224
        Tax loss carryforwards                         737                   -               7,501
        Other                                        1,328               1,348              13,517
                      Subtotal                      17,627              13,940            179,410
        Less valuation allowance                    (8,520)            (9,353)             (86,718)
                          Total                 ¥    9,107           ¥   4,587           $ 92,692
      Deferred tax liabilities:
        Unrealized gain on
          available-for-sale securities         ¥        (7)          ¥   (4,658)        $      (71)
        Enterprise tax refundable                       (31)                   -               (316)
        Reserve for advanced
         depreciation of fixed assets                   (40)                   -               (407)
      Net deferred tax assets (liabilities)     ¥     9,029           ¥      (71)        $   91,898

   A reconciliation between the normal effective statutory tax rate and the actual effective tax rate reflected in
   the accompanying consolidated statements of operations for the year ended March 31, 2008 is as follows:

                                                                          2008
         Normal effective statutory tax rate                                39.5%
         Dividend income and other income excluded
           permanently for income tax purpose                                (3.3)
         Entertainment expenses and other expenses
           permanently not deductible for income tax purposes                 0.6
         Inhabitants tax per capita                                           0.8
         Deduction for land appropriation                                    (0.3)
         Tax return amendment                                                 0.4
         Elimination of temporary difference due to merger
           of subsidiaries                                                    0.5
         Net change in valuation allowance                                  (14.0)
         Other - net                                                          1.0
         Actual effective tax rate                                           25.2%

   A reconciliation for the year ended March 31, 2009 was not disclosed because of the net loss position.




THE CHUKYO BANK,LIMITED                                21
                                                                                   Financial Statement 2009
                                                                                               Fiscal Year Ended March31,2009


14. Deposits

    Deposits as of March 31, 2009 and 2008 consisted of the following:

                                                                                         Thousands of
                                                Millions of Yen                          U.S. Dollars
                                         2009                       2008                    2009
       Current, ordinary and
       saving deposits, and
        deposits at notice           ¥    685,023            ¥       689,478             $     6,972,244
       Time deposits and
        installment savings              811,548                    786,330                    8,260,031
       Other                              21,748                     26,688                      221,353
           Total                     ¥ 1,518,319                ¥ 1,502,496              $    15,453,628

15. Borrowed Money

    Borrowed money as of March 31, 2009 and 2008 consisted of the following:

                                                                                             Thousands of
                                                     Millions of Yen                         U.S. Dollars
                                                  2009             2008                          2009
      Borrowings due serially to
         December2008                                   -              ¥     800                           -

    The weighted-average interest rate of the borrowings as of March 31, 2008 was 1.87%.

16. Subordinated Bonds

    Subordinated bonds as of March 31, 2009 and 2008 consisted of the following:

                                                                                                               Thousands
                                                                                                               of
                                                                 Millions of Yen                               U.S. Dollars
                                                            2009               2008                                2009
       Series 1, 2.02% unsecured subordinated
         bond due March 2, 2015                                 ¥    5,000               ¥    5,000             $    50,891
       Series 2, unsecured subordinated bond
         due March 2, 2015 *1                                        5,000                    5,000                  50,891
       Series 3, unsecured subordinated bond
         due December 21, 2017 *2                                   10,000                   10,000                 101,780
       Total                                                ¥       20,000           ¥       20,000             $   203,562

      *1 Fixed interest rate of 1.21% up to March 2, 2010 and floating rate of LIBOR plus 2.00% from March
         3, 2010 to March 2, 2015 for Series 2, unsecured subordinated bond.
      *2 Fixed interest rate of 1.73% up to December 21, 2012 and floating rate of LIBOR plus 1.93% from
         December 22, 2012 to December 21, 2017 for Series 3, unsecured subordinated bond.




THE CHUKYO BANK,LIMITED                                22
                                                                              Financial Statement 2009
                                                                                          Fiscal Year Ended March31,2009
17. Liability for Retirement Benefits for Employees

    The Bank has defined benefit plans such as lump-sum retirement payment and corporate pension fund for its
    employees. The Bank also has a defined contribution pension plan for its employees. Additionally, the
    consolidated subsidiaries have lump-sum payment plans for their employees.

    Under most circumstances, employees terminating their employment are entitled to retirement benefits
    determined based on the rate of pay at the time of termination, years of service and certain other factors.
    Such retirement benefits are made in the form of a lump-sum severance payment or in the form of an
    annuity.

    The liability for retirement benefits as of March 31, 2009 and 2008 consisted of the following:

                                                                                             Thousands of
                                                              Millions of Yen                U.S. Dollars
                                                           2009             2008                2009

          Projected benefit obligation                     ¥ 15,229           ¥ 15,145         $ 155,003
          Fair value of plan assets                          (7,491)            (8,954)          (76,244)
          Unrecognized transitional obligation               (1,354)            (1,580)          (13,781)
          Unrecognized actuarial loss                        (5,949)            (4,763)          (60,550)
          Unrecognized prior service benefit                  1,062              1,320            10,809
          Prepaid pension expense                                 -                160                 -
             Net liability                                 ¥ 1,497            ¥ 1,328          $ 15,237

    The components of net periodic benefit costs for the years ended March 31, 2009 and 2008 were as follows:

                                                                                            Thousands of
                                                              Millions of Yen               U.S. Dollars
                                                           2009             2008               2009

       Service cost                                    ¥       345        ¥      358           $    3,511
       Interest cost                                           295               298                3,003
       Expected return on plan assets                         (224)             (252)              (2,280)
       Amortization of prior service benefit                  (258)             (215)              (2,626)
       Recognized actuarial loss                               722               508                7,349
       Amortization of transitional obligation                 226               226                2,300
           Net periodic benefit costs                  ¥     1,106        ¥      923           $   11,257

    Assumptions used for the years ended March 31, 2009 and 2008 were set forth as follows:

                                                                2009                     2008
        Discount rate                                            2.0 %                   2.0 %
        Expected rate of return on plan assets                   2.5 %                   2.5 %
        Amortization period of prior service cost              11 years                 12 years
        Amortization period of actuarial loss                  11 years                 12 years
        Amortization period of transitional
          obligation                                           15 years                 15 years




THE CHUKYO BANK,LIMITED                                23
                                                                               Financial Statement 2009
                                                                                       Fiscal Year Ended March31,2009
18. Other Liabilities

    Other liabilities as of March 31, 2009 and 2008 consisted of the following:

                                                                                    Thousands of
                                                  Millions of Yen                   U.S. Dollars
                                           2009                     2008               2009
       Domestic exchange
         settlement, debt              ¥        561             ¥        599            $     5,710
       Income taxes payable                      79                    1,024                    804
       Accrued expenses                       3,166                    2,916                 32,224
       Accounts payable –
          other                               2,096                    2,129                 21,333
       Unearned income                        3,721                    3,997                 37,873
       Deposits received                      1,840                    1,730                 18,728
       Other                                  3,102                    3,425                 31,573
           Total                       ¥     14,565             ¥     15,820            $   148,245

19. Commitments and Contingent Liabilities

    Commitment line contracts on overdrafts and loans are agreements to lend to customers when they apply for
    borrowing, to the prescribed amount as long as there is no violation of any condition established in the
    contracts. The amount of unused commitments as of March 31, 2009 was ¥226,913 million ($2,309,547
    thousand), including ¥200,883 million ($2,044,611 thousand) of unused commitments whose original
    contract terms were within one year.

    Since many of these commitments are expected to expire without being drawn upon, the total amount of
    unused commitments does not necessarily represent actual future cash flow requirements. Many of these
    commitments have clauses that allow the Bank and subsidiaries to reject the application from customers or
    reduce the contract amounts in case economic conditions are changed, the Bank and subsidiaries need to
    secure claims or other events occur. In addition, the Bank and subsidiaries request their customers to
    pledge collateral such as premises and securities at the conclusion of the contracts, and take necessary
    measures, such as understanding the customers’ financial positions based upon procedures predetermined in
    the Bank and subsidiaries, revising contracts when the need arises and securing claims after conclusion of
    the contracts.

20. Equity

    Since May 1, 2006, Japanese companies have been subject to the Companies Act of Japan (the “Companies
    Act”). The significant provisions in the Companies Act that affect financial and accounting matters are
    summarized below:

     (a) Dividends
         Under the Companies Act, companies can pay dividends at any time during the fiscal year in addition to
         the year-end dividend upon resolution at the shareholders meeting. For companies that meet certain
         criteria such as; (1) having the Board of Directors, (2) having independent auditors, (3) having the Board
         of Corporate Auditors, and (4) the term of service of the directors is prescribed as one year rather than
         two years of normal term by its articles of incorporation, the Board of Directors may declare dividends
         (except for dividends in kind) at any time during the fiscal year if the company has prescribed so in its

THE CHUKYO BANK,LIMITED                                  24
                                                                              Financial Statement 2009
                                                                                         Fiscal Year Ended March31,2009
        articles of incorporation. However, the Bank cannot do so because it has not prescribed so in its articles
        of incorporation.
        The Companies Act permits companies to distribute dividends-in-kind (non-cash assets) to shareholders
        subject to a certain limitation and additional requirements.
        Semiannual interim dividends may also be paid once a year upon resolution by the Board of Directors if
        the articles of incorporation of the company so stipulate. The Companies Act provides certain
        limitations on the amounts available for dividends or the purchase of treasury stock. The limitation is
        defined as the amount available for distribution to the shareholders, but the amount of equity after
        dividends must be maintained at no less than ¥ 3 million.

    (b) Treasury stock and treasury stock acquisition rights
        The Companies Act also provides for companies to purchase treasury stock and dispose of
        such treasury stock by resolution of the Board of Directors. The amount of treasury stock
        purchased cannot exceed the amount available for distribution to the shareholders which is
        determined by specific formula. Under the Companies Act, stock acquisition rights are
        presented as a separate component of equity. The Companies Act also provides that
        companies can purchase both treasury stock acquisition rights and treasury stock. Such
        treasury stock acquisition rights are presented as a separate component of equity or
        deducted directly from stock acquisition rights.

    Other than above, the Japanese Banking Law provided that an amount at least equal to 20% of the aggregate
    amount of cash dividends and certain other cash payments which are made as an appropriation of retained
    earnings applicable to each fiscal period shall be set aside as a legal reserve until the total additional paid-in
    capital and legal reserve equals 100% of stated capital. The amount of total additional paid-in capital and
    legal reserve which exceeds 100% of stated capital can be transferred to retained earnings by resolution of the
    shareholders, which may be available for dividends. The Bank’s legal reserve amount, which is included in
    retained earnings, totals ¥1,320 million ($13,435 thousand) and ¥1,103 million as of March 31, 2009 and
    2008, respectively.

21. Other Income

    Other income for the years ended March 31, 2009 and 2008 consisted of the following:

                                                                                              Thousands of
                                                             Millions of Yen                  U.S. Dollars
                                                         2009               2008                 2009
       Gain on sales of stocks and
         other securities                            ¥    5,789           ¥    1,046           $    58,921
       Equity in earnings of
         an affiliated company                                45                    -                   458
       Other                                                911                  905                 9,272
          Total                                      ¥    6,745           ¥    1,951           $    68,651




THE CHUKYO BANK,LIMITED                                  25
                                                                            Financial Statement 2009
                                                                                        Fiscal Year Ended March31,2009
22. Other Expenses

    Other expenses for the years ended March 31, 2009 and 2008 consisted of the following:

                                                                                            Thousands of
                                                           Millions of Yen                  U.S. Dollars
                                                       2009                2008                2009
       Loss on sales of stocks and
         other securities                          ¥     145            ¥        39            $      1,476
       Write-down of loans                                70                     70                    712
       Write-down of securities and
         other assets                                  1,340                    410                  13,639
       Equity in loss of
         an affiliated company                             -                   39                         -
       Other                                           1,976                2,167                    20,112
          Total                                    ¥   3,531            ¥   2,725              $     35,939

23. Leases

    Finance lease

    The Group leases certain equipment under finance leases.

    Total rental expense under the above leases for the years ended March 31, 2009 and 2008 were ¥742 million
    ($7,552 thousand) and ¥746 million, respectively.

    As discussed in Note 2.n, the Group accounts for leases which existed at the transition date and do not
    transfer ownership of the leased property to the lessee as operating lease transactions. Pro forma
    information of leased property such as acquisition cost, accumulated depreciation, obligations under finance
    leases, depreciation expense, interest expense and other information of finance leases that do not transfer
    ownership of the leased property to the lessee on an “as if capitalized” basis as of March 31, 2009 and 2008
    were as follows:

                                                                                      Thousands of
                                                     Millions of Yen                  U.S. Dollars
                                                2009                2008                 2009
       Acquisition cost                        ¥   4,136           ¥   4,446           $   42,097
       Accumulated depreciation                   (2,250)             (1,977)             (22,901)
          Net leased property                  ¥   1,886           ¥   2,469           $   19,196

    Obligations under finance leases as of March 31, 2009 and 2008 were as follows:

                                                                                      Thousands of
                                                    Millions of Yen                    U.S. Dollars
                                            2009                   2008                  2009
       Due within one year                 ¥    548               ¥    626             $ 5,578
       Due after one year                     1,479                  2,005                 15,053
          Total                            ¥ 2,027                ¥ 2,631              $ 20,631



THE CHUKYO BANK,LIMITED                                 26
                                                                            Financial Statement 2009
                                                                                      Fiscal Year Ended March31,2009
    The amounts of acquisition costs and obligations under finance leases exclude the imputed interest expense
    portions.

    Depreciation expense and interest expense under finance leases as of March 31, 2009 and 2008 were as
    follows:

                                                                                    Thousands of
                                                 Millions of Yen                     U.S. Dollars
                                             2009                2008                    2009
       Depreciation expense                ¥    611            ¥    622              $ 6,219
       Interest expense                         111                 128                   1,130

    Depreciation expense and interest expense, which were not reflected in the accompanying statements of
    operations, were computed by the straight-line method and interest method, respectively.

    Operating lease

    The minimum rental commitments under noncancelable operating leases as of March 31, 2009 were as
    follows:

                                                                 Thousands of
                                         Millions of Yen          U.S. Dollars
                                               2009                  2009
       Due within one year                ¥        24             $     244
       Due after one year                          54                   550
                 Total                    ¥        78             $     794



24. Derivative Financial Instruments

    The Group enters into interest rate swaps, forward exchange contracts and other derivatives. The Group
    enters into derivative transactions as a means of managing its interest rate and foreign currency exposures
    on certain assets and liabilities.

    The Group mainly uses derivative transactions to reduce market risks on fixed rate assets in the event
    interest rates increase and/or foreign exchange rates fluctuate.

    Derivatives are subject to market risk and credit risk. The Group’s exposure to market risk is limited, since
    derivative transactions are primarily used for hedging purposes, and exposure to credit risk is also limited,
    since the counterparties to those derivatives are limited to major financial institutions and the amount of
    transactions is restricted.

    In order to control the risks related with derivative transactions, the risk management department monitors
    and measures the risk exposures and reports to the management and the relevant departments. In addition,
    the Bank established the Assets and Liabilities Management Committee (“ALMC”) which consists of
    management and the relevant departments. The ALMC meetings are periodically held to discuss various
    risks and risk controls of the derivative transactions.

    Derivative transactions, recorded at fair value whose changes are accounted for in the consolidated
    statements of operations for the years ended March 31, 2009 and 2008, were as follows:
THE CHUKYO BANK,LIMITED                                27
                                                                                  Financial Statement 2009
                                                                                          Fiscal Year Ended March31,2009


                                                                       2009
                                                                  Millions of Yen
                                               Contract or                                Unrealized
                                             Notional Amount          Fair Value          Gain (Loss)
      Forward exchange contracts:
              Sell                                  ¥   6,531               ¥    (154)          ¥ (154)
              Buy                                       7,219                     224              224
      Interest rate swap contracts:
              Fixed rate receipt,
                floating rate payment                     800                       8                 8
              Floating rate receipt,
                 fixed rate payment                      1,148                      1                 1


                                                                   2009
                                                          Thousands of U.S. Dollars
                                               Contract or                          Unrealized
                                             Notional Amount      Fair Value        Gain (Loss)
      Forward exchange contracts:
              Sell                                $     66,473         $        (1,567)     $   (1,567)
              Buy                                       73,476                   2,280           2,280
      Interest rate swap contracts:
              Fixed rate receipt,
                 floating rate payment                   8,142                     81               81
              Floating rate receipt,
                fixed rate payment                      11,684                     10               10


                                                                       2008
                                                                  Millions of Yen
                                               Contract or                                Unrealized
                                             Notional Amount          Fair Value          Gain (Loss)
      Forward exchange contracts:
              Sell                                 ¥    7,968           ¥          318      ¥      318
              Buy                                       9,682                     (316)           (316)
      Interest rate swap contracts:
              Fixed rate receipt,
                floating rate payment                     800                       11               11
              Floating rate receipt,
                 fixed rate payment                      1,718                       8                8

     (Notes)
    1. Derivative transactions are recorded at fair value and the gains / (losses) are recognized in the
       consolidated statements of operations.
    2. Derivative transactions which qualify for hedge accounting are excluded from the disclosure of fair
       value information.
    3. Derivative transactions hedging foreign currency exposures on foreign-denominated financial
       assets/liabilities and whose fair values are already reflected in the amount of the financial
       assets/liabilities on the consolidated balance sheets are not included in the above table.
    4. Derivative transactions hedging foreign currency exposures on foreign-denominated financial
       assets/liabilities were the financial assets/liabilities are eliminated in the process of consolidation are not
       included in the above table.
THE CHUKYO BANK,LIMITED                                  28
                                                                           Financial Statement 2009
                                                                                     Fiscal Year Ended March31,2009
25. Segment Information

    The Bank and its subsidiaries operate primarily in one segment, banking, which constitutes most of their
    consolidated ordinary operations and total assets. Accordingly, the figures for ordinary operations and
    assets by business segment for the Bank and its subsidiaries are not presented.

    The Bank and its subsidiaries operate in Japan. Accordingly, the figures for ordinary operations and assets
    by geographical segment for the Bank and its subsidiaries are not presented.

    Ordinary operations arising from international operations both inside and outside of Japan constitute less
    than 10% of the consolidated ordinary operations. Accordingly, the figures for ordinary operations arising
    from international operations are not presented.

26. Subsequent Event

    (1) Appropriations of Retained Earnings

    The following appropriations of retained earnings at March 31, 2009 were approved at the Bank’s
    shareholders meeting held on June 26, 2009:

                                                                                           Thousands of
                                                                  Millions of Yen          U.S. Dollars
         Year-end cash dividends, ¥1.50 ($0.02) per share                  ¥ 325               $ 3,308


    (2) Bad debt – Sawada Foods, K. K.

    Sawada Foods, K. K., which was the Bank’s customer, closed its business and started to file for voluntary
    bankruptcy on August 5, 2009. The outstanding balance of loans to Sawada Foods,
    K. K. was ¥689 million ($7,013 thousand) as of August 5, 2009. The Bank will recognize bad debt
    expense of ¥612 million ($6,229 thousand), which would not be covered by collateral, for the year ending
    March 31, 2010.

                                                     *****




THE CHUKYO BANK,LIMITED                               29