Hachijuni Bank, headquartered in Nagano City, and Nagano Bank, headquartered in Matsumoto City, Nagano Prefecture,
have announced that they have reached a basic agreement to aim for business integration.
"Hachijuni Bank" is planning to discuss making "Nagano Bank" a wholly-owned subsidiary in June next year, and is planning to proceed with a merger two years later.
As the environment surrounding regional banks becomes increasingly severe due to prolonged low interest rates and a declining population, it seems that the aim is to strengthen profitability through management integration.
About Hachijuni Bank
The Hachijuni Bank, headquartered in Nagano City, was established in 1931 and is the largest regional bank in Nagano Prefecture.
As of the end of March this year, total assets were 13,343.7 billion yen, with approximately 3,500 employees and 151 stores in Japan, mainly in Nagano Prefecture.
In addition to having an overseas branch in Hong Kong, we are also expanding overseas by forming business alliances with local banks, mainly in Southeast Asia.
The balance of deposits was 8,066.6 billion yen, loans were 5,974.0 billion yen, and the equity ratio, which indicates the soundness of management, was 17.40% as of the end of June this year.
About Nagano Bank
Nagano Bank, a second regional bank headquartered in Matsumoto City, Nagano Prefecture, was established in 1950.
As of the end of March this year, the total assets are 1,267.2 billion yen, the number of employees is about 650, and the company operates 53 stores mainly in Nagano Prefecture.
The balance of deposits was 1,073.8 billion yen, loans were 647.8 billion yen, and the equity ratio, which indicates the soundness of management, was 10.11% as of the end of March this year.