November 11, 2016

Consolidated Financial Results for the Six Months ended September 30, 2016

＜under Japanese GAAP＞

Company Name:		Concordia Financial Group, Ltd.
Stock Exchange Listing:		Tokyo
Code Number:		7186
URL:		http://www.concordia-fg.jp/
Representative:	Representative Director, President Tatsumaro Terazawa
Quarterly Securities Report (Shihanki Hokokusho) Issuing Date:			November 18, 2016
Commencement of Dividend Payment:			December 1, 2016
Trading Accounts:			Established
Supplemental Information for Quarterly Financial Statements:			Available
Quarterly Investor Meeting Presentation:			Scheduled (For Institutional Investors and Analysts)

(Amounts less than one million yen are rounded down.)

1. Consolidated Financial Results (for the Six months ended September 30, 2016)

(1) Operating Results		(Unit: Millions of Yen, except per share data and percentages)
	Ordinary Income		Ordinary Profit		Profit Attributable to Owners of Parent
Six months ended September 30, 2016	166,335	－%	47,439	－%	92,806	－%
Six months ended September 30, 2015	－	－%	－	－%	－	－%

(Note1)

Comprehensive Income: Six months ended September 30, 2016: ¥76,360 million (－%);

Six months ended September 30, 2015: ¥ －million (-%)

(Note2)

Percentages shown in Ordinary Income, Ordinary Profit, Profit Attributable to Owners of Parent and Comprehensive Income are the increase (decrease) from the same period previous year.

	Net Income per Share	Net Income per Share (Diluted)
Six months ended September 30, 2016	¥71.51	¥71.46
Six months ended September 30, 2015	¥－	¥－

(Note)

As Concordia Financial Group, Ltd. was established on April 1, 2016, figures for the six months ended September 30, 2015 and percentages for changes from the six months ended September 30, 2015 are not provided.

(2) Financial Position	(Unit: Millions of Yen, except percentages)
	Total Assets	Total Net Assets	Own Capital Ratio
September 30, 2016	18,441,347	1,075,925	5.8%
March 31, 2016	－	－	－%

(Reference)

Own Capital: September 30, 2016: ¥1,070,774 million; March 31, 2016: ¥ － million

(Note1)

Own Capital Ratio = (Total Net Assets - Subscription Rights to Shares - Non-controlling Interests) / Total Assets
The ratio above is not based on the regulation of Capital Adequacy Ratio.

(Note2)

As Concordia Financial Group, Ltd. was established on April 1, 2016, figures for the fiscal year ended March 31, 2016 are not provided.

2. Dividends on Common Stock

	Annual Cash Dividends per Share
	1^st Quarter–End	2^nd Quarter–End	3^rd Quarter–End	Fiscal Year–End	Total
Fiscal year ended March 31, 2016	－	－	－	－	－
Fiscal year ending March 31, 2017	－	¥7.50
Fiscal year ending March 31, 2017 (Forecasts)			－	¥6.50	¥14.00

(Note1)

Revision of forecasts for dividends from the latest announcement: No

(Note2)

2nd Quarter–End Dividend for Fiscal year ending March 31, 2017 includes a Commemorative Dividend of ¥1.00.

(Note3)

2nd Quarter–End Dividend for Fiscal year ending March 31, 2017 is the first dividend for Concordia Financial Group, Ltd., as it was established on April 1, 2016.

(Note4)

Payment of Special Dividend for Fiscal year ending March 31, 2017 will be announced based on our Shareholder Return Policy and our performance.

3. Consolidated Earnings Forecasts （for the fiscal year ending March 31, 2017）

(Unit: Millions of Yen, except per share data)

	Ordinary Income		Ordinary Profit		Profit Attributable to Owners of Parent		Net Income per Share
Fiscal year ending March 31, 2017	334,500	－%	93,500	－%	123,500	－%		¥95.60

(Note1)

Percentages shown in Ordinary Income, Ordinary Profit and Profit Attributable to Owners of Parent are the increase (decrease) from the same period previous year.

(Note2)

Revision of earnings forecasts from the latest announcement: No

(Note3)

As Concordia Financial Group, Ltd. was established on April 1, 2016, percentages for changes from the same period previous year are not provided.

※ NOTE

(1) Changes in the scope of consolidated significant subsidiaries during the six months ended September 30, 2016: No

(2) Changes in accounting policies, accounting estimates, and restatements:

(A) Changes in accounting policies due to revision of accounting standards:	No
(B) Changes in accounting policies due to reasons other than (A):	Yes
(C) Changes in accounting estimates:	Yes
(D) Restatements:	No

(3) Number of common stocks issued:

(A) Number of stocks issued (including treasury stocks):	September 30, 2016	1,300,616,065 shares	March 31, 2016	－ shares
(B) Number of treasury stocks:	September 30, 2016	14,856,914 shares	March 31, 2016	－ shares
(C) Average outstanding stocks for the six months ended:	September 30, 2016	1,297,697,485 shares	September 30, 2015	－ shares

(Note)

As Concordia Financial Group, Ltd. was established on April 1, 2016, figures for the fiscal year ended March 31, 2016 and the six months ended September 30, 2015 are not provided.

(Non-Consolidated Financial Highlight)

Non-Consolidated Financial Results (for the Six months ended September 30, 2016)

(1) Operating Results			(Unit: Millions of Yen, except per share data and percentages)
	Operating Income		Operating Profit		Ordinary Profit		Net Income
Six months ended September 30, 2016	41,072	－%	40,553	－%	39,813	－%	39,792	－%
Six months ended September 30, 2015	－	－%	－	－%	－	－%	－	－%

(Note)

Percentages shown in Operating Income, Operating Profit, Ordinary Profit and Net Income are the increase (decrease) from the same period previous year.

	Net Income per Share
Six months ended September 30, 2016	¥30.66
Six months ended September 30, 2015	¥ －

(Note)

(2) Financial Position		(Unit: Millions of Yen, except percentages)
	Total Assets	Total Net Assets	Own Capital Ratio
September 30, 2016	911,934	911,796	99.9%
March 31, 2016	－	－	－%

(Reference) Own Capital: September 30, 2016: ¥911,425 million; March 31, 2016: ¥－ million

(Note1)

Own Capital Ratio = (Total Net Assets – Subscription Rights to Shares) / Total Assets
The ratio above is not based on the regulation of Capital Adequacy Ratio.

(Note2)

As Concordia Financial Group, Ltd. was established on April 1, 2016, figures for the fiscal year ended March 31, 2016 are not provided.

(Display of implementation status of the interim audit procedure)

The interim audit procedure for the interim consolidated and non-consolidated financial statements has been completed according to the Financial Instruments and Exchange Act.

(Notes for using forecasts information, etc.)

The description of future performance of this report is based on information, which is presently available and certain assumptions which are considered to be reasonable, and it does not guarantee future performance. Please take note that future performance may differ from forecasts.

Concordia Financial Group, Ltd. is a specified business company under “the Cabinet Office Ordinance on disclosure of Corporate Information, etc.” Article 17-15 clause 2, and prepares the consolidated and non-consolidated interim financial statements for the 2nd quarter.

Contents of Attachment

Qualitative Information Regarding Consolidated Financial Statements for the Six Months Ended September 30, 2016

(1)

Qualitative Information Regarding Operating Results

(2)

Qualitative Information Regarding Financial Position

(3)

Information Regarding Consolidated Earnings Forecasts

Summary Information (Note)

(1)

Changes in Accounting Policies, Accounting Estimates, and Restatements

(2)

Additional Information

Consolidated Interim Financial Statements

(1)

Consolidated Interim Balance Sheets

(2)

Consolidated Interim Statements of Income and Consolidated Interim Statements of Comprehensive Income

(3)

Consolidated Interim Statements of Changes in Net Assets

(4)

Notes on Going Concern Assumption

(5)

Business Combination

Non-Consolidated Interim Financial Statements

(1)

Non-Consolidated Interim Balance Sheets

(2)

Non-Consolidated Interim Statements of Income

(3)

Non-Consolidated Interim Statements of Changes in Net Assets

※

Supplemental Information for Quarterly Financial Statements
Selected Financial Information for the six months ended September 30, 2016

1. Qualitative Information Regarding Consolidated Financial Statements for the Six Months Ended September 30, 2016

(1) Qualitative Information Regarding Operating Results

Concordia Financial Group, Ltd. was established as a result of the business integration between The Bank of Yokohama, Ltd. and The Higashi-Nippon Bank, Limited through a joint share transfer on April 1, 2016. Concordia Financial Group, Ltd. aims to contribute to creating a vibrant future as a trusted financial group and to enhance its corporate value together with the growth of the region by providing the best financial services to its customers through collaboration that leverages the strengths and uniqueness of each group company.

During the six months ended September 30, 2016, ordinary income amounted to ¥166.335 billion. On the other hand, ordinary expenses amounted to ¥118.895 billion. As a result, ordinary profit for the six months ended September 30, 2016 amounted to ¥47.439 billion. Profit attributable to owners of parent amounted to ¥92.806 billion, as gain on bargain purchase of ¥60.346 billion was recognized as extraordinary income.

(2) Qualitative Information Regarding Financial Position

Total assets as of September 30, 2016 amounted to ¥18,441.3 billion, and net assets as of September 30, 2016 amounted to ¥1,075.9 billion.

For major accounts balances, deposits as of September 30, 2016 amounted ¥14,328.5 billion and loans and bills discounted as of September 30, 2016 amounted to ¥11,857.9 billion. In addition, securities as of September 30, 2016 amounted to ¥2,744.3 billion.

(3) Information Regarding Consolidated Earnings Forecasts

The consolidated earnings forecasts for the term ending March 31, 2017 announced on May 13, 2016 remains unchanged.

2. Summary Information (Note)

(1) Changes in Accounting Policies, Accounting Estimates, and Restatements

Concordia Financial Group, Ltd. is a wholly-owning parent company established as a result of the business integration between The Bank of Yokohama, Ltd. and The Higashi-Nippon Bank, Limited through a joint share transfer on April 1, 2016. Accounting policies and accounting estimates applied by Concordia Financial Group, Ltd. are consistent with those applied in preparing consolidated financial statements of The Bank of Yokohama, Ltd. and The Higashi-Nippon Bank, Limited.

(Changes in accounting policies that are difficult to distinguish from changes in accounting estimates)

For the depreciation method of tangible fixed assets (except leased assets), consolidated subsidiaries of Concordia Financial Group, Ltd. mainly adopt the straight-line method instead of the declining-balance method from the six months ended September 30, 2016. Previously, depreciation of tangible fixed assets held by consolidated subsidiaries was mainly calculated using the declining-balance method, except for buildings (excluding fixtures) acquired on or after April 1, 1998, to which the straight-line method was applied.

Concordia Financial Group, Ltd. plans a capital investment in business equipment under the Medium-term Management Plan starting from the fiscal year ending March 31, 2017. It is expected that the equipment and other existing equipment will be used stably over a long period of time. Therefore, in implementing the Medium-term Management Plan, Concordia Financial Group, Ltd. has changed the depreciation method to the straight-line method to reflect the actual usage, in which an equal amount of expenses is recognized over useful lives of tangible fixed assets.

As a result of the change, ordinary profit and profit before income taxes increased by ¥851 million for the six months ended September 30, 2016, respectively, compared with the amounts calculated by the previous accounting method.

(2) Additional Information

Concordia Financial Group, Ltd. applies the “Implementation Guidance on Recoverability of Deferred Tax Assets” (Accounting Standards Board of Japan (ASBJ) Guidance No.26 issued on March 28, 2016) from the six months ended September 30, 2016.

3.Consolidated Interim Financial Statements

(1) Consolidated Interim Balance Sheets

	(Unit: Millions of Yen)
	As of September 30, 2016
Assets :
Cash and due from banks		2,966,023
Call loans and bills bought		223,750
Monetary claims bought		83,695
Trading assets		10,821
Securities		2,744,361
Loans and bills discounted		11,857,978
Foreign exchanges		12,050
Lease receivables and investment assets		65,098
Other assets		194,653
Tangible fixed assets		156,317
Intangible fixed assets		12,593
Net defined benefit asset		29,199
Deferred tax assets		8,436
Customers' liabilities for acceptances and guarantees		134,785
Allowance for loan losses		(58,419	)
Total assets		18,441,347
Liabilities :
Deposits		14,328,510
Negotiable certificates of deposit		471,471
Call money and bills sold		1,175,847
Payables under securities lending transactions		122,284
Trading liabilities		217
Borrowed money		891,295
Foreign exchanges		245
Bonds payable		10,000
Other liabilities		189,004
Provision for bonuses		4,423
Net defined benefit liability		8,510
Provision for reimbursement of deposits		1,952
Provision for loss on cancellation of system contracts		2,270
Provision for contingent losses		850
Reserves under special laws		16
Deferred tax liabilities		7,142
Deferred tax liabilities for land revaluation		16,594
Acceptances and guarantees		134,785
Total liabilities		17,365,421
Net assets :
Capital stock		150,078
Capital surplus		292,626
Retained earnings		536,692
Treasury shares		(7,504	)
Total shareholders' equity		971,893
Valuation difference on available-for-sale securities		66,448
Deferred gains or losses on hedges		(24	)
Revaluation reserve for land		37,071
Remeasurements of defined benefit plans		(4,614	)
Total accumulated other comprehensive income		98,881
Subscription rights to shares		371
Non-controlling interests		4,779
Total net assets		1,075,925
Total liabilities and net assets		18,441,347

(2) Consolidated Interim Statements of Income and Consolidated Interim Statements of Comprehensive Income
(Consolidated Interim Statements of Income)
	(Unit: Millions of Yen)
	For the six months ended September 30, 2016
Ordinary income		166,335
Interest income		89,317
Of which, interest on loans and bills discounted		73,736
Of which, interest and dividends on securities		12,244
Fees and commissions		30,000
Trading income		1,136
Other ordinary income		41,577
Other income		4,303
Ordinary expenses		118,895
Interest expenses		5,016
Of which, interest on deposits		2,613
Fees and commissions payments		5,671
Other ordinary expenses		35,739
General and administrative expenses		67,331
Other expenses		5,136
Ordinary profit		47,439
Extraordinary income		60,546
Gain on disposal of non-current assets		199
Gain on bargain purchase		60,346
Extraordinary losses		938
Loss on disposal of non-current assets		550
Impairment loss		387
Other		0
Profit before income taxes		107,048
Income taxes - current		12,321
Income taxes - deferred		1,469
Total income taxes		13,791
Profit		93,256
Profit attributable to non-controlling interests		450
Profit attributable to owners of parent		92,806

(Consolidated Interim Statements of Comprehensive Income)

	(Unit: Millions of Yen)
	For the six months ended September 30, 2016
Profit		93,256
Other comprehensive income		(16,895	)
Valuation difference on available-for-sale securities		(17,886	)
Deferred gains or losses on hedges		(62	)
Remeasurements of defined benefit plans		1,053
Comprehensive income		76,360
(Comprehensive income attributable to)
Comprehensive income attributable to owners of parent		75,910
Comprehensive income attributable to non-controlling interests		450

(3) Consolidated Interim Statements of Changes in Net Assets

For the six months ended September 30, 2016

(Unit: Millions of Yen)
	Shareholders’ equity
	Capital stock	Capital surplus	Retained earnings	Treasury shares	Total shareholders’ equity
Balance at beginning of current period	215,628	177,244	488,988	(34,009)	847,851
Changes of items during period
Changes due to share transfer	(65,628)	115,303			49,674
Issuance of new shares	78	78			157
Dividends of surplus			(10,946)		(10,946)
Profit attributable to owners of parent			92,806		92,806
Purchase of treasury shares				(7,507)	(7,507)
Disposal of treasury shares		(0)		0	0
Retirement of treasury shares			(34,011)	34,011	―
Reversal of revaluation reserve for land			(143)		(143)
Net changes of items other than shareholders’ equity
Total changes of items during period	(65,550)	115,382	47,704	26,504	124,041
Balance at end of current period	150,078	292,626	536,692	(7,504)	971,893

	Accumulated other comprehensive income					Subscription rights to shares	Non-controlling interests	Total net assets
	Valuation difference on available-for-sale securities	Deferred gains or losses on hedges	Revaluation reserve for land	Remeasurements of defined benefit plans	Total accumulated other comprehensive income	Subscription rights to shares	Non-controlling interests	Total net assets
Balance at beginning of current period	84,335	37	36,928	(5,668)	115,633	267	45,050	1,008,803
Changes of items during period
Changes due to share transfer								49,674
Issuance of new shares								157
Dividends of surplus								(10,946)
Profit attributable to owners of parent								92,806
Purchase of treasury shares								(7,507)
Disposal of treasury shares								0
Retirement of treasury shares								―
Reversal of revaluation reserve for land								(143)
Net changes of items other than shareholders’ equity	(17,886)	(62)	143	1,053	(16,752)	104	(40,270)	(56,918)
Total changes of items during period	(17,886)	(62)	143	1,053	(16,752)	104	(40,270)	67,122
Balance at end of current period	66,448	(24)	37,071	(4,614)	98,881	371	4,779	1,075,925

(4) Notes on Going Concern Assumption

Not applicable.

(5) Business Combination

Concordia Financial Group, Ltd. was established as a result of the business integration between The Bank of Yokohama, Ltd. and The Higashi-Nippon Bank, Limited through a joint share transfer on April 1, 2016. The joint share transfer was accounted under the purchase method in accordance with the Accounting Standard for Business Combination where The Bank of Yokohama, Ltd. was the accounting acquirer and The Higashi-Nippon Bank, Limited was the accounting acquiree.

1. Outline of the business combination

(1)	Name of the acquired company and its business

The Higashi-Nippon Bank, Limited (Banking business)

(2)	Major reasons for the business combination

In recent years, the market size in regional economies has been expected to shrink in the future due to the aging and declining population. In addition, there has been a significant structural change in the operating foundation of regional financial institutions, due to the fact that the number of regional financial institutions has not declined despite the fact that, since the collapse of the bubble economy, the corporate sector has surplus funds and has thus been less dependent on indirect finance. Consequently, it has become an important business challenge for all regional financial institutions to cope with reduction of profit margins and deterioration of earnings capacity resulting from interest rate competition.

Taking into account such changes in the environment, The Bank of Yokohama, Ltd. and The Higashi-Nippon Bank, Limited believed that it was necessary for regional financial institutions to promote sharing of a wide-area network and cooperation with each other to further contribute to sustainable regional growth going forward. Based on this belief, The Bank of Yokohama, Ltd. and The Higashi-Nippon Bank, Limited decided to form a new financial group that is open to other regional financial institutions that share the same management strategy and that would play a central role in regional finance with wide area coverage.

While The Bank of Yokohama, Ltd. and The Higashi-Nippon Bank, Limited are based in the Metropolitan area, The Bank of Yokohama, Ltd. has as its strengths a stable fund raising capability and the ability to efficiently and broadly provide high-quality financial services that are supported by strong brand power principally in Kanagawa Prefecture and southwest Tokyo, whereas The Higashi-Nippon Bank, Limited has as its strength sales capabilities focusing on attentive face-to-face transactions and presentation of proposals in the area of loans to small and medium-sized enterprises.

Taking into account such strengths and characteristics of The Bank of Yokohama, Ltd. and The Higashi-Nippon Bank, Limited and the fact that despite both being based in the Metropolitan area, both of The Bank of Yokohama, Ltd. and The Higashi-Nippon Bank, Limited are not competing much against each other in sales areas, customer bases and areas of strength, etc. but rather are more complementary to each other, The Bank of Yokohama, Ltd. and The Higashi-Nippon Bank, Limited confirmed that The Bank of Yokohama, Ltd. and The Higashi-Nippon Bank, Limited would be able to improve services to customers and corporate value through the expected improvements in efficiency and synergy effects for growth from the business integration. Accordingly, The Bank of Yokohama, Ltd. and The Higashi-Nippon Bank, Limited reached a definitive agreement on the implementation of the business integration through an establishment of a holding company on September 8, 2015.

(3)	Date of the business combination

April 1, 2016

(4)	Legal form of the business combination

Incorporation of a joint holding company through a share transfer

(5)	Company name after the business combination

Concordia Financial Group, Ltd.

(6)	Ratio of voting rights acquired

100%

(7)	Main basis for determining the acquiring company

Based on factors in determining the acquiring company in the Accounting Standard for Business Combination.

2. Period of the acquired company’s financial results included in the consolidated financial statements

From April 1, 2016 to September 30, 2016

3. Acquisition cost of the acquired company and breakdown of that cost

Fair value of common shares of Concordia Financial Group, Ltd. delivered at the acquisition date	¥49,756 million
Fair value of subscription rights to shares of Concordia Financial Group, Ltd. delivered at the acquisition date	¥211 million
Acquisition cost	¥49,968 million

4. Share transfer ratio by class of shares, its calculation method, and the number of shares transferred

(1)	Share transfer ratio by class of shares

(a) 1.000 share of Concordia Financial Group, Ltd. for each share of common shares of The Bank of Yokohama, Ltd.

(b) 0.541 share of Concordia Financial Group, Ltd. for each share of common shares of The Higashi-Nippon Bank, Limited

(2)	Calculation method

The Bank of Yokohama, Ltd. appointed Daiwa Securities Co. Ltd. and The Higashi-Nippon Bank, Limited appointed SMBC Nikko Securities Inc. as independent third party assessors and each requested its respective assessor to calculate the share transfer ratio. Based on the reports submitted by the assessors and upon discussions on the share transfer ratio between The Bank of Yokohama, Ltd. and The Higashi-Nippon Bank, Limited, the share transfer ratio was agreed upon and determined.

(3)	Number of shares transferred

Common shares of 1,300,263,183

5. Major acquisition related costs

External advisory fees

¥180 million

6. Amount of and reason for gain on bargain purchase

(1) Amount of gain on bargain purchase

¥60,346 million

(2) Reason for gain on bargain purchase

As the net amounts of assets acquired and liabilities assumed exceeded the acquisition cost, the difference was recognized as gain on bargain purchase.

7. Amounts of assets and liabilities accepted on the date of the business combination and their details

(1) Amount of assets

Total assets	¥2,207,000 million
Of which, Loans and bills discounted	¥1,645,634 million
Of which, Securities	¥445,260 million
Of which, Allowance for loan losses	¥(8,428) million

(2) Amount of liabilities

Total liabilities	¥2,096,421 million
Of which, Deposits	¥1,851,196 million

4. Non-Consolidated Interim Financial Statements

(1) Non-Consolidated Interim Balance Sheets

	(Unit: Millions of Yen)
	As of September 30, 2016
Assets:
Current assets
Cash and due from banks		1,745
Securities		22,000
Income taxes receivable		8,087
Deferred tax assets		21
Other		326
Total current assets		32,180
Fixed assets
Tangible fixed assets		56
Intangible fixed assets		58
Investments and other assets
Investments in subsidiaries and affiliates		879,639
Total investments and other assets		879,639
Total fixed assets		879,754
Total assets		911,934
Liabilities:
Current liabilities
Income taxes payable		22
Provision for bonuses		39
Other		75
Total current liabilities		137
Total liabilities		137
Net assets:
Shareholders’ equity
Capital stock		150,078
Capital surplus
Legal capital surplus		37,578
Other capital surplus		691,481
Total capital surplus		729,059
Retained earnings
Other retained earnings
Retained earnings brought forward		39,792
Total retained earnings		39,792
Treasury shares		(7,504	)
Total shareholders’ equity		911,425
Subscription rights to shares		371
Total net assets		911,796
Total liabilities and net assets		911,934

(2) Non-Consolidated Interim Statements of Income

	(Unit: Millions of Yen)
	For the six months ended
	September 30, 2016
Operating income
Dividends from subsidiaries and affiliates		39,751
Fees and commissions from subsidiaries and affiliates		1,321
Total operating income		41,072
Operating expenses
General and administrative expenses		519
Total operating expenses		519
Operating profit		40,553
Non-operating income		0
Non-operating expenses		739
Ordinary profit		39,813
Income before income taxes		39,813
Income taxes - current		42
Income taxes - deferred		(21	)
Total income taxes		21
Net income		39,792

(3) Non-Consolidated Interim Statements of Changes in Net Assets

For the six months ended September 30, 2016

(Unit: Millions of Yen)

	Shareholders’ equity								Subscription rights to shares	Total net assets
	Capital stock	Capital surplus			Retained earnings		Treasury shares	Total shareholders’ equity
		Legal capital surplus	Other capital surplus	Total capital surplus	Other retained earnings	Total retained earnings
		Legal capital surplus	Other capital surplus	Total capital surplus	Retained earnings brought forward	Total retained earnings
Balance at beginning of current period	―	―	―	―	―	―	―	―	―	―
Changes of items during period
Increase due to share transfers	150,000	37,500	691,481	728,981				878,981		878,981
Issuance of new shares	78	78		78				157		157
Net income					39,792	39,792		39,792		39,792
Purchase of treasury shares							(7,505)	(7,505)		(7,505)
Disposal of treasury shares			(0)	(0)			0	0		0
Net changes of items other than shareholders’ equity									371	371
Total changes of items during period	150,078	37,578	691,481	729,059	39,792	39,792	(7,504)	911,425	371	911,796
Balance at end of current period	150,078	37,578	691,481	729,059	39,792	39,792	(7,504)	911,425	371	911,796

SELECTED INTERIM FINANCIAL INFORMATION FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2016

[CONTENTS]
I.	DIGEST OF INTERIM FINANCIAL RESULTS FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2016
II.	SUMMARY OF INTERIM FINANCIAL RESULTS
	1.	Profit and Loss
	2.	Average Balance of Use and Source of Funds, Interest Margins
	3.	Fees and Commissions (Domestics)
	4.	Gains or Losses on Investment Securities
	5.	Net Unrealized Gains (Losses) on Securities
	6.	Projected Redemption Amounts for Securities with maturities
	7.	Employees and Branches
	8.	Net Business Profit
	9.	Return on Equity
	10.	Return on Assets
	11.	Retirement Benefit
	12.	Deferred Tax Assets
	13.	Capital Adequacy Ratio

III.	LOANS, etc. INFORMATION
	1.	Risk Managed Loan
	2.	Allowance for Loan Losses
	3.	Percentage of Allowance to Total Risk Managed Loans
	4.	Claims Disclosed under the Financial Revitalization Law
	5.	Coverage of Claims Disclosed under the Financial Revitalization Law
	※	ALLOWANCE COVERAGE RATIO・TOTAL COVERAGE RATIO
	※	EACH STANDARDS CONCERNING DISCLOSURE OF ASSETS
	6.	Off-Balanced Credits
	7.	Loan Portfolio, etc. Information
	8.	Loans Information
	9.	Deposits Information
	10.	Individual Deposit Assets
	※	Reference
	(1)	The Bank of Yokohama, Ltd. Non-Consolidated Interim Financial Statements
	(2)	The Higashi-Nippon Bank, Limited Non-Consolidated Interim Financial Statements

This documents include contents in respect to future performance. Therefore, these contents are based on reasonable assumption including unexpected risk and element of uncertainty.

Please be cautious the actual results might differ significantly from forecast.

I. DIGEST OF INTERIM FINANCIAL RESULTS FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2016

1. Income Status

＜Concordia Financial Group, Ltd. Consolidated＞

▪ For the consolidated operating results during the six months ended September 30, 2016, ordinary profit amounted to ¥47.4 billion and profit attributable to owners of parent amounted to ¥92.8 billion.

▪ Profit attributable to owners of parent excluding gain on bargain purchase (¥60.3 billion) amounted to ¥32.4 billion (progress rate to fiscal year ending March 31, 2017 forecasts announced in May 2016 : 51.0%), which was as planned.

＜The Bank of Yokohama, Ltd. and The Higashi–Nippon Bank, Limited Combined＞
▪ Although gross operating income decreased by ¥8.5 billion (–7.0%) from the same period of the previous year, due to the decrease in net interest income from domestic operations by ¥5.5 billion from the same period of the previous year as a result of the impacts of negative interest rates and the decrease in gain on cancellation of investment trusts by ¥3.9 billion, and the decrease in net fees and commissions from domestic operations by ¥4.9 billion from the same period of the previous year as a result of the decrease in sales of investment products, progress rate to fiscal year ending March 31, 2017 Forecasts was 49.7%, which was as planned.

▪ Although expenses increased by ¥1.0 billion (+1.6%) to ¥62.0 billion from the same period of the previous year due to payment of management fee to the holding company, growth investment ahead of schedule, and the increase in tax based on business size as a result of the tax revision, progress rate to fiscal year ending March 31, 2017 Forecasts was 48.2%, which was within the range of the plan. OHR was 56.1% and at a level of less than fiscal year ending March 31, 2017 Forecasts (57.8%).

▪ As a result, although core net business profit decreased by ¥9.4 billion (–16.3%), progress rate to fiscal year ending March 31, 2017 Forecasts was 51.7%, which was as planned.

▪ Although net income decreased by ¥12.4 billion (–26.6%) from the same period of the previous year to ¥33.9 billion due to the decrease in gains or losses on stocks and other securities by ¥8.3 billion from the same period of the previous year and the increase in credit costs by ¥2.5 billion, progress rate to fiscal year ending March 31, 2017 Forecasts was 55.1%, which exceeded the planned progress rate.

	＜Concordia Financial Group, Ltd. Consolidated＞				(Unit: Billions of Yen)

				For the six months ended September 30, 2016	Progress rate to Fiscal year ending March 31, 2017 Forecasts	<Reference> Announcement in May 2016 Forecasts for FY2016
1	Ordinary profit			47.4	50.6%	93.5
2	Profit attributable to owners of parent			92.8	75.1%	123.5
3			Of which, excluding gain on bargain purchase	32.4	51.0%	63.5
4		ROE		18.19%
5			Of which, excluding gain on bargain purchase	6.36%

Note: As Concordia Financial Group, Ltd. was established on April 1, 2016, figures for the six months ended September 30, 2015 are not provided.

	＜The Bank of Yokohama, Ltd. and The Higashi–Nippon Bank, Limited Combined＞									(Unit: Billions of Yen)				(Announcement in May 2016) ＜The Bank of Yokohama, Ltd. and The Higashi–Nippon Bank, Limited Combined＞

				For the six months ended September 30, 2015			For the six months ended September 30, 2016							Progress rate to Fiscal year ending March 31, 2017 Forecasts
					Yokohama	Higashi–Nippon		Yokohama	Higashi–Nippon	Increase/(Decrease)		Yokohama	Higashi–Nippon
					Yokohama	Higashi–Nippon		Yokohama	Higashi–Nippon	Rate	Amount	Yokohama	Higashi–Nippon
6	Gross operating income			118.9	102.7	16.1	110.4	93.9	16.5	(7.0%)	(8.5)	(8.8)	0.4	49.7%
7		Gross operating income from domestic operations		116.4	100.5	15.8	107.6	91.3	16.2	(7.6%)	(8.8)	(9.2)	0.4
8			Net interest income	91.4	76.7	14.6	85.9	71.3	14.6	(6.0%)	(5.5)	(5.4)	0.0
9			Net fees and commissions	23.4	22.5	0.9	18.5	17.4	1.0	(21.0%)	(4.9)	(5.1)	0.1
10			Net trading income	0.1	0.1	–	0.1	0.1	–	–	0.0	0.0	–
11			Net other ordinary income	1.3	1.1	0.2	2.9	2.4	0.5	116.1%	1.6	1.3	0.3
12		Gross operating income from international operations		2.4	2.1	0.2	2.8	2.5	0.2	16.9%	0.4	0.4	0.0
13	Expenses			61.0	49.5	11.4	62.0	50.2	11.8	1.6%	1.0	0.7	0.4	48.2%
14			(Reference) OHR ※1	51.3%	48.2%	71.0%	56.1%	53.4%	71.3%		4.8%	5.2%	0.3%
15		Of which, personnel		28.9	22.5	6.3	28.7	22.4	6.3	(0.4%)	(0.2)	(0.1)	0.0
16		Of which, facilities		27.8	23.4	4.3	28.3	23.7	4.6	1.7%	0.5	0.3	0.3
17	Core net business profit (6–13)			57.8	53.1	4.6	48.4	43.6	4.7	(16.3%)	(9.4)	(9.5)	0.1	51.7%
18	Provision of allowance for general loan losses			–	–	–	0.0	–	0.0	–	0.0	–	0.0
19	Net business profit (6–13–18)			57.8	53.1	4.6	48.3	43.6	4.6	(16.4%)	(9.5)	(9.5)	0.0
20	Non–recurring gains (losses)			10.4	6.2	4.2	(0.4)	0.6	(1.0)	(103.9%)	(10.8)	(5.6)	(5.2)
21		Of which, disposal of bad debts		(3.1)	(2.7)	(0.3)	(0.7)	(1.6)	0.8	(75.8%)	2.4	1.1	1.1
22		Of which, gains or losses on stocks and other securities		9.1	4.5	4.5	0.8	0.1	0.6	(90.5%)	(8.3)	(4.4)	(3.9)
23	Ordinary profit (19+20)			68.3	59.4	8.9	47.9	44.2	3.6	(29.8%)	(20.4)	(15.2)	(5.3)	53.5%
24	Extraordinary income (losses)			(0.2)	(0.2)	(0.0)	(0.3)	(0.4)	0.1	17.4%	(0.1)	(0.2)	0.1
25	Total income taxes			21.7	18.6	3.0	13.6	12.4	1.1	(37.2%)	(8.1)	(6.2)	(1.9)
26	Net income (23+24–25)			46.3	40.5	5.7	33.9	31.3	2.6	(26.6%)	(12.4)	(9.2)	(3.1)	55.1%

27	Credit costs (18+21)			(3.1)	(2.7)	(0.3)	(0.6)	(1.6)	0.9	–	2.5	1.1	1.2
28		Credit cost ratio ※2		(0.05%)	(0.05%)	(0.04%)	(0.01%)	(0.03%)	0.12%		0.04%	0.02%	0.16%

2. Loans

▪Loans to corporates increased, mainly due to the increase in loans to small and medium–sized businesses by 6.1% (of which, The Bank of Yokohama, Ltd.: 4.8%, The Higashi–Nippon Bank, Limited: 10.2%) from the end of same period of the previous year, due to synergies from the business integration. In addition, loans to individuals increased from the end of same period of the previous year due to the increase in apartment loans and consumer loans. As a result, outstanding balance of loans increased by 3.4% from the end of same period of the previous year to ¥11,906.8 billion.

▪Average balance of loans increased by 2.7% from the same period of the previous year to ¥11,679.5 billion, due to the increase in loans to small and medium–sized business by 6.3% (of which, The Bank of Yokohama, Ltd.: 4.9%, The Higashi–Nippon Bank, Limited: 11.0%) and the increase in apartment loans and consumer loans.

[By Size] Outstanding balance of loans ＜The Bank of Yokohama, Ltd. and The Higashi–Nippon Bank, Limited Combined＞ domestic branches	[By Banks] Outstanding balance of loans ＜The Bank of Yokohama, Ltd. and The Higashi–Nippon Bank, Limited Combined＞ domestic branches

① Outstanding balance of loans <The Bank of Yokohama, Ltd. and The Higashi-Nippon Bank, Limited Combined>

(Unit: Billions of Yen)

				As of September 30, 2015			As of September 30, 2016
				As of September 30, 2015			As of September 30, 2016
					Yokohama	Higashi–Nippon		Yokohama	Higashi–Nippon	Increase/(Decrease)		Yokohama	Higashi–Nippon
					Yokohama	Higashi–Nippon		Yokohama	Higashi–Nippon	Rate	Amount	Yokohama	Higashi–Nippon
1	Loans ＜ outstanding balance ＞			11,506.5	9,903.5	1,602.9	11,906.8	10,216.4	1,690.4	3.4%	400.3	312.9	87.5
2		Corporates		5,788.4	4,642.6	1,145.7	6,046.7	4,796.8	1,249.9	4.4%	258.3	154.2	104.2
3			Of which, small and medium–sized businesses	4,061.3	3,103.7	957.6	4,311.5	3,255.4	1,056.1	6.1%	250.2	151.7	98.5
4		Individuals		5,287.7	4,869.2	418.5	5,340.8	4,940.4	400.4	1.0%	53.1	71.2	(18.1)
5			Housing loans	3,286.9	3,065.1	221.7	3,243.8	3,045.1	198.6	(1.3%)	(43.1)	(20.0)	(23.1)
6			Apartment loans	1,618.1	1,440.1	178.0	1,690.0	1,508.7	181.2	4.4%	71.9	68.6	3.2
7			Consumer loans	382.5	363.8	18.6	407.0	386.5	20.4	6.4%	24.5	22.7	1.8
8		Public sectors		430.4	391.6	38.7	519.2	479.1	40.0	20.6%	88.8	87.5	1.3

9	Loans (All branches)			11,522.0	9,919.0	1,602.9	11,926.2	10,235.8	1,690.4	3.5%	404.2	316.8	87.5

② Average balance of loans ＜The Bank of Yokohama, Ltd. and The Higashi–Nippon Bank, Limited Combined＞

(Unit: Billions of Yen)

				For the six months ended September 30, 2015			For the six months ended September 30, 2016
				For the six months ended September 30, 2015			For the six months ended September 30, 2016
					Yokohama	Higashi–Nippon		Yokohama	Higashi–Nippon	Increase/(Decrease)		Yokohama	Higashi–Nippon
					Yokohama	Higashi–Nippon		Yokohama	Higashi–Nippon	Rate	Amount	Yokohama	Higashi–Nippon
10	Loans ＜outstanding balance＞			11,366.3	9,817.6	1,548.7	11,679.5	10,049.9	1,629.6	2.7%	313.2	232.3	80.9
11		Corporates		5,650.4	4,562.1	1,088.3	5,902.3	4,712.6	1,189.7	4.4%	251.9	150.5	101.4
12			Of which, small and medium–sized businesses	3,937.9	3,043.1	894.7	4,187.6	3,193.5	994.0	6.3%	249.7	150.4	99.3
13		Individuals		5,285.2	4,864.8	420.4	5,301.7	4,898.6	403.0	0.3%	16.5	33.8	(17.4)
14			Housing loans	3,304.1	3,077.7	226.3	3,253.4	3,048.6	204.8	(1.5%)	(50.7)	(29.1)	(21.5)
15			Apartment loans	1,602.7	1,426.5	176.2	1,651.2	1,472.9	178.2	3.0%	48.5	46.4	2.0
16			Consumer loans	378.4	360.5	17.8	397.1	377.1	19.9	4.9%	18.7	16.6	2.1
17		Public sectors		430.5	390.6	39.9	475.3	438.5	36.8	10.4%	44.8	47.9	(3.1)

3. Deposits

• Outstanding balance of deposits increased by 2.7% from the end of same period of the previous year to ¥14,219.1 billion due to the increase in both deposits from individuals and corporates. Outstanding balance of deposits including NCD of The Higashi–Nippon Bank, Limited increased by 4.0% from the end of same period of the previous year.

• Average balance of deposits increased by 3.1% from the same period of the previous year to ¥14,221.0 billion due to the increase in both deposits from individuals and corporates.

[By Depositors] Outstanding balance of deposits ＜The Bank of Yokohama, Ltd. and The Higashi–Nippon Bank, Limited Combined＞ domestic branches		[By Banks] Outstanding balance of deposits(including NCD) ＜The Bank of Yokohama, Ltd. and The Higashi–Nippon Bank, Limited Combined＞ domestic branches

	① Outstanding balance of deposits ＜The Bank of Yokohama, Ltd. and The Higashi–Nippon Bank, Limited Combined＞									(Unit: Billions of Yen)

			As of September 30, 2015			As of September 30, 2016
				Yokohama	Higashi–Nippon		Yokohama	Higashi–Nippon	Increase/(Decrease)		Yokohama	Higashi–Nippon
									Rate	Amount
1	Deposits ＜outstanding balance＞		13,833.5	11,945.8	1,887.7	14,219.1	12,359.3	1,859.7	2.7%	385.6	413.5	(28.0)
2		Of which, individual	10,239.5	9,057.1	1,182.4	10,430.8	9,234.3	1,196.4	1.8%	191.3	177.2	14.0
3		Of which, corporate	2,998.1	2,388.8	609.3	3,103.1	2,511.2	591.9	3.5%	105.0	122.4	(17.4)

	② Outstanding balance of deposits ＜The Bank of Yokohama, Ltd. and The Higashi–Nippon Bank, Limited Combined＞								(Unit: Billions of Yen)

			For the six months ended September 30, 2015			For the six months ended September 30, 2016
				Yokohama	Higashi–Nippon		Yokohama	Higashi–Nippon	Increase/(Decrease)		Yokohama	Higashi–Nippon
				Yokohama	Higashi–Nippon		Yokohama	Higashi–Nippon	Rate	Amount	Yokohama	Higashi–Nippon
4	Deposits ＜average balance＞		13,783.0	11,987.0	1,796.0	14,221.0	12,430.4	1,790.5	3.1%	438.0	443.4	(5.5)
5		Of which, individual	10,229.5	9,042.3	1,187.1	10,392.8	9,207.7	1,185.0	1.5%	163.3	165.4	(2.1)
6		Of which, corporate	2,917.8	2,392.9	524.8	3,093.8	2,553.4	540.3	6.0%	176.0	160.5	15.5

4. Deposit Assets for individuals

• Although the balance of insurance products increased by ¥54.6 billion from the end of same period of the previous year, group total balance of investment products for individuals decreased by ¥25.0 billion to ¥2,126.3 billion, mainly due to the decrease in the balance of investment trusts by ¥42.1 billion from the end of same period of the previous year as a result of the decline of net asset value and the decrease in public bonds by ¥36.3 billion from the end of same period of the previous year. Under sales policy focusing on new money and customers, net cash inflow of investment trusts increased and the number of new accounts of investment trusts and contracts of life insurance steadily increased.

• Ratio of investment products for individuals decreased by 0.5 percent point to 16.9%, as group total of deposit assets for individuals increased ¥168.1 billion from the end of same period of the previous year mainly due to the increase in deposit for individuals by ¥193.2 billion from the end of same period of the previous year.

Transaction of total balance of investment products for individuals <Group Total>	Transition of sales amount of investment trusts and insurance <The Bank of Yokohama, Ltd. and The Higashi-Nippon Bank, Limited Combined>	Transaction of the number of accounts of investment trusts and insurance <The Bank of Yokohama, Ltd. and The Higashi-Nippon Bank, Limited Combined>

Balance of deposit assets for individuals ＜Group Total＞

	(The Bank of Yokohama, Ltd. and The Higashi–Nippon Bank, Limited Combined＋Hamagin Tokai Tokyo Securities Co.,Ltd)										(Unit: Billions of Yen)

					As of September 30, 2015			As of September 30, 2016
						Yokohama	Higashi–Nippon		Yokohama	Higashi–Nippon	Increase/(Decrease)		Yokohama	Higashi–Nippon
						Yokohama	Higashi–Nippon		Yokohama	Higashi–Nippon	Rate	Amount	Yokohama	Higashi–Nippon
7			Investment trusts		610.2	571.3	38.9	568.1	528.9	39.1	(6.8%)	(42.1)	(42.4)	0.2
8			Insurance		1,030.0	960.9	69.1	1,084.6	1,008.0	76.6	5.3%	54.6	47.1	7.5
9			Foreign currency deposits		28.8	28.5	0.2	26.9	26.7	0.2	(6.5%)	(1.9)	(1.8)	0.0
10			Public bonds		162.4	151.1	11.2	126.1	114.1	12.0	(22.3%)	(36.3)	(37.0)	0.8
11		Total balance of investment products for individuals		A	1,831.6	1,712.0	119.5	1,805.8	1,677.8	128.0	(1.4%)	(25.8)	(34.2)	8.5
12		Individual deposits (deposits in yen)		B	10,210.7	9,028.5	1,182.1	10,403.9	9,207.6	1,196.2	1.8%	193.2	179.1	14.1
13	Total deposit assets for individuals			C=A=B	12,042.3	10,740.6	1,301.7	12,209.7	10,885.4	1,324.3	1.3%	167.4	144.8	22.6

14		Investment products for individuals at Hamagin Tokai Tokyo SecuritiesCo., Ltd.		D	319.7	319.7		320.4	320.4		0.2%	0.7	0.7
15	Total balance of investment products for individuals (Group total)			E=A+D	2,151.3	2,031.8	119.5	2,126.3	1,998.3	128.0	(1.1%)	(25.0)	(33.5)	8.5
16	Total deposit assets for individuals (Group total)			F=B+E	12,362.1	11,060.4	1,301.7	12,530.2	11,205.9	1,324.3	1.3%	168.1	145.5	22.6
17	The ratio of investment products for individuals			E÷F	17.4%	18.3%	9.1%	16.9%	17.8%	9.6%		(0.5%)	(0.5%)	0.5%

5. Status of Non–performing Loans

• Outstanding balance of non–performing loans (“NPL”) decreased by ¥1.7 billion from the end of the previous period to ¥216.3 billion, mainly due to the decrease in doubtful claims (in possible bankruptcy).

• In addition, outstanding balance of claims to normal borrowers (excluding claims in need of caution) increased. As a result, NPL ratio decreased by 0.1% from the end of the previous period to 1.7%, the lowest level after enforcement of the Financial Revitalization Law in 1998.

• The ratio of claims to normal borrowers to credit exposures increased by 0.8% from the end of the previous period to 89.2%.

Transition of NPL and NPL ratio ＜The Bank of Yokohama, Ltd. and The Higashi–Nippon Bank, Limited Combined＞	Transition of the ratio of claims to normal borrowers to credit exposures ＜The Bank of Yokohama, Ltd. and The Higashi–Nippon Bank, Limited Combined＞

Claims disclosed under the Financial Revitalization Law

	<The Bank of Yokohama, Ltd. and The Higashi–Nippon Bank, Limited Combined>										(Unit: Billions of Yen)

					As of March 31, 2016			As of September 30, 2016
						Yokohama	Higashi–Nippon		Yokohama	Higashi–Nippon	Increase/ (Decrease)	Yokohama	Higashi–Nippon
1		Unrecoverable or valueless claims (in legal or virtual bankruptcy)			59.4	55.0	4.4	58.2	53.9	4.2	(1.2)	(1.1)	(0.2)
2		Doubtful claims (in possible bankruptcy)			136.0	124.1	11.8	134.2	121.7	12.5	(1.8)	(2.4)	0.7
3		Claims in need of special caution			22.5	15.3	7.1	23.9	16.6	7.3	1.4	1.3	0.2
4	Sub–total (NPL)			[A]	218.0	194.5	23.5	216.3	192.2	24.1	(1.7)	(2.3)	0.6
5			Claims in need of caution(excluding claims in need of special caution)		1,140.6	971.0	169.6	1,083.0	918.9	164.0	(57.6)	(52.1)	(5.6)
6			Claims to normal borrowers(excluding claims in need of caution)	[B]	10,427.2	8,975.6	1,451.6	10,765.5	9,264.6	1,500.8	338.3	289.0	49.2
7		Normal claims		[C]	11,567.9	9,946.6	1,621.2	11,848.5	10,183.6	1,664.9	280.6	237.0	43.7
8	Total (Credit exposures)			[D=A+C]	11,786.0	10,141.2	1,644.8	12,064.9	10,375.8	1,689.1	278.9	234.6	44.3

9	NPL ratio (Percentage of NPL)			[A/D]	1.8%	1.9%	1.4%	1.7%	1.8%	1.4%	(0.1%)	(0.1%)	0.0%

10	The ratio of claims to normal borrowers to credit exposures			[B/D]	88.4%	88.5%	88.2%	89.2%	89.2%	88.8%	0.8%	0.7%	0.6%

Note: The Higashi–Nippon Bank, Limited does not apply partial direct written–off. The above figures are presented if The Higashi–Nippon Bank, Limited had applied the partial direct written–off.

6. Capital Adequacy Ratio

• Total capital ratio based on Basel III (international standard) of Concordia Financial Group, Ltd. Consolidated is 11.35%.

• Common Equity Tier 1 ratio is 11.10%, which maintained at high quality of capital structure.

	＜Concordia Financial Group, Ltd. Consolidated＞					(Reference) The Bank of Yokohama, Ltd.					(Reference) The Higashi–Nippon Bank, Limited
				(Unit: Billions of Yen)		Consolidated			(Unit: Billions of Yen)		Consolidated	(Unit: Billions of Yen)
	International Standard [Basel III］ The foundation internal ratings–based approach			As of September 30, 2016 (Preliminary)		International Standard [Basel III] The foundation internal ratings–based approach			As of September 30, 2016		Domestic Standard [Basel III] The standardized approach	As of September 30, 2016
11	Total capital ratio			11.35%	18	Total capital ratio			11.83%	25	Capital ratio	8.20%
12		Tier 1 capital ratio		11.10%	19		Tier 1 capital ratio		11.55%	26	Capital	119.5
13		Common Equity Tier 1 capital ratio		11.10%	20		Common Equity Tier 1 capital ratio		11.55%	27	Risk weighted assets	1,457.3
14	Total capital			1,001.8	21	Total capital			850.9
15		Tier 1		979.3	22		Tier 1		830.6
16			Common Equity Tier 1	979.3	23			Common Equity Tier 1	830.6
17	Risk Weighted assets			8,821.5	24	Risk Weighted assets			7,190.1

Note: As Concordia Financial Group, Ltd. was established on April 1, 2016, figures as of March 31, 2016 are not provided.

7. Forecasts for Fiscal Year 2016

Taking into consideration the impacts of negative interest rate for the first half of fiscal year 2016, Concordia Financial Group, Ltd. revised the Forecasts for fiscal year 2016 as follows:

＜Concordia Financial Group, Ltd. Consolidated＞

• Ordinary profit for the fiscal year ending March 31, 2017 is expected to amount to ¥93.5 billion and profit attributable to owners of parent is expected to amount to ¥123.5 billion, which are the same amount of Forecasts for fiscal year 2016 announced in May 2016. Profit attributable to owners of parent excluding gain on bargain purchase is expected to amount to ¥63.5 billion, which are the same amount of Forecasts for fiscal year 2016 announced in May 2016.

• Concordia Financial Group, Ltd. will pay an ordinary dividend of ¥13 per share as a stable dividend, an additional dividend of ¥1 per share as a commemorative dividend accompanying the establishment of Concordia Financial Group, Ltd., and a special dividend in the case where profit attributable to owners of parent excluding gain on bargain purchase exceeds ¥60.0 billion, based on the shareholders’ return policy.

＜The Bank of Yokohama, Ltd. and The Higashi–Nippon Bank, Limited Combined＞

• Forecasts of gross operating income announced in May 2016 for fiscal year 2016 was revised downward by ¥5.0 billion to ¥217.0 billion, taking into consideration the impacts of negative interest rates on the financial results for the second half of fiscal year 2016 including the impact of discontinuance in sales of some insurance products.

• Although The Bank of Yokohama, Ltd. and The Higashi–Nippon Bank, Limited will make growth investment ahead of schedule, expenses are expected to decrease ¥3.0 billion from Forecasts for fiscal year 2016 announced in May 2016 to ¥125.5 billion as a result of our continued effort to restrain expenses.

• As a result, core net business profit is expected to decrease by ¥2.0 billion from original Forecasts for fiscal year 2016 to ¥91.5 billion.

• Ordinary profit and net income are expected to increase from Forecasts for fiscal year 2016 announced in May 2016 as a result of reversal of credit costs.

	Forecast for Fiscal Year 2016 <Concordia Financial Group, Ltd. Consolidated＞						Dividends
	（Unit: Billions of Yen）		For the six months ended September 30, 2016 Results	For the year ending March 31, 2017 Forecasts	(Reference) Announcement in May 2016 Forecasts for FY2016			For the year ending March 31, 2017 Forecasts
1	Ordinary income		166.3	334.5	334.5	5	Ordinary dividend per share (full year)	¥13.00
2	Ordinary profit		47.4	93.5	93.5	6	Commemorative dividend per share (full year)	¥1.00
3	Profit attributable to owners of parent		92.8	123.5	123.5	7	Special dividend per share (full year)	TBD
4		(excluding gain on bargain purchase）	32.4	63.5	63.5		Note: Payment of special dividends will be announced based on our Shareholder Return Policy and our performance.

	Forecast for Fiscal Year 2016 ＜The Bank of Yokohama, Ltd. and The Higashi–Nippon Bank, Limited Combined＞									(Unit: Billions of Yen)			(Reference) <The Bank of Yokohama, Ltd. and The Higashi–Nippon Bank, Limited Combined>	(Unit: Billions of Yen)
				For the year ended March 31, 2016 Results			For the year ending March 31, 2017 Forecasts ①						Announcement in May 2016
				For the year ended March 31, 2016 Results			For the year ending March 31, 2017 Forecasts ①
					Yokohama	Higashi–Nippon		Yokohama	Higashi–Nippon	Increase/ (Decrease)	Yokohama	Higashi–Nippon	Forecasts for FY2016②	①–②
8	Gross operating income			233.9	201.6	32.2	217.0	184.5	32.5	(16.9)	(17.1)	0.3	222.0	(5.0)
9		Gross operating income from domestic operations		229.1	197.5	31.6	211.5	179.5	32.0	(17.6)	(18.0)	0.4
10			Of which, net interest income	179.9	150.7	29.1	168.3	139.6	28.7	(11.6)	(11.1)	(0.4)
11			Of which, net fees and commissions	43.6	41.6	2.0	36.6	34.2	2.4	(7.0)	(7.4)	0.4
12		Gross operating income from international operations		4.8	4.1	0.6	5.5	5.0	0.5	0.7	0.9	(0.1)
13	Expenses (–)			122.3	99.4	22.9	125.5	101.5	24.0	3.2	2.1	1.1	128.5	(3.0)
14	Core net business profit			111.5	102.2	9.3	91.5	83.0	8.5	(20.0)	(19.2)	(0.8)	93.5	(2.0)
15	Ordinary profit			121.7	108.4	13.3	91.5	85.5	6.0	(30.2)	(22.9)	(7.3)	89.5	2.0
16	Net income			79.7	72.8	6.9	63.5	59.5	4.0	(16.2)	(13.3)	(2.9)	61.5	2.0

17	Credit costs (–)			(3.8)	(3.9)	0.0	(1.5)	(3.0)	1.5	2.3	0.9	1.5	1.8	(3.3)

	（Reference 1) Balance of Use and Source of Funds (Domestic operations）							(Unit: Billions of Yen)
	＜average balance＞		For the year ended March 31, 2016 Results			For the year ending March 31, 2017 Forecasts ①
			For the year ended March 31, 2016 Results			For the year ending March 31, 2017 Forecasts ①
				Yokohama	Higashi–Nippon		Yokohama	Higashi–Nippon	Increase/ (Decrease)	Yokohama	Higashi–Nippon
18	Interest–earning assets		14,280.2	12,265.2	2,014.9	14,670.0	12,600.0	2,070.0	389.8	334.8	55.1
19		Loans and bills discounted	11,284.9	9,734.1	1,550.7	11,620.0	10,000.0	1,620.0	335.1	265.9	69.3
20		Securities	2,594.4	2,238.3	356.0	2,690.0	2,330.0	360.0	95.6	91.7	4.0
21	Interest–bearing liabilities		15,475.1	13,546.5	1,928.5	16,450.0	14,440.0	2,010.0	974.9	893.5	81.5
22		Deposits	13,657.4	11,854.3	1,803.1	14,090.0	12,310.0	1,780.0	432.6	455.7	(23.1)

	（Reference 2) Interest Margins (Domestic operations）									(Unit: %)
				For the year ended March 31, 2016 Results			For the year ending March 31, 2017 Forecasts ①
				For the year ended March 31, 2016 Results			For the year ending March 31, 2017 Forecasts ①
					Yokohama	Higashi–Nippon		Yokohama	Higashi–Nippon	Increase/ (Decrease)	Yokohama	Higashi–Nippon
23	Yield on interest–earning assets		A	1.30	1.27	1.53	1.17	1.13	1.44	(0.13)	(0.14)	(0.09)
24		Loans and bills discounted	B	1.35	1.28	1.77	1.23	1.16	1.63	(0.12)	(0.12)	(0.14)
25		Securities		1.14	1.18	0.90	0.95	0.96	0.93	(0.19)	(0.22)	0.03
26	Yield on Interest–bearing liabilities			0.04	0.03	0.08	0.02	0.02	0.06	(0.02)	(0.01)	(0.02)
27		Deposits	C	0.03	0.03	0.06	0.02	0.02	0.04	(0.01)	(0.01)	(0.02)
28	Expenses ratio			0.85	0.79	1.23	0.83	0.77	1.23	(0.02)	(0.02)	0.00
29	Total funding cost		D	0.81	0.74	1.26	0.76	0.70	1.22	(0.05)	(0.04)	(0.04)
30	Yield spread		B–C	1.32	1.25	1.71	1.21	1.14	1.59	(0.11)	(0.11)	(0.12)
31	Interest margin between loans and deposits			0.46	0.46	0.48	0.38	0.37	0.36	(0.08)	(0.09)	(0.12)
32	Net interest margin		A–D	0.49	0.53	0.26	0.41	0.43	0.22	(0.08)	(0.10)	(0.04)

II. SUMMARY OF INTERIM FINANCIAL RESULTS

1. Profit and Loss

(1) Concordia Financial Group, Ltd. Consolidated

				For the six months ended		(Unit: Millions of Yen)

				September 30, 2016(A)	(A)-(B)	September 30, 2015(B)

1	Consolidated gross operating income			115,603
2		Net interest income		84,300
3		Net fees and commissions		24,328
4		Net trading income		1,136
5		Net other ordinary income		5,838
6	General and administrative expenses		(－)	67,331
7	Credit costs		(－)	(249)
8		Written-off of loans	(－)	1,738
9		Provision of allowance for specific loan losses	(－)	－
10		Provision of allowance for general loan losses	(－)	－
11		Reversal of allowance for loan losses		469
12		Recoveries of written-off claims		1,621
13		Other	(－)	102
14	Gain or loss on stocks and other securities			248
15	Other			(1,331)

16	Ordinary profit			47,439
17	Extraordinary income (losses)			59,608
18		Of which, gain on bargain purchase		60,346
19	Profit before income taxes			107,048
20		Income taxes-current	(－)	12,321
21		Income taxes-deferred	(－)	1,469
22	Total income taxes		(－)	13,791
23	Profit			93,256
24	Profit attributable to non-controlling interests		(－)	450

25	Profit attributable to owners of parent			92,806

Notes :

Consolidated gross operating income = (Interest income－Interest expenses) + (Fees and commissions - Fees and commissions payments)
+ (Trading income - Trading expenses) + (Other ordinary income - Other ordinary expenses)

As Concordia Financial Group, Ltd. was established on April 1, 2016, figures for the six months ended September 30, 2015 are not provided.

	(Reference)	For the six months ended

		September 30, 2016(A)	(A)-(B)	September 30, 2015(B)
26	Consolidated net business profit	48,596

	Notes :	1.	Consolidated net business profit = Non-consolidated core net business profit of The Bank of Yokohama, Ltd. and The Higashi-Nippon Bank, Limited + Ordinary profit of other consolidated subsidiaries (excluding Credit costs) + “Ordinary profit of equity-method affiliates” * share of stockholders equity - internal trade (dividend, etc.)
		2.	As Concordia Financial Group, Ltd. was established on April 1, 2016, figures for the six months ended September 30, 2015 are not provided.

	(Number of Consolidated Companies)

		As of September 30, 2016(A)	(A)-(B)	As of September 30, 2015(B)
27	Number of consolidated subsidiaries	16
28	Number of companies accounted for by the equity method	1

Note : As Concordia Financial Group, Ltd. was established on April 1, 2016, figures for the six months ended September 30, 2015 are not provided.

(2) The Bank of Yokohama, Ltd. and The Higashi-Nippon Bank, Limited Combined

					For the six months ended		(Unit: Millions of Yen)
					September 30, 2016(A)		September 30, 2015(B)
						(A)-(B)


						[( 7.0%)]
1	Gross operating income				110,492	(8,439)	118,931
2	(Excluding gains (losses) on bonds)				125,267	(12,982)	138,249
3		Gross operating income from domestic operations			107,607	(8,856)	116,463
4		(Excluding gains (losses) on bonds)			123,444	(12,415)	135,859
5			Net interest income		85,988	(5,501)	91,489
6			Net fees and commissions		18,527	(4,941)	23,468
7			Net trading income		108	(17)	125
8			Net other ordinary income		2,983	1,603	1,380
9			(Of which, gains (losses) on bonds)		(15,836)	3,560	(19,396)
10		Gross operating income from international operations			2,884	417	2,467
11		(Excluding gains (losses) on bonds)			1,822	(567)	2,389
12			Net interest income		867	(458)	1,325
13			Net fees and commissions		183	(18)	201
14			Net trading income		3	(277)	280
15			Net other ordinary income		1,830	1,169	661
16			(Of which, gains (losses) on bonds)		1,062	984	78
						[1.6%]
17	Expenses			(－)	62,055	1,009	61,046
18		Personnel		(－)	28,784	(122)	28,906
19		Facilities		(－)	28,369	501	27,868
20		Taxes		(－)	4,901	630	4,271
21	(Reference) OHR (%) (17÷1)				56.1	4.8	51.3
						[( 16.3%)]
22	Core net business profit				48,437	(9,448)	57,885
23		(Excluding gains (losses) on bonds)			63,212	(13,991)	77,203
24	Provision of allowance for general loan losses			(－)	92	92	－
25	Net business profit				48,345	(9,540)	57,885
26		(Of which, gains (losses) on bonds)			(14,774)	4,544	(19,318)
27	Non-recurring gains (losses)				(416)	(10,855)	10,439
28		Disposal of bad debts		(－)	(757)	2,375	(3,132)
29			Written-off of loans	(－)	134	(467)	601
30			Provision of allowance for specific loan losses	(－)	689	689	－
31			Loss on sales of non-performing loans	(－)	0	(3)	3
32			Reversal of allowance for loan losses		649	(2,826)	3,475
33			Recoveries of written-off claims		1,023	499	524
34			Other	(－)	91	(170)	261
35		Gain or loss on stocks and other securities			860	(8,245)	9,105
36			Gain on sales of stocks and other securities		866	(8,258)	9,124
37			Loss on sales of stocks and other securities	(－)	6	6	－
38			Loss on devaluation of stocks and other securities	(－)	－	(19)	19
39		Other non-recurring gains (losses)			(2,034)	(236)	(1,798)
						[( 29.8%)]
40	Ordinary profit				47,929	(20,396)	68,325
41	Extraordinary income (losses)				(336)	(50)	(286)
42		Gain (loss) on disposal of non-current assets			(428)	(142)	(286)
43			Gain on disposal of non-current assets		121	121	－
44			Loss on disposal of non-current assets	(－)	550	264	286
45		Impairment loss		(－)	387	387	－
46		Reversal of subscription rights to shares			478	478	－
47	Income before income taxes				47,592	(20,446)	68,038
48		Income taxes-current		(－)	11,439	(6,436)	17,875
49		Income taxes-deferred		(－)	2,192	(1,651)	3,843
50	Total income taxes			(－)	13,632	(8,086)	21,718
						[( 26.6%)]
51	Net income				33,960	(12,360)	46,320

						(－)
52	Credit costs (24+28)			(－)	(665)	2,467	(3,132)

(3) The Bank of Yokohama, Ltd. Non-consolidated

					For the six months ended		(Unit: Millions of Yen)
					September 30, 2016(A)		September 30, 2015(B)
						(A)-(B)


						[( 8.5%)]
1	Gross operating income				93,931	(8,831)	102,762
2	(Excluding gains (losses) on bonds)				109,284	(13,046)	122,330
3		Gross operating income from domestic operations			91,334	(9,253)	100,587
4		(Excluding gains (losses) on bonds)			107,749	(12,485)	120,234
5			Net interest income		71,334	(5,463)	76,797
6			Net fees and commissions		17,472	(5,062)	22,534
7			Net trading income		108	(17)	125
8			Net other ordinary income		2,418	1,288	1,130
9			(Of which, gains (losses) on bonds)		(16,415)	3,231	(19,646)
10		Gross operating income from international operations			2,597	423	2,174
11		(Excluding gains (losses) on bonds)			1,535	(561)	2,096
12			Net interest income		672	(443)	1,115
13			Net fees and commissions		155	(22)	177
14			Net trading income		3	(277)	280
15			Net other ordinary income		1,765	1,164	601
16			(Of which, gains (losses) on bonds)		1,062	984	78
						[1.3%]
17	Expenses			(－)	50,242	678	49,564
18		Personnel		(－)	22,447	(88)	22,535
19		Facilities		(－)	23,702	221	23,481
20		Taxes		(－)	4,092	545	3,547
21	(Reference) OHR (%) (17÷1)				53.4	5.2	48.2
						[( 17.8%)]
22	Core net business profit				43,688	(9,509)	53,197
23		(Excluding gains (losses) on bonds)			59,042	(13,723)	72,765
24	Provision of allowance for general loan losses			(－)	－	－	－
25	Net business profit				43,688	(9,509)	53,197
26		(Of which, gains (losses) on bonds)			(15,353)	4,215	(19,568)
27	Non-recurring gains (losses)				600	(5,623)	6,223
28		Disposal of bad debts		(－)	(1,651)	1,127	(2,778)
29			Written-off of loans	(－)	134	(467)	601
30			Provision of allowance for specific loan losses	(－)	－	－	－
31			Loss on sales of non-performing loans	(－)	0	(3)	3
32			Reversal of allowance for loan losses		649	(2,330)	2,979
33			Recoveries of written-off claims		1,015	492	523
34			Other	(－)	(120)	(240)	120
35		Gain or loss on stocks and other securities			192	(4,345)	4,537
36			Gain on sales of stocks and other securities		198	(4,358)	4,556
37			Loss on sales of stocks and other securities	(－)	6	6	－
38			Loss on devaluation of stocks and other securities	(－)	－	(19)	19
39		Other non-recurring gains (losses)			(1,243)	(151)	(1,092)
						[( 25.4%)]
40	Ordinary profit				44,289	(15,131)	59,420
41	Extraordinary income (losses)				(468)	(229)	(239)
42		Gain (loss) on disposal of non-current assets			(348)	(109)	(239)
43			Gain on disposal of non-current assets		121	121	－
44			Loss on disposal of non-current assets	(－)	470	231	239
45		Impairment loss		(－)	387	387	－
46		Reversal of subscription rights to shares			267	267	－
47	Income before income taxes				43,820	(15,360)	59,180
48		Income taxes-current		(－)	10,245	(5,074)	15,319
49		Income taxes-deferred		(－)	2,252	(1,064)	3,316
50	Total income taxes			(－)	12,497	(6,138)	18,635
						[( 22.7%)]
51	Net income				31,322	(9,222)	40,544

						(－)
52	Credit costs (24+28)			(－)	(1,651)	1,127	(2,778)

(4) The Higashi-Nippon Bank, Limited Non-consolidated

					For the six months ended		(Unit: Millions of Yen)
					September 30, 2016(A)		September 30, 2015(B)
						(A)-(B)


						[2.4%]
1	Gross operating income				16,561	392	16,169
2	(Excluding gains (losses) on bonds)				15,982	64	15,918
3		Gross operating income from domestic operations			16,273	398	15,875
4		(Excluding gains (losses) on bonds)			15,695	70	15,625
5			Net interest income		14,653	(39)	14,692
6			Net fees and commissions		1,054	121	933
7			Net trading income		-	-	-
8			Net other ordinary income		565	315	250
9			(Of which, gains (losses) on bonds)		578	328	250
10		Gross operating income from international operations			287	(6)	293
11		(Excluding gains (losses) on bonds)			287	(6)	293
12			Net interest income		194	(15)	209
13			Net fees and commissions		27	4	23
14			Net trading income		-	-	-
15			Net other ordinary income		65	5	60
16			(Of which, gains (losses) on bonds)		-	-	-
						[2.8%]
17	Expenses			(–)	11,812	331	11,481
18		Personnel		(–)	6,336	(34)	6,370
19		Facilities		(–)	4,666	279	4,387
20		Taxes		(–)	808	85	723
21	(Reference) OHR (%) (17¸1)				71.3	0.3	71.0
						[1.3%]
22	Core net business profit				4,749	62	4,687
23		(Excluding gains (losses) on bonds)			4,170	(267)	4,437
24	Provision of allowance for general loan losses			(–)	92	92	-
25	Net business profit				4,656	(31)	4,687
26		(Of which, gains (losses) on bonds)			578	328	250
27	Non-recurring gains (losses)				(1,016)	(5,232)	4,216
28		Disposal of bad debts		(–)	893	1,247	(354)
29			Written-off of loans	(–)	0	0	0
30			Provision of allowance for specific loan losses	(–)	689	689	-
31			Loss on sales of non-performing loans	(–)	-	-	-
32			Reversal of allowance for loan losses		-	(495)	495
33			Recoveries of written-off claims		7	7	0
34			Other	(–)	211	70	141
35		Gain or loss on stocks and other securities			667	(3,901)	4,568
36			Gain on sales of stocks and other securities		667	(3,901)	4,568
37			Loss on sales of stocks and other securities	(–)	-	-	-
38			Loss on devaluation of stocks and other securities	(–)	-	-	-
39		Other non-recurring gains (losses)			(790)	(84)	(706)
						[(59.1%)]
40	Ordinary profit				3,640	(5,264)	8,904
41	Extraordinary income (losses)				132	178	(46)
42		Gain (loss) on disposal of non-current assets			(79)	(33)	(46)
43			Gain on disposal of non-current assets		-	-	-
44			Loss on disposal of non-current assets	(–)	79	33	46
45		Impairment loss		(–)	-	-	-
46		Reversal of subscription rights to shares			211	211	-
47	Income before income taxes				3,772	(5,086)	8,858
48		Income taxes-current		(–)	1,193	(1,362)	2,555
49		Income taxes-deferred		(–)	(59)	(585)	526
50	Total income taxes			(–)	1,134	(1,948)	3,082
						[(54.3%)]
51	Net income				2,637	(3,138)	5,775

						(–)
52	Credit costs (24+28)			(–)	985	1,339	(354)

2. Average Balance of Use and Source of Funds, Interest Margins

(1) All branches

① Average Balance of Use and Source of Funds

[The Bank of Yokohama, Ltd. And The Higashi-Nippon Bank, Limited Combined]

			For the six months ended			(Unit: Billions of Yen)

			September 30, 2016(A)	(A)-(B)	September 30, 2015(B)	(B)-(C)	September 30, 2014(C)
1	Interest-earning assets		15,027.5	231.1	14,796.4	549.5	14,246.9
2		Of which, Loans and bills discounted	11,696.9	315.3	11,381.6	364.9	11,016.7
3		Of which, Securities	2,938.6	21.4	2,917.2	289.2	2,628.0
4	Interest-bearing liabilities		16,646.6	840.2	15,806.4	1,499.4	14,307.0
5		Of which, Deposits	14,363.8	513.7	13,850.1	503.3	13,346.8

	[The Bank of Yokohama, Ltd. Non-consolidated]
			For the six months ended			(Unit: Billions of Yen)

			September 30, 2016(A)	(A)-(B)	September 30, 2015(B)	(B)-(C)	September 30, 2014(C)
6	Interest-earning assets		12,954.4	146.9	12,807.5	432.8	12,374.7
7		Of which, Loans and bills discounted	10,067.3	234.4	9,832.9	279.1	9,553.8
8		Of which, Securities	2,512.6	(0.5)	2,513.1	266.6	2,246.5
9	Interest-bearing liabilities		14,628.8	724.5	13,904.3	1,392.8	12,511.5
10		Of which, Deposits	12,573.2	519.2	12,054.0	445.3	11,608.7

	[The Higashi-Nippon Bank, Limited Non-consolidated]
			For the six months ended				(Unit: Billions of Yen)

			September 30, 2016(A)	(A)-(B)	September 30, 2015(B)	(B)-(C)	September 30, 2014(C)
11	Interest-earning assets		2,073.0	84.2	1,988.8	116.6	1,872.2
12		Of which, Loans and bills discounted	1,629.6	80.9	1,548.7	85.9	1,462.8
13		Of which, Securities	425.9	21.8	404.1	22.6	381.5
14	Interest-bearing liabilities		2,017.8	115.7	1,902.1	106.6	1,795.5
15		Of which, Deposits	1,790.5	(5.5)	1,796.0	57.9	1,738.1

	② Interest Margins

	[The Bank of Yokohama, Ltd. and The Higashi-Nippon Bank, Limited Combined]
				For the six months ended				(Unit: %)

				September 30, 2016(A)	(A)-(B)	September 30, 2015(B)	(B)-(C)	September 30, 2014(C)
16	Yield on interest-earning assets		(A)	1.22	(0.11)	1.33	(0.04)	1.37
17		Loans and bills discounted	(B)	1.25	(0.11)	1.36	(0.10)	1.46
18		Securities		1.03	(0.19)	1.22	0.10	1.12
19	Yield on interest-bearing liabilities			0.06	(0.01)	0.07	0.00	0.07
20		Deposits	(C)	0.03	(0.01)	0.04	0.00	0.04
21	Expenses ratio			0.82	(0.04)	0.86	(0.05)	0.91
22	Total funding cost		(D)	0.80	(0.04)	0.84	(0.10)	0.94
23	Yield spread		(B) – (C)	1.22	(0.10)	1.32	(0.10)	1.42
24	Interest margin between loans and deposits			0.39	(0.07)	0.46	(0.04)	0.50
25	Net interest margin		(A) – (D)	0.42	(0.07)	0.49	0.06	0.43

	[The Bank of Yokohama, Ltd. Non-consolidated]
				For the six months ended				(Unit: %)

				September 30, 2016(A)	(A)-(B)	September 30, 2015(B)	(B)-(C)	September 30, 2014(C)
26	Yield on interest-earning assets		(A)	1.18	(0.11)	1.29	(0.04)	1.33
27		Loans and bills discounted	(B)	1.19	(0.10)	1.29	(0.10)	1.39
28		Securities		1.04	(0.23)	1.27	0.11	1.16
29	Yield on interest-bearing liabilities			0.06	(0.01)	0.07	0.00	0.07
30		Deposits	(C)	0.03	(0.01)	0.04	0.01	0.03
31	Expenses ratio			0.76	(0.04)	0.80	(0.05)	0.85
32	Total funding cost		(D)	0.74	(0.04)	0.78	(0.09)	0.87
33	Yield spread		(B) – (C)	1.16	(0.09)	1.25	(0.11)	1.36
34	Interest margin between loans and deposits			0.39	(0.06)	0.45	(0.05)	0.50
35	Net interest margin		(A) – (D)	0.44	(0.07)	0.51	0.05	0.46

	[The Higashi-Nippon Bank, Limited Non-consolidated]
				For the six months ended				(Unit: %)

				September 30, 2016(A)	(A)-(B)	September 30, 2015(B)	(B)-(C)	September 30, 2014(C)
36	Yield on interest-earning assets		(A)	1.49	(0.09)	1.58	(0.09)	1.67
37		Loans and bills discounted	(B)	1.65	(0.13)	1.78	(0.12)	1.90
38		Securities		0.95	0.03	0.92	0.03	0.89
39	Yield on interest-bearing liabilities			0.06	(0.03)	0.09	0.00	0.09
40		Deposits	(C)	0.04	(0.02)	0.06	(0.01)	0.07
41	Expenses ratio			1.23	(0.02)	1.25	(0.06)	1.31
42	Total funding cost		(D)	1.23	(0.06)	1.29	(0.10)	1.39
43	Yield spread		(B) – (C)	1.61	(0.11)	1.72	(0.11)	1.83
44	Interest margin between loans and deposits			0.37	(0.10)	0.47	(0.05)	0.52
45	Net interest margin		(A) – (D)	0.26	(0.03)	0.29	0.01	0.28

2. Average Balance of Use and Source of Funds, Interest Margins

(2) Domestics

① Average Balance of Use and Source of Funds

[The Bank of Yokohama, Ltd. and The Higashi-Nippon Bank, Limited Combined]

				For the six months ended			(Unit: Billions of Yen)

				September 30, 2016(A)	(A)-(B)	September 30, 2015(B)	(B)-(C)	September 30, 2014(C)
1	Interest-earning assets			14,519.9	271.7	14,248.2	391.6	13,856.6
2		Of which, Loans and bills discounted		11,527.8	305.9	11,221.9	322.0	10,899.9
3		Of which, Securities		2,663.7	70.3	2,593.4	177.8	2,415.6
4	Interest-bearing liabilities			16,133.8	877.7	15,256.1	1,337.3	13,918.8
5		Of which, Deposits		14,078.5	457.9	13,620.6	447.3	13,173.3

	[The Bank of Yokohama, Ltd. Non-consolidated]
				For the six months ended			(Unit: Billions of Yen)

				September 30, 2016(A)	(A)-(B)	September 30, 2015(B)	(B)-(C)	September 30, 2014(C)
6	Interest-earning assets			12,450.5	186.9	12,263.6	275.1	11,988.5
7		Of which, Loans and bills discounted		9,919.2	229.5	9,689.7	242.3	9,447.4
8		Of which, Securities		2,291.7	43.3	2,248.4	172.8	2,075.6
9	Interest-bearing liabilities			14,119.7	761.5	13,358.2	1,230.7	12,127.5
10		Of which, Deposits		12,291.6	462.9	11,828.7	389.5	11,439.2

	[The Higashi-Nippon Bank, Limited Non-consolidated]
				For the six months ended			(Unit: Billions of Yen)

				September 30, 2016(A)	(A)-(B)	September 30, 2015(B)	(B)-(C)	September 30, 2014(C)
11	Interest-earning assets			2,069.4	84.9	1,984.5	116.5	1,868.0
12		Of which, Loans and bills discounted		1,608.5	76.3	1,532.2	79.7	1,452.5
13		Of which, Securities		371.9	26.9	345.0	5.0	340.0
14	Interest-bearing liabilities			2,014.0	116.2	1,897.8	106.5	1,791.3
15		Of which, Deposits		1,786.8	(5.0)	1,791.8	57.8	1,734.0

	② Interest Margins

	[The Bank of Yokohama, Ltd. and The Higashi-Nippon Bank, Limited Combined]
				For the six months ended			(Unit: %)

				September 30, 2016(A)	(A)-(B)	September 30, 2015(B)	(B)-(C)	September 30, 2014(C)
16	Yield on interest-earning assets		(Ａ)	1.20	(0.13)	1.33	(0.04)	1.37
17		Loans and bills discounted	(B)	1.25	(0.12)	1.37	(0.09)	1.46
18		Securities		1.01	(0.22)	1.23	0.11	1.12
19	Yield on interest-bearing liabilities			0.02	(0.02)	0.04	0.00	0.04
20		Deposits	(C)	0.02	(0.01)	0.03	(0.01)	0.04
21	Expenses ratio			0.82	(0.03)	0.85	(0.05)	0.90
22	Total funding cost		(D)	0.77	(0.05)	0.82	(0.09)	0.91
23	Yield spread		(B) – (C)	1.23	(0.11)	1.34	(0.08)	1.42
24	Interest margin between loans and deposits			0.41	(0.07)	0.48	(0.04)	0.52
25	Net interest margin		(A) – (D)	0.43	(0.08)	0.51	0.05	0.46

	[The Bank of Yokohama, Ltd. Non-consolidated]
				For the six months ended			(Unit: %)

				September 30, 2016(A)	(A)-(B)	September 30, 2015(B)	(B)-(C)	September 30, 2014(C)
26	Yield on interest-earning assets		(A)	1.16	(0.13)	1.29	(0.03)	1.32
27		Loans and bills discounted	(B)	1.18	(0.12)	1.30	(0.09)	1.39
28		Securities		1.02	(0.25)	1.27	0.11	1.16
29	Yield on interest-bearing liabilities			0.01	(0.03)	0.04	0.00	0.04
30		Deposits	(C)	0.01	(0.02)	0.03	0.00	0.03
31	Expenses ratio			0.76	(0.03)	0.79	(0.05)	0.84
32	Total funding cost		(D)	0.70	(0.05)	0.75	(0.09)	0.84
33	Yield spread		(B) – (C)	1.17	(0.10)	1.27	(0.09)	1.36
34	Interest margin between loans and deposits			0.40	(0.07)	0.47	(0.04)	0.51
35	Net interest margin		(A) – (D)	0.46	(0.08)	0.54	0.06	0.48

	[The Higashi-Nippon Bank, Limited Non-consolidated]
				For the six months ended				(Unit: %)

				September 30, 2016(A)	(A)-(B)	September 30, 2015(B)	(B)-(C)	September 30, 2014(C)
36	Yield on interest-earning assets		(A)	1.47	(0.09)	1.56	(0.09)	1.65
37		Loans and bills discounted	(B)	1.66	(0.13)	1.79	(0.12)	1.91
38		Securities		1.01	0.03	0.98	0.08	0.90
39	Yield on interest-bearing liabilities			0.06	(0.02)	0.08	(0.01)	0.09
40		Deposits	(C)	0.04	(0.02)	0.06	(0.01)	0.07
41	Expenses ratio			1.22	(0.02)	1.24	(0.05)	1.29
42	Total funding cost		(D)	1.22	(0.06)	1.28	(0.10)	1.38
43	Yield spread		(B) – (C)	1.62	(0.11)	1.73	(0.11)	1.84
44	Interest margin between loans and deposits			0.39	(0.10)	0.49	(0.05)	0.54
45	Net interest margin		(A) – (D)	0.25	(0.03)	0.28	0.01	0.27

3. Fees and Commissions (Domestics)

[The Bank of Yokohama, Ltd. and The Higashi-Nippon Bank, Limited Combined]

				For the six months ended		(Unit: Millions of Yen)

				September 30, 2016(A)	(A)-(B)	September 30, 2015(B)	(B)-(C)	September 30, 2014(C)
1	Fees and commissions			25,224	(4,867)	30,091	1,666	28,425
2		Deposits and Loans		11,650	108	11,542	884	10,658
3			ATM	2,666	(22)	2,688	6	2,682
4			Account transfer	2,363	(7)	2,370	6	2,364
5			Syndicated Loan	1,936	39	1,897	408	1,489
6		Remittance		5,121	(1)	5,122	(88)	5,210
7		Securities		4,851	(2,303)	7,154	(382)	7,536
8			Investment trusts	3,923	(2,203)	6,126	(702)	6,828
9		Agency business		447	(77)	524	33	491
10		Guarantee business		256	(34)	290	(24)	314
11		Others		2,896	(2,561)	5,457	1,244	4,213
12			Insurance	2,106	(2,815)	4,921	1,185	3,736
13	Fees and commissions payments			6,696	73	6,623	(7)	6,630
14	Fees and commissions - net			18,527	(4,941)	23,468	1,674	21,794

	[The Bank of Yokohama, Ltd. Non-consolidated]
				For the six months ended		(Unit: Millions of Yen)

				September 30, 2016(A)	(A)-(B)	September 30, 2015(B)	(B)-(C)	September 30, 2014(C)
15	Fees and commissions			23,185	(5,021)	28,206	1,390	26,816
16		Deposits and Loans		10,430	(106)	10,536	651	9,885
17			ATM	2,528	(20)	2,548	5	2,543
18			Account transfer	2,269	(7)	2,276	11	2,265
19			Syndicated Loan	1,904	41	1,863	385	1,478
20		Remittance		4,796	5	4,791	(80)	4,871
21		Securities		4,600	(2,263)	6,863	(436)	7,299
22			Investment trusts	3,681	(2,166)	5,847	(756)	6,603
23		Agency business		324	(71)	395	29	366
24		Guarantee business		252	(33)	285	(26)	311
25		Others		2,781	(2,551)	5,332	1,251	4,081
26			Insurance	1,999	(2,806)	4,805	1,194	3,611
27	Fees and commissions payments			5,712	41	5,671	(69)	5,740
28	Fees and commissions - net			17,472	(5,062)	22,534	1,458	21,076

	[The Higashi-Nippon Bank, Limited Non-consolidated]
				For the six months ended		(Unit: Millions of Yen)

				September 30, 2016(A)	(A)-(B)	September 30, 2015(B)	(B)-(C)	September 30, 2014(C)
29	Fees and commissions			2,039	154	1,885	277	1,608
30		Deposits and Loans		1,220	215	1,005	232	773
31			ATM	138	(2)	140	2	138
32			Account transfer	93	(1)	94	(5)	99
33			Syndicated Loan	31	(2)	33	23	10
34		Remittance		325	(6)	331	(7)	338
35		Securities		251	(39)	290	53	237
36			Investment trusts	242	(36)	278	53	225
37		Agency business		123	(5)	128	4	124
38		Guarantee business		3	(1)	4	2	2
39		Others		115	(9)	124	(8)	132
40			Insurance	106	(10)	116	(8)	124
41	Fees and commissions payments			984	33	951	61	890
42	Fees and commissions - net			1,054	121	933	216	717

４. Gains or Losses on Investment Securities

(1) Gains or Losses on Bonds

[Concordia Financial Group, Ltd. Consolidated]

				For the six months ended			(Unit: Millions of Yen)

				September 30, 2016(A)	(A)-(B)	September 30, 2015(B)	(B)-(C)	September 30, 2014(C)
1	Gains (losses) on bonds			(15,545)
2		Gain on sales		3,302
3		Gain on redemption		－
4		Loss on sales	(－)	18,231
5		Loss on redemption	(－)	613
6		Loss on devaluation	(－)	3
		Note : As Concordia Financial Group, Ltd. was established on April 1, 2016, figures before the six months ended September 30, 2015 are not provided.

	[The Bank of Yokohama, Ltd. and The Higashi-Nippon Bank, Limited Combined]
				For the six months ended			(Unit: Millions of Yen)

				September 30, 2016(A)	(A)-(B)	September 30, 2015(B)	(B)-(C)	September 30, 2014(C)
7	Gains (losses) on bonds			(14,774)	4,544	(19,318)	(13,449)	(5,869)
8		Gain on sales		3,767	1,746	2,021	766	1,255
9		Gain on redemption		－	－	－	－	－
10		Loss on sales	(－)	17,928	(2,347)	20,275	13,977	6,298
11		Loss on redemption	(－)	610	(390)	1,000	214	786
12		Loss on devaluation	(－)	3	(60)	63	23	40

	[The Bank of Yokohama, Ltd. Non-consolidated]
				For the six months ended			(Unit: Millions of Yen)

				September 30, 2016(A)	(A)-(B)	September 30, 2015(B)	(B)-(C)	September 30, 2014(C)
13	Gains (losses) on bonds			(15,353)	4,215	(19,568)	(13,686)	(5,882)
14		Gain on sales		3,189	1,418	1,771	537	1,234
15		Gain on redemption		－	－	－	－	－
16		Loss on sales	(－)	17,928	(2,347)	20,275	13,977	6,298
17		Loss on redemption	(－)	610	(390)	1,000	214	786
18		Loss on devaluation	(－)	3	(60)	63	32	31

	[The Higashi-Nippon Bank, Limited Non-consolidated]
				For the six months ended			(Unit: Millions of Yen)

				September 30, 2016(A)	(A)-(B)	September 30, 2015(B)	(B)-(C)	September 30, 2014(C)
19	Gains (losses) on bonds			578	328	250	237	13
20		Gain on sales		578	328	250	229	21
21		Gain on redemption		－	－	－	－	－
22		Loss on sales	(－)	－	－	－	－	－
23		Loss on redemption	(－)	－	－	－	－	－
24		Loss on devaluation	(－)	－	－	－	(8)	8

	(Reference) Gains (losses) on bonds derivatives
	[The Bank of Yokohama, Ltd. and The Higashi-Nippon Bank, Limited Combined]
				For the six months ended			(Unit: Millions of Yen)

				September 30, 2016(A)	(A)-(B)	September 30, 2015(B)	(B)-(C)	September 30, 2014(C)
25	Gains (losses) on bonds derivatives			16,696	(2,286)	18,982	12,881	6,101
26	Gains (losses) on bonds + Gains (losses) on bonds derivatives			1,922	2,257	(335)	(567)	232

	(2) Gains or Losses on stocks and other securities
	[Concordia Financial Group, Ltd. Consolidated]
				For the six months ended			(Unit: Millions of Yen)

				September 30, 2016(A)	(A)-(B)	September 30, 2015(B)	(B)-(C)	September 30, 2014(C)
27	Gains (losses) on stocks and other securities			248
28		Gain on sales		307
29		Loss on sales	(－)	59
30		Loss on devaluation	(－)	－
		Note : As Concordia Financial Group, Ltd. was established on April 1, 2016, figures before the six months ended September 30, 2015 are not provided.

	[The Bank of Yokohama, Ltd. and The Higashi-Nippon Bank, Limited Combined]
				For the six months ended			(Unit: Millions of Yen)

				September 30, 2016(A)	(A)-(B)	September 30, 2015(B)	(B)-(C)	September 30, 2014(C)
31	Gains (losses) on stocks and other securities			860	(8,245)	9,105	7,065	2,040
32		Gain on sales		866	(8,258)	9,124	7,063	2,061
33		Loss on sales	(－)	6	6	－	(12)	12
34		Loss on devaluation	(－)	－	(19)	19	11	8

	[The Bank of Yokohama, Ltd. Non-consolidated]
				For the six months ended			(Unit: Millions of Yen)

				September 30, 2016(A)	(A)-(B)	September 30, 2015(B)	(B)-(C)	September 30, 2014(C)
35	Gains (losses) on stocks and other securities			192	(4,345)	4,537	4,512	25
36		Gain on sales		198	(4,358)	4,556	4,510	46
37		Loss on sales	(－)	6	6	－	(12)	12
38		Loss on devaluation	(－)	－	(19)	19	11	8

	[The Higashi-Nippon Bank, Limited Non-consolidated]
				For the six months ended			(Unit: Millions of Yen)

				September 30, 2016(A)	(A)-(B)	September 30, 2015(B)	(B)-(C)	September 30, 2014(C)
39	Gains (losses) on stocks and other securities			667	(3,901)	4,568	2,554	2,014
40		Gain on sales		667	(3,901)	4,568	2,554	2,014
41		Loss on sales	(－)	－	－	－	－	－
42		Loss on devaluation	(－)	－	－	－	－	－

	5. Net Unrealized Gains (Losses) on Securities
	(1) Concordia Financial Group, Ltd. Consolidated											(Unit: Millions of Yen)
						As of September 30, 2016					As of March 31, 2016

						Book Value	Net(A)		Unrealized	Unrealized	Book Value	Net(B)	Unrealized	Unrealized
								(A)-(B)	gains	losses			gains	losses
1		Held-to-maturity				200,410	10,780		10,780	－
2		Available-for-sale				2,591,682	93,629		118,923	25,293
3			Equity securities			200,603	88,523		91,089	2,566
4			Debt securities			1,498,880	10,329		10,835	506
5			Other securities			892,198	(5,222)		16,997	22,220
6	Total					2,792,092	104,409		129,703	25,293
7			Equity securities			200,603	88,523		91,089	2,566
8			Debt securities			1,699,291	21,109		21,616	506
9			Other securities			892,198	(5,222)		16,997	22,220
	Notes:			1.	“Available-for-sale securities” are marked to market; the difference between book values on the consolidated balance sheets and the acquisition cost is posted as “Net”.
	2.				In addition to “Securities” on the consolidated balance sheets, the tables include beneficiary rights to the trust in “Monetary claims bought”.
	3.				As Concordia Financial Group, Ltd. was established on April 1, 2016, figures as of March 31, 2016 are not provided.

	(2) The Bank of Yokohama, Ltd. and The Higashi-Nippon Bank, Limited Combined												(Unit: Millions of Yen)
						As of September 30, 2016					As of March 31, 2016

						Book Value	Net(A)		Unrealized	Unrealized	Book Value	Net(B)	Unrealized	Unrealized
								(A)-(B)	gains	losses			gains	losses
10		Held-to-maturity				199,710	10,770	(499)	10,770	－	199,715	11,269	11,269	－
11		Available-for-sale				2,583,891	94,146	(27,754)	122,592	28,446	2,672,151	121,900	142,393	20,492
12			Equity securities			192,814	88,011	(14,269)	90,195	2,184	208,094	102,280	104,273	1,993
13			Debt securities			1,498,879	11,840	(30)	12,554	713	1,582,482	11,870	12,960	1,090
14			Other securities			892,198	(5,705)	(13,455)	19,842	25,548	881,574	7,750	25,158	17,408
15	Total					2,783,602	104,916	(28,253)	133,362	28,446	2,871,867	133,169	153,662	20,492
16			Equity securities			192,814	88,011	(14,269)	90,195	2,184	208,094	102,280	104,273	1,993
17			Debt securities			1,698,589	22,610	(529)	23,324	713	1,782,198	23,139	24,229	1,090
18			Other securities			892,198	(5,705)	(13,455)	19,842	25,548	881,574	7,750	25,158	17,408
	Notes:			1.	“Available-for-sale securities” are marked to market; the difference between book values on the non-consolidated balance sheets and the acquisition cost is posted as “Net”.
	2.				In addition to “Securities” on the non-consolidated balance sheets, the tables include beneficiary rights to the trust in “Monetary claims bought”.

	(3) The Bank of Yokohama, Ltd. Non-consolidated											(Unit: Millions of Yen)
						As of September 30, 2016					As of March 31, 2016

						Book Value	Net(A)		Unrealized	Unrealized	Book Value	Net(B)	Unrealized	Unrealized
								(A)-(B)	gains	losses			gains	losses
19		Held-to-maturity				199,710	10,770	(499)	10,770	－	199,715	11,269	11,269	－
20		Available-for-sale				2,168,953	91,468	(24,897)	113,964	22,495	2,227,939	116,365	132,072	15,707
21			Equity securities			181,680	85,500	(14,119)	87,364	1,863	196,823	99,619	101,373	1,753
22			Debt securities			1,218,455	9,484	(414)	9,969	485	1,277,531	9,898	10,420	521
23			Other securities			768,818	(3,515)	(10,361)	16,630	20,146	753,584	6,846	20,279	13,432
24	Total					2,368,664	102,239	(25,395)	124,734	22,495	2,427,655	127,634	143,341	15,707
25			Equity securities			181,680	85,500	(14,119)	87,364	1,863	196,823	99,619	101,373	1,753
26			Debt securities			1,418,166	20,254	(913)	20,739	485	1,477,247	21,167	21,689	521
27			Other securities			768,818	(3,515)	(10,361)	16,630	20,146	753,584	6,846	20,279	13,432
	Notes:			1.	“Available-for-sale securities” are marked to market; the difference between book values on the non-consolidated balance sheets and the acquisition cost is posted as “Net”.
	2.

Concordia Financial Group, Ltd. 6-K