Investor Presentaiton

14 8. Dividends Dividends for the year ended March 31, 2014 and 2013 are summarized as follows: 2014 2013 November 14, 2013 Resolution by the board of directors June 25, 2013 Resolution by the general shareholders' meeting November 12, 2012 June 26, 2012 Resolution by the board of directors Total dividends Dividend per share ¥511 million \ 3.0 ¥511 million ¥ 3.0 ¥511 million ¥ 3.0 ¥511 million ¥ 3.0 Base date September 30, 2013 March 31, 2013 September 30, 2012 March 31, 2012 Effective date December 10, 2013 June 26, 2013 December 10, 2012 June 27, 2012 November 14, 2013 Resolution by the board of directors 2014 June 25, 2013 Resolution by the general shareholders' meeting Total dividends Dividend per share $ 4,965 thousand $ $ 4,965 thousand 0.03 $ 0.03 Base date September 30, 2013 Effective date December 10, 2013 March 31, 2013 June 26, 2013 Resolution by the general shareholders' meeting 12. Shareholders' Equity In accordance with the Banking Law of Japan, the Bank has provided a legal reserve by appropriation of retained earnings, which is included in retained earnings. The Banking Law of Japan provides that an amount equivalent to at least 20% of the amount to be disbursed as distributions of earnings be appropriated to the legal reserve until the total of such reserve and additional paid-in capital equals 100% of the common stock. The Corporation Law of Japan provides that neither additional paid-in capital nor the legal reserve had been available for dividends, but both might be used to reduce or eliminate a deficit by resolution of the shareholders or may be transferred to common stock by resolution of the Board of Directors. The Corporation Law of Japan also provides that if the total amount of additional paid-in capital and the legal reserve exceeds 100% of the amount of common stock, the excess may be distributed to the shareholders either as a return of capital or as dividends subject to the approval of the shareholders. There were no changes in the common stock and additional paid-in capital accounts for the two years ended March 31, 2014 and 2013. Maturities of lease receivables at March 31, 2014 are as follows: Years ending March 31 (Millions of yen) 2015 ¥ 3,312 2016 2017 2,643 1,957 2018 1,355 716 517 2019 2020 and thereafter (Thousands of U.S.dollars) $ 32,180 25,680 19,014 13,165 6,956 5,023 Maturities of lease receivables at March 31, 2013 are as follows: Years ending March 31 2014 2015 2016 2017 2018 2019 and thereafter (Millions of yen) ¥ 3,344 2,550 1,877 1,191 612 350 13.Loss on Impairment The Bank reviewed its long-lived assets by grouping into the units consisting of operating branches, idle assets, jointly used assets including head office, administrative centers, company housing and dormitories and each consolidated subsidiary for impairment and recognized loss on impairment of land in the amount of ¥124 million ($1,204 thousand) and ¥36 million for the year ended March 31, 2014 and 2013, respectively. The recoverable amount used for measurement of loss on impairment was net selling price and computed mainly based on the real estate appraisal value. 16. Income Taxes The major components of deferred tax assets and liabilities at March 31, 2014 and 2013 are summarized as follows: Deferred tax assets: 2014 2013 (Millions of yen) 2014 (Thousands of U.S.dollars) June 24, 2014 Resolution by the general shareholders' meeting Total dividends ¥511 million $ 4,965 thousand Dividend per share ¥ 3.0 $ 0.03 Base date March 31, 2014 March 31, 2014 Effective date June 25, 2014 June 25, 2014 Dividend of which base date belonged to the year ended March 31, 2014 and 2013 is summarized as follows: 2014 2013 June 25, 2013 Resolution by the general shareholders' meeting 14. Other Comprehensive Income Reclassification adjustments and tax effects allocated to other compre- hensive income for the year ended March 31, 2014 and 2013 are summarized as follows: 2014 2013 2014 Reserve for possible loan losses Reserve for employees' retirement benefits Liability for retirement benefits Devaluation on securities Depreciation and amortization Tax loss carryforwards Other ¥1,283 ¥2,096 401 $ 12,465 239 2,322 274 703 2,662 912 977 8,861 467 457 4,537 3,202 3,383 31,111 Subtotal:deferred tax assets 6,380 8,021 61,989 Valuation allowance (2,051) (2,093) (19,928) Total:deferred tax assets Unrealized holding gains on securities. Other 4,329 5,927 42,061 9,739 9,085 94,626 6 7 58 (Millions of yen) (Thousands of U.S.dollars) ¥511 million ¥ 3.0 March 31, 2013 June 26, 2013 Unrealized holding gain on securities: Amount arising during the year ¥ Reclassification adjustments Amount before tax effect Total:deferred tax liabilities Net deferred tax assets (liabilities) 9,745 9,092 94,685 \(5,416) ¥\(3,164) $ (52,623) 1,766 4,824 ¥ 14,261 (3,057) 253 14,515 Tax effect (565) (4,854) Unrealized holding gain on securities 1,201 9,660 $ 46,871 (29,702) 17,158 (5,489) 11,669 Note: Net deferred tax assets (liabilities) as of March 31, 2014 and 2013 were included in the following accounts in the consolidated balance sheets. 2014 2013 Deferred loss on hedging instruments: 2014 2013 2014 9. Cash Flows Cash and cash equivalents stated in the consolidated statement of cash flows consisted of the following: 11. Assets Pledged Pledged assets and liabilities related to pledged assets as of March 31, 2014 and 2013 were summarized as follows: Tax effect Deferred loss on hedging instruments Amount arising during the year 15 (2,458) 145 Deferred tax assets Reclassification adjustments 1,118 1,033 10,862 Deferred tax liabilities 2014 (Millions of yen) (Thousands of U.S.dollars) \ 418 (5,834) ¥ 481 (3,646) $ 4,061 (56,684) Amount before tax effect 1,134 (1,424) 11,018 (396) 498 (3,847) 2014 2013 2014 737 (926) 7,160 For the fiscal year ended March 31, 2014, the reconciliation of the statutory tax rate of the Bank to the effective income tax rate was as follows: Total other comprehensive income \ 1,939 ¥ 8,734 $ 18,839 Cash and due from banks Deposits with banks other than ¥37,502 (Millions of yen) ¥87,777 (Thousands of U.S.dollars) $ (Millions of yen) (Thousands of U.S.dollars) 2014 Pledged assets: 364,384 Securities ¥185,459 ¥155,315 $ 1,801,972 Statutory tax rate Valuation allowance 2013 38.0% (1.1%) the Bank of Japan Cash and cash equivalents (986) ¥36,515 (11,001) ¥76,774 $ (9,585) 354,798 Liabilities related to the above pledged assets: Non-taxable expenses 0.4% 15. Leases Non-taxable income Deposits ¥ 9,476 \ 9,288 $ 92,071 $ 206,031 Investments in leased assets at March 31, 2014 and 2013 are summarized as follows: 2014 2013 Per capita inhabitants' tax rate Others Effective tax rate (1.4%) 0.4% (0.9%) 35.4% 10. Accumulated Depreciation Accumulated depreciation totaled ¥26,340 million ($255,926 thousand) and ¥26,190 million at March 31, 2014 and 2013, respectively. Payables under securities lending transactions 21,204 ¥ 15,366 Borrowed money \ 46,610 ¥22,640 $ 452,876 In addition, securities totaling ¥44,583 million ($433,181 thousand) and ¥44,401 million were pledged as collateral for settlement of exchange and futures transactions at March 31, 2014 and 2013, respectively. Initial margins of futures markets included in other assets as of March 31, 2014 were ¥144 million ($1,399 thousand). Deposits included in other assets as of March 31, 2014 and 2013 were ¥326 million ($3,167 thousand) and ¥317 million, respectively. Gross lease receivables Estimated residual values Unearned interest income Investments in leased assets 2014 ¥10,502 461 (1,320) ¥9,644 (Millions of yen) ¥9,926 420 (1,339) ¥9,007 (Thousands of U.S.dollars) $ 102,040 4,479 (12,825) $ 93,703 Note: For the fiscal year ended March 31, 2014, the reconciliation of the statutory tax rate of the Bank to the effective income tax rate is not stated as the difference between them is less than 5% of the statutory tax rate. The "Act for Partial Amendment of the Income Tax Act, etc." (Act No.10 of 2014) was promulgated on March 31, 2014 and, as a result, the Bank is no longer subject to the Special Reconstruction Corporation Tax effective for 15