Derivatives

a. Derivatives for which hedge accounting is not applied as of March 31, 2013 and 2012

For derivative transactions for which hedge accounting is not applied, the contract amounts at the balance sheet date for each type of underlying instrument, the principal equivalent amount stipulated in the contract, the fair value, unrealized gains or losses, and the method for calculating the corresponding fair value are as follows. The amount shown as the contract amount, etc., does not show market risk related to the derivative transactions.

(1) Interest rate-related derivatives: None as of March 31, 2013 and 2012 (2) Currency-related derivatives as of March 31, 2013 and 2012:

The Bank had the following derivative instruments outstanding as of March 31, 2013 and 2012: Currency-related derivatives (as of March 31, 2013)

Millions of yen 2013 Category Type Contract amount, etc. Portion of contract amount, etc.,

exceeding 1 year Fair value

Unrealized gains/losses

OTC Foreign exchange forward contracts—bought ¥1,535 ¥— ¥(11) ¥(11)

Total —— —— ¥(11) ¥(11)

Currency-related derivatives (as of March 31, 2012)

Millions of yen 2012 Category Type Contract amount, etc. Portion of contract amount, etc.,

exceeding 1 year Fair value

Unrealized gains/losses

OTC Foreign exchange forward contracts—sold ¥4,298 ¥4,138 ¥441 ¥441 Foreign exchange forward contracts—bought 7,933 — 112 112

Total —— —— ¥553 ¥553

Currency-related derivatives (as of March 31, 2013)

Thousands of U.S. dollars 2013 Category Type Contract amount, etc. Portion of contract amount, etc.,

exceeding 1 year Fair value

Unrealized gains/losses

OTC Foreign exchange forward contracts—bought $16,327 $— $(122) $(122)

Total —— —— $(122) $(122)

Notes: 1. The above instruments are stated at fair value and unrealized gains (losses) are charged to income or expenses in the statements of income. 2. The fair value is determined using the discounted present value of future cash flows.

(3) Equity-related derivatives: None as of March 31, 2013 and 2012 (4) Bond-related derivatives: None as of March 31, 2013 and 2012 (5) Commodity-related derivatives: None as of March 31, 2013 and 2012 (6) Credit derivatives: None as of March 31, 2013 and 2012

b. Derivatives for which hedge accounting is applied as of March 31, 2013 and 2012

For derivative instruments for which hedge accounting is applied, the contract amount at the balance sheet date for each type of underlying instruments for each hedge accounting method, the principal equivalent amount stipulated in the contract, the fair value, and the method for calculating the corresponding fair value are as follows. The amount shown as the contract amount, etc., does not show market risk related to the derivative instruments.

(1) Interest rate-related derivatives

Millions of yen 2013 Hedge accounting

method Type Primary hedged instrument

Contract amount, etc. Portion of contract amount, etc., exceeding 1 year Fair value (Note 2)

Standard treatment Interest rate swap instruments: Pay fixed swaps, receive

floating swaps Available-for-sale securities: (Japanese Government Bonds) ¥2,836,790 ¥2,836,790 ¥(236,571)

Receive fixed swaps,

pay floating swaps Deposits 1,050,000 — 801

Total —— —— ¥(235,770)

Millions of yen 2012 Hedge accounting

method Type Primary hedged instrument

Contract amount, etc. Portion of contract amount, etc., exceeding 1 year Fair value (Note 2)

Standard treatment Interest rate swap instruments: Pay fixed swaps, receive floating swaps

Available-for-sale securities:

(Japanese Government Bonds) ¥2,643,800 ¥2,643,800 ¥(114,252) Receive fixed swaps,

pay floating swaps Deposits 1,500,000 1,050,000 630

Total —— —— ¥(113,622)

Thousands of U.S. dollars 2013 Hedge accounting

method Type Primary hedged instrument

Contract amount, etc. Portion of contract amount, etc., exceeding 1 year Fair value (Note 2)

Standard treatment Interest rate swap instruments: Pay fixed swaps, receive

floating swaps Available-for-sale securities: (Japanese Government Bonds) $30,162,573 $30,162,573 $(2,515,384)

Receive fixed swaps,

pay floating swaps Deposits 11,164,274 — 8,522

Total —— —— $(2,506,861)

Notes: 1. The deferred hedge accounting method is applied as the hedge accounting method for interest rate risks arising from financial assets and liabilities. 2. The fair value is determined using the discounted present value of future cash flows.

Notes to Financial Statements

MD&A Fin A nci A l St Ate M ent S Fin A nci A l D At A

(2) Currency-related derivatives

Millions of yen 2013 Hedge accounting

method Type Primary hedged instrument

Contract amount, etc. Portion of contract amount, etc., exceeding 1 year Fair value (Note 2)

Standard treatment Foreign exchange forward

contracts—sold Available-for-sale securities: (Foreign securities) ¥ 375,757 ¥ 244,301 ¥ (32,290)

Currency swap 2,261,381 2,125,693 (374,319)

Accounting method for recognizing gains and losses on hedged items

Foreign exchange forward

contracts—sold Available-for-sale securities: (Foreign securities)

798,644 — (33,244)

Accounting method translating foreign currency receivables at forward rates

Foreign exchange forward

contracts—sold Held-to maturity securities: (Foreign securities) 189,995 115,726

Currency swap 80,198 59,220 (Note 3)

Total —— —— ¥(439,855)

Millions of yen 2012 Hedge accounting

method Type Primary hedged instrument

Contract amount, etc. Portion of contract amount, etc., exceeding 1 year Fair value (Note 2)

Standard treatment Foreign exchange forward

contracts—sold Available-for-sale securities: (Foreign securities) ¥ 418,386 ¥ 386,787 ¥ 20,277 Currency swap 1,304,485 1,239,354 (61,672) Accounting method for

recognizing gains and losses on hedged items

Foreign exchange forward

contracts—sold Available-for-sale securities: (Foreign securities)

40,273 — (3,605) Accounting method

translating foreign currency receivables at forward rates

Foreign exchange forward contracts—sold

Held-to maturity securities:

(Foreign securities) 237,392 189,995

Currency swap 20,977 20,977 (Note 3)

Total —— —— ¥(45,000)

Thousands of U.S. dollars 2013 Hedge accounting

method Type Primary hedged instrument

Contract amount, etc. Portion of contract amount, etc., exceeding 1 year Fair value (Note 2)

Standard treatment Foreign exchange forward contracts—sold

Available-for-sale securities:

(Foreign securities) $ 3,995,296 $ 2,597,568 $ (343,337)

Currency swap 24,044,455 22,601,736 (3,980,007)

Accounting method for recognizing gains and losses on hedged items

Foreign exchange forward

contracts—sold Available-for-sale securities: (Foreign securities)

8,491,695 — (353,478)

Accounting method translating foreign currency receivables at forward rates

Foreign exchange forward

contracts—sold Held-to maturity securities: (Foreign securities) 2,020,155 1,230,482

Currency swap 852,716 629,670 (Note 3)

Total —— —— $(4,676,823)

Notes: 1. The deferred hedge accounting method is primarily used to hedge the risk from market exchange rate fluctuations for foreign currency-denominated securities. 2. The fair value is determined using the discounted present value of future cash flows.

3. Derivatives under the accounting method translating foreign currency receivables at forward rates are treated as being an inseparable part of the securities being hedged, and their fair value is therefore included in that of the corresponding securities under Note 20. Financial Instruments.

(3) Equity-related derivatives: None as of March 31, 2013 and 2012 (4) Bond-related derivatives: None as of March 31, 2013 and 2012

23. Loans

“Loans to bankrupt borrowers,” “Non-accrual delinquent loans,” “Past-due loans for three months or more,” and “Restructured loans” did not exist as of March 31, 2013 and 2012.

Contracts of overdraft facilities and loan commitments are contracts with customers to lend funds up to a certain limit agreed in advance. The Bank will make the loans upon the request of an obligor to draw down funds under such loan agreements as long as there is no breach of various terms and conditions stipulated in the relevant loan agreement.

The unused commitment balance relating to these loan agreements amounted to ¥7,735 million ($82,243 thousand) and ¥27,735 million as of March 31, 2013 and 2012, respectively. Of this amount, ¥5,000 million ($53,163 thousand) and ¥25,000 million as of March 31, 2013 and 2012, respectively, related to loans in which the term of the agreement was less than one year, or the unconditional cancellation of the agreement was allowed at any time.

In many cases, the term of the agreement runs its course without the loan ever being drawn down. Therefore, the unused amount will not necessarily affect future cash flows. Conditions are included in certain loan agreements that allow the Bank to decline the request for a loan draw-down when there is due cause to do so, such as when there is a change in financial condition or when it is necessary to protect the Bank’s credit. At the inception of contracts, the Bank has the obligor pledge collateral to the Bank in the form of real estate, securities, etc., if considered to be necessary. Subsequently, the Bank reviews the obligor’s finan- cial condition in accordance with the Bank’s established internal procedures and takes necessary measures to protect its credit.