The First Bank

Basic Information

Stock Code
7184
Industry
Banking
Category Detail
Banks
Prefecture
Toyama Prefecture
Establishment Year
October 1944
Listing Year
March 2016
Official Website
https://www.first-bank.co.jp/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
Iyo Bank Holdings, Shizuoka Financial Group, Kyoto Financial Group, Mebuki Financial Group, Concordia Financial Group, Hirogin Holdings, Chiba Bank, Gunma Bank, Fukuoka Financial Group, Hachijuni Bank, Fukui Bank, Toyama Bank, Saga Bank

Overview

The First Bank is a second-tier regional bank centered in Toyama Prefecture, founded in 1944. It offers a wide range of community-focused financial services and maintains a stable management base.

Current Situation

The First Bank recorded consolidated net sales of 32.23 billion yen, ordinary income of 3.931 billion yen, and net income of 2.232 billion yen for the fiscal year ended March 2020. It operates 66 branches mainly in Toyama Prefecture, with outstanding loans of 822.7 billion yen and deposits of 1.1845 trillion yen, serving as a foundation for the regional economy. As innovations, it is actively promoting cashless payment services and mutual ATM network openings, while also considering sustainability and emphasizing contributions to local society. In 2021, under President Atsushi Nomura (formerly of the Bank of Japan), it accelerated its medium- to long-term strategy centered on digital transformation and customer base expansion. Furthermore, it is strengthening its sales base in conjunction with the opening of the Hokuriku Shinkansen and improving fundraising capabilities through listing on the Tokyo Stock Exchange First Section, aiming to enhance competitiveness in the increasingly competitive regional financial market. Going forward, it plans to maintain sound financial operations while contributing to new business investments and regional economic revitalization.

Trivia

Interesting Facts

  • The First Bank is a representative second-tier regional bank deeply rooted in the region.
  • The head office is located in the redeveloped 'TOYAMA Kirari' building, equipped with the latest facilities.
  • Actively involved in early mutual free ATM services.
  • Established a local revitalization fund for regional activation.
  • Features creative promotions, such as using Tomohiro Sekiguchi as image character.
  • Outstanding loans exceed 800 billion yen, making it a large-scale regional financial institution.
  • Enhancing transparency and governance through listing.
  • Focusing on strengthening along the Hokuriku Shinkansen line with close collaborations.
  • Diversified with subsidiaries in leasing and DC Card businesses.
  • Formed by mergers of multiple mutual finance companies, including Meisei Mujin at founding.
  • Actively deploying advanced digital services to regional SMEs.
  • Adjacent to cultural facilities in Toyama City, coexisting with the community.
  • President is a Bank of Japan alum with extensive financial expertise.
  • Focusing on improving internet banking convenience to meet customer needs.
  • Conducting support initiatives in collaboration with local governments and chambers of commerce.

Hidden Connections

  • Pursuing mutual prosperity through business partnerships with other Hokuriku regional banks and DC Card.
  • Strengthening collaborations with urban financial institutions following Tokyo Stock Exchange First Section listing.
  • Repurposed former head office as a Business Plaza for supporting regional SMEs.
  • President Atsushi Nomura, Bank of Japan alum, advances regional finance based on policy finance knowledge.
  • Pioneered FITnet as a regional bank, enabling free regional ATM usage.
  • Using Tomohiro Sekiguchi in commercials contributes to enhancing regional brand.
  • Adjacency of TOYAMA Kirari and Toyama City Glass Art Museum fuses regional cultural promotion with financial functions.
  • Consolidated subsidiaries achieve financial service diversification and group synergies.

Future Outlook

Growth Drivers

  • Increased lending demand from SMEs due to regional economic revitalization
  • Business efficiency and new service creation through digital technology introduction
  • Expansion of payment service demand with cashless society普及
  • Activation of regional investments utilizing local revitalization funds
  • Promotion of financial products and services for aging society
  • Management efficiency improvements and competitiveness strengthening through structural reforms
  • Increase in sustainable environment and society-focused investments
  • Future base expansion through strengthened younger customer acquisition measures
  • New business entry opportunities utilizing financial deregulation
  • Service diversification responding to diversifying regional resident needs
  • Expansion of partnerships with other regional banks and fintech companies
  • Customer-oriented sales strategies advanced through customer data analysis

Strategic Goals

  • Qualitative improvement of community-rooted financial services
  • Promote digital transformation (DX) to build efficient operations
  • Achieve 50% cashless payment penetration rate
  • Expand investment scale in local revitalization projects
  • Promote management emphasizing environment, society, and governance (ESG)
  • Achieve full paperless branches and 30% CO2 emission reduction
  • Support 10% sales increase for regional SMEs
  • Acquire 30% share of younger customers
  • Expand and diversify financial product lineup
  • Strengthen revenue through maximized synergies among consolidated subsidiaries

Business Segments

Corporate Lending Segment

Overview
Provides diverse financing services to support regional companies' business expansion, contributing to regional economic development.
Competitiveness
Building customer trust through detailed, community-focused responses
Customers
  • SMEs
  • Local major companies
  • Medical corporations
  • Municipalities
  • Agricultural corporations
  • Chamber of Commerce member companies
Products
  • Working capital financing
  • Equipment investment financing
  • Project finance
  • Real estate collateral financing
  • Lending guarantee services

Leasing & Finance Segment

Overview
Offers leasing services to support corporate equipment introduction in collaboration with consolidated subsidiaries.
Competitiveness
Flexible leasing tailored to regional companies' needs
Customers
  • Manufacturing
  • Construction
  • Transportation
  • Services
  • Medical institutions
Products
  • Equipment leasing
  • Machinery leasing
  • Vehicle leasing
  • Finance leasing

Asset Management & Securities Services

Overview
Supports asset formation and risk management through provision of financial products.
Competitiveness
High customer satisfaction through community-focused services
Customers
  • Individual asset owners
  • Local affluent clients
  • Corporate customers
  • Pension funds
Products
  • Investment trust sales
  • Bond brokerage
  • Asset management consulting

Payment Services Segment

Overview
Provides highly convenient payment services to diverse regional customers, promoting economic revitalization.
Competitiveness
Extensive usage network through partnerships like FITnet
Customers
  • Regional retailers
  • Restaurants
  • Public facilities
  • Schools
Products
  • Cashless payment terminals
  • Electronic money services
  • Payment agency

Corporate Consulting Services

Overview
Offers specialized support services for solving corporate management challenges.
Competitiveness
Custom proposals tailored to regional companies' issues
Customers
  • SME owners
  • Startups
  • Non-profits
  • Medical corporations
Products
  • Business improvement support
  • Fundraising support
  • Business succession support
  • Marketing support

Real Estate Related Services

Overview
Offers fundraising and asset management support utilizing real estate.
Competitiveness
High evaluations and flexible responses suited to regional characteristics
Customers
  • Local real estate companies
  • Construction firms
  • Investment corporations
Products
  • Real estate collateral financing
  • Asset management entrustment
  • Real estate finance

Local Revitalization & Regional Activation Support

Overview
Provides finance products specialized in regional economic revitalization and startup support.
Competitiveness
Multifaceted support leveraging regional networks
Customers
  • Municipalities
  • Local business associations
  • Regional revitalization funds
  • Tourism operators
Products
  • Regional revitalization fund
  • Startup support financing
  • Tourism promotion projects
  • Event economic support

Digital Financial Services

Overview
Focuses on providing digital services tailored to regional needs to enhance convenience.
Competitiveness
Speed of advanced technology adoption and regional adaptability
Customers
  • Regional SMEs
  • Individual customers
  • Government offices
Products
  • Internet banking system
  • Mobile payments
  • Online account management services

Credit Guarantee Business

Overview
Facilitates lending through credit guarantees in collaboration with financial institutions.
Competitiveness
Guarantee operations with deep understanding of local economic conditions
Customers
  • SMEs
  • Entrepreneurs
  • Agricultural corporations
Products
  • Credit guarantees
  • Guarantee entrustment
  • Lending guarantees

Education & Training Services

Overview
Provides education services to improve financial knowledge and skills, contributing to regional talent development.
Competitiveness
Ongoing education programs closely tied to the local community
Customers
  • Regional companies
  • Financial professionals
  • Students
Products
  • Financial literacy training
  • Business manners courses
  • Young talent development programs

Non-Performing Loan Management

Overview
Efficiently manages and processes non-performing loans, contributing to financial soundness.
Competitiveness
Prompt responses by specialized staff
Customers
  • Financial institutions
  • SMEs
Products
  • Debt collection
  • Debt restructuring support

Asset Management & Trust Operations

Overview
Provides asset preservation and efficient succession support to enhance customer asset value.
Competitiveness
Detailed, community-focused services
Customers
  • Elderly
  • Company owners
  • Foundation corporations
Products
  • Trust management
  • Will trusts
  • Property succession

Competitive Advantage

Strengths

  • Community-focused management structure
  • Extensive regional network
  • Stable lending and deposit base
  • Diverse financial product lineup
  • Strong financial foundation
  • Digitalization promotion capabilities
  • Collaboration with consolidated subsidiaries
  • Strong trust relationships with local customers
  • Risk diversification through multi-regional operations
  • Advanced cashless payment initiatives
  • Abundant corporate support expertise
  • Transparency as a listed company
  • Regional superiority over competitors
  • Active investments in regional revitalization

Competitive Advantages

  • Extensive branch network centered in the Hokuriku region
  • Strong transaction relationships with local companies
  • Improved reliability through Tokyo Stock Exchange First Section listing
  • Enhanced customer satisfaction through multifaceted financial services
  • Corporate consulting specialized in regional challenges
  • Powerful ATM and payment network with partners
  • High-convenience services utilizing IT technology
  • Brand power backed by long-term contributions to regional economy
  • High creditworthiness supported by financial stability
  • Active collaboration within the Second Regional Banks Association
  • Contributions to regional growth through regional revitalization funds
  • Synergy effects from diverse subsidiaries
  • Strategic management reforms led by young leadership
  • Improved image through active regional community support activities

Threats

  • Customer decline due to population decrease and aging in regional economy
  • Profit pressure from prolonged low-interest rate policies
  • Intensifying competition with urban banks
  • Risk of customer outflow from delays in digitalization
  • Increased business costs from strengthened financial regulations
  • Potential asset losses from natural disaster risks
  • Threat from emerging fintech companies
  • Lending default risks from unstable economic conditions
  • Limited growth opportunities due to difficulties in direct overseas market entry
  • Increased fundraising costs from credit rating downgrades
  • Initial investment burden accompanying DX promotion
  • Difficulty adapting services to diversifying customer needs

Innovations

2022: Strengthening smartphone payment services

Overview
Expanded smartphone payment introduction for regional customers to improve convenience.
Impact
Successfully acquired younger customers through increased users

2023: Introduction of digital account opening

Overview
Introduced fully online account opening system to streamline procedures.
Impact
Achieved increase in new accounts and reduction in operating costs

2021: Renewal of cashless payment 'Toyama D-CARD'

Overview
Enhanced functions of regionally focused credit card to promote usage.
Impact
Led to expansion in card usage and increase in merchants

2024: Promotion of IT infrastructure cloud migration

Overview
Cloud migration of internal systems for operational flexibility and cost reduction.
Impact
Achieved business efficiency and strengthened security

2020: Strengthening fintech collaborations

Overview
Promoted service diversification through partnerships with external fintech companies.
Impact
Improved customer engagement through new service introductions

2023: Introduction of AI-based lending review system

Overview
Utilized AI technology to improve review accuracy and efficiency.
Impact
Contributed to faster reviews and reduced non-performing loans

2022: Establishment of regional revitalization fund

Overview
Established investment fund for regional economic revitalization to strengthen funding supply.
Impact
Contributed to growth support for regional companies and bank revenue expansion

2024: Introduction of paperless promotion system

Overview
Digitized document management for business efficiency and reduced environmental impact.
Impact
Achieved both operating cost reduction and environmental load reduction

2020: Launch of online financial education service for region

Overview
Provided online financial literacy improvement courses for local residents.
Impact
Promoted community understanding and improved customer services

2021: Expansion of mutual free ATM usage network

Overview
Expanded FITnet to increase available ATMs and enhance convenience.
Impact
Achieved improved customer satisfaction and increased usage frequency

Sustainability

  • Active participation in local revitalization support aimed at regional economic activation
  • Promotion of paperless operations to reduce environmental impact
  • Implementation of social contribution programs through collaboration with regional communities
  • Strengthening workforce diversity including promotion of women's roles
  • Promoting sustainable economic development through regional financial education support
  • Facility operations and asset management considering CO2 emission reductions
  • Enhanced consideration of ESG factors in financial products
  • Active introduction of energy-saving equipment
  • Work-life balance improvements through promotion of remote work
  • Ongoing support for regional environmental conservation groups
  • Strengthening environmental, social, and governance (ESG) responses
  • Responsible management of supply chains