Japan's FIDEA Holdings Co. Ltd. (TSE:8713) said January 25, 2024 that its two subsidiary banks decided the same day to promote talks with an aim to merge in fiscal 2026, in an effort to enhance their operations amid the adverse business environment, such as ultralow interest rates and falling populations. This would mark the first merger between regional banks operating in different prefectures in the Tohoku northeastern Japan region.

The two institutions are The Shonai Bank, Ltd., based in the city of Tsuruoka in Yamagata Prefecture, and Hokuto Bank, Ltd., based in the city of Akita, the capital of the namesake prefecture. Shonai Bank President Masahiko Matsuda said, "The strengths of the two banks will be combined at a deeper level if we become one in both name and reality," while Hokuto Bank President Arata Ito said, "Increased scale through the merger will become a major advantage". Details of the envisaged merger will be hammered out by a preparatory committee to be set up later.

The group hopes that the merged bank will reinforce support for businesses in the Tohoku region partly by beefing up its loan operations. Fidea does not plan to consolidate the two banks' branches in the same areas.