Regulatory Requirements

3 Months Ended

Jul. 31, 2011

Regulatory Requirements

Regulatory Requirements

10. Regulatory Requirements

HRB Bank files its regulatory Thrift Financial Report (TFR) on a calendar quarter basis with the Office of Thrift Supervision (OTS). In July 2011, as a result of the Dodd-Frank Wall Street Reform and Consumer Protection Act (the Reform Act), the responsibility and authority of the OTS moved to the Office of the Comptroller of the Currency (OCC). HRB Bank will continue to file TFR reports with the OCC through December 31, 2011. Beginning March 31, 2012, HRB Bank will file Reports of Condition and Income (Call Report) with the OCC quarterly.

The following table sets forth HRB Bank's regulatory capital requirements, as calculated in its TFR:

										(dollars in 000s)
									To Be Well Capitalized
						For Capital AdequacyUnder				Prompt	Corrective
		Actual				Purposes				Action Provisions
		Amount	Ratio			Amount	Ratio			Amount	Ratio
As of June 30, 2011:
Total risk-based capital ratio (1)	$	411,062	94.5	%	$	34,813	8	%	$	43,516	10	%
Tier 1 risk-based capital ratio (2)	$	405,333	93.1	%		N/A	N/A		$	26,110	6	%
Tier 1 capital ratio (leverage) (3)	$	405,333	35	%	$	139,141	12	%	$	57,975	5	%
Tangible equity ratio (4)	$	405,333	35	%	$	17,393	1.5	%		N/A	N/A
As of March 31, 2011:
Total risk-based capital ratio (1)	$	405,000	92.5	%	$	35,019	8	%	$	43,773	10	%
Tier 1 risk-based capital ratio(2)	$	399,187	91.2	%		N/A	N/A		$	26,264	6	%
Tier 1 capital ratio (leverage) (3)	$	399,187	22.8	%	$	209,758	12	%	$	87,399	5	%
Tangible equity ratio (4)	$	399,187	22.8	%	$	26,220	1.5	%		N/A	N/A

(1)	Total risk-based capital divided by risk-weighted assets.
(2)	Tier 1 (core) capital less deduction for low-level recourse and residual interest divided by risk-weighted assets.
(3)	Tier 1 (core) capital divided by adjusted total assets.
(4)	Tangible capital divided by tangible assets.

As of July 31, 2011, HRB Bank's leverage ratio was 35.3%.