Regulatory Requirements - HRB Bank

6 Months Ended

Oct. 31, 2012

Regulatory Requirements - HRB Bank [Abstract]

Regulatory Requirements - HRB Bank

15.  Regulatory Requirements – HRB Bank

The following table sets forth HRB Bank’s regulatory capital requirements calculated in its Call Report, as filed with the Federal Financial Institutions Examination Council (FFIEC):

										(dollars in 000s)
					Minimum Capital				Minimum to be
		Actual			Requirement				Well Capitalized
		Amount	Ratio		Amount	Ratio			Amount	Ratio
As of September 30, 2012:
Total risk-based capital ratio (1)	$	462,454	128.2%	$	28,868	8.0%		$	36,085	10.0%
Tier 1 risk-based capital ratio (2)		457,760	126.9%		N/A	N/A			21,651	6.0%
Tier 1 capital ratio (leverage) (3)		457,760	36.8%		49,696	4.0%	(5)		62,120	5.0%
Tangible equity ratio (4)		457,760	36.8%		18,636	1.5%			N/A	N/A
As of March 31, 2012:
Total risk-based capital ratio (1)	$	458,860	120.3%	$	30,513	8.0%		$	38,141	10.0%
Tier 1 risk-based capital ratio (2)		453,800	119.0%		N/A	N/A			22,885	6.0%
Tier 1 capital ratio (leverage) (3)		453,800	29.4%		185,252	12.0%			77,188	5.0%
Tangible equity ratio (4)		453,800	29.4%		23,157	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.

⁽⁵⁾ Effective April 5, 2012, the minimum capital requirement was changed to 4% by the OCC, although HRB Bank plans to maintain a minimum of 12.0% leverage capital at the end of each calendar quarter.

As of October 31, 2012, HRB Bank’s leverage ratio was 35.7%.