Regulatory Capital Requirements Of HRB Bank

3 Months Ended

Jul. 31, 2013

Banking and Thrift [Abstract]

Regulatory Capital Requirements Of HRB Bank

REGULATORY CAPITAL REQUIREMENTS

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)
	Actual				Minimum Capital Requirement					Minimum to be Well Capitalized
	Amount		Ratio		Amount		Ratio			Amount		Ratio
As of June 30, 2013:
Total risk-based capital ratio (1)	$	508,667	132.5	%	$	30,701	8.0	%		$	38,376	10.0	%
Tier 1 risk-based capital ratio (2)	503,536		131.2	%	N/A		N/A			23,026		6.0	%
Tier 1 capital ratio (leverage) (3)	503,536		36.9	%	163,620		12.0	%	(5)	68,175		5.0	%
Tangible equity ratio (4)	503,536		36.9	%	20,453		1.5	%		N/A		N/A
As of June 30, 2012:
Total risk-based capital ratio (1)	$	461,856	123.8	%	$	29,856	8.0	%		$	37,321	10.0	%
Tier 1 risk-based capital ratio (2)	456,945		122.4	%	N/A		N/A			22,392		6.0	%
Tier 1 capital ratio (leverage) (3)	456,945		38.7	%	47,227		12.0	%	(5)	59,034		5.0	%
Tangible equity ratio (4)	456,945		38.7	%	17,710		1.5	%		N/A		N/A
As of March 31, 2013:
Total risk-based capital ratio (1)	$	506,734	131.6	%	$	30,806	8.0	%		$	38,508	10.0	%
Tier 1 risk-based capital ratio (2)	501,731		130.3	%	N/A		N/A			23,105		6.0	%
Tier 1 capital ratio (leverage) (3)	501,731		25.5	%	236,315		12.0	%	(5)	98,464		5.0	%
Tangible equity ratio (4)	501,731		25.5	%	29,539		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.

Quantitative measures established by regulation to ensure capital adequacy require HRB Bank to maintain minimum amounts and ratios of tangible equity, total risk-based capital and Tier 1 capital, as set forth in the table above. As of July 31, 2013, HRB Bank’s leverage ratio was 38.2%.