Regulatory Capital Requirements Of HRB Bank

9 Months Ended

Jan. 31, 2014

Banking and Thrift [Abstract]

Regulatory Capital Requirements Of 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)
	Actual				Minimum Capital Requirement					Minimum to be Well Capitalized
	Amount		Ratio		Amount		Ratio			Amount		Ratio
As of December 31, 2013:
Total risk-based capital ratio (1)	$	517,031	72.5	%	$	57,023	8.0	%		$	71,279	10.0	%
Tier 1 risk-based capital ratio (2)	508,015		71.3	%	N/A		N/A			42,768		6.0	%
Tier 1 capital ratio (leverage) (3)	508,015		37.1	%	164,404		12.0	%	(5)	68,502		5.0	%
Tangible equity ratio (4)	508,015		37.1	%	20,550		1.5	%		N/A		N/A
As of December 31, 2012:
Total risk-based capital ratio (1)	$	469,979	61.9	%	$	60,747	8.0	%		$	75,934	10.0	%
Tier 1 risk-based capital ratio (2)	460,341		60.6	%	N/A		N/A			45,561		6.0	%
Tier 1 capital ratio (leverage) (3)	460,341		29.7	%	62,041		12.0	%	(5)	77,551		5.0	%
Tangible equity ratio (4)	460,341		29.7	%	23,265		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 January 31, 2014, HRB Bank’s leverage ratio was 37.1%.