Regulatory Capital Requirements

3 Months Ended

Jul. 31, 2014

Banking and Thrift [Abstract]

Regulatory Capital Requirements

NOTE 14: 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, 2014:
Total risk-based capital ratio (1)	$	590,393	191.2	%	$	25,593	8.0	%		$	31,991	10.0	%
Tier 1 risk-based capital ratio (2)	586,394		189.9	%	N/A		N/A			19,195		6.0	%
Tier 1 capital ratio (leverage) (3)	586,394		51.0	%	138,123		12.0	%	(5)	57,551		5.0	%
Tangible equity ratio (4)	586,394		51.0	%	17,265		1.5	%		N/A		N/A
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 March 31, 2014:
Total risk-based capital ratio (1)	$	563,899	168.5	%	$	26,771	8.0	%		$	33,464	10.0	%
Tier 1 risk-based capital ratio (2)	559,572		167.2	%	N/A		N/A			20,079		6.0	%
Tier 1 capital ratio (leverage) (3)	559,572		32.1	%	209,041		12.0	%	(5)	87,101		5.0	%
Tangible equity ratio (4)	559,572		32.1	%	26,130		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, 2014, HRB Bank's leverage ratio was 52.5%.