Regulatory Capital Requirements

6 Months Ended

Oct. 31, 2014

Banking and Thrift [Abstract]

Regulatory Capital Requirements

NOTE 15: 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 September 30, 2014:
Total risk-based capital ratio (1)	$	595,148	199.4	%	$	23,877	8.0	%		$	29,846	10.0	%
Tier 1 risk-based capital ratio (2)	591,293		198.1	%	N/A		N/A			17,908		6.0	%
Tier 1 capital ratio (leverage) (3)	591,293		54.3	%	130,689		12.0	%	(5)	54,454		5.0	%
Tangible equity ratio (4)	591,293		54.3	%	16,336		1.5	%		N/A		N/A
As of September 30, 2013:
Total risk-based capital ratio (1)	$	506,449	140.0	%	$	28,950	8.0	%		$	36,188	10.0	%
Tier 1 risk-based capital ratio (2)	501,720		138.6	%	N/A		N/A			21,713		6.0	%
Tier 1 capital ratio (leverage) (3)	501,720		40.4	%	148,869		12.0	%	(5)	62,029		5.0	%
Tangible equity ratio (4)	501,720		40.4	%	18,609		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 October 31, 2014, HRB Bank's leverage ratio was 53.8%.