MINIMUM REGULATORY CAPITAL REQUIREMENTS

12 Months Ended

Jun. 30, 2015

Banking and Thrift [Abstract]

MINIMUM REGULATORY CAPITAL REQUIREMENTS

MINIMUM REGULATORY CAPITAL REQUIREMENTS

The Company and Bank are subject to regulatory capital adequacy requirements promulgated by federal bank regulatory agencies. Failure by the Company or Bank to meet minimum capital requirements could result in certain mandatory and discretionary actions by regulators that could have a material adverse effect on the consolidated financial statements. The Federal Reserve establishes capital requirements for the Company and the OCC has similar requirements for the Bank. The following tables present regulatory capital information for the Company and Bank. Information presented for June 30, 2015, reflects the Basel III capital requirements that became effective January 1, 2015 for both the Company and Bank. Prior to January 1, 2015, the Bank was subject to capital requirements under Basel I and there were no capital requirements for the Company. Under these capital requirements and the regulatory framework for prompt corrective action, the Company and Bank must meet specific capital guidelines that involve quantitative measures of the Company and Bank’s assets, liabilities and certain off-balance-sheet items as calculated under regulatory accounting practices. The Company’s and Bank’s capital amounts and classifications are also subject to qualitative judgments by regulators about components, risk weightings and other factors.

Quantitative measures established by regulation require the Company and Bank to maintain certain minimum capital

amounts and ratios. Federal bank regulators require the Company and Bank maintain minimum ratios of core capital to adjusted average assets of 4.0%, common equity tier 1 capital to risk-weighted assets of 4.5%, tier 1 capital to risk-weighted assets of 6.0% and total risk-based capital to risk-weighted assets of 8.0%. At June 30, 2015, the Company and Bank met all the capital adequacy requirements to which they were subject. At June 30, 2015, the Company and Bank were “well capitalized” under the regulatory framework for prompt corrective action. To be “well capitalized,” the Company and Bank must maintain minimum leverage, common equity tier 1 risk-based, tier 1 risk-based and total risk-based capital ratios of at least 5.0%, 6.5%, 8.0% and 10.0%, respectively. Management believes that no conditions or events have occurred since June 30, 2015 that would materially adversely change the Company’s and Bank’s capital classifications. From time to time, we may need to raise additional capital to support the Company’s and Bank’s further growth and to maintain their “well capitalized” status.

The Bank’s capital amounts, capital ratios and capital requirements were as follows:

	June 30, 2015
	Actual				For Capital Adequacy Purposes				To Be Well-Capitalized Under Prompt Corrective Action Provisions
(Dollars in thousands)	Amount		Ratio		Amount		Ratio		Amount		Ratio
Bank
Tier 1 leverage (core) capital (to adjusted average assets)	$	522,891	9.25	%	$	226,168	4.00	%	$	282,710	5.00	%
Common equity tier 1 capital (to risk weighted assets)	$	522,891	14.58	%	$	161,332	4.50	%	$	233,035	6.50	%
Tier 1 capital (to risk-weighted assets)	$	522,891	14.58	%	$	215,109	6.00	%	$	286,812	8.00	%
Total capital (to risk-weighted assets)	$	551,218	15.38	%	$	286,812	8.00	%	$	358,515	10.00	%
	June 30, 2014
	Actual				For Capital Adequacy Purposes				To Be Well-Capitalized Under Prompt Corrective Action Provisions
(Dollars in thousands)	Amount		Ratio		Amount		Ratio		Amount		Ratio
Bank
Tier 1 leverage (core) capital (to adjusted tangible assets)	$	382,441	8.66	%	$	176,639	4.00	%	$	220,799	5.00	%
Tier 1 capital (to risk-weighted assets)	$	382,441	14.42	%	N/A		N/A		$	159,181	6.00	%
Total capital (to risk-weighted assets)	$	400,814	15.11	%	$	212,241	8.00	%	$	265,302	10.00	%
Tangible capital (to tangible assets)	$	382,441	8.66	%	$	66,240	1.50	%	N/A		N/A

The Company’s capital amounts, capital ratios and capital requirements were as follows:

	June 30, 2015
	Actual				For Capital Adequacy Purposes				To Be Well-Capitalized Under Prompt Corrective Action Provisions
(Dollars in thousands)	Amount		Ratio		Amount		Ratio		Amount		Ratio
Company
Tier 1 leverage (core) capital (to adjusted average assets)	$	542,924	9.59	%	$	226,404	4.00	%	$	283,005	5.00	%
Tier 1 capital (to risk-weighted assets)	$	537,861	14.98	%	$	161,614	4.50	%	$	233,443	6.50	%
Total capital (to risk-weighted assets)	$	542,924	15.12	%	$	215,486	6.00	%	$	287,315	8.00	%
Tangible capital (to tangible assets)	$	571,251	15.91	%	$	287,315	8.00	%	$	359,143	10.00	%

Beginning January 1, 2016, Basel III implements a requirement for all banking organizations to maintain a capital conservation buffer above the minimum risk-based capital requirements in order to avoid certain limitations on capital distributions, stock repurchases and discretionary bonus payments to executive officers. The capital conservation buffer will be exclusively composed of common equity tier 1 capital, and it applies to each of the three risk-based capital ratios but not the leverage ratio. On January 1, 2016, the Company and Bank will be expected to comply with the capital conservation buffer requirement, which will increase the three risk-based capital ratios by 0.625% each year through 2019, at which point, the common equity tier 1 risk based, tier 1 risk-based and total risk-based capital ratios will be 7.0%, 8.5% and 10.5%, respectively. If the capital conservation buffer were in effect at June 30, 2015, the Company and Bank would exceed the requirement.