XML 76 R17.htm IDEA: XBRL DOCUMENT v2.4.0.6
Regulatory Requirements
 9 Months Ended
Jan. 31, 2012
Regulatory Requirements [Abstract]  
Regulatory Requirements

11. Regulatory Requirements

HRB Bank historically filed its regulatory Thrift Financial Report (TFR) on a calendar quarter basis with the Office of Thrift Supervision (OTS). In July 2011, as a result of the Dodd-Frank Wall Street Reform and Consumer Protection Act (the Reform Act), the responsibility and authority of the OTS moved to the Office of the Comptroller of the Currency (OCC). HRB Bank filed its TFRs with the OCC through December 31, 2011. Beginning March 31, 2012, HRB Bank will file Reports of Condition and Income (Call Report) with the OCC quarterly. Additionally, H&R Block, Inc. as the bank holding company is now regulated by the Federal Reserve Bank and, as such, is subject to certain reporting requirements.

The following table sets forth HRB Bank's regulatory capital requirements, as calculated in its TFR:

 

 

 

 

 

 

 

 (dollars in 000s)

 

 

 

 

 

 To Be Well Capitalized

 

 

 

 For Capital Adequacy Under Prompt Corrective

 

 Actual Purposes Action Provisions

 

 Amount Ratio Amount Ratio Amount Ratio

As of December 31, 2011:

 

 

 

 

 

 

Total risk-based capital ratio (1)

$ 411,163

48.8 %

$ 67,407

8.0 %

$ 84,258

10.0 %

Tier 1 risk-based capital ratio (2)

$ 400,438

47.5 %

N/A

N/A

$ 50,555

6.0 %

Tier 1 capital ratio (leverage) (3)

$ 400,438

25.6 %

$ 187,642

12.0 %

$ 78,184

5.0 %

Tangible equity ratio (4)

$ 400,438

25.6 %

$ 23,455

1.5 %

N/A

N/A

As of March 31, 2011:

 

 

 

 

 

 

Total risk-based capital ratio (1)

$ 405,000

92.5 %

$ 35,019

8.0 %

$ 43,773

10.0 %

Tier 1 risk-based capital ratio (2)

$ 399,187

91.2 %

N/A

N/A

$ 26,264

6.0 %

Tier 1 capital ratio (leverage) (3)

$ 399,187

22.8 %

$ 209,758

12.0 %

$ 87,399

5.0 %

Tangible equity ratio (4)

$ 399,187

22.8 %

$ 26,220

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.

Block Financial LLC (BFC) typically makes capital contributions to HRB Bank to help it meet its capital requirements. BFC made capital contributions to HRB Bank of $200.0 million during the nine months ended January 31, 2012, with an additional $200.0 million contributed in February 2012.

As of January 31, 2012, HRB Bank's leverage ratio was 27.1%.