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15. Shareholders' Equity and Regulatory Capital Requirements
 12 Months Ended
Mar. 31, 2013
Notes  
15. Shareholders' Equity and Regulatory Capital Requirements

15.  SHAREHOLDERS’ EQUITY AND REGULATORY CAPITAL REQUIREMENTS

 

The Company’s articles of incorporation authorize 250,000 shares of serial preferred stock.  No preferred shares were issued or outstanding at March 31, 2013 or 2012.

 

The Bank is subject to various regulatory capital requirements administered by the Office of the Comptroller of the Currency (“OCC”). Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Bank’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Bank must meet specific capital guidelines that involve quantitative measures of the Bank’s assets, liabilities and certain off-balance sheet items as calculated under regulatory accounting practices. The Bank’s capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings and other factors.

 

Quantitative measures established by regulation to ensure capital adequacy require the Bank to maintain minimum amounts and ratios of total and tier I capital to risk-weighted assets, core capital to total assets and tangible capital to tangible assets (set forth in the table below). Management believes the Bank met all capital adequacy requirements to which it was subject to as of March 31, 2013.

 

As of March 31, 2013, the most recent notification from the OCC categorized the Bank as “well capitalized” under the regulatory framework for prompt corrective action. To be categorized as “well capitalized,” the Bank must maintain minimum total capital and tier I capital to risk weighted assets, core capital to total assets and tangible capital to tangible assets (set forth in the table below).

 

The Bank’s actual and required minimum capital amounts and ratios are as follows (dollars in thousands):

 

 

 

 

Actual

 

 

For Capital Adequacy Purposes

 

 

“Well Capitalized” Under Prompt Corrective Action

 

 

 

Amount

 

Ratio

 

 

Amount

 

Ratio

 

 

Amount

 

Ratio

 

March 31, 2013

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Capital:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(To Risk-Weighted Assets)

$

81,227

 

15.29

%

$

42,493

 

8.0

%

$

63,740

 

12.0

% (1)

Tier 1 Capital:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(To Risk-Weighted Assets)

 

74,473

 

14.02

 

 

21,247

 

4.0

 

 

31,870

 

6.0

 

Tier 1 Capital (Leverage):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(To Adjusted Tangible Assets)

 

74,473

 

9.99

 

 

29,823

 

4.0

 

 

67,102

 

9.0

 (1)

Tangible Capital:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(To Tangible Assets)

 

74,473

 

9.99

 

 

11,184

 

1.5

 

 

N/A

 

N/A

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

March 31, 2012

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Capital:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(To Risk-Weighted Assets)

$

80,834

 

12.11

%

$

53,399

 

8.0

%

$

80,099

 

12.0

% (1)

Tier 1 Capital:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(To Risk-Weighted Assets)

 

72,354

 

10.84

 

 

26,700

 

4.0

 

 

40,049

 

6.0

 

Tier 1 Capital (Leverage):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(To Adjusted Tangible Assets)

 

72,354

 

8.76

 

 

33,034

 

4.0

 

 

74,326

 

9.0

 (1)

Tangible Capital:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(To Tangible Assets)

 

72,354

 

8.76

 

 

12,388

 

1.5

 

 

N/A

 

N/A

 

 

(1)   The Bank agreed with the OCC to establishing higher minimum capital ratios and must maintain a Tier 1 capital (leverage) ratio of not less than 9.0% and a total risked-based capital ratio of not less than 12.0%  in order to be deemed “well capitalized”.

 

 

 

At periodic intervals, the OCC and the FDIC routinely examine the Bank’s financial condition and risk management processes as part of their legally prescribed oversight. Based on their examinations, these regulators can direct that the Company’s Consolidated Financial Statements be adjusted in accordance with their findings. A future examination by the OCC or the FDIC could include a review of certain transactions or other amounts reported in the Company’s 2013 Consolidated Financial Statements.

 

The Company did not repurchase any shares of common stock for the years ended March 31, 2013, 2012 or 2011.