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SHAREHOLDERS' EQUITY AND REGULATORY CAPITAL REQUIREMENTS
 12 Months Ended
Mar. 31, 2020
Shareholders Equity And Regulatory Capital Requirements [Abstract]  
SHAREHOLDERS' EQUITY AND REGULATORY CAPITAL REQUIREMENTS

13.  SHAREHOLDERS’ EQUITY AND REGULATORY CAPITAL REQUIREMENTS

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 result in the initiation of 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 as of March 31, 2020.

As of March 31, 2020, the most recent notification from the OCC categorized the Bank as “well capitalized” under the regulatory framework for prompt corrective action. The Bank’s actual and required minimum capital amounts and ratios were as follows at the dates indicated (dollars in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

"Well Capitalized"

 

 

 

 

 

 

 

 

For Capital

 

Under Prompt 

 

 

 

Actual

    

 Adequacy Purposes

    

Corrective Action    

 

 

 

Amount

 

Ratio

 

Amount

 

Ratio

 

Amount

 

Ratio

 

 

    

  

 

    

  

 

  

 

    

  

 

  

 

    

  

 

March 31, 2020

 

  

 

 

  

 

  

 

 

  

 

  

 

 

  

 

Total Capital: (To Risk-Weighted Assets)

 

$

145,949

 

17.01

%    

$

68,630

 

8.0

%    

$

85,787

 

10.0

%

Tier 1 Capital: (To Risk-Weighted Assets)

 

 

135,196

 

15.76

 

 

51,472

 

6.0

 

 

68,630

 

8.0

 

Common equity tier 1 Capital: (To Risk-Weighted Assets)

 

 

135,196

 

15.76

 

 

38,604

 

4.5

 

 

55,762

 

6.5

 

Tier 1 Capital (Leverage): (To Average Tangible Assets)

 

 

135,196

 

11.79

 

 

45,851

 

4.0

 

 

57,313

 

5.0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

"Well Capitalized"

 

 

 

 

 

 

 

 

For Capital

 

Under Prompt 

 

 

 

Actual

    

 Adequacy Purposes

    

Corrective Action    

 

March 31, 2019

 

Amount

 

Ratio

 

Amount

 

Ratio

 

Amount

 

Ratio

 

 

    

 

 

    

 

 

 

 

    

 

 

 

 

    

 

 

Total Capital: (To Risk-Weighted Assets)

 

$

140,062

 

16.88

%    

$

66,379

 

8.0

%    

$

82,974

 

10.0

%

Tier 1 Capital: (To Risk-Weighted Assets)

 

 

129,671

 

15.63

 

 

49,784

 

6.0

 

 

66,379

 

8.0

 

Common equity tier 1 Capital: (To Risk-Weighted Assets)

 

 

129,671

 

15.63

 

 

37,338

 

4.5

 

 

53,933

 

6.5

 

Tier 1 Capital (Leverage): (To Average Tangible Assets)

 

 

129,671

 

11.56

 

 

44,874

 

4.0

 

 

56,092

 

5.0

 

 

In addition to the minimum common equity tier 1 (“CET1”), Tier 1 and total capital ratios, the Bank is required to maintain a capital conservation buffer consisting of additional CET1 capital in order to avoid limitations on paying dividends, engaging in share repurchases, and paying discretionary bonuses based on percentages of eligible retained income that could be utilized for such actions. The capital conservation buffer is required to be an amount greater than 2.5% of risk-weighted assets. As of March 31, 2020, the Bank’s CET1 capital exceeded the required capital conservation buffer at an amount greater than 2.5%.

For a savings and loan holding company, such as the Company, the capital guidelines apply on a bank only basis. The Federal Reserve expects the holding company’s subsidiary banks to be well capitalized under the prompt corrective action regulations. If the Company was subject to regulatory guidelines for bank holding companies at March 31, 2020, the Company would have exceeded all regulatory capital requirements.

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 2020 consolidated financial statements.