SHAREHOLDERS' EQUITY AND REGULATORY CAPITAL REQUIREMENTS

12 Months Ended

Mar. 31, 2021

Shareholders Equity And Regulatory Capital Requirements [Abstract]

SHAREHOLDERS' EQUITY AND REGULATORY CAPITAL REQUIREMENTS

13. SHAREHOLDERS’ EQUITY AND REGULATORY CAPITAL REQUIREMENTS

The Bank is a state-chartered, federally insured institution subject to various regulatory capital requirements administered by the FDIC. 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, 2021.

As of March 31, 2021, the Bank was categorized as “well capitalized” under the FDIC’s 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
March 31, 2021	Amount		Ratio		Amount		Ratio		Amount		Ratio

Total Capital:
(To Risk-Weighted Assets)	$	151,555	17.35	%	$	69,879	8.0	%	$	87,349	10.0	%
Tier 1 Capital:
(To Risk-Weighted Assets)		140,529	16.09			52,409	6.0			69,879	8.0
Common equity tier 1 Capital:
(To Risk-Weighted Assets)		140,529	16.09			39,307	4.5			56,777	6.5
Tier 1 Capital (Leverage):
(To Average Tangible Assets)		140,529	9.63			58,344	4.0			72,930	5.0


									"Well Capitalized"
					For Capital				Under Prompt
	Actual				Adequacy Purposes				Corrective Action
March 31, 2020	Amount		Ratio		Amount		Ratio		Amount		Ratio

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

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, 2021, the Bank’s CET1 capital exceeded the required capital conservation buffer at an amount greater than 2.5%.

For a bank 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, 2021, the Company would have exceeded all regulatory capital requirements.

At periodic intervals, the Company’s banking regulators routinely examine the Company’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 could include a review of certain transactions or other amounts reported in the Company’s 2021 consolidated financial statements.

- Definition

The entire disclosure for regulatory capital requirement for depository and lending institutions. Institutions include, but not are not limited to, finance company, insured depository institution, bank holding company, savings and loan association holding company, bank and savings institution not federally insured, mortgage company, foreign financial institution and credit union.

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