H&R Block Inc. on April 10 announced plans to divest its H&R Bank through a definitive agreement with BofI Federal Bank. The company expects the closing to occur before next tax season, as it still must go through legal and regulatory approvals.
Once the deal is finalized, BofI would serve as the bank for H&R Block’s branded financial products: Emerald Prepaid MasterCard, Refund Transfers and Emerald Advance lines of credit through H&R Block’s retail and digital channels, according to the deal announcement.
H&R Block had been seeking a deal since October 2012. At the time, the company said it was doing so because of new rules the Federal Reserve promulgated to implement changes required by the Dodd-Frank Act that impose higher capital requirements on savings and loan holding companies such as H&R Block.
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