Approval process delays H&R Block sale of banking business to BofI through another tax season

H&R Block's latest attempt to sell its banking business will remain on hold through another tax season.

Regulatory approval for the sale to BofI Federal Bank will not be completed this year, meaning that the tax preparer will continue to offer financial services through H&R Block Bank through the upcoming tax season.

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"We are extremely disappointed with this development," H&R Block CEO Bill Cobb said in a news release Monday. "However, we remain committed to exiting our bank and forming a long-term relationship with BofI."

H&R Block Inc. announced in April that it would sell its banking business to BofI, which also will offer H&R Block-brand financial programs like Emerald Prepaid Master Card and Emerald Advance lines of credit under a program management agreement between the two companies. The companies did not disclose the price.

Last year, before the BofI deal was announced, the Kansas City company agreed to sell its bank operations to Republic Bank and Trust Co., a subsidiary of Republic Bancorp Inc. As a condition of the sale, Republic applied with regulators to convert into a national bank. It ultimately withdrew its application, and H&R Block terminated the sale.

H&R Block has said it wanted to partner with a lender to expand its financial services business and that it did not want to be regulated as a savings and loan holding company by the Federal Reserve.

Shares of H&R Block Inc. slipped about 1 percent before the opening bell Monday. Shares have climbed 9 percent so far this year.