H&R Block Updates Expected Timing of Bank Transaction
H&R Block, Inc. (NYSE: HRB), the world’s largest consumer tax services provider, today announced that the regulatory approval process regarding its purchase and assumption agreement (the “P&A Agreement”) with BofI Federal Bank (“BofI”) will not be complete this calendar year. Thus, H&R Block expects to continue offering its financial services products to its clients through H&R Block Bank for the upcoming tax season.
“We are extremely disappointed with this development. However, we remain committed to exiting our bank and forming a long-term relationship with BofI,” said Bill Cobb, H&R Block’s president and chief executive officer. “We are prepared to serve our clients through H&R Block Bank this upcoming tax season. Our financial services products provide tremendous value for our clients, who will not be impacted by this delay.”
As announced on April 10, 2014, H&R Block Bank and BofI entered into the P&A Agreement, pursuant to which H&R Block Bank agreed to sell certain assets and transfer certain liabilities, including all of its deposit liabilities, to BofI. The P&A Agreement is subject to regulatory approvals and other customary closing conditions. The parties also agreed to terms of a program management agreement under which BofI will serve as the bank for H&R Block-branded financial services products offered through H&R Block’s retail and digital channels: Emerald Prepaid MasterCard®, refund transfers and Emerald Advance® lines of credit. Further details regarding these agreements can be found in the Form 8-K filed with the Securities and Exchange Commission on April 10, 2014. There can be no assurances regarding when or if the transaction will ultimately receive regulatory approval or if the other closing conditions will be satisfied.
Discussion of these developments regarding the H&R Block Bank divestiture transaction and related matters will occur during a conference call for analysts, institutional investors, and shareholders. The call is scheduled for 9:00 a.m. Eastern time on Monday, Oct. 6, 2014. To access the call, please dial the number below approximately 10 minutes prior to the scheduled starting time:
U.S./Canada (888) 895-5260 or International (443) 842-7595
Conference ID: 13270413
The call will also be webcast in a listen-only format for the media and public. The link to the webcast can be accessed directly at http://investors.hrblock.com.
A replay of the call will be available beginning at 12:00 p.m. Eastern time on Oct. 6, 2014, and continuing until Nov. 6, 2014, by dialing (855) 859-2056 (U.S./Canada) or (404) 537-3406 (International). The conference ID is 13270413. The webcast will be available for replay Oct. 6, 2014 at http://investors.hrblock.com.
About H&R Block
H&R Block, Inc. (NYSE: HRB) is the world’s largest consumer tax services provider. More than 650 million tax returns have been prepared worldwide by and through H&R Block since 1955. In fiscal 2014, H&R Block had annual revenues over $3.0 billion with 24.2 million tax returns prepared worldwide. Tax return preparation services are provided in approximately 12,000 company-owned and franchise retail tax offices worldwide by professional tax preparers, and through H&R Block Tax Software products. H&R Block Bank provides affordable financial services products. For more information, visit the H&R Block Newsroom at http://newsroom.hrblock.com/.
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