H&R Block selling bank unit over new regulations

Tax service franchise H&R Block said it has entered into agreement with BofI Federal Bank to sell certain assets and liabilities of its bank unit H&R Block Bank.

“This is an important step in ceasing to be regulated as a savings and loan holding company, which we believe is in the best strategic interests of our company and our shareholders,” H&R Block’s president and CEO, Bill Cobb, said in the press release.

H&R Block said late 2013 it plans to sell its bank unit due to act amendments requiring higher capital on savings and loan holding companies.

The transaction is subject to approval from respective regulators and is expected to be finalized in time for next tax season.

H&R Block provides consumer tax services in over 11,000 company-owned and franchise-operated offices worldwide.