H&R Block gains approval to sell off bank

Kansas City-based tax-preparation giant H&R Block Inc. (NYSE: HRB) has won a hard-fought regulatory approval to sell H&R Block Bank in a deal expected to close by Sept. 30.

In the deal announced 15 months ago, BofI Federal Bank will buy the bank, which should help free up $200 million to $250 million in excess capital that is required to be held in reserve as long as H&R Block is a bank holding company. The typical bank sale in the Kansas City area earns regulatory approval within three or four months, according to the Kansas City Business Journal.

Once the sale closes, the two parties will enter a program management agreement in which BofI will offer H&R Block-branded financial services products to the tax-preparation firm’s customers.

The approval sparked a climb in H&R Block stock. It jumped by 9 percent by 2 p.m.

Read more from the Kansas City Business Journal.