According to a filing released this evening, H&R Block terminated its agreement with Republic Bank of Kentucky. As a result, H&R Block Bank will not be sold to Republic. Financial products sold in Block stores will remain in-house.
In July, Block agreed to sell its H&R Block Bank subsidiary to Republic Bank. The deal had a clause that required Republic to gain final approval for the transaction by September 30th if it was to go into effect for the 2014 tax season. The OCC did not grant approval in time and as a result, the expectation was that both companies would then complete the sale after the tax season ended.
If it had been approved, then Block stores would have sold Republic's financial products, such as prepaid cards or refund transfer services. The Emerald Card is one of the nation's largest reloadable prepaid debit cards.
Republic Executive Vice-President Kevin Sipes sent an e-mail to his staff on Tuesday confirming the news that the deal was off, according to IR spokesperson Holly Allgeier.
To that effect, Republic has withdrawn its application with the OCC which would have merged and consolidated Republic Bank & Trust and its Republic Bank, F.S.B. charters into one national bank.