San Diego Business Journal

BofI Federal to Buy H&R Block Bank

By Mike Allen Thursday, April 10, 2014

BofI Federal Bank, formerly Bank of Internet USA, said it’s agreed to buy H&R Block’s bank business for an undisclosed price.

Far better known as a tax preparation service, H&R Block Bank was formed in 2006 and specializes in mortgage lending, according to its filings with the Federal Deposit Insurance Corp. The bank with a single office in Kansas City, Mo. had $1.36 billion in assets, and net income of $47 million in 2013, the FDIC said.

BofI Federal, the main subsidiary of BofI Holding Co., has about $3.5 billion in assets and is the second largest bank headquartered in San Diego.

BofI said in a statement it expects the new acquisition, consisting of certain assets and all its deposits, to generate annual revenue of $26 million to $28 million staring in fiscal 2015.

Shares of BofI Holding, traded on the Nasdaq under BOFI, fell nearly 3 percent on April 10 to $74.44.