Tax preparer H&R Block Inc said on Sunday that its deal to sell its bank to BofI Federal Bank will not be approved by regulators before next year's tax season.
"We are extremely disappointed with this development," Bill Cobb, H&R Block's president and chief executive officer, said in a statement. He added, "we remain committed to exiting our bank and forming a long-term relationship with BofI."
BofI Holding Inc, which owns San Diego-based BofI Federal, issued a similar statement and said it remains committed to the deal.
Both companies said they would hold conference calls on Monday to discuss the developments, with H&R Block's call starting at 9 a.m. Eastern time (1300 GMT) and BofI's call starting at 10 a.m. (1400 GMT).
The deal had been announced on April 10.
The hold on the deal comes after H&R Block was forced to end a July 2013 agreement to sell its banking assets to Republic Bancorp Inc after being unable to obtain regulatory approvals.
The company has been seeking strategic alternatives for H&R Block Bank since October 2012 to avoid a sharp rise in costs associated with the introduction of stricter banking rules by the U.S. Federal Reserve.
Cobb said H&R Block, which is based in Kansas City, Missouri, is prepared to serve its clients through its bank during the new tax season. Customers, he said, "will not be impacted by this delay."
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