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BofI Expanding Partnership With H&R Block

BofI Federal Bank is expanding its partnership with tax preparation services company H&R Block Inc., through which it has been offering financial services products since the 2016 tax season.

During the 2018 tax season, BofI will be the exclusive provider of interest-free refund advance loans to H&R Block customers, the online bank announced Thursday. In the previous season, it was one of two lenders that had agreed to provide H&R Block (NYSE: HRB) customers with up to $700 million of funding for those loans.

“This agreement builds on the successful partnership we have with H&R Block,” said Greg Garrabrants, BofI’s president and chief executive officer.

The San Diego-based bank will earn fees from Block for originating and funding the loans.

If the bank originates the same total volume of loans in the upcoming tax season that Block did in the 2017 season, the bank will earn about $8 million in pre-tax profit – about $3 million more than it did through the partnership a year ago, Garrabrants said.

“We look forward to leveraging the insights from last tax season and driving higher uptake and more new customers to H&R Block in the 2018 tax season,” he said.

The agreement is for one year, Garrabrants said on the company’s Thursday earnings call.

BofI is a subsidiary of BofI Holding Inc. (Nasdaq: BOFI). As of June 30, the company had more than $8 billion in assets.

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