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BofI Federal Bank Announces Expansion of H&R Block

SAN DIEGO--(BUSINESS WIRE)--BofI Federal Bank ("BofI"), the nationwide banking subsidiary of BofI Holding, Inc. (NASDAQ: BOFI), has entered into an agreement with H&R Block to be the exclusive provider of interest-free Refund Advance loans to their customers during the 2018 tax season.

BofI will originate and fund all of H&R Block’s interest-free Refund Advance loans to tax preparation clients for the 2018 tax season. BofI will perform the credit underwriting, loan origination, funding, and loan servicing associated with the interest-free Refund Advance loan in the upcoming tax season and receive fees from H&R Block for providing those services. This agreement is an expansion of the services BofI provided to H&R Block in the 2017 tax season.

“This agreement builds on the successful partnership we have with H&R Block,” stated Greg Garrabrants, President and Chief Executive Officer of BofI Federal Bank. “Assuming we originate the same total volume of Refund Advance loans in the 2018 tax season as was originated in the 2017 tax season, approximately $700 million, with credit losses at estimated levels, we will earn approximately $8 million of pretax profit from Refund Advance in fiscal 2018, roughly $3 million more in pretax income from Refund Advance than we did a year ago. There is no minimum guaranty fee from H&R Block, so the amount we earn will be contingent upon origination volume...