H&R Block Inc's Bank Sale Delayed Until Next Year, Shares Down 5%

H&R Block Inc HRB revealed on Monday that its proposed deal to sell its banking unit to Bofl Federal Bank BOFI will not receive regulatory blessings before next year's tax season.

"We are extremely disappointed with this development," Bill Cobb, H&R Block's Chief Executive Oficcer said in a statement. "We remain committed to exiting our bank and forming a long-term relationship with BofI."

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H&R has been looking for strategic alternatives for its banking unit since 2012 following a rise in costs and stricter banking rules imposed by the U.S. Federal Reserve.

Monday's developments represents a second roadblock in its plans to sell its banking unit. In 2013, the company was forced to walk away from an agreement to sell its banking unit to Republic Bancorp after regulatory approval could not be obtained.

Shares of H&R were down about 5.1 percent at $30.05.