The proposed transaction, whose financial terms remained undisclosed, will not affect HRBB’s sole banking center location in Kansas City, Missouri.
Currently RB&T and H&R Block and its affiliates are discussing to ink a joint marketing master services agreement (MSA) and a related receivables purchase agreement (RPA), under which RB&T would provide H&R Block-branded financial services products to its customers.
Based on the terms of the agreement, RB&T will purchase HRBB non-cash assets estimated to be at nearly $3m at closing, as well as the acquirer will assume about $470m in projected customer deposits.
The $467m net amount of projected non-cash deposits, from which projected assets will be deducted will be reimbursed in cash by HRBB to RB&T at closing.
Pending approvals from various regulatory bodies, the transaction is likely to complete by 30 September 2013 and if any regulatory approvals are obtained after this date, the transaction will close between 30 April 2014 and 18 June 2014.
RB&T has hired JP Morgan Securities to act as financial advisor for the above deal, while Goodwin Procter will offer legal counseling.
Headquartered in Louisville, Kentucky, US, Republic Bancorp operates as a bank holding company and manages Republic Bank & Trust Company and Republic Bank.
