Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of bank-holding company BofI Holding (NASDAQ:BOFI) popped 10% today after agreeing to acquire the banking unit of tax preparer H&R Block (NYSE:HRB).

So what: BofI shares had pulled back sharply in recent weeks on concerns over slowing growth, but today's deal is quickly easing some of those worries. While financial terms weren't disclosed, BofI said that its expects ongoing annual revenue from H&R Block Bank of roughly $26 million to $28 million starting in fiscal 2015, giving analysts plenty of good vibes over its top-line trajectory.

Now what: The agreement remains subject to regulatory approvals and other customary closing conditions, but BofI seems confident that it'll get done. "We believe our nationwide low-cost branchless Bank is well aligned with H&R Block's desire to provide their clients with affordable banking products and services," said BofI President and CEO Greg Garrabrants. "Once approved and consummated, these H&R Block agreements should add to the strength and diversity of our deposit, lending and fee income businesses." More important, with BofI shares still off about 25% from its 52-week highs and trading at a reasonable price-to-book 3.5, there's plenty of room left to buy into that improvement. 

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Brian Pacampara has no position in any stocks mentioned. The Motley Fool recommends and owns shares of BofI Holding. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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