While the sale of desktop units dropped by 2 percent, that was countered by an 18-percent rise in the sale of federal TurboTax Web units.There were 6.1 million desktop units sold, down from 6.2 million a year earlier. The Web total rose to 13.31 million units, up from 11.25 million.

The Block results also reflected the shift towards the Web. The number of digital tax returns, software and Web-based, fell by .6 percent, with a 6.1 percent declined in software-based returns. However, the company said that was due to its decision to exit "two unprofitable distribution channels." The number of online returns rose by 2.6 percent over the 2009 tax season.

Meanwhile, same-office returns, results for stores open more than one year, fell by 4 percent with retail returns off by 6.6 percent, even though the net average return fee per return rose by 1 percent. Fees from retail preparation dropped to $2.61 billion, a decline of 5.5 percent.

Block's performance improved in the second half of the tax season, the period from March 1 through April 15. A prepared statement from CEO Russ Smyth termed the results "a significant reduction of market share loss during the second-half of the tax season."

During that period, same office returns rose by .8 percent and total returns prepared by .3 percent. The shift from retail was again evident as retail-prepared returns fell by 1.7 percent while the number of digital tax returns rose by 5.9 percent.

Same-office tax returns prepared in retail operations increased 0.8 percent compared to the prior year, while total returns prepared grew by 0.3 percent.  Total retail returns prepared fell 1.7 percent and the net average retail fee per tax return declined by 1.2 percent over the prior year. Total digital tax returns prepared by H&R Block grew by 5.9 percent.

Republic Bancorp's results came despite the forced exit of Santa Barbara Bank & Trust from the refund loan market in December. Republic picked up half of the RAL business of Jackson Hewitt Tax Services and Liberty Tax, which had previously used Republic, moved all its business to that organization. Despite those changes, the number of sites offering RALs declined from 2009.

However, it was a more profitable business and fees for its Tax Refund Services segment rose to  $41.7 million for the first quarter ended March 31, up from $20.9 million in last year's corresponding period. Republic reported an 11-percent drop in fees charged for RALs, but the bank also significantly reduced payments to third parties who provide technology and services. Republic did not provide names, but it has made substantial payments in those areas to Jackson Hewitt.

The company also had lower losses on loans, lower-funding costs and a higher than average number of bank products per active location over the 2009 tax season. The provision for loan losses fell to $14 million for the most recently ended period, compared to $22 million in losses a year earlier. Republic said that stemmed largely from improved underwriting criteria. Interest expense on funding dropped to $1.4 million from $3.3 million. Meanwhile, it reported a sharp rise in income from Electronic Refund Checks and Electronic Refund Deposits. Those fees rose to $30.3 million, up 132 percent from a year ago.