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An arbitrator will hear arguments this summer about Jackson Hewitt Tax Service's termination of its contract with Republic Bank & Trust. Jackson Hewitt ended the agreement because Republic could no longer provide Refund Anticipation Loans to its customers. Liberty Tax Service also cancelled its pact for the same reason but is not involved in litigation with the Louisville, Ky.-based bank.

The end of the RAL business has already cost Republic a lot of money. It had RAL revenue of $45 million in 2012. But that program ended as lawsuit by the Federal Deposit Insurance Corp., forced Republic to stop funding RALs when tax season 2012 ended. Republic was the last bank left to provide the loans.

Republic Bancorp said its contract called for it to provide refund transfer services for Jackson Hewitt's customers and that there was no cause for cancellation of the contract. RALs had provided a majority of the company's net income for its Tax Refund Services division. For 2012, 2011 and 2010, about 51 percent, 72 percent and 68 percent of the company's net income came from the TRS division. Jackson Hewitt produced 59 percent, 60 percent and 63 percent of TRS gross revenue for the same years.

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