Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - Axos Financial, Inc. | d8k.htm |
 KBW
Community Bank Investor Conference
August 2, 2011
Greg Garrabrants
President &
Chief Executive Officer
Exhibit 99.1 |
 1
Safe Harbor
This presentation contains forward-looking
statements within the meaning of the Private
Securities Litigation Reform Act of 1995 (the
“Reform
Act”).
The
words
“believe,”
“expect,”
“anticipate,”
“estimate,”
“project,”
or the
negation thereof or similar expressions
constitute forward-looking statements within
the meaning of the Reform Act. These
statements may include, but are not limited
to, projections of revenues, income or loss,
estimates of capital expenditures, plans for
future operations, products or services, and
financing needs or plans, as well as
assumptions relating to these matters. Such
statements involve risks, uncertainties and
other factors that may cause actual results, performance or achievements of the
Company and its subsidiaries
to
be
materially
different
from
any
future
results,
performance
or
achievements
expressed
or
implied
by
such
forward-looking
statements.
For
a
discussion
of
these
factors,
we
refer
you
to
the
Company's reports filed with the Securities and Exchange Commission, including its
Annual Report on Form 10-K for the year ended June 30, 2010 and its
Earnings Report on Form 10-Q for the quarter ended
March
31,
2011.
In
light
of
the
significant
uncertainties
inherent
in
the
forward-looking
statements
included
herein,
the
inclusion
of
such
information
should
not
be
regarded
as
a
representation
by
the
Company
or
by
any
other
person
or
entity
that
the
objectives
and
plans
of
the
Company
will
be
achieved. For all forward-looking statements, the Company claims the
protection of the safe-harbor for forward-looking statements
contained in the Reform Act. |
 2
Key Accomplishments
Common
stock
currently
trading
at:
112.5%
of
book;
8.23x
TTM
P/E
2
1.
Based
on
nine-months
ended
3/31/2011
-
annualized.
2. As of 7/22/11 closing price of $14.90 per share, book value and earnings at
March 31, 2011. Return on equity of 15.0% (YTD 3/11)
Efficiency ratio of 39.3% (YTD 3/11)
5-year asset growth of 18.4% (CAGR) 6/30/2010
5-year deposit growth of 21.8% (CAGR) 6/30/2010
Third highest ranking on SNL list of top performing thrifts (March 2010)
Top
4
community
bank-based
upon
2-year
ROE
Top 30 community bank-based upon 3-year ROE
1
2
3
4
5
6
7
BofI joins the Russell 3000 index on June 25, 2010
8
1
2 |
 3
Corporate Profile
1. Quarter ended March 31, 2011 2. As of 7/22/11 closing
price of $14.90 per share. Book value at March 31, 2011. $1.7 billion
asset savings and loan holding company
1
10 years operating history, publicly
traded on NASDAQ(BOFI) since 2005
Headquartered in single branch
location in San Diego, CA
35,000 deposit and loan customers
1
170 employees ($10 million in assets
per employee)
1
Market Capitalization of $156 million
2
Price/Tangible Book Value = 112.5%
2 |
 The
Best of the Biggest – The 100 Largest
Public Thrifts by Asset Size
BofI Holding, Inc. (BOFI)
3
5
CA
89.40
1,401.1
1.16
15.87
13.14
32.23
1.21
0.80
4 |
 5
30
Asset growth (%)
Average Asset Growth
Top 26
BofI Asset Growth for
March 31, 2011
13.8
10
50
0
20
40
60
23.9
BofI is Number 27th on the 3-Year
Average ROE Listing¹...
... But BofI has Achieved Higher Asset
Growth and Maintained its ROE
1.
Source: SNL Survey Data as of 12/31/10.
2.
Based upon asset growth between March 31, 2010 and March 31, 2011.
Top Community Banks
1
2 |
 BofI
is 27th on the 3-Year Average ROE Listing ...
BofI is 4th on the 2-Year Average ROE
Listing
...
BofI Holding (BOFI)
San Diego, CA
1,660.84
157.53
1.
Source: SNL Survey Data as of 12/31/10.
2.
Based
upon
Fiscal
2011
nine
months
annualized
and
Fiscal
2010
results
for
BofI
compared
to
the
26
banks
that
ranked
higher
than
BofI
in
the
SNL
survey
prepared
Top Community Banks
1
2
for the three years ended 12/31/10.
6 |
 Primary
Business – Deposits
•
Deposit base: ~$1,191M
•
Full-featured products
•
Self-service operations
•
Highly efficient operations
(9 CSRs; 31,000
accounts)
•
Deposit base: ~$75M
•
Strong start in first full
year of operations
•
One dedicated employee
•
Significant expansion
opportunities
1. Bank as of 3/31/2011
1
1
Deposit products
7 |
 8
Primary Businesses –
Lending
Lending
Single family
Multifamily
Wholesale
banking
Gain-on-sale
Mortgage
Banking
Wholesale
Jumbo
Retail
Wholesale
Bank loan
purchase
Special
situations
•
Internet-focused lend sources
•
Self-service operation
•
Low-fixed costs
•
High-end portfolio lender
–
“Common Sense"
underwriting
–
Quarter to date average LTV
of 52.9%
•
15 high quality originators with
average experience of 15+ years
•
Highly ranked website-
apartmentbank.com
•
10-year history as portfolio bank
•
High credit quality
•
Quarter to date average LTV of
58.0% and DSCR of 1.48%
•
Wide network of relationships
•
Significant due diligence experience
•
Over $1bn of closed transactions
•
Complex transaction structure
assistance
•
Highly creative and opportunistic |
 9
Loan Origination Group Production
Single Family –
Jumbo Portfolio
Multifamily –
Portfolio
73.6
78.7
Total
$175.6
154.5
100.2
$274.5
Single Family –
Gain on Sale
$23.3
$19.8
(In millions)
1. Applications in as of 6/30/2011
Q3-2011
Production
Pipeline
1 |
 10
Multi Family and Single Family Production are a
Reliable Asset Generation Platform for the Bank
($ Million)
Q1
Q2
($ Million)
Q1
Q2
Q3
Q3
0
10
20
30
40
50
60
70
80
0
10
20
30
40
50
60
70
80
$27
$74
$78
$29
$53
$74
Multifamily Loan Production
Single Family Jumbo |
 11
Our Business Model is More Profitable
Because Our Costs are Lower …
Salaries and benefits
Premises and equipment
BofI
(%)
0.77
0.15
Other non-interest
expense
0.53
Total non-interest
expense
1.45
Core business margin
2.13
1.37
0.37
1.28
3.02
0.54
Banks
$1-$10bn
(%)
Net interest income
3.58
3.56
As % of average assets
1
2
1.
Bank of Internet USA only for three months ended 3/31/11 - the most recent data on FDIC website
“Statistics on Depository Institutions Report.” Excludes BofI Holding company
to compare to FDIC data.
2.
Commercial banks by asset size. FDIC reported for three months ended 3/31/11. Total of 431
institutions $1-$10 billion.
|
 12
Efficiency Ratio
(Bank of Internet USA, for the fiscal quarter ended)
61.50
40.11
34.49
30.67
31.39
0
20
40
60
80
(%)
Banks
Q3 ‘11
Q2 ‘11
Q1 ‘11
Q4 ’10
One of the lowest
rates in the
industry
…
Resulting In An Efficiency Ratio That Is
Consistently One of the Industry’s
Lowest
1
1.
Reported by FDIC – 431 commercial banks with $1-$10 billion in assets for the quarter ended
3/31/11.
Source: FDIC Statistics on Depository Institutions. All data excludes holding companies for
banks. |
 13
0.84
0.35
0
1
2
3
(%)
BofI
Bank $1-10bn
2.46
0.42
0
1
2
3
(%)
BofI
Bank $1-10bn
1.
Bank of Internet USA only at 3/31/11 (excludes BofI Holding, Inc. to compare to
FDIC data). 2.
Commercial banks by asset size. FDIC reported at 3/31/11. Total of 431 institutions
$1-$10 billion. Best in Class Asset Quality
2
1
1
2
Assets 30-89 days delinquent
Assets in non-accrual |
 14
Mortgage Loan Portfolio –
Years Seasoned
and Loan-to-Value
3/31/11
3.4
4.1
3.8
4.1
0
1
2
3
4
5
6
Single Family
Multifamily
Commercial
Home Equity
Weighted-average
number
of
years
since
origination
Weighted-average loan-to-value
53
47
53
54
0
20
40
60
Percent
1. Based on current loan balance and collateral value at origination or
purchase. 1 |
 15
Investment Considerations
High-quality consumer franchise
Attractive valuation
Scalability
Strong credit quality
Significant earnings upside potential |