Attached files
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| 8-K - FORM 8-K - Axos Financial, Inc. | d8k.htm |
 LD
Micro Conference Los Angeles
December 9, 2010
Andrew Micheletti
Executive Vice President &
Chief Financial 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 September 30,
2010. 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:
111.8%
2
of
book;
6.18x
TTM
P/E
2
1.
Assumes
pushdown
of
existing
cash
of
$7M
from
Holding
company
to
Bank.
2. As
of
12/03/10
closing
price
of
$13.96
per
share.
Return on equity of 21.2% (Fiscal 2010) and 14.9% (QTD 9/10)
Efficiency ratio of 29.3% (Fiscal 2010) and 35.1% (QTD 9/10)
5-year asset growth of 18.4% (CAGR)
5-year deposit growth of 21.8% (CAGR)
Third highest ranking on SNL list of top performing thrifts (March 2010)
Bank Tier 1 Capital Ratio 8.57% / Tier 1 Risk-based Capital Ratio 13.88% at
9/30/10; Pro-forma
Tier
1
Capital
Ratio
of
9.03%
1
/
Tier
1
Risk-based
Capital
Ratio
of
14.63%
1
BofI
joins the Russell 3000 index on June 25, 2010
Recent
accretive
$15 million capital raise
1
2
3
4
5
6
7
8 |
 3
Corporate Profile
1. Quarter ended September 30, 2010 2. As of 12/03/10
closing price of $13.96 per share $1.5 billion asset savings and loan
holding
company
10 years operating history, publicly
traded on NASDAQ(BOFI) since
2005
Headquartered in single branch
location in San Diego, CA
31,000
deposit
and
loan
customers
117 employees ($13 million in assets
per
employee)
Market
Capitalization
of
$143
million
2
Price/Tangible Book Value =
111.8%
2
1
1
1 |
 4
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 |
 5
Primary Business –
Deposits
Deposit products
•
Deposit
base:
~$998M
1
•
Full-featured products
•
Self-service operations
•
Highly efficient operations
(10 CSRs; 28,000
accounts)
•
Deposit
base:
~$51M
1
•
Strong start in first full
year of operations
•
One dedicated employee
•
Significant expansion
opportunities
1. As of 10/31/2010 |
 6
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
–
Average LTV = 55.8%
•
10 high quality originators with
average experience of 15+ years
•
Highly ranked website-
apartmentbank.com
•
10-year history as portfolio bank
•
High credit quality
•
Year-to-date origination average
LTV of 58.1% and DSCR of
1.52%
•
Wide network of relationships
•
Significant due diligence experience
•
Over $1bn of closed transactions
•
Complex transaction structure
assistance
•
Highly creative and opportunistic |
 7
Loan Origination Group Production
Single Family –
Jumbo Portfolio
Multifamily –
Portfolio
33.3
26.1
Total
$120.0
45.3
66.0
$165.6
Single Family –
Gain on Sale
$60.6
$54.3
(In millions)
1. As of 10/31/2010
Pipeline¹
Q1-2011
Production |
 8
Our Business Model is More Profitable
Because Our Costs are Lower
Salaries and benefits
Premises and equipment
0.66
0.12
Other non-interest
expense
0.49
Total non-interest
expense
1.27
Core business margin
2.42
1.32
0.36
1.37
3.05
0.35
Net interest income
3.69
3.40
As % of average assets
BofI
(%)
Banks
$1-$10bn
(%)
1
2
1. Bank of Internet USA only for three months ended 9/30/10 - 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 9/30/10. Total of 421
institution $1-$10 billion. |
 9
Our Efficiency Ratio Consistently is One
of
the
Industry's
Lowest
Efficiency Ratio
(Bank of Internet USA, for the fiscal quarter ended)
61.17
30.67
31.39
29.21
30.63
0
20
40
60
80
(%)
Banks
1
Q1 ‘11
Q4 ‘10
Q3 ‘10
Q2 ’10
One of the lowest
rates in the
industry
1. Reported by FDIC – 421 commercial banks with $1-$10 billion in assets for the
quarter ended 9/30/10. Source: FDIC Statistics on Depository Institutions. All data excludes
holding companies for banks. |
 10
Best in Class Asset Quality
0.83
0.65
0
1
2
3
(%)
BofI
1
Bank $1-10bn
2
2.79
0.80
0
1
2
3
(%)
BofI
1
Bank $1-10bn
2
Assets 30-89 days delinquent
Assets in non-accrual
1. Bank of Internet USA only at 9/30/10 (excludes BofI Holding, Inc. to compare to FDIC
data). 2. Commercial banks by asset size. FDIC reported at 9/30/10. Total of 421
institutions $1-$10 billion. |
 11
Mortgage Loan Portfolio –
Years Seasoned
and Loan-to-Value
9/30/10
4.2
5.1
3.5
3.4
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
54
48
51
54
0
20
40
60
Percent
1. Based on current loan balance and collateral value at origination or
purchase. 1 |
 12
Loan Diversity –
September 30, 2010
Loan
Portfolio
100% = $893 mm
1. Gross loans before premiums, discounts and allowances.
Multifamily
SF residential
Home equity
Commercial
Consumer and other
35
5
46
4
10
1 |
 13
Deposits –
September 30, 2010
Deposits
(100% = $992 mm)
23
40
7
30
Time Deposits <$100K
Savings
Time Deposits >$100K
Demand |
 14
Recent Marketing Campaign |
 15
Marketing Campaigns |
 16
Technology Improvements In Process
Rollout in January of Online Financial Management
Solution
Key Features
Account Aggregation
Safe Interbank Transfers
Financial Management Reporting Tools
Expanded Cross-Sell Capabilities
Target Marketing (assuming consumer opt-in) |
 17
A Complete Financial Picture All From Our
Website
View
accounts
across
16,000+
institutions
Spending
Reports
Simplified
budgeting
tool
Alerts and
reminders for Bill
Payment
Calculate
your net
worth
17 |
 18
Home Page with Purchase Rewards
•
Solves the
most critical money
management tasks on first page:
Check balances and review recent
transactions
Make transfers
Pay bills
Review new and activated offers through
Purchase Rewards
View your spending
•
Extended cross-sell capabilities
from the
page where end users will do the majority
of their banking
•
Compel more end users to use the online
channel with this easy-to-use home page
*Note: The Make a Payment portal make look
slightly different based on the Bill Payment
vendor. |
 19
Investment Considerations
High-quality consumer franchise
Attractive valuation
Scalability
Strong credit quality
Significant earnings upside potential |
 20
Experienced Management Team
Senior Management Team
Greg Garrabrants
President and CEO
Andrew Micheletti
EVP & Chief Financial Officer
Background:
•
18+ years Finance /
Consulting / Banking
•
MBA, J.D., CFA
Previous experience:
•
McKinsey & Co
•
Major Savings Bank
•
Goldman Sachs
•
Deloitte & Touche
Background:
•
18+ years Finance /
Consulting / Banking
•
MBA, J.D., CFA
Previous experience:
•
McKinsey & Co
•
Major Savings Bank
•
Goldman Sachs
•
Deloitte & Touche
Background:
•
25+ years Financial
Services
•
CPA, BS Accounting
Previous experience:
•
LPL Financial; CFO
•
Telespectrum
•
Imperial Savings
•
Deloitte & Touche
Background:
•
25+ years Financial
Services
•
CPA, BS Accounting
Previous experience:
•
LPL Financial; CFO
•
Telespectrum
•
Imperial Savings
•
Deloitte & Touche
Thomas Constantine
EVP & Chief Credit Officer
Background:
•
23+ years Banking and
Financial Services
•
BA, Business Economics
Previous experience:
•
Office Of Thrift
Supervision (OTS)
•
George Elkins Mortgage
•
First Bank of Beverly Hills
Background:
•
23+ years Banking and
Financial Services
•
BA, Business Economics
Previous experience:
•
Office Of Thrift
Supervision (OTS)
•
George Elkins Mortgage
•
First Bank of Beverly Hills |
 21
Experienced Management Team
Adriaan
van Zyl
EVP & Chief Operating Officer
Background:
•
25+ years Financial
Services
•
MBA, B Com
Accounting
Previous experience:
•
Barclays Bank
•
NedBank
•
ADB Bank
Background:
•
25+ years Financial
Services
•
MBA, B Com
Accounting
Previous experience:
•
Barclays Bank
•
NedBank
•
ADB Bank
Senior Management Team
Jan Durrans
SVP, Deposit Operations
Morgan Ferris
SVP, Multifamily Lending
Background:
•
25+ years Banking and
Financial Services
Previous experience:
•
Major Savings Bank
•
National Australia Bank
Background:
•
25+ years Banking and
Financial Services
Previous experience:
•
Major Savings Bank
•
National Australia Bank
Background:
•
17+ years Financial
Services
•
MBA
Previous experience:
•
Washington Mutual
•
Marcus & Millichap
•
Commercial Capital
Background:
•
17+ years Financial
Services
•
MBA
Previous experience:
•
Washington Mutual
•
Marcus & Millichap
•
Commercial Capital |
 22
Senior Management Team
Jeffery Hurtik
SVP, Chief Information Officer
Jason Kenoyer
SVP, Wholesale Banking Division
Kristi Procopio
SVP, Chief Marketing Officer
Background:
•
20+ years Financial
Services
•
BA Economics
Previous experience:
•
Imperial Capital Bank
•
Prosum
Consulting
•
Perot Systems
Background:
•
20+ years Financial
Services
•
BA Economics
Previous experience:
•
Imperial Capital Bank
•
Prosum
Consulting
•
Perot Systems
Background:
•
10+ years Financial
Services
•
BA Finance
Previous experience:
•
Major Savings Bank
•
Giuliani & Co.
Background:
•
10+ years Financial
Services
•
BA Finance
Previous experience:
•
Major Savings Bank
•
Giuliani & Co.
Background:
•
15+ years Banking and
Financial Services
Previous experience:
•
Imperial Capital Bank
•
Property Sciences /
Commercial Lender
Magazine
Background:
•
15+ years Banking and
Financial Services
Previous experience:
•
Imperial Capital Bank
•
Property Sciences /
Commercial Lender
Magazine
Background:
•
10+ years Financial
Services
•
MBA, CMB, BS Business
Previous experience:
•
Bank of America
•
Irwin Union Bank
•
E-Loan
Background:
•
10+ years Financial
Services
•
MBA, CMB, BS Business
Previous experience:
•
Bank of America
•
Irwin Union Bank
•
E-Loan
Brian Swanson
SVP, Retail Lending |