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| 8-K - FORM 8-K - Axos Financial, Inc. | d8k.htm |
 Sandler O’Neill & Partners, L.P.
West Coast
Financial Services Conference
Marina del Rey
March 8, 2011
Andy Micheletti
Executive Vice President and
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 December 31,
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. |
 Key
Accomplishments Common stock currently trading at: 116.2%
2
of book; 7.17x TTM P/E
2
Return on equity of 15.1% (YTD 12/10)
Efficiency ratio of 37.1% (YTD 12/10)
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 8.10% / Tier 1 Risk-based Capital Ratio 13.18% at
12/30/10; Pro-forma
Tier
1
Capital
Ratio
of
8.52%
1
/
Tier
1
Risk-based
Capital
Ratio
of
13.87%
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
2
1. Assumes pushdown of existing cash of $7M from Holding company to Bank.
2. As of 2/25/11 closing price of $15.05 per share.
|
 3
Corporate Profile
1. Quarter ended December 31, 2010 2. As of 2/25/11 closing
price of $15.05 per share $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
33,000 deposit and loan customers
1
140 employees ($12 million in assets
per employee)
1
Market Capitalization of $154 million
2
Price/Tangible Book Value =
116.2%
2 |
 4
Primary Business –
Deposits
Deposit products
•
Deposit
base:
~$1,061M
•
Full-featured products
•
Self-service operations
•
Highly efficient operations
(12 CSRs; 29,000
accounts)
•
Deposit
base:
~$55M
•
Strong start in first full
year of operations
•
One dedicated employee
•
Significant expansion
opportunities
1. Bank as of 12/31/2010
1
1 |
 5
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 = 56.9%
•
13 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 59.3% 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 |
 6
Multi Family and Single Family Production are a
Reliable Asset Generation Platform for the Bank
$74
$27
0
10
20
30
40
50
60
70
80
($ Million)
Q1
Q2
$53
$29
0
10
20
30
40
50
60
($ Million)
Q1
Q2
Pipeline [$mil] $66.0
$94.0
[10-31-10]
[1-31-11]
Pipeline [$mil] $45.3
$89.4
[10-31-10]
[1-31-11]
Multifamily Loan Production
Single Family Jumbo |
 7
Our Business Model is More Profitable
Because Our Costs are Lower
Salaries and benefits
Premises and equipment
BofI
(%)
0.77
0.13
Other non-interest
expense
0.41
Total non-interest
expense
1.31
Core business margin
2.09
1.35
0.37
1.55
3.27
0.22
Banks
$1-$10bn
(%)
Net interest income
3.40
3.49
As % of average assets
1
2
1. Bank of Internet USA only for three months ended 12/31/10 - 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 12/31/10. Total of 424
institutions $1-$10 billion. |
 8
Our Efficiency Ratio Consistently is One
of the Industry's Lowest
Efficiency Ratio
(Bank of Internet USA, for the fiscal quarter ended)
63.24
34.49
30.67
31.39
29.21
0
20
40
60
80
(%)
Banks
Q2 ‘11
Q1 ‘11
Q4 ‘10
Q3 ’10
One of the lowest
rates in the
industry
1. Reported by FDIC – 424 commercial banks with $1-$10 billion in assets for the
quarter ended 12/31/10. Source: FDIC Statistics on Depository Institutions. All data excludes
holding companies for banks. 1 |
 9
Best in Class Asset Quality
0.83
0.27
0
1
2
3
(%)
BofI
1
Bank $1-10bn
2
Assets 30-89 days delinquent
Assets in non-accrual
2.66
1.01
0
1
2
3
(%)
BofI
1
Bank $1-10bn
2
1. Bank of Internet USA only at 12/31/10 (excludes BofI Holding, Inc. to
compare to FDIC data). 2. Commercial banks by asset size. FDIC reported at 12/31/10. Total of 424
institutions $1-$10 billion. |
 10
Mortgage Loan Portfolio –
Years Seasoned
and Loan-to-Value
12/31/10
3.7
4.4
3.5
3.7
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
52
55
0
20
40
60
Percent
1. Based on current loan balance and collateral value at origination or
purchase. 1 |
 11
Loan Diversity –
December 31, 2010
Loan Portfolio
1
100% = $1,108 mm
Multifamily
SF residential
Home equity
Commercial
Consumer and other
48
4
9
4
35
1. Gross loans before premiums, discounts and allowances
|