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| 8-K - FORM 8-K - Axos Financial, Inc. | d8k.htm |
 B. Riley & Co.
12th Annual Investor
Conference
May 24, 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: 125.0%
of book; 9.15x TTM P/E
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)
Bank Tier 1 Capital Ratio 8.11% / Tier 1 Risk-based Capital Ratio 12.97% at
3/31/11; Pro-forma Tier 1 Capital Ratio of 8.51%
/ Tier 1 Risk-based Capital Ratio of 13.62%
BofI joins the Russell 3000 index on June 25, 2010
1
2
3
4
5
6
7
2
2
1. Assumes pushdown of existing cash of $7M from Holding company to Bank.
2. As of 5/02/11 closing price of $16.56 per share.
1
1 |
 3
Corporate Profile
1. Quarter ended March 31, 2011 2. As of 5/02/11 closing
price of $16.56 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
35,000 deposit and loan
customers
1
170 employees ($10 million in assets
per
employee)
1
Market Capitalization
of
$171
million
2
Price/Tangible Book
Value
=
125.0%
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
Primary Business –
Deposits
Deposit products
•
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 |
 6
Primary Businesses –
Lending
Lending
Single family
Multifamily
Capital
Markets
Gain-on-sale
Mortgage
Banking
Wholesale
Jumbo
Retail
Wholesale
Loan
purchases
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 |
 7
Loan Origination Group Production
Single Family –
Jumbo Portfolio
Multifamily –
Portfolio
73.6
78.7
Total
$175.6
138.7
107.8
$269.7
Single Family –
Gain on Sale
$23.3
$23.2
(In millions)
1. Applications in as of 3/31/2011
Pipeline
Q3-2011
Production
1 |
 8
Multi Family and Single Family Production are a
Reliable Asset Generation Platform for the Bank
($ Million)
($ Million)
Multifamily Loan Production
Single Family Jumbo |
 9
Our Business Model is More Profitable
Because Our Costs are Lower
Salaries and benefits
Premises and equipment
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
Net interest income
3.40
3.49
As % of average assets
BofI
1
(%)
Banks
$1-$10bn
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. |
 10
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
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. |
 11
Best in Class Asset Quality
0.83
0.27
0
1
2
3
(%)
BofI
Bank $1-10bn
2.66
1.01
0
1
2
3
(%)
BofI
Bank $1-10bn
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.
1
2
2
1
Assets 30-89 days delinquent
Assets in non-accrual |
 12
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
53
47
53
54
0
20
40
60
Percent
1. Based on current loan balance and collateral value at origination or
purchase. Weighted-average number of years since origination
Weighted-average loan-to-value
1 |
 Loan
Diversity – March 31, 2011
Loan Portfolio
1
100% = $1,126 mm
1. Gross loans before premiums, discounts and allowances
Multifamily
SF residential
Home equity
Commercial
Consumer and other
36
3
49
3
9
13 |
 14
Technology Improvements In Process
Completed Major Revisions to Online Banking
Key Features
Account Aggregation
Safe Interbank Transfers
Financial Management Reporting Tools
Expanded Cross-Sell Capabilities
Target Marketing (assuming consumer opt-in) |
 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
15 |
 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
16 |
 Mobile Banking
Enhanced Mobile Banking
Experience for Customers
Text Message Banking allows:
secure and convenient way to check account
balances
view latest transactions
receive low balance alerts
make fund transfers
Mobile Web provides:
secure access to account information and
recent transactions
the ability to conduct transactions and pay bills
through a mobile phone's web browser
17 |
 18
Investment Considerations
High-quality consumer franchise
Attractive valuation
Scalability
Strong credit quality
Significant earnings upside potential |