Axos Financial, Inc. · NYSE:AX
Axos Financial — BofI Holding — Shareholder Meeting (October 2008)
16 slides from Axos Financial's shareholder meeting presentation, Oct 21, 2008
Slide 1: Overview of Bank of Internet
Deposit Products Online Retail Loan Origination Overview of Bank of Internet Highly efficient operations (8 CSRs; 25,000 accounts) Full-featured products Online loan origination platform – Multifamily – First trust deeds (in process) – Home equity – Other consumer loans (e.g., auto, R.V.) Self-servi
Slide 2: BofI Logo Redesign
BofI Logo Redesign
Slide 3: Online Checking Accounts
—_ bankofinternet Online Checking Accounts ‘compare Our one Checklna Account Against the Compton! Bongot tert everything aoe serch in eons vw 41S) SIS bankofinternet _ a
Slide 4: Increased Total Checking/Savings and MMS Accounts and Average Checking Balance
112% Increase 256% Increase $7,676 $27,333 $0 $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 $69 $146 $0 $20 $40 $60 $80 $100 $120 $140 $160 Increased Total Checking/Savings and MMS Accounts and Average Checking Account Balance Checking & Savings Balances ($ in mm) ($ in mm) Avg Checking Account Bal
Slide 5: Overview of Bank of Internet
Deposit Products Online Retail Loan Origination Overview of Bank of Internet Highly efficient operations (8 CSRs; 25,000 accounts) Full-featured products Online loan origination platform – Multifamily – First trust deeds (in process) – Home equity – Other consumer loans (e.g., auto, R.V.) Self-servi
Slide 6: Online loan pre-qualification screen
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Slide 7: Wholesale Banking Servicing
Wholesale Banking Servicing Overview of Bank of Internet Wholesale banking – Attractively-valued investment grade securities – Whole loan purchases (servicing released or retained) Wide network of seller relationships Significant due diligence experience Strong track record Experience across multipl
Slide 8: Wholesale Banking Servicing
Wholesale Banking Servicing Overview of Bank of Internet Wholesale banking – Attractively-valued investment grade securities – Whole loan purchases (servicing released or retained) Wide network of seller relationships Significant due diligence experience Strong track record Experience across multipl
Slide 9: Our Core Net Interest Margin Improved Dramatically
Increased by 118bps in 3 quarters 1.24% 1.34% 1.76% 2.42% 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% Q1'08 Q2'08 Q3'08 Q4'08 Our Core Net Interest Margin Improved Dramatically 2008FY – Net Interest Margin
Slide 10: And Our Efficiency Ratio Improved Dramatically
One of the lowest ratios in the industry 56.99% 56.94% 54.96% 30.28% 57.81% 0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% 70.00% Q1'08 Q2'08 Q3'08 Q4'08 Banks(1) And Our Efficiency Ratio Improved Dramatically 2008FY – Efficiency Ratio Source: FDIC statistics on depository institutions. All data ex
Slide 11: Resulting In Record Net After-Tax Income and Return On Equity
$747 $651 $1,018 $1,780 $2,370 $0 $500 $1,000 $1,500 $2,000 $2,500 Q1'08 Q2'08 Q3'08 Q4'08 Q4'08(1) Resulting In Record Net After-Tax Income and Return On Equity ($ in 000s) 1. Q4’08 excludes $1mm pre-tax write-down of Fannie Mae preferred stock Return On Equity 3.92% 3.24% 5.10% 9.20% 12.38% (1)
Slide 12: Comparison With Our Competitors Indicates The Power Of Our Low-Cost Business Model
A Comparison With Our Competitors Indicates The Power Of Our Low-Cost Business Model Salaries and Benefits Premises and Equipment Source: FDIC statistics on depository institutions for quarter-ended 6/30/08. All data excludes holding companies for banks. 1. Total of 548 institutions with $0.5-$1 bil
Slide 13: Our Credit Quality Is Best-In-Class
Our Credit Quality Is Best-In-Class Assets 30-89 days delinquent Assets >90 days delinquent Bank of Internet Banks $1-$10bn (1) Assets In Non-Accrual Banks $0.5-$1bn (1) Source: FDIC statistics on depository institutions 6/30/08. All data excludes holding companies for banks. 1. Total of 548 institu
Slide 14: Credit Underwriting Guidelines Tightened For R.V. Loans Reducing Losses
-1% 0% 1% 2% 3% Mar-07 May-07 Jul-07 Sep-07 Nov-07 Jan-08 Mar-08 May-08 Jul-08 Credit Underwriting Guidelines Were Significantly Tightened For R.V. Loans Reducing Losses No losses on RV loans originated since August 2007 Net Loss By Vintage
Slide 15: BofI's Stock Performed Well On A Relative Basis
-90% -80% -70% -60% -50% -40% -30% -20% -10% 0% 10% 20% 30% Oct-07 Nov-07 Dec-07 Jan-08 Feb-08 Mar-08 Apr-08 May-08 Jun-08 Jul-08 Aug-08 Sep-08 BOFI C DSL JPM IMP GS WFC Although BofI’s Stock Performed Well On A Relative Basis, Its Improved Core Operating Results Have Not Been Reflected In Its Share
Slide 16: Investment Considerations
Investment Considerations High-Quality Consumer Franchise Attractive Valuation Scalability Strong Credit Quality Significant Earnings Upside Potential