Axos Financial, Inc. · NYSE:AX
Axos Financial — BofI Holding — LD Micro Fifth Annual Conference 2012
26 slides from Axos Financial's conference presentation, Dec 5, 2012
Slide 1: BofI Holding, Inc. Investor Presentation
Document Contents Page 3 of 29 SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. BofI HOLDING, INC. Date: December 5, 2012 By: /s/ Michael R. Sisk Michael R
Slide 2: Safe Harbor
Document Contents Page 4 of 29 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 exp
Slide 3: Q1 Fiscal 2013 Financial Highlights
Document Contents Page 5 of 29 2 Q1 Fiscal 2013 Financial Highlights Q1 2013 vs. Q1 2012 $520.3 $358.8 $469.1 $376.3 82 bps $9.0 24.8% 24.0% 32.5% 109.7% 2 bps 37.6% Asset growth Deposit growth Loan portfolio growth Loan origination growth Non-performing assets to total assets Q1 Net Income Amount (
Slide 4: BofI Consistently Ranked among the Best of the Biggest Thrifts by SNL
Document Contents Page 6 of 29 3 BofI is Consistently Ranked among the Best of the Biggest Thrifts by SNL Financial … BofI Holding, Inc. (BOFI) 2 CA 127.12 1,736 1.29 15.44 15.16 39.43 1.51 0.45 BofI Holding, Inc. (BOFI) 3 5 CA 89.40 1,401.1 1.16 15.87 13.14 32.23 1.21 0.80 2010 The Best of the Bigg
Slide 5: Top Performer among All Public Banks and Thrifts
Document Contents Page 7 of 29 4 … and is also a Top Performer among the Broader Universe of All Public Banks and Thrifts 2012 rank 2011 rank Total assets ($000) 2011 ROAE (%) 2011 ROAA (%) Non-interest income/total revenue (%) Capital ratio (%) Efficiency ratio (%) Non- performing loans/total loans
Slide 6: BofI is a Top Quartile Performer Versus Bank Peer Group
Document Contents Page 8 of 29 5 BofI is a Top Quartile Performer Versus Bank Peer Group BofI Federal Bank Peer Group Percentile ROAA 1.54% 0.80% 88% Return on equity 17.97% 6.57% 94% G&A 1.56% 2.72% 16% Efficiency ratio 33.47% 66.34% 4% Note: Peer group is all savings banks with assets greater than
Slide 7: Our Business Model is More Profitable Because Our Costs are Lower
Document Contents Page 9 of 29 6 Our Business Model is More Profitable Because Our Costs are Lower… Salaries and benefits Premises and equipment BofI1 (%) 0.87 0.14 Other non-interest expense 0.66 Total non-interest expense 1.67 Core business margin 2.02 1.53 0.37 1.27 3.17 0.43 Banks $1-$10bn2 (%)
Slide 8: Efficiency Ratio One Of The Industry's Lowest
Document Contents Page 10 of 29 7 Efficiency Ratio (BofI Federal Bank, for the fiscal quarter ended) 32.62 32.74 34.85 63.11 0 20 40 60 80 (%) Banks1 Q1 ‘13 Q4 ‘12 Q3 ’12 One of the lowest rates in the industry 1. Reported by FDIC – 437 commercial banks with $1-$10 billion in assets for the quarter
Slide 9: Well Capitalized for Growth
Document Contents Page 11 of 29 8 Deploy Existing Capital $312 million Bank Assets $2,616,000,000 4,000 1,000 2,000 3,000 0 Leverage Earnings $3,384,000,000 $456 million Possible Bank Assets Well Capitalized for Growth 12-month Growth with Existing Capital and Annualized Q1 Earnings • Tier 1 Capital
Slide 10: Corporate Profile and Vision
Document Contents Page 12 of 29 9 Corporate Profile and Vision $2.6 billion asset savings and loan holding company1 12-year operating history, publicly traded on NASDAQ (BOFI) since 2005 Headquartered in single branch location in San Diego, CA 38,000 deposit and loan customers1 261 employees ($10 mi
Slide 11: Diversified Branchless Customer Acquisition Channels
Document Contents Page 13 of 29 10 Diversified Branchless Customer Acquisition Channels Co n s u m e r o n lin e b ra n d s Description • Value-oriented consumer • High-end/older demographic • Airline rewards oriented • Wider demographic • Business checking • Products tailored to financial planning
Slide 12: Preference Toward Delivery has Shifted Rapidly Toward the Internet
Document Contents Page 14 of 29 11 Preference Toward Delivery has Shifted Rapidly Toward the Internet Over the Last Four Years Preferred Banking Method (2011) Preferred Banking Method (2007) Other 20% ATM 21% Branches 36% Internet Banking 23% Other 10% ATM 8% Branches 20% Internet Banking 62% Source
Slide 13: Need For Branches to Deposit Checks Dropping Quickly
Document Contents Page 15 of 29 12 With the Need For Branches to Deposit Checks Dropping Quickly Avg. deposits per day per branch 250 50 0 2012 2010 2014 300 100 150 2008 200 2006 Check decline only With RDC • 45% decline from 2006 to 2011 • Additional decline by 2014 of 90% with Remote Deposit Capt
Slide 14: Branch Traffic has Declined Approximately 4.0% per Year
Document Contents Page 16 of 29 13 Branch Traffic has Declined Approximately 4.0% per Year for an Aggregated Decline of 90% Over the Last 16 Years Source: FMSI 2011 Teller Line Study; ICBA Independent Banker Magazine, March 2011 "Branch foot-traffic is plummeting and branches are largely idle, excep
Slide 15: Branch Banks are Losing Sources of Revenue that Supported Free Checking
Document Contents Page 17 of 29 14 Branch Banks are Losing Sources of Revenue that Supported "Free" Checking Interchange Income Average Transaction Fee Bank Service Charges 0.4 0.2 0.0 -55% Post-Durbin 0.21 Pre-Durbin 0.44 Cents 0.6 $ Billions 2.70 2 1 Q4 2009 3 0 -20% Q4 2010 2.30 • Interchange is
Slide 16: Banks over $50 Billion Offering Free Checking Dropped Sharply
Document Contents Page 18 of 29 15 Banks over $50 Billion Dollars In Assets Offering Free Checking Dropped to Less than 35% from 96% in One Year Source: American Banker 80 Thousands 60 20 2010 100 40 0 34.8% 2009 96.0% -61.2% Represents a secular trend toward less competitive products at banks with
Slide 17: Enhanced Value Proposition For Deposit Customers
Document Contents Page 19 of 29 16 Enhanced Value Proposition For Deposit Customers Product Customer Service Platform Features • Free checking with unlimited ATM reimbursement • Rate rewards features • Merchant/purchase rewards • Enhanced call center representatives training • Call center representa
Slide 18: CNN Money Highlighted the Bank's Checking Account
Document Contents Page 20 of 29 17 CNN Money Recently Highlighted the Bank’s Checking Account in Its Article Describing the Bank as “One of 7 Banks That Is Still Awesome” Note: Information as of October 2011 http://snlwww2/documents/showFile.aspx?KeyFile=15583069&KeyDoc=16578243 12/7/2012
Slide 19: Key Areas of Growth
Document Contents Page 21 of 29 18 Key Areas of Growth Growth: 09/11-09/12 Checking balance 107.94% MMS balance 157.46% Savings balance 42.50% CD balance -42.47% Transaction account balance 140.64% Gen Y (1978-1994) 35.19% of accounts, 14.94% of account bal Gen X (1965-1977) 13.17% of accounts, 39.5
Slide 20: Primary Business – Lending
Document Contents Page 22 of 29 19 Primary Business – Lending 1. Percent of total originations and purchases for quarter ended September 30, 2012 Lending Single family Multifamily Capital Markets Gain-on-sale Mortgage Banking Wholesale Jumbo Retail Wholesale Loan Purchases and Sales Loan Origination
Slide 21: Rapid Asset Growth Driven by Organic Loan Production
Document Contents Page 23 of 29 20 Our Rapid Asset Growth has been Driven by Strong and Profitable Organic Loan Production Loan Portfolio – End of Last Five Quarters 1,000,000 2,000,000 1,443,860 1,500,000 500,000 0 Q1 2013 Q4 2012 1,526,523 Q3 2012 1,595,704 Q2 2012 1,720,563 Q1 2012 1,912,999 Mult
Slide 22: Loan Origination Group Production Year over Year
Document Contents Page 24 of 29 21 Loan Origination Group Production Year over Year 1. Applications in as of 11/05/12 Q1-2013 Q1-2012 ($ Millions) Production Production Pipeline1 Single Family – Gain on Sale $186.9 $90.4 $125.7 Single Family – Jumbo Portfolio 167.5 125.8 272.2 Single Family – Wareho
Slide 23: Best in Class Asset Quality
Document Contents Page 25 of 29 22 1.03 3.09 0 1 2 3 4 (%) BofI1 Banks $1-10 bn Non-current (30 days+) loans to total loans1 Assets in non-accrual to total assets1 0.79 1.42 0 1 2 3 4 (%) BofI1 Bank $1-10 bn 1. As reported in FDIC SDI report at 9/30/12. Total of 437 institutions included in the $1-$
Slide 24: Loan Diversity – September 30, 2012
Document Contents Page 26 of 29 23 Loan Portfolio1 100% = $1,937 Million 52 1 38 2 7 Multifamily SF residential Home equity Commercial Consumer and other 1. Gross loans before premiums, discounts and allowances Loan Diversity – September 30, 2012 http://snlwww2/documents/showFile.aspx?KeyFile=155830
Slide 25: Investment Summary
Document Contents Page 27 of 29 24 Full service branchless banking platform with structural cost advantages vs. traditional banks Superior growth and ROE relative to large and small competitors Solid track record of allocating capital to businesses with best risk-adjusted returns New business initia
Slide 26: Contact Information
Document Contents Page 28 of 29 25 COMPANY Greg Garrabrants, President and CEO BofI Holding, Inc. Phone: +1-858-350-6203 greg.garrabants@bofifederalbank.com www.bofiholding.com Investor Relations Mark A. McPartland, Senior Vice President MZ Group Phone: +1-646-593-7140 Mobile: +1-910-297-6442 markmc