Axos Financial, Inc. · NYSE:AX
Axos Financial — BofI Holding — 2011 Southern California Investor Conference
17 slides from Axos Financial's conference presentation, Aug 25, 2011
Slide 1: 2011 Southern California Investor Conference
2011 Southern California Investor Conference August 29, 2011 Greg Garrabrants President & Chief Executive Officer Exhibit 99.2
Slide 2: Safe Harbor
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-looki
Slide 3: Key Accomplishments
1 2 3 4 5 6 8 9 7 Key Accomplishments Return on equity of 15.2% for Fiscal 2011, 15.6% for Q4 '11 Efficiency ratio of 39.9% for Fiscal 2011, 41.6% for Q4 '11 Common stock currently trading at: 105.5% of book; 7.71x TTM P/E 5-year asset growth of 21.3% (CAGR); Fiscal year asset growth of 36.5% 5-year
Slide 4: Corporate Profile
Corporate Profile $2.0 billion asset savings and loan holding company 11 years operating history, publicly traded on NASDAQ(BOFI) since Headquartered in single branch location in San Diego, CA 36,000 deposit and loan customers 190 employees ($10 million in assets per employee) Market Capitalization
Slide 5: The Best of the Biggest – The Largest Public Thrifts by Asset Size
The Best of the Biggest – The 100 Largest Public Thrifts by Asset Size BofI Holding, Inc. (BOFI) CA 127.12 1,736 1.29 15.44 15.16 39.43 1.51 0.45
Slide 6: Asset growth (%)
Asset growth (%) BofI is Number 27th on the 3-Year Average ROE Listing ... ... But BofI has Achieved Higher Asset Growth and Maintained its ROE Source: SNL Survey Data as of 12/31/10. Based upon preliminary results for BofI through 6/30/11. Top Community Banks Average Asset Growth Top BofI Asset Gro
Slide 7: BofI is 27th on the 3-Year Average ROE
BofI is 27th on the 3-Year Average ROE Listing ... BofI is 4th on the 2-Year Average ROE Listing ... BofI Holding (BOFI) San Diego, CA 1,660.84 157.53 Source: SNL Survey Data as of 12/31/10. Based upon Fiscal and Fiscal results for BofI compared to the banks that ranked higher than BofI in the SNL s
Slide 8: 2011 Fourth Quarter Highlights
2011 Fourth Quarter Highlights Amount ($M or %) Increase (%) $5.5 $1.1 $204.1 $74.5 $126.6 15.6 % 5.1 7.3 11.8 5.9 72.1 40 bps Q4 vs. Q3 Fiscal Year $519.2 $372.1 $636.2 36.5 38.4 335.7 Net income Net interest income growth Asset growth Deposit growth Loan origination growth Return on equity Asset g
Slide 9: Primary Business – Deposits
Deposit products • Deposit base: ~$1,239M • Full-featured products • Self-service operations • Highly efficient operations (9 CSRs; 32,000 accounts) • Deposit base: ~$101M • Strong start in first full year of operations • One dedicated employee • Significant expansion opportunities Bank as of 6/30/1
Slide 10: Primary Business – 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 av
Slide 11: Loan Origination Group Production
Loan Origination Group Production Single Family – Jumbo Portfolio Multifamily – Portfolio 141.3 105.6 Total $300.8 154.5 100.2 $274.5 Single Family – Gain on Sale $53.9 $19.8 (In millions) 1. Applications in as of 6/30/2011 Q4-2011 Production Pipeline
Slide 12: Multi Family and Single Family Production Are a Reliable Asset Generation Platform
Q4 Q2 Q1 Q3 ($M) Q1 Q2 Q4 Q3 ($M) Multi Family and Single Family Production are a Reliable Asset Generation Platform for the Bank Multifamily Loan Production (year ended 6/30/11) Single Family Jumbo (year ended 6/30/11)
Slide 13: Our Rapid Asset Growth Has Been Driven by Strong and Profitable Organic Loan Production
Our Rapid Asset Growth Has Been Driven by Strong and Profitable Organic Loan Production Loan Portfolio 2011FY Q4 2010 Q4 2011 $1,003,250 Q1 2011 1,000,000 $774,899 $1,113,813 500,000 1,500,000 Q2 2011 $876,934 Q3 2011 Multifamily Avg LTV Single family Avg LTV 52% 51% 52% 53% 54% 53% 54% 54% 54% 54%
Slide 14: Our Business Model is More Profitable Because Our Costs are Lower
Our Business Model is More Profitable Because Our Costs are Lower … Salaries and benefits Premises and equipment BofI (%) 0.77 0.15 Other non-interest expense 0.53 Total non-interest expense 1.45 Core business margin 2.13 1.37 0.37 1.28 3.02 0.54 Banks $1-$10bn (%) Net interest income 3.58 3.56 As %
Slide 15: Efficiency Ratio
Efficiency Ratio (Bank of Internet USA, for the fiscal quarter ended) 61.50 40.11 34.49 30.67 31.39 (%) Banks Q3 ‘11 Q2 ‘11 Q1 ‘11 Q4 ’10 One of the lowest rates in the industry … Resulting In An Efficiency Ratio That Is Consistently One of the Industry’s Lowest 1. Reported by FDIC – 431 commercial
Slide 16: Best in Class Asset Quality
0.84 0.35 (%) BofI Bank $1-10bn Assets 30-89 days delinquent Assets in non-accrual 2.46 0.42 (%) BofI Bank $1-10bn Bank of Internet USA only at 3/31/11 (excludes BofI Holding, Inc. to compare to FDIC data). Commercial banks by asset size. FDIC reported at 3/31/11. Total of 431 institutions $1-$10 bi
Slide 17: Investment Considerations
Investment Considerations High-quality consumer franchise Attractive valuation Scalability Strong credit quality Significant earnings upside potential
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