Axos Financial, Inc. · NYSE:AX
Axos Financial — BofI Holding — Sandler O'Neill & Partners West Coast Financial Services Conference 2011
12 slides from Axos Financial's conference presentation, Mar 10, 2011
Slide 1: Sandler O'Neill & Partners West Coast Financial Services Conference
Exhibit 99.1 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
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
Key Accomplishments 1 Return on equity of 15.1% (YTD 12/10) 2 Efficiency ratio of 37.1% (YTD 12/10) 3 5-year asset growth of 18.4% (CAGR) 4 5-year deposit growth of 21.8% (CAGR) 5 Third highest ranking on SNL list of top performing thrifts (March 2010) 6 Bank Tier 1 Capital Ratio 8.10% / Tier 1 Risk
Slide 4: Corporate Profile
Corporate Profile $1.7 billion asset savings and loan 1 holding company 10 years operating history, publicly traded on NASDAQ(BOFI) since 2005 Headquartered in single branch location in San Diego, CA 1 33,000 deposit and loan customers 140 employees ($12 million in assets 1 per employee) 2 Market Ca
Slide 5: Primary Business – Deposits
Primary Business – Deposits 1 • Deposit base: ~$1,061M • Full-featured products • Self-service operations • Highly efficient operations (12 CSRs; 29,000 accounts) Deposit products 1 • Deposit base: ~$55M • Strong start in first full year of operations • One dedicated employee • Significant expansion
Slide 6: Primary Businesses – Lending
Primary Businesses – Lending Gain-on-sale • Internet-focused lend sources Mortgage • Self-service operation Banking • Low-fixed costs Single family • High-end portfolio lender Wholesale – “Common Sense” Jumbo underwriting – Average LTV = 56.9% • 13 high quality originators with Retail average experi
Slide 7: Multi Family and Single Family Production are a Reliable Asset Generation Platform for the Bank
Multi Family and Single Family Production are a Reliable Asset Generation Platform for the Bank Multifamily Loan Production Single Family Jumbo ($ Million) ($ Million) 80 $74 60 $53 70 50 60 40 50 $29 40 30 $27 30 20 20 10 10 0 0 Q1 Q2 Q1 Q2 Pipeline [$mil] $66.0 $94.0 Pipeline [$mil] $45.3 $89.4 [1
Slide 8: Our Business Model is More Profitable Because Our Costs are Lower
Our Business Model is More Profitable Because Our Costs are Lower Banks 1 2 BofI $1-$10bn As % of average assets (%) (%) Net interest income 3.40 3.49 Salaries and benefits 0.77 1.35 Premises and equipment 0.13 0.37 Other non-interest 0.41 1.55 expense Total non-interest 1.31 3.27 expense Core busin
Slide 9: Our Efficiency Ratio Consistently is One of the Industry's Lowest
Our Efficiency Ratio Consistently is One of the Industry's Lowest Efficiency Ratio (Bank of Internet USA, for the fiscal quarter ended) (%) 80 One of the lowest rates in the industry 63.24 60 40 31.39 30.67 34.49 29.21 20 0 Q3 ’10 Q4 ‘10 Q1 ‘11 Q2 ‘11 Banks 1 1. Reported by FDIC – 424 commercial ban
Slide 10: Best in Class Asset Quality
Best in Class Asset Quality Assets 30-89 days delinquent Assets in non-accrual (%) (%) 3 3 2.66 2 2 1 1 1.01 0.83 0.27 0 0 1 2 1 2 BofI Bank $1-10bn 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. FD
Slide 11: Mortgage Loan Portfolio – Years Seasoned and Loan-to-Value
Mortgage Loan Portfolio – Years Seasoned and Loan-to-Value 12/31/10 1 Weighted-average number of years since origination Weighted-average loan-to-value Percent Single Family 3.7 55 Multifamily 4.4 52 Commercial 3.5 47 Home Equity 3.7 53 0 1 2 3 4 5 6 0 20 40 60 1. Based on current loan balance and c
Slide 12: Loan Diversity – December 31, 2010
Loan Diversity – December 31, 2010 1 Loan Portfolio 100% = $1,108 mm Consumer and other Commercial 9 4 SF residential 35 48 4 Home equity Multifamily 1. Gross loans before premiums, discounts and allowances 11
BofI Holding — Sandler O'Neill & Partners West Coast Financial Services Conference 2011 on 6ix