Axos Financial, Inc. · NYSE:AX
Axos Financial — BofI Holding — Sidoti & Company Semiannual Micro Cap Conference, January 2011
23 slides from Axos Financial's conference presentation, Jan 10, 2011
Slide 1: Sidoti & Company Semiannual Micro Cap Conference
Sidoti & Company, LLC Semiannual Micro Cap Conference New York January 10, 2011 Andrew Micheletti Executive Vice President & Chief Financial Officer Exhibit 99.1
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 7 8 Key Accomplishments Common stock currently trading at: 124.2% of book; 6.86x TTM P/E Return on equity of 21.2% (Fiscal 2010) and 14.9% (QTD 9/10) Efficiency ratio of 29.3% (Fiscal 2010) and 35.1% (QTD 9/10) 5-year asset growth of 18.4% (CAGR) 5-year deposit growth of 21.8% (CAGR) Thi
Slide 4: Corporate Profile
Corporate Profile 1. Quarter ended September 30, 2. Based on the 12/31/10 closing price of $15.51 per share and all other data as of 9/30/10. $1.5 billion asset savings and loan holding company Over 10 years of operating history, publicly traded on NASDAQ(BOFI) since 2005 Headquartered in single bra
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
Slide 6: Primary Business – Deposits
Deposit products Primary Business – Deposits • Deposit base: ~$1,072M • Full-featured products • Self-service operations • Highly efficient operations (10 CSRs; 28,000 accounts) • Deposit base: ~$55M • Strong start in first full year of operations • One dedicated employee • Significant expansion opp
Slide 7: Primary Businesses – Lending
Primary Businesses – Lending Lending Single family Multifamily Wholesale banking Gain-on-sale Mortgage Banking Wholesale Jumbo Retail Wholesale Bank loan purchase Special situations • Internet-focused lend sources • Self-service operation • Low-fixed costs • High-end portfolio lender – “Common Sense
Slide 8: Loan Origination Group Production
Loan Origination Group Production Single Family – Jumbo Portfolio Multifamily – Portfolio 33.3 26.1 Total $120.0 62.4 90.9 $177.6 Pipeline Pipeline Single Family – Gain on Sale $60.6 $24.3 (In millions) 1. Applications in as of 12/31/2010. Q1-2011 Production Q1-2011 Production
Slide 9: 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 1. Bank of Internet USA only for three months ended 9/30/10 - the most recent data on FDIC website “Statistics on Depository Institutions Report.” Excludes BofI Holding, Inc. to compare to
Slide 10: 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) 1. Reported by FDIC – 421 commercial banks with $1-$10 billion in assets for the quarter ended 9/30/10. Source: FDIC Statistics on Depository Institutions. All data
Slide 11: Best in Class Asset Quality
Best in Class Asset Quality 0.83 0.65 (%) BofI Bank $1-10bn Assets 30-89 days delinquent Assets 30-89 days delinquent Assets in non-accrual Assets in non-accrual 2.79 0.80 (%) BofI Bank $1-10bn 1. Bank of Internet USA only at 9/30/10 (excludes BofI Holding, Inc. to compare to FDIC data). 2. Commerci
Slide 12: Mortgage Loan Portfolio – Years Seasoned and Loan-to-Value
Mortgage Loan Portfolio – Years Seasoned and Loan-to-Value 9/30/10 4.2 5.1 3.5 3.4 Single Family Multifamily Commercial Home Equity Weighted-average number of years since origination Weighted-average number of years since origination Weighted-average loan-to-value Weighted-average loan-to-value Perc
Slide 13: Loan Diversity – September 30, 2010
Loan Diversity – September 30, 2010 Loan Portfolio 100% = $893 mm 1. Gross loans before premiums, discounts and allowances. Multifamily SF residential Home equity Commercial Consumer and other
Slide 14: Deposits – September 30, 2010
Deposits – September 30, 2010 Deposits (100% = $992 mm) Time Deposits <$100K Savings Time Deposits >$100K Demand
Slide 15: Recent Marketing Campaign
Recent Marketing Campaign
Slide 16: bankofinternet marketing campaign
bankofinternet . Programs that make your business grow. Your Super Jumbo Lender [RWprEs Ere ~ Beet Seng Calfoma 1 Hg pt termi veh (et ser pr a KSA Customized Mortgage and Banking Products for the Broker Dealer and Financial Advisor Community.
Slide 17: Technology Improvements In Process
Technology Improvements In Process Completed Major Revisions to Online Banking in December 2010 Key Features Account Aggregation Safe Interbank Transfers Financial Management Reporting Tools Expanded Cross-Sell Capabilities Target Marketing (assuming consumer opt-in)
Slide 18: A Complete Financial Picture All From Our Website
A Complete Financial Picture All From Our Website
Slide 19: Home Page with Purchase Rewards
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 e
Slide 20: Investment Considerations
Investment Considerations High-quality consumer franchise Attractive valuation Scalability Strong credit quality Significant earnings upside potential
Slide 21: Experienced Management Team
Experienced Management Team 18+ years Finance / Consulting / Banking MBA, J.D., CFA McKinsey & Co Major Savings Bank Goldman Sachs Deloitte & Touche 25+ years Financial Services CPA, BS Accounting LPL Financial; CFO Telespectrum Imperial Savings Deloitte & Touche 23+ years Banking and Financial Serv
Slide 22: Experienced Management Team
Experienced Management Team 25+ years Financial Services MBA, B Com Accounting Barclays Bank NedBank ADB Bank 25+ years Banking and Financial Services Major Savings Bank National Australia Bank 17+ years Financial Services MBA Washington Mutual Marcus & Millichap Commercial Capital Adriaan van Zyl E
Slide 23: Senior Management Team
20+ years Financial Services BA Economics Imperial Capital Bank Prosum Consulting Perot Systems 10+ years Financial Services BA Finance Major Savings Bank Giuliani & Co. 15+ years Banking and Financial Services Imperial Capital Bank Property Sciences / Commercial Lender Magazine 10+ years Financial
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