Axos Financial, Inc. · NYSE:AX
Axos Financial — BofI Holding — Shareholder Meeting (October 2009)
20 slides from Axos Financial's shareholder meeting presentation, Oct 22, 2009
Slide 1: Annual Shareholders Meeting October 22, 2009
Annual Shareholders Meeting October 22, 2009 Greg Garrabrants, CEO Exhibit 99.2 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,” “p
Slide 2: What We Have Accomplished Over the Last Two Years
299% (32%) 160% What We Have Accomplished Over the Last Two Years Percentage increase in net income from Q4’07 ($904k) to Q4’09 ($3.604 mil) Improvement in efficiency ratio Q4’07 (51.0%) to Q4’09 (34.5%) Percentage increase in net interest margin from Q4’07 (1.39%) to Q4’09 (3.62%)
Slide 3: Corporate Profile
Corporate Profile $1.3 billion asset savings and loan holding company 9+ years operating history, publically traded on NASDAQ since 2005 Headquartered in single branch location in San Diego, CA 27,000 deposit and loan customers 57 employees (over $22 million in assets per employee) Market Capitaliza
Slide 4: Primary Businesses
Deposit Products Online Retail Loan Origination Wholesale Banking Servicing Primary Businesses Highly efficient operations (8 CSRs; 23,000 accounts) Full-featured products Self-service operations Ability to adjust asset class and credit standards quickly Low fixed costs Wide network of seller relati
Slide 5: BofI Advisor Represents A Promising Channel Extension
BofI Advisor Represents A Promising Channel Extension For Deposit and Loan Referrals
Slide 6: BofI Advisor Allows Us To Quickly And Easily Add Financial Professionals
BofI Advisor Allows Us To Quickly And Easily Add Financial Professionals
Slide 7: Our First Mortgage Origination Group Has Continued To Grow
Our First Mortgage Origination Group Has Continued To Grow And Is Starting To Make An Impact $1 $54 $528 $798 $0 $200 $400 $600 $800 $1,000 Q1'09 Q2'09 Q3'09 Q4'09 ($ in 000s) Fee Income (Fiscal Year) ($ in 000s) Funded Loan Volume $213 $6,513 $33,376 $43,638 $0 $10,000 $20,000 $30,000 $40,000 $50,0
Slide 8: We Revised and Updated Our Apartment Bank Site
We Revised and Updated Our Apartment Bank Site …
Slide 9: And Achieved A Top Organic Ranking
… And Achieved A Top 3 Organic Ranking
Slide 10: Our Business Model Is Profitable With Lower Spreads Because Our Costs Are Lower
Our Business Model Is Profitable With Lower Spreads Because Our Costs Are Lower Salaries and Benefits Premises and Equipment BofI (1) 0.43% 0.12% Banks $1-$10bn (3) 1.32% 0.37% Other Non-interest Expense 0.54% 1.55% Total Non-interest Expense 1.09% 3.24% Core Business Margin 2.04% -0.13% 1.52% 0.41%
Slide 11: Our Credit Quality Is Best-In-Class
Our Credit Quality Is Best-In-Class Assets 30-89 days delinquent Assets >90 days delinquent BofI (1) 0.29% 0.36% Banks $1-$10bn (2) 1.03% 0.19% Assets In Non-Accrual 0.22% 2.89% Banks $0.5-$1bn (2) 1.06% 0.19% 2.37% as % of assets 1. Bank of Internet USA only at 6/30/09 (excludes BofI Holding, Inc.
Slide 12: Allowance For Loan Loss
$2,710 $2,809 $3,374 $3,956 $4,754 $0 $1,000 $2,000 $3,000 $4,000 $5,000 Q4'08 Q1'09 Q2'09 Q3'09 Q4'09 Allowance For Loan Loss 65.3% 107.6% 84.4% 167.4% % of Non- Performing Loans 207.6%
Slide 13: Net Interest Margin Improvement
2.42% 2.68% 2.98% 2.82% 3.62% 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% 3.50% 4.00% Q4'08 Q1'09 Q2'09 Q3'09 Q4'09 Net Interest Margin Improvement Consolidated Net Interest Margin Last 5 Quarters
Slide 14: And Our Efficiency Ratio Improved Dramatically
One of the lowest rates in the industry 27.35% 30.09% 35.98% 38.54% 68.13% 0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% 70.00% 80.00% Q1'09 Q2'09 Q3'09 Q4'09 Banks(1) And Our Efficiency Ratio Improved Dramatically Efficiency Ratio (Bank of Internet USA, for the quarter ended) Source: FDIC statist
Slide 15: Resulting In Higher After-Tax Net Income and Return On Equity
$1,780 $2,893 $2,761 $2,594 $3,604 $0 $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 $4,000 Q4'08 Q1'09(1) Q2'09 Q3'09 Q4'09 Resulting In Higher After-Tax Net Income and Return On Equity ($ in 000s) 1. Q1’09 excludes $4.7mm after tax loss on sale of Fannie Mae preferred stock due to US government co
Slide 16: Loan Portfolio: Loan Diversity – June 30, 2009
26% 5% 52% 5% 12% SF Residential Home Equity Multifamily Commercial Consumer & Other Loan Diversity – June 30, 2009 100% = $629 mm Loan Portfolio (1) 1. Gross loans before premiums, discounts and allowances.
Slide 17: Loan Portfolio – Years Seasoned / Loan to Value
Single Family Multifamily Commercial Home Equity 0.58 0.53 0.52 0.58 3.42 4.58 2.58 1.58 Loan Portfolio – Years Seasoned / Loan to Value Weighted-Average Years Since Origination and Weighted-Average Loan to Value, by Loan Type, at 6/30/09 (Number of Years or LTV) WA Years of Seasoning WA Loan to Val
Slide 18: Deposits – June 30, 2009
29% 31% 10% 30% Time Deposits <$100k Time Deposits >$100k Demand Savings Deposits – June 30, 2009 100% = $649 mm Deposits
Slide 19: Investment Considerations
Investment Considerations High-Quality Consumer Franchise Attractive Valuation Scalability Strong Credit Quality Significant Earnings Upside Potential
Slide 20: bankofinternet
~_ bankofinternet