Axos Financial, Inc. · NYSE:AX
Axos Financial — BofI Holding — KBW Community Bank Investor Conference 2011
16 slides from Axos Financial's conference presentation, Aug 3, 2011
Slide 1: KBW Community Bank Investor Conference
KBW Community Bank Investor Conference August 2, 2011 Greg Garrabrants President & Chief Executive 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: 112.5% of book; 8.23x TTM P/E 1. Based on nine-months ended 3/31/2011 - annualized. 2. As of 7/22/11 closing price of $14.90 per share, book value and earnings at March 31, 2011. Return on equity of 15.0% (YTD 3/11) Efficiency ra
Slide 4: Corporate Profile
Corporate Profile 1. Quarter ended March 31, 2011 2. As of 7/22/11 closing price of $14.90 per share. Book value at March 31, 2011. $1.7 billion asset savings and loan holding company 10 years operating history, publicly traded on NASDAQ(BOFI) since 2005 Headquartered in single branch location in Sa
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 89.40 1,401.1 1.16 15.87 13.14 32.23 1.21 0.80
Slide 6: Asset growth (%)
Asset growth (%) Average Asset Growth Top 26 BofI Asset Growth for March 31, 2011 13.8 23.9 BofI is Number 27th on the 3-Year Average ROE Listing ¹ ... ... But BofI has Achieved Higher Asset Growth and Maintained its ROE 1. Source: SNL Survey Data as of 12/31/10. 2. Based upon asset growth between M
Slide 7: BofI is 27th on the 3-Year Average ROE Listing
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 1. Source: SNL Survey Data as of 12/31/10. 2. Based upon Fiscal nine months annualized and Fiscal 201 0 results for Bof I compared to the 2 6 banks t
Slide 8: Deposit products
Deposit products Primary Business – Deposits • Deposit base: ~$1,191M • Full-featured products • Self-service operations • Highly efficient operations (9 CSRs; 31,000 accounts) • Deposit base: ~$75M • Strong start in first full year of operations • One dedicated employee • Significant expansion oppo
Slide 9: 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 10: Loan Origination Group Production
Loan Origination Group Production Single Family – Jumbo Portfolio Multifamily – Portfolio 73.6 78.7 Total $175.6 154.5 100.2 $274.5 Single Family – Gain on Sale $23.3 $19.8 (In millions) 1. Applications in as of 6/30/2011 Q3-2011 Production Pipeline
Slide 11: Multi Family and Single Family Production are a Reliable Asset Generation Platform
Multi Family and Single Family Production are a Reliable Asset Generation Platform for the Bank ($ Million) Q1 Q2 ($ Million) Q1 Q2 Q3 Q3 $27 $74 $78 $29 $53 $74 Multifamily Loan Production Single Family Jumbo
Slide 12: 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 13: 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 14: Best in Class Asset Quality
0.84 0.35 (%) BofI Bank $1-10bn 2.46 0.42 (%) BofI Bank $1-10bn 1. Bank of Internet USA only at 3/31/11 (excludes BofI Holding, Inc. to compare to FDIC data). 2. Commercial banks by asset size. FDIC reported at 3/31/11. Total of 431 institutions $1-$10 billion. Best in Class Asset Quality Assets 30-
Slide 15: Mortgage Loan Portfolio – Years Seasoned and Loan-to-Value
Mortgage Loan Portfolio – Years Seasoned and Loan-to-Value 3/31/11 3.4 4.1 3.8 4.1 Single Family Multifamily Commercial Home Equity Weighted-average number of years since origination Weighted-average loan-to-value Percent 1. Based on current loan balance and collateral value at origination or purcha
Slide 16: Investment Considerations
Investment Considerations High-quality consumer franchise Attractive valuation Scalability Strong credit quality Significant earnings upside potential
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