Axos Financial, Inc. · NYSE:AX
Axos Financial — BofI Holding — B. Riley & Co. 12th Annual Investor Conference 2011
19 slides from Axos Financial's conference presentation, May 24, 2011
Slide 1: B. Riley & Co. 12th Annual Investor Conference
B. Riley & Co. 12th Annual Investor Conference May 24, 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 Key Accomplishments Common stock currently trading at: 125.0% of book; 9.15x TTM P/E Return on equity of 15.0% (YTD 3/11) Efficiency ratio of 39.3% (YTD 3/11) 5-year asset growth of 18.4% (CAGR) 6/30/2010 5-year deposit growth of 21.8% (CAGR) 6/30/2010 Third highest ranking on SNL list
Slide 4: Corporate Profile
Corporate Profile 1. Quarter ended March 31, 2011 2. As of 5/02/11 closing price of $16.56 per share $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 San Diego, CA 35,000 deposit and
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: Primary Business – Deposits
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 7: Primary Businesses – Lending
Primary Businesses – 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” unde
Slide 8: Loan Origination Group Production
Loan Origination Group Production Single Family – Jumbo Portfolio Multifamily – Portfolio 73.6 78.7 Total $175.6 138.7 107.8 $269.7 Single Family – Gain on Sale $23.3 $23.2 (In millions) 1. Applications in as of 3/31/2011 Pipeline Q3-2011 Production
Slide 9: Multi Family and Single Family Production are a Reliable Asset Generation Platform
Multi Family and Single Family Production are a Reliable Asset Generation Platform for the Bank ($ Million) ($ Million) Multifamily Loan Production Single Family Jumbo
Slide 10: 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 0.77 0.13 Other non-interest expense 0.41 Total non-interest expense 1.31 Core business margin 2.09 1.35 0.37 1.55 3.27 0.22 Net interest income 3.40 3.49 As % of average assets BofI (%) Ba
Slide 11: 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) 63.24 34.49 30.67 31.39 29.21 (%) Banks Q2 ‘11 Q1 ‘11 Q4 ‘10 Q3 ’10 One of the lowest rates in the industry 1. Reported by FDIC – 424 commercial banks with $1-$10 b
Slide 12: Best in Class Asset Quality
Best in Class Asset Quality 0.83 0.27 (%) BofI Bank $1-10bn 2.66 1.01 (%) 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. FDIC reported at 12/31/10. Total of 424 institutions $1-$10 billion. Assets 3
Slide 13: 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 Percent 1. Based on current loan balance and collateral value at origination or purchase. Weighted-average number of years since origination Weighted-average loan-to-va
Slide 14: Loan Diversity – March 31, 2011
Loan Diversity – March 31, 2011 Loan Portfolio 100% = $1,126 mm 1. Gross loans before premiums, discounts and allowances Multifamily SF residential Home equity Commercial Consumer and other
Slide 15: Technology Improvements In Process
Technology Improvements In Process Completed Major Revisions to Online Banking Key Features Account Aggregation Safe Interbank Transfers Financial Management Reporting Tools Expanded Cross-Sell Capabilities Target Marketing (assuming consumer opt-in)
Slide 16: Complete Financial Picture All From Our Website
A Complete Financial Picture All From Our Website View accounts across 16,000+ institutions Spending Reports Simplified budgeting tool Alerts and reminders for Bill Payment
Slide 17: 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 18: Mobile Banking
Mobile Banking Enhanced Mobile Banking Experience for Customers Text Message Banking allows: secure and convenient way to check account balances view latest transactions receive low balance alerts make fund transfers Mobile Web provides: secure access to account information and recent transactions t
Slide 19: Investment Considerations
Investment Considerations High-quality consumer franchise Attractive valuation Scalability Strong credit quality Significant earnings upside potential
BofI Holding — B. Riley & Co. 12th Annual Investor Conference 2011 on 6ix