Axos Financial, Inc. · NYSE:AX
Axos Financial — BofI Holding — Sidoti Semi-Annual Micro-Cap Conference (June 2010)
21 slides from Axos Financial's conference presentation, Jun 25, 2010
Slide 1: Sidoti Semi-Annual Micro-Cap Conference
Sidoti Semi-Annual Micro-Cap Conference Andy Micheletti Senior Vice President & Chief Financial Officer June 25, 2010 Exhibit 99.1
Slide 2: Accomplishments
(620%) (53%) 116% 3,000 Accomplishments Percentage increase in net income from Q3’08 ($1.0mm) to Q3’10 ($7.2mm) Improvement in efficiency ratio Q3’08 (55.2%) to Q3’10 (25.7%) Percentage increase in net interest margin from Q3’08 (1.76%) to Q3’10 (3.81%) BOFI to join Russell 3000 index on June 25, 20
Slide 3: Corporate Profile
Corporate Profile $1.4 billion asset savings and loan holding company 10 years operating history, publicly traded on NASDAQ since 2005 Headquartered in single branch location in San Diego, CA 31,000 deposit and loan customers employees ($18 million in assets per employee) Market Capitalization of $1
Slide 4: Primary Businesses
Deposit Products Online Retail Loan Origination Wholesale Banking Servicing Primary Businesses Highly efficient operations (9 CSRs; 27,000 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: 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 (%) 0.46 0.10 Other non-interest expense 0.45 Total non-interest expense 1.01 Core business margin 2.60 1.27 0. 36 1. 25 2.88 0. 50 Banks $1-$10bn (%) Net interest income 3.61 3.38 As
Slide 6: Best-In-Class Credit Quality
Best-In-Class Credit Quality Assets 30-89 days delinquent Assets >90 days delinquent BofI (%) 0.29 0.24 Assets In non-accrual 0.72 Banks $1-$10bn (%) 1.05 0.21 2.98 As % of assets 1. Bank of Internet USA only at 3/31/10 (excludes BofI Holding, Inc. to compare to FDIC data). 2. Commercial banks by as
Slide 7: Net Interest Margin Improvement
Increased by 99 bps Net Interest Margin Improvement Consolidated Net Interest Margin (Last 5 Quarters) 3.81 4.02 3.88 3.62 2.82 (%) Q3 ’09 Q3 ’10 Q2 ’10 Q4 ’09 Q1 ’10
Slide 8: And Our Efficiency Ratio Improved Dramatically
And Our Efficiency Ratio Improved Dramatically Efficiency Ratio (Bank of Internet USA, for the quarter ended) 1. Reported by FDIC – commercial banks with $1-$10 billion in assets for the quarter ended 3/31/10 Source: FDIC statistics on depository institutions. All data excludes holding companies for
Slide 9: Resulting In Higher After-Tax Net Income and Return On Equity
Resulting In Higher After-Tax Net Income and Return On Equity Return on equity (%) 28.40 13.18 17.52 17.20 24.63 7,175 5,548 3,708 3,604 2,594 2,000 4,000 6,000 8,000 Q4 ’09 ($ in 000s) Q3 ’10 Q2 ’10 Q1 ’10 Q3 ’09
Slide 10: Allowance For Loan Loss
Increased by 41.8% Allowance For Loan Loss 207.6 167.4 114.6 55.0 Non- performing loans (%) 90.1 5,610 5,449 5,270 4,754 3,956 2,000 4,000 6,000 ($ in 000s) Q3 ’10 Q2 ’10 Q1 ’10 Q4 ’09 Q3 ’09
Slide 11: Loan Diversity – March 31, 2010
Loan Diversity – March 31, 2010 100% = $763 mm Loan Portfolio 1. Gross loans before premiums, discounts and allowances Multifamily SF residential Home equity Commercial Consumer and other
Slide 12: Loan Portfolio – Years Seasoned / Loan to Value
Loan Portfolio – Years Seasoned / Loan to Value Weighted-Average Years Since Origination and Weighted-Average Loan to Value, by Loan Type, at 3/31/10 (Number of Years or LTV) 0.52 0.57 5.36 3.28 2.36 0.51 0.54 4.33 Multifamily Single family Home equity Commercial WA years of seasoning WA loan to val
Slide 13: Deposits – March 31, 2010
Deposits – March 31, 2010 Deposits (100% = $970 mm) Savings Time deposits <$100K Demand Time deposits >$100K
Slide 14: Promising Business Channels
Wholesale mortgage division Multifamily division Promising Business Channels Bank of Internet USA, has launched a Jumbo and Super Jumbo portfolio loan program in California designed for the affluent, sophisticated home mortgage borrower who will not settle for anything less than the highest level of
Slide 15: The Best of the Biggest – The Largest Public Thrifts by Asset Size
The Best of the Biggest – The Largest Public Thrifts by Asset Size
Slide 16: BofI Advisor Allows Us to Quickly and Easily Add Financial Professionals
BofI Advisor Allows Us to Quickly and Easily Add Financial Professionals
Slide 17: We Revised and Updated Our Apartment Bank Site
We Revised and Updated Our Apartment Bank Site …
Slide 18: Customized Mortgage and Banking Products for the Broker Dealer and Financial Advisor Community
bankofinternet i axa Customized Mortgage and Banking Products for the Broker Dealer and Financial Advisor Community. a bofiad eS Bonus! _ 90 Day 3-01” ay on Select Cnn, Select Sag ed Set Wane at Savings Bonk Products Mortgage Products sWighinrest ates Cate Maraage Abs Popa ‘oaiy-Componding ale feral
Slide 19: Experienced Management Team
Experienced Management Team 15+ years Finance / Consulting 2+ years with B of I MBA, J.D., CFA Age: 38 McKinsey & Co Major Savings Bank Goldman Sachs Deloitte & Touche 25+ years Financial Services 9+ years with B of I CPA, BS Accounting Age: 52 LPL Financial; CFO Telespectrum Imperial Savings Deloit
Slide 20: Investment Considerations
Investment Considerations High-quality consumer franchise Attractive valuation Scalability Strong credit quality Significant earnings upside potential
Slide 21: bankofinternet
bankofinternet bankofinternet . 4
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