Axos Financial, Inc. · NYSE:AX
Axos Financial — BofI Holding — LD Micro Conference Los Angeles 2010
23 slides from Axos Financial's conference presentation, Dec 8, 2010
Slide 1: LD Micro Conference Los Angeles
LD Micro Conference Los Angeles December 9, 2010 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: 111.8% of book; 6.18x TTM P/E 1. Assumes pushdown of existing cash of $7M from Holding company to Bank. 2. As of 12/03/10 closing price of $13.96 per share. Return on equity of 21.2% (Fiscal 2010) and 14.9% (QTD 9/10) Efficiency
Slide 4: Corporate Profile
Corporate Profile 1. Quarter ended September 30, 2010 2. As of 12/03/10 closing price of $13.96 per share $1.5 billion asset savings and loan holding company 10 years operating history, publicly traded on NASDAQ(BOFI) since Headquartered in single branch location in San Diego, CA 31,000 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: ~$998M • Full-featured products • Self-service operations • Highly efficient operations (10 CSRs; 28,000 accounts) • Deposit base: ~$51M • Strong start in first full year of operations • One dedicated employee • Significant expansion oppor
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 45.3 66.0 $165.6 Single Family – Gain on Sale $60.6 $54.3 (In millions) 1. As of 10/31/2010 Pipeline¹ 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 0.66 0.12 Other non-interest expense 0.49 Total non-interest expense 1.27 Core business margin 2.42 1.32 0.36 1.37 3.05 0.35 Net interest income 3.69 3.40 As % of average assets BofI (%) Ba
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) 61.17 30.67 31.39 29.21 30.63 (%) Banks Q1 ‘11 Q4 ‘10 Q3 ‘10 Q2 ’10 One of the lowest rates in the industry 1. Reported by FDIC – 421 commercial banks with $1-$10 b
Slide 11: Best in Class Asset Quality
Best in Class Asset Quality 0.83 0.65 (%) BofI Bank $1-10bn 2.79 0.80 (%) BofI Bank $1-10bn Assets 30-89 days delinquent Assets in non-accrual 1. Bank of Internet USA only at 9/30/10 (excludes BofI Holding, Inc. to compare to FDIC data). 2. Commercial banks by asset size. FDIC reported at 9/30/10. T
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 loan-to-value Percent 1. Based on current loan balance and collateral value at origination or purcha
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: bankofinternet
bankofinternet eS ina state near ou www.apartmentbank.com
Slide 16: bankofinternet
bankofinternet Programs that make your business grow. — GO Customized Mortgage and Banking Products for the Broker Dealer and Financial Advisor Community vy Who Says Banks Aren’t Lending? 7
Slide 17: Technology Improvements In Process
Technology Improvements In Process Rollout in January of Online Financial Management Solution 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 View accounts across 16,000+ institutions Spending Reports Simplified budgeting tool Alerts and reminders for Bill Payment Calculate your net worth
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