Axos Financial, Inc. · NYSE:AX
Axos Financial — BofI Holding — Sidoti & Company First 2010 Micro Cap Conference
20 slides from Axos Financial's conference presentation, Jan 11, 2010
Slide 1: Sidoti & Company First 2010 Micro Cap Conference
Sidoti & Company, LLC First 2010 Micro Cap Conference January 11, 2010 Andy Micheletti, CFO Exhibit 99.1 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,” “an
Slide 2: What We Have Accomplished Over the Last Two Years
396% (55%) 213% What We Have Accomplished Over the Last Two Years Percentage increase in net income from Q1’08 ($747k) to Q1’10 ($3.7mm) Improvement in efficiency ratio Q1’08 (63.0%) to Q1’10 (28.4%) Percentage increase in net interest margin from Q1’08 (1.24%) to Q1’10 (3.88%)
Slide 3: Corporate Profile
Corporate Profile $1.3 billion asset savings and loan holding company (1) 10 years operating history, publically traded on NASDAQ since 2005 Headquartered in single branch location in San Diego, CA 30,000 deposit and loan customers 64 employees ($21 million in assets per employee) Market Capitalizat
Slide 4: Primary Businesses
Deposit Products Online Retail Loan Origination Wholesale Banking Servicing Primary Businesses Highly efficient operations (9 CSRs; 26,000 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 1. Bank of Internet USA only for three months ended 9/30/09 - the most recent data on FDIC website. Excludes BofI Holding company to compare to FDIC data. 2. Commercial banks by asset size.
Slide 6: 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) 0.44% 0.24% Banks $1-$10bn (2) 1.00% 0.22% Assets In Non-Accrual 0.35% 2.83% Banks $0.5-$1bn (2) 1.03% 0.21% 2.54% 1. Bank of Internet USA only at 9/30/09 (excludes BofI Holding, Inc. to compare to F
Slide 7: Net Interest Margin Improvement
2.68% 2.98% 2.82% 3.62% 3.88% 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% 3.50% 4.00% 4.50% Q1'09 Q2'09 Q3'09 Q4'09 Q1'10 Net Interest Margin Improvement Consolidated Net Interest Margin Last 5 Quarters
Slide 8: And Our Efficiency Ratio Improved Dramatically
One of the lowest rates in the industry 30.09% 35.98% 38.54% 24.02% 58.62% 0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% 70.00% Q2'09 Q3'09 Q4'09 Q1'10 Banks(1) And Our Efficiency Ratio Improved Dramatically Efficiency Ratio (Bank of Internet USA, for the quarter ended) Source: FDIC statistics on
Slide 9: Resulting In Higher After-Tax Net Income and Return On Equity
$2,893 $2,761 $2,594 $3,604 $3,708 $0 $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 $4,000 Q1'09(1) Q2'09 Q3'09 Q4'09 Q1'10 Resulting In Higher After-Tax Net Income and Return On Equity ($ in 000s) 1. Q1’09 excludes $4.7mm after tax loss on sale of Fannie Mae preferred stock due to US government co
Slide 10: Allowance For Loan Loss
$2,809 $3,374 $3,956 $4,754 $5,270 $0 $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 Q1'09 Q2'09 Q3'09 Q4'09 Q1'10 Allowance For Loan Loss 107.6% 84.4% 207.6% 114.6% % of Non- Performing Loans 167.4%
Slide 11: Loan Portfolio Diversity - September 30, 2009
26% 5% 52% 5% 12% SF Residential Home Equity Multifamily Commercial Consumer & Other Loan Diversity – September 30, 2009 100% = $608 mm Loan Portfolio (1) 1. Gross loans before premiums, discounts and allowances.
Slide 12: Loan Portfolio - Years Seasoned / Loan to Value
Single Family Multifamily Commercial Home Equity 0.59 0.53 0.52 0.58 3.57 4.80 2.76 1.86 Loan Portfolio – Years Seasoned / Loan to Value Weighted-Average Years Since Origination and Weighted-Average Loan to Value, by Loan Type, at 9/30/09 (Number of Years or LTV) WA Years of Seasoning WA Loan to Val
Slide 13: Deposits - September 30, 2009
22% 25% 8% 45% Time Deposits <$100k Time Deposits >$100k Demand Savings Deposits – September 30, 2009 100% = $764 mm Deposits
Slide 14: BofI Advisor Represents A Promising Channel Extension
BofI Advisor Represents A Promising Channel Extension For Deposit and Loan Referrals
Slide 15: BofI Advisor Allows Us To Quickly And Easily Add Financial Professionals
BofI Advisor Allows Us To Quickly And Easily Add Financial Professionals
Slide 16: We Revised and Updated Our Apartment Bank Site
We Revised and Updated Our Apartment Bank Site …
Slide 17: And Achieved A Top Organic Ranking
… And Achieved A Top 3 Organic Ranking
Slide 18: Experienced Management Team
Experienced Management Team 27 Key Management Gary Lewis Evans Chief Operating Officer Greg Garrabrants President and CEO 15+ Years Finance / Consulting Previous Experience: 2+ Years with B of I - McKinsey & Co - Major Savings Bank MBA, J.D., CFA Age: 38 - Goldman Sachs - Deloitte & Touche Andrew Mi
Slide 19: Investment Considerations
Investment Considerations High-Quality Consumer Franchise Attractive Valuation Scalability Strong Credit Quality Significant Earnings Upside Potential
Slide 20: bankofinternet
~_ bankofinternet
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