BofI Holding, Inc. (BofI or the Company) (NASDAQ: BOFI), parent of
Bank of Internet USA (Bank), today announced net income of
$5,548,000 for its second quarter ended December 31, 2009 compared
to net income of $2,761,000 for the three months ended December 31,
2008. Earnings available to the Company's common stockholders were
$5,375,000, or $0.61 per diluted share for the current quarter
compared to $2,588,000, or $0.30 per diluted share for the quarter
ended December 31, 2008. For the six months ended December 31,
2009, net income totaled $9,256,000 compared to $944,000 for the
six months ended December 31, 2008. Diluted earnings per share were
$1.02 compared to $0.09 for the six months ended December 31, 2009
and 2008, respectively.
BofI's quarterly net income of $5,548,000 and its quarterly
diluted earnings per share of $0.61 were new historic highs for the
Company. Net income for the second quarter ended December 31, 2009
increased 100.9% compared to net income for last year's second
quarter ended December 31, 2008. Net income for the quarter ended
December 31, 2009 included an after-tax increase of $1,426,000 for
realized gains on sales, net of unrealized losses on certain
mortgage-backed securities. Excluding the net gain, net income
would have been $4,122,000 for the quarter ended December 31, 2009,
an increase of 49.3% compared to last year. Net income for the six
months ended December 31, 2009 increased $8,312,000 compared to the
six months ended December 31, 2008. Earnings for the six months
ended December 31, 2008 were reduced by a $4,710,000 after-tax loss
on the sale of Fannie Mae preferred stock after Fannie Mae was
placed in government conservatorship in September of 2008. The
increase in quarterly and year-to-date net income was primarily due
to higher net interest income resulting from growth in the Bank's
average earning assets and increases in the Company's net interest
margin.
"I am very pleased with our earnings this quarter given that
they were achieved concurrently with a quarter-on-quarter increase
in the Bank's Tier 1 leverage ratio from 7.20% to 7.91% and a
year-on-year increase of 1.05%, from 6.86% to 7.91%," remarked Greg
Garrabrants, President and Chief Executive Officer. "While many
institutions have been forced to raise capital through dilutive
equity issuances, we have been able to increase our core capital
ratios and grow our assets by $43.1 million this year without
raising external capital. With our strong capital ratios and our
profitable business model we should be able to attain a virtuous
cycle of asset and earning growth. Additionally, we believe we can
raise capital for specific tangible opportunities on terms we
believe are attractive to our shareholders. We continue to execute
on our two pronged strategy of taking advantage of current market
opportunities to purchase attractively priced high-credit quality
assets and investing in our franchise to grow our origination
capability and prepare our infrastructure for further expansion.
This quarter we added more depth to our management team by hiring a
Chief Marketing Officer and a Chief Information Officer; both
individuals held those positions at a much larger competitor. In
the latter part of the quarter, we hired a strong multifamily
origination team that will increase multifamily loan production in
subsequent quarters. Our single family gain-on-sale mortgage
banking operation continues to grow, not only in terms of increased
volume and revenue, but also in terms of marketing and operational
efficiency. Although there is still much more to do, we made
significant progress investing in and improving our core
capabilities as an institution this quarter."
Second Quarter Highlights:
-- Net interest margin grew to 4.02% in the current quarter, 34.9% over
the second quarter last year.
-- Asset quality remains strong, with the principal balance of non-
performing loans equal to 0.90% of the loan portfolio, and total non-
performing assets equal to 0.93% of total assets at December 31, 2009.
-- The allowance for loan loss increased to 81 basis points on total
loans compared to 52 basis points at the end of the second quarter
last year.
-- Total assets reached $1,345.3 million at December 31, 2009, up 10.2%
compared to the second quarter last year.
-- Total deposits reached $877.8 million at December 31, 2009, up 38.8%
compared to the second quarter last year.
-- The efficiency ratio decreased to 28.6%, an improvement of 16.5%
compared to the second quarter last year.
Quarter Earnings Summary
For the three months ended December 31, 2009, B of I had net
income of $5,548,000 compared to $2,761,000 for last year's second
quarter. Net interest income increased $4.2 million for the second
quarter ended December 31, 2009 compared to the second quarter last
year. Total interest and dividend income during the quarter ended
December 31, 2009 increased 12.3%, to $21.9 million, compared to
$19.5 million during the quarter ended December 31, 2008. The
increase in interest and dividend income for the quarter was
primarily attributable to growth in the average balance of loans
and investment securities and higher rates earned on new loans and
securities. Average interest earning assets increased $114.3
million or 9.7% for the quarter ended December 31, 2009 compared to
the quarter ended December 31, 2008. Interest expense decreased due
to a 96 basis point decrease in the average funding rate, including
a decrease in average rates for time deposits of 92 basis points.
The improvement in the net interest margin resulted from specific
actions taken by the Bank to manage its assets and liabilities, as
well as favorable changes in the U.S. Treasury yield curve and loan
risk premiums.
For the second quarter ended December 31, 2009, non-interest
income was $2.7 million primarily due to realized gains on the sale
of mortgage-backed securities of $6.5 million and mortgage banking
income of $0.5 million less unrealized losses from impairments and
fair value write-downs of $4.4 million. The Bank has increased its
allowance for loan loss from 52 basis points on loans at December
31, 2008 to 81 basis points on loans at December 31, 2009. The
provision for loan loss was $1,600,000 in the second quarter ended
December 31, 2009, up $475,000 compared to the quarter ended
December 31, 2008. The increased provisions for the quarter ended
December 31, 2009 were the result of changes in the loan portfolio
mix and higher estimated losses from our recreational vehicle
portfolio and real estate loan portfolio.
Non-interest expense or operating expense, which is comprised
primarily of compensation, data processing and internet expenses,
occupancy and other operating expenses, was $4.5 million for the
three months ended December 31, 2009, up from $3.0 million for the
three months ended December 31, 2008. Contributors to the
year-over-year increase in operating expense were the Bank's
additional costs for foreclosed real estate, increased compensation
expense related to additional staffing and the FDIC's general
increase in insurance premiums.
Balance Sheet Summary
The Company's total assets increased $43.1 million, or 3.3%, to
$1,345.3 million, as of December 31, 2009, up from $1,302.2 million
at June 30, 2009. The increase in total assets was primarily due to
the purchases of additional loans and the origination of additional
loans held for sale. Total liabilities increased $29.4 million,
primarily due to an increase in deposits of $229.3 million,
partially offset by a decrease of $199.0 million in borrowings from
the Federal Home Loan Bank of San Francisco and the Federal Reserve
Discount Window.
Conference Call
A conference call and webcast will be held on Thursday, February
4, 2010 at 5:00 PM Eastern / 2:00 PM Pacific. To participate in the
conference call, please dial the following number five to ten
minutes prior to the scheduled conference call time: 877-718-5099,
passcode #9664758. International callers should dial: 719-325-4757,
using the same passcode. Digital replay is available by calling
888-203-1112 and using the digital passcode #9664758. The
conference call will be webcast live and may be accessed at BofI's
website, http://www.bofiholding.com. For those unable to
participate during the live broadcast, a replay will be available
shortly after the call on the BofIholding.com website for 30
days.
About BofI Holding, Inc. and Bank of Internet USA
BofI Holding, Inc. is the holding company of Bank of Internet
USA and trades on NASDAQ under the symbol BOFI. Bank of Internet
USA is a consumer focused, FDIC insured, nationwide savings bank
operating primarily over the Internet. It offers a variety of
consumer banking services, focusing primarily on gathering retail
deposits over the Internet and originating and purchasing
multifamily and single-family mortgage loans. Bank of Internet USA
offers products through its websites at www.bankofinternet.com and
www.ApartmentBank.com. Retail deposit products include certificates
of deposit, online checking accounts with check images, bill
payment, high interest savings accounts, ATM or Visa Check Cards,
money market savings accounts, and ATM fee reimbursement anywhere
in the world.
Selected Financial Data
The following tables set forth certain selected financial data
concerning the periods indicated:
BofI HOLDING, INC.
SELECTED CONSOLIDATED FINANCIAL INFORMATION
(Dollars in thousands, except per share data)
December June 30, December
31, 2009 2009 31, 2008
----------- ----------- -----------
Selected Balance Sheet Data:
Total assets $ 1,345,313 $ 1,302,208 $ 1,220,451
Loans - net of allowance for loan
losses 657,181 615,463 641,475
Loans held for sale 7,568 3,190 2,917
Allowance for loan losses 5,449 4,754 3,374
Securities - trading 4,971 5,445 7,180
Securities - available for sale 263,207 265,807 184,359
Securities - held to maturity 345,692 350,898 320,920
Total deposits 877,828 648,524 632,493
Securities sold under agreements to
repurchase 130,000 130,000 130,000
Advances from the FHLB 223,992 262,984 321,977
Federal Reserve Discount Window and
other borrowings 5,155 165,155 50,155
Total Stockholders' equity 102,618 88,939 81,345
BofI HOLDING, INC.
SELECTED CONSOLIDATED FINANCIAL INFORMATION
(Dollars in thousands, except per share data)
At or for the Three At or for the Six
Months Ended Months Ended
December 31, December 31,
-------------------- --------------------
2009 2008 2009 2008
--------- --------- --------- ---------
Selected Income Statement
Data:
Interest and dividend income $ 21,866 $ 19,507 $ 43,643 $ 38,684
Interest expense 8,890 10,738 18,102 22,103
--------- --------- --------- ---------
Net interest income 12,976 8,769 25,541 16,581
Provision for loan losses 1,600 1,125 3,600 1,630
--------- --------- --------- ---------
Net interest income after
provision for loan losses 11,376 7,644 21,941 14,951
Non-interest income (loss) 2,751 14 1,742 (7,910)
Non-interest expense 4,492 3,008 7,769 5,485
--------- --------- --------- ---------
Income before income tax
expense 9,635 4,650 15,914 1,556
Income tax expense 4,087 1,889 6,658 612
--------- --------- --------- ---------
Net income $ 5,548 $ 2,761 $ 9,256 $ 944
========= ========= ========= =========
Net income (loss)
attributable to common stock $ 5,375 $ 2,588 $ 8,910 $ 600
Per Share Data:
Net income:
Basic $ 0.64 $ 0.31 $ 1.07 $ 0.07
Diluted $ 0.61 $ 0.30 $ 1.02 $ 0.09
Book value per common share $ 11.33 $ 8.90 $ 11.33 $ 8.90
Tangible book value per
common share $ 11.33 $ 8.90 $ 11.33 $ 8.90
Weighted average number of
shares outstanding:
Basic 8,422,688 8,332,482 8,302,318 8,384,086
Diluted 9,035,686 8,886,687 8,914,177 8,972,573
Common shares outstanding at
end of period 8,189,544 8,032,896 8,189,544 8,032,896
Common shares issued at end
of period 8,809,466 8,637,373 8,809,466 8,637,373
Performance Ratios and Other
Data:
Loan originations for
investment $ 26,647 $ 15,813 $ 35,083 $ 27,842
Loan originations for sale 30,685 6,513 55,691 6,726
Loan purchases 54,331 34,276 55,964 49,625
Return on average assets 1.68% 0.92% 1.40% 0.18%
Return on average stockholders'
equity 24.63% 14.63% 21.02% 1.58%
Interest rate spread(1) 3.84% 2.74% 3.77% 2.58%
Net interest margin(2) 4.02% 2.98% 3.95% 2.83%
Efficiency ratio(3) 28.56% 34.20% 28.48% 63.30%
Capital Ratios:
Equity to assets at end of
period 7.63% 6.67% 7.63% 6.67%
Tier 1 leverage (core) capital
to adjusted tangible assets(4) 7.91% 6.86% 7.91% 6.86%
Tier 1 risk-based capital ratio
(4) 16.18% 14.40% 16.18% 14.40%
Total risk-based capital ratio
(4) 17.01% 14.98% 17.01% 14.98%
Tangible capital to tangible
assets(4) 7.91% 6.86% 7.91% 6.86%
Asset Quality Ratios:
Net annualized charge-offs to
average loans outstanding 0.90% 0.09% 0.93% 0.15%
Nonperforming loans to total
loans 0.90% 0.61% 0.90% 0.61%
Nonperforming assets to total
assets 0.93% 0.66% 0.93% 0.66%
Allowance for loan losses to
total loans at end of period 0.81% 0.52% 0.81% 0.52%
Allowance for loan losses to
nonperforming loans 90.14% 84.37% 90.14% 84.37%
(1) Interest rate spread represents the difference between the annualized
weighted average yield on interest-earning assets and the weighted
average rate paid on interest-bearing liabilities.
(2) Net interest margin represents annualized net interest income as a
percentage of average interest-earning assets.
(3) Efficiency ratio represents noninterest expense as a percentage of the
aggregate of net interest income and noninterest income.
For the six months ended December 31, 2008, without the loss of $7.902
million in noninterest income due to the loss
on sale of FNMA preferred stock, the efficiency ratio would have been
33.1%.
(4) Reflects regulatory capital ratios of Bank of Internet USA only.
Contact: BofI Holding, Inc. Gregory Garrabrants President &
CEO 858/350-6203 Email Contact
Axos Finl (delisted) (NASDAQ:BOFI)
Historical Stock Chart
From Jun 2024 to Jul 2024
Axos Finl (delisted) (NASDAQ:BOFI)
Historical Stock Chart
From Jul 2023 to Jul 2024
