BofI Holding, Inc. (NASDAQ: BOFI) ("BofI"), parent company of BofI
Federal Bank (the "Bank"), today announced financial results for
the second fiscal quarter ended December 31, 2012. Net income was a
record $9,768,000, an increase of 46.7% over net income of
$6,660,000 for the quarter ended December 31, 2011. Earnings
attributable to BofI's common stockholders were $9,436,000 or $0.70
per diluted share for the second quarter of fiscal 2013, an
increase of 29.6% from $6,280,000 or $0.54 per diluted share for
the second quarter ended December 31, 2011.
Core earnings, which exclude the after-tax impact of gains and
losses associated with our securities portfolio, increased 47.6% to
$10,080,000 for the quarter ended December 31, 2012 compared to
$6,828,000 for the quarter ended December 31, 2011.
Second Quarter Fiscal 2013 Financial
Summary:
Q2 Fiscal Q2 Fiscal YOY
Three Months Ended December 31, 2013 2012 Change
----------- ----------- ----------
(Dollars in thousands)
Net Interest Income $ 24,936 $ 19,086 30.7%
Non-Interest Income $ 6,249 $ 2,986 109.3%
Net Income $ 9,768 $ 6,660 46.7%
Core Earnings(1) $ 10,080 $ 6,828 47.6%
Net Income Attributable to Common
Stockholders $ 9,436 $ 6,280 50.3%
Diluted EPS $ 0.70 $ 0.54 29.6%
(1) Core earnings is a non-GAAP measure that excludes realized and
unrealized gains and losses associated with our securities portfolios.
For the six months ended December 31, 2012, net income was a
record $18,757,000, an increase of 42.2% over net income of
$13,193,000 for the six months ended December 31, 2011. Earnings
attributable to BofI's common stockholders were $18,348,000 or
$1.37 per diluted share for the six months ended December 31, 2012,
an increase of 44.6% from $12,687,000 or $1.14 per diluted share
for the six months ended December 31, 2011. Record earnings for the
quarter and for the six months ended December 31, 2012 were
primarily the result of growth in both the Bank's loan portfolio
and its fee income businesses.
"Our Bank's fundamentals remained strong as we posted our fourth
consecutive quarter of record net income, increased total assets by
$257.0 million through organic loan growth, maintained our strong
asset quality and benefited from robust growth in non-interest
income," remarked Greg Garrabrants, President and Chief Executive
Officer. "Our net interest margin of 3.81% this quarter was 21
basis points higher than the net interest margin for the quarter
ended December 31, 2011. Our cost of funds has decreased 52 basis
points year over year as we benefited from the shift in our deposit
mix toward lower cost checking, savings and money market accounts
and from continued re-pricing of term obligations. We are
particularly pleased with the continued growth of our newer
businesses. Our business banking group reached $146.0 million of
deposits for the quarter ended December 31, 2012 up $46.0 million
or 46.0% over the business deposit balance at September 30, 2012.
Our warehouse lending business funded $690.7 million of loans in
the second quarter ended December 31, 2012 after funding $229.0
million in the first quarter. Asset quality was strong with 0.79%
of non-performing assets to total assets at December 31, 2012. Gain
on sale from our mortgage banking business was $5.6 million this
quarter, up $2.6 million from the second quarter of fiscal
2012."
"This October, we raised $18.6 million of convertible preferred
stock increasing our fully diluted share count by 4.75%," continued
Mr. Garrabrants. "I am proud to announce that we fully absorbed the
impact of that dilution this quarter and improved diluted earnings
per share to $0.70 per share, up $0.03 over last quarter. Our
annualized return on common stockholders' equity for this quarter
was 17.32%. Our Bank Tier 1 capital ratio increased to 8.52% at
December 31, 2012, up from 8.20% at September 30, 2012."
Other Highlights:
- Loan portfolio grew by $627.8 million or 41.2% compared to
December 31, 2011
- Loan originations for the three months ended December 31, 2012
were $612.6 million, up 70.2% compared to the quarter ended
December 31, 2011
- Deposits grew by $415.0 million, or 26.7% compared to December
31, 2011
- Asset quality remains strong with total non-performing assets
of 0.79% of total assets and non-performing loans equal to 0.95% of
total loans at December 31, 2012
- Tangible book value increased to $17.08 per share, up $2.28 per
share compared to December 31, 2011
- Total assets reached $2,874.3 million, up $650.5 million or
29.3% compared to December 31, 2011
Second Quarter Fiscal 2013 Income Statement
Summary
During the quarter ended December 31, 2012, BofI earned
$9,768,000 or $0.70 per diluted share compared to $6,660,000, or
$0.54 per diluted share for the quarter ended December 31, 2011.
Net interest income increased $5,850,000 or 30.7% for the quarter
ended December 31, 2012 compared to December 31, 2011. Average
earning assets grew year over year by $496.3 million and our net
interest margin was 3.81% compared to 3.60% for the quarters ended
December 31, 2012 and 2011, respectively.
Loan loss provision was $1,950,000 for the quarter ended
December 31, 2012 as compared to $1,600,000 for the quarter ended
December 31, 2011. Loan portfolio growth in fiscal 2013 required an
increase in loan loss provisions.
For the second quarter ended December 31, 2012, non-interest
income was $6,249,000 compared to $2,986,000 for the three months
ended December 31, 2011. The increase was primarily due to gain on
sale of mortgage loans which was $5,579,000 for the quarter ended
December 31, 2012 compared to $3,031,000 for the quarter ended
December 31, 2011. Prepayment penalty income increased in the
second quarter of fiscal 2013 to $513,000, up from $65,000 due to
more mortgage loans prepaying in fiscal 2013.
Non-interest expense or operating costs increased $3,577,000 to
$12,781,000 for the quarter ended December 31, 2012 from $9,204,000
for the three months ended December 31, 2011. The increase was
mainly a result of an increase in compensation expense of
$1,975,000 related to additional staffing added since December 31,
2011, an increase in advertising of $510,000 due to costs
associated with increased loan and deposit products and account
volumes, and an increase in loan related costs of $258,000.
Balance Sheet Summary
BofI's total assets increased $487.5 million, or 20.4%, to
$2,874.3 million, as of December 31, 2012, up from $2,386.8 million
at June 30, 2012. The loan portfolio increased a net $434.7
million, primarily from portfolio loan originations of $611.7
million less principal repayments and other adjustments of $177.0
million. Loans held for sale increased $18.0 million. Investment
securities decreased $20.7 million as principal repayments exceeded
new security investments. Total liabilities increased by $451.5
million or 20.7%, to $2,631.7 million at December 31, 2012, up from
$2,180.2 million at June 30, 2012. The increase in total
liabilities resulted primarily from growth in demand, savings and
time deposits of $353.2 million. Stockholders' equity increased by
$36.0 million, or 17.4%, to $242.6 million at December 31, 2012, up
from $206.6 million at June 30, 2012. The increase was primarily
the result of $18.8 million in net income, issuance of convertible
preferred stock Series C of $18.6 million, vesting and issuance of
RSU's and exercise of stock options of $1.2 million, less $2.1
million unrealized loss in other comprehensive income and $0.4
million in dividends declared on preferred stock.
The Bank's Tier 1 capital was 8.52% at December 31, 2012
compared to 8.27% at December 31, 2011.
Conference Call
A conference call and webcast will be held on Wednesday,
February 6, 2013 at 4:30 PM Eastern / 1:30 PM Pacific. Analysts and
investors may dial in and participate in the question/answer
session. To access the call, please dial: 888-556-4997, passcode
9545275; international callers should dial: 719-325-2491, using the
same passcode. The conference call will be webcast live and may be
accessed at BofI's website, http://www.bofiholding.com. For those
unable to listen to the live broadcast, a replay will be available
shortly after the call on BofI's website for 30 days.
About BofI Holding, Inc. and BofI Federal
Bank
BofI Holding, Inc. ("BofI") is the holding company for BofI
Federal Bank, a nationwide bank that provides financing for single
and multifamily residential properties, small-to-medium size
businesses in target sectors, and selected specialty finance
receivables. With over $2.8 billion in assets, BofI Federal Bank
provides consumer and business banking products through its
low-cost distribution channels and affinity partners. BofI Holding,
Inc.'s common stock is listed on the NASDAQ Global Select Market
under the symbol "BOFI" and is a component of the Russell 3000
Index.
Use of Non-GAAP Financial Measures
In addition to the results presented in accordance with GAAP,
this report includes non-GAAP financial measures such as core
earnings. Core earnings exclude realized and unrealized gains and
losses associated with our securities portfolios. Excluding these
gains and losses provides investors with an understanding of BofI's
core lending and mortgage banking business. Non-GAAP financial
measures have inherent limitations, are not required to be
uniformly applied and are not audited. Readers should be aware of
these limitations and should be cautious as to their use of such
measures. Although BofI believes the non-GAAP financial measures
disclosed in this report enhance investors' understanding of its
business and performance, these non-GAAP measures should not be
consider in isolation, or as a substitute for GAAP basis financial
measures. Below is a reconciliation of GAAP net income to core
earnings:
Three Months Ended Six Months Ended
December 31, December 31,
-------------------- --------------------
(Dollars in thousands) 2012 2011 2012 2011
--------- --------- --------- ---------
Net Income $ 9,768 $ 6,660 $ 18,757 $ 13,193
Unrealized securities losses 525 285 797 687
--------- --------- --------- ---------
Tax provision (213) (117) (324) (277)
--------- --------- --------- ---------
Core Earnings $ 10,080 $ 6,828 $ 19,230 $ 13,603
========= ========= ========= =========
Forward-Looking Safe Harbor Statement
This press release contains forward-looking statements that
involve risks and uncertainties, including without limitation
statements relating to BofI's financial prospects and other
projections of its performance and asset quality, BofI's ability to
grow and increase its business, diversify its lending, and the
anticipated timing and financial performance of new initiatives.
These forward-looking statements are made on the basis of the views
and assumptions of management regarding future events and
performance as of the date of this press release. Actual results
and the timing of events could differ materially from those
expressed or implied in such forward-looking statements as a result
of risks and uncertainties, including without limitation changes in
interest rates, inflation, government regulation, general economic
conditions, conditions in the real estate markets in which we
operate and other factors beyond our control. These and other risks
and uncertainties detailed in BofI's periodic reports filed with
the Securities and Exchange Commission could cause actual results
to differ materially from those expressed or implied in any
forward-looking statements. You are cautioned not to place undue
reliance on these forward-looking statements, which speak only as
of the date of this press release. All forward-looking statements
are qualified in their entirety by this cautionary statement, and
BofI undertakes no obligation to revise or update any
forward-looking statements to reflect events or circumstances after
the date of this press release.
BofI HOLDING, INC.
SELECTED CONSOLIDATED FINANCIAL INFORMATION
(Unaudited -- dollars in thousands)
December 31, June 30, December 31,
2012 2012 2011
------------- ------------- -------------
Selected Balance Sheet Data:
Total assets $ 2,874,322 $ 2,386,845 $ 2,223,797
Loans -- net of allowance for loan
losses 2,155,306 1,720,563 1,526,523
Loans held for sale, at fair value 57,498 38,469 54,336
Loans held for sale, lower of cost
or market 39,684 40,712 48,000
Allowance for loan losses 11,449 9,636 8,090
Securities -- trading 6,735 5,838 5,678
Securities -- available-for-sale 167,167 164,159 165,047
Securities -- held-to-maturity 288,452 313,032 339,691
Total deposits 1,968,265 1,615,088 1,553,230
Securities sold under agreements
to repurchase 115,000 120,000 130,000
Advances from the FHLB 527,000 422,000 330,000
Subordinated debentures and other
borrowings 5,155 5,155 5,155
Total stockholders' equity 242,613 206,620 193,596
BofI HOLDING, INC.
SELECTED CONSOLIDATED FINANCIAL INFORMATION
(Unaudited -- dollars in thousands, except per share data)
At or for the At or for the
Three Months Ended Six Months Ended
December 31, December 31,
------------------------ ------------------------
2012 2011 2012 2011
----------- ----------- ----------- -----------
Selected Income
Statement Data:
Interest and dividend
income $ 33,567 $ 28,616 $ 64,556 $ 56,381
Interest expense 8,631 9,530 17,135 19,118
----------- ----------- ----------- -----------
Net interest income 24,936 19,086 47,421 37,263
Provision for loan
losses 1,950 1,600 4,500 3,963
----------- ----------- ----------- -----------
Net interest income
after provision for
loan losses 22,986 17,486 42,921 33,300
Non-interest income 6,249 2,986 13,010 7,556
Non-interest expense 12,781 9,204 24,313 18,756
----------- ----------- ----------- -----------
Income before income tax
expense 16,454 11,268 31,618 22,100
Income tax expense 6,686 4,608 12,861 8,907
----------- ----------- ----------- -----------
Net income $ 9,768 $ 6,660 $ 18,757 $ 13,193
=========== =========== =========== ===========
Net income attributable
to common stock $ 9,436 $ 6,280 $ 18,348 $ 12,687
Per Share Data:
Net income:
Basic $ 0.71 $ 0.56 $ 1.44 $ 1.15
Diluted $ 0.70 $ 0.54 $ 1.37 $ 1.14
Book value per common
share $ 17.08 $ 14.80 $ 17.08 $ 14.80
Tangible book value per
common share $ 17.08 $ 14.80 $ 17.08 $ 14.80
Weighted average number
of shares outstanding:
Basic 13,224,612 11,174,947 12,707,837 11,036,046
Diluted 13,824,440 12,304,628 13,538,503 11,415,793
Common shares
outstanding at end of
period 12,824,195 11,419,584 12,824,195 11,419,584
Common shares issued at
end of period 13,665,957 12,162,604 13,665,957 12,162,604
Performance Ratios and
Other Data:
Loan originations for
investment $ 331,999 $ 132,153 $ 611,696 $ 384,779
Loan originations for
sale 280,569 227,810 535,365 318,179
Loan purchases - - 1,541 -
Return on average assets 1.45% 1.23% 1.45% 1.26%
Return on average common
stockholders' equity 17.32% 15.86% 17.85% 16.55%
Interest rate spread(1) 3.69% 3.44% 3.63% 3.47%
Net interest margin(2) 3.81% 3.60% 3.76% 3.62%
Efficiency ratio 40.98% 41.70% 40.23% 41.85%
Capital Ratios:
Equity to assets at end
of period 8.44% 8.71% 8.44% 8.71%
Tier 1 leverage (core)
capital to adjusted
tangible assets3 8.52% 8.27% 8.52% 8.27%
Tier 1 risk-based
capital ratio(3) 13.95% 13.19% 13.95% 13.19%
Total risk-based capital
ratio(3) 14.60% 13.77% 14.60% 13.77%
Tangible capital to
tangible assets(3) 8.52% 8.27% 8.52% 8.27%
Asset Quality Ratios:
Net annualized charge-
offs to average loans
outstanding 0.13% 0.39% 0.28% 0.41%
Non-performing loans to
total loans 0.95% 0.76% 0.95% 0.76%
Non-performing assets to
total assets 0.79% 0.64% 0.79% 0.64%
Allowance for loan
losses to total loans
at end of period 0.52% 0.53% 0.52% 0.53%
Allowance for loan
losses to non-
performing loans 54.92% 68.79% 54.92% 68.79%
_________________________
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. Reflects regulatory capital ratios of BofI Federal Bank.
Add to Digg Bookmark with del.icio.us Add to Newsvine
Company Contact: BofI Holding, Inc. Gregory Garrabrants
President and CEO 858/350-6203
Gregory.Garrabrants@bofifederalbank.com Investor Relations: MZ
Group, Inc. Mark A. McPartland Senior Vice President 1-212-301-7130
markmcp@mzgroup.us
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
