To many, the future of banking is best represented by institutions like BofI Holding (better known as BofI Federal Bank). BofI (Bank of Internet) operates under the branchless-bank model, where traditional physical bank branches are replaced with state-of-the-art online banking technology, available through mobile applications as well as standard browsers. The clear advantages, such as anytime-anyplace availability for customers and reduced operating costs for the bank, continue to drive the model’s growth. It has also helped drive the growth of the movement’s leading-edge representatives such as BofI, whose stated goal is to become “the most innovative branchless bank in the United States providing products and services superior to our competitors, branch-based or otherwise.”
The bank’s just-released financial results for the 2nd fiscal quarter, ended December 31, 2011, reflect the success they’ve had in bringing the model to the marketplace:
• Net income for the 2nd quarter was $6,660,000, up 35.2% from the same quarter last year. Net income for the 6 months ending December 31, 2011, was $13,193,000, also up 35.2% from the same 6 months last year.
• Total assets as of December 31, 2011, were $2,224,000,000, an increase of $283,000,000 compared with just 6 months earlier, 6/30/11, especially strong since the company chose to sell portfolio eligible loans of approximately $128,000,000.
• Return On Equity reached 15.9% for the quarter.
• Total deposits reached $1,553,000,000, up 39.1% from the same time last year.
• Non-performing assets were 64 basis points, down from 80 basis points in the prior quarter.
• BofI’s mortgage loan pipeline remains very strong, at $85.2 million for single-family, $139.5 million for single-family jumbo, and $64 million for multi-family property loans.
• The bank’s loan portfolio is further strengthened by BofI’s continued emphasis on credit quality, with the average FICO for single family agency eligible production of 782, and LTV (loan-to-value) ratio of 57%. Single family jumbo loans had an average FICO of 740 with an average LTV of 57%.
In addition, BofI’s market reach continues to expand. In January, BofI launched their American Senior Association Banking Center, to serve the 12 million member American Senior Association, the second largest senior organization in the country. Other organization centers are to be launched soon. BofI is also in the process of testing new mobile banking applications, having rolled out their iPhone and Android applications last quarter. The goal is to be available to everyone, anytime and anyplace, with the most comprehensive and convenient banking services.
To listen to a replay of the conference call, or to learn more about the company as a whole, visit the company website at www.BOFIFederalBank.com
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