BofI Holding, Inc. (BOFI) Quarterly Net Income Hits New Record, Up 37.6%

BofI Holding, parent of BofI Federal Bank (the “Bank”), this morning reported its financial results for the first quarter ended September 30, 2012. Net income totaled a record $8,989,000, a 37.6% increase over the $6,533,000 reported for the same quarter a year earlier. Earnings attributable to the company’s common stockholders were $8,912,000, or $0.67 per diluted share, for Q1 FY2013, an increase of 15.5% from $6,407,000, or $0.58 per diluted share, for the same period in FY2011.

Core earnings, which exclude the after-tax impact of gains and losses associated with the company’s securities portfolio, increased 35.1% to $9,150,000 for the quarter ended September 30, 2012, compared to $6,771,000 for the quarter ended September 30, 2011.

“For the third consecutive quarter we have posted record earnings primarily as a result of our growth in both our loan portfolio and our fee income businesses,” stated Greg Garrabrants, President and Chief Executive Officer. “Year over year our average interest earning assets grew 22% and our net interest margin of 3.70% this quarter was 5 basis points higher than the quarter ended September 30, 2011. Asset quality remains good with 0.82% of non-performing assets at September 30, 2012. Gain on sale from our mortgage banking business reached a new high of $6.5 million for the first quarter of fiscal 2013. I am also pleased with the shift in our deposit mix which has moved to 45.2% checking, savings and money market at September 30, 2012, up from 26.7% at September 30, 2011.”

“During the first quarter of fiscal 2013, we accomplished a number of key tasks important to the future growth of our business,” added Mr. Garrabrants. Last week, the company moved into its new headquarters location that provides additional space for our expansion.

Several of the company’s newer businesses gained significant traction this quarter. In fact, BofI Holding’s business banking group reached $100 million of deposits only four months after its launch. Furthermore, its warehouse lending business funded $228 million of loans in the month of October after funding less than $40 million in July. Recently raising $18.6 million of Tier 1 capital through the sale of Series C non-cumulative convertible preferred equity at a conversion price of $30.50 per common share, BofI Holding is incredibly well positioned.

Total assets totaled $2,617.3 million as of September 30, 2012, up from $2,386.8 million at June 30, 2012. The loan portfolio increased a net $192.4 million. Investment securities decreased $16.2 million as principal repayments exceeded new security investments. Total liabilities increased by $222.4 million to $2,402.6 million at September 30, 2012. The increase in total liabilities resulted primarily from growth in demand, savings, and time deposits of $237.9 million. Stockholders’ equity increased by $8.1 million, or 3.9%, to $214.7 million at September 30, 2012, up from $206.6 million at June 30, 2012.

The Bank’s Tier 1 capital was 8.20% at September 30, 2012 compared to 8.08% at September 30, 2011. Assuming BofI Holding contributed $26.0 million of its available cash to the bank, the pro forma Tier 1 capital ratio would be 9.19%.

Other Highlights presented by BofI Holding:

• Loan portfolio grew 32.5% compared to September 30, 2011
• Loan originations for three months ended September 30, 2012 were $534.5 million, up 55.8% year over year
• Deposits grew 24.0% compared to September 30, 2011
• Asset quality remains strong with total non-performing assets of 0.82% of total assets and non-performing loans equal to 1.07% of total loans
• Tangible book value increased to $16.36 per share, up $2.07 per share compared to September 30, 2011

Those who wish to participate in today’s conference call and webcast should dial 888-417-8533 and then provide the conference ID # 7206431. International callers should dial 719-457-2697, and then use the same conference ID number. Starting at 4:00 PM Eastern / 1:00 PM Pacific, the conference call will be webcast live and may be accessed at BofI’s Web site, www.bofiholding.com. A replay will be available shortly after the call on BofI’s website for 30 days.

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