BofI Holding offers its financial services in an unconventional manner that caters to two key consumer metrics: cost savings and convenience. Rather than having any physical branches, BofI operates through its online subsidiary, Bank of Internet USA, which drastically cuts overhead and fixed operating costs, allowing the bank to pay higher interest rates and charge lower fees on its consumer deposit and loan products. The bank has $2.8 billion in assets, which are managed through a single headquarter location in San Diego, Calif.
This virtual business structure has fared well for the bank, which for the last four years has steadily increased its deposit base and total loans, and recently achieved its fourth consecutive quarter of record earnings at $9.7 million.
More than 40,000 customers scattered across all 50 states take advantage of the company’s virtual presence, receiving an APR of up to 1.25% on checking accounts, well below the national average of $0.05%.
Bofl closed out the end of fiscal 2008 with $570.7 million in total deposits. As of the end of 2012, BofI’s deposit base sat at nearly $2.0 billion, representing annual deposit growth of approximately 44.5% over the last four years as the economy struggled its way out of the great recession.
The bank has also saw an increase in total loans for the same period, from $631.4 million in 2008 to $1.7 billion by the end of 2012. The bank leans toward consumer lending; only 5.9% of the loans at the end of the last quarter were issued to commercial customers. The bank’s nonperforming loan ratio demonstrates considerable strength when compared to many other banks still burdened by the sub-prime lending disaster of 2007. By the end of December, BofI’s nonperforming loan ratio was 0.95%, well below the industry average of 3.6%.
Furthermore, the bank boasts an efficiency ratio of 40.9%, trailed by industry behemoths like New York Community Bankcorp (NYCET) at $43.3% and Wells Fargo (WFC) at $58.8%.
For more information visit www.bankofinternet.com/bofi
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