Axos Financial 8K BofI Holding, Inc. to Present at ACB's Community Bank Investor Conference and the Wall Street Analyst Forums' 18th Annual Analyst Conference | AX 23 May 07

ACB INVESTOR PRESENTATION

San Francisco CA

May 24, 2007

Item 7.01: FD Disclosure

The Wall Street Analyst Forum

INVESTOR PRESENTATION

May 24, 2007

Safe Harbor

Statements contained in the slide show presentation that state expectations or predictions about the future are forward-looking statements intended to be covered by the safe harbor provisions of the Securities Act and the Exchange Act. The Registrant’s actual results could differ materially from those projected in such forward-looking statements. Factors that could affect those results include “Risk Factors” and the other factors appearing in the documents that the Registrant has filed with the Securities and Exchange Commission.

Exchange/Symbol: NASDAQ/BOFI

Price (05/15/07): $7.20

Shares Outstanding (05/02/07): 8.28M

Market Capitalization (05/15/07): $59.62M

BV Per Share (03/31/07 - mrq) $8.21

Price/Book (03/31/07 price/mrq) : ..88X

Total Assets (03/31/07 - mrq): $846.98M

Publicly traded since: March 15, 2005

Price/Earnings (03/31/07 price/ttm) 20.57X

Equity Snapshot

Investment Highlights

•

The Internet creates an opportunity for a

more efficient banking model

•

BofI has a unique, low-cost, and scalable

operating model

•

Proprietary software and technology

•

Strong record of growth and profitability

•

Portfolio of high quality assets nationwide

•

Attractive valuation

MISSION STATEMENT

Our Focus

BofI will be the premier low-

cost operator in consumer

financial services

AGENDA

•

The Bank of Internet Franchise

–

Building Online Customer Trust for Seven Years

–

Banking Consumers in all 50 States

•

Financial Highlights

–

Five Consecutive Years of Increased Earnings

–

Two Consecutive Quarters of Increased Earnings

•

Changes to Meet Challenging Market

Conditions

–

New Lending and Affiliate Initiatives

2002 2003 2004 2005 2006

Assets in Thousands

Net Interest

Income (in 000s)

Noninterest Expense EXCLUDING SALARY & WAGES

Comparison of Net Interest Income to Operating Cost

Our Business Model – Internet Efficiency

Assets Per Employee

•

At March 31, 2007, B of I had 35

employees or $24.2M in assets per

employee.

•

Typical bank has approximately $6.0M

in assets per employee

Personnel Efficiency

Common-sized income statement comparison

BofI generates earnings through lower costs

Source: FDIC - Statistics on Depository Institutions – Year ended 12/31/2006.

(1) Excludes operating income and expense of BofI Holding, Inc. Holding company data is also not included in competitor information.

Income Statement Comparison

•

Outsource core banking

system

•

Proprietary CRM and fraud

control

•

No legacy systems

COST EFFECTIVE PROCESS

•

Assembly-line work flow

•

Automated deposit & loan

processing

•

Real-time customer

information

SCALABLE TECHNOLOGY

•

Superior risk management

•

Quality underwriting

•

Intelligent product

selection

EXPERIENCED

MANAGEMENT

•

Self-service design

•

Efficient automation

•

Minimal manual

intervention

AUTOMATED SERVICE

Kai-Zen

Change Improvement

Building Blocks for

Successful Execution

Online Deposit Franchise …..

•

Online Retail Deposit Customers in all 50 states

•

Proprietary Technology & Customer Data Base

–

six-year proprietary data base of Internet activity

support unique fraud control

•

Proprietary Process

–

years of process improvements

•

Demonstrated Scalability

•

Target Marketing

–

six years experience target marketing on the Internet

•

6%+ Customer Referral Rate

Increase in Deposits (45 days, 3/31/07 – 5/15/07):

5.8% Growth

Driving Growth – Time Deposits:

$57.3M / 1,673 accounts*

WA Rate: 5.22%

WA Term: 38.5 months

Average Balance: $34K

A staff of 10 people opened these retail deposits and serviced 24,000

accounts

* - new and existing time deposit accounts with term change

Snap Shot of Deposit Growth

* At each fiscal year end June 30 and most recent quarter.

Building Our Online Franchise ……….

Building Online Lending….

•

Unique multifamily online origination site

•

Single family online originations for six years

•

Years of online authentication and underwriting experience

•

Home equity originations – system built in fiscal 2006

•

Commenced Indirect RV in March – will use experience to start online

vehicle lending in June 2007

•

Disciplined lending and investing – avoiding the pitfalls of many Internet

Banks such as Netbank, CompuBank, Next Card

•

Perfect lending and investing history – no write offs, no foreclosure

sales, etc.

Online Origination of Home Equity Loans (45 days, 3/31/07 –

5/15/07):

$4.4M funded in 35 states

Driving Growth – Best Rates for High Quality Customers:

116 loans

WA Rate: 7.12%

Average 2^nd Lien Balance: $38k

CLTV: 56.1%

Average 1^st Lien: $166k

Weighted Average FICO: 772

Lending Initiatives –

Online Home Equity Snap Shot

Indirect RV Lending

- Adding Risk Adjusted Yield

•

We believe risk adjusted yields on RV loans are

superior to many prime mortgage products in the
current environment

•

Higher rates and larger balances than prime autos

•

Good demographic match to current customer mix

•

Indirect dealer network, reduce startup time and

marketing cost, while building systems for online
consumer direct network

Total indirect funded: $6.9B in 2005

Indirect outstanding: $19.0B

Avg. down payment: 12%

New: 70% Used: 30%

Avg. age of used RV: 38 months

Avg. 30 day+: .65%

SOURCE: RVIA 2005

Lending Initiatives

Indirect RV - Industry Lending Data

SOURCE: RVIA 2005

Delinquency Trends

BofI

$14.4B

Units Sold

Owner

384,400

Units

80% Towable

20% MH

17% Goes to

Pacific Reg.

3,100

Dealerships

Years Old

Loves their

RV!

Married

Homeowner

$68,000

SOURCE: RVIA 2005

RV Industry Market

Our Franchise Value …

•

Our People and Our Service Culture

•

Our Success Building Low Cost Delivery

Systems

–

Regularly changing processes and proprietary

software to improve efficiency (Kai-Zen)

•

Our Consistent, Competitive Pricing

–

Across all product lines

–

Customers trust that they are getting a good deal

•

Our Design for the Future of Banking

* For each fiscal year ended June 30 and year-to-date at 3^rd quarter end.

Financial Highlights

Net Income Growth

* At each fiscal year end June 30 and most recent quarter.

Asset Growth

Multifamily mortgages – 45%

Single family mortgage – 13%

Commercial real estate loans– 2%

RV Loans– 1%

Home equity loans– 1%

Mortgage-backed securities – 38%

FNMA, FHLMC, GNMA

NO SUBPRIME LOANS OR

SUBPRIME MBS

Earning Assets by Type

March 31, 2007

Investment in High Quality Assets

Mortgage Loan Principal

by Location of Collateral

As of March 31, 2007

Includes all

Property
Types:

-Multifamily,

-Single family
(1^st & 2nd)

-Commercial

Geographic Breakdown

History of Quality Assets

Since inception through

March 31, 2007, BOFI has
had no mortgage-loan:

Write-offs

Foreclosure sales

Restructurings

No subprime loans or

mortgage-backed securities

Loan portfolio is supported by

exceptional LTVs

With growth in consumer

loans, unlikely to continue
perfect credit history

More than 24,000 online deposit

customer accounts

34% of accounts are checking and

savings (March 31, 2007)

No brokered CDs

FHLB Advances and Reverse

Repurchase Agreements - used as a interest rate hedging vehicle approximately 4.32% at March 31, 2007.

Stable Deposit Base,

Managed Interest Rate Risk

Last Quarter Financial Data

March 2006 and March 2007

Changes for a Challenging

Environment

•

Generate Higher Yielding Consumer Loans

–

Originate high quality home equity and RV loans

nationwide

–

High volume acquisition through the Internet

–

A good risk adjusted alternative to a flat yield curve

•

Leverage the Value of “Online” Assets- Affiliate

Marketing and Social Networking

Marketing Initiatives

Leverage Value of “Online” Assets

Implemented Affiliate Marketing

•

Social Marketing

–

Started Affinity Marketing to RV owners

through an agreement with Camping WorldStarted

–

RVBank.com

–

Pay for performance

•

Drive Down Account Acquisition Costs

–

Pay for performance

•

Investment Highlights

Attractive valuation

The Internet creates an opportunity for a more

efficient banking model

BofI has a unique, low-cost and scalable

operating model

Proprietary software and technology

Strong record of growth and profitability

Portfolio of high quality assets nationwide

Axos Financial (AX) 8-KBofI Holding, Inc. to Present at ACB's Community Bank Investor Conference and the Wall Street Analyst Forums' 18th Annual Analyst Conference