Axos Financial (AX) 8-K Regulation FD Disclosure

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): August 22, 2006

B of I HOLDING, INC.

(Exact name of registrant as specified in its charter)

Delaware	000-51201	33-0867444
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification Number)

12777 High Bluff Drive, Suite 100, San Diego, CA	92130
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code: (858) 350-6200

Not Applicable

(Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

¨ Written communications pursuant to Rule 425 under the Securities Act

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act

TABLE OF CONTENTS

Item 7.01:Regulation FD Disclosure	3
SIGNATURE	10

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Item 7.01 Regulation FD Disclosure.

BofI Holding, Inc. (BOFI) provided the following financial schedules to an analyst on August 22, 2006 as a follow up to a request made during BOFI’s fourth quarter earnings conference call on August 9, 2006.

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FINANCIAL SCHEDULES

BofI HOLDING, INC. AND SUBSIDIARY

CONSOLIDATED BALANCE SHEETS

(Dollars in thousands, except share data)

(Unaudited)

	June 30, 2006			June 30, 2005
ASSETS
Cash and due from banks	$	1,483		$	3,047
Money market mutual funds		—			52
Federal funds sold		23,805			20,712
Total cash and cash equivalents		25,288			23,811
Time deposits in financial institutions		16,439			12,185
Investment securities held to maturity		12,375			7,711
Stock of the Federal Home Loan Bank, at cost		11,111			8,126
Mortgage-backed securities available for sale		127,261			62,766
Loans — net of allowance for loan losses of $1,475 in June 2006, $1,415 in June 2005		533,641			486,872
Loans held for sale		—			189
Accrued interest receivable		3,427			2,355
Furniture, equipment and software — net		222			214
Deferred income tax		865			293
Bank-owned life insurance — cash surrender value		4,199			4,047
Other assets		3,007			939
TOTAL	$	737,835		$	609,508
LIABILITIES AND STOCKHOLDERS’ EQUITY
Deposits:
Non-interest bearing	$	1,203		$	8,225
Interest bearing		423,001			352,826
Total deposits		424,204			361,051
Advances from the Federal Home Loan Bank		236,177			172,562
Junior subordinated debentures		5,155			5,155
Accrued interest payable		1,155			653
Income tax payable		—			252
Accounts payable and accrued liabilities		898			1,185
Total liabilities		667,589			540,858
STOCKHOLDERS’ EQUITY:
Convertible preferred stock — $10,000 stated value; 1,000,000 shares authorized; 525 shares issued and outstanding (June 2006) and 675 issued and outstanding (June 2005)		5,163			6,637
Common stock — $.01 par value; 25,000,000 shares authorized; 8,561,725 shares issued and 8,380,725 shares outstanding (June 2006) and 8,299,823 shares issued and outstanding (June 2005)		85			83
Additional paid-in capital		59,124			56,746
Accumulated other comprehensive income (loss), net of tax		(885	)		6
Retained earnings		8,084			5,178
Treasury stock		(1,325	)		—
Total stockholders’ equity		70,246			68,650
TOTAL	$	737,835		$	609,508

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BofI HOLDING, INC. AND SUBSIDIARY

CONSOLIDATED STATEMENTS OF INCOME

(Dollars in thousands, except earnings per share)

(Unaudited)

	Three Months Ended June 30,					Year Ended June 30,
	2006			2005		2006		2005
INTEREST AND DIVIDEND INCOME:
Loans, including fees	$	7,445		$	5,275	$	27,629	$	19,625
Investments		1,639			1,089		5,084		2,856
Total interest and dividend income		9,084			6,364		32,713		22,481
INTEREST EXPENSE:
Deposits		4,268			2,729		14,930		8,938
Advances from the Federal Home Loan Bank		2,267			1,208		7,466		4,219
Other borrowings		99			89		362		355
Total interest expense		6,634			4,026		22,758		13,512
Net interest income		2,450			2,338		9,955		8,969
Provision for loan losses		(100	)		185		60		370
Net interest income, after provision for loan losses		2,550			2,153		9,895		8,599
NON-INTEREST INCOME:
Prepayment penalty fee income		143			172		721		452
Mortgage banking income		30			103		289		177
Banking service fees and other income		92			64		332		278
Total non-interest income		265			339		1,342		907
NON-INTEREST EXPENSE:
Compensation:
Salaries and benefits		549			536		2,386		2,450
Stock options and stock grants		105			—		409		—
Total compensation		654			536		2,795		2,450
Professional services		85			55		443		256
Occupancy and equipment		88			73		347		270
Data processing and internet		132			100		491		373
Depreciation and amortization		20			25		89		107
Service contract termination		—			—		—		59
Other general and administrative		441			331		1,624		1,230
Total non-interest expense		1,420			1,120		5,789		4,745
INCOME BEFORE INCOME TAXES		1,395			1,372		5,448		4,761
INCOME TAXES		553			537		2,182		1,892
NET INCOME	$	842		$	835	$	3,266	$	2,869
NET INCOME ATTRIBUTABLE TO COMMON STOCK	$	763		$	734	$	2,906	$	2,464
Basic earnings per share	$	0.09		$	0.09	$	0.35	$	0.43
Diluted earnings per share	$	0.09		$	0.09	$	0.34	$	0.40

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BofI HOLDING, INC. AND SUBSIDIARY

CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY AND COMPREHENSIVE INCOME

(Dollars in thousands)

(Unaudited)

	Convertible Preferred Stock					Common Stock							Additional Paid in Capital		Retained Earnings			Accumulated Other Comprehensive Loss, Net of Tax			Treasury Stock			Total
						Number of Shares
	Shares		Amount			Issued	Treasury		Outstanding		Amount
BALANCE — July 1, 2005	675		$	6,637		8,299,823	—		8,299,823		$	83	$	56,746	$	5,178		$	6		$	—		$	68,650
Comprehensive income:
Net income	—			—		—	—		—			—		—		3,266			—			—			3,266
Net unrealized loss from available for sale securities — net of income tax benefit	—			—		—	—		—			—		—		—			(891	)		—			(891	)
Total comprehensive income																									2,375
Purchase of treasury stock	—			—		—	(163,500	)	(163,500	)		—		—		—			—			(1,325	)		(1,325	)
Conversion of preferred to common stock	(150	)		(1,474	)	142,800			142,800			1		1,473											—
Exercise of common stock options	—			—		101,602	—		101,602			1		496		—			—			—			497
Cash dividends on convertible preferred stock	—			—		—			—					—		(360	)		—			—			(360	)
Restricted stock awards	—			—		17,500	—					—				—			—			—			—
Restricted stock compensation expense	—			—		—	—		—			—		52		—			—			—			52
Stock option compensation expense	—			—		—	—		—			—		357		—			—			—			357
BALANCE — June 30, 2006	525		$	5,163		8,561,725	(163,500	)	8,380,725		$	85	$	59,124	$	8,084		$	(885	)	$	(1,325	)	$	70,246

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LOANS

The following table sets forth the composition of the portfolio of loans held for investment at June 30:

	2006					2005
	Amount			Percent		Amount			Percent
	(Unaudited. Dollars in thousands.)
Residential real estate loans:
Single family (one to four units)	$	113,870		21.5	%	$	62,403		12.9	%
Multifamily ( five units or more)		402,166		75.9	%		406,660		84.2	%
Commercial real estate and land		13,743		2.6	%		14,181		2.9	%
Consumer loans and other		81		0.0	%		40		0.0	%
Total loans		529,860		100.0	%		483,284		100.0	%
Allowance for loan losses		(1,475	)				(1,415	)
Unamortized premiums, net of deferred loan fees		5,256					5,003
Net loans	$	533,641				$	486,872

DEPOSITS

Deposits accounts are summarized as follows at June 30:

	2006				2005
	Amount		Rate*		Amount		Rate*
	(Unaudited. Dollars in thousands.)
Non-interest bearing	$	1,203	0.00	%	$	8,225	0.00	%
Interest bearing:
Demand		35,978	2.79	%		33,187	1.93	%
Savings		28,980	3.58	%		50,408	2.13	%
Time deposits:
Under $100,000		228,204	4.52	%		178,566	3.60	%
$100,000 or more		129,839	4.54	%		90,665	3.54	%
Total time deposits		358,043	4.52	%		269,231	3.58	%
Total interest bearing		423,001	4.31	%		352,826	3.22	%
Total deposits	$	424,204	4.30	%	$	361,051	3.14	%

* Based on weighted-average stated interest rates.

The number of deposit accounts at June 30, 2006 and at June 30, 2005 and 2004 are set forth below.

	2006	2005	2004
Checking and savings accounts	8,195	8,829	9,588
Time deposits	14,303	10,998	4,065
Total number of deposit accounts	22,498	19,827	13,653

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AVERAGE BALANCE AND RATE ANALYSIS

The following tables presents information regarding (i) average balances; (ii) the total amount of interest income from interest-earning assets and the weighted average yields on such assets; (iii) the total amount of interest expense on interest-bearing liabilities and the weighted average rates paid on such liabilities; (iv) net interest income; (v) interest rate spread; and (vi) net interest margin for the three month periods and for the years ended June 30, 2006 and 2005.

	For the Three Months Ended June 30,
	2006						2005
	Average Balance		Interest Income / Expense		Rates Earned / Paid(1)		Average Balance		Interest Income / Expense		Rates Earned / Paid(1)
	(Unaudited, Dollars in thousands)
Assets
Loans (2) (3)	$	552,119	$	7,445	5.39	%	$	427,734	$	5,275	4.93	%
Federal funds sold		10,148		123	4.85	%		18,672		133	2.85	%
Interest-bearing deposits in other financial institutions		16,167		211	5.22	%		11,161		103	3.69	%
Investment securities (3) (4)		109,722		1,176	4.29	%		85,818		774	3.61	%
Stock of FHLB, at cost		10,754		129	4.80	%		7,190		79	4.39	%
Total interest-earning assets		698,910		9,084	5.20	%		550,575		6,364	4.62	%
Noninterest-earning assets		9,960						9,016
Total assets	$	708,870					$	559,591
Liabilities and Stockholders’ Equity:
Interest-bearing demand and savings	$	66,376	$	516	3.11	%	$	86,531	$	514	2.38	%
Time deposits		343,995		3,752	4.36	%		253,694		2,215	3.49	%
Advances from the FHLB		218,653		2,267	4.15	%		138,425		1,208	3.49	%
Other borrowings		5,155		99	7.68	%		5,155		89	6.91	%
Total interest-bearing liabilities		634,179		6,634	4.18	%		483,805		4,026	3.33	%
Noninterest-bearing demand deposits		1,569						5,268
Other interest-free liabilities		2,600						2,160
Stockholders’ equity		70,522						68,358
Total liabilities and stockholders’ equity	$	708,870					$	559,591
Net interest income			$	2,450					$	2,338
Net interest spread (5)					1.02	%					1.29	%
Net interest margin (6)					1.40	%					1.70	%

(1) Annualized.

(2) Loans include loans held for sale, allowance for loan losses, loan premiums and unearned fees.

(3) Interest income includes reductions for amortization of loan and investment securities premiums and earnings from accretion of discounts and loan fees. Loan fee income is not significant. The rate earned on loans does not include loan prepayment penalty income, which is classified as non-interest income.

(4) All investments are taxable.

(5) Interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average rate paid on interest-bearing liabilities.

(6) Net interest margin represents net interest income as a percentage of average interest-earning assets.

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	For the Years Ended June 30,
	2006						2005
	Average Balance		Interest Income / Expense		Rates Earned / Paid		Average Balance		Interest Income / Expense		Rates Earned / Paid
	(Unaudited. Dollars in thousands.)
Assets
Loans (1) (2)	$	533,522	$	27,629	5.18	%	$	393,144	$	19,625	4.99	%
Federal funds sold		7,129		310	4.35	%		14,606		317	2.17	%
Interest-bearing deposits in other financial institutions		14,947		666	4.46	%		9,930		300	3.01	%
Investment securities (2) (3)		94,297		3,642	3.86	%		55,116		1,973	3.58	%
Stock of FHLB, at cost		9,675		466	4.82	%		6,253		266	4.25	%
Total interest-earning assets		659,570		32,713	4.96	%		479,049		22,481	4.69	%
Noninterest-earning assets		9,493						8,767
Total assets	$	669,063					$	487,816
Liabilities and Stockholders’ Equity:
Interest-bearing demand and savings	$	72,288	$	2,040	2.82	%	$	105,172	$	2,082	1.98	%
Time deposits		321,817		12,890	4.01	%		205,530		6,856	3.34	%
Advances from the FHLB		193,632		7,466	3.86	%		122,166		4,219	3.45	%
Other borrowings		5,155		362	7.02	%		5,349		355	6.64	%
Total interest-bearing liabilities		592,892		22,758	3.84	%		438,217		13,512	3.08	%
Noninterest-bearing demand deposits		4,021						4,746
Other interest-free liabilities		2,500						1,608
Stockholders’ equity		69,650						43,245
Total liabilities and stockholders’ equity	$	669,063					$	487,816
Net interest income			$	9,955					$	8,969
Net interest spread (4)					1.12	%					1.61	%
Net interest margin (5)					1.51	%					1.87	%

(1) Loans include loans held for sale, allowance for loan losses, loan premiums and unearned fees.

(2) Interest income includes reductions for amortization of loan and investment securities premiums and earnings from accretion of discounts and loan fees. Loan fee income is not significant. The rate earned on loans does not include loan prepayment penalty income, which is classified as non-interest income.

(3) All investments are taxable.

(4) Interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average rate paid on interest-bearing liabilities.

(5) Net interest margin represents net interest income as a percentage of average interest-earning assets.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	B of I HOLDING, INC.
Date: August 22, 2006	By:	/s/ Gary Lewis Evans
		Gary Lewis Evans President and Chief Executive Officer

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