Axos Financial (AX) 8-K Regulation FD Disclosure

Investor Presentation

March 13, 2007

Exhibit 99.2

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.

2

Equity Snapshot

Exchange/Symbol:

NASDAQ/BOFI

Price (03/12/07):

$7.03

Shares Outstanding(01/30/07):

8.28   M

Market Capitalization:

$58.21 M

BV Per Share (12/31/06 -

mrq)

$8.01

Price/Book (03/12/07 price/mrq) :

.88 X

Total Assets (12/31/06 -

mrq):

$803.4 M

Publicly traded since:

March 15, 2005

Price/Earnings (03/12/07 price/ttm)

20.09 X

3

Agenda

•

The Bank of Internet Franchise

–

Building Online Customer Trust for Six Years

•

Financial Highlights

–

Five Consecutive Years of Increased Earnings

–

Last Quarter Earnings Up Over Prior Year

•

Update on Steps to Build More

Shareholder Value

–

Changes to Meet Challenging Market Conditions

4

Corporate Overview

To be the premier low-cost operator in the

consumer financial services industry

MISSION STATEMENT

•

Federally charted savings bank

•

Regulated by the Office of Thrift

Supervision

•

Deposits insured by the Federal

Deposit Insurance Corporation

BofI Holding, Inc.

BofI Trust 1

(Trust Preferred)

Bank of

Internet USA

BANK

OF INTERNET USA

5

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 

6

Our Focus

BofI will be the premier low-

cost operator in consumer

financial services

MISSION STATEMENT

7

Mature Industries Evolving

to Lowest Cost Producers

8

Common-sized income statement comparison

BofI generates higher earnings through lower costs

Income Statement Comparison

9

Bank of

All S&Ls-

Assets

Internet USA (1)

$500 Mil -

$1 Bil

ING Bank

NetBank

(In basis points on average assets)

Income:

Interest income

517

575

497

567

Interest expense

377

282

390

356

Net interest income

140

293

107

211

Fees and other income

12

73

2

55

Subtotal -

Income

152

366

109

266

Operating overhead:

Personnel

32

149

20

278

Premises & equipment

13

43

7

121

Other G & A

23

57

24

332

Loan loss provision

-3

9

2

29

Subtotal -

Overhead

65

258

53

760

Pre-tax operating earnings

87

108

56

-494

Securities gains

6

6

2

7

Pre-tax earnings

93

114

58

-487

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.

•

Outsource core banking

system

•

Proprietary CRM and

fraud control

•

No legacy systems

Building Blocks for

Successful Execution

COST EFFECTIVE PROCESS

•

Assembly-line simplicity

•

Streamlined deposit &

loan approval

•

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

10

Annual Net Interest Income vs

Noninterest Expense

2002

2003

2004

2005               2006

Assets in Thousands

Net Interest

Income (in 000s)

Noninterest Expense

EXCLUDING SALARY & WAGES

11

For the Fiscal Years Ended June 30

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

$7,000

$8,000

$9,000

$10,000

$10.4

$13.7

$16.9

$24.4

$29.5

$29.7

Demonstrated Scalability

Assets per Employee at Fiscal Year End

(At Year Ends June 30, and at December 31, 2006)

(full-time equivalent employees)

(Dollars in millions)

Source:  FDIC

2002                  2003                2004                  

2005                  2006                 2006

June 30,                                                     

December 31,                  

Bank Industry Average

12

6,367

9,569

13,653

19,827

22,498

24,272

0

10,000

20,000

2002

2003

2004

2005

2006

December

31, 2006

Total Number of Deposit Accounts

Building Our Online Franchise ……….

13

*

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

Online Deposit Franchise …..

•

Online Retail Deposit Customers in all 50 states

–

six years -

no brokered deposits

•

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

–

increased assets per employee

•

Target Marketing

–

six years experience target marketing on the Internet

•

6%+ Customer Referral Rate

–

six years of customer satisfaction

14

Building Online Lending….

•

Single family online originations for five years

•

Home

equity

originations

–

system

built

in

fiscal

2006 using “BofI best practices”

•

Unique multifamily online origination site

•

Years of online authentication and underwriting

experience

•

Disciplined

lending

and

investing

–

avoiding

the

pitfalls of many early Internet banks

•

Perfect

lending

and

investing

history

–

no

write

offs, no foreclosure sales, etc.

•

Commenced Indirect RV in March-

will add

direct RV and auto lending next quarter.

15

Our Franchise Value …

We Believe in:

•

Our People and Our Service Culture

•

Our Focus on Low Cost Delivery Systems

–

Regularly changing processes and proprietary

software to improve efficiency

•

Our Consistent, Competitive Product Pricing –

Across all product lines

–

customers trust that they are getting a good deal

•

Our Design for the Future of Banking

16

$217.6

$273.5

$405.0

$609.5

$737.8

$803.4

$0

$200

$400

$600

$800

$1,000

2002

2003

2004

2005

2006

December

31, 2006

Total Assets ($ in millions)

Financial Highlights

Asset Growth

17

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

*

$5,088

$6,530

$8,969

$9,955

$4,939

$0

$2,000

$4,000

$6,000

$8,000

$10,000

2003

2004

2005

2006

Six Months Ended

December 31, 2006

Net Interest Income

($ in thousands)

18

* For each fiscal year ended June 30 and year to date for last quarter.

*

Net Interest Income Growth

$1,730

$2,175

$2,869

$3,266

$1,553

$-

$1,000

$2,000

$3,000

$4,000

2003

2004

2005

2006

Six Months Ended

December 31, 2006

Net Income ($ in thousands)

19

*

* For each fiscal year ended June 30 and year-to-date at most recent quarter..

Net Income Growth

Multifamily mortgages –

49%

Single family mortgage –

17% 

(includes home equity loans)

Commercial real estate loans–

2%

Mortgage-backed securities –

32%

FNMA, FHLMC, GNMA

NO SUBPRIME LOANS OR

SUBPRIME MBS

Investment in High Quality Assets

2%

17%

32%

49%

Investments by Type

December 31, 2006

20

14%

4%

5%

34%

12%

10%

5%

6%

6%

4%

California - Southern

California - Northern

Washington

Colorado

Arizona

Texas

Illinois

Florida

Oregon

All other states

Geographic Breakdown

Mortgage Loans

As of December 31, 2006

21

History of Quality Assets

Since inception through

December 31, 2006, 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

Allowance for Loan Losses

$0

$500

$1,000

$1,500

Jun-02

Jun-03

Jun-04

Jun-05

Jun-06

Dec-06

0.24%

0.26%

0.28%

0.30%

0.32%

0.34%

Allowance for loan loss

Allowance as % of gross loans

Loan to Value for 1st Liens and Combined

Loan to Value for 2nd Liens: Expected March

31, 2007

62.00%

51.00%

0%

10%

20%

30%

40%

50%

60%

70%

1st Mortgage LTV

2nd Mortgage Combined LTV

Weighted Average

22

Stable Deposit Base,

Managed Interest Rate Risk

More than 24,000 online deposit

customer accounts

34% of accounts are checking and

savings (December 31, 2006)

More than 95% retail funded deposits

–

no brokered CDs

FHLB Advances and Reverse

Repurchase Agreements -

Principally

used as a interest rate hedging vehicle

-

Weighted-average rate of 4.30% at

December 31, 2006.

23

Mix of Funding

($ in millions)

December 31, 2006

$147.0

$63.4

$256.0

$257.2

Time deposits-

less

$100k

Time deposits-

$100k+

Checking and

savings accounts

Advances and

Repurchase

Borrowings

Liability Growth by Type

($ in Millions)

(At June 30, 2006)

$0

$100

$200

$300

$400

$500

$600

$700

2001

2002

2003

2004

2005

2006

($000)

Checking and savings

Time deposits

Advances from FHLB

Last Quarter Financial Data

Dec 2005 and Dec 2006

24

2005

2006

Net Income (000s)

750

$        

807

$          

Diluted Earnings Per Share

0.08

$       

0.09

$         

Return on Avg Common Stockholders' Equity

4.14%

4.39%

Efficiency Ratio (1)

50.5%

56.0%

G & A to Avg Assets

0.85%

0.83%

Total Assets (000s)

681,492

$  

803,368

$  

Loan Portfolio (000s)

545,208

$  

512,935

$  

Mortgage-backed Securities Available for Sale

79,401

$   

198,532

$  

Total Deposits (000s)

399,387

$  

466,418

$  

Book Value Per Common Share

7.61

$       

8.01

$         

(1) Non-interest expense divided by the sum of net interest income and non-interest income.

December 31,

For or At the Quarter Ended

*

Our Task ……………

Work to Improve:

•

Earnings Per Share

•

Return on Equity

•

Efficiency Ratio

Get to our goals

•

10%+ ROE

•

Less than 40% Efficiency Ratio

•

$1 Billion in Assets

•

Continue reducing G&A to average assets

25

3 Steps

to Build More

Shareholder Value in

Fiscal 2007

26

Step One –

Generate Higher Yielding Loans

•

Originate high-volume online consumer loans-

update

•

Home Equity Lending –

expanded to 45

states

•

Indirect RV Lending-

started in March -

processing

new

loans daily

•

Direct Auto and RV Lending-

online software

nearly

complete

•

1

st

goal is $10mm in originations per month

Building Shareholder Value

27

Lending Initiatives –

Update

Preliminary statistics on our home equity and RV loans at

quarter ended March 31, 2007:

•

-

Home equity loan portfolio to have a weighted

average rate of approximately 7.20%, an average

FICO score of approximately 760 and a combined

loan to value of approximately 62%

•

-

RV portfolio to have a weighted average rate of

approximately 7.70% and a FICO of greater than

700.

28

Step Two –

•

Deploy Capital with new loan growth

–

Can grow assets to $1 Billion -

match asset growth

with production of higher yielding consumer loans

and other opportunities for loans

–

Seek to replace lower yielding loan principal repays

with higher rate consumer loans  

•

Position for Re-Deployment When Yield Curve

Comes Back –

yield curve “lift”

–

MBS available for sale to re-deploy into other assets

Building Shareholder Value

29

Yield Curve & Net Interest Margin

2003 –

2.11%

2004 –

2.04%

2005 –

1.87%

2006 -

1.51%

B of I Fiscal Yr: NIM%

30

Impact of 25 and 50 bps NIM Growth

Hypothetical for Fiscal 2005 and 2006

$218,000

$273,000                    $405,000                 $609,000

$738,000

2002

2003

2004

2005

2006

Assets in Thousands

31

For the Fiscal Years Ended June 30

Hypothetical –

applying 25 and 50 bps increase to actual average

earnings assets of  $479 mil and $659 mil for fiscal 2005 and 2006

$10.2

$13.3

$(000)

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

$7,000

$8,000

$9,000

$10,000

$9.0

$10.0

“Lift”

Step Three –

Leverage Value of “Online”

Assets

•

Affiliate Marketing

–

Added more than 100 Internet affiliates

•

Social Marketing

–

Affinity Marketing to RV owners next quarter

Building Shareholder Value

32

Our Three Steps

-

summary

•

Generate Higher Yielding Loans

•

Match Asset Growth with Loan Growth -

Deploy

Capital with New Loans / the yield lift  

•

Leverage the Value of “Online”

Assets-

Affiliate

Marketing and Social Networking

33

Investment Highlights

34

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 –

book value