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 |
| Item 7.01: Regulation FD Disclosure |
3 | |||
| 10 | ||||
2
| 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.
3
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 | |||
4
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 | |||||
5
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 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 | ||||||||||||||||
6
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 | |||
7
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. |
8
| 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. |
9
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 | ||||||||
10