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Wednesday, Apr 17, 2024
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3 Takeaways From BofI Federal Bank’s Earnings Report

BofI Holding, Inc., the holding company for San Diego-based BofI Federal Bank, reported its earnings Tuesday for the first three months of the year, which for BofI is its third fiscal quarter.

  1. The numbers look good. Net income hit a record high with BofI ending the quarter on March 31 with $41 million in net income, up 14.1 percent compared to the $35.9 million in the same quarter of 2016. Total assets were also up, rising to about $8.7 billion, an increase of nearly $1 billion over the previous year, an increase of 12.9 percent. Non-interest income, however, fell slightly to $23.2 million compared to $23.3 million in the first three months of the prior year. The bank pinned the decrease in part on a reduction in mortgage banking income.

  2. CEO Greg Garrabrants remains peeved at BofI critics. The chief executive, who has been known to testily address the bank’s critics on earnings calls, didn’t disappoint Tuesday. He shot back at the bank’s vocal contingent of short sellers, pointing to BofI’s increased earnings per share, decrease in nonperforming assets and improvement in its net interest margin, among other metrics, since the company became a popular target for short sellers about three years ago. He also noted the company has had its financials audited repeatedly, has passed Office of the Comptroller of the Currency exams and gotten regulatory OK for two acquisitions in that time.

  3. Speaking of, BofI is still shopping. Garrabrants, in response to an analyst’s question, affirmed the bank continues to keep an eye out for potential additional acquisitions. The company has an “active” M&A pipeline, he said. In 2014 the bank acquired H&R Block’s banking business, and about a year ago, the bank acquired a substantial portion of Pacific Western Bank’s equipment finance division, including the division’s entire senior management team and $140 million worth of equipment leases.

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