Form 8-K BofI Holding, Inc. For: Jul 30
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): July 30, 2015
BofI 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) |
4350 La Jolla Village Drive, Suite 140, San Diego, CA | 92122 |
(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 (see General Instruction A.2. below):
o Written communications pursuant to Rule 425 under the Securities Act
o Soliciting material pursuant to Rule 14a-12 under the Exchange Act
o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act
o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act
Item 2.02 Results of Operations and Financial Condition
On July 30, 2015, BofI Holding, Inc. (the “Registrant”), parent of BofI Federal Bank, issued a press release announcing its unaudited earnings for the fourth quarter and fiscal year ended June 30, 2015. A copy of the press release and unaudited financial schedules are set forth as Exhibit 99.1 and 99.2 respectively, and are incorporated by reference in this Item 2.02.
Pursuant to General Instruction B.2 of Form 8-K, the information in this Item 2.02 of Form 8-K, including Exhibit 99.1 and 99.2 are being furnished pursuant to Item 2.02 and shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934 or otherwise be subject to the liabilities of that section, nor are they incorporated by reference into any filing of the Registrant under the Securities Act of 1933 or the Securities Exchange Act of 1934, whether made before or after the date hereof, regardless of any general incorporation language in such filing.
Item 9.01 - Financial Statements and Exhibits
(d) Exhibits.
Exhibit | Description | |
99.1 | Press Release of BofI Holding, Inc. dated July 30, 2015 | |
99.2 | Financial Schedules |
SIGNATURE
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.
BofI Holding, Inc. | ||||
Date: | July 30, 2015 | By: | /s/ Andrew J. Micheletti | |
Andrew J. Micheletti | ||||
EVP and Chief Financial Officer |
For Immediate Release
BofI Holding, Inc. Announces Record Fourth Quarter Net Income of $24.4 million
Q4 Diluted EPS Increases 41.3%; Full-Year Diluted EPS Increases 39.5%
SAN DIEGO, CA – (MARKETWIRED) – July 30, 2015 – BofI Holding, Inc. (NASDAQ: BOFI) (“BofI”), parent company of BofI Federal Bank (the “Bank”), today announced financial results for the fourth quarter and the fiscal year ended June 30, 2015. Net income was a record $24.4 million, an increase of 52.4% over net income of $16.0 million for the quarter ended June 30, 2014. Earnings attributable to BofI’s common stockholders were $24.3 million or $1.54 per diluted share for the fourth quarter of fiscal 2015, an increase of 52.6% from $15.9 million or $1.09 per diluted share for the fourth quarter of fiscal 2014.
Adjusted earnings, a non-GAAP measure previously labeled “core earnings,” which excludes the after-tax impact of gains and losses associated with the Bank’s securities portfolio, increased 45.7% to $23.5 million for the quarter ended June 30, 2015 compared to $16.1 million for the quarter ended June 30, 2014. In the fourth quarter of fiscal 2015 the Company received a one-time dividend of $1.7 million, before tax, from the FHLB as a result of the Federal Home Loan Bank’s ("FHLB") private-label mortgage-backed securities litigation settlement. Adjusted earnings in the table below excludes the after-tax impact of this one-time dividend.
Fourth Quarter Fiscal 2015 Financial Summary:
Three Months Ended June 30, | |||||||||
(Dollars in thousands, unaudited) | Q4 Fiscal 2015 | Q4 Fiscal 2014 | YOY Change | ||||||
Net Interest Income | $ | 55,294 | $ | 40,496 | 36.5% | ||||
Non-Interest Income | $ | 10,278 | $ | 4,723 | 117.6% | ||||
Net Income | $ | 24,395 | $ | 16,010 | 52.4% | ||||
Adjusted Earnings1 | $ | 23,467 | $ | 16,111 | 45.7% | ||||
Net Income Attributable to Common Stockholders | $ | 24,318 | $ | 15,933 | 52.6% | ||||
Diluted EPS | $ | 1.54 | $ | 1.09 | 41.3% | ||||
1 See "Use of Non-GAAP Financial Measures"
For the fiscal year ended June 30, 2015, net income was a record $82.7 million, an increase of 47.8% over net income of $56.0 million for the fiscal year ended June 30, 2014. Earnings attributable to BofI’s common stockholders were $82.4 million or $5.37 per diluted share for the fiscal year ended June 30, 2015, an increase of 48.0% from $55.6 million or $3.85 per diluted share for the fiscal year ended June 30, 2014. Record earnings for the quarter and for the year ended June 30, 2015 were primarily the result of growth in the Bank’s loan portfolio.
“We achieved our fourteenth consecutive quarter of record earnings through strong loan originations, fee income growth, and disciplined expense management,” stated Greg Garrabrants, President and Chief Executive Officer. “Continued growth in our jumbo single family mortgage portfolio, record production from our C&I lending group and strong deposit growth were contributing factors to our increased net interest income this quarter. We further diversified our funding mix, with checking and savings accounts increasing to approximately 82% of our total deposits at June 30, 2015 compared to 74% a year ago. Our net interest margin increased to 3.97% this quarter including the one-time divided received from the FHLB and would have been 3.85% without the one-time dividend, equal to last quarter and within our target range. Lastly, our efficiency ratio improved to 31.65% this quarter, or 32.47% without the one-time dividend, as our cost management program's focus shifted to vendor cost reduction and productivity improvement.”
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Other Highlights:
• | Total assets reached $5,823.7 million, up $1,420.7 million or 32.3% compared to June 30, 2014 |
• | Loan portfolio grew by $1,395.8 million or 39.5% compared to June 30, 2014 |
• | Loan originations increased by $1,281.4 million, up 42.2% compared to the year ended June 30, 2014 |
• | Deposits grew by $1,410.4 million, or 46.4% compared to June 30, 2014 |
• | Net interest margin remained relatively steady with a slight decrease of 3 bps to 3.92% compared to 3.95% for the year ended June 30, 2014 |
• | Asset quality continues to be strong with total non-performing assets of 0.55% of total assets and non-performing loans equal to 0.62% of total loans at June 30, 2015 |
• | Tangible book value increased to $33.92 per share, up $8.65 per share compared to June 30, 2014 |
Fourth Quarter Fiscal 2015 Income Statement Summary
During the quarter ended June 30, 2015, BofI earned $24.4 million or $1.54 per diluted share compared to $16.0 million, or $1.09 per diluted share for the quarter ended June 30, 2014. Net interest income increased $14.8 million or 36.5% for the quarter ended June 30, 2015 compared to June 30, 2014. Average earning assets grew year over year by $1,547.6 million and our net interest margin was 3.97% compared to 4.02% for the quarters ended June 30, 2015 and 2014, respectively.
Loan loss provision was $2.9 million for the quarter ended June 30, 2015 as compared to $2.3 million for the quarter ended June 30, 2014. The increase was primarily the result of growth in the loan portfolio.
For the fourth quarter ended June 30, 2015, non-interest income was $10.3 million compared to $4.7 million for the three months ended June 30, 2014. The primary reasons for the increase year over year were a $2.2 million increase in mortgage banking income, a $1.9 million increase in prepayment penalty fee income, a $0.8 million increase in other gains on sale and a $0.5 million increase in banking service fees and other income.
Non-interest expense or operating costs increased $5.0 million to $20.8 million for the quarter ended June 30, 2015 from $15.8 million for the three months ended June 30, 2014. The increase was primarily a result of an increase in compensation expense of $3.3 million, related to additional staffing added since June 30, 2014, an increase in advertising and promotional expense of $0.6 million, an increase in data processing and internet expenses of $0.4 million and an increase in other and general administrative expenses of $0.6 million. The increases in staffing and other operating expenses are primarily due to growth of the Bank’s lending and deposit operations.
Balance Sheet Summary
BofI’s total assets increased $1,420.7 million, or 32.3%, to $5,823.7 million, as of June 30, 2015, up from $4,403.0 million at June 30, 2014. The loan portfolio increased a net $1,395.8 million, primarily from portfolio loan originations of $3,271.9 million less principal repayments and other adjustments of $1,876.1 million. Total securities decreased by $73.8 million. Total liabilities increased by $1,258.0 million or 31.2%, to $5,290.2 million at June 30, 2015, up from $4,032.2 million at June 30, 2014. The increase in total liabilities resulted primarily from growth in demand and savings deposits of $1,408.1 million partially offset by a decrease in FHLB borrowings of $157.0 million. Stockholders’ equity increased by $162.7 million, or 43.9%, to $533.5 million at June 30, 2015, up from $370.8 million at June 30, 2014. The increase was primarily the result of $82.7 million in net income, sale of common stock through ATM offerings of $76.0 million and vesting and issuance of RSUs and exercise of stock options of $3.4 million.
The Bank’s tier 1 core capital to adjusted average assets was 9.25% at June 30, 2015.
Conference Call
A conference call and webcast will be held on Thursday, July 30, 2015 at 4:30 PM Eastern / 1:30 PM Pacific. Analysts and investors may dial in and participate in the question/answer session. To access the call, please dial: 888-337-8169, passcode 8836306. The conference call will be webcast live and may be accessed at BofI’s website, http://www.bofiholding.com. For those unable to listen to the live broadcast, a replay will be available shortly after the call on BofI’s website for 30 days.
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About BOFI Holding, Inc. and BOFI Federal Bank
BofI Holding, Inc. (“BofI”) is the holding company for BofI Federal Bank, a nationwide bank that provides financing for single and multifamily residential properties, small-to-medium size businesses in target sectors, and selected specialty finance receivables. With over $5.8 billion in assets, BofI Federal Bank provides consumer and business banking products through its low-cost distribution channels and affinity partners. BofI Holding, Inc.’s common stock is listed on the NASDAQ Global Select Market under the symbol “BOFI” and is a component of the Russell 2000® Index and the S&P SmallCap 600® Index. For more information on BofI Federal Bank, please visit www.bofifederalbank.com.
Use of Non-GAAP Financial Measures
In addition to the results presented in accordance with GAAP, this report includes non-GAAP financial measures such as adjusted earnings. Adjusted earnings, previously labeled as “core earnings”, exclude realized and unrealized gains and losses associated with our securities portfolios. Excluding these gains and losses provides investors with an understanding of BofI’s core lending and mortgage banking business. Non-GAAP financial measures have inherent limitations, are not required to be uniformly applied and are not audited. Readers should be aware of these limitations and should be cautious as to their use of such measures. Although BofI believes the non-GAAP financial measures disclosed in this report enhance investors’ understanding of its business and performance, these non-GAAP measures should not be considered in isolation, or as a substitute for GAAP basis financial measures. Below is a reconciliation of GAAP net income to adjusted earnings:
Three Months Ended | Fiscal Year Ended | ||||||||||||||
June 30, | June 30, | ||||||||||||||
(Dollars in thousands, unaudited) | 2015 | 2014 | 2015 | 2014 | |||||||||||
Net income | $ | 24,395 | $ | 16,010 | $ | 82,682 | $ | 55,956 | |||||||
Realized securities losses (gains) | — | — | (587 | ) | (208 | ) | |||||||||
FHLB one-time dividend | (1,662 | ) | — | (1,662 | ) | — | |||||||||
Unrealized securities losses | 67 | 172 | 2,599 | 1,848 | |||||||||||
Tax provision | 667 | (71 | ) | (145 | ) | (666 | ) | ||||||||
Adjusted earnings | $ | 23,467 | $ | 16,111 | $ | 82,887 | $ | 56,930 |
Forward-Looking Safe Harbor Statement
This press release contains forward-looking statements that involve risks and uncertainties, including without limitation statements relating to BofI’s financial prospects and other projections of its performance and asset quality, BofI’s ability to grow and increase its business, diversify its lending, and the anticipated timing and financial performance of new initiatives. These forward-looking statements are made on the basis of the views and assumptions of management regarding future events and performance as of the date of this press release. Actual results and the timing of events could differ materially from those expressed or implied in such forward-looking statements as a result of risks and uncertainties, including without limitation changes in interest rates, inflation, government regulation, general economic conditions, conditions in the real estate markets in which we operate and other factors beyond our control. These and other risks and uncertainties detailed in BofI’s periodic reports filed with the Securities and Exchange Commission could cause actual results to differ materially from those expressed or implied in any forward-looking statements. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. All forward-looking statements are qualified in their entirety by this cautionary statement, and BofI undertakes no obligation to revise or update any forward-looking statements to reflect events or circumstances after the date of this press release.
Investor Relations:
Johnny Lai, CFA
VP, Corporate Development & Investor Relations
858-649-2218
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The following tables set forth certain selected financial data concerning the periods indicated:
BOFI HOLDING, INC. AND SUBSIDIARY
SELECTED CONSOLIDATED FINANCIAL INFORMATION
(Unaudited)
At June 30, | |||||||
(Dollars in thousands) | 2015 | 2014 | |||||
Selected Balance Sheet Data: | |||||||
Total assets | $ | 5,823,719 | $ | 4,402,999 | |||
Loans—net of allowance for loan losses | 4,928,618 | 3,532,841 | |||||
Loans held for sale, at fair value | 25,430 | 20,575 | |||||
Loans held for sale, lower of cost or market | 77,891 | 114,796 | |||||
Allowance for loan losses | 28,327 | 18,373 | |||||
Securities—trading | 7,832 | 8,066 | |||||
Securities—available-for-sale | 163,361 | 214,778 | |||||
Securities—held-to-maturity | 225,555 | 247,729 | |||||
Total deposits | 4,451,917 | 3,041,536 | |||||
Securities sold under agreements to repurchase | 35,000 | 45,000 | |||||
Advances from the FHLB | 753,000 | 910,000 | |||||
Subordinated debentures | 5,155 | 5,155 | |||||
Total stockholders’ equity | 533,526 | 370,778 |
BOFI HOLDING, INC. AND SUBSIDIARY
SELECTED CONSOLIDATED FINANCIAL INFORMATION
(Unaudited)
At or for the Three Months Ended | At or for the Twelve Months Ended | ||||||||||||||
June 30, | June 30, | ||||||||||||||
(Dollars in thousands, except per share data) | 2015 | 2014 | 2015 | 2014 | |||||||||||
Selected Income Statement Data: | |||||||||||||||
Interest and dividend income | $ | 67,567 | $ | 50,142 | $ | 244,364 | $ | 172,878 | |||||||
Interest expense | 12,273 | 9,646 | 45,419 | 35,781 | |||||||||||
Net interest income | 55,294 | 40,496 | 198,945 | 137,097 | |||||||||||
Provision for loan losses | 2,900 | 2,250 | 11,200 | 5,350 | |||||||||||
Net interest income after provision for loan losses | 52,394 | 38,246 | 187,745 | 131,747 | |||||||||||
Non-interest income | 10,278 | 4,723 | 30,590 | 22,455 | |||||||||||
Non-interest expense | 20,752 | 15,766 | 77,478 | 59,933 | |||||||||||
Income before income tax expense | 41,920 | 27,203 | 140,857 | 94,269 | |||||||||||
Income tax expense | 17,525 | 11,193 | 58,175 | 38,313 | |||||||||||
Net income | $ | 24,395 | $ | 16,010 | $ | 82,682 | $ | 55,956 | |||||||
Net income attributable to common stock | $ | 24,318 | $ | 15,933 | $ | 82,373 | $ | 55,647 | |||||||
Per Share Data: | |||||||||||||||
Net income: | |||||||||||||||
Basic | $ | 1.55 | $ | 1.09 | $ | 5.39 | $ | 3.87 | |||||||
Diluted | $ | 1.54 | $ | 1.09 | $ | 5.37 | $ | 3.85 | |||||||
Book value per common share | $ | 34.05 | $ | 25.31 | $ | 34.05 | $ | 25.31 | |||||||
Tangible book value per common share | $ | 33.92 | $ | 25.27 | $ | 33.92 | $ | 25.27 | |||||||
Weighted average number of shares outstanding: | |||||||||||||||
Basic | 15,707,704 | 14,601,972 | 15,294,477 | 14,367,824 | |||||||||||
Diluted | 15,756,846 | 14,670,848 | 15,351,091 | 14,442,692 | |||||||||||
Common shares outstanding at end of period | 15,518,751 | 14,451,900 | 15,518,751 | 14,451,900 | |||||||||||
Common shares issued at end of period | 16,589,111 | 15,423,822 | 16,589,111 | 15,423,822 | |||||||||||
Performance Ratios and Other Data: | |||||||||||||||
Loan originations for investment | $ | 851,889 | $ | 680,492 | $ | 3,271,911 | $ | 2,297,976 | |||||||
Loan originations for sale | $ | 327,202 | $ | 217,933 | $ | 1,048,982 | $ | 741,494 | |||||||
Loan purchases | $ | 2,306 | $ | 95 | $ | 2,452 | $ | 95 | |||||||
Return on average assets | 1.73 | % | 1.57 | % | 1.61 | % | 1.59 | % | |||||||
Return on average common stockholders’ equity | 18.86 | % | 18.14 | % | 18.34 | % | 17.89 | % | |||||||
Interest rate spread1 | 3.82 | % | 3.89 | % | 3.79 | % | 3.81 | % | |||||||
Net interest margin2 | 3.97 | % | 4.02 | % | 3.92 | % | 3.95 | % | |||||||
Efficiency ratio | 31.65 | % | 34.87 | % | 33.75 | % | 37.56 | % | |||||||
Capital Ratios: | |||||||||||||||
Equity to assets at end of period | 9.16 | % | 8.42 | % | 9.16 | % | 8.42 | % | |||||||
Tier 1 leverage (core) capital to adjusted average asset3 | 9.25 | % | N/A | 9.25 | % | N/A | |||||||||
Tier 1 leverage (core) capital to adjusted tangible assets3 | N/A | 8.66 | % | N/A | 8.66 | % | |||||||||
Common equity tier 1 capital (to risk-weighted assets) 3 | 14.58 | % | N/A | 14.58 | % | N/A | |||||||||
Tier 1 capital (to risk-weighted assets) 3 | 14.58 | % | 14.42 | % | 14.58 | % | 14.42 | % | |||||||
Total capital (to risk-weighted assets) 3 | 15.38 | % | 15.11 | % | 15.38 | % | 15.11 | % | |||||||
Asset Quality Ratios: | |||||||||||||||
Net annualized charge-offs to average loans outstanding | — | % | (0.02 | )% | 0.03 | % | 0.04 | % | |||||||
Non-performing loans to total loans | 0.62 | % | 0.57 | % | 0.62 | % | 0.57 | % | |||||||
Non-performing assets to total assets | 0.55 | % | 0.46 | % | 0.55 | % | 0.46 | % | |||||||
Allowance for loan losses to total loans at end of period | 0.57 | % | 0.51 | % | 0.57 | % | 0.51 | % | |||||||
Allowance for loan losses to non-performing loans | 91.88 | % | 90.13 | % | 91.88 | % | 90.13 | % |
___________________________________________
1. Interest rate spread represents the difference between the annualized weighted average yield on interest-earning assets and the annualized weighted average
rate paid on interest-bearing liabilities.
2. Net interest margin represents annualized net interest income as a percentage of average interest-earning assets.
3. Reflects regulatory capital ratios of BofI Federal Bank. Effective January 1, 2015, the new capital requirements changed the Bank’s tier 1 leverage ratio from using end of period adjusted tangible assets to using adjusted average assets for the quarter and added a common equity tier 1 capital ratio.
BOFI HOLDING, INC. AND SUBSIDIARY CONSOLIDATED BALANCE SHEETS (Unaudited) | |||||||
At June 30, | |||||||
(Dollars in thousands, except par and stated value) | 2015 | 2014 | |||||
ASSETS | |||||||
Cash and due from banks | $ | 222,774 | $ | 155,484 | |||
Federal funds sold | 100 | 100 | |||||
Total cash and cash equivalents | 222,874 | 155,584 | |||||
Securities: | |||||||
Trading | 7,832 | 8,066 | |||||
Available for sale | 163,361 | 214,778 | |||||
Held to maturity—fair value of $228,323 at June 2015 and $243,966 at June 2014 | 225,555 | 247,729 | |||||
Stock of the Federal Home Loan Bank, at cost | 66,270 | 42,770 | |||||
Loans held for sale, carried at fair value | 25,430 | 20,575 | |||||
Loans held for sale, carried at lower of cost or fair value | 77,891 | 114,796 | |||||
Loans—net of allowance for loan losses of $28,327 as of June 2015 and $18,373 as of June 2014 | 4,928,618 | 3,532,841 | |||||
Accrued interest receivable | 20,268 | 13,863 | |||||
Furniture, equipment and software—net | 8,551 | 6,707 | |||||
Deferred income tax | 32,955 | 25,245 | |||||
Cash surrender value of life insurance | 5,806 | 5,625 | |||||
Mortgage servicing rights, carried at fair value | 2,098 | 562 | |||||
Other real estate owned and repossessed vehicles | 1,240 | 75 | |||||
Other assets | 34,970 | 13,783 | |||||
TOTAL ASSETS | $ | 5,823,719 | $ | 4,402,999 | |||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
Deposits: | |||||||
Non-interest bearing | $ | 309,339 | $ | 186,786 | |||
Interest bearing | 4,142,578 | 2,854,750 | |||||
Total deposits | 4,451,917 | 3,041,536 | |||||
Securities sold under agreements to repurchase | 35,000 | 45,000 | |||||
Advances from the Federal Home Loan Bank | 753,000 | 910,000 | |||||
Subordinated debentures | 5,155 | 5,155 | |||||
Accrued interest payable | 1,266 | 1,350 | |||||
Accounts payable and accrued liabilities and other liabilities | 43,855 | 29,180 | |||||
Total liabilities | 5,290,193 | 4,032,221 | |||||
STOCKHOLDERS’ EQUITY: | |||||||
Preferred stock—$0.01 par value; 1,000,000 shares authorized; | |||||||
Series A— $10,000 stated value and liquidation preference per share; 515 shares issued and outstanding as of June 2015 and June 2014 | 5,063 | 5,063 | |||||
Common stock—$0.01 par value; 50,000,000 shares authorized, 16,589,111 shares issued and 15,518,751 shares outstanding as of June 2015, 15,423,822 shares issued and 14,451,900 shares outstanding as of June 2014 | 166 | 154 | |||||
Additional paid-in capital | 296,507 | 207,579 | |||||
Accumulated other comprehensive income (loss) — net of tax | (9,399 | ) | (10,366 | ) | |||
Retained earnings | 265,833 | 183,460 | |||||
Treasury stock, at cost; 1,070,360 shares as of June 2015 and 971,922 shares as of June 2014 | (24,644 | ) | (15,112 | ) | |||
Total stockholders’ equity | 533,526 | 370,778 | |||||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 5,823,719 | $ | 4,402,999 |
BOFI HOLDING, INC. AND SUBSIDIARY CONSOLIDATED STATEMENTS OF INCOME (Unaudited) | |||||||||||
Year Ended June 30, | |||||||||||
(Dollars in thousands, except earnings per share) | 2015 | 2014 | 2013 | ||||||||
INTEREST AND DIVIDEND INCOME: | |||||||||||
Loans, including fees | $ | 220,486 | $ | 147,664 | $ | 113,503 | |||||
Investments | 23,878 | 25,214 | 22,151 | ||||||||
Total interest and dividend income | 244,364 | 172,878 | 135,654 | ||||||||
INTEREST EXPENSE: | |||||||||||
Deposits | 34,733 | 24,817 | 22,868 | ||||||||
Advances from the Federal Home Loan Bank | 8,910 | 6,981 | 5,939 | ||||||||
Other borrowings | 1,776 | 3,983 | 5,219 | ||||||||
Total interest expense | 45,419 | 35,781 | 34,026 | ||||||||
Net interest income | 198,945 | 137,097 | 101,628 | ||||||||
Provision for loan losses | 11,200 | 5,350 | 7,550 | ||||||||
Net interest income, after provision for loan losses | 187,745 | 131,747 | 94,078 | ||||||||
NON-INTEREST INCOME: | |||||||||||
Realized gain (loss) on sale of mortgage-backed securities | 587 | 208 | 212 | ||||||||
Other-than-temporary loss on securities: | |||||||||||
Total impairment (losses) gains | (6,805 | ) | (2,359 | ) | (8,080 | ) | |||||
Loss (gain) recognized in other comprehensive income (loss) | 4,440 | (443 | ) | 4,579 | |||||||
Net impairment loss recognized in earnings | (2,365 | ) | (2,802 | ) | (3,501 | ) | |||||
Fair value gain (loss) on trading securities | (234 | ) | 954 | 1,274 | |||||||
Total unrealized loss on securities | (2,599 | ) | (1,848 | ) | (2,227 | ) | |||||
Prepayment penalty fee income | 4,695 | 2,687 | 1,742 | ||||||||
Gain on sale - other | 5,793 | 6,658 | 1,130 | ||||||||
Mortgage banking income | 15,264 | 10,170 | 22,953 | ||||||||
Banking service fees and other income | 6,850 | 4,580 | 3,900 | ||||||||
Total non-interest income | 30,590 | 22,455 | 27,710 | ||||||||
NON-INTEREST EXPENSE: | |||||||||||
Salaries and related costs | 43,819 | 32,240 | 28,874 | ||||||||
Professional services | 4,122 | 5,421 | 3,531 | ||||||||
Occupancy and equipment | 3,091 | 2,324 | 2,086 | ||||||||
Data processing and internet | 6,632 | 5,373 | 2,773 | ||||||||
Advertising and promotional | 6,060 | 3,724 | 4,084 | ||||||||
Depreciation and amortization | 3,273 | 2,874 | 1,904 | ||||||||
Real estate owned and repossessed vehicles | (120 | ) | (149 | ) | 505 | ||||||
FDIC and regulatory fees | 3,434 | 2,343 | 2,125 | ||||||||
Other general and administrative | 7,167 | 5,783 | 7,705 | ||||||||
Total non-interest expense | 77,478 | 59,933 | 53,587 | ||||||||
INCOME BEFORE INCOME TAXES | 140,857 | 94,269 | 68,201 | ||||||||
INCOME TAXES | 58,175 | 38,313 | 27,910 | ||||||||
NET INCOME | $ | 82,682 | $ | 55,956 | $ | 40,291 | |||||
NET INCOME ATTRIBUTABLE TO COMMON STOCK | $ | 82,373 | $ | 55,647 | $ | 39,456 | |||||
COMPREHENSIVE INCOME | $ | 83,649 | $ | 56,390 | $ | 34,926 | |||||
Basic earnings per share | $ | 5.39 | $ | 3.87 | $ | 3.00 | |||||
Diluted earnings per share | $ | 5.37 | $ | 3.85 | $ | 2.89 |
BOFI HOLDING, INC. AND SUBSIDIARY
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
For the Quarters Ended June 30, | |||||||
(Dollars in thousands, except earnings per share) | 2015 | 2014 | |||||
INTEREST AND DIVIDEND INCOME: | |||||||
Loans, including fees | $ | 60,670 | $ | 43,391 | |||
Investments | 6,897 | 6,751 | |||||
Total interest and dividend income | 67,567 | 50,142 | |||||
INTEREST EXPENSE: | |||||||
Deposits | 9,593 | 6,923 | |||||
Advances from the Federal Home Loan Bank | 2,255 | 2,093 | |||||
Other borrowings | 425 | 630 | |||||
Total interest expense | 12,273 | 9,646 | |||||
Net interest income | 55,294 | 40,496 | |||||
Provision for loan losses | 2,900 | 2,250 | |||||
Net interest income, after provision for loan losses | 52,394 | 38,246 | |||||
NON-INTEREST INCOME: | |||||||
Realized gain (loss) on sale of mortgage-backed securities | — | — | |||||
Other-than-temporary loss on securities: | |||||||
Total impairment (losses) gains | (973 | ) | (390 | ) | |||
Loss (gain) recognized in other comprehensive income (loss) | 812 | (248 | ) | ||||
Net impairment loss recognized in earnings | (161 | ) | (638 | ) | |||
Fair value gain (loss) on trading securities | 94 | 466 | |||||
Total unrealized loss on securities | (67 | ) | (172 | ) | |||
Prepayment penalty fee income | 2,311 | 401 | |||||
Gain on sale - other | 1,368 | 607 | |||||
Mortgage banking income | 4,934 | 2,687 | |||||
Banking service fees and other income | 1,732 | 1,200 | |||||
Total non-interest income | 10,278 | 4,723 | |||||
NON-INTEREST EXPENSE: | |||||||
Salaries and related costs | 12,109 | 8,776 | |||||
Professional services | 798 | 1,096 | |||||
Occupancy and equipment | 803 | 609 | |||||
Data processing and internet | 1,718 | 1,305 | |||||
Advertising and promotional | 1,843 | 1,251 | |||||
Depreciation and amortization | 922 | 713 | |||||
Real estate owned and repossessed vehicles | (272 | ) | (3 | ) | |||
FDIC and regulatory fees | 926 | 677 | |||||
Other general and administrative | 1,905 | 1,342 | |||||
Total non-interest expense | 20,752 | 15,766 | |||||
INCOME BEFORE INCOME TAXES | 41,920 | 27,203 | |||||
INCOME TAXES | 17,525 | 11,193 | |||||
NET INCOME | $ | 24,395 | $ | 16,010 | |||
NET INCOME ATTRIBUTABLE TO COMMON STOCK | $ | 24,318 | $ | 15,933 | |||
COMPREHENSIVE INCOME | $ | 23,293 | $ | 17,013 | |||
Basic earnings per share | $ | 1.55 | $ | 1.09 | |||
Diluted earnings per share | $ | 1.54 | $ | 1.09 |
BOFI HOLDING, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Unaudited)
Year Ended June 30, | |||||||||||
(Dollars in thousands) | 2015 | 2014 | 2013 | ||||||||
NET INCOME | $ | 82,682 | $ | 55,956 | $ | 40,291 | |||||
Net unrealized gain (loss) from available-for-sale securities, net of tax expense (benefit) of $(132), $(36) and $1,865 for the years ended June 30, 2015, 2014 and 2013, respectively. | 180 | 54 | (2,796 | ) | |||||||
Other-than-temporary impairment on securities recognized in other comprehensive income, net of tax expense (benefit) of $(832), $(253) and $1,713 for the years ended June 30, 2015, 2014 and 2013, respectively. | 1,139 | 380 | (2,569 | ) | |||||||
Reclassification of net (gain) loss from available-for-sale securities included in income, net of tax expense (benefit) of $235, $0 and $0 for the years ended June 30, 2015, 2014 and 2013, respectively. | (352 | ) | — | — | |||||||
Other comprehensive income (loss) | $ | 967 | $ | 434 | $ | (5,365 | ) | ||||
Comprehensive income | $ | 83,649 | $ | 56,390 | $ | 34,926 |
BOFI HOLDING, INC. AND SUBSIDIARY CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (Unaudited) | |||||||||||||||||||||||||||||||||||||||
Preferred Stock | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss), Net of Income Tax | Treasury Stock | Total | |||||||||||||||||||||||||||||||||
Number of Shares | |||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Shares | Amount | Issued | Treasury | Outstanding | Amount | |||||||||||||||||||||||||||||||||
Balance as of June 30, 2012 | 20,647 | $ | 24,502 | 12,321,578 | (809,042 | ) | 11,512,536 | $ | 123 | $ | 105,683 | $ | 88,357 | $ | (5,435 | ) | $ | (6,610 | ) | $ | 206,620 | ||||||||||||||||||
Net income | — | — | — | — | — | — | — | 40,291 | — | — | 40,291 | ||||||||||||||||||||||||||||
Net unrealized loss from investment securities—net of income tax expense | — | — | — | — | — | — | — | — | (5,365 | ) | — | (5,365 | ) | ||||||||||||||||||||||||||
Cash dividends on preferred stock | — | — | — | — | — | — | — | (835 | ) | — | — | (835 | ) | ||||||||||||||||||||||||||
Issuance of convertible preferred stock | 1,857 | 18,544 | — | — | — | — | — | — | — | — | 18,544 | ||||||||||||||||||||||||||||
Issuance of common stock | — | — | 200,000 | — | 200,000 | 2 | 6,763 | — | — | — | 6,765 | ||||||||||||||||||||||||||||
Convert preferred stock to common stock | (21,989 | ) | (37,983 | ) | 1,855,411 | — | 1,855,411 | 18 | 37,965 | — | — | — | — | ||||||||||||||||||||||||||
Stock-based compensation expense | — | — | — | — | — | — | 3,297 | — | — | — | 3,297 | ||||||||||||||||||||||||||||
Restricted stock grants | — | — | 234,105 | (95,862 | ) | 138,243 | 3 | 2,173 | — | — | (3,647 | ) | (1,471 | ) | |||||||||||||||||||||||||
Stock option exercises and tax benefits of equity compensation | — | — | 27,135 | — | 27,135 | — | 416 | — | — | — | 416 | ||||||||||||||||||||||||||||
Balance as of June 30, 2013 | 515 | $ | 5,063 | 14,638,229 | (904,904 | ) | 13,733,325 | $ | 146 | $ | 156,297 | $ | 127,813 | $ | (10,800 | ) | $ | (10,257 | ) | $ | 268,262 | ||||||||||||||||||
Net income | — | — | — | — | — | — | — | 55,956 | — | — | 55,956 | ||||||||||||||||||||||||||||
Net unrealized loss from investment securities—net of income tax expense | — | — | — | — | — | — | — | — | 434 | — | 434 | ||||||||||||||||||||||||||||
Cash dividends on preferred stock | — | — | — | — | — | — | — | (309 | ) | — | — | (309 | ) | ||||||||||||||||||||||||||
Issuance of common stock | — | — | 560,301 | — | 560,301 | 7 | 41,576 | — | — | — | 41,583 | ||||||||||||||||||||||||||||
Stock-based compensation expense | — | — | — | — | — | — | 4,358 | — | — | — | 4,358 | ||||||||||||||||||||||||||||
Restricted stock grants | — | — | 169,760 | (67,018 | ) | 102,742 | 1 | 3,470 | — | — | (4,855 | ) | (1,384 | ) | |||||||||||||||||||||||||
Stock option exercises and tax benefits of equity compensation | — | — | 55,532 | — | 55,532 | — | 1,878 | — | — | — | 1,878 | ||||||||||||||||||||||||||||
Balance as of June 30, 2014 | 515 | $ | 5,063 | 15,423,822 | (971,922 | ) | 14,451,900 | $ | 154 | $ | 207,579 | $ | 183,460 | $ | (10,366 | ) | $ | (15,112 | ) | $ | 370,778 | ||||||||||||||||||
Net income | — | — | — | — | — | — | — | 82,682 | — | — | 82,682 | ||||||||||||||||||||||||||||
Net unrealized loss from investment securities—net of income tax expense | — | — | — | — | — | — | — | — | 967 | — | 967 | ||||||||||||||||||||||||||||
Cash dividends on preferred stock | — | — | — | — | — | — | — | (309 | ) | — | — | (309 | ) | ||||||||||||||||||||||||||
Issuance of common stock | — | — | 949,089 | — | 949,089 | 9 | 75,976 | — | — | — | 75,985 | ||||||||||||||||||||||||||||
Stock-based compensation expense | — | — | — | — | — | — | 6,648 | — | — | — | 6,648 | ||||||||||||||||||||||||||||
Restricted stock grants | — | — | 129,850 | (56,151 | ) | 73,699 | 2 | 2,428 | — | — | (5,310 | ) | (2,880 | ) | |||||||||||||||||||||||||
Stock option exercises and tax benefits of equity compensation | — | — | 86,350 | (42,287 | ) | 44,063 | 1 | 3,876 | — | — | (4,222 | ) | (345 | ) | |||||||||||||||||||||||||
Balance as of June 30, 2015 | 515 | $ | 5,063 | 16,589,111 | (1,070,360 | ) | 15,518,751 | $ | 166 | $ | 296,507 | $ | 265,833 | $ | (9,399 | ) | $ | (24,644 | ) | $ | 533,526 |
BOFI HOLDING, INC. AND SUBSIDIARY CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) | |||||||||||
Year Ended June 30, | |||||||||||
(Dollars in thousands) | 2015 | 2014 | 2013 | ||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||||||
Net income | $ | 82,682 | $ | 55,956 | $ | 40,291 | |||||
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||||||||||
Accretion of discounts on securities | (5,517 | ) | (8,340 | ) | (7,687 | ) | |||||
Net accretion of discounts on loans | (27 | ) | (2,647 | ) | (3,443 | ) | |||||
Stock-based compensation expense | 6,648 | 4,358 | 3,297 | ||||||||
Tax benefit from exercise of common stock options and vesting of restricted stock grants | (5,526 | ) | (4,856 | ) | (2,332 | ) | |||||
Valuation of financial instruments carried at fair value | 234 | (955 | ) | (1,273 | ) | ||||||
Net gain on sale of investment securities | (587 | ) | — | (212 | ) | ||||||
Impairment charge on securities | 2,365 | 2,802 | 3,501 | ||||||||
Provision for loan losses | 11,200 | 5,350 | 7,550 | ||||||||
Deferred income taxes | (9,034 | ) | (2,040 | ) | (4,618 | ) | |||||
Origination of loans held for sale | (1,048,982 | ) | (741,494 | ) | (1,085,941 | ) | |||||
Unrealized (gain) loss on loans held for sale | 119 | 179 | 284 | ||||||||
Gain on sales of loans held for sale | (21,057 | ) | (17,007 | ) | (24,367 | ) | |||||
Proceeds from sale of loans held for sale | 1,114,097 | 727,265 | 1,081,954 | ||||||||
Change in fair value of mortgage servicing rights | 265 | (45 | ) | — | |||||||
(Gain) loss on sale of other real estate and foreclosed assets | (283 | ) | (350 | ) | (372 | ) | |||||
Depreciation and amortization of furniture, equipment and software | 3,273 | 2,874 | 1,904 | ||||||||
Net changes in assets and liabilities which provide (use) cash: | |||||||||||
Accrued interest receivable | (6,405 | ) | (4,100 | ) | (1,891 | ) | |||||
Other assets | (17,948 | ) | (1,224 | ) | 3,466 | ||||||
Accrued interest payable | (84 | ) | (324 | ) | (128 | ) | |||||
Accounts payable and accrued liabilities | 10,669 | 5,917 | 5,767 | ||||||||
Net cash provided by (used) in operating activities | 116,102 | 21,319 | 15,750 | ||||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||||||
Purchases of investment securities | (10,464 | ) | (83,033 | ) | (79,533 | ) | |||||
Proceeds from sales of available-for-sale mortgage-backed securities | 9,539 | — | 2,775 | ||||||||
Proceeds from repayment of securities | 80,546 | 88,086 | 88,106 | ||||||||
Purchase of stock of the Federal Home Loan Bank | (60,870 | ) | (34,221 | ) | (14,868 | ) | |||||
Proceeds from redemption of stock of Federal Home Loan Bank | 37,370 | 19,201 | 7,798 | ||||||||
Origination of loans held for investment | (3,242,828 | ) | (2,297,976 | ) | (953,012 | ) | |||||
Origination of mortgage warehouse loans, net | (29,083 | ) | — | (101,612 | ) | ||||||
Proceeds from sales of other real estate owned and repossessed assets | 1,518 | 2,724 | 3,151 | ||||||||
Purchases of loans, net of discounts and premiums | (2,452 | ) | (95 | ) | (1,541 | ) | |||||
Principal repayments on loans | 1,847,665 | 990,305 | 541,076 | ||||||||
Purchases of furniture, equipment and software | (5,117 | ) | (3,163 | ) | (3,914 | ) | |||||
Net cash used in investing activities | $ | (1,374,176 | ) | $ | (1,318,172 | ) | $ | (511,574 | ) | ||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||||||
Net increase in deposits | $ | 1,410,381 | $ | 949,537 | $ | 476,911 | |||||
Proceeds from the Federal Home Loan Bank advances | 734,000 | 950,000 | 327,417 | ||||||||
Repayment of the Federal Home Loan Bank advances | (891,000 | ) | (630,417 | ) | (159,000 | ) | |||||
Repayments of other borrowings and securities sold under agreements to repurchase | (10,000 | ) | (65,000 | ) | (10,000 | ) | |||||
Proceeds from exercise of common stock options | 781 | 500 | 260 | ||||||||
Proceeds from issuance of common stock | 75,985 | 41,576 | 6,765 | ||||||||
Proceeds from issuance of preferred stock | — | — | 18,544 | ||||||||
Tax benefit from exercise of common stock options and vesting of restricted stock grants | 5,526 | 4,856 | 2,332 | ||||||||
Cash dividends paid on preferred stock | (309 | ) | (309 | ) | (1,137 | ) | |||||
Net cash provided by financing activities | 1,325,364 | 1,250,743 | 662,092 | ||||||||
NET CHANGE IN CASH AND CASH EQUIVALENTS | 67,290 | (46,110 | ) | 166,268 | |||||||
CASH AND CASH EQUIVALENTS—Beginning of year | 155,584 | 201,694 | 35,426 | ||||||||
CASH AND CASH EQUIVALENTS—End of year | $ | 222,874 | $ | 155,584 | $ | 201,694 | |||||
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | |||||||||||
Interest paid on deposits and borrowed funds | $ | 45,503 | $ | 36,104 | $ | 34,154 | |||||
Income taxes paid | $ | 68,481 | $ | 37,339 | $ | 35,830 | |||||
Transfers to other real estate and repossessed vehicles | $ | 2,484 | $ | 1,206 | $ | 4,466 | |||||
Transfers from loans held for investment to loans held for sale | $ | 30,000 | $ | 39,799 | $ | 4,654 | |||||
Transfers from loans held for sale to loans held for investment | $ | 7,237 | $ | 1,471 | $ | 40,779 | |||||
Transfer from preferred stock to common stock | $ | — | $ | — | $ | 18 | |||||
Transfer from preferred stock to additional paid-in capital | $ | — | $ | — | $ | 37,965 |
LOANS
The following table sets forth the composition of the loan portfolio as of the dates indicated:
(Unaudited) (Dollars in thousands) | June 30, 2015 | June 30, 2014 | |||||
Single family real estate secured: | |||||||
Mortgage | $ | 2,980,795 | $ | 1,918,626 | |||
Home equity | 3,604 | 12,690 | |||||
Warehouse and other1 | 385,413 | 370,717 | |||||
Multifamily real estate secured | 1,185,531 | 978,511 | |||||
Commercial real estate secured | 61,403 | 24,061 | |||||
Auto and RV secured | 13,140 | 14,740 | |||||
Factoring | 122,200 | 118,945 | |||||
Commercial & Industrial | 248,584 | 152,619 | |||||
Other | 601 | 1,971 | |||||
Total gross loans | 5,001,271 | 3,592,880 | |||||
Allowance for loan losses | (28,327 | ) | (18,373 | ) | |||
Unaccreted discounts and loan fees | (44,326 | ) | (41,666 | ) | |||
Total net loans | $ | 4,928,618 | $ | 3,532,841 |
1. The balance of single family warehouse loans was $122,003 at June 30, 2015 and $92,920 at June 30, 2014. The remainder of the balance is attributable to single family lender finance loans.
SECURITIES
The amortized cost, carrying amount and fair value for the major categories of securities trading, available for sale, and held to maturity at June 30, 2015 and June 30, 2014 were:
June 30, 2015 | |||||||||||||||||||||||||||||||||||
Trading | Available for sale | Held to maturity | |||||||||||||||||||||||||||||||||
(Unaudited) (Dollars in thousands) | Fair Value | Amortized Cost | Unrealized Gains | Unrealized Losses | Fair Value | Carrying Amount | Unrecognized Gains | Unrecognized Losses | Fair Value | ||||||||||||||||||||||||||
Mortgage-backed securities (RMBS): | |||||||||||||||||||||||||||||||||||
U.S agencies1 | $ | — | $ | 43,738 | $ | 701 | $ | (948 | ) | $ | 43,491 | $ | 41,993 | $ | 1,398 | $ | — | $ | 43,391 | ||||||||||||||||
Non-agency2 | — | 23,799 | 2,835 | (1 | ) | 26,633 | 147,586 | 10,045 | (12,749 | ) | 144,882 | ||||||||||||||||||||||||
Total mortgage-backed securities | — | 67,537 | 3,536 | (949 | ) | 70,124 | 189,579 | 11,443 | (12,749 | ) | 188,273 | ||||||||||||||||||||||||
Other debt securities: | |||||||||||||||||||||||||||||||||||
U.S. agencies1 | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||
Municipal | — | 21,731 | 390 | (86 | ) | 22,035 | 35,976 | 4,074 | — | 40,050 | |||||||||||||||||||||||||
Non-agency | 7,832 | 70,216 | 1,271 | (285 | ) | 71,202 | — | — | — | — | |||||||||||||||||||||||||
Total other debt securities | 7,832 | 91,947 | 1,661 | (371 | ) | 93,237 | 35,976 | 4,074 | — | 40,050 | |||||||||||||||||||||||||
Total debt securities | $ | 7,832 | $ | 159,484 | $ | 5,197 | $ | (1,320 | ) | $ | 163,361 | $ | 225,555 | $ | 15,517 | $ | (12,749 | ) | $ | 228,323 | |||||||||||||||
June 30, 2014 | |||||||||||||||||||||||||||||||||||
Trading | Available for sale | Held to maturity | |||||||||||||||||||||||||||||||||
(Unaudited) (Dollars in thousands) | Fair Value | Amortized Cost | Unrealized Gains | Unrealized Losses | Fair Value | Carrying Amount | Unrecognized Gains | Unrecognized Losses | Fair Value | ||||||||||||||||||||||||||
Mortgage-backed securities (RMBS): | |||||||||||||||||||||||||||||||||||
U.S agencies1 | $ | — | $ | 60,670 | $ | 1,060 | $ | (1,850 | ) | $ | 59,880 | $ | 47,982 | $ | 1,895 | $ | — | $ | 49,877 | ||||||||||||||||
Non-agency2 | — | 33,521 | 4,077 | (189 | ) | 37,409 | 163,695 | 6,352 | (15,490 | ) | 154,557 | ||||||||||||||||||||||||
Total mortgage-backed securities | — | 94,191 | 5,137 | (2,039 | ) | 97,289 | 211,677 | 8,247 | (15,490 | ) | 204,434 | ||||||||||||||||||||||||
Other debt securities: | |||||||||||||||||||||||||||||||||||
U.S. agencies1 | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||
Municipal | — | 28,522 | 425 | (4 | ) | 28,943 | 36,052 | 3,480 | — | 39,532 | |||||||||||||||||||||||||
Non-agency | 8,066 | 87,913 | 687 | (54 | ) | 88,546 | — | — | — | — | |||||||||||||||||||||||||
Total other debt securities | 8,066 | 116,435 | 1,112 | (58 | ) | 117,489 | 36,052 | 3,480 | — | 39,532 | |||||||||||||||||||||||||
Total debt securities | $ | 8,066 | $ | 210,626 | $ | 6,249 | $ | (2,097 | ) | $ | 214,778 | $ | 247,729 | $ | 11,727 | $ | (15,490 | ) | $ | 243,966 |
1 U.S. government-backed or government sponsored enterprises including Fannie Mae, Freddie Mac and Ginnie Mae.
2 Private sponsors of securities collateralized primarily by pools of 1-4 family residential first mortgages. Primarily super senior securities secured by prime, Alt-A or pay-option ARM mortgages.
DEPOSITS
The following table sets for the composition of the deposit portfolio as of the dates indicated:
(Unaudited) | June 30, 2015 | June 30, 2014 | |||||||||||
(Dollars in thousands) | Amount | Rate1 | Amount | Rate1 | |||||||||
Non-interest bearing | $ | 309,339 | — | % | $ | 186,786 | — | % | |||||
Interest bearing: | |||||||||||||
Demand | 1,224,308 | 0.48 | % | 1,129,535 | 0.63 | % | |||||||
Savings | 2,126,792 | 0.67 | % | 935,973 | 0.73 | % | |||||||
Total interest-bearing demand and savings | 3,351,100 | 0.60 | % | 2,065,508 | 0.67 | % | |||||||
Time deposits: | |||||||||||||
Under $100,000 | 70,369 | 1.26 | % | 107,294 | 1.23 | % | |||||||
$100,000 or more2 | 721,109 | 2.06 | % | 681,948 | 1.67 | % | |||||||
Total time deposits | 791,478 | 1.99 | % | 789,242 | 1.61 | % | |||||||
Total interest bearing2 | 4,142,578 | 0.87 | % | 2,854,750 | 0.93 | % | |||||||
Total deposits | $ | 4,451,917 | 0.81 | % | $ | 3,041,536 | 0.88 | % |
1. Based on weighted-average stated interest rates at end of period.
2. The total interest-bearing includes brokered deposits of $661.9 million and $404.8 million as of June 30, 2015 and June 30, 2014, respectively, of which
$356.3 million and $275.4 million, respectively, are time deposits classified as $100,000 or more.
The number of deposit accounts at the end of each of the last five fiscal years is set forth below:
At June 30, | ||||||||||||||
(Unaudited) | 2015 | 2014 | 2013 | 2012 | 2011 | |||||||||
Checking and savings accounts | 36,305 | 30,402 | 23,567 | 19,931 | 16,105 | |||||||||
Time deposits | 5,515 | 7,571 | 11,103 | 12,341 | 16,793 | |||||||||
Total number of deposit accounts | 41,820 | 37,973 | 34,670 | 32,272 | 32,898 |
AVERAGE BALANCES, NET INTEREST INCOME, YIELDS EARNED AND RATES PAID
The following tables set forth, for the periods indicated, 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 Fiscal Years Ended June 30, | ||||||||||||||||||||||||||||||||
2015 | 2014 | 2013 | ||||||||||||||||||||||||||||||
(Unaudited)(Dollars in thousands) | Average Balance1 | Interest Income / Expense | Average Yields Earned / Rates Paid | Average Balance1 | Interest Income / Expense | Average Yields Earned / Rates Paid | Average Balance1 | Interest Income / Expense | Average Yields Earned / Rates Paid | |||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||||||
Loans2,3 | $ | 4,388,336 | $ | 220,486 | 5.02 | % | $ | 2,850,600 | $ | 147,664 | 5.18 | % | $ | 2,157,974 | $ | 113,503 | 5.26 | % | ||||||||||||||
Federal funds sold | — | — | — | % | — | — | — | % | 17,017 | 30 | 0.18 | % | ||||||||||||||||||||
Interest-earning deposits in other financial institutions | 204,176 | 511 | 0.25 | % | 107,534 | 275 | 0.26 | % | 23,632 | 47 | 0.20 | % | ||||||||||||||||||||
Mortgage-backed and other investment securities | 479,767 | 23,367 | 4.87 | % | 513,055 | 24,939 | 4.86 | % | 485,540 | 22,074 | 4.55 | % | ||||||||||||||||||||
Total interest-earning assets | 5,072,279 | 244,364 | 4.82 | % | 3,471,189 | 172,878 | 4.98 | % | 2,684,163 | 135,654 | 5.05 | % | ||||||||||||||||||||
Non-interest-earning assets | 68,039 | 58,953 | 70,896 | |||||||||||||||||||||||||||||
Total assets | $ | 5,140,318 | $ | 3,530,142 | $ | 2,755,059 | ||||||||||||||||||||||||||
Liabilities and Stockholders’ Equity: | ||||||||||||||||||||||||||||||||
Interest-bearing demand and savings | $ | 2,862,295 | $ | 20,709 | 0.72 | % | $ | 1,522,884 | $ | 10,723 | 0.70 | % | $ | 826,797 | $ | 6,399 | 0.77 | % | ||||||||||||||
Time deposits | 790,661 | 14,024 | 1.77 | % | 876,621 | 14,094 | 1.61 | % | 1,065,669 | 16,469 | 1.55 | % | ||||||||||||||||||||
Securities sold under agreements to repurchase | 36,562 | 1,633 | 4.47 | % | 85,726 | 3,840 | 4.48 | % | 114,247 | 5,068 | 4.44 | % | ||||||||||||||||||||
Advances from the FHLB | 700,805 | 8,910 | 1.27 | % | 576,307 | 6,981 | 1.21 | % | 436,383 | 5,939 | 1.36 | % | ||||||||||||||||||||
Other borrowings | 5,155 | 143 | 2.77 | % | 5,155 | 143 | 2.77 | % | 5,155 | 151 | 2.93 | % | ||||||||||||||||||||
Total interest-bearing liabilities | 4,395,478 | 45,419 | 1.03 | % | 3,066,693 | 35,781 | 1.17 | % | 2,448,251 | 34,026 | 1.39 | % | ||||||||||||||||||||
Non-interest-bearing demand deposits | 255,321 | 123,859 | 45,299 | |||||||||||||||||||||||||||||
Other non-interest-bearing liabilities | 35,219 | 23,549 | 18,681 | |||||||||||||||||||||||||||||
Stockholders’ equity | 454,300 | 316,041 | 242,828 | |||||||||||||||||||||||||||||
Total liabilities and stockholders’ equity | $ | 5,140,318 | $ | 3,530,142 | $ | 2,755,059 | ||||||||||||||||||||||||||
Net interest income | $ | 198,945 | $ | 137,097 | $ | 101,628 | ||||||||||||||||||||||||||
Interest rate spread4 | 3.79 | % | 3.81 | % | 3.66 | % | ||||||||||||||||||||||||||
Net interest margin5 | 3.92 | % | 3.95 | % | 3.79 | % |
1 Average balances are obtained from daily data.
2 Loans include loans held for sale, 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. Also includes $31.4 million, $32.1 million and $32.8 million as of June 30, 2015, 2014 and 2013, respectively, of Community Reinvestment Act loans which are taxed at a reduced rate.
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.
AVERAGE BALANCES, NET INTEREST INCOME, YIELDS EARNED AND RATES PAID
The following table 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 months ended June 30, | |||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||
(Unaudited) (Dollars in thousands) | Average Balance2 | Interest Income / Expense | Average Yields Earned / Rates Paid1 | Average Balance2 | Interest Income / Expense | Average Yields Earned / Rates Paid1 | |||||||||||||||
Assets: | |||||||||||||||||||||
Loans3,4 | $ | 4,865,501 | $ | 60,670 | 4.99 | % | $ | 3,390,891 | $ | 43,391 | 5.12 | % | |||||||||
Interest-earning deposits in other financial institutions | 252,539 | 178 | 0.28 | % | 127,994 | 87 | 0.27 | % | |||||||||||||
Mortgage-backed and other investment securities | 455,425 | 6,719 | 5.90 | % | 506,986 | 6,664 | 5.26 | % | |||||||||||||
Total interest-earning assets | 5,573,465 | 67,567 | 4.85 | % | 4,025,871 | 50,142 | 4.98 | % | |||||||||||||
Non-interest-earning assets | 77,234 | 53,658 | |||||||||||||||||||
Total assets | $ | 5,650,699 | $ | 4,079,529 | |||||||||||||||||
Liabilities and Stockholders’ Equity: | |||||||||||||||||||||
Interest-bearing demand and savings | $ | 3,404,566 | $ | 5,753 | 0.68 | % | $ | 1,978,485 | $ | 3,542 | 0.72 | % | |||||||||
Time deposits | 815,405 | 3,840 | 1.88 | % | 836,646 | 3,381 | 1.62 | % | |||||||||||||
Securities sold under agreements to repurchase | 35,008 | 389 | 4.44 | % | 52,759 | 594 | 4.50 | % | |||||||||||||
Advances from the FHLB | 528,365 | 2,255 | 1.71 | % | 667,612 | 2,093 | 1.25 | % | |||||||||||||
Other borrowings | 5,155 | 36 | 2.79 | % | 5,155 | 36 | 2.79 | % | |||||||||||||
Total interest-bearing liabilities | 4,788,499 | 12,273 | 1.03 | % | 3,540,657 | 9,646 | 1.09 | % | |||||||||||||
Non-interest-bearing demand deposits | 301,893 | 160,678 | |||||||||||||||||||
Other non-interest-bearing liabilities | 39,371 | 21,836 | |||||||||||||||||||
Stockholders’ equity | 520,936 | 356,358 | |||||||||||||||||||
Total liabilities and stockholders’ equity | $ | 5,650,699 | $ | 4,079,529 | |||||||||||||||||
Net interest income | $ | 55,294 | $ | 40,496 | |||||||||||||||||
Interest rate spread5 | 3.82 | % | 3.89 | % | |||||||||||||||||
Net interest margin6 | 3.97 | % | 4.02 | % |
1 Annualized.
2 Average balances are obtained from daily data.
3 Loans include loans held for sale, loan premiums and unearned fees.
4 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. Also, includes $31.4 million and $32.1 million as of June 30, 2015 and 2014 three-month periods respectively, of Community Reinvestment Act loans which are taxed at a reduced rate.
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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