San Diego Business Journal

BofI Profit Rises 46 Percent

By Mike Allen Thursday, May 10, 2012

BofI Holding Co., parent of BofI Federal Bank, the San Diego based Internet lender, reported fiscal third quarter net profit of $7.7 million for the quarter ended March 31, up 46 percent from the like quarter of 2011, the company said May 3.

For the bank’s nine months, net profit was $21 million, up 39 percent from the like period of 2011.

The bank made more money because it grew its loan portfolio by nearly $500 million over the 12 months, the company said.

CEO Greg Garrabrants said loan production for both single family and apartment mortgages remains strong with near record pipelines in each group. The bank plans to begin operating a mortgage warehouse business by the end of June, which should also boost its earnings, he said.

BofI Federal, formerly called Bank of Internet USA, grew its assets to nearly $2.3 billion as of March 31, up $542 million or 32 percent from the like quarter of 2011. Asset quality continues to be far better than most with only 0.76 percent classified as nonperforming.

Total risk-based capital at the end of the quarter was 14 percent, above the 10 percent standard to be classified as well-capitalized by regulators.