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Andrew J. Micheletti, EVP and CFO of BofI Holding, Inc. (BOFI), Interviews with The Wall Street Transcript

67 WALL STREET, New York - March 4, 2014 - The Wall Street Transcript has just published its Pacific and Southwest Banks Report offering a timely review of the sector to serious investors and industry executives. This special feature contains expert industry commentary through in-depth interviews with public company CEOs and Equity Analysts. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.

Topics covered: Interest Rates and Loan-Growth Strategies - Regulatory Outlook Gains Clarity - Heightened M&A Activity - Consolidation in Regional Banking - Prolonged Interest Rate Environment Challenges - Investing in Regional Banks - Pockets of Growth in Western Banking - Recovery in the Pacific Northwest

Companies include: BofI Holding Inc. (BOFI) and many more.

In the following excerpt from the Pacific and Southwest Banks Report, the EVP and CFO of BofI Holding, Inc. (BOFI) discusses company strategy and the outlook for this vital sector:

TWST: What are some of the advantages of the model of Internet banking versus brick-and-mortar banking?

Mr. Micheletti: Certainly the savings of not having a physical brick-and-mortar building is good, but it's also salaries. We are able to save on salaries, because we do not have to staff the branches or have the insurance costs or the other costs of having physical facilities. And while one of our key channels is distributing products exclusively on the Internet, you have other low-cost channels that we operate from a central branch location. In other words, not all of our business is done exclusively over the Internet. Some of that is done via phone and letter contact, but the whole idea is to have a branchless bank, a bank which focuses on delivery of the products through the most efficient channel.

TWST: How does that translate to the clients? What are the benefits to your customers?

Mr. Micheletti: Because our costs are lower, we are better able to provide a superior value proposition to our clients. And you will see that in our primary brand, which is Bank of Internet, our rewards checking product is very, very competitive. First of all, it is absolutely free in every sense of the word. That means no charge for use of ATMs anywhere. Not only does the bank not charge you for using the ATM, but we also fully reimburse any charges you incur at any third-party ATM. There is no NSF charges. There is no monthly fee. There is no fee for checks. There is no fee for bill pay. It's full-featured. It has all of the mobile-banking apps that you would want, that you find at a larger bank like Bank of America. And on top of that, it pays interest. So the value of that checking account is so much stronger, and we can do it profitably, because our costs are lower.

TWST: Right now you have about $3.6 billion in assets. Is that right?

For more of this interview and many others visit the Wall Street Transcript - a unique service for investors and industry researchers - providing fresh commentary and insight through verbatim interviews with CEOs, portfolio managers and research analysts. This special issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.