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

67 WALL STREET, New York - July 7, 2014 - The Wall Street Transcript has just published its Banking Review 2014 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: Banking Review 2014

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

In the following excerpt from the Banking Review 2014 Report, the EVP and CFO of BofI Holding, Inc. (BOFI) discusses company strategy and the outlook for this vital industry:

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

Mr. Micheletti: Yes, that's correct.

TWST: And what are your primary revenue sources? How do those break down?

Mr. Micheletti: We are primarily a portfolio lender, which means we make the majority of our income through a net interest income spread. That's the spread between our loans and deposits. Our loan portfolio consists primarily of single-family and multifamily real estate lending, and then we have C&I and other specialty lending. On the deposit side, we offer our Internet-based brands such as Bank of Internet, Net Bank, UFB Direct. We also offer business accounts, and they are solicited not necessarily through the Internet, other than using e-mail as part of the campaign to attract new business customers.

The whole idea in developing niches is really to aggregate customer data in a way that allows us to find and solicit business from customers that have the best value proposition. So for example, on business accounts, we can attract the customers simply with a proposition that we can cut their costs by 30% on the average business checking account. That opens the door. Our sales people, centrally located in San Diego, contact business owners who currently use another bank and convince them to transfer their business to us. That's made - in part - possible, because so many businesses are using remote deposit capture, so that the location of the branch really has little bearing on where the deposit is going, because they're imaging it to the home office anyway, even if there is a BofA or a Wells Fargo branch right around the corner. In other words, we are able to take business away from our competitors who have branches, because many business owners don't go into branches anymore.

TWST: Are you seeing any change in that revenue mix or in your loan portfolio, or are you actively trying to change that mix?

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.