Business Context and Reporting Period
This Form 8-K is filed by B of I Holding, Inc. (not Axos Financial, Inc.) for the event date of September 8, 2008. The report addresses the impact of the U.S. government placing Fannie Mae and Freddie Mac under conservatorship on September 7, 2008, and the subsequent elimination of dividends on their preferred stock.
Key Financial Metrics
- Asset Sold: 400,000 shares of Fannie Mae Preferred Stock - Series S.
- Book Value (as of June 30, 2008): $9.1 million.
- Face Value: $10.1 million.
- Sale Proceeds (September 8, 2008): $1.2 million.
- Estimated After-Tax Loss: $4.7 million.
- Capital Excess: $24.9 million in excess of "well capitalized" requirements as of June 30, 2008.
Material Changes
The primary material change is the realization of a $4.7 million after-tax loss following the forced sale of the Fannie Mae Preferred Stock position at the market open on September 8, 2008. This action was taken immediately after the government announcement regarding the conservatorship and dividend elimination.
Outlook, Risks, and Management Commentary
Management confirms that despite the $4.7 million loss, the subsidiary, Bank of Internet USA, remains "well capitalized" according to the Office of Thrift Supervision. The filing does not provide forward-looking guidance, revenue projections, or specific risk factors beyond the immediate impact of the Fannie Mae event.
Investor Verification Checklist
- Verify the exact timing of the stock sale relative to the market open on September 8, 2008.
- Confirm the updated capital adequacy ratio of Bank of Internet USA post-loss.
- Review subsequent filings for any additional exposure to Fannie Mae or Freddie Mac securities.
- Note that the registrant name in the filing is B of I Holding, Inc., distinct from the metadata request for Axos Financial, Inc.