Queried on the earnings call (transcript) about slowing loan growth and increase in repayments in FQ1, CFO Andy Micheletti says management doesn't feel like it's the beginning of a secular trend. He notes the commercial and industrial business didn't pull in as many loans as hoped, but pipelines are generally good.
He does, however, sound a bit concerned with single-family jumbo loan production, which is not growing like it had previously. "That is an engine of loan growth that we've depended upon, and we haven't been successful in growing that production over the last several quarters."
CEO Greg Garrabrants says the issue is not competition, but instead weak execution on his bank's part.
Addressing this week's attack from a Seeking Alpha contributor, Garrabrants more or less calls it amateur hour, and clarifies that BofI (BOFI -5.6%) has no interest or credit exposure to any kind of loan to Jason Galanis or to any loan on which Galanis is a guarantor.
Following the stories of ties between Banc of California (BANC -2.1%) and Jason Galanis, SA contributor Real Talk Investments looked into the shady character's connection with BOFI. "My research leads me to believe that a reasonable person could infer that Galanis has a relationship with BOFI that remains undisclosed to this date," he writes, calling on CEO Greg Garrabrants to address the issue on tomorrow's earnings call.
Real Talk also takes note of BofI's external auditor Gary McCormick's ties to fraudster Barry Minkow.
Down sharply earlier thanks to the story, BofI has rebounded to off 0.15% on the session.
A federal judge has denied BofI Holdings's (BOFI -1.8%) request for a preliminary injunction to stop former auditor Charles Erhart from disseminating confidential information and require him to return files he allegedly took from the company.
Erhart last year sued the company, charging he was fired after pointing out unlawful conduct to his superiors and the government. BofI subsequently countersued, claiming Erhart violated the law by publishing confidential information.