Axos Bank, formerly Bank of Internet USA, is an American federally chartered direct bank headquartered in San Diego, California. It is the main consumer brand of Axos Financial. It is the oldest Internet-only bank in the United States.
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History
Bank of Internet USA was founded in 1999 by Jerry Englert, the founder of Bank of Del Mar, and Gary Lewis Evans, who was president of La Jolla Bank at the time. The bank's holding company, BofI Holding, Inc., was incorporated in the State of Delaware in July 1999 for the stated purpose of organizing and opening an Internet-based bank. The opening day of the bank was on July 4 for three reasons. One, Mr Englert wanted its customers to realize that although traditionally July 4 is a bank holiday, people would still be able to access the bank due to its online format. Second, he wanted to pay homage to his oldest daughter's birthday. Finally, the theme of the bank "Independence from traditional banking" jibed with the holiday's history.
The bank was launched with $14 million in startup capital and was profitable within 14 months. The bank's thrift charter allowed it, and continues to allow it, to operate within all 50 states. The number of employees running and managing the bank has grown from 35 in 2007 to 534 as of December 31, 2015.
In October 2011, Bank of Internet USA changed its name to BofI Federal Bank. However, BofI Federal Bank continued to use the Bank of Internet USA brand for its online consumer direct banking. The goal of Bank of Internet USA remained to provide banking services more cost-effectively by eliminating the overhead costs of branches. According to Andrew Micheletti, CFO and VP of BofI Holding, Inc., "We are taking advantage of the Internet for both efficiency in the back office and efficiency in the distribution and delivery of banking products."
From 2013 to the end of 2015, Bank of Internet USA saw a 327% growth in the number of savings deposits. Part of that growth may be attributed to Bank of Internet acquiring a portion of H&R Block's banking business in 2014, including 300,000 individual retirement accounts (IRAs).
The Securities and Exchange Commission (SEC) investigated BofI for 16 months after a report at Seeking Alpha said the bank financed entities connected to the chairman of the bank's audit committee, creating conflicts of interest and "a nearly unprecedented impairment of internal controls," according to the website. The SEC closed the investigation in June 2017 without taking any action, according to SEC documents obtained by Probes Reporter, which noted the bank did not disclose the probe and related subpoenas to investors.
On October 1, 2018, Bank of Internet USA re-branded as Axos Bank, and switched its stock exchange from NASDAQ to the NYSE.
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References
Source of article : Wikipedia
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