Business Corpus: Highflying Internet Bank Goes Low On Earnings, RevenueBofI Holding reported weaker-than-expected earnings and revenue late Tuesday. But conference call focus may be on the online banking pioneer's recent "material acquisition." The post Highflying Internet Bank Goes Low On Earnings, Revenue appeared first on Investor's Business Daily.

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BofI Holding (BOFI) reported weaker-than-expected earnings and revenue late Tuesday, though investors may be more focused on the online banking pioneer's recent "material acquisition."

Estimates: Analysts expected BofI Holding earnings per share to jump 24.5% to 61 cents on a 17% revenue gain to $108 million, according to Zacks Investment Research.

Results: BofI earnings rose to 58 cents on revenue, or net interest income plus non-interest income, of $104 million. The loan and lease portfolio grew 14.3%, while deposits increased 15.7%. Total assets reached $9.54 billion, up 12.2%. For the full fiscal year, net interest margin expanded to 4.11% from 3.95% a year ago.

BofI Holding's earnings results were originally due after the July 26 market close. But the company pushed back the release at the last minute, citing a possible big deal. That turned out to be BofI's acquisition, announced days ago, of $3 billion in Nationwide Bank deposits.

Stock: BofI stock dipped 0.2% late. Shares closed up 1.3% to 40.63 on the stock market today. They have consolidated in a base with a potential 45.28 buy point. But BofI stock continues to test its 50-day line, currently trading below it. The relative strength line, which tracks a stock's performance vs. the S&P 500 index, has drifted lower since late May but isn't that far off record highs.

BofI stock has a solid IBD Composite Rating of 90, surging in the past year on the back of strong earnings and an expanding loan portfolio.

BofI Holding's earnings come after "bank to the tech stars" SVB Financial (SIVB) crushed estimates on July 26 and the nation's biggest banks overcome a slump.

BofI Holding is the holding company for BofI Federal Bank, which is the parent of Bank of Internet USA.

The Nationwide Bank deal follows similar deals with Principal Bank and H&R Block (HRB), as the highflying financial looks to grow and diversify its asset base.

Like BofI's Bank of Internet, Nationwide is a direct, digital bank.

Some analysts commend BofI's asset growth story but are monitoring its margins.

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