Axos Q1 Fiscal 2025 Earnings Supplement October 30, 2024 NYSE: AX Loan Growth by Category $ Millions Q1 FY25 Q4 FY24 Inc (Dec) $ 3,807 $ 3,922 $ (115) | --- | --- | --- | --- | --- | --- | --- | --- | --- | |-------|--------------------------------|------------------------------------|-------|-------|-------|-------|-------|-------| | | | | | | | | | | | | Single Family | Jumbo Mortgage | $ | | | | | | | | Mortgage & Warehouse | SF Warehouse Lending | | 345 | | | 257 | 88 | | | Multifamily & | Multifamily | ...

Financial Data and Key Metrics - Net income for Q1 2025 was $112 million, up 36% YoY from $82.7 million [10] - Earnings per share grew 40% YoY to $1.93 [10] - Return on average common equity was 19.1% for the quarter [7] - Tangible book value per share grew 28% YoY [7] - Net interest margin increased to 5.17%, up 81 bps YoY and 52 bps QoQ [8] - Loan balances grew 0.3% QoQ and 13.7% YoY to $19.3 billion [6] - Deposits grew by $614 million QoQ, with 96% coming from interest-bearing demand and savings accounts [6][19] Business Line Performance - Single-family mortgage warehouse and C&I loan balances grew, offset by declines in single-family jumbo mortgage, multifamily, and auto loans [10] - Average loan yields increased to 9.01%, up 47 bps QoQ and 116 bps YoY [11] - Non-performing assets increased in single-family jumbo mortgages ($13.3 million) and commercial real estate ($14.5 million) [13][14] - C&I asset-based and cash flow lending saw a $40 million increase in non-performing assets [16] - Axos Clearing deposits remained flat at $1.3 billion, with $800 million on the balance sheet and $450 million at partner banks [30] Market and Geographic Performance - Consumer and small business deposits represented 60% of total deposits, while treasury management accounted for 20% [20] - Axos Fiduciary Services and Axos Security (custody and clearing) represented 6% and 4% of deposits, respectively [20] - Client cash sorting stabilized at 3% of assets under custody, down from the historic range of 6%-7% [21] Strategy and Industry Competition - The company is focused on growing assets under custody and cash balances by adding new assets from existing and new advisors [21] - Axos is managing interest rate risk by adjusting deposit pricing and extending the duration of liabilities [22][23] - The company is optimistic about returning to high single-digit to low-teens loan growth, driven by strong demand in fund finance, ABL, and select C&I lending businesses [29] - Axos is leveraging its white-label banking platform to attract new clients and enhance deposit and lending product offerings [33] Management Commentary on Operating Environment and Outlook - Management highlighted strong demand in C&I lending but noted increased pricing pressure and competition [43] - The company expects to maintain its net interest margin within the 4.25%-4.35% range, excluding the FDIC loan benefit [24] - Management remains confident in the credit quality of the loan book, despite some idiosyncratic increases in non-performing assets [15][17] Other Important Information - The company allocated a $10 million specific loan provision for a C&I loan classified as nonaccrual [17] - Non-interest expenses increased by $6.9 million QoQ, driven by higher salaries and benefits related to new hires [39] - The loan pipeline remains strong at $1.9 billion, with growth expected in SFR jumbo mortgages, multifamily, and commercial loans [40] Q&A Session Summary Question: Competition and Loan Pricing - Management noted increased pricing pressure in certain verticals, particularly in C&I lending, but remains confident in achieving loan growth [43] Question: Fee Income and Rate Sensitivity - Fee income was impacted by prepayment penalty fees and a mark on the servicing book due to rate declines [44][45] - Management expects fee income growth in the securities business as net new assets increase [46] Question: Deposit Repricing and Growth Opportunities - The company has successfully repriced deposits ahead of rate cuts and sees growth opportunities in C&I verticals and middle-market lending [65][66] Question: Commercial Real Estate Exposure - Axos remains interested in growing its commercial real estate book but faces challenges due to fewer deals and early repayments by bridge lenders [84] Question: Loan Pricing and Margin Outlook - Management expects some pricing concessions to maintain loan growth but remains optimistic about the margin outlook, supported by loan repricing and deposit cost management [81][98] Question: Loan Underwriting and Participation - The company emphasized its strong underwriting standards, particularly in commercial real estate, and noted variations in loan participation across different business lines [89][92]

Axos Financial (AX) came out with quarterly earnings of $1.96 per share, beating the Zacks Consensus Estimate of $1.80 per share. This compares to earnings of $1.41 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 8.89%. A quarter ago, it was expected that this bank holding company would post earnings of $1.80 per share when it actually produced earnings of $1.83, delivering a surprise of 1.67%.Over the last four quarters, the ...

The following tables set forth the Company's financial assets and liabilities measured at fair value on a recurring basis at September 30, 2024 and June 30, 2024. Assets and liabilities are classified in their entirety based on the lowest level of input significant to the fair value measurement: | --- | --- | --- | --- | --- | --- | --- | |-------------------------------------------------------------------------|-------|---------------------------------------------------|-----------|------------------------ ...

Axos Q1 Fiscal 2025 Earnings Supplement October 30, 2024 NYSE: AX Loan Growth by Category $ Millions Q1 FY25 Q4 FY24 Inc (Dec) $ 3,807 $ 3,922 $ (115) | --- | --- | --- | --- | --- | --- | --- | --- | --- | |-------|--------------------------------|------------------------------------|-------|-------|-------|-------|-------|-------| | | | | | | | | | | | | Single Family | Jumbo Mortgage | $ | | | | | | | | Mortgage & Warehouse | SF Warehouse Lending | | 345 | | | 257 | 88 | | | Multifamily & | Multifamily | ...

Investors in Axos Financial, Inc. (AX) need to pay close attention to the stock based on moves in the options market lately. That is because the Jan 17, 2025 $17.50 Put had some of the highest implied volatility of all equity options today. What is Implied Volatility? Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It could a ...

Short sellers are market bears that seek to profit from falling stock prices. Some of the more popular short sellers will put out their research reports attempting to expose a target company by implying misconduct or fraud in order to trigger investors to sell their positions. The selling action is supposed to beget more selling as the price falls, enabling the short seller to cover their short position for a profit. However, things don’t always go as planned. The short seller can also encourage more short ...

Needham analyst Kyle Peterson initiated coverage on Axos Financial, Inc. AX with a Buy rating and a price target of $82.00.The analyst writes that, unlike traditional banks, the company avoids a broad branch strategy, enhancing profitability and efficiency while expanding its total addressable market.Importantly, Axos Financial holds a full banking license, which offers stickier and cheaper funding for loans compared to warehouse lines and enables in-house banking products, adds the analyst.The analyst says ...

Have you been searching for a stock that might be well-positioned to maintain its earnings-beat streak in its upcoming report? It is worth considering Axos Financial (AX) , which belongs to the Zacks Financial - Miscellaneous Services industry.This bank holding company has seen a nice streak of beating earnings estimates, especially when looking at the previous two reports. The average surprise for the last two quarters was 7.23%.For the last reported quarter, Axos Financial came out with earnings of $1.83 ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 __________________________________________________________________________________________ FORM 10-K ☒ ANNUAL REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended June 30, 2024 ☐ TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission file number: 001-37709 __________________________________________________________________________________________ AXOS FIN ...