Axos Financial(AX) - 2024 Q3 - Quarterly Report

Financial Performance - The company reported net income of $110.72 million for the three months ended March 31, 2024, compared to$79.85 million for the same period in 2023, representing a 38.7% increase[155]. - Adjusted earnings for the same period were $112.66 million, up from$81.83 million year-over-year, indicating a growth of 37.7%[155]. - The diluted earnings per share (EPS) increased to $1.91 from$1.32, reflecting a growth of 44.7%[155]. - For the three months ended March 31, 2024, net income was $110.7 million, or$1.91 per diluted share, compared to $79.9 million, or$1.32 per diluted share for the same period in 2023, representing a 38.5% increase in net income[160]. - For the nine months ended March 31, 2024, net income was $345.1 million, or$5.88 per diluted share, compared to $219.8 million, or$3.63 per diluted share for the same period in 2023, reflecting a 57.0% increase in net income[160]. Asset and Equity Growth - Total assets increased to $22,642.1 million as of March 31, 2024, up from$20,348.5 million as of June 30, 2023, marking a growth of 11.3%[157]. - Common stockholders' equity rose to $2.20 billion from$1.84 billion year-over-year, an increase of 19.2%[156]. - Tangible book value per common share increased to $35.46 as of March 31, 2024, compared to$28.03 in the previous year, marking a 26.6% increase[156]. - Stockholders' equity rose to $2,138,241 thousand, compared to$1,833,432 thousand a year earlier, reflecting an increase of 16.6%[162]. Loan and Deposit Growth - Loans, net of allowance for credit losses, rose to $18,733.5 million as of March 31, 2024, compared to$16,456.7 million as of June 30, 2023, indicating a 13.8% increase[157]. - Total deposits increased to $19,103.5 million as of March 31, 2024, up from$17,123.1 million as of June 30, 2023, representing an increase of 11.6%[157]. - Total loans increased to $18.7 billion as of March 31, 2024, from$16.5 billion at June 30, 2023, reflecting a growth of 13.7%[206]. - Total deposits increased by $2.0 billion, or 11.6$19.1 billion at March 31, 2024, from $17.1 billion at June 30, 2023[214]. Income and Expense Analysis - Net interest income for the three months ended March 31, 2024, was$261.6 million, compared to $199.0 million for the same period in 2023, a rise of 31.3$33.2 million, compared to $32.2 million for the same period in 2023, showing a slight increase of 3.0$125.4 million increase in interest income from loans[169]. - Total interest expense increased by 67.9% for the three months ended March 31, 2024, primarily due to a $75.5 million increase in interest expense from demand and savings deposits[170]. - Total non-interest expense increased by$22.2 million, or 20.0%, for the three months ended March 31, 2024, primarily due to increases in salaries and related costs[178]. Efficiency and Profitability Metrics - The efficiency ratio improved to 45.20% for the three months ended March 31, 2024, compared to 48.02% for the same period in 2023, indicating enhanced operational efficiency[159]. - The return on average common stockholders' equity was 20.71% for the three months ended March 31, 2024, compared to 17.42% for the same period in 2023, indicating improved profitability[159]. - The net interest margin improved to 4.87% for the three months ended March 31, 2024, compared to 4.42% for the same period in 2023, showing an increase of 10.2%[162]. Capital Adequacy and Regulatory Compliance - The common equity tier 1 capital ratio increased to 11.47% as of March 31, 2024, compared to 10.94% as of June 30, 2023, reflecting a stronger capital position[157]. - The Company and Bank met all capital adequacy requirements as of March 31, 2024, and were classified as "well capitalized" under regulatory standards[229]. - Tier 1 capital to adjusted average assets ratio was 9.33% as of March 31, 2024, exceeding the minimum requirement of 4.0%[232]. - Common equity tier 1 capital to risk-weighted assets ratio was 11.47% as of March 31, 2024, above the minimum requirement of 4.5%[232]. - Total capital to risk-weighted assets ratio was 14.26% as of March 31, 2024, surpassing the minimum requirement of 8.0%[232]. Risk Management - The company is managing interest rate risk by setting limits on the size and duration of positions in its securities business[246]. - The securities business is exposed to market risk due to fluctuations in interest rates and market prices, which could impact financial instrument values[245]. - The company conducts periodic credit reviews of counterparties to manage credit risk in its securities business[247]. Cash Flow and Investment Activities - Net cash inflows from operating activities for the nine months ended March 31, 2024, were $261.7 million, up from$119.2 million for the same period in 2023, representing a 119% increase[221]. - Net cash outflows from investing activities totaled $2,155.3 million for the nine months ended March 31, 2024, compared to$1,808.0 million for the same period in 2023, indicating a 19.2% increase in outflows[222]. - Net cash inflows from financing activities were $1,857.5 million for the nine months ended March 31, 2024, down from$2,618.3 million in the same period of 2023, reflecting a decrease of 29.1%[222].