Axos Financial(AX)2024-05-01 02:18Financial Data and Key Metrics Changes - The company reported net income of 1.91 for Q3 2024, representing year-over-year growth of 38.7% and 45% respectively [7] - Tangible book value per share increased to 18.7 billion, up 2.6% linked quarter and 10.4% annualized, with growth in non-real estate lender finance and single-family warehouse [7] - Average loan yield increased to 8.65%, up 47 basis points from the prior quarter and 158 basis points year-over-year [11] - Non-interest income, excluding one-time gains, was up 4.5% from Q2 to Q3 due to higher mortgage banking income [9] Market Data and Key Metrics Changes - Deposits grew by approximately 35 billion, up from 26 million [15] Company Strategy and Development Direction - The company aims to transition its small business banking platform to a universal digital bank, enhancing user experience and operational efficiency [23][24] - There is a focus on adding new assets from existing and new advisors to grow assets under custody and cash balances [21] - The company is exploring acquisition opportunities in various business lines as banks pare back operations [38] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining loan growth despite economic uncertainties, with a solid loan pipeline of 11.3 million linked quarter due to seasonal payroll increases and higher FDIC insurance expenses [22] - The company has successfully onboarded new leaders in commercial deposits and lending, which is expected to diversify and grow the business [22] Q&A Session Summary Question: Hiring pipeline and focus areas - Management indicated a stable hiring environment with a focus on recruiting deposit talent, expecting personnel expense increases to moderate [33] Question: Capital priorities and buybacks - Management noted that while the stock price is low relative to earnings, they are open to buybacks but also focused on organic growth and acquisition opportunities [36] Question: M&A opportunities - Management is actively looking for opportunities in business lines where banks are exiting, including insurance premium finance [38] Question: Deposit growth and funding - Management highlighted strong performance in commercial lines and cross-selling efforts that help offset deposit costs [44] Question: Loan repayment expectations - Management expects turnover in certain loan categories due to high rates but remains confident in the diversity of the loan origination platform [56] Question: Fee income growth in securities business - Management acknowledged challenges in the securities business due to client attrition but is optimistic about future growth with new advisor acquisitions [66]