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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.  20549
 
FORM 8-K
 
CURRENT REPORT
 
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
 
Date of Report (Date of earliest event reported):  October 30, 2024

axosfina26.jpg

Axos Financial, Inc.
(Exact name of registrant as specified in its charter)
Delaware001-3770933-0867444
(State or other jurisdiction of
incorporation)		(Commission File Number)(IRS Employer Identification
Number)
9205 West Russell Road, Ste 400
Las Vegas, NV 89148
(Address of principal executive offices and zip code)
Registrant’s telephone number, including area code: (858) 649-2218          
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common stock, $0.01 par valueAXNew York Stock Exchange

Not Applicable

(Former name or former address, if changed since last report.)

 Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
 
☐                                    Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 
☐                                    Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 
☐                                    Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 
☐                                    Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

☐                                    Emerging growth company  

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐


Item 2.02     Results of Operations and Financial Condition

On October 30, 2024, Axos Financial, Inc. (the “Registrant” or the “Company”) issued a press release announcing its fiscal first quarter results of operations for the period ended September 30, 2024. The press release is furnished as Exhibit 99.1. In addition, the Registrant is furnishing the related quarterly earnings supplement in two different formats as Exhibits 99.2 and 99.3.

Pursuant to General Instruction B.2. of Form 8-K, the information in this Item 2.02 of Form 8-K, including Exhibit 99.1, 99.2, and 99.3 is being furnished pursuant to Item 2.02 and shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934 or otherwise be subject to the liabilities of that section, nor is it incorporated by reference into any filing of the Registrant under the Securities Act of 1933 or the Securities Exchange Act of 1934, whether made before or after the date hereof, regardless of any general incorporation language in such filing.



Item 9.01     Financial Statements and Exhibits.

(d)    Exhibits.
ExhibitDescription
99.1
99.2
99.3
104Cover Page Interactive Data File (embedded within the Inline XBRL document)



SIGNATURE

 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 Axos Financial, Inc.
  
Date: October 30, 2024By:/s/ Derrick K. Walsh 
  Derrick K. Walsh
  EVP and Chief Financial Officer



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Axos Financial, Inc. Reports First Quarter Fiscal Year 2025 Results
LAS VEGAS, NV – (BUSINESS WIRE) – October 30, 2024 – Axos Financial, Inc. (NYSE: AX) (“Axos” or the “Company”) today announced unaudited financial results for the first fiscal quarter ended September 30, 2024. Net income was $112.3 million, an increase of 35.9% from $82.6 million for the quarter ended September 30, 2023. Diluted earnings per share (“EPS”) were $1.93, an increase of $0.55, or 39.9%, as compared to diluted earnings per share of $1.38 for the quarter ended September 30, 2023.
Adjusted earnings and adjusted earnings per diluted common share (“Adjusted EPS”), non-GAAP measures described further below, increased $29.5 million to $114.1 million and increased $0.55 to $1.96, respectively, for the quarter ended September 30, 2024, compared to $84.6 million and $1.41, respectively, for the quarter ended September 30, 2023.
First Quarter Fiscal 2025 Financial Summary
Three Months Ended
September 30,
(Dollars in thousands, except per share data)20242023% Change
Net interest income$292,048 $211,155 38.3 %
Non-interest income$28,609 $34,507 (17.1)%
Net income$112,340 $82,645 35.9 %
Adjusted earnings (Non-GAAP)1
$114,142 $84,596 34.9 %
Diluted EPS$1.93 $1.38 39.9 %
Adjusted EPS (Non-GAAP)1
$1.96 $1.41 39.0 %
1 See “Use of Non-GAAP Financial Measures”
“Net interest income increased by 12.3% and 38.3% linked-quarter and year-over-year, respectively, driven by further expansion in our net interest margin,” stated Greg Garrabrants, President and Chief Executive Officer of Axos. “Excluding the recognition of approximately $17 million of net interest income from the early payoff of certain loans purchased from the FDIC, our net interest margin for the three months ended September 30, 2024 was 4.87%, up 22 basis points from 4.65% last quarter. Diluted EPS was $1.93, an increase of 39.9% year-over-year.”
Other Highlights
•Net interest margin was 5.17% for the quarter ended September 30, 2024, compared to 4.36% for the quarter ended September 30, 2023
•Total assets were $23.6 billion at September 30, 2024, up 3.1%, or 12.4% annualized, from $22.9 million at June 30, 2024
•Total deposits were $20.0 billion at September 30, 2024, an increase of $614.1 million, or 12.7% annualized, from $19.4 billion at June 30, 2024
•Approximately 90% of total deposits were insured by the Federal Deposit Insurance Corporation (“FDIC”) or collateralized at September 30, 2024
•Axos Advisory Services added $559 million of net new assets under custody during the three months ended September 30, 2024
•Total capital to risk-weighted assets was 14.06% for Axos Bank at September 30, 2024, up from 13.81% at June 30, 2024
•Book value per share increased to $42.14 from $40.26 at June 30, 2024
•Return on common equity of 19.12% for the quarter ended September 30, 2024, compared to 16.91% for the quarter ended September 30, 2023


First Quarter Fiscal 2025 Income Statement Summary
Net income was $112.3 million and diluted EPS was $1.93 for the three months ended September 30, 2024, compared to net income of $82.6 million and diluted EPS of $1.38 for the three months ended September 30, 2023. Net interest income increased $80.9 million or 38.3% for the three months ended September 30, 2024, compared to the three months ended September 30, 2023, primarily due to an increase in loan interest income attributable to higher average balances and rates earned, as well as higher discount accretion, partially offset by an increase in deposits interest expense from higher average balances and rates paid.
The provision for credit losses was $14.0 million for the three months ended September 30, 2024, compared to $7.0 million for the three months ended September 30, 2023. The provision for credit losses for the three months ended September 30, 2024, was primarily due to the quantitative impact of macroeconomic variables in the allowance for credit losses model, primarily the U.S. unemployment rate, and increases in specific reserves, mainly in the commercial & industrial - non-RE portfolio, as well as growth in unfunded lending commitments.
Non-interest income decreased to $28.6 million for the three months ended September 30, 2024, compared to $34.5 million for the three months ended September 30, 2023. The decrease was primarily due to decreases in mortgage banking and servicing rights income, broker-dealer fee income and prepayment penalty fee income.
Non-interest expense, comprised of various operating expenses, increased $27.0 million to $147.5 million for the three months ended September 30, 2024 from $120.5 million for the three months ended September 30, 2023. The increase was primarily due to increases in salaries and related expenses and advertising expense.
Balance Sheet Summary
Axos’ total assets increased by $0.7 billion, or 3.1%, to $23.6 billion, at September 30, 2024, from $22.9 billion at June 30, 2024, primarily due to an increase in cash and cash equivalents. Total liabilities increased by $0.6 billion, or 2.9%, to $21.2 billion at September 30, 2024, from $20.6 billion at June 30, 2024, primarily due to an increase in deposits. Stockholders’ equity increased by $115.1 million, or 5.0%, to $2.4 billion at September 30, 2024 from $2.3 billion at June 30, 2024, primarily due to net income of $112.3 million.
Conference Call
A conference call and webcast will be held on Wednesday, October 30, 2024, at 5:00 PM Eastern / 2:00 PM Pacific. Analysts and investors may dial in and participate in the question/answer session. To access the call, please dial: 877-407-8293. The conference call will be webcast live, and both the webcast and the earnings supplement may be accessed at Axos’ website, investors.axosfinancial.com. For those unable to listen to the live broadcast, a replay will be available until November 30, 2024, at Axos’ website and telephonically by dialing toll-free number 877-660-6853, passcode 13749171.
About Axos Financial, Inc. and Subsidiaries
Axos Financial, Inc., with approximately $23.6 billion in consolidated assets as of September 30, 2024, is the holding company for Axos Bank, Axos Clearing LLC and Axos Invest, Inc. Axos Bank provides consumer and business banking products nationwide through its low-cost distribution channels and affinity partners. Axos Clearing LLC (including its business division Axos Advisor Services), with approximately $37.4 billion of assets under custody and/or administration as of September 30, 2024, and Axos Invest, Inc., provide comprehensive securities clearing services to introducing broker-dealers and registered investment advisor correspondents, and digital investment advisory services to retail investors, respectively. Axos Financial, Inc.’s common stock is listed on the NYSE under the symbol “AX” and is a component of the Russell 2000® Index, the S&P SmallCap 600® Index, the KBW Nasdaq Financial Technology Index, and the Travillian Tech-Forward Bank Index. For more information on Axos Financial, Inc., please visit http://investors.axosfinancial.com.



Segment Reporting
The Company operates through two segments: the Banking Business Segment and the Securities Business Segment. In order to reconcile the two segments to the consolidated totals, the Company includes parent-only activities and intercompany eliminations. Inter-segment transactions are eliminated in consolidation and primarily include non-interest income earned by the Securities Business Segment and non-interest expense incurred by the Banking Business Segment for cash sorting fees related to deposits sourced from Securities Business Segment customers, as well as interest expense paid by the Banking Business Segment to each of the wholly-owned subsidiaries of the Company and to the Company itself for their operating cash held on deposit with the Business Banking Segment.
The following tables present the operating results of the segments:
For the Three Months Ended September 30, 2024
(Dollars in thousands)Banking
Business Segment		Securities Business SegmentCorporate/EliminationsAxos Consolidated
Net interest income$288,492 $7,267 $(3,711)$292,048 
Provision for credit losses14,000 — — 14,000 
Non-interest income8,590 29,902 (9,883)28,609 
Non-interest expense118,315 28,091 1,059 147,465 
Income before income taxes$164,767 $9,078 $(14,653)$159,192 
For the Three Months Ended September 30, 2023
(Dollars in thousands)Banking
Business Segment		Securities Business SegmentCorporate/EliminationsAxos Consolidated
Net interest income$209,219 $5,542 $(3,606)$211,155 
Provision for credit losses7,000 — — 7,000 
Non-interest income12,557 34,555 (12,605)34,507 
Non-interest expense100,786 27,523 (7,803)120,506 
Income before income taxes$113,990 $12,574 $(8,408)$118,156 
Use of Non-GAAP Financial Measures
In addition to the results presented in accordance with accounting principles generally accepted in the United States of America (“GAAP”), this release includes non-GAAP financial measures such as adjusted earnings, adjusted earnings per diluted common share, and tangible book value per common share. Non-GAAP financial measures have inherent limitations, may not be comparable to similarly titled measures used by other companies and are not audited. Readers should be aware of these limitations and should be cautious as to their reliance on such measures. Although we believe the non-GAAP financial measures disclosed in this release enhance investors’ understanding of our business and performance, these non-GAAP measures should not be considered in isolation, or as a substitute for GAAP basis financial measures.
We define “adjusted earnings”, a non-GAAP financial measure, as net income without the after-tax impact of non-recurring acquisition-related items (including amortization of intangible assets related to acquisitions) and other costs (unusual or non-recurring charges). Adjusted EPS, a non-GAAP financial measure, is calculated by dividing non-GAAP adjusted earnings by the average number of diluted common shares outstanding during the period. We believe the non-GAAP measures of adjusted earnings and Adjusted EPS provide useful information about Axos’ operating performance. We believe excluding the non-recurring acquisition-related costs and other costs provides investors with an alternative understanding of Axos’ core business.


Below is a reconciliation of net income, the nearest comparable GAAP measure, to adjusted earnings and adjusted EPS (Non-GAAP) for the periods shown:
Three Months Ended
September 30,
(Dollars in thousands, except per share amounts)20242023
Net income$112,340 $82,645 
Acquisition-related costs 2,554 2,790 
Income tax effect(752)(839)
Adjusted earnings (Non-GAAP)$114,142 $84,596 
Average dilutive common shares outstanding58,168,468 59,808,322 
Diluted EPS$1.93 $1.38 
Acquisition-related costs0.04 0.05 
Income tax effect(0.01)(0.02)
   Adjusted EPS (Non-GAAP)$1.96 $1.41 
We define “tangible book value”, a non-GAAP financial measure, as book value adjusted for goodwill and other intangible assets. Tangible book value is calculated using common stockholders’ equity minus servicing rights, goodwill and other intangible assets. Tangible book value per common share is calculated by dividing tangible book value by the common shares outstanding at the end of the period. We believe tangible book value per common share is useful in evaluating the Company’s capital strength, financial condition, and ability to manage potential losses.
Below is a reconciliation of total stockholders’ equity, the nearest comparable GAAP measure, to tangible book value per common share (non-GAAP) as of the dates indicated:
(Dollars in thousands, except per share amounts)September 30,
2024		June 30,
2024		September 30,
2023
Common stockholders’ equity$2,405,728 $2,290,596 $1,976,208 
Less: servicing rights, carried at fair value27,335 28,924 29,338 
Less: goodwill and intangible assets—net139,215 141,769 149,572 
Tangible common stockholders’ equity (Non-GAAP)$2,239,178 $2,119,903 $1,797,298 
Common shares outstanding at end of period57,092,216 56,894,565 58,503,976 
Book value per common share$42.14 40.26 $33.78 
Less: servicing rights, carried at fair value per common share0.48 0.51 0.50 
Less: goodwill and other intangible assets—net per common share2.44 2.49 2.56 
Tangible book value per common share (Non-GAAP)$39.22 $37.26 $30.72 



Forward-Looking Safe Harbor Statement
This press release contains forward-looking statements that involve risks and uncertainties, including without limitation statements relating to Axos’ financial prospects and other projections of its performance and asset quality, Axos’ deposit balances and capital ratios, Axos’ ability to continue to grow profitably and increase its business, Axos’ ability to continue to diversify its lending and deposit franchises, the anticipated timing and financial performance of other offerings, initiatives, and acquisitions, expectations of the environment in which Axos operates and projections of future performance. These forward-looking statements are made on the basis of the views and assumptions of management regarding future events and performance as of the date of this press release. Actual results and the timing of events could differ materially from those expressed or implied in such forward-looking statements as a result of risks and uncertainties, including without limitation Axos’ ability to successfully integrate acquisitions and realize the anticipated benefits of the transactions, changes in the interest rate environment, monetary policy, inflation, government regulation, general economic conditions, changes in the competitive marketplace, conditions in the real estate markets in which we operate, risks associated with credit quality, our ability to attract and retain deposits and access other sources of liquidity, and the outcome and effects of litigation and other factors beyond our control. These and other risks and uncertainties detailed in Axos’ periodic reports filed with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the fiscal year ended June 30, 2024 (the “2024 Form 10-K”), could cause actual results to differ materially from those expressed or implied in any forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Axos undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. All written and oral forward-looking statements made in connection with this press release, which are attributable to us or persons acting on Axos’ behalf are expressly qualified in their entirety by the foregoing information.

Investor Relations Contact:
Johnny Lai, CFA
SVP, Corporate Development & Investor Relations
858-649-2218
jlai@axosfinancial.com


AXOS FINANCIAL, INC.
SELECTED CONSOLIDATED FINANCIAL INFORMATION
(Unaudited – dollars in thousands)
September 30,
2024		June 30,
2024		September 30,
2023
Selected Balance Sheet Data:
Total assets$23,569,084$22,855,334$20,825,206
Loans—net of allowance for credit losses19,280,60919,231,38516,955,041
Loans held for sale, carried at fair value14,56616,4828,014
Allowance for credit losses263,854260,542170,870
Trading securities594353640
Available-for-sale securities137,996141,611236,726
Securities borrowed84,32667,21296,424
Customer, broker-dealer and clearing receivables262,774240,028285,423
Total deposits19,973,32919,359,21717,565,741
Advances from the Federal Home Loan Bank90,00090,00090,000
Borrowings, subordinated notes and debentures313,519325,679447,733
Securities loaned95,88374,177116,446
Customer, broker-dealer and clearing payables315,985301,127341,915
Total stockholders’ equity$2,405,728$2,290,596$1,976,208
Common shares outstanding at end of period57,092,21656,894,56558,503,976
Common shares issued at end of period70,562,33370,221,63269,826,263
Per Common Share Data:
Book value per common share$42.14$40.26$33.78
Tangible book value per common share (Non-GAAP)1
$39.22$37.26$30.72
Capital Ratios:
Equity to assets at end of period10.21 %10.02 %9.49 %
Axos Financial, Inc.:
Tier 1 leverage (to adjusted average assets)9.78 %9.43 %9.27 %
Common equity tier 1 capital (to risk-weighted assets)12.44 %12.01 %11.11 %
Tier 1 capital (to risk-weighted assets)12.44 %12.01 %11.11 %
Total capital (to risk-weighted assets)15.29 %14.84 %14.06 %
Axos Bank:
Tier 1 leverage (to adjusted average assets)9.82 %9.74 %9.99 %
Common equity tier 1 capital (to risk-weighted assets)12.87 %12.74 %11.69 %
Tier 1 capital (to risk-weighted assets)12.87 %12.74 %11.69 %
Total capital (to risk-weighted assets)14.06 %13.81 %12.65 %
Axos Clearing LLC:
Net capital$85,292 $101,462 $101,391 
Excess capital$80,081 $96,654 $96,211 
Net capital as a percentage of aggregate debit items32.73 %42.21 %39.14 %
Net capital in excess of 5% aggregate debit items$72,264 $89,442 $88,440 




AXOS FINANCIAL, INC.
SELECTED CONSOLIDATED FINANCIAL INFORMATION
(Unaudited – dollars in thousands, except per share data)

As of or for the
Three Months Ended
September 30,
(Dollars in thousands, except per share data)20242023
Selected Income Statement Data:
Interest and dividend income$484,262$363,952
Interest expense192,214152,797
Net interest income292,048211,155
Provision for credit losses14,0007,000
Net interest income, after provision for credit losses278,048204,155
Non-interest income28,60934,507
Non-interest expense147,465120,506
Income before income taxes159,192118,156
Income tax expense46,85235,511
Net income$112,340$82,645
Weighted average number of common shares outstanding:
Basic56,934,67158,949,038
Diluted58,168,46859,808,322
Per Common Share Data:
Net income:
Basic$1.97$1.40
Diluted$1.93$1.38
Adjusted earnings per common share (Non-GAAP)1
$1.96$1.41
Performance Ratios and Other Data:
Growth in loans held for investment, net$49,224$498,313
Loan originations for sale69,57052,858
Return on average assets1.92 %1.64 %
Return on average common stockholders’ equity19.12 %16.91 %
Interest rate spread2
4.13 %3.37 %
Net interest margin3
5.17 %4.36 %
Net interest margin3 – Banking Business Segment
5.21 %4.46 %
Efficiency ratio4
45.99 %49.05 %
Efficiency ratio4 – Banking Business Segment
39.83 %45.44 %
Asset Quality Ratios:
Net annualized charge-offs to average loans0.17 %0.04 %
Non-accrual loans to total loans
0.89 %0.62 %
Non-performing assets to total assets0.75 %0.56 %
Allowance for credit losses - loans to total loans held for investment5
1.35 %1.00 %
Allowance for credit losses - loans to non-accrual loans
149.32 %159.80 %
1     See “Use of Non-GAAP Financial Measures.”
2     Interest rate spread represents the difference between the annualized weighted average yield on interest-earning assets and the annualized weighted average
    rate paid on interest-bearing liabilities.
3    Net interest margin represents annualized net interest income as a percentage of average interest-earning assets.
4    Efficiency ratio represents non-interest expense as a percentage of the aggregate of net interest income and non-interest income.
5 The increase in the ratio of the allowance for credit losses - loans to total loans held for investment at September 30, 2024 was primarily attributable to the allowance for credit losses related to the purchased credit deteriorated loans acquired in the FDIC Loan Purchase. See Note 2— “Acquisitions” in the 2024 Form 10-K for additional information.


Axos Q1 Fiscal 2025 Earnings Supplement NYSE: AXOctober 30, 2024

 
2 Loan Growth by Category $ Millions SF Warehouse Lending Multifamily Small Balance Commercial Jumbo Mortgage Asset-Based and Cash Flow Lending Lender Finance Non-RE Capital Call Facilities Auto Unsecured/OD Single Family Mortgage & Warehouse Multifamily & Commercial Mortgage Commercial Real Estate Commercial & Industrial Non-RE Loans Inc (Dec)Q4 FY24Q1 FY25 $ (115)$ 3,922$ 3,807 88257345 (178)2,5412,363 (37)1,3211,284 1895,1895,378 (22)900878 32,3282,331 1711,7971,968 (60)1,1161,056 (13)386373 (2)4442 (1)21 $ 23$ 19,803$ 19,826 Lender Finance RE CRE Specialty Other Auto & Consumer

 
3 FDIC Loan Purchase Metrics as of September 30, 2024 Remaining Term (Months) Weighted- Average LTV Weighted- Average Yield Before Accretion of Discount Unpaid Principal Balance (mm) Loan Type 4152.0 %7.4 %$ 238Office 1238.64.2122Data Center 1428.68.545Land 950.66.650Other 8669.96.738Industrial 3056.97.233Mixed Use 3049.17.527Retail 3248.4 %6.6 %$ 553Total CRE 13461.36.6350Residential 7572.67.0263 Rent-stabilized / Rent- controlled Multifamily1 10966.2 %6.7 %$ 613Total Multifamily 7257.7 %6.7 %$ 1,166Total Note 1: 1,145 units out of 1,146 total units are rent-stabilized; only 1 is rent-controlled On December 7, 2023, Axos completed a purchase of $1.25 billion of loans from the FDIC at a 37% discount.

 
4 Commercial Real Estate Specialty1 Detail as of September 30, 2024 Non-Accrual Loans (mm)Weighted Avg. LTVBalance (mm)Loan Type $ 1140 %$ 1,912Multifamily 1539978SFR —41968Hotel —51571Industrial 1533451Other —31301Office —46197Retail $ 4140 %$ 5,378Total Note 1: Includes Commercial Real Estate Specialty loan portfolio only. LTV Distribution

 
5 DepositsLoans Interest Rate Sensitivity of Loans & Deposits As of September 30, 2024 TotalInterest Rate $ 4,265,2490% ~ 2% $ 1,566,6852% ~ 4% $ 13,340,6304% ~ 6% $ 19,172,564 Non-Time Deposits by Interest Rate (Dollars in Thousands) • $1,018 million of deposits tied to the Federal Funds rate • Deposit rate optionality enhanced by $450 million of off-balance sheet deposits from Axos Securities • Of the fixed and hybrid rate loan balances in our portfolio at September 30, 2024, 64% will reprice within 3 years and 91% will reprice within 5 years.

 
6 Diversified Deposit Gathering Approximately 90% of deposits are FDIC-insured or collateralized Deposit balances as of September 30, 2024 Note 1: Excludes approximately $450 million of off-balance sheet deposits › Serves approximately 40% of U.S. Chapter 7 bankruptcy trustees in exclusive relationship › Software allows servicing of SEC receivers and non-chapter 7 cases › Full service digital banking, wealth management, and securities trading › White-label banking › Business banking with simple suite of cash management services › 1031 exchange firms › Title and escrow companies › HOA and property management › Business management and entertainment › Broker-dealer client cash › Broker-dealer reserve accounts › Full service treasury/cash management › Team enhancements and geographic expansion › Bank and securities cross-sell Fiduciary Services $1.2B Consumer Direct $11.8B Specialty Deposits $1.5B Distribution Partners $0.5B Axos Securities $0.8B1 Small Business Banking $0.4B Commercial & Treasury Management $3.8B Diversified Deposit Gathering Business Lines

 
7 Change in Allowance for Credit Losses (ACL) & Unfunded Loan Commitments Reserve (UCL) ($ in millions) ACL + UCL ACL + UCL (9.2)

 
8 Allowance for Credit Losses (ACL) by Loan Category as of September 30, 2024 $ Millions ACL %1ACLLoan Balance 0.4 %$ 17$ 4,152 1.8 %663,647 1.5 %956,256 1.4 %775,355 2.2 %9416 1.3 %$ 264$ 19,826 Single Family Mortgage & Warehouse Multifamily & Commercial Mortgage Commercial Real Estate Commercial & Industrial Non-RE Auto & Consumer Loans Note 1: ACL % is based on gross unpaid principal balance

 
9 Credit Quality ($ millions) %Non-Accrual LoansLoans O/SSeptember 30, 2024 1.42 %$ 59$ 4,152Single Family-Mortgage & Warehouse 0.85313,647Multifamily and Commercial Mortgage 0.66416,256Commercial Real Estate 0.82445,355Commercial & Industrial - Non-RE 0.482416Auto & Consumer 0.89 %$ 177$ 19,826Total %Non-Accrual LoansLoans O/SJune 30, 2024 1.10 %$ 46$ 4,179Single Family-Mortgage & Warehouse 0.91353,862Multifamily and Commercial Mortgage 0.43266,089Commercial Real Estate 0.0845,241Commercial & Industrial - Non-RE 0.472432Auto & Consumer 0.57 %$ 113$ 19,803Total %Non-Accrual LoansLoans O/SSeptember 30, 2023 0.85 %$ 37$ 4,314Single Family-Mortgage & Warehouse 1.31392,962Multifamily and Commercial Mortgage 0.42266,169Commercial Real Estate 0.0933,209Commercial & Industrial - Non-RE 0.392508Auto & Consumer 0.62 %$ 107$ 17,162Total

 
10 September 30, 2023 December 31, 2023 March 31, 2024 June 30, 2024 September 30, 2024 Selected Balance Sheet Data: $ 20,825,206$ 21,623,764$ 22,642,133$ 22,855,334$ 23,569,084Total assets 16,955,04118,264,35418,733,45519,231,38519,280,609Loans—net of allowance for credit losses 8,01413,46816,23916,48214,566Loans held for sale, carried at fair value 170,870251,749257,522260,542263,854Allowance for credit losses 640329592353594Securities—trading 236,726239,812207,582141,611137,996Securities—available-for-sale 96,424145,176105,85367,21284,326Securities borrowed 285,423265,857292,630240,028262,774Customer, broker-dealer and clearing receivables 17,565,74118,203,91219,103,53219,359,21719,973,329Total deposits 90,00090,00090,00090,00090,000Advances from the FHLB 447,733341,086330,389325,679313,519Borrowings, subordinated notes and debentures 116,446155,492119,80074,17795,883Securities loaned 341,915368,885387,176301,127315,985Customer, broker-dealer and clearing payables $ 1,976,208$ 2,078,224$ 2,196,293$ 2,290,596$ 2,405,728Total stockholders’ equity 58,503,97656,898,37757,079,42956,894,56557,092,216Common shares outstanding at end of period 69,826,26369,828,70970,033,52370,221,63270,562,333Common shares issued at end of period Per Common Share Data: $ 33.78$ 36.53$ 38.48$ 40.26$ 42.14Book value per common share $ 30.72$ 33.45$ 35.46$ 37.26$ 39.22Tangible book value per common share (Non-GAAP)1 Capital Ratios: 9.49 %9.61 %9.70 %10.02 %10.21 %Equity to assets at end of period Axos Financial, Inc.: 9.27 %9.39 %9.33 %9.43 %9.78 %Tier 1 leverage (to adjusted average assets) 11.11 %10.97 %11.47 %12.01 %12.44 %Common equity tier 1 capital (to risk-weighted assets) 11.11 %10.97 %11.47 %12.01 %12.44 %Tier 1 capital (to risk-weighted assets) 14.06 %13.79 %14.26 %14.84 %15.29 %Total capital (to risk-weighted assets) Axos Bank: 9.99 %10.22 %9.86 %9.74 %9.82 %Tier 1 leverage (to adjusted average assets) 11.69 %12.26 %12.47 %12.74 %12.87 %Common equity tier 1 capital (to risk-weighted assets) 11.69 %12.26 %12.47 %12.74 %12.87 %Tier 1 capital (to risk-weighted assets) 12.65 %13.25 %13.49 %13.81 %14.06 %Total capital (to risk-weighted assets) Axos Clearing LLC: $ 101,391$ 103,454$ 102,963$ 101,462$ 85,292Net capital $ 96,211$ 98,397$ 97,646$ 96,654$ 80,081Excess capital 39.14 %40.92 %38.73 %42.21 %32.73 %Net capital as a percentage of aggregate debit items $ 88,440$ 90,812$ 89,671$ 89,442$ 72,264Net capital in excess of 5% aggregate debit items AXOS FINANCIAL, INC. SELECTED CONSOLIDATED FINANCIAL INFORMATION (Unaudited – dollars in thousands)

 
11 At or For The Three Months Ended September 30, 2023 December 31, 2023 March 31, 2024 June 30, 2024 September 30, 2024 Selected Income Statement Data: $ 363,952$ 394,663$ 443,564$ 453,428$ 484,262Interest and dividend income 152,797166,057181,958193,366192,214Interest expense 211,155228,606261,606260,062292,048Net interest income 7,00013,5006,0006,00014,000Provision for credit losses 204,155215,106255,606254,062278,048Net interest income, after provision for credit losses 34,507124,12933,16330,86128,609Non-interest income 120,506121,839133,228140,535147,465Non-interest expense 118,156217,396155,541144,388159,192Income before income taxes 35,51165,62544,82139,51646,852Income taxes $ 82,645$ 151,771$ 110,720$ 104,872$ 112,340Net income Weighted average number of common shares outstanding: 58,949,03857,216,62156,932,05056,938,40556,934,671Basic 59,808,32257,932,83458,037,69858,164,62358,168,468Diluted Per Common Share Data: Net income: $ 1.40$ 2.65$ 1.94$ 1.84$ 1.97Basic $ 1.38$ 2.62$ 1.91$ 1.80$ 1.93Diluted $ 1.41$ 1.60$ 1.94$ 1.83$ 1.96Adjusted earnings per common share (Non-GAAP)1 Performance Ratios and Other Data: $ 498,313$ 1,309,313$ 469,101$ 497,930$ 49,224Growth in loans held for investment, net 52,85844,32547,82152,57469,570Loan originations for sale 1.64 %2.90 %1.98 %1.81 %1.92 %Return on average assets 16.91 %30.39 %20.71 %18.81 %19.12 %Return on average common stockholders’ equity 3.37 %3.58 %3.88 %3.63 %4.13 %Interest rate spread2 4.36 %4.55 %4.87 %4.65 %5.17 %Net interest margin3 4.46 %4.62 %4.92 %4.68 %5.21 %Net interest margin3 – Banking Business Segment 49.05 %34.54 %45.20 %48.31 %45.99 %Efficiency ratio4 45.44 %30.96 %38.82 %41.39 %39.83 %Efficiency ratio4 – Banking Business Segment Asset Quality Ratios: 0.04 %0.04 %0.07 %0.05 %0.17 %Net annualized charge-offs to average loans 0.62 %0.65 %0.63 %0.57 %0.89 %Nonaccrual loans to total loans 0.56 %0.60 %0.55 %0.51 %0.75 %Non-performing assets to total assets 1.00 %1.33 %1.36 %1.34 %1.35 %Allowance for credit losses - loans to total loans held for investment 159.80 %205.50 %210.95 %229.84 %149.32 %Allowance for credit losses - loans to non-performing loans 1 See “Use of Non-GAAP Financial Measures” herein. 2 Interest rate spread represents the difference between the annualized weighted average yield on interest-earning assets and the annualized weighted average rate paid on interest-bearing liabilities. 3 Net interest margin represents annualized net interest income as a percentage of average interest-earning assets. 4 Efficiency ratio represents non-interest expense as a percentage of the aggregate of net interest income and non-interest income. AXOS FINANCIAL, INC. SELECTED CONSOLIDATED FINANCIAL INFORMATION (Unaudited – dollars in thousands)

 
September 30, 2023 December 31, 2023 March 31, 2024 June 30, 2024 September 30, 2024(Dollars in thousands, except per share amounts) $ 82,645$ 151,771$ 110,720$ 104,872$ 112,340Net income —(92,397)———FDIC Loan Purchase - Gain on purchase —4,648———FDIC Loan Purchase - Provision for credit losses 2,7902,7802,7192,5542,554Acquisition-related costs (839)25,650(784)(699)(752)Income taxes $ 84,596$ 92,452$ 112,655$ 106,727$ 114,142Adjusted earnings (non-GAAP) 59,808,32257,932,83458,037,69858,164,62358,168,468Average dilutive common shares outstanding $ 1.38$ 2.62$ 1.91$ 1.80$ 1.93Diluted EPS —(1.59)———FDIC Loan Purchase - Gain on Purchase —0.08———FDIC Loan Purchase - Provision for credit losses 0.050.050.050.040.04Acquisition-related costs (0.02)0.44(0.02)(0.01)(0.01)Income taxes $ 1.41$ 1.60$ 1.94$ 1.83$ 1.96Adjusted EPS (Non-GAAP) We define “tangible book value”, a non-GAAP financial measure, as book value adjusted for goodwill and other intangible assets. Tangible book value is calculated using common stockholders’ equity minus servicing rights, goodwill and other intangible assets. Tangible book value per common share, a non-GAAP financial measure, is calculated by dividing tangible book value by the common shares outstanding at the end of the period. We believe tangible book value per common share is useful in evaluating the Company’s capital strength, financial condition, and ability to manage potential losses. Below is a reconciliation of total stockholders’ equity, the nearest comparable GAAP measure, to tangible book value per common share (non-GAAP) as of the dates indicated: September 30, 2023 December 31, 2023 March 31, 2024 June 30, 2024 September 30, 2024(Dollars in thousands, except per share amounts) $ 1,976,208$ 2,078,224$ 2,196,293$ 2,290,596$ 2,405,728Common stockholders’ equity 29,33828,04328,13028,92427,335Less: servicing rights, carried at fair value 149,572146,793144,324141,769139,215Less: goodwill and intangible assets $ 1,797,298$ 1,903,388$ 2,023,839$ 2,119,903$ 2,239,178Tangible common stockholders’ equity (Non-GAAP) 58,503,97656,898,37757,079,42956,894,56557,092,216Common shares outstanding at end of period $ 33.78$ 36.53$ 38.48$ 40.26$ 42.14Book value per common share $ 0.50$ 0.49$ 0.49$ 0.51$ 0.48Less: servicing rights, carried at fair value per common share $ 2.56$ 2.59$ 2.53$ 2.49$ 2.44Less: goodwill and other intangible assets per common share $ 30.72$ 33.45$ 35.46$ 37.26$ 39.22Tangible book value per common share (Non-GAAP) Use of Non-GAAP Financial Measures In addition to the results presented in accordance with GAAP, this earnings supplement includes non-GAAP financial measures such as adjusted earnings, adjusted earnings per diluted common share, and tangible book value per common share. Non-GAAP financial measures have inherent limitations, may not be comparable to similarly titled measures used by other companies and are not audited. Readers should be aware of these limitations and should be cautious as to their reliance on such measures. Although we believe the non-GAAP financial measures disclosed in this report enhance investors’ understanding of our business and performance, these non-GAAP measures should not be considered in isolation, or as a substitute for GAAP basis financial measures. We define “adjusted earnings”, a non-GAAP financial measure, as net income without the after-tax impact of non-recurring acquisition-related costs and other costs (unusual or non-recurring charges). Adjusted earnings per diluted common share (“adjusted EPS”), a non-GAAP financial measure, is calculated by dividing non-GAAP adjusted earnings by the average number of diluted common shares outstanding during the period. We believe the non-GAAP measures of adjusted earnings and adjusted EPS provide useful information about the Company’s operating performance. We believe excluding the non-recurring acquisition related costs and other costs (unusual or non-recurring) provides investors with an alternative understanding of Axos’ core business. Below is a reconciliation of net income, the nearest comparable GAAP measure, to adjusted earnings and adjusted EPS (Non-GAAP) for the periods shown:

 
13 Greg Garrabrants, President and CEO Derrick Walsh, EVP and CFO investors@axosfinancial.com www.axosfinancial.com Johnny Lai, SVP Corporate Development and Investor Relations Phone: 858.649.2218 Mobile: 858.245.1442 jlai@axosfinancial.com Contact Information

 
v3.24.3
Cover Page
Oct. 30, 2024
Cover [Abstract]  
Document Type 8-K
Document Period End Date Oct. 30, 2024
Entity Registrant Name Axos Financial, Inc.
Entity Incorporation, State or Country Code DE
Entity File Number 001-37709
Entity Tax Identification Number 33-0867444
Entity Address, Address Line One 9205 West Russell Road, Ste 400
Entity Address, City or Town Las Vegas
Entity Address, State or Province NV
Entity Address, Postal Zip Code 89148
City Area Code 858
Local Phone Number 649-2218
Title of 12(b) Security Common stock, $0.01 par value
Trading Symbol AX
Security Exchange Name NYSE
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Entity Emerging Growth Company false
Entity Central Index Key 0001299709
Amendment Flag false
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