0001299709false00012997092024-07-302024-07-30
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): July 30, 2024
Axos Financial, Inc.
(Exact name of registrant as specified in its charter)
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Delaware | 001-37709 | 33-0867444 |
(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
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Securities registered pursuant to Section 12(b) of the Act: |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
Common stock, $0.01 par value | AX | New 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 July 30, 2024, Axos Financial, Inc. (the “Registrant” or the “Company”) issued a press release announcing its fiscal fourth quarter results of operations for the period ended June 30, 2024. The press release, related financial schedules and earnings supplement presentation are furnished as Exhibits 99.1 through 99.4. The Registrant is furnishing the related quarterly earnings supplement in two different formats as Exhibits 99.3 and 99.4.
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, 99.3 and 99.4 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.
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Exhibit | | Description |
99.1 | | |
99.2 | | |
99.3 | | |
99.4 | | |
104 | | Cover 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.
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| | Axos Financial, Inc. |
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Date: | July 30, 2024 | By: | /s/ Derrick K. Walsh | |
| | | Derrick K. Walsh |
| | | EVP and Chief Financial Officer |
Axos Financial, Inc. Reports Record Fiscal Year 2024 Results
LAS VEGAS, NV – (BUSINESS WIRE) – July 30, 2024 – Axos Financial, Inc. (NYSE: AX) (“Axos” or the “Company”) today announced unaudited financial results for the fourth fiscal quarter ended June 30, 2024. Net income was $104.9 million, an increase of 20.1% from $87.4 million for the quarter ended June 30, 2023. Diluted earnings per share (“EPS”) were $1.80, an increase of $0.34, or 23.3%, as compared to diluted earnings per share of $1.46 for the quarter ended June 30, 2023.
Adjusted earnings and adjusted earnings per diluted common share (“Adjusted EPS”), non-GAAP measures described further below, increased $17.3 million to $106.7 million and increased $0.33 to $1.83, respectively, for the quarter ended June 30, 2024, compared to $89.4 million and $1.50, respectively, for the quarter ended June 30, 2023.
Fourth Quarter Fiscal 2024 Financial Summary
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| Three Months Ended June 30, | | |
(Dollars in thousands, except per share data) | 2024 | | 2023 | | % Change |
Net interest income | $ | 260,062 | | | $ | 203,754 | | | 27.6 | % |
Non-interest income | $ | 30,861 | | | $ | 32,705 | | | (5.6) | % |
Net income | $ | 104,872 | | | $ | 87,356 | | | 20.1 | % |
Adjusted earnings (Non-GAAP)1 | $ | 106,727 | | | $ | 89,431 | | | 19.3 | % |
Diluted EPS | $ | 1.80 | | | $ | 1.46 | | | 23.3 | % |
Adjusted EPS (Non-GAAP)1 | $ | 1.83 | | | $ | 1.50 | | | 22.0 | % |
1 See “Use of Non-GAAP Financial Measures” | | | | | |
For the fiscal year ended June 30, 2024, net income was $450.0 million, an increase of 46.5% from net income of $307.2 million for the fiscal year ended June 30, 2023. Diluted earnings per share were $7.66 for the fiscal year ended June 30, 2024, an increase of $2.59, or 51.1%, as compared to diluted earnings per share of $5.07 for the fiscal year ended June 30, 2023.
“We had an exceptional fiscal year 2024, with 51% EPS growth, 27 basis point of net interest margin expansion, and a 24% increase in book value per share,” stated Greg Garrabrants, President and Chief Executive Officer of Axos. “Credit remains strong, as evidenced by the 5 basis points of net charge-offs to average loans and the 6 basis point sequential decline in our non-accrual loans to total loans in the three months ended June 30, 2024. We continue to operate a highly efficient and profitable company, as indicated by our 43.6% consolidated efficiency ratio and 21.6% return on average common stockholders’ equity for fiscal year 2024.”
Other Highlights
•Net interest margin was 4.65% for the quarter ended June 30, 2024, compared to 4.19% for the quarter ended June 30, 2023
•Net loans for investment totaled $19.2 billion at June 30, 2024, an increase of $0.5 billion, or 10.6% annualized, from $18.7 billion at March 31, 2024
•Total deposits were $19.4 billion at June 30, 2024, an increase of $2.3 billion, or 13.1%, from $17.1 billion at June 30, 2023; total savings, checking and other demand deposits were $18.4 billion at June 30, 2024, up from $15.8 billion at June 30, 2023
•Approximately 90% of total deposits were FDIC-insured or collateralized at June 30, 2024
•Non-accrual loans to total loans was 57 basis points at June 30, 2024, down from 63 basis points at March 31, 2024
•Total capital to risk-weighted assets was 13.81% for Axos Bank at June 30, 2024, up from 12.50% at June 30, 2023
•Book value per share increased to $40.26, up 23.76% from $32.53 at June 30, 2023
•Axos repurchased approximately $13.2 million of common stock in the three months ended June 30, 2024 at an average share price of $48.37 per share
Fourth Quarter Fiscal 2024 Income Statement Summary
Net income was $104.9 million and earnings per diluted common share was $1.80 for the three months ended June 30, 2024, compared to net income of $87.4 million and earnings per diluted common share of $1.46 for the three months ended June 30, 2023. Net interest income increased $56.3 million or 27.6% for the three months ended June 30, 2024, compared to the three months ended June 30, 2023, primarily due to an increase in interest income from loans attributable to higher average balances and higher rates earned, including the impact of discount accretion on loans obtained in the FDIC Loan Purchase, partially offset by higher average interest-bearing deposit balances and higher rates paid.
The provision for credit losses was $6.0 million for the three months ended June 30, 2024, compared to $7.0 million for the three months ended June 30, 2023. The provision for credit losses for the three months ended June 30, 2024, was primarily due to loan growth in the Commercial & Industrial - Non-Real Estate portfolio as well as increases across loan portfolios reflecting changes in the underlying macroeconomic variables.
Non-interest income decreased to $30.9 million for the three months ended June 30, 2024, compared to $32.7 million for the three months ended June 30, 2023. The decrease was primarily due to lower broker-dealer fee income and lower prepayment penalty fee income, partially offset by higher mortgage banking and servicing rights income.
Non-interest expense, comprised of various operating expenses, increased $28.0 million to $140.5 million for the three months ended June 30, 2024 from $112.5 million for the three months ended June 30, 2023. The increase was primarily due to higher salaries and related costs, higher professional services expense and higher advertising and promotional expense.
Full Year Fiscal 2024 Highlights
•Net income reached a record $450.0 million, an increase of 46.5% compared to fiscal year ended June 30, 2023
•Diluted earnings per share were $7.66, up 51.1% from $5.07 in the fiscal year ended June 30, 2023
•Deposits increased by $2.3 billion, or 13.1%, to $19.4 billion during fiscal year ended June 30, 2024
•Net interest margin for the Banking Business segment increased to 4.68% for the fiscal year ended June 30, 2024, compared to 4.48% for the fiscal year ended June 30, 2023
•Efficiency ratio was 43.59% for the fiscal year ended June 30, 2024, compared to 49.54% for the fiscal year ended June 30, 2023
•Return on average assets increased to 2.08% for the fiscal year ended June 30, 2024 from 1.64% for the fiscal year ended June 30, 2023
Balance Sheet Summary
Axos’ total assets increased by $2.6 billion, or 12.3%, to $22.9 billion, at June 30, 2024, from $20.3 billion at June 30, 2023, primarily due to an increase in loans. Total liabilities increased by $2.2 billion, or 11.6%, to $20.6 billion at June 30, 2024, from $18.4 billion at June 30, 2023, primarily due to an increase in deposits. Stockholders’ equity increased by $373.4 million, or 19.5%, to $2.3 billion at June 30, 2024 from $1.9 billion at June 30, 2023, primarily due to net income of $450.0 million, partially offset by purchases of common stock of $97.0 million under the share repurchase program during the fiscal year ended June 30, 2024.
Conference Call
A conference call and webcast will be held on Tuesday, July 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 August 30, 2024, at Axos’ website and telephonically by dialing toll-free number 877-660-6853, passcode 13747476.
About Axos Financial, Inc. and Subsidiaries
Axos Financial, Inc., with approximately $22.9 billion in consolidated assets as of June 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 $35.7 billion of assets under custody and/or administration as of June 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: Banking Business and Securities Business. 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:
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| For the Three Months Ended June 30, 2024 |
(Dollars in thousands) | Banking Business | | Securities Business | | Corporate/Eliminations | | Axos Consolidated |
Net interest income | $ | 256,543 | | | $ | 7,452 | | | $ | (3,933) | | | $ | 260,062 | |
Provision for credit losses | 6,000 | | | — | | | — | | | 6,000 | |
Non-interest income | 10,827 | | | 29,079 | | | (9,045) | | | 30,861 | |
Non-interest expense | 110,668 | | | 27,111 | | | 2,756 | | | 140,535 | |
Income before income taxes | $ | 150,702 | | | $ | 9,420 | | | $ | (15,734) | | | $ | 144,388 | |
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| For the Three Months Ended June 30, 2023 |
(Dollars in thousands) | Banking Business | | Securities Business | | Corporate/Eliminations | | Axos Consolidated |
Net interest income | $ | 201,770 | | | $ | 5,556 | | | $ | (3,572) | | | $ | 203,754 | |
Provision for credit losses | 7,000 | | | — | | | — | | | 7,000 | |
Non-interest income | 10,306 | | | 37,640 | | | (15,241) | | | 32,705 | |
Non-interest expense | 95,579 | | | 27,648 | | | (10,771) | | | 112,456 | |
Income before income taxes | $ | 109,497 | | | $ | 15,548 | | | $ | (8,042) | | | $ | 117,003 | |
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| For the Year Ended June 30, 2024 |
(Dollars in thousands) | Banking Business | | Securities Business | | Corporate/Eliminations | | Axos Consolidated |
Net interest income | $ | 950,832 | | | $ | 26,207 | | | $ | (15,610) | | | $ | 961,429 | |
Provision for credit losses | 32,500 | | | — | | | — | | | 32,500 | |
Non-interest income | 139,071 | | | 129,020 | | | (45,431) | | | 222,660 | |
Non-interest expense | 418,695 | | | 115,091 | | | (17,678) | | | 516,108 | |
Income before income taxes | $ | 638,708 | | | $ | 40,136 | | | $ | (43,363) | | | $ | 635,481 | |
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| For the Year Ended June 30, 2023 |
(Dollars in thousands) | Banking Business | | Securities Business | | Corporate/Eliminations | | Axos Consolidated |
Net interest income | $ | 776,294 | | | $ | 21,042 | | | $ | (14,215) | | | $ | 783,121 | |
Provision for credit losses | 24,251 | | | — | | | — | | | 24,251 | |
Non-interest income | 42,260 | | | 141,107 | | | (62,879) | | | 120,488 | |
Non-interest expense | 391,410 | | | 102,572 | | | (46,368) | | | 447,614 | |
Income before income taxes | $ | 402,893 | | | $ | 59,577 | | | $ | (30,726) | | | $ | 431,744 | |
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 certain gains and provisions resulting from the Company’s FDIC Loan Purchase) 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:
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| Three Months Ended | | Year Ended |
| June 30, | | June 30, |
(Dollars in thousands, except per share amounts) | 2024 | | 2023 | | 2024 | | 2023 |
Net income | $ | 104,872 | | | $ | 87,356 | | | $ | 450,008 | | | $ | 307,165 | |
FDIC Loan Purchase - Gain on purchase1 | — | | | — | | | (92,397) | | | — | |
FDIC Loan Purchase - Provision for credit losses1 | — | | | — | | | 4,648 | | | — | |
Acquisition-related costs | 2,554 | | | 2,779 | | | 10,843 | | | 10,948 | |
Other costs2 | — | | | — | | | — | | | 16,000 | |
Income tax effect | (699) | | | (704) | | | 22,446 | | | (7,776) | |
Adjusted earnings (Non-GAAP) | $ | 106,727 | | | $ | 89,431 | | | $ | 395,548 | | | $ | 326,337 | |
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Average dilutive common shares outstanding | 58,164,623 | | | 59,707,871 | | | 58,725,636 | | | 60,566,854 | |
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Diluted EPS | $ | 1.80 | | | $ | 1.46 | | | $ | 7.66 | | | $ | 5.07 | |
FDIC Loan Purchase - Gain on purchase1 | — | | | — | | | (1.57) | | | — | |
FDIC Loan Purchase - Provision for credit losses1 | — | | | — | | | 0.08 | | | — | |
Acquisition-related costs | 0.04 | | | 0.05 | | | 0.18 | | | 0.18 | |
Other costs2 | — | | | — | | | — | | | 0.27 | |
Income tax effect | (0.01) | | | (0.01) | | | 0.39 | | | (0.13) | |
Adjusted EPS (Non-GAAP) | $ | 1.83 | | | $ | 1.50 | | | $ | 6.74 | | | $ | 5.39 | |
1 During the fiscal year ended June 30, 2024, the Company completed the purchase from the Federal Deposit Insurance Corporation (“FDIC”) of two performing commercial real estate and multi-family loan pools with a combined unpaid principal balance of approximately $1.25 billion at 63% of par value (the “FDIC Loan Purchase”). |
2 Other costs for the fiscal year ended June 30, 2023 reflect an accrual recorded in the first quarter of fiscal year 2024 as a result of an adverse legal judgement that has not been finalized. |
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:
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| June 30, |
(Dollars in thousands, except per share amounts) | 2024 | | 2023 |
Common stockholders’ equity | $ | 2,290,596 | | | $ | 1,917,159 | |
Less: servicing rights, carried at fair value | 28,924 | | | 25,443 | |
Less: goodwill and intangible assets—net | 141,769 | | | 152,149 | |
Tangible common stockholders’ equity (Non-GAAP) | $ | 2,119,903 | | | $ | 1,739,567 | |
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Common shares outstanding at end of period | 56,894,565 | | | 58,943,035 | |
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Book value per common share | $ | 40.26 | | | $ | 32.53 | |
Less: servicing rights, carried at fair value per common share | 0.51 | | | 0.44 | |
Less: goodwill and other intangible assets—net per common share | 2.49 | | | 2.58 | |
Tangible book value per common share (Non-GAAP) | $ | 37.26 | | | $ | 29.51 | |
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, 2023, 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)
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| June 30, 2024 | | June 30, 2023 | | June 30, 2022 |
Selected Balance Sheet Data: | | | | | |
Total assets | $ | 22,855,334 | | $ | 20,348,469 | | $ | 17,401,165 |
Loans—net of allowance for credit losses | 19,231,385 | | 16,456,728 | | 14,091,061 |
Loans held for sale, carried at fair value | 16,482 | | 23,203 | | 4,973 |
Loans held for sale, lower of cost or fair value | — | | 776 | | 10,938 |
Allowance for credit losses | 260,542 | | 166,680 | | 148,617 |
Trading securities | 353 | | 758 | | 1,758 |
Available-for-sale securities | 141,611 | | 232,350 | | 262,518 |
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Securities borrowed | 67,212 | | 134,339 | | 338,980 |
Customer, broker-dealer and clearing receivables | 240,028 | | 374,074 | | 417,417 |
Total deposits | 19,359,217 | | 17,123,108 | | 13,946,422 |
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Advances from the Federal Home Loan Bank | 90,000 | | 90,000 | | 117,500 |
Borrowings, subordinated notes and debentures | 325,679 | | 361,779 | | 445,244 |
Securities loaned | 74,177 | | 159,832 | | 474,400 |
Customer, broker-dealer and clearing payables | 301,127 | | 445,477 | | 511,654 |
Total stockholders’ equity | 2,290,596 | | 1,917,159 | | 1,642,973 |
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Capital Ratios: | | | | | |
Equity to assets at end of period | 10.02 | % | | 9.42 | % | | 9.44 | % |
Axos Financial, Inc.: | | | | | |
Tier 1 leverage (to adjusted average assets) | 9.43 | % | | 8.96 | % | | 9.25 | % |
Common equity tier 1 capital (to risk-weighted assets) | 12.01 | % | | 10.94 | % | | 9.86 | % |
Tier 1 capital (to risk-weighted assets) | 12.01 | % | | 10.94 | % | | 9.86 | % |
Total capital (to risk-weighted assets) | 14.84 | % | | 13.82 | % | | 12.73 | % |
Axos Bank: | | | | | |
Tier 1 leverage (to adjusted average assets) | 9.74 | % | | 9.68 | % | | 10.65 | % |
Common equity tier 1 capital (to risk-weighted assets) | 12.74 | % | | 11.63 | % | | 11.24 | % |
Tier 1 capital (to risk-weighted assets) | 12.74 | % | | 11.63 | % | | 11.24 | % |
Total capital (to risk-weighted assets) | 13.81 | % | | 12.50 | % | | 12.01 | % |
Axos Clearing LLC: | | | | | |
Net capital | $ | 101,462 | | | $ | 35,221 | | | $ | 38,915 | |
Excess capital | $ | 96,654 | | | $ | 29,905 | | | $ | 32,665 | |
Net capital as a percentage of aggregate debit items | 42.21 | % | | 13.25 | % | | 12.45 | % |
Net capital in excess of 5% aggregate debit items | $ | 89,442 | | | $ | 21,930 | | | $ | 23,290 | |
AXOS FINANCIAL, INC.
SELECTED CONSOLIDATED FINANCIAL INFORMATION
(Unaudited – dollars in thousands, except per share data)
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| As of or for the Three Months Ended | | As of or for the Year Ended |
| June 30, | | June 30, |
(Dollars in thousands, except per share data) | 2024 | | 2023 | | 2024 | | 2023 |
Selected Income Statement Data: | | | | | | | |
Interest and dividend income | $ | 453,428 | | $ | 346,430 | | $ | 1,655,607 | | $ | 1,157,138 |
Interest expense | 193,366 | | 142,676 | | 694,178 | | 374,017 |
Net interest income | 260,062 | | 203,754 | | 961,429 | | 783,121 |
Provision for credit losses | 6,000 | | 7,000 | | 32,500 | | 24,251 |
Net interest income, after provision for credit losses | 254,062 | | 196,754 | | 928,929 | | 758,870 |
Non-interest income | 30,861 | | 32,705 | | 222,660 | | 120,488 |
Non-interest expense | 140,535 | | 112,456 | | 516,108 | | 447,614 |
Income before income taxes | 144,388 | | 117,003 | | 635,481 | | 431,744 |
Income tax expense | 39,516 | | 29,647 | | 185,473 | | 124,579 |
Net income | $ | 104,872 | | $ | 87,356 | | $ | 450,008 | | $ | 307,165 |
| | | | | | | |
Per Common Share Data: | | | | | | | |
Net income: | | | | | | | |
Basic | $ | 1.84 | | $ | 1.48 | | $ | 7.82 | | $ | 5.15 |
Diluted | $ | 1.80 | | $ | 1.46 | | $ | 7.66 | | $ | 5.07 |
Adjusted earnings per common share (Non-GAAP)1 | $ | 1.83 | | $ | 1.50 | | $ | 6.74 | | $ | 5.39 |
Book value per common share | $ | 40.26 | | $ | 32.53 | | $ | 40.26 | | $ | 32.53 |
Tangible book value per common share (Non-GAAP)1 | $ | 37.26 | | $ | 29.51 | | $ | 37.26 | | $ | 29.51 |
| | | | | | | |
Weighted average number of common shares outstanding: | | | | | | | |
Basic | 56,938,405 | | 58,981,372 | | 57,509,029 | | 59,691,541 |
Diluted | 58,164,623 | | 59,707,871 | | 58,725,636 | | 60,566,854 |
Common shares outstanding at end of period | 56,894,565 | | 58,943,035 | | 56,894,565 | | 58,943,035 |
Common shares issued at end of period | 70,221,632 | | 69,465,446 | | 70,221,632 | | 69,465,446 |
| | | | | | | |
Performance Ratios and Other Data: | | | | | | | |
Loan originations for investment | $ | 2,451,410 | | $ | 2,216,764 | | $ | 10,597,113 | | $ | 8,452,215 |
Loan originations for sale | 52,574 | | 64,154 | | 197,305 | | 160,607 |
Loan purchases | 430 | | 650 | | 841,838 | | 1,564 |
Return on average assets | 1.81 | % | | 1.73 | % | | 2.08 | % | | 1.64 | % |
Return on average common stockholders’ equity | 18.81 | % | | 18.60 | % | | 21.64 | % | | 17.22 | % |
Interest rate spread2 | 3.63 | % | | 3.20 | % | | 3.62 | % | | 3.44 | % |
Net interest margin3 | 4.65 | % | | 4.19 | % | | 4.62 | % | | 4.35 | % |
Net interest margin3 – Banking Business Segment | 4.68 | % | | 4.26 | % | | 4.68 | % | | 4.48 | % |
Efficiency ratio4 | 48.31 | % | | 47.56 | % | | 43.59 | % | | 49.54 | % |
Efficiency ratio4 – Banking Business Segment | 41.39 | % | | 45.07 | % | | 38.42 | % | | 47.82 | % |
| | | | | | | |
Asset Quality Ratios: | | | | | | | |
Net annualized charge-offs to average loans | 0.05 | % | | 0.04 | % | | 0.05 | % | | 0.04 | % |
Non-accrual loans to total loans | 0.57 | % | | 0.52 | % | | 0.57 | % | | 0.52 | % |
Non-performing assets to total assets | 0.51 | % | | 0.47 | % | | 0.51 | % | | 0.47 | % |
Allowance for credit losses - loans to total loans held for investment | 1.34 | % | | 1.00 | % | | 1.34 | % | | 1.00 | % |
Allowance for credit losses - loans to non-accrual loans | 229.84 | % | | 191.23 | % | | 229.84 | % | | 191.23 | % |
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.
CONDENSED CONSOLIDATED BALANCE SHEETS
| | | | | | | | | | | |
| At June 30, |
(Dollars in thousands, except par value) | 2024 | | 2023 |
ASSETS | | | |
Cash and cash equivalents | $ | 1,979,979 | | | $ | 2,233,027 | |
Restricted cash | 205,797 | | | 149,059 | |
Total cash, cash equivalents and restricted cash | 2,185,776 | | | 2,382,086 | |
Trading securities | 353 | | | 758 | |
Available-for-sale securities | 141,611 | | | 232,350 | |
Stock of regulatory agencies | 21,957 | | | 21,510 | |
Loans held for sale, carried at fair value | 16,482 | | | 23,203 | |
Loans held for sale, lower of cost or fair value | — | | | 776 | |
Loans—net of allowance for credit losses of $260,542 as of June 30, 2024 and $166,680 as of June 30, 2023 | 19,231,385 | | | 16,456,728 | |
Servicing rights, carried at fair value | 28,924 | | | 25,443 | |
Securities borrowed | 67,212 | | | 134,339 | |
Customer, broker-dealer and clearing receivables | 240,028 | | | 374,074 | |
Goodwill and other intangible assets—net | 141,769 | | | 152,149 | |
Other assets | 779,837 | | | 545,053 | |
TOTAL ASSETS | $ | 22,855,334 | | | $ | 20,348,469 | |
| | | |
LIABILITIES AND STOCKHOLDERS’ EQUITY | | | |
Deposits: | | | |
Non-interest bearing | $ | 2,975,631 | | | $ | 2,898,150 | |
Interest bearing | 16,383,586 | | | 14,224,958 | |
Total deposits | 19,359,217 | | | 17,123,108 | |
Advances from the Federal Home Loan Bank | 90,000 | | | 90,000 | |
Borrowings, subordinated notes and debentures | 325,679 | | | 361,779 | |
Securities loaned | 74,177 | | | 159,832 | |
Customer, broker-dealer and clearing payables | 301,127 | | | 445,477 | |
Accounts payable and other liabilities | 414,538 | | | 251,114 | |
Total liabilities | 20,564,738 | | | 18,431,310 | |
COMMITMENTS AND CONTINGENCIES (Note 19) | | | |
STOCKHOLDERS’ EQUITY: | | | |
Common stock—$0.01 par value; 150,000,000 shares authorized, 70,221,632 shares issued and 56,894,565 shares outstanding as of June 30, 2024; 69,465,446 shares issued and 58,943,035 shares outstanding as of June 30, 2023 | 702 | | | 695 | |
Additional paid-in capital | 510,234 | | | 479,878 | |
Accumulated other comprehensive income (loss)—net of income tax | (2,466) | | | (6,610) | |
Retained earnings | 2,185,615 | | | 1,735,609 | |
Treasury stock, at cost; 13,327,067 shares as of June 30, 2024 and 10,522,411 shares as of June 30, 2023 | (403,489) | | | (292,413) | |
Total stockholders’ equity | 2,290,596 | | | 1,917,159 | |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 22,855,334 | | | $ | 20,348,469 | |
AXOS FINANCIAL, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
| | | | | | | | | | | |
| Three Months Ended |
| June 30, |
(Dollars in thousands, except earnings per common share) | 2024 | | 2023 |
INTEREST AND DIVIDEND INCOME: | | | |
Loans, including fees | $ | 409,466 | | | $ | 305,011 | |
Securities borrowed and customer receivables | 6,244 | | | 4,815 | |
Investments and other | 37,718 | | | 36,604 | |
Total interest and dividend income | 453,428 | | | 346,430 | |
INTEREST EXPENSE: | | | |
Deposits | 187,542 | | | 137,189 | |
Advances from the Federal Home Loan Bank | 1,293 | | | 523 | |
Securities loaned | 379 | | | 356 | |
Other borrowings | 4,152 | | | 4,608 | |
Total interest expense | 193,366 | | | 142,676 | |
Net interest income | 260,062 | | | 203,754 | |
Provision for credit losses | 6,000 | | | 7,000 | |
Net interest income, after provision for credit losses | 254,062 | | | 196,754 | |
NON-INTEREST INCOME: | | | |
Broker-dealer fee income | 11,053 | | | 13,768 | |
Advisory fee income | 7,649 | | | 7,503 | |
Banking and service fees | 8,436 | | | 7,838 | |
Mortgage banking and servicing rights income | 3,189 | | | 1,988 | |
Prepayment penalty fee income | 534 | | | 1,608 | |
| | | |
Total non-interest income | 30,861 | | | 32,705 | |
NON-INTEREST EXPENSE: | | | |
Salaries and related costs | 68,760 | | | 54,509 | |
Data and operational processing | 16,717 | | | 16,095 | |
Depreciation and amortization | 7,499 | | | 5,665 | |
Advertising and promotional | 12,346 | | | 8,095 | |
Professional services | 11,672 | | | 5,979 | |
Occupancy and equipment | 4,603 | | | 4,037 | |
FDIC and regulatory fees | 6,930 | | | 4,371 | |
Broker-dealer clearing charges | 3,841 | | | 3,509 | |
General and administrative expense | 8,167 | | | 10,196 | |
Total non-interest expense | 140,535 | | | 112,456 | |
INCOME BEFORE INCOME TAXES | 144,388 | | | 117,003 | |
INCOME TAXES | 39,516 | | | 29,647 | |
NET INCOME | $ | 104,872 | | | $ | 87,356 | |
COMPREHENSIVE INCOME | $ | 105,470 | | | $ | 86,319 | |
Basic earnings per common share | $ | 1.84 | | | $ | 1.48 | |
Diluted earnings per common share | $ | 1.80 | | | $ | 1.46 | |
AXOS FINANCIAL, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
| | | | | | | | | | | | | | | | | |
| Year Ended June 30, |
(Dollars in thousands, except earnings per common share) | 2024 | | 2023 | | 2022 |
INTEREST AND DIVIDEND INCOME: | | | | | |
Loans, including fees | $ | 1,499,572 | | | $ | 1,048,874 | | | $ | 626,628 | |
Securities borrowed and customer receivables | 22,407 | | | 18,657 | | | 20,512 | |
Investments and other | 133,628 | | | 89,607 | | | 12,588 | |
Total interest and dividend income | 1,655,607 | | | 1,157,138 | | | 659,728 | |
INTEREST EXPENSE: | | | | | |
Deposits | 670,570 | | | 339,481 | | | 33,620 | |
Advances from the Federal Home Loan Bank | 3,087 | | | 12,644 | | | 4,625 | |
Securities loaned | 2,214 | | | 3,673 | | | 1,124 | |
Other borrowings | 18,307 | | | 18,219 | | | 13,201 | |
Total interest expense | 694,178 | | | 374,017 | | | 52,570 | |
Net interest income | 961,429 | | | 783,121 | | | 607,158 | |
Provision for credit losses | 32,500 | | | 24,251 | | | 23,750 | |
Net interest income, after provision for credit losses | 928,929 | | | 758,870 | | | 583,408 | |
NON-INTEREST INCOME: | | | | | |
Broker-dealer fee income | 48,136 | | | 46,503 | | | 22,880 | |
Advisory fee income | 31,335 | | | 28,324 | | | 29,230 | |
Banking and service fees | 35,723 | | | 32,938 | | | 28,752 | |
Mortgage banking and servicing rights income | 10,000 | | | 7,101 | | | 19,198 | |
Prepayment penalty fee income | 5,069 | | | 5,622 | | | 13,303 | |
Gain on acquisition | 92,397 | | | — | | | — | |
Total non-interest income | 222,660 | | | 120,488 | | | 113,363 | |
NON-INTEREST EXPENSE: | | | | | |
Salaries and related costs | 250,873 | | | 204,271 | | | 167,390 | |
Data and operational processing | 69,370 | | | 60,557 | | | 50,159 | |
Depreciation and amortization | 27,086 | | | 23,387 | | | 24,596 | |
Advertising and promotional | 42,797 | | | 37,150 | | | 13,580 | |
Professional services | 36,532 | | | 29,268 | | | 22,482 | |
Occupancy and equipment | 16,704 | | | 15,647 | | | 13,745 | |
FDIC and regulatory fees | 20,546 | | | 15,534 | | | 11,823 | |
Broker-dealer clearing charges | 18,260 | | | 13,433 | | | 15,184 | |
General and administrative expense | 33,940 | | | 48,367 | | | 37,853 | |
Total non-interest expense | 516,108 | | | 447,614 | | | 356,812 | |
INCOME BEFORE INCOME TAXES | 635,481 | | | 431,744 | | | 339,959 | |
INCOME TAXES | 185,473 | | | 124,579 | | | 99,243 | |
NET INCOME | $ | 450,008 | | | $ | 307,165 | | | $ | 240,716 | |
COMPREHENSIVE INCOME | $ | 454,152 | | | $ | 303,488 | | | $ | 235,276 | |
Basic earnings per common share | $ | 7.82 | | | $ | 5.15 | | | $ | 4.04 | |
Diluted earnings per common share | $ | 7.66 | | | $ | 5.07 | | | $ | 3.97 | |
LOANS & ALLOWANCE FOR CREDIT LOSSES
The following table sets forth the composition of the loan portfolio:
| | | | | | | | | | | |
(Dollars in thousands) | June 30, 2024 | | June 30, 2023 |
Single Family - Mortgage & Warehouse | $ | 4,178,832 | | | $ | 4,173,833 | |
Multifamily and Commercial Mortgage1 | 3,861,931 | | | 3,082,225 | |
Commercial Real Estate1 | 6,088,622 | | | 6,199,818 | |
Commercial & Industrial - Non-RE | 5,241,766 | | | 2,639,650 | |
| | | |
| | | |
Auto & Consumer | 431,660 | | | 556,500 | |
Total gross loans | 19,802,811 | | | 16,652,026 | |
Allowance for credit losses - loans | (260,542) | | | (166,680) | |
Unaccreted premiums (discounts) and loan fees | (310,884) | | | (28,618) | |
Total net loans | $ | 19,231,385 | | | $ | 16,456,728 | |
1 Includes PCD loans of $284.0 million in Multifamily and Commercial Mortgage and $44.5 million in Commercial Real Estate as of June 30, 2024.
AVAILABLE-FOR-SALE SECURITIES
The amortized cost and fair value of available-for-sale securities were:
| | | | | | | | | | | | | | | | | | | | | | | |
| June 30, 2024 |
(Dollars in thousands) | Amortized Cost | | Unrealized Gains | | Unrealized Losses | | Fair Value |
Mortgage-backed securities (MBS): | | | | | | | |
Agency1 | $ | 29,834 | | | $ | 84 | | | $ | (2,659) | | | $ | 27,259 | |
Non-agency2 | 110,658 | | | 838 | | | (568) | | | 110,928 | |
Total mortgage-backed securities | 140,492 | | | 922 | | | (3,227) | | | 138,187 | |
| | | | | | | |
| | | | | | | |
Municipal | 3,788 | | | — | | | (364) | | | 3,424 | |
| | | | | | | |
| | | | | | | |
Total available-for-sale securities | $ | 144,280 | | | $ | 922 | | | $ | (3,591) | | | $ | 141,611 | |
| | | | | | | |
| | | | | | | |
| |
| June 30, 2023 |
(Dollars in thousands) | Amortized Cost | | Unrealized Gains | | Unrealized Losses | | Fair Value |
Mortgage-backed securities (MBS): | | | | | | | |
Agency1 | $ | 27,024 | | | $ | — | | | $ | (3,077) | | | $ | 23,947 | |
Non-agency2 | 210,271 | | | 711 | | | (5,977) | | | 205,005 | |
Total mortgage-backed securities | 237,295 | | | 711 | | | (9,054) | | | 228,952 | |
| | | | | | | |
| | | | | | | |
Municipal | 3,656 | | | — | | | (258) | | | 3,398 | |
| | | | | | | |
| | | | | | | |
Total available-for-sale securities | $ | 240,951 | | | $ | 711 | | | $ | (9,312) | | | $ | 232,350 | |
1 Includes securities guaranteed by Ginnie Mae, a U.S. government agency, and the government sponsored enterprises Fannie Mae and Freddie Mac.
2 Private sponsors of securities collateralized primarily by first-lien mortgage loans on commercial properties or by pools of 1-4 family residential first mortgages. Primarily super senior securities secured by prime, Alt-A or pay-option ARM mortgages.
DEPOSITS
The following table sets forth the composition of the deposit portfolio:
| | | | | | | | | | | | | | | | | | | | | | | |
| June 30, 2024 | | June 30, 2023 |
(Dollars in thousands) | Amount | | Rate1 | | Amount | | Rate1 |
Non-interest bearing | $ | 2,975,631 | | | — | % | | $ | 2,898,150 | | | — | % |
Interest-bearing: | | | | | | | |
Demand | 2,485,325 | | | 2.42 | % | | 3,334,615 | | | 2.43 | % |
Savings | 12,960,165 | | | 4.58 | % | | 9,575,781 | | | 4.20 | % |
Total interest-bearing demand and savings | 15,445,490 | | | 4.23 | % | | 12,910,396 | | | 3.74 | % |
Time deposits: | | | | | | | |
$250 and under2 | 567,192 | | | 4.34 | % | | 932,436 | | | 3.72 | % |
Greater than $250 | 370,904 | | | 4.76 | % | | 382,126 | | | 4.36 | % |
Total time deposits | 938,096 | | | 4.51 | % | | 1,314,562 | | | 3.91 | % |
Total interest bearing2 | 16,383,586 | | | 4.24 | % | | 14,224,958 | | | 3.76 | % |
Total deposits | $ | 19,359,217 | | | 3.59 | % | | $ | 17,123,108 | | | 3.12 | % |
1 Based on weighted-average stated interest rates at end of period.
2 The total interest-bearing includes brokered deposits of $1,611.6 million and $2,028.5 million as of June 30, 2024 and June 30, 2023, respectively, of which $400.0 million and $690.9 million, respectively, are time deposits classified as $250,000 and under.
The number of deposit accounts at the end of each of the last three fiscal years is set forth below:
| | | | | | | | | | | | | | | | | | | | | |
| At June 30, |
| 2024 | | 2023 | | 2022 | | | | |
Non-interest bearing | 55,772 | | | 45,640 | | | 42,372 | | | | | |
Interest-bearing checking and savings accounts | 495,070 | | | 427,299 | | | 344,593 | | | | | |
Time deposits | 4,696 | | | 6,340 | | | 8,734 | | | | | |
Total number of deposit accounts | 555,538 | | | 479,279 | | | 395,699 | | | | | |
AVERAGE BALANCES, NET INTEREST INCOME, YIELDS EARNED AND RATES PAID
Average Balances, Net Interest Income, Yields Earned and Rates Paid
The following table presents information regarding (i) average balances; (ii) the total amount of interest income from interest-earning assets and the weighted average yields on such assets; (iii) the total amount of interest expense on interest-bearing liabilities and the weighted average rates paid on such liabilities; (iv) net interest income; (v) interest rate spread; and (vi) net interest margin:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| | | |
| For the Three Months Ended, | | |
| June 30, 2024 | | June 30, 2023 | | |
(Dollars in thousands) | Average Balance1 | | Interest Income/ Expense | | Average Yields Earned/Rates Paid2 | | Average Balance1 | | Interest Income/ Expense | | Average Yields Earned/Rates Paid2 | | |
Assets: | | | | | | | | | | | | | |
Loans3, 4 | $ | 19,177,807 | | | $ | 409,466 | | | 8.54 | % | | $ | 16,242,438 | | | $ | 305,011 | | | 7.51 | % | | |
Non-purchased loans | 18,196,696 | | | 368,766 | | | 8.11 | % | | 16,242,438 | | | 305,011 | | | 7.51 | % | | |
Purchased loans5 | 981,111 | | | 40,700 | | | 16.59 | % | | — | | | — | | | — | % | | |
Interest-earning deposits in other financial institutions | 2,656,167 | | | 35,122 | | | 5.29 | % | | 2,601,097 | | | 32,492 | | | 5.00 | % | | |
Mortgage-backed and other securities4 | 183,297 | | | 2,202 | | | 4.81 | % | | 254,133 | | | 3,815 | | | 6.00 | % | | |
Securities borrowed and margin lending6 | 329,573 | | | 6,244 | | | 7.58 | % | | 355,687 | | | 4,815 | | | 5.41 | % | | |
Stock of the regulatory agencies | 17,250 | | | 394 | | | 9.14 | % | | 17,250 | | | 297 | | | 6.89 | % | | |
Total interest-earning assets | 22,364,094 | | | 453,428 | | | 8.11 | % | | 19,470,605 | | | 346,430 | | | 7.12 | % | | |
Non-interest-earning assets | 758,002 | | | | | | | 715,554 | | | | | | | |
Total assets | $ | 23,122,096 | | | | | | | $ | 20,186,159 | | | | | | | |
Liabilities and Stockholders’ Equity: | | | | | | | | | | | | | |
Interest-bearing demand and savings | $ | 15,697,646 | | | $ | 176,930 | | | 4.51 | % | | $ | 12,507,836 | | | $ | 123,146 | | | 3.94 | % | | |
Time deposits | 971,756 | | | 10,612 | | | 4.37 | % | | 1,418,347 | | | 14,043 | | | 3.96 | % | | |
Securities loaned | 121,197 | | | 379 | | | 1.25 | % | | 184,608 | | | 356 | | | 0.77 | % | | |
Advances from the FHLB | 144,947 | | | 1,293 | | | 3.57 | % | | 90,000 | | | 523 | | | 2.32 | % | | |
Borrowings, subordinated notes and debentures | 327,602 | | | 4,152 | | | 5.07 | % | | 357,645 | | | 4,608 | | | 5.15 | % | | |
Total interest-bearing liabilities | 17,263,148 | | | 193,366 | | | 4.48 | % | | 14,558,436 | | | 142,676 | | | 3.92 | % | | |
Non-interest-bearing demand deposits | 2,870,716 | | | | | | | 3,117,796 | | | | | | | |
Other non-interest-bearing liabilities | 757,946 | | | | | | | 631,415 | | | | | | | |
Stockholders’ equity | 2,230,286 | | | | | | | 1,878,512 | | | | | | | |
Total liabilities and stockholders’ equity | $ | 23,122,096 | | | | | | | $ | 20,186,159 | | | | | | | |
Net interest income | | | $ | 260,062 | | | | | | | $ | 203,754 | | | | | |
Interest rate spread7 | | | | | 3.63 | % | | | | | | 3.20 | % | | |
Net interest margin8 | | | | | 4.65 | % | | | | | | 4.19 | % | | |
1Average balances are obtained from daily data.
2Annualized.
3Loans include loans held for sale, loan premiums and unearned fees.
4Interest income includes reductions for amortization of loan and available-for-sale securities premiums and earnings from accretion of discounts and loan fees.
5Purchased loans include loans, loan discounts and unearned fees related to the FDIC Loan Purchase.
6Margin lending is the significant component of the asset titled customer, broker-dealer and clearing receivables on the unaudited Condensed Consolidated Balance Sheets.
7Interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average rate paid on interest-bearing liabilities.
8Net interest margin represents annualized net interest income as a percentage of average interest-earning assets.
AVERAGE BALANCES, NET INTEREST INCOME, YIELDS EARNED AND RATES PAID
The following table presents information regarding (i) average balances; (ii) the total amount of interest income from interest-earning assets and the weighted-average yields on such assets; (iii) the total amount of interest expense on interest-bearing liabilities and the weighted-average rates paid on such liabilities; (iv) net interest income; (v) interest rate spread; and (vi) net interest margin:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| For the Fiscal Years Ended June 30, |
| 2024 | | 2023 | | 2022 |
(Dollars in thousands) | Average Balance1 | | Interest Income / Expense | | Average Yields Earned / Rates Paid | | Average Balance1 | | Interest Income / Expense | | Average Yields Earned / Rates Paid | | Average Balance1 | | Interest Income / Expense | | Average Yields Earned / Rates Paid |
Assets: | | | | | | | | | | | | | | | | | |
Loans2,3 | $ | 18,010,709 | | | $ | 1,499,572 | | | 8.33 | % | | $ | 15,571,290 | | | $ | 1,048,874 | | | 6.74 | % | | $ | 12,576,873 | | | $ | 626,628 | | | 4.98 | % |
Non-purchased loans | 17,458,451 | | | 1,405,202 | | | 8.05 | % | | 15,571,290 | | | 1,048,874 | | | 6.74 | % | | 12,576,873 | | | 626,628 | | | 4.98 | % |
Purchased loans4 | 552,258 | | | 94,370 | | | 17.09 | % | | — | | | — | | | — | % | | — | | | — | | | — | % |
Interest-earning deposits in other financial institutions | 2,242,226 | | | 120,861 | | | 5.39 | % | | 1,761,902 | | | 73,467 | | | 4.17 | % | | 1,233,983 | | | 4,501 | | | 0.36 | % |
Mortgage-backed and other securities | 218,565 | | | 11,234 | | | 5.14 | % | | 259,473 | | | 14,669 | | | 5.65 | % | | 176,951 | | | 6,952 | | | 3.93 | % |
Securities borrowed and margin lending4 | 329,154 | | | 22,407 | | | 6.81 | % | | 388,386 | | | 18,657 | | | 4.80 | % | | 687,363 | | | 20,512 | | | 2.98 | % |
Stock of the regulatory agencies | 17,250 | | | 1,533 | | | 8.89 | % | | 20,936 | | | 1,471 | | | 7.03 | % | | 21,844 | | | 1,135 | | | 5.20 | % |
Total interest-earning assets | 20,817,904 | | | $ | 1,655,607 | | | 7.95 | % | | 18,001,987 | | | $ | 1,157,138 | | | 6.43 | % | | 14,697,014 | | | $ | 659,728 | | | 4.49 | % |
Non-interest-earning assets | 811,032 | | | | | | | 735,783 | | | | | | | 658,494 | | | | | |
Total assets | $ | 21,628,936 | | | | | | | $ | 18,737,770 | | | | | | | $ | 15,355,508 | | | | | |
Liabilities and Stockholders’ Equity: | | | | | | | | | | | | | | | | | |
Interest-bearing demand and savings | $ | 14,352,569 | | | $ | 626,678 | | | 4.37 | % | | $ | 10,211,737 | | | $ | 305,655 | | | 2.99 | % | | $ | 6,773,321 | | | $ | 20,053 | | | 0.30 | % |
Time deposits | 1,062,644 | | | 43,892 | | | 4.13 | % | | 1,225,537 | | | 33,826 | | | 2.76 | % | | 1,226,774 | | | 13,567 | | | 1.11 | % |
Securities loaned | 153,552 | | | 2,214 | | | 1.44 | % | | 303,932 | | | 3,673 | | | 1.21 | % | | 469,051 | | | 1,124 | | | 0.24 | % |
Advances from the FHLB | 107,454 | | | 3,087 | | | 2.87 | % | | 423,612 | | | 12,644 | | | 2.98 | % | | 349,796 | | | 4,625 | | | 1.32 | % |
Borrowings, subordinated notes and debentures | 358,452 | | | 18,307 | | | 5.11 | % | | 362,733 | | | 18,219 | | | 5.02 | % | | 302,454 | | | 13,201 | | | 4.36 | % |
Total interest-bearing liabilities | 16,034,671 | | | $ | 694,178 | | | 4.33 | % | | 12,527,551 | | | $ | 374,017 | | | 2.99 | % | | 9,121,396 | | | $ | 52,570 | | | 0.58 | % |
Non-interest-bearing demand deposits | 2,769,272 | | | | | | | 3,730,524 | | | | | | | 3,927,195 | | | | | |
Other non-interest-bearing liabilities | 745,472 | | | | | | | 695,617 | | | | | | | 764,542 | | | | | |
Stockholders’ equity | 2,079,521 | | | | | | | 1,784,078 | | | | | | | 1,542,375 | | | | | |
Total liabilities and stockholders’ equity | $ | 21,628,936 | | | | | | | $ | 18,737,770 | | | | | | | $ | 15,355,508 | | | | | |
Net interest income | | | $ | 961,429 | | | | | | | $ | 783,121 | | | | | | | $ | 607,158 | | | |
Interest rate spread6 | | | | | 3.62 | % | | | | | | 3.44 | % | | | | | | 3.91 | % |
Net interest margin7 | | | | | 4.62 | % | | | | | | 4.35 | % | | | | | | 4.13 | % |
1.Average balances are obtained from daily data.
2.Loans include loans held for sale, loan premiums and unearned fees.
3.Interest income includes reductions for amortization of loan and available-for-sale securities premiums and earnings from accretion of discounts and loan fees.
4.Purchased loans include loans, loan discounts and unearned fees related to the FDIC Loan Purchase.
5.Margin lending is the significant component of the asset titled customer, broker-dealer and clearing receivables on the audited consolidated balance sheets.
6.Interest rate spread represents the difference between the weighted-average yield on interest-earning assets and the weighted-average rate paid on interest-bearing liabilities.
7.Net interest margin represents annualized net interest income as a percentage of average interest-earning assets.1 Average balances are obtained from daily data.
AVERAGE BALANCES, NET INTEREST INCOME, YIELDS EARNED AND RATES PAID
Banking Business Segment
The following tables presents our Banking Business Segment’s information regarding (i) average balances; (ii) the total amount of interest income from interest-earning assets and the weighted average yields on such assets; (iii) the total amount of interest expense on interest-bearing liabilities and the weighted average rates paid on such liabilities; (iv) net interest income; (v) interest rate spread; and (vi) net interest margin:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| For the Three Months Ended |
| June 30, |
| 2024 | | 2023 |
(Dollars in thousands) | Average Balance1 | | Interest Income/ Expense | | Average Yields Earned/Rates Paid2 | | Average Balance1 | | Interest Income/ Expense | | Average Yields Earned/Rates Paid2 |
Assets: | | | | | | | | | | | |
Loans3, 4 | $ | 19,177,807 | | | $ | 409,466 | | | 8.54 | % | | $ | 16,220,701 | | | $ | 304,676 | | | 7.51 | % |
Non-purchased loans | 18,196,696 | | | 368,766 | | | 8.11 | % | | 16,220,701 | | | 304,676 | | | 7.51 | % |
Purchased loans5 | 981,111 | | | 40,700 | | | 16.59 | % | | — | | | — | | | — | % |
Interest-earning deposits in other financial institutions | 2,527,083 | | | 33,345 | | | 5.28 | % | | 2,438,379 | | | 30,693 | | | 5.03 | % |
Mortgage-backed and other securities4 | 182,858 | | | 2,202 | | | 4.81 | % | | 260,538 | | | 3,850 | | | 5.91 | % |
Stock of the regulatory agencies | 17,250 | | | 394 | | | 9.14 | % | | 17,250 | | | 295 | | | 6.84 | % |
Total interest-earning assets | 21,904,998 | | | 445,407 | | | 8.13 | % | | 18,936,868 | | | 339,514 | | | 7.17 | % |
Non-interest-earning assets | 458,470 | | | | | | | 371,710 | | | | | |
Total assets | $ | 22,363,468 | | | | | | | $ | 19,308,578 | | | | | |
Liabilities and Stockholders’ Equity: | | | | | | | | | | | |
Interest-bearing demand and savings | $ | 15,734,579 | | | $ | 176,959 | | | 4.50 | % | | $ | 12,570,893 | | | $ | 123,178 | | | 3.92 | % |
Time deposits | 971,756 | | | 10,612 | | | 4.37 | % | | 1,418,347 | | | 14,043 | | | 3.96 | % |
Advances from the FHLB | 144,955 | | | 1,293 | | | 3.57 | % | | 90,000 | | | 523 | | | 2.32 | % |
Borrowings, subordinated notes and debentures | — | | | — | | | — | % | | 34 | | | — | | | — | % |
Total interest-bearing liabilities | 16,851,290 | | | 188,864 | | | 4.48 | % | | 14,079,274 | | | 137,744 | | | 3.91 | % |
Non-interest-bearing demand deposits | 2,949,090 | | | | | | | 3,177,475 | | | | | |
Other non-interest-bearing liabilities | 260,658 | | | | | | | 192,007 | | | | | |
Stockholders’ equity | 2,302,430 | | | | | | | 1,859,822 | | | | | |
Total liabilities and stockholders’ equity | $ | 22,363,468 | | | | | | | $ | 19,308,578 | | | | | |
Net interest income | | | $ | 256,543 | | | | | | | $ | 201,770 | | | |
Interest rate spread6 | | | | | 3.65 | % | | | | | | 3.26 | % |
Net interest margin7 | | | | | 4.68 | % | | | | | | 4.26 | % |
1Average balances are obtained from daily data.
2Annualized.
3Loans include loans held for sale, loan premiums and unearned fees.
4Interest income includes reductions for amortization of loan and available-for-sale securities premiums and earnings from accretion of discounts and loan fees.
5Purchased loans include loans, loan discounts and unearned fees related to the FDIC Loan Purchase.
6Interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average rate paid on interest-bearing liabilities.
7Net interest margin represents annualized net interest income as a percentage of average interest-earning assets.
Securities Business Segment
| | | | | | | | | | | |
| June 30, |
(Dollars in thousands) | 2024 | | 2023 |
| | | |
FDIC insured program balances at banks | $ | 1,289,105 | | | $ | 1,627,053 | |
Margin balances | $ | 219,848 | | | $ | 205,880 | |
Cash reserves for the benefit of customers | $ | 113,676 | | | $ | 149,059 | |
| | | |
| | | |
| | | |
| | | |
| | | |
Securities lending: | | | |
Interest-earning assets – stock borrowed | $ | 67,212 | | | $ | 134,339 | |
Interest-bearing liabilities – stock loaned | $ | 74,177 | | | $ | 159,832 | |
Axos Q4 Fiscal 2024 Earnings Supplement NYSE: AXJuly 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)Q3 FY24Q4 FY24 $ (42)$ 3,964$ 3,922 98159257 (122)2,6632,541 (17)1,3381,321 (31)5,2205,189 207693900 82,3202,328 1801,6171,797 2258911,116 (13)399386 (7)5144 —22 $ 486$ 19,317$ 19,803 Lender Finance RE CRE Specialty Other Auto & Consumer
3 FDIC Loan Purchase Metrics as of June 30, 2024 Remaining Term (Months) Weighted- Average LTV Weighted- Average Yield Before Accretion of Discount Unpaid Principal Balance (mm) Loan Type 4452.1 %7.5 %$ 239Office 1538.54.2122Data Center 1728.68.644Land 1251.06.850Other 8970.36.938Industrial 3357.47.434Mixed Use 3349.17.727Retail 3548.5 %6.8 %554Total CRE 13761.16.7349Residential 9173.67.2328 Rent-stabilized / Rent- controlled Multifamily1 11567.2 %6.9 %677Total Multifamily 7958.8 %6.9 %$ 1,231Total Note 1: 1,456 units out of 1,457 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 June 30, 2024 Non-Accrual Loans (mm)Weighted Avg. LTVBalance (mm)Loan Type $ 1139 %$ 1,946Multifamily —401,021Hotel 1543710SFR —48536Industrial —32451Other —35302Office —46223Retail $ 2640 %$ 5,189Total Note 1: Includes Commercial Real Estate Specialty loan portfolio only. LTV Distribution
5 Fixed/Hybrid Years to Maturity / Repricing*Mix of Loan Repricing Types *Excludes SF Warehouse Lending and Equipment Leasing. The years to repricing assumes no loan prepayments and reflects only contractual terms. Of the fixed and hybrid rate loan balances in our portfolio at June 30, 2024, 62% will reprice within 3 years and 91% will reprice within 5 years Interest Rate Components of Loan & Lease Portfolio As of June 30, 2024 100%99%91%62%38%22%12% Years
6 Diversified Deposit Gathering Approximately 90% of deposits are FDIC-insured or collateralized Deposit balances as of June 30, 2024 Note 1: Excludes approximately $550 million of off-balance sheet deposits Note 2: Excludes approximately $700 million of client deposits held at other banks › 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 $1.1B Consumer Direct $11.6B Specialty Deposits $1.5B2 Distribution Partners $0.5B Axos Securities $0.8B1 Small Business Banking $0.4B Commercial & Treasury Management $3.5B Diversified Deposit Gathering Business Lines
7 Change in Allowance for Credit Losses (ACL) & Unfunded Loan Commitments Reserve (UCL) ($ in millions) ACL + UCL ACL + UCL 5.5
8 Allowance for Credit Losses (ACL) by Loan Category as of June 30, 2024 $ Millions ACL %ACLLoan Balance 0.4 %$ 17$ 4,179 1.8 %713,862 1.4 %886,089 1.5 %765,241 2.1 %9432 1.3 %$ 261$ 19,803 Single Family Mortgage & Warehouse Multifamily & Commercial Mortgage Commercial Real Estate Commercial & Industrial Non-RE Auto & Consumer Loans
9 Credit Quality ($ millions) %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/SMarch 31, 2024 1.24 %$ 51$ 4,123Single Family-Mortgage & Warehouse 0.97394,001Multifamily and Commercial Mortgage 0.44265,913Commercial Real Estate 0.0844,828Commercial & Industrial - Non-RE 0.442452Auto & Consumer 0.63 %$ 122$ 19,317Total %Non-Accrual LoansLoans O/SJune 30, 2023 0.74 %$ 31$ 4,174Single Family-Mortgage & Warehouse 1.14353,082Multifamily and Commercial Mortgage 0.24156,200Commercial Real Estate 0.1132,640Commercial & Industrial - Non-RE 0.543556Auto & Consumer 0.52 %$ 87$ 16,652Total
10 June 30, 2023 September 30, 2023 December 31, 2023 March 31, 2024 June 30, 2024 Selected Balance Sheet Data: $ 20,348,469$ 20,825,206$ 21,623,764$ 22,642,133$ 22,855,334Total assets 16,456,72816,955,04118,264,35418,733,45519,231,385Loans—net of allowance for credit losses 23,2038,01413,46816,23916,482Loans held for sale, carried at fair value 776————Loans held for sale, lower of cost or fair value 166,680170,870251,749257,522260,542Allowance for credit losses 758640329592353Securities—trading 232,350236,726239,812207,582141,611Securities—available-for-sale 134,33996,424145,176105,85367,212Securities borrowed 374,074285,423265,857292,630240,028Customer, broker-dealer and clearing receivables 17,123,10817,565,74118,203,91219,103,53219,359,217Total deposits 90,00090,00090,00090,00090,000Advances from the FHLB 361,779447,733341,086330,389325,679Borrowings, subordinated notes and debentures 159,832116,446155,492119,80074,177Securities loaned 445,477341,915368,885387,176301,127Customer, broker-dealer and clearing payables 1,917,1591,976,2082,078,2242,196,2932,290,596Total stockholders’ equity Capital Ratios: 9.42 %9.49 %9.61 %9.70 %10.02 %Equity to assets at end of period Axos Financial, Inc.: 8.96 %9.27 %9.39 %9.33 %9.43 %Tier 1 leverage (to adjusted average assets) 10.94 %11.11 %10.97 %11.47 %12.01 %Common equity tier 1 capital (to risk-weighted assets) 10.94 %11.11 %10.97 %11.47 %12.01 %Tier 1 capital (to risk-weighted assets) 13.82 %14.06 %13.79 %14.26 %14.84 %Total capital (to risk-weighted assets) Axos Bank: 9.68 %9.99 %10.22 %9.86 %9.74 %Tier 1 leverage (to adjusted average assets) 11.63 %11.69 %12.26 %12.47 %12.74 %Common equity tier 1 capital (to risk-weighted assets) 11.63 %11.69 %12.26 %12.47 %12.74 %Tier 1 capital (to risk-weighted assets) 12.50 %12.65 %13.25 %13.49 %13.81 %Total capital (to risk-weighted assets) Axos Clearing LLC: $ 35,221$ 101,391$ 103,454$ 102,963$ 101,462Net capital $ 29,905$ 96,211$ 98,397$ 97,646$ 96,654Excess capital 13.25 %39.14 %40.92 %38.73 %42.21 %Net capital as a percentage of aggregate debit items $ 21,930$ 88,440$ 90,812$ 89,671$ 89,442Net 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 June 30, 2023 September 30, 2023 December 31, 2023 March 31, 2024 June 30, 2024 Selected Income Statement Data: $ 346,430$ 363,952$ 394,663$ 443,564$ 453,428Interest and dividend income 142,676152,797166,057181,958193,366Interest expense 203,754211,155228,606261,606260,062Net interest income 7,0007,00013,5006,0006,000Provision for credit losses 196,754204,155215,106255,606254,062Net interest income, after provision for credit losses 32,70534,507124,12933,16330,861Non-interest income 112,456120,506121,839133,228140,535Non-interest expense 117,003118,156217,396155,541144,388Income before income taxes 29,64735,51165,62544,82139,516Income taxes $ 87,356$ 82,645$ 151,771$ 110,720$ 104,872Net income Per Common Share Data: Net income: $ 1.48$ 1.40$ 2.65$ 1.94$ 1.84Basic $ 1.46$ 1.38$ 2.62$ 1.91$ 1.80Diluted $ 1.50$ 1.41$ 1.60$ 1.94$ 1.83Adjusted earnings per common share (Non-GAAP)1 $ 32.53$ 33.78$ 36.53$ 38.48$ 40.26Book value per common share $ 29.51$ 30.72$ 33.45$ 35.46$ 37.26Tangible book value per common share (Non-GAAP)1 Weighted average number of common shares outstanding: 58,981,37258,949,03857,216,62156,932,05056,938,405Basic 59,707,87159,808,32257,932,83458,037,69858,164,623Diluted 58,943,03558,503,97656,898,37757,079,42956,894,565Common shares outstanding at end of period 69,465,44669,826,26369,828,70970,033,52370,221,632Common shares issued at end of period Performance Ratios and Other Data: $ 2,216,764$ 2,605,332$ 2,739,261$ 2,801,110$ 2,451,410Loan originations for investment 64,15452,85844,32547,82152,574Loan originations for sale 65051,892789,516—430Loan purchases 1.73 %1.64 %2.90 %1.98 %1.81 %Return on average assets 18.60 %16.91 %30.39 %20.71 %18.81 %Return on average common stockholders’ equity 3.20 %3.37 %3.58 %3.88 %3.63 %Interest rate spread2 4.19 %4.36 %4.55 %4.87 %4.65 %Net interest margin3 4.26 %4.46 %4.62 %4.92 %4.68 %Net interest margin3 – Banking Business Segment 47.56 %49.05 %34.54 %45.20 %48.31 %Efficiency ratio4 45.07 %45.44 %30.96 %38.82 %41.39 %Efficiency ratio4 – Banking Business Segment Asset Quality Ratios: 0.04 %0.04 %0.04 %0.07 %0.05 %Net annualized charge-offs to average loans 0.52 %0.62 %0.65 %0.63 %0.57 %Non-accrual loans to total loans 0.47 %0.56 %0.60 %0.55 %0.51 %Non-performing assets to total assets 1.00 %1.00 %1.33 %1.36 %1.34 %Allowance for credit losses - loans to total loans held for investment 191.23 %159.80 %205.50 %210.95 %229.84 %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)
June 30, 2023 September 30, 2023 December 31, 2023 March 31, 2024 June 30, 2024(Dollars in thousands, except per share amounts) $ 87,356$ 82,645$ 151,771$ 110,720$ 104,872Net income (92,397)——FDIC Loan Purchase - Gain on purchase 4,648——FDIC Loan Purchase - Provision for credit losses 2,7792,7902,7802,7192,554Acquisition-related costs —————Other costs (704)(839)25,650(784)(699)Income taxes $ 89,431$ 84,596$ 92,452$ 112,655$ 106,727Adjusted earnings (non-GAAP) 59,707,87159,808,32257,932,83458,037,69858,164,623Average dilutive common shares outstanding $ 1.46$ 1.38$ 2.62$ 1.91$ 1.80Diluted EPS (1.59)——FDIC Loan Purchase - Gain on Purchase 0.08——FDIC Loan Purchase - Provision for credit losses 0.050.050.050.050.04Acquisition-related costs —————Other costs (0.01)(0.02)0.44(0.02)(0.01)Income taxes $ 1.50$ 1.41$ 1.60$ 1.94$ 1.83Adjusted 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: June 30, 2023 September 30, 2023 December 31, 2023 March 31, 2024 June 30, 2024(Dollars in thousands, except per share amounts) $ 1,917,159$ 1,976,208$ 2,078,224$ 2,196,293$ 2,290,596Common stockholders’ equity 25,44329,33828,04328,13028,924Less: servicing rights, carried at fair value 152,149149,572146,793144,324141,769Less: goodwill and intangible assets $ 1,739,567$ 1,797,298$ 1,903,388$ 2,023,839$ 2,119,903Tangible common stockholders’ equity (Non-GAAP) 58,943,03558,503,97656,898,37757,079,42956,894,565Common shares outstanding at end of period $ 32.53$ 33.78$ 36.53$ 38.48$ 40.26Book value per common share $ 0.44$ 0.50$ 0.49$ 0.49$ 0.51Less: servicing rights, carried at fair value per common share $ 2.58$ 2.56$ 2.59$ 2.53$ 2.49Less: goodwill and other intangible assets per common share $ 29.51$ 30.72$ 33.45$ 35.46$ 37.26Tangible 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
v3.24.2
Cover Page
|
Jul. 30, 2024 |
Cover [Abstract] |
|
Document Type |
8-K
|
Document Period End Date |
Jul. 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
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Trading Symbol |
AX
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Security Exchange Name |
NYSE
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