This story was originally published on Banking Dive. To receive daily news and insights, subscribe to our free daily Banking Dive newsletter. Digital native Axos Bank will acquire Cincinnati-based equipment leasing company Verdant Commercial Capital for $43.5 million, the bank announced Monday. Verdant, which lends to the industrial and manufacturing sectors, has roughly $1.1 billion in loans and leases on its balance sheet. It originates equipment finance leases, conditional sale leases, fair market value ...

Core Viewpoint - Axos Financial, Inc. has announced a public offering of $200 million in subordinated notes with a fixed-to-floating interest rate structure, indicating a strategic move to raise capital for its operations [1] Group 1: Company Overview - Axos Financial, Inc. is the holding company for Axos Bank, Axos Clearing LLC, and Axos Invest, Inc. [1] - The company is publicly traded on the NYSE under the ticker symbol AX [1] Group 2: Financial Details - The public offering consists of $200 million in aggregate principal amount of 7.00% Fixed-to-Floating Rate Subordinated Notes due in 2035 [1] - The Notes will have an interest rate of 7.00% per year, with interest payments made semi-annually on April 1 and October 1, starting from April 1, 2024 [1]

Core Viewpoint - Axos Financial (AX) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook based on rising earnings estimates, which are crucial for stock price movements [1][2][4]. Earnings Estimates and Stock Price Correlation - The Zacks rating system highlights the strong correlation between changes in earnings estimates and stock price movements, driven by institutional investors who adjust their valuations based on these estimates [3][5]. - An increase in earnings estimates typically leads to higher fair value for a stock, prompting institutional buying or selling, which influences stock prices [3]. Axos Financial's Earnings Outlook - For the fiscal year ending June 2026, Axos Financial is expected to earn $7.85 per share, consistent with the previous year's figure, while the Zacks Consensus Estimate has increased by 2.4% over the past three months [7]. - The upgrade to Zacks Rank 2 places Axos Financial in the top 20% of Zacks-covered stocks, suggesting potential for market-beating returns in the near term [9]. Zacks Rank System Overview - The Zacks Rank system categorizes stocks into five groups based on earnings estimates, with a proven track record of Zacks Rank 1 stocks generating an average annual return of +25% since 1988 [6][8]. - The system maintains a balanced distribution of ratings, ensuring that only the top 5% of stocks receive a "Strong Buy" rating, while the next 15% are rated as "Buy" [8].

Group 1 - Main Street Capital (MAIN) is a notable stock in the Finance sector, currently outperforming its peers with a year-to-date gain of approximately 13.2% compared to the sector average of 12.9% [4] - The Zacks Rank system indicates that MAIN has a Zacks Rank of 2 (Buy), reflecting a positive analyst sentiment and an improving earnings outlook, with a consensus estimate for full-year earnings increasing by 3.3% over the past quarter [3] - MAIN belongs to the Financial - SBIC & Commercial Industry, which includes 37 stocks that have collectively lost about 4.7% year-to-date, further highlighting MAIN's strong performance relative to its industry [5] Group 2 - Axos Financial (AX) is another Finance stock that has outperformed the sector, with a year-to-date increase of 30.6% [4] - The consensus EPS estimate for Axos Financial has risen by 2.4% over the past three months, and it also holds a Zacks Rank of 2 (Buy) [5] - Axos Financial is part of the Financial - Miscellaneous Services industry, which consists of 93 stocks and has gained 5.4% year-to-date, indicating a solid performance within its own industry [6]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 __________________________________________________________________________________________ FORM 10-K ☒ ANNUAL REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended June 30, 2025 ☐ TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission file number: 001-37709 __________________________________________________________________________________________ AXOS FIN ...

Group 1 - Axos Financial is undergoing significant management and operational changes, including the acquisition of two firms [1] - The focus of Crude Value Insights is on cash flow and companies that generate it, highlighting value and growth prospects in the oil and natural gas sector [1] - Subscribers to Crude Value Insights benefit from a 50+ stock model account, in-depth cash flow analyses of exploration and production firms, and live chat discussions about the sector [2]

Core Viewpoint - Axos Financial reported strong fourth-quarter results for the period ending June 30, 2025, with adjusted earnings per share of $1.94, exceeding analyst expectations, driven by loan and deposit growth, efficient cost control, and technology investments, despite a significant increase in provisions for credit losses [1][2][5]. Financial Performance - Adjusted EPS (Non-GAAP) was $1.94, beating estimates of $1.78, and up 6.0% from $1.83 in Q4 2024 [2]. - Revenue (GAAP) reached $321.4 million, surpassing expectations of $312.3 million, and reflecting a 10.5% increase from $290.9 million in Q4 2024 [2]. - Net interest income grew 7.7% year-over-year to $280.2 million, while non-interest income surged 33.8% to $41.3 million [2][5][6]. - Net income for the quarter was $110.7 million, a 5.5% increase from $104.9 million in the same quarter last year [2]. Business Overview and Strategy - Axos Financial operates as a tech-driven bank, focusing on consumer and commercial banking, lending, wealth management, and securities services, with fully digital operations [3][4]. - The company aims to leverage proprietary digital technology for profit growth while offering a diversified suite of banking and investment products [4]. Growth Metrics - Total loans increased by $856 million to $21.0 billion, with a year-over-year growth rate of 9.4% [5]. - Deposit balances rose to $20.8 billion, reflecting a 7.6% increase from the previous year [5]. - The net interest margin improved to 4.84%, up from 4.65% in Q4 FY2024 [5]. Credit Quality and Provisions - Provision for credit losses increased to $15.0 million from $6.0 million in Q4 FY2024, attributed to stronger loan growth and updated economic forecasts [8]. - Actual net charge-offs remained low at 0.16% of average loans, while non-performing assets decreased to 0.71% of total assets [8][9]. Technology Investments - The company increased investments in artificial intelligence and process automation, with operating expenses growing 7.2% year-over-year [10]. - A proprietary professional workstation for clearing clients was introduced, developed using low-code software for efficiency [7][10]. Future Outlook - Management expects net interest margin to remain at the higher end of the 4.25% to 4.35% target range and projects annual loan growth in the high single-digit to low teens percent range [12]. - A reduction in the tax rate by 3 percentage points for FY2026 is anticipated due to changes in California state tax methodology [13].

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分组1 - Axos Financial reported quarterly earnings of $1.94 per share, exceeding the Zacks Consensus Estimate of $1.82 per share, and showing an increase from $1.83 per share a year ago, resulting in an earnings surprise of +6.59% [1] - The company achieved revenues of $321.45 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 2.52%, and up from $290.92 million year-over-year [2] - Axos Financial has consistently outperformed consensus EPS and revenue estimates over the last four quarters [2] 分组2 - The stock has gained approximately 22.6% since the beginning of the year, significantly outperforming the S&P 500's gain of 8.3% [3] - The current consensus EPS estimate for the upcoming quarter is $1.92, with expected revenues of $320.83 million, and for the current fiscal year, the EPS estimate is $7.92 on revenues of $1.3 billion [7] - The Zacks Industry Rank for Financial - Miscellaneous Services is in the top 36% of over 250 Zacks industries, indicating a favorable outlook for the sector [8]

Financial Data and Key Metrics Changes - The company reported net loan growth of $856 million linked quarter, with a net interest margin expansion of six basis points and an 18% year-over-year increase in book value per share [4][5] - Net interest income for the quarter was $280 million, up 7.7% from $260 million in the prior year period, with a net interest margin of 4.84% for the quarter, up from 4.78% in the previous quarter [5][10] - Net income was approximately $110.7 million for the quarter, compared to $105.2 million in the prior quarter, with diluted EPS of $1.92 compared to $1.81 in the previous quarter [7][8] Business Line Data and Key Metrics Changes - Total originations for investment, excluding single-family warehouse lending, increased by 5% linked quarter, resulting in net loan growth of approximately $856 million, representing a 4.2% linked quarter increase or 16% annualized [9] - Average loan yields for the quarter were 8% flat, with non-purchased loans at 7.66% and purchased loans at 14.9% [9] - Total non-accrual loans declined by $15 million linked quarter, improving the non-accrual loans to total loans ratio by 89 basis points [6][13] Market Data and Key Metrics Changes - Ending deposit balances were $20.8 billion, up 3.4% linked quarter and 7.6% year over year, with demand money market and savings accounts representing 95% of total deposits [10][11] - Total assets under custody increased from $37.1 billion to $39.4 billion, with net new assets for the custody business increasing by $215 million [16] Company Strategy and Development Direction - The company is focused on executing strategic and operational initiatives, including investments in technology and operations to scale businesses and roll out new products faster [20][21] - The company is evaluating M&A opportunities to augment growth from existing businesses and team lift-outs, with a focus on specialty lending and non-banking businesses [18][19] Management Comments on Operating Environment and Future Outlook - Management expects organic loan growth to come in toward the mid to high end of the single-digit to low teens range on an annual basis in fiscal 2026 [13][26] - The company anticipates a reduction in the income tax rate by three percentage points starting in the September 30, 2025 quarter, which will boost net income and EPS in fiscal 2026 and beyond [19][25] Other Important Information - The company has seen strong growth in accounts and balances from its Axos One consumer bundle deposit product, which supports organic loan growth [12] - The company is leveraging artificial intelligence to improve operational efficiency and speed up software development processes [20][38] Q&A Session Summary Question: Loan yields and net interest margin outlook - Management indicated that while loan yields might be tighter, there is an offsetting benefit on the funding side, resulting in a consistent net interest margin outlook [30][32] Question: Expense growth relative to revenue - Management targets that personnel and professional services cost growth should not exceed 30% of net interest income and non-interest income growth [34][35] Question: Opportunities on the funding side - Management noted that new verticals added come with favorable deposit balances, but there may be pressure on funding costs as industry loan growth picks up [46][48] Question: Fee income growth initiatives - Management believes that fee income growth will be supported by technology development and a strong pipeline of new assets [50][52] Question: Capital priorities and M&A considerations - Management is looking at organic growth and various M&A opportunities, with a focus on synergistic fee income and specialty finance businesses [56][57] Question: Multifamily loan sale reasoning - Management decided to sell certain loans based on credit perspective and interest from buyers, contributing to net loan growth [61][64] Question: Asset quality and areas of concern - Management expressed confidence in asset quality, particularly in commercial real estate and C&I portfolios, with no significant materiality expected [80][82]