Group 1 - Avidbank Holdings Inc. (AVBH) is currently performing well in the Finance sector, with a year-to-date return of 13.1%, significantly outperforming the sector average of 0% [4] - The Zacks Rank for Avidbank Holdings Inc. is 2 (Buy), indicating a positive outlook based on earnings estimates and revisions, with a 7.7% increase in the consensus estimate for full-year earnings over the past three months [3] - Avidbank Holdings Inc. is part of the Banks - West industry, which ranks 63 in the Zacks Industry Rank, and has outperformed the average gain of 6.9% for this group [5] Group 2 - The Finance sector is currently ranked 3 within the Zacks Sector Rank, which includes 16 different groups [2] - Axos Financial (AX) is another Finance stock that has shown strong performance, with a year-to-date return of 9.7% and a Zacks Rank of 1 (Strong Buy) [4][5] - The Financial - Miscellaneous Services industry, to which Axos Financial belongs, is ranked 76 and has declined by 10.1% year to date [6]

NEW YORK--(BUSINESS WIRE)--Axos Bank, the nationwide bank subsidiary of Axos Financial, Inc. (NYSE: AX), and Priority Rollfi, a subsidiary of Priority Technology Holdings, Inc., (NASDAQ: PRTH), today announced a new partnership following a competitive RFP process. Rollfi was selected to supply its embedded and white-label payroll and benefits technology infrastructure to enhance Axos's business banking platform. Rollfi's technology infrastructure powers payroll and benefits through its whitelabel and API-ba ...

Group 1 - The article does not provide any relevant content regarding company or industry insights [1]

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Core Insights - Axos Financial reported a revenue of $385.09 million for the quarter ended December 2025, marking a 25.1% increase year-over-year and exceeding the Zacks Consensus Estimate of $343.85 million by 11.99% [1] - The company's EPS for the quarter was $2.25, up from $1.82 in the same quarter last year, and also surpassed the consensus EPS estimate of $2.07 by 8.7% [1] Financial Performance Metrics - Net Interest Margin was reported at 4.9%, higher than the average estimate of 4.7% from two analysts [4] - The Efficiency Ratio stood at 47.9%, slightly above the average estimate of 47.6% based on two analysts [4] - Total Non-Interest Income reached $53.38 million, significantly exceeding the average estimate of $35.5 million from two analysts [4] - Net Interest Income was reported at $331.71 million, compared to the average estimate of $308.35 million from two analysts [4] Stock Performance - Over the past month, shares of Axos Financial have returned +6.6%, outperforming the Zacks S&P 500 composite's +0.8% change [3] - The stock currently holds a Zacks Rank 2 (Buy), indicating potential for outperformance in the near term [3]

Core Viewpoint - Axos Financial reported strong quarterly earnings, exceeding expectations and showing significant year-over-year growth in both earnings and revenues [1][2]. Financial Performance - Quarterly earnings were $2.25 per share, surpassing the Zacks Consensus Estimate of $2.07 per share, and up from $1.82 per share a year ago, representing an earnings surprise of +8.70% [1]. - Revenues for the quarter ended December 2025 were $385.09 million, exceeding the Zacks Consensus Estimate by 11.99% and up from $307.9 million year-over-year [2]. Market Performance - Axos Financial shares have increased approximately 6.6% since the beginning of the year, outperforming the S&P 500, which gained 1.9% [3]. Future Outlook - The company's earnings outlook is crucial for assessing future stock performance, with current consensus EPS estimates at $2.05 for the next quarter and $8.23 for the current fiscal year [4][7]. - The Zacks Rank for Axos Financial is 2 (Buy), indicating expectations for the stock to outperform the market in the near future [6]. Industry Context - The Financial - Miscellaneous Services industry, to which Axos Financial belongs, is currently ranked in the top 39% of over 250 Zacks industries, suggesting a favorable environment for performance [8].

Financial Data and Key Metrics Changes - The company generated $1.6 billion of net loan growth quarter-over-quarter, with a 19 basis point increase in net interest margin [4][6] - Net interest income was $331.6 million for the quarter, up approximately $41 million or 14% linked quarter [6] - Net income was approximately $128.4 million, a 22.6% increase from $104.7 million in the prior year's second quarter [8] - Diluted earnings per share increased to $2.22, representing a 23.3% year-over-year increase [8] Business Line Data and Key Metrics Changes - Total originations for investments, excluding single-family warehouse lending, were $5.6 billion, representing a 35% increase linked quarter [8] - Non-interest income increased by approximately $21 million quarter-over-quarter, with contributions from higher banking service fees and broker-dealer fee income [7] - Non-interest income from Verdant was approximately $18.9 million in the quarter [7] Market Data and Key Metrics Changes - Ending deposit balances were $23.2 billion, up 44.3% linked quarter and 16.5% year-over-year [9] - Average non-interest-bearing deposits were approximately $3.5 billion, compared to $3 billion in the prior quarter [10] - Total assets under custody or administration increased from $43 billion to $44.4 billion [17] Company Strategy and Development Direction - The company aims to generate loan growth in the low to mid-teens on an annual basis, with a focus on deepening relationships with existing vendors and accelerating growth in previously constrained verticals [13][20] - The integration of artificial intelligence across various business units is expected to enhance operational efficiency and innovation [18][19] - The acquisition of Verdant is seen as a strategic fit, with expectations of EPS accretion in fiscal 2026 and 2027 [20][21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining strong loan growth despite anticipated declines in net interest margin due to robust loan demand [32][34] - The company does not anticipate material losses from loans currently classified as non-performing [17] - Management highlighted the importance of a balanced growth strategy across various business lines to sustain long-term performance [56][58] Other Important Information - Non-interest expenses were approximately $184.6 million, with Verdant contributing $7.8 million in salaries and benefits expenses [24] - Provisions for credit losses increased to $25 million, driven by robust loan growth in commercial lending categories [26] - The company is focused on maintaining a strong capital position and exploring M&A opportunities to augment growth [22][20] Q&A Session Summary Question: What is the outlook for net interest margin? - Management confirmed an expected decline in adjusted margin to approximately 4.66% due to robust loan demand [32][34] Question: Can you discuss the pipeline for team liftouts? - Management indicated ongoing team liftouts and the addition of personnel where opportunities arise [35][36] Question: What is the growth outlook for the upcoming quarters? - Management expects balanced growth across various segments, with specific contributions from commercial real estate and floor plan lending [42][43] Question: How is the integration of Verdant progressing? - Management noted that Verdant has been enthusiastically selling deposits and is expected to contribute positively to growth [92][93] Question: What are the expectations for fee income moving forward? - Management indicated that the current quarter's fee income is a good baseline, with potential for small growth as Verdant increases originations [45][47]

Financial Data and Key Metrics Changes - The company generated $1.6 billion of net loan growth linked quarter, with a 19 basis point increase in net interest margin, and a 23.3% year-over-year increase in earnings per share [4][6] - Net interest income was $331.6 million for the quarter, increasing by approximately $41 million linked quarter, or 14% [6][8] - Net income was approximately $128.4 million, up 22.6% from $104.7 million in the prior year's second quarter [8][24] Business Line Data and Key Metrics Changes - Total originations for investments excluding single-family warehouse lending were $5.6 billion, representing an increase of 35% linked quarter [8] - Non-interest income increased by approximately $21 million quarter-over-quarter due to higher banking service fees and broker-dealer fee income [7][25] - Verdant contributed approximately $18.9 million in non-interest income for the quarter [7][25] Market Data and Key Metrics Changes - Ending deposit balances were $23.2 billion, up 44.3% linked quarter and up 16.5% year-over-year [9][10] - Average non-interest-bearing deposits were approximately $3.5 billion, compared to $3 billion in the prior quarter [10][11] - Total assets under custody or administration increased from $43 billion to $44.4 billion [16] Company Strategy and Development Direction - The company is focused on organic growth and has identified opportunities to deepen relationships with existing vendors and accelerate growth in various verticals [13][20] - The integration of artificial intelligence across various business units is expected to enhance operational efficiency and innovation [18][19] - The company aims to maintain strong loan growth while managing credit performance and interest margins [14][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in generating loan growth in the low to mid-teens on an annual basis, supported by strong demand across various lending verticals [13][14] - The company anticipates a potential decline in net interest margin due to robust loan demand and expects to manage this through strategic growth [32][33] - Management highlighted the importance of maintaining a balance between growth and operational efficiency to sustain long-term success [56][58] Other Important Information - Non-interest expenses were approximately $184.6 million, with Verdant contributing $7.8 million in salaries and benefits expenses [24][25] - The company recorded $25 million in provisions for credit losses, reflecting robust loan growth in commercial lending categories [26] - The acquisition of Verdant is expected to contribute to EPS accretion in fiscal 2026 and 2027 [21][22] Q&A Session Summary Question: What is the outlook for net interest margin? - Management confirmed a normalized level of 4.72% and expects a 5-6 basis point decline due to robust growth [32][33] Question: What is the average remaining life of the FDIC purchase loans? - Management indicated it is approximately three to four more years [34] Question: What is the pipeline for team liftouts? - Management noted they have completed several team liftouts and are focused on developing those teams further [35][36] Question: What is the growth outlook for the loan portfolio? - Management expects balanced growth across various segments, with a strong contribution from commercial lending [42][43] Question: How will fee income be impacted by Verdant? - Management indicated that fee income from Verdant is expected to be consistent, with potential for small growth as originations increase [45][46] Question: What are the synergies expected from the Qualia partnership? - Management sees significant opportunities from the partnership, particularly in the escrow space, which could enhance deposit growth [81][82]

Financial Data and Key Metrics Changes - The company generated $1.6 billion of net loan growth quarter-over-quarter, with a 19 basis point increase in net interest margin [4][5] - Net interest income was $331.6 million for the quarter, up approximately $41 million or 14% linked quarter [5] - Net income was approximately $128.4 million, up 22.6% from $104.7 million in the prior year's second quarter [8] - Diluted earnings per share increased to $2.22, representing a 23.3% year-over-year increase [8] Business Line Data and Key Metrics Changes - Total originations for investments, excluding single-family warehouse lending, were $5.6 billion, representing a 35% increase linked quarter [8] - Non-interest income increased by approximately $21 million quarter-over-quarter, driven by higher banking service fees and broker-dealer fee income [6] - Non-interest income from Verdant was approximately $18.9 million in the quarter [6] Market Data and Key Metrics Changes - Ending deposit balances were $23.2 billion, up 44.3% linked quarter and 16.5% year-over-year [9] - Average non-interest-bearing deposits were approximately $3.5 billion, compared to $3 billion in the prior quarter [10] - Total assets under custody or administration increased from $43 billion to $44.4 billion [17] Company Strategy and Development Direction - The company aims to generate loan growth in the low to mid-teens on an annual basis, with a focus on deepening relationships with existing vendors and accelerating growth in previously constrained verticals [12][20] - The integration of artificial intelligence across various business units is expected to enhance operational efficiency and innovation [18][19] - The acquisition of Verdant is seen as a strategic fit, contributing to the company's commercial lending franchise and expected to achieve EPS accretion [19][20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining strong loan growth despite anticipated declines in net interest margin due to robust loan demand [27][28] - The company does not anticipate material losses from loans currently classified as non-performing [17] - Management highlighted the importance of a balanced growth strategy across various business lines to sustain long-term performance [35] Other Important Information - Non-interest expenses were approximately $184.6 million, with Verdant contributing $7.8 million in salaries and benefits expenses [23] - Provisions for credit losses increased to $25 million, driven by robust loan growth in commercial lending categories [25] - The company is focused on maintaining salaries and benefits expense growth at 30% of revenue growth or lower on an annual basis [23] Q&A Session Summary Question: What is the outlook for net interest margin? - Management confirmed a normalized level of 4.72% and expects a 5-6 basis point decline due to robust loan demand [27][28] Question: Can you discuss the pipeline for team liftouts? - Management indicated that they have successfully completed several team liftouts and are focused on developing those teams further [29] Question: What is the growth outlook for Verdant? - Management expects Verdant to achieve growth of approximately $150 million per quarter, with strong integration and cultural fit enhancing performance [52] Question: How is the company managing deposit growth? - Management noted that deposit growth was primarily driven by specialty deposits and commercial segments, with a balanced approach across various areas [41]

Axos Q2 Fiscal 2026 Earnings Supplement January 29, 2026 NYSE: AX Loan Growth by Category $ Millions | | | | | Q2 FY26 | | Q1 FY26 | Inc (Dec) | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | Single Family | | Jumbo Mortgage | $ | 3,751 | $ | 3,753 | $ | (2) | | Mortgage & | | SF Warehouse Lending | | 1,044 | | 788 | | 256 | | Warehouse | | | | | | | | | | Multifamily & | | Multifamily | | 1,469 | | 1,585 | | (116) | | Commercial | Mortgage | Small Balance Commercial | | 1,029 | | 1,209 | | (18 ...