Core Points - The Axos ONE® Checking account has a base APY of 0.00% and the Axos ONE® Savings account has a base APY of up to 1.00% [2] - Promotional APY is available for both accounts if specific criteria are met during the Qualification Period, which runs from the first business day of the month to the 25th [3] - To qualify for the promotional APY, the Axos ONE® Checking account must meet either of two sets of requirements related to direct deposits and average daily balance [7] Qualification Criteria - Option 1 requires monthly qualifying direct deposits of at least $1,500 and an average daily balance of at least $1,500 [7] - Option 2 requires monthly qualifying deposits of at least $5,000 and an average daily balance of at least $5,000 [7] - If the requirements are met, the Axos ONE® Checking account earns a promotional rate of 0.51% APY and the Axos ONE® Savings account can earn up to 4.31% APY for that statement cycle [7] Account Status - Both accounts must be open and active on the 25th of the month and on the date interest is paid to qualify for the promotional APY [6] - If either account closes during the Qualification Period, neither account will be eligible for the promotional APY for that cycle [6] Deposit Types - Qualifying deposits include ACH transfers, inbound wire transfers, and check deposits, while internal transfers and interest payments do not qualify [5][4]

PresentationElisabeth Wigmore Thank you so much. This is a long script today. And unfortunately, David Attenborough and others were not available to do it, so you're stuck with me. My apologies. Okay. Good morning. My name is Lis Wigmore, and I am a Trustee and the Chair of the Special Committee of the Board of Trustees. I will act as Chair of this meeting. On behalf of the Board of Trustees, all of whom are in attendance today, I welcome you to the special meeting of the holders of common units, Series E ...

Core Points - The Axos ONE® Checking account has a base APY of 0.00% and the Axos ONE® Savings account has a base APY of up to 1.00% [2] - Promotional APY is available for both accounts if specific criteria are met during the Qualification Period [3][6] - The promotional APY for the Axos ONE® Checking account can reach up to 0.51% and for the Axos ONE® Savings account up to 4.31% when requirements are satisfied [6] Qualification Criteria - To qualify for the promotional APY, the Axos ONE® Checking account must receive monthly qualifying direct deposits of at least $1,500 or maintain an average daily balance of at least $1,500 [6] - Alternatively, the account can qualify by receiving monthly qualifying deposits of at least $5,000 or maintaining an average daily balance of at least $5,000 [6] - Both accounts must remain open and active on the 25th of the month to receive the promotional APY for that statement cycle [7] Deposit Types - Qualifying deposits include ACH transfers from external accounts, inbound wire transfers, and check deposits [5] - Direct deposits must be electronic deposits of paychecks or government benefits; other types of deposits do not qualify [4] - Internal transfers, interest payments, promotional bonuses, and refunds are not considered qualifying deposits [5]

Core Insights - The article discusses the increasing difficulty in finding truly free checking accounts, while highlighting that legitimate options still exist, particularly among online banks and select brick-and-mortar institutions [1][2]. Best Free Checking Accounts - U.S. Bank Smartly® Checking offers up to $450 for new account openings, with additional features like no ATM fees at U.S. Bank ATMs and access to budgeting tools [4][7]. - Rewards Checking Plus via Upgrade provides a cash-back program with 2% cash back on eligible purchases for accounts with a monthly direct deposit of at least $1,000 [5][8]. - Wealthfront Cash Account offers a $30 bonus for new accounts funded with at least $500, along with a competitive yield and no ongoing balance requirements [12][13]. - GO2bank features a high APY of 4.50% on savings and offers early direct deposit options [19][20]. - Chime® Checking Account provides a 4.50% APY on savings up to $5,000 and up to 7% cash back on eligible purchases [21][22]. - Capital One 360 Checking has no minimum balance requirements and includes features like mobile deposit and real-time alerts [27][28]. Features and Benefits - Many accounts offer no monthly fees, no minimum balance requirements, and access to extensive ATM networks [39][43]. - Some accounts provide budgeting tools and high APYs on linked savings accounts, enhancing overall usability [49][47]. - Debit card rewards programs are available, with some accounts offering significant cash back on everyday purchases [48][43]. Considerations for Choosing Accounts - It is essential to evaluate the APY, cashback rewards, and any potential fees associated with the accounts [64][61]. - Users should consider the mobile app's functionality and customer service reviews when selecting a bank [64][63].

Core Viewpoint - Investors in Axos Financial, Inc. should closely monitor the stock due to significant movements in the options market, particularly the high implied volatility of the Jan 16, 2026 $32.2 Call option [1] Group 1: Implied Volatility - Implied volatility indicates the market's expectations for future stock movement, with high levels suggesting potential significant price changes or upcoming events that could lead to a rally or sell-off [2] - The current high implied volatility for Axos Financial options may signal a developing trading opportunity, as options traders often seek to sell premium on such options to capture decay [4] Group 2: Analyst Insights - Axos Financial holds a Zacks Rank 3 (Hold) within the Financial - Miscellaneous Services industry, which is in the top 30% of the Zacks Industry Rank [3] - Over the past 60 days, the Zacks Consensus Estimate for Axos Financial's current quarter earnings has increased from $1.98 per share to $2.01 per share, indicating positive sentiment among analysts [3]

Core Points - The Axos ONE® Checking account has a base APY of 0.00%, while the Axos ONE® Savings account offers a base APY of up to 1.00% [3] - Promotional APY rates are available for both accounts if specific criteria are met during the Qualification Period [3][4] - The promotional APY for the Checking account can reach 0.51% and for the Savings account up to 4.51% if qualifying conditions are satisfied [8] Qualification Criteria - Two options are provided to qualify for the promotional APY on the Axos ONE® Checking account, which include meeting minimum direct deposit or average daily balance requirements [8] - Qualifying deposits must come from specific sources such as ACH transfers, inbound wire transfers, or check deposits, while internal transfers and other types of deposits do not qualify [6] - Both accounts must remain open and active on the 25th of the month to be eligible for the promotional APY for that statement cycle [7]

Core Insights - Axos Financial operates as a digitally native bank with two primary revenue streams: core banking and a growing securities division through Axos Advisory Services and Axos Invest, which contribute to a structurally low-cost base and diversified income sources [1] Company Overview - The company has a core banking segment that provides stable revenue, while its securities division is expanding, indicating potential for future growth [1] Investment Strategy - The investment approach focuses on quantitative and fundamental analysis, particularly in small to mid-cap stocks, emphasizing a value-investing strategy that avoids overpaying for stocks to mitigate risk [1]

Core Insights - Axos Financial reported revenue of $323.39 million for the quarter ended September 2025, reflecting a year-over-year increase of 0.9% and a surprise of +0.79% over the Zacks Consensus Estimate of $320.85 million [1] - The company's EPS for the quarter was $2.07, up from $1.96 in the same quarter last year, resulting in an EPS surprise of +11.29% compared to the consensus estimate of $1.86 [1] Financial Metrics - The efficiency ratio was reported at 48.3%, slightly above the average estimate of 47.2% based on two analysts [4] - The net interest margin stood at 4.8%, matching the average estimate from two analysts [4] - Net annualized charge-offs to average loans were 0.1%, consistent with the average estimate of 0.1% from two analysts [4] - Total non-interest income was $32.34 million, exceeding the average estimate of $32.09 million based on two analysts [4] - Net interest income was reported at $291.05 million, surpassing the average estimate of $288.73 million from two analysts [4] Stock Performance - Over the past month, shares of Axos Financial have returned -5.7%, contrasting with the Zacks S&P 500 composite's increase of +3.6% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3]

Core Insights - Axos Financial reported quarterly earnings of $2.07 per share, exceeding the Zacks Consensus Estimate of $1.86 per share, and showing an increase from $1.96 per share a year ago, resulting in an earnings surprise of +11.29% [1][2] - The company achieved revenues of $323.39 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 0.79% and reflecting a year-over-year increase from $320.66 million [2] - Axos Financial has consistently outperformed consensus EPS and revenue estimates over the last four quarters [2] Earnings Outlook - The future performance of Axos Financial's stock will largely depend on management's commentary during the earnings call and the trends in earnings estimate revisions [3][4] - The current consensus EPS estimate for the upcoming quarter is $2.01 on revenues of $339.2 million, while the estimate for the current fiscal year is $7.89 on revenues of $1.35 billion [7] Industry Context - The Financial - Miscellaneous Services industry, to which Axos Financial belongs, is currently ranked in the top 36% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked using tools like the Zacks Rank [5][6]

Financial Data and Key Metrics Changes - The company generated $1.6 billion of net loan growth linked quarter, including $1 billion from the Verdant Commercial Capital acquisition [4] - Net interest income was $291 million, increasing by approximately $11 million linked quarter, or 15.6% annualized [5] - Net income was approximately $112.4 million, up from $110.7 million in the previous quarter, with diluted EPS at $1.94 compared to $1.92 [7] - Adjusted net income and adjusted EPS were $119 million and $2.06 per share, respectively, for the quarter, a 7.3% increase from the linked quarter [7] - Non-interest expenses were approximately $156 million, up by $5.6 million from the previous quarter [21] Business Line Data and Key Metrics Changes - Total originations for investment, excluding single-family mortgage warehouse lending, were over $4.2 billion, representing an increase of 11% linked quarter, or 44% annualized [8] - Average loan yields for the quarter were 7.99%, with non-purchase loans at 7.66% and purchase loans at 15.81% [8] - Non-interest income increased by approximately 13% year-over-year due to higher banking service fees and mortgage banking income [6] Market Data and Key Metrics Changes - Total on-balance sheet deposits increased 6.9% year-over-year to $22.3 billion [6] - Demand, money market, and savings accounts, representing 94% of total deposits, increased by 9% year-over-year [9] - Ending non-interest-bearing deposits were approximately $3.4 billion, up by approximately $350 million from the prior quarter [9] Company Strategy and Development Direction - The acquisition of Verdant Commercial Capital is expected to add $150 million to $200 million of net new loans and operating leases per quarter at attractive spreads [12] - The company is focused on increasing productivity and implementing operational improvements, including the use of artificial intelligence across various departments [18] - The company aims to maintain loan growth in the low to mid-teens range annually, supported by strong originations from commercial lending businesses [25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the credit quality of the loan book, with historical and current net charge-offs remaining low [13] - The company anticipates that the Verdant acquisition will be accretive to earnings per share by 2% to 3% in fiscal year 2026 and by 5% to 6% in fiscal 2027 [17] - Management remains vigilant regarding potential risks in the credit market, particularly concerning deal structures and fraud [28][29] Other Important Information - The company issued approximately $200 million of subordinated debt in September 2025, which has a fixed annual interest rate of 7% for the first five years [10] - The current regulatory environment is seen as favorable for additional strategic M&A transactions [18] Q&A Session Summary Question: What is the company's perspective on credit risks in the current environment? - Management noted that they have turned down several high-profile deals due to problematic structures and remain cautious about credit quality [28][29] Question: Were there any one-time factors affecting fee income this quarter? - Management confirmed that there were no one-time factors affecting fee income, and they expect a few million dollars from Verdant in non-interest income going forward [31] Question: How does the company view its capital ratios in relation to loan growth? - Management expressed comfort with current capital ratios, indicating that they have excess capital relative to needs and are focused on maintaining strong profitability [37] Question: What are the company's plans for future acquisitions? - Management is actively looking for acquisition opportunities that fit strategically and culturally, similar to the Verdant acquisition [41]