Financial Data and Key Metrics Changes - The company reported net income of $57.9 million for Q4 2022, representing a year-over-year growth of 6.7%, and $240.7 million for the fiscal year, an increase of 11.6% [9] - Book value per share increased by 16.3% year-over-year to $27.48 [9] - Net interest margin for Q4 2022 was 4.21%, up 19 basis points from the previous quarter and 29 basis points from the same quarter last year [9][10] - The efficiency ratio for the banking business segment was 46.7% for Q4 2022, which would have been 40.6% excluding a one-time charge of $11 million [11][18] Business Line Data and Key Metrics Changes - Total loan originations for Q4 2022 were $3.2 billion, a 41% increase from $2.3 billion in the same quarter last year [12] - Ending net loans for investment balances were $14.1 billion, up 7.6% linked quarter and 30.4% annualized [9] - C&I loan originations were $2.1 billion, reflecting strong growth across various lending sectors [16] - Auto lending saw ending loan balances increase by 8.7% linked quarter [17] Market Data and Key Metrics Changes - Deposits grew by 9.5% linked quarter to $13.9 billion, with consumer deposits comprising 54% of total deposits [20] - Non-interest bearing deposits increased by approximately $900 million from the previous quarter, representing 36% of total deposits [10][21] - The weighted average demand and savings deposit costs were 29 basis points for Q4 2022, compared to 14 basis points in the previous quarter [21] Company Strategy and Development Direction - The company aims to maintain a net interest margin above its long-term target of 3.8% to 4% and expects mid-teens loan growth for fiscal 2023 [27][33] - Investments in technology and infrastructure are ongoing to enhance operational efficiency and support growth initiatives [36] - The company is focused on expanding its advisory services and increasing assets under custody, targeting a $1 billion growth in this area [51][33] Management's Comments on Operating Environment and Future Outlook - Management noted that while rising interest rates and economic uncertainty present challenges, the company is well-positioned due to its efficient operations and strong credit quality [16][30] - The outlook for loan growth remains positive, with expectations for continued demand across multiple loan categories [33] - Management anticipates that the net interest margin will remain stable, influenced by loan portfolio growth and advisory deposit levels [27][29] Other Important Information - The company added $6 million to its loan loss provision in Q4 2022, reflecting strong loan growth [31] - The total allowance for credit losses was $148.6 million, representing 1.04% of total loans [32] - The company has access to approximately $2 billion of Federal Home Loan Bank borrowings, providing additional liquidity [34] Q&A Session Summary Question: Growth and Competition - Management indicated that while growth is expected to continue, there may be reduced activity in the market due to financial tightening conditions, which have also reduced competition, particularly in the non-bank sector [46][48] Question: Deposit Growth from New Clients - Management targets $1 billion growth in assets under custody, primarily engaging with smaller RIAs, with expectations for meaningful growth over time [51] Question: On-Balance Sheet Deposits - Management discussed the regulatory limitations on certain cash components, indicating that some cash will likely remain off-balance sheet due to these restrictions [55] Question: Balance Sheet Management - Management confirmed the need to maintain a level of deposits at third-party banks to ensure access to those banks over time [60] Question: Expense Growth Rate - Management provided guidance on maintaining a banking efficiency ratio between 41% and 42%, with expected growth in non-interest expenses due to increased headcount and marketing efforts [72]

Financial Data and Key Metrics Changes - Axos Financial reported a net income of $61.8 million for Q3 2022, with diluted earnings per share of $1.02, representing a year-over-year growth of 15.3% [9] - Book value per share increased by 17% to $26.58 compared to the previous year [9] - The efficiency ratio for the banking business was 39.79%, showing positive operating leverage due to strong net interest income growth [11][43] Business Line Data and Key Metrics Changes - Total loan originations for Q3 2022 were $2.5 billion, up 57% from $1.6 billion in the same period last year [14] - Ending loan balances increased by 3.9% linked-quarter to $13.1 billion, with strong growth in auto, commercial real estate, and C&I lending [9][14] - Mortgage banking income was $5.7 million, up from $4.6 million in the previous quarter, but down from $9 million in the same quarter last year due to lower refinancing activity [15] Market Data and Key Metrics Changes - Noninterest-bearing deposits increased by approximately $287.8 million from December 31, 2021, representing 33% of total deposits at March 31, 2022, up from 23% a year ago [10] - Total client deposits from custody and clearing businesses were approximately $2.9 billion, with $2.1 billion kept on Axos Bank's balance sheet [21] - The weighted average demand and savings deposits cost decreased to 22 basis points from 38 basis points year-over-year [20] Company Strategy and Development Direction - The company is focusing on improving operational efficiencies and scalability in its securities business, with a target to reduce costs by approximately $1 million annually through the conversion to self-clearing [73] - Axos Financial aims to leverage its diverse lending and deposit businesses to position itself favorably in a rising interest rate environment [22][25] - The integration of Axos Advisory Services is progressing well, with expectations of improved profitability in the securities business over time [31] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving the higher end of the loan growth target for fiscal 2022, supported by strong demand across multiple loan categories [30] - The company remains cautious about the economic impact of interest rate increases on aggregate loan demand and is monitoring credit quality closely [66][70] - Management highlighted the importance of maintaining a strong capital position to support organic loan growth and potential acquisitions [33][45] Other Important Information - The company raised $150 million in subordinated debt to augment its capital ahead of anticipated rate increases [33] - The total allowance for credit losses was $143 million, representing 1.1% of total loans, which is approximately 22 times the annualized net charge-offs [29] Q&A Session Summary Question: What is the scalability of the AAS business and expected efficiency ratio? - Management acknowledged ongoing opportunities for process improvement and efficiency in the AAS business, with a target for positive income despite interest rate dependencies [48][49] Question: How are new clients responding to Axos Securities and market volatility? - Management noted that market volatility could act as a catalyst for RIAs to switch custodians, emphasizing the unique service offerings and technology integration provided by Axos [54][55] Question: What are the trends in new loan yields and competitive landscape? - Management indicated that new loan yields are expected to rise, particularly in the single-family sector, as the securitization market stabilizes [60][62]

Axos Financial, Inc. (NYSE:AX) Q2 2022 Earnings Conference Call January 27, 2022 5:00 PM ET Company Participants Johnny Lai - Vice President, Investor Relations & Corporate Development Gregory Garrabrants - President & Chief Executive Officer Andrew Micheletti - Executive Vice President, Finance Derrick Walsh - Executive Vice President & Chief Financial Officer Conference Call Participants Andrew Leisch - Piper Sandler Steve Moss - B. Riley Securities Michael Perito - KBW Disclaimer*: This transcript is des ...

Axos Financial, Inc. (NYSE:AX) Q1 2022 Earnings Conference Call October 28, 2021 5:00 PM ET Company Participants Johnny Lai - Vice President, Investor Relations & Corporate Development Greg Garrabrants - President & Chief Executive Officer Andy Micheletti - Executive Vice President, Finance Derrick Walsh - Executive Vice President & Chief Financial Officer Conference Call Participants Michael Perito - KBW Andrew Leisch - Piper Sandler Gary Tanner - D.A. Davidson Tim Coffey - Janney David Chiaverini - Wedbus ...