Securities Portfolio - As of June 30, 2023, the total securities portfolio was $233.1 million, a decrease from $264.3 million in 2022, representing a decline of approximately 11.8%[49] - The available-for-sale securities portfolio comprised $232.4 million, with 67.6% in Alt-A RMBS, 18.2% in CMBS, and 10.3% in agency RMBS[50] - The weighted-average yield on available-for-sale securities was 5.21% as of June 30, 2023[50] Deposits - Total deposits reached $17.1 billion, with 92.3% in demand and savings accounts and 7.7% in time deposits[52] - The number of total deposit accounts increased to 479,279 in 2023, up from 395,699 in 2022, marking an increase of approximately 21%[60] - Interest-bearing checking and savings accounts rose to 427,299 in 2023, driven by enhanced marketing efforts[60] - Total deposits increased to $17,123,108, representing a 22.4% growth from $13,946,422 in the previous year[62] - Total interest-bearing deposits reached $14,224,958, with an average rate of 3.76%, up from $8,912,452 and 0.85% respectively[62] - Demand deposits amounted to $3,334,615, showing a growth rate of 2.43% compared to $3,611,889 in the previous year[62] - Savings deposits increased to $9,575,781, with a rate of 4.20%, compared to $4,245,555 and 0.95% in the prior year[62] - Time deposits totaled $1,314,562, with an average rate of 3.91%, up from $1,055,008 and 1.25% in the previous year[62] Capital and Regulatory Compliance - As of June 30, 2023, the Company and the Bank's capital ratios exceeded the minimums necessary to be considered "well-capitalized" under regulatory requirements[91] - The Regulatory Capital Rules require a minimum "common equity Tier 1" (CET1) ratio of 4.5%, a Tier 1 risk-based capital ratio of 6.0%, and a total risk-based capital ratio of 8.0%[88] - The Company and the Bank elected the current expected credit losses (CECL) five-year transition guidance for calculating regulatory capital ratios, which allows adding back 100% of the capital impact from the day one CECL transition adjustment[90] - The capital regulations require savings associations to maintain tangible capital of at least 1.5% of total adjusted assets[108] - The capital conservation buffer of 2.5% is required for banking institutions to avoid restrictions on capital distributions[88] - The Company is not subject to enhanced stress test regulations as it has total consolidated assets below $100 billion[108] - The Bank was in compliance with the Qualified Thrift Lender (QTL) requirement, maintaining 65% of portfolio assets in qualified thrift investments[112] - Axos Bank was in compliance with the applicable liquidity standard as of June 30, 2023[113] Operational Efficiency and Technology - The company aims to enhance its technology platforms to improve operational efficiency and customer experience[73] - The company emphasizes a comprehensive suite of treasury management products to support deposit acquisition and retention[54] - The company’s deposit operations are centralized, allowing for scalability and lower funding costs compared to traditional branch models[58] Market and Interest Rate Risk - Interest rate risk is the primary market risk, affecting net interest income, net interest margin, and the value of the securities portfolio[347] - A positive interest rate sensitivity gap indicates that interest rate sensitive assets exceed liabilities, which is favorable in a rising interest rate environment[356] - The net interest rate sensitivity gap was $4,648,597, representing 24.41% of total interest-earning assets, highlighting the company's exposure to interest rate changes[358] - The projected net interest income for the next 12 months is $1,064,324, reflecting a 9.7% change from the base[361] - The market value of equity as of June 30, 2023, was $1,843,498, with a sensitivity to interest rate changes showing a decrease of 1.4% with a 200 basis point increase[363] Employee and Competitive Landscape - The company had 1,455 full-time employees as of June 30, 2023, with no labor union representation[76] - The competitive landscape for banking and financial services is intensifying, with the company focusing on superior service and competitive rates to attract deposits[78] Securities Business Regulations - The Bank is subject to extensive laws and regulations governing its securities business, including compliance with the Dodd-Frank Act, which may increase operational costs[135] - The Bank's ability to make capital distributions, such as cash dividends, is limited by OCC regulations, which may affect its financial flexibility[116] - The Bank must disclose its privacy policy under the Gramm-Leach-Bliley Act, informing consumers of their rights regarding information sharing[124] - The Bank is required to comply with U.S. Treasury's Office of Foreign Assets Control sanctions, which could have serious legal and reputational consequences if violated[130] - The broker-dealers are subject to the SEC's customer protection rule, requiring maintenance of physical possession or control of fully-paid securities and certain cash reserves[140] - The Securities Investor Protection Corporation (SIPC) provides protection for customers up to $500,000, with a maximum of $250,000 in cash[140]

Axos Q4 Fiscal 2023 Earnings Supplement ...

Axos Financial, Inc. (NYSE:AX) Q4 2023 Earnings Conference Call July 27, 2023 5:00 PM ET Company Participants Johnny Lai – Senior Vice President, Corporate Development and Investor Relations Greg Garrabrants – President and Chief Executive Officer Derrick Walsh – Executive Vice President and Chief Financial Officer Conference Call Participants Andrew Liesch – Piper Sandler Gary Tenner – D.A. Davidson David Feaster – Raymond James Michael Perito – KBW Operator Greeting, and welcome to the Axos Financial Four ...

Financial Data and Key Metrics Changes - The company reported net income of $80 million and earnings per share of $1.32 for Q3 2023, representing year-over-year growth of 29% and 28% respectively [8][11] - Book value per share increased to $31.07, up 17% from the previous year [8] - Net interest margin was 4.42%, down seven basis points from the previous quarter but up 40 basis points year-over-year [9][10] - Total deposits increased by approximately $1 billion linked quarter, reaching $16.7 billion, with a year-over-year growth of approximately 32% [7][12] Business Line Data and Key Metrics Changes - Ending net loans for investment balances were $15.8 billion, up 2% linked quarter and 9% annualized, with growth in single-family mortgage, multifamily, and C&I loans [9] - Loan originations for the quarter were $1.8 billion, down from $2.4 billion in the same quarter last year, with tightened pricing and underwriting guidelines in several categories [28] - Noninterest income for Q3 2023 was $32.2 million, an increase of 12% year-over-year, driven by a 40% increase in broker-dealer fees linked quarter [29] Market Data and Key Metrics Changes - Approximately 57% of loans were floating rate, with the average yield on held-for-investment loans at 7.07%, up 45 basis points from the prior quarter [16] - The company reported a strong capital position with a Tier 1 leverage ratio of 10.2% at the Bank, well above regulatory requirements [11] - The company maintained a diverse deposit base, with 43% demand deposits, 46% savings and money market, and 11% CDs [17] Company Strategy and Development Direction - The company aims to maintain investments in technology and personnel while capitalizing on market dislocations to grow its business [25] - There are plans to expand into new areas and acquire teams, with a focus on enhancing deposit and lending capabilities [38] - The company is strategically positioned to take advantage of reduced competition in the lending market, allowing for better pricing and terms [41] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's stability and strength amid recent banking industry turmoil, highlighting a robust liquidity position [12] - The outlook for loan growth is projected to be in the high single digits to low teens year-over-year, with net interest margin guidance of 4.25% to 4.35% for the next few quarters [31] - Management noted that maintaining excess liquidity is prudent given the uncertain economic environment [31] Other Important Information - The company repurchased approximately $32 million of common stock in Q3 2023, with an additional $100 million approved for share repurchases [11][30] - The company has a healthy pipeline of new advisory clients, signing 15 new deals with a combined assets under custody of $1 billion [18] Q&A Session Summary Question: How does the liquidity on the balance sheet affect NII? - Management indicated that the liquidity is fairly neutral as it is placed with the Fed, with a slight benefit expected [34] Question: Are there any concerns regarding substandard loans? - Management stated that there are no significant concerns and that the attachment points remain strong [36] Question: What expansion opportunities are being considered? - Management mentioned potential team acquisitions and bulk loan purchases, indicating a positive outlook on deposit growth [38] Question: What is the status of the security segment? - Management highlighted ongoing improvements and the development of a new core processing system to enhance competitiveness [50] Question: What is the onboarding timeline for new RIAs? - Management estimated a six-month timeframe for onboarding new RIAs after contracts are signed [54]

Loan Portfolio - Total loans reached $16020 million, an increase of $371 million from the previous quarter[2] - CRE Specialty loans have a weighted average LTV of 42%, with non-performing loans at $15 million[3] - Single Family Mortgage & Warehouse loans amounted to $3925 million[2] - Multifamily loans reached $2245 million[2] - Commercial & Industrial Non-RE loans increased by $207 million to $1598 million[2] Financial Performance - Net interest income was $198982 thousand for the quarter ended March 31, 2023[42] - Net income was $79850 thousand, with basic earnings per share at $133[42] - Total assets reached $19782481 thousand[39] - Total deposits amounted to $16738869 thousand[39] Capitalization - Equity to assets ratio was 932%[39] - Tier 1 leverage ratio for Axos Financial, Inc was 929%[39]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2023 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission file number: 001-37709 AXOS FINANCIAL, INC. (Exact name of registrant as specified in its charter) Delaware 33-0867444 (State or other jurisdiction of incorporation or organization)(I.R.S. Emp ...

Financial Data and Key Metrics Changes - The company reported net income of $82 million and earnings per share of $1.35 for Q2 2023, representing year-over-year growth of 34% and 35% respectively [8] - Book value per share increased by 16% year-over-year to $29.79 at December 31, 2022 [8] - Net interest margin was 4.49% for the second quarter, up 23 basis points from the previous quarter and up 39 basis points from the same quarter last year [9][23] Business Line Data and Key Metrics Changes - Deposits increased by approximately 28% year-over-year to $15.7 billion, with checking and savings deposits representing 93% of total deposits [8][18] - Ending net loans for investment balance were $15.5 billion, up 2% linked quarter or 7% annualized [9] - Loan originations for the quarter were $2 billion, down approximately 22% from the previous year [13] Market Data and Key Metrics Changes - The company experienced a 3% linked quarter increase in deposits, with growth in small business and consumer deposits offset by declines in certain commercial banking channels [18] - Cash sorting by Registered Investment Advisors (RIAs) increased, leading to a decline in cash balances held at Axos Advisory Services [21] Company Strategy and Development Direction - The company is focused on maintaining strong net interest margins in a competitive deposit market through diverse deposit franchises [8] - Investments in technology and operational efficiency are expected to improve the cost structure of the securities business [28] - The company plans to launch a new version of its consumer app in summer 2023, enhancing financial planning and investment features [29] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving mid-teens loan growth in the second half of fiscal 2023, despite a deceleration in loan growth during Q2 [17][39] - The company is well-positioned to weather economic downturns due to strong capital levels and a low loan-to-value strategy [32] - Management noted that the competitive landscape for deposits has intensified, leading to increased marketing expenditures [37] Other Important Information - The efficiency ratio for the banking business was 47.11%, a significant improvement from the previous quarter [11] - Noninterest income for the quarter was $28.3 million, down from $30.8 million year-over-year, primarily due to a downturn in mortgage banking [34] Q&A Session Summary Question: Margin normalization and future rate increases - Management indicated that the margin is expected to normalize lower but may have potential for upside depending on future rate increases [42][43] Question: Loan growth expectations - Management expects mid-teens loan growth for the second half of the fiscal year, with specific drivers identified [48][49] Question: Auto charge-offs and insurance recovery - Management clarified that there is a lag in recovery from insurance on auto charge-offs, which is recorded under banking service fees [52][54] Question: Competitive lending environment - Management noted that while some banks are pulling back, there are still opportunities for growth, particularly in jumbo mortgages and C&I lending [58][60] Question: Return on equity evolution - Management expressed optimism about the potential for higher returns on equity in the long term, driven by improvements in the securities business [63][64] Question: Digital asset strategy - Management is cautious about the digital asset space, monitoring regulatory developments and consumer interest before making further commitments [67][69]

Axos Q2 Fiscal 2023 Earnings Supplement January 26, 2023 NYSE: AX Loan Growth by Category for Second Quarter Ended December 31, 2022 $ millions Single Family Mortgage & Warehouse Multifamily & Commercial Mortgage Commercial Real Estate Loans Commercial & Industrial Non-RE* Auto & Consumer Other Q1 FY23 Q2 FY23 Inc (Dec) $3,845 $3,833 $12 Jumbo Mortgage SF Warehouse Lending 144 177 (33) 2,175 2,127 48 Multifamily Small Balance Commercial 37 875 838 4,848 133 4,981 CRE Specialty 781 676 105 Lender Finance RE ...

Financial Performance - Axos Financial, Inc. reported net income of $81,552,000 for the three months ended December 31, 2022, compared to $60,787,000 for the same period in 2021, representing a 34% increase[130]. - Adjusted earnings for the same period were $83,354,000, up from $62,917,000 in 2021, reflecting a 32% year-over-year growth[130]. - The company’s adjusted earnings per diluted common share (EPS) increased to $1.38 for the three months ended December 31, 2022, compared to $1.04 in the prior year, marking a 32% rise[130]. - For the three months ended December 31, 2022, the company reported net income of $81.6 million, or $1.35 per diluted share, compared to $60.8 million, or $1.00 per diluted share for the same period in 2021, representing a 34.5% increase in net income[139]. - For the six months ended December 31, 2022, net income was $140.0 million, or $2.31 per diluted share, compared to $121.0 million, or $1.99 per diluted share for the same period in 2021, indicating a 15.7% increase in net income[139]. Assets and Equity - As of December 31, 2022, common stockholders' equity was $1,787,559,000, an increase from $1,523,157,000 in 2021, indicating a 17% growth[131]. - The company has approximately $18.7 billion in total assets, indicating a strong financial position[118]. - Total assets increased to $18,741,035 thousand as of December 31, 2022, up from $17,401,165 thousand as of June 30, 2022, reflecting an increase of 7.7%[135]. - Total assets for the company reached $17.4 billion as of December 31, 2022, compared to $13.5 billion as of December 31, 2021[173]. - Stockholders' equity increased by $144.6 million to $1.79 billion at December 31, 2022, driven by net income of $140.0 million for the six months ended December 31, 2022[207]. Income and Expenses - Net interest income for the three months ended December 31, 2022, was $199,910 thousand, compared to $145,568 thousand for the same period in 2021, marking a 37.2% increase[137]. - Total interest and dividend income for the six months ended December 31, 2022, increased 59.6% to $503.4 million compared to $315.4 million for the same period in 2021[140]. - Total interest expense for the three months ended December 31, 2022, was $79.7 million, an increase of 592.4% from $11.5 million in the same period of 2021[140]. - Total non-interest expenses increased to $107.5 million for Q4 2022 from $86.0 million in Q4 2021, driven by higher salaries, advertising, and professional services[154]. - Non-interest income decreased by $2.5 million to $28.3 million for Q4 2022 compared to Q4 2021, primarily due to lower mortgage banking income and prepayment penalty fee income[152]. Loans and Deposits - The company’s total deposits rose to $15,690,494 thousand as of December 31, 2022, compared to $13,946,422 thousand as of June 30, 2022, representing a 12.5% increase[135]. - Loan originations for investment totaled $2,013,576 thousand for the three months ended December 31, 2022, compared to $2,525,871 thousand for the same period in 2021, reflecting a decrease of 20.2%[137]. - Net loans held for investment rose by 9.8% to $15.5 billion at December 31, 2022, from $14.1 billion at June 30, 2022, due to loan originations of $4.5 billion[189]. - Total deposits rose by $1.7 billion, or 12.5%, to $15.69 billion at December 31, 2022, compared to $13.95 billion at June 30, 2022[198]. Capital and Ratios - The common equity tier 1 capital ratio was 10.55% as of December 31, 2022, up from 9.86% as of June 30, 2022, indicating improved capital strength[135]. - The Tier 1 capital ratio to risk-weighted assets was 10.55% as of December 31, 2022, exceeding the minimum requirement of 6.0%[220]. - The total capital ratio to risk-weighted assets was 13.49% as of December 31, 2022, above the minimum requirement of 10.0%[220]. - The company and Bank met all capital adequacy requirements as of December 31, 2022, and were classified as "well capitalized" under regulatory standards[216]. Interest Rate and Market Risk - The projected net interest income for the next 12 months is expected to increase by 6.5% to $893,723 under a 200 basis point increase scenario[230]. - The net present value of assets is projected to decrease by 5.8% to $1,710,148 under a 200 basis point increase in interest rates[232]. - Interest rate risk is managed by setting limits on the size and duration of positions in the Securities Business[235]. - The company is exposed to market risk through its Securities Business, which includes trading activities and securities lending[233]. Operational Efficiency - The efficiency ratio improved to 47.11% for the three months ended December 31, 2022, down from 48.78% for the same period in 2021, indicating better operational efficiency[137]. - The efficiency ratio for the Banking Business segment increased to 46.05% for the three months ended December 31, 2022, compared to 39.39% for the same period in 2021[171].

Axos Financial, Inc. (NYSE:AX) Q1 2023 Earnings Conference Call October 27, 2022 5:00 PM ET Company Participants Johnny Lai - Corporate Development & Investor Relations Greg Garrabrants - President & Chief Executive Officer Derrick Walsh - Executive Vice President & Chief Financial Officer Andy Micheletti - Executive Vice President of Finance Conference Call Participants Gary Tenner - D.A. Davidson Andrew Liesch - Piper Sandler David Feaster - Raymond James Michael Perito - KBW Edward Hemmelgarn - Shaker In ...