Employment and Human Capital - As of June 30, 2025, the Company had 1,989 full-time employees, with no labor union representation[42]. - The Company’s human capital management objectives include attracting and retaining high-quality talent through competitive pay and benefits[43]. Regulatory Compliance and Oversight - The Company is subject to comprehensive regulation under state and federal laws, primarily for customer protection and financial system stability[47]. - The Bank is subject to extensive regulation and examination by the OCC, FDIC, and CFPB regarding federal consumer financial laws[62]. - The Bank is required to maintain sufficient liquidity to ensure safe and sound operations and was in compliance with the applicable liquidity standard as of June 30, 2025[72]. - The Bank's ability to make capital distributions, such as cash dividends, is limited by OCC regulations[75]. - The Bank is subject to the Bank Secrecy Act and anti-money laundering laws, requiring the establishment of a risk-based system of internal controls[83][84]. - The Bank's authority to engage in transactions with affiliates is limited by federal law, with aggregate amounts restricted to 20% of the institution's capital and surplus[73]. - Compliance with the Advisers Act imposes fiduciary duties and various obligations on the investment advisory business, with potential enforcement proceedings for violations[90]. - Significant new rules from the SEC and the Dodd-Frank Act may increase operational costs and affect financial institutions' interactions with Axos Financial[91]. Financial Performance and Capital Management - The Company’s capital ratios exceeded the minimums necessary to be considered "well-capitalized" under regulatory requirements as of June 30, 2025[57]. - Axos Bank's total assets reached $23.9 billion as of June 30, 2025, placing it under the direct supervision of the CFPB[81]. - The Bank's regulatory capital exceeded all minimum regulatory capital requirements as of June 30, 2025, with a tangible capital standard of at least 1.5% of total average adjusted assets[69][68]. - The total liabilities and equity stood at $23,988,748, with stockholders' equity amounting to $2,614,202[312]. Business Operations and Services - The Securities Business Segment provided services to 327 financial organizations, including correspondent broker-dealers and RIAs as of June 30, 2025[34]. - The Company generates deposits through various channels, including advertisements and partnerships, aiming for greater scalability than traditional branch models[33]. - Axos Clearing offers fully disclosed clearing services and margin loans, contributing to both fee and interest income for the Securities Business Segment[35][38]. - The Company undertakes acquisitions consistent with its growth strategies, although specific details on recent transactions were not provided[40]. - Axos Financial's broker-dealers are in compliance with applicable net capital requirements as of June 30, 2025[94]. Risk Management - The Company manages credit risk in its non-agency securities by assessing historic credit performance and enhancements like subordination and over-collateralization[32]. - The Company employs risk management strategies by setting limits on the size and duration of securities positions to mitigate interest rate risk[318]. - The Company actively manages credit risk through position limits and periodic credit reviews of counterparties in its Securities Business Segment[319]. Interest Rate Risk - The primary market risk faced by Axos Financial is interest rate risk, which affects net interest income, net interest margin, and the value of the securities portfolio[302]. - Interest rate sensitivity is measured as the difference between interest-earning assets and interest-bearing liabilities that mature or reprice within a given period[309]. - A positive interest rate sensitivity gap indicates that interest rate sensitive assets exceed liabilities, which is favorable in a rising interest rate environment[310]. - The net interest rate sensitivity gap was $5,237,424, with a cumulative gap of 22.61% of total interest-earning assets[312]. - A 200 basis points increase in interest rates is projected to result in an 8.4% increase in net interest income over the first 12 months[314]. - The company anticipates a 3.8% increase in market value of equity (MVE) with a 200 basis points rise in interest rates[315]. - The Securities Business Segment is primarily exposed to interest rate risk from margin loans and securities borrowing activities[316]. - As of June 30, 2025, adjustable rate loans had lifetime rate caps that were 519 basis points greater than their current stated note rates[307]. - Interest-bearing deposits totaled $17,862,866, indicating a strong funding base for the banking operations[312].

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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]

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 [6][7] 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 [8] - Average loan yields for the quarter were 8% flat, with non-purchased loans at 7.66% and purchased loans at 14.9% [8] - Total non-accrual loans declined by $15 million linked quarter, improving the non-accrual loans to total loans ratio from 79 basis points to 71 basis points [6][12] 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 [9][10] - 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 [14][15] 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 [19] - The implementation of artificial intelligence is expected to improve operating efficiency and accelerate new product delivery [19] - 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 [17][20] 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 [12] - The credit quality of the loan book remains solid, with historic and current net charge-offs remaining low [12] - The change in income tax calculation methodology in California is expected to reduce the income tax rate by three percentage points starting in Q4 2025, boosting net income and EPS in fiscal 2026 and beyond [18][24] Other Important Information - The company repurchased approximately $31 million of common stock at an average price of $59 per share during a temporary market downturn [7] - The company has a healthy loan pipeline of approximately $2 billion as of July 25, 2025, with various categories contributing to growth [26] Q&A Session Summary Question: Loan yields and net interest margin outlook - Management indicated that while loan yields might be tighter, there are offsetting benefits on the funding side, resulting in a consistent net interest margin outlook [30][31] 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, while leveraging AI to improve efficiency [34][39] Question: Funding side opportunities and pricing competition - Management noted that funding costs may increase with accelerated loan growth, but the Axos One product is performing well, potentially mitigating some pressure [48] Question: Capital priorities and M&A opportunities - Management is looking at various M&A opportunities, particularly in fee income and specialty finance businesses, while maintaining a focus on organic loan growth [56][57] Question: Multifamily loan sale reasoning - The sale was driven by favorable credit perspectives and interest from good buyers, resulting in a gain [61] Question: Asset quality and areas of concern - Management expressed confidence in the commercial real estate and C&I sides, with no significant material concerns noted [80]

Financial Performance - Net income for the quarter ended June 30, 2025, was $110.675 million[16] - Adjusted earnings for the same period were $111.814 million[22], or $1.94 per diluted share[22] - Total assets reached $24.783 billion[13] - Total deposits amounted to $20.829 billion[13] - The company's return on average assets was 1.85%[16], and return on average common stockholders' equity was 16.85%[16] Loan Portfolio - Total loans outstanding reached $21.552 billion[3, 9, 11] - Single Family Mortgage & Warehouse loans totaled $4.395 billion[9, 11] with an ACL of $12 million[9] - Multifamily & Commercial Mortgage loans amounted to $2.941 billion[9, 11] with an ACL of $26 million[9] - Commercial Real Estate loans were $6.937 billion[9, 11] with an ACL of $114 million[9] - Commercial & Industrial Non-RE loans reached $6.796 billion[9, 11] with an ACL of $122 million[9] Credit Quality - The allowance for credit losses (ACL) was $290.049 million as of June 30, 2025[13] - Non-accrual loans represented 0.79% of total loans[16]

[Report Overview](index=1&type=section&id=Report%20Overview) This document is the Axos Q4 Fiscal 2025 Earnings Supplement, released on July 30, 2025 - This document is the Axos Q4 Fiscal 2025 Earnings Supplement, released on July 30, 2025[1](index=1&type=chunk) [Loan Portfolio & Asset Quality](index=2&type=section&id=Loan%20Portfolio%20%26%20Asset%20Quality) This section analyzes the company's loan portfolio growth, credit loss allowances, and overall credit quality across various loan categories [Loan Growth by Category](index=2&type=section&id=Loan%20Growth%20by%20Category) The company's loan portfolio shows changes across various categories from Q2 FY25 to Q4 FY25, with specific figures for single-family mortgage, multi-family and commercial mortgage, commercial real estate, commercial & industrial, and auto & consumer loans Loan Growth by Category (Q2 FY25 to Q4 FY25, $ millions) | Loan Category | Q2 FY25 ($ millions) | Q3 FY25 ($ millions) | Q4 FY25 ($ millions) | Q3-Q4 FY25 Change ($ millions) | | :-------------------------------- | :------------------- | :------------------- | :------------------- | :----------------------------- | | Single Family Mortgage | 3,863 | 3,698 | 3,977 | 279 | | Multi-family & Commercial Mortgage | 1,729 | 2,059 | 2,330 | 271 | | Commercial Real Estate | 1,212 | 1,281 | 1,269 | (69) | | Commercial & Industrial - Non-RE | 2,567 | 2,519 | 2,633 | 316 | | Auto & Consumer | 430 | 400 | 400 | 30 | | Total Loans | 20,298 | 21,557 | 22,823 | 1,557 | [Allowance for Credit Losses (ACL) & Unfunded Loan Commitments Reserve (UCL)](index=4&type=section&id=Allowance%20for%20Credit%20Losses%20(ACL)%20%26%20Unfunded%20Loan%20Commitments%20Reserve%20(UCL)) This section details the changes in the Allowance for Credit Losses (ACL) and Unfunded Loan Commitments Reserve (UCL), and provides a breakdown of ACL by loan category as of June 30, 2025 [Change in ACL & UCL](index=4&type=section&id=Change%20in%20ACL%20%26%20UCL) The combined Allowance for Credit Losses (ACL) and Unfunded Loan Commitments Reserve (UCL) experienced a **$9.0 million decrease** - The combined Allowance for Credit Losses (ACL) and Unfunded Loan Commitments Reserve (UCL) experienced a change of **($9.0 million)**[7](index=7&type=chunk) [ACL by Loan Category](index=5&type=section&id=ACL%20by%20Loan%20Category) As of June 30, 2025, the Allowance for Credit Losses (ACL) is distributed across various loan categories, with specific percentages and amounts allocated to single-family mortgage, multi-family and commercial mortgage, commercial real estate, commercial & industrial, and auto & consumer loans Allowance for Credit Losses (ACL) by Loan Category (as of June 30, 2025, $ millions) | Loan Category | ACL ($ millions) | % of Loan Balance | | :-------------------------------- | :--------------- | :---------------- | | Single Family Mortgage | 439 | 51.20% | | Multi-family & Commercial Mortgage | 41 | 4.71% | | Commercial Real Estate | 69 | 6.93% | | Commercial & Industrial - Non-RE | 69 | 6.12% | | Auto & Consumer | 48 | 3.16% | | Total | 215 | 55.22% | [Credit Quality Overview](index=6&type=section&id=Credit%20Quality%20Overview) This section provides a snapshot of credit quality, detailing loans outstanding and non-accrual loans across various categories for June 30, 2025, March 31, 2025, and June 30, 2024 Credit Quality ($ millions) | Loan Category | Loans O/S (Jun 30, 2025) | Non-Accrual Loans (Jun 30, 2025) | % Non-Accrual (Jun 30, 2025) | Loans O/S (Mar 31, 2025) | Non-Accrual Loans (Mar 31, 2025) | % Non-Accrual (Mar 31, 2025) | Loans O/S (Jun 30, 2024) | Non-Accrual Loans (Jun 30, 2024) | % Non-Accrual (Jun 30, 2024) | | :-------------------------------- | :----------------------- | :--------------------------- | :--------------------------- | :----------------------- | :--------------------------- | :--------------------------- | :----------------------- | :--------------------------- | :--------------------------- | | Single Family Mortgage | 3,954 | 44 | 1.00% | 4,195 | 44 | 1.05% | 4,179 | 46 | 1.10% | | Multi-family & Commercial Mortgage | 2,941 | 33 | 1.12% | 3,341 | 34 | 1.02% | 3,862 | 35 | 0.91% | | Commercial Real Estate | 6,937 | 29 | 0.42% | 6,356 | 34 | 0.53% | 6,089 | 26 | 0.43% | | Commercial & Industrial - Non-RE | 796 | 6 | 0.91% | 790 | 7 | 1.11% | 5,241 | 4 | 0.08% | | Auto & Consumer | 483 | 2 | 0.41% | 447 | 2 | 0.45% | 432 | 2 | 0.47% | | Total | 25,521 | 170 | 0.79% | 27,290 | 185 | 0.89% | 19,803 | 113 | 0.57% | [Deposit Gathering & Business Lines](index=3&type=section&id=Deposit%20Gathering%20%26%20Business%20Lines) This section examines Axos's diversified deposit sources and strategic business lines, highlighting deposit safety and market reach [Diversified Deposit Gathering Sources](index=3&type=section&id=Diversified%20Deposit%20Gathering%20Sources) Axos maintains a diversified deposit base, with a significant portion being FDIC-insured or collateralized, sourced from various business lines including Fiduciary Services, Consumer Direct, Specialty Deposits, and Commercial & Treasury Management - Approximately **90%** of Axos's deposits are FDIC-insured or collateralized, indicating strong deposit safety[3](index=3&type=chunk) Diversified Deposit Gathering Business Lines (as of Q4 FY25, $ billions) | Business Line | Deposits ($ billions) | | :-------------------------------- | :-------------------- | | Fiduciary Services | 1.1 | | Consumer Direct | 11.6 | | Specialty Deposits | 2.2 | | Distribution Partners | 0.4 | | Axos Securities | 1.0 | | Small Business Banking | 0.6 | | Commercial & Treasury Management | 3.9 | - Axos serves approximately **40%** of U.S. Chapter 7 bankruptcy trustees through exclusive relationships and offers full-service digital banking, wealth management, and securities trading[4](index=4&type=chunk) - The company focuses on bank and securities cross-sell strategies to enhance business[5](index=5&type=chunk) [Selected Financial Information](index=7&type=section&id=Selected%20Financial%20Information) This section presents key financial data, including balance sheet, capital ratios, income statement, and performance ratios, across multiple reporting periods [Balance Sheet Highlights](index=7&type=section&id=Balance%20Sheet%20Highlights) As of June 30, 2025, Axos Financial's balance sheet highlights total assets, loans, deposits, and stockholders' equity across several quarters Selected Balance Sheet Data ($ thousands) | Metric | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | | :-------------------------------- | :----------- | :----------- | :----------- | :----------- | :----------- | | Total Assets | 24,783,078 | 23,981,154 | 23,709,422 | 23,569,084 | 22,855,334 | | Loans, net of ACL | 21,049,610 | 20,193,630 | 19,486,720 | 19,280,609 | 19,231,380 | | Total Deposits | 20,829,543 | 20,136,714 | 19,934,904 | 19,973,329 | 19,359,217 | | Total Stockholders' Equity | 2,680,677 | 2,603,900 | 2,521,962 | 2,407,280 | 2,290,596 | [Capital Ratios](index=7&type=section&id=Capital%20Ratios) Axos Financial maintains robust capital ratios, with Common Equity Tier 1, Tier 1 Capital, and Total Capital ratios consistently above regulatory minimums for both the company and Axos Bank Capital Ratios (%) | Capital Ratio | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | | :-------------------------------- | :----------- | :----------- | :----------- | :----------- | :----------- | | Axos Financial, Inc.: | | | | | | | Common Equity Tier 1 (average assets) | 10.82% | 10.86% | 10.64% | 10.21% | 10.02% | | Tier 1 Capital (average assets) | 10.72% | 10.45% | 10.02% | 9.78% | 9.43% | | Common Equity Tier 1 (risk-weighted assets) | 12.51% | 12.39% | 12.42% | 12.44% | 12.01% | | Tier 1 Capital (risk-weighted assets) | 12.51% | 12.39% | 12.42% | 12.44% | 12.01% | | Total Capital (risk-weighted assets) | 15.39% | 15.21% | 15.23% | 15.29% | 14.84% | | Axos Bank: | | | | | | | Common Equity Tier 1 (average assets) | 10.24% | 10.14% | 9.85% | 9.82% | 9.74% | | Common Equity Tier 1 (risk-weighted assets) | 12.45% | 12.31% | 12.67% | 12.87% | 12.74% | | Total Capital (risk-weighted assets) | 13.74% | 13.49% | 13.86% | 14.06% | 13.81% | [Income Statement Highlights](index=8&type=section&id=Income%20Statement%20Highlights) For the three months ended June 30, 2025, Axos Financial reported net interest income, provision for credit losses, non-interest income, and net income, along with basic and diluted EPS Selected Income Statement Data ($ thousands) | Metric | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | | :-------------------------------- | :----------- | :----------- | :----------- | :----------- | :----------- | | Interest income | 442,413 | 432,722 | 456,068 | 484,262 | 453,428 | | Interest expense | 162,252 | 157,258 | 175,969 | 192,214 | 193,366 | | Net interest income | 280,161 | 275,464 | 280,099 | 292,048 | 260,062 | | Provision for credit losses | 14,997 | 14,500 | 12,248 | 14,000 | 6,000 | | Net interest income after provision | 265,164 | 260,964 | 267,851 | 278,048 | 254,062 | | Non-interest income | 41,285 | 33,373 | 27,799 | 28,609 | 30,861 | | Non-interest expense | 150,652 | 146,261 | 143,200 | 144,610 | 140,530 | | Income tax expense | 45,122 | 42,870 | 45,643 | 46,852 | 39,516 | | Net income | 110,675 | 105,206 | 104,687 | 112,340 | 104,872 | | Basic EPS | 1.96 | 1.84 | 1.83 | 1.97 | 1.84 | | Diluted EPS | 1.92 | 1.81 | 1.80 | 1.93 | 1.80 | [Performance Ratios](index=8&type=section&id=Performance%20Ratios) Key performance indicators for Axos Financial include return on average assets, return on average common stockholders' equity, interest rate spread, net interest margin, and efficiency ratios for both the company and its banking segment Selected Performance Ratios (%) | Metric | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | | :-------------------------------- | :----------- | :----------- | :----------- | :----------- | :----------- | | Return on average assets | 1.85% | 1.77% | 1.74% | 1.92% | 1.81% | | Return on average common stockholders' equity | 16.85% | 16.44% | 16.97% | 19.12% | 18.81% | | Interest rate spread | 3.97% | 3.91% | 3.91% | 4.13% | 3.63% | | Net interest margin | 4.84% | 4.78% | 4.83% | 5.10% | 4.68% | | Efficiency ratio | 46.87% | 47.36% | 47.20% | 45.99% | 48.31% | | Banking Business Segment – Efficiency ratio | 40.94% | 41.53% | 40.95% | 39.83% | 41.39% | | Net annualized charge-offs to average loans | 0.16% | 0.09% | 0.10% | 0.11% | 0.09% | | Non-accrual loans to total loans | 0.79% | 0.89% | 1.26% | 0.89% | 0.57% | | Non-performing assets to total assets | 0.71% | 0.79% | 1.06% | 0.75% | 0.51% | | Allowance for credit losses to total loans | 1.36% | 1.39% | 1.39% | 1.39% | 1.34% | | Allowance for credit losses to non-accrual loans | 170.23% | 151.28% | 108.75% | 149.32% | 229.84% | - The decrease in the Allowance for credit losses - loans to nonaccrual loans is primarily attributable to the change in nonaccrual loans[16](index=16&type=chunk) [Non-GAAP Financial Measures](index=9&type=section&id=Non-GAAP%20Financial%20Measures) This section reconciles non-GAAP financial measures, including adjusted earnings, adjusted EPS, and tangible book value, to their most directly comparable GAAP measures [Adjusted Earnings & EPS Reconciliation](index=9&type=section&id=Adjusted%20Earnings%20%26%20EPS%20Reconciliation) Adjusted earnings and adjusted EPS are non-GAAP measures that exclude the after-tax impact of non-recurring acquisition-related costs and other unusual charges, providing a clearer view of core operating performance - Adjusted earnings are defined as net income excluding the after-tax impact of non-recurring acquisition-related costs and other unusual or non-recurring charges[19](index=19&type=chunk) - Adjusted EPS is calculated by dividing non-GAAP adjusted earnings by the average number of diluted common shares outstanding[19](index=19&type=chunk) Adjusted Earnings & EPS Reconciliation ($ thousands, except per share data) | Metric | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | | :-------------------------------- | :----------- | :----------- | :----------- | :----------- | :----------- | | Net income (GAAP) | 110,675 | 105,206 | 104,687 | 112,340 | 104,872 | | Acquisition-related costs | 1,604 | 1,604 | 1,645 | 2,554 | 2,554 | | Other costs | (1,879) | — | — | — | — | | Income tax effects | (46) | 80 | (503) | (2) | (699) | | Adjusted earnings (Non-GAAP) | 111,814 | 105,011 | 105,829 | 114,142 | 106,727 | | Diluted EPS (GAAP) | 1.92 | 1.81 | 1.80 | 1.93 | 1.80 | | Acquisition-related costs per share | 0.03 | 0.03 | 0.03 | 0.04 | 0.04 | | Other costs per share | (0.03) | — | — | — | — | | Income tax effects per share | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 | | Adjusted EPS (Non-GAAP) | 1.94 | 1.81 | 1.82 | 1.96 | 1.83 | [Tangible Book Value Reconciliation](index=9&type=section&id=Tangible%20Book%20Value%20Reconciliation) Tangible book value is a non-GAAP measure used to assess capital strength, calculated by adjusting common stockholders' equity for goodwill and other intangible assets - Tangible book value is defined as common stockholders' equity minus servicing rights, goodwill, and other intangible assets, providing insight into capital strength[21](index=21&type=chunk) Tangible Book Value Reconciliation ($ thousands, except per share data) | Metric | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | | :-------------------------------- | :----------- | :----------- | :----------- | :----------- | :----------- | | Common stockholders' equity (GAAP) | 2,680,677 | 2,603,900 | 2,521,962 | 2,405,728 | 2,290,596 | | Less: Servicing rights, carried at fair value | 27,218 | 27,585 | 28,045 | 27,335 | 28,924 | | Less: Goodwill and other intangible assets | 134,502 | 135,966 | 137,570 | 139,215 | 141,769 | | Tangible book value (Non-GAAP) | 2,518,957 | 2,440,349 | 2,356,347 | 2,239,178 | 2,119,903 | | Book value per common share (GAAP) | 47.46 | 45.79 | 44.17 | 42.14 | 40.26 | | Less: Servicing rights per common share | 0.48 | 0.49 | 0.49 | 0.48 | 0.51 | | Less: Goodwill and other intangible assets per share | 2.38 | 2.39 | 2.41 | 2.44 | 2.49 | | Tangible book value per common share (Non-GAAP) | 44.60 | 42.91 | 41.27 | 39.22 | 37.26 | [Investor Relations](index=10&type=section&id=Investor%20Relations) This section provides contact information for key investor relations personnel and general investor inquiries - Key investor relations contacts are Greg Garrabrants (President and CEO), Derrick Walsh (EVP and CFO), and Johnny Lai (SVP Corporate Development and Investor Relations)[23](index=23&type=chunk) - For investor inquiries, contact investors@axosfinancial.com or jlai@axosfinancial.com, or call **858.649.2218**[23](index=23&type=chunk)

Group 1: Company Performance - Axos Financial (AX) has returned 21.3% year-to-date, outperforming the average gain of 11.2% in the Finance sector [4] - The Zacks Consensus Estimate for Axos Financial's full-year earnings has increased by 5.8% over the past 90 days, indicating improved analyst sentiment [4] - Axos Financial belongs to the Financial - Miscellaneous Services industry, which has gained about 8.2% this year, showing that AX is performing better than its industry peers [6] Group 2: Industry Context - The Finance sector, which includes 869 individual stocks, is currently ranked 2 in the Zacks Sector Rank [2] - The Financial - Miscellaneous Services industry, where Axos Financial operates, is ranked 93 out of 16 groups in the Zacks Industry Rank [6] - Peakstone Realty Trust (PKST), another Finance stock, has returned 24.6% year-to-date and has a Zacks Rank of 1 (Strong Buy) [5]