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]

Financial Performance - Net income for the quarter ended June 30, 2025, was $110675 thousand[16], or $196 per basic share and $192 per diluted share[16] - Adjusted earnings (Non-GAAP) were $111814 thousand, with adjusted EPS (Non-GAAP) at $194[22] - The company's return on average assets was 185% and return on average common stockholders' equity was 1685%[16] - Net interest margin was 484%, and the efficiency ratio was 4687%[16] Balance Sheet - Total assets as of June 30, 2025, reached $24783078 thousand[13] - Total loans outstanding were $21552 million[3] - Total deposits amounted to $20829543 thousand[13], with approximately 90% of deposits being FDIC-insured or collateralized[4] - The allowance for credit losses was $290049 thousand, representing 136% of total loans held for investment[13, 16] Loan Portfolio - Single Family Mortgage & Warehouse loans totaled $4395 million with an ACL of $12 million (03%)[9] - Multifamily & Commercial Mortgage loans were $2941 million with an ACL of $26 million (09%)[9] - Commercial Real Estate loans amounted to $6937 million with an ACL of $114 million (16%)[9]

Financial Performance - For the three months ended September 30, 2025, net income was $112.352 million, with adjusted earnings of $120.377 million[119]. - The diluted EPS for the same period was $1.94, while the adjusted EPS was $2.07[119]. - Tangible book value per common share increased to $45.22 as of September 30, 2025, compared to $39.22 a year earlier[120]. - Net income for the three months ended September 30, 2025, was $112,352 thousand, slightly up from $112,340 thousand for the same period in 2024, resulting in a diluted earnings per share of $1.94 compared to $1.93[123]. - The effective income tax rate decreased to 25.04% for the three months ended September 30, 2025, from 29.43% in the same period in 2024[137]. Asset and Liability Management - The Company has approximately $27.4 billion in assets and $43.0 billion of assets under custody and/or administration at Axos Clearing LLC[106]. - Total assets increased to $27,431,817 thousand as of September 30, 2025, up from $24,783,078 thousand as of June 30, 2025, and $23,569,084 thousand as of September 30, 2024, representing a year-over-year growth of 16.0%[121]. - Total liabilities increased by $2.5 billion or 11.5% to $24.6 billion at September 30, 2025, mainly due to higher deposit balances and secured financings from the Verdant acquisition[149]. - Stockholders' equity increased by $112.4 million to $2.793 billion at September 30, 2025, driven by net income for the quarter[158]. - The Company and Bank reported Tier 1 capital of $2,587,308, meeting all capital adequacy requirements and classified as "well capitalized" under regulatory standards[173]. Income and Expense Analysis - The Company generated non-interest income from various sources, including fees from loans originated for sale and deposit account service fees[106]. - Non-interest income increased by $3.7 million, or 13.0%, primarily due to higher banking and servicing fee income[134]. - Non-interest expense increased by $8.8 million, or 6.0%, primarily due to higher professional services and data processing expenses[135]. - The provision for credit losses was $17.3 million for the three months ended September 30, 2025, compared to $14.0 million for the same period in 2024[132]. Loan and Deposit Growth - Total deposits rose to $22,264,753 thousand as of September 30, 2025, compared to $20,829,543 thousand as of June 30, 2025, marking an increase of 6.9%[121]. - The company reported a growth in loans held for investment, net, to $1,585,527 thousand for the three months ended September 30, 2025, compared to $49,224 thousand for the same period in 2024, indicating strong loan demand[122]. - Total gross loans reached $23.1 billion at September 30, 2025, up from $21.6 billion at June 30, 2025, with Commercial & Industrial - Non-RE loans increasing to 34.5% of the portfolio[150]. - Total deposits increased by $1.4 billion or 6.9% to $22.3 billion at September 30, 2025, with significant growth in interest-bearing demand and savings accounts[154]. Capital Adequacy and Risk Management - Common equity tier 1 capital to risk-weighted assets was 11.66% as of September 30, 2025, down from 12.52% as of June 30, 2025, reflecting changes in capital adequacy ratios[121]. - The Company and Bank's common equity tier 1 capital ratio to risk-weighted assets was 11.66% as of September 30, 2025, exceeding the minimum requirement of 4.5%[170]. - The Company may need to raise additional capital to support further growth and maintain its "well capitalized" status[170]. - The Company and Bank were in compliance with the capital conservation buffer requirement, with minimums set at 7.0%, 8.5%, and 10.5% for common equity tier 1, tier 1, and total risk-based capital ratios, respectively[174]. Interest Rate Sensitivity - The sensitivity of net interest income to a 200 basis points increase is projected to be a 6.7% change in the first 12 months and 12.5% in the next 12 months[182]. - A 100 basis points increase in interest rates is expected to result in a 3.5% change in net interest income for the first 12 months and 6.2% for the next 12 months[182]. - The market value of equity (MVE) is projected to increase by 4.7% with a 200 basis points rise in interest rates[183]. - A 100 basis points increase in interest rates is expected to lead to a 3.2% increase in MVE[183]. Business Segments Overview - The Banking Business Segment focuses on online banking, mortgage, vehicle, and unsecured lending, serving consumers and small businesses nationwide[113]. - The Securities Business Segment includes clearing broker-dealer and registered investment advisor custody businesses, offering products to both independent customers and Banking Business Segment clients[114]. - The Banking Business Segment's net interest income decreased by $1.3 million, or 0.4%, compared to the same period in 2024[141]. - The Securities Business Segment's net interest income increased by $0.9 million, or 12.8%, compared to the same period in 2024[146]. Credit and Interest Rate Risk - Credit risk in the Securities Business Segment arises from potential non-performance by counterparties, customers, or issuers of securities[187]. - The company conducts periodic credit reviews and monitors position limits for each counterparty to manage credit risk[188]. - Collateral for margin loans and securities lending activities is marked to market daily, with adjustments made as necessary[188]. - The Securities Business Segment is primarily exposed to interest rate risk from interest-earning assets and funding sources, including customer and correspondent cash balances[185].