The following tables set forth the Company's financial assets and liabilities measured at fair value on a recurring basis at September 30, 2024 and June 30, 2024. Assets and liabilities are classified in their entirety based on the lowest level of input significant to the fair value measurement: | --- | --- | --- | --- | --- | --- | --- | |-------------------------------------------------------------------------|-------|---------------------------------------------------|-----------|------------------------ ...

Loan Growth and Financial Performance - Axos reported a loan growth of $19.826 billion in Q1 FY25, an increase of $23 million from Q4 FY24[2] - The company completed a purchase of $1.25 billion of loans from the FDIC at a 37% discount on December 7, 2023[4] - Total net loans increased to $19,280,609 thousand from $18,733,455 thousand, representing a growth of 2.85% quarter-over-quarter[18] - Loan originations for sale increased to $69,570 thousand from $52,858 thousand year-over-year, representing a growth of 31.6%[19] - Net interest income for the three months ended September 30, 2024, was $292,048 thousand, an increase from $211,155 thousand in the same period last year, representing a growth of 38.3%[19] - Net income before income taxes was $159,192 thousand, up from $118,156 thousand in the same quarter last year, marking a growth of 34.7%[19] - Adjusted earnings per diluted common share for the quarter was $1.93, compared to $1.38 in the same quarter last year, an increase of 39.9%[20] - The company reported a net interest margin of 4.92% for the quarter, compared to 4.46% in the same quarter last year, indicating an improvement in profitability[19] Credit Quality and Allowance for Losses - The allowance for credit losses (ACL) was $264 million as of September 30, 2024, with a total loan balance of $19.826 billion[12] - Non-accrual loans for multifamily and commercial mortgage were 0.85% and 0.66% respectively as of September 30, 2024[15] - The allowance for credit losses stood at $263,854 thousand, reflecting a slight increase from $260,542 thousand in the prior quarter[18] - Provision for credit losses increased to $14,000 thousand for the quarter, compared to $7,000 thousand in the same quarter of the previous year, indicating a rise of 100%[19] Deposits and Capital - Approximately 90% of deposits are FDIC-insured or collateralized, totaling $19.173 billion as of September 30, 2024[11] - Total deposits rose to $19,973,329 thousand, up 3.16% from $19,359,217 thousand in the previous quarter[18] - The Tier 1 capital ratio to risk-weighted assets remained stable at 11.47%[18] - Axos Securities contributed approximately $450 million of off-balance sheet deposits, enhancing deposit rate optionality[10] Loan Characteristics and Market Presence - As of September 30, 2024, 64% of fixed and hybrid rate loan balances will reprice within 3 years, and 91% will reprice within 5 years[10] - The weighted average loan-to-value (LTV) for residential loans was 61.3% as of September 30, 2024[4] - The company reported a total of $1,912 million in multifamily loans with a weighted average LTV of 40%[7] - The company serves approximately 40% of U.S. Chapter 7 bankruptcy cases, enhancing its market presence[11] Other Financial Metrics - Customer, broker-dealer, and clearing receivables decreased to $262,774 thousand, down from $292,630 thousand, a decline of 10.19%[18] - Common shares outstanding at the end of the period increased to 57,092,216, compared to 56,894,565 in the previous quarter[18] - Securities available-for-sale decreased to $137,996 thousand from $141,611 thousand, a decline of 2.18%[18] - The total stockholders' equity data was not provided, indicating a focus on other financial metrics[18] - The net capital as a percentage of aggregate debit items was not specified, indicating a potential area for further analysis[18] - The company maintained advances from the FHLB at $90,000 thousand, consistent across reporting periods[18] - The weighted average number of diluted common shares outstanding was 58,168,468 for the quarter, slightly up from 58,037,698 in the previous quarter[21] - The efficiency ratio for the quarter was not explicitly stated but is calculated as non-interest expense as a percentage of the aggregate of net interest income and non-interest income[19]

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 17, 2025 $17.50 Put option [1] Group 1: Implied Volatility - Implied volatility indicates the market's expectation of future price movement, with high levels suggesting a potential significant move or an upcoming event that could lead to a rally or sell-off [2] - The current high implied volatility for Axos Financial options may signal a developing trade 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) in the Financial-Miscellaneous Services industry, which is in the top 35% of the Zacks Industry Rank [3] - Over the past 60 days, one analyst has raised their earnings estimate for the current quarter, while another has lowered theirs, resulting in a slight decrease in the Zacks Consensus Estimate from $1.81 to $1.80 per share [3]

Short sellers are market bears that seek to profit from falling stock prices. Some of the more popular short sellers will put out their research reports attempting to expose a target company by implying misconduct or fraud in order to trigger investors to sell their positions. The selling action is supposed to beget more selling as the price falls, enabling the short seller to cover their short position for a profit. However, things don’t always go as planned. The short seller can also encourage more short ...

Needham analyst Kyle Peterson initiated coverage on Axos Financial, Inc. AX with a Buy rating and a price target of $82.00.The analyst writes that, unlike traditional banks, the company avoids a broad branch strategy, enhancing profitability and efficiency while expanding its total addressable market.Importantly, Axos Financial holds a full banking license, which offers stickier and cheaper funding for loans compared to warehouse lines and enables in-house banking products, adds the analyst.The analyst says ...

Have you been searching for a stock that might be well-positioned to maintain its earnings-beat streak in its upcoming report? It is worth considering Axos Financial (AX) , which belongs to the Zacks Financial - Miscellaneous Services industry.This bank holding company has seen a nice streak of beating earnings estimates, especially when looking at the previous two reports. The average surprise for the last two quarters was 7.23%.For the last reported quarter, Axos Financial came out with earnings of $1.83 ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 __________________________________________________________________________________________ FORM 10-K ☒ ANNUAL REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended June 30, 2024 ☐ TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission file number: 001-37709 __________________________________________________________________________________________ AXOS FIN ...

Investment Thesis - Axos Financial has demonstrated strong performance with double-digit earnings and book value growth for the fiscal fourth quarter of 2024, suggesting a premium valuation is warranted compared to the sector median [2][4] - The stock is currently trading at a discount of 8.7x forward earnings, indicating potential for upside [2] Company Overview - Axos Financial is a diversified financial services company with approximately $22.6 billion in assets and $35.0 billion in assets under custody, comprising Axos Bank, Axos Clearing LLC, and Axos Invest [3] - Axos Bank offers consumer and commercial banking products through digital platforms, while Axos Clearing LLC serves as a full-service clearing firm, and Axos Invest provides digital investment advisory services [3] - The company has shown resilience during economically volatile times, with net interest income increasing from $477.6 million to $961.4 million over the past TTM [3] Performance Metrics - The return on average shareholder equity for the last twelve months ended June 30, 2024, was 21.6%, significantly higher than the sector median of 10% [4][5] - Axos Financial achieved a 26% year-over-year growth in tangible book value per share, with total non-performing loans decreasing by $9 million linked quarter [5] Management Quality - The quality of management at Axos Bank is a key factor in its outperformance, demonstrating competence in market trends, loan origination, and deposit management [6] - The capital to risk-weighted assets ratio was 13.80% as of June 30, 2024, indicating strong capital adequacy and prudent risk management [6] Commercial Real Estate (CRE) Loans - Axos Financial's CRE loans are primarily in multifamily properties, with a weighted average loan-to-value (LTV) ratio of 40%, reflecting prudent risk management [7] - The company has reduced exposure to certain CRE sectors, preparing for potential economic downturns, with multifamily loans remaining attractive due to ongoing rental demand [7] Valuation - The estimated fair value of Axos Financial's stock is $90, based on a projected 15% annual growth rate in book value and earnings, applying a premium earnings multiple of 11.5x [8] - The stock is considered remarkably cheap given its strong growth and profitability profile, with management actively buying back shares at a significant discount [8]

For the quarter ended June 2024, Axos Financial (AX) reported revenue of $290.92 million, up 23% over the same period last year. EPS came in at $1.83, compared to $1.50 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $296.02 million, representing a surprise of -1.72%. The company delivered an EPS surprise of +1.67%, with the consensus EPS estimate being $1.80.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how t ...

Financial Data and Key Metrics Changes - The company reported a net income of approximately $105 million for Q4 2024, representing a 20% increase year-over-year [7] - Earnings per share for the three and twelve months ended June 30, 2024, were $1.80 and $7.66, reflecting year-over-year growth of 23% and 51% respectively [7] - The tangible book value per share grew by 26% year-over-year [5] - The net interest margin was 4.65% for Q4 2024, up 46 basis points from 4.19% in Q4 2023, but down from 4.87% in Q3 2024 [6][12] Business Line Data and Key Metrics Changes - Total loan originations for investment were $2.5 billion for Q4 2024, up approximately 11% year-over-year [8] - Ending loan balances increased by 2.7% quarter-over-quarter and 16.9% year-over-year to $19.2 billion [5] - Average loan yields for Q4 2024 were 8.55%, down 10 basis points from the prior quarter but up 104 basis points year-over-year [8] Market Data and Key Metrics Changes - Total deposits increased by $256 million in Q4 2024 and by $2.2 billion for the fiscal year [11] - Non-interest bearing deposits were approximately $3 billion, up $220 million quarter-over-quarter [11] - The company maintained a diverse mix of funding, with consumer and small business deposits representing 62% of total deposits [11] Company Strategy and Development Direction - The company is focused on adding net new assets from existing and new advisors to grow assets under custody and cash balances [12] - Management emphasized the importance of integrating treasury management teams to enhance deposit growth [20] - The company plans to continue evaluating organic and inorganic growth initiatives while remaining opportunistic with capital deployment [15] Management's Comments on Operating Environment and Future Outlook - Management noted that the loan growth outlook remains consistent, expecting high single digits to low teens year-over-year growth [16] - The company anticipates that net interest margin benefits from the FDIC loan purchase will be 30 to 40 basis points for fiscal year 2025 [12] - Management expressed optimism about maintaining net interest margin and returns above long-term targets in fiscal 2025 [15] Other Important Information - Non-performing loans decreased in various segments, with non-performing loans in the commercial specialty real estate portfolio remaining unchanged at approximately $26 million [10] - The company repurchased $13.2 million of common stock in Q4 2024 at an average share price of $48, with approximately $106 million remaining in the authorized share repurchase program [7] Q&A Session Summary Question: Deposit initiatives and success areas - Management discussed investments in treasury management teams and the integration of these teams to enhance deposit growth [20] Question: Trends in funding costs - Management noted a downward trend in funding costs and the ability to cut rates slightly [22] Question: Feedback on UDB rollout and AI opportunities - Management reported positive feedback on the UDB rollout and ongoing efforts to leverage AI for operational improvements [24][25] Question: Broker dealer fee income decline - Management indicated that the decline in broker dealer fee income was likely at a low point and attributed some fluctuations to one-time items [28] Question: Competitive dynamics and regulatory impacts - Management stated that they are not currently seeing significant competitive pressures regarding cash sorting fees [31] Question: Loan growth outlook and repayments - Management acknowledged unexpected loan repayments contributing to excess liquidity but maintained a positive outlook for loan growth [49][51]