ATLANTA, June 05, 2024 (GLOBE NEWSWIRE) -- Holzer & Holzer, LLC is investigating whether Axos Financial, Inc. ("Axos Financial" or the "Company") (NYSE:AX) complied with federal securities laws. On June 4, 2024, Hindenburg Research published a report alleging, among other things, that Axos Financial's "rosy-looking credit metrics show signs of manipulation or distortion." Following this news, the price of the Company's stock dropped. If you purchased Axos Financial stock and suffered a loss on that investme ...

ATLANTA, June 05, 2024 (GLOBE NEWSWIRE) -- Holzer & Holzer, LLC is investigating whether Axos Financial, Inc. (“Axos Financial” or the “Company”) (NYSE: AX) complied with federal securities laws. On June 4, 2024, Hindenburg Research published a report alleging, among other things, that Axos Financial’s “rosy-looking credit metrics show signs of manipulation or distortion.” Following this news, the price of the Company’s stock dropped. If you purchased Axos Financial stock and suffered a loss on that investm ...

SAN FRANCISCO, June 04, 2024 (GLOBE NEWSWIRE) -- Hagens Berman urges Axos Financial, Inc. (NYSE: AX) investors who suffered substantial losses to submit your losses now. Visit: www.hbsslaw.com/investor-fraud/ax Contact the Firm Now: AX@hbsslaw.com                                      844-916-0895 Axos Financial, Inc. (AX) Investigation: Activist short seller Hindenburg Research has taken aim at Axos Financial (NYSE: AX), alleging the San Diego-based regional bank has concealed known risks about its lending ...

Financial Data and Key Metrics Changes - The company reported net income of $111 million and diluted earnings per share of $1.91 for Q3 2024, representing year-over-year growth of 38.7% and 45% respectively [7] - Tangible book value per share increased to $35.46, up 27% from the previous year [7] - Net interest margin was 4.87%, up 32 basis points from the previous quarter and up 45 basis points year-over-year [8][19] Business Line Data and Key Metrics Changes - Ending loans for investment were $18.7 billion, up 2.6% linked quarter and 10.4% annualized, with growth in non-real estate lender finance and single-family warehouse [7] - Average loan yield increased to 8.65%, up 47 basis points from the prior quarter and 158 basis points year-over-year [11] - Non-interest income, excluding one-time gains, was up 4.5% from Q2 to Q3 due to higher mortgage banking income [9] Market Data and Key Metrics Changes - Deposits grew by approximately $900 million linked quarter, representing a 20% annualized growth rate [18] - Total assets under custody increased to $35 billion, up from $34.4 billion at the end of the previous quarter [26] - Non-performing loans in the commercial specialty real estate portfolio remained stable at approximately $26 million [15] Company Strategy and Development Direction - The company aims to transition its small business banking platform to a universal digital bank, enhancing user experience and operational efficiency [23][24] - There is a focus on adding new assets from existing and new advisors to grow assets under custody and cash balances [21] - The company is exploring acquisition opportunities in various business lines as banks pare back operations [38] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining loan growth despite economic uncertainties, with a solid loan pipeline of $1.7 billion [30] - The company remains well-positioned to outperform peers in loan, deposit, and earnings growth, supported by strong liquidity and capital ratios [27] - Management acknowledged potential margin compression in commercial specialty real estate but expects to continue loan growth at organic margins [40] Other Important Information - Non-interest expenses increased by $11.3 million linked quarter due to seasonal payroll increases and higher FDIC insurance expenses [22] - The company has successfully onboarded new leaders in commercial deposits and lending, which is expected to diversify and grow the business [22] Q&A Session Summary Question: Hiring pipeline and focus areas - Management indicated a stable hiring environment with a focus on recruiting deposit talent, expecting personnel expense increases to moderate [33] Question: Capital priorities and buybacks - Management noted that while the stock price is low relative to earnings, they are open to buybacks but also focused on organic growth and acquisition opportunities [36] Question: M&A opportunities - Management is actively looking for opportunities in business lines where banks are exiting, including insurance premium finance [38] Question: Deposit growth and funding - Management highlighted strong performance in commercial lines and cross-selling efforts that help offset deposit costs [44] Question: Loan repayment expectations - Management expects turnover in certain loan categories due to high rates but remains confident in the diversity of the loan origination platform [56] Question: Fee income growth in securities business - Management acknowledged challenges in the securities business due to client attrition but is optimistic about future growth with new advisor acquisitions [66]

Axos Financial (AX) reported $294.77 million in revenue for the quarter ended March 2024, representing a year-over-year increase of 27.5%. EPS of $1.94 for the same period compares to $1.35 a year ago.The reported revenue compares to the Zacks Consensus Estimate of $277.85 million, representing a surprise of +6.09%. The company delivered an EPS surprise of +12.79%, with the consensus EPS estimate being $1.72.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wal ...

Axos Financial (AX) came out with quarterly earnings of $1.94 per share, beating the Zacks Consensus Estimate of $1.72 per share. This compares to earnings of $1.35 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 12.79%. A quarter ago, it was expected that this bank holding company would post earnings of $1.39 per share when it actually produced earnings of $1.60, delivering a surprise of 15.11%.Over the last four quarters, th ...

Financial Performance - The company reported net income of $110.72 million for the three months ended March 31, 2024, compared to $79.85 million for the same period in 2023, representing a 38.7% increase[155]. - Adjusted earnings for the same period were $112.66 million, up from $81.83 million year-over-year, indicating a growth of 37.7%[155]. - The diluted earnings per share (EPS) increased to $1.91 from $1.32, reflecting a growth of 44.7%[155]. - For the three months ended March 31, 2024, net income was $110.7 million, or $1.91 per diluted share, compared to $79.9 million, or $1.32 per diluted share for the same period in 2023, representing a 38.5% increase in net income[160]. - For the nine months ended March 31, 2024, net income was $345.1 million, or $5.88 per diluted share, compared to $219.8 million, or $3.63 per diluted share for the same period in 2023, reflecting a 57.0% increase in net income[160]. Asset and Equity Growth - Total assets increased to $22,642.1 million as of March 31, 2024, up from $20,348.5 million as of June 30, 2023, marking a growth of 11.3%[157]. - Common stockholders' equity rose to $2.20 billion from $1.84 billion year-over-year, an increase of 19.2%[156]. - Tangible book value per common share increased to $35.46 as of March 31, 2024, compared to $28.03 in the previous year, marking a 26.6% increase[156]. - Stockholders' equity rose to $2,138,241 thousand, compared to $1,833,432 thousand a year earlier, reflecting an increase of 16.6%[162]. Loan and Deposit Growth - Loans, net of allowance for credit losses, rose to $18,733.5 million as of March 31, 2024, compared to $16,456.7 million as of June 30, 2023, indicating a 13.8% increase[157]. - Total deposits increased to $19,103.5 million as of March 31, 2024, up from $17,123.1 million as of June 30, 2023, representing an increase of 11.6%[157]. - Total loans increased to $18.7 billion as of March 31, 2024, from $16.5 billion at June 30, 2023, reflecting a growth of 13.7%[206]. - Total deposits increased by $2.0 billion, or 11.6%, to $19.1 billion at March 31, 2024, from $17.1 billion at June 30, 2023[214]. Income and Expense Analysis - Net interest income for the three months ended March 31, 2024, was $261.6 million, compared to $199.0 million for the same period in 2023, a rise of 31.3%[159]. - Non-interest income for the three months ended March 31, 2024, was $33.2 million, compared to $32.2 million for the same period in 2023, showing a slight increase of 3.0%[159]. - Total interest and dividend income increased by 44.3% for the three months ended March 31, 2024, primarily due to a $125.4 million increase in interest income from loans[169]. - Total interest expense increased by 67.9% for the three months ended March 31, 2024, primarily due to a $75.5 million increase in interest expense from demand and savings deposits[170]. - Total non-interest expense increased by $22.2 million, or 20.0%, for the three months ended March 31, 2024, primarily due to increases in salaries and related costs[178]. Efficiency and Profitability Metrics - The efficiency ratio improved to 45.20% for the three months ended March 31, 2024, compared to 48.02% for the same period in 2023, indicating enhanced operational efficiency[159]. - The return on average common stockholders' equity was 20.71% for the three months ended March 31, 2024, compared to 17.42% for the same period in 2023, indicating improved profitability[159]. - The net interest margin improved to 4.87% for the three months ended March 31, 2024, compared to 4.42% for the same period in 2023, showing an increase of 10.2%[162]. Capital Adequacy and Regulatory Compliance - The common equity tier 1 capital ratio increased to 11.47% as of March 31, 2024, compared to 10.94% as of June 30, 2023, reflecting a stronger capital position[157]. - The Company and Bank met all capital adequacy requirements as of March 31, 2024, and were classified as "well capitalized" under regulatory standards[229]. - Tier 1 capital to adjusted average assets ratio was 9.33% as of March 31, 2024, exceeding the minimum requirement of 4.0%[232]. - Common equity tier 1 capital to risk-weighted assets ratio was 11.47% as of March 31, 2024, above the minimum requirement of 4.5%[232]. - Total capital to risk-weighted assets ratio was 14.26% as of March 31, 2024, surpassing the minimum requirement of 8.0%[232]. Risk Management - The company is managing interest rate risk by setting limits on the size and duration of positions in its securities business[246]. - The securities business is exposed to market risk due to fluctuations in interest rates and market prices, which could impact financial instrument values[245]. - The company conducts periodic credit reviews of counterparties to manage credit risk in its securities business[247]. Cash Flow and Investment Activities - Net cash inflows from operating activities for the nine months ended March 31, 2024, were $261.7 million, up from $119.2 million for the same period in 2023, representing a 119% increase[221]. - Net cash outflows from investing activities totaled $2,155.3 million for the nine months ended March 31, 2024, compared to $1,808.0 million for the same period in 2023, indicating a 19.2% increase in outflows[222]. - Net cash inflows from financing activities were $1,857.5 million for the nine months ended March 31, 2024, down from $2,618.3 million in the same period of 2023, reflecting a decrease of 29.1%[222].

Axos Q3 Fiscal 2024 Earnings Supplement April 30, 2024 NYSE: AX Loan Growth by Category for Second Quarter Ended March 31, 2024 $ Millions $ 19,317 $ 18,860 $ 457 Q3 FY24 Q2 FY24 Inc (Dec) | --- | --- | --- | --- | --- | --- | --- | --- | --- | |-------|--------------------------------|--------------------------------------|-------|-------|-------|-------|-------|-------| | | | | | | | | | | | | | | | | | | | | | | Single Family Mortgage & | Jumbo Mortgage | $ | 3,964 | $ | 3,993 | $ | (29) | | | Warehouse ...

Core Viewpoint - Axos Financial, Inc. is a diversified financial services company with strong growth potential, solid solvency, and liquidity, making it an attractive investment opportunity at its current price [1]. Business & Portfolio - Axos has $21.6 billion in assets, $18.2 billion in deposits, and a market cap of $2.95 billion [2]. - The loan portfolio generates 69% of total revenue, with 75.8% being commercial loans and 77.74% of those being real estate loans [3]. - Key markets for real estate loans include California (41.3%), New York (25.2%), and Florida (8%) [3]. - Management aims for a return on equity (ROE) of 17% or better, 12% annual growth in interest-earning assets, and an efficiency ratio of 40% or lower [3]. Performance - The loan portfolio yield increased to 8.18%, net interest income rose to $215.1 million (9.24% increase), and interest revenue reached $394.6 million (41.15% increase) [6]. - The efficiency ratio improved to 30.96%, and tangible book value increased by 25% to $33.45 per share [6]. - The company repurchased $59 million worth of shares, representing 2.8% of shares outstanding [6]. Outlook - Management expects high single-digit to low double-digit organic growth in the loan portfolio in the coming quarters [7]. - The purchase of two commercial real estate loan pools from the FDIC, with a combined unpaid principal balance of ~$1.25 billion, is expected to enhance net interest margin (NIM) [7]. - NIM is projected to expand by 40-50 basis points over the next 4 to 6 quarters [7]. Solvency & Liquidity - Axos is "well capitalized" under Basel III, with a Tier 1 leverage ratio of 9.39% and a common equity tier 1 ratio of 10.97% [9]. - The weighted average cost of total deposits is 3.64%, and the loan portfolio shows low credit risk, with only 1.15% rated as Special Mention [9]. Valuation - The forward earnings multiple is lower than the 5-year mean, suggesting the stock is undervalued [10]. - The earnings yield is 12.5%, and the book value per share has significantly increased over the last decade [12]. - The current price level offers a potential upside based on historical valuation metrics [12].

Axos Financial (AX) closed the last trading session at $51.80, gaining 1% over the past four weeks, but there could be plenty of upside left in the stock if short-term price targets set by Wall Street analysts are any guide. The mean price target of $64.83 indicates a 25.2% upside potential.The average comprises six short-term price targets ranging from a low of $56 to a high of $76, with a standard deviation of $7.22. While the lowest estimate indicates an increase of 8.1% from the current price level, the ...