Loan Portfolio - Axos' Single Family Mortgage & Warehouse loan portfolio decreased by $115 million from Q4 FY24 to Q1 FY25[1] - Jumbo Mortgage decreased from $3.922 billion to $3.807 billion[1] - Multifamily loan portfolio decreased by $178 million from $2.541 billion to $2.363 billion[2] - Commercial Real Estate (CRE) Specialty increased by $189 million, from $5.189 billion to $5.378 billion[2] - Commercial & Industrial Non-RE loans increased by $171 million, from $1.797 billion to $1.968 billion[2] - Total loans outstanding increased slightly by $23 million, from $19.803 billion to $19.826 billion[2] FDIC Loan Purchase - Axos completed a purchase of $1.25 billion of loans from the FDIC at a 37% discount on December 7, 2023[4] - The weighted average yield before accretion of discount for the total CRE loans purchased from FDIC is 7.4%[4] - The weighted average LTV for the total CRE loans purchased from FDIC is 52%[4] Credit Quality and Allowance for Credit Losses (ACL) - Total loans outstanding as of September 30, 2024, were $19.826 billion with an ACL of $264 million, representing 1.3%[13] - Non-accrual loans to total loans was 0.89% as of September 30, 2024[15] Deposits - Approximately 90% of deposits are FDIC-insured or collateralized[11]

Financial Data and Key Metrics - Net income for Q1 2025 was $112 million, up 36% YoY from $82.7 million [10] - Earnings per share grew 40% YoY to $1.93 [10] - Return on average common equity was 19.1% for the quarter [7] - Tangible book value per share grew 28% YoY [7] - Net interest margin increased to 5.17%, up 81 bps YoY and 52 bps QoQ [8] - Loan balances grew 0.3% QoQ and 13.7% YoY to $19.3 billion [6] - Deposits grew by $614 million QoQ, with 96% coming from interest-bearing demand and savings accounts [6][19] Business Line Performance - Single-family mortgage warehouse and C&I loan balances grew, offset by declines in single-family jumbo mortgage, multifamily, and auto loans [10] - Average loan yields increased to 9.01%, up 47 bps QoQ and 116 bps YoY [11] - Non-performing assets increased in single-family jumbo mortgages ($13.3 million) and commercial real estate ($14.5 million) [13][14] - C&I asset-based and cash flow lending saw a $40 million increase in non-performing assets [16] - Axos Clearing deposits remained flat at $1.3 billion, with $800 million on the balance sheet and $450 million at partner banks [30] Market and Geographic Performance - Consumer and small business deposits represented 60% of total deposits, while treasury management accounted for 20% [20] - Axos Fiduciary Services and Axos Security (custody and clearing) represented 6% and 4% of deposits, respectively [20] - Client cash sorting stabilized at 3% of assets under custody, down from the historic range of 6%-7% [21] Strategy and Industry Competition - The company is focused on growing assets under custody and cash balances by adding new assets from existing and new advisors [21] - Axos is managing interest rate risk by adjusting deposit pricing and extending the duration of liabilities [22][23] - The company is optimistic about returning to high single-digit to low-teens loan growth, driven by strong demand in fund finance, ABL, and select C&I lending businesses [29] - Axos is leveraging its white-label banking platform to attract new clients and enhance deposit and lending product offerings [33] Management Commentary on Operating Environment and Outlook - Management highlighted strong demand in C&I lending but noted increased pricing pressure and competition [43] - The company expects to maintain its net interest margin within the 4.25%-4.35% range, excluding the FDIC loan benefit [24] - Management remains confident in the credit quality of the loan book, despite some idiosyncratic increases in non-performing assets [15][17] Other Important Information - The company allocated a $10 million specific loan provision for a C&I loan classified as nonaccrual [17] - Non-interest expenses increased by $6.9 million QoQ, driven by higher salaries and benefits related to new hires [39] - The loan pipeline remains strong at $1.9 billion, with growth expected in SFR jumbo mortgages, multifamily, and commercial loans [40] Q&A Session Summary Question: Competition and Loan Pricing - Management noted increased pricing pressure in certain verticals, particularly in C&I lending, but remains confident in achieving loan growth [43] Question: Fee Income and Rate Sensitivity - Fee income was impacted by prepayment penalty fees and a mark on the servicing book due to rate declines [44][45] - Management expects fee income growth in the securities business as net new assets increase [46] Question: Deposit Repricing and Growth Opportunities - The company has successfully repriced deposits ahead of rate cuts and sees growth opportunities in C&I verticals and middle-market lending [65][66] Question: Commercial Real Estate Exposure - Axos remains interested in growing its commercial real estate book but faces challenges due to fewer deals and early repayments by bridge lenders [84] Question: Loan Pricing and Margin Outlook - Management expects some pricing concessions to maintain loan growth but remains optimistic about the margin outlook, supported by loan repricing and deposit cost management [81][98] Question: Loan Underwriting and Participation - The company emphasized its strong underwriting standards, particularly in commercial real estate, and noted variations in loan participation across different business lines [89][92]

Core Viewpoint - Axos Financial reported strong quarterly earnings, exceeding expectations and showing significant year-over-year growth in both earnings and revenues [1][2]. Financial Performance - Quarterly earnings per share (EPS) were $1.96, surpassing the Zacks Consensus Estimate of $1.80, and up from $1.41 a year ago, representing an earnings surprise of 8.89% [1]. - Revenues for the quarter ended September 2024 were $320.66 million, exceeding the Zacks Consensus Estimate by 7.03%, compared to $245.66 million in the same quarter last year [2]. Market Performance - Axos Financial shares have increased approximately 21.4% since the beginning of the year, while the S&P 500 has gained 22.3% [3]. - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6]. Future Outlook - The current consensus EPS estimate for the upcoming quarter is $1.80, with projected revenues of $302.8 million, and for the current fiscal year, the EPS estimate is $7.03 on revenues of $1.21 billion [7]. - The outlook for the financial services industry, particularly the Financial - Miscellaneous Services sector, is favorable, ranking in the top 35% of Zacks industries, which historically outperforms the lower-ranked industries [8].

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 ...