No matter if it is a start-up or a well-known company, earnings growth is the main priority for any organization. This is because if the company doesn’t make money, it won’t last long.So, what is earnings growth? Study a company’s revenues over a given period, subtract the production cost, and you have earnings. By the way, this is also considered the most important variable influencing share price. But, expectations of earnings play a noteworthy role.Earnings Estimates & Share Price MovementsFrequently, we ...

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Financial Data and Key Metrics Changes - The company reported net income of $152 million and earnings per share of $2.62 for Q2 2024, representing year-over-year growth of 86% and 94% respectively [6] - Non-GAAP adjusted earnings per share increased by 15.7% year-over-year to $1.56 [7] - Tangible book value per share was $33.45 at December 31, 2023, up 25% from December 31, 2022 [7] - Net interest margin was 4.55% for Q2 2024, up 19 basis points from the previous quarter and up 9 basis points from the same period last year [8] Business Line Data and Key Metrics Changes - Ending loans for investment balance net of discount were $18.5 billion, up 8% linked quarter or 32% annualized [7] - Growth was broad-based with increases in real estate and non-real estate lender finance, equipment leasing, and fund finance, offsetting lower origination volumes in single-family warehouse [7] - Broker-dealer fee income increased 27.6% year-over-year due to higher interest rates and increased client activity [8] Market Data and Key Metrics Changes - Total deposits increased by approximately $638 million linked quarter, with a total deposit growth of $1 billion from June 30, 2023, or 12.6% annualized [18] - Non-interest-bearing deposits were approximately $2.8 billion, relatively flat quarter-over-quarter [19] - The company had approximately $550 million of deposits off balance sheet with partnered banks and another $750 million held at other banks by software clients [21] Company Strategy and Development Direction - The company is focused on widening its lead relative to competitors by investing in systems, processes, and talent to generate attractive future returns for shareholders [30] - The company is actively recruiting across various commercial deposit, lending, and business verticals to build and accelerate strategic initiatives [29] - The FDIC loan purchase is expected to provide incremental net interest income and after-tax income over the next several years [9][17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to grow loan balances organically by high single digits to low teens year-over-year for the next few quarters [33] - The company anticipates that the pace of cash sorting at Axos Advisory Services has stabilized, representing 4% of assets under custody as of December 31, 2023 [20] - Management noted that the market dislocation and corporate restructuring among competitors have created significant opportunities for growth [29] Other Important Information - The company completed the purchase of two performing commercial real estate and multifamily loan pools from the FDIC with a combined unpaid principal balance of approximately $1.25 billion at 63% of par value [9] - Total noninterest expenses increased by $1.3 million or 1.1% to $122 million in Q2 2024 compared to the previous quarter [31] Q&A Session Summary Question: Margin outlook excluding FDIC loans - Management confirmed that the net interest margin guidance of 4.25% to 4.35% will still hold for the calendar year of 2024 [37] Question: Expense growth details - Management indicated that expense growth generally aligns with the loan growth rate of high single digits to low teens, with some seasonal increases expected [39][40] Question: Loan loss provision increase - Management explained that the higher loan loss provision included aspects related to the loan purchase and unfunded commitments, with a total of $13.5 million for the quarter [46] Question: Specifics around loan loss provision - Management detailed that the loan loss provision was based on a loan-by-loan analysis considering various economic scenarios and attributes of the loans [50]

Axos Q2 Fiscal 2024 Earnings Supplement January 30, 2024 NYSE: AX Loan Growth by Category for Second Quarter Ended December 31, 2023 $ Millions Q2 FY24 Q1 FY24 Inc (Dec) Single Family Jumbo Mortgage $ 3,993 $ 4,019 $ (26) Mortgage & Warehouse SF Warehouse Lending 99 295 (196) Multifamily & Multifamily 2,708 2,130 578 Commercial Mortgage* Small Balance Commercial 1,357 832 525 ...

Core Insights - Axos Financial reported a revenue of $352.74 million for the quarter ended December 2023, marking a 54.6% increase year-over-year and a surprise of +42.77% over the Zacks Consensus Estimate of $247.07 million [1] - The earnings per share (EPS) for the quarter was $1.60, compared to $1.38 in the same quarter last year, resulting in an EPS surprise of +15.11% over the consensus estimate of $1.39 [1] Financial Metrics - Net Interest Margin was reported at 4.6%, exceeding the average estimate of 4.3% from four analysts [2] - Efficiency ratio stood at 34.5%, significantly better than the average estimate of 48.7% from four analysts [2] - Net charge-offs to average loans were 0%, compared to the estimated 0.1% from three analysts [2] - Average Interest-Earning Assets reached $20.12 billion, surpassing the average estimate of $19.89 billion from three analysts [2] - Total Non-performing loans were $122.51 million, slightly above the average estimate of $115.70 million from two analysts [2] - Total Non-performing Assets were reported at $129.83 million, compared to the estimated $124.84 million from two analysts [2] - Net Interest Income was $228.61 million, exceeding the average estimate of $215.27 million from four analysts [2] - Mortgage Banking Income was $0.75 million, below the average estimate of $1.22 million from three analysts [2] - Banking and service fees totaled $10.06 million, higher than the average estimate of $8.93 million from two analysts [2] - Prepayment penalty fee income was $1.04 million, lower than the estimated $1.88 million from two analysts [2] Stock Performance - Shares of Axos Financial have returned +4.2% over the past month, outperforming the Zacks S&P 500 composite's +3.4% change [3] - The stock currently holds a Zacks Rank 2 (Buy), indicating potential for outperformance in the near term [3]

PART I – FINANCIAL INFORMATION [Financial Statements](index=3&type=section&id=ITEM%201.%20FINANCIAL%20STATEMENTS) The company's total assets increased to $21.6 billion, driven by loan growth, while net income significantly rose to $151.8 million due to an acquisition gain Condensed Consolidated Balance Sheet Highlights (in thousands) | Metric | December 31, 2023 | June 30, 2023 | | :--- | :--- | :--- | | **Total Assets** | $21,623,764 | $20,348,469 | | Loans—net | $18,264,354 | $16,456,728 | | Total Deposits | $18,203,912 | $17,123,108 | | **Total Stockholders' Equity** | $2,078,224 | $1,917,159 | Condensed Consolidated Statements of Income Highlights (in thousands, except EPS) | Metric | Three Months Ended Dec 31, 2023 | Three Months Ended Dec 31, 2022 | | :--- | :--- | :--- | | Net Interest Income | $228,606 | $199,910 | | Provision for Credit Losses | $13,500 | $3,001 | | Non-Interest Income | $124,129 | $28,329 | | **Net Income** | **$151,771** | **$81,552** | | **Diluted EPS** | **$2.62** | **$1.35** | [Notes to Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) This section details significant accounting policies, recent acquisitions including a major FDIC loan portfolio purchase, and changes in the allowance for credit losses - On December 7, 2023, the Company acquired two loan portfolios from the FDIC with an aggregate unpaid principal balance of **$1.3 billion** for **$901.5 million**, recognizing a **$92.4 million** gain on the transaction[32](index=32&type=chunk) - The allowance for credit losses on loans increased to **$251.7 million** at December 31, 2023, from **$166.7 million** at June 30, 2023, primarily due to loan growth and the acquisition of Purchased Credit Deteriorated (PCD) loans from the FDIC, which added **$70.1 million** to the allowance at acquisition[68](index=68&type=chunk)[70](index=70&type=chunk)[73](index=73&type=chunk) - During the three and six months ended December 31, 2023, the Company repurchased **$58.7 million** (**1,607,301 shares**) and **$83.2 million** (**2,255,509 shares**) of its common stock, respectively[102](index=102&type=chunk) Segment Income Before Taxes (Three Months Ended Dec 31, 2023, in thousands) | Segment | Net Interest Income (in thousands) | Provision for Credit Losses (in thousands) | Non-interest Income (in thousands) | Non-interest Expense (in thousands) | Income Before Taxes (in thousands) | | :--- | :--- | :--- | :--- | :--- | :--- | | **Banking Business** | $226,635 | $13,500 | $103,779 | $102,282 | $214,632 | | **Securities Business** | $6,080 | $0 | $32,641 | $27,968 | $10,753 | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=32&type=section&id=ITEM%202.%20MANAGEMENT%27S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) Management discusses the significant increase in net income, driven by an FDIC loan purchase gain and strong net interest income growth, alongside asset expansion and stable capital ratios [Results of Operations](index=37&type=section&id=Results%20of%20Operations) Net income significantly increased to $151.8 million, primarily driven by a $92.4 million FDIC loan purchase gain and a 14.4% rise in net interest income - Net interest income increased by **14.4%** to **$228.6 million** for the three months ended December 31, 2023, compared to the prior year, driven by a **$2.0 billion** increase in average loan balances and a **156 basis point** increase in rates earned[156](index=156&type=chunk)[157](index=157&type=chunk) - Non-interest income for the quarter increased by **$95.8 million** (**338.2%**) year-over-year, primarily due to a **$92.4 million** gain on the FDIC Loan Purchase[163](index=163&type=chunk) - Non-interest expense increased by **$13.8 million** (**12.8%**) year-over-year, mainly due to a **$9.2 million** rise in salaries and related costs from increased headcount and a **$3.7 million** increase in data processing expenses[164](index=164&type=chunk) - The provision for credit losses was **$13.5 million** for the quarter, up from **$3.0 million** in the prior-year quarter, mainly due to loan growth in the Commercial & Industrial portfolio and loans acquired from the FDIC[161](index=161&type=chunk) [Segment Results](index=42&type=section&id=Segment%20Results) The Banking Business segment's pre-tax income nearly doubled to $214.6 million due to the FDIC acquisition gain, while the Securities Business segment's pre-tax income declined to $10.8 million - The Banking Business segment's income before taxes nearly doubled to **$214.6 million** for the quarter ended Dec 31, 2023, from **$109.3 million** in the prior year, largely due to the FDIC loan purchase gain[175](index=175&type=chunk) - The Securities Business segment's income before taxes decreased to **$10.8 million** for the quarter from **$15.6 million** in the prior year, impacted by lower non-interest income and higher expenses[187](index=187&type=chunk) [Financial Condition](index=47&type=section&id=Financial%20Condition) Total assets reached $21.6 billion, driven by a $2.2 billion increase in the gross loan portfolio, while non-performing assets rose to 0.60% of total assets Loan Portfolio Composition (in thousands) | Loan Category | December 31, 2023 (in thousands) | June 30, 2023 (in thousands) | | :--- | :--- | :--- | | Single Family - Mortgage & Warehouse | $4,092,104 | $4,173,833 | | Multifamily and Commercial Mortgage | $4,065,019 | $3,082,225 | | Commercial Real Estate | $6,043,400 | $6,199,818 | | Commercial & Industrial - Non-RE | $4,177,461 | $2,639,650 | | **Total Gross Loans** | **$18,860,409** | **$16,652,026** | - Total deposits increased by **$1.1 billion** (**6.3%**) to **$18.2 billion** at December 31, 2023, from June 30, 2023, with interest-bearing demand and savings accounts driving the growth[200](index=200&type=chunk) - Non-performing assets rose to **$129.8 million** (**0.60%** of total assets) from **$95.3 million** (**0.47%** of total assets) at June 30, 2023, mainly due to an increase in non-accrual single-family mortgage and commercial real estate loans[196](index=196&type=chunk)[197](index=197&type=chunk) [Liquidity and Capital Resources](index=50&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains strong liquidity with substantial borrowing capacity and increased stockholders' equity, remaining 'well capitalized' under all regulatory measures - The company has substantial available liquidity, including **$4.1 billion** in total FHLB borrowing capacity and **$3.1 billion** available from the FRBSF Discount Window as of December 31, 2023[209](index=209&type=chunk) Regulatory Capital Ratios (Axos Financial, Inc.) | Ratio | December 31, 2023 | Requirement for "Well Capitalized" | | :--- | :--- | :--- | | Tier 1 leverage | 9.39% | 5.00% | | Common equity tier 1 capital | 10.97% | 6.50% | | Tier 1 capital | 10.97% | 8.00% | | Total capital | 13.79% | 10.00% | - Stockholders' equity increased by **$161.1 million** in the six months ended December 31, 2023, reflecting **$234.4 million** in net income partially offset by **$83.2 million** in common stock repurchases[206](index=206&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=53&type=section&id=ITEM%203.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) The company manages interest rate risk, showing asset sensitivity with a positive cumulative gap, projecting net interest income benefits from rising rates and minimal equity sensitivity Net Interest Income Sensitivity Analysis (Next 12 Months) | Rate Shock | Net Interest Income (in thousands) | Percentage Change from Base | | :--- | :--- | :--- | | Up 200 bps | $1,074,457 | 10.3% | | Base | $973,901 | — | | Down 200 bps | $894,052 | (8.2)% | - The company has a positive cumulative interest rate sensitivity gap of **$556.4 million** for the next six months, indicating that more assets than liabilities will reprice in that period[227](index=227&type=chunk) [Controls and Procedures](index=55&type=section&id=ITEM%204.%20CONTROLS%20AND%20PROCEDURES) Management concluded disclosure controls were effective, with internal controls modified due to a new ERP system implementation during the quarter - Management concluded that disclosure controls and procedures were effective as of the end of the period[237](index=237&type=chunk) - A new enterprise resource planning (ERP) system was implemented during the quarter, leading to changes in the internal control environment, including automation and modification of certain controls[237](index=237&type=chunk) PART II – OTHER INFORMATION [Legal Proceedings](index=56&type=section&id=ITEM%201.%20LEGAL%20PROCEEDINGS) The company is involved in a consolidated derivative action with an unpredictable outcome and is appealing an adverse judgment with a $16 million accrual - A consolidated derivative action is pending, stemming from a related employment lawsuit. The company intends to vigorously defend against the allegations, but the eventual loss, if any, cannot be reasonably estimated[110](index=110&type=chunk)[111](index=111&type=chunk) - The company is appealing a jury verdict in the MUFG Union Bank, N.A. v. Axos Bank case and has maintained a **$16 million** accrued expense related to this matter[112](index=112&type=chunk) [Risk Factors](index=56&type=section&id=ITEM%201A.%20RISK%20FACTORS) The report refers to the risk factors disclosed in the 2023 Form 10-K, indicating no significant new or changed risks during the quarter - The report refers to the risk factors disclosed in the 2023 Form 10-K, indicating no significant new or changed risks during the quarter[241](index=241&type=chunk) [Issuer Purchases of Equity Securities](index=56&type=section&id=ITEM%202.%20UNREGISTERED%20SALES%20OF%20EQUITY%20SECURITIES%20AND%20USE%20OF%20PROCEEDS) During the quarter ended December 31, 2023, the company repurchased 1,607,301 shares of its common stock at an average price of $36.49 per share, with $20.5 million remaining for repurchase Share Repurchases for Quarter Ended December 31, 2023 | Period | Total Shares Purchased | Average Price Paid Per Share | | :--- | :--- | :--- | | Oct 2023 | 1,377,080 | $36.56 | | Nov 2023 | 230,221 | $36.09 | | Dec 2023 | 0 | — | | **Total** | **1,607,301** | **$36.49** |

SAN DIEGO--(BUSINESS WIRE)--Axos Financial, Inc. (NYSE: AX), parent of Axos Bank, announced today that leading personal finance website GOBankingRates.com named Axos Bank as a Top Bank in America for “Best Checking Accounts.” This is the seventh time since 2015 that Axos Bank has been featured on the GOBankingRates list of best banks. “We are proud to be recognized as a leader in consumer digital banking,” said Brian Swanson, Axos’ Executive Vice President of Consumer Banking. “Our Essential Checking acc ...

Company Overview - Axos Financial (AX) is expected to report a year-over-year increase in earnings, with a consensus estimate of $1.39 per share, reflecting a change of +0.7% [2] - Revenues are anticipated to be $247.07 million, which is an increase of 8.3% from the previous year [2] Earnings Expectations - The earnings report is scheduled for January 30, 2024, and actual results will significantly influence the stock price [1] - The consensus EPS estimate has remained unchanged over the last 30 days, indicating stability in analyst expectations [2] Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that the Most Accurate Estimate for Axos Financial is lower than the consensus estimate, resulting in an Earnings ESP of -0.94% [5] - A negative Earnings ESP reading suggests a lower likelihood of an earnings beat, especially when combined with a Zacks Rank of 2 (Buy) [6][5] Historical Performance - In the last reported quarter, Axos Financial exceeded the consensus EPS estimate of $1.35 by delivering earnings of $1.41, resulting in a surprise of +4.44% [7] - The company has beaten consensus EPS estimates in the last four quarters [7] Industry Context - In comparison, American Express (AXP) is expected to post earnings of $2.65 per share for the same quarter, indicating a year-over-year change of +28% and revenues of $16.03 billion, up 13.1% [9] - American Express also has a negative Earnings ESP of -0.86%, making it difficult to predict an earnings beat despite a Zacks Rank of 2 [9]

Axos Financial, Inc. (NYSE:AX) Q1 2024 Earnings Conference Call October 26, 2023 5:00 PM ET Company Participants Johnny Lai - SVP, Corporate Development and IR Greg Garrabrants - President and CEO Derrick Walsh - EVP and CFO Conference Call Participants Andrew Liesch - Piper Sandler Tim Switzer - KBW David Chiaverini - Wedbush Gary Tenner - D.A. Davidson Operator Greetings. Welcome to Axos Financial Incorporated's First Quarter 2024 Earnings Call and Webcast. [Operator Instructions] Please note, this confer ...

Financial Performance - Axos Financial, Inc. reported net income of $82.645 million for the period ended September 30, 2023, compared to $58.407 million for the same period in 2022, representing an increase of 41.4%[121] - Adjusted earnings for the same period were $84.596 million, up from $71.615 million in 2022, reflecting a growth of 18.0%[121] - The diluted earnings per share (EPS) increased to $1.38 from $0.97, marking a rise of 42.3% year-over-year[121] - Net income for the three months ended September 30, 2023, was $82.6 million, or $1.38 per diluted share, compared to $58.4 million, or $0.97 per diluted share for the same period in 2022, representing a 41.3% increase in net income[130] Asset Growth - The company holds approximately $20.8 billion in total assets and $33.9 billion in assets under custody and/or administration[109] - Total assets increased to $20,825,206 thousand as of September 30, 2023, up from $18,407,078 thousand a year earlier, reflecting a growth of 13.1%[126] - Common stockholders' equity increased to $1.976 billion from $1.701 billion, a growth of 16.1%[122] - The total assets of the company increased by $0.5 billion, or 2.3%, to $20.8 billion as of September 30, 2023, compared to $20.3 billion at June 30, 2023[164] Income and Revenue - Net interest income for the three months ended September 30, 2023, was $211,155 thousand, an increase from $180,475 thousand in the same period of 2022, marking a growth of 16.9%[128] - Non-interest income increased to $34,507 thousand for the three months ended September 30, 2023, compared to $27,208 thousand in the same period of 2022, representing a growth of 27.1%[128] - Total interest and dividend income increased by 62.6%, primarily due to a $118.6 million increase in interest income from loans, driven by a 220 basis point increase in rates earned and a $1.9 billion increase in average balances[136] - Non-interest income increased by $7.3 million, or 27%, primarily due to higher broker-dealer fee income and banking and service fees[141] Efficiency and Ratios - Efficiency ratio improved to 49.05% for the three months ended September 30, 2023, down from 55.90% in the prior year, indicating better operational efficiency[128] - Common equity tier 1 capital to risk-weighted assets was 11.11% as of September 30, 2023, up from 9.97% a year earlier, indicating stronger capital position[126] - The efficiency ratio for the Banking Business segment improved to 45.44% in 2023 from 52.93% in 2022, indicating enhanced operational efficiency[158] Credit Quality - Provision for credit losses decreased to $7,000 thousand for the three months ended September 30, 2023, down from $8,750 thousand in the prior year, indicating improved asset quality[128] - Net annualized charge-offs to average loans decreased to 0.04% for the three months ended September 30, 2023, compared to 0.05% for the same period in 2022, reflecting enhanced credit quality[128] - Non-performing loans totaled $106.9 million, or 0.62% of total gross loans, an increase from 0.52% at June 30, 2023[170] - Total non-performing assets rose to $115.7 million, or 0.56% of total assets, compared to 0.47% at June 30, 2023[170] Capital and Liquidity - The Company and Bank met all capital adequacy requirements as of September 30, 2023, maintaining a Tier 1 capital ratio of 9.27%, exceeding the minimum requirement of 4.0%[191] - Total capital as of September 30, 2023, was $2,340.1 million, with a total risk-based capital ratio of 14.06%, above the required minimum of 10.0%[194] - The Company believes it has adequate liquidity sources to meet anticipated needs and contingencies for both the short- and long-term[183] Stock and Shareholder Activity - The company repurchased 648,208 shares of common stock at an average price of $37.85 per share during the three months ended September 30, 2023[180] - Stockholders' equity increased by $59.0 million to $1.976 billion at September 30, 2023, driven by net income of $82.6 million[180] Market and Interest Rate Risk - The company is exposed to market risk due to fluctuations in interest rates and market prices, impacting its securities business[207] - The company manages interest rate risk by setting limits on the size and duration of positions in its securities business[208]