Axos Financial(AX) - 2024 Q4 - Annual Results

Loan and Asset Management - Axos reported a loan balance of $19.803 billion in Q4 FY24, an increase of $486 million from Q3 FY24[2] - The company completed a purchase of $1.25 billion in loans from the FDIC at a 37% discount, with a total unpaid principal balance of $1.231 billion across various loan types[4] - The weighted average yield on total loans was 6.9%, with a weighted average loan-to-value (LTV) ratio of 58.8%[4] - The allowance for credit losses (ACL) stood at $261 million, representing 1.3% of total loans[14] - Non-accrual loans totaled $113 million, accounting for 0.57% of total loans outstanding[16] - The company reported a significant increase in asset-based and cash flow lending, with a growth of $180 million to $1.797 billion[3] - Multifamily loans accounted for a balance of $2.541 billion, down $122 million from the previous quarter[3] Deposits and Equity - Approximately 90% of deposits are FDIC-insured or collateralized, with total deposit balances reaching $19.803 billion as of June 30, 2024[11] - Total deposits rose to $19,359,217 thousand, compared to $19,103,532 thousand in the prior quarter, marking an increase of 1.33%[20] - Total stockholders' equity improved to $2,290,596 thousand, up from $2,196,293 thousand, indicating a growth of 4.29%[20] - The equity to assets ratio at the end of the period was 10.02%, up from 9.70% in the previous quarter[20] - Common equity tier 1 capital to risk-weighted assets increased to 12.01%, compared to 11.47% in the prior quarter[20] - Tier 1 leverage ratio to adjusted average assets was 9.43%, slightly up from 9.33% in the previous quarter[20] - Net capital as a percentage of aggregate debit items was 42.21%, an increase from 38.73% in the prior quarter[20] Income and Earnings - Net income for June 30, 2024, was $104,872,000, a decrease from $110,720,000 in the previous quarter[22] - Adjusted earnings for June 30, 2024, were $106,727,000, compared to $112,655,000 in the previous quarter[25] - Basic earnings per share (EPS) for June 30, 2024, was $1.84, down from $1.94 in the previous quarter[22] - Diluted EPS for June 30, 2024, was $1.80, compared to $1.91 in the previous quarter[22] - Non-interest income for June 30, 2024, was $30,861,000, down from $33,163,000 in the previous quarter[22] - Return on average assets for June 30, 2024, was 1.81%, a decrease from 1.98% in the previous quarter[22] - Return on average common stockholders' equity for June 30, 2024, was 18.81%, down from 20.71% in the previous quarter[22] Shareholder Value - Book value per common share increased to $40.26 as of June 30, 2024, from $38.48 in the previous quarter[22] - Tangible book value per common share increased to $37.26 as of June 30, 2024, from $35.46 in the previous quarter[22] - Tangible common stockholders' equity increased to $2,119,903 thousand as of June 30, 2024, up from $2,023,839 thousand in March 2024, representing a growth of 4.76%[27] - Book value per common share rose to $40.26 in June 2024, compared to $38.48 in March 2024, reflecting an increase of 4.63%[27] - Tangible book value per common share reached $37.26 in June 2024, up from $35.46 in March 2024, indicating a growth of 5.06%[27] - Common shares outstanding decreased to 56,894,565 as of June 30, 2024, from 57,079,429 in March 2024, a decline of 0.33%[27] - Goodwill and intangible assets decreased to $141,769 thousand in June 2024, down from $144,324 thousand in March 2024, a reduction of 3.54%[27] Asset Growth - Total assets increased to $22,855,334 thousand as of June 30, 2024, up from $22,642,133 thousand in March 31, 2024, representing a growth of 0.94%[20] - Net loans reached $19,231,385 thousand, an increase from $18,733,455 thousand in the previous quarter, reflecting a growth of 2.66%[20] - Customer, broker-dealer and clearing receivables decreased to $240,028 thousand from $292,630 thousand, a decline of 17.93%[20] - Securities—available-for-sale decreased to $141,611 thousand from $207,582 thousand, a decline of 31.87%[20] Strategic Focus - The company serves approximately 40% of U.S. Chapter 7 bankruptcy trustees, indicating a strong position in the bankruptcy servicing market[11] - Axos is focused on geographic expansion and enhancing team capabilities to improve its treasury and cash management services[11]