Axos Financial(AX) - 2025 Q1 - Quarterly Results

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]