Axos Financial(AX) - 2025 Q3 - Quarterly Results

Loan Growth and Deposits - Axos reported a loan growth of $3.6 billion in Q3 Fiscal 2025, representing a 16% increase year-over-year[2]. - Total deposits amount to $20.4 billion, with 90% being FDIC-insured or collateralized[12]. - Approximately $3.5 billion of deposits adjust with the Federal Funds rate, enhancing deposit rate optionality[11]. - As of March 31, 2025, the total loans outstanding amounted to $2,729 million, with non-accrual loans at $185 million[19]. - The commercial mortgage loans outstanding were $3,341 million, with a non-accrual amount of $44 million[19]. Credit Quality and Allowance for Credit Losses - The allowance for credit losses (ACL) and unfunded loan commitments reserve (UCL) stands at $6.2 million[15]. - The total ACL as of March 31, 2025, was $207 million, reflecting a 14% increase compared to the previous year[17]. - The allowance for credit losses (ACL) by loan category showed a year-over-year increase of 4.19%[17]. - The overall credit quality remains strong, with a total non-accrual loans percentage of 0.63% as of March 31, 2025[19]. - The company reported a significant improvement in credit quality metrics compared to December 31, 2024, where the single-family mortgage non-accrual rate was 1.69%[19]. Financial Performance - The company reported a net income of $15.9 million for the quarter, representing a 42.87% increase compared to the previous period[23]. - Total revenue for the quarter reached $45.64 million, reflecting a 46.85% growth year-over-year[23]. - The company achieved a gross margin of 47.36%, up from 45.20% in the previous quarter, indicating improved operational efficiency[23]. - The average return on equity (ROE) was reported at 18.81%, demonstrating effective management of shareholder equity[23]. - The adjusted earnings for the period, excluding non-recurring costs, were $11.2 million, compared to $10.6 million in the previous period, indicating a 5.66% increase[28]. Capital and Equity - Total stockholders' equity rose to $2,603,900,000, up from $2,505,720,000, indicating an increase of about 3.9%[21]. - The company reported a common equity tier 1 capital ratio of 12.39%, up from 12.01%[21]. - The total capital ratio to risk-weighted assets was reported at 15.49%, compared to 14.84% previously[21]. - Tangible book value per common share was reported at $10.50, up from $10.48, representing a 0.19% increase[30]. - The company’s total stockholders' equity (non-GAAP) was $42.91, compared to $41.27 previously, indicating a growth trend[31]. Operational Efficiency and Future Outlook - The company plans to expand its market presence with new product launches expected in Q2 2024, targeting a 30% increase in market share[23]. - Research and development expenses increased to $6.00 million, highlighting the company's commitment to innovation and new technology[23]. - The company is exploring potential acquisitions to enhance its product portfolio and market reach, with a focus on strategic partnerships[23]. - The efficiency ratio improved to 0.09%, down from 0.10% in the prior period, reflecting a decrease of 1%[1]. - The company plans to expand its market presence through strategic acquisitions and new product launches in the upcoming quarters[1].