Axos Financial(US:AX)2026-01-29 21:15Financial Performance - For the three months ended December 31, 2025, net income was $128.4 million, an increase of 22.6% from $104.7 million in the same period of 2024 [152]. - Adjusted earnings for the six months ended December 31, 2025, were $250.5 million, compared to $220.0 million for the same period in 2024, reflecting a growth of 13.9% [152]. - Diluted EPS for the six months ended December 31, 2025, was $4.17, up from $3.72 in the same period of 2024, representing an increase of 12.1% [152]. - For the three months ended December 31, 2025, net income was $128.4 million, or $2.22 per diluted share, compared to $104.7 million, or $1.80 per diluted share for the same period in 2024, representing a 22.8% increase in net income [156]. - For the six months ended December 31, 2025, net income reached $240.75 million, or $4.17 per diluted share, compared to $217.0 million, or $3.72 per diluted share for the same period in 2024, indicating an increase of 10.9% in net income [156]. Asset Growth - Total assets increased to $28.20 billion as of December 31, 2025, up from $24.78 billion as of June 30, 2025, reflecting a growth of 9.1% [154]. - Loans, net of allowance for credit losses, rose to $24.27 billion as of December 31, 2025, compared to $21.05 billion as of June 30, 2025, marking an increase of 15.4% [154]. - Total available-for-sale securities increased to $811.1 million as of December 31, 2025, compared to $66.0 million at June 30, 2025, driven by significant purchases during the period [195]. - Total deposits increased by $2.4 billion, or 11.5%, to $23.2 billion at December 31, 2025, with significant increases in interest-bearing demand and savings deposits [196]. - Stockholders' equity rose by $249.4 million to $2,930.1 million at December 31, 2025, driven by net income of $240.7 million for the six months ended December 31, 2025 [198]. Income and Expenses - Net interest income for the three months ended December 31, 2025, was $331.71 million, up from $280.10 million for the same period in 2024, representing an increase of 18.4% [155]. - Non-interest income for the three months ended December 31, 2025, was $53.38 million, compared to $27.80 million for the same period in 2024, showing a significant increase of 92.5% [155]. - Total non-interest expense increased by $39.3 million, or 27.0%, for the three months ended December 31, 2025, primarily due to higher salaries and related costs, depreciation, and general administrative expenses [175]. - Non-interest income for the six months ended December 31, 2025, increased by $29.3 million, or 52.0%, compared to the same period in 2024, reflecting strong performance in various income streams [173]. Efficiency and Profitability - The efficiency ratio for the three months ended December 31, 2025, was 47.93%, compared to 47.20% for the same period in 2024, indicating a slight decline in operational efficiency [155]. - The return on average common stockholders' equity for the three months ended December 31, 2025, was 17.44%, up from 16.97% for the same period in 2024, reflecting improved profitability [155]. - The return on average assets for the Banking Business Segment improved to 2.07% for the three months ended December 31, 2025, compared to 1.87% for the same period in 2024 [185]. Regulatory Compliance - The company is subject to supervision by the Federal Reserve and other regulatory bodies, ensuring compliance with financial regulations [140][141]. - The Company and Bank met all capital adequacy requirements as of December 31, 2025, and were classified as "well capitalized" under regulatory standards [211]. Interest Rate Sensitivity - The net interest rate sensitivity gap as a percentage of total interest-earning assets was 20.31% [218]. - In a rising interest rate environment, a positive gap allows the institution to invest in higher yielding assets, with a projected increase in net interest income of 8.3% for the first 12 months if rates rise by 200 basis points [220]. - Conversely, if interest rates decrease by 200 basis points, net interest income is expected to decline by 0.3% in the first 12 months [220]. Acquisition and Business Segments - The company completed the acquisition of Verdant Commercial Capital, LLC for $1.0 billion, enhancing its equipment leasing business and acquiring approximately $1.0 billion of loans and leases [143]. - The Banking Business Segment focuses on providing a wide range of banking services, including online banking and various lending products to consumers and small businesses [146]. - The Securities Business Segment includes clearing broker-dealer and registered investment advisor custody services, contributing to the company's diversified financial services [147].