Axos Financial(AX) - 2026 Q2 - Quarterly Results

Loan Performance - Total loans outstanding increased to $24,776 million in Q2 FY26, up from $23,142 million in Q1 FY26, representing a growth of 7.05%[4] - Non-accrual loans totaled $152 million, representing 0.61% of total loans outstanding as of December 31, 2025, a decrease from 0.74% in September 2025[12] - The single-family mortgage segment reported non-accrual loans of $56 million, or 1.17% of loans outstanding, down from 1.50% in the previous quarter[12] - The commercial real estate segment showed non-accrual loans of $22 million, or 0.26% of loans outstanding, reflecting improved credit quality[12] - The multifamily and commercial mortgage segment had non-accrual loans of $6 million, or 0.24% of loans outstanding, indicating stable performance[12] - The allowance for credit losses increased to $327,043 thousand, up from $307,431 thousand, indicating a rise of 6.0%[15] - The provision for credit losses was $1.2 million, indicating a cautious approach to potential loan defaults[6] - The allowance for credit losses to total loans held for investment was 1.33% in Q1 2025, consistent with 1.34% in Q4 2024[17] Financial Performance - The net interest income for Verdant Commercial Capital was $11.2 million for the three months ended December 31, 2025, with total non-interest income of $18.9 million[6] - Net income for Q1 2025 was $128,397 thousand, up from $112,352 thousand in Q4 2024, indicating a growth of 14.0%[17] - Net income for the quarter ended December 31, 2025, was $128.4 million, an increase from $112.4 million in the previous quarter[19] - Adjusted earnings for the same period were $130.2 million, compared to $120.4 million in the prior quarter, reflecting a growth of approximately 6.8%[19] - Net interest income after provision for credit losses was $306,709 thousand for Q1 2025, up from $273,795 thousand in Q4 2024, reflecting a growth of 12.0%[17] - Non-interest income increased to $53,378 thousand in Q1 2025, compared to $32,340 thousand in Q4 2024, marking a significant rise of 65.0%[17] Asset and Equity Growth - Total assets increased to $28,201,406 thousand as of December 31, 2025, up from $27,431,817 thousand in the previous quarter, representing a growth of 2.8%[15] - Total stockholders' equity increased to $2,930,092 thousand, up from $2,793,121 thousand, marking a growth of 4.9%[15] - Common stockholders' equity rose to $2.93 billion, up from $2.79 billion in the prior quarter, reflecting a growth of 5.0%[19] - Tangible common stockholders' equity (Non-GAAP) reached $2,708,542 thousand, compared to $2,561,131 thousand in the prior quarter, reflecting a significant increase[20] - Book value per common share improved to $51.70, a 4.8% increase from $49.31 in the previous quarter[15] - Tangible book value per common share (Non-GAAP) rose to $47.79, a 5.8% increase from $45.21 in the previous quarter[15] Operational Efficiency - The efficiency ratio for Q1 2025 was 47.93%, slightly improved from 48.32% in Q4 2024[17] - The return on average assets improved to 1.83% in Q1 2025, compared to 1.77% in Q4 2024[17] - The net interest margin for the banking business segment was 5.02% in Q1 2025, up from 4.80% in Q4 2024[17] Strategic Focus - The company continues to enhance its team and expand geographically, focusing on cross-selling banking and securities services[8] - The company plans to continue focusing on core business operations while managing potential losses effectively[19] - The company emphasized the importance of non-GAAP financial measures in providing a clearer picture of its operating performance[19] Other Financial Metrics - Interest and dividend income for Q1 2025 reached $513,845 thousand, an increase from $465,736 thousand in Q4 2024, representing a growth of 6.0%[17] - Loan originations for sale increased to $61,009 thousand in Q1 2025, compared to $47,122 thousand in Q4 2024, a growth of 29.9%[17] - Non-performing assets to total assets decreased to 0.56% in Q1 2025 from 0.64% in Q4 2024, indicating improved asset quality[17] - The company incurred acquisition-related costs of $2.4 million during the quarter, which impacted net income[19] - The company reported a provision for credit losses of $7.8 million in the quarter, which was not present in the previous quarter[19] - Income taxes for the quarter were reported at $(649) thousand, a decrease from $(2,681) thousand in the previous quarter, suggesting improved tax efficiency[20] - Goodwill and intangible assets decreased to $196,119 thousand from $205,747 thousand in the previous quarter, indicating potential asset optimization[20] - The company reported other costs of $(1,879) thousand, which remained consistent with previous quarters, suggesting stable operational expenses[20]