Axos Financial(US:AX)2023-01-25 16:00Financial Performance - Axos Financial, Inc. reported net income of $81,552,000 for the three months ended December 31, 2022, compared to $60,787,000 for the same period in 2021, representing a 34% increase[130]. - Adjusted earnings for the same period were $83,354,000, up from $62,917,000 in 2021, reflecting a 32% year-over-year growth[130]. - The company’s adjusted earnings per diluted common share (EPS) increased to $1.38 for the three months ended December 31, 2022, compared to $1.04 in the prior year, marking a 32% rise[130]. - For the three months ended December 31, 2022, the company reported net income of $81.6 million, or $1.35 per diluted share, compared to $60.8 million, or $1.00 per diluted share for the same period in 2021, representing a 34.5% increase in net income[139]. - For the six months ended December 31, 2022, net income was $140.0 million, or $2.31 per diluted share, compared to $121.0 million, or $1.99 per diluted share for the same period in 2021, indicating a 15.7% increase in net income[139]. Assets and Equity - As of December 31, 2022, common stockholders' equity was $1,787,559,000, an increase from $1,523,157,000 in 2021, indicating a 17% growth[131]. - The company has approximately $18.7 billion in total assets, indicating a strong financial position[118]. - Total assets increased to $18,741,035 thousand as of December 31, 2022, up from $17,401,165 thousand as of June 30, 2022, reflecting an increase of 7.7%[135]. - Total assets for the company reached $17.4 billion as of December 31, 2022, compared to $13.5 billion as of December 31, 2021[173]. - Stockholders' equity increased by $144.6 million to $1.79 billion at December 31, 2022, driven by net income of $140.0 million for the six months ended December 31, 2022[207]. Income and Expenses - Net interest income for the three months ended December 31, 2022, was $199,910 thousand, compared to $145,568 thousand for the same period in 2021, marking a 37.2% increase[137]. - Total interest and dividend income for the six months ended December 31, 2022, increased 59.6% to $503.4 million compared to $315.4 million for the same period in 2021[140]. - Total interest expense for the three months ended December 31, 2022, was $79.7 million, an increase of 592.4% from $11.5 million in the same period of 2021[140]. - Total non-interest expenses increased to $107.5 million for Q4 2022 from $86.0 million in Q4 2021, driven by higher salaries, advertising, and professional services[154]. - Non-interest income decreased by $2.5 million to $28.3 million for Q4 2022 compared to Q4 2021, primarily due to lower mortgage banking income and prepayment penalty fee income[152]. Loans and Deposits - The company’s total deposits rose to $15,690,494 thousand as of December 31, 2022, compared to $13,946,422 thousand as of June 30, 2022, representing a 12.5% increase[135]. - Loan originations for investment totaled $2,013,576 thousand for the three months ended December 31, 2022, compared to $2,525,871 thousand for the same period in 2021, reflecting a decrease of 20.2%[137]. - Net loans held for investment rose by 9.8% to $15.5 billion at December 31, 2022, from $14.1 billion at June 30, 2022, due to loan originations of $4.5 billion[189]. - Total deposits rose by $1.7 billion, or 12.5%, to $15.69 billion at December 31, 2022, compared to $13.95 billion at June 30, 2022[198]. Capital and Ratios - The common equity tier 1 capital ratio was 10.55% as of December 31, 2022, up from 9.86% as of June 30, 2022, indicating improved capital strength[135]. - The Tier 1 capital ratio to risk-weighted assets was 10.55% as of December 31, 2022, exceeding the minimum requirement of 6.0%[220]. - The total capital ratio to risk-weighted assets was 13.49% as of December 31, 2022, above the minimum requirement of 10.0%[220]. - The company and Bank met all capital adequacy requirements as of December 31, 2022, and were classified as "well capitalized" under regulatory standards[216]. Interest Rate and Market Risk - The projected net interest income for the next 12 months is expected to increase by 6.5% to $893,723 under a 200 basis point increase scenario[230]. - The net present value of assets is projected to decrease by 5.8% to $1,710,148 under a 200 basis point increase in interest rates[232]. - Interest rate risk is managed by setting limits on the size and duration of positions in the Securities Business[235]. - The company is exposed to market risk through its Securities Business, which includes trading activities and securities lending[233]. Operational Efficiency - The efficiency ratio improved to 47.11% for the three months ended December 31, 2022, down from 48.78% for the same period in 2021, indicating better operational efficiency[137]. - The efficiency ratio for the Banking Business segment increased to 46.05% for the three months ended December 31, 2022, compared to 39.39% for the same period in 2021[171].