Axos Financial(US:AX)2022-10-27 16:00Financial Performance - Axos Financial, Inc. reported net income of $58.4 million for the three months ended September 30, 2022, compared to $60.2 million for the same period in 2021, reflecting a decrease of approximately 3%[128] - Adjusted earnings for the same period were $71.6 million, up from $62.2 million year-over-year, representing an increase of about 15%[128] - The adjusted earnings per diluted common share increased to $1.18 from $1.03, marking a growth of approximately 14.6%[128] - Net income for the three months ended September 30, 2022, was $58.4 million, or $0.97 per diluted share, compared to $60.2 million, or $0.99 per diluted share for the same period in 2021[137] Assets and Equity - Common stockholders' equity rose to $1.7 billion as of September 30, 2022, compared to $1.46 billion a year earlier, indicating an increase of about 16.5%[129] - The Company has approximately $18.4 billion in total assets, indicating a diversified financial services portfolio[117] - Total assets increased to $18.4 billion as of September 30, 2022, compared to $14.9 billion as of September 30, 2021[133] - Total assets increased to $17,640.6 million in 2022 from $14,502.4 million in 2021, representing a growth of 21.4%[1] Income and Expenses - Net interest income increased by 23.1% to $180.5 million for the three months ended September 30, 2022, compared to $146.6 million for the same period in 2021[138] - Total interest and dividend income rose by 41.4% to $223.8 million for the three months ended September 30, 2022, compared to $158.3 million in the same period of 2021[139] - Total non-interest expenses increased to $116.1 million in 2022 from $84.4 million in 2021, marking a rise of 37.5%[1] - Non-interest income was $27.2 million for the three months ended September 30, 2022, compared to $26.7 million for the same period in 2021[135] Loans and Credit Losses - Provision for credit losses was $8.75 million for the three months ended September 30, 2022, compared to $4.0 million for the same period in 2021[135] - The average balance of loans increased by 26.6% for the three months ended September 30, 2022, compared to the same period in 2021[139] - Net loans held for investment rose 8.0% to $15.2 billion at September 30, 2022, up from $14.1 billion at June 30, 2022, driven by loan originations of $2.5 billion[177] - The provision for credit losses was $8.8 million for the three months ended September 30, 2022, compared to $4.0 million for the same period in 2021[185] Banking and Securities Segments - The Banking Business segment focuses on online banking and lending services, while the Securities Business segment includes clearing and advisory services[120] - For the three months ended September 30, 2022, the Banking Business segment reported income before taxes of $80.9 million, a decrease from $90.3 million in the same period of 2021, attributed to increased non-interest expenses and provisions for credit losses[162] - The Securities Business segment reported income before taxes of $8.9 million for the three months ended September 30, 2022, compared to $9 thousand in the same period of 2021, due to higher non-interest income[172] Regulatory and Capital Adequacy - The Company is subject to regulation by the Federal Reserve and the OCC, ensuring compliance with financial standards[117] - The Company and Bank met all capital adequacy requirements as of September 30, 2022, and were classified as "well capitalized" under regulatory standards[204] - The Tier 1 capital ratio was 9.97% as of September 30, 2022, compared to 9.86% as of June 30, 2022[206] Market and Risk Exposure - The Securities Business is exposed to market risk primarily due to fluctuations in interest rates and market prices, impacting customer transactions and trading activities[221] - The net present value of assets decreased by 4.1% to $1,856,089 thousand with a 200 basis point increase in interest rates[220]