Axos Financial(AX) - 2024 Q3 - Quarterly Results

Loan and Asset Management - Axos reported a loan balance of $19.317 billion for Q3 FY24, an increase of $457 million from Q2 FY24[2] - The company completed a purchase of $1.25 billion in loans from the FDIC at a 37% discount on December 7, 2023[4] - The total commercial real estate (CRE) loan balance was $5.220 billion, with a weighted average loan-to-value (LTV) ratio of 40%[5] - As of March 31, 2024, 57% of fixed and hybrid rate loans in the portfolio will reprice within 5 years[9] - Non-performing loans (NPLs) totaled $122 million, with a NPL ratio of 0.63%[14] - The weighted average yield on total loans was 6.8% as of March 31, 2024[4] - Loan originations for investment reached $2,801,110,000, an increase from $2,739,261,000 in the previous quarter[19] - The allowance for credit losses to total loans held for investment was 1.36%, slightly up from 1.33% in the previous quarter, indicating stable asset quality[19] Financial Performance - Net income for the quarter ended March 31, 2024, was $110,720,000, a decrease of 27.1% from $151,771,000 in the previous quarter[19] - Net interest income after provision for credit losses increased to $255,606,000, up 18.8% from $215,106,000 in the previous quarter[19] - Adjusted earnings for the quarter were $112,655,000, compared to $92,452,000 in the previous quarter, reflecting a 21.5% increase[22] - Diluted earnings per share (EPS) for the quarter was $1.91, down from $2.62 in the previous quarter, representing a decrease of 27.1%[22] - Non-interest income for the quarter was $33,163,000, a significant decrease from $124,129,000 in the previous quarter, indicating challenges in non-interest revenue streams[19] Capital and Equity - Total stockholders' equity increased to $2,196,293 thousand, up 5.7% from $2,078,224 thousand in 2023[17] - Common equity tier 1 capital to risk-weighted assets improved to 11.47% in 2024, compared to 10.97% in 2023[17] - Tier 1 leverage ratio decreased slightly to 9.33% in 2024 from 9.39% in 2023[17] - Tangible book value per common share increased to $35.46, compared to $33.45 in the previous quarter, reflecting improved capital strength[19] - Common stockholders' equity increased to $2,196,293 thousand as of March 31, 2024, up from $2,078,224 thousand at December 31, 2023, representing a growth of 5.3%[24] - Tangible common stockholders' equity (Non-GAAP) rose to $2,023,839 thousand, compared to $1,903,388 thousand in the previous quarter, reflecting an increase of 6.3%[24] - Book value per common share improved to $38.48, up from $36.53 in the prior quarter, indicating a growth of 5.4%[24] Deposits and Customer Base - Approximately 90% of deposits are FDIC-insured or collateralized, totaling $10.9 billion in consumer direct deposits[10] - The company serves approximately 40% of U.S. Chapter 7 bankruptcy trustees, indicating a strong market position in this segment[10] - Total deposits rose to $19,103,532 thousand, reflecting a growth of 4.9% from $18,203,912 thousand in 2023[17] Operational Efficiency - The efficiency ratio improved to 45.20%, compared to 34.54% in the previous quarter, indicating a decrease in operational efficiency[19] - The net interest margin for the quarter was 4.87%, up from 4.55% in the previous quarter, showing improved profitability on interest-earning assets[19] Allowance for Credit Losses - The allowance for credit losses (ACL) was $258 million, representing 1.3% of total loans outstanding[13] - Allowance for credit losses increased to $257,522 thousand, compared to $251,749 thousand in 2023, indicating a rise of 2.9%[17]