Axos Financial Shares Up 34% in 12 Months as One Fund Discloses $3 Million Trim

Core Viewpoint - PMC FIG Opportunities sold 33,048 shares of Axos Financial, valued at approximately $2.72 million, indicating a significant reduction in their holdings [2][6]. Company Overview - Axos Financial is a digital-focused regional bank providing a wide range of financial services, leveraging technology for operational efficiency [5]. - The company reported a total revenue of $1.3 billion and a net income of $456.63 million [4]. Financial Performance - For the December quarter, Axos Financial achieved a net income of $128.4 million, an increase from $104.7 million year-over-year, with diluted EPS rising to $2.22 [10]. - Net interest income grew by 18.4% year-over-year to $331.7 million, supported by loan growth that increased ending balances to $24.3 billion [10]. - The net interest margin expanded to 4.94%, and credit metrics improved, with net charge-offs at just 0.04% of average loans [10]. Market Position - Following the sale, Axos Financial now represents only 0.89% of PMC FIG Opportunities' assets under management (AUM), down from 5.1% in the previous quarter [7]. - The stock price of Axos Financial was $89.47, reflecting a 34% increase over the past year, outperforming the S&P 500, which rose about 16% in the same period [7]. Investment Implications - The reduction in holdings from over 5% to under 1% suggests a focus on risk management rather than a fundamental issue with the company [9]. - The long-term investment thesis for Axos remains strong, as the company continues to grow loans, deposits, and earnings while maintaining credit quality [11].