Core Viewpoint - Axos Financial reported strong fourth-quarter results for the period ending June 30, 2025, with adjusted earnings per share of $1.94, exceeding analyst expectations, driven by loan and deposit growth, efficient cost control, and technology investments, despite a significant increase in provisions for credit losses [1][2][5]. Financial Performance - Adjusted EPS (Non-GAAP) was $1.94, beating estimates of $1.78, and up 6.0% from $1.83 in Q4 2024 [2]. - Revenue (GAAP) reached $321.4 million, surpassing expectations of $312.3 million, and reflecting a 10.5% increase from $290.9 million in Q4 2024 [2]. - Net interest income grew 7.7% year-over-year to $280.2 million, while non-interest income surged 33.8% to $41.3 million [2][5][6]. - Net income for the quarter was $110.7 million, a 5.5% increase from $104.9 million in the same quarter last year [2]. Business Overview and Strategy - Axos Financial operates as a tech-driven bank, focusing on consumer and commercial banking, lending, wealth management, and securities services, with fully digital operations [3][4]. - The company aims to leverage proprietary digital technology for profit growth while offering a diversified suite of banking and investment products [4]. Growth Metrics - Total loans increased by $856 million to $21.0 billion, with a year-over-year growth rate of 9.4% [5]. - Deposit balances rose to $20.8 billion, reflecting a 7.6% increase from the previous year [5]. - The net interest margin improved to 4.84%, up from 4.65% in Q4 FY2024 [5]. Credit Quality and Provisions - Provision for credit losses increased to $15.0 million from $6.0 million in Q4 FY2024, attributed to stronger loan growth and updated economic forecasts [8]. - Actual net charge-offs remained low at 0.16% of average loans, while non-performing assets decreased to 0.71% of total assets [8][9]. Technology Investments - The company increased investments in artificial intelligence and process automation, with operating expenses growing 7.2% year-over-year [10]. - A proprietary professional workstation for clearing clients was introduced, developed using low-code software for efficiency [7][10]. Future Outlook - Management expects net interest margin to remain at the higher end of the 4.25% to 4.35% target range and projects annual loan growth in the high single-digit to low teens percent range [12]. - A reduction in the tax rate by 3 percentage points for FY2026 is anticipated due to changes in California state tax methodology [13].