Axos Financial, Inc. (NYSE: AX) (“Axos” or the “Company”) today
announced unaudited financial results for the first fiscal quarter
ended September 30, 2023. Net income was $82.6 million, an increase
of 41.5% from $58.4 million for the quarter ended September 30,
2022. Diluted earnings per share was $1.38, an increase of $0.41,
or 42.3%, as compared to diluted earnings per share of $0.97 for
the quarter ended September 30, 2022.
Adjusted earnings and adjusted earnings per diluted common share
(“Adjusted EPS”), non-GAAP measures, which exclude non-cash
amortization expenses, non-recurring costs related to mergers and
acquisitions, and other non-recurring costs increased 18.1% to
$84.6 million and 19.5% to $1.41, respectively, for the quarter
ended September 30, 2023, compared to $71.6 million and $1.18,
respectively, for the quarter ended September 30, 2022.
First Quarter Fiscal 2024 Financial Summary
Three Months Ended
September 30,
(Dollars in thousands, except per share
data)
2023
2022
% Change
Net interest income
$
211,155
$
180,475
17.0
%
Non-interest income
$
34,507
$
27,208
26.8
%
Net income
$
82,645
$
58,407
41.5
%
Adjusted earnings (Non-GAAP)1
$
84,596
$
71,615
18.1
%
Diluted EPS
$
1.38
$
0.97
42.3
%
Adjusted EPS (Non-GAAP)1
$
1.41
$
1.18
19.5
%
1 See “Use of Non-GAAP Financial
Measures”
“We generated strong net interest income growth year-over-year
and linked quarter as a result of balanced loan growth and rising
net interest margins,” stated Greg Garrabrants, President and Chief
Executive Officer of Axos. “Our net interest margin increased 17
basis points linked quarter and 10 basis points year-over-year, as
we continue to offset rising deposit costs with higher loan yields.
Our nearly 17% return on equity and strong capital position allowed
us to make another accretive, strategic acquisition of the
LaVictoire Finance marine finance business and opportunistically
purchase our common stock at an attractive valuation.”
Other Highlights
- Net interest margin was 4.36% compared to 4.26% for the quarter
ended September 30, 2022
- Net loans for investment totaled $17.0 billion at September 30,
2023, an increase of $0.5 billion, or 12.1% annualized, from $16.5
billion at June 30, 2023
- Total deposits were $17.5 billion at September 30, 2023, an
increase of $0.4 billion, or 10.3% annualized, from $17.1 billion
at June 30, 2023
- Approximately 90% of total deposits were FDIC-insured or
collateralized at September 30, 2023
- After-tax net unrealized losses of $6.4 million on the
available-for-sale securities portfolio less than 0.5% of
stockholders’ equity at September 30, 2023
- Pretax income for the Securities Business was $12.6 million for
the three months ended September 30, 2023, up 40.9% from the three
months ended September 30, 2022
- Non-performing loans to total loans was 0.62%, down from 0.78%
at September 30, 2022
- Total capital to risk-weighted assets was 14.06% for Axos
Financial, Inc. at September 30, 2023, up from 13.82% at June 30,
2023
- Book value increased to $33.78 per share, from $28.35 at
September 30, 2022, an increase of 19.2%
- Repurchased $24.5 million of common stock during the quarter
ended September 30, 2023
- Repurchased $35.2 million of common stock between October 1,
2023 through October 20, 2023
First Quarter Fiscal 2024 Income Statement Summary
Net income was $82.6 million and earnings per diluted common
share was $1.38 for the three months ended September 30, 2023,
compared to net income of $58.4 million and earnings per diluted
common share of $0.97 for the three months ended September 30,
2022. Net interest income increased $30.7 million or 17.0% for the
three months ended September 30, 2023 compared to the three months
ended September 30, 2022, primarily due to an increase in interest
income from loans and from deposits in other financial
institutions, both attributable to higher rates earned and higher
average balances, partially offset by higher rates paid and higher
average interest-bearing deposit balances.
The provision for credit losses was $7.0 million for the three
months ended September 30, 2023, compared to $8.8 million for the
three months ended September 30, 2022. The decrease in the
provision for credit losses for the three months ended September
30, 2023, was primarily due to net loan growth of $498 million in
the current quarter compared to net loan growth of $1.1 billion in
the three months ended September 30, 2022.
Non-interest income increased to $34.5 million for the three
months ended September 30, 2023, compared to $27.2 million for the
three months ended September 30, 2022. The increase was primarily
due to higher broker-dealer fee income, banking and services fees
and advisory fee income.
Non-interest expense, comprised of various operating expenses,
increased $4.4 million to $120.5 million for the three months ended
September 30, 2023 from $116.1 million for the three months ended
September 30, 2022. The increase was primarily due to increased
salaries and related costs, advertising and promotional expenses,
data and operational processing expense and professional services,
partially offset by the absence of a $16.0 million accrual in the
prior-year quarter for an adverse legal judgment that has not been
finalized.
Balance Sheet Summary
Axos’ total assets increased by $0.5 billion, or 2.3%, to $20.8
billion, at September 30, 2023, from $20.3 billion at June 30,
2023, primarily due to an increase of $0.5 billion in loans held
for investment. Total liabilities increased by $0.4 billion, or
2.3%, to $18.8 billion at September 30, 2023, from $18.4 billion at
June 30, 2023, primarily due to an increase of $0.4 billion in
deposits. Stockholders’ equity increased by approximately $59.0
million, or 3.1%, to $2.0 billion at September 30, 2023 from $1.9
billion at June 30, 2023. The increase was primarily the result of
net income of $82.6 million, partially offset by purchases of
common stock of $24.5 million under the share repurchase
program.
Conference Call
A conference call and webcast will be held on Thursday, October
26, 2023 at 5:00 PM Eastern / 2:00 PM Pacific. Analysts and
investors may dial in and participate in the question/answer
session. To access the call, please dial: 877-407-8293. The
conference call will be webcast live, and both the webcast and the
earnings supplement may be accessed at Axos’ website,
investors.axosfinancial.com. For those unable to listen to the live
broadcast, a replay will be available until November 26, 2023, at
Axos’ website and telephonically by dialing toll-free number
877-660-6853, passcode 13741557.
About Axos Financial, Inc. and Subsidiaries
Axos Financial, Inc., with approximately $20.8 billion in
consolidated assets as of September 30, 2023, is the holding
company for Axos Bank, Axos Clearing LLC and Axos Invest, Inc. Axos
Bank provides consumer and business banking products nationwide
through its low-cost distribution channels and affinity partners.
Axos Clearing LLC (including its business division Axos Advisor
Services), with approximately $33.9 billion of assets under custody
and/or administration as of September 30, 2023, and Axos Invest,
Inc., provide comprehensive securities clearing services to
introducing broker-dealers and registered investment advisor
correspondents, and digital investment advisory services to retail
investors, respectively. Axos Financial, Inc.’s common stock is
listed on the NYSE under the symbol “AX” and is a component of the
Russell 2000® Index, the S&P SmallCap 600® Index, the KBW
Nasdaq Financial Technology Index, and the Travillian Tech-Forward
Bank Index. For more information on Axos Financial, Inc., please
visit http://investors.axosfinancial.com.
Segment Reporting
The Company operates through two segments: Banking Business and
Securities Business. In order to reconcile the two segments to the
consolidated totals, the Company includes parent-only activities
and intercompany eliminations. Inter-segment transactions are
eliminated in consolidation and primarily include non-interest
income earned by the Securities Business segment and non-interest
expense incurred by the Banking Business segment for cash sorting
fees related to deposits sourced from Securities Business segment
customers, as well as interest expense paid by the Banking Business
segment to each of the wholly-owned subsidiaries of the Company and
to the Company itself for their operating cash held on deposit with
the Business Banking segment.
The following tables present the operating results of the
segments and reconciliations:
Three Months Ended September
30, 2023
(Dollars in thousands)
Banking Business
Securities Business
Corporate/ Eliminations
Axos Consolidated
Net interest income
$
209,219
$
5,542
$
(3,606
)
$
211,155
Provision for credit losses
7,000
—
—
7,000
Non-interest income
12,557
34,555
(12,605
)
34,507
Non-interest expense
100,786
27,523
(7,803
)
120,506
Income before taxes
$
113,990
$
12,574
$
(8,408
)
$
118,156
Three Months Ended September
30, 2022
(Dollars in thousands)
Banking Business
Securities Business
Corporate/ Eliminations
Axos Consolidated
Net interest income
$
179,730
$
4,275
$
(3,530
)
$
180,475
Provision for credit losses
8,750
—
—
8,750
Non-interest income
10,712
29,165
(12,669
)
27,208
Non-interest expense
100,796
24,515
(9,224
)
116,087
Income before taxes
$
80,896
$
8,925
$
(6,975
)
$
82,846
Use of Non-GAAP Financial Measures
In addition to the results presented in accordance with
accounting principles generally accepted in the United States of
America (“GAAP”), this release includes non-GAAP financial measures
such as adjusted earnings, adjusted earnings per diluted common
share, and tangible book value per common share. Non-GAAP financial
measures have inherent limitations, may not be comparable to
similarly titled measures used by other companies and are not
audited. Readers should be aware of these limitations and should be
cautious as to their reliance on such measures. Although we believe
the non-GAAP financial measures disclosed in this release enhance
investors’ understanding of our business and performance, these
non-GAAP measures should not be considered in isolation, or as a
substitute for GAAP basis financial measures.
We define “adjusted earnings”, a non-GAAP financial measure, as
net income without the after-tax impact of non-recurring
acquisition-related costs (including amortization of intangible
assets related to acquisitions) and other costs (unusual or
non-recurring charges). Adjusted EPS, a non-GAAP financial measure,
is calculated by dividing non-GAAP adjusted earnings by the average
number of diluted common shares outstanding during the period. We
believe the non-GAAP measures of adjusted earnings and Adjusted EPS
provide useful information about Axos’ operating performance. We
believe excluding the non-recurring acquisition-related costs, and
other costs provides investors with an alternative understanding of
Axos’ core business.
Below is a reconciliation of net income, the nearest compatible
GAAP measure, to adjusted earnings and adjusted EPS (Non-GAAP) for
the periods shown:
Three Months Ended
September 30,
(Dollars in thousands, except per share
amounts)
2023
2022
Net income
$
82,645
58,407
Acquisition-related costs
2,790
2,734
Other costs1
—
16,000
Income tax effect
(839
)
(5,526
)
Adjusted earnings (Non-GAAP)
$
84,596
$
71,615
Average dilutive common shares
outstanding
$
59,808,322
$
60,486,394
Diluted EPS
$
1.38
$
0.97
Acquisition-related costs
0.05
0.04
Other costs1
—
0.26
Income tax effect
(0.02
)
(0.09
)
Adjusted EPS (Non-GAAP)
$
1.41
$
1.18
1 Other costs for the three months ended
September 30, 2022 reflect an accrual in the first quarter of
fiscal year 2023 as a result of an adverse legal judgement that has
not been finalized.
We define “tangible book value”, a non-GAAP financial measure,
as book value adjusted for goodwill and other intangible assets.
Tangible book value is calculated using common stockholders’ equity
minus servicing rights, goodwill and other intangible assets.
Tangible book value per common share, a non-GAAP financial measure,
is calculated by dividing tangible book value by the common shares
outstanding at the end of the period. We believe tangible book
value per common share is useful in evaluating the Company’s
capital strength, financial condition, and ability to manage
potential losses.
Below is a reconciliation of total stockholders’ equity, the
nearest compatible GAAP measure, to tangible book value per common
share (non-GAAP) as of the dates indicated:
September 30,
(Dollars in thousands, except per share
amounts)
2023
2022
Common stockholders’ equity
$
1,976,208
$
1,700,972
Less: servicing rights, carried at fair
value
29,338
26,373
Less: goodwill and intangible assets
149,572
160,429
Tangible common stockholders’ equity
(Non-GAAP)
$
1,797,298
$
1,514,170
Common shares outstanding at end of
period
58,503,976
59,998,673
Book Value per common share
33.78
28.35
Less: servicing rights, carried at fair
value per common share
0.50
0.44
Less: goodwill and other intangible assets
per common share
2.56
2.67
Tangible book value per common share
(Non-GAAP)
$
30.72
$
25.24
Forward-Looking Safe Harbor Statement
This press release contains forward-looking statements that
involve risks and uncertainties, including without limitation
statements relating to Axos’ financial prospects and other
projections of its performance and asset quality, Axos’ deposit
balances and capital ratios, Axos’ ability to continue to grow
profitably and increase its business, Axos’ ability to continue to
diversify its lending and deposit franchises, the anticipated
timing and financial performance of other offerings, initiatives,
and acquisitions, expectations of the environment in which Axos
operates and projections of future performance. These
forward-looking statements are made on the basis of the views and
assumptions of management regarding future events and performance
as of the date of this press release. Actual results and the timing
of events could differ materially from those expressed or implied
in such forward-looking statements as a result of risks and
uncertainties, including without limitation Axos’ ability to
successfully integrate acquisitions and realize the anticipated
benefits of the transactions, changes in the interest rate
environment, monetary policy, inflation, government regulation,
general economic conditions, changes in the competitive
marketplace, conditions in the real estate markets in which we
operate, risks associated with credit quality, our ability to
attract and retain deposits and access other sources of liquidity,
and the outcome and effects of litigation and other factors beyond
our control. These and other risks and uncertainties detailed in
Axos’ periodic reports filed with the Securities and Exchange
Commission, including its Annual Report on Form 10-K for the fiscal
year ended June 30, 2023, could cause actual results to differ
materially from those expressed or implied in any forward-looking
statements. Readers are cautioned not to place undue reliance on
these forward-looking statements, which speak only as of the date
of this press release. Axos undertakes no obligation to publicly
update or revise any forward-looking statements, whether as a
result of new information, future events or otherwise. All written
and oral forward-looking statements made in connection with this
press release, which are attributable to us or persons acting on
Axos’ behalf are expressly qualified in their entirety by the
foregoing information.
The following tables set forth certain selected financial data
concerning the periods indicated:
AXOS FINANCIAL, INC.
SELECTED CONSOLIDATED
FINANCIAL INFORMATION
(Unaudited – dollars in
thousands)
September 30,
2023
June 30, 2023
September 30,
2022
Selected Balance Sheet Data:
Total assets
$
20,825,206
$
20,348,469
$
18,407,078
Loans—net of allowance for credit
losses
16,955,041
16,456,728
15,211,573
Loans held for sale, carried at fair
value
8,014
23,203
9,463
Loans held for sale, lower of cost or fair
value
—
776
10,476
Allowance for credit losses
170,870
166,680
155,472
Securities—trading
640
758
75
Securities—available-for-sale
236,726
232,350
257,634
Securities borrowed
96,424
134,339
87,622
Customer, broker-dealer and clearing
receivables
285,423
374,074
410,842
Total deposits
17,565,741
17,123,108
15,176,631
Advances from the FHLB
90,000
90,000
112,500
Borrowings, subordinated notes and
debentures
447,733
361,779
425,818
Securities loaned
116,446
159,832
206,889
Customer, broker-dealer and clearing
payables
341,915
445,477
500,584
Total stockholders’ equity
1,976,208
1,917,159
1,700,972
Capital Ratios:
Equity to assets at end of period
9.49
%
9.42
%
9.24
%
Axos Financial, Inc.:
Tier 1 leverage (to adjusted average
assets)
9.27
%
8.96
%
8.98
%
Common equity tier 1 capital (to
risk-weighted assets)
11.11
%
10.94
%
9.97
%
Tier 1 capital (to risk-weighted
assets)
11.11
%
10.94
%
9.97
%
Total capital (to risk-weighted
assets)
14.06
%
13.82
%
12.90
%
Axos Bank:
Tier 1 leverage (to adjusted average
assets)
9.99
%
9.68
%
10.30
%
Common equity tier 1 capital (to
risk-weighted assets)
11.69
%
11.63
%
10.87
%
Tier 1 capital (to risk-weighted
assets)
11.69
%
11.63
%
10.87
%
Total capital (to risk-weighted
assets)
12.65
%
12.50
%
11.71
%
Axos Clearing LLC:
Net capital
$
101,391
$
35,221
$
49,183
Excess capital
$
96,211
$
29,905
$
42,324
Net capital as a percentage of aggregate
debit items
39.14
%
13.25
%
14.34
%
Net capital in excess of 5% aggregate
debit items
$
88,440
$
21,930
$
32,035
AXOS FINANCIAL, INC.
SELECTED CONSOLIDATED
FINANCIAL INFORMATION
(Unaudited – dollars in
thousands, except per share data)
At or for the Three Months
Ended
September 30,
2023
2022
Selected Income Statement Data:
Interest and dividend income
$
363,952
$
223,786
Interest expense
152,797
43,311
Net interest income
211,155
180,475
Provision for credit losses
7,000
8,750
Net interest income after provision for
credit losses
204,155
171,725
Non-interest income
34,507
27,208
Non-interest expense
120,506
116,087
Income before income tax expense
118,156
82,846
Income tax expense
35,511
24,439
Net income
$
82,645
$
58,407
Per Common Share Data:
Net income:
Basic
$
1.40
$
0.98
Diluted
$
1.38
$
0.97
Adjusted earnings per common share
(Non-GAAP)1
$
1.41
$
1.18
Book value per common share
$
33.78
$
28.35
Tangible book value per common share
(Non-GAAP)1
$
30.72
$
25.24
Weighted average number of common
shares outstanding:
Basic
58,949,038
59,854,584
Diluted
59,808,322
60,486,394
Common shares outstanding at end of
period
58,503,976
59,998,673
Common shares issued at end of period
69,826,263
69,151,152
Performance Ratios and Other
Data:
Loan originations for investment
$
2,605,332
$
2,486,224
Loan originations for sale
52,858
70,073
Return on average assets
1.64
%
1.32
%
Return on average common stockholders’
equity
16.91
%
13.91
%
Interest rate spread2
3.37
%
3.66
%
Net interest margin3
4.36
%
4.26
%
Net interest margin3 – Banking Business
Segment
4.46
%
4.50
%
Efficiency ratio4
49.05
%
55.90
%
Efficiency ratio4 – Banking Business
Segment
45.44
%
52.93
%
Asset Quality Ratios:
Net annualized charge-offs to average
loans
0.04
%
0.05
%
Non-performing loans and leases to total
loans
0.62
%
0.78
%
Non-performing assets to total assets
0.56
%
0.68
%
Allowance for credit losses - loans to
total loans held for investment
1.00
%
1.01
%
Allowance for credit losses - loans to
non-performing loans
159.80
%
129.04
%
1
See “Use of Non-GAAP Financial Measures”
herein.
2
Interest rate spread represents the
difference between the annualized weighted average yield on
interest-earning assets and the annualized weighted average rate
paid on interest-bearing liabilities.
3
Net interest margin represents annualized
net interest income as a percentage of average interest-earning
assets.
4
Efficiency ratio represents non-interest
expense as a percentage of the aggregate of net interest income and
non-interest income.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20231026374664/en/
Investor Relations Contact: Johnny Lai, CFA SVP, Corporate
Development & Investor Relations 858-649-2218
jlai@axosfinancial.com
Axos Financial (NYSE:AX)
과거 데이터 주식 차트
부터 4월(4) 2024 으로 5월(5) 2024
Axos Financial (NYSE:AX)
과거 데이터 주식 차트
부터 5월(5) 2023 으로 5월(5) 2024