Form 8-K - Current report

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): January 30, 2024

Axos Financial, Inc.

(Exact name of registrant as specified in its charter)




Delaware	001-37709	33-0867444
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification Number)

9205 West Russell Road, Ste 400

Las Vegas, NV 89148

(Address of principal executive offices and zip code)

Registrant’s telephone number, including area code: (858) 649-2218


Securities registered pursuant to Section 12(b) of the Act:
Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common stock, $0.01 par value	AX	New York Stock Exchange

Not Applicable

(Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

☐ Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02 Results of Operations and Financial Condition

On January 30, 2024, Axos Financial, Inc. (the “Registrant” or the “Company”) issued a press release announcing its fiscal second quarter results of operations for the period ended December 31, 2023. The press release is furnished as Exhibit 99.1. In addition, the Registrant is furnishing the related quarterly earnings supplement in two different formats as Exhibits 99.2 and 99.3.

Pursuant to General Instruction B.2. of Form 8-K, the information in this Item 2.02 of Form 8-K, including Exhibit 99.1, 99.2 and 99.3 is being furnished pursuant to Item 2.02 and shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934 or otherwise be subject to the liabilities of that section, nor is it incorporated by reference into any filing of the Registrant under the Securities Act of 1933 or the Securities Exchange Act of 1934, whether made before or after the date hereof, regardless of any general incorporation language in such filing.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits.


Exhibit						Description
99.1						Press Release
99.2						Press Release Earnings Supplement
99.3						Press Release Earnings Supplement PDF
104						Cover Page Interactive Data File (embedded within the Inline XBRL document)

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Axos Financial, Inc.

Date:

January 30, 2024

By:

/s/ Derrick K. Walsh

Derrick K. Walsh

EVP and Chief Financial Officer

Axos Financial, Inc. Reports Record Second Quarter Fiscal 2024 Results

LAS VEGAS, NV – (BUSINESS WIRE) – January 30, 2024 – Axos Financial, Inc. (NYSE: AX) (“Axos” or the “Company”) today announced unaudited financial results for the second fiscal quarter ended December 31, 2023. Net income was $151.8 million, an increase of 86.1% from $81.6 million for the quarter ended December 31, 2022. Diluted earnings per share was $2.62, an increase of $1.27, or 94.1%, as compared to diluted earnings per share of $1.35 for the quarter ended December 31, 2022.

Adjusted earnings and adjusted earnings per diluted common share (“Adjusted EPS”), non-GAAP measures, which exclude non-cash amortization expenses, non-recurring items related to mergers and acquisitions, including certain gains and provisions resulting from the Company’s FDIC Loan Purchase (as described below), and other non-recurring costs increased $9.1 million to $92.5 million and increased $0.22 to $1.60, respectively, for the quarter ended December 31, 2023, compared to $83.4 million and $1.38, respectively, for the quarter ended December 31, 2022.

Second Quarter Fiscal 2024 Financial Summary



	Three Months Ended December 31,
(Dollars in thousands, except per share data)	2023		2022		% Change
Net interest income	$	228,606	$	199,910	14.4	%
Non-interest income	$	124,129	$	28,329	338.2	%
Net income	$	151,771	$	81,552	86.1	%
Adjusted earnings (Non-GAAP)1	$	92,452	$	83,354	10.9	%
Diluted EPS	$	2.62	$	1.35	94.1	%
Adjusted EPS (Non-GAAP)1	$	1.60	$	1.38	15.9	%
1 See “Use of Non-GAAP Financial Measures”

For the six months ended December 31, 2023, net income was $234.4 million, an increase of 67.5% from net income of $140.0 million for the six months ended December 31, 2022. Diluted earnings per share were $3.98 for the six months ended December 31, 2023, an increase of $1.67, or 72.3%, as compared to diluted earnings per share of $2.31 for the six months ended December 31, 2022.

“Our record second quarter earnings were driven by strong organic loan and deposit growth, further net interest margin expansion, disciplined expense management and a gain associated with an opportunistic loan purchase from the FDIC,” stated Greg Garrabrants, President and Chief Executive Officer of Axos. “Excluding the one-time gain and the provision for credit losses associated with the FDIC Loan Purchase, diluted EPS was up 15.7% year-over-year. Our strong returns, margins and excess capital provide us with flexibility to allocate capital to opportunities where we see the best risk-adjusted returns.”

“Our credit quality remains resilient, with annualized net charge-offs to average loans declining by 3 basis points year-over-year to 0.02% in the quarter ended December 31, 2023,” stated Derrick Walsh, Executive Vice President and Chief Financial Officer of Axos. “Our provision for credit losses was $13.5 million this quarter to account for our strong organic loan growth and the FDIC loan purchase. Additionally, we added approximately $75 million of allowance for credit losses for the FDIC loans we purchased, bringing our total allowance for credit losses to 1.33% of total loans held for investment.”

Other Highlights

•Net interest margin was 4.55% for the quarter ended December 31, 2023 compared to 4.49% for the quarter ended December 31, 2022

•Net loans for investment totaled $18.3 billion at December 31, 2023, an increase of $1.8 billion, or 22.0% annualized, from $16.5 billion at June 30, 2023

•Total deposits were $18.2 billion at December 31, 2023, an increase of $1.1 billion, or 12.6% annualized, from $17.1 billion at June 30, 2023

•Completed the purchase from the Federal Deposit Insurance Corporation (“FDIC”) of two performing commercial real estate and multi-family loan pools with a combined unpaid principal balance of approximately $1.25 billion at 63% of par value (the “FDIC Loan Purchase”), and recognized a $65 million after-tax gain on the purchase in the quarter ended December 31, 2023 while increasing the allowance for credit losses by $75 million

•Approximately 90% of total deposits were FDIC-insured or collateralized at December 31, 2023

•After-tax net unrealized losses of $3.3 million on the available-for-sale securities portfolio, less than 0.5% of stockholders’ equity at December 31, 2023

•Net annualized charge-offs to average loans was 0.02% for the quarter ended December 31, 2023, down from 0.04% for the prior quarter and 0.05% for the quarter ended December 31, 2022

•Total capital to risk-weighted assets was 13.79% for Axos Financial, Inc. at December 31, 2023, up from 13.82% at June 30, 2023

•Book value increased to $36.53 per share, from $29.79 at December 31, 2022, an increase of 22.6%

•Repurchased $58.7 million of common stock during the quarter ended December 31, 2023 at an average price of $36.49 per share

Second Quarter Fiscal 2024 Income Statement Summary

Net income was $151.8 million and earnings per diluted common share was $2.62 for the three months ended December 31, 2023, compared to net income of $81.6 million and earnings per diluted common share of $1.35 for the three months ended December 31, 2022. Net interest income increased $28.7 million or 14.4% for the three months ended December 31, 2023 compared to the three months ended December 31, 2022, primarily due to an increase in interest income from loans 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 $13.5 million for the three months ended December 31, 2023, compared to $3.0 million for the three months ended December 31, 2022. The provision for credit losses for the three months ended December 31, 2023, was primarily due to loan growth in the Commercial & Industrial - Non-RE portfolio and the loans acquired in the FDIC Loan Purchase.

Non-interest income increased to $124.1 million for the three months ended December 31, 2023, compared to $28.3 million for the three months ended December 31, 2022. The increase was primarily due to a $92.4 million pre-tax gain on the FDIC Loan Purchase and an increase in broker-dealer fee income.

Non-interest expense, comprised of various operating expenses, increased $13.8 million to $121.8 million for the three months ended December 31, 2023 from $108.0 million for the three months ended December 31, 2022. The increase was primarily due to increased salaries and related costs, data and operational processing expense and broker-dealer clearing charges.

Balance Sheet Summary

Axos’ total assets increased by $1.3 billion, or 6.3%, to $21.6 billion, at December 31, 2023, from $20.3 billion at June 30, 2023, primarily due to an increase of $1.8 billion in loans, partially offset by a decrease in cash of $0.6 billion. Total liabilities increased by $1.1 billion, or 6.0%, to $19.5 billion at December 31, 2023, from $18.4 billion at June 30, 2023, primarily due to an increase of $1.1 billion in deposits. Stockholders’ equity increased by approximately $0.2 billion, or 8.4%, to $2.1 billion at December 31, 2023 from $1.9 billion at June 30, 2023. The increase was primarily the result of net income of $234.4 million, partially offset by purchases of common stock of $83.2 million under the share repurchase program.

Conference Call

A conference call and webcast will be held on Tuesday, January 30, 2024 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 February 29, 2024, at Axos’ website and telephonically by dialing toll-free number 877-660-6853, passcode 13743449.

About Axos Financial, Inc. and Subsidiaries

Axos Financial, Inc., with approximately $21.6 billion in consolidated assets as of December 31, 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 $34.4 billion of assets under custody and/or administration as of December 31, 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:


	For the Three Months Ended December 31, 2023
(Dollars in thousands)	Banking Business		Securities Business		Corporate/Eliminations		Axos Consolidated
Net interest income	$	226,635	$	6,080	$	(4,109)	$	228,606
Provision for credit losses	13,500		—		—		13,500
Non-interest income	103,779		32,641		(12,291)		124,129
Non-interest expense	102,282		27,968		(8,411)		121,839
Income before income taxes	$	214,632	$	10,753	$	(7,989)	$	217,396

	For the Three Months Ended December 31, 2022
(Dollars in thousands)	Banking Business		Securities Business		Corporate/Eliminations		Axos Consolidated
Net interest income	$	198,545	$	4,876	$	(3,511)	$	199,910
Provision for credit losses	3,001		—		—		3,001
Non-interest income	10,557		36,004		(18,232)		28,329
Non-interest expense	96,783		25,271		(14,027)		108,027
Income before income taxes	$	109,318	$	15,609	$	(7,716)	$	117,211

	For the Six Months Ended December 31, 2023
(Dollars in thousands)	Banking Business		Securities Business		Corporate/Eliminations		Axos Consolidated
Net interest income	$	435,854	$	11,622	$	(7,715)	$	439,761
Provision for credit losses	20,500		—		—		20,500
Non-interest income	116,336		67,196		(24,896)		158,636
Non-interest expense	203,068		55,491		(16,214)		242,345
Income before income taxes	$	328,622	$	23,327	$	(16,397)	$	335,552

	For the Six Months Ended December 31, 2022
(Dollars in thousands)	Banking Business		Securities Business		Corporate/Eliminations		Axos Consolidated
Net interest income	$	378,275	$	9,151	$	(7,041)	$	380,385
Provision for credit losses	11,751		—		—		11,751
Non-interest income	21,269		65,169		(30,901)		55,537
Non-interest expense	197,579		49,786		(23,251)		224,114
Income before income taxes	$	190,214	$	24,534	$	(14,691)	$	200,057

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 items (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				Six Months Ended
	December 31,				December 31,
(Dollars in thousands, except per share amounts)	2023		2022		2023		2022
Net income	$	151,771	$	81,552	$	234,416	$	139,959
FDIC Loan Purchase - Gain on purchase	(92,397)		—		(92,397)		—
FDIC Loan Purchase - Provision for credit losses	4,648		—		4,648		—
Acquisition-related costs	2,780		2,590		5,570		5,324
Other costs1	—		—		—		16,000
Income tax effect	25,650		(788)		24,811		(6,406)
Adjusted earnings (Non-GAAP)	$	92,452	$	83,354	$	177,048	$	154,877

Average dilutive common shares outstanding	57,932,834		60,514,635		58,930,427		60,540,353

Diluted EPS	$	2.62	$	1.35	$	3.98	$	2.31
FDIC Loan Purchase - Gain on purchase	(1.59)		—		(1.57)		—
FDIC Loan Purchase - Provision for credit losses	0.08		—		0.08		—
Acquisition-related costs	0.05		0.04		0.09		0.09
Other costs1	—		—		—		0.26
Income tax effect	0.44		(0.01)		0.42		(0.10)
Adjusted EPS (Non-GAAP)	$	1.60	$	1.38	$	3.00	$	2.56
1 Other costs for the six months ended December 31, 2022 reflect an accrual recorded 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:


	December 31,
(Dollars in thousands, except per share amounts)	2023		2022
Common stockholders’ equity	$	2,078,224	$	1,787,559
Less: servicing rights, carried at fair value	28,043		25,526
Less: goodwill and intangible assets—net	146,793		157,585
Tangible common stockholders’ equity (Non-GAAP)	$	1,903,388	$	1,604,448

Common shares outstanding at end of period	56,898,377		60,000,079

Book value per common share	36.53		29.79
Less: servicing rights, carried at fair value per common share	0.49		0.43
Less: goodwill and other intangible assets—net per common share	2.59		2.62
Tangible book value per common share (Non-GAAP)	$	33.45	$	26.74

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.

Investor Relations Contact:

Johnny Lai, CFA

SVP, Corporate Development & Investor Relations

858-649-2218

jlai@axosfinancial.com

AXOS FINANCIAL, INC.

SELECTED CONSOLIDATED FINANCIAL INFORMATION

(Unaudited – dollars in thousands)


	December 31, 2023			June 30, 2023			December 31, 2022
Selected Balance Sheet Data:
Total assets	21,623,764			$	20,348,469		$	18,741,035
Loans—net of allowance for credit losses	18,264,354			16,456,728			15,473,212
Loans held for sale, carried at fair value	13,468			23,203			4,292
Loans held for sale, lower of cost or fair value	—			776			455
Allowance for credit losses	251,749			166,680			157,218
Trading securities	329			758			372
Available-for-sale securities	239,812			232,350			248,062

Securities borrowed	145,176			134,339			58,846
Customer, broker-dealer and clearing receivables	265,857			374,074			272,579
Total deposits	18,203,912			17,123,108			15,690,494

Advances from the Federal Home Loan Bank	90,000			90,000			100,000
Borrowings, subordinated notes and debentures	341,086			361,779			334,077
Securities loaned	155,492			159,832			156,008
Customer, broker-dealer and clearing payables	368,885			445,477			420,947
Total stockholders’ equity	2,078,224			1,917,159			1,787,559

Capital Ratios:
Equity to assets at end of period	9.61		%	9.42		%	9.54		%
Axos Financial, Inc.:
Tier 1 leverage (to adjusted average assets)	9.39		%	8.96		%	9.06		%
Common equity tier 1 capital (to risk-weighted assets)	10.97		%	10.94		%	10.55		%
Tier 1 capital (to risk-weighted assets)	10.97		%	10.94		%	10.55		%
Total capital (to risk-weighted assets)	13.79		%	13.82		%	13.49		%
Axos Bank:
Tier 1 leverage (to adjusted average assets)	10.22		%	9.68		%	10.05		%
Common equity tier 1 capital (to risk-weighted assets)	12.26		%	11.63		%	11.28		%
Tier 1 capital (to risk-weighted assets)	12.26		%	11.63		%	11.28		%
Total capital (to risk-weighted assets)	13.25		%	12.50		%	12.13		%
Axos Clearing LLC:
Net capital	$	103,454		$	35,221		$	60,334
Excess capital	$	98,397		$	29,905		$	55,977
Net capital as a percentage of aggregate debit items	40.92		%	13.25		%	27.69		%
Net capital in excess of 5% aggregate debit items	$	90,812		$	21,930		$	49,441

AXOS FINANCIAL, INC.

SELECTED CONSOLIDATED FINANCIAL INFORMATION

(Unaudited – dollars in thousands, except per share data)


	As of or for the Three Months Ended						As of or for the Six Months Ended
	December 31,						December 31,
(Dollars in thousands, except per share data)	2023			2022			2023			2022
Selected Income Statement Data:
Interest and dividend income	$	394,663		$	279,588		$	758,615		$	503,374
Interest expense	166,057			79,678			318,854			122,989
Net interest income	228,606			199,910			439,761			380,385
Provision for credit losses	13,500			3,001			20,500			11,751
Net interest income, after provision for credit losses	215,106			196,909			419,261			368,634
Non-interest income	124,129			28,329			158,636			55,537
Non-interest expense	121,839			108,027			242,345			224,114
Income before income taxes	217,396			117,211			335,552			200,057
Income tax expense	65,625			35,659			101,136			60,098
Net income	$	151,771		$	81,552		$	234,416		$	139,959

Per Common Share Data:
Net income:
Basic	$	2.65		$	1.36		$	4.04		$	2.34
Diluted	$	2.62		$	1.35		$	3.98		$	2.31
Adjusted earnings per common share (Non-GAAP)1	$	1.60		$	1.38		$	3.00		$	2.56
Book value per common share	$	36.53		$	29.79		$	36.53		$	29.79
Tangible book value per common share (Non-GAAP)1	$	33.45		$	26.74		$	33.45		$	26.74

Weighted average number of common shares outstanding:
Basic	57,216,621			59,999,573			58,082,830			59,927,078
Diluted	57,932,834			60,514,635			58,930,427			60,540,353
Common shares outstanding at end of period	56,898,377			60,000,079			56,898,377			60,000,079
Common shares issued at end of period	69,828,709			69,153,591			69,828,709			69,153,591

Performance Ratios and Other Data:
Loan originations for investment	$	2,739,261		$	2,013,576		$	5,344,593		$	4,499,800
Loan originations for sale	44,325			43,227			96,910			113,300
Loan purchases	789,516			76			841,408			127
Return on average assets	2.90		%	1.77		%	2.29		%	1.55		%
Return on average common stockholders’ equity	30.39		%	18.71		%	23.72		%	16.35		%
Interest rate spread2	3.58		%	3.64		%	3.48		%	3.63		%
Net interest margin3	4.55		%	4.49		%	4.46		%	4.38		%
Net interest margin3 – Banking Business Segment	4.62		%	4.65		%	4.54		%	4.58		%
Efficiency ratio4	34.54		%	47.33		%	40.50		%	51.41		%
Efficiency ratio4 – Banking Business Segment	30.96		%	46.29		%	36.78		%	49.45		%

Asset Quality Ratios:
Net annualized charge-offs to average loans	0.02		%	0.05		%	0.04		%	0.05		%
Non-performing loans and leases to total loans	0.65		%	0.61		%	0.65		%	0.61		%
Non-performing assets to total assets	0.60		%	0.54		%	0.60		%	0.54		%
Allowance for credit losses - loans to total loans held for investment	1.33		%	1.00		%	1.33		%	1.00		%
Allowance for credit losses - loans to non-performing loans	205.50		%	165.51		%	205.50		%	165.51		%

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.

Axos Q2 Fiscal 2024 Earnings Supplement NYSE: AXJanuary 30, 2024

2 Loan Growth by Category for Second Quarter Ended December 31, 2023 $ Millions SF Warehouse Lending Multifamily Small Balance Commercial Jumbo Mortgage Asset-Based and Cash Flow Lending Lender Finance Non-RE Capital Call Facilities Auto Unsecured/OD Single Family Mortgage & Warehouse Multifamily & Commercial Mortgage* Commercial Real Estate Commercial & Industrial Non- RE** Auto & Consumer Other Loans Inc (Dec)Q1 FY24Q2 FY24 $ (26)$ 4,019$ 3,993 (196)29599 5782,1302,708 5258321,357 (88)5,4885,400 (38)681643 4021,8332,235 1919981,189 375378753 (22)441419 (6)6559 325 $ 1,698$ 17,162$ 18,860 Lender Finance RE CRE Specialty *Multifamily & Commercial Mortgage increased due to the $1.25 billion FDIC Loan Purchase completed on December 7, 2023 **Certain prior period Commercial & Industrial Non-RE loans were were reclassified between sub-categories to conform to the current period presentation

$300.8 million remaining discount to be recognized over the expected remaining term to maturity of the acquired loans Timing and amount of accretion will depend on:  Amount and pace of refinancing/pay-offs  Credit losses in excess of current ACL  Potential loan sales and sales price Estimate ~18% yield on acquired loan pool, including coupon rate and discount amortization FDIC Loan Purchase Summary Acquired $1.25 billion UPB of CRE/Multifamily Loans at 63% of Par Value 3*Excludes $4.6 million of gain on related derivatives acquired in the FDIC Loan Purchase

4 Acquired Loans as of December 7, 2023 acquisition date Remaining Term (Months) Weighted- Average LTV Weighted- Average Yield Before Accretion of Discount Unpaid Principal Balance (mm) Loan Type 5153.1 %7.5 %$ 250Office 2138.04.1121Data Center 2042.27.956Land 1852.56.852Other 9571.37.038Industrial 3958.47.434Mixed Use 3949.17.727Retail 4150.26.8578Total CRE 14260.16.7344Residential 9774.57.2332 Rent-controlled / Rent- stabilized Multifamily 12067.26.9676Total Multifamily 8459.3 %6.9 %$ 1,254Total

5 Commercial Real Estate Specialty* Detail as of December 31, 2023 Non-Performing Loans (mm)Weighted Avg. LTVBalance (mm)Loan Type $ 1138 %$ 1,829Multifamily —401,104Hotel 1541917SFR —38418Office —48513Industrial —40232Retail —39387Other $ 2640 %$ 5,400Total *Includes Commercial Real Estate Specialty loan portfolio only; see Form 10-Q for the quarterly period ended December 31, 2023 for additional details of other loan categories LTV Distribution

6 Fixed/Hybrid Years to Maturity / Repricing*Mix of Loan Repricing Types *Excludes SF Warehouse Lending and Equipment Leasing. The years to repricing assumes no loan prepayments and reflects only contractual terms. Of the fixed and hybrid rate loan balances in our portfolio at December 31, 2023, 53% will reprice within 3 years and 84% will reprice within 5 years Interest Rate Components of Loan & Lease Portfolio As of December 31, 2023 100%99%84%53%35%17%9% Years

7 Diversified Deposit Gathering Approximately 90% of deposits are FDIC-insured or collateralized *Deposit balances as of December 31, 2023 1Excludes approximately $550 million of off-balance sheet deposits 2Excludes approximately $750 million of client deposits held at other banks › Serves approximately 40% of U.S. Chapter 7 bankruptcy trustees in exclusive relationship › Software allows servicing of SEC receivers and non-chapter 7 cases › Full service digital banking, wealth management, and securities trading › White-label banking › Business banking with simple suite of cash management services › 1031 exchange firms › Title and escrow companies › HOA and property management › Business management and entertainment › Broker-dealer client cash › Broker-dealer reserve accounts › Full service treasury/cash management › Team enhancements and geographic expansion › Bank and securities cross-sell Fiduciary Services $1.2B Consumer Direct $9.9B Specialty Deposits $1.3B Distribution Partners $0.6B Axos Securities $0.8B Small Business Banking $0.3B Commercial & Treasury Management $4.1B Diversified Deposit Gathering Business Lines

8 Change in Allowance for Credit Losses (ACL) & Unfunded Loan Commitments Reserve (UCL) ($ in millions) ACL + UCL ACL + UCL 1.0 0.6 11.7 12.5 12.7 (2.4)

9 Allowance for Credit Losses (ACL) by Loan Category as of December 31, 2023 $ Millions ACL %ACL $Loan Balance 0.4 %15$ 4,092 1.9 %784,065 1.3 %786,043 1.7 %694,177 2.5 %12478 — %—5 1.3 %252$ 18,860 Single Family Mortgage & Warehouse Multifamily & Commercial Mortgage Commercial Real Estate Commercial & Industrial Non-RE Auto & Consumer Other Loans

10 Credit Quality ($ millions) %NPLsLoans O/SDecember 31, 2023 1.33%$54$4,092Single Family-Mortgage & Warehouse 0.92374,065Multifamily and Commercial Mortgage 0.43266,043Commercial Real Estate 0.0734,177Commercial & Industrial - Non-RE 0.312478Auto & Consumer —05Other 0.65%$122$18,860Total %NPLsLoans O/SDecember 31, 2022 0.98%$39$3,989Single Family-Mortgage & Warehouse 1.16353,050Multifamily and Commercial Mortgage 0.26155,762Commercial Real Estate 0.1432,209Commercial & Industrial - Non-RE 0.322632Auto & Consumer 12.5018Other 0.61%$95$15,650Total

11 December 31, 2022 March 31, 2023 June 30, 2023 September 30, 2023 December 31, 2023 Selected Balance Sheet Data: $ 18,741,035$ 19,782,481$ 20,348,469$ 20,825,206$ 21,623,764Total assets 15,473,21215,836,25516,456,72816,955,04118,264,354Loans—net of allowance for credit losses 4,2927,92023,2038,01413,468Loans held for sale, carried at fair value 455303776——Loans held for sale, lower of cost or fair value 157,218161,293166,680170,870251,749Allowance for credit losses 372400758640329Securities—trading 248,062279,612232,350236,726239,812Securities—available-for-sale 58,84687,293134,33996,424145,176Securities borrowed 272,579323,359374,074285,423265,857Customer, broker-dealer and clearing receivables 15,690,49416,738,86917,123,10817,565,74118,203,912Total deposits 100,00090,00090,00090,00090,000Advances from the FHLB 334,077334,330361,779447,733341,086Borrowings, subordinated notes and debentures 156,008114,613159,832116,446155,492Securities loaned 420,947406,092445,477341,915368,885Customer, broker-dealer and clearing payables 1,787,5591,844,1041,917,1591,976,2082,078,224Total stockholders’ equity Capital Ratios: 9.54 %9.32 %9.42 %9.49 %9.61 %Equity to assets at end of period Axos Financial, Inc.: 9.06 %9.29 %8.96 %9.27 %9.39 %Tier 1 leverage (to adjusted average assets) 10.55 %10.71 %10.94 %11.11 %10.97 %Common equity tier 1 capital (to risk-weighted assets) 10.55 %10.71 %10.94 %11.11 %10.97 %Tier 1 capital (to risk-weighted assets) 13.49 %13.63 %13.82 %14.06 %13.79 %Total capital (to risk-weighted assets) Axos Bank: 10.05 %10.17 %9.68 %9.99 %10.22 %Tier 1 leverage (to adjusted average assets) 11.28 %11.55 %11.63 %11.69 %12.26 %Common equity tier 1 capital (to risk-weighted assets) 11.28 %11.55 %11.63 %11.69 %12.26 %Tier 1 capital (to risk-weighted assets) 12.13 %12.40 %12.50 %12.65 %13.25 %Total capital (to risk-weighted assets) Axos Clearing LLC: $ 60,334$ 79,459$ 35,221$ 101,391$ 103,454Net capital $ 55,977$ 74,377$ 29,905$ 96,211$ 98,397Excess capital 27.69 %31.27 %13.25 %39.14 %40.92 %Net capital as a percentage of aggregate debit items $ 49,441$ 66,755$ 21,930$ 88,440$ 90,812Net capital in excess of 5% aggregate debit items AXOS FINANCIAL, INC. SELECTED CONSOLIDATED FINANCIAL INFORMATION (Unaudited – dollars in thousands)

12 At or for the Three Months Ended December 31, 2022 March 31, 2023 June 30, 2023 September 30, 2023 December 31, 2023 Selected Income Statement Data: $ 279,588$ 307,334$ 346,430$ 363,952$ 394,663Interest and dividend income 79,678108,352142,676152,797166,057Interest expense 199,910198,982203,754211,155228,606Net interest income 3,0015,5007,0007,00013,500Provision for credit losses 196,909193,482196,754204,155215,106Net interest income, after provision for credit losses 28,32932,24632,70534,507124,129Non-interest income 108,027111,044112,456120,506121,839Non-interest expense 117,211114,684117,003118,156217,396Income before income taxes 35,65934,83429,64735,51165,625Income taxes $ 81,552$ 79,850$ 87,356$ 82,645$ 151,771Net income Per Common Share Data: Net income: $ 1.36$ 1.33$ 1.48$ 1.40$ 2.65Basic $ 1.35$ 1.32$ 1.46$ 1.38$ 2.62Diluted $ 1.38$ 1.35$ 1.50$ 1.41$ 1.60Adjusted earnings per common share (Non-GAAP)1 $ 29.79$ 31.07$ 32.53$ 33.78$ 36.53Book value per common share $ 26.74$ 28.03$ 29.51$ 30.72$ 33.45Tangible book value per common share (Non-GAAP)1 Weighted average number of common shares outstanding: 59,999,57359,930,63458,981,37258,949,03857,216,621Basic 60,514,63560,627,40059,707,87159,808,32257,932,834Diluted 60,000,07959,355,12458,943,03558,503,97656,898,377Common shares outstanding at end of period 69,153,59169,340,53369,465,44669,826,26369,828,709Common shares issued at end of period Performance Ratios and Other Data: $ 2,013,576$ 1,735,651$ 2,216,764$ 2,605,332$ 2,739,261Loan originations for investment 43,22745,20095,78852,85844,325Loan originations for sale 7678765051,892789,516Loan purchases 1.77 %1.71 %1.73 %1.64 %2.90 %Return on average assets 18.71 %17.42 %18.60 %16.91 %30.39 %Return on average common stockholders’ equity 3.64 %3.46 %3.20 %3.37 %3.58 %Interest rate spread2 4.49 %4.42 %4.19 %4.36 %4.55 %Net interest margin3 4.65 %4.50 %4.26 %4.46 %4.62 %Net interest margin3 – Banking Business Segment 47.33 %48.02 %47.56 %49.05 %34.54 %Efficiency ratio4 46.29 %47.48 %45.07 %45.44 %30.96 %Efficiency ratio4 – Banking Business Segment Asset Quality Ratios: 0.05 %0.04 %0.04 %0.04 %0.02 %Net annualized charge-offs to average loans 0.61 %0.60 %0.52 %0.62 %0.65 %Non-performing loans and leases to total loans 0.54 %0.51 %0.47 %0.56 %0.60 %Non-performing assets to total assets 1.00 %1.01 %1.00 %1.00 %1.33 %Allowance for credit losses - loans to total loans held for investment5 165.51 %168.12 %191.23 %159.80 %205.50 %Allowance for credit losses - loans to non-performing loans5 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. AXOS FINANCIAL, INC. SELECTED CONSOLIDATED FINANCIAL INFORMATION (Unaudited – dollars in thousands)

13 December 31, 2022 March 31, 2023 June 30, 2023 September 30, 2023 December 31, 2023(Dollars in thousands, except per share amounts) $ 81,552$ 79,850$ 87,356$ 82,645$ 151,771Net income ————(92,397)FDIC Loan Purchase - Gain on purchase ————4,648FDIC Loan Purchase - Provision for credit losses 2,5902,8462,7792,7902,780Acquisition-related costs —————Other costs (788)(864)(704)(839)25,650Income taxes $ 83,354$ 81,832$ 89,431$ 84,596$ 92,452Adjusted earnings (non-GAAP) 60,514,63560,627,40059,707,87159,808,32257,932,834Average dilutive common shares outstanding $ 1.35$ 1.32$ 1.46$ 1.38$ 2.62Diluted EPS ————(1.59)FDIC Loan Purchase - Gain on Purchase ————0.08FDIC Loan Purchase - Provision for credit losses 0.040.040.050.050.05Acquisition-related costs —————Other costs (0.01)(0.01)(0.01)(0.02)0.44Income taxes $ 1.38$ 1.35$ 1.50$ 1.41$ 1.60Adjusted EPS (Non-GAAP) 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: December 31, 2022 March 31, 2023 June 30, 2023 September 30, 2023 December 31, 2023(Dollars in thousands, except per share amounts) $ 1,787,559$ 1,844,104$ 1,917,159$ 1,976,208$ 2,078,224Common stockholders’ equity 25,52625,39625,44329,33828,043Less: servicing rights, carried at fair value 157,585154,928152,149149,572146,793Less: goodwill and intangible assets $ 1,604,448$ 1,663,780$ 1,739,567$ 1,797,298$ 1,903,388Tangible common stockholders’ equity (Non-GAAP) 60,000,07959,355,12458,943,03558,503,97656,898,377Common shares outstanding at end of period $ 29.79$ 31.07$ 32.53$ 33.78$ 36.53Book value per common share $ 0.43$ 0.43$ 0.44$ 0.50$ 0.49Less: servicing rights, carried at fair value per common share $ 2.62$ 2.61$ 2.58$ 2.56$ 2.59Less: goodwill and other intangible assets per common share $ 26.74$ 28.03$ 29.51$ 30.72$ 33.45Tangible book value per common share (Non-GAAP) Use of Non-GAAP Financial Measures In addition to the results presented in accordance with GAAP, this earnings supplement 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 report 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 and other costs (unusual or non-recurring charges). Adjusted earnings per diluted common share (“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 the Company’s operating performance. We believe excluding the non-recurring acquisition related costs and other costs (unusual or non-recurring) 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:

14 Greg Garrabrants, President and CEO Derrick Walsh, EVP and CFO investors@axosfinancial.com www.axosfinancial.com Johnny Lai, SVP Corporate Development and Investor Relations Phone: 858.649.2218 Mobile: 858.245.1442 jlai@axosfinancial.com Contact Information

Cover Page	Jan. 30, 2024
Cover [Abstract]
Document Type	8-K
Document Period End Date	Jan. 30, 2024
Entity Registrant Name	Axos Financial, Inc.
Entity Incorporation, State or Country Code	DE
Entity File Number	001-37709
Entity Tax Identification Number	33-0867444
Entity Address, Address Line One	9205 West Russell Road, Ste 400
Entity Address, City or Town	Las Vegas
Entity Address, State or Province	NV
Entity Address, Postal Zip Code	89148
City Area Code	858
Local Phone Number	649-2218
Title of 12(b) Security	Common stock, $0.01 par value
Trading Symbol	AX
Security Exchange Name	NYSE
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Entity Emerging Growth Company	false
Entity Central Index Key	0001299709
Amendment Flag	false