AX Axos Financial Inc

Axos Financial, Inc. (NYSE: AX) (“Axos” or the “Company”) today announced unaudited financial results for the second fiscal quarter ended December 31, 2024. Net income was $104.7 million and diluted earnings per share (“EPS”) was $1.80 for the quarter ended December 31, 2024. Net income for the quarter ended December 31, 2023 was $151.8 million and diluted EPS was $2.62, which included a $92.4 million one-time gain associated with the FDIC Loan Purchase during that quarter. Adjusted earnings and adjusted earnings per diluted common share (“Adjusted EPS”), non-GAAP measures described further below, increased $13.4 million to $105.8 million and increased $0.22 to $1.82, respectively, for the quarter ended December 31, 2024, compared to $92.5 million and $1.60, respectively, for the quarter ended December 31, 2023.

Second Quarter Fiscal 2025 Financial Summary

 

Three Months Ended

December 31,

 

 

(Dollars in thousands, except per share data)

 

2024

 

 

2023

 

% Change

Net interest income

$

280,099

 

$

228,606

 

22.5

%

Non-interest income

$

27,799

 

$

124,129

 

(77.6

)%

Net income

$

104,687

 

$

151,771

 

(31.0

)%

Adjusted earnings (Non-GAAP)1

$

105,829

 

$

92,452

 

14.5

%

Diluted EPS

$

1.80

 

$

2.62

 

(31.3

)%

Adjusted EPS (Non-GAAP)1

$

1.82

 

$

1.60

 

13.8

%

1 See “Use of Non-GAAP Financial Measures”

“Excluding the one-time gain and the provision for credit losses associated with the FDIC Loan Purchase in the prior year quarter, net income and diluted EPS increased by 15.7% and 15.1%, respectively. We generated loan growth across certain commercial and industrial lending categories, single family warehouse and auto,” stated Greg Garrabrants, President and Chief Executive Officer of Axos. “Net interest margin of 4.83% in the quarter ended December 31, 2024 was well above our target. We reduced our interest-bearing deposit costs by 51 basis points from the linked quarter while maintaining our ending deposit balances flat. Strong expense management contributed to diluted EPS of $1.80.”

Other Highlights

• Net interest margin was 4.83% for the quarter ended December 31, 2024, compared to 4.55% for the quarter ended December 31, 2023

• Net interest income was $280.1 million for the three months ended December 31, 2024, compared to $292.0 million for the three months ended September 30, 2024. Excluding the prepayment of three loans purchased from the Federal Deposit Insurance Corporation (“FDIC”), net interest income in the three months ended September 30, 2024 was approximately $275.0 million

• Non-interest expense was $145.3 million in the three months ended December 31, 2024, down 1.5% from $147.5 million in the three months ended September 30, 2024

• Total assets were $23.7 billion at December 31, 2024, up $854.1 million, or 7.5% annualized, from $22.9 billion at June 30, 2024

• Total deposits were $19.9 billion at December 31, 2024, an increase of $575.7 million, or 5.9% annualized, from $19.4 billion at June 30, 2024

• Axos Advisory Services added $822 million of net new assets under custody during the three months ended December 31, 2024, up from $559 million of net new assets in the three months ended September 30, 2024

• Total capital to risk-weighted assets was 15.23% for Axos Financial, Inc. at December 31, 2024, up from 14.84% at June 30, 2024

• Book value per share increased to $44.17 at December 31, 2024 , up 20.9% from $36.53 at December 31, 2023

Second Quarter Fiscal 2025 Income Statement Summary

Net income was $104.7 million and diluted EPS was $1.80 for the three months ended December 31, 2024, compared to net income of $151.8 million and diluted EPS of $2.62 for the three months ended December 31, 2023. Net interest income increased $51.5 million or 22.5% for the three months ended December 31, 2024, compared to the three months ended December 31, 2023, primarily due to higher interest income on loans and interest-earnings deposits at other financial institutions, partially offset by higher interest expense on demand and savings deposits, reflecting higher deposit balances, partially offset by lower rates paid.

The provision for credit losses was $12.2 million for the three months ended December 31, 2024, compared to $13.5 million for the three months ended December 31, 2023. The provision for credit losses for the three months ended December 31, 2024, was primarily due to the quantitative impact of macroeconomic variables in the allowance for credit losses model, primarily the U.S. unemployment rate and commercial real estate mortgage rates.

Non-interest income decreased to $27.8 million for the three months ended December 31, 2024, compared to $124.1 million for the three months ended December 31, 2023. The decrease was primarily due to the absence of the gain on the FDIC Loan Purchase in the prior year period, as well as decreases in mortgage banking and servicing rights income and lower broker-dealer fee income.

Non-interest expense, comprised of various operating expenses, increased $23.5 million to $145.3 million for the three months ended December 31, 2024 from $121.8 million for the three months ended December 31, 2023. The increase was primarily due to higher salaries and related costs, higher professional services expenses and an increase in FDIC and regulatory fees.

Balance Sheet Summary

Axos’ total assets increased by $0.9 billion, or 3.7%, to $23.7 billion, at December 31, 2024, from $22.9 billion at June 30, 2024, primarily due to an increase in cash and cash equivalents and loans. Total liabilities increased by $0.6 billion, or 3.0%, to $21.2 billion at December 31, 2024, from $20.6 billion at June 30, 2024, primarily due to higher deposit balances. Stockholders’ equity increased by $231.4 million, or 10.1%, to $2.5 billion at December 31, 2024 from $2.3 billion at June 30, 2024, primarily due to net income of $217.0 million.

Conference Call

A conference call and webcast will be held on Tuesday, January 28, 2025, 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 28, 2025, at Axos’ website and telephonically by dialing toll-free number 877-660-6853, passcode 13750720.

About Axos Financial, Inc. and Subsidiaries

Axos Financial, Inc., with approximately $23.7 billion in consolidated assets as of December 31, 2024, 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 $37.7 billion of assets under custody and/or administration as of December 31, 2024, 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: the Banking Business Segment and the Securities Business Segment. In order to reconcile the two segments to the consolidated totals, the Company includes corporate 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.

The following tables present the operating results of the segments:

 

For the Three Months Ended December 31, 2024

(Dollars in thousands)

Banking Business Segment

 

Securities Business Segment

 

Corporate/ Eliminations

 

Axos Consolidated

Net interest income

$

276,720

 

$

7,007

 

$

(3,628

)

 

$

280,099

Provision for credit losses

 

12,248

 

 

—

 

 

—

 

 

 

12,248

Non-interest income

 

2,948

 

 

29,004

 

 

(4,153

)

 

 

27,799

Non-interest expense

 

114,536

 

 

28,178

 

 

2,606

 

 

 

145,320

Income before income taxes

$

152,884

 

$

7,833

 

$

(10,387

)

 

$

150,330

 

 

 

 

 

 

 

 

 

For the Three Months Ended December 31, 2023

(Dollars in thousands)

Banking Business Segment

 

Securities Business Segment

 

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 Six Months Ended December 31, 2024

(Dollars in thousands)

Banking Business

 

Securities Business

 

Corporate/ Eliminations

 

Axos Consolidated

Net interest income

$

565,212

 

$

14,274

 

$

(7,339

)

 

$

572,147

Provision for credit losses

 

26,248

 

 

—

 

 

—

 

 

 

26,248

Non-interest income

 

11,538

 

 

58,906

 

 

(14,036

)

 

 

56,408

Non-interest expense

 

232,851

 

 

56,269

 

 

3,665

 

 

 

292,785

Income before income taxes

$

317,651

 

$

16,911

 

$

(25,040

)

 

$

309,522

 

 

 

 

 

 

 

 

 

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

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 comparable GAAP measure, to adjusted earnings and adjusted EPS (Non-GAAP) for the periods shown:

 

For the Three Months Ended December 31,

 

For the Six Months Ended December 31,

(Dollars in thousands, except per share data)

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

Net income

$

104,687

 

 

$

151,771

 

 

$

217,027

 

 

$

234,416

 

FDIC Loan Purchase - Gain on purchase

 

—

 

 

 

(92,397

)

 

 

—

 

 

 

(92,397

)

FDIC Loan Purchase - Provision for credit losses

 

—

 

 

 

4,648

 

 

 

—

 

 

 

4,648

 

Acquisition-related costs

 

1,645

 

 

 

2,780

 

 

 

4,199

 

 

 

5,570

 

Income tax effect

 

(503

)

 

 

25,650

 

 

 

(1,255

)

 

 

24,811

 

Adjusted earnings (Non-GAAP)

$

105,829

 

 

$

92,452

 

 

$

219,971

 

 

$

177,048

 

 

 

 

 

 

 

 

 

Average dilutive common shares outstanding

 

58,226,006

 

 

 

57,932,834

 

 

 

58,262,923

 

 

 

58,930,427

 

 

 

 

 

 

 

 

 

Diluted EPS

$

1.80

 

 

$

2.62

 

 

$

3.72

 

 

$

3.98

 

FDIC Loan Purchase - Gain on purchase

 

—

 

 

 

(1.59

)

 

 

—

 

 

 

(1.57

)

FDIC Loan Purchase - Provision for credit losses

 

—

 

 

 

0.08

 

 

 

—

 

 

 

0.08

 

Acquisition-related costs

 

0.03

 

 

 

0.05

 

 

 

0.07

 

 

 

0.09

 

Income tax effect

 

(0.01

)

 

 

0.44

 

 

 

(0.02

)

 

 

0.42

 

Adjusted EPS (Non-GAAP)

$

1.82

 

 

$

1.60

 

 

$

3.77

 

 

$

3.00

 

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 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 comparable GAAP measure, to tangible book value per common share (non-GAAP) as of the dates indicated:

(Dollars in thousands, except per share amounts)

December 31, 2024

 

June 30, 2024

 

December 31, 2023

Common stockholders’ equity

$

2,521,962

 

$

2,290,596

 

$

2,078,224

Less: servicing rights, carried at fair value

 

28,045

 

 

28,924

 

 

28,043

Less: goodwill and other intangible assets—net

 

137,570

 

 

141,769

 

 

146,793

Tangible common stockholders’ equity (Non-GAAP)

$

2,356,347

 

$

2,119,903

 

$

1,903,388

 

 

 

 

 

 

Common shares outstanding at end of period

 

57,097,632

 

 

56,894,565

 

 

56,898,377

 

 

 

 

 

 

Book value per common share

$

44.17

 

 

40.26

 

$

36.53

Less: servicing rights, carried at fair value per common share

 

0.49

 

 

0.51

 

 

0.49

Less: goodwill and other intangible assets—net per common share

 

2.41

 

 

2.49

 

 

2.59

Tangible book value per common share (Non-GAAP)

$

41.27

 

$

37.26

 

$

33.45

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, 2024, 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.

 

AXOS FINANCIAL, INC.

SELECTED CONSOLIDATED FINANCIAL INFORMATION

(Unaudited – dollars in thousands)

 

 

December 31, 2024

 

June 30, 2024

 

December 31, 2023

Selected Balance Sheet Data:

 

 

 

 

 

Total assets

$

23,709,422

 

 

$

22,855,334

 

 

$

21,623,764

 

Loans—net of allowance for credit losses

 

19,486,727

 

 

 

19,231,385

 

 

 

18,264,354

 

Loans held for sale, carried at fair value

 

25,436

 

 

 

16,482

 

 

 

13,468

 

Allowance for credit losses

 

270,605

 

 

 

260,542

 

 

 

251,749

 

Trading securities

 

241

 

 

 

353

 

 

 

329

 

Available-for-sale securities

 

97,848

 

 

 

141,611

 

 

 

239,812

 

Securities borrowed

 

114,672

 

 

 

67,212

 

 

 

145,176

 

Customer, broker-dealer and clearing receivables

 

298,887

 

 

 

240,028

 

 

 

265,857

 

Total deposits

 

19,934,904

 

 

 

19,359,217

 

 

 

18,203,912

 

Advances from the Federal Home Loan Bank

 

60,000

 

 

 

90,000

 

 

 

90,000

 

Borrowings, subordinated notes and debentures

 

358,692

 

 

 

325,679

 

 

 

341,086

 

Securities loaned

 

135,258

 

 

 

74,177

 

 

 

155,492

 

Customer, broker-dealer and clearing payables

 

309,593

 

 

 

301,127

 

 

 

368,885

 

Total stockholders’ equity

$

2,521,962

 

 

$

2,290,596

 

 

$

2,078,224

 

 

 

 

 

 

 

Common shares outstanding at end of period

 

57,097,632

 

 

 

56,894,565

 

 

 

56,898,377

 

Common shares issued at end of period

 

70,571,332

 

 

 

70,221,632

 

 

 

69,828,709

 

 

 

 

 

 

 

Per Common Share Data:

 

 

 

 

 

Book value per common share

$

44.17

 

 

$

40.26

 

 

$

36.53

 

Tangible book value per common share (Non-GAAP)1

$

41.27

 

 

$

37.26

 

 

$

33.45

 

 

 

 

 

 

 

Capital Ratios:

 

 

 

 

 

Equity to assets at end of period

 

10.64

%

 

 

10.02

%

 

 

9.61

%

Axos Financial, Inc.:

 

 

 

 

 

Tier 1 leverage (to adjusted average assets)

 

10.02

%

 

 

9.43

%

 

 

9.39

%

Common equity tier 1 capital (to risk-weighted assets)

 

12.42

%

 

 

12.01

%

 

 

10.97

%

Tier 1 capital (to risk-weighted assets)

 

12.42

%

 

 

12.01

%

 

 

10.97

%

Total capital (to risk-weighted assets)

 

15.23

%

 

 

14.84

%

 

 

13.79

%

Axos Bank:

 

 

 

 

 

Tier 1 leverage (to adjusted average assets)

 

9.85

%

 

 

9.74

%

 

 

10.22

%

Common equity tier 1 capital (to risk-weighted assets)

 

12.67

%

 

 

12.74

%

 

 

12.26

%

Tier 1 capital (to risk-weighted assets)

 

12.67

%

 

 

12.74

%

 

 

12.26

%

Total capital (to risk-weighted assets)

 

13.86

%

 

 

13.81

%

 

 

13.25

%

Axos Clearing LLC:

 

 

 

 

 

Net capital

$

83,932

 

 

$

101,462

 

 

$

103,454

 

Excess capital

$

78,282

 

 

$

96,654

 

 

$

98,397

 

Net capital as a percentage of aggregate debit items

 

29.71

%

 

 

42.21

%

 

 

40.92

%

Net capital in excess of 5% aggregate debit items

$

69,805

 

 

$

89,442

 

 

$

90,812

 

 

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)

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

Selected Income Statement Data:

 

 

 

 

 

 

 

Interest and dividend income

$

456,068

 

 

$

394,663

 

 

$

940,330

 

 

$

758,615

 

Interest expense

 

175,969

 

 

 

166,057

 

 

 

368,183

 

 

 

318,854

 

Net interest income

 

280,099

 

 

 

228,606

 

 

 

572,147

 

 

 

439,761

 

Provision for credit losses

 

12,248

 

 

 

13,500

 

 

 

26,248

 

 

 

20,500

 

Net interest income, after provision for credit losses

 

267,851

 

 

 

215,106

 

 

 

545,899

 

 

 

419,261

 

Non-interest income

 

27,799

 

 

 

124,129

 

 

 

56,408

 

 

 

158,636

 

Non-interest expense

 

145,320

 

 

 

121,839

 

 

 

292,785

 

 

 

242,345

 

Income before income taxes

 

150,330

 

 

 

217,396

 

 

 

309,522

 

 

 

335,552

 

Income tax expense

 

45,643

 

 

 

65,625

 

 

 

92,495

 

 

 

101,136

 

Net income

$

104,687

 

 

$

151,771

 

 

$

217,027

 

 

$

234,416

 

 

 

 

 

 

 

 

 

Weighted average number of common shares outstanding:

 

 

 

 

 

 

 

Basic

 

57,094,153

 

 

 

57,216,621

 

 

 

57,014,412

 

 

 

58,082,830

 

Diluted

 

58,226,006

 

 

 

57,932,834

 

 

 

58,262,923

 

 

 

58,930,427

 

 

 

 

 

 

 

 

 

Per Common Share Data:

 

 

 

 

 

 

 

Net income:

 

 

 

 

 

 

 

Basic

$

1.83

 

 

$

2.65

 

 

$

3.81

 

 

$

4.04

 

Diluted

$

1.80

 

 

$

2.62

 

 

$

3.72

 

 

$

3.98

 

Adjusted earnings per common share (Non-GAAP)1

$

1.82

 

 

$

1.60

 

 

$

3.77

 

 

$

3.00

 

 

 

 

 

 

 

 

 

Performance Ratios and Other Data:

 

 

 

 

 

 

 

Growth in loans held for investment, net

$

206,118

 

 

$

1,309,313

 

 

$

255,342

 

 

$

1,807,626

 

Loan originations for sale

 

66,826

 

 

 

44,325

 

 

 

136,396

 

 

 

96,910

 

Return on average assets

 

1.74

%

 

 

2.90

%

 

 

1.83

%

 

 

2.29

%

Return on average common stockholders’ equity

 

16.97

%

 

 

30.39

%

 

 

18.02

%

 

 

23.72

%

Interest rate spread2

 

3.91

%

 

 

3.58

%

 

 

4.01

%

 

 

3.48

%

Net interest margin3

 

4.83

%

 

 

4.55

%

 

 

5.00

%

 

 

4.46

%

Net interest margin3 – Banking Business Segment

 

4.87

%

 

 

4.62

%

 

 

5.04

%

 

 

4.54

%

Efficiency ratio4

 

47.20

%

 

 

34.54

%

 

 

46.58

%

 

 

40.50

%

Efficiency ratio4 – Banking Business Segment

 

40.95

%

 

 

30.96

%

 

 

40.37

%

 

 

36.78

%

 

 

 

 

 

 

 

 

Asset Quality Ratios:

 

 

 

 

 

 

 

Net annualized charge-offs to average loans

 

0.10

%

 

 

0.04

%

 

 

0.13

%

 

 

0.04

%

Non-accrual loans to total loans

 

1.26

%

 

 

0.65

%

 

 

1.26

%

 

 

0.65

%

Non-performing assets to total assets

 

1.06

%

 

 

0.60

%

 

 

1.06

%

 

 

0.60

%

Allowance for credit losses - loans to total loans held for investment

 

1.37

%

 

 

1.33

%

 

 

1.37

%

 

 

1.33

%

Allowance for credit losses - loans to non-accrual loans5

 

107.58

%

 

 

205.50

%

 

 

107.58

%

 

 

205.50

%

1 See “Use of Non-GAAP Financial Measures.”

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.

5 The decrease in the Allowance for credit losses - loans to nonaccrual loans is primarily attributable to the change in nonaccrual loans.

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20250128435491/en/

Investor Relations Contact: Johnny Lai, CFA SVP, Corporate Development & Investor Relations 858-649-2218 jlai@axosfinancial.com