Axos Financial, Inc. reported significant financial performance for the second quarter of fiscal year 2026, with net income reaching $128.4 million, or $2.22 per diluted share, compared to $104.7 million, or $1.80 per diluted share, in the same period last year. For the six months ending December 31, 2025, net income totaled $240.7 million, up from $217.0 million in the prior year. The company’s total interest and dividend income increased to $513.8 million for the quarter, a 12.7% rise from $456.1 million in the previous year, primarily driven by higher interest earned on loans.
The company experienced notable changes in its balance sheet, with total assets increasing by $3.4 billion, or 13.8%, to $28.2 billion as of December 31, 2025. This growth was largely attributed to the acquisition of Verdant Commercial Capital, which added approximately $1.0 billion in loans and leases to Axos's portfolio. Total deposits also rose by $2.4 billion, or 11.5%, to $23.2 billion, reflecting a strong increase in both interest-bearing and non-interest-bearing accounts.
Operationally, Axos Financial saw an increase in its loan portfolio, which reached $24.8 billion, up from $21.6 billion at the end of June 2025. The allowance for credit losses also increased to $327.0 million, reflecting the company's proactive approach to managing credit risk amid loan growth. The company reported a net charge-off rate of 0.04% for the quarter, a decrease from 0.10% in the prior year, indicating improved asset quality.
In terms of strategic developments, Axos completed the acquisition of Verdant on September 30, 2025, enhancing its equipment leasing business and expanding its scale. The acquisition is expected to yield operational efficiencies and synergies, contributing positively to future earnings. Additionally, the company has maintained a strong capital position, with a common equity tier 1 capital ratio of 11.65% as of December 31, 2025, well above regulatory requirements.
Looking ahead, Axos Financial expressed optimism about its growth trajectory, supported by its diversified financial services and technology-driven platforms. The company anticipates continued expansion in its banking and securities segments, leveraging its recent acquisitions and strong deposit growth to enhance profitability and shareholder value.
About Axos Financial, Inc.
Axos Financial, Inc. is a technology-driven financial services company offering digital banking, lending, securities clearing, custody, and investment advisory services. Its banking segment provides consumer and commercial deposit and loan products nationwide, including residential and commercial mortgages, auto loans, and business loans. The securities segment serves independent advisors and broker-dealers with clearing, custody, and trading platforms. Axos leverages scalable technology and low-cost distribution to deliver secure, customer-focused financial solutions.
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