Axos Financial Reports Increased Net Income and Asset Growth for March 2026

Axos Financial, Inc. reported a significant increase in its financial performance for the three months ended March 31, 2026, with net income rising to $124.7 million, or $2.15 per diluted share, compared to $105.2 million, or $1.81 per diluted share, for the same period in 2025. For the nine months ended March 31, 2026, net income reached $365.4 million, or $6.33 per diluted share, up from $322.2 million, or $5.55 per diluted share, in the prior year. The company's total interest and dividend income increased by 10.5% to $478.2 million for the quarter, driven primarily by higher interest earned on loans, while total interest expense rose by 9.4% to $172.0 million.

The company experienced notable changes in its balance sheet, with total assets increasing by 18% to $29.2 billion as of March 31, 2026, compared to $24.8 billion at the end of June 2025. This growth was largely attributed to a rise in loans and available-for-sale securities, which reached $25.0 billion and $801.4 million, respectively. Total liabilities also increased by 18.5% to $26.2 billion, primarily due to higher advances from the Federal Home Loan Bank and increased deposit balances. The company’s total deposits rose by 7.5% to $22.4 billion, reflecting a strong demand for its banking products.

Strategically, Axos Financial completed the acquisition of Verdant Commercial Capital, LLC on September 30, 2025, enhancing its equipment leasing business and adding approximately $1.0 billion in loans and leases. Additionally, the company purchased a commercial office complex in San Diego for $125 million, which will serve as its future headquarters. In February 2026, Axos Bank entered into a purchase agreement to acquire approximately $2.3 billion in consumer deposits from Jenius Bank, with the transaction expected to close in the second quarter of 2026.

Operationally, Axos Financial reported a total of 633,355 deposit accounts as of March 31, 2026, an increase from 600,601 accounts at the end of June 2025. The company also noted a rise in its allowance for credit losses, which increased to $346.7 million from $290.0 million, reflecting growth in its loan portfolio and the impact of the Verdant acquisition. The net charge-off rate for the quarter was 0.31%, up from 0.09% in the prior year, primarily driven by higher charge-offs in the Commercial & Industrial - Non-RE portfolio.

Looking ahead, Axos Financial remains optimistic about its growth trajectory, supported by its strategic acquisitions and a strong capital position. The company’s capital ratios indicate it is well-capitalized, with a common equity tier 1 capital ratio of 11.65% as of March 31, 2026. Management anticipates continued growth in both its banking and securities segments, leveraging its technology-driven platforms to enhance customer engagement and operational efficiency.