Axos Financial Reports $104.7 Million Net Income for December 2024 Quarter

Axos Financial, Inc. reported a net income of $104.7 million for the three months ended December 31, 2024, translating to earnings of $1.80 per diluted share. This represents a decline from the $151.8 million, or $2.62 per diluted share, recorded in the same period last year. For the six months ended December 31, 2024, net income was $217.0 million, down from $234.4 million in the prior year. The company's total interest and dividend income increased by 15.6% year-over-year to $456.1 million, primarily driven by higher loan balances, while interest expense rose by 6.0% to $176.0 million.

The company experienced significant changes in its financial performance compared to the previous fiscal period. Total assets increased by 3.7% to $23.7 billion, with total liabilities rising by 3.0% to $21.2 billion. Notably, the provision for credit losses decreased slightly to $12.2 million for the quarter, down from $13.5 million a year earlier, reflecting improved asset quality. However, non-interest income saw a substantial decline of 77.6% to $27.8 million, largely due to the absence of a prior year gain from the FDIC Loan Purchase.

Strategically, Axos Financial completed the acquisition of two loan portfolios from the FDIC in December 2023, which had an aggregate unpaid principal balance of $1.3 billion purchased at a 37% discount to par. This acquisition is expected to enhance the yield on the company's loan portfolio. The company also reported an increase in its employee headcount, contributing to a rise in salaries and related costs, which increased by 25.8% year-over-year.

Operationally, Axos Financial's total deposits increased by 3.0% to $19.9 billion, with non-interest-bearing deposits rising to $2.99 billion. The number of deposit accounts grew to 580,151, reflecting a continued focus on customer acquisition. The company’s loan portfolio reached $20.0 billion, with a notable increase in commercial and industrial loans. The allowance for credit losses stood at $270.6 million, representing 1.37% of total loans held for investment.

Looking ahead, Axos Financial expressed optimism about its growth prospects, citing a strong capital position with a common equity tier 1 capital ratio of 12.42% as of December 31, 2024. The company plans to continue leveraging its technology-driven platforms to enhance customer service and expand its market presence. However, it remains cautious about potential risks, including changes in interest rates and economic conditions, which could impact future performance.