Axos Financial Reports Q3 Fiscal 2025 Results with $105.2M Net Income

Axos Financial, Inc. reported its financial results for the third quarter of fiscal year 2025, revealing a net income of $105.2 million, or $1.81 per diluted share, compared to $110.7 million, or $1.91 per diluted share, in the same period last year. For the nine months ended March 31, 2025, net income totaled $322.2 million, or $5.55 per diluted share, down from $345.1 million, or $5.88 per diluted share, in the prior year. The decrease in profitability was attributed to a decline in non-interest income, particularly the absence of a significant gain from an FDIC loan purchase recorded in the previous year.

Total interest and dividend income for the quarter was $432.7 million, a decrease from $443.6 million in the prior year, primarily due to a reduction in interest income from loans. However, net interest income increased to $275.5 million, up 5.3% from $261.6 million a year earlier, driven by a decrease in interest expense on deposits. The provision for credit losses rose to $14.5 million from $6.0 million in the same quarter last year, reflecting growth in the commercial and industrial loan portfolio and macroeconomic factors impacting credit quality.

Operationally, Axos Financial saw an increase in total assets, which rose to $24.0 billion as of March 31, 2025, up from $22.9 billion at the end of June 2024. This growth was primarily driven by an increase in loans, which reached $20.7 billion, compared to $19.8 billion in the previous period. The company also reported a total deposit increase of 4.0%, amounting to $20.1 billion, with a notable rise in interest-bearing demand and savings accounts.

In terms of strategic developments, Axos Financial completed the acquisition of two loan portfolios from the FDIC in December 2023, valued at $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 continued its stock repurchase program, buying back 434,327 shares for approximately $27.9 million during the quarter, with $78.7 million remaining under its repurchase authorization.

Looking ahead, Axos Financial remains focused on leveraging its technology-driven platform to enhance customer engagement and expand its market presence. The company anticipates continued growth in its loan portfolio and expects to maintain its capital adequacy ratios, which are well above regulatory requirements. The management expressed confidence in navigating the current economic landscape while pursuing opportunities for further growth and profitability.