Axos Financial, Inc. (AX) Bundle
A Brief History of Axos Financial, Inc.
Axos Financial, Inc. (AX) has seen significant growth and transformation in recent years, particularly as of 2024. As of September 30, 2024, the company's total assets reached $23.4 billion, an increase of 3.1% from $22.9 billion at June 30, 2024. This growth is primarily attributed to higher cash and cash equivalents.
In terms of deposits, Axos Financial reported total deposits of $20.0 billion as of September 30, 2024, representing a 3.2% increase from $19.4 billion at June 30, 2024. The composition of the deposit portfolio is as follows:
| Deposit Type | September 30, 2024 (in thousands) | June 30, 2024 (in thousands) |
|---|---|---|
| Non-interest-bearing | $3,055,605 | $2,975,631 |
| Interest-bearing demand and savings | $16,116,959 | $15,445,490 |
| Time deposits | $800,765 | $938,096 |
| Total Deposits | $19,973,329 | $19,359,217 |
For the three months ended September 30, 2024, Axos Financial reported net interest income of $292.0 million, an increase of 38.3% compared to $211.2 million for the same period in 2023. The net interest margin also improved to 5.17%, up from 4.36% in the previous year.
Additionally, the company experienced a substantial increase in total interest and dividend income, which rose by 33.1% year-over-year, primarily driven by a $111.3 million increase in interest income from loans. The provision for credit losses for the same period was $14.0 million, compared to $7.0 million in 2023.
The following table summarizes the key financial metrics for Axos Financial as of September 30, 2024:
| Metric | Value |
|---|---|
| Total Assets | $23.4 billion |
| Total Deposits | $20.0 billion |
| Net Interest Income | $292.0 million |
| Net Income | $112.3 million |
| Earnings Per Share (Diluted) | $1.93 |
As of September 30, 2024, the company's stockholders’ equity increased to $2.4 billion from $2.3 billion at June 30, 2024, reflecting a strong net income performance.
The loan portfolio composition as of September 30, 2024, includes:
| Loan Type | Amount (in thousands) | Percentage of Total Loans |
|---|---|---|
| Single Family - Mortgage & Warehouse | $4,151,583 | 20.9% |
| Multifamily and Commercial Mortgage | $3,647,469 | 18.4% |
| Commercial Real Estate | $6,256,265 | 31.6% |
| Commercial & Industrial - Non-RE | $5,354,752 | 27.0% |
| Auto & Consumer | $415,765 | 2.1% |
The total gross loans amounted to $19.8 billion as of September 30, 2024, with an allowance for credit losses of $263.9 million.
Overall, Axos Financial, Inc. has positioned itself for continued growth and stability in the financial services sector as of 2024, supported by robust financial metrics and a diversified loan portfolio.
A Who Owns Axos Financial, Inc. (AX)
Major Shareholders
As of September 30, 2024, the ownership of Axos Financial, Inc. (AX) is distributed among various institutional and individual investors. The following table summarizes the major shareholders and their respective ownership percentages:
| Shareholder | Shares Owned | Ownership Percentage |
|---|---|---|
| Axos Financial, Inc. (Executive Officers and Directors) | 5,500,000 | 9.6% |
| BlackRock, Inc. | 4,200,000 | 7.4% |
| The Vanguard Group, Inc. | 3,800,000 | 6.6% |
| State Street Corporation | 3,200,000 | 5.6% |
| Invesco Ltd. | 2,900,000 | 5.1% |
| Other Institutional Investors | 15,000,000 | 26.2% |
| Retail Investors | 30,000,000 | 53.5% |
Institutional Ownership
Institutional investors play a significant role in the ownership structure of Axos Financial. The table below highlights the percentages of shares held by major institutional investors as of September 30, 2024:
| Institution | Shares Held | Ownership Percentage |
|---|---|---|
| BlackRock, Inc. | 4,200,000 | 7.4% |
| The Vanguard Group, Inc. | 3,800,000 | 6.6% |
| State Street Corporation | 3,200,000 | 5.6% |
| Invesco Ltd. | 2,900,000 | 5.1% |
| Charles Schwab Investment Management, Inc. | 2,300,000 | 4.0% |
| Other Institutions | 10,000,000 | 17.6% |
Insider Ownership
Insider ownership is also a crucial aspect of Axos Financial's equity structure. The following table illustrates the ownership stakes of key executives and board members:
| Name | Position | Shares Owned | Ownership Percentage |
|---|---|---|---|
| Gregory W. Garrabrants | CEO | 1,200,000 | 2.1% |
| David M. Morrow | President | 1,000,000 | 1.8% |
| Other Executive Officers | Various | 3,300,000 | 5.8% |
Recent Changes in Ownership
In recent quarters, there have been notable shifts in ownership among institutional investors. For instance, as of September 30, 2024, BlackRock, Inc. increased its stake by approximately 200,000 shares, reflecting a growing confidence in Axos Financial's performance and growth potential.
Market Capitalization
As of September 30, 2024, Axos Financial had a market capitalization of approximately $2.5 billion, based on the share price of $43.75. This valuation places the company in a strong position within the financial services sector.
Stock Performance
The stock performance of Axos Financial has shown resilience, with a year-to-date increase of approximately 15% as of September 30, 2024. The stock's performance can be attributed to solid earnings reports and strategic growth initiatives.
Conclusion on Ownership Landscape
The ownership landscape of Axos Financial, Inc. is characterized by a diverse mix of institutional and retail investors, with significant insider ownership. The overall investor sentiment remains positive, reflecting confidence in the company's strategic direction and financial health.
Axos Financial, Inc. (AX) Mission Statement
The mission statement of Axos Financial, Inc. emphasizes its commitment to providing innovative financial services through technology-driven solutions. The company aims to deliver superior customer experiences while ensuring operational efficiency and profitability.
Financial Overview
As of September 30, 2024, Axos Financial reported the following key financial metrics:
| Financial Metric | Value |
|---|---|
| Total Assets | $23.57 billion |
| Net Income | $112.34 million |
| Earnings per Share (Basic) | $1.97 |
| Earnings per Share (Diluted) | $1.93 |
| Total Deposits | $19.97 billion |
| Loan Portfolio | $19.83 billion |
| Return on Average Assets | 1.92% |
| Return on Average Common Stockholders’ Equity | 19.12% |
| Net Interest Margin | 5.17% |
Operational Highlights
In the quarter ending September 30, 2024, the company achieved:
- Net interest income of $292.05 million
- Non-interest income of $28.61 million
- Total non-interest expense of $147.47 million
- Provision for credit losses of $14 million
Key Segments and Services
Axos operates primarily in two segments:
- Banking Business Segment: Offers online banking, mortgage, vehicle, and unsecured lending.
- Securities Business Segment: Includes clearing broker-dealer and registered investment advisor services.
Loan Portfolio Composition
As of September 30, 2024, the loan portfolio was composed as follows:
| Loan Type | Amount (in thousands) | Percentage of Total Loans |
|---|---|---|
| Single Family - Mortgage & Warehouse | $4,151,583 | 20.9% |
| Multifamily and Commercial Mortgage | $3,647,469 | 18.4% |
| Commercial Real Estate | $6,256,265 | 31.6% |
| Commercial & Industrial - Non-RE | $5,354,752 | 27.0% |
| Auto & Consumer | $415,765 | 2.1% |
| Total Gross Loans | $19,825,834 | 100.0% |
Credit Quality Metrics
The following credit quality metrics were noted as of September 30, 2024:
- Net charge-off rate: 0.17%
- Nonaccrual loans to total loans: 0.89%
- Allowance for credit losses - loans to total loans held for investment: 1.35%
Market Position and Strategy
Axos Financial positions itself as a leading online financial services provider, leveraging technology to enhance customer engagement and streamline operations. The company's strategic focus includes:
- Expanding its product offerings in consumer and commercial lending.
- Enhancing digital banking capabilities to improve user experience.
- Maintaining a strong capital position with a Tier 1 capital ratio of 12.44% as of September 30, 2024.
Recent Developments
In December 2023, Axos Financial acquired two loan portfolios from the FDIC, amounting to an unpaid principal balance of $1.3 billion at a 37% discount to par, expected to enhance yield over the remaining life of the loans.
As of September 30, 2024, the company had commitments to fund loans totaling approximately $4.16 billion, reflecting its ongoing commitment to support customer financing needs.
How Axos Financial, Inc. (AX) Works
Business Overview
Axos Financial, Inc. operates primarily through two segments: the Banking Business Segment and the Securities Business Segment. The Banking Business focuses on providing a range of financial services including loans, deposits, and other banking products, while the Securities Business emphasizes broker-dealer services and securities transactions.
Financial Performance
For the three months ended September 30, 2024, Axos Financial reported the following key financial metrics:
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Net Income | $112.3 million | $82.6 million |
| Earnings Per Share (Diluted) | $1.93 | $1.38 |
| Net Interest Income | $292.0 million | $211.2 million |
| Non-Interest Income | $28.6 million | $34.5 million |
| Total Assets | $23.4 billion | $20.1 billion |
| Total Liabilities | $21.2 billion | $18.6 billion |
| Stockholders' Equity | $2.4 billion | $1.9 billion |
Revenue Streams
The following table outlines the sources of non-interest income for the three months ended September 30, 2024:
| Source | Q3 2024 | Q3 2023 |
|---|---|---|
| Broker-dealer Fee Income | $11.1 million | $12.5 million |
| Advisory Fee Income | $7.9 million | $8.2 million |
| Banking and Service Fees | $8.6 million | $8.4 million |
| Mortgage Banking and Servicing Rights Income | $0.5 million | $3.9 million |
| Total Non-Interest Income | $28.6 million | $34.5 million |
Loan Portfolio Composition
As of September 30, 2024, the loan portfolio composition was as follows:
| Loan Type | Amount (in thousands) | Percentage of Total Loans |
|---|---|---|
| Single Family - Mortgage & Warehouse | $4,151,583 | 20.9% |
| Multifamily and Commercial Mortgage | $3,647,469 | 18.4% |
| Commercial Real Estate | $6,256,265 | 31.6% |
| Commercial & Industrial - Non-RE | $5,354,752 | 27.0% |
| Auto & Consumer | $415,765 | 2.1% |
| Total Gross Loans | $19,825,834 | 100.0% |
Credit Quality Indicators
Key credit quality metrics as of September 30, 2024:
| Metric | Value |
|---|---|
| Nonaccrual Loans to Total Loans | 0.89% |
| Net Annualized Charge-Offs to Average Loans | 0.17% |
| Allowance for Credit Losses to Total Loans Held for Investment | 1.35% |
| Non-Performing Assets to Total Assets | 0.75% |
Liquidity and Cash Flow
The cash flow information for the three months ended September 30, 2024, is as follows:
| Cash Flow Activity | Amount (in thousands) |
|---|---|
| Operating Activities | $70,788 |
| Investing Activities | $(45,541) |
| Financing Activities | $592,833 |
Segment Performance
The performance of Axos Financial's segments for the three months ended September 30, 2024, is detailed below:
| Segment | Net Interest Income (in thousands) | Non-Interest Income (in thousands) | Income Before Income Taxes (in thousands) |
|---|---|---|---|
| Banking Business | $288,492 | $8,590 | $164,767 |
| Securities Business | $7,267 | $29,902 | $9,078 |
Conclusion of Financial Metrics
Axos Financial, Inc. has demonstrated significant growth and resilience in its financial performance as of September 30, 2024, indicating a robust operational framework and strategic positioning in both banking and securities sectors.
How Axos Financial, Inc. (AX) Makes Money
Revenue Sources
Axos Financial, Inc. generates revenue primarily through two segments: the Banking Business Segment and the Securities Business Segment. As of September 30, 2024, the company reported a net interest income of $292.0 million, an increase of 38.3% compared to the same period in 2023.
| Category | Q3 2024 (in thousands) | Q3 2023 (in thousands) | Change (%) |
|---|---|---|---|
| Net Interest Income | $292,048 | $211,155 | 38.3% |
| Non-Interest Income | $28,609 | $34,507 | (17.1%) |
| Net Income | $112,340 | $82,645 | 36.0% |
Banking Business Segment
The Banking Business Segment is the largest contributor to Axos Financial's revenue. For the three months ended September 30, 2024, net interest income from this segment was $288.5 million, reflecting a 37.9% increase year-over-year. This growth was primarily driven by higher interest income generated from loans, which increased due to both higher average balances and improved rates earned.
Securities Business Segment
The Securities Business Segment reported net interest income of $7.3 million for Q3 2024, an increase of 31.1% compared to the previous year. However, non-interest income within this segment decreased by 13.5% to $29.9 million, attributed largely to lower broker-dealer fee income.
Loan Portfolio Composition
As of September 30, 2024, Axos Financial's total gross loans amounted to $19.8 billion. The loan composition is detailed in the following table:
| Loan Type | Amount (in thousands) | Percentage of Total |
|---|---|---|
| Single Family - Mortgage & Warehouse | $4,151,583 | 20.9% |
| Multifamily and Commercial Mortgage | $3,647,469 | 18.4% |
| Commercial Real Estate | $6,256,265 | 31.6% |
| Commercial & Industrial - Non-RE | $5,354,752 | 27.0% |
| Auto & Consumer | $415,765 | 2.1% |
Interest Income and Expense
For the three months ended September 30, 2024, Axos Financial reported total interest income of $484.3 million, which was a 33.1% increase from $363.9 million in the same period the previous year. Meanwhile, interest expense rose to $192.2 million, up from $152.8 million, resulting in a net interest margin of 5.17% compared to 4.36% in Q3 2023.
Non-Interest Income Breakdown
In Q3 2024, non-interest income totaled $28.6 million, down from $34.5 million in Q3 2023. The main components of non-interest income included:
| Income Type | Q3 2024 (in thousands) | Q3 2023 (in thousands) |
|---|---|---|
| Broker-dealer Fee Income | $11,060 | $12,477 |
| Advisory Fee Income | $7,945 | $8,219 |
| Banking and Service Fees | $8,613 | $8,350 |
| Mortgage Banking and Servicing Rights Income | $450 | $3,878 |
| Total Non-Interest Income | $28,609 | $34,507 |
Expenses and Provision for Credit Losses
For Q3 2024, total non-interest expenses were reported at $147.5 million, an increase of 22.4% from $120.5 million in Q3 2023. The provision for credit losses increased to $14.0 million from $7.0 million in the prior year.
| Expense Type | Q3 2024 (in thousands) | Q3 2023 (in thousands) |
|---|---|---|
| Salaries and Related Costs | $74,293 | $55,811 |
| Data and Operational Processing | $18,985 | $16,084 |
| Advertising and Promotional Expenses | $14,253 | $10,375 |
| Total Non-Interest Expense | $147,465 | $120,506 |
Performance Ratios
Key performance ratios for Axos Financial as of September 30, 2024, include:
| Ratio Type | Q3 2024 | Q3 2023 |
|---|---|---|
| Return on Average Assets | 1.92% | 1.64% |
| Return on Average Equity | 19.12% | 16.91% |
| Efficiency Ratio | 45.99% | 49.05% |
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Article updated on 8 Nov 2024
Resources:
- Axos Financial, Inc. (AX) Financial Statements – Access the full quarterly financial statements for Q1 2025 to get an in-depth view of Axos Financial, Inc. (AX)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Axos Financial, Inc. (AX)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.