Q1 2025 Axos Financial Inc Earnings Call Transcript
Key Points
- Axos Financial Inc (AX) reported double-digit year-over-year growth in earnings per share and book value per share for the 10th consecutive quarter.
- The company achieved a 19.1% return on average common equity for the three months ended September 30, 2024.
- Net interest margin increased to 5.17% for the quarter, benefiting from the payoff of three loans purchased from the FDIC.
- Axos Financial Inc (AX) increased deposits by $614 million in the first quarter of fiscal year 2025, with demand, money market, and savings accounts representing 96% of total deposits.
- The company continues to see strong demand in its fund finance, ABL, and select C&I lending businesses, with several new lending and deposit teams contributing to growth.
- There was an uptick in nonperforming assets, particularly in the single-family jumbo mortgage and commercial real estate loan portfolios.
- The company faced elevated levels of prepayments in multifamily, single-family jumbo mortgage, and commercial real estate lending groups, impacting loan growth.
- Axos Financial Inc (AX) experienced increased competition and pricing pressure in certain lending verticals, which may require concessions on pricing.
- Noninterest expenses rose to approximately $147 million for the three months ended September 30, 2024, driven by higher salaries and benefits expenses.
- The company allocated a specific loan provision of approximately $10 million for a potential loss related to a restructuring transaction in a shared national credit loan.
Greetings and welcome to the access Financial Inc first quarter, 2025 earnings call and webcast. At this time, all participants are in a listen-only mode, a question and answer session will follow the formal presentation. If anyone should require operator assistance, please press star zero on your telephone keypad. As a reminder, this conference is being recorded and it is now my pleasure to introduce Johnny Lai, Senior Vice President, corporate Development and Investor Relations. Thank you, Johnny. You may begin.
Thank you John. Good afternoon, everyone. Thanks for your interest in Axos. Joining us today for Axos Financial Inc S first quarter, 2025 financial results conference call are the company's President and Chief Executive Officer Greg Rebrand and executive Vice President and Chief Financial Officer Derek Walsh Greg and Erick will review and comment on the financial and operational results for the three months ended September 30th 2024. And we will be
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