Slides
Page 1
Axos Q1 Fiscal 2026 Earnings Supplement October 30, 2025 NYSE: AX
Page 2
2© 2025 Axos Financial, Inc. All Rights Reserved. 2 Loan Growth by Category $ Millions SF Warehouse Lending Multifamily Small Balance Commercial Jumbo Mortgage Asset-Based and Cash Flow Lending1 Lender Finance Non-RE Capital Call Facilities Auto Unsecured/OD Single Family Mortgage & Warehouse Multifamily & Commercial Mortgage Commercial Real Estate Commercial & Industrial Non-RE Loans Q1 FY26 Q4 FY25 Inc (Dec) $ 3,753 $ 3,786 $ (33) 788 609 179 1,585 1,729 (144) 1,209 1,212 (3) 6,050 5,713 337 1,245 1,224 21 2,587 2,567 20 3,947 2,633 1,314 1,447 1,596 (149) 471 430 41 60 52 8 — 1 (1) $ 23,142 $ 21,552 $ 1,590 Lender Finance RE CRE Specialty Other Auto & Consumer Note 1: Asset-Based and Cash Flow Lending as of Q1 FY26 includes $1,020 million of loans and leases from the Verdant acquisition.
Page 3
3© 2025 Axos Financial, Inc. All Rights Reserved. 3 Three Months Ended June 30, 2025 Three Months Ended September 30, 2025 ($ millions) Axos Reported Axos excluding VCC VCC Impact Axos Reported Net interest income $ 280.2 $ 291.1 $ — $ 291.1 Provision for credit losses (15.0) (9.5) (7.8) (17.3) Non-interest income 41.3 32.3 — 32.3 Non-interest expense (150.7) (154.9) (1.3) (156.2) Net Income2 $ 110.7 $ 119.2 $ (6.8) $ 112.4 Income Statement Verdant Commercial Capital ("VCC") Acquisition Impact Note 1: Provision for credit losses reflects the "Day 1" adjustment to the allowance for credit losses following acquisition; non-interest expense reflects acquisition-related expenses incurred by Axos in connection with the acquisition. Note 2: Represents the total as included in Axos Financial, Inc.'s consolidated income statements, not the summation of components listed above
Page 4
4© 2025 Axos Financial, Inc. All Rights Reserved. 4 As of June 30, 2025 As of September 30, 2025 ($ millions) Axos Reported Axos (excluding VCC) VCC Impact1 Axos Reported Cash and cash equivalents $ 1,933.8 $ 2,529.1 $ 31.6 $ 2,560.7 Restricted cash 242.5 290.0 34.9 324.9 Loans—net of allowance for credit losses 21,049.6 21,614.8 1,020.3 22,635.1 Goodwill and intangibles, net 134.5 132.9 72.8 205.7 Other assets 891.4 903.9 223.8 1,127.7 Total assets2 $ 24,783.1 $ 26,048.3 $ 1,383.5 $ 27,431.8 Secured financings $ — $ — $ 782.4 $ 782.4 Accounts payable and other liabilities 410.2 401.7 29.3 431.0 Total liabilities2 $ 22,102.4 $ 23,827.0 $ 811.7 $ 24,638.7 Note 1: Other assets includes $212.6 million of equipment under operating lease arrangements. Note 2: Represents the total as included in Axos Financial, Inc.'s consolidated balance sheets, not the summation of components listed above Balance Sheet Verdant Commercial Capital ("VCC") Acquisition Impact
Page 5
5© 2025 Axos Financial, Inc. All Rights Reserved. 5 Diversified Deposit Gathering Deposit balances as of September 30, 2025 Note 1: Excludes approximately $450 million of off-balance sheet deposits › Serves approximately 30% of U.S. Chapter 7 bankruptcy trustees in exclusive relationship › Software allows servicing of SEC receivers and non-chapter 7 cases › Full service digital banking, wealth management, and securities trading › White-label banking › Business banking with simple suite of cash management services › 1031 exchange firms › Title and escrow companies › HOA and property management › Business management and entertainment › Broker-dealer client cash › Broker-dealer reserve accounts › Full service treasury/cash management › Team enhancements and geographic expansion › Bank and securities cross-sell Fiduciary Services $1.1B Consumer Direct $12.0B Specialty Deposits $2.6B Distribution Partners $0.3B Axos Securities1 $1.1B Small Business Banking $0.7BCommercial & Treasury Management $4.5B Diversified Deposit Gathering Business Lines Approximately 90% of deposits are FDIC-insured or collateralized
Page 6
6© 2025 Axos Financial, Inc. All Rights Reserved. 6 Change in Allowance for Credit Losses (ACL) & Unfunded Loan Commitments Reserve (UCL) ($ in millions) ACL + UCL ACL + UCL (6.4) 7.8 7.8
Page 7
7© 2025 Axos Financial, Inc. All Rights Reserved. 7 Credit Quality ($ millions) September 30, 2025 Loans O/S Non-Accrual Loans % Single Family-Mortgage & Warehouse $ 4,541 $ 68 1.50 % Multifamily and Commercial Mortgage 2,794 16 0.57 Commercial Real Estate 7,295 22 0.30 Commercial & Industrial - Non-RE 7,981 62 0.78 Auto & Consumer 531 2 0.38 Total $ 23,142 $ 170 0.74 % June 30, 2025 Loans O/S Non-Accrual Loans % Single Family-Mortgage & Warehouse $ 4,395 $ 44 1.00 % Multifamily and Commercial Mortgage 2,941 33 1.12 Commercial Real Estate 6,937 29 0.42 Commercial & Industrial - Non-RE 6,796 62 0.91 Auto & Consumer 483 2 0.41 Total $ 21,552 $ 170 0.79 % September 30, 2024 Loans O/S Non-Accrual Loans % Single Family-Mortgage & Warehouse $ 4,152 $ 59 1.42 % Multifamily and Commercial Mortgage 3,647 31 0.85 Commercial Real Estate 6,256 41 0.66 Commercial & Industrial - Non-RE 5,355 44 0.82 Auto & Consumer 416 2 0.48 Total $ 19,826 $ 177 0.89 %
Page 8
8© 2025 Axos Financial, Inc. All Rights Reserved. 8 September 30, 2025 June 30, 2025 March 31, 2025 December 31, 2024 September 30, 2024 Selected Balance Sheet Data: Total assets $ 27,431,817 $ 24,783,078 $ 23,981,154 $ 23,709,422 $ 23,569,084 Loans—net of allowance for credit losses 22,635,137 21,049,610 20,193,630 19,486,727 19,280,609 Loans held for sale, carried at fair value 12,202 10,012 15,644 25,436 14,566 Allowance for credit losses 307,431 290,049 279,950 270,605 263,854 Securities—trading 533 649 346 241 594 Securities—available-for-sale 57,798 66,008 79,958 97,848 137,996 Securities borrowed 182,518 139,396 91,915 114,672 84,326 Customer, broker-dealer and clearing receivables 263,095 252,720 300,907 298,887 262,774 Total deposits 22,264,753 20,829,543 20,136,714 19,934,904 19,973,329 Advances from the FHLB 60,000 60,000 60,000 60,000 90,000 Secured financings 782,423 — — — — Borrowings, subordinated notes and debentures 510,064 312,671 377,427 358,692 313,519 Securities loaned 204,620 139,426 111,094 135,258 95,883 Customer, broker-dealer and clearing payables 385,821 350,606 314,399 309,593 315,985 Total stockholders’ equity $ 2,793,121 $ 2,680,677 $ 2,603,900 $ 2,521,962 $ 2,405,728 Common shares outstanding at end of period 56,643,547 56,483,617 56,865,524 57,097,632 57,092,216 Common shares issued at end of period 71,356,152 71,101,642 70,813,637 70,571,332 70,562,333 Per Common Share Data: Book value per common share $ 49.31 $ 47.46 $ 45.79 $ 44.17 $ 42.14 Tangible book value per common share (Non-GAAP)1 $ 45.21 $ 44.60 $ 42.91 $ 41.27 $ 39.22 Capital Ratios: Equity to assets at end of period 10.18 % 10.82 % 10.86 % 10.64 % 10.21 % Axos Financial, Inc.: Tier 1 leverage (to adjusted average assets) 10.26 % 10.73 % 10.45 % 10.02 % 9.78 % Common equity tier 1 capital (to risk-weighted assets) 11.66 % 12.52 % 12.39 % 12.42 % 12.44 % Tier 1 capital (to risk-weighted assets) 11.66 % 12.52 % 12.39 % 12.42 % 12.44 % Total capital (to risk-weighted assets) 15.20 % 15.28 % 15.21 % 15.23 % 15.29 % Axos Bank: Tier 1 leverage (to adjusted average assets) 9.69 % 10.23 % 10.14 % 9.85 % 9.82 % Common equity tier 1 capital (to risk-weighted assets) 11.37 % 12.42 % 12.31 % 12.67 % 12.87 % Tier 1 capital (to risk-weighted assets) 11.37 % 12.42 % 12.31 % 12.67 % 12.87 % Total capital (to risk-weighted assets) 12.62 % 13.70 % 13.49 % 13.86 % 14.06 % Axos Clearing LLC: Net capital $ 91,442 $ 86,996 $ 79,264 $ 83,932 $ 85,292 Excess capital $ 86,042 $ 81,834 $ 73,172 $ 78,282 $ 80,081 Net capital as a percentage of aggregate debit items 33.87 % 33.71 % 26.02 % 29.71 % 32.73 % Net capital in excess of 5% aggregate debit items $ 77,942 $ 74,091 $ 64,035 $ 69,805 $ 72,264 AXOS FINANCIAL, INC. SELECTED FINANCIAL INFORMATION (Unaudited – dollars in thousands)
Page 9
9© 2025 Axos Financial, Inc. All Rights Reserved. 9 At or For The Three Months Ended September 30, 2025 June 30, 2025 March 31, 2025 December 31, 2024 September 30, 2024 Selected Income Statement Data: Interest and dividend income $ 465,736 $ 442,413 $ 432,722 $ 456,068 $ 484,262 Interest expense 174,686 162,252 157,258 175,969 192,214 Net interest income 291,050 280,161 275,464 280,099 292,048 Provision for credit losses 17,255 14,997 14,500 12,248 14,000 Net interest income, after provision for credit losses 273,795 265,164 260,964 267,851 278,048 Non-interest income 32,340 41,285 33,373 27,799 28,609 Non-interest expense 156,246 150,652 146,261 145,320 147,465 Income before income taxes 149,889 155,797 148,076 150,330 159,192 Income taxes 37,537 45,122 42,870 45,643 46,852 Net income $ 112,352 $ 110,675 $ 105,206 $ 104,687 $ 112,340 Weighted average number of common shares outstanding: Basic 56,512,587 56,392,620 57,029,078 57,094,153 56,934,671 Diluted 57,782,828 57,782,828 58,174,696 58,226,006 58,168,468 Per Common Share Data: Net income: Basic $ 1.99 $ 1.96 $ 1.84 $ 1.83 $ 1.97 Diluted $ 1.94 $ 1.92 $ 1.81 $ 1.80 $ 1.93 Adjusted earnings per common share (Non-GAAP)1 $ 2.07 $ 1.94 $ 1.81 $ 1.82 $ 1.96 Performance Ratios and Other Data: Growth in loans held for investment, net $ 1,585,527 $ 855,980 $ 706,903 $ 206,118 $ 49,224 Loan originations for sale $ 47,122 $ 42,487 $ 20,962 $ 66,826 $ 69,570 Return on average assets 1.77 % 1.85 % 1.77 % 1.74 % 1.92 % Return on average common stockholders’ equity 15.94 % 16.85 % 16.44 % 16.97 % 19.12 % Interest rate spread2 3.89 % 3.97 % 3.91 % 3.91 % 4.13 % Net interest margin3 4.75 % 4.84 % 4.78 % 4.83 % 5.17 % Net interest margin3 – Banking Business Segment 4.80 % 4.88 % 4.83 % 4.87 % 5.21 % Efficiency ratio4 48.32 % 46.87 % 47.36 % 47.20 % 45.99 % Efficiency ratio4 – Banking Business Segment 42.89 % 40.94 % 41.53 % 40.95 % 39.83 % Asset Quality Ratios: Net annualized charge-offs to average loans 0.11 % 0.16 % 0.09 % 0.10 % 0.17 % Nonaccrual loans to total loans 0.74 % 0.79 % 0.89 % 1.26 % 0.89 % Non-performing assets to total assets 0.64 % 0.71 % 0.79 % 1.06 % 0.75 % Allowance for credit losses - loans to total loans held for investment 1.34 % 1.36 % 1.37 % 1.37 % 1.35 % Allowance for credit losses - loans to non-performing loans 180.41 % 170.23 % 151.28 % 107.58 % 149.32 % 1 See “Use of Non-GAAP Financial Measures” herein. 2 Interest rate spread represents the difference between the annualized weighted average yield on interest-earning assets and the annualized weighted average rate paid on interest-bearing liabilities. 3 Net interest margin represents annualized net interest income as a percentage of average interest-earning assets. 4 Efficiency ratio represents non-interest expense as a percentage of the aggregate of net interest income and non-interest income. AXOS FINANCIAL, INC. SELECTED FINANCIAL INFORMATION (Unaudited – dollars in thousands)
Page 10
10© 2025 Axos Financial, Inc. All Rights Reserved. 10 (Dollars in thousands, except per share amounts) September 30, 2025 June 30, 2025 March 31, 2025 December 31, 2024 September 30, 2024 Net income $ 112,352 $ 110,675 $ 105,206 $ 104,687 $ 112,340 Acquisition-related costs1 2,941 1,604 1,604 1,645 2,554 Verdant acquisition - Provision for credit losses 7,765 — — — — Other costs2 — — (1,879) — — Income taxes (2,681) (465) 80 (503) (752) Adjusted earnings (non-GAAP) $ 120,377 $ 111,814 $ 105,011 $ 105,829 $ 114,142 Average dilutive common shares outstanding 57,782,828 57,558,280 58,174,696 58,226,006 58,168,468 Diluted EPS $ 1.94 $ 1.92 $ 1.81 $ 1.80 $ 1.93 Acquisition-related costs1 0.05 0.03 0.03 0.03 0.04 Verdant acquisition - Provision for credit losses 0.13 — — — — Other costs2 — — (0.03) — — Income taxes (0.05) (0.01) — (0.01) (0.01) Adjusted EPS (Non-GAAP) $ 2.07 $ 1.94 $ 1.81 $ 1.82 $ 1.96 1 Acquisition-related costs includes amortization of intangible assets, and for the three months ended September 30, 2025, also includes $1.3 million of acquisition-related costs associated with the Verdant acquisition. 2 Other costs for the three months ended March 31, 2025, primarily reflects the payment of a legal judgment at an amount less than previously accrued. We define “tangible book value”, a non-GAAP financial measure, as book value adjusted for goodwill and other intangible assets. Tangible book value is calculated using common stockholders’ equity minus servicing rights, goodwill and other intangible assets. Tangible book value per common share, a non-GAAP financial measure, is calculated by dividing tangible book value by the common shares outstanding at the end of the period. We believe tangible book value per common share is useful in evaluating the Company’s capital strength, financial condition, and ability to manage potential losses. Below is a reconciliation of total stockholders’ equity, the nearest comparable GAAP measure, to tangible book value per common share (non-GAAP) as of the dates indicated:(Dollars in thousands, except per share amounts) September 30, 2025 June 30, 2025 March 31, 2025 December 31, 2024 September 30, 2024 Common stockholders’ equity $ 2,793,121 $ 2,680,677 $ 2,603,900 $ 2,521,962 $ 2,405,728 Less: servicing rights, carried at fair value 26,243 27,218 27,585 28,045 27,335 Less: goodwill and intangible assets 205,747 134,502 135,966 137,570 139,215 Tangible common stockholders’ equity (Non-GAAP) $ 2,561,131 $ 2,518,957 $ 2,440,349 $ 2,356,347 $ 2,239,178 Common shares outstanding at end of period 56,643,547 56,483,617 56,865,524 57,097,632 57,092,216 Book value per common share $ 49.31 $ 47.46 $ 45.79 $ 44.17 $ 42.14 Less: servicing rights, carried at fair value per common share $ 0.46 $ 0.48 $ 0.49 $ 0.49 $ 0.48 Less: goodwill and other intangible assets per common share $ 3.63 $ 2.38 $ 2.39 $ 2.41 $ 2.44 Tangible book value per common share (Non-GAAP) $ 45.22 $ 44.60 $ 42.91 $ 41.27 $ 39.22 In addition to the results presented in accordance with GAAP, this earnings supplement includes non-GAAP financial measures such as adjusted earnings, adjusted earnings per diluted common share, and tangible book value per common share. Non-GAAP financial measures have inherent limitations, may not be comparable to similarly titled measures used by other companies and are not audited. Readers should be aware of these limitations and should be cautious as to their reliance on such measures. Although we believe the non-GAAP financial measures disclosed in this report enhance investors’ understanding of our business and performance, these non-GAAP measures should not be considered in isolation, or as a substitute for GAAP basis financial measures. We define “adjusted earnings”, a non-GAAP financial measure, as net income without the after-tax impact of non-recurring acquisition-related costs and other costs (unusual or non-recurring charges). Adjusted earnings per diluted common share (“adjusted EPS”), a non-GAAP financial measure, is calculated by dividing non-GAAP adjusted earnings by the average number of diluted common shares outstanding during the period. We believe the non-GAAP measures of adjusted earnings and adjusted EPS provide useful information about the Company’s operating performance. We believe excluding the non-recurring acquisition related costs and other costs (unusual or non-recurring) provides investors with an alternative understanding of Axos’ core business. Below is a reconciliation of net income, the nearest comparable GAAP measure, to adjusted earnings and adjusted EPS (Non-GAAP) for the periods shown: Use of Non-GAAP Financial Measures
Page 11
11© 2025 Axos Financial, Inc. All Rights Reserved. 11 Greg Garrabrants, President and CEO Derrick Walsh, EVP and CFO investors@axosfinancial.com www.axosfinancial.com Johnny Lai, SVP Corporate Development and Investor Relations Phone: 858.649.2218 Mobile: 858.245.1442 jlai@axosfinancial.com Contact Information