Axos Financial, Inc. Reports First Quarter Fiscal Year 2027 Results

Higher income and a wider net interest margin accompanied increased operating expenses and credit-loss provisions.

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LAS VEGAS--(BUSINESS WIRE)-- Axos Financial, Inc. (NYSE and NYSE Texas: AX) (“Axos” or the “Company”) today announced unaudited financial results for the first fiscal quarter ended September 30, 2026. Net income was $129.6 million and diluted earnings per share (“EPS”) was $2.25 for the quarter ended September 30, 2026. Net income for the quarter ended September 30, 2025 was $112.4 million and diluted EPS was $1.94. Adjusted earnings and adjusted earnings per diluted common share (“Adjusted EPS”), non-GAAP measures described further below, increased $14.5 million to $134.8 million and increased $0.27 to $2.34, respectively, for the quarter ended September 30, 2026, compared to $120.4 million and $2.07, respectively, for the quarter ended September 30, 2025.

First Quarter Fiscal 2027 Financial Summary

	Three Months Ended September 30,
(Dollars in thousands, except per share data)		2026			2025		% Change
Net interest income	$	331,256		$	291,050		13.8	%
Non-interest income	$	63,815		$	32,340		97.3	%
Net income	$	129,648		$	112,352		15.4	%
Adjusted earnings (Non-GAAP)1	$	134,838		$	120,377		12.0	%
Diluted EPS	$	2.25		$	1.94		16.0	%
Adjusted EPS (Non-GAAP)1	$	2.34		$	2.07		13.0	%
1 See “Use of Non-GAAP Financial Measures”

“Net interest margin increased by 10 basis points quarter-over-quarter, resulting in a 16.8% annualized growth in net interest income,” stated Greg Garrabrants, President and Chief Executive Officer of Axos. “Excluding net paydowns in single-family mortgage and warehouse, multifamily and small balance commercial real estate, ending loans grew by approximately $563 million this quarter. Our loan pipeline remains solid, and we expect a few large loans that did not close in the September 2026 quarter to drive an acceleration in overall loan growth in the December 2026 quarter.”

“Double-digit growth in net interest income and non-interest income, coupled with good operating expense management, resulted in a 16.0% year-over-year increase in diluted earnings per share in our fiscal first quarter of 2027,” said Derrick Walsh, Chief Financial Officer of Axos. “We charged off two non-performing C&I loans that we set aside specific loan loss reserves for in prior quarters. Excluding those two C&I charge-offs, our annualized net charge-offs to average loans was 0.08% in the three months ended September 30, 2026. We remain well-reserved given our historically low levels of net charge-offs.”

Other Highlights

• Net interest margin was 4.64% for the three months ended September 30, 2026, up 10 basis points from 4.54% in the three months ended June 30, 2026
• Ending net loan balances were $25.9 billion at September 30, 2026, reflecting loan growth of $316.6 million for the three months ended September 30, 2026
• Non-performing assets to total assets were 0.51% as of September 30, 2026, down from 0.64% as of September 30, 2025
• Non-interest income was $63.8 million for the three months ended September 30, 2026, up 97.3% from $32.3 million for the three months ended September 30, 2025
• Total deposits were $25.4 billion at September 30, 2026, an increase of $847.8 million from $24.6 billion at June 30, 2026
• Pretax income for the Securities Business Segment increased by 23.8% year-over-year to $10.3 million in the three months ended September 30, 2026
• During the quarter ended September 30, 2026 and through October 23, 2026, the Company repurchased $14.0 million of Axos common stock at an average price of $87.40 per share. As of October 23, 2026 the Company had $112.1 million of share repurchase authorization remaining under the Company’s common stock repurchase program
• Book value per share increased to $57.92 at September 30, 2026, up 17.5% from $49.31 at September 30, 2025

First Quarter Fiscal 2027 Income Statement Summary

Net income was $129.6 million and diluted EPS was $2.25 for the three months ended September 30, 2026, compared to net income of $112.4 million and diluted EPS of $1.94 for the three months ended September 30, 2025. Net interest income increased $40.2 million, or 13.8%, for the three months ended September 30, 2026, compared to the three months ended September 30, 2025, primarily due to an increase in interest income earned on loans, partially offset by a decrease in interest income on deposits at other financial institutions, and increases in interest expense on advances from the Federal Home Loan Bank and secured financings.

The provision for credit losses was $24.5 million for the three months ended September 30, 2026, compared to $17.3 million for the three months ended September 30, 2025. The provision for credit losses for the three months ended September 30, 2026, was primarily driven by certain individually assessed loans, partially offset by a benefit in the Commercial Real Estate portfolio and lower expected losses on unfunded lending commitments, both resulting from an improved macroeconomic outlook reflected in the forecast scenarios used in the allowance for credit losses model.

Non-interest income increased to $63.8 million for the three months ended September 30, 2026, compared to $32.3 million for the three months ended September 30, 2025. The increase was primarily due to operating lease rental and other income from the acquisition of Verdant Commercial Capital, LLC (“Verdant”) on September 30, 2025, commercial office complex operating lease rental income and higher prepayment penalty income.

Non-interest expense, comprised of various operating expenses, increased $39.2 million to $195.4 million for the three months ended September 30, 2026, from $156.2 million for the three months ended September 30, 2025. The increase was primarily due to higher depreciation and amortization expense, mainly attributable to Verdant and the acquisition of deposits, an increase in salaries and related costs, general and administrative expense and higher data and operational processing expense, partially offset by lower professional and contracted services expense.

Balance Sheet Summary

Axos’ total assets increased by $0.9 billion, or 2.9%, to $30.8 billion, at September 30, 2026, from $30.0 billion at June 30, 2026, primarily attributable to an increase in cash and cash equivalents and loans, partially offset by a decrease in available-for-sale-securities. Total liabilities increased by $0.8 billion, or 2.8%, to $27.6 billion at September 30, 2026, from $26.8 billion at June 30, 2026, primarily attributable to higher deposit balances, including the acquisition of deposits from Capital One, partially offset by lower advances from the Federal Home Loan Bank and secured financings. Stockholders’ equity increased $122.4 million, or 3.9%, to $3.3 billion at September 30, 2026, from $3.2 billion at June 30, 2026, primarily due to net income of $129.6 million.

Conference Call

A conference call and webcast will be held on Thursday, October 29, 2026, at 5:00 PM Eastern / 2:00 PM Pacific. Analysts and investors may dial in and participate in the question/answer session. To access the call, please dial: 877-407-8293. The conference call will be webcast live, and both the webcast and the earnings supplement may be accessed at Axos’ website, investors.axosfinancial.com. For those unable to listen to the live broadcast, a replay will be available until November 29, 2026 at Axos’ website and telephonically by dialing toll-free number 877-660-6853, passcode 13763017.

About Axos Financial, Inc. and Subsidiaries

Axos Financial, Inc., with approximately $30.8 billion in consolidated assets as of September 30, 2026, is the holding company for Axos Bank, Axos Clearing LLC and Axos Invest, Inc. Axos Bank provides consumer and business banking products nationwide through its low-cost distribution channels and affinity partners. Axos Clearing LLC (including its business division Axos Advisor Services), with approximately $48.0 billion of assets under custody and/or administration as of September 30, 2026, and Axos Invest, Inc., provide comprehensive securities clearing services to introducing broker-dealers and registered investment advisor correspondents, and digital investment advisory services to retail investors, respectively. Axos Financial, Inc.’s common stock is listed on the NYSE and NYSE Texas under the symbol “AX” and is a component of the Russell 2000® Index and the S&P SmallCap 600® Index, among other indices. For more information on Axos Financial, Inc., please visit http://investors.axosfinancial.com.

Segment Reporting

The Company operates through two segments: the Banking Business Segment and the Securities Business Segment. In order to reconcile the two segments to the consolidated totals, the Company includes corporate activities and intercompany eliminations. Inter-segment transactions are eliminated in consolidation and primarily include non-interest income earned by the Securities Business Segment and non-interest expense incurred by the Banking Business Segment for cash sorting fees related to deposits sourced from Securities Business Segment customers.

The following tables present the operating results of the segments:

	For the Three Months Ended September 30, 2026
(Dollars in thousands)	Banking Business Segment			Securities Business Segment			Corporate/ Eliminations				Axos Consolidated
Net interest income	$	325,573		$	10,642		$	(4,959	)		$	331,256
Provision for credit losses		24,500			—			—				24,500
Non-interest income		40,022			30,498			(6,705	)			63,815
Non-interest expense		164,982			30,884			(456	)			195,410
Income before income taxes	$	176,113		$	10,256		$	(11,208	)		$	175,161
	For the Three Months Ended September 30, 2025
(Dollars in thousands)	Banking Business Segment			Securities Business Segment			Corporate/ Eliminations				Axos Consolidated
Net interest income	$	287,200		$	8,194		$	(4,344	)		$	291,050
Provision for credit losses		17,255			—			—				17,255
Non-interest income		12,375			29,457			(9,492	)			32,340
Non-interest expense		128,493			29,367			(1,614	)			156,246
Income before income taxes	$	153,827		$	8,284		$	(12,222	)		$	149,889

Use of Non-GAAP Financial Measures

In addition to the results presented in accordance with accounting principles generally accepted in the United States of America (“GAAP”), this release 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 release 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 items (including amortization of intangible assets related to acquisitions) and other costs (unusual or non-recurring charges). 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 Axos’ operating performance. We believe excluding the non-recurring acquisition-related costs and other costs 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:

	For the Three Months Ended September 30,
(Dollars in thousands, except per share data)		2026				2025
Net income	$	129,648			$	112,352
Acquisition-related costs1		7,012				2,941
Verdant acquisition - Provision for credit losses		—				7,765
Income tax effect		(1,822	)			(2,681	)
Adjusted earnings (Non-GAAP)	$	134,838			$	120,377
Average dilutive common shares outstanding		57,554,935				57,782,828
Diluted EPS	$	2.25			$	1.94
Acquisition-related costs1		0.12				0.05
Verdant acquisition - Provision for credit losses		—				0.13
Income tax effect		(0.03	)			(0.05	)
Adjusted EPS (Non-GAAP)	$	2.34			$	2.07
1 Acquisition-related costs include amortization of intangible assets, and for the three months ended September 30, 2025, also include $1.3 million of acquisition-related costs associated with the Verdant acquisition.

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 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, 2026			June 30, 2026			September 30, 2025
Common stockholders’ equity	$	3,288,794		$	3,166,418		$	2,793,121
Less: servicing rights, carried at fair value		26,469			25,653			26,243
Less: goodwill and other intangible assets—net		271,505			249,317			205,747
Tangible book value (Non-GAAP)	$	2,990,820		$	2,891,448		$	2,561,131
Common shares outstanding at end of period		56,777,418			56,734,049			56,643,547
Book value per common share	$	57.92		$	55.81		$	49.31
Less: servicing rights, carried at fair value per common share		0.47			0.45			0.46
Less: goodwill and other intangible assets—net per common share		4.77			4.40			3.63
Tangible book value per common share (Non-GAAP)	$	52.68		$	50.96		$	45.22

Forward-Looking Safe Harbor Statement

This press release contains forward-looking statements that involve risks and uncertainties, including without limitation statements relating to Axos’ financial prospects and other projections of its performance and asset quality, Axos’ deposit balances and capital ratios, Axos’ ability to continue to grow profitably and increase its business, Axos’ ability to continue to diversify its lending and deposit franchises, the anticipated timing and financial performance of other offerings, initiatives, and acquisitions, expectations of the environment in which Axos operates and projections of future performance. These forward-looking statements are made on the basis of the views and assumptions of management regarding future events and performance as of the date of this press release. Actual results and the timing of events could differ materially from those expressed or implied in such forward-looking statements as a result of risks and uncertainties, including without limitation Axos’ ability to successfully integrate acquisitions and realize the anticipated benefits of the transactions, changes in the interest rate environment, monetary policy, inflation, tariffs, government regulation, general economic conditions, changes in the competitive marketplace, conditions in the real estate markets in which we operate, risks associated with credit quality, our ability to attract and retain deposits and access other sources of liquidity, and the outcome and effects of litigation and other factors beyond our control. These and other risks and uncertainties detailed in Axos’ periodic reports filed with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the fiscal year ended June 30, 2026, could cause actual results to differ materially from those expressed or implied in any forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Axos undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. All written and oral forward-looking statements made in connection with this press release, which are attributable to us or persons acting on Axos’ behalf, are expressly qualified in their entirety by the foregoing information.

AXOS FINANCIAL, INC. SELECTED CONSOLIDATED FINANCIAL INFORMATION (Unaudited – dollars in thousands)
	September 30, 2026				June 30, 2026				September 30, 2025
Selected Balance Sheet Data:
Total assets	$	30,844,961			$	29,961,869			$	27,431,817
Loans—net of allowance for credit losses		25,912,024				25,595,403				22,635,137
Allowance for credit losses		304,361				347,375				307,431
Available-for-sale securities		780,585				803,667				57,798
Securities borrowed		190,831				163,462				182,518
Customer, broker-dealer and clearing receivables		320,416				347,944				263,095
Total deposits		25,413,197				24,565,392				22,264,753
Advances from the Federal Home Loan Bank		60,000				154,000				60,000
Secured financings		511,647				576,680				782,423
Borrowings, subordinated notes and debentures		343,166				342,915				510,064
Securities loaned		238,502				194,729				204,620
Customer, broker-dealer and clearing payables		386,792				365,792				385,821
Total stockholders’ equity	$	3,288,794			$	3,166,418			$	2,793,121
Common shares outstanding at end of period		56,777,418				56,734,049				56,643,547
Common shares issued at end of period		72,140,489				71,939,630				71,356,152
Per Common Share Data:
Book value per common share	$	57.92			$	55.81			$	49.31
Tangible book value per common share (Non-GAAP)1	$	52.68			$	50.96			$	45.22
Capital Ratios:
Equity to assets at end of period		10.66	%			10.57	%			10.18	%
Axos Financial, Inc.:
Tier 1 leverage (to adjusted average assets)		10.15	%			9.94	%			10.26	%
Common equity tier 1 capital (to risk-weighted assets)		12.22	%			11.76	%			11.66	%
Tier 1 capital (to risk-weighted assets)		12.22	%			11.76	%			11.66	%
Total capital (to risk-weighted assets)		14.81	%			14.39	%			15.20	%
Axos Bank:
Tier 1 leverage (to adjusted average assets)		9.35	%			9.24	%			9.69	%
Common equity tier 1 capital (to risk-weighted assets)		11.33	%			10.93	%			11.37	%
Tier 1 capital (to risk-weighted assets)		11.33	%			10.93	%			11.37	%
Total capital (to risk-weighted assets)		12.48	%			12.10	%			12.62	%

AXOS FINANCIAL, INC. SELECTED CONSOLIDATED FINANCIAL INFORMATION (Unaudited – dollars in thousands, except per share data)
	As of or for the Three Months Ended
	September 30,
(Dollars in thousands, except per share data)		2026				2025
Selected Income Statement Data:
Interest and dividend income	$	517,077			$	465,736
Interest expense		185,821				174,686
Net interest income		331,256				291,050
Provision for credit losses		24,500				17,255
Net interest income, after provision for credit losses		306,756				273,795
Non-interest income		63,815				32,340
Non-interest expense		195,410				156,246
Income before income taxes		175,161				149,889
Income tax expense		45,513				37,537
Net income	$	129,648			$	112,352
Weighted average number of common shares outstanding:
Basic		56,756,005				56,512,587
Diluted		57,554,935				57,782,828
Per Common Share Data:
Net income:
Basic	$	2.28			$	1.99
Diluted	$	2.25			$	1.94
Adjusted earnings per common share (Non-GAAP)1	$	2.34			$	2.07
Performance Ratios and Other Data:
Growth in loans held for investment, net	$	316,621			$	1,585,527
Loan originations for sale	$	47,342			$	47,122
Return on average assets		1.72	%			1.77	%
Return on average common stockholders’ equity		15.66	%			15.94	%
Interest rate spread2		3.91	%			3.89	%
Net interest margin3		4.64	%			4.75	%
Net interest margin3 – Banking Business Segment		4.67	%			4.80	%
Efficiency ratio4		49.46	%			48.32	%
Efficiency ratio4 – Banking Business Segment		45.13	%			42.89	%
Asset Quality Ratios:
Net annualized charge-offs to average loans		1.09	%			0.11	%
Non-accrual loans to total loans		0.59	%			0.74	%
Non-performing assets to total assets		0.51	%			0.64	%
Allowance for credit losses - loans to total loans held for investment		1.16	%			1.34	%
Allowance for credit losses - loans to non-accrual loans		195.79	%			180.41	%

1	See “Use of Non-GAAP Financial Measures.”
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.

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20261029575204/en/

Investor Relations Contact:
Johnny Lai, CFA
SVP, Corporate Development & Investor Relations
858-649-2218
jlai@axosfinancial.com

Source: Axos Financial, Inc.

Key Terms

non-gaap financial

Non-GAAP refers to financial measures that companies use to show their earnings or performance without including certain expenses or income that are often added back to give a different picture. It matters because it can make a company's results look better or more favorable, but it may also hide important costs, so investors need to look at both GAAP (official rules) and non-GAAP numbers to get a full understanding.

View in glossary

net interest margin financial

Net interest margin measures how much a bank earns from lending and investing compared with what it pays for funding, expressed as a percentage of its interest-earning assets. Think of it like a grocery store’s markup: it shows the gap between buying cost and selling price per dollar of goods — here, the cost is interest paid and the sale is interest received. Investors watch it because a higher margin usually means a bank is more profitable and better at managing interest rate and credit conditions.

net charge-offs financial

Net charge-offs are the amount of loans or credit a lender removes from its books as uncollectible after subtracting any money later recovered from previously written-off accounts. Think of it like a store writing off unpaid tabs but getting back a few dollars later — the net figure shows the real loss. Investors watch this to judge a lender’s loan quality, future profits and how much capital may be needed to cover bad debts.

allowance for credit losses financial

Allowance for credit losses is a reserve set aside by a financial institution to cover potential losses from borrowers who may not repay their loans. It acts like a safety net, helping the institution prepare for loans that might turn sour. For investors, it signals how cautious the institution is about the quality of its loans and potential risks to its financial health.