Axos Financial Inc (AX) Reports Stellar Growth in Q2 Fiscal 2024 Earnings
Net Income: Soared by 86.1% to $151.8 million in Q2 FY 2024.
Diluted EPS: Increased by 94.1% to $2.62 compared to the same quarter last year.
Net Interest Income: Grew by 14.4% to $228.6 million.
Non-Interest Income: Jumped by 338.2% to $124.1 million, bolstered by a significant gain from the FDIC Loan Purchase.
Loan and Deposit Growth: Net loans for investment rose by 22.0% annualized; total deposits increased by 12.6% annualized.
Book Value: Increased by 22.6% to $36.53 per share.
Capital Allocation: $58.7 million of common stock repurchased at an average price of $36.49 per share.
On January 30, 2024, Axos Financial Inc (NYSE:AX) released its impressive second quarter fiscal 2024 results, showcasing significant growth in net income and earnings per share (EPS). The detailed financial performance can be reviewed in the company's 8-K filing. Axos Financial Inc, a bank holding company operating through its subsidiary BofI Federal Bank, has once again demonstrated robust financial health and strategic acumen in the banking sector.
Financial Performance Highlights
Axos Financial Inc (NYSE:AX) reported a remarkable 86.1% increase in net income for the quarter ended December 31, 2023, reaching $151.8 million. This growth was accompanied by a 94.1% surge in diluted EPS, which stood at $2.62. Adjusted earnings and adjusted EPS, which exclude non-recurring items, also saw a healthy uptick. The company's net interest income rose by 14.4% to $228.6 million, driven by higher interest income from loans due to increased rates and balances.
Non-interest income experienced a dramatic increase, primarily due to a $92.4 million pre-tax gain from the FDIC Loan Purchase. This strategic acquisition not only contributed to income but also expanded the company's loan portfolio at a favorable price. The provision for credit losses was $13.5 million, primarily due to loan growth and the loans acquired in the FDIC Loan Purchase. Non-interest expense increased to $121.8 million, reflecting higher operational costs associated with the company's growth.
Balance Sheet and Capital Strength
The balance sheet of Axos Financial Inc (NYSE:AX) expanded, with total assets growing by 6.3% to $21.6 billion. Net loans for investment saw a significant increase, and total deposits grew by 12.6% annualized. The company's capital ratios remained strong, with total capital to risk-weighted assets at 13.79%. The book value per share increased by 22.6% to $36.53, reflecting the company's growing intrinsic value.
President and CEO Greg Garrabrants stated,
Our record second quarter earnings were driven by strong organic loan and deposit growth, further net interest margin expansion, disciplined expense management and a gain associated with an opportunistic loan purchase from the FDIC."
This statement underscores the company's successful strategy and operational efficiency.
Looking Ahead
Axos Financial Inc (NYSE:AX) continues to demonstrate a resilient credit quality, with annualized net charge-offs to average loans declining year-over-year. The company's strategic initiatives, including the FDIC Loan Purchase, have positioned it well for sustained growth. With a strong capital position and a focus on risk-adjusted returns, Axos is well-equipped to navigate the dynamic banking landscape and capitalize on future opportunities.
Investors and analysts interested in further details can join the conference call and webcast scheduled for January 30, 2024. The financial results and the company's strategic direction indicate that Axos Financial Inc (NYSE:AX) is continuing on a path of robust growth and financial strength, making it a noteworthy company for value investors.
Explore the complete 8-K earnings release (here) from Axos Financial Inc for further details.
This article first appeared on GuruFocus.
