U.S. markets open in 6 hours 4 minutes
  • S&P Futures

    4,162.25
    -13.50 (-0.32%)
     
  • Dow Futures

    34,104.00
    -102.00 (-0.30%)
     
  • Nasdaq Futures

    12,734.25
    -42.50 (-0.33%)
     
  • Russell 2000 Futures

    1,970.40
    -8.90 (-0.45%)
     
  • Crude Oil

    77.51
    +0.37 (+0.48%)
     
  • Gold

    1,894.50
    +9.70 (+0.51%)
     
  • Silver

    22.47
    +0.29 (+1.32%)
     
  • EUR/USD

    1.0757
    +0.0027 (+0.25%)
     
  • 10-Yr Bond

    3.6740
    0.0000 (0.00%)
     
  • Vix

    18.66
    -0.77 (-3.96%)
     
  • GBP/USD

    1.2097
    +0.0045 (+0.37%)
     
  • USD/JPY

    130.8170
    -0.2550 (-0.19%)
     
  • BTC-USD

    23,214.57
    +313.83 (+1.37%)
     
  • CMC Crypto 200

    535.51
    +9.56 (+1.82%)
     
  • FTSE 100

    7,914.19
    +49.48 (+0.63%)
     
  • Nikkei 225

    27,606.46
    -79.01 (-0.29%)
     

Axos Financial, Inc. Reports First Quarter Fiscal 2023 Results

LAS VEGAS, October 27, 2022--(BUSINESS WIRE)--Axos Financial, Inc. (NYSE: AX) ("Axos"), today announced unaudited financial results for the first fiscal quarter ended September 30, 2022. Net income was $58.4 million, a decrease of 3% from $60.2 million for the quarter ended September 30, 2021. Diluted earnings per share were $0.97, a decrease of $0.02, or 2%, as compared to diluted earnings per share of $0.99 for the quarter ended September 30, 2021.

Adjusted earnings and adjusted earnings per diluted common share ("adjusted EPS"), non-GAAP measures, which exclude non-cash amortization expenses and non-recurring costs related to mergers and acquisitions, and other non-recurring costs increased 15% to $71.6 million and 15% to $1.18, respectively, for the quarter ended September 30, 2022, compared to $62.2 million and $1.03, respectively, for the quarter ended September 30, 2021.

First Quarter Fiscal 2023 Financial Summary

Three Months Ended September 30,

(Dollars in thousands, except per share data)

2022

2021

% Change

Net interest income

$

180,475

$

146,642

23.1

%

Non-interest income

$

27,208

$

26,702

1.9

%

Net income

$

58,407

$

60,210

(3.0

)%

Adjusted earnings (Non-GAAP)1

$

71,615

$

62,228

15.1

%

Diluted EPS

$

0.97

$

0.99

(2.0

)%

Adjusted EPS (Non-GAAP)1

$

1.18

$

1.03

14.6

%

1 See "Use of Non-GAAP Financial Measures"

"We delivered another strong quarter, with double-digit annualized loan, deposit and book value per share growth," stated Greg Garrabrants, President and Chief Executive Officer of Axos. "Net interest income increased 23.1% year-over-year, propelled by strong loan growth and net interest margin expanding on a consolidated and bank-only basis. Axos Securities continues to benefit from rising interest rates, with $3.3 billion of low-cost deposits and $8.9 million of pretax income. I am extremely excited about the future growth opportunities we have across our securities businesses."

"We continue to generate profitable growth while maintaining strong capital levels," stated Derrick Walsh, Executive Vice President and Chief Financial Officer of Axos. "Credit quality in our loan portfolio remains healthy with a non-performing loan ratio of 0.78%. Over the past year, we have demonstrated our asset sensitivity by expanding our net interest margin. We continue to invest prudently in existing and new businesses that will further diversify our loan, deposit and fee income capabilities."

Other Highlights

  • Net loans for investment totaled $15.2 billion at September 30, 2022, an increase of $1.1 billion, or 31.8% annualized, from $14.1 billion at June 30, 2022

  • Total deposits totaled $15.2 billion at September 30, 2022, an increase of $1.3 billion, or 35.3% annualized, from $13.9 billion at June 30, 2022

  • Net interest margin was 4.26% compared to 4.22% for the three months ended September 30, 2021

  • Pretax income for the securities business segment was $8.9 million for the three months ended September 30, 2022, an improvement from a $0.4 million loss for the three months ended June 30, 2022

  • Non-performing loans to total loans was 0.78%, down from 0.83% at June 30, 2022

  • Book value increased to $28.35 per share, up from $24.52, an increase of 15.6% at September 30, 2021

First Quarter Fiscal 2023 Income Statement Summary

Net income was $58.4 million or $0.97 per diluted common share for the three months ended September 30, 2022, compared to $60.2 million, or $0.99 per diluted common share for the three months ended September 30, 2021. Net interest income increased $33.8 million or 23.1% for the three months ended September 30, 2022 compared to the three months ended September 30, 2021, primarily due to higher average balances and rates earned in the loan portfolio, partially offset by higher rates paid on deposits.

The provision for credit losses was $8.8 million for the three months ended September 30, 2022 compared to $4.0 million for the three months ended September 30, 2021 primarily due to growth in the loan portfolio and changes in loan mix.

Non-interest income increased to $27.2 million for the three months ended September 30, 2022 compared to $26.7 million for the three months ended September 30, 2021. Increases of $2.7 million in broker-dealer fee income and $1.7 million in advisory fee income were mostly offset by decreases of $1.9 million in mortgage banking income and $1.8 million in prepayment penalty fee income.

Non-interest expense, comprised of various operating expenses, increased $31.7 million to $116.1 million for the three months ended September 30, 2022 from $84.4 million for the three months ended September 30, 2021. The increase was primarily attributable to a $16.0 million accrual in the current quarter as a result of an adverse legal judgement that has not been finalized, increased salaries and related costs of $6.3 million, as well as higher professional services expenses of $3.5 million, advertising and promotional expenses of $3.0 million and data processing expenses of $1.9 million.

Balance Sheet Summary

Axos’ total assets increased by $1.0 billion, or 6%, to $18.4 billion, at September 30, 2022, from $17.4 billion at June 30, 2022, primarily due to an increase of $1.1 billion in loans held for investment. Total liabilities increased by $0.9 billion, or 6%, to $16.7 billion at September 30, 2022, from $15.8 billion at June 30, 2022, primarily due to an increase in deposits of $1.3 billion. Stockholders’ equity increased by approximately $58.0 million, or 4%, to $1.7 billion at September 30, 2022 from $1.6 billion at June 30, 2022. The increase was primarily the result of net income of $58.4 million.

The Bank’s Tier 1 capital to adjusted average assets ratio was 10.30% at September 30, 2022 compared to 10.14% at September 30, 2021.

Conference Call

A conference call and webcast will be held on Thursday, October 27, 2022 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 27, 2022, at Axos’ website and telephonically by dialing toll-free number 877-660-6853, passcode 13733311.

About Axos Financial, Inc. and Subsidiaries

The condensed consolidated financial statements include the accounts of Axos Financial, Inc. ("Axos") and its wholly owned subsidiaries, Axos Bank (the "Bank") and Axos Nevada Holding, LLC ("Axos Nevada Holding" and collectively, the "Company"). Axos Nevada Holding wholly owns its subsidiary Axos Securities, LLC, which wholly owns subsidiaries Axos Clearing LLC, a clearing broker dealer, Axos Invest, Inc., a registered investment advisor, and Axos Invest LLC, an introducing broker dealer. With approximately $18.4 billion in consolidated assets, Axos Financial, Inc. through Axos Bank provides consumer and business banking products through its low-cost distribution channels and affinity partners. Axos Clearing LLC (including its business division AAS), with approximately $30.3 billion of assets under custody and/or administration, and Axos Invest, Inc., provide comprehensive securities clearing and custody 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 under the symbol "AX" and is a component of the Russell 2000® Index, the S&P SmallCap 600® Index, the KBW Nasdaq Financial Technology Index, and the Travillian Tech-Forward Bank Index. For more information on Axos Financial, Inc. please visit investors.axosfinancial.com.

Segment Reporting

The Company operates through two segments: Banking Business and Securities Business. In order to reconcile the two segments to the consolidated totals, the Company includes parent-only 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, as well as interest expense paid by the Banking Business segment to each of the wholly-owned subsidiaries of the Company and to the Company itself for their operating cash held on deposit with the Business Banking segment.

The following tables present the operating results of the segments and reconciliations:

Three Months Ended September 30, 2022

(Dollars in thousands)

Banking Business

Securities Business

Corporate/Eliminations

Axos Consolidated

Net interest income

$

179,730

$

4,275

$

(3,530

)

$

180,475

Provision for credit losses

8,750

8,750

Non-interest income

10,712

29,165

(12,669

)

27,208

Non-interest expense

100,796

24,515

(9,224

)

116,087

Income before taxes

$

80,896

$

8,925

$

(6,975

)

$

82,846

Three Months Ended September 30, 2021

(Dollars in thousands)

Banking Business

Securities Business

Corporate/Eliminations

Axos Consolidated

Net interest income

$

142,241

$

6,176

$

(1,775

)

$

146,642

Provision for credit losses

4,000

4,000

Non-interest income

14,828

13,106

(1,232

)

26,702

Non-interest expense

62,725

19,273

2,433

84,431

Income before taxes

$

90,344

$

9

$

(5,440

)

$

84,913

Use of Non-GAAP Financial Measures

In addition to the results presented in accordance with 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 costs (including amortization of intangible assets related to acquisitions) 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 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 compatible GAAP measure, to adjusted earnings and adjusted EPS (Non-GAAP) for the periods shown:

Three Months Ended

September 30,

(Dollars in thousands, except per share amounts)

2022

2021

Net income

$

58,407

$

60,210

Acquisition-related costs

2,734

2,846

Other costs

16,000

Income taxes

(5,526

)

(828

)

Adjusted earnings (Non-GAAP)

$

71,615

$

62,228

Adjusted EPS (Non-GAAP)

$

1.18

$

1.03

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 mortgage 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 compatible GAAP measure, to tangible book value per common share (non-GAAP) as of the dates indicated:

September 30,

(Dollars in thousands, except per share amounts)

2022

2021

Common stockholders’ equity

$

1,700,972

$

1,458,621

Less: mortgage servicing rights, carried at fair value

26,373

18,438

Less: goodwill and other intangible assets

160,429

164,944

Tangible common stockholders’ equity (Non-GAAP)

$

1,514,170

$

1,275,239

Common shares outstanding at end of period

59,998,673

59,494,633

Tangible book value per common share (Non-GAAP)

$

25.24

$

21.43

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’ 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 and expectations of the environment in which Axos operates. 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 uncertainties surrounding the severity, duration, and effects of the COVID-19 pandemic, Axos’ ability to successfully integrate acquisitions and realize the anticipated benefits of the transactions, changes in the interest rate environment, inflation, government regulation, general economic conditions, conditions in the real estate markets in which we operate, risks associated with credit quality, 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 could cause actual results to differ materially from those expressed or implied in any forward-looking statements. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. All forward-looking statements are qualified in their entirety by this cautionary statement, and Axos undertakes no obligation to revise or update any forward-looking statements to reflect events or circumstances after the date of this press release.

The following tables set forth certain selected financial data concerning the periods indicated:

AXOS FINANCIAL, INC. AND SUBSIDIARIES

SELECTED CONSOLIDATED FINANCIAL INFORMATION

(Unaudited – dollars in thousands)

September 30,
2022

June 30,
2022

September 30,
2021

Selected Balance Sheet Data:

Total assets

$

18,407,078

$

17,401,165

$

14,906,750

Loans—net of allowance for credit losses

15,211,573

14,091,061

11,879,021

Loans held for sale, carried at fair value

9,463

4,973

33,344

Loans held for sale, lower of cost or fair value

10,476

10,938

11,949

Allowance for credit losses - loans

155,472

148,617

136,778

Securities—trading

75

1,758

1,941

Securities—available-for-sale

257,634

262,518

135,996

Securities borrowed

87,622

338,980

457,282

Customer, broker-dealer and clearing receivables

410,842

417,417

427,169

Total deposits

15,176,631

13,946,422

11,747,442

Advances from the FHLB

112,500

117,500

157,500

Borrowings, subordinated notes and debentures

425,818

445,244

255,896

Securities loaned

206,889

474,400

539,505

Customer, broker-dealer and clearing payables

500,584

511,654

510,040

Total stockholders’ equity

1,700,972

1,642,973

1,458,621

Capital Ratios:

Equity to assets at end of period

9.24

%

9.44

%

9.78

%

Axos Financial, Inc.:

Tier 1 leverage (to adjusted average assets)

8.98

%

9.25

%

9.19

%

Common equity tier 1 capital (to risk-weighted assets)

9.97

%

9.86

%

10.79

%

Tier 1 capital (to risk-weighted assets)

9.97

%

9.86

%

10.79

%

Total capital (to risk-weighted assets)

12.90

%

12.73

%

13.10

%

Axos Bank:

Tier 1 leverage (to adjusted average assets)

10.30

%

10.65

%

10.14

%

Common equity tier 1 capital (to risk-weighted assets)

10.87

%

11.24

%

11.89

%

Tier 1 capital (to risk-weighted assets)

10.87

%

11.24

%

11.89

%

Total capital (to risk-weighted assets)

11.71

%

12.01

%

12.80

%

Axos Clearing LLC:

Net capital

$

49,183

$

38,915

$

39,663

Excess capital

$

42,324

$

32,665

$

31,435

Net capital as a percentage of aggregate debit items

14.34

%

12.45

%

9.64

%

Net capital in excess of 5% aggregate debit items

$

32,035

$

23,290

$

19,092

AXOS FINANCIAL, INC. AND SUBSIDIARIES

SELECTED CONSOLIDATED FINANCIAL INFORMATION

(Unaudited – dollars in thousands, except per share data)

At or for the Three Months Ended

September 30,

2022

2021

Selected Income Statement Data:

Interest and dividend income

$

223,786

$

158,310

Interest expense

43,311

11,668

Net interest income

180,475

146,642

Provision for credit losses

8,750

4,000

Net interest income after provision for credit losses

171,725

142,642

Non-interest income

27,208

26,702

Non-interest expense

116,087

84,431

Income before income tax expense

82,846

84,913

Income tax expense

24,439

24,703

Net income

$

58,407

$

60,210

Per Common Share Data:

Net income:

Basic

$

0.98

$

1.01

Diluted

$

0.97

$

0.99

Adjusted earnings per common share (Non-GAAP)1

$

1.18

$

1.03

Book value per common share

$

28.35

$

24.52

Tangible book value per common share (Non-GAAP)1

$

25.24

$

21.43

Weighted average number of common shares outstanding:

Basic

59,854,584

59,390,846

Diluted

60,486,394

60,644,288

Common shares outstanding at end of period

59,998,673

59,494,633

Common shares issued at end of period

69,151,152

68,370,617

Performance Ratios and Other Data:

Loan originations for investment

$

2,486,224

$

2,092,279

Loan originations for sale

$

70,073

$

209,967

Return on average assets

1.32

%

1.66

%

Return on average common stockholders’ equity

13.91

%

16.20

%

Interest rate spread2

3.66

%

4.04

%

Net interest margin3

4.26

%

4.22

%

Net interest margin3 – Banking Business Segment

4.50

%

4.48

%

Efficiency ratio4

55.90

%

48.71

%

Efficiency ratio4 – Banking Business Segment

52.93

%

39.93

%

Asset Quality Ratios:

Net annualized charge-offs to average loans5

0.05

%

0.01

%

Non-performing loans and leases to total loans

0.78

%

1.12

%

Non-performing assets to total assets

0.68

%

0.94

%

Allowance for credit losses - loans to total loans held for investment at end of period

1.01

%

1.14

%

Allowance for credit losses - loans to non-performing loans

129.04

%

101.97

%

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.

5

Net charge-offs do not include any amounts transferred to loans held for sale.

AVERAGE BALANCES, NET INTEREST INCOME, YIELDS EARNED AND RATES PAID

The following table presents information regarding (i) average balances; (ii) the total amount of interest income from interest-earning assets and the weighted average yields on such assets; (iii) the total amount of interest expense on interest-bearing liabilities and the weighted average rates paid on such liabilities; (iv) net interest income; (v) interest rate spread; and (vi) net interest margin:

For the Three Months Ended

September 30,

2022

2021

(Dollars in thousands)

Average

Balance1

Interest

Income/

Expense

Average Yields

Earned/Rates

Paid2

Average

Balance1

Interest

Income/

Expense

Average Yields

Earned/Rates

Paid2

Assets:

Loans3, 4

$

14,761,077

$

208,338

5.65

%

$

11,662,383

$

149,176

5.12

%

Interest-earning deposits in other financial institutions

1,235,712

7,347

2.38

%

1,163,143

591

0.20

%

Mortgage-backed and other investment securities4

257,119

3,298

5.13

%

156,360

1,421

3.64

%

Securities borrowed and margin lending

669,150

4,384

2.62

%

903,542

6,851

3.03

%

Stock of the regulatory agencies

28,281

419

5.93

%

20,694

271

5.24

%

Total interest-earning assets

16,951,339

223,786

5.28

%

13,906,122

158,310

4.55

%

Non-interest-earning assets

689,230

596,295

Total assets

$

17,640,569

$

14,502,417

Liabilities and Stockholders’ Equity:

Interest-bearing demand and savings

$

7,715,655

$

27,709

1.44

%

$

6,564,620

$

3,567

0.22

%

Time deposits

1,156,717

4,796

1.66

%

1,363,061

4,145

1.22

%

Securities loaned

534,538

943

0.71

%

660,040

251

0.15

%

Advances from the FHLB

880,348

5,163

2.35

%

295,402

1,016

1.38

%

Borrowings, subordinated notes and debentures

385,148

4,700

4.88

%

223,837

2,689

4.81

%

Total interest-bearing liabilities

10,672,406

43,311

1.62

%

9,106,960

11,668

0.51

%

Non-interest-bearing demand deposits

4,517,918

3,191,171

Other non-interest-bearing liabilities

770,189

717,725

Stockholders’ equity

1,680,056

1,486,561

Total liabilities and stockholders’ equity

$

17,640,569

$

14,502,417

Net interest income

$

180,475

$

146,642

Interest rate spread5

3.66

%

4.04

%

Net interest margin6

4.26

%

4.22

%

1

Average balances are obtained from daily data.

2

Annualized.

3

Loans include loans held for sale, loan premiums and unearned fees.

4

Interest income includes reductions for amortization of loan and investment securities premiums and earnings from accretion of discounts and loan fees. Loans include average balances of $25.9 million and $26.7 million of Community Reinvestment Act loans which are taxed at a reduced rate for the 2022 and 2021 three-month periods, respectively.

5

Interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average rate paid on interest-bearing liabilities.

6

Net interest margin represents annualized net interest income as a percentage of average interest-earning assets.

AVERAGE BALANCES, NET INTEREST INCOME, YIELDS EARNED AND RATES PAID

BANKING BUSINESS

The following table presents our Banking Business segment’s information regarding (i) average balances; (ii) the total amount of interest income from interest-earning assets and the weighted average yields on such assets; (iii) the total amount of interest expense on interest-bearing liabilities and the weighted average rates paid on such liabilities; (iv) net interest income; (v) interest rate spread; and (vi) net interest margin for the three months ended September 30, 2022 and 2021:

For the Three Months Ended

September 30,

2022

2021

(Dollars in thousands)

Average

Balance1

Interest

Income/

Expense

Average Yields

Earned/Rates

Paid2

Average

Balance1

Interest

Income/

Expense

Average Yields

Earned/Rates

Paid2

Assets:

Loans3, 4

$

14,735,034

$

208,010

5.65

%

$

11,622,074

$

148,843

5.12

%

Interest-earning deposits in other financial institutions

929,206

5,631

2.42

%

879,856

337

0.15

%

Mortgage-backed and other investment securities4

275,975

3,371

4.89

%

180,545

1,546

3.43

%

Stock of the regulatory agencies

28,281

418

5.91

%

17,824

270

6.06

%

Total interest-earning assets

15,968,496

217,430

5.45

%

12,700,299

150,996

4.76

%

Non-interest-earning assets

312,320

286,810

Total assets

$

16,280,816

$

12,987,109

Liabilities and Stockholders’ Equity:

Interest-bearing demand and savings

$

7,809,552

$

27,741

1.42

%

$

6,614,799

$

3,594

0.22

%

Time deposits

1,156,717

4,796

1.66

%

1,363,061

4,145

1.22

%

Advances from the FHLB

880,348

5,163

2.35

%

295,402

1,016

1.38

%

Borrowings, subordinated notes and debentures

22

%

43

%

Total interest-bearing liabilities

9,846,639

37,700

1.53

%

8,273,305

8,755

0.42

%

Non-interest-bearing demand deposits

4,583,593

3,238,709

Other non-interest-bearing liabilities

190,997

124,213

Stockholders’ equity

1,659,587

1,350,882

Total liabilities and stockholders’ equity

$

16,280,816

$

12,987,109

Net interest income

$

179,730

$

142,241

Interest rate spread5

3.92

%

4.34

%

Net interest margin6

4.50

%

4.48

%

1

Average balances are obtained from daily data.

2

Annualized.

3

Loans include loans held for sale, loan premiums and unearned fees.

4

Interest income includes reductions for amortization of loan and investment securities premiums and earnings from accretion of discounts and loan fees. Loans include average balances of $25.9 million and $26.7 million of Community Reinvestment Act loans which are taxed at a reduced rate for the 2022 and 2021 three-month periods, respectively.

5

Interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average rate paid on interest-bearing liabilities.

6

Net interest margin represents annualized net interest income as a percentage of average interest-earning assets.

View source version on businesswire.com: https://www.businesswire.com/news/home/20221027006010/en/

Contacts

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