U.S. Markets closed

Axos Financial, Inc. Reports Record Second Quarter 2020 Earnings

Net Interest Margin Increased 10 Basis Points Linked Quarter to 3.87%

Axos Financial, Inc. (NYSE: AX) ("Axos"), parent company of Axos Bank (the "Bank"), today announced financial results for the second fiscal quarter ended December 31, 2019. Net income was $41.3 million, an increase of 6.3% from $38.8 million for the quarter ended December 31, 2018. Earnings attributable to Axos’ common stockholders were $41.2 million or $0.67 per diluted share for the second quarter of fiscal 2020, an increase of 6.3% from $38.8 million or $0.62 per diluted share for the second quarter ended December 31, 2018.

Adjusted earnings and adjusted earnings per diluted common share ("adjusted EPS"), non-GAAP measures, which excludes non-cash amortization expenses and non-recurring costs related to mergers and acquisitions, and other non-recurring costs increased 8.4% to $42.9 million and increased 9.5% to $0.69, respectively, for the quarter ended December 31, 2019 compared to $39.6 million and $0.63, respectively, for the quarter ended December 31, 2018.

Second Quarter Fiscal 2020 Financial Summary:

 

Three Months Ended December 31

 

 

(Dollars in thousands, except per share data)

Q2 Fiscal 2020

 

Q2 Fiscal 2019

 

% Change

Net interest income

$

108,420

 

 

$

92,720

 

 

16.9%

Non-interest income

$

21,207

 

 

$

16,892

 

 

25.5%

Net income

$

41,295

 

 

$

38,835

 

 

6.3%

Adjusted earnings (Non-GAAP)1

$

42,949

 

 

$

39,604

 

 

8.4%

Net income attributable to common stockholders

$

41,217

 

 

$

38,757

 

 

6.3%

Diluted EPS

$

0.67

 

 

$

0.62

 

 

8.1%

Adjusted EPS (Non-GAAP)1

$

0.69

 

 

$

0.63

 

 

9.5%

1 See "Use of Non-GAAP Financial Measures"

 

 

 

 

 

For the six months ended December 31, 2019, net income was $82.1 million, an increase of 8.5% over net income of $75.7 million for the six months ended December 31, 2018. Earnings attributable to Axos’ common stockholders were $81.9 million or $1.32 per diluted share for the six months ended December 31, 2019, an increase of 10.0% from $75.5 million or $1.20 per diluted share for the six months ended December 31, 2018. Higher earnings for the fiscal second quarter and for the six months ended December 31, 2019 were primarily the result of growth in the Bank’s loan and lease portfolio.

"We achieved net income of $41.3 million this quarter as a result of strong loan growth and stable net interest margins," stated Greg Garrabrants, President and Chief Executive Officer of Axos. "Ending loan balances increased 14.6% annualized from September 30, 2019, led by strong growth in commercial specialty real estate, commercial lender finance, mortgage warehouse and equipment leasing. Net interest margin increased 10 basis points linked quarter to 3.87% as a result of steady loan yields and a decline in our funding costs. The diversity of our lending, deposit and fee income businesses position us well in a variety of competitive and interest rate environments."

"We continue to make investments across each of our consumer, commercial and securities businesses while maintaining a relatively stable efficiency ratio," stated Andy Micheletti, Executive Vice President and Chief Financial Officer of Axos. "Our banking business efficiency ratio was 43.81% this quarter, relatively flat compared to 43.93% in the quarter ended September 30, 2019."

Other Highlights:

  • Total assets reached $12.3 billion, up $2.5 billion or 25.1% compared to December 31, 2018
  • Loan and lease portfolio grew by $1.1 billion or 12.5% compared to December 31, 2018
  • Loan and lease originations for the three months ended December 31, 2019 were approximately $2.1 billion, up 17.2% compared to the quarter ended September 30, 2019
  • Total deposits increased by $1.8 billion, up 21.3% from December 31, 2018
  • Net interest margin was 3.87% compared to 3.77% in the three months ended September 30, 2019; net interest margin for the banking business segment was 3.94% compared to 3.83% in the September 30, 2019 period
  • Efficiency ratio for the banking business segment was 43.81% compared to 43.93% in the September 30, 2019 period
  • Return on average common stockholders’ equity was 14.35% for the three months ended December 31, 2019
  • Book value increased to $18.84 per share, up 16.6% from December 31, 2018

Second Quarter Fiscal 2020 Income Statement Summary

During the quarter ended December 31, 2019, Axos earned $41.2 million or $0.67 per diluted share compared to $38.8 million, or $0.62 per diluted share for the quarter ended December 31, 2018. Net interest income increased $15.7 million or 16.9% for the quarter ended December 31, 2019 compared to December 31, 2018, primarily due to $1.6 billion growth in average-earning assets at the Bank and the acquisition of the Securities Business.

The loan and lease loss provision was $4.5 million for the quarter ended December 31, 2019 compared to $5.0 million for the quarter ended December 31, 2018. The decrease in the provision is primarily the result of changes in the mix of the loan and lease portfolio. A charge-off of $4.1 million this quarter had no impact on loss provisions this quarter. Discussed last quarter, the $4.1 million was receivables factoring for one bank customer which was classified doubtful and fully reserved in the quarter ended September 30, 2019.

For the second quarter ended December 31, 2019, non-interest income was $21.2 million compared to $16.9 million for the three months ended December 31, 2018. The $4.3 million increase year over year was primarily the result of the addition of broker-dealer fee income of $5.6 million due to our acquisitions and a $1.4 million increase in mortgage banking, partially offset by a decrease of $2.2 million in banking and service fees, primarily due to lower fee income from third-party banks of Axos Fiduciary Services as more deposits have been transferred to Axos Bank.

Non-interest expense or operating costs increased $16.0 million to $67.0 million for the quarter ended December 31, 2019 from $50.9 million for the three months ended December 31, 2018. The increase was mainly a result of an increase in salaries and related expense of $4.8 million due to staffing additions from the acquisition of the Securities Business and to support growth in the Bank’s operations. Other operating expense increases include an increase of $2.5 million in data processing due to additions from the acquisitions of the Securities Business, software initiatives and enhancements to the Bank’s core processing system, a $2.5 million increase in depreciation and amortization primarily due to amortization of intangibles, a $1.9 million increase in broker-dealer clearing charges, and a $2.0 million increase in other general and administrative expenses.

Balance Sheet Summary

Axos’ total assets increased $1,049.1 million, or 9.3%, to $12,269.3 million, as of December 31, 2019, up from $11,220.2 million at June 30, 2019. The increase in total assets was primarily due to an increase in loan portfolio growth of $759.3 million on a net basis, primarily from portfolio loan originations of $2,896.9 million less principal repayments and other adjustments of $2,137.6 million. Customer, broker-dealer, and clearing receivables increased by $41.2 million. Investment securities decreased $17.7 million primarily due to repayments of available-for-sale securities. Total liabilities increased by $961.3 million, or 9.5%, to $11,108.5 million at December 31, 2019, up from $10,147.2 million at June 30, 2019. The increase in total liabilities primarily resulted from an increase in deposits of $1,131.2 million, partially offset by a $201.0 million decrease in advances from the FHLB. Stockholders’ equity increased by $87.7 million, or 8.2%, to $1,160.8 million at December 31, 2019 from $1,073.1 million at June 30, 2019. The increase was primarily the result of $82.1 million in net income, $6.0 million of vesting and issuance of RSUs and stock-based compensation expense, partially offset by $0.2 million of dividends declared on preferred stock.

The Bank’s Tier 1 core capital to adjusted average assets ratio was 9.16% at December 31, 2019.

Conference Call

A conference call and webcast will be held on Wednesday, January 29, 2020 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 may be accessed at Axos’ website, http://www.axosfinancial.com. For those unable to listen to the live broadcast, a replay will be available until February 29, 2020, at Axos’ website and telephonically by dialing toll-free number 877-660-6853, passcode 13697933.

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 (the "Axos Nevada Holding" and collectively, the "Company"). Axos Nevada Holding wholly owns its subsidiary Axos Securities, LLC, which wholly owns subsidiaries AxosClearing, LLC, a clearing broker dealer, Axos Invest, Inc., a registered investment advisor, and Axos Invest, LLC, an introducing broker dealer. With approximately $12.3 billion in assets, Axos Bank provides consumer and business banking products through its low-cost distribution channels and affinity partners. Axos Clearing LLC 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 under the symbol "AX" and is a component of the Russell 2000® Index and the S&P SmallCap 600® Index. For more information on Axos Bank, please visit axosbank.com.

Segment Reporting

The Company determines reportable segments based on what separate financial information is available and what segment results are evaluated regularly by the Chief Executive Officer in deciding how to allocate resources and in assessing performance. 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.

The following tables present the operating results of the segments:

 

Three Months Ended December 31, 2019

(Dollars in thousands)

Banking Business

 

Securities Business

 

Corporate/Eliminations

 

Axos Consolidated

Net interest income

$

105,340

 

 

$

4,037

 

 

$

(957

)

 

$

108,420

 

Provision for loan losses

4,500

 

 

 

 

 

 

4,500

 

Non-interest income

16,225

 

 

6,284

 

 

(1,302

)

 

21,207

 

Non-interest expense

53,253

 

 

10,455

 

 

3,257

 

 

66,965

 

Income before taxes

$

63,812

 

 

$

(134

)

 

$

(5,516

)

 

$

58,162

 

 

Three Months Ended December 31, 2018

(Dollars in thousands)

Banking Business

 

Securities Business

 

Corporate/Eliminations

 

Axos Consolidated

Net interest income

$

93,481

 

 

$

 

 

$

(761

)

 

$

92,720

 

Provision for loan losses

4,950

 

 

 

 

 

 

4,950

 

Non-interest income

16,892

 

 

 

 

 

 

16,892

 

Non-interest expense

45,188

 

 

 

 

5,745

 

 

50,933

 

Income before taxes

$

60,235

 

 

$

 

 

$

(6,506

)

 

$

53,729

 

 

Six Months Ended December 31, 2019

(Dollars in thousands)

Banking Business

 

Securities Business

 

Corporate/Eliminations

 

Axos Consolidated

Net interest income

$

204,812

 

 

$

9,183

 

 

$

(2,272

)

 

$

211,723

 

Provision for loan losses

7,200

 

 

 

 

 

 

7,200

 

Non-interest income

32,015

 

 

12,685

 

 

(1,957

)

 

42,743

 

Non-interest expense

103,886

 

 

21,519

 

 

7,027

 

 

132,432

 

Income before taxes

$

125,741

 

 

$

349

 

 

$

(11,256

)

 

$

114,834

 

 

Six Months Ended December 31, 2018

(Dollars in thousands)

Banking Business

 

Securities Business

 

Corporate/Eliminations

 

Axos Consolidated

Net interest income

$

180,492

 

 

$

 

 

$

(1,493

)

 

$

178,999

 

Provision for loan losses

5,550

 

 

 

 

 

 

5,550

 

Non-interest income

33,435

 

 

 

 

 

 

33,435

 

Non-interest expense

91,230

 

 

 

 

12,625

 

 

103,855

 

Income before taxes

$

117,147

 

 

$

 

 

$

(14,118

)

 

$

103,029

 

Use of Non-GAAP Financial Measures

In addition to the results presented in accordance with GAAP, this report includes non-GAAP financial measures such as adjusted earnings, adjusted earnings per common share, and tangible book value per common share. Non-GAAP financial measures have inherent limitations, are not required to be uniformly applied and are not audited. Readers should be aware of these limitations and should be cautious as to their use of 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 net income without the after-tax impact of non-recurring acquisition-related costs (including amortization of intangible assets related to acquisitions), and excess FDIC expense, and other costs (unusual or non-recurring charges), as "adjusted earnings", a non-GAAP financial measure. Excess FDIC expense is defined as the higher insurance costs associated with increased levels of short-term brokered deposits in anticipation of the acquisition of deposits from Nationwide Bank. 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 Bank’s operating performance. Excluding the non-recurring acquisition related costs, excessive FDIC expense, and other costs provides investors with an understanding of Axos’ business without these non-recurring costs.

Below is a reconciliation of net income to adjusted earnings and adjusted EPS (Non-GAAP) for the periods shown:

 

Three Months Ended

 

Six Months Ended

 

December 31,

 

December 31,

(Dollars in thousands, except per share amounts)

2019

 

2018

 

2019

 

2018

Net income

$

41,295

 

 

$

38,835

 

 

$

82,081

 

 

$

75,676

 

Acquisition-related costs

2,330

 

 

1,064

 

 

3,977

 

 

2,133

 

Excess FDIC expense

 

 

 

 

 

 

1,111

 

Income taxes

(676

)

 

(295

)

 

(1,134

)

 

(861

)

Adjusted earnings (Non-GAAP)

$

42,949

 

 

$

39,604

 

 

$

84,924

 

 

$

78,059

 

Adjusted EPS (Non-GAAP)

$

0.69

 

 

$

0.63

 

 

$

1.37

 

 

$

1.24

 

We define book value adjusted for goodwill and other intangible assets as tangible book value ("tangible book value"), a non-GAAP financial measure. 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 to tangible book value (Non-GAAP) as of the dates indicated:

 

December 31,

(Dollars in thousands, except per share amounts)

2019

 

2018

Total stockholders’ equity

$

1,160,752

 

 

$

994,401

 

Less: preferred stock

5,063

 

 

5,063

 

Common stockholders’ equity

1,155,689

 

 

989,338

 

Less: mortgage servicing rights, carried at fair value

11,262

 

 

11,215

 

Less: goodwill and other intangible assets

130,534

 

 

79,829

 

Tangible common stockholders’ equity (Non-GAAP)

$

1,013,893

 

 

$

898,294

 

Common shares outstanding at end of period

 

61,338,386

 

 

 

61,207,743

 

Tangible book value per common share (Non-GAAP)

$

16.53

 

 

$

14.68

 

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 successfully integrate its recent acquisitions and realize the anticipated benefits of the transactions, Axos’ ability to continue to diversify its lending and deposit franchises, the outcome and effects of pending class action litigation filed against the Company, and the anticipated timing and financial performance of other offerings, initiatives, and acquisitions. 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 changes in interest rates, inflation, government regulation, general economic conditions, conditions in the real estate markets in which we operate 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)

 

 

December 31,
2019

 

June 30,
2019

 

December 31,
2018

Selected Balance Sheet Data:

 

 

 

 

 

Total assets

$

12,269,288

 

 

$

11,220,238

 

 

$

9,810,096

 

Loans and leases—net of allowance for loan and lease losses

10,141,397

 

 

9,382,124

 

 

9,017,550

 

Loans held for sale, carried at fair value

36,092

 

 

33,260

 

 

16,135

 

Loans held for sale, lower of cost or fair value

3,430

 

 

4,800

 

 

2,883

 

Allowance for loan and lease losses

59,514

 

 

57,085

 

 

53,706

 

Securities—trading

1,740

 

 

 

 

 

Securities—available-for-sale

208,026

 

 

227,513

 

 

216,785

 

Securities borrowed

168,114

 

 

144,706

 

 

 

Customer, broker-dealer and clearing receivables

244,379

 

 

203,192

 

 

 

Total deposits

10,114,340

 

 

8,983,173

 

 

8,340,520

 

Advances from the FHLB

257,500

 

 

458,500

 

 

342,500

 

Borrowings, subordinated notes and debentures

62,233

 

 

168,929

 

 

54,625

 

Securities loaned

206,199

 

 

198,356

 

 

 

Customer, broker-dealer and clearing payables

305,669

 

 

238,604

 

 

 

Total stockholders’ equity

1,160,752

 

 

1,073,050

 

 

994,401

 

 

 

 

 

 

 

Capital Ratios:

 

 

 

 

 

Equity to assets at end of period

9.46

%

 

9.56

%

 

10.14

%

Axos Financial, Inc.:

 

 

 

 

 

Tier 1 leverage (core) capital to adjusted average assets

8.88

%

 

8.75

%

 

9.41

%

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

11.29

%

 

11.43

%

 

12.50

%

Tier 1 capital (to risk-weighted assets)

11.35

%

 

11.49

%

 

12.57

%

Total capital (to risk-weighted assets)

12.65

%

 

12.91

%

 

14.01

%

Axos Bank:

 

 

 

 

 

Tier 1 leverage (core) capital to adjusted average assets

9.16

%

 

9.21

%

 

9.03

%

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

11.55

%

 

12.14

%

 

12.06

%

Tier 1 capital (to risk-weighted assets)

11.55

%

 

12.14

%

 

12.06

%

Total capital (to risk-weighted assets)

12.25

%

 

12.89

%

 

12.80

%

Axos Clearing, LLC:

 

 

 

 

 

Net capital

$

31,917

 

 

$

21,669

 

 

N/A

Excess capital

$

27,056

 

 

$

17,858

 

 

N/A

Net capital as a percentage of aggregate debit items

13.13

%

 

11.37

%

 

N/A

Net capital in excess of 5% aggregate debit items

$

19,765

 

 

$

12,142

 

 

N/A

AXOS FINANCIAL, INC. AND SUBSIDIARIES

SELECTED CONSOLIDATED FINANCIAL INFORMATION

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

 

 

At or for the Three Months Ended

 

At or for the Six Months Ended

 

December 31,

 

December 31,

 

2019

 

2018

 

2019

 

2018

Selected Income Statement Data:

 

 

 

 

 

 

 

Interest and dividend income

$

147,288

 

 

$

131,239

 

 

$

293,633

 

 

$

254,036

 

Interest expense

38,868

 

 

38,519

 

 

81,910

 

 

75,037

 

Net interest income

108,420

 

 

92,720

 

 

211,723

 

 

178,999

 

Provision for loan and lease losses

4,500

 

 

4,950

 

 

7,200

 

 

5,550

 

Net interest income after provision for loan and lease losses

103,920

 

 

87,770

 

 

204,523

 

 

173,449

 

Non-interest income

21,207

 

 

16,892

 

 

42,743

 

 

33,435

 

Non-interest expense

66,965

 

 

50,933

 

 

132,432

 

 

103,855

 

Income before income tax expense

58,162

 

 

53,729

 

 

114,834

 

 

103,029

 

Income tax expense

16,867

 

 

14,894

 

 

32,753

 

 

27,353

 

Net income

$

41,295

 

 

$

38,835

 

 

$

82,081

 

 

$

75,676

 

Net income attributable to common stock

$

41,217

 

 

$

38,757

 

 

$

81,926

 

 

$

75,521

 

 

 

 

 

 

 

 

 

Per Common Share Data:

 

 

 

 

 

 

 

Net income:

 

 

 

 

 

 

 

Basic

$

0.67

 

 

$

0.62

 

 

$

1.34

 

 

$

1.21

 

Diluted

$

0.67

 

 

$

0.62

 

 

$

1.32

 

 

$

1.20

 

Adjusted earnings (Non-GAAP)

$

0.69

 

 

$

0.63

 

 

$

1.37

 

 

$

1.24

 

Book value

$

18.84

 

 

$

16.16

 

 

$

18.84

 

 

$

16.16

 

Tangible book value (Non-GAAP)

$

16.53

 

 

$

14.68

 

 

$

16.53

 

 

$

14.68

 

 

 

 

 

 

 

 

 

Weighted average number of common shares outstanding:

 

 

 

 

 

 

 

Basic

61,315,590

 

 

62,336,779

 

 

61,281,127

 

 

62,566,188

 

Diluted

61,938,988

 

 

62,674,876

 

 

61,900,633

 

 

63,046,933

 

Common shares outstanding at end of period

61,338,386

 

 

61,207,743

 

 

61,338,386

 

 

61,207,743

 

Common shares issued at end of period

66,915,478

 

 

66,169,401

 

 

66,915,478

 

 

66,169,401

 

 

 

 

 

 

 

 

 

Performance Ratios and Other Data:

 

 

 

 

 

 

 

Loan and lease originations for investment

$

1,435,152

 

 

$

1,855,336

 

 

$

2,896,918

 

 

$

3,205,515

 

Loan originations for sale

$

666,192

 

 

$

610,165

 

 

$

994,004

 

 

$

913,132

 

Return on average assets

1.42

%

 

1.59

%

 

1.43

%

 

1.58

%

Return on average common stockholders’ equity

14.35

%

 

15.29

%

 

14.57

%

 

15.14

%

Interest rate spread1

3.37

%

 

3.48

%

 

3.35

%

 

3.44

%

Net interest margin2

3.87

%

 

3.87

%

 

3.81

%

 

3.82

%

Net interest margin2 – Banking Business Segment only

3.94

%

 

3.90

%

 

3.89

%

 

3.85

%

Efficiency ratio3

51.66

%

 

46.47

%

 

52.04

%

 

48.89

%

Efficiency ratio3 – Banking Business Segment only

43.81

%

 

40.94

%

 

43.87

%

 

42.65

%

 

 

 

 

 

 

 

 

Asset Quality Ratios:

 

 

 

 

 

 

 

Net annualized charge-offs to average loans and leases

0.17

%

 

0.06

%

 

0.10

%

 

0.02

%

Non-performing loans and leases to total loans and leases

0.52

%

 

0.35

%

 

0.52

%

 

0.35

%

Non-performing assets to total assets

0.49

%

 

0.40

%

 

0.49

%

 

0.40

%

Allowance for loan and lease losses to total loans and leases held for investment at end of period

0.58

%

 

0.59

%

 

0.58

%

 

0.59

%

Allowance for loan and lease losses to non-performing loans and leases

112.85

%

 

124.88

%

 

112.85

%

 

124.88

%

1.

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.

2.

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

3.

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/20200129005758/en/

Contacts

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