AX · Axos Financial, Inc.

Axos Financial reported strong fiscal third quarter results for the period ended March 31, 2026. Net income rose 18.5% year-over-year to $124.7 million, driven by a 11.2% increase in net interest income to $306.3 million, reflecting robust loan growth. Non-interest income surged 157.7% to $86.0 million, largely due to a $22.0 million favorable legal settlement and contributions from the Verdant Commercial Capital acquisition. The provision for credit losses increased to $41.0 million from $14.5 million in the prior year, primarily due to loan growth, higher specific reserves on individually assessed loans, and changes to quantitative inputs. Management highlighted strong loan growth and expense discipline, with non-interest expense rising modestly linked quarter. The company deliberately reduced higher-cost deposits in anticipation of the Jenius Bank deposit acquisition. Credit quality remained solid, with non-performing assets to total assets improving to 0.62% from 0.71% at June 30, 2025. Total deposits grew 11.2% year-over-year to $22.4 billion, and book value per share increased 17.7% to $53.89. The company's capital ratios remained strong, with a Common Equity Tier 1 ratio of 11.65% at the bank level.