Axos Financial, Inc. · NYSE:AX
Axos Financial — Q3 2021 Earnings Presentation
16 slides from Axos Financial's earnings presentation, Apr 29, 2021
Slide 1: Axos Q3 2021 Earnings Supplement
Axos Q3 2021 Earnings Supplement April 29, 2021 NYSE: AX
Slide 2: Safe Harbor
Safe Harbor This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 (the “Reform Act”). The words “believe,” “expect,” “anticipate,” “estimate,” “project,” or the negation thereof or similar expressions constitute forward-looki
Slide 3: Net Loan Growth by Category for Third Quarter Ended March 31, 2021
Net Loan Growth by Category for Third Quarter Ended March 31, 2021 $ Millions Q3 FY21 Q2 FY21 Inc (Dec) Jumbo Mortgage $3,931 $4,068 ($137) Single Family Mortgage & Warehouse SF Warehouse Lending 968 1,185 ($217) Multifamily & Multifamily 1,963 1,930 33 SB Commercial Mortgage Small Balance 461 433 2
Slide 4: Change in Allowance for Credit Losses (ACL) & Unfunded Loan Commitments Liability (UCL)
Change in Allowance for Credit Losses (ACL) & Unfunded Loan Commitments Liability (UCL) ($ in millions) $M 150 5.7 5.7 140 (1.4) 0.4 2.7 130 120 138.1 136.4 110 100 Gross Charge- Gross Provision for December 31, Credit March 31, 2021 2020 1 2offs 3 Recoveries 4 Losses 6 ACL + UCL ACL + UCL 3
Slide 5: Allowance for Credit Losses (ACL) by Loan and Lease Category at March 31, 2021
Allowance for Credit Losses (ACL) by Loan and Lease Category at March 31, 2021 $ Millions Loan Balance ACL $ ACL % Single Family Mortgage and Warehouse $4,899.2 $29.9 0.61% Multifamily & SB Commercial Mortgage 2,424.2 13.4 0.55% Commercial Real Estate 3,042.9 56.3 1.85% Loans & Leases Commercial & I
Slide 6: Credit Quality: No Loans in Forbearance and Decreasing NPAs
Credit Quality No Loans in Forbearance and Decreasing NPAs Loans in Forbearance or 12/31/2020 Loans O/S Deferral % NPAs % Single Family-Mortgage & Warehouse $5,252.8 $0.0 0.00% $117.2 2.23% Multifamily and Commercial Mortgage $2,363.0 $0.0 0.00% $32.1 1.36% Commercial Real Estate $2,720.9 $0.0 0.00%
Slide 7: E*TRADE Advisor Services Acquisition
E*TRADE Advisor Services Acquisition 6
Slide 8: E*TRADE Advisor Services Acquisition
E*TRADE Advisor Services Acquisition Axos Clearing will acquire certain assets and deposits related to E*TRADE Advisor Services (EAS): 1) $55 million cash purchase price paid at closing from Axos Financial 2) Includes $23+ billion of custodial assets & ~$1.2 billion low-cost deposits 3) Accelerates
Slide 9: EAS Expands Axos' Total Addressable Market
EAS Expands Axos’ Total Addressable Market Total Axos - Standalone Addressable $4.4T AUM Market (TAM) 22,500 RIAs • Axos Advisor Services is a new brand. It will take significant marketing and business development Serviceable effort to create brand awareness among TAM RIA Available Market ~$808B pro
Slide 10: Adds a Scalable Technology Platform
Adds a Scalable Technology Platform E*TRADE Advisor Services Platform Overview Liberty Integrated Platform Liberty Platform Web-based Highly scalable and secure Growth Portfolio Managed Operational Reporting + Mobile capabilities Tools Management Investment Tools Analytics Asset-based pricin
Slide 11: Enhances Axos' Securities Strategic Vision
Enhances Axos’ Securities Strategic Vision Leveraging Bank’s existing digital platforms provides a truly differentiated client experience for Independent RIAs. Onboard Clients Rich Banking and “Single-Pane” Faster Securities features Independent RIAs Universal Universal Introducing Clients Enrollmen
Slide 12: EAS Revenue and Expense Drivers
EAS Revenue and Expense Drivers Diversified Mix of Asset- and Transaction-based Revenues 2020 Net Revenues ($MM)* 2020 Operating Expenses ($MM) $5.8 $7.2 $4.0 $2.7 $28.7 $4.3 $19.3 $31.0 Net Interest Income Comp/Benefits Custody Fees Marketing Mutual Fund Fees Occupancy Other Fees Other Expenses *20
Slide 13: Long-Term Revenue and Expense Synergies
Long-Term Revenue and Expense Synergies Revenue Synergies* Cost Synergies* Axos Securities: Axos Securities: • Margin Loans • Self-Clearing • Securities Lending Axos Custody • Regulatory/Compliance • Fixed Income Trading • Client Acquisition Costs • Order Flow • Customer Service • White-label Robo A
Slide 14: Comparable Transactions
Comparable Transactions $55M Purchase Price for EAS is ~0.2% of Assets Under Custody Goldman Sachs Acquires Folio E*TRADE Financial Acquires TCA Financial, Inc. Founded in 1972 Founded in 2000 Acquisition Date – April 9, 2018 Acquisition Date – September 18, 2020 Fed Funds Rate – 175 basis points Fe
Slide 15: Transaction Milestones
Transaction Milestones •Asset Purchase from E*TRADE Savings Bank •EAS business will be broker-dealer compliant at closing Regulatory •FINRA approval required prior to closing •RIA custody business will be headquartered in Centennial, CO •Axos and Seller will sign Transition Services Agreement for su
Slide 16: Contact Information
Contact Information Greg Garrabrants, President and CEO Andy Micheletti, EVP/CFO investors@axosfinancial.com www.axosfinancial.com Johnny Lai, VP Corporate Development and Investor Relations Phone: 858.649.2218 Mobile: 858.245.1442 jlai@axosfinancial.com 15