Axos Financial, Inc. · NYSE:AX
Axos Financial — Q1 2025 Earnings Presentation
27 slides from Axos Financial's earnings presentation, Oct 31, 2024
Slide 1: Axos Financial, Inc. Investor Presentation
Axos Financial, Inc. Investor Presentation November 5, 2024 NYSE: AX
Slide 2: Safe Harbor
Safe Harbor This presentation contains forward-looking statements that involve risks and uncertainties, including without limitation statements relating to Axos Financial, Inc.’s (“Axos”) financial prospects and other projections of its performance and asset quality, Axos’ deposit balances and capit
Slide 3: Axos Financial's Three Divisions Provide the Foundation for Sustained Long-term Growth
Axos Financial’s Three Divisions Provide the Foundation for Sustained Long-term Growth Investment Thesis › Diverse mix of assets, deposits, and fee income reduces risk and provides multiple growth opportunities in varying environments › Asset-based lending at low loan-to-values Consumer has resulted
Slide 4: Axos is a Top Performer Versus Bank Peer Group
Axos is a Top Performer Versus Bank Peer Group Axos Bank Peer Group1 Percentile ROAA 1.73% 0.56% 93% Return on Equity 17.45% 5.57% 94% NIE/Avg Assets 1.97% 2.40% 27% Net Interest Income 4.46% 2.51% 95% Efficiency Ratio 42.90% 76.88% 6% The 94% on ROE means that the Bank outperformed 94% of all banks
Slide 5: Consolidated Fiscal First Quarter 2025 Highlights
Consolidated Fiscal First Quarter 2025 Highlights Compared with Fiscal First Quarter 2024 Asset Growth Deposit Growth $ Millions $ Millions 13% 14% Q1 2025 Net Income Diluted EPS $ Millions $ Diluted EPS 36% 40% Return on Equity = 19.12% Return on Assets = 1.92% 5
Slide 6: Diluted EPS and Book Value Per Share Have Been Consistently Strong
Diluted EPS and Book Value Per Share Have Been Consistently Strong Diluted EPS (FY) Book Value Per Share (FY) $ Per Share $ Per Share 18.2% CAGR 25.3% CAGR 6
Slide 7: Expanding Net Interest Margin Through a Variety of Interest Rate Cycles
Expanding Net Interest Margin Through a Variety of Interest Rate Cycles1 4.35% Note 1: The Company partnered with H&R Block Bank (HRB) to provide HRB branded financial products. The partnership was terminated December 7 8, 2020. NIM excludes impact of HRB.
Slide 8: Interest Rate Sensitivity of Loans & Deposits
Interest Rate Sensitivity of Loans & Deposits As of September 30, 2024 Loans Deposits • Of the fixed and hybrid rate loan balances in our portfolio at September 30, 2024, Non-Time Deposits by Interest 64% will reprice within 3 years and Rate 91% will reprice within 5 years. (Dollars in Thousands) In
Slide 9: Loan Growth by Category
Loan Growth by Category $ Millions Q1 FY25 Q4 FY24 Inc (Dec) Single Family Jumbo Mortgage $ 3,807 $ 3,922 $ (115) Mortgage & Warehouse SF Warehouse Lending 345 257 88 Multifamily & Multifamily 2,363 2,541 (178) Commercial Mortgage Small Balance Commercial 1,284 1,321 (37) CRE Specialty 5,378 5,189 1
Slide 10: Holistic Credit Risk Management
Holistic Credit Risk Management What We Do Utilize a holistic credit-risk management framework to manage and monitor credit quality at each stage of the loan life cycle, and leverage specialized Credit Tools to optimize monitoring and reporting capabilities Credit Monitoring & Oversight Loan Life Po
Slide 11: Annualized Charge-offs to Average Loans Outstanding
Annualized Charge-offs1 to Average Loans Outstanding Strong Credit Performance Exhibited through Low Charge-off Ratios 11 Note 1: The Company partnered with H&R Block Bank (HRB) to provide HRB branded financial products. The partnership was terminated December 8, 2020.
Slide 12: Change in Allowance for Credit Losses (ACL) & Unfunded Loan Commitments Reserve (UCL)
Change in Allowance for Credit Losses (ACL) & Unfunded Loan Commitments Reserve (UCL) ($ in millions) (9.2) 11.5 ACL + UCL ACL + UCL 12
Slide 13: Allowance for Credit Losses (ACL) by Loan Category
Allowance for Credit Losses (ACL) by Loan Category as of September 30, 2024 $ Millions Loan Balance ACL $ ACL % Single Family Mortgage & Warehouse $ 4,152 17 0.4 % Multifamily & Commercial Mortgage 3,647 66 1.8 % Loans Commercial Real Estate 6,256 95 1.5 % Commercial & Industrial Non-RE 5,355 77 1.4
Slide 14: Commercial Real Estate Specialty Detail: LTV Distribution
Commercial Real Estate Specialty1 Detail as of September 30, 2024 Balance Non-Accrual Loans Loan Type (mm) Weighted Avg. LTV (mm) Multifamily $ 1,912 40 % $ 11 SFR 978 39 15 Hotel 968 41 — Industrial 571 51 — Other 451 33 15 Office 301 31 — Retail 197 46 — Total $ 5,378 40 % $ 41 LTV Distribution 14
Slide 15: Commercial Real Estate Specialty Detail
Commercial Real Estate Specialty1 Detail as of September 30, 2024 77% of total Commercial Real Estate Specialty balance at September 30, 2024 is indirect note structures where Axos has first payment priority; these loans carry a weighted-average LTV of 38%. Loan Type Balance (mm) Weighted Avg. LTV C
Slide 16: Diversified Deposit Gathering
Diversified Deposit Gathering Approximately 90% of deposits are FDIC-insured or collateralized › Serves approximately 40% of U.S. Chapter 7 › Full service digital banking, wealth bankruptcy trustees in exclusive relationship management, and securities trading › Software allows servicing of SEC recei
Slide 17: Deposit Growth in Checking, Business, and Savings Was Achieved While Transforming the Mix of Deposits
Deposit Growth in Checking, Business, and Savings Was Achieved While Transforming the Mix of Deposits June 30, 2013 September 30, 2024 Total Deposits = $2.1 billion Total Deposits = $20.0 billion Checking and Time deposits other demand deposits Checking and other demand Time deposits deposits Saving
Slide 18: Customer Base and Deposit Volume is Well Distributed Throughout the United States
Customer Base and Deposit Volume is Well Distributed Throughout the United States Axos Deposits Have National Reach With Customers in Every State 18
Slide 19: Non-Interest Income Growth and Diversification
Non-Interest Income Growth and Diversification Year Ended Three Months Ended June 30, 2019 September 30, 2024 Total Non-Interest Income = Total Non-Interest Income = $82.9 million $114.4 million1 Securities Segment Fee Income2 (6/2019 – 9/2024) = 548% Note 1: Represents annualized quarterly Septembe
Slide 20: Axos Clearing and Custody Highlights
Axos Clearing and Custody Highlights Three Months Ended September 30, 2024 › Leadership team Custody $ 7,944,913 with more than 100 years combined Clearing Fees & Execution 5,207,425 industry experience. Cash Sorting 16,292,368 › Proprietary front- Margin Lending 4,042,814 and back-end technologies
Slide 21: Axos Advisor Services (AAS) At A Glance
Axos Advisor Services (AAS) At A Glance Liberty Provides a Comprehensive Turnkey Platform Serving 206 RIAs1,3 ($1M+ AUC) ~$28B Assets Under Custody2 Automatic Reconciliation TAMPs Traditional Small RIAs RIAs 58% of Total 39% of Total AUC3 3% of Total AUC3 AUC3 Turnkey Asset Gathers and manages Manag
Slide 22: Secular Industry Trends Provide Opportunities for Axos
Secular Industry Trends Provide Opportunities for Axos › RIAs need to reduce costs and streamline back-office Fee Compression for ops Active and Passive › Automation frees up time/resources for client Investment Managers interactions › Axos to provide bundled securities clearing, Advisors are Leavin
Slide 23: Axos Clearing Long-Term Revenue and Expense Synergies
Axos Clearing 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-
Slide 24: Axos' Business Model is Differentiated From Other Banks
Axos’ Business Model is Differentiated From Other Banks Customer Sales Servicing Distribution Acquisition › Digital Marketing › Automated › Self-service › Balance sheet fulfillment › Affinity and › Digital journey › Whole loan sales Distribution › Inbound call center options › Direct banker (call Pa
Slide 25: Key Goals of Universal Digital Bank
Key Goals of Universal Digital Bank › Increase chances of offering right product at the right time and place Personalization › Personalization is the right antidote for too much choice, too much content, and not enough time › Automation tools assist customer support and sale of banking products such
Slide 26: Evolving Capabilities of the UDB Platform
Evolving Capabilities of the UDB Platform UDB offers a growing set of products, capabilities and integrations UDB 1.0 UDB 2.0 White Label UDB Banking: Axos deposit products Products + Features Borrowing: Axos loan products Investing: Managed Portfolios, Self Directed Trading Planning: Account Aggreg
Slide 27: Contact Information
Contact Information Greg Garrabrants, President and CEO Derrick Walsh, EVP and CFO investors@axosfinancial.com www.axosfinancial.com Johnny Lai, SVP Corporate Development and Investor Relations Phone: 858.649.2218 Mobile: 858.245.1442 jlai@axosfinancial.com 27