Axos Financial, Inc. Reports Fiscal Year 2025 Results
Axos Achieves Net Loan Growth of $856 million in the June Quarter
LAS VEGAS, NV – (BUSINESS WIRE) – July 30, 2025 – Axos Financial, Inc. (NYSE: AX) (“Axos” or the “Company”) today announced unaudited financial results for the fourth fiscal quarter ended June 30, 2025. Net income was $110.7 million and diluted earnings per share (“EPS”) was $1.92 for the quarter ended June 30, 2025. Net income for the quarter ended June 30, 2024 was $104.9 million and diluted EPS was $1.80. Adjusted earnings and adjusted earnings per diluted common share (“Adjusted EPS”), non-GAAP measures described further below, increased $5.1 million to $111.8 million and increased $0.11 to $1.94, respectively, for the quarter ended June 30, 2025, compared to $106.7 million and $1.83, respectively, for the quarter ended June 30, 2024.
Fourth Quarter Fiscal 2025 Financial Summary
| | | | | | | | | | | | | | | | | |
| | | | | |
| Three Months Ended
June 30, | | |
| (Dollars in thousands, except per share data) | 2025 | | 2024 | | % Change |
| Net interest income | $ | 280,161 | | | $ | 260,062 | | | 7.7 | % |
| Non-interest income | $ | 41,285 | | | $ | 30,861 | | | 33.8 | % |
| Net income | $ | 110,675 | | | $ | 104,872 | | | 5.5 | % |
Adjusted earnings (Non-GAAP)1 | $ | 111,814 | | | $ | 106,727 | | | 4.8 | % |
| Diluted EPS | $ | 1.92 | | | $ | 1.80 | | | 6.7 | % |
Adjusted EPS (Non-GAAP)1 | $ | 1.94 | | | $ | 1.83 | | | 6.0 | % |
1 See “Use of Non-GAAP Financial Measures” | | | | | |
For the year ended June 30, 2025, net income was $432.9 million, a decrease of $17.1 million from net income of $450.0 million for the year ended June 30, 2024. Diluted EPS was $7.43 for the year ended June 30, 2025, a decrease of $0.23, or 3.0%, as compared to diluted EPS of $7.66 for the year ended June 30, 2024. The year ended June 30, 2024, included a one-time pre-tax gain of approximately $92.4 million, or $1.11 per diluted common share, related to the FDIC Loan Purchase. For the year ended June 30, 2025, adjusted earnings (a non-GAAP financial measure) increased $41.3 million or 10.4%, and Adjusted EPS (a non-GAAP financial measure) increased $0.76 per share or 11.3%.
“We grew loans by $856 million in the quarter ended June 30, 2025,” stated Greg Garrabrants, President and Chief Executive Officer of Axos. “We generated positive loan growth across several consumer and commercial lending categories, including asset-based lending, auto lending, equipment leasing, lender finance, and single-family mortgage. Our net interest margin remained strong at 4.84% for the three months ended June 30, 2025 compared to 4.78% in the prior quarter.”
“Net interest income and non-interest income increased by $4.7 million and $7.9 million, respectively, on a linked quarter basis,” said Derrick Walsh, Chief Financial Officer of Axos. “Our tax rate was approximately 29% for the quarter ended June 30, 2025, which includes the one-time non-cash deferred tax asset adjustment related to the change in California tax calculation methodology. Starting in the period ending September 30, 2025, we currently expect our effective tax rate to be reduced by three percentage points due to the change in California tax calculation methodology.”
Other Highlights
•Ending net loan balances were $21.0 billion at June 30, 2025, up 4% or 16% annualized from $20.2 billion at March 31, 2025
•Non-performing assets to total assets were 0.71% for the quarter ended June 30, 2025, down from 0.79% for the quarter ended March 31, 2025
•Net interest margin was 4.84% for the quarter ended June 30, 2025, compared to 4.78% for the quarter ended March 31, 2025
•Non-interest income was $41.3 million for the three months ended June 30, 2025, up 23.7% from $33.4 million for the quarter ended March 31, 2025
•Total deposits were $20.8 billion at June 30, 2025, an increase of $1.5 billion, or 7.6%, from $19.4 billion at June 30, 2024
•Added $214.7 million of net new assets under custody during the three months ended June 30, 2025
•Total capital to risk-weighted assets was 15.39% for the Company at June 30, 2025, up from 14.84% at June 30, 2024
•Book value per share increased to $47.46 at June 30, 2025, up 17.9% from $40.26 at June 30, 2024
Fourth Quarter Fiscal 2025 Income Statement Summary
Net income was $110.7 million and diluted EPS was $1.92 for the three months ended June 30, 2025, compared to net income of $104.9 million and diluted EPS of $1.80 for the three months ended June 30, 2024. Net interest income increased $20.1 million or 7.7% for the three months ended June 30, 2025, compared to the three months ended June 30, 2024, primarily due to lower rates paid on deposit balances.
The provision for credit losses was $15.0 million for the three months ended June 30, 2025, compared to $6.0 million for the three months ended June 30, 2024. The provision for credit losses for the three months ended June 30, 2025, was primarily driven by loan growth, as well as the quantitative impact of macroeconomic variables in the commercial real estate allowance for credit losses model.
Non-interest income increased to $41.3 million for the three months ended June 30, 2025, compared to $30.9 million for the three months ended June 30, 2024. The increase was primarily due to higher mortgage banking income, reflecting a $12.0 million gain recognized on a loan sale in the current quarter.
Non-interest expense, comprised of various operating expenses, increased $10.1 million to $150.7 million for the three months ended June 30, 2025 from $140.5 million for the three months ended June 30, 2024. The increase was primarily due to higher salaries and related costs and higher data and operational processing expense.
Balance Sheet Summary
Axos’ total assets increased by $1.9 billion, or 8.4%, to $24.8 billion, at June 30, 2025, from $22.9 billion at June 30, 2024, primarily attributable to an increase in loans. Total liabilities increased by $1.5 billion, or 7.5%, to $22.1 billion at June 30, 2025, from $20.6 billion at June 30, 2024, primarily attributable to higher deposit balances. Stockholders’ equity increased $390.1 million, or 17.0%, to $2.7 billion at June 30, 2025 from $2.3 billion at June 30, 2024, primarily due to net income of $432.9 million.
Conference Call
A conference call and webcast will be held on Wednesday, July 30, 2025, 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 August 30, 2025, at Axos’ website and telephonically by dialing toll-free number 877-660-6853, passcode 13754509.
About Axos Financial, Inc. and Subsidiaries
Axos Financial, Inc., with approximately $24.8 billion in consolidated assets as of June 30, 2025, is the holding company for Axos Bank, Axos Clearing LLC and Axos Invest, Inc. Axos Bank provides consumer and business banking products nationwide through its low-cost distribution channels and affinity partners. Axos Clearing LLC (including its business division Axos Advisor Services), with approximately $39.4 billion of assets under custody and/or administration as of June 30, 2025, 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, among other indices. For more information on Axos Financial, Inc., please visit http://investors.axosfinancial.com.
Segment Reporting
The Company operates through two segments: the Banking Business Segment and the Securities Business Segment. In order to reconcile the two segments to the consolidated totals, the Company includes corporate 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.
The following tables present the operating results of the segments:
| | | | | | | | | | | | | | | | | | | | | | | |
| For the Three Months Ended June 30, 2025 |
| (Dollars in thousands) | Banking
Business Segment | | Securities Business Segment | | Corporate/Eliminations | | Axos Consolidated |
| Net interest income | $ | 276,701 | | | $ | 7,215 | | | $ | (3,755) | | | $ | 280,161 | |
| Provision for credit losses | 14,997 | | | — | | | — | | | 14,997 | |
| Non-interest income | 22,226 | | | 29,621 | | | (10,562) | | | 41,285 | |
| Non-interest expense | 122,369 | | | 29,942 | | | (1,659) | | | 150,652 | |
| Income before income taxes | $ | 161,561 | | | $ | 6,894 | | | $ | (12,658) | | | $ | 155,797 | |
| | | | | | | |
| For the Three Months Ended June 30, 2024 |
| (Dollars in thousands) | Banking
Business Segment | | Securities Business Segment | | Corporate/Eliminations | | Axos Consolidated |
| Net interest income | $ | 256,543 | | | $ | 7,452 | | | $ | (3,933) | | | $ | 260,062 | |
| Provision for credit losses | 6,000 | | | — | | | — | | | 6,000 | |
| Non-interest income | 10,827 | | | 29,079 | | | (9,045) | | | 30,861 | |
| Non-interest expense | 110,668 | | | 27,111 | | | 2,756 | | | 140,535 | |
| Income before income taxes | $ | 150,702 | | | $ | 9,420 | | | $ | (15,734) | | | $ | 144,388 | |
| | | | | | | |
| For the Year Ended June 30, 2025 |
| (Dollars in thousands) | Banking
Business Segment | | Securities Business Segment | | Corporate/Eliminations | | Axos Consolidated |
| Net interest income | $ | 1,114,173 | | | $ | 28,431 | | | $ | (14,832) | | | $ | 1,127,772 | |
| Provision for credit losses | 55,745 | | | — | | | — | | | 55,745 | |
| Non-interest income | 46,430 | | | 119,138 | | | (34,502) | | | 131,066 | |
| Non-interest expense | 473,545 | | | 114,627 | | | 1,526 | | | 589,698 | |
| Income before income taxes | $ | 631,313 | | | $ | 32,942 | | | $ | (50,860) | | | $ | 613,395 | |
| | | | | | | |
| For the Year Ended June 30, 2024 |
| (Dollars in thousands) | Banking
Business Segment | | Securities Business Segment | | Corporate/Eliminations | | Axos Consolidated |
| Net interest income | $ | 950,832 | | | $ | 26,207 | | | $ | (15,610) | | | $ | 961,429 | |
| Provision for credit losses | 32,500 | | | — | | | — | | | 32,500 | |
| Non-interest income | 139,071 | | | 129,020 | | | (45,431) | | | 222,660 | |
| Non-interest expense | 418,695 | | | 115,091 | | | (17,678) | | | 516,108 | |
| Income before income taxes | $ | 638,708 | | | $ | 40,136 | | | $ | (43,363) | | | $ | 635,481 | |
Use of Non-GAAP Financial Measures
In addition to the results presented in accordance with accounting principles generally accepted in the United States of America (“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 items (including amortization of intangible assets related to acquisitions) and other costs (unusual or non-recurring charges). 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 comparable GAAP measure, to adjusted earnings and adjusted EPS (Non-GAAP) for the periods shown:
| | | | | | | | | | | | | | | | | | | | | | | |
| For the Three Months Ended June 30, | | For the Year Ended June 30, |
| (Dollars in thousands, except per share data) | 2025 | | 2024 | | 2025 | | 2024 |
| Net income | $ | 110,675 | | | $ | 104,872 | | | $ | 432,908 | | | $ | 450,008 | |
| FDIC Loan Purchase - Gain on purchase | — | | | — | | | — | | | (92,397) | |
| FDIC Loan Purchase - Provision for credit losses | — | | | — | | | — | | | 4,648 | |
Acquisition-related costs | 1,604 | | | 2,554 | | | 7,408 | | | 10,843 | |
Other costs1 | | | — | | | (1,878) | | | — | |
| Income tax effect | (465) | | | (699) | | | (1,627) | | | 22,446 | |
| Adjusted earnings (Non-GAAP) | $ | 111,814 | | | $ | 106,727 | | | $ | 436,811 | | | $ | 395,548 | |
| | | | | | | |
| Average dilutive common shares outstanding | 57,558,280 | | | 58,164,623 | | | 58,241,421 | | | 58,725,636 | |
| | | | | | | |
| Diluted EPS | $ | 1.92 | | | $ | 1.80 | | | $ | 7.43 | | | $ | 7.66 | |
| FDIC Loan Purchase - Gain on purchase | — | | | — | | | — | | | (1.57) | |
| FDIC Loan Purchase - Provision for credit losses | — | | | — | | | — | | | 0.08 | |
| Acquisition-related costs | 0.03 | | | 0.04 | | | 0.13 | | | 0.18 | |
Other costs1 | — | | | — | | | (0.03) | | | — | |
| Income tax effect | (0.01) | | | (0.01) | | | (0.03) | | | 0.39 | |
| Adjusted EPS (Non-GAAP) | $ | 1.94 | | | $ | 1.83 | | | $ | 7.50 | | | $ | 6.74 | |
|
1 Other costs primarily reflects the payment of a legal judgment at an amount less than previously accrued.
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 servicing rights, goodwill and other intangible assets. Tangible book value per common share 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 comparable GAAP measure, to tangible book value per common share (non-GAAP) as of the dates indicated:
| | | | | | | | | | | | | | | | | |
| (Dollars in thousands, except per share amounts) | June 30,
2025 | | June 30,
2024 | | June 30,
2023 |
| Common stockholders’ equity | $ | 2,680,677 | | | $ | 2,290,596 | | | $ | 1,917,159 | |
| Less: servicing rights, carried at fair value | 27,218 | | | 28,924 | | | 25,443 | |
| Less: goodwill and other intangible assets—net | 134,502 | | | 141,769 | | | 152,149 | |
| Tangible common stockholders’ equity (Non-GAAP) | $ | 2,518,957 | | | $ | 2,119,903 | | | $ | 1,739,567 | |
| | | | | |
| Common shares outstanding at end of period | 56,483,617 | | | 56,894,565 | | | 58,943,035 | |
| | | | | |
| Book value per common share | $ | 47.46 | | | 40.26 | | | $ | 32.53 | |
| Less: servicing rights, carried at fair value per common share | 0.48 | | | 0.51 | | | 0.44 | |
| Less: goodwill and other intangible assets—net per common share | 2.38 | | | 2.49 | | | 2.58 | |
| Tangible book value per common share (Non-GAAP) | $ | 44.60 | | | $ | 37.26 | | | $ | 29.51 | |
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’ deposit balances and capital ratios, 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, expectations of the environment in which Axos operates and projections of future performance. 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 Axos’ ability to successfully integrate acquisitions and realize the anticipated benefits of the transactions, changes in the interest rate environment, monetary policy, inflation, tariffs, government regulation, general economic conditions, changes in the competitive marketplace, conditions in the real estate markets in which we operate, risks associated with credit quality, our ability to attract and retain deposits and access other sources of liquidity, and 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, including its Annual Report on Form 10-K for the fiscal year ended June 30, 2024, could cause actual results to differ materially from those expressed or implied in any forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Axos undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. All written and oral forward-looking statements made in connection with this press release, which are attributable to us or persons acting on Axos’ behalf are expressly qualified in their entirety by the foregoing information.
Investor Relations Contact:
Johnny Lai, CFA
SVP, Corporate Development & Investor Relations
858-649-2218
AXOS FINANCIAL, INC.
SELECTED CONSOLIDATED FINANCIAL INFORMATION
(Unaudited – dollars in thousands)
| | | | | | | | | | | | | | | | | |
| June 30,
2025 | | June 30,
2024 | | June 30,
2023 |
| Selected Balance Sheet Data: | | | | | |
| Total assets | $ | 24,783,078 | | $ | 22,855,334 | | $ | 20,348,469 |
| Loans—net of allowance for credit losses | 21,049,610 | | 19,231,385 | | 16,456,728 |
| Loans held for sale, carried at fair value | 10,012 | | 16,482 | | 23,203 |
| | | | | |
| Allowance for credit losses | 290,049 | | 260,542 | | 166,680 |
| Trading securities | 649 | | 353 | | 758 |
| Available-for-sale securities | 66,008 | | 141,611 | | 232,350 |
| | | | | |
| Securities borrowed | 139,396 | | 67,212 | | 134,339 |
| Customer, broker-dealer and clearing receivables | 252,720 | | 240,028 | | 374,074 |
| Total deposits | 20,829,543 | | 19,359,217 | | 17,123,108 |
| Advances from the Federal Home Loan Bank | 60,000 | | 90,000 | | 90,000 |
| Borrowings, subordinated notes and debentures | 312,671 | | 325,679 | | 361,779 |
| Securities loaned | 139,426 | | 74,177 | | 159,832 |
| Customer, broker-dealer and clearing payables | 350,606 | | 301,127 | | 445,477 |
| Total stockholders’ equity | $ | 2,680,677 | | $ | 2,290,596 | | $ | 1,917,159 |
| | | | | |
| Common shares outstanding at end of period | 56,483,617 | | 56,894,565 | | 58,943,035 |
| Common shares issued at end of period | 71,101,642 | | 70,221,632 | | 69,465,446 |
| | | | | |
| Per Common Share Data: | | | | | |
| Book value per common share | $ | 47.46 | | $ | 40.26 | | $ | 32.53 |
Tangible book value per common share (Non-GAAP)1 | $ | 44.60 | | $ | 37.26 | | $ | 29.51 |
| | | | | |
| Capital Ratios: | | | | | |
| Equity to assets at end of period | 10.82 | % | | 10.02 | % | | 9.42 | % |
| Axos Financial, Inc.: | | | | | |
| Tier 1 leverage (to adjusted average assets) | 10.72 | % | | 9.43 | % | | 8.96 | % |
| Common equity tier 1 capital (to risk-weighted assets) | 12.51 | % | | 12.01 | % | | 10.94 | % |
| Tier 1 capital (to risk-weighted assets) | 12.51 | % | | 12.01 | % | | 10.94 | % |
| Total capital (to risk-weighted assets) | 15.39 | % | | 14.84 | % | | 13.82 | % |
| Axos Bank: | | | | | |
| Tier 1 leverage (to adjusted average assets) | 10.24 | % | | 9.74 | % | | 9.68 | % |
| Common equity tier 1 capital (to risk-weighted assets) | 12.45 | % | | 12.74 | % | | 11.63 | % |
| Tier 1 capital (to risk-weighted assets) | 12.45 | % | | 12.74 | % | | 11.63 | % |
| Total capital (to risk-weighted assets) | 13.74 | % | | 13.81 | % | | 12.50 | % |
| Axos Clearing LLC: | | | | | |
| Net capital | $ | 86,996 | | | $ | 101,462 | | | $ | 35,221 | |
| Excess capital | $ | 81,834 | | | $ | 96,654 | | | $ | 29,905 | |
| Net capital as a percentage of aggregate debit items | 33.71 | % | | 42.21 | % | | 13.25 | % |
| Net capital in excess of 5% aggregate debit items | $ | 74,091 | | | $ | 89,442 | | | $ | 21,930 | |
AXOS FINANCIAL, INC.
SELECTED CONSOLIDATED FINANCIAL INFORMATION
(Unaudited – dollars in thousands, except per share data)
| | | | | | | | | | | | | | | | | | | | | | | |
| As of or for the Three Months Ended | | As of or for the Year Ended |
| June 30, | | June 30, |
| (Dollars in thousands, except per share data) | 2025 | | 2024 | | 2025 | | 2024 |
| Selected Income Statement Data: | | | | | | | |
| Interest and dividend income | $ | 442,413 | | $ | 453,428 | | $ | 1,815,465 | | $ | 1,655,607 |
| Interest expense | 162,252 | | 193,366 | | 687,693 | | 694,178 |
| Net interest income | 280,161 | | 260,062 | | 1,127,772 | | 961,429 |
| Provision for credit losses | 14,997 | | 6,000 | | 55,745 | | 32,500 |
| Net interest income, after provision for credit losses | 265,164 | | 254,062 | | 1,072,027 | | 928,929 |
| Non-interest income | 41,285 | | 30,861 | | 131,066 | | 222,660 |
| Non-interest expense | 150,652 | | 140,535 | | 589,698 | | 516,108 |
| Income before income taxes | 155,797 | | 144,388 | | 613,395 | | 635,481 |
| Income tax expense | 45,122 | | 39,516 | | 180,487 | | 185,473 |
| Net income | $ | 110,675 | | $ | 104,872 | | $ | 432,908 | | $ | 450,008 |
| | | | | | | |
| Weighted average number of common shares outstanding: | | | | | | | |
| Basic | 56,392,620 | | 56,938,405 | | 56,862,630 | | 57,509,029 |
| Diluted | 57,558,280 | | 58,164,623 | | 58,241,421 | | 58,725,636 |
| | | | | | | |
| Per Common Share Data: | | | | | | | |
| Net income: | | | | | | | |
| Basic | $ | 1.96 | | $ | 1.84 | | $ | 7.61 | | $ | 7.82 |
| Diluted | $ | 1.92 | | $ | 1.80 | | $ | 7.43 | | $ | 7.66 |
Adjusted earnings per common share (Non-GAAP)1 | $ | 1.94 | | $ | 1.83 | | $ | 7.50 | | $ | 6.74 |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| Performance Ratios and Other Data: | | | | | | | |
| Growth in loans held for investment, net | $ | 855,980 | | $ | 497,930 | | $ | 1,818,225 | | $ | 2,774,657 |
| Loan originations for sale | 42,487 | | 52,574 | | 199,845 | | 197,305 |
| | | | | | | |
| Return on average assets | 1.85 | % | | 1.81 | % | | 1.82 | % | | 2.08 | % |
| Return on average common stockholders’ equity | 16.85 | % | | 18.81 | % | | 17.30 | % | | 21.64 | % |
Interest rate spread2 | 3.97 | % | | 3.63 | % | | 3.97 | % | | 3.62 | % |
Net interest margin3 | 4.84 | % | | 4.65 | % | | 4.90 | % | | 4.62 | % |
Net interest margin3 – Banking Business Segment | 4.88 | % | | 4.68 | % | | 4.95 | % | | 4.68 | % |
Efficiency ratio4 | 46.87 | % | | 48.31 | % | | 46.84 | % | | 43.59 | % |
Efficiency ratio4 – Banking Business Segment | 40.94 | % | | 41.39 | % | | 40.80 | % | | 38.42 | % |
| | | | | | | |
| Asset Quality Ratios: | | | | | | | |
| Net annualized charge-offs to average loans | 0.16 | % | | 0.05 | % | | 0.13 | % | | 0.05 | % |
Non-accrual loans to total loans | 0.79 | % | | 0.57 | % | | 0.79 | % | | 0.57 | % |
| Non-performing assets to total assets | 0.71 | % | | 0.51 | % | | 0.71 | % | | 0.51 | % |
| Allowance for credit losses - loans to total loans held for investment | 1.36 | % | | 1.34 | % | | 1.36 | % | | 1.34 | % |
Allowance for credit losses - loans to non-accrual loans5 | 170.23 | % | | 229.84 | % | | 170.23 | % | | 229.84 | % |
1 See “Use of Non-GAAP Financial Measures.”
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 The decrease in the Allowance for credit losses - loans to nonaccrual loans is primarily attributable to the change in nonaccrual loans.
AXOS FINANCIAL, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
| | | | | | | | | | | |
| At June 30, |
| (Dollars in thousands, except par value) | 2025 | | 2024 |
| ASSETS | | | |
| Cash and cash equivalents | $ | 1,933,845 | | | $ | 1,979,979 | |
| Restricted cash | 242,509 | | | 205,797 | |
| Total cash, cash equivalents and restricted cash | 2,176,354 | | | 2,185,776 | |
| Trading securities | 649 | | | 353 | |
| Available-for-sale securities | 66,008 | | | 141,611 | |
| Stock of regulatory agencies | 35,163 | | | 21,957 | |
| Loans held for sale, carried at fair value | 10,012 | | | 16,482 | |
| | | |
Loans—net of allowance for credit losses of $290,049 as of June 30, 2025 and $260,542 as of June 30, 2024 | 21,049,610 | | | 19,231,385 | |
| Servicing rights, carried at fair value | 27,218 | | | 28,924 | |
| Securities borrowed | 139,396 | | | 67,212 | |
| Customer, broker-dealer and clearing receivables | 252,720 | | | 240,028 | |
| Goodwill and other intangible assets—net | 134,502 | | | 141,769 | |
| Other assets | 891,446 | | | 779,837 | |
| TOTAL ASSETS | $ | 24,783,078 | | | $ | 22,855,334 | |
| | | |
| LIABILITIES AND STOCKHOLDERS’ EQUITY | | | |
| Deposits: | | | |
| Non-interest bearing | $ | 3,040,696 | | | $ | 2,975,631 | |
| Interest bearing | 17,788,847 | | | 16,383,586 | |
| Total deposits | 20,829,543 | | | 19,359,217 | |
| Advances from the Federal Home Loan Bank | 60,000 | | | 90,000 | |
| Borrowings, subordinated notes and debentures | 312,671 | | | 325,679 | |
| Securities loaned | 139,426 | | | 74,177 | |
| Customer, broker-dealer and clearing payables | 350,606 | | | 301,127 | |
| Accounts payable and other liabilities | 410,155 | | | 414,538 | |
| Total liabilities | 22,102,401 | | | 20,564,738 | |
| COMMITMENTS AND CONTINGENCIES | | | |
| STOCKHOLDERS’ EQUITY: | | | |
Common stock—$0.01 par value; 150,000,000 shares authorized, 71,101,642 shares issued and 56,483,617 shares outstanding as of June 30, 2025; 70,221,632 shares issued and 56,894,565 shares outstanding as of June 30, 2024 | 711 | | | 702 | |
| Additional paid-in capital | 548,895 | | | 510,232 | |
| Accumulated other comprehensive income (loss)—net of income tax | 348 | | | (2,466) | |
| Retained earnings | 2,618,525 | | | 2,185,617 | |
Treasury stock, at cost; 14,618,025 shares as of June 30, 2025 and 13,327,067 shares as of June 30, 2024 | (487,802) | | | (403,489) | |
| Total stockholders’ equity | 2,680,677 | | | 2,290,596 | |
| TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 24,783,078 | | | $ | 22,855,334 | |
AXOS FINANCIAL, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
| | | | | | | | | | | |
| Three Months Ended |
| June 30, |
| (Dollars in thousands, except earnings per common share) | 2025 | | 2024 |
| INTEREST AND DIVIDEND INCOME: | | | |
| Loans, including fees | $ | 410,910 | | | $ | 409,466 | |
| Securities borrowed and customer receivables | 6,699 | | | 6,244 | |
Investments and other | 24,804 | | | 37,718 | |
| Total interest and dividend income | 442,413 | | | 453,428 | |
| INTEREST EXPENSE: | | | |
| Deposits | 156,931 | | | 187,542 | |
| Advances from the Federal Home Loan Bank | 310 | | | 1,293 | |
| Securities loaned | 477 | | | 379 | |
| Other borrowings | 4,534 | | | 4,152 | |
| Total interest expense | 162,252 | | | 193,366 | |
| Net interest income | 280,161 | | | 260,062 | |
| Provision for credit losses | 14,997 | | | 6,000 | |
| Net interest income, after provision for credit losses | 265,164 | | | 254,062 | |
| NON-INTEREST INCOME: | | | |
| Broker-dealer fee income | 11,013 | | | 11,053 | |
| Advisory fee income | 7,747 | | | 7,649 | |
| Banking and service fees | 9,515 | | | 8,436 | |
Mortgage banking and servicing rights income | 12,855 | | | 3,189 | |
| Prepayment penalty fee income | 155 | | | 534 | |
| | | |
| Total non-interest income | 41,285 | | | 30,861 | |
| NON-INTEREST EXPENSE: | | | |
| Salaries and related costs | 74,888 | | | 68,760 | |
Data and operational processing | 20,358 | | | 16,717 | |
| Depreciation and amortization | 7,691 | | | 7,499 | |
| Advertising and promotional | 11,025 | | | 12,346 | |
| Professional services | 10,362 | | | 11,672 | |
| Occupancy and equipment | 4,536 | | | 4,603 | |
| FDIC and regulatory fees | 6,990 | | | 6,930 | |
| Broker-dealer clearing charges | 4,282 | | | 3,841 | |
| General and administrative expense | 10,520 | | | 8,167 | |
| Total non-interest expense | 150,652 | | | 140,535 | |
| INCOME BEFORE INCOME TAXES | 155,797 | | | 144,388 | |
| INCOME TAXES | 45,122 | | | 39,516 | |
| NET INCOME | $ | 110,675 | | | $ | 104,872 | |
| | | |
| Basic earnings per common share | $ | 1.96 | | | $ | 1.84 | |
| Diluted earnings per common share | $ | 1.92 | | | $ | 1.80 | |
AXOS FINANCIAL, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
| | | | | | | | | | | | | | | | | |
| Year Ended June 30, |
| (Dollars in thousands, except earnings per common share) | 2025 | | 2024 | | 2023 |
| INTEREST AND DIVIDEND INCOME: | | | | | |
| Loans, including fees | $ | 1,654,784 | | | $ | 1,499,572 | | | $ | 1,048,874 | |
| Securities borrowed and customer receivables | 25,492 | | | 22,407 | | | 18,657 | |
| Investments and other | 135,189 | | | 133,628 | | | 89,607 | |
| Total interest and dividend income | 1,815,465 | | | 1,655,607 | | | 1,157,138 | |
| INTEREST EXPENSE: | | | | | |
| Deposits | 667,753 | | | 670,570 | | | 339,481 | |
| Advances from the Federal Home Loan Bank | 1,652 | | | 3,087 | | | 12,644 | |
| Securities loaned | 1,830 | | | 2,214 | | | 3,673 | |
| Other borrowings | 16,458 | | | 18,307 | | | 18,219 | |
| Total interest expense | 687,693 | | | 694,178 | | | 374,017 | |
| Net interest income | 1,127,772 | | | 961,429 | | | 783,121 | |
| Provision for credit losses | 55,745 | | | 32,500 | | | 24,250 | |
| Net interest income, after provision for credit losses | 1,072,027 | | | 928,929 | | | 758,871 | |
| NON-INTEREST INCOME: | | | | | |
| Broker-dealer fee income | 45,233 | | | 48,136 | | | 46,503 | |
| Advisory fee income | 31,794 | | | 31,335 | | | 28,324 | |
| Banking and service fees | 38,195 | | | 35,723 | | | 32,938 | |
| Mortgage banking and servicing rights income | 13,007 | | | 10,000 | | | 7,101 | |
| Prepayment penalty fee income | 2,837 | | | 5,069 | | | 5,622 | |
| Gain on acquisition | — | | | 92,397 | | | — | |
| Total non-interest income | 131,066 | | | 222,660 | | | 120,488 | |
| NON-INTEREST EXPENSE: | | | | | |
| Salaries and related costs | 297,955 | | | 250,873 | | | 204,271 | |
| Data and operational processing | 80,433 | | | 69,370 | | | 60,557 | |
| Depreciation and amortization | 29,019 | | | 27,086 | | | 23,387 | |
| Advertising and promotional | 47,760 | | | 42,797 | | | 37,150 | |
| Professional services | 37,572 | | | 36,532 | | | 29,268 | |
| Occupancy and equipment | 17,705 | | | 16,704 | | | 15,647 | |
| FDIC and regulatory fees | 27,558 | | | 20,546 | | | 15,534 | |
| Broker-dealer clearing charges | 17,065 | | | 18,260 | | | 13,433 | |
| General and administrative expense | 34,631 | | | 33,940 | | | 48,368 | |
| Total non-interest expense | 589,698 | | | 516,108 | | | 447,615 | |
| INCOME BEFORE INCOME TAXES | 613,395 | | | 635,481 | | | 431,744 | |
| INCOME TAXES | 180,487 | | | 185,473 | | | 124,579 | |
| NET INCOME | $ | 432,908 | | | $ | 450,008 | | | $ | 307,165 | |
| | | | | |
| Basic earnings per common share | $ | 7.61 | | | $ | 7.82 | | | $ | 5.15 | |
| Diluted earnings per common share | $ | 7.43 | | | $ | 7.66 | | | $ | 5.07 | |
LOANS & ALLOWANCE FOR CREDIT LOSSES
The following table sets forth the composition of the loan portfolio:
| | | | | | | | | | | |
| (Dollars in thousands) | June 30, 2025 | | June 30, 2024 |
| Single Family - Mortgage & Warehouse | $ | 4,395,278 | | | $ | 4,178,832 | |
| Multifamily and Commercial Mortgage | 2,940,739 | | | 3,861,931 | |
| Commercial Real Estate | 6,937,187 | | | 6,088,622 | |
| Commercial & Industrial - Non-RE | 6,795,497 | | | 5,241,766 | |
| Auto & Consumer | 482,996 | | | 431,660 | |
| | | |
| | | |
| Total gross loans | 21,551,697 | | | 19,802,811 | |
| Allowance for credit losses - loans | (290,049) | | | (260,542) | |
| Unaccreted premiums (discounts) and loan fees | (212,038) | | | (310,884) | |
| Total net loans | $ | 21,049,610 | | | $ | 19,231,385 | |
AVAILABLE-FOR-SALE SECURITIES
The amortized cost and fair value of available-for-sale securities were:
| | | | | | | | | | | | | | | | | | | | | | | |
| June 30, 2025 |
| (Dollars in thousands) | Amortized
Cost | | Unrealized
Gains | | Unrealized
Losses | | Fair
Value |
| Mortgage-backed securities (MBS): | | | | | | | |
Agency1 | $ | 48,229 | | | $ | 327 | | | $ | (1,799) | | | $ | 46,757 | |
Non-agency2 | 14,395 | | | 1,232 | | | (58) | | | 15,569 | |
| Total mortgage-backed securities | 62,624 | | | 1,559 | | | (1,857) | | | 62,326 | |
| | | | | | | |
| | | | | | | |
| Municipal | 3,682 | | | — | | | — | | | 3,682 | |
| | | | | | | |
| | | | | | | |
Total available-for-sale securities | $ | 66,306 | | | $ | 1,559 | | | $ | (1,857) | | | $ | 66,008 | |
| | | | | | | |
| | | | | | | |
| |
| June 30, 2024 |
| (Dollars in thousands) | Amortized
Cost | | Unrealized
Gains | | Unrealized
Losses | | Fair
Value |
| Mortgage-backed securities (MBS): | | | | | | | |
Agency1 | $ | 29,835 | | | $ | 83 | | | $ | (2,659) | | | $ | 27,259 | |
Non-agency2 | 110,658 | | | 838 | | | (568) | | | 110,928 | |
| Total mortgage-backed securities | 140,493 | | | 921 | | | (3,227) | | | 138,187 | |
| | | | | | | |
| | | | | | | |
| Municipal | 3,788 | | | — | | | (364) | | | 3,424 | |
| | | | | | | |
| | | | | | | |
Total available-for-sale securities | $ | 144,281 | | | $ | 921 | | | $ | (3,591) | | | $ | 141,611 | |
1 Includes securities guaranteed by Ginnie Mae, a U.S. government agency, and the government sponsored enterprises Fannie Mae and Freddie Mac.
2 Private sponsors of securities collateralized primarily by first-lien mortgage loans on commercial properties or by pools of 1-4 family residential first mortgages. Primarily super senior securities secured by prime, Alt-A or pay-option ARM mortgages.
DEPOSITS
The following table sets forth the composition of the deposit portfolio:
| | | | | | | | | | | | | | | | | |
| | | |
| (Dollars in thousands) | June 30, 2025 | | June 30, 2024 |
| Non-interest bearing | $ | 3,040,696 | | | | | $ | 2,975,631 | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| Interest-bearing demand and savings | 16,660,290 | | | | | 15,445,490 | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| Time deposits | 1,128,557 | | | | | 938,096 | | | |
| Total interest bearing | 17,788,847 | | | | | 16,383,586 | | | |
Total deposits1 | $ | 20,829,543 | | | | | $ | 19,359,217 | | | |
1 The total interest-bearing includes brokered deposits of $1,801.1 million and $1,611.6 million as of June 30, 2025 and June 30, 2024, respectively, which include brokered time deposits of $700.0 million and $400.0 million as of June 30, 2025 and June 30, 2024, respectively.
The number of deposit accounts at the end of each of the last three fiscal years is set forth below:
| | | | | | | | | | | | | | | | | | | |
| At June 30, |
| 2025 | | 2024 | | | | | | |
| Non-interest bearing | 50,967 | | | 55,772 | | | | | | | |
| Interest-bearing checking and savings accounts | 546,678 | | | 495,070 | | | | | | | |
| Time deposits | 2,956 | | | 4,696 | | | | | | | |
| Total number of deposit accounts | 600,601 | | | 555,538 | | | | | | | |
AVERAGE BALANCES, NET INTEREST INCOME, YIELDS EARNED AND RATES PAID
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, | | |
| June 30, 2025 | | June 30, 2024 | | |
| (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 | $ | 20,539,298 | | | $ | 410,910 | | | 8.00 | % | | $ | 19,177,807 | | | $ | 409,466 | | | 8.54 | % | | |
Non-purchased loans | 19,560,321 | | | 374,450 | | | 7.66 | % | | 18,196,696 | | | 368,766 | | | 8.11 | % | | |
Purchased loans5 | 978,977 | | | 36,460 | | | 14.90 | % | | 981,111 | | | 40,700 | | | 16.59 | % | | |
| Interest-earning deposits in other financial institutions | 2,149,658 | | | 23,652 | | | 4.40 | % | | 2,656,167 | | | 35,122 | | | 5.29 | % | | |
Mortgage-backed and other securities4 | 76,214 | | | 642 | | | 3.37 | % | | 183,297 | | | 2,202 | | | 4.81 | % | | |
Securities borrowed and margin lending6 | 344,061 | | | 6,699 | | | 7.79 | % | | 329,573 | | | 6,244 | | | 7.58 | % | | |
| Stock of the regulatory agencies | 29,599 | | | 510 | | | 6.89 | % | | 17,250 | | | 394 | | | 9.14 | % | | |
| Total interest-earning assets | 23,138,830 | | | 442,413 | | | 7.65 | % | | 22,364,094 | | | 453,428 | | | 8.11 | % | | |
| Non-interest-earning assets | 813,673 | | | | | | | 758,002 | | | | | | | |
| Total assets | $ | 23,952,503 | | | | | | | $ | 23,122,096 | | | | | | | |
| Liabilities and Stockholders’ Equity: | | | | | | | | | | | | | |
| Interest-bearing demand and savings | $ | 16,284,806 | | | $ | 148,589 | | | 3.65 | % | | $ | 15,697,646 | | | $ | 176,930 | | | 4.51 | % | | |
| Time deposits | 845,052 | | | 8,342 | | | 3.95 | % | | 971,756 | | | 10,612 | | | 4.37 | % | | |
| Securities loaned | 108,963 | | | 477 | | | 1.75 | % | | 121,197 | | | 379 | | | 1.25 | % | | |
| Advances from the FHLB | 60,001 | | | 310 | | | 2.07 | % | | 144,947 | | | 1,293 | | | 3.57 | % | | |
| Borrowings, subordinated notes and debentures | 355,690 | | | 4,534 | | | 5.10 | % | | 327,602 | | | 4,152 | | | 5.07 | % | | |
| Total interest-bearing liabilities | 17,654,512 | | | 162,252 | | | 3.68 | % | | 17,263,148 | | | 193,366 | | | 4.48 | % | | |
| Non-interest-bearing demand deposits | 2,960,476 | | | | | | | 2,870,716 | | | | | | | |
| Other non-interest-bearing liabilities | 710,207 | | | | | | | 757,946 | | | | | | | |
| Stockholders’ equity | 2,627,308 | | | | | | | 2,230,286 | | | | | | | |
| Total liabilities and stockholders’ equity | $ | 23,952,503 | | | | | | | $ | 23,122,096 | | | | | | | |
| Net interest income | | | $ | 280,161 | | | | | | | $ | 260,062 | | | | | |
Interest rate spread7 | | | | | 3.97 | % | | | | | | 3.63 | % | | |
Net interest margin8 | | | | | 4.84 | % | | | | | | 4.65 | % | | |
1Average balances are obtained from daily data.
2Annualized.
3Loans include loans held for sale, loan premiums and unearned fees.
4Interest income includes reductions for amortization of loan and available-for-sale securities premiums and earnings from accretion of discounts and loan fees.
5Purchased loans include loans, loan discounts and unearned fees related to the FDIC Loan Purchase.
6Margin lending is the significant component of the asset titled customer, broker-dealer and clearing receivables on the unaudited Condensed Consolidated Balance Sheets.
7Interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average rate paid on interest-bearing liabilities.
8Net 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
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 Fiscal Years Ended June 30, |
| 2025 | | 2024 | | 2023 |
| (Dollars in thousands) | Average Balance1 | | Interest
Income /
Expense | | Average
Yields
Earned /
Rates Paid | | Average Balance1 | | Interest
Income /
Expense | | Average
Yields
Earned /
Rates Paid | | Average
Balance1 | | Interest
Income /
Expense | | Average
Yields
Earned /
Rates Paid |
| Assets: | | | | | | | | | | | | | | | | | |
Loans2,3 | $ | 19,853,221 | | | $ | 1,654,784 | | | 8.34 | % | | $ | 18,010,709 | | | $ | 1,499,572 | | | 8.33 | % | | $ | 15,571,290 | | | $ | 1,048,874 | | | 6.74 | % |
| Non-purchased loans | 18,880,093 | | | 1,494,140 | | | 7.91 | % | | 17,458,451 | | | 1,405,202 | | | 8.05 | % | | 15,571,290 | | | 1,048,874 | | | 6.74 | % |
Purchased loans4 | 973,128 | | | 160,644 | | | 16.51 | % | | 552,258 | | | 94,370 | | | 17.09 | % | | — | | | — | | | — | % |
| Interest-earning deposits in other financial institutions | 2,665,865 | | | 128,073 | | | 4.80 | % | | 2,242,226 | | | 120,861 | | | 5.39 | % | | 1,761,902 | | | 73,467 | | | 4.17 | % |
| Mortgage-backed and other securities | 109,405 | | | 5,181 | | | 4.74 | % | | 218,565 | | | 11,234 | | | 5.14 | % | | 259,473 | | | 14,669 | | | 5.65 | % |
Securities borrowed and margin lending4 | 344,055 | | | 25,492 | | | 7.41 | % | | 329,154 | | | 22,407 | | | 6.81 | % | | 388,386 | | | 18,657 | | | 4.80 | % |
| Stock of the regulatory agencies | 26,930 | | | 1,935 | | | 7.19 | % | | 17,250 | | | 1,533 | | | 8.89 | % | | 20,936 | | | 1,471 | | | 7.03 | % |
| Total interest-earning assets | 22,999,476 | | | $ | 1,815,465 | | | 7.89 | % | | 20,817,904 | | | $ | 1,655,607 | | | 7.95 | % | | 18,001,987 | | | $ | 1,157,138 | | | 6.43 | % |
| Non-interest-earning assets | 775,958 | | | | | | | 811,032 | | | | | | | 735,783 | | | | | |
| Total assets | $ | 23,775,434 | | | | | | | $ | 21,628,936 | | | | | | | $ | 18,737,770 | | | | | |
| Liabilities and Stockholders’ Equity: | | | | | | | | | | | | | | | | | |
| Interest-bearing demand and savings | $ | 16,181,014 | | | $ | 632,919 | | | 3.91 | % | | $ | 14,352,569 | | | $ | 626,678 | | | 4.37 | % | | $ | 10,211,737 | | | $ | 305,655 | | | 2.99 | % |
| Time deposits | 859,400 | | | 34,834 | | | 4.05 | % | | 1,062,644 | | | 43,892 | | | 4.13 | % | | 1,225,537 | | | 33,826 | | | 2.76 | % |
| Securities loaned | 113,330 | | | 1,830 | | | 1.61 | % | | 153,552 | | | 2,214 | | | 1.44 | % | | 303,932 | | | 3,673 | | | 1.21 | % |
| Advances from the FHLB | 74,385 | | | 1,652 | | | 2.22 | % | | 107,454 | | | 3,087 | | | 2.87 | % | | 423,612 | | | 12,644 | | | 2.98 | % |
| Borrowings, subordinated notes and debentures | 332,665 | | | 16,458 | | | 4.95 | % | | 358,452 | | | 18,307 | | | 5.11 | % | | 362,733 | | | 18,219 | | | 5.02 | % |
| Total interest-bearing liabilities | 17,560,794 | | | $ | 687,693 | | | 3.92 | % | | 16,034,671 | | | $ | 694,178 | | | 4.33 | % | | 12,527,551 | | | $ | 374,017 | | | 2.99 | % |
| Non-interest-bearing demand deposits | 2,968,839 | | | | | | | 2,769,272 | | | | | | | 3,730,524 | | | | | |
| Other non-interest-bearing liabilities | 743,920 | | | | | | | 745,472 | | | | | | | 695,617 | | | | | |
| Stockholders’ equity | 2,501,881 | | | | | | | 2,079,521 | | | | | | | 1,784,078 | | | | | |
| Total liabilities and stockholders’ equity | $ | 23,775,434 | | | | | | | $ | 21,628,936 | | | | | | | $ | 18,737,770 | | | | | |
| Net interest income | | | $ | 1,127,772 | | | | | | | $ | 961,429 | | | | | | | $ | 783,121 | | | |
Interest rate spread6 | | | | | 3.97 | % | | | | | | 3.62 | % | | | | | | 3.44 | % |
Net interest margin7 | | | | | 4.90 | % | | | | | | 4.62 | % | | | | | | 4.35 | % |
1.Average balances are obtained from daily data.
2.Loans include loans held for sale, loan premiums and unearned fees.
3.Interest income includes reductions for amortization of loan and available-for-sale securities premiums and earnings from accretion of discounts and loan fees.
4.Purchased loans include loans, loan discounts and unearned fees related to the FDIC Loan Purchase.
5.Margin lending is the significant component of the asset titled customer, broker-dealer and clearing receivables on the audited consolidated balance sheets.
6.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.
7.Net interest margin represents annualized net interest income as a percentage of average interest-earning assets.1 Average balances are obtained from daily data.
SEGMENT SELECTED FINANCIAL INFORMATION
Banking Business Segment
| | | | | | | | | | | | | | | |
| | | Fiscal Year Ended |
| | | | | June 30, 2025 | | June 30, 2024 |
| Efficiency ratio | | | | | 40.80 | % | | 38.42 | % |
| Return on average assets | | | | | 2.02 | % | | 2.20 | % |
| Interest rate spread | | | | | 4.03 | % | | 3.66 | % |
| Net interest margin | | | | | 4.95 | % | | 4.68 | % |
Securities Business Segment
| | | | | | | | | | | |
| June 30, |
| (Dollars in thousands) | 2025 | | 2024 |
| | | |
| FDIC insured program balances at banks | $ | 1,444,830 | | | $ | 1,289,105 | |
| Margin balances | $ | 229,387 | | | $ | 219,848 | |
| Cash reserves for the benefit of customers | $ | 146,835 | | | $ | 113,676 | |
| | | |
| | | |
| | | |
| | | |
| | | |
| Securities lending: | | | |
| Interest-earning assets – stock borrowed | $ | 139,396 | | | $ | 67,212 | |
| Interest-bearing liabilities – stock loaned | $ | 139,426 | | | $ | 74,177 | |
