0001299709false00012997092022-08-042022-08-04

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C.  20549

 

FORM 8-K

 

CURRENT REPORT

 

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

 

Date of Report (Date of earliest event reported):  August 4, 2022

Axos Financial, Inc.

(Exact name of registrant as specified in its charter)

Delaware			001-37709			33-0867444
(State or other jurisdiction of incorporation)			(Commission File Number)			(IRS Employer Identification Number)

9205 West Russell Road, Ste 400

Las Vegas, NV 89148

(Address of principal executive offices and zip code)

Registrant’s telephone number, including area code: (858) 649-2218          

Securities registered pursuant to Section 12(b) of the Act:
Title of each class			Trading Symbol(s)			Name of each exchange on which registered
Common stock, $0.01 par value			AX			New York Stock Exchange

Not Applicable

(Former name or former address, if changed since last report.)

 Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

 

☐                                    Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

☐                                    Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

☐                                    Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

☐                                    Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

☐                                    Emerging growth company  

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐

---

Item 2.02     Results of Operations and Financial Condition

On August 4, 2022, Axos Financial, Inc. (the “Registrant”) issued a press release announcing its fourth quarter results of operations for the period ended June 30, 2022. The press release, related financial schedules and earnings supplement presentation are furnished as Exhibits 99.1 through 99.4.

Pursuant to General Instruction B.2. of Form 8-K, the information in this Item 2.02 of Form 8-K, including Exhibit 99.1, 99.2, 99.3 and 99.4 is being furnished pursuant to Item 2.02 and shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934 or otherwise be subject to the liabilities of that section, nor is it incorporated by reference into any filing of the Registrant under the Securities Act of 1933 or the Securities Exchange Act of 1934, whether made before or after the date hereof, regardless of any general incorporation language in such filing.

Item 9.01     Financial Statements and Exhibits.

(d)    Exhibits.

Exhibit						Description
99.1						Press Release
99.2						Financial Schedules
99.3						Press Release Earnings Supplement
99.4						Press Release Earnings Supplement PDF
104						Cover Page Interactive Data File (embedded within the Inline XBRL document)

---

SIGNATURE

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Axos Financial, Inc.

Date:

August 4, 2022

By:

/s/ Derrick K. Walsh

Derrick K. Walsh

EVP and Chief Financial Officer

Axos Financial, Inc. Announces Record Net Income of $240.7 million for Fiscal 2022

Net Interest Margin Expanded by 21 Basis Points to 4.13% in Fiscal 2022

LAS VEGAS, NV – (BUSINESS WIRE) – August 4, 2022 – Axos Financial, Inc. (NYSE: AX) (“Axos”), parent company of Axos Bank (the “Bank”), today announced unaudited financial results for the fourth fiscal quarter and full fiscal year ended June 30, 2022. Net income for the quarter was $57.9 million, an increase of 6.7% over net income of $54.3 million for the quarter ended June 30, 2021. Earnings per diluted share for the quarter were $0.96, an increase of $0.06, or 6.7%, as compared to earnings per diluted share of $0.90 for the quarter ended June 30, 2021.

Adjusted earnings and adjusted earnings per diluted common share (“Adjusted EPS”), non-GAAP measures, which exclude non-cash amortization expenses and other non-recurring costs, increased 21.2% to $67.6 million and 21.7% to $1.12, respectively, for the quarter ended June 30, 2022 compared to $55.8 million and $0.92, respectively, for the quarter ended June 30, 2021.

Fourth Quarter Fiscal 2022 Financial Summary:

			Three Months Ended  June 30,
(Dollars in thousands, except per share data)			2022						2021						% Change
Net interest income			$	165,410					$	141,654					16.8		%
Non-interest income			$	27,100					$	16,801					61.3		%
Net income			$	57,896					$	54,255					6.7		%
Adjusted Earnings (Non-GAAP)1			$	67,616					$	55,811					21.2		%
Net income attributable to common stockholders			$	57,896					$	54,255					6.7		%
Diluted EPS			$	0.96					$	0.90					6.7		%
Adjusted EPS (Non-GAAP)1			$	1.12					$	0.92					21.7		%

1 See “Use of Non-GAAP Financial Measures” for a reconciliation to the applicable GAAP measures

For the fiscal year ended June 30, 2022, net income was a record $240.7 million, an increase of 11.6% over net income of $215.7 million for the year ended June 30, 2021. Earnings per diluted share was $3.97, an increase of $0.41, or 11.5%, as compared to earnings per diluted share of $3.56 for the year ended June 30, 2021.

“We generated record loan growth of $1 billion while increasing our net interest margin by 17 basis points linked quarter to 4.19%,” stated Greg Garrabrants, President and Chief Executive Officer of Axos. “Strong growth in deposits from Axos Securities contributed to our non-interest bearing deposits increasing by $899 million to over $5 billion at June 30, 2022. Our strong loan growth outlook and the diversity of our core funding gives us confidence that our fiscal year 2023 net interest margin will be at or above the high end of our long-term target of 3.80% to 4.00%.”

“Record loan originations and the growth in the net interest margin resulted in a 10.6% linked quarter increase in our net interest income,” stated Derrick Walsh, Chief Financial Officer of Axos. “Our credit quality remains good, with 2 basis points of net annualized charge-offs to average loans and a 19 basis point sequential decline in our non-performing assets to total assets ratio. Excluding an $11.0 million charge primarily for the one-time resolution of a contractual claim, our efficiency ratio for the Banking Business Segment would have been 40.6%. We will continue to invest in our businesses while maintaining a best-in-class operating efficiency at Axos Bank.”

---

Other Highlights:

•Net loans, driven by commercial growth, increased $1.0 billion, or 30.4% annualized, between March 31, 2022 and June 30, 2022

•Deposits increased $1.2 billion, or 38% annualized, between March 31, 2022 and June 30, 2022

•Net interest margin was 4.19% for the three months ended June 30, 2022, up 27 basis points from 3.92% for the three months ended June 30, 2021

•Percentage of non-performing loans relative to total loans was 0.83% at June 30, 2022, down from 1.05% at March 31, 2022

•Book value increased to $27.48 per share, up 16.3% compared to June 30, 2021

•Earnings per diluted share outstanding were $0.96 for the three months ended June 30, 2022, up 6.7% from $0.90 in the corresponding period a year ago

•Adjusted EPS was $1.12 for the three months ended June 30, 2022, up 21.7% year-over-year

Fourth Quarter Fiscal 2022 Income Statement Summary

Net income was $57.9 million and diluted earnings per share was $0.96 for the three months ended June 30, 2022 compared to net income of $54.3 million and diluted earnings per share of $0.90 for the three months ended June 30, 2021. Net interest income increased to $165.4 million, up 16.8% for the three months ended June 30, 2022 compared to the three months ended June 30, 2021, primarily due to an increase in average earning assets, and an increase in non-interest bearing demand deposits.

The provision for credit losses was $6.0 million for the three months ended June 30, 2022 compared to $1.3 million for the three months ended June 30, 2021, primarily due to growth in the loan portfolio.

Non-interest income increased to $27.1 million, up 61.3%, for the three months ended June 30, 2022 from $16.8 million for the three months ended June 30, 2021. The net increase was primarily due to a $6.7 million increase in broker-dealer fee income driven by custody and mutual fund fees earned by the AAS division during fiscal 2022, $1.5 million increase in banking and service fees, $1.4 million increase in prepayment penalty fee income and $0.5 million increase in mortgage banking income.

Non-interest expense, comprised of various operating expenses, increased 28.0% to $104.8 million for the three months ended June 30, 2022 from $81.9 million for the three months ended June 30, 2021. The net increase was primarily driven by an increase of $11.7 million in general and administrative expenses, for an $11.0 million charge due largely to a one-time resolution of a contractual claim. We also had increases in salaries and benefits of $6.3 million and professional services of $2.7 million, largely resulting from growth at the Bank as well as the addition of AAS operations. Federal Deposit Insurance Corporation and regulatory fees increased by $1.8 million, due to growth at the Bank and increased assessment rates.

Our effective tax rate was 29.15% for the three months ended June 30, 2022 compared to 27.99% for the three months ended June 30, 2021. The lower tax rate for the three months ended June 30, 2021, was primarily due to tax benefits from stock compensation during the quarter ended June 30, 2021.

---

Full Year Fiscal 2022 Highlights

•Net income reached a record $240.7 million, an increase of 11.6% compared to the fiscal year ended June 30, 2021

•Earnings per diluted share outstanding were $3.97, up 11.5% from $3.56 in the fiscal year ended June 30, 2021

•Loan originations for investment for the fiscal year ended June 30, 2021 were $10.4 billion, up 60.18% compared to the fiscal year ended June 30, 2021

•Net interest margin for the Banking Business segment increased to 4.36% for the fiscal year ended June 30, 2022 compared to 4.11% for the fiscal year ended June 30, 2021

•Efficiency for the Banking Business segment was 41.61% for the fiscal year ended June 30, 2022 compared to 41.95% for the fiscal year ended June 30, 2021

•Return on average assets remained strong at 1.57% for the fiscal year ended June 30, 2022

Balance Sheet Summary

Axos’ total assets increased $3.2 billion or 22.4% to $17.5 billion at June 30, 2022 from June 30, 2021, primarily due to an increase of $2.7 billion in loans held for investment and an increase of $0.5 billion in total cash held. Total liabilities increased $2.9 billion to $15.8 billion at June 30, 2022 from June 30, 2021, primarily due to an increase of $3.1 billion in deposits. Stockholders’ equity increased by $242.0 million, or 17.3%, to $1.6 billion at June 30, 2022 from $1.4 billion at June 30, 2021. The increase was primarily the result of net income of $240.7 million.

The Bank’s Tier 1 core capital to adjusted average assets ratio was 10.65% at June 30, 2022 compared to 9.45% at June 30, 2021.

Conference Call

A conference call and webcast will be held on Thursday, August 4, 2022 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: 888-645-4404. 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 September 4, 2022, at the Axos Financial website and telephonically by dialing toll-free number 877-660-6853, passcode 13731605.

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 (“Axos Nevada Holding” and collectively, the “Company”). Axos Nevada Holding wholly owns its subsidiary Axos Securities, LLC, which wholly owns subsidiaries Axos Clearing LLC, a clearing broker-dealer, Axos Invest, Inc., a registered investment advisor, and Axos Invest LLC, an introducing broker-dealer. With approximately $17.5 billion in assets, Axos Financial, Inc., through Axos Bank, provides consumer and business banking products through its low-cost distribution channels and affinity partners. Axos Clearing LLC (including its business division AAS), with approximately $32 billion of assets under custody and/or administration, 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, the S&P SmallCap 600® Index, the KBW Nasdaq Financial Technology Index, and the Travillian Tech-Forward Bank Index. For more information on Axos Financial, Inc., please visit investors.axosfinancial.com.

SEGMENT REPORTING

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 and reconciliations:

			For the Three Months Ended June 30, 2022
(Dollars in thousands)			Banking Business						Securities Business						Corporate/Eliminations						Axos Consolidated
Net interest income			$	165,504					$	3,509					$	(3,603)					$	165,410
Provision for loan losses			6,000						—						—						6,000
Non-interest income			14,004						18,864						(5,768)						27,100
Non-interest expense			83,817						22,797						(1,821)						104,793
Income (Loss) before income taxes			$	89,691					$	(424)					$	(7,550)					$	81,717

			For the Three Months Ended June 30, 2021
(Dollars in thousands)			Banking Business						Securities Business						Corporate/Eliminations						Axos Consolidated
Net interest income			$	137,493					$	5,744					$	(1,583)					$	141,654
Provision for loan losses			1,250						—						—						1,250
Non-interest income			10,442						6,902						(543)						16,801
Non-interest expense			66,863						12,149						2,848						81,860
Income (Loss) before income taxes			$	79,822					$	497					$	(4,974)					$	75,345

			Twelve Months Ended June 30, 2022
(Dollars in thousands)			Banking Business						Securities Business						Corporate/Eliminations						Axos Consolidated
Net interest income			$	597,833					$	17,580					$	(8,255)					$	607,158
Provision for loan losses			18,500						—						—						18,500
Non-interest income			60,881						64,069						(11,587)						113,363
Non-interest expense			274,079						84,014						3,969						362,062
Income (Loss) before income taxes			$	366,135					$	(2,365)					$	(23,811)					$	339,959

			Twelve Months Ended June 30, 2021
(Dollars in thousands)			Banking Business						Securities Business						Corporate/Eliminations						Axos Consolidated
Net interest income			$	527,760					$	18,746					$	(7,764)					$	538,742
Provision for loan losses			23,750						—						—						23,750
Non-interest income			79,150						27,627						(1,516)						105,261
Non-interest expense			254,596						48,095						11,819						314,510
Income (Loss) before income taxes			$	328,564					$	(1,722)					$	(21,099)					$	305,743

Use of Non-GAAP Financial Measures

In addition to the results presented in accordance with 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 costs and other costs (unusual or non-recurring charges). 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 Company’s operating performance. We believe excluding the non-recurring acquisition related costs and other costs (unusual or non-recurring) 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:

			Three Months Ended												Twelve Months Ended
			June 30,												June 30,
(Dollars in thousands, except per share amounts)			2022						2021						2022						2021
Net income			$	57,896					$	54,255					$	240,716					$	215,707
Acquisition-related costs			2,745						2,161						11,355						9,826
Other costs			10,975						—						10,975						—
Income taxes			(4,000)						(605)						(6,519)						(2,894)
Adjusted earnings (Non-GAAP)			$	67,616					$	55,811					$	256,527					$	222,639
Adjusted EPS (Non-GAAP)			$	1.12					$	0.92					$	4.23					$	3.68

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 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:

									June 30,
(Dollars in thousands, except per share amounts)															2022						2021
Common stockholders’ equity															$	1,642,973					$	1,400,936
Less: mortgage servicing rights, carried at fair value															25,213						17,911
Less: goodwill and other intangible assets															156,405						115,972
Tangible common stockholders’ equity (Non-GAAP)															$	1,461,355					$	1,267,053
Common shares outstanding at end of period															59,777,949						59,317,944
Tangible book value per common share (Non-GAAP)															$	24.45					$	21.36

---

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 continue to diversify its lending and deposit franchises 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 uncertainties surrounding the severity, duration, and effects of the COVID-19 pandemic, Axos’ ability to successfully integrate acquisitions and realize the anticipated benefits of the transactions, changes in the interest rate environment, inflation, government regulation, general economic conditions, conditions in the real estate markets in which we operate, risks associated with credit quality, the outcome and effects of litigation filed against the Company 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.

Investor Relations Contact:

Johnny Lai, CFA

SVP, Corporate Development & Investor Relations

(858) 649-2218

[email protected]

---

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)

 

(Dollars in thousands)			June 30, 2022						June 30, 2021						June 30, 2020
Selected Balance Sheet Data:
Total assets			$	17,455,605					$	14,265,565					$	13,851,900
Loans—net of allowance for credit losses			14,091,061						11,414,814						10,631,349
Loans held for sale, carried at fair value			4,973						29,768						51,995
Loans held for sale, lower of cost or fair value			10,938						12,294						44,565
Allowance for credit losses - loans			148,617						132,958						75,807
Securities—trading			1,758						1,983						105
Securities—available-for-sale			262,518						187,335						187,627
Securities borrowed			338,980						619,088						222,368
Customer, broker-dealer and clearing receivables			471,857						369,815						220,266
Total deposits			13,946,422						10,815,797						11,336,694
Advances from the FHLB			117,500						353,500						242,500
Borrowings, subordinated notes and debentures			445,244						221,358						235,789
Securities loaned			474,400						728,988						255,945
Customer, broker-dealer and clearing payables			566,094						535,425						347,614
Total stockholders’ equity			1,642,973						1,400,936						1,230,846
Capital Ratios:
Equity to assets at end of period			9.41		%				9.82		%				8.89		%
Axos Financial, Inc.:
Tier 1 leverage (core) capital to adjusted average assets			9.24		%				8.82		%				8.97		%
Common equity tier 1 capital (to risk-weighted assets)			9.82		%				11.36		%				11.22		%
Tier 1 capital (to risk-weighted assets)			9.82		%				11.36		%				11.27		%
Total capital (to risk-weighted assets)			12.68		%				13.78		%				12.64		%
Axos Bank:
Tier 1 leverage (core) capital to adjusted average assets			10.65		%				9.45		%				9.25		%
Common equity tier 1 capital (to risk-weighted assets)			11.24		%				12.28		%				11.79		%
Tier 1 capital (to risk-weighted assets)			11.24		%				12.28		%				11.79		%
Total capital (to risk-weighted assets)			12.01		%				13.21		%				12.62		%
Axos Clearing, LLC:
Net capital			$	38,915					$	35,950					$	34,022
Excess capital			$	32,665					$	27,904					$	29,450
Net capital as a percentage of aggregate debit items			12.45		%				8.94		%				14.88		%
Net capital in excess of 5% aggregate debit items			$	23,290					$	15,836					$	22,593

---

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 Fiscal year ending
			June 30,												June 30,
(Dollars in thousands, except per share data)			2022						2021						2022						2021
Selected Income Statement Data:
Interest and dividend income			$	184,161					$	156,921					$	659,728					$	617,863
Interest expense			18,751						15,267						52,570						79,121
Net interest income			165,410						141,654						607,158						538,742
Provision for credit losses			6,000						1,250						18,500						23,750
Net interest income after provision for loan losses			159,410						140,404						588,658						514,992
Non-interest income			27,100						16,801						113,363						105,261
Non-interest expense			104,793						81,860						362,062						314,510
Income before income tax expense			81,717						75,345						339,959						305,743
Income tax expense			23,821						21,090						99,243						90,036
Net income			$	57,896					$	54,255					$	240,716					$	215,707
Net income attributable to common stock			$	57,896					$	54,255					$	240,716					$	215,518
Per Share Data:
Net income:
Basic			$	0.97					$	0.92					$	4.04					$	3.64
Diluted			$	0.96					$	0.90					$	3.97					$	3.56
Adjusted earnings (Non-GAAP)			$	1.12					$	0.92					$	4.23					$	3.68
Book value			$	27.48					$	23.62					$	27.48					$	23.62
Tangible book value (Non-GAAP)			$	24.45					$	21.36					$	24.45					$	21.36
Weighted average number of shares outstanding:
Basic			59,665,041						59,241,753						59,523,626						59,229,495
Diluted			60,508,304						60,546,574						60,610,954						60,519,611
Common shares outstanding at end of period			59,777,949						59,317,944						59,777,949						59,317,944
Common shares issued at end of period			68,859,722						68,069,321						68,859,722						68,069,321
Performance Ratios and Other Data:
Loan originations for investment			$	3,152,064					$	2,041,324					$	10,366,796					$	6,471,864
Loan originations for sale			$	86,873					$	259,017					$	656,487					$	1,608,700
Return on average assets			1.40		%				1.46		%				1.57		%				1.52		%
Return on average common stockholders’ equity			14.13		%				15.56		%				15.61		%				16.51		%
Interest rate spread1			3.86		%				3.73		%				3.91		%				3.70		%
Net interest margin2			4.19		%				3.92		%				4.13		%				3.92		%
Net interest margin2 - Banking Business Segment only			4.45		%				4.16		%				4.36		%				4.11		%
Efficiency ratio3			54.44		%				51.66		%				50.25		%				48.84		%
Efficiency ratio3 - Banking Business Segment only			46.69		%				45.20		%				41.61		%				41.95		%
Asset Quality Ratios:
Net annualized charge-offs to average loans			0.02		%				0.22		%				0.02		%				0.12		%
Non-performing loans to total loans			0.83		%				1.26		%				0.83		%				1.26		%
Non-performing assets to total assets			0.68		%				1.07		%				0.68		%				1.07		%
Allowance for credit losses to total loans held for investment at end of period			1.04		%				1.15		%				1.04		%				1.15		%
Allowance for credit losses to non-performing loans			125.74		%				91.57		%				125.74		%				91.57		%

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.

AXOS FINANCIAL, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(Unaudited)

			At June 30,
(Dollars in thousands, except par and stated value)			2022						2021
ASSETS
Cash and cash equivalents			$	1,202,587					$	715,624
Cash segregated for regulatory purposes			372,112						322,153
Total cash, cash equivalents, cash segregated			1,574,699						1,037,777
Securities:
Trading			1,758						1,983
Available-for-sale			262,518						187,335
Stock of regulatory agencies			20,368						19,995
Loans held for sale, carried at fair value			4,973						29,768
Loans held for sale, lower of cost or fair value			10,938						12,294
Loans—net of allowance for credit losses of $148,617 as of June 2022 and $132,958 as of June 2021			14,091,061						11,414,814
Mortgage servicing rights, carried at fair value			25,213						17,911
Other real estate owned and repossessed vehicles			798						6,782
Securities borrowed			338,980						619,088
Customer, broker-dealer and clearing receivables			471,857						369,815
Goodwill and other intangible assets—net			156,405						115,972
Other assets			496,037						432,031
TOTAL ASSETS			$	17,455,605					$	14,265,565
LIABILITIES AND STOCKHOLDERS’ EQUITY
Deposits:
Non-interest bearing			$	5,033,970					$	2,474,424
Interest bearing			8,912,452						8,341,373
Total deposits			13,946,422						10,815,797
Advances from the Federal Home Loan Bank			117,500						353,500
Borrowings, subordinated notes and debentures			445,244						221,358
Securities loaned			474,400						728,988
Customer, broker-dealer and clearing payables			566,094						535,425
Accounts payable and accrued liabilities and other liabilities			262,972						209,561
Total liabilities			15,812,632						12,864,629
STOCKHOLDERS’ EQUITY:
Common stock—$0.01 par value; 150,000,000 shares authorized, 68,859,722 shares issued and 59,777,949 shares outstanding as of June 2022; 68,069,321 shares issued and 59,317,944 shares outstanding as of June 2021			689						681
Additional paid-in capital			453,784						432,550
Accumulated other comprehensive income (loss)—net of tax			(2,933)						2,507
Retained earnings			1,428,444						1,187,728
Treasury stock, at cost; 9,081,773 shares as of June 2022 and 8,751,377 shares as of June 2021			(237,011)						(222,530)
Total stockholders’ equity			1,642,973						1,400,936
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY			$	17,455,605					$	14,265,565

S-1

---

AXOS FINANCIAL, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

			For the Quarters Ended June 30,
(Dollars in thousands, except earnings per share)			2022						2021
INTEREST AND DIVIDEND INCOME:
Loans, including fees			$	174,110					$	147,965
Securities borrowed and customer receivables			4,462						6,270
Investments			5,589						2,686
Total interest and dividend income			184,161						156,921
INTEREST EXPENSE:
Deposits			11,179						10,846
Advances from the Federal Home Loan Bank			1,663						982
Securities loaned			503						664
Other borrowings			5,406						2,775
Total interest expense			18,751						15,267
Net interest income			165,410						141,654
Provision for credit losses			6,000						1,250
Net interest income, after provision for credit losses			159,410						140,404
NON-INTEREST INCOME:
Prepayment penalty fee income			4,230						2,877
Gain on sale - other			59						(213)
Mortgage banking income			3,439						2,895
Broker-dealer fee income			13,064						6,386
Banking and service fees			6,308						4,856
Total non-interest income			27,100						16,801
NON-INTEREST EXPENSE:
Salaries and related costs			43,541						37,209
Data processing			13,594						12,947
Depreciation and amortization			6,022						6,211
Professional services			7,649						4,901
Advertising and promotional			3,449						3,612
Occupancy and equipment			3,480						4,163
Broker-dealer clearing charges			3,940						3,166
FDIC and regulatory fees			3,967						2,203
General and administrative expense			19,151						7,448
Total non-interest expense			104,793						81,860
INCOME BEFORE INCOME TAXES			81,717						75,345
INCOME TAXES			23,821						21,090
NET INCOME			$	57,896					$	54,255
NET INCOME ATTRIBUTABLE TO COMMON STOCK			$	57,896					$	54,255
COMPREHENSIVE INCOME			$	56,589					$	54,469
Basic earnings per share			$	0.97					$	0.92
Diluted earnings per share			$	0.96					$	0.90

S-2

---

AXOS FINANCIAL, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

			Year Ended June 30,
(Dollars in thousands, except earnings per share)			2022						2021						2020
INTEREST AND DIVIDEND INCOME:
Loans, including fees			$	626,628					$	584,410					$	582,748
Securities borrowed and customer receivables			20,512						20,466						16,585
Investments			12,588						12,987						23,506
Total interest and dividend income			659,728						617,863						622,839
INTEREST EXPENSE:
Deposits			33,620						60,529						126,916
Advances from the Federal Home Loan Bank			4,625						4,672						11,988
Securities loaned			1,124						1,496						679
Other borrowings			13,201						12,424						5,645
Total interest expense			52,570						79,121						145,228
Net interest income			607,158						538,742						477,611
Provision for credit losses			18,500						23,750						42,200
Net interest income, after provision for credit losses			588,658						514,992						435,411
NON-INTEREST INCOME:
Prepayment penalty fee income			13,303						7,166						5,993
Gain on sale - other			165						491						6,871
Mortgage banking income			19,033						42,150						20,646
Broker-dealer fee income			52,110						26,317						23,210
Banking and service fees			28,752						29,137						46,267
Total non-interest income			113,363						105,261						102,987
NON-INTEREST EXPENSE:
Salaries and related costs			167,390						152,576						144,341
Data processing			50,159						40,719						30,671
Depreciation and amortization			24,596						24,124						24,443
Professional services			22,482						22,241						11,095
Advertising and promotional			13,580						14,212						14,523
Occupancy and equipment			13,745						13,402						12,059
Broker-dealer clearing charges			15,184						11,152						8,210
FDIC and regulatory fees			11,823						10,603						5,538
General and administrative expense			43,103						25,481						24,886
Total non-interest expense			362,062						314,510						275,766
INCOME BEFORE INCOME TAXES			339,959						305,743						262,632
INCOME TAXES			99,243						90,036						79,194
NET INCOME			$	240,716					$	215,707					$	183,438
NET INCOME ATTRIBUTABLE TO COMMON STOCK			$	240,716					$	215,518					$	183,129
COMPREHENSIVE INCOME			$	235,276					$	219,151					$	182,485
Basic earnings per share			$	4.04					$	3.64					$	3.01
Diluted earnings per share			$	3.97					$	3.56					$	2.98

S-3

---

AXOS FINANCIAL, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited)

			Year Ended June 30,
(Dollars in thousands)			2022						2021						2020
NET INCOME			$	240,716					$	215,707					$	183,438
Net unrealized gain (loss) from available-for-sale securities, net of tax expense (benefit) of $(2,416), $1,495, and $(381) for the years ended June 30, 2022, 2021 and 2020, respectively.			(5,440)						3,444						(953)
Other comprehensive income (loss)			$	(5,440)					$	3,444					$	(953)
COMPREHENSIVE INCOME			$	235,276					$	219,151					$	182,485

S-4

---

AXOS FINANCIAL, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

(Unaudited)

			Preferred Stock												Common Stock																								Additional Paid-in Capital						Retained Earnings						Accumulated Other Comprehensive Income (Loss), Net of Income Tax						Treasury Stock						Total
															Number of Shares
(Dollars in thousands)			Shares						Amount						Issued						Treasury						Outstanding						Amount
Balance as of June 30, 2019			515						$	5,063					66,563,922						(5,435,105)						61,128,817						$	666					$	389,945					$	826,170					$	16					$	(148,810)					$	1,073,050
Net income			—						—						—						—						—						—						—						183,438						—						—						183,438
Other comprehensive income (loss)			—						—						—						—						—						—						—						—						(953)						—						(953)
Cash dividends on preferred stock			—						—						—						—						—						—						—						(309)						—						—						(309)
Purchase of treasury stock			—						—						—						(1,970,464)						(1,970,464)						—						—						—						—						(38,858)						(38,858)
Stock-based compensation expense and restricted stock unit vesting			—						—						759,131						(304,849)						454,282						7						21,928						—						—						(7,457)						14,478
Balance as of June 30, 2020			515						$	5,063					67,323,053						(7,710,418)						59,612,635						$	673					$	411,873					$	1,009,299					$	(937)					$	(195,125)					$	1,230,846
Cumulative effect of change in accounting principle net of tax, adoption of ASU No. 2016-13			—						—						—						—						—						—						—						(37,088)						—						—						(37,088)
Net income			—						—						—						—						—						—						—						215,707						—						—						215,707
Other comprehensive income (loss)			—						—						—						—						—						—						—						—						3,444						—						3,444
Cash dividends on preferred stock			—						—						—						—						—						—						—						(103)						—						—						(103)
Preferred stock - Series A redemption			(515)						(5,063)						—						—						—						—						—						(87)						—						—						(5,150)
Purchase of treasury stock			—						—						—						(753,597)						(753,597)						—						—						—						—						(16,757)						(16,757)
Stock-based compensation expense and restricted stock unit vesting			—						—						746,268						(287,362)						458,906						8						20,677						—						—						(10,648)						10,037
Balance as of June 30, 2021			—						$	—					68,069,321						(8,751,377)						59,317,944						$	681					$	432,550					$	1,187,728					$	2,507					$	(222,530)					$	1,400,936
Net income			—						—						—						—						—						—						—						240,716						—						—						240,716
Other comprehensive income (loss)			—						—						—						—						—						—						—						—						(5,440)						—						(5,440)
Stock-based compensation expense and restricted stock unit vesting			—						—						790,401						(330,396)						460,005						8						21,234						—						—						(14,481)						6,761
Balance as of June 30, 2022			—						$	—					68,859,722						(9,081,773)						59,777,949						$	689					$	453,784					$	1,428,444					$	(2,933)					$	(237,011)					$	1,642,973

S-5

---

AXOS FINANCIAL, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
			Year Ended June 30,
(Dollars in thousands)			2022						2021						2020
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income			$	240,716					$	215,707					$	183,438
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Accretion and amortization on securities, net			(423)						(365)						291
Net accretion of discounts on loans			(7,249)						(7,050)						(35,493)
Amortization of borrowing costs			706						1,569						208
Amortization of operating lease right of use asset			10,899						10,598						10,543
Stock-based compensation expense			21,242						20,685						21,935
Trading activity			225						(1,878)						1,217
Provision for credit losses			18,500						23,750						42,200
Deferred income taxes			(9,400)						(8,828)						(6,551)
Origination of loans held for sale			(656,487)						(1,608,700)						(1,601,579)
Unrealized (gain) loss on loans held for sale			733						1,469						(1,360)
Gain on sales of loans held for sale			(19,198)						(42,641)						(27,517)
Proceeds from sale of loans held for sale			696,832						1,671,515						1,614,379
Amortization and change in fair value of mortgage servicing rights			(2,228)						6,319						5,806
(Gain) loss on sale of other real estate and foreclosed assets			(458)						(201)						(449)
Depreciation and amortization			24,596						24,124						24,443
Net changes in assets and liabilities which provide (use) cash:
Securities borrowed			280,108						(396,720)						(77,662)
Customer, broker-dealer and clearing receivables			(98,365)						(149,549)						(17,074)
Other assets			(116,202)						(7,259)						(36,979)
Securities loaned			(254,588)						473,043						57,589
Customer, broker-dealer and clearing payables			30,669						187,811						109,010
Accounts payable and other liabilities			45,382						(817)						17,723
Net cash provided by operating activities			$	206,010					$	412,582					$	284,118
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of investment securities			(143,733)						(122,338)						(304,930)
Proceeds from sales of securities			75,023						—						—
Proceeds from repayment of securities			61,117						74,667						325,704
Purchase of stock of regulatory agencies			(54,350)						(305)						(55,870)
Proceeds from redemption of stock of regulatory agencies			54,350						920						55,536
Origination of loans held for investment			(10,325,104)						(5,761,303)						(6,573,568)
Proceeds from sale of loans and leases held for investment			106,324						80,049						37,300
Mortgage warehouse loans activity, net			333,562						(139,806)						(172,319)
Proceeds from sales of other real estate owned and repossessed assets			8,654						1,586						2,241
Acquisition of business activity, net of cash paid			(54,597)						—						—
Purchases of loans, net of discounts and premiums			(33,085)						(3,619)						—
Principal repayments on loans			7,220,931						5,013,817						5,349,800
Purchases of furniture, equipment, software and intangibles			(21,504)						(10,437)						(12,333)
Net cash used in investing activities			$	(2,772,412)					$	(866,769)					$	(1,348,439)
Continued on Next Page
CASH FLOWS FROM FINANCING ACTIVITIES:
Net increase (decrease) in deposits			3,130,625						(520,897)						2,353,521
Proceeds from the Federal Home Loan Bank term advances			—						—						65,000
Repayments of the Federal Home Loan Bank term advances			(50,000)						(70,000)						(55,000)
Net (repayment) proceeds of Federal Home Loan Bank other advances			(186,000)						181,000						(226,000)
Redemption of subordinated notes			—						(51,000)						—
Repayment of Paycheck Protection Program Liquidity Facility advances			—						(151,952)						—
Proceeds from Paycheck Protection Program Liquidity Facility advances			—						—						151,952
Net (repayment) proceeds of other borrowings			75,300						14,700						(85,300)
Tax payments related to settlement of restricted stock units			(14,481)						(10,648)						(7,457)
Repurchase of treasury stock			—						(16,757)						(38,858)
Redemption of preferred stock, Series A			—						(5,150)						—
Cash dividends paid on preferred stock			—						(103)						(386)
Payment of debt issuance costs			(2,120)						(2,748)						—
Proceeds from issuance of subordinated notes			150,000						175,000						—
Net cash provided by financing activities			$	3,103,324					$	(458,555)					$	2,157,472
NET CHANGE IN CASH AND CASH EQUIVALENTS			536,922						(912,742)						1,093,151
CASH AND CASH EQUIVALENTS—Beginning of year			1,037,777						1,950,519						857,368
CASH AND CASH EQUIVALENTS—End of year			$	1,574,699					$	1,037,777					$	1,950,519
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Interest paid on interest-bearing liabilities			$	50,269					$	77,995					$	145,452
Income taxes paid			99,701						92,506						80,430
Transfers to other real estate and repossessed vehicles			2,134						1,903						1,315
Transfers from loans and leases held for investment to loans held for sale			105,884						71,136						141,849
Transfers from loans held for sale to loans and leases held for investment			3,098						29,616						—
Securities transferred from available-for-sale portfolio to other assets			—						70,751						17,482
Loans held for investment sold, cash not received			—						—						61,029
Operating lease liabilities for obtaining right of use assets			16,539						—						82,950
Impact of adoption of ASC 326 on retained earnings			—						37,088						—

S-6

---

LOANS & ALLOWANCE FOR CREDIT LOSSES

The following table sets forth the composition of the loan portfolio as of the dates indicated:

(Unaudited) (Dollars in thousands)			June 30, 2022						June 30, 2021
Single Family - Mortgage & Warehouse			$	3,988,462					$	4,359,472
Multifamily and Commercial Mortgage			2,877,680						2,470,454
Commercial Real Estate			4,781,044						3,180,453
Commercial & Industrial - Non-RE			2,028,128						1,123,869
Auto & Consumer			567,228						362,180
Other			11,134						58,316
Total gross loans			14,253,676						11,554,744
Allowance for credit losses - loans			(148,617)						(132,958)
Unaccreted premiums (discounts) and loan fees			(13,998)						(6,972)
Total net loans			$	14,091,061					$	11,414,814

S-7

---

SECURITIES

The amortized cost, carrying amount and fair value for the trading and available for sale securities at June 30, 2022 and June 30, 2021 were:

			June 30, 2022
			Trading						Available for sale
(Unaudited) (Dollars in thousands)			Fair Value						Amortized Cost						Unrealized Gains						Unrealized Losses						Fair Value
Mortgage-backed securities (MBS):
U.S agencies1			$	—					$	27,722					$	9					$	(2,406)					$	25,325
Non-agency2			—						187,616						1,832						(2,634)						186,814
Total mortgage-backed securities			—						215,338						1,841						(5,040)						212,139
Non-MBS:
Municipal			1,758						3,529						—						(281)						3,248
Asset-backed securities and structured notes			—						47,000						131						—						47,131
Total Non-MBS			1,758						50,529						131						(281)						50,379
Total debt securities			$	1,758					$	265,867					$	1,972					$	(5,321)					$	262,518
			June 30, 2021
			Trading						Available for sale
(Unaudited) (Dollars in thousands)			Fair Value						Amortized Cost						Unrealized Gains						Unrealized Losses						Fair Value
Mortgage-backed securities (MBS):
U.S agencies1			$	—					$	23,639					$	420					$	(146)					$	23,913
Non-agency2			—						65,174						2,862						(421)						67,615
Total mortgage-backed securities			—						88,813						3,282						(567)						91,528
Non-MBS:
Municipal			1,983						3,466						99						—						3,565
Asset-backed securities and structured notes			—						90,549						1,693						—						92,242
Total Non-MBS			1,983						94,015						1,792						—						95,807
Total debt securities			$	1,983					$	182,828					$	5,074					$	(567)					$	187,335

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 Alt-A or pay-option ARM mortgages.

S-8

---

DEPOSITS

The following table sets forth the composition of deposits by type and weighted average interest rate as of the dates indicated:

(Unaudited)			June 30, 2022												June 30, 2021
(Dollars in thousands)			Amount						Rate1						Amount						Rate1
Non-interest bearing			$	5,033,967					—		%				$	2,474,424					—		%
Interest bearing:
Demand			3,611,891						0.61		%				3,369,845						0.15		%
Savings			4,245,555						0.95		%				3,458,687						0.21		%
Total interest-bearing demand and savings			7,857,446						0.79		%				6,828,532						0.18		%
Time deposits:
$250 and under			651,392						1.22		%				1,070,139						1.30		%
Greater than $250			403,616						1.41		%				442,702						1.03		%
Total time deposits			1,055,008						1.25		%				1,512,841						1.22		%
Total interest bearing2			8,912,454						0.85		%				8,341,373						0.37		%
Total deposits			$	13,946,421					0.54		%				$	10,815,797					0.29		%

1. Based on weighted-average stated interest rates at end of period.

2. The total interest-bearing includes brokered deposits of $1,032.7 million and $621.4 million as of June 30, 2022 and June 30, 2021, respectively, of which $250.0 million and $380.0 million, respectively, are time deposits classified as $250 and under.

The number of deposit accounts at the end of each of the last two fiscal years is set forth below:

			At June 30,
			2022						2021
Non-interest-bearing			42,372						36,726
Checking and savings accounts			344,593						336,068
Time deposits			8,734						12,815
Total number of deposit accounts			395,699						385,609

S-9

---

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,
			2022																		2021
(Unaudited) (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			$	13,706,238					$	174,110					5.08		%				$	11,485,248					$	147,965					5.15		%
Interest-earning deposits in other financial institutions			1,239,655						2,597						0.84		%				1,930,140						703						0.15		%
Mortgage-backed and other investment securities4			241,300						2,648						4.39		%				158,221						1,376						3.48		%
Securities borrowed and margin lending			592,234						4,462						3.01		%				864,702						6,270						2.90		%
Stock of the regulatory agencies			24,852						344						5.54		%				20,520						607						11.83		%
Total interest-earning assets			15,804,279						184,161						4.66		%				14,458,831						156,921						4.34		%
Non-interest-earning assets			794,171																		438,287
Total assets			$	16,598,450																	$	14,897,118
Liabilities and Stockholders’ Equity:
Interest-bearing demand and savings			$	7,007,304					$	8,379					0.48		%				$	7,441,814					$	5,118					0.28		%
Time deposits			1,012,705						2,800						1.11		%				1,632,525						5,728						1.40		%
Securities loaned			408,416						503						0.49		%				412,385						664						0.64		%
Advances from the FHLB			543,247						1,663						1.22		%				171,808						982						2.29		%
Borrowings, subordinated notes and debentures			448,754						5,406						4.82		%				274,664						2,775						4.04		%
Total interest-bearing liabilities			9,420,426						18,751						0.80		%				9,933,196						15,267						0.61		%
Non-interest-bearing demand deposits			4,714,018																		2,586,766
Other non-interest-bearing liabilities			824,704																		981,989
Stockholders’ equity			1,639,302																		1,395,167
Total liabilities and stockholders’ equity			$	16,598,450																	$	14,897,118
Net interest income									$	165,410																	$	141,654
Interest rate spread6															3.86		%																3.73		%
Net interest margin7															4.19		%																3.92		%

1 Average balances are obtained from daily data.

2 Annualized.

3 Loans include loans held for sale, loan premiums and unearned fees.

4 Interest income includes reductions for amortization of loan and investment securities premiums and earnings from accretion of discounts and loan fees. Loans include average balances of $26.1 million and $26.9 million of Community Reinvestment Act loans which are taxed at a reduced rate for the 2022 and 2021 three-month periods respectively.

5 Margin lending is the significant component of the asset titled customer, broker-dealer and clearing receivables on the unaudited condensed 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 net interest income as a percentage of average interest-earning assets.

S-10

---

AVERAGE BALANCES, NET INTEREST INCOME, YIELDS EARNED AND RATES PAID

The following tables set forth, for the periods indicated, 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,
			2022																		2021																		2020
(Unaudited) (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			$	12,577,397					$	626,628					4.98		%				$	11,332,020					$	584,410					5.16		%				$	10,149,867					$	582,748					5.74		%
Interest-earning deposits in other financial institutions			1,233,983						4,501						0.36		%				1,600,811						2,185						0.14		%				833,612						10,906						1.31		%
Mortgage-backed and other investment securities3			174,651						6,952						3.98		%				192,420						9,560						4.97		%				217,598						11,061						5.08		%
Securities borrowed and margin lending4			687,363						20,512						2.98		%				613,735						20,466						3.33		%				362,063						16,585						4.58		%
Stock of the regulatory agencies			21,844						1,135						5.20		%				20,588						1,242						6.03		%				28,776						1,539						5.35		%
Total interest-earning assets			14,695,238						659,728						4.49		%				13,759,574						617,863						4.49		%				11,591,916						622,839						5.37		%
Non-interest-earning assets			658,194																		394,085																		395,789
Total assets			$	15,353,432																	$	14,153,659																	$	11,987,705
Liabilities and Stockholders’ Equity:
Interest-bearing demand and savings			$	6,762,705					$	20,053					0.30		%				$	7,204,698					$	29,031					0.40		%				$	4,844,700					$	66,883					1.38		%
Time deposits			1,226,774						13,567						1.11		%				1,825,795						31,498						1.73		%				2,482,151						60,033						2.42		%
Securities loaned			469,051						1,124						0.24		%				412,385						1,496						0.36		%				247,420						679						0.27		%
Advances from the FHLB			349,796						4,625						1.32		%				211,077						4,672						2.21		%				747,358						11,988						1.60		%
Borrowings, subordinated notes and debentures			310,454						13,201						4.25		%				340,699						12,424						3.65		%				103,652						5,645						5.45		%
Total interest-bearing liabilities			9,118,780						52,570						0.58		%				9,994,654						79,121						0.79		%				8,425,281						145,228						1.72		%
Non-interest-bearing demand deposits			3,929,457																		2,182,009																		1,990,005
Other non-interest-bearing liabilities			762,833																		671,581																		397,506
Stockholders’ equity			1,542,362																		1,305,415																		1,174,913
Total liabilities and stockholders’ equity			$	15,353,432																	$	14,153,659																	$	11,987,705
Net interest income									$	607,158																	$	538,742																	$	477,611
Interest rate spread5															3.91		%																3.70		%																3.65		%
Net interest margin6															4.13		%																3.92		%																4.12		%

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 investment securities premiums and earnings from accretion of discounts and loan fees. Loans include average balances of $26.4 million,, $27.2 million, and $28.0 million of Community Reinvestment Act loans which are taxed at a reduced rate for the 2022 2021, and 2020 fiscal years respectively.

4 Margin lending is the significant component of the asset titled customer, broker-dealer and clearing receivables on the unaudited condensed consolidated balance sheets.

5 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.

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

S-11

---

AVERAGE BALANCES, NET INTEREST INCOME, YIELDS EARNED AND RATES PAID

BANKING BUSINESS

The following table presents our Banking segment’s 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, 2022 and 2021:

			For the Three Months Ended
			June 30,
			2022																		2021
(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			$	13,672,947					$	173,334					5.07		%				$	11,444,379					$	147,235					5.15		%
Interest-earning deposits in other financial institutions			929,695						1,993						0.86		%				1,579,835						413						0.10		%
Mortgage-backed and other investment securities4			265,080						2,745						4.14		%				182,874						1,505						3.29		%
Stock of the regulatory agencies			21,734						344						6.33		%				17,250						301						6.98		%
Total interest-earning assets			14,889,456						178,416						4.79		%				13,224,338						149,454						4.52		%
Non-interest-earning assets			298,721																		217,543
Total assets			$	15,188,177																	$	13,441,881
Liabilities and Stockholders’ Equity:
Interest-bearing demand and savings			$	7,148,061					$	8,449					0.47		%				$	7,553,737					$	5,213					0.28		%
Time deposits			1,012,705						2,800						1.11		%				1,632,525						5,728						1.40		%
Advances from the FHLB			543,247						1,663						1.22		%				171,808						982						2.29		%
Borrowings, subordinated notes and debentures			33						—						—		%				44,983						40						0.36		%
Total interest-bearing liabilities			8,704,046						12,912						0.59		%				9,403,053						11,963						0.51		%
Non-interest-bearing demand deposits			4,770,915																		2,629,016
Other non-interest-bearing liabilities			139,753																		104,885
Stockholders’ equity			1,573,463																		1,304,927
Total liabilities and stockholders’ equity			$	15,188,177																	$	13,441,881
Net interest income									$	165,504																	$	137,491
Interest rate spread5															4.20		%																4.01		%
Net interest margin6															4.45		%																4.16		%

1. Average balances are obtained from daily data.

2. Annualized.

3. Loans include loans held for sale, loan premiums and unearned fees.

4. Interest income includes reductions for amortization of loan and investment securities premiums and earnings from accretion of discounts and loan fees. Loans include average balances of $26.1 million and $26.9 million of Community Reinvestment Act loans which are taxed at a reduced rate for the 2022 and 2021 three-month periods respectively.

5 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.

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

S-12

---

SECURITIES BUSINESS

Selected information concerning the Securities segment follows as of and for the three months ended:

(Dollars in thousands)			June 30, 2022						June 30, 2021
Compensation as a % of net revenue			38.0		%				32.4		%
FDIC insured program balances at banks (end of period)			$	3,452,358					$	730,248
Customer margin balances (end of period)			$	285,894					$	327,148
Customer funds on deposit, including short credits (end of period)			$	372,112					$	322,153
Clearing:
Total tickets			1,236,292						2,053,362
Correspondents (end of period)			71						69
Securities lending:
Interest-earning assets – stock borrowed (end of period)			$	338,980					$	619,088
Interest-bearing liabilities – stock loaned (end of period)			$	474,400					$	728,988

S-13

Axos Q4 Fiscal 2022 Earnings Supplement August 4, 2022 NYSE: AX

---

 

1 Loan Growth by Category for Fourth Quarter Ended June 30, 2022 Loans Single Family Mortgage & Warehouse Multifamily & Commercial Mortgage Commercial Real Estate Auto & Consumer Jumbo Mortgage Multifamily Small Balance Commercial Lender Finance RE SF Warehouse Lending Asset-Based Lending Auto CRE Specialty Unsecured / OD Equipment Leasing Q4 FY22 $ millions Other Q3 FY22 $3,707 281 2,085 793 4,395 386 115 493 74 11 158 (142) 5 210 293 195 8 39 7 Inc (Dec) $3,549 423 2,080 583 4,102 191 107 454 67 16 Commercial & Industrial Non-RE Lender Finance Non RE 741 676 65 1,172 998 174 $14,253 $ 13,246 $1,007 (5)

---

 

In the money +75 Bps +100 Bps +150 Bps +200 Bps Interest Rate Components of Loan and Lease Portfolio At June 30, 2022 Floor Analysis** – Variable-Rate Loans Fixed/Hybrid Years to Maturity / Repricing*Mix of Loan Repricing Types Variable 52% Hybrid 39% Fixed 9% 6,324 6,760 6,999 7,206 79% 86% 91% 95% 98% 278 597 1,671 2,901 5,572 6,701 6,717 6,774 - 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 1/2 1 2 3 5 10 20 >20 Years $M $M * -Excludes SFR Warehouse. Assumes Hybrids prepaying at 15% CPR 5% 11% 24% 43% 100%99%99%86% 5,829 **Prior to the Fed’s 75 bps Increase in the Fed Funds Rate on 7/27/22 2

---

 

Change in Allowance for Credit Losses (ACL) & Unfunded Loan Commitments Liability (UCL) ($ in millions) 143.4 (1.2) 0.4 6.0 148.6 9.7 11.0 120 125 130 135 140 145 150 155 160 165 March 31, 2022 ACL + UCL Gross Charge-offs Provisions for credit losses Gross Recoveries June 30, 2022 ACL + UCL UCLACL 1.3 3

---

 

4 Allowance for Credit Losses (ACL) by Loan Category as of June 30, 2022 Loans Single Family - Mortgage and Warehouse Multifamily & Commercial Mortgage Commercial Real Estate Auto & Consumer Loan Balance $ millions Other ACL $ $3,988.5 2,877.7 4,781.0 567.2 11.1 ACL % Commercial & Industrial Non-RE 2,028.1 $14,253.6 14.6 69.3 14.1 0.1 30.8 $19.7 $148.6 1.04% 1.45% 0.51% 0.49% 0.28% 2.49% 1.52%

---

 

Credit Quality ($ millions) No Loans Subject to Forbearance or Deferral for Over a Year 3/31/2022 Loans O/S NPAs % Single Family-Mortgage & Warehouse $3,972.1 $113.3 2.85% Multifamily and Commercial Mortgage 2,662.5 9.7 0.36% Commercial Real Estate 4,293.0 15.0 0.36% Commercial & Industrial - Non-RE 1,780.6 0.0 0.00% Auto & Consumer 521.9 0.4 0.08% Other 16.1 0.4 2.30% Total $13,246.2 $138.8 1.05% 6/30/2022 Loans O/S NPAs % Single Family-Mortgage & Warehouse $3,988.5 $66.4 1.66% Multifamily and Commercial Mortgage 2,877.7 33.4 1.16% Commercial Real Estate 4,781.0 14.9 0.31% Commercial & Industrial - Non-RE 2,028.1 3.0 0.15% Auto & Consumer 567.2 0.4 0.07% Other 11.1 0.1 0.90% Total $14,253.6 $118.2 0.83% Change at 6/30/22 from 3/31/22 Loans O/S NPAs Single Family-Mortgage & Warehouse $16.4 ($46.9) Multifamily and Commercial Mortgage 215.2 23.7 Commercial Real Estate 488.0 (0.1) Commercial & Industrial - Non-RE 247.5 3.0 Auto & Consumer 45.3 0.0 Other (5.0) (0.3) Total $1,007.4 ($20.6) 5

---

 

6 Greg Garrabrants, President and CEO Derrick Walsh, EVP and CFO Andy Micheletti, EVP-Finance [email protected] www.axosfinancial.com Johnny Lai, SVP Corporate Development and Investor Relations Phone: 858.649.2218 Mobile: 858.245.1442 [email protected] Contact Information

---