AX 8-K
Axos Financial, Inc. (AX)
8-K
2020-07-29
For: 2020-07-29
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Added on
April 10, 2026
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): July 29, 2020
(Exact name of registrant as specified in its charter)
(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification Number) |
(Address of principal executive offices) (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 |
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):
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).
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 July 29, 2020, Axos Financial, Inc. (the “Registrant”) issued a press release announcing its fourth quarter results of operations for the period ended June 30, 2020. The press release is set forth as Exhibit 99.1 and is incorporated by reference in this Item 2.02.
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 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 | ||
99.2 | ||
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: | July 29, 2020 | By: | /s/ Andrew J. Micheletti | |
Andrew J. Micheletti | ||||
EVP and Chief Financial Officer | ||||
Axos Financial, Inc. Announces Record Net Income of $183.4 million for Fiscal 2020
Earnings Per Share for the Fourth Quarter of Fiscal 2020 up 13.6% Year-over-Year
SAN DIEGO, CA – (BUSINESS WIRE) – July 29, 2020 – 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, 2020. Net income for the quarter was $45.3 million, an increase of 11.5% over net income of $40.6 million for the quarter ended June 30, 2019. Earnings attributable to Axos’ common stockholders were $45.2 million or $0.75 per diluted share for the fourth quarter of fiscal 2020, an increase of 11.5% from $40.6 million or $0.66 per diluted share for the fourth quarter ended June 30, 2019.
Adjusted earnings and adjusted earnings per diluted common share (“adjusted EPS”), non-GAAP measures, which exclude non-cash amortization expenses, non-recurring costs related to mergers and acquisitions, and other non-recurring costs increased 11.6% to $47.1 million and 14.7% to $0.78, respectively, for the quarter ended June 30, 2020 compared to $42.2 million and $0.68, respectively, for the quarter ended June 30, 2019.
Fourth Quarter Fiscal 2020 Financial Summary:
Three Months Ended June 30, | ||||||||||
(Dollars in thousands, except per share data) | 2020 | 2019 | % Change | |||||||
Net interest income | $ | 117,272 | $ | 100,437 | 16.8 | % | ||||
Non-interest income | $ | 28,702 | $ | 23,224 | 23.6 | % | ||||
Net income | $ | 45,300 | $ | 40,634 | 11.5 | % | ||||
Adjusted Earnings (Non-GAAP)1 | $ | 47,052 | $ | 42,158 | 11.6 | % | ||||
Net income attributable to common stockholders | $ | 45,223 | $ | 40,557 | 11.5 | % | ||||
Diluted EPS | $ | 0.75 | $ | 0.66 | 13.6 | % | ||||
Adjusted EPS (Non-GAAP)1 | $ | 0.78 | $ | 0.68 | 14.7 | % | ||||
1. See “Use of Non-GAAP Financial Measures”
For the fiscal year ended June 30, 2020, net income was a record $183.4 million, an increase of 18.2% over net income of $155.1 million for the twelve months ended June 30, 2019. Earnings attributable to Axos’ common stockholders were $183.1 million or $2.98 per diluted share for the twelve months ended June 30, 2020, an increase of 18.3% from $154.8 million or $2.48 per diluted share for the twelve months ended June 30, 2019. Record earnings for the fiscal year ended June 30, 2020 were primarily the result of growth in the Bank’s loan and lease portfolio, growth in mortgage banking income and a full year’s activity in broker-dealer fee income. Operating expenses increased to support growth of the bank due to higher levels of loan originations and deposit activities.
“We delivered another strong quarter, with double digit percentage increases in net interest income and non-interest income and disciplined expense controls resulting in a 22.8% increase in our pretax income,” stated Greg Garrabrants, President and Chief Executive Officer of Axos. “We continue to grow our deposit balances while reducing our funding costs, as reflected in the $2.2 billion sequential increase in our checking and savings balances and 52 basis point decline in our interest-bearing liabilities costs. The reduction in funding costs helped drive our net interest margin higher to 3.89% compared to 3.81% in fourth quarter of 2019.”
“Excluding the H&R Block seasonal loan products, our annualized net charge-offs to total loans and leases were 5 basis points for the fourth fiscal quarter of fiscal 2020” said Andy Micheletti, Executive Vice President and Chief Financial Officer of Axos. We ended the quarter with approximately $75.8 million of loan loss reserves, representing 71 basis points of total loans and leases. We remain well-capitalized, with a Tier 1 leverage ratio of 9.25% at the bank and 8.97% at the holding company on June 30, 2020.”
Other Highlights:
• | Net interest margin was 3.89%, up 8 basis points from 3.81% for the three months ended June 30, 2019 |
• | Efficiency ratio for the Banking Business Segment was 41.02% compared to 43.21% for the three months ended June 30, 2019 |
• | Total assets reached $13.9 billion, up $2.6 billion or 23.5% compared to June 30, 2019 |
• | Loan and lease portfolio grew by $1,249.2 million or 13.3% compared to June 30, 2019 |
• | Loan and lease originations for investment for the three months ended June 30, 2020 were $1,317.8 million compared to $1,501.4 million for the quarter ended June 30, 2019, including approximately $167.2 million of Paycheck Protection Program (“PPP”) loans |
• | Loan originations for sale were up 16.4% for the three months ended June 30, 2020, to $315.3 million compared to $270.9 million for the quarter ended June 30, 2019 |
• | Deposits grew by $2,353.5 million or 26.2% compared to June 30, 2019 |
• | Strong mortgage banking results contributed to non-interest income increasing 23.6% compared to the three months ended June 30, 2019 |
• | Return on average common stockholders’ equity was 14.71% for the three months ended June 30, 2020 |
• | Total non-performing assets were 0.68% of total assets and non-performing loans and leases equal to 0.82% of total loans at June 30, 2020 |
• | Book value increased to $20.56 per share, up 17.7% compared to June 30, 2019 |
Fourth Quarter Fiscal 2020 Income Statement Summary
During the quarter ended June 30, 2020, Axos earned $45.3 million or $0.75 per diluted share compared to $40.6 million, or $0.66 per diluted share for the quarter ended June 30, 2019. Net interest income increased $16.8 million or 16.8% for the quarter ended June 30, 2020 compared to June 30, 2019, primarily due to the lower cost of deposits and borrowing resulting from interest rate reductions and increase in non-interest-bearing liabilities.
The loan and lease loss provision was $6.5 million for the quarter ended June 30, 2020 compared to $2.8 million for the quarter ended June 30, 2019. The increase was primarily due to additional provisions for changes in economic and business conditions resulting from the COVID-19 pandemic, overall loan portfolio growth, and changes in the loan mix.
For the fourth quarter ended June 30, 2020, non-interest income was $28.7 million compared to $23.2 million for the three months ended June 30, 2019. The increase year over year was primarily the result of an increase in mortgage banking fee income of $10.4 million partially offset by a decrease in banking service fees of $2.4 million and a decrease in broker-dealer fee income of $1.0 million.
Non-interest expense or operating costs increased $6.0 million to $71.5 million for the quarter ended June 30, 2020 from $65.5 million for the three months ended June 30, 2019. The increase was mainly a result of an increase in compensation expense of $3.5 million related to staffing added since June 30, 2019 to support growth of the Bank’s operations. Additional contributors to the increase in operating expenses were an increase in depreciation and amortization of $1.9 million, primarily due to the amortization of intangibles, an increase in data processing of $1.5 million, due to software initiatives and enhancements to the Bank’s core processing system, and an increase of $0.4 million in broker-dealer clearing charges.
Our effective tax rate was 33.31% for the three months ended June 30, 2020 compared to 26.55% for the three months ended June 30, 2019. The increase in the tax rate for the three months ended June 30, 2020, is primarily due to a write off of a deferred tax asset for stock compensation that isn’t expected to be realized in the future, which resulted in $2.0 million of additional expense for the three months ended June 30, 2020.
Full Year Fiscal 2020 Highlights
• | Net income reached a record $183.4 million, an increase of 18.2% compared to the fiscal year ended June 30, 2019 |
• | Loan and lease originations for investment for the fiscal year ended June 30, 2020 were $6,811.2 million, down 1.0% compared to the fiscal year ended June 30, 2019 |
• | Loan originations for sale for the fiscal year ended June 30, 2020 were $1,601.6 million, up 8.8% compared to the fiscal year ended June 30, 2019 |
• | Net interest margin for the Banking Business increased to 4.19% for the fiscal year ended June 30, 2020 compared to 4.14% for the fiscal year ended June 30, 2019 |
• | Efficiency for the Banking Business was 39.81% for the fiscal year ended June 30, 2020 compared to 40.51% for the fiscal year ended June 30, 2019 |
• | Return on average assets remained strong at 1.53% for the fiscal year ended June 30, 2020 |
Balance Sheet Summary
Axos’ total assets increased $2,631.7 million, or 23.5%, to $13,851.9 million, as of June 30, 2020, up from $11,220.2 million at June 30, 2019. The loan and lease portfolio increased $1,249.2 million on a net basis, primarily from portfolio loan and lease originations and purchases of $6,811.2 million, less principal repayments and other adjustments of $5,562.0 million. Total cash increased by $1,093.2 million primarily due to increased deposits. Total liabilities increased by $2,473.9 million, or 24.4%, to $12,621.1 million at June 30, 2020, up from $10,147.2 million at June 30, 2019. The increase in total liabilities resulted primarily from growth in deposits of $2,353.5 million. Stockholders’ equity increased by $157.8 million, or 14.7%, to $1,230.8 million at June 30, 2020 from $1,073.1 million at June 30, 2019. The increase was primarily the result of $183.4 million in net income and $14.5 million of vesting and issuance of RSUs and stock-based compensation expense, partially offset by $38.9 million of stock repurchases, $1.0 million of unrealized loss in other comprehensive income, net of tax, and $0.3 million of dividends declared on preferred stock.
The Bank’s Tier 1 core capital to adjusted average assets ratio was 9.25% at June 30, 2020.
Conference Call
A conference call and webcast will be held on Wednesday, July 29, 2020 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 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, August 29, 2020, at Axos’ website and telephonically by dialing toll-free number 877-660-6853, passcode 13706636.
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 $13.9 billion in assets, Axos Bank provides consumer and business banking products through its low-cost distribution channels and affinity partners. Axos Clearing LLC 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. For more information on Axos Bank, please visit axosbank.com.
SEGMENT REPORTING
The Company determines reportable segments based on the services offered, the significance of the services offered, the significance of those services to the Company’s financial condition and operating results and the CEO’s evaluation of the operating results of those services in deciding how to allocate
resources and assess performance. 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, 2020 | |||||||||||||||
(Dollars in thousands) | Banking Business | Securities Business | Corporate/Eliminations | Axos Consolidated | |||||||||||
Net interest income | $ | 114,264 | $ | 3,493 | $ | (485 | ) | $ | 117,272 | ||||||
Provision for loan losses | 6,500 | — | — | 6,500 | |||||||||||
Non-interest income | 23,100 | 5,730 | (128 | ) | 28,702 | ||||||||||
Non-interest expense | 56,348 | 10,869 | 4,327 | 71,544 | |||||||||||
Income (Loss) before income taxes | $ | 74,516 | $ | (1,646 | ) | $ | (4,940 | ) | $ | 67,930 | |||||
For the Three Months Ended June 30, 2019 | |||||||||||||||
(Dollars in thousands) | Banking Business | Securities Business | Corporate/Eliminations | Axos Consolidated | |||||||||||
Net interest income | $ | 96,936 | $ | 4,614 | $ | (1,113 | ) | $ | 100,437 | ||||||
Provision for loan losses | 2,800 | — | — | 2,800 | |||||||||||
Non-interest income | 16,454 | 7,001 | (231 | ) | 23,224 | ||||||||||
Non-interest expense | 49,001 | 11,152 | 5,383 | 65,536 | |||||||||||
Income (Loss) before income taxes | $ | 61,589 | $ | 463 | $ | (6,727 | ) | $ | 55,325 | ||||||
Twelve Months Ended June 30, 2020 | |||||||||||||||
(Dollars in thousands) | Banking Business | Securities Business | Corporate/Eliminations | Axos Consolidated | |||||||||||
Net interest income | $ | 464,448 | $ | 16,630 | $ | (3,467 | ) | $ | 477,611 | ||||||
Provision for loan losses | 42,200 | — | — | 42,200 | |||||||||||
Non-interest income | 80,374 | 24,817 | (2,204 | ) | 102,987 | ||||||||||
Non-interest expense | 216,895 | 43,525 | 15,346 | 275,766 | |||||||||||
Income (Loss) before income taxes | $ | 285,727 | $ | (2,078 | ) | $ | (21,017 | ) | $ | 262,632 | |||||
Twelve Months Ended June 30, 2019 | |||||||||||||||
(Dollars in thousands) | Banking Business | Securities Business | Corporate/Eliminations | Axos Consolidated | |||||||||||
Net interest income | $ | 404,500 | $ | 7,564 | $ | (3,459 | ) | $ | 408,605 | ||||||
Provision for loan losses | 27,350 | — | — | 27,350 | |||||||||||
Non-interest income | 70,917 | 12,071 | (231 | ) | 82,757 | ||||||||||
Non-interest expense | 192,588 | 34,430 | 24,188 | 251,206 | |||||||||||
Income (Loss) before income taxes | $ | 255,479 | $ | (14,795 | ) | $ | (27,878 | ) | $ | 212,806 | |||||
Use of Non-GAAP Financial Measures
In addition to the results presented in accordance with GAAP, this report 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, are not required to be uniformly applied and are not audited. Readers should be aware of these limitations and should be cautious as to their
use of such measures. Although we believe the non-GAAP financial measures disclosed in this report 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 net income without the after-tax impact of non-recurring acquisition-related costs, excess FDIC expense, and other costs (unusual or non-recurring charges), as adjusted earnings, a non-GAAP financial measure. Excess FDIC expense is defined as the higher insurance costs that we incurred associated with increased levels of short-term brokered deposits in anticipation of the acquisition of deposits from Nationwide Bank. In the fiscal year ended June 30, 2019 the other costs are due to a $15.3 million bad debt expense related to a correspondent customer of our clearing broker-dealer. 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 Bank’s operating performance. Excluding the non-recurring acquisition related costs, excessive FDIC expense, and other costs provides investors with an understanding of Axos’ core business.
Below is a reconciliation of net income 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) | 2020 | 2019 | 2020 | 2019 | |||||||||||
Net income | $ | 45,300 | $ | 40,634 | $ | 183,438 | $ | 155,131 | |||||||
Acquisition-related costs | 2,627 | 2,075 | 10,108 | 6,714 | |||||||||||
Excess FDIC expense | — | — | — | 1,111 | |||||||||||
Other costs | — | — | — | 15,299 | |||||||||||
Income taxes | (875 | ) | (551 | ) | (3,048 | ) | (6,267 | ) | |||||||
Adjusted earnings (Non-GAAP) | $ | 47,052 | $ | 42,158 | $ | 190,498 | $ | 171,988 | |||||||
Adjusted EPS (Non-GAAP) | $ | 0.78 | $ | 0.68 | $ | 3.10 | $ | 2.75 | |||||||
We define book value adjusted for goodwill and other intangible assets as tangible book value (“tangible book value”), a non-GAAP financial measure. 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) | 2020 | 2019 | |||||
Total stockholders’ equity | $ | 1,230,846 | $ | 1,073,050 | |||
Less: preferred stock | 5,063 | 5,063 | |||||
Common stockholders’ equity | 1,225,783 | 1,067,987 | |||||
Less: mortgage servicing rights, carried at fair value | 10,675 | 9,784 | |||||
Less: goodwill and other intangible assets | 125,389 | 134,893 | |||||
Tangible common stockholders’ equity (Non-GAAP) | $ | 1,089,719 | $ | 923,310 | |||
Common shares outstanding at end of period | 59,612,635 | 61,128,817 | |||||
Tangible book value per common share (Non-GAAP) | $ | 18.28 | $ | 15.10 | |||
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 successfully integrate its recent acquisitions and realize the anticipated benefits of the transactions, 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, 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 pending class action 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
VP, Corporate Development & Investor Relations
1-858-649-2218
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, 2020 | June 30, 2019 | June 30, 2018 | ||||||||
Selected Balance Sheet Data: | |||||||||||
Total assets | $ | 13,851,900 | $ | 11,220,238 | $ | 9,539,504 | |||||
Loans and leases—net of allowance for loan and lease losses | 10,631,349 | 9,382,124 | 8,432,289 | ||||||||
Loans held for sale, at fair value | 51,995 | 33,260 | 35,077 | ||||||||
Loans held for sale, lower of cost or fair value | 44,565 | 4,800 | 2,686 | ||||||||
Allowance for loan and lease losses | 75,807 | 57,085 | 49,151 | ||||||||
Securities—trading | 105 | — | — | ||||||||
Securities—available-for-sale | 187,627 | 227,513 | 180,305 | ||||||||
Securities borrowed | 222,368 | 144,706 | — | ||||||||
Customer, broker-dealer and clearing receivables | 220,266 | 203,192 | — | ||||||||
Total deposits | 11,336,694 | 8,983,173 | 7,985,350 | ||||||||
Advances from the FHLB | 242,500 | 458,500 | 457,000 | ||||||||
Borrowings, subordinated notes and debentures | 235,789 | 168,929 | 54,552 | ||||||||
Securities loaned | 255,945 | 198,356 | — | ||||||||
Customer, broker-dealer and clearing payables | 347,614 | 238,604 | — | ||||||||
Total stockholders’ equity | 1,230,846 | 1,073,050 | 960,513 | ||||||||
Capital Ratios: | |||||||||||
Equity to assets at end of period | 8.89 | % | 9.56 | % | 10.07 | % | |||||
Axos Financial, Inc.: | |||||||||||
Tier 1 leverage (core) capital to adjusted average assets | 8.97 | % | 8.75 | % | 9.45 | % | |||||
Common equity tier 1 capital (to risk-weighted assets) | 11.22 | % | 11.43 | % | 13.27 | % | |||||
Tier 1 capital (to risk-weighted assets) | 11.27 | % | 11.49 | % | 13.34 | % | |||||
Total capital (to risk-weighted assets) | 12.64 | % | 12.91 | % | 14.84 | % | |||||
Axos Bank: | |||||||||||
Tier 1 leverage (core) capital to adjusted average assets | 9.25 | % | 9.21 | % | 8.88 | % | |||||
Common equity tier 1 capital (to risk-weighted assets) | 11.79 | % | 12.14 | % | 12.53 | % | |||||
Tier 1 capital (to risk-weighted assets) | 11.79 | % | 12.14 | % | 12.53 | % | |||||
Total capital (to risk-weighted assets) | 12.62 | % | 12.89 | % | 13.27 | % | |||||
Axos Clearing, LLC: | |||||||||||
Net capital | $ | 34,022 | $ | 25,027 | N/A | ||||||
Excess capital | $ | 29,450 | $ | 21,199 | N/A | ||||||
Net capital as a percentage of aggregate debit items | 14.88 | % | 13.08 | % | N/A | ||||||
Net capital in excess of 5% aggregate debit items | $ | 22,593 | $ | 15,458 | N/A | ||||||
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) | 2020 | 2019 | 2020 | 2019 | |||||||||||
Selected Income Statement Data: | |||||||||||||||
Interest and dividend income | $ | 144,143 | $ | 141,643 | $ | 622,839 | $ | 564,887 | |||||||
Interest expense | 26,871 | 41,206 | 145,228 | 156,282 | |||||||||||
Net interest income | 117,272 | 100,437 | 477,611 | 408,605 | |||||||||||
Provision for loan losses | 6,500 | 2,800 | 42,200 | 27,350 | |||||||||||
Net interest income after provision for loan losses | 110,772 | 97,637 | 435,411 | 381,255 | |||||||||||
Non-interest income | 28,702 | 23,224 | 102,987 | 82,757 | |||||||||||
Non-interest expense | 71,544 | 65,536 | 275,766 | 251,206 | |||||||||||
Income before income tax expense | 67,930 | 55,325 | 262,632 | 212,806 | |||||||||||
Income tax expense | 22,630 | 14,691 | 79,194 | 57,675 | |||||||||||
Net income | $ | 45,300 | $ | 40,634 | $ | 183,438 | $ | 155,131 | |||||||
Net income attributable to common stock | $ | 45,223 | $ | 40,557 | $ | 183,129 | $ | 154,822 | |||||||
Per Share Data: | |||||||||||||||
Net income: | |||||||||||||||
Basic | $ | 0.76 | $ | 0.66 | $ | 3.01 | $ | 2.50 | |||||||
Diluted | $ | 0.75 | $ | 0.66 | $ | 2.98 | $ | 2.48 | |||||||
Book value per common share | $ | 20.56 | $ | 17.47 | $ | 20.56 | $ | 17.47 | |||||||
Tangible book value per common share (Non-GAAP) | $ | 18.28 | $ | 15.10 | $ | 18.28 | $ | 15.10 | |||||||
Adjusted earnings per common share (Non-GAAP) | $ | 0.78 | $ | 0.68 | $ | 3.10 | $ | 2.75 | |||||||
Weighted average number of shares outstanding: | |||||||||||||||
Basic | 59,648,076 | 61,201,994 | 60,794,555 | 61,898,447 | |||||||||||
Diluted | 60,158,545 | 61,634,848 | 61,437,635 | 62,382,065 | |||||||||||
Common shares outstanding at end of period | 59,612,635 | 61,128,817 | 59,612,635 | 61,128,817 | |||||||||||
Common shares issued at end of period | 67,323,053 | 66,563,922 | 67,323,053 | 66,563,922 | |||||||||||
Performance Ratios and Other Data: | |||||||||||||||
Loan and lease originations for investment | $ | 1,317,826 | $ | 1,501,357 | $ | 6,811,164 | $ | 6,934,259 | |||||||
Loan originations for sale | $ | 315,349 | $ | 270,905 | $ | 1,601,579 | $ | 1,471,906 | |||||||
Loan and lease purchases | $ | — | $ | — | $ | — | $ | 11,009 | |||||||
Return on average assets | 1.45 | % | 1.49 | % | 1.53 | % | 1.51 | % | |||||||
Return on average common stockholders’ equity | 14.71 | % | 15.49 | % | 15.65 | % | 15.40 | % | |||||||
Interest rate spread1 | 3.53 | % | 3.39 | % | 3.65 | % | 3.66 | % | |||||||
Net interest margin2 | 3.89 | % | 3.81 | % | 4.12 | % | 4.07 | % | |||||||
Net interest margin2 - Banking Business Segment only | 3.95 | % | 3.87 | % | 4.19 | % | 4.14 | % | |||||||
Efficiency ratio3 | 49.01 | % | 53.00 | % | 47.50 | % | 51.12 | % | |||||||
Efficiency ratio3 - Banking Business Segment only | 41.02 | % | 43.21 | % | 39.81 | % | 40.51 | % | |||||||
Asset Quality Ratios: | |||||||||||||||
Net annualized charge-offs to average loans and leases | 0.67 | % | 0.65 | % | 0.23 | % | 0.19 | % | |||||||
Net annualized charge-offs to average loans and leases, excluding seasonal tax loan products | 0.05 | % | 0.05 | % | 0.08 | % | 0.06 | % | |||||||
Non-performing loans and leases to total loans and leases | 0.82 | % | 0.51 | % | 0.82 | % | 0.51 | % | |||||||
Non-performing assets to total assets | 0.68 | % | 0.50 | % | 0.68 | % | 0.50 | % | |||||||
Allowance for loan and lease losses to total loans and leases held for investment at end of period | 0.71 | % | 0.60 | % | 0.71 | % | 0.60 | % | |||||||
Allowance for loan and lease losses to non-performing loans and leases | 86.20 | % | 117.84 | % | 86.20 | % | 117.84 | % | |||||||
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) | 2020 | 2019 | |||||
ASSETS | |||||||
Cash and due from banks | $ | 1,756,477 | $ | 511,125 | |||
Cash segregated for regulatory purposes | 194,042 | 346,143 | |||||
Federal funds sold | — | 100 | |||||
Total cash, cash equivalents, cash segregated, and federal funds sold | 1,950,519 | 857,368 | |||||
Securities: | |||||||
Trading | 105 | — | |||||
Available for sale | 187,627 | 227,513 | |||||
Stock of regulatory agencies | 20,610 | 20,276 | |||||
Loans held for sale, carried at fair value | 51,995 | 33,260 | |||||
Loans held for sale, lower of cost or fair value | 44,565 | 4,800 | |||||
Loans and leases—net of allowance of $75,807 as of June 2020 and $57,085 as of June 2019 | 10,631,349 | 9,382,124 | |||||
Mortgage servicing rights, carried at fair value | 10,675 | 9,784 | |||||
Other real estate owned and repossessed vehicles | 6,408 | 7,485 | |||||
Securities borrowed | 222,368 | 144,706 | |||||
Customer, broker-dealer and clearing receivables | 220,266 | 203,192 | |||||
Goodwill and other intangible assets—net | 125,389 | 134,893 | |||||
Other assets | 380,024 | 194,837 | |||||
TOTAL ASSETS | $ | 13,851,900 | $ | 11,220,238 | |||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
Deposits: | |||||||
Non-interest bearing | $ | 1,936,661 | $ | 1,441,930 | |||
Interest bearing | 9,400,033 | 7,541,243 | |||||
Total deposits | 11,336,694 | 8,983,173 | |||||
Advances from the Federal Home Loan Bank | 242,500 | 458,500 | |||||
Borrowings, subordinated notes and debentures | 235,789 | 168,929 | |||||
Securities loaned | 255,945 | 198,356 | |||||
Customer, broker-dealer and clearing payables | 347,614 | 238,604 | |||||
Accounts payable and accrued liabilities and other liabilities | 202,512 | 99,626 | |||||
Total liabilities | 12,621,054 | 10,147,188 | |||||
STOCKHOLDERS’ EQUITY: | |||||||
Preferred stock—$0.01 par value; 1,000,000 shares authorized; | |||||||
Series A—$10,000 stated value and liquidation preference per share; 515 shares issued and outstanding as of June 2020 and June 2019 | 5,063 | 5,063 | |||||
Common stock—$0.01 par value; 150,000,000 shares authorized, 67,323,053 shares issued and 59,612,635 shares outstanding as of June 2020, 66,563,922 shares issued and 61,128,817 shares outstanding as of June 2019 | 673 | 666 | |||||
Additional paid-in capital | 411,873 | 389,945 | |||||
Accumulated other comprehensive income (loss)—net of tax | (937 | ) | 16 | ||||
Retained earnings | 1,009,299 | 826,170 | |||||
Treasury stock, at cost; 7,710,418 shares as of June 2020 and 5,435,105 shares as of June 2019 | (195,125 | ) | (148,810 | ) | |||
Total stockholders’ equity | 1,230,846 | 1,073,050 | |||||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 13,851,900 | $ | 11,220,238 | |||
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) | 2020 | 2019 | |||||
INTEREST AND DIVIDEND INCOME: | |||||||
Loans and leases, including fees | $ | 137,194 | $ | 128,268 | |||
Securities borrowed and customer receivables | 3,560 | 4,776 | |||||
Investments | 3,389 | 8,599 | |||||
Total interest and dividend income | 144,143 | 141,643 | |||||
INTEREST EXPENSE: | |||||||
Deposits | 23,942 | 32,695 | |||||
Advances from the Federal Home Loan Bank | 1,777 | 5,986 | |||||
Securities loaned | 115 | 376 | |||||
Other borrowings | 1,037 | 2,149 | |||||
Total interest expense | 26,871 | 41,206 | |||||
Net interest income | 117,272 | 100,437 | |||||
Provision for loan and lease losses | 6,500 | 2,800 | |||||
Net interest income, after provision for loan and lease losses | 110,772 | 97,637 | |||||
NON-INTEREST INCOME: | |||||||
Realized gain (loss) on sale of securities | — | 842 | |||||
Prepayment penalty fee income | 1,169 | 1,774 | |||||
Gain on sale - other | 517 | 549 | |||||
Mortgage banking income | 12,673 | 2,308 | |||||
Broker-dealer fee income | 5,670 | 6,701 | |||||
Banking and service fees | 8,673 | 11,050 | |||||
Total non-interest income | 28,702 | 23,224 | |||||
NON-INTEREST EXPENSE: | |||||||
Salaries and related costs | 37,409 | 33,909 | |||||
Data processing | 8,887 | 7,358 | |||||
Depreciation and amortization | 6,982 | 5,123 | |||||
Advertising and promotional | 2,803 | 3,445 | |||||
Occupancy and equipment | 3,180 | 2,588 | |||||
Professional services | 3,163 | 3,427 | |||||
Broker-dealer clearing charges | 2,162 | 1,727 | |||||
FDIC and regulatory fees | 2,395 | 2,418 | |||||
General and administrative expense | 4,563 | 5,541 | |||||
Total non-interest expense | 71,544 | 65,536 | |||||
INCOME BEFORE INCOME TAXES | 67,930 | 55,325 | |||||
INCOME TAXES | 22,630 | 14,691 | |||||
NET INCOME | $ | 45,300 | $ | 40,634 | |||
NET INCOME ATTRIBUTABLE TO COMMON STOCK | $ | 45,223 | $ | 40,557 | |||
COMPREHENSIVE INCOME | $ | 47,089 | $ | 41,168 | |||
Basic earnings per share | $ | 0.76 | $ | 0.66 | |||
Diluted earnings per share | $ | 0.75 | $ | 0.66 | |||
S-2
AXOS FINANCIAL, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (Unaudited) | |||||||||||
Year Ended June 30, | |||||||||||
(Dollars in thousands, except earnings per share) | 2020 | 2019 | 2018 | ||||||||
INTEREST AND DIVIDEND INCOME: | |||||||||||
Loans and leases, including fees | $ | 582,748 | $ | 525,317 | $ | 446,991 | |||||
Securities borrowed and customer receivables | 16,585 | 8,746 | — | ||||||||
Investments | 23,506 | 30,824 | 28,083 | ||||||||
Total interest and dividend income | 622,839 | 564,887 | 475,074 | ||||||||
INTEREST EXPENSE: | |||||||||||
Deposits | 126,916 | 117,080 | 79,851 | ||||||||
Advances from the Federal Home Loan Bank | 11,988 | 32,834 | 22,848 | ||||||||
Securities loaned | 679 | 748 | — | ||||||||
Other borrowings | 5,645 | 5,620 | 3,881 | ||||||||
Total interest expense | 145,228 | 156,282 | 106,580 | ||||||||
Net interest income | 477,611 | 408,605 | 368,494 | ||||||||
Provision for loan and lease losses | 42,200 | 27,350 | 25,800 | ||||||||
Net interest income, after provision for loan and lease losses | 435,411 | 381,255 | 342,694 | ||||||||
NON-INTEREST INCOME: | |||||||||||
Realized gain (loss) on sale of securities | — | 709 | (18 | ) | |||||||
Other-than-temporary loss on securities: | |||||||||||
Other-than-temporary loss on securities: | — | (1,666 | ) | (6,271 | ) | ||||||
Less: Portion of other temporary impairment losses recognized in OCI | — | 845 | 6,115 | ||||||||
Change to net impairment losses recognized in earnings on securities | — | (821 | ) | (156 | ) | ||||||
Prepayment penalty fee income | 5,993 | 5,851 | 3,862 | ||||||||
Gain on sale - other | 6,871 | 6,160 | 5,734 | ||||||||
Mortgage banking income | 20,646 | 5,267 | 13,755 | ||||||||
Broker-dealer fee income | 23,210 | 11,737 | — | ||||||||
Banking and service fees | 46,267 | 53,854 | 47,764 | ||||||||
Total non-interest income | 102,987 | 82,757 | 70,941 | ||||||||
NON-INTEREST EXPENSE: | |||||||||||
Salaries and related costs | 144,341 | 127,433 | 100,975 | ||||||||
Data processing | 30,671 | 24,150 | 17,400 | ||||||||
Depreciation and amortization | 24,443 | 16,471 | 8,574 | ||||||||
Advertising and promotional | 14,523 | 14,710 | 15,500 | ||||||||
Occupancy and equipment | 12,059 | 8,571 | 6,063 | ||||||||
Professional services | 11,095 | 11,916 | 5,280 | ||||||||
Broker-dealer clearing charges | 8,210 | 2,822 | — | ||||||||
FDIC and regulatory fees | 5,538 | 9,005 | 4,860 | ||||||||
General and administrative expense | 24,886 | 36,128 | 15,284 | ||||||||
Total non-interest expense | 275,766 | 251,206 | 173,936 | ||||||||
INCOME BEFORE INCOME TAXES | 262,632 | 212,806 | 239,699 | ||||||||
INCOME TAXES | 79,194 | 57,675 | 87,288 | ||||||||
NET INCOME | $ | 183,438 | $ | 155,131 | $ | 152,411 | |||||
NET INCOME ATTRIBUTABLE TO COMMON STOCK | $ | 183,129 | $ | 154,822 | $ | 152,102 | |||||
COMPREHENSIVE INCOME | $ | 182,485 | $ | 155,760 | $ | 151,311 | |||||
Basic earnings per share | $ | 3.01 | $ | 2.50 | $ | 2.41 | |||||
Diluted earnings per share | $ | 2.98 | $ | 2.48 | $ | 2.37 | |||||
S-3
AXOS FINANCIAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Unaudited)
Year Ended June 30, | |||||||||||
(Dollars in thousands) | 2020 | 2019 | 2018 | ||||||||
NET INCOME | $ | 183,438 | $ | 155,131 | $ | 152,411 | |||||
Net unrealized gain (loss) from available-for-sale securities, net of tax expense (benefit) of $(381), $562, and $(2,449) for the years ended June 30, 2020, 2019 and 2018, respectively. | (953 | ) | 1,741 | (5,493 | ) | ||||||
Other-than-temporary impairment on securities sold, reclassified in other comprehensive income, net of tax expense (benefit) of $0, $(251), and $1,918 for the years ended June 30, 2020, 2019 and 2018, respectively. | — | (594 | ) | 4,197 | |||||||
Reclassification of net (gain) loss from available-for-sale securities included in income, net of tax expense (benefit) of $0, $191, and $(104) for the years ended June 30, 2020, 2019, and 2018, respectively. | — | (518 | ) | 196 | |||||||
Other comprehensive income (loss) | $ | (953 | ) | $ | 629 | $ | (1,100 | ) | |||
Comprehensive income | $ | 182,485 | $ | 155,760 | $ | 151,311 | |||||
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, 2017 | 515 | $ | 5,063 | 65,115,932 | (1,579,688 | ) | 63,536,244 | $ | 651 | $ | 346,117 | $ | 519,246 | $ | 487 | $ | (37,317 | ) | $ | 834,247 | |||||||||||||||||||
Net income | — | — | — | — | — | — | — | 152,411 | — | — | 152,411 | ||||||||||||||||||||||||||||
Other comprehensive income (loss) | — | — | — | — | — | — | — | — | (1,100 | ) | — | (1,100 | ) | ||||||||||||||||||||||||||
Cash dividends on preferred stock | — | — | — | — | — | — | — | (309 | ) | — | — | (309 | ) | ||||||||||||||||||||||||||
Purchase of treasury stock | — | — | — | (1,233,491 | ) | (1,233,491 | ) | — | — | — | — | (35,183 | ) | (35,183 | ) | ||||||||||||||||||||||||
Stock-based compensation expense and restricted stock unit vesting | — | — | 680,128 | (294,817 | ) | 385,311 | 7 | 20,398 | — | — | (9,958 | ) | 10,447 | ||||||||||||||||||||||||||
Balance as of June 30, 2018 | 515 | $ | 5,063 | 65,796,060 | (3,107,996 | ) | 62,688,064 | $ | 658 | $ | 366,515 | $ | 671,348 | $ | (613 | ) | $ | (82,458 | ) | $ | 960,513 | ||||||||||||||||||
Net income | — | — | — | — | — | — | — | 155,131 | — | — | 155,131 | ||||||||||||||||||||||||||||
Other comprehensive income (loss) | — | — | — | — | — | — | — | — | 629 | — | 629 | ||||||||||||||||||||||||||||
Cash dividends on preferred stock | — | — | — | — | — | — | — | (309 | ) | — | — | (309 | ) | ||||||||||||||||||||||||||
Purchase of treasury stock | — | — | — | (2,009,352 | ) | (2,009,352 | ) | — | — | — | — | (56,437 | ) | (56,437 | ) | ||||||||||||||||||||||||
Stock-based compensation expense and restricted stock unit vesting | — | — | 767,862 | (317,757 | ) | 450,105 | 8 | 23,430 | — | — | (9,915 | ) | 13,523 | ||||||||||||||||||||||||||
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 | ||||||||||||||||||
S-5
AXOS FINANCIAL, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) | |||||||||||
Year Ended June 30, | |||||||||||
(Dollars in thousands) | 2020 | 2019 | 2018 | ||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||||||
Net income | $ | 183,438 | $ | 155,131 | $ | 152,411 | |||||
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||||||||||
Accretion of discounts on securities | 291 | (264 | ) | (624 | ) | ||||||
Net accretion of discounts on loans and leases | (35,493 | ) | (30,176 | ) | (29,381 | ) | |||||
Amortization of borrowing costs | 208 | 208 | 208 | ||||||||
Amortization of operating lease right of use asset | (6,299 | ) | — | — | |||||||
Stock-based compensation expense | 21,935 | 23,439 | 20,399 | ||||||||
Trading activity, (net) | 1,217 | — | — | ||||||||
Net (gain) loss on sale of investment securities | — | (709 | ) | 18 | |||||||
Impairment charge on securities | — | 821 | 156 | ||||||||
Provision for loan and lease losses | 42,200 | 27,350 | 25,800 | ||||||||
Broker-dealer reserve for bad debt | — | 15,298 | — | ||||||||
Deferred income taxes | (6,735 | ) | (8,686 | ) | 17,034 | ||||||
Origination of loans held for sale | (1,601,579 | ) | (1,471,906 | ) | (1,564,165 | ) | |||||
Unrealized (gain) loss on loans held for sale | (1,360 | ) | (252 | ) | (253 | ) | |||||
Gain on sales of loans held for sale | (27,517 | ) | (11,427 | ) | (19,489 | ) | |||||
Proceeds from sale of loans held for sale | 1,614,379 | 1,481,911 | 1,576,353 | ||||||||
Change in fair value of mortgage servicing rights | 5,806 | 3,362 | 83 | ||||||||
(Gain) loss on sale of other real estate and foreclosed assets | (449 | ) | (283 | ) | (258 | ) | |||||
Depreciation and amortization | 24,443 | 16,471 | 8,574 | ||||||||
Net changes in assets and liabilities which provide (use) cash: | |||||||||||
Securities borrowed | (77,662 | ) | 13,192 | — | |||||||
Customer, broker-dealer and clearing receivables | (17,074 | ) | 13,684 | — | |||||||
Other assets | (45,852 | ) | (27,564 | ) | (47,070 | ) | |||||
Securities loaned | 57,589 | (4,685 | ) | — | |||||||
Customer, broker-dealer and clearing payables | 109,010 | (1,506 | ) | — | |||||||
Accounts payable and accrued liabilities | 26,135 | 11,012 | 28,119 | ||||||||
Net cash provided by operating activities | $ | 266,631 | $ | 204,421 | $ | 167,915 | |||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||||||
Purchases of investment securities | (304,930 | ) | (146,886 | ) | (100,503 | ) | |||||
Proceeds from sales of securities | — | 15,863 | 52,714 | ||||||||
Proceeds from repayment of securities | 343,191 | 93,779 | 139,338 | ||||||||
Purchase of stock of regulatory agencies | (55,870 | ) | (204,206 | ) | (33,966 | ) | |||||
Proceeds from redemption of stock of regulatory agencies | 55,536 | 203,611 | 79,923 | ||||||||
Origination of loans and leases held for investment | (6,586,761 | ) | (6,756,832 | ) | (5,895,902 | ) | |||||
Proceeds from sale of loans and leases held for investment | 37,300 | 119,881 | 20,719 | ||||||||
Mortgage warehouse loans activity, net | (172,319 | ) | (126,491 | ) | (26,899 | ) | |||||
Proceeds from sales of other real estate owned and repossessed assets | 2,241 | 2,202 | 1,832 | ||||||||
Cash paid for deposit acquisition | — | (14,747 | ) | — | |||||||
Cash paid for acquisition | — | — | (70,002 | ) | |||||||
Acquisition of business activity, net of cash paid | — | 67,343 | — | ||||||||
Purchases of loans and leases, net of discounts and premiums | — | (11,525 | ) | — | |||||||
Principal repayments on loans and leases | 5,362,993 | 5,846,349 | 4,818,558 | ||||||||
Furniture, equipment and software expenditures | (12,333 | ) | (20,082 | ) | (11,817 | ) | |||||
Net cash used in investing activities | $ | (1,330,952 | ) | $ | (931,741 | ) | $ | (1,026,005 | ) | ||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||||||
Net increase in deposits | $ | 2,353,521 | $ | 997,823 | $ | 1,085,843 | |||||
Net (repayment) proceeds of the Federal Home Loan Bank term advances | 10,000 | (147,500 | ) | (30,000 | ) | ||||||
Net (repayment) proceeds of Federal Home Loan Bank other advances | (226,000 | ) | 149,000 | (153,000 | ) | ||||||
Net (repayment) proceeds of other borrowings | (85,300 | ) | 21,700 | (20,000 | ) | ||||||
Proceeds from Paycheck Protection Program Liquidity Facility advances | 151,952 | — | — | ||||||||
Tax payments related to settlement of restricted stock units | (7,457 | ) | (9,916 | ) | (9,952 | ) | |||||
Repurchase of treasury stock | (38,858 | ) | (56,437 | ) | (35,183 | ) | |||||
Cash dividends paid on preferred stock | (386 | ) | (232 | ) | (309 | ) | |||||
Net proceeds from issuance of subordinated notes | — | 7,400 | — | ||||||||
Net cash provided by financing activities | $ | 2,157,472 | $ | 961,838 | $ | 837,399 | |||||
NET CHANGE IN CASH AND CASH EQUIVALENTS | 1,093,151 | 234,518 | (20,691 | ) | |||||||
CASH AND CASH EQUIVALENTS—Beginning of year | 857,368 | 622,850 | 643,541 | ||||||||
CASH AND CASH EQUIVALENTS—End of year | $ | 1,950,519 | $ | 857,368 | $ | 622,850 | |||||
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | |||||||||||
Interest paid on deposits and borrowed funds | $ | 145,452 | $ | 152,756 | $ | 106,112 | |||||
Income taxes paid | $ | 80,430 | $ | 64,117 | $ | 79,628 | |||||
Transfers to other real estate and repossessed vehicles | $ | 1,315 | $ | 850 | $ | 10,113 | |||||
Transfers from loans and leases held for investment to loans held for sale | $ | 141,849 | $ | 106,911 | $ | 31,207 | |||||
Transfers from loans held for sale to loans and leases held for investment | $ | — | $ | 1,714 | $ | 3,969 | |||||
Loans held for investment sold, cash not received | $ | 61,029 | $ | — | $ | 17,742 | |||||
Operating lease liabilities for obtaining right of use assets | $ | 82,940 | $ | — | $ | — | |||||
Preferred stock dividends declared but not paid | $ | — | $ | 77 | $ | — | |||||
S-6
LOANS AND LEASES
The following table sets forth the composition of the loan and lease portfolio as of the dates indicated:
(Unaudited) (Dollars in thousands) | June 30, 2020 | June 30, 2019 | |||||
Single family real estate secured: | |||||||
Mortgage | $ | 4,244,563 | $ | 4,281,080 | |||
Warehouse | 474,318 | 301,999 | |||||
Financing1 | 682,477 | 518,560 | |||||
Multifamily real estate secured | 2,303,216 | 1,948,513 | |||||
Commercial real estate secured - mortgage | 371,176 | 326,154 | |||||
Auto and RV secured | 291,452 | 290,894 | |||||
Commercial & Industrial | 2,094,322 | 1,662,629 | |||||
Other | 241,918 | 119,481 | |||||
Total gross loans and leases | 10,703,442 | 9,449,310 | |||||
Allowance for loan and lease losses | (75,807 | ) | (57,085 | ) | |||
Unaccreted premiums (discounts) and loan and lease fees | 3,714 | (10,101 | ) | ||||
Total net loans and leases | $ | 10,631,349 | $ | 9,382,124 | |||
1. Single family real estate secured: Financing consists of commercial specialty and lender finance loans secured by single family real estate.
S-7
SECURITIES
The amortized cost, carrying amount and fair value for the major categories of trading and available for sale securities at June 30, 2020 and June 30, 2019 were:
June 30, 2020 | |||||||||||||||||||
Trading | Available for sale | ||||||||||||||||||
(Unaudited) (Dollars in thousands) | Fair Value | Amortized Cost | Unrealized Gains | Unrealized Losses | Fair Value | ||||||||||||||
Mortgage-backed securities (RMBS): | |||||||||||||||||||
U.S agencies1 | $ | — | $ | 16,192 | $ | 634 | $ | — | $ | 16,826 | |||||||||
Non-agency2 | — | 18,180 | 1,024 | (872 | ) | 18,332 | |||||||||||||
Total mortgage-backed securities | — | 34,372 | 1,658 | (872 | ) | 35,158 | |||||||||||||
Other debt securities: | |||||||||||||||||||
U.S. agencies1 | — | 1,799 | — | — | 1,799 | ||||||||||||||
Municipal | 105 | 10,550 | 44 | (194 | ) | 10,400 | |||||||||||||
Non-agency | — | 141,338 | 1 | (1,069 | ) | 140,270 | |||||||||||||
Total other debt securities | 105 | 153,687 | 45 | (1,263 | ) | 152,469 | |||||||||||||
Total debt securities | $ | 105 | $ | 188,059 | $ | 1,703 | $ | (2,135 | ) | $ | 187,627 | ||||||||
June 30, 2019 | |||||||||||||||||||
Trading | Available for sale | ||||||||||||||||||
(Unaudited) (Dollars in thousands) | Fair Value | Amortized Cost | Unrealized Gains | Unrealized Losses | Fair Value | ||||||||||||||
Mortgage-backed securities (RMBS): | |||||||||||||||||||
U.S agencies1 | $ | — | $ | 9,486 | $ | 179 | $ | (79 | ) | $ | 9,586 | ||||||||
Non-agency2 | — | 13,489 | 226 | (690 | ) | 13,025 | |||||||||||||
Total mortgage-backed securities | — | 22,975 | 405 | (769 | ) | 22,611 | |||||||||||||
Other debt securities: | |||||||||||||||||||
U.S. agencies1 | — | 1,682 | 3 | — | 1,685 | ||||||||||||||
Municipal | — | 21,974 | 16 | (828 | ) | 21,162 | |||||||||||||
Non-agency | — | 179,976 | 2,088 | (9 | ) | 182,055 | |||||||||||||
Total other debt securities | — | 203,632 | 2,107 | (837 | ) | 204,902 | |||||||||||||
Total debt securities | $ | — | $ | 226,607 | $ | 2,512 | $ | (1,606 | ) | $ | 227,513 | ||||||||
1 U.S. government-backed including and Ginnie Mae, or government sponsored enterprises including Fannie Mae and Freddie Mac.
2 Private sponsors of securities collateralized primarily 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 the deposit portfolio as of the dates indicated:
(Unaudited) | June 30, 2020 | June 30, 2019 | |||||||||||
(Dollars in thousands) | Amount | Rate1 | Amount | Rate1 | |||||||||
Non-interest bearing | $ | 1,936,661 | — | % | $ | 1,441,930 | — | % | |||||
Interest bearing: | |||||||||||||
Demand | 3,456,127 | 0.37 | % | 2,709,014 | 2.06 | % | |||||||
Savings | 3,697,188 | 0.78 | % | 2,466,214 | 1.48 | % | |||||||
Total interest-bearing demand and savings | 7,153,315 | 0.58 | % | 5,175,228 | 1.78 | % | |||||||
Time deposits: | |||||||||||||
$250 and under | 1,584,034 | 2.12 | % | 1,866,811 | 2.47 | % | |||||||
Greater than $250 | 662,684 | 1.39 | % | 499,204 | 2.27 | % | |||||||
Total time deposits | 2,246,718 | 1.91 | % | 2,366,015 | 2.43 | % | |||||||
Total interest bearing2 | 9,400,033 | 0.90 | % | 7,541,243 | 1.99 | % | |||||||
Total deposits | $ | 11,336,694 | 0.75 | % | $ | 8,983,173 | 1.67 | % | |||||
1. Based on weighted-average stated interest rates at end of period.
2. The total interest-bearing includes brokered deposits of $1,318.0 million and $1,124.0 million as of June 30, 2020 and June 30, 2019, respectively, of which $603.6 million and $796.7 million, respectively, are time deposits classified as $250 and under.
The number of deposit accounts at the end of each of the last five fiscal years is set forth below:
At June 30, | ||||||||||||||
2020 | 2019 | 2018 | 2017 | 2016 | ||||||||||
Non-interest-bearing, prepaid and other1 | 3,361,965 | 3,743,334 | 3,535,904 | 3,113,128 | 1,816,266 | |||||||||
Checking and savings accounts | 310,463 | 311,067 | 270,082 | 274,962 | 292,012 | |||||||||
Time deposits | 18,450 | 23,447 | 2,309 | 2,748 | 4,807 | |||||||||
Total number of deposit accounts | 3,690,878 | 4,077,848 | 3,808,295 | 3,390,838 | 2,113,085 | |||||||||
1. Our non-interest bearing, prepaid and other accounts contain two omnibus accounts that when condensed for regulatory
reporting purposes result in 27,108 accounts as of June 30, 2020.
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, | |||||||||||||||||||||
2020 | 2019 | ||||||||||||||||||||
(Unaudited) (Dollars in thousands) | Average Balance2 | Interest Income / Expense | Average Yields Earned / Rates Paid1 | Average Balance2 | Interest Income / Expense | Average Yields Earned / Rates Paid1 | |||||||||||||||
Assets: | |||||||||||||||||||||
Loans and leases3,4 | $ | 10,570,886 | $ | 137,194 | 5.19 | % | $ | 9,234,461 | $ | 128,268 | 5.56 | % | |||||||||
Interest-earning deposits in other financial institutions | 930,622 | 365 | 0.16 | % | 710,703 | 4,333 | 2.44 | % | |||||||||||||
Securities4 | 231,396 | 2,858 | 4.94 | % | 226,523 | 3,778 | 6.67 | % | |||||||||||||
Securities borrowed and margin lending | 297,163 | 3,560 | 4.79 | % | 350,413 | 4,776 | 5.45 | % | |||||||||||||
Stock of the regulatory agencies | 28,719 | 166 | 2.31 | % | 31,054 | 488 | 6.29 | % | |||||||||||||
Total interest-earning assets | 12,058,786 | 144,143 | 4.78 | % | 10,553,154 | 141,643 | 5.37 | % | |||||||||||||
Non-interest-earning assets | 411,004 | 325,078 | |||||||||||||||||||
Total assets | $ | 12,469,790 | $ | 10,878,232 | |||||||||||||||||
Liabilities and Stockholders’ Equity: | |||||||||||||||||||||
Interest-bearing demand and savings | $ | 5,092,648 | $ | 10,222 | 0.80 | % | $ | 4,119,350 | $ | 16,921 | 1.64 | % | |||||||||
Time deposits | 2,446,915 | 13,720 | 2.24 | % | 2,625,852 | 15,774 | 2.40 | % | |||||||||||||
Securities loaned | 153,573 | 115 | 0.30 | % | 478,196 | 376 | 0.31 | % | |||||||||||||
Advances from the FHLB | 807,680 | 1,777 | 0.88 | % | 963,062 | 5,986 | 2.49 | % | |||||||||||||
Borrowings, subordinated notes and debentures | 83,228 | 1,037 | 4.98 | % | 154,749 | 2,149 | 5.55 | % | |||||||||||||
Total interest-bearing liabilities | 8,584,044 | 26,871 | 1.25 | % | 8,341,209 | 41,206 | 1.98 | % | |||||||||||||
Non-interest-bearing demand deposits | 2,139,803 | 1,385,750 | |||||||||||||||||||
Other non-interest-bearing liabilities | 510,889 | 98,741 | |||||||||||||||||||
Stockholders’ equity | 1,235,054 | 1,052,532 | |||||||||||||||||||
Total liabilities and stockholders’ equity | $ | 12,469,790 | $ | 10,878,232 | |||||||||||||||||
Net interest income | $ | 117,272 | $ | 100,437 | |||||||||||||||||
Interest rate spread5 | 3.53 | % | 3.39 | % | |||||||||||||||||
Net interest margin6 | 3.89 | % | 3.81 | % | |||||||||||||||||
1 Annualized.
2 Average balances are obtained from daily data.
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 and leases include average balances of $27.7 million and $28.4 million of Community Reinvestment Act loans which are taxed at a reduced rate for the 2020 and 2019 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-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, | ||||||||||||||||||||||||||||||||
2020 | 2019 | 2018 | ||||||||||||||||||||||||||||||
(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: | ||||||||||||||||||||||||||||||||
Loans and leases2,3 | $ | 10,149,867 | $ | 582,748 | 5.74 | % | $ | 8,974,820 | $ | 525,317 | 5.85 | % | $ | 7,893,072 | $ | 446,991 | 5.66 | % | ||||||||||||||
Interest-earning deposits in other financial institutions | 833,612 | 10,906 | 1.31 | % | 631,228 | 13,495 | 2.14 | % | 807,348 | 12,450 | 1.54 | % | ||||||||||||||||||||
Securities3 | 217,598 | 11,061 | 5.08 | % | 210,189 | 13,943 | 6.63 | % | 209,434 | 11,335 | 5.41 | % | ||||||||||||||||||||
Securities borrowed and margin lending | 362,063 | 16,585 | 4.58 | % | 173,829 | 8,746 | 5.03 | % | N/A | N/A | — | % | ||||||||||||||||||||
Stock of the regulatory agencies | 28,776 | 1,539 | 5.35 | % | 41,078 | 3,386 | 8.24 | % | 61,222 | 4,298 | 7.02 | % | ||||||||||||||||||||
Total interest-earning assets | 11,591,916 | 622,839 | 5.37 | % | 10,031,144 | 564,887 | 5.63 | % | 8,971,076 | 475,074 | 5.30 | % | ||||||||||||||||||||
Non-interest-earning assets | 395,789 | 234,993 | 100,380 | |||||||||||||||||||||||||||||
Total assets | $ | 11,987,705 | $ | 10,266,137 | $ | 9,071,456 | ||||||||||||||||||||||||||
Liabilities and Stockholders’ Equity: | ||||||||||||||||||||||||||||||||
Interest-bearing demand and savings | $ | 4,844,700 | $ | 66,883 | 1.38 | % | $ | 3,906,833 | $ | 61,391 | 1.57 | % | $ | 4,706,238 | $ | 54,013 | 1.15 | % | ||||||||||||||
Time deposits | 2,482,151 | 60,033 | 2.42 | % | 2,322,039 | 55,689 | 2.40 | % | 990,635 | 25,838 | 2.61 | % | ||||||||||||||||||||
Securities loaned | 247,420 | 679 | 0.27 | % | 221,469 | 748 | 0.34 | % | N/A | N/A | — | % | ||||||||||||||||||||
Securities sold under agreements to repurchase | — | — | — | % | — | — | — | % | 5,575 | 229 | 4.11 | % | ||||||||||||||||||||
Advances from the FHLB | 747,358 | 11,988 | 1.60 | % | 1,397,460 | 32,834 | 2.35 | % | 1,296,120 | 22,848 | 1.76 | % | ||||||||||||||||||||
Borrowings, subordinated notes and debentures | 103,652 | 5,645 | 5.45 | % | 104,287 | 5,620 | 5.39 | % | 54,522 | 3,652 | 6.70 | % | ||||||||||||||||||||
Total interest-bearing liabilities | 8,425,281 | 145,228 | 1.72 | % | 7,952,088 | 156,282 | 1.97 | % | 7,053,090 | 106,580 | 1.51 | % | ||||||||||||||||||||
Non-interest-bearing demand deposits | 1,990,005 | 1,227,285 | 1,052,944 | |||||||||||||||||||||||||||||
Other non-interest-bearing liabilities | 397,506 | 76,651 | 68,361 | |||||||||||||||||||||||||||||
Stockholders’ equity | 1,174,913 | 1,010,113 | 897,061 | |||||||||||||||||||||||||||||
Total liabilities and stockholders’ equity | $ | 11,987,705 | $ | 10,266,137 | $ | 9,071,456 | ||||||||||||||||||||||||||
Net interest income | $ | 477,611 | $ | 408,605 | $ | 368,494 | ||||||||||||||||||||||||||
Interest rate spread4 | 3.65 | % | 3.66 | % | 3.79 | % | ||||||||||||||||||||||||||
Net interest margin5 | 4.12 | % | 4.07 | % | 4.11 | % | ||||||||||||||||||||||||||
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 and leases include average balances of $28.0 million, $28.7 million, and $29.3 million of Community Reinvestment Act loans which are taxed at a reduced rate for the 2020 2019, and 2018 fiscal years respectively.
4 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.
5 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, 2020 and 2019:
For the Three Months Ended | |||||||||||||||||||||
June 30, | |||||||||||||||||||||
2020 | 2019 | ||||||||||||||||||||
(Dollars in thousands) | Average Balance1 | Interest Income/ Expense | Average Yields Earned/Rates Paid2 | Average Balance1 | Interest Income/ Expense | Average Yields Earned/Rates Paid2 | |||||||||||||||
Assets: | |||||||||||||||||||||
Loans and leases3, 4 | $ | 10,516,828 | $ | 136,532 | 5.19 | % | $ | 9,234,449 | $ | 128,268 | 5.56 | % | |||||||||
Interest-earning deposits in other financial institutions | 763,989 | 192 | 0.10 | % | 524,403 | 3,128 | 2.39 | % | |||||||||||||
Securities4 | 269,288 | 3,137 | 4.66 | % | 224,828 | 3,779 | 6.72 | % | |||||||||||||
Stock of the regulatory agencies | 25,474 | 165 | 2.59 | % | 28,414 | 486 | 6.84 | % | |||||||||||||
Total interest-earning assets | 11,575,579 | 140,026 | 4.84 | % | 10,012,094 | 135,661 | 5.42 | % | |||||||||||||
Non-interest-earning assets | 185,795 | 188,959 | |||||||||||||||||||
Total assets | $ | 11,761,374 | $ | 10,201,053 | |||||||||||||||||
Liabilities and Stockholders’ Equity: | |||||||||||||||||||||
Interest-bearing demand and savings | $ | 5,108,866 | $ | 10,254 | 0.80 | % | $ | 4,143,734 | $ | 16,964 | 1.64 | % | |||||||||
Time deposits | 2,446,915 | 13,720 | 2.24 | % | 2,625,852 | 15,774 | 2.40 | % | |||||||||||||
Advances from the FHLB | 807,680 | 1,777 | 0.88 | % | 963,062 | 5,987 | 2.49 | % | |||||||||||||
Borrowings, subordinated notes and debentures | 12,416 | 11 | 0.35 | % | 22 | — | — | % | |||||||||||||
Total interest-bearing liabilities | 8,375,877 | 25,762 | 1.23 | % | 7,732,670 | 38,725 | 2.00 | % | |||||||||||||
Non-interest-bearing demand deposits | 2,148,671 | 1,389,998 | |||||||||||||||||||
Other non-interest-bearing liabilities | 98,020 | 70,848 | |||||||||||||||||||
Stockholders’ equity | 1,138,806 | 1,007,537 | |||||||||||||||||||
Total liabilities and stockholders’ equity | $ | 11,761,374 | $ | 10,201,053 | |||||||||||||||||
Net interest income | $ | 114,264 | $ | 96,936 | |||||||||||||||||
Interest rate spread5 | 3.61 | % | 3.42 | % | |||||||||||||||||
Net interest margin6 | 3.95 | % | 3.87 | % | |||||||||||||||||
1. Average balances are obtained from daily data.
2. Annualized.
3. Loans and leases 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 and leases include average balances of $27.7 million and $28.4 million of Community Reinvestment Act loans which are taxed at a reduced rate for the 2020 and 2019 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 annualized net interest income as a percentage of average interest-earning assets.
S-12
SECURITIES BUSINESS
Selected information concerning Axos Clearing LLC follows as of and for the three months ended:
(Dollars in thousands) | June 30, 2020 | June 30, 2019 | |||||
Compensation as a % of net revenue | 39.2 | % | 35.0 | % | |||
FDIC insured program balances at banks (end of period) | $ | 450,251 | $ | 341,576 | |||
Customer margin balances (end of period) | $ | 206,702 | $ | 189,193 | |||
Customer funds on deposit, including short credits (end of period) | $ | 194,042 | $ | 206,469 | |||
Clearing: | |||||||
Total tickets | 1,228,635 | 595,962 | |||||
Correspondents (end of period) | 61 | 62 | |||||
Securities lending: | |||||||
Interest-earning assets – stock borrowed (end of period) | $ | 222,368 | $ | 144,706 | |||
Interest-bearing liabilities – stock loaned (end of period) | $ | 255,945 | $ | 198,356 | |||
S-13