Axos Financial (AX) investor relations material

Executive summary

• Net income for Q2 FY2026 rose 22.6% year-over-year to $128.4 million, with diluted EPS up 23.3% to $2.22 and adjusted EPS at $2.25; total assets reached $28.2 billion, up 13.8% from June 30, 2025.

• Loan portfolio grew by $1.6 billion sequentially to $24.8 billion, driven by broad-based growth and the Verdant acquisition.

• Return on average common equity was 17.44% and return on average assets was 1.83% for the quarter.

• Successfully integrated Verdant Commercial Capital, contributing to loan and fee income growth, with $1.0 billion in loans/leases added.

• Book value per common share increased to $51.70; tangible book value per share to $47.79.

Financial highlights

• Net interest income for Q2 FY2026 was $331.7 million, up 18.4% year-over-year, with net interest margin at 4.94%.

• Non-interest income rose 92% year-over-year to $53.4 million, mainly from Verdant and banking/servicing fees.

• Non-interest expense increased to $184.6 million, up 27% year-over-year, mainly from Verdant-related costs and higher salaries.

• Provision for credit losses was $25.0 million, reflecting loan growth and macroeconomic factors.

• Ending deposit balances reached $23.2 billion, up 44.3% linked quarter and 16.5% year-over-year.

Outlook and guidance

• Management expects continued profitable growth, supported by diversified lending and deposit franchises and ongoing Verdant integration.

• Loan growth projected in the $600-800 million range for the next quarter, with annual growth in the low to mid-teens.

• Net interest margin accretion from FDIC purchased loans expected to be 10-15 basis points going forward.

• March quarter net interest income anticipated to be 2% lower due to fewer days.

• Verdant expected to contribute $150-200 million in loan and lease growth per quarter.