Axos Financial (AX) Q3 2026 earnings summary

Executive summary

• Net income for Q3 2026 was $124.7 million ($2.15 per diluted share), up 18.5% year-over-year, with adjusted earnings of $130.2 million reflecting a $22 million legal settlement and acquisition-related adjustments.

• Total assets reached $29.25 billion as of March 31, 2026, up 18%, with total deposits at $22.4 billion.

• Strong loan growth across multiple business lines, with total originations for investment at $5.1 billion and a $695 million quarter-over-quarter increase.

• Major acquisitions included Verdant Commercial Capital and a San Diego office complex; two large deposit acquisitions (Jenius Bank $2.3B, Capital One $3.2B) are pending or approved.

• Non-interest income surged 157.7% year-over-year to $86 million, driven by the legal settlement and Verdant contributions.

Financial highlights

• Net interest income was $306.3 million, up 11.2% year-over-year; net interest margin was 4.57%, down from 4.94% prior quarter.

• Non-interest expense rose 27% year-over-year to $186 million, mainly due to Verdant-related costs and higher salaries.

• Provision for credit losses increased to $41 million, mainly due to loan growth and a $20 million reserve for a C&I loan.

• Book value per share was $53.89 and tangible book value per share was $49.72 at March 31, 2026.

• Return on average assets was 1.77%; return on average common equity was 16.26%.

Outlook and guidance

• Management expects continued growth in loans and deposits, with a focus on integrating recent acquisitions and maintaining strong capital ratios.

• Pending deposit acquisitions from Jenius Bank ($2.3B) and Capital One ($3.2B) expected to close in Q4 2026 and later in 2026, providing incremental liquidity and funding.

• Expect low-to-mid teens annual loan growth, excluding acquisitions; NIM expected to remain roughly flat, excluding deposit purchase premium impact.

• Annual tax rate guidance of 26%-27%, excluding tax credit benefits.

• Continued focus on expense discipline and operational efficiencies.