Axos Financial, Inc. Investor Presentation
May 7, 2024 | NYSE: AX |
Safe Harbor
This presentation contains forward-looking statements that involve risks and uncertainties, including without limitation statements relating to Axos Financial, Inc.'s ("Axos") financial prospects and other projections of its performance and asset quality, Axos' deposit balances and capital ratios, Axos' ability to continue to grow profitably and increase its business, Axos' ability to continue to diversify its lending and deposit franchises, the anticipated timing and financial performance of other offerings, initiatives, and acquisitions, expectations of the environment in which Axos operates and projections of future performance. These forward- looking statements are made on the basis of the views and assumptions of management regarding future events and performance as of the date of this presentation. Actual results and the timing of events could differ materially from those expressed or implied in such forward-looking statements as a result of risks and uncertainties, including without limitation Axos' ability to successfully integrate acquisitions and realize the anticipated benefits of the transactions, changes in the interest rate environment, monetary policy, inflation, government regulation, general economic conditions, changes in the competitive marketplace, conditions in the real estate markets in which we operate, risks associated with credit quality, our ability to attract and retain deposits and access other sources of liquidity, and the outcome and effects of litigation and other factors beyond our control. These and other risks and uncertainties detailed in Axos' periodic reports filed with the Securities and Exchange Commission, including its Annual Report on Form 10-Kfor the fiscal year ended June 30, 2023, Form 10-Qfor the quarter ended
March 31, 2024 and its last earnings press release, could cause actual results to differ materially from those expressed or implied in any forward-looking statements. Readers are cautioned not to place undue reliance on these forward-lookingstatements, which speak only as of the date of this press release. Axos undertakes no obligation to publicly update or revise any forward-lookingstatements, whether as a result of new information, future events or otherwise. All written and oral forward-lookingstatements made in connection with this presentation, which are attributable to us or persons acting on Axos' behalf are expressly qualified in their entirety by the foregoing information.
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Axos' Business Model is Differentiated From Other Banks
Customer | Sales | Servicing | Distribution | ||||
Acquisition | |||||||
› | Digital Marketing | › | Automated | › | Self-service | › | Balance sheet |
› | Affinity and | fulfillment | › | Digital journey | › | Whole loan sales | |
Distribution | › | Inbound call center | › | Direct banker (call | options | ||
Partners | sales | center) | › | Securitization | |||
› | Data mining/target | › | Outbound call | ||||
feeding direct | center sales | ||||||
marketing | › | Minimal outside | |||||
› | Cross-selling | sales | |||||
› | Significant inside | ||||||
sales |
Core Digital Capabilities
Data Driven
Insight
Integrated
Customer
Experience
Digital
Marketing
Digitally
Enabled
Operations
Next-Gen
Technology
3
Axos is a Top Performer Versus Bank Peer Group
Axos Bank | Peer Group1 | Percentile | |||
ROAA | 2.09% | 0.65% | 96% | ||
Return on Equity | 21.04% | 6.69% | 94% | ||
Net Interest Income | 4.46% | 2.70% | 96% | ||
Efficiency Ratio | 42.71% | 72.82% | 6% |
The 94% on ROE means that the Bank outperformed 94% of all banks. The 6% efficiency ratio ranking means that only 6% of banks have lower expenses in comparison to their revenues.
Source: Uniform Bank Performance Report (UBPR) as of December 31, 2023; data retrieved March 14, 2024. | 4 |
Note 1: Peer group is all savings banks with assets greater than $1 billion for quarter ended December 31, 2023. |
Axos Financial's Three Divisions Provide the Foundation for Sustained Long-term Growth
Investment Thesis
Consumer
Banking
Securities Commercial Banking
- Diverse mix of assets, deposits, and fee income reduces risk and provides multiple growth opportunities in varying environments
- Differentiated retail digital strategy from "online savings banks" or fin-tech competitors
- Structural cost advantage vs. traditional banks
- Differentiated distribution strategy
- New business initiatives generate incremental growth
- Universal Digital Banking Platform and Enterprise Technology stack provide operating leverage opportunity
- Technology synergies among divisions reduce overall cost of growth strategy
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Consolidated Fiscal Third Quarter 2024 Highlights Compared with Fiscal Third Quarter 2023
Asset Growth | Deposit Growth | |
$ Millions | $ Millions | |
14% | 14% | |
Q3 2024 | |||
Net Income | Diluted EPS | ||
$ Millions | $ Diluted EPS | ||
39% | |||
45% |
Return on Equity = 20.71%
Return on Assets = 1.98%
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Diluted EPS and Book Value Per Share Have Been
Consistently Strong
Diluted EPS (FY) | Book Value Per Share (FY) | |
$ Per Share | $ Per Share |
16.4% CAGR | 16.4% CAGR |
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Expanding Net Interest Margin Through a Variety of Interest Rate Cycles1
Note 1: The Company partnered with H&R Block Bank (HRB) to provide HRB branded financial products. The partnership was terminated December | 8 |
8, 2020. NIM excludes impact of HRB. |
Interest Rate Components of Loan & Lease Portfolio
As of March 31, 2024
Mix of Loan Repricing Types | Fixed/Hybrid Years to Maturity / Repricing1 | ||
$ Millions |
Years
11% 21% 36% 57% 87% 99% 100%
Note 1: Excludes SF Warehouse Lending and Equipment Leasing. The years to repricing assumes no loan prepayments and reflects only contractual terms.
Of the fixed and hybrid rate loan balances in our portfolio at March 31, 2024, 57% will reprice within 3 years and 87% will reprice within 5 years.
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Loan Growth by Category
$ Millions
Loans
Single Family
Mortgage &
Warehouse
Multifamily &
Commercial
Mortgage
Commercial
Real Estate
Commercial &
Industrial
Non-RE
Auto & Consumer
Other
Q3 FY24 | Q2 FY24 | Inc (Dec) | ||||
Jumbo Mortgage | ||||||
$ | 3,964 | $ | 3,993 | $ | (29) | |
SF Warehouse Lending | 159 | 99 | 60 | |||
Multifamily | 2,663 | 2,708 | (45) | |||
Small Balance Commercial | 1,338 | 1,357 | (19) | |||
CRE Specialty | 5,220 | 5,400 | (180) | |||
Lender Finance RE | 693 | 643 | 50 | |||
Lender Finance Non-RE | 2,320 | 2,235 | 85 | |||
Asset-Based and Cash | 1,617 | 1,189 | 428 | |||
Flow Lending | ||||||
Capital Call Facilities | 891 | 753 | 138 | |||
Auto | 399 | 419 | (20) | |||
Unsecured/OD | 51 | 59 | (8) | |||
2 | 5 | (3) | ||||
$ | 19,317 | $ | 18,860 | $ | 457 |
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Disclaimer
Axos Financial Inc. published this content on 07 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 07 May 2024 23:01:07 UTC.