Axos Financial, Inc. — First Quarter Fiscal 2027 Earnings Summary

Financial Performance:

• Net income was $129.6 million for the quarter ended September 30, 2026, compared to $112.4 million in the same period of 2025, a 15.4% increase.
• Diluted earnings per share (EPS) were $2.25 for the quarter ended September 30, 2026, up from $1.94 in the prior year period, a 16.0% increase.
• Adjusted earnings (Non-GAAP) increased 12.0% year-over-year to $134.8 million, compared to $120.4 million in the prior year.
• Adjusted EPS (Non-GAAP) increased 13.0% year-over-year to $2.34, compared to $2.07 in the prior year.
• Net interest income was $331.3 million, up 13.8% from $291.1 million in the prior year.
• Non-interest income was $63.8 million, up 97.3% from $32.3 million in the prior year.
• Non-interest expense increased to $195.4 million from $156.2 million in the prior year.
• Provision for credit losses was $24.5 million, compared to $17.3 million in the prior year.
• Net interest margin was 4.64% for the quarter, up 10 basis points from 4.54% in the quarter ended June 30, 2026.
• Total assets increased to $30.8 billion at September 30, 2026, from $30.0 billion at June 30, 2026.
• Total deposits were $25.4 billion at September 30, 2026, an increase of $847.8 million from $24.6 billion at June 30, 2026.
• Ending net loan balances were $25.9 billion, reflecting loan growth of $316.6 million for the quarter.
• Book value per share increased to $57.92 at September 30, 2026, up 17.5% from $49.31 at September 30, 2025.
• Tangible book value per common share was $52.68 at September 30, 2026, up from $45.22 at September 30, 2025.
• Return on average assets was 1.72% for the quarter.
• Return on average common stockholders' equity was 15.66% for the quarter.
• Efficiency ratio was 49.46% for the quarter, compared to 48.32% in the prior year period.
• Non-performing assets to total assets were 0.51% as of September 30, 2026, down from 0.64% as of September 30, 2025.
• Net annualized charge-offs to average loans were 1.09% for the quarter; excluding two C&I charge-offs, the rate was 0.08%.
• Allowance for credit losses to total loans held for investment was 1.16% as of September 30, 2026.

Guidance and Future Outlook:

• Management expects loan growth to accelerate in the December 2026 quarter driven by several large loans that did not close in the September 2026 quarter.
• The loan pipeline remains solid.
• Management anticipates continued growth in net interest income and non-interest income.
• Forward-looking statements include projections regarding financial prospects, asset quality, deposit balances, capital ratios, and the ability to grow profitably and diversify lending and deposit franchises.

Business Segments and Product Lines:

• The Company operates through two segments: the Banking Business Segment and the Securities Business Segment.
• Pretax income for the Securities Business Segment increased 23.8% year-over-year to $10.3 million for the three months ended September 30, 2026.
• Banking Business Segment net interest income was $325.6 million for the quarter.
• Securities Business Segment net interest income was $10.6 million for the quarter.
• Non-interest income growth was driven by operating lease rental and other income from the acquisition of Verdant Commercial Capital, LLC ("Verdant"), commercial office complex operating lease rental income, and higher prepayment penalty income.
• Non-interest expense increases were primarily due to higher depreciation and amortization expense related to Verdant and the acquisition of deposits, increased salaries and related costs, general and administrative expense, and higher data and operational processing expense.

Market and Competitive Landscape:

• Axos Financial, Inc. is a component of the Russell 2000® Index and the S&P SmallCap 600® Index.
• Axos Clearing LLC had approximately $48.0 billion of assets under custody and/or administration as of September 30, 2026.
• The company provides consumer and business banking products nationwide through low-cost distribution channels and affinity partners.
• Axos Clearing LLC provides securities clearing services to introducing broker-dealers and registered investment advisor correspondents.
• Axos Invest, Inc. provides digital investment advisory services to retail investors.

Risks and Challenges:

• Risks include the ability to successfully integrate acquisitions and realize anticipated benefits.
• Potential impacts from changes in the interest rate environment, monetary policy, inflation, and tariffs.
• Risks associated with credit quality, including the potential for higher charge-offs.
• Challenges related to attracting and retaining deposits and accessing other sources of liquidity.
• General economic conditions and changes in the competitive marketplace.
• Conditions in the real estate markets in which the company operates.
• Risks related to government regulation and the outcome of litigation.

Management Commentary and Tone:

• Greg Garrabrants, President and CEO, stated that net interest margin increased by 10 basis points quarter-over-quarter, resulting in 16.8% annualized growth in net interest income.
• Garrabrants noted that excluding net paydowns in single-family mortgage and warehouse, multifamily, and small balance commercial real estate, ending loans grew by approximately $563 million.
• Derrick Walsh, CFO, highlighted double-digit growth in net interest income and non-interest income coupled with good operating expense management.
• Walsh noted that excluding two C&I charge-offs, annualized net charge-offs to average loans were 0.08% and the company remains well-reserved given historically low levels of net charge-offs.

Other Key Points:

• During the quarter ended September 30, 2026, and through October 23, 2026, the Company repurchased $14.0 million of Axos common stock at an average price of $87.40 per share.
• As of October 23, 2026, the Company had $112.1 million of share repurchase authorization remaining.
• The Company acquired Verdant Commercial Capital, LLC ("Verdant") on September 30, 2025.
• The Company acquired deposits from Capital One during the quarter.
• The conference call and webcast were held on October 29, 2026, at 5:00 PM Eastern / 2:00 PM Pacific.
• Axos Financial, Inc. common stock is listed on the NYSE and NYSE Texas under the symbol "AX".