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- **Record Loan Growth**: $1.6 billion net loan growth, including $1 billion from Verdant, driving 15%+ annualized net interest income growth. 
- **Verdant Synergies**: Expected to add $150-200M quarterly and boost EPS by 2-3% in FY2026. 
- **Strong Credit Metrics**: Nonperforming loans at 74bp, down 5bp linked quarter; net charge-offs at 11bp. 
- **Deposit Expansion**: Total deposits up 11.5% year-over-year to $22.3B, with 94% in low-cost funding. 
- **AI-Driven Efficiency**: Investing in AI to reduce expenses below 30% of revenue growth, with Axos Workstation rolling out to RIAs. 
- **M&A Focus**: Actively pursuing accretive deals in specialty lending, with $1.3B pipeline in floor plan lending.

**【CEO Summary Section】**
- **Revenue Growth and Loan Expansion**: Achieved $1.6 billion net loan growth in Q1 2026, including $1 billion from the Verdant acquisition. Net interest income increased by $11 million linked quarter, driven by growth across single-family mortgage, commercial specialty real estate, and auto lending. 
- **Verdant Acquisition Impact**: Added $1.2 billion in loans and leases, with expectations for $150-200 million quarterly growth. The acquisition is projected to be accretive to EPS by 2-3% in FY2026 and 5-6% in FY2027. 
- **Credit Quality**: Nonperforming loans improved to 74 basis points of total loans, down 5 basis points linked quarter. Net charge-offs declined 5 basis points year-over-year to 11 basis points. 
- **Deposit Growth**: Total deposits reached $22.3 billion, up 6.9% year-over-year, with 94% in low-cost demand, money market, and savings accounts. 
- **AI and Operational Efficiency**: Investing in AI to enhance productivity across risk, compliance, and software development. The Axos Professional Workstation is being rolled out to RIAs and brokers to integrate banking products seamlessly. 

**【CFO Financial Commentary】**
- **Financial Performance**: Net income of $112.4 million, up 1.5% linked quarter. Diluted EPS was $1.94, with adjusted EPS of $2.06 excluding deal-related expenses. 
- **Expense Management**: Noninterest expenses increased by $5.6 million linked quarter, driven by salaries and benefits. Excluding one-time Verdant costs, expenses grew 2.8%. 
- **Tax Rate**: Effective tax rate of 25% for the quarter, benefiting from California tax changes. Forward guidance remains 26-27%. 
- **Loan Pipeline**: $2.2 billion pipeline as of October 24, including $1.1 billion in commercial verticals and $76 million in auto/consumer loans. 

**【Q&A Highlights】**
- **Credit Risk Management**: Emphasized fraud prevention in NDFI (Non-Depository Financial Institutions) lending, with stringent title insurance and lien monitoring. No material losses expected from current nonperforming assets. 
- **Verdant Funding**: $754 million in securitizations with 3.7-year weighted average life and spreads of 2.57-3.07%. Plans to replace with lower-cost deposits over time. 
- **M&A Strategy**: Actively pursuing accretive acquisitions in specialty lending and banking, with focus on cultural fit and financial discipline. 
- **Floor Plan Lending**: New team secured term sheets for several hundred million in lines, leveraging manufacturer repurchase agreements (MBRAs). 
- **Expense Growth Guidance**: Personnel and professional services expenses to grow below 30% of net interest and noninterest income growth, supported by AI-driven efficiency improvements.

Axos Financial, Inc. (AX) Q1 2026 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

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Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

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Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

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Other Comprehensive Income

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Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

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Basic EPS from Discontinued Operations

Diluted EPS

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Diluted EPS from Discontinued Operations

AX

AX fundamentals

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