8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C.  20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

Date of Report (Date of earliest event reported):  April 26, 2023

Axos Financial, Inc.

(Exact name of registrant as specified in its charter)

Delaware	001-37709	33-0867444
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification Number)

9205 West Russell Road, Ste 400

Las Vegas, NV 89148

(Address of principal executive offices and zip code)

Registrant’s telephone number, including area code: (858) 649-2218          

Securities registered pursuant to Section 12(b) of the Act:
Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common stock, $0.01 par value	AX	New York Stock Exchange

Not Applicable

(Former name or former address, if changed since last report.)

 Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

☐                                    Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐                                    Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐                                    Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐                                    Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

☐                                    Emerging growth company  

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐

Item 2.02     Results of Operations and Financial Condition

On April 27, 2023, Axos Financial, Inc. (the “Registrant” or the “Company”) issued a press release announcing its fiscal third quarter results of operations for the period ended March 31, 2023. The press release is furnished as Exhibit 99.1. In addition, the Registrant is furnishing the related quarterly earnings supplement in two different formats as Exhibits 99.2 and 99.3.

Pursuant to General Instruction B.2. of Form 8-K, the information in this Item 2.02 of Form 8-K, including Exhibit 99.1, 99.2 and 99.3 is being furnished pursuant to Item 2.02 and shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934 or otherwise be subject to the liabilities of that section, nor is it incorporated by reference into any filing of the Registrant under the Securities Act of 1933 or the Securities Exchange Act of 1934, whether made before or after the date hereof, regardless of any general incorporation language in such filing.

Item 8.01     Other Events

On April 26, 2023, the Board of Directors of the Company authorized a program to repurchase up to $100 million of its common stock. The new share repurchase authorization is in addition to the existing share repurchase plan approved on August 2, 2019, which had approximately $21 million remaining as of March 31, 2023.

The Company may repurchase shares on the open market or through privately negotiated transactions at times and prices considered appropriate by the Company, at the discretion of management, and subject to its assessment of alternative uses of capital, stock trading price, general market conditions and other factors. There is no set start or end date for the common stock repurchase program.

Item 9.01     Financial Statements and Exhibits.

(d)    Exhibits.

Exhibit	Description
99.1	Press Release
99.2	Press Release Earnings Supplement
99.3	Press Release Earnings Supplement PDF
104	Cover Page Interactive Data File (embedded within the Inline XBRL document)

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

		Axos Financial, Inc.
Date:	April 27, 2023	By:	/s/ Derrick K. Walsh
			Derrick K. Walsh
			EVP and Chief Financial Officer

EX-99.1

Axos Financial, Inc. Reports Fiscal Third Quarter 2023 Results

Third Quarter Net Income Increased 29%

LAS VEGAS, NV – (BUSINESS WIRE) – April 27, 2023 – Axos Financial, Inc. (NYSE: AX) (“Axos”), today announced unaudited financial results for the fiscal third quarter ended March 31, 2023. Net income was $79.9 million, an increase of 29% from $61.8 million for the quarter ended March 31, 2022. Diluted earnings per share were $1.32, an increase of $0.30, or 29%, as compared to diluted earnings per share of $1.02 for the quarter ended March 31, 2022.

Adjusted earnings and adjusted earnings per diluted common share (“adjusted EPS”), non-GAAP measures, which exclude non-cash amortization expenses and non-recurring costs related to mergers and acquisitions, and other non-recurring costs increased 28% and 29% to $81.8 million and $1.35, respectively, for the quarter ended March 31, 2023, compared to $63.8 million and $1.05, respectively, for the quarter ended March 31, 2022.

Fiscal Third Quarter 2023 Financial Summary:

	Three Months Ended March 31,
(Dollars in thousands, except per share data)	2023		2022		% Change
Net interest income	$	198,982	$	149,538	33.1%
Non-interest income	$	32,246	$	28,774	12.1%
Net income	$	79,850	$	61,823	29.2%
Adjusted earnings (Non-GAAP)1	$	81,832	$	63,815	28.2%
Diluted EPS	$	1.32	$	1.02	29.4%
Adjusted EPS (Non-GAAP)1	$	1.35	$	1.05	28.6%
1See “Use of Non-GAAP Financial Measures”

For the nine months ended March 31, 2023, net income was $219.8 million, an increase of 20% from net income of $182.8 million for the nine months ended March 31, 2022. Diluted earnings per share were $3.63 for the nine months March 31, 2023, an increase of $0.61, or 20%, as compared to diluted earnings per share of $3.02 for the nine months ended March 31, 2022.

“We had another strong quarter, with double-digit year-over-year growth in deposits, net interest income and book value per share,” stated Greg Garrabrants, President and Chief Executive Officer of Axos. “Our strong liquidity, diverse funding, and asset-based lending helped us maintain a 4.42% consolidated net interest margin, despite rising funding costs. With excess capital at the Bank, Axos Clearing and the Holding Company, we are well positioned to capitalize on market dislocations.”

“We generated 29% year-over-year growth in diluted earnings per share and an annualized return on average common equity of 17.4% through strong revenue growth and a stable net interest margin,” stated Derrick Walsh, Executive Vice President and Chief Financial Officer of Axos. “Axos Securities continues to benefit from rising interest rates, as reflected in the 166% year-over-year increase in broker-dealer fee income and the $19.5 million pretax income this quarter. With cash sorting deposits at Axos Advisor Services near its cyclical lows as a percentage of assets under custody and a significant percentage of our loans and deposits re-pricing with changes in the Fed Funds rate, we have sufficient flexibility to manage our net interest margin in a variety of interest rate environments.”

Other Highlights

•Net loans for investment totaled $15.8 billion at March 31, 2023, an increase of 9.2% annualized, from $15.5 billion at December 31, 2022

•Deposits totaled $16.7 billion at March 31, 2023, an increase of $1.0 billion, or 26.8% annualized, from $15.7 billion at December 31, 2022

•Approximately 90% of total deposits were FDIC-insured or collateralized at both March 31, 2023 and December 31, 2022

•Pretax income for the Securities Business segment was $19.5 million and $44.0 million for the three and nine months ended March 31, 2023

•Net interest margin was 4.42% for the quarter ended March 31, 2023, compared to 4.02% for the quarter ended March 31, 2022

•Non-performing loans to total loans was 0.60% at March 31, 2023, down slightly from 0.61% at December 31, 2022

•Unrealized losses on the $280 million available-for-sale securities portfolio was less than 0.5% of stockholders’ equity at March 31, 2023; no securities were classified as held-to-maturity

•Tier 1 capital to risk weighted assets was 11.55% for the Bank and 10.71% for Axos Financial, Inc. at March 31, 2023, up from 11.28% and 10.55%, respectively, at December 31, 2022

•Repurchased $31.6 million of common stock during the quarter ended March 31, 2023

•Axos’ Board of Directors authorized a new $100 million common stock repurchase program on April 26, 2023

Fiscal Third Quarter 2023 Income Statement Summary

Net income was $79.9 million or $1.32 per diluted common share for the three months ended March 31, 2023, compared to $61.8 million, or $1.02 per diluted common share for the three months ended March 31, 2022. Net interest income increased$49.4 million or 33% for the three months ended March 31, 2023 compared to the three months ended March 31, 2022, primarily due to higher rates earned and higher average balances in the loan portfolio, partially offset by higher rates paid on deposits and increased deposit balances.

The provision for credit losses was $5.5 million for the three months ended March 31, 2023 compared to $4.5 million for the three months ended March 31, 2022 and was primarily driven by loan growth, changes in the macroeconomic environment, and changes in loan product mix.

Non-interest income increased to $32.2 million for the three months ended March 31, 2023 compared to $28.8 million for the three months ended March 31, 2022. Increases of $8.6 million in broker-dealer fee income and $1.2 million in banking and service fees were partially offset by decreases of $4.7 million in mortgage banking income, $0.9 million in advisory fee income and $0.7 million in prepayment penalty fee income.

Non-interest expense, comprised of various operating expenses, increased $24.2 million to $111.0 million for the three months ended March 31, 2023 from $86.8 million for the three months ended March 31, 2022. The increase was primarily attributable to $9.9 million in higher salaries and related costs, $8.4 million in advertising and promotional expenses, $3.5 million in data processing expenses, and $2.4 million in professional services expenses.

Balance Sheet Summary

Axos’ total assets increased by $2.4 billion, or 14%, to $19.8 billion, at March 31, 2023, from $17.4 billion at June 30, 2022, primarily due to a $1.7 billion increase in loans held for investment and a $0.9 billion increase in cash. Total liabilities increased by $2.2 billion, or 14%, to $17.9 billion at March 31, 2023, from $15.8 billion at June 30, 2022, primarily due to an increase of $2.8 billion in deposits offset by $0.4 billion decrease in securities loaned. Stockholders’ equity increased by approximately $201.1 million, or 12%, to $1.8 billion at March 31, 2023 from $1.6 billion at June 30, 2022. The increase was primarily the result of $219.8 million in net income and $15.6 million of stock-based compensation activity, partially offset by the repurchase of $31.6 million of common stock.

The Bank’s common equity tier 1 capital ratio was 11.55% at March 31, 2023 compared to 11.28% at December 31, 2022.

Conference Call

A conference call and webcast will be held on Thursday, April 27, 2023 at 5:00 PM Eastern / 2:00 PM Pacific. Analysts and investors may dial in and participate in the question/answer session. To access the call, please dial: 877-407-8293. The conference call will be webcast live, and both the webcast and the earnings supplement may be accessed at Axos’ website, investors.axosfinancial.com. For those unable to listen to the live broadcast, a replay will be available until May 27, 2023, at Axos’ website and telephonically by dialing toll-free number 877-660-6853, passcode 13737601.

About Axos Financial, Inc. and Subsidiaries

The condensed consolidated financial statements include the accounts of Axos Financial, Inc. (“Axos”) and its wholly owned subsidiaries, Axos Bank (the “Bank”) and Axos Nevada Holding, LLC (“Axos Nevada Holding” and collectively, the “Company”). Axos, the Bank and Axos Nevada Holding comprise substantially all of the Company's assets and liabilities and revenues and expenses. Axos Nevada Holding wholly owns its subsidiary Axos Securities, LLC, which wholly owns subsidiaries Axos Clearing LLC, a clearing broker dealer, Axos Invest, Inc., a registered investment advisor, and Axos Invest LLC, an introducing broker dealer. With approximately $19.8 billion in consolidated assets, Axos Financial, Inc. through Axos Bank provides consumer and business banking products through its low-cost distribution channels and affinity partners. Axos Clearing LLC (including its business division AAS), with approximately $33.1 billion of assets under custody and/or administration, and Axos Invest, Inc., provide comprehensive securities clearing and custody services to introducing broker-dealers and registered investment advisor correspondents and digital investment advisory services to retail investors, respectively. Axos Financial, Inc.’s common stock is listed on the NYSE under the symbol “AX” and is a component of the Russell 2000® Index, the S&P SmallCap 600® Index, the KBW Nasdaq Financial Technology Index, and the Travillian Tech-Forward Bank Index. For more information on Axos Financial, Inc. please visit investors.axosfinancial.com.

Segment Reporting

The Company operates through two segments: Banking Business and Securities Business. In order to reconcile the two segments to the consolidated totals, the Company includes parent-only activities and intercompany eliminations. Inter-segment transactions are eliminated in consolidation and primarily include non-interest income earned by the Securities Business segment and non-interest expense incurred by the Banking Business segment for cash sorting fees related to deposits sourced from Securities Business segment customers, as well as interest expense paid by the Banking Business segment to each of the wholly-owned subsidiaries of the Company and to the Company itself for their operating cash held on deposit with the Business Banking segment.

The following tables present the operating results of the segments and reconciliations:

	Three Months Ended March 31, 2023
(Dollars in thousands)	Banking Business		Securities Business		Corporate/Eliminations		Axos Consolidated
Net interest income	$	196,249	$	6,335	$	(3,602)	$	198,982
Provision for credit losses	5,500		—		—		5,500
Non-interest income	10,685		38,298		(16,737)		32,246
Non-interest expense	98,252		25,138		(12,346)		111,044
Income before taxes	$	103,182	$	19,495	$	(7,993)	$	114,684

	Three Months Ended March 31, 2022
(Dollars in thousands)	Banking Business		Securities Business		Corporate/Eliminations		Axos Consolidated
Net interest income	$	147,828	$	3,377	$	(1,667)	$	149,538
Provision for credit losses	4,500		—		—		4,500
Non-interest income	15,741		15,609		(2,576)		28,774
Non-interest expense	65,076		20,242		1,501		86,819
Income before taxes	$	93,993	$	(1,256)	$	(5,744)	$	86,993

	Nine Months Ended March 31, 2023
(Dollars in thousands)	Banking Business		Securities Business		Corporate/Eliminations		Axos Consolidated
Net interest income	$	574,524	$	15,486	$	(10,643)	$	579,367
Provision for credit losses	17,750		—		—		17,750
Non-interest income	31,954		103,467		(47,638)		87,783
Non-interest expense	295,332		74,924		(35,597)		334,659
Income before taxes	$	293,396	$	44,029	$	(22,684)	$	314,741

	Nine Months Ended March 31, 2022
(Dollars in thousands)	Banking Business		Securities Business		Corporate/Eliminations		Axos Consolidated
Net interest income	$	432,328	$	14,059	$	(4,639)	$	441,748
Provision for credit losses	12,500		—		—		12,500
Non-interest income	46,864		45,169		(5,770)		86,263
Non-interest expense	190,250		61,169		5,850		257,269
Income before taxes	$	276,442	$	(1,941)	$	(16,259)	$	258,242

Use of Non-GAAP Financial Measures

In addition to the results presented in accordance with GAAP, this release includes the non-GAAP financial measures adjusted earnings, adjusted earnings per diluted common share and tangible book value per common share. Non-GAAP financial measures have inherent limitations, may not be comparable to similarly titled measures used by other companies and are not audited. Readers should be aware of these limitations and should be cautious as to their reliance on such measures. As noted below with respect to each measure, we believe the non-GAAP financial measures disclosed in this release enhance investors’ understanding of our business and performance, and our management uses these non-GAAP measures when it internally evaluates the performance of our business and makes operating decisions. However, these non-GAAP measures should not be considered in isolation, or as a substitute for GAAP basis financial measures.

We define “adjusted earnings”, a non-GAAP financial measure, as net income without the after-tax impact of non-recurring acquisition-related costs (including amortization of intangible assets related to acquisitions) and other costs (unusual or non-recurring charges). Adjusted earnings per diluted common share (“adjusted EPS”), a non-GAAP financial measure, is calculated by dividing non-GAAP adjusted earnings by the average number of diluted common shares outstanding during the period. We believe the non-GAAP measures of adjusted earnings and adjusted EPS provide useful information about Axos’ operating performance. We believe excluding the non-recurring acquisition-related costs and other costs provides investors with an alternative understanding of Axos’ core business.

Below is a reconciliation of net income, the nearest compatible GAAP measure, to adjusted earnings and adjusted EPS (Non-GAAP) for the periods shown:

	Three Months Ended				Nine Months Ended
	March 31,				March 31,
(Dollars in thousands, except per share amounts)	2023		2022		2023		2022
Net income	$	79,850	$	61,823	$	219,809	$	182,820
Acquisition-related costs	2,846		2,803		8,169		8,676
Other costs1	—		—		16,000		—
Tax effects of adjustments	(864)		(811)		(7,290)		(2,534)
Adjusted earnings (Non-GAAP)	$	81,832	$	63,815	$	236,688	$	188,962
Adjusted EPS (Non-GAAP)	$	1.35	$	1.05	$	3.91	$	3.12

1Other costs for the nine months ended March 31, 2023 reflect an accrual in the first quarter of 2023 as a result of an adverse legal judgement that has not been finalized.

We define “tangible book value”, a non-GAAP financial measure, as book value adjusted for goodwill and other intangible assets. Tangible book value is calculated using common stockholders’ equity minus mortgage servicing rights, goodwill and other intangible assets. Tangible book value per common share, a non-GAAP financial measure, is calculated by dividing tangible book value by the common shares outstanding at the end of the period. We believe tangible book value per common share is useful in evaluating the Company’s capital strength, financial condition, and ability to manage potential losses.

Below is a reconciliation of total stockholders’ equity to tangible book value per common share (Non-GAAP) as of the dates indicated:

	March 31,
(Dollars in thousands, except per share amounts)	2023		2022
Total stockholders’ equity	$	1,844,104	$	1,585,585
Less: mortgage servicing rights, carried at fair value	25,396		23,519
Less: goodwill and other intangible assets	154,928		159,150
Tangible common stockholders’ equity (Non-GAAP)	$	1,663,780	$	1,402,916
Common shares outstanding at end of period	59,355,124		59,662,795
Tangible book value per common share (Non-GAAP)	$	28.03	$	23.51

Forward-Looking Safe Harbor Statement

This press release contains forward-looking statements that involve risks and uncertainties, including without limitation statements relating to 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 press release. 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 2022 Form 10-K, as supplemented by its Quarterly Report on Form 10-Q for the period ended December 31, 2022, 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-looking statements, which speak only as of the date of this press release. All forward-looking statements are qualified in their entirety by this cautionary statement, and Axos undertakes no obligation to revise or update any forward-looking statements to reflect events or circumstances after the date of this press release. Axos undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. All written and oral forward-looking statements made in connection with this press release, which are attributable to us or persons acting on Axos’ behalf are expressly qualified in their entirety by the foregoing information.

Investor Relations Contact:

Johnny Lai, CFA

SVP, Corporate Development & Investor Relations

858-649-2218

jlai@axosfinancial.com

The following tables set forth certain selected financial data concerning the periods indicated:

AXOS FINANCIAL, INC. AND SUBSIDIARIES

SELECTED CONSOLIDATED FINANCIAL INFORMATION

(Unaudited – dollars in thousands)

	March 31, 2023			June 30, 2022			March 31, 2022
Selected Balance Sheet Data:
Total assets	$	19,782,481		$	17,401,165		$	16,080,950
Loans—net of allowance for credit losses	15,836,255			14,091,061			13,093,603
Loans held for sale, carried at fair value	7,920			4,973			19,611
Loans held for sale, lower of cost or fair value	303			10,938			11,182
Allowance for credit losses - loans	161,293			148,617			143,372
Securities—trading	400			1,758			366
Securities—available-for-sale	279,612			262,518			229,510
Securities borrowed	87,293			338,980			274,644
Customer, broker-dealer and clearing receivables	323,359			417,417			510,561
Total deposits	16,738,869			13,946,422			12,733,002
Advances from the FHLB	90,000			117,500			152,500
Borrowings, subordinated notes and debentures	334,330			445,244			381,682
Securities loaned	114,613			474,400			447,748
Customer, broker-dealer and clearing payables	406,092			511,654			543,905
Total stockholders’ equity	1,844,104			1,642,973			1,585,585
Capital Ratios:
Equity to assets at end of period	9.32		%	9.44		%	9.86		%
Axos Financial, Inc.:
Tier 1 leverage (to adjusted average assets)	9.29		%	9.25		%	9.43		%
Common equity tier 1 capital (to risk-weighted assets)	10.71		%	9.86		%	10.23		%
Tier 1 capital (to risk-weighted assets)	10.71		%	9.86		%	10.23		%
Total capital (to risk-weighted assets)	13.63		%	12.73		%	13.30		%
Axos Bank:
Tier 1 leverage (to adjusted average assets)	10.17		%	10.65		%	10.51		%
Common equity tier 1 capital (to risk-weighted assets)	11.55		%	11.24		%	11.43		%
Tier 1 capital (to risk-weighted assets)	11.55		%	11.24		%	11.43		%
Total capital (to risk-weighted assets)	12.40		%	12.01		%	12.24		%
Axos Clearing LLC:
Net capital	$	79,459		$	38,915		$	39,109
Excess capital	$	74,377		$	32,665		$	31,612
Net capital as a percentage of aggregate debit items	31.27		%	12.45		%	10.43		%
Net capital in excess of 5% aggregate debit items	$	66,755		$	23,290		$	20,369

AXOS FINANCIAL, INC. AND SUBSIDIARIES

SELECTED CONSOLIDATED FINANCIAL INFORMATION

(Unaudited – dollars in thousands, except per share data)

	At or for the Three Months Ended						At or for the Nine Months Ended
	March 31,						March 31,
	2023			2022			2023			2022
Selected Income Statement Data:
Interest and dividend income	$	307,334		$	160,181		$	810,708		$	475,567
Interest expense	108,352			10,643			231,341			33,819
Net interest income	198,982			149,538			579,367			441,748
Provision for credit losses	5,500			4,500			17,750			12,500
Net interest income after provision for credit losses	193,482			145,038			561,617			429,248
Non-interest income	32,246			28,774			87,783			86,263
Non-interest expense	111,044			86,819			334,659			257,269
Income before income tax expense	114,684			86,993			314,741			258,242
Income tax expense	34,834			25,170			94,932			75,422
Net income	$	79,850		$	61,823		$	219,809		$	182,820
Per Common Share Data:
Net income:
Basic	$	1.33		$	1.04		$	3.67		$	3.07
Diluted	$	1.32		$	1.02		$	3.63		$	3.02
Adjusted earnings per common share (Non-GAAP)1	$	1.35		$	1.05		$	3.91		$	3.12
Book value per common share	$	31.07		$	26.58		$	31.07		$	26.58
Tangible book value per common share (Non-GAAP)1	$	28.03		$	23.51		$	28.03		$	23.51
Weighted average number of common shares outstanding:
Basic	59,930,634			59,542,128			59,928,263			59,476,488
Diluted	60,627,400			60,611,959			60,595,414			60,605,486
Common shares outstanding at end of period	59,355,124			59,662,795			59,355,124			59,662,795
Common shares issued at end of period	69,340,533			68,617,410			69,340,533			68,617,410
Performance Ratios and Other Data:
Loan originations for investment	$	1,735,651		$	2,363,599		$	6,235,451		$	6,981,749
Loan originations for sale	45,200			166,327			158,500			569,614
Return on average assets	1.71		%	1.59		%	1.60		%	1.63		%
Return on average common stockholders’ equity	17.42		%	15.89		%	16.73		%	16.33		%
Interest rate spread2	3.46		%	3.84		%	3.57		%	3.93		%
Net interest margin3	4.42		%	4.02		%	4.41		%	4.11		%
Net interest margin3 – Banking Business Segment	4.50		%	4.21		%	4.56		%	4.33		%
Efficiency ratio4	48.02		%	51.26		%	50.16		%	48.72		%
Efficiency ratio4 – Banking Business Segment	47.48		%	39.79		%	48.70		%	39.70		%
Asset Quality Ratios:
Net annualized charge-offs to average loans	0.04		%	0.05		%	0.04		%	0.02		%
Non-performing loans and leases to total loans	0.60		%	1.05		%	0.60		%	1.05		%
Non-performing assets to total assets	0.51		%	0.87		%	0.51		%	0.87		%
Allowance for credit losses - loans to total loans held for investment	1.01		%	1.08		%	1.01		%	1.08		%
Allowance for credit losses - loans to non-performing loans	168.12		%	103.33		%	168.12		%	103.33		%

1See “Use of Non-GAAP Financial Measures” herein.

2     Interest rate spread represents the difference between the annualized weighted average yield on interest-earning assets and the annualized weighted average

rate paid on interest-bearing liabilities.

3    Net interest margin represents annualized net interest income as a percentage of average interest-earning assets.

4 Efficiency ratio represents non-interest expense as a percentage of the aggregate of net interest income and non-interest income.

EX-99.2

Axos Q3 Fiscal 2023 Earnings Supplement April 27, 2023 NYSE: AX

1 Loan Growth by Category for Third Quarter Ended March 31, 2023 Loans Single Family Mortgage & Warehouse Multifamily & Commercial Mortgage Commercial Real Estate Auto & Consumer Jumbo Mortgage Multifamily Small Balance Commercial Lender Finance RE SF Warehouse Lending Asset-Based Lending Auto CRE Specialty Unsecured / OD Equipment Leasing Q3 FY23 $ millions Other Q2 FY23 $80 18 70 (37) (29) 61 (4) (37) - Inc (Dec) Commercial & Industrial Non-RE Lender Finance Non-RE 207 43 $16,020 $15,649 $371 (1) $3,845 144 2,175 875 4,981 781 125 555 77 7 1,391 693 $3,925 162 2,245 838 4,952 842 121 518 77 6 1,598 736

2 CRE Specialty Detail as of March 31, 2023 Non-Performing Loans (mm)Weighted Avg. LTVBalance (mm)Loan Type $044%$1,535Multifamily 15411,120SFR 041775Hotel 037673Office 046325Industrial 042255Retail 041269Other $1542%$4,952Total

Fixed/Hybrid Years to Maturity / Repricing*Mix of Loan Repricing Types Variable 57% Hybrid 36% Fixed 7% 198 839 1,937 2,907 5,627 6,755 6,767 6,825 - 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 1/2 1 2 3 5 10 20 >20 Years $M 3% 12% 29% 43% 100%100%99%83% *Excludes SF Warehouse Lending and Equipment Leasing. The years to repricing assumes no loan prepayments and reflects only contractual terms. Interest Rate Components of Loan & Lease Portfolio At March 31, 2023 3 Of the fixed and hybrid rate loan balances in our portfolio at March 31, 2023, 43% will reprice within 3 years and 83% will reprice within 5 years

4 Consumer  Direct Distribution  Partners Small Business  Banking Commercial /  Treasury  Management Axos Securities Specialty  Deposits Fiduciary  Services Diversified Deposit Gathering Business Lines ‹ Full service digital banking, wealth management, and securities trading ‹ White-label banking ‹ Business banking with simple suite of cash management services ‹ Fiduciary services for trustees ‹ 1031 exchange firms ‹ Title and escrow companies ‹ HOA and property management ‹ Serves approximately 40% of U.S. Chapter 7 bankruptcy trustees in exclusive relationship ‹ Software allows servicing of SEC receivers and non-chapter 7 cases ‹ Full service treasury/cash management ‹ Team enhancements and geographic expansion ‹ Bank and securities cross-sell ‹ Broker-dealer client cash ‹ Broker-dealer reserve accounts $1.2 B $1.1 B $7.8 B $0.7 B $0.3 B $4.4 B $1.2 B Diversified Deposit Gathering * Deposit balances as of 3/31/23.

Axos Advisor Services (AAS) Cash Sorting 5*EAS acquisition closed August 2, 2021 $17.6 $19.9 $19.4 $26.0 $24.7 $26.3 $25.1 $22.4 $21.6 $22.5 $23.1 $22.6 $1.4 $1.1 $1.3 $1.5 $1.3 $1.4 $2.1 $2.7 $2.6 $1.7 $1.3 $1.7 7.8% 5.7% 6.5% 5.6% 5.1% 5.5% 8.4% 11.9% 11.9% 7.4% 5.6% 7.4% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% $- $5.0 $10.0 $15.0 $20.0 $25.0 $30.0 AAS Assets Under Custody (AUC) and Cash Ending Balances Assets Under Custody Cash Cash as % of AUC

Change in Allowance for Credit Losses (ACL) & Unfunded Loan Commitments Reserve (UCL) ($ in millions) 157.2 (2.4) 1.0 5.5 161.3 10.5 10.5 120 130 140 150 160 170 December 31, 2022 ACL + UCL Gross Charge-offs Provisions for credit losses Gross Recoveries March 31, 2023 ACL + UCL UCLACL 6

7 Allowance for Credit Losses (ACL) by Loan Category as of March 31, 2023 Loans Single Family - Mortgage and Warehouse Multifamily & Commercial Mortgage Commercial Real Estate Auto & Consumer Loan Balance $ millions Other ACL $ ACL % Commercial & Industrial Non-RE $4,087.5 3,082.8 5,794.3 594.6 6.3 2,454.8 $16,020.3 14.3 68.4 13.4 0.0 46.7 $18.5 $161.3 1.01% 1.18% 0.46% 0.45% 0.24% 2.25% 1.90%

Credit Quality ($ millions) Non‐performing Loans Consistent with Prior Quarter %NPLsLoans O/S12/31/2022 0.98%$39.0 $3,989.0Single Family-Mortgage & Warehouse 1.1635.33,050.1Multifamily and Commercial Mortgage 0.2614.95,762.1Commercial Real Estate 0.143.02,208.9Commercial & Industrial - Non-RE 0.221.4632.2Auto & Consumer 19.441.47.2Other 0.61%$95.0$15,649.5Total %NPLsLoans O/S3/31/2023 0.89%$36.2$4,087.5Single Family-Mortgage & Warehouse 1.2137.43,082.8Multifamily and Commercial Mortgage 0.2614.95,794.3Commercial Real Estate 0.122.92,454.8Commercial & Industrial - Non-RE 0.342.0594.6Auto & Consumer 39.682.56.3Other 0.60%$95.9$16,020.3Total NPLsLoans O/SChange at 3/31/23 from 12/31/22 ($2.8)$98.5Single Family-Mortgage & Warehouse 2.132.7 Multifamily and Commercial Mortgage -32.2Commercial Real Estate (0.1) 245.9Commercial & Industrial - Non-RE 0.6 (37.6)Auto & Consumer 1.1 (0.9)Other $0.9$370.8 Total 8

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12 Greg Garrabrants, President and CEO Derrick Walsh, EVP and CFO Andy Micheletti, EVP of Finance investors@axosfinancial.com www.axosfinancial.com Johnny Lai, SVP Corporate Development and Investor Relations Phone: 858.649.2218 Mobile: 858.245.1442 jlai@axosfinancial.com Contact Information

XML

Cover Page	Apr. 26, 2023
Cover [Abstract]
Document Type	8-K
Document Period End Date	Apr. 26, 2023
Entity Registrant Name	Axos Financial, Inc.
Entity Incorporation, State or Country Code	DE
Entity File Number	001-37709
Entity Tax Identification Number	33-0867444
Entity Address, Address Line One	9205 West Russell Road, Ste 400
Entity Address, City or Town	Las Vegas
Entity Address, State or Province	NV
Entity Address, Postal Zip Code	89148
City Area Code	858
Local Phone Number	649-2218
Title of 12(b) Security	Common stock, $0.01 par value
Trading Symbol	AX
Security Exchange Name	NYSE
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Entity Emerging Growth Company	false
Entity Central Index Key	0001299709
Amendment Flag	false