# EDGAR Filing Document

**Accession Number:** 0001299709
**File Stem:** 0001299709-23-000009
**Filing Date:** 2023-1
**Character Count:** 51534
**Document Hash:** 24f5ae4bd1c73054c3d5d8bb528433be
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001299709-23-000009.hdr.sgml**: 20230126

**ACCESSION NUMBER**: 0001299709-23-000009

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 28

**CONFORMED PERIOD OF REPORT**: 20230126

**ITEM INFORMATION**: Results of Operations and Financial Condition

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20230126

**DATE AS OF CHANGE**: 20230126

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Axos Financial, Inc.
- **CENTRAL INDEX KEY:** 0001299709
- **STANDARD INDUSTRIAL CLASSIFICATION:** SAVINGS INSTITUTION, FEDERALLY CHARTERED [6035]
- **IRS NUMBER:** 330867444
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 0630

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-37709
- **FILM NUMBER:** 23557815

**BUSINESS ADDRESS:**
- **STREET 1:** 9205 WEST RUSSELL ROAD
- **STREET 2:** SUITE #400
- **CITY:** LAS VEGAS
- **STATE:** NV
- **ZIP:** 89148
- **BUSINESS PHONE:** (858) 649-2218

**MAIL ADDRESS:**
- **STREET 1:** 9205 WEST RUSSELL ROAD
- **STREET 2:** SUITE #400
- **CITY:** LAS VEGAS
- **STATE:** NV
- **ZIP:** 89148

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** BofI Holding, Inc.
- **DATE OF NAME CHANGE:** 20040805

?xml version="1.0" ? ax-20230126

**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): January 26, 2023**![ax-20230126_g1.jpg](ax-20230126_g1.jpg)

**Axos Financial, Inc.** 

(Exact name of registrant as specified in its charter)

---

| | | |
|:---|:---|:---|
| **Delaware** | **001-37709** | **33-0867444** |
| (State or other jurisdiction of<br>incorporation) | (Commission File Number) | (IRS Employer Identification<br>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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;** 

---

| | | |
|:---|:---|:---|
| **Securities registered pursuant to Section 12(b) of the Act:** | **Securities registered pursuant to Section 12(b) of the Act:** | **Securities registered pursuant to Section 12(b) of the Act:** |
| **<u>Title of each class</u>** | **<u>Trading Symbol(s)</u>** | **<u>Name of each exchange on which registered</u>** |
| **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):

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

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

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

☐&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 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).

☐&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 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 &nbsp;&nbsp;&nbsp;&nbsp;Results of Operations and Financial Condition**

On January 26, 2023, Axos Financial, Inc. (the "Registrant") issued a press release announcing its second quarter results of operations for the period ended December 31, 2022. 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 9.01 &nbsp;&nbsp;&nbsp;&nbsp;Financial Statements and Exhibits.**

(d)&nbsp;&nbsp;&nbsp;&nbsp;Exhibits.

---

| | |
|:---|:---|
| **Exhibit** | **Description** |
| 99.1 | <u>[Press Release](pressrelease20221231axearn.htm)</u> |
| 99.2 | <u>[Press Release Earnings Supplement](decsupplement.htm)</u> |
| 99.3 | <u>[Press Release Earnings Supplement PDF](decsupplement.pdf)</u> |
| 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. | Axos Financial, Inc. |
| Date: | January 26, 2023 | By: | /s/ Derrick K. Walsh |
|  |  |  | Derrick K. Walsh |
|  |  |  | EVP and Chief Financial Officer |

---

## Exhibit 99.1

![axosfina13a.jpg](axosfina13a.jpg)

**Axos Financial, Inc. Reports Record Fiscal Second Quarter 2023 Results**

LAS VEGAS, NV – (BUSINESS WIRE) – January 26, 2023 – Axos Financial, Inc. (NYSE: AX) ("Axos"), today announced unaudited financial results for the fiscal second quarter ended December 31, 2022. Net income was $81.6 million, an increase of 34% from $60.8 million for the quarter ended December 31, 2021. Diluted earnings per share were $1.35, an increase of $0.35, or 35%, as compared to diluted earnings per share of $1.00 for the quarter ended December 31, 2021.

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 each increased 33% to $83.4 million and $1.38, respectively, for the quarter ended December 31, 2022, compared to $62.9 million and $1.04, respectively, for the quarter ended December 31, 2021.

**Fiscal Second Quarter 2023 Financial Summary:**

&nbsp;&nbsp;&nbsp;&nbsp;

---

| | | | |
|:---|:---|:---|:---|
| | **Three Months Ended December 31,** | **Three Months Ended December 31,** | |
|<br>***(Dollars in thousands, except per share data)*** | **2022** | **2021** |<br>**% Change** |
| Net interest income | $199910 | $145568 | 37.3% |
| Non-interest income | $28329 | $30787 | (8.0)% |
| Net income | $81552 | $60787 | 34.2% |
| Adjusted earnings (Non-GAAP)<sup>1</sup> | $83354 | $62917 | 32.5% |
| Diluted EPS | $1.35 | $1.00 | 35.0% |
| Adjusted EPS (Non-GAAP)<sup>1</sup> | $1.38 | $1.04 | 32.7% |
| <sup>1</sup> See "Use of Non-GAAP Financial Measures" |  |  |  |

---

For the six months ended December 31, 2022, net income was $140.0 million, an increase of 16% from net income of $121.0 million for the six months ended December 31, 2021. Diluted earnings per share were $2.31 for the six months December 31, 2022, an increase of $0.32, or 16%, as compared to diluted earnings per share of $1.99 for the six months ended December 31, 2021.

"Our diverse lending and deposit businesses continue to support strong revenue and earnings growth," stated Greg Garrabrants, President and Chief Executive Officer of Axos. "Net interest income increased 10.8% linked quarter and 37.3% year-over-year, as a result of net interest margin expansion and loan growth. Higher loan yields, primarily from monthly-adjustable commercial loans and a diverse mix of interest-bearing and non-interest bearing deposits allowed us to increase our net interest margin this quarter compared to last quarter despite increased deposit funding costs. Additionally, several of our businesses benefited from rising interest rates, including Axos Securities and Axos Fiduciary Services."

"Our annualized return on average common equity of 18.71% this quarter exceeded our annualized loan growth rate of 7% allowing us to organically build our capital ratios this quarter," stated Derrick Walsh, Executive Vice President and Chief Financial Officer of Axos. "Growth in our Securities Business and continued solid operational performance led to an improved efficiency ratio of 47.1%. Credit quality remains strong, with non-performing assets to total assets declining by 14 basis points linked-quarter to 54 basis points."

------

**Other Highlights**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Net loans for investment totaled $15.5 billion at December 31, 2022, an increase of $0.3 billion, or 7% annualized, from $15.2 billion at September 30, 2022

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Deposits totaled $15.7 billion at December 31, 2022, an increase of $0.5 billion, or 14% annualized, from $15.2 billion at September 30, 2022

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Pretax income for the Securities Business segment was $15.6 million for the quarter ended December 31, 2022 compared to $8.9 million for the quarter ended September 30, 2022

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Net interest margin was 4.49% for the quarter ended December 31, 2022, compared to 4.10% for the quarter ended December 31, 2021

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Non-performing loans to total loans was 0.61% at December 31, 2022, down from 0.78% at September 30, 2022

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Return on average common stockholders' equity was 18.71% for the quarter ended December 31, 2022

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Book value increased to $29.79 per share at December 31, 2022, from $25.60, an increase of 16% from December 31, 2021

**Fiscal Second Quarter 2023 Income Statement Summary**

Net income was $81.6 million or $1.35 per diluted common share for the three months ended December 31, 2022, compared to $60.8 million, or $1.00 per diluted common share for the three months ended December 31, 2021. Net interest income increased $54.3 million or 37% for the three months ended December 31, 2022 compared to the three months ended December 31, 2021, primarily due to higher average balances and rates earned in the loan portfolio, partially offset by higher rates paid on deposits.

The provision for credit losses was $3.5 million for the three months ended December 31, 2022 compared to $4.0 million for the three months ended December 31, 2021 primarily due to growth in the loan portfolio and changes in loan mix.

Non-interest income decreased to $28.3 million for the three months ended December 31, 2022 compared to $30.8 million for the three months ended December 31, 2021. Decreases of $4.0 million in mortgage banking income, $2.5 million in prepayment penalty fee income and $1.1 million in advisory fee income were partially offset by an increase of $3.5 million in broker-dealer fee income and a $1.7 million increase in banking and service fees.

Non-interest expense, comprised of various operating expenses, increased $21.5 million to $107.5 million for the three months ended December 31, 2022 from $86.0 million for the three months ended December 31, 2021. The increase was primarily attributable to a $9.7 million increase in salaries and related costs, a $7.5 million increase in advertising and promotional expenses primarily due to increased lead generation and deposit marketing costs, and a $2.5 million increase in professional services primarily due to higher consulting expenses supporting technology investments.

**Balance Sheet Summary**

Axos' total assets increased by $1.3 billion, or 8%, to $18.7 billion, at December 31, 2022, from $17.4 billion at June 30, 2022, primarily due to an increase of $1.4 billion in loans held for investment. Total liabilities increased by $1.2 billion, or 8%, to $17.0 billion at December 31, 2022, from $15.8 billion at June 30, 2022, primarily due to an increase in deposits of $1.7 billion, partially offset by a $0.3 billion decrease in securities loaned. Stockholders' equity increased by approximately $144.6 million, or 9%, to $1.8 billion at December 31, 2022 from $1.6 billion at June 30, 2022. The increase was primarily the result of $140.0 million of net income.

The Bank's common equity tier 1 capital ratio was 11.28% at December 31, 2022 compared to 10.91% at December 31, 2021.

------

**Conference Call**

A conference call and webcast will be held on Thursday, January 26, 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 February 26, 2023, at Axos' website and telephonically by dialing toll-free number 877-660-6853, passcode 13735213.

**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 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 $18.7 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 $32.3 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<sup>®</sup> Index, the S&P SmallCap 600<sup>®</sup> 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 December 31, 2022** | **Three Months Ended December 31, 2022** | **Three Months Ended December 31, 2022** | **Three Months Ended December 31, 2022** |
|<br>***(Dollars in thousands)*** | **Banking Business** | **Securities Business** | **Corporate/Eliminations** | **Axos Consolidated** |
| Net interest income | $198545 | $4876 | $(3511) | $199910 |
| Provision for credit losses | 3500 |  |  | 3500 |
| Non-interest income | 10557 | 36004 | (18232) | 28329 |
| Non-interest expense | 96284 | 25271 | (14027) | 107528 |
| Income before taxes | $109318 | $15609 | $(7716) | $117211 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended December 31, 2021** | **Three Months Ended December 31, 2021** | **Three Months Ended December 31, 2021** | **Three Months Ended December 31, 2021** |
|<br>***(Dollars in thousands)*** | **Banking Business** | **Securities Business** | **Corporate/Eliminations** | **Axos Consolidated** |
| Net interest income | $142259 | $4506 | $(1197) | $145568 |
| Provision for credit losses | 4000 |  |  | 4000 |
| Non-interest income | 16295 | 16454 | (1962) | 30787 |
| Non-interest expense | 62449 | 21654 | 1916 | 86019 |
| Income before taxes | $92105 | $(694) | $(5075) | $86336 |

---

------

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Six Months Ended December 31, 2022** | **Six Months Ended December 31, 2022** | **Six Months Ended December 31, 2022** | **Six Months Ended December 31, 2022** |
|<br>***(Dollars in thousands)*** | **Banking Business** | **Securities Business** | **Corporate/Eliminations** | **Axos Consolidated** |
| Net interest income | $378275 | $9151 | $(7041) | $380385 |
| Provision for credit losses | 12250 |  |  | 12250 |
| Non-interest income | 21269 | 65169 | (30901) | 55537 |
| Non-interest expense | 197080 | 49786 | (23251) | 223615 |
| Income before taxes | $190214 | $24534 | $(14691) | $200057 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Six Months Ended December 31, 2021** | **Six Months Ended December 31, 2021** | **Six Months Ended December 31, 2021** | **Six Months Ended December 31, 2021** |
|<br>***(Dollars in thousands)*** | **Banking Business** | **Securities Business** | **Corporate/Eliminations** | **Axos Consolidated** |
| Net interest income | $284500 | $10682 | $(2972) | $292210 |
| Provision for credit losses | 8000 |  |  | 8000 |
| Non-interest income | 31123 | 29560 | (3194) | 57489 |
| Non-interest expense | 125174 | 40927 | 4349 | 170450 |
| Income before taxes | $182449 | $(685) | $(10515) | $171249 |

---

**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** | **Three Months Ended** | **Six Months Ended** | **Six Months Ended** |
| | **December 31,** | **December 31,** | **December 31,** | **December 31,** |
|<br>***(Dollars in thousands, except per share amounts)*** | **2022** | **2021** | **2022** | **2021** |
| Net income | $81552 | $60787 | $139959 | $120997 |
| &nbsp;&nbsp;&nbsp;Acquisition-related costs  | 2590 | 3026 | 5324 | 5872 |
| &nbsp;&nbsp;&nbsp;Other costs |  |  | 16000 |  |
| &nbsp;&nbsp;&nbsp;Tax effects of adjustments | (788) | (896) | (6406) | (1723) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Adjusted earnings (Non-GAAP) | $83354 | $62917 | $154877 | $125146 |
| &nbsp;&nbsp;&nbsp;Adjusted EPS (Non-GAAP) | $1.38 | $1.04 | $2.56 | $2.06 |

---

------

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:

---

| | | |
|:---|:---|:---|
| | **December 31,** | **December 31,** |
|<br>***(Dollars in thousands, except per share amounts)*** | **2022** | **2021** |
| Total stockholders' equity | $1787559 | $1523157 |
| Less: mortgage servicing rights, carried at fair value | 25526 | 20110 |
| Less: goodwill and other intangible assets | 157585 | 161954 |
| Tangible common stockholders' equity (Non-GAAP) | $1604448 | $1341093 |
| Common shares outstanding at end of period | 60000079 | 59498575 |
| Tangible book value per common share (Non-GAAP) | $26.74 | $22.54 |

---

**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' 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 and expectations of the environment in which Axos operates. 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, inflation, government regulation, general economic conditions, including uncertainties surrounding the severity, duration and effects of the COVID-19 pandemic, changes in the competitive marketplace, conditions in the real estate markets in which we operate, risks associated with credit quality, 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 could cause actual results to differ materially from those expressed or implied in any forward-looking statements. You 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.*

Investor Relations Contact:

Johnny Lai, CFA

SVP, Corporate Development & Investor Relations

858-649-2218

jlai@axosfinancial.com

------

&nbsp;&nbsp;&nbsp;&nbsp;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)***

---

| | | | |
|:---|:---|:---|:---|
| | **December 31,<br>2022** | **June 30,<br>2022** | **December 31,<br>2021** |
| ***Selected Balance Sheet Data:*** | | | |
| Total assets | $18741035 | $17401165 | $15547947 |
| Loans—net of allowance for credit losses | 15473212 | 14091061 | 12607179 |
| Loans held for sale, carried at fair value | 4292 | 4973 | 27428 |
| Loans held for sale, lower of cost or fair value | 455 | 10938 | 11446 |
| Allowance for credit losses - loans | 157218 | 148617 | 140489 |
| Securities—trading | 372 | 1758 | 1223 |
| Securities—available-for-sale | 248062 | 262518 | 139581 |
| Securities borrowed | 58846 | 338980 | 534243 |
| Customer, broker-dealer and clearing receivables | 272579 | 417417 | 429634 |
| Total deposits | 15690494 | 13946422 | 12269172 |
| Advances from the FHLB | 100000 | 117500 | 157500 |
| Borrowings, subordinated notes and debentures | 334077 | 445244 | 260435 |
| Securities loaned | 156008 | 474400 | 578762 |
| Customer, broker-dealer and clearing payables | 420947 | 511654 | 528796 |
| Total stockholders' equity | 1787559 | 1642973 | 1523157 |
| ***Capital Ratios:*** |  |  |  |
| Equity to assets at end of period | 9.54% | 9.44% | 9.80% |
| Axos Financial, Inc.: |  |  |  |
| &nbsp;&nbsp;&nbsp;Tier 1 leverage (to adjusted average assets) | 9.06% | 9.25% | 9.42% |
| &nbsp;&nbsp;&nbsp;Common equity tier 1 capital (to risk-weighted assets) | 10.55% | 9.86% | 10.08% |
| &nbsp;&nbsp;&nbsp;Tier 1 capital (to risk-weighted assets) | 10.55% | 9.86% | 10.08% |
| &nbsp;&nbsp;&nbsp;Total capital (to risk-weighted assets) | 13.49% | 12.73% | 12.16% |
| Axos Bank: |  |  |  |
| &nbsp;&nbsp;&nbsp;Tier 1 leverage (to adjusted average assets) | 10.05% | 10.65% | 10.13% |
| &nbsp;&nbsp;&nbsp;Common equity tier 1 capital (to risk-weighted assets) | 11.28% | 11.24% | 10.91% |
| &nbsp;&nbsp;&nbsp;Tier 1 capital (to risk-weighted assets) | 11.28% | 11.24% | 10.91% |
| &nbsp;&nbsp;&nbsp;Total capital (to risk-weighted assets) | 12.13% | 12.01% | 11.73% |
| Axos Clearing LLC: |  |  |  |
| &nbsp;&nbsp;&nbsp;Net capital | $60334 | $38915 | $39453 |
| &nbsp;&nbsp;&nbsp;Excess capital | $55977 | $32665 | $32171 |
| &nbsp;&nbsp;&nbsp;Net capital as a percentage of aggregate debit items | 27.69% | 12.45% | 10.84% |
| &nbsp;&nbsp;&nbsp;Net capital in excess of 5% aggregate debit items | $49441 | $23290 | $21249 |

---

------

**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 Three Months Ended** | **At or for the Six Months Ended** | **At or for the Six Months Ended** |
| | **December 31,** | **December 31,** | **December 31,** | **December 31,** |
| | **2022** | **2021** | **2022** | **2021** |
| ***Selected Income Statement Data:*** |  |  |  |  |
| Interest and dividend income | $279588 | $157076 | $503374 | $315386 |
| Interest expense | 79678 | 11508 | 122989 | 23176 |
| Net interest income | 199910 | 145568 | 380385 | 292210 |
| Provision for credit losses | 3500 | 4000 | 12250 | 8000 |
| Net interest income after provision for credit losses | 196410 | 141568 | 368135 | 284210 |
| Non-interest income | 28329 | 30787 | 55537 | 57489 |
| Non-interest expense | 107528 | 86019 | 223615 | 170450 |
| Income before income tax expense | 117211 | 86336 | 200057 | 171249 |
| Income tax expense | 35659 | 25549 | 60098 | 50252 |
| Net income | $81552 | $60787 | $139959 | $120997 |
| ***Per Common Share Data:*** |  |  |  |  |
| Net income: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Basic | $1.36 | $1.02 | $2.34 | $2.04 |
| &nbsp;&nbsp;&nbsp;Diluted | $1.35 | $1.00 | $2.31 | $1.99 |
| &nbsp;&nbsp;&nbsp;Adjusted earnings per common share (Non-GAAP)<sup>1</sup> | $1.38 | $1.04 | $2.56 | $2.06 |
| Book value per common share | $29.79 | $25.60 | $29.79 | $25.60 |
| Tangible book value per common share (Non-GAAP)<sup>1</sup> | $26.74 | $22.54 | $26.74 | $22.54 |
| ***Weighted average number of common shares outstanding:*** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Basic | 59999573 | 59496489 | 59927078 | 59443667 |
| &nbsp;&nbsp;&nbsp;&nbsp; Diluted | 60514635 | 60755981 | 60540353 | 60749383 |
| Common shares outstanding at end of period | 60000079 | 59498575 | 60000079 | 59498575 |
| Common shares issued at end of period | 69153591 | 68376837 | 69153591 | 68376837 |
| ***Performance Ratios and Other Data:*** |  |  |  |  |
| Loan originations for investment | $2013576 | $2525871 | $4499800 | $4618150 |
| Loan originations for sale | $43227 | $193320 | $113300 | $403287 |
| Return on average assets | 1.77% | 1.63% | 1.55% | 1.65% |
| Return on average common stockholders' equity | 18.71% | 16.29% | 16.35% | 16.51% |
| Interest rate spread<sup>2</sup> | 3.64% | 3.90% | 3.63% | 3.97% |
| Net interest margin<sup>3</sup> | 4.49% | 4.10% | 4.38% | 4.16% |
| Net interest margin<sup>3</sup> – Banking Business Segment | 4.65% | 4.30% | 4.58% | 4.39% |
| Efficiency ratio<sup>4</sup> | 47.11% | 48.78% | 51.30% | 48.74% |
| Efficiency ratio<sup>4</sup> – Banking Business Segment | 46.05% | 39.39% | 49.33% | 39.66% |
| ***Asset Quality Ratios:*** |  |  |  |  |
| Net annualized charge-offs to average loans | 0.05% | 0.01% | 0.05% | 0.01% |
| Non-performing loans and leases to total loans | 0.61% | 1.14% | 0.61% | 1.14% |
| Non-performing assets to total assets | 0.54% | 0.94% | 0.54% | 0.94% |
| Allowance for credit losses - loans to total loans held for investment | 1.00% | 1.10% | 1.00% | 1.10% |
| Allowance for credit losses - loans to non-performing loans | 165.51% | 96.27% | 165.51% | 96.27% |

---

<sup>1</sup>&nbsp;&nbsp;&nbsp;&nbsp;*See "Use of Non-GAAP Financial Measures" herein.*

<sup>2 &nbsp;&nbsp;&nbsp;&nbsp;</sup>*Interest rate spread represents the difference between the annualized weighted average yield on interest-earning assets and the annualized weighted average* 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*rate paid on interest-bearing liabilities.*

<sup>3&nbsp;&nbsp;&nbsp;&nbsp;</sup>*Net interest margin represents annualized net interest income as a percentage of average interest-earning assets.*

<sup>4</sup> *Efficiency ratio represents non-interest expense as a percentage of the aggregate of net interest income and non-interest income.*

## Exhibit 99.2

![](decsupplement001.jpg)

Axos Q2 Fiscal 2023 Earnings Supplement January 26, 2023 NYSE: AX

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![](decsupplement002.jpg)

1 Loan Growth by Category for Second Quarter Ended December 31, 2022 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 Q2 FY23 $ millions Other Q1 FY23 $3,845 144 2,175 875 4,981 781 125 555 77 7 $12 (33) 48 37 133 105 (13) (2) 3 Inc (Dec) Commercial & Industrial Non-RE\* Lender Finance Non-RE 1,391 (90) 693 68 $15,649 $15,384 $265 (3) $3,833 177 2,127 838 4,848 676 138 557 74 10 1,481 625 \* Certain prior period Commercial & Industrial Non-Real Estate loans were reclassified between sub-categories to conform to the current period presentation.

------

![](decsupplement003.jpg)

Fixed/Hybrid Years to Maturity / Repricing\*Mix of Loan Repricing Types Variable 54% Hybrid 38% Fixed 8% 414 687 1,718 2,942 5,706 6,842 6,905 6,910 - 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 6% 10% 25% 43% 100%100%99%83% \*Excludes SF Warehouse Lending and Equipment Leasing. Interest Rate Components of Loan & Lease Portfolio At December 31, 2022 2

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![](decsupplement004.jpg)

Axos Advisor Services (AAS) Cash Sorting 3 $17.6 $19.9 $19.4 $26.0 $24.7 $26.3 $25.1 $22.4 $21.6 $22.5 $22.5 $1.4 $1.1 $1.3 $1.5 $1.3 $1.4 $2.1 $2.7 $2.6 $1.7 $1.7 7.8% 5.7% 6.5% 5.6% 5.1% 5.5% 8.4% 11.9% 11.9% 7.4% 7.6% 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 AUC Cash Cash as % of AUC \*EAS acquisition closed August 2, 2021

------

![](decsupplement005.jpg)

Change in Allowance for Credit Losses (ACL) & Unfunded Loan Commitments Reserve (UCL) ($ in millions) 155.5 (2.2) 0.4 3.5 157.2 11.0 10.5 120 130 140 150 160 170 (0.5) September 30, 2022 ACL + UCL Gross Charge-offs Provisions for credit losses Gross Recoveries December 31, 2022 ACL + UCL UCLACL 4

------

![](decsupplement006.jpg)

5 Allowance for Credit Losses (ACL) by Loan Category as of December 31, 2022 Loans Single Family - Mortgage and Warehouse Multifamily & Commercial Mortgage Commercial Real Estate Auto & Consumer Loan Balance $ millions Other ACL $$3,989.0 3,050.1 5,762.1 632.2 7.2 ACL % Commercial & Industrial Non-RE 2,208.9 $15,649.5 15.5 72.2 13.9 0 36.0 $19.6 $157.2 1.00% 1.25% 0.51% 0.49% 0.00% 2.20% 1.63%

------

![](decsupplement007.jpg)

Credit Quality ($ millions) Non-performing Loans Down from Prior Quarter 9/30/2022 Loans O/S NPLs % Single Family-Mortgage & Warehouse $4,009.8 $65.7 1.64% Multifamily and Commercial Mortgage 2,965.0 35.8 1.21 Commercial Real Estate 5,523.9 14.9 0.27 Commercial & Industrial - Non-RE 2,244.3 3.0 0.13 Auto & Consumer 631.3 1.0 0.16 Other 10.0 0.1 1.00 Total $15,384.3 $120.5 0.78% 12/31/2022 Loans O/S NPLs % Single Family-Mortgage & Warehouse $3,989.0 $39.0 0.98% Multifamily and Commercial Mortgage 3,050.1 35.3 1.16 Commercial Real Estate 5,762.1 14.9 0.26 Commercial & Industrial - Non-RE 2,208.9 3.0 0.14 Auto & Consumer 632.2 1.4 0.22 Other 7.2 1.4 19.44 Total $15,649.5 $95.0 0.61% Change at 12/31/22 from 9/30/22 Loans O/S NPLs Single Family-Mortgage & Warehouse ($20.8) ($26.7) Multifamily and Commercial Mortgage 85.1 (0.5) Commercial Real Estate 238.2 0.0 Commercial & Industrial - Non-RE (35.4) 0.0 Auto & Consumer 0.9 0.4 Other (2.8) 1.3 Total $265.2 ($25.5) 6

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![](decsupplement008.jpg)

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![](decsupplement009.jpg)

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![](decsupplement010.jpg)

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![](decsupplement011.jpg)

10 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

------

### Attached PDF Documents

**Attachment 1:** `decsupplement.pdf`

# Axos Q2 Fiscal 2023 Earnings Supplement

January 26, 2023

NYSE: AX

**axos**$^{TM}$  
Banking Evolved$^{SM}$

# Loan Growth by Category for Second Quarter Ended December 31, 2022

![img-0.jpeg](img-0.jpeg)

$ millions

|  |  |  | Q2 FY23 | Q1 FY23 | Inc (Dec) |  |
| --- | --- | --- | --- | --- | --- | --- |
| Loans | Single Family Mortgage & Warehouse | Jumbo Mortgage | $3,845 | $3,833 | $12 |  |
|  |  | SF Warehouse Lending | 144 | 177 | (33) |  |
|  | Multifamily & Commercial Mortgage | Multifamily | 2,175 | 2,127 | 48 |  |
|  |  | Small Balance Commercial | 875 | 838 | 37 |  |
|  | Commercial Real Estate | CRE Specialty | 4,981 | 4,848 | 133 |  |
|  |  | Lender Finance RE | 781 | 676 | 105 |  |
|  | Commercial & Industrial Non-RE* | Lender Finance Non-RE | 1,391 | 1,481 | (90) |  |
|  |  | Equipment Leasing | 125 | 138 | (13) |  |
|  |  | Asset-Based Lending | 693 | 625 | 68 |  |
|  | Auto & Consumer | Auto | 555 | 557 | (2) |  |
|  |  | Unsecured / OD | 77 | 74 | 3 |  |
|  | Other |  | 7 | 10 | (3) |  |
|  |  |  |  | $15,649 | $15,384 | $265 |

* Certain prior period Commercial & Industrial Non-Real Estate loans were reclassified between sub-categories to conform to the current period presentation.

1

# Interest Rate Components of Loan & Lease Portfolio

At December 31, 2022

![img-1.jpeg](img-1.jpeg)

## Mix of Loan Repricing Types

![img-2.jpeg](img-2.jpeg)

## Fixed/Hybrid Years to Maturity / Repricing*

![img-3.jpeg](img-3.jpeg)

*Excludes SF Warehouse Lending and Equipment Leasing.

2

# Axos Advisor Services (AAS) Cash Sorting

![img-4.jpeg](img-4.jpeg)

## AAS Assets Under Custody (AUC) and Cash Ending Balances

![img-5.jpeg](img-5.jpeg)

\*EAS acquisition closed August 2, 2021

3

# Change in Allowance for Credit Losses (ACL) & Unfunded Loan Commitments Reserve (UCL)

($ in millions)

![img-6.jpeg](img-6.jpeg)

4

# Allowance for Credit Losses (ACL) by Loan Category as of December 31, 2022

![img-7.jpeg](img-7.jpeg)

|  |  | $ millions |  |  |
| --- | --- | --- | --- | --- |
|  |  | Loan Balance | ACL $ | ACL % |
| Loans | Single Family - Mortgage and Warehouse | $3,989.0 | $19.6 | 0.49% |
|  | Multifamily & Commercial Mortgage | 3,050.1 | 15.5 | 0.51% |
|  | Commercial Real Estate | 5,762.1 | 72.2 | 1.25% |
|  | Commercial & Industrial Non-RE | 2,208.9 | 36.0 | 1.63% |
|  | Auto & Consumer | 632.2 | 13.9 | 2.20% |
|  | Other | 7.2 | 0 | 0.00% |
|  |  | $15,649.5 | $157.2 | 1.00% |

5

# Credit Quality ($ millions)

![img-8.jpeg](img-8.jpeg)

## Non-performing Loans Down from Prior Quarter

| 9/30/2022 | Loans O/S | NPLs | % |
| --- | --- | --- | --- |
| Single Family-Mortgage & Warehouse | $4,009.8 | $65.7 | 1.64% |
| Multifamily and Commercial Mortgage | 2,965.0 | 35.8 | 1.21 |
| Commercial Real Estate | 5,523.9 | 14.9 | 0.27 |
| Commercial & Industrial - Non-RE | 2,244.3 | 3.0 | 0.13 |
| Auto & Consumer | 631.3 | 1.0 | 0.16 |
| Other | 10.0 | 0.1 | 1.00 |
| Total | $15,384.3 | $120.5 | 0.78% |
| 12/31/2022 | Loans O/S | NPLs | % |
| Single Family-Mortgage & Warehouse | $3,989.0 | $39.0 | 0.98% |
| Multifamily and Commercial Mortgage | 3,050.1 | 35.3 | 1.16 |
| Commercial Real Estate | 5,762.1 | 14.9 | 0.26 |
| Commercial & Industrial - Non-RE | 2,208.9 | 3.0 | 0.14 |
| Auto & Consumer | 632.2 | 1.4 | 0.22 |
| Other | 7.2 | 1.4 | 19.44 |
| Total | $15,649.5 | $95.0 | 0.61% |
| Change at 12/31/22 from 9/30/22 | Loans O/S | NPLs |  |
| Single Family-Mortgage & Warehouse | ($20.8) | ($26.7) |  |
| Multifamily and Commercial Mortgage | 85.1 | (0.5) |  |
| Commercial Real Estate | 238.2 | 0.0 |  |
| Commercial & Industrial - Non-RE | (35.4) | 0.0 |  |
| Auto & Consumer | 0.9 | 0.4 |  |
| Other | (2.8) | 1.3 |  |
| Total | $265.2 | ($25.5) |  |

6

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)*

|  | December 31, 2022 | September 30, 2022 | June 30, 2022 | March 31, 2022 | December 31, 2021 |
| --- | --- | --- | --- | --- | --- |
| Selected Balance Sheet Data: |  |  |  |  |  |
| Total assets | $18,741,035 | $18,407,078 | $17,401,165 | $16,080,950 | $15,547,947 |
| Loans-net of allowance for credit losses | 15,473,212 | 15,211,573 | 14,091,061 | 13,093,603 | 12,607,179 |
| Loans held for sale, carried at fair value | 4,292 | 9,463 | 4,973 | 19,611 | 27,428 |
| Loans held for sale, lower of cost or fair value | 455 | 10,476 | 10,938 | 11,182 | 11,446 |
| Allowance for credit losses - loans | 157,218 | 155,472 | 148,617 | 143,372 | 140,489 |
| Securities-trading | 372 | 75 | 1,758 | 366 | 1,223 |
| Securities-available-for-sale | 248,062 | 257,634 | 262,518 | 229,510 | 139,581 |
| Securities borrowed | 58,846 | 87,622 | 338,980 | 274,644 | 534,243 |
| Customer, broker-dealer and clearing receivables | 272,579 | 410,842 | 417,417 | 510,561 | 429,634 |
| Total deposits | 15,690,494 | 15,176,631 | 13,946,422 | 12,733,002 | 12,269,172 |
| Advances from the FHLB | 100,000 | 112,500 | 117,500 | 152,500 | 157,500 |
| Borrowings, subordinated notes and debentures | 334,077 | 425,818 | 445,244 | 381,682 | 260,435 |
| Securities loaned | 156,008 | 206,889 | 474,400 | 447,748 | 578,762 |
| Customer, broker-dealer and clearing payables | 420,947 | 500,584 | 511,654 | 543,905 | 528,796 |
| Total stockholders’ equity | 1,787,559 | 1,700,972 | 1,642,973 | 1,585,585 | 1,523,157 |
| Capital Ratios: |  |  |  |  |  |
| Equity to assets at end of period | 9.54% | 9.24% | 9.44% | 9.86% | 9.80% |
| Axos Financial, Inc.: |  |  |  |  |  |
| Tier 1 leverage (to adjusted average assets) | 9.06% | 8.98% | 9.25% | 9.43% | 9.42% |
| Common equity tier 1 capital (to risk-weighted assets) | 10.55% | 9.97% | 9.86% | 10.23% | 10.08% |
| Tier 1 capital (to risk-weighted assets) | 10.55% | 9.97% | 9.86% | 10.23% | 10.08% |
| Total capital (to risk-weighted assets) | 13.49% | 12.90% | 12.73% | 13.30% | 12.16% |
| Axos Bank: |  |  |  |  |  |
| Tier 1 leverage (to adjusted average assets) | 10.05% | 10.30% | 10.65% | 10.51% | 10.13% |
| Common equity tier 1 capital (to risk-weighted assets) | 11.28% | 10.87% | 11.24% | 11.43% | 10.91% |
| Tier 1 capital (to risk-weighted assets) | 11.28% | 10.87% | 11.24% | 11.43% | 10.91% |
| Total capital (to risk-weighted assets) | 12.13% | 11.71% | 12.01% | 12.24% | 11.73% |
| Axos Clearing LLC: |  |  |  |  |  |
| Net capital | $60,334 | $49,183 | $38,915 | $39,109 | $39,453 |
| Excess capital | $55,977 | $42,324 | $32,665 | $31,612 | $32,171 |
| Net capital as a percentage of aggregate debit items | 27.69% | 14.34% | 12.45% | 10.43% | 10.84% |
| Net capital in excess of 5% aggregate debit items | $49,441 | $32,035 | $23,290 | $20,369 | $21,249 |

7

# **AXOS FINANCIAL, INC. AND SUBSIDIARIES**  
 **SELECTED CONSOLIDATED FINANCIAL INFORMATION**  
 *(Unaudited - dollars in thousands, except per share data)*

|  | At or for the Three Months Ended |  |  |  |  |
| --- | --- | --- | --- | --- | --- |
|  | December 31, 2022 | September 30, 2022 | June 30, 2022 | March 31, 2022 | December 31, 2021 |
| Selected Income Statement Data: |  |  |  |  |  |
| Interest and dividend income | $279,588 | $223,786 | $184,161 | $160,181 | $157,076 |
| Interest expense | 79,678 | 43,311 | 18,751 | 10,643 | 11,508 |
| Net interest income | 199,910 | 180,475 | 165,410 | 149,538 | 145,568 |
| Provision for credit losses | 3,500 | 8,750 | 6,000 | 4,500 | 4,000 |
| Net interest income after provision for credit losses | 196,410 | 171,725 | 159,410 | 145,038 | 141,568 |
| Non-interest income | 28,329 | 27,208 | 27,100 | 28,774 | 30,787 |
| Non-interest expense | 107,528 | 116,087 | 104,793 | 86,819 | 86,019 |
| Income before income tax expense | 117,211 | 82,846 | 81,717 | 86,993 | 86,336 |
| Income tax expense | 35,659 | 24,439 | 23,821 | 25,170 | 25,549 |
| Net income | $81,552 | $58,407 | $57,896 | $61,823 | $60,787 |
| Per Common Share Data: |  |  |  |  |  |
| Net income: |  |  |  |  |  |
| Basic | $1.36 | $0.98 | $0.97 | $1.04 | $1.02 |
| Diluted | $1.35 | $0.97 | $0.96 | $1.02 | $1.00 |
| Adjusted earnings per common share (Non-GAAP) 1 | $1.38 | $1.18 | $1.12 | $1.05 | $1.04 |
| Book value per common share | $29.79 | $28.35 | $27.48 | $26.58 | $25.60 |
| Tangible book value per common share (Non-GAAP) 1 | $26.74 | $25.24 | $24.45 | $23.51 | $22.54 |
| Weighted average number of common shares outstanding: |  |  |  |  |  |
| Basic | 59,999,573 | 59,854,584 | 59,665,041 | 59,542,128 | 59,496,489 |
| Diluted | 60,514,635 | 60,486,394 | 60,508,304 | 60,611,959 | 60,755,981 |
| Common shares outstanding at end of period | 60,000,079 | 59,998,673 | 59,777,949 | 59,662,795 | 59,498,575 |
| Common shares issued at end of period | 69,153,591 | 69,151,152 | 68,859,722 | 68,617,410 | 68,376,837 |
| Performance Ratios and Other Data: |  |  |  |  |  |
| Loan originations for investment | $2,013,576 | $2,486,224 | $3,152,064 | $2,363,599 | $2,525,871 |
| Loan originations for sale | $43,227 | $70,073 | $86,873 | $166,327 | $193,320 |
| Return on average assets | 1.77% | 1.32% | 1.40% | 1.59% | 1.63% |
| Return on average common stockholders’ equity | 18.71% | 13.91% | 14.13% | 15.89% | 16.29% |
| Interest rate spread 2 | 3.64% | 3.66% | 3.86% | 3.84% | 3.90% |
| Net interest margin 3 | 4.49% | 4.26% | 4.19% | 4.02% | 4.10% |
| Net interest margin 3 - Banking Business Segment | 4.65% | 4.50% | 4.45% | 4.21% | 4.30% |
| Efficiency ratio 4 | 47.11% | 55.90% | 54.44% | 51.26% | 48.78% |
| Efficiency ratio 4 - Banking Business Segment | 46.05% | 52.93% | 46.69% | 39.79% | 39.39% |
| Asset Quality Ratios: |  |  |  |  |  |
| Net annualized charge-offs to average loans | 0.05% | 0.05% | 0.02% | 0.05% | 0.01% |
| Non-performing loans and leases to total loans | 0.61% | 0.78% | 0.83% | 1.05% | 1.14% |
| Non-performing assets to total assets | 0.54% | 0.68% | 0.68% | 0.87% | 0.94% |
| Allowance for credit losses - loans to total loans held for investment | 1.00% | 1.01% | 1.04% | 1.08% | 1.10% |
| Allowance for credit losses - loans to non-performing loans | 165.51% | 129.04% | 125.74% | 103.33% | 96.27% |

$^{1}$ See “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.

8

## Use of Non-GAAP Financial Measures

In addition to the results presented in accordance with GAAP, this earnings supplement includes non-GAAP financial measures such as 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. Although we believe the non-GAAP financial measures disclosed in this report enhance investors' understanding of our business and performance, 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 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 the Company's operating performance. We believe excluding the non-recurring acquisition related costs and other costs (unusual or non-recurring) 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:

| (Dollars in thousands, except per share amounts) | December 31, 2022 | September 30, 2022 | June 30, 2022 | March 31, 2022 | December 31, 2021 |
| --- | --- | --- | --- | --- | --- |
| Net income | $81,552 | $58,407 | $57,896 | $61,823 | $60,787 |
| Acquisition-related costs | 2,590 | 2,734 | 2,745 | 2,803 | 3,026 |
| Other costs | - | 16,000 | 10,975 | - | - |
| Income taxes | (788) | (5,526) | (4,000) | (811) | (896) |
| Adjusted earnings (non-GAAP) | $83,354 | $71,615 | $67,616 | $63,815 | $62,917 |
| Adjusted EPS (Non-GAAP) | $1.38 | $1.18 | $1.12 | $1.05 | $1.04 |

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, the nearest compatible GAAP measure, to tangible book value per common share (non-GAAP) as of the dates indicated:

| (Dollars in thousands, except per share amounts) | December 31, 2022 | September 30, 2022 | June 30, 2022 | March 31, 2022 | December 30, 2021 |
| --- | --- | --- | --- | --- | --- |
| Common stockholders' equity | $1,787,559 | $1,700,972 | $1,642,973 | $1,585,585 | $1,523,157 |
| Less: mortgage servicing rights, carried at fair value | 25,526 | 26,373 | 25,213 | 23,519 | 20,110 |
| Less: goodwill and other intangible assets | 157,585 | 160,429 | 156,405 | 159,150 | 161,954 |
| Tangible common stockholders' equity (Non-GAAP) | $1,604,448 | $1,514,170 | $1,461,355 | $1,402,916 | $1,341,093 |
| Common shares outstanding at end of period | 60,000,079 | 59,998,673 | 59,777,949 | 59,662,795 | 59,498,575 |
| Tangible book value per common share (Non-GAAP) | $26.74 | $25.24 | $24.45 | $23.51 | $22.54 |

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# Contact Information

axos

**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

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