# EDGAR Filing Document

**Accession Number:** 0001299709
**File Stem:** 0001299709-23-000014
**Filing Date:** 2023-1
**Character Count:** 53689
**Document Hash:** e8f6d2b615efe60de96e303ac1ff2200
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001299709-23-000014.hdr.sgml**: 20230131

**ACCESSION NUMBER**: 0001299709-23-000014

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 53

**CONFORMED PERIOD OF REPORT**: 20230131

**ITEM INFORMATION**: Regulation FD Disclosure

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20230131

**DATE AS OF CHANGE**: 20230131

**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:** 23573033

**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-20230131

**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 31, 2023**![ax-20230131_g1.jpg](ax-20230131_g1.jpg)

**Axos Financial, Inc.** 

(Exact name of registrant as specified in its charter)

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| | | |
|:---|:---|:---|
| **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. ☐

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**Item 7.01**&nbsp;&nbsp;&nbsp;&nbsp;**Regulation FD Disclosure**

Axos Financial, Inc. (the "Registrant"), parent of Axos Bank, will use the presentation provided in the Exhibits at investor meetings beginning on February 1, 2023 and during the next few weeks.

This Form 8-K and the information attached below shall not be deemed to be "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended ("Exchange Act"), or otherwise be subject to the liabilities of that section, nor shall it be incorporated by reference into a filing under the Securities Act of 1933, as amended ("Securities Act"), or the Exchange Act, except as expressly set forth by specific reference in such a filing. The information in the materials is presented as of January 31, 2023, and the Registrant does not assume any obligation to update such information in the future.

**Item 9.01 &nbsp;&nbsp;&nbsp;&nbsp;Financial Statements and Exhibits.**

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

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| | |
|:---|:---|
| **Exhibit** | **Description** |
| 99.1 | <u>[Axos Financial, Inc. Presentation](jan2023deck.htm)</u> |
| 99.2 | <u>[Axos Financial, Inc. Presentation PDF](jan2023deck.pdf)</u> |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |

---

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**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.

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| | | | |
|:---|:---|:---|:---|
| | | Axos Financial, Inc. | Axos Financial, Inc. |
| Date: | January 31, 2023 | By: | /s/ Derrick K. Walsh |
|  |  |  | Derrick K. Walsh |
|  |  |  | EVP and Chief Financial Officer |

---

## Exhibit 99.1

![](jan 2023deck001.jpg)

Axos Financial, Inc. Investor Presentation January 31, 2023 NYSE: AX

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2 Safe Harbor This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 (the "Reform Act"). The use of future tense or words "future plans," "believe," "expect," "anticipate," "estimate," "project," or the negation thereof or similar expressions constitute forward-looking statements within the meaning of the Reform Act. These statements may include, but are not limited to, projections of revenues, income or loss, estimates of capital expenditures, plans for future operations, products or services, including new initiatives and expansion, the effects of the COVID-19 pandemic, and financing needs or plans, as well as assumptions relating to these matters. Such statements involve risks, uncertainties and other factors that may cause actual results, performance or achievements of the Company and its subsidiaries to be materially different from any future results, performance, or achievements expressed or implied by such forward-looking statements. For a discussion of these factors, we refer you to the Company's reports filed with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the year ended June 30, 2022, Form 10-Q for the quarter ended December 31, 2022 and its last earnings press release. In light of the significant uncertainties inherent in the forward-looking statements included herein, the inclusion of such information should not be regarded as a representation by the Company or by any other person or entity that the objectives and plans of the Company will be achieved. For all forward-looking statements, the Company claims the protection of the safe-harbor for forward-looking statements contained in the Reform Act.

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Axos' Business Model is Differentiated From Other Banks 3 Customer Acquisition Sales Servicing Distribution • Digital Marketing • Affinity and Distribution Partners • Data mining/target feeding direct marketing • Cross-selling • Automated fulfillment • Inbound call center sales • Outbound call center sales • Minimal outside sales • Significant inside sales • Self-service • Digital journey • Direct banker (call center) • Balance sheet • Whole loan sales options • Securitization Data Driven Insight Integrated Customer Experience Digital Marketing Digitally Enabled Operations Next-Gen Technology Core Digital Capabilities

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Axos is a Top Performer Versus Bank Peer Group 4 Axos Bank Peer Group Percentile ROAA 1.38% 0.90% 80% Return on equity 15.67% 8.00% 88% G&A 2.16% 2.36% 38% Efficiency ratio 46.34% 65.68% 11% Source: Uniform Bank Performance Report (UBPR) as of 9/30/22; data retrieved 12/20/22. Note: Peer group is all savings banks (101) with assets greater than $1 billion for quarter ended 9/30/22. The 88% on ROE means that the Bank outperformed 88% of all banks. The 11% efficiency ratio ranking means that only 11% of banks have lower expenses in comparison to their revenues. Peer group includes savings banks greater than $1 billion.

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5 Consumer Banking Commercial BankingSecurities Axos Financial's Three Divisions Provide the Foundation for Sustained Long-term Growth › Diverse mix of asset, deposit, and fee income reduces risk and provides multiple growth opportunities in varying environments › Differentiated retail digital strategy from "online savings banks" or fin-tech competitors › Structural cost advantage vs. traditional banks › Differentiated distribution strategy › New business initiatives generate incremental growth › Universal Digital Banking Platform and Enterprise Technology stack provide operating leverage opportunity › Technology synergies among divisions reduce overall cost of growth strategy Investment Thesis

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60.8 81.6 0 50 100 Q2 2022 Q2 2023 Consolidated Fiscal Second Quarter 2023 Highlights Compared with Fiscal Second Quarter 2022 6 15,548 18,741 0 5,000 10,000 15,000 20,000 Q2 2022 Q2 2023 $ Millions Asset Growth $ Millions Net Income 12,269 15,690 0 5,000 10,000 15,000 20,000 Q2 2022 Q2 2023 $ Millions Deposit Growth 1.00 1.35 0.00 0.20 0.40 0.60 0.80 1.00 1.20 1.40 Q2 2022 Q2 2023 $ Diluted EPS Diluted EPS Return on Equity = 18.71% Return on Assets = 1.77% 21% 28% 35%34%

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2.10 2.37 2.48 2.98 3.56 3.97 0.00 0.50 1.00 1.50 2.00 2.50 3.00 3.50 4.00 4.50 2017 2018 2019 2020 2021 2022 Diluted EPS and Book Value Per Share Have Been Consistently Strong 7 Book Value Per Share (FY)Diluted EPS (FY) $ per share 13.6% CAGR $ per share 13.05 15.24 17.47 20.56 23.62 27.48 0.00 5.00 10.00 15.00 20.00 25.00 30.00 2017 2018 2019 2020 2021 2022 16.1% CAGR

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Net Interest Margin has been Stable/Rising Through a Variety of Interest Rate Cycles\* Stable Net Interest Margin 3.84% 3.76% 3.83% 3.92% 4.13% 4.26% 4.49% 1.91% 2.40% 0.08% 0.08% 0.26% 3.08% 4.33% 2018 2019 2020 2021 2022 Q1 2023 Q2 2023 NIM Effective Fed Funds rate \* NIM excludes impact of HRB; relationship with HRB terminated in December 2021. 8

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Loan Portfolio More Sensitive to Rate Increases Today Compared to Last Fed Fund Rate Hike Starting in 2015 September 30, 2015 December 31, 2022 12% 80% 9% Fixed Hybrid Variable rate 8% 38% 54% Fixed HybridVariable rate 9

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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 10

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11 $39.0 $48.0 $57.0 $69.3 $85.3 $101.3 0.0 10.0 20.0 30.0 40.0 50.0 60.0 70.0 80.0 90.0 100.0 110.0 Base plus 100 bps plus 200 bps Current $0.9B Off-B/S Incremental $1.6B Off-B/S Annualized Fee Income $M(1) Securities segment provides on average approximately $2.5 billion of deposits that can be brought on balance sheet or pushed to partner banks to generate fee income › Provides stable, low/no-cost deposits that can be used to fund Axos Bank's loan growth › 22 partner banks hold on average approximately $900 million deposits off Axos Bank's balance sheet › Significant upside to fee income if interest rates rise and/or more deposits are pushed to partner banks Optionality with Deposits from Axos Securities (1) Amount of fee income may be higher or lower, depending on amount of deposits from Axos Securities that is actually held on or off Axos Bank's balance sheet. Base is equal to effective federal funds rate (EFFR) of 4.33% as of January 19, 2023.

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Axos Advisor Services (AAS) Cash Sorting 12 $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

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13 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

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14 Multifamily Single family 56% 57% Average Mortgage Loan to Value $12,607 $13,094 $14,091 $15,212 $15,473 $- $2,000 $4,000 $6,000 $8,000 $10,000 $12,000 $14,000 $16,000 $18,000 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 55% 57% 53% 57% • Product Expansion • Repeating Client Relationships • Reputation for Reliable Execution Loan Growth Drivers Net Loans – Last Five Quarters ($ in Millions) Prudent Loan Growth With Low LTVs 53% 57% 53% 57%

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15 4.2 5.9 6.9 6.8 6.5 10.41.4 1.6 1.5 1.6 1.6 0.7 5.6 7.5 8.4 8.4 8.1 11.1 0 1 2 3 4 5 6 7 8 9 10 11 12 2017 2018 2019 2020 2021 2022 $ Billions Loans for Investment Loans for Sale Strong Loan Origination Growth 12.0% 33.9% 12.0% › Organic growth in existing business lines • Multifamily geographic expansion • Small Balance Commercial Real Estate expansion • Large Balance Commercial / Specialty Real Estate expansion › Additional C&I verticals/product expansion › RIA M&A and succession lending Annual growth rate Fiscal Year Loan Originations Future Plans 14.5% 5-yr CAGR 0.0% -3.6% Expect Mid-Teens Loan Growth in 2nd Half of FY 2023 37.0%

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16 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 $1.1 B $1.2 B $5.6 B $0.8 B $0.4 B $5.1 B $1.5 B Diversified Deposit Gathering \* Deposit balances as of 12/31/22.

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Deposit Growth in Checking, Business, and Savings Was Achieved While Transforming the Mix of Deposits 19% Checking and other demand deposits 31% Savings Time deposits 50% Checking and other demand deposits Savings Time deposits June 30, 2013 December 31, 2022 Checking Growth (6/2013 – 12/2022) = 2,216% Savings Growth (6/2013 – 12/2022) = 729% Total Deposits = $2.1 billion Total Deposits = $15.7 billion Savings – IRA 34% 7% 1% 58%% 17

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18 Axos Deposits Have National Reach With Customers in Every State Customer Base and Deposit Volume is Well Distributed Throughout the United States

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19 Commercial Loans and Deposits • Product Expansion • Repeating Client Relationships • Reputation for Reliable Execution • Unique value proposition encompassing industry expertise, product/technology, service levels and financial value Loan Growth Drivers Deposit Growth Drivers Spot Balance ($B's) $4.45 $9.67 $3.01 $6.45 $0.0 $2.0 $4.0 $6.0 $8.0 $10.0 $12.0 Jun-19 Jun-22 Loans Deposits 29.5% CAGR 28.9% CAGR

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Non-Interest Income Growth and Diversification 8% Gain on Sale 14% Broker-Dealer Banking and Services Fee 50% Year Ended June 30, 2019 Three Months Ended December 31, 2022 Securities Segment Fee Income \* (6/2019 –12/2022) = 479% Total Non-Interest Income = $82.9 million Total Non-Interest Income = $113.3 million\* 34% 11% 2% 25% 6 % 6% 7% Mortgage Banking Prepayment Penalty Banking and Services Fee Prepayment Penalty Advisory Fee\*\* Mortgage Banking 36% Broker-Dealer 3% \* Note: non-interest income annualized from data through 12/31/22 for presentation in pie graph and comparison vs 6/30/19. \*\* Note: FY23 includes advisory fee income from AAS business, which was acquired August 2, 2021. 20

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21 Axos Clearing Securities Clearing & Custody Axos Invest Digital Wealth & Personal Financial Management Axos Trading Self-Directed Trading Ax os S ec ur iti es 70 IBDs 220 RIAs 310,000 Clients 26,000 Clients Launched Fiscal Q1 2022 Consumer Banking Consumer Deposit Accounts ODL/Margin Accounts Jumbo Single Family Mortgage Loans Commercial Banking Securities-Backed Lines of Credit Cash Management Commercial Property Refinancing Digital Solutions Universal Digital Platform Account Opening Platform Access to ~336,000 Clients Monetizing synergies by integrating Banking products and services to Securities customers, RIAs, and IBDs . Axos Securities Overview

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22 Integrated Securities and Banking Leveraging Bank's existing digital platforms allows for unique integrated and flexible Banking and Securities product features End Clients Securities Banking Universal Enrollment Platform Universal Digital Bank Platform Onboard Clients Faster "Single-Pane" Rich Banking and Securities Features  Consumer Banking  Self-Directed Trading  BD/RIA (Investors) Unified Service Model Salesforce Service Cloud + Five9

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23¹ InvestmentNews Top clearing and custody firms for financial advisers October 2021. Axos Clearing and Custody Highlights  Leadership team with more than 100 years combined industry experience  292 employees across Clearing and Custody  Nation's 8th largest Clearing Services firm by number of broker-dealer clients¹.  More than $30 billion in Clearing Services client assets  Axos Financial, Inc. acquired E\*TRADE Advisor Services in August 2021 June 2023 annualized based on 6 months 12/31/22 19% 17% 52% 9% 2% 1% Key Highlights Projected June 2023 TTM June 2022 Custody $27,906,549 $28,308,893 Clearing Fees & Execution $24,054,410 $21,875,571 Sweep Interest $76,113,163 $13,227,233 Margin Lending $13,474,422 $10,847,670 Securities Lending $3,313,480 $6,891,090 Net Interest Income (Expense) $1,762,655 $65,553 Net Revenues $146,624,679 $81,214,010 Custody Sweep Interest Margin Lending Securities Lending Net Interest Income (Expense) Clearing Fees & Execution

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Fee Compression for Active and Passive Investment Managers Advisors are Leaving Wirehouses to Become Independent Advisors Aging Advisor Population Is Driving Consolidation and Succession Planning Digitization of Wealth Management Secular Industry Trends Provide Opportunities for Axos • RIAs need to reduce costs and streamline back- office ops • Automation frees up time/resources for client interactions • Axos to provide bundled securities clearing, custody and banking services • Target small & medium-sized RIAs and IBDs that large custodians do not serve well • Axos to provide succession-based and M&A financing to RIAs and IBDs • Nation-wide footprint and industry focus are competitive advantages • Axos will offer direct-to-consumer and private label robo-advisory solutions to individuals and independent RIAs 24

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Unified Managed Accounts Easy Rebalancing Customer Relationship Management Proposal Generation Simplified Account Opening eSignature Tax Management Tools Fee Billing Performance Reporting Axos Advisor Services (AAS) At A Glance Liberty Provides a Comprehensive Turnkey Platform Automatic Reconciliation Note: Data as of 12/31/2022 1. 207 total advisors on Liberty platform; advisors with <$1M AUC comprise <$8M in total assets; there are 13 non-AAS RIAs not on Liberty at Axos Clearing 2. Includes $190M 401K AUC 3. Excludes $190M 401K AUC Serving 182 RIAs1 ($1M+ AUC) ~$22B Assets Under Custody2 Small RIAs 3% of Total AUC3 Advisors with <$25M in AUC Traditional RIAs 35% of Total AUC3 Gathers and manages assets, works directly with investor TAMPs 62% of Total AUC3 Turnkey Asset Management Platform, relies on Reps to gather assets and maintain relationship with investor 25

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Lending BalancesAUC Increase $1.73M $3.46M $5.18M $6.91M $250M $500M $750M $1B Re ve nu e $3.26M $6.51M $9.77M $13.02M $1.65M $3.29M $4.94M $6.58M $50M $100M $150M $200M Re ve nu e Margin Balances Sec Lending Balances Axos Clearing Revenue Sensitivity to Key Metrics Increase in revenue related to key metrics – Illustrative Axos Clearing – excluding AAS Increase in AUC \*Analysis does not include any benefits from cash deposits held on balance sheet Increase in Lending Balances 26

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27 Axos Clearing Long-Term Revenue and Expense Synergies Axos Custody Axos Invest Axos Clearing Revenue Synergies Cost Synergies Axos Securities: • Margin Loans • Securities Lending • Fixed Income Trading • Order Flow • White-label Robo Advisor Axos Consumer Banking: • White-label Banking • Auto Lending • Mortgage Lending • Unsecured Lending Axos Business Banking: • Small Business Banking • RIA Lending Axos Securities: • Self-Clearing • Regulatory/Compliance • Client Acquisition Costs • Customer Service • IT Infrastructure/Dev Axos Consumer Banking: • Deposit Servicing Costs • Client Acquisition Costs Axos Business Banking: • Client Acquisition Costs

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Axos Invest Managed Portfolios Overview  Digital advisor that helps consumers achieve their investing goals through asset allocation, diversification, and low-cost ETFs.  Automatic Rebalancing and Tax Loss Harvesting Services.  Generate recurring revenue streams on assets under management.  Imbedded Advice: Consumers are drawn to trusted advice when it is available for low cost.  Long-term track record: Retention of customers due to strong risk-adjusted performance. Creates stability in asset growth through up and down markets.  Rewards Checking 2.0: Managed Portfolios platform helps consumers achieve higher banking rate.  Consumers who do not have an advisor, looking for low-cost entry point to advice.  Consumers who have No Time or Desire to make investment decisions on their own. Core Services Customer Served Key Features Sticky customer accounts with opportunities to cross-sell banking and premium services 28

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Axos Invest Self Directed Trading Overview  Competitive price discovery and execution of equity, options, ETFs, and Mutual Funds integrated with our Universal Digital Banking platform.  Access to third-party research, alerts, and watch lists.  Subscription Program: $10 monthly for extended trading hours, margin lending, reduced option costs, access to third party analyst research.  Thought Leadership: Provide market outlook, thematic blogs, product spotlights to create engagement.  Licensed Relationship Managers: Available to assist with account opening, tutorials on platform tools, and investment vehicle education.  Consumers with advisors who need a place to hold low-cost basis stock, legacy positions, self-serve on favorite ideas.  Do-It-Yourself investors who want to ideate and trade their own portfolios. Core Services Customer Served Key Features Extending our 'synergistic loop' to capture consumers needing S/D Trading capabilities integrated with our digital banking platform 29

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Attributes Axos SoFi Betterment Fidelity Go Business Model and Differentiators Low-cost, integrated Bank, Borrow, and Invest financial suite – best of both worlds with strong value for consumers Simple ETF allocation bundled with SoFi loans and free management and unlimited access to financial advisors Simple asset allocation and rebalancing model with low fees – Advisor access with premium subscription Simplified choice for investors who want an all-digital Robo- advisor Fee Structure (AUM) 0.24% Free The greater of $4/Month or 0.25% Free: AUM <$25k 0.35% >$25k User Interface Simple and seamless feel across both platforms Very simple, easy to use, but generic Very simple, easy to use, but generic Very simple, easy to use, but generic Promotion $200 for $2000 funded and invested Free career counseling & loan discounts with qualifying deposit Up to 1 year of free management for new clients. N/A Other Access to licensed relationship team, Core and thematic models, traditional & roth IRA's No socially responsible portfolio options IRA access limited to paid membership Only offers access to Fidelity Flex mutual funds Axos Invest Managed Portfolios Industry Comparison Integrated financial suite of products Highly personal servicing approach Key Differentiators 30

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31 Key Goals of Universal Digital Bank Personalization Self-Service Facilitate Partnerships Customizable Experience Cross-Sell › Artificial intelligence and big data credit models enable quick credit decisions › Customized product recommendations based upon analytical determination of need › Provide holistic and interactive and intuitive design experience › Integrate online experience with other channels › Easy integration of third-party features (e.g., biometrics) › Access to value added tools (e.g., robo-advisory, automated savings features) either proprietary or third party › Enable creative customer acquisition partners › Eventual artificial intelligence tools assist sale of banking products such as deposits, loans, and mortgages › Products optimized by channel, recipient and journey › Self service saves time and cost (e.g., activate and de-activate debit-card in platform, send wires via self-service) › Increase chances of offering right product at the right time and place › Personalization is the right antidote for too much choice, too much content, and not enough time

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Evolving Capabilities of the UDB Platform UDB 1.0 UDB 2.0 White Label UDB Banking: Axos deposit products Borrowing: Axos loan products Investing: Managed Portfolios, Self Directed Trading Planning: Account Aggregation, PFM, Credit Monitoring Personalized Offers + Content Co-branded Wealth Management SSO to Enrollment Portals Universal Enrollment: Single, digital point of sale UDB offers a growing set of products, capabilities and supported user segments Small Business Banking P ro d u ct s + F ea tu re s S eg m en ts En ab le rs 32

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![](jan 2023deck033.jpg)

The Digital Experience Roadmap We continue to evolve our digital experience and provide modern solutions so financial services providers can have the speed, scalability, and flexibility they need to deliver better client experiences Roadmap for the Future White Label Universal Digital Bank White Label Enrollment White Label Digital Advisor Securities- Based Line of Credit Credit Card 24/7 Payment Facilitation 33

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![](jan 2023deck034.jpg)

34 Holistic Credit Risk Management What We Do Loan Life Cycle Utilize a holistic credit-risk management framework to manage and monitor credit quality at each stage of the loan life cycle, and leverage specialized Credit Tools to optimize monitoring and reporting capabilities Set Appetite Originations Portfolio Management Reporting Special Assets Credit Monitoring & Oversight Axos Credit Objectives Establish Credit Framework and Culture Safe Growth Monitor Assets Throughout Life Cycle Data-Driven Decision Making Mitigate Problem Loans Example of Credit Tools • Board of Directors • Annual Strategic Plan • Corporate Governance • Policies & Approval Authorities Note: Credit Tools list is a sampling and is not purported to be comprehensive.

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![](jan 2023deck035.jpg)

35 Annualized Charge-offs (Recoveries) to Average Loans Outstanding 0.06 0.19 0.19 0.23 0.02 0.01 0.02 0.06 0.08 0.02 -0.05 0.00 0.05 0.10 0.15 0.20 0.25 FY18 FY19 FY20 FY21 FY22 With HRB Without HRB % Note I: Company uses a June 30 fiscal year-end. Note II: The Company partnered with H&R Block Bank (HRB) to provide HRB branded financial services products. The partnership was terminated December 8, 2020.

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![](jan 2023deck036.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 36

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![](jan 2023deck037.jpg)

37 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 $15,645.5 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%

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![](jan 2023deck038.jpg)

Contact Information 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 38

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### Attached PDF Documents

**Attachment 1:** `jan2023deck.pdf`

# Axos Financial, Inc.
Investor Presentation

January 31, 2023

NYSE: AX

axosTM
Banking EvolvedSM

# Safe Harbor

axos®

This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 (the “Reform Act”). The use of future tense or words “future plans,” “believe,” “expect,” “anticipate,” “estimate,” “project,” or the negation thereof or similar expressions constitute forward-looking statements within the meaning of the Reform Act. These statements may include, but are not limited to, projections of revenues, income or loss, estimates of capital expenditures, plans for future operations, products or services, including new initiatives and expansion, the effects of the COVID-19 pandemic, and financing needs or plans, as well as assumptions relating to these matters. Such statements involve risks, uncertainties and other factors that may cause actual results, performance or achievements of the Company and its subsidiaries to be materially different from any future results, performance, or achievements expressed or

implied by such forward-looking statements. For a discussion of these factors, we refer you to the Company’s reports filed with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the year ended June 30, 2022, Form 10-Q for the quarter ended December 31, 2022 and its last earnings press release. In light of the significant uncertainties inherent in the forward-looking statements included herein, the inclusion of such information should not be regarded as a representation by the Company or by any other person or entity that the objectives and plans of the Company will be achieved. For all forward-looking statements, the Company claims the protection of the safe-harbor for forward-looking statements contained in the Reform Act.

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

2

# Axos' Business Model is Differentiated From Other Banks

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

| Customer Acquisition | Sales | Servicing | Distribution |
| --- | --- | --- | --- |
| Digital Marketing Affinity and Distribution Partners Data mining/target feeding direct marketing Cross-selling | Automated fulfillment Inbound call center sales Outbound call center sales Minimal outside sales Significant inside sales | Self-service Digital journey Direct banker (call center) | Balance sheet Whole loan sales options Securitization |

## Core Digital Capabilities

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

3

# Axos is a Top Performer Versus Bank Peer Group

|  | Axos Bank | Peer Group | Percentile |
| --- | --- | --- | --- |
| ROAA | 1.38% | 0.90% | 80% |
| Return on equity | 15.67% | 8.00% | 88% |
| G&A | 2.16% | 2.36% | 38% |
| Efficiency ratio | 46.34% | 65.68% | 11% |

**The 88% on ROE means that the Bank outperformed 88% of all banks. The 11% efficiency ratio ranking means that only 11% of banks have lower expenses in comparison to their revenues. Peer group includes savings banks greater than $1 billion.**

Source: Uniform Bank Performance Report (UBPR) as of 9/30/22; data retrieved 12/20/22.  
Note: Peer group is all savings banks (101) with assets greater than \$1 billion for quarter ended 9/30/22.

4

# Axos Financial's Three Divisions Provide the Foundation for Sustained Long-term Growth

axos

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

## Investment Thesis

- Diverse mix of asset, deposit, and fee income reduces risk and provides multiple growth opportunities in varying environments
- Differentiated retail digital strategy from “online savings banks” or fin-tech competitors
- Structural cost advantage vs. traditional banks
- Differentiated distribution strategy
- New business initiatives generate incremental growth
- Universal Digital Banking Platform and Enterprise Technology stack provide operating leverage opportunity
- Technology synergies among divisions reduce overall cost of growth strategy

5

# Consolidated Fiscal Second Quarter 2023 Highlights Compared with Fiscal Second Quarter 2022

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

## Asset Growth

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

## Deposit Growth

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

## Net Income

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

## Diluted EPS

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

Return on Equity = 18.71%

Return on Assets = 1.77%

6

# Diluted EPS and Book Value Per Share Have Been Consistently Strong

![img-9.jpeg](img-9.jpeg)

## Diluted EPS (FY)

![img-10.jpeg](img-10.jpeg)

## Book Value Per Share (FY)

![img-11.jpeg](img-11.jpeg)

7

# Net Interest Margin has been Stable/Rising Through a Variety of Interest Rate Cycles*

axos

Stable Net Interest Margin

![img-12.jpeg](img-12.jpeg)

* NIM excludes impact of HRB; relationship with HRB terminated in December 2021.

8

axos

# Loan Portfolio More Sensitive to Rate Increases Today Compared to Last Fed Fund Rate Hike Starting in 2015

September 30, 2015

![img-13.jpeg](img-13.jpeg)

December 31, 2022

![img-14.jpeg](img-14.jpeg)

9

# Interest Rate Components of Loan & Lease Portfolio
At December 31, 2022

![img-15.jpeg](img-15.jpeg)

## Mix of Loan Repricing Types

![img-16.jpeg](img-16.jpeg)

## Fixed/Hybrid Years to Maturity / Repricing*

![img-17.jpeg](img-17.jpeg)

*Excludes SF Warehouse Lending and Equipment Leasing.

10

# Optionality with Deposits from Axos Securities

axos

Securities segment provides on average approximately $2.5 billion of deposits that can be brought on balance sheet or pushed to partner banks to generate fee income

- Provides stable, low/no-cost deposits that can be used to fund Axos Bank's loan growth
- 22 partner banks hold on average approximately $900 million deposits off Axos Bank's balance sheet
- Significant upside to fee income if interest rates rise and/or more deposits are pushed to partner banks

Annualized Fee Income $M(1)

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

(1) Amount of fee income may be higher or lower, depending on amount of deposits from Axos Securities that is actually held on or off Axos Bank's balance sheet. Base is equal to effective federal funds rate (EFFR) of 4.33% as of January 19, 2023.

11

# Axos Advisor Services (AAS) Cash Sorting

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

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

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

\*EAS acquisition closed August 2, 2021

12

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

$ 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 |

13

# Prudent Loan Growth With Low LTVs

axos

## Net Loans - Last Five Quarters ($ in Millions)

### Loan Growth Drivers

- Product Expansion
- Repeating Client Relationships
- Reputation for Reliable Execution

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

Average Mortgage Loan to Value

**Multifamily**

56%

55%

53%

53%

53%

**Single family**

57%

57%

57%

57%

57%

14

# Strong Loan Origination Growth

axos

## Fiscal Year Loan Originations

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

## Future Plans

- Organic growth in existing business lines
  - Multifamily geographic expansion
  - Small Balance Commercial Real Estate expansion
  - Large Balance Commercial / Specialty Real Estate expansion
- Additional C&I verticals/product expansion
- RIA M&A and succession lending

Expect Mid-Teens Loan Growth in 2nd Half of FY 2023

15

# Diversified Deposit Gathering

axos

- 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 digital banking, wealth management, and securities trading

- Fiduciary services for trustees
- 1031 exchange firms
- Title and escrow companies
- HOA and property management

- White-label banking

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

- Broker-dealer client cash
- Broker-dealer reserve accounts

- Business banking with simple suite of cash management services

- Full service treasury/cash management
- Team enhancements and geographic expansion
- Bank and securities cross-sell

* Deposit balances as of 12/31/22.

16

# Deposit Growth in Checking, Business, and Savings Was Achieved While Transforming the Mix of Deposits

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

**June 30, 2013**

Total Deposits = $2.1 billion

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

**December 31, 2022**

Total Deposits = $15.7 billion

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

**Checking Growth (6/2013 - 12/2022) = 2,216%**

**Savings Growth (6/2013 - 12/2022) = 729%**

17

# Customer Base and Deposit Volume is Well Distributed Throughout the United States

![img-9.jpeg](img-9.jpeg)

![img-10.jpeg](img-10.jpeg)

**Axos Deposits Have National Reach With Customers in Every State**

18

# Commercial Loans and Deposits

axos

![img-11.jpeg](img-11.jpeg)

## Loan Growth Drivers

- Product Expansion
- Repeating Client Relationships
- Reputation for Reliable Execution

## Deposit Growth Drivers

- Unique value proposition encompassing industry expertise, product/technology, service levels and financial value

19

# Non-Interest Income Growth and Diversification

axos

## Year Ended
*June 30, 2019*

Total Non-Interest Income =
$82.9 million

![img-12.jpeg](img-12.jpeg)

## Three Months Ended
*December 31, 2022*

Total Non-Interest Income =
$113.3 million*

![img-13.jpeg](img-13.jpeg)

**Securities Segment Fee Income * (6/2019 -12/2022) = 479%**

* Note: non-interest income annualized from data through 12/31/22 for presentation in pie graph and comparison vs 6/30/19.

** Note: FY23 includes advisory fee income from AAS business, which was acquired August 2, 2021.

20

# Axos Securities Overview

axos

Monetizing synergies by integrating Banking products and services to Securities customers, RIAs, and IBDs

| Axos Securities | Axos Clearing Securities Clearing & Custody | 70 IBDs 220 RIAs 310,000 Clients |
| --- | --- | --- |
|  | Axos Invest Digital Wealth & Personal Financial Management | 26,000 Clients |
|  | Axos Trading Self-Directed Trading | Launched Fiscal Q1 2022 |

## Consumer Banking

- Consumer Deposit Accounts
- ODL/Margin Accounts
- Jumbo Single Family Mortgage Loans

## Commercial Banking

- Securities-Backed Lines of Credit
- Cash Management
- Commercial Property Refinancing

## Digital Solutions

- Universal Digital Platform
- Account Opening Platform

**Access to ~336,000 Clients**

21

# Integrated Securities and Banking

axos

Leveraging Bank's existing digital platforms allows for unique integrated and flexible Banking and Securities product features

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

22

# Axos Clearing and Custody Highlights

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

- Leadership team with more than 100 years combined industry experience
- 292 employees across Clearing and Custody
- Nation's 8th largest Clearing Services firm by number of broker-dealer clients1.
- More than $30 billion in Clearing Services client assets
- Axos Financial, Inc. acquired E*TRADE Advisor Services in August 2021

June 2023 annualized based on 6 months 12/31/22

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

| Key Highlights | Projected June 2023 | TTM June 2022 |
| --- | --- | --- |
| Custody | $27,906,549 | $28,308,893 |
| Clearing Fees & Execution | $24,054,410 | $21,875,571 |
| Sweep Interest | $76,113,163 | $13,227,233 |
| Margin Lending | $13,474,422 | $10,847,670 |
| Securities Lending | $3,313,480 | $6,891,090 |
| Net Interest Income (Expense) | $1,762,655 | $65,553 |
| Net Revenues | $146,624,679 | $81,214,010 |

1 InvestmentNews Top clearing and custody firms for financial advisers October 2021.

23

# Secular Industry Trends Provide Opportunities for Axos

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

Fee Compression for Active and Passive Investment Managers

- RIAs need to reduce costs and streamline back-office ops
- Automation frees up time/resources for client interactions

Advisors are Leaving Wirehouses to Become Independent Advisors

- Axos to provide bundled securities clearing, custody and banking services
- Target small & medium-sized RIAs and IBDs that large custodians do not serve well

Aging Advisor Population Is Driving Consolidation and Succession Planning

- Axos to provide succession-based and M&A financing to RIAs and IBDs
- Nation-wide footprint and industry focus are competitive advantages

Digitization of Wealth Management

- Axos will offer direct-to-consumer and private label robo-advisory solutions to individuals and independent RIAs

24

# Axos Advisor Services (AAS) At A Glance

axos

## Liberty Provides a Comprehensive Turnkey Platform

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

**Serving 182 RIAs1**
($1M+ AUC)

**~$22B Assets Under Custody2**

**TAMPs**

**62% of Total AUC3**

Turnkey Asset Management Platform, relies on Reps to gather assets and maintain relationship with investor

**Traditional RIAs**

**35% of Total AUC3**

Gathers and manages assets, works directly with investor

**Small RIAs**

**3% of Total AUC3**

Advisors with <$25M in AUC

Note: Data as of 12/31/2022

1. 207 total advisors on Liberty platform; advisors with <$1M AUC comprise <$8M in total assets; there are 13 non-AAS RIAs not on Liberty at Axos Clearing

2. Includes $190M 401K AUC

3. Excludes $190M 401K AUC

25

# Axos Clearing Revenue Sensitivity to Key Metrics

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

Increase in revenue related to key metrics - Illustrative

Axos Clearing - excluding AAS

## AUC Increase

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

Increase in AUC

## Lending Balances

■ Margin Balances ■ Sec Lending Balances

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

Increase in Lending Balances

\*Analysis does not include any benefits from cash deposits held on balance sheet

26

# Axos Clearing Long-Term Revenue and Expense Synergies

axos

Revenue Synergies

Axos Securities:

- Margin Loans
- Securities Lending
- Fixed Income Trading
- Order Flow
- White-label Robo Advisor

Axos Consumer Banking:

- White-label Banking
- Auto Lending
- Mortgage Lending
- Unsecured Lending

Axos Business Banking:

- Small Business Banking
- RIA Lending

Cost Synergies

Axos Securities:

- Self-Clearing
- Regulatory/Compliance
- Client Acquisition Costs
- Customer Service
- IT Infrastructure/Dev

Axos Consumer Banking:

- Deposit Servicing Costs
- Client Acquisition Costs

Axos Business Banking:

- Client Acquisition Costs

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

27

# Axos Invest Managed Portfolios Overview

axos

Core Services

- Digital advisor that helps consumers achieve their investing goals through asset allocation, diversification, and low-cost ETFs.
- Automatic Rebalancing and Tax Loss Harvesting Services.
- Generate recurring revenue streams on assets under management.

Key Features

- **Imbedded Advice:** Consumers are drawn to trusted advice when it is available for low cost.
- **Long-term track record:** Retention of customers due to strong risk-adjusted performance. Creates stability in asset growth through up and down markets.
- **Rewards Checking 2.0:** Managed Portfolios platform helps consumers achieve higher banking rate.

Customer Served

- Consumers who do not have an advisor, looking for low-cost entry point to advice.
- Consumers who have No Time or Desire to make investment decisions on their own.

Sticky customer accounts with opportunities to cross-sell banking and premium services

28

# Axos Invest Self Directed Trading Overview

axos

# Core Services

- Competitive price discovery and execution of equity, options, ETFs, and Mutual Funds integrated with our Universal Digital Banking platform.
- Access to third-party research, alerts, and watch lists.

# Key Features

- Subscription Program: $10 monthly for extended trading hours, margin lending, reduced option costs, access to third party analyst research.
- Thought Leadership: Provide market outlook, thematic blogs, product spotlights to create engagement.
- Licensed Relationship Managers: Available to assist with account opening, tutorials on platform tools, and investment vehicle education.

# Customer Served

- Consumers with advisors who need a place to hold low-cost basis stock, legacy positions, self-serve on favorite ideas.
- Do-It-Yourself investors who want to ideate and trade their own portfolios.

Extending our 'synergistic loop' to capture consumers needing S/D Trading capabilities integrated with our digital banking platform

29

# Axos Invest Managed Portfolios Industry Comparison

![img-9.jpeg](img-9.jpeg)

![img-10.jpeg](img-10.jpeg)

![img-11.jpeg](img-11.jpeg)

| Attributes | Axos | SoFi | Betterment | Fidelity Go |
| --- | --- | --- | --- | --- |
| Business Model and Differentiators | Low-cost, integrated Bank, Borrow, and Invest financial suite - best of both worlds with strong value for consumers | Simple ETF allocation bundled with SoFi loans and free management and unlimited access to financial advisors | Simple asset allocation and rebalancing model with low fees - Advisor access with premium subscription | Simplified choice for investors who want an all-digital Robo-advisor |
| Fee Structure (AUM) | 0.24% | Free | The greater of $4/Month or 0.25% | Free: AUM <$25k 0.35% >$25k |
| User Interface | Simple and seamless feel across both platforms | Very simple, easy to use, but generic | Very simple, easy to use, but generic | Very simple, easy to use, but generic |
| Promotion | $200 for $2000 funded and invested | Free career counseling & loan discounts with qualifying deposit | Up to 1 year of free management for new clients. | N/A |
| Other | Access to licensed relationship team, Core and thematic models, traditional & roth IRA's | No socially responsible portfolio options | IRA access limited to paid membership | Only offers access to Fidelity Flex mutual funds |

## Key Differentiators

**Integrated financial suite of products**

30

# Key Goals of Universal Digital Bank

axos

# Personalization

> Increase chances of offering right product at the right time and place
> Personalization is the right antidote for too much choice, too much content, and not enough time

# Self-Service

> Eventual artificial intelligence tools assist sale of banking products such as deposits, loans, and mortgages
> Products optimized by channel, recipient and journey
> Self service saves time and cost (e.g., activate and de-activate debit-card in platform, send wires via self-service)

# Facilitate Partnerships

> Easy integration of third-party features (e.g., biometrics)
> Access to value added tools (e.g., robo-advisory, automated savings features) either proprietary or third party
> Enable creative customer acquisition partners

# Customizable Experience

> Provide holistic and interactive and intuitive design experience
> Integrate online experience with other channels

# Cross-Sell

> Artificial intelligence and big data credit models enable quick credit decisions
> Customized product recommendations based upon analytical determination of need

31

# Evolving Capabilities of the UDB Platform

axos

UDB offers a growing set of products, capabilities and supported user segments

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

32

# The Digital Experience Roadmap

axos

We continue to **evolve our digital experience** and **provide modern solutions** so financial services providers can have the speed, scalability, and flexibility they need to **deliver better client experiences**

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

33

# Holistic Credit Risk Management

axos

## What We Do

Utilize a holistic credit-risk management framework to manage and monitor credit quality at each stage of the loan life cycle, and leverage specialized Credit Tools to optimize monitoring and reporting capabilities

### Credit Monitoring & Oversight

#### Loan Life Cycle

Set Appetite

Originations

Portfolio Management

Reporting

Special Assets

#### Axos Credit Objectives

Establish Credit Framework and Culture

Safe Growth

Monitor Assets Throughout Life Cycle

Data-Driven Decision Making

Mitigate Problem Loans

#### Example of Credit Tools

- Board of Directors
- Annual Strategic Plan
- Corporate Governance
- Policies & Approval Authorities

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

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

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

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

Note: Credit Tools list is a sampling and is not purported to be comprehensive.

34

# Annualized Charge-offs (Recoveries) to Average Loans Outstanding

axos

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

Note I: Company uses a June 30 fiscal year-end.

Note II: The Company partnered with H&R Block Bank (HRB) to provide HRB branded financial services products. The partnership was terminated December 8, 2020.

35

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

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

($ in millions)

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

36

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

![img-9.jpeg](img-9.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% |
|  |  | $15,645.5 | $157.2 | 1.00% |

37

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

38