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Mar 31, 2021
Axos Financial Q3 2021 Earnings Report
Net income decreased slightly, but net interest margin and loan balances improved, driven by growth in commercial real estate and C&I lending.
Key Takeaways
Axos Financial, Inc. reported a decrease in net income and earnings per share for the third quarter of fiscal year 2021 compared to the same period last year. However, net interest margins improved, and loan balances excluding mortgage warehouse were up. The company also announced the acquisition of E*TRADE Advisor Services.
Net income was $53.6 million, a 4.3% decrease year-over-year.
Earnings per diluted share were $0.89, a 4.2% decrease year-over-year.
Net interest margin increased to 3.96% from 3.94% in the previous quarter.
Total assets grew to $14.8 billion, up 21.9% compared to March 31, 2020.
Axos Financial
Axos Financial
Axos Financial Revenue by Segment
Revenue by Segment
Banking Business Revenue
CapyFin.comSecurities Business Revenue
CapyFin.com Forward Guidance
Axos Financial is expected to benefit from the acquisition of E*TRADE Advisor Services, which will bring a state-of-the-art technology platform, a team of custody experts, a new source of fee income, and access to low-cost deposits.
Positive Outlook
- Acquisition of E*TRADE Advisor Services will add a technology platform.
- Acquisition will bring a seasoned team of custody experts.
- New source of asset- and transaction-based fee income.
- Access to over $1 billion of low-cost deposits upon closing.
- Loan balances excluding mortgage warehouse were up 3.1% linked quarter.
Challenges Ahead
- Net income decreased 4.3% year-over-year.
- Earnings per diluted share decreased 4.2% year-over-year.
- Non-interest expense increased due to data processing, professional services, and salary costs.
- Banking and service fees decreased due to the non-recurrence of tax refund banking products.
- Termination of the HRB relationship.