The following is a summary of the Axos Financial, Inc. (AX) Q1 2025 Earnings Call Transcript:

Financial Performance:

• Axos Financial reported a net income of $112 million for Q1 2025, up 36% YoY with a significant improvement in earnings per share, which saw a 40% increase.

• Deposits grew by $614 million with notable growth in interest bearing demand and savings deposits.

• Loan balances increased by 0.3% linked quarter and 13.7% year-over-year, with ending loan balances at $19.3 billion.

• Net interest margin improved to 5.17%, approximately 81 basis points higher than the same quarter last year primarily due to payoff of three FDIC purchased loans.

Business Progress:

• Axos Financial has been expanding its commercial lending and deposit businesses, with new additions being a life sciences and technology banking team in Silicon Valley.

• The white label banking platform was soft launched, enabling advisors to access Axos's suite of products.

• Notable growth occurred in the Axos Clearing division, with $559 million in net new assets for the custody business during the quarter.

Opportunities:

• Sustained growth in the commercial lending sector, supported by new teams and banking platforms such as the newly developed white label banking service.

Risks:

• Elevated prepayments in lending categories like single-family jumbo mortgage, multifamily, and auto loans continue to apply pressures on loan growth.

• Potential impacts from ongoing competitive dynamics in loan pricing and spread compression in commercial lending.

Tips: For more comprehensive details, please refer to the IR website. The article is only for investors' reference without any guidance or recommendation suggestions.