Key Highlights

  • Net income reached $129.6 million, or $2.25 per diluted share, against $112.4 million, or $1.94.
  • Net interest income grew to $331.3 million from $291.1 million.
  • Net interest Margin stood at 4.64%, versus 4.75% a year earlier.
  • Provision for Credit losses came in at $24.5 million, up from $17.3 million.
  • Total non-interest income hit $63.8 million, nearly double the $32.3 million of a year ago.

Earnings up 15% as net interest income expands

Axos Financial (NYSE:AX) is a technology-driven diversified financial services firm with about $30.8 billion in Assets and about $48.0 billion of assets under custody or administration at its clearing unit. Its banking, clearing and custody, and related services run on its technology platforms.

The quarterly filing for the three months ended September 30, 2026 shows Net Income of $129.6 million, or $2.25 per diluted share, compared with $112.4 million, or $1.94 per diluted share, a year earlier. That is an increase of about 15% in net income on a calculated basis.

Net interest income increased to $331.3 million from $291.1 million, a calculated gain of about 14%, aided by a larger balance sheet. Average total assets came to $30.2 billion versus $25.4 billion a year earlier.

Margin eases as funding costs change

Net interest margin fell to 4.64% from 4.75%, while the Interest Rate spread edged up to 3.91% from 3.89%. The Yield on interest-earning assets dropped to 7.24% from 7.60%, and the average rate paid on interest-bearing liabilities declined to 3.33% from 3.71%.

Average loans totaled $26.0 billion at a 7.48% yield, versus $21.5 billion at 7.99%. Purchased loans yielded 11.49%, down from 15.81%, on a smaller average balance of $595.6 million.

The funding mix also moved. Average Federal Home Loan Bank advances climbed to $863.0 million from $60.0 million, and secured financings averaged $559.5 million compared with $8.5 million. Interest-bearing Demand and savings deposits averaged $19.7 billion at 3.24%, against $17.2 billion at 3.68%.

Provisions go up while non-interest income doubles

The provision for credit losses reached $24.5 million, up from $17.3 million, which left net interest income after provisions at $306.8 million versus $273.8 million. Total non-interest income was $63.8 million compared with $32.3 million.

The filing states that results of Verdant, an acquired business, have been part of the consolidated results since September 30, 2025, so the prior-year quarter contains no Verdant earnings. That timing explains part of the strong year-over-year growth in the Balance Sheet and income lines.

Interest-earning deposits at other institutions averaged $1.2 billion at 3.54%, down from $2.5 billion at 4.44%, as balance sheet resources moved into loans and securities. Mortgage-backed and other securities averaged $788.8 million, up from $61.1 million.

Balance sheet scale and what investors will track

Total deposits reached $25.4 billion at September 30, 2026, compared with $24.6 billion at the prior fiscal year-end of June 30, 2026. Stockholders' Equity averaged $3.3 billion for the quarter, up from $2.8 billion.

Earnings growth is outpacing the slight decline in margin, since balance sheet expansion and higher fee income more than offset lower yields. Net interest margin is down 11 basis points year over year.

Investors following the stock will likely watch whether funding costs from advances and secured financings keep climbing, and whether provisioning stays at the $24.5 million quarterly level.