Axos Financial (AX) Q1 2027 earnings summary

Executive summary

• Net income rose 15.4% YoY to $129.6 million; diluted EPS was $2.25 and adjusted diluted EPS was $2.34.

• Net interest income increased 13.8% YoY to $331.3 million; NIM was 4.64%, up 10 bps QoQ but down 11 bps YoY.

• Ending deposits were $25.4 billion; loans held for investment grew $316.6 million QoQ, with management citing a solid pipeline and faster expected growth in the December quarter.

Financial highlights

• Non-interest income rose 97.3% YoY to $63.8 million; non-interest expense was $195.4 million, up $39.2 million YoY and down $10.5 million QoQ.

• Provision for credit losses was $24.5 million versus $17.3 million YoY; income before taxes was $175.2 million.

• Adjusted earnings were $134.8 million and adjusted diluted EPS was $2.34, versus $120.4 million and $2.07 YoY.

• Total originations for investment, excluding single-family warehouse lending, were $5.7 billion versus $4.2 billion in Q1 FY2026.

• Expense growth reflected Verdant-related depreciation, acquisition amortization, staffing, servicing costs and technology investment; excluding the prior-quarter $21 million legal accrual, expense rose about $10 million QoQ.

Outlook and guidance

• FY2027 organic loan growth target remained low-to-mid teens; management expected growth to accelerate from Q1, supported by a roughly $2.8 billion pipeline and large loans expected to close in December.

• Excluding net paydowns in single-family mortgage and warehouse, multifamily, and small-balance CRE, ending loans grew approximately $563 million during the quarter.

• NIM was expected to remain roughly flat over the next few quarters; excess Capital One deposit liquidity is a December-quarter drag, while NII is expected to expand.

• Expense growth was expected to normalize as AI efficiencies develop; personnel and professional-fee growth remains capped at 30% of revenue growth, with average quarterly expense growth guided at $3 million-$5 million absent acquisitions or one-time items.