Axos Financial (AX) Tops Q1 EPS by 26c
Axos Financial (NYSE: AX) reported Q1 EPS of $0.94, $0.26 better than the analyst estimate of $0.68.
“Our diverse consumer and commercial banking and securities businesses continue to generate strong earnings growth, as reflected in the 33.3% and 14.7% year-over-year increases in our earnings per share and our book value per share, respectively,” stated Greg Garrabrants, President and Chief Executive Officer of Axos. “We achieved a record quarter in mortgage banking as a result of 148% year-over-year increase in single-family agency loan originations and robust gain-on-sale margins. Additionally, we added to our strong capital position by issuing $175 million of subordinated debt at an attractive rate. We remain focused on prudently managing our credit and capital and growing our lending and fee-based businesses.”
“Our credit quality remains healthy, with none of our loans on forbearance and only $5.3 million of loans on deferral at September 30, 2020. We adopted the CECL accounting standard this quarter, and our day 1 increase to our allowance and reserve for credit losses totaled $53.0 million,” stated Andy Micheletti, Executive Vice President and Chief Financial Officer of Axos. “Our loan loss provision this quarter ended September 30, 2020, was $11.8 million, consisting of $6.5 million for H&R Block Refund Advance loans due to IRS processing delays, and $5.3 million for our non-RA loans. We ended the quarter with $132.9 million in our allowance for credit losses, representing 1.2% of our total loan and lease balances. Due to the highly collateralized and low loan-to-values of our secured loan portfolios, we believe we are well positioned from a credit perspective for a variety of economic scenarios.”
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