Axos Financial reported first-quarter fiscal 2027 adjusted earnings of $2.34 a share on revenue of $395.1 million, both above Wall Street forecasts, according to the source. The bank said net income rose 15.4% from a year earlier, and deposits climbed 14% year over year.
Shares closed the regular session at $92.55, up 1.17%, and were little changed after hours. The source says that suggests investors viewed the beat as solid but not transformative.
Net interest margin widened to 4.64%, which the source attributes to asset sensitivity and the Verdant acquisition. Loan balances rose to $25.9 billion, and deposits reached $25.4 billion. The bank booked two commercial and industrial charge-offs, but management said those credits had been reserved for in prior quarters.
Management expects net interest margin to stay flat over the next few quarters. It said deposit costs and excess liquidity will offset rate benefits. The benefit from the September Federal Reserve rate hike should be largely offset by the drag from excess liquidity tied to the Capital One deposit acquisition, the company said.
Chief Executive Greg Garrabrants said the company's "core business fundamentals remain strong." He also said Axos is "well-positioned for a higher for longer interest rate environment," citing de minimis unrealized losses in its securities portfolio and a $50 million unrealized gain in loans held for investment.
Axos kept its fiscal 2027 organic loan growth target at low to mid-teens, excluding acquisitions. Its loan pipeline is about $2.8 billion.
On crypto, Garrabrants said: "We are going to put it in beta just to make sure everything is buttoned up and working properly." The source describes a planned Bitcoin rollout.