Axos Financial, Inc. (NSE:AX) Q3 2019 Earnings Conference Call Transcript

Apr 30, 2019 • 05:00 pm ET


Axos Financial, Inc. (NSE:AX) Q3 2019 Earnings Conference Call Transcript


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Johnny Lai

Thanks for your interest in Axos. Joining us today for Axos' Financial Inc's Third Quarter 2019 Financial Results Conference Call are the Company's President and Chief Executive Officer, Greg Garrabrants; and Executive Vice President and Chief Financial Officer, Andy Micheletti. Greg and Andy will review and comment on the financial and operational results for the three and nine months ended March 31, 2019 and they will be available to answer questions after the prepared remarks.

Before I begin, I would like to remind listeners that prepared remarks made on this call may contain forward-looking statements that are subject to risks and uncertainties and that Management may make additional forward-looking statements in response to your questions. These forward-looking statements are made on the basis of current views and assumptions of Management regarding future events and performance. Actual results could differ materially from those expressed or implied in such forward-looking statements as a result of risks and uncertainties. Therefore, the Company claims the safe harbor protection pertaining to forward-looking statements contained in the Private Securities Litigation Reform Act of 1995.

This call is being webcast and there will be an audio replay available in the Investor Relations section of the Company's website located at for 30 days. Details for this call were provided on the conference call announcement and in today's earnings press release.

At this time, I would like to turn the call over to Greg for opening remarks.

Gregory Garrabrants

Thank you, Johnny. Good afternoon, everyone, and thank you for joining us. I'd like to welcome everyone to Axos Financial's conference call for the third quarter of fiscal 2019 ended March 31, 2019. I thank you for your interest in Axos Financial, Axos Bank and Axos Securities.

Axos announced net income of $38.8 million for the fiscal third quarter ended March 31, 2019 down from $51.3 million earned in the fiscal third quarter ended March 31, 2018 and unchanged when compared to the $38.8 million earned in the prior quarter. Earnings attributable to Axos's common stockholders was $38.7 million or $0.63 per diluted share for the quarter ended March 31, 2019 compared to $0.80 per diluted share for the quarter ended March 31, 2018 and $0.62 per diluted share for the quarter ended December 31, 2018. Excluding non-recurring expenses, non-GAAP adjusted earnings and earnings per share were $51.5 million or $0.84, respectively for the quarter ended March 31, 2019.

Other highlights for the third quarter include ending loan and leases increased by approximately $1 billion, up 12.8% year-over-year and 4% annualized from the second quarter of 2019. Strong originations in multifamily, small balance, CRE and C&I were offset by lower production in jumbo single-family and a few large payoffs in our commercial specialty real estate loan portfolio. For payment for H&R Block franchise and Emerald Advance loans also accounted for $65 million of sequential decline and the ending loan balances at March 31, 2019. Total assets reached $10.9 billion at March 31, 2019, up by $1.1 billion compared to December 31, 2018