Axos Financial, Inc. (NYSE:AX) Q4 2020 Earnings Conference Call - Final Transcript

Jul 29, 2020 • 05:00 pm ET


Axos Financial, Inc. (NYSE:AX) Q4 2020 Earnings Conference Call - Final Transcript


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Greetings, and welcome to the Axos Financial Fourth Quarter 2020 Financial Results. [Operator Instructions] Please note that this conference is being recorded. I will now turn the conference over to our host, Johnny Lai, Vice President, Corporate Development and Investor Relations. Thank you. You may begin.

Johnny Y. Lai

Great. Thank you. Good afternoon, everyone. Thanks for your interest in Axos. Joining us today for Axos Financial, Inc.'s Fourth Quarter 2020 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 12 months ended June 30, 2020, 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 these 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. The 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 call turn the call over to Greg for his 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 Fourth Quarter of Fiscal Year 2020 ended June 30, 2020. I thank you for your interest in Axos Financial and Axos Bank. Axos announced record net income of $183.4 million for the fiscal year ended June 30, 2020, up 18.2% over the $155.1 million earned in the fiscal year ended June 30, 2019. Axos' return on average equity for fiscal 2020 was 15.65% and the bank's efficiency ratio was 39.81%. Fiscal year 2020 earnings per share increased 20.2% to $2.98 per diluted share compared to $2.48 per diluted share in the fiscal year 2019. The excluding acquisition-related expenses, non-GAAP earnings per share increased 20.59% to $3.13 per share in fiscal year 2020, equating to a non-GAAP return on equity of 16.49%.

Our book value per share was $20.56 at June 30, 2020, up 17.7% from the prior year. We had an excellent quarter with higher net interest margins, double-digit growth in net interest income and noninterest income, strong deposit growth, positive operating leverage and stable credit performance. The highlights of this quarter include the following: ending loans and leases increased by approximately $258.4 million,