Financial for second thank XX, Axos of to Bank. welcome XXXX, year for you and quarter Axos Financials like of Johnny. and interest you December everyone conference I'd Good fiscal Axos you, Thank everyone, your in I us. thank afternoon to for XXXX. the the call end joining
million fiscal second second million the announced December million the second December XX, XXXX, quarter. the earned quarter quarter X.X% X.X% from $XX.X income compared in quarterly fiscal quarter of up Axos for the the in and record up earned XXXX, prior $XX.X ended net $XX.X ended XX, to
Earnings the for million, diluted XX, XX, quarter $XX.X were ended quarter attributable $X.XX share $X.XX XXXX, December XXXX. diluted ended $X. September quarter XX, share December for diluted and XXXX, December share for to Axos' XX compared per common the per to stockholders ended or the -- per
$X.X highlights annualized per Excluding and leases $XX.X earnings include $X.XX XXXX, and non-recurring from ended non-GAAP XX.X% for second loan approximately XX.X% quarter quarter and share first the Other up expenses, million quarter up the earnings of adjusted ending respectively billion, December XX, were of the by increased XXXX. year-over-year. and
portfolios. in mortgage loan Strong warehouse commercial specialty production C&I estate leasing payoffs in or jumbo in bowels by IR multi-family lending, lending, estate uncertain originations real offset small lower and equipment in commercial single-family real
December in points first fiscal XXXX Total and the assets the and for unchanged second billion December reached XXXX, second XXst September margin quarter XXXX, $XX.X the from -- from interest basis by up X.XX% billion $X.X up X.XX% $X in of to XX, quarter the up billion compared of XX at XXXX. Net was from quarter XX, XX, XXXX. XXXX, of fiscal quarter X.X% the September ended
in interest non-interest from excess subordinated average liquidity impact cost excluding costs X average average on deposits, H&R balances products X.XX a higher basis while Average bearing bearing function was and near The loan debt. and Block, declined X.XX%. and costs loan %, basis seasonal funding sequential the improvement by of linked-quarter to yields our points fell funding points to XX lower deposit a
year-over-year up was X.XX% XXXX. Net have X year comparable and XX, in for for segment interest the basis banking basis September been basis points up approximately interest ended at from the XX ago. the XX, margin points quarter December quarter business would Net quarter the margin in points X.XX%, XXXX X.X%, a up
ratio efficiency December compared XXXX. to and were XX, in The XXXX year-over-year XX.XX ended of XX.XX% periods and December period the increase primary XX.XX% and three the driver the Our XX, which comparable of six-month ended intensive. our ratio for addition banking efficacy XX.XX higher Axos the in Clearing business, is the but and was a Axos business, also at operates the than mature which more more Invest, to compared relatively efficiency capital securities respectably
for six year the Our ended all bank at for compared to period X.XX% of regulatory to XX.XX% remained the strong periods. XXXX ended bank, level of solid leverage ratio XX, Tier with XX, XXXX. remained both our December for requirements the in ago months X.XX% Capital compared six the only efficiency months X ratio December XX.XX% of
to Return have been XX.XX% second in last compared XX.XX% the period equity non-cash in one-time depreciation merger-related amortization quarter non-GAAP on on expense, year, for equity the adjusted second our would corresponding was excluding of and XXXX return XXXX. of quarter expenses XX.XX% the
charge-off the to was basis receivable a charge-off identified of this of XX, asset multi-family loans and net Our and are points factoring loan loan-to-value Non-performing points was than excluding basis credit million XX.X and single-family assets ratio XXXX. quarter average good non-performing The ratios. previously by comprised December total X assets majority remains quarter. ended for quality leases XX of with less a our low
prior increased in December coverage allowance small prepayments jumbo C&I loan single-family with due billion at remain balanced commercial estate to loan non-performing XX, We originations finance lending Ending year-over-year XX.X% and our lower and reserved leases loss of in for to in XXX.X% real balances by to and corresponding XXXX. compared representing year. XX.X lender strong the loans period well the
consisted for on of XXXX in multi-family loan growth, single-family of XXX of gain XXX production, real commercial and originations. Emerald production production. auto loan consumer and jumbo C&I originations XXX million Advance XX estate XXX million portfolio net portfolio production, of C&I million XXX XXX eligible second million resulting unsecured of sale agency production December single-family million XX, million ended of of Our another of loan the quarter million
follows. fiscal For quarter XXXX the are of second originations as
was ratio with loan-to-value agency The $XXX XX.X. multi-family The was average with of XX.X. single-family the single-family The loan average originated production ratio, jumbo average XXX of ratio was FICO loan-to-value average FICO loan-to-value coverage production average for the of score the an was the for the ratio eligible XX.X commercial estate coverage XX.X, XXX. and was balance service production real debt the debt X.XX. The originated small X.XX, the and and was FICO was average service loans auto loan-to-value average of
use real was current historic with appraisals At portfolio December of loan-to-value XX, amortized date loan-to-value increasing conservative estate ratios, over real loan-to-value markets values. balances, origination entire making XXXX, the in The more our weighted average estate XX%. ratios bank's of these
loan-to-value our XX%. ratios between loan-to-value and XX% X% XX%, December have or ratios between less and at approximately As XX% X% have than ratio X% and between of ratios single-family XX% loan-to-value XX, XXXX below and XX%, than and XX% of XX%, XX% mortgages have greater loan-to-value ratio have a XX%, quarter, have loan-to-value
in track originated. We points record X credit credit performance jumbo our loan strong in portfolio losses of single-family a with of of well lending have established lifetime loans basis mortgage originated single-family
X.X book. have XX, representing December of approximately billion our total at loans of outstanding loan multi-family We XXXX, XX% approximately
of of are in book between our the loan-to-value XX%. multi-family value and X% ratio weighted the on of and our XX% loans origination. average between XX% loan-to-value, XX% our solid. time XX% above XX% loan-to-value are Approximately XX% loan is and The multi-family multi-family Growth has are XX% been appraised loan based multi-family ratio than and XX% at loans of our have X% less production
losses lifetime loans. have credit points multi-family are basis loans the portfolio originated than XX our For we in originated multi-family less X originated over of years
million. with record outstanding quarter Our business balance C&I ending and million quarterly by an X.X posted increasing lending of XXX originations of
see continue demand finance. and good estate, categories commercial lender specialty including islanding and equipment lending, our We to real diversity across finance
C&I and and new members We commercial to further team our have geographic experience also loan lending expanded expanded in our relationships cover types. added businesses course
to low Loan demand and near wages, across and solid and rising markets highs. rising profitability values by corporate supported lending stock our home market most prices categories record unemployment, remains stable of
Our C&I loans single-family of loans. XXX X.X loans, consisting XXXX at agency XXX property loan jumbo of XX, single-family pipeline income XXX million and was XXX of million billion mortgages, million of million of December
our but transition in anticipate originations lending fiscal our XXXX. commercial adjusted of across from continue second risk the categories We into lending most away lending estate real single-family the we to relative half returns strong portfolio business, these lending given and C&I across
fluctuate Our quarter-to-quarter based loan the from average on balances will pace lending of prepayments.
Switching XXX including small in linked million and to to year-over-year billion. XX.X Services. million or primarily deposits We had deposits XX.X% X.X funding, management, total increased quarters Axos Fiduciary specialty in deposits business growth treasury
bearing non-interest deposits bearing to average XXX non-interest balances over growing with December quarter. We million increasing have in by deposit our continue success
at XX% to compared XXXX, accounts. XXXX, checking, into costs, and our improvement lower XX, XX, XX% money accounts, X% December balances at XX, deposits December Checking accounts, deposits consumer business our checking total replacing accounts, are of success deposit of The IRA accounts, XX% prepaid X% X% and higher savings market and savings and represent deposits XXXX. savings XX% At money deposits. time December costs, reflects approximately
off kicked our million December prep resulting Emerald balances Block the loan from customers the of approximately retained consumer by Advance XX% Emerald of quarter. tax Advance XXXX. XX, originating December tax XXXX-XXXX We in of incremental at $XXX season loans, million H&R unsecured loans, approximately We $XX
successful February. started as customers interest end H&R season with tax customers. prep tax forward we program prep H&R H&R available On fees borrower to This all Refund to January look to to We originating the no another loans tax the block Advance X, of charges or block. block qualified to
calendar ended the We $XX crossing threshold interchange $XX.X billion assets related billion the Durbin to with debit here the of the exemption.
a Durbin stated year in on de in As our expect as a call, our interchange impact minimis of we last earnings result calendar relatively our direct XXXX. bank's we
tax interchange continue products. not does on block the Because interchange rates to our XXXX, substantially card the or impact H&R will complete. H&R impact Block's do Block or the we the this own H&R from our with card Durbin the insights July July to when XXXX, MO expect work be X of X any economics of Block season economics loss MO We not from resolution ongoing H&R revenue until on before
have we to share resolution active to in reached whether relationship, with Block with and H&R timeframe. a to future respect discussions updates with Although, will to to have be the our both satisfactory of respect continue parties we no what
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insured bank quarter volatility. as tolerance revenue clients Securities dealer $XX.X flat and linked the result earned In was risk Axos stock reduced this while activity IBD quarter, margin $X.X Clearing fees Clearing, FDIC XXXX broker XX, as months fees December both respectively. lending revenue down. deposits fee was lower lending and million market decreased were six for trading of on roughly and and declined a three their custody ended and income million were our
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signed and two custody the $XXX two IBD December firms in AUM quarter. new firms million RIA with Clearing Axos approximately in
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our independent infrastructure services to sales serve building our are RIAs. to We accelerate and capacity
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bankers deposit months, the Angeles XX downtown opened Midtown have XX and Over office commercial to past commercial Los in Manhattan. a senior we added and loan and
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