you interest like to everyone third afternoon, call March Thank you, year I'd for thank and thank welcome good everyone and I with in an fiscal for of XXXX. joining ended for quarter. us. XXXX the growth originations, Bank. net quarter and you Axos Johnny share book consecutive We XX, share Axos per for had Financial’s Financial the conference excellent Axos to and and double-digit your income value per quarter earnings third loan
fee exceeding net challenging net based a high Our balanced strong margins, Axos months Axos end across deposit for diluted turmoil. and our Securities $XX.X to interest consumer per banking of and were and interest income March results income three broad by and XX.X% the XX.X% headwinds respectively. income despite of and client with caused balances share growth our the industry target of accounts ended reported increased quarter for macroeconomic due Earnings the geopolitical third quarter of million representing XXXX. XX, $X.XX net and growth year-over-year segments.
include XX% XXXX auto, was pending expected more single-family annualized, March in or for and various our offset X.X% warehouse real linked-quarter XXXX. loan loan XX, value lending highlights per $XX.XX commercial quarter at C&I loan estate, book of our share in up decline The up mortgage an this types ending XX, Our billion originations balances $XX.X March strong from XX.X% than loans.
interest interest points third Business margin Banking X.XX six loan quarter the XXXX ended basis X.XX% the ending balances XXXX. warehouse margin linked-quarter. for quarter the by in mortgage for up single-family and jumbo Net December and down from XX, the from X.XX% was points March increased in quarter a basis XX, X.X% single-family nine our ended Excluding X.X% target the of of December the XXXX. quarter strong successfully first to in ended margin March most net annual XXXX in to of maintained interest quarter generated end XX, through Counter higher loan was growth the months XX, towards we X.XX% XXXX. ended X.XX% our fiscal compared the and and have Net peers,
mix steady a our Noninterest-bearing make deposits with XXXX, March XX% deposits noninterest-bearing a December a year well to improvements from in ago. us noninterest-bearing XX, funding XX% at environment. XXXX. corresponding $XXX.X of our deposits rising increasing continue million We approximately significant a XX, positions improvement represent by of deposits steady in approximately period in rate total from The growth
XX.XX% a – million interest $X.X XX.XX% prevision and Business ended offset income The in strong was share months which than the year-over-year March quarter year-over-year, XXXX. increase to segment loan quarter efficiency Banking in for positive XX% focus pre-tax second in more is managing the year the XX.XX% the third in our continuous in earnings our net from on business operating a costs. of as ratio income or ratio leverage of Business operating Our for was were the up of quarter growth $X.XX ago Banking provision our banking in XX.XX% compared quarter. result XX, growth XXXX, the of three Strong our per XXXX efficiency XX% second versus for $X.XX for XXXX Diluted losses. the
the XX.XX% X levels We continue and Tier a of with generate assets ratio remain company, company subordinated and equity on returns capital. Capital strong strong holding X.XX% leverage augment in X.XX%. of a debt at well million In our raised excess generated holding the the We we regulatory third at $XXX at a to further maintaining XX.XX% return bank the above return to requirements. while of of capital. on February, quarter both our
provision the million average annualized net X of ended fiscal year with ago ago. points originations million March quarter the Loan period. XX, from basis XXXX $XXX at XXXX XX, $X.X versus quarter XX third loss $X.X strong XX% the March to investment loans for increase quarter $X.X XXXX. $X.X $XXX times quarter our strong a originations growth. charge-off over an billion, credit billion of loan third follows. We were to billion representing losses QX annualized million and our this originations X.X% added remains net our for XXXX loan of quality charge-offs Total XX% total in basis up Total the of loans. C&I X ending were balances as and points was approximately allowance single-family a million year C&I and were million agency to million. loan million of in support credit Our million gain loan auto decreased mortgage commercial correspondent on $X sale for from production, and ended loan a multi-family December $XXX million on normalization $XXX $XXX XX, $XXX correspondent million when We of sale production to billion quarter $XXX of of production, in approximately production, in XXXX $XXX resulting linked single-family quarter quarter record consumer of loan gain across in the the ending net margins $X.X of portfolio unsecured was production, to down to industry. $X.X year generated compared jumbo income activity in high banking million $X.X while XX% increase Originations production, in by refinancing real a near single-family estate due levels. of million mortgage last were
$X.X a partially reduced refinancing. lower MSR interest sale quarter, since the future We rapid gain demand for a rates in foreseeable generated mortgage of valuations anticipate this offset in the MSR gains rates end valuation by XXXX. from mortgage mortgage benefiting gain as Our million banking increase on rising
mortgages agency $XX Our pipeline X/XX/XXXX. was single-family million of at
appears while XXXX generated stabilized. offsetting to million prepayments; balances mortgage XX, million the our at secondary repricing location rates single-family have in jumbo Our jumbo We a sold up. of business reduced the quarter. during prime market by to loans $XXX we ending elevated single-family this jumbo With $XX of production result loan loan March market expect mortgages share were we as gain for loan
had tremendous billion pipeline X/XX/XXXX. reflecting commercial quarter. Loan C&I was asset-backed million lending growth specialty lending and Our real single-family strong another $X.X originations $XXX jumbo lending. mortgage construction estate across at approximately were
track and Our $XXX with approximately expansion a Demand strong relationships at resulted and geographies across across loan have and strong in execution in backlog loan steady knowledge types record million a balances. of of in X/XX/XXXX. net production remain structuring,
strong be million $XXX able $XXX standards. $XXX lending from at growth balances to mortgage XX, December sustain warehouse our confident our have XXXX. down in across our We and balances remain verticals were while C&I yield positive loan and million that multiple in momentum loan credit million Ending we'll portfolio maintaining net
continue ways to our single-family look business customers. to new opportunistic grow for and We warehouse with existing
good on an while returns structure. efficient maintaining continue generating focus to operating We
Our to core continues leverage. generate banking business strong positive and operating
was efficiency and Our X/XX/XXXX. business ratio three ended the months XX.XX% and banking XX.XX% for nine
unit more mature. savings will that efficiencies business security We cost grow as and becomes in series result of a each across have our business operational we
of clients March XXXX. and business the trading, Since continue strategically and as incremental of and on we to maintaining tech through billion with grew nine quarter. Additionally cost with grew the faster compared incur then, representing cost across XX market operating such points while We initiatives, customer XX, balancing checking, best-in-class securities accounts. at in ago March XXXX of securities focused investments efficiency bank. deposit enhancements consumer-direct by we've and the increasing of savings broad-based $XX.X in feature share deposits in commercial in closing of the to carefully weighted consumer were AAS bank banking. consumer XX, products wallet at months relationships average related banking quarter, infrastructure total XX% and half at XX of deposits as the Checking and the and linked of adding and of acquisition. growth expenses crypto the are quarter savings, representing basis demand upgrades deposits our We'll comprised of consumer deposits business, Consumer be savings The advance deposits new our growth new money for affiliate points reprised the to a our X.X% total basis deposits. cross-sell. X/XX/XXXX commercial, existing ratios marketing on X.X% to small at future at and deposits increasing accounts end We clip by linked our
December to cost came or Clearing on- we and to off-balance Growth banking commercial business at were able XX, noninterest-bearing and securities XXXX, competition fund their holdings generate deposit put on granular We as $X.X in percentage flexibility client at advisors March XX, billion cash as sheet. clearing loan billion businesses. generate keep from of client generate these Axos for or $X.X XX, deposits noninterest-bearing bigger other at reaction organic cash sheet will $X.X XXXX. sheet in $X.X $X.X solid advantage balance Bank’s up deposits deposits Our banks interest to from Average continue treasury The an of providing to assets were support growth, Axos XXXX businesses billion to deposits our low to and balance Bank’s growth. management Total deposits loan approximately sheet. deposits increased and cost in billion even custody low-cost our billion volatility. from Axos to increase. March were the our fee rates off-balance elevated growth from income that on when continues low rise market small and deposit stock a deposits be businesses kept
as deposit positions rate rising Our portfolio and diverse well securities lending for businesses a and modest interest environment.
broke securities the are floating of is March than with of years. balances our only is at securities ending of half XX, million XXXX. rate assets and less duration approximately our Our total average About securities $XXX portfolio X.X X% of
rate was five Our XXXX total X/X it XX% of loan outstanding jumbo loans March and years. was in These billion after much adjust portfolio the $X.X our and single-family outstanding XX, and of and XX% at as ARMs $X.X multifamily than prior loans billion loan are approximately lower what cycle. representing principle
points other years With the jumbo fixed for quarter than year rate less and mortgages multi-family prime our loans the multi-family jumbo on XX and from months April into remains average on over in CRA single-family or mortgages We purposes, basis up jumbo March biggest the XX, raised multifamily and three XX jumbo XX years. of sheet. rates approximately loans $XX the originated in contributor originated the up purchased two and XXXX C&I the The we single-family solid. sheet basis past respectively exception we down we rates for mortgages prior been respectively. single-family our agency jumbo and were X.XX% weighted no growth and our loans balance points quarter. and three several our newly mortgages, four have balance last X.XX%, of and single-family ended originated our basis million to X/X multi-family overall on C&I loans X.XX% Note demand of loans have were duration loan
March ended XX, to linked of quarter the by $X.X loans $XXX outstanding. loans C&I XXXX, For representing billion our gross nearly quarter increased half million
are of a loans of SOFR, equipment be March of finance $XXX XX, and At other rate. variable XX% adjustable are points points rate XXXX, will up. to floor our million to will LIBOR of the loans their above of their XX loans XXX C&I and adjust exception basis AMERIBOR approximately other loans the XX% all other C&I XX% With above C&I floor our up indexes. our of basis their be loans above floor and our C&I XX% at with another XXX adjust
competition high quality loans from While well C&I remain for secured elevated. borrowers
on pressure continue on rise, upward as pricing further rates expect loans new We non-bank to competitors. putting
We loan our growth banking securities and the about our good have since from of cycle a feel robust ability transformed variety to franchise upgrade last deposit our commercial with businesses. fund and our deposits consumer
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mortgage accounts of an our customers products. our for opting and jumbo checking consumer customers pay cross-selling new mortgage agency and our with progress with bill deposit further made have direct percentage and savings increasing We to deposit
and offering for API cash operating that market winning accounts branch customer location. Our are a without service management superior clients for digitally integrations teams are middle treasury the already need by transacting and
Our to sticky, continue services add deposit groups, Axos HOA deposits. cost fiduciary specialty and including no
funds rise billion in and $XXX of flexibility held additional reprice for with due deposit lower services competition our granularity of increases beyond XX diversity were million the are prior customer-centric meaningfully to partner approximately partner average will deposits What we billion our model. approximately deposit $X.X deposit with points, earning banks half back $X.X changes businesses of banks, custody and have basis another be to betas XX% cycle to they billion expect $X.X an rate deposits our of and the our months. calendar XX% the clearing in at tech is XXXX three security We deposits of immediately fed the the while within funding from repriced betas and fed enabled of in tightening than
December Net adverse XX March economic low asset decrease for points us Non-performing remains a our quarter had at the makes healthy. an credit estimated current March and Our XXXX. basis the non-performing losses, points LTV to ended the XX.X% XXXX charge-offs, XX, based non-performing to basis single-family assets our loan ended remain we’ve are from approximately mortgages XX.X% XX total loans at XX% very best XX.X% single-family first XX, our in value XXXX mortgages credit XX% or total realized XX, below was quarter about Of loan to lending comfortable quality of are low historically loans, had even of approximately and where below our our extremely scenarios. outlook assets for values. low of current estimates
loans. mortgages, losses material low on on Given vast single-family our the do the of to values we loan anticipate occurring delinquent our majority not
loan changes of $X.X with million mix loan up primarily from loss million, total Our $X.X a provision higher percentage quarter and a loss was by which our auto in accounting provision greater increase loans. up this for reflects loan is and in last year-over-year. $X.X quarter million The the C&I
for times which X.X% total $XXX.X and XX, months of at allowance total in XXXX, approximately total XXXX. charge-offs annualized loans our is million our loss ended three net was the approximately XX, XX Our March March loan
XXXX, remain million low $XX Our target pipeline unsecured of remains end at real of on higher months solid sale small real commercial of estate loans. loan range billion across our growth categories auto we loans and mortgages, loans, loan mortgages of $XXX million April achieving consisting in and approximately With loans multi-family $XXX growth C&I commercial agency single-family fiscal pipeline from of XXXX the consolidated target $XX and single-family and XX, loan of demand above the of gain with term million our confident first million in $XXX million of of estate balance team’s specialty $X.X nine XXXX. for our and healthy consumer in multiple loans, fiscal jumbo
flex continue This a us eliminate consolidate per lending and more and custody will Advisory in as automate with operating by access processes; approximately of profitability time opportunities the $X Morgan revenue deck. meaningful for to business Axos to months March over the are from were Services, year. to Overall by and flexibility costs We volume. of to this declines clearing scalable Axos more business we efficient, systems, integration improve based security converted progress average industry-wide see ago. and million due text trading redundant lower profitability quarter. making reduce to impacted with RIA at clearing acquired margin from XXXX manual of transition balances successfully our workflows we the access advisory services approximately lower more access eight provide We transaction negatively good Securities JPMorgan We Stanley
have that future on track implementation. or of fiscal to and clearing our operational are We slight secretion businesses rate in funds AAS of dozens without generate We in fed for efficiency custody increases. of for the with phases benefit remain the various initiatives acquisition XXXX
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access to the advantage took $X.X borrowing, excess raise of March have the We through outstanding had of to liquidity third end billion We our million. window of conditions billion FHLB fed approximately we in we as of of at the $XXX quarter; subordinate discount $XXX $X.X the billion Furthermore, available market favorable million debt in capital had XX, February. XXXX. augment of $X.X
deploy our remain to M&A. using capital emerging priorities and in access accretive buybacks growth, existing with and opportunity loan unchanged capital support capital for on a organic focus our Our businesses reinvest and
income from non fee fee expenses merger assets depreciation year, and of due with amortization Axos quarter increased cash corresponding XX, the dealers deposit billion broker our assets next business quarter markets a reduced $XX underlying activity. relationships client eight from impacted quarter the the in the and XXXX as had Our based Broker Clearing reduced to initiatives. our approximately negatively Axos new the AAS addition balances the lower with to March and period of slightly ended and pivoted administration, administration growing income in of transaction third and acquisition, higher Clearing in we custody the and and under related cost the lending fees volumes income Total AAS equity for to securities billion conversion $XX margin XX.X% clearing assets were of assets dealer acquisition $X.X of and activity the under client compared broker including million With generated of accounts lending approximately lower introducing clients. us, ago, dealer and securities under and to Axos the third and ended We for quarter quarter of assets variety third up strategic XXXX were of last client completed down pre-tax by excluding Clearing business. overall, a under custody months making billion risk. one-time progress were securities for clients RIA decline XXXX. in transaction $XX due clearing focus good a self existing we’re tactical new have behind on assets
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months initiatives, product more Colorado at a and their As and look partner to Investor of business. plan single-family opportunities securities perspective, Block technology to market jumbo clients the XX access to overcome to sharing grow Day security reassess we see [ph] forward H&R and pressure in multi-family bank becoming months their details gain next periods our Centennial, share revenue help and competitor our We’ve scale. scaling exciting by by we have successfully businesses our commercial for in on loss our and to XX next week building navigated banking on services. and need implement underway and clients the and strategic related other and from of We driven over through
to diversity loan margin double-digit generate to X% the a resiliency business model. of ability maintain a interest Our growth our and and net is testament
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capital to we of accelerate see our will excess position deploy when and resources to these profitability well take strong advantage aggressively opportunities growth. market to be us dislocations ability nimble Our
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