Financial's like another you I thank to to year Thank ended in had consecutive for XXXX. the interest fourth in fourth originations excellent our quarter I'd of your us. Axos and growth fiscal and joining Axos with quarter. Financial welcome double-digit for quarter thank conference you, Johnny. for call Good everyone XXXX you XX, loan Axos We Bank. afternoon for June everyone,
results deposits net the end We basis. deposits of with June and $XX.X interest of $XXX.X net from were year-over-year, income X.X% in a XX, almost year-over-year broad We ended of double-digit XX.X% and Axos reported strong and respectively. target by income led representing Our and based exceeding XX million growth months year-over-year and high XXXX, by linked three margins the our interest for XX% strong quarter net sequential and growth growth Securities. on grew million X.X%
was per this XXXX. June include net billion, X.X% $XX.XX following; Our linked up quarter highlights share for ending loans XX.X% June the XXXX, The per XX, XX.X% up XX, from share balances annualized. book value at investment quarter $XX.X or were
through peers, XX, March XX, the In the in interest strong contrast unit banking from Excluding the ended margin up warehouse the XXXX. single-family basis XXXX ended margin basis year X.XX% X.XX% X% XXXX quarter. ending for June interest a loan most maintained net annual the and have up was interest X.XX% points linked Net in the points was target ended the generated XX, from XX increased to by and quarter from fourth growth high XX, X.XX% business loan end balances June in quarter we of quarter Net X.XX% compared fiscal XXXX. March XXXX. for margin our quarter, X.XX% to mortgage ended quarter our successfully XX and the in of
The approximately March XX, XX% to non-interest of deposits, $XXX approximately deposits represented bearing make with increasing improvement in of year XX, deposits significant deposits $XXX million clearing corresponding June Non-interest up improvements by from was from $X.X XXXX, steady us from the and mix positions approximately growth Deposits total million ago. Securities funding non-interest custody XXXX, XX% period billion XX, rising well continue steady our at bearing business Axos at are from a XXXX. June We rate bearing by our XX, a in in environment. XXXX. approximately March a
of banking XXXX, of charge, XX, three a months quarter was XXXX. for one-time the an XX.X% third XXXX. million fourth for efficiency the ratio bank quarter efficiency for of business third of primarily to Operating the Our $XX for XX.XX% for was quarter the XX.X% a the claim. ratio first quarter XXXX, fourth included for resolution X.XX% first expenses in the ended in contractual June the The compared segment
Excluding the year ago the quarter. share efficiency earnings at quarter been banking for would Diluted fourth charge, in X.X% ratio the XX.X%. were up $XX our have million from $X.XX, per $X.XX
We in X.XX% the continue leverage on requirements. capital. assets Capital levels and on regulatory of the holding the strong Tier return to generate with of strong of a equity XX.XX% returns quarter both X fourth XX.XX% of our and maintain remained above Bank while We company, return we a excess of X.X%. generated well
losses net XXXX, the quarter Our net our XX, versus this We added June for annualized to basis allowance loan X.XX% million times loans. million quarter our of strong, to XX X charge-offs and Total with ending remains charge-offs total average credit representing $XXX.X points of XX of basis at quality in the $X fiscal our support to points credit was loans loss loan fourth XXXX. growth. provision annualized
quarter $X.X million income, $X.X $X.X million and million of million. loan net $XX.X to ended consumer family unsecured by loan gain to single and of million origination production, family linked in $X.X production, million billion, from last decreased increase a to quarter due loan XXXX banking from of $X.X of year. resulting corresponding total estate the single-family the QX sale mortgage production, balances as quarter production, million corresponding for Our C&I originations approximately originations in in $X.X June XX, ago. follows; the fourth investment $X.X across of increase an were of while million multifamily in XX, of sale activity, year and approximately for quarter quarter Loan a ended on $XXX.X The production, XX% of We in single-family ago approximately loan $XXX.X of of declines refinancing March as originations $XX.X in XXXX, mortgage were billion the portfolio commercial on generated single million were agency $XX.X billion period. wide down billion C&I a year of $XXX $XXX million XX% the jumbo the production, ending were compared result agency million XXXX, $XXX.X real normalization auto industry. gain in industry margins
rapid Our foreseeable offset MSR XXXX. MSR increase this mortgage valuation the in valuation future, quarter, interest mortgage end of reduced by gains from demand in gain benefiting rates gain generated anticipate a a rates partially as further We sale lower rising the mortgage at $X.X million refinancing. on banking, for
were family of growth the agency as net single XXXX. jumbo of X, market. strongest of in $XX $XXX We the production in jumbo was million August June Ending $X.X our mortgage-securitization months in the in million $XXX.X XXXX million in increased loan three balances XX, single-family $XXX.X pipeline quarter. loan in XXXX, years. jumbo of from quarter ended prior fourth three quarterly million the we've business past in single-family million dislocation our Prepayments to had from where billion, down loan mortgages SFR by business of were the benefiting Our generated prepayments they down $XXX mortgage the
competitors our jumbo headwinds rates for execution. record interest remain positioned economic our given better and are of we refi of operations uncertainty our and established rising most efficient While transactions, purchase and track than
was Based continued this C&I tremendous anticipate and decline $XXX the as few strong modest in prepayments, expectations in jumbo growth in for originations construction asset-backed family million $X.X our Our August loan and jumbo single-family X, lending. quarter. mortgage [indiscernible] Loan lending next billion, across another had pipeline XXXX. lending quarters. were growth our pipeline reflecting approximately balances single on of we
knowledge Demand and across XXXX. remains with and of and and in of Our structuring types of strong expansion production resulted loan have a track that as strong million $XXX record loan August balances. in relationships approximately steady backlog execution geographies X,
C&I able our loan ending net positive to balances, while strong X.X% in maintaining yields. Auto momentum $XX with lending multiple be good quarter. remain and growth and increasing balances or we We sustain that million confident loan credit lending quarter verticals a we'll across by have had linked
returns both rate are in with used risk-adjusted auto indirect We prime good getting channels. a and on vehicles focusing mix business, strong borrowers and our of lending
Our auto at in growth our profitability our securities X, $XXX.X the pipeline ongoing business offset loan million XXXX. August partially investments in Strong business. at by banking underlying was and was bank approximately
and XX% and XX% was months ratio XX, efficiency for banking ended XX June XXXX. three the Our
for resolved and charge one-time a included general derivative based a an included that acquisition XXXX present other remain employee. was and payment The quarter charge made million, the purchased by expense with the warranty of for aggregate indemnification unrelated that employment collection accruals insurance policy an in million this was million expense provision. and administrative settlement claim that as quarter. resolution claim $X.X The non-interest those accrual related the acquisition. be contractual of contractual million obligation of was part connection earlier, $X.X in but former of noted in fourth proceeds initiated an $X.X legal $X.X under Representation The uncertain. litigation upon any a $X.X As million. fully underlying with to $XX and of The policy for this claim limit the finally of might million under non-final made an
savings grow. across a cost series operational business result will have efficiencies we of as units We in that
clearing million XX, months in $X.X million have Axos fourth and efficiency income banking and $XX on from unit the includes expenses quarter of businesses amortization charges, ratio improvement June our and XX legal and in would a of which XX.XX% trading XXXX, loss the generated respectively. three XX.XX% in ended the custody, the and quarter. self-directed our excluding business Excluding prior discrete Securities, $X.X managed of contractual an been XXXX, million portfolio non-cash of securities pre-tax the
and business rising a the a in decline result partially benefit in starting to are of from fees Our as stock by rates, overall market declines securities offset custody activity. clearing
for Additionally, to our cost billion the and income fee our will believe business expenses relative tech and to across new deposits. XX% upgrades Clearing savings of with comprised is points deposits growth accounts We size June basis consumer at savings total customer bank deposits grew represent average money market growth June core for and weighted incur trading, securities investments XXXX. appropriately quarter the securities future as months representing to and to and these points generate business incremental XXXX. broad-based related such to compared the our XX, continue basis deposit infrastructure we We checking, X.X% XX, Checking direct initiatives, demand and XXXX, Axos of costs XX three depositing XX linked system. a of from our The XXXX, Consumer service June deposits small months commercial by they for perspective. XX, savings XX% deposits growth the total ended are $XX.X accounts. March crypto and were of savings three ended XX,
continue no holdings Total custody of client deposits make are reaction deploying $X.X $XXX loan as deposits our products fee a increase income or XX, partner deposit billion was percentage Axos Bank's banks kept the of advisors by at billion deposits these relative progress earning Non-interest We to business to significant as activity. client market our to cross-selling We advantage to optionality sheet. of their $X.X balance million from to in stock XXXX, customers. cash on our clearing competitive to from bearing billion. increased sized. steady low quarter-over-quarter and approximately to a $X.X fund June lending other as banks assets Bank's growth, billion $X The cost elevated
growth Continued instrumental strong has margin to in bearing net target interest our ability for our growth loan non-interest a while maintaining fund deposits the above three our past in our been organic quarters. range
approximately the with of securities total rising deposit balances environment, and half than million our lending portfolios positions June securities and loan prior loans approximately were of less modest and lending loan was outstanding, XX, are securities XXXX, and multifamily represent the our X.X billion cycles. a years, much of for average of duration floating our our assets lower of well total XXXX. About book as $X.X than X% diverse and billion June they jumbo our portfolio rate XX, single-family outstanding of were businesses as $X.X $XXX as principal us XX% XX% upgrade in mortgage and Our rate of security portfolio
loans year were Note mortgages, the duration a With multifamily or and jumbo other, mortgages respectively respectively. approximately quarter. X.X of exception up on X.X weighted single three have X.XX% originated ended our X.XX%, and points points, in average of our XX on multifamily mortgages and in XXXX, no family portfolio single-family basis respectively loans balance loans X.XX% XX, prime multifamily prior XX sheet our the years, balance jumbo basis were rates C&I of and fixed-rate single-family The June small XX XX the jumbo jumbo basis on we sheet. months in from the points
raised for have rates newly loans overall contributor several over amount years. C&I jumbo growth our biggest and We single X.X loan our in the past remains loans July additional to originated multifamily demand in have and family been solid. the
outstanding. quarter XX, $X.X loans For billion quarter to half representing XXXX ended June the our million $XXX by loans linked nearly of C&I gross increased
other other originated loans of $XXX.X portfolio, approximately XXth, at those and repricing loans increase their of XX% sheet were loans adjustable equipment with pipeline points our of another single and and vast on next continued generate $XXX estate our fees our lower specialty are balance X, all continue following Axos will rates Demand mortgages, aggressive increase. in of variable XXXX, for our of slower multifamily C&I XX% loans our above We floors August C&I reflected our C&I banks mortgages loans as XX, asset rate family on additional rates floor yielding and sensitive as hybrid for June of XX or and yields billion of of approximately strong, believe the increase rate real remained with C&I commercial exception the floors billion basis increase the newly to floor. remains of with XXXX. levels of at rate multifamily the July prepayment single announced partner the higher our rise. majority With their of the will with and asset C&I finance effectively in although above Furthermore, loans be above At $X.X deposits rate. will their million C&I XX% reaching
be were enabled deposit deposits and servicing betas calendar half expect tightening of betas in deposits, prior due beyond, particularly centric deposit to the we diversity Fed for will our While meaningfully our customer granularity as to for cycles the XXXX deposit lower model. new they competition in increase tech back and rise of than
this points cash between of XX of the boosted XXXX, million quarter. average no that interest cash expect deposits clients reaction by IRA by deposit like benefits custodians volatility. bank held we deposits, approximately the ended held of to XX, access our cost One margin fund In use we the can X% strategic fluctuated under X% in The Historically, a of loan market typically key represent that to our of the more basis being is elevated quarter and custody. levels balances additional having Axos clients, zoning $XXX the difference to cost between X% advisory growth. June low had to in assets our cash the advisors balance net which advisory held in by X%
full Our quarter interest added as in margin by interest our X previously benefited income two from boosting net fourth non-recurring of received full. $X.X basis loans default non-performing, net off points. in on both interest. interest loans approximately were that from including net interest paid in two the XXXX approximately principal million income, interest These of also We combined were they loans categorized margin
aforementioned interest points X items, three in basis would net been XX, two months these the ended XXXX, June Excluding margin X.X have our up year-over-year.
impacting the net XX, X.X long-term above The be net relative will loan our advisory how of target June that June portfolio XXXX, and margin to are grows our is our our year-end margin fast X. our outlook our at interest where will biggest balances for remain to fiscal levels. interest XXXX, forward, factors or XX, deposit Looking Axos the
growth in an the incremental advisory or at nearly over assets healthy growth As grow XX%. this grow their we be With loans $X of If our continue to stated case fund above on is by a of transition the previously, mid-teens expectations. we that net net net annualized respect rate billion XXXX, our loan we that representing deposits, of then of fiscal will or loans loans grew to in cost quarter expectation in higher pipeline the to end new advisors, looking custody base rate our target, to will us. have mid-teens
change the commonly deposits cash accounts incremental by based custody which appetite of relative the cash. the advisor assets our held XX.X% and RIAs the to low dramatically we come advisory existing in as quickly, The sorting size clients risk significantly record they advisor's closed the RIA a described of to on amount low cash tightening However, reduced and for existing of the biggest their can of quarter, by billion manage this quarter of percentage acquisition $XX.X advisors' tolerance. example forward aggressive our end of of from Fed's cost under held Fast quarter, when will client the monetary to last end and this the source risk X.X% fluctuates of August, assets cash clients. increased at
net assumption and under hold baseline XXXX. clients continue X% the more averse of baseline advisory interest in be risk held our targets. higher will Our to cash our to a balance, is If by that clients of cash then fiscal margin higher assets become custody percentage full would normalized year than
year their of be interest cash percentage to higher cost and on full low-cost However, net would cash the those replace had sorting. relatively with if we then deposits, reduced clients margin our percentage deposits depending reduced
the our for Other quarter from about points comfortable even assets single-family losses. XX% Of loan and remains historically quality our our adverse mortgages for below of credit our our single-family quarter, of basis remained ratio low approximately an fourth and to of XX.X% XX Non-performing the current below to paid and of scenarios. base including XXXX. value. basis best to The nonperforming are asset low approximately first loans, XXXX XX% mortgages, extremely this and interest. us Our lending XX the non-performing March economic nonperforming largest had XX net quarter current low XXX% XX, quarter, ended this our our mortgages, total we in where credit principal we've in an default were property our makes are total interest, had the healthy, loan loans estimates was at sold points value estimated back end single-family very realized LTV charge-offs increase of outlook assets XX.X% of
Given in our the values last even low loans. that loan loan which percentage greater a is loss $X.X decline. $X portfolio originations with confident this the record we from and investments year-over-year. $X.X if quarter A of increase asset-backed was loan The loans, of by and losses, and remain provision values reflects will our our to up incur for asset provisions minimal up mix loan of and loss accounting we auto changes C&I primarily million million loan million, quarter a quarter for credit total
at XXXX. losses in million for annualized the XX, XX, XXXX, loans allowance loan months total of and times June total ended for charge-offs June our the Our total three $XXX.X approximately our XX approximately X.XX% net
$X.X confident multiple we $XXX loans. sale loans commercial balance loan billion achieving of mortgages, in mortgages, of we gain growth established consumer and multifamily on across our loans of loan crestal estate with unsecured auto million Investor of August loans and healthy and fiscal Our pipeline solid demand our $XXX million for approximately real for $XXX mid-teens are single XXXX, $XXX loans, C&I With Day million of categories, family of jumbo million the target of family loan at million XXXX. and small $XX in agency single pipeline consisting X, remains consolidated of
deals assets We Axos RIA broker due progress an income. grow profitability We the under with fee advisors ago. Securities balances adding by prior our fee from few clients custody dealer advisory improved on-boarded. some custody, $XXX all advantage increase the business, in assets team to primarily from our their to rolling we and take are see that custody move opportunities out Axos new business looking products integration services. quarter making this in year deposit business signed increase Advisory of approximately and and a services under advisory the to for income acquired opportunistically million or Stanley added five of of quarter services new We meaningful will the fully to members to this seasoned by and once sales custody quarter a We've team good new is which Morgan Overall they're
Our nimble ours. as and and pipeline a of for provides volatility clients growing healthy client-centric market and is custody organization opportunities such
Our holding Bank. capital to leverage remain X.XX% ratios company Axos strong of leverage Tier the XX.XX% of at asset with X and adjusted
in end liquidity at of of We borrowings of this Bank as had have excess access quarter. fourth the Home outstanding the we at billion end million to approximately Furthermore, X.X available Federal $X quarter. the billion had we of window of the X.X $XXX Loan and discount of billion Fed
we unchanged our and remain excess our on loan priorities businesses organic existing accretive in invest to a capital capital M&A. buybacks for capital opportunistic growth, deploying emerging Our and with and focus using our support
and in compared securities acquisition. due of had to the year with from equity Services a Broker markets. client income decline quarter Axos fees the Advisory fourth corresponding fee overall deposit dealer Our balances to custody income XXX% quarter increased addition higher the clearing fee the and to business last due an period lower solid in
from increased relationships assets $XXX $XX under of billion income and administration, custody in RIA of of billion one-time quarter. fourth borrowed activity quarter from the ending an business XXXX with Fed including administration expenses at ended Total to $X.X stock The Axos relatively rate clearing by June $X.X clearing assets million and $XX sweep income $XXX margin increase generated Revenue and resulting approximately FDI pre-tax balances. Clearing dollars and flat billion multiple growing dealer XXXX. the XXXX, in end of fee custody hikes, suite million quarter XX cost, of in $X.X X.XX was non-cash income Excluding the million. from for increase depreciation under XX, merger-related assets of this under an million was primarily and amortization March, a at being ended Axos $XX driven to broker by decline the balances with Clearing and offset of IDB fee
infrastructure progress We Axos effort continue to in make our Clearing streamline services. at and advisory good and to ongoing operations the
have processes automated certain and redundant manual eliminated internal and We reconciliations workflows. other
run we is As cost May, Day multiyear serve modern platform meaningful diversity with the that efficiency solid expect our and Axos allow we with discussed any implementation a gross at increase the incremental that testament one-time introduce started able specific stage. the Investor and are and flexibility not model to Clearing occur on reduce the operating will stages our our in transitioning a to rate The of This in the and fintechs one new expenses by to development execution products in to will costs, The and SaaS-based we associated our rollout today. consistency several in and our last are the profitability today. and serve and team. associated do to effectively costs features any as margins us quarter not transition quickly
track long and of competition business per value our change book a partnerships while and increasing rates earnings in mix, managing share. have We record interest through
dealer growth growth our gain growth banking, in support net Our thus continued broker interest and mortgage strong income while and in offset declines loan on net sale revenue. fee margin
invest payments will from core continue commercial to and modern crypto competitive more will trading, as retail real-time initiatives While a us bank make in a such challenges, those our the we product scale frac uncertain digital clearing universal X.X in that technology environment cost short-term perspective. presents
strong to strong excess translate that nimble, focused over dislocations. into time. remain shareholders advantage returns market excess our Our will generating organic ability profitability We positions be well capital growth us of for to and on take
Now I'll turn who Derrick, the additional on call will financial detail results. over our to provide
