XXXX XX, Financial. joining I I'd to Financial's the your Axos Thank for of second for you, everyone, everyone Axos ended welcome in XXXX. Johnny. like conference to you December afternoon, you thank fiscal us. Good thank interest and call for quarter
loan expansion, and book share interest and margin results, income year-over-year deposit earnings coupled organic linked per outstanding growth further annualized. ending balances sixth with resulted growth, Strong consecutive value growth net in in loan delivered interest generating year-over-year quarter a for net We growth per quarter. and double-digit share, double-digit
the December million year-over-year million of linked net XXXX, share ended X-months $XXX income approximately by deposits for quarter. XX% of respectively. reported $XXX representing per XX, earnings $X.XX and grew We XX%, We and growth of
provision to Excluding FDIC ]. increased year-over-year $X.XX our associated with the share non-GAAP and by gain earnings adjusted purchase, [ XX.X% per onetime loan loss the
tangible share December December XX% XX, was per book Our XXXX, value up at XX, $XX.XX XXXX. from
Other highlights for were include discount Ending X% balance $XX.X linked of following: this quarter billion, up quarter annualized. XX% for loans the or net investment
for million Excluding the XX% FDIC annualized. held loan quarter $XXX linked ending purchase investment by or loans nonpurchased increased
fund single-family lender auto origination with Growth leasing was higher of and real estate offsetting commercial payoffs a estate specialty equipment deliberate non-real runoff estate broad-based finance, volumes lower book. and our growth and finance, in in real warehouse and in
quarter Net September the X.XX% first basis XXXX. XXXX up interest ended was XX, X points ended XX, December and margin quarter the ended December basis in in X.XX% from from XX points X.XX% up XXXX, quarter for XX, the
the Excluding loan purchase, consolidated XXXX. FDIC quarter X.XX% December was XX, margin the our in net interest benefit ended from the
strong had our to income. fee our comprised interest primarily custody and Securities, of and another businesses, Axos clearing contribution
to year-over-year $XX.X due pretax Quarterly under XXXX. increased Advisory increased for rates higher second Income year-over-year fee due Securities income higher client increased Broker-dealer business our X.X% assets of in custody. fee fees interest fund XX.X% income average higher mutual was quarter the and and to activity. million
accounted loans loans from for income. basis are of this in X the auto The fee ended majority insurance the strong, quarter X remains December XXXX. basis annualized of as net points XX, from X-months quality charge-offs by credit insurance those that with with were covered Our charge-offs net policies, average to proceeds points for of policies
We in billion commercial loss the million quarter performing recognized at combined a of purchase the multifamily unpaid par million principal pools $XX with a FDIC purchase of estate $X.XX balance gain loan value. on for and loan the increased allowance the and our X $XX December completed approximately ended XXXX. by We real XX% after-tax from of XX,
We interest regarding after-tax and believe several over provide this purchase next I'll more the on detail provide call. this income years. will income incremental transaction loan the net opportunistic later
Our capital levels bank at remain regulatory X the well holding and XX.X% of strong, at ratio X.X% requirements. with Tier the our both company, leverage above
quarter, the unwarranted our of the per This of stock We in million repurchased prior repurchased advantage XXXX million $XX price. repurchases share in an total price quarter, $XX outstanding addition representing the our to million approximately brings to to of share, $XX.XX in we in decline as common in the XX the take XX/XX/XXXX. year second share fiscal share of shares X.X% at average of
and organic finance, strong our commercial lender businesses. and had non-real equipment industrial fund loan originations finance estate in group, lending finance We
continue the small-balance estate, current with retaining and loans reduce preference environment. in risk-adjusted commercial We to duration, and given consumer loan rate floating balances, real better and our originating for return auto our lower a
XX, corresponding for ] the discount. December was basis year average And yields X.XX%. includes ago. yields of quarter points, loans were ended nonpurchased the a X.XX% basis XXX loans period loan XXXX XX.XX%, XX from which [ our for loan points up Average months the Average up purchase from the X for prior accretion in purchased were X.XX%, and yields
spreads as or exited. in see competitors We our some categories wider of have pulled lending back continue to
auto, single-family following: and C&I, X.X% the mortgages, were X.X%; yields multifamily, XX.X%. X.X%; loan New
in Our in The underlying provide or repay estate significant us valuation properties our real commercial the borrower's loans the overwhelming our willingness real continue of of project specialty significant ability senior an low to with to majority loan-to-value of place structures in downside for loans a commercial have estate deterioration we or delays. the well. protection and event perform
billion December represent estate of hotel, and specialty real XX, office estate outstanding and specialty XXXX, largest was real segment, while $X X% at commercial retail multifamily the of loans, the the loans X%, Of commercial XX%, XX% total representing respectively.
portfolio was specialty XX%. estate weighted basis, consolidated real value the our to a of On average loan commercial
LTV weighted segment retail real and commercial and is our specialty XX%, respectively. the For office book, of XX% estate average the
with CRESL secured at properties properties office A secured by the some linked million the or cross-collateralization sponsors Of quarter end declined of recourse all and mezzanine to by are with significant office These million. have or $XX million collateralization. structures, by average partners loan-to-value across notes, funds to other or lenders. $XXX Total quarter, CRESL fund note-on-note an XX% with XX%, the types any loans $XXX loans having subordination, from asset excluding of loans recourse
of approximately material in Nonperforming loss $XX these estate outstanding. XXXX, at XXXX incurring identical loans the December in We balances, points portfolio do total commercial of CRE ending a September specialty loans. were our loans basis either to anticipate million representing our not X XX, XX, real
multifamily The mortgage our approximately and down by in multifamily loans loan-to-value our mortgages nonperforming the portfolio from approximately Nonperforming XXXX balance. XXXX, December $XX XX, and September is XX%. of average million commercial commercial were million at $X.X
at loans incur Although we material the expect nonperforming. not loss categorized we any cannot of asset-backed to a be as currently certain, do
the loan increased and was Nonperforming single-family of listed mortgages September $X.XX value. a $XX.X this delinquent. $XX to for average X, XX% XX.X%.
On $XXX at as that the X par loan delinquent billion property $XX.X ] XX%, rent. $XX million ] XX, we loan UPB from primarily at The result the recognized purchase The of December other value $XX.X and loan-to-value gain, XXXX. of discount, at of approximately quarter discount the single-family million FDIC for completed part December mortgages loss. from a with XXXX, is recorded of loan [ to we million sale purchase an [ was of increase a became approximately pretax Of that has million bargain pools XX, for The XXXX to updated million as million property becoming
As will assuming accrete discount the allocated at is over approximately pool loss, life these Axos into result, below any the the income. $XXX in million a amount loan the of loan loss loans in or of
estate The of approximately loan average of with and weighted rate paying and comprised million XX months are million XXX loan-to-value of loan-to-value loans fixed $XXX term average a real of an remaining and XX X.X%. of multifamily a XX% months. payments, on of with $XXX borrower a a loans, of a term pools are and XX% of weighted principal average interest remaining All loans current with commercial
As received of provided supplement. Axos additional X.X% in cash purchase, our rate details variable approximately We to receive loan regarding the a earnings part of note that series swaps rate interest discount. a allow without back-to-back purchase we of the FDIC
We out XX rate and and in broke the of our loans also purchased Page the on non-purchased volume XX XX-Q. table
annualized. expect how the investors This accretive net additional end next think transaction is impact perspective net I'll remain margin margin interest a we to about that the XX.X% of balances at over my several and the XXXX, provide regarding an net billion Checking at details extremely years. income of of interest from representing deposit even quarter XX% accounts from June savings increasing grew growth, annualized. comments.
We ending total prepared $X faster XX, or another had with at and deposits XX/XX/XXXX, by XX% strong
in remain Securities, well custody deposits from cash, Axos teams, Fiduciary relatively our growth. Cash is meaningfully are deposits were X%.
Total Fiduciary perspective, of Axos commercial business to sequential representing deposits. consumer our deposit noninterest-bearing with TM business contribute million Service billion, including balances. institutional and quarter-over-quarter. Our diversified representing representing $XXX new deposits finance, which noninterest-bearing $XXX representing sheet, mix X%, commercial and by and commercial commercial in sweep deposits, also and XX% representing Services fund $X.X offset total small increase seeing deposit specialty balance fell XX%, by flat X% The approximately noninterest-bearing upticks We're a approximately deposit Axos starting million, clearing our on to
our the securities granularity asset sensitive, of of Our sheet commercial remains the balance and consumer, shorter variable and loans deposits. duration, rate diversity given and our
X.XX%. net interest X.XX%, XX, quarter the business XXXX, December margin was was ended consolidated while margin our banking interest our net For
reflecting accretion margin X% and cash rally. December FDIC stock bottom, XXXX, of We adviser at custody to X.XX% assets declined consolidated Advisory sorting X% balance our assets normalization on deposit or into Advisory of Axos' liquidity.
Total has investing balances pace the as cash net Axos excess X.XX%, margin near consolidated some believe $XXX Our an of by in at XX, purchase quarter, to X%. of to net our the in under strong business compared reaction organic the Services banking loan at well range risk and representing ending Axos sheet, stabilized by from including those of to million historic prior guidance growth, and the the year-end that Axos and interest market off interest loan Services, above aided remained
$XXX our of on approximately we balance by to balance banks partnered accounting addition million and vertical. in clients off C&F sheet, Axos our held banks $XXX deposits and In deposits at other had [ ] million of software another deposits our management Securities with business sheet
to interest the loan augmented be net margin our by FDIC expect We purchase.
will loans duration Given that a prepays a substantially below duration pay rate relatively relatively long fixed any. market these low rates, borrowers be and we will low, that have current if the expect --
Our our X.XX baseline acquired sell targets margin assumptions, of X.XX those not we above approximately of none XX will to X net for prior and assumption prior loans to loans our acquired the points next is prepay maturity.
Under the interest quarters. by XX expect that we consolidated X increase our that basis consolidated do any to to
question assuming the by As sensitivity new will of a prepays, to margin purchase loans to due event million $XXX recognition loans over funds more quarter, or interest several growth one decline interest single-digit our high worth loan remaining our of we gradually loans further price low-teens time. the the net margin to will for considering. event In are the the enhanced of Fed decline, immediate $XXX dynamics the net the margin boost respect purchased grow discount.
With net that in million interest be target, to net per
ARMs calendar the year, with and XX% $X.X hybrid loans, were and reprice our beyond. of in remaining repricing in in First, will XXXX, XX% which of will in approximately reprice XX% X December XX% XXXX representing one as reprice XX% XX, billion, of will years XXXX,
the approximately multifamily rates $X.X rates.
The starts hybrid repricing lower X.XX%, ARMs XXXX, of XX% adjust XX% X- approximately interest in hybrid and reduced in hybrid rate to remaining The in XXXX XXXX offset on if Fed to hybrid adjust XX% fixed loans. of and rate some single-family the billion in calendar provide primarily X-year consist XXXX, these price floating X-year loans and beyond. yielding will and XX% calendar to loans multifamily calendar reduce when loans, Of the of index adjustable
calendar $X XXXX, our approximately approximately X.XX%, XXXX, in in yielding billion calendar of index remaining single-family rate. and were approximately below X% and ARMs XX% the beyond.
At in XX% calendar well the that we loans work strong to were the loans, hybrid will XXXX these index in adjust respect adjust in current reprice Of and the and to XX% are loans, adjust fixed. floors but XX% X% floors of are -- With of loans floating our XX% our hard are XX/XX/XXXX, XXXX, XX XX% generally rate, floating have index
in Therefore, pay repricing rate on to offset reduction a than be the the floating the margin rate other will in reductions of rate loans, deposits. loans, we hybrid
Although rates sensitized total difficult fund to we of predict XX% funds, deposits it quickly are Fed to rate approximately can tied deposit goes is adjust should they our how Fed when or the lower and quickly. down,
the Given than of and depending ability depositors are our that nonmaturity have the on rates. XX% to sensitivity deposits competition, of rates, deposit lower loan to more consumer those deposits, our we growth reduced
are functional will systems front- to existing launching of in the a banking this that latest for been A on business consumer and optimize and systems, banking our move in We the fiscal customers working new security IT small before Universal version transition platform applications system we X.X, completed business occurring our current back-end a of has and mobile Bank legacy Digital that to and September, other business small continue transitioning infrastructure units.
After for year. customers, our most and and software enterprise end UDB. with further our from invest
This made and SDB our ] make have leverage transition in and will investments UDB [ offering we modern user-friendly. more platform the
solution continue provide a of of beta custody with next clients and banking few We Our white-label the clearing to our in high-net launch our believe ability hundreds the make RIAs banking be to expected foreign worth to and turnkey thousands business fee the differentiator new add months. tremendous management to for clients opportunity and to to progress, our will the experience a of in products modernize of from management IBDs market other vertical. grow a Zenith business vertical, investing perspective.
In cross-sell service and and software. and efficiency deposit We business features share user to we the the long-term are income, banking see the
Axos Clearing, year-over-year securities X% to balance steady higher income primary partner and make in which driver of deposits The is $XX business, the progress. ]. banks. from partially the custody from to offset includes interest our average continues fee increased of Axos our Noninterest Securities income held by growth at corresponding rates, [ clearing business million lower
advisers December from quarter. $X.X and on assets Total deposits in in Of our of custody billion We assets XX custody. of business increased at XXXX, by billion million $XXX approximately $X.X $XXX at held down Axos comprised were million with $X.X billion the pipeline banks.
Net was $X.X in Clearing clients onboarded the XX. new firms, sheet our at X-months were Axos the $XX advisory from under December XXX custody combined for approximately billion XX, prior quarter. deposits new balance Clearing, approximately healthy, of The billion ending this new with remains partner
dislocation tremendous good made year.
We nonbank to improve corporate line our see to across front, opportunities and and refreshed individuals have systems the towards to functional the the a product securities-based bank business created our We competitors end add progress among portal client and of and on efficiencies market for restructuring launching businesses clients RIA credit units. of The a once-in-a-decade and and talented and access. opportunity operational have existing teams grow
securities to of the have over commercial deposit, Many and help road on recruiting map.
With growth, we boost actively initiatives our X-months accelerate margin liquidity lead purchase our several our business de given loan growth excess and across verticals operational we portfolio, a solid long-term in businesses, small investment banking on focused and contributed the from capital, in past and meaningfully lending loss additions diverse prospects, to a and already have minimis strong we're competitors. securities and widening organic are nature strategic various and relative our earnings of to and our the our the our multiyear unrealized made -- FDIC build
low structure returns, leverage because deals on Our we lending focus are margins with returns enhancements. best credit the we and best-in-class risk-adjusted credit and and with asset-based opportunities
We points record economic banking pivotal repositioning cycle. turning during have during a and the ourselves track proven of
returns are attractive We making our business are processes investments confident people shareholders. generate future the and we systems, for will our in
Now I'll our [ over turn provide who the details Derrick, additional will financial performance ]. to call on
