us. you interest welcome XX, XXXX to quarter I'd good XXXX. for of December afternoon, everyone, fiscal to in Axos Thank I the thank everyone call and for and thank Financial. your you, joining second you Axos for Johnny, Financial's ended conference like
double-digit to loan and in share. billion. generating X.X% growth We interest were book and per balances $XX.X quarter, quarter X.X% year-over-year net year-over-year Ending value income results up this delivered solid linked
ended by evidenced average high X.X% returns assets equity to and on continue the XX, as return common months on XX% We generate December X XXXX. return the in
XX% tangible in our returns strong value contributed share. to a Our per year-over-year growth book
XX $XXX for December XX, XX.X% the benefit X million prior ended Net in period, XXXX, quarter early quarter from in $X the the quarter. million X the X.XX% margin excluding FDIC-purchased the income interest approximately $XXX.X ended ended income the was up payoffs the first quarter from net was interest the XXXX, XX, was Net up X.XX% XX, in from loans X.XX% million interest ended in basis September XXXX. quarter down and fiscal from of up the of linked December XX, XXXX, for December points XXXX, months
from in Net interest of payoff from of the X purchased XXXX the we the loans FDIC. first quarter margin benefited
X the payoff X.XX%. X XXXX, ended of the September Excluding the purchased from in impact interest net XX, months early the loans margin was
Total X.X% year-over-year million. sheet increased deposits on-balance to $XX.X
XX, quarter. 'XX.
Net of basis The fiscal second loans in were annualized the December charge-offs from average in XX% X.X% XX efficiency X XXXX. by was down the the Securities our deposit Our and quarter diverse well We this for ended noninterest Total operating across our organic granular quarter. our expenses growth. XX, and loan Commercial were continues and business to Banking managed expenses December XXXX, Consumer for the prior segment business quarter ended support as months the to banking ratio points
low historic current credit to net loans in average and the points X loans to We our reserved remain by basis of second quarter covered annualized Excluding net well relative charge-offs were auto losses. insurance, the XXXX.
in a income to approximately XX, year the period Net in compared $XXX the ago. million was million XXXX, ended December quarter $XXX.X corresponding
earnings per $X.XX in the EPS and were December per net adjusted Non-GAAP the the for $X.XX. months and income from gain Excluding the $XX.X share loan adjusted prior X period, was million the purchase XX, adjusted FDIC share, ended year XXXX, respectively.
December nonpurchased million loan the warehouse for our investment in ended $X.X and this offset X single-family declines months balances The $XXX loans multifamily in single-family growth growth were by C&I hybrid strong were XXXX. billion mortgages loan balances our loan of in $XXX XX, jumbo mortgage and X/X Net quarter. in and for originations of ARM, million
million believe million this the recent that from due significant single-family in and exits, selective headwinds rate competitive to we that curve. reductions growth risen the some We mortgages, in systems can prior loan reduce $XXX the has given to these pipeline quarter quarter jumbo $XXX from yield to
slightly in over the the to isn't this valuations the against flat ARMs potential and as it last quarter hybrid seeing multifamily working the We be given as been that curve years actively rational several up in more this also have we're our has market. we product to believe yield
from from the of XXXX, a our was fund year finance, and balances purchase Average for at strong were loan ago. were X.XX% and corresponding year prior up representing yields for since the yields for sequential price Ending of purchased discount. first quarter. this auto equipment accretion months in XX, loans portfolio quarter quarter the Lender XX.XX%, loan X.XX% in growth which finance loan XX loans average leasing period XX, up slightly had and X the X.XX%, originations fiscal down XXXX. first yields the Average December and net increase nonpurchased ended XXXX, includes the were loan December basis our points
first XX XXXX loan The basis prepayment loans points. quarter FDIC-acquired yield increased average the by of X
loans perform September current. remain continue the loan sequentially and prepayments FDIC-purchased quarter, in average the all down due Excluding mix. were portfolio loan yields that primarily loans to FDIC remaining in XXXX to The
were multifamily total XXXX, Demand, Ending X.X% flat deposit C&I representing loan rates X.X%, of at accounts year-over-year. roughly balances $XX.X following: quarter Single-family were the December X.X%, mortgage New and increased billion X.X%, auto by money interest savings up XX% linked and deposits interest X.X%. of XX, market XX.X% -- year-over-year.
representing representing consumer X%, deposits, and verticals business XX%, XX% small and custody have We business services total of representing with institutions funding specialty a X%. fiduciary Securities, which Axos TM across mix of a commercial and clearing, Axos our X% representing diverse and of representing is variety commercial
deposits has X%. to the noninterest-bearing $X ending quarter. balance the $XX stabilized end at including near bottom, approximately the Axos up at end balances cash Client prior of X% of Advisory were the X% quarter. to million historic custody to sheet Services, the Axos' compared off sorting at/or at deposit were compared billion range and Total approximately under representing assets those on the of approximately quarter of the Total
new our balances. cash focused are net grow assets We from under adding custody and assets and advisers to on new existing
our approximately partner had off deposits to balance million $XXX In we addition at balance deposits sheet our Axos of on banks. sheet, security
September We purchase been For interest the XXXX, the consolidated the boost net in have XXXX excluding point readers was loans X.XX% early, margin exhibit and net out the on XX September provided as basis schedules to balances our interest of nonpurchased interest XX, XX, loans compared the December ended quarter our average net the XXXX, would the X.XX% yields quarter and quarter. loan purchase FDIC-purchased that an off separate consolidated margin. ended to for X.XX% the from our paid to for the press XX, for supplemental margin break impact the on loan release
XX excess XXXX. ended to the quarter on liquidity, December continue drag point an interest in which had our hold XX, We basis margin net
above and target securities the because granularity remains the high net interest FDIC-purchased from commercial loans, our benefit funding without diversity of and the of our consumer the margin end businesses. and banking, our with Our largely of across banking
XX, ended costs down Total December for XXXX, X.XX% were quarter. quarter points basis interest-bearing the deposit prior from the XX
consumer and on-balance We maintaining have sheet higher-cost been wholesale our deposits reprice roughly able flat. deposits to while
continue deposit grow to business. and well businesses our lower specialty We deposits management as treasury our and commercial cost our as in noninterest-bearing cash
also progress businesses lending finance. cross-selling selected are fund good We making as such across deposits
million Cash to at XX, custody $XXX were XX, sweeps compared in our million XXXX, at December September XXXX. business $XXX
a asset in lower new strong sorting going tailwind in forward. be cash Continued will net a to grow our normalization deposit balances and ability cost growth
the deposit range on ex targeted $X.XX past certain we selectively stay deals. loan end cost competition have consolidated adjusted or categories competitive we deposits from by higher the net our have purchases interest and for slightly over FDIC in successfully pricing our expect margin and lending have the by adjust be where repricing appropriate to $X.XX We We been to exceed at year. high high-quality and pricing nonbanks future see actions banks based we more to and competitors. more Fed the continue to will
past steeper loan yield loan single-family have have products result curve meaningfully in and business term actions months and single-family more hybrid Our the few also over a as of multifamily makes we A improved our multifamily viable. taken. our strategic lending economically mortgage pipelines
our on about level $XXX to attrition the may single-family term per will pipeline hybrid believe meaningful a subside. and our take balance we impact which a our around it for While million of to loans sheet been have quarter, $XXX quarters have loans, the in in net multifamily million growth, few
our continues real nonreforming where in quarter. solid in mortgage our been XX%. of assets the to circumstances September our loan-to-value majority our increase credit this loan quality by Nonperforming Nonperforming book additional are The from weighted uptick are not properties jumbo any of LTVs be low. and with despite assets single-family loss. historical losses attributed led assets a the conservative where an mortgages The few increased approximately quarter linked by area in that have to a due in X $XX.X X we nonperforming incur December. increased to our we'll idiosyncratic in The estate-backed book was believe assets million multifamily million of do $XX.X to loan average to assets
because allow $XX.X have in making loan maturity Nonperforming loan curtailments real to and was sale assets are while full and for to million, extension be at of a October our due million to an estate XXXX, $XX the a downgraded increased above principal loan recourse property primarily The maturity in that Brooklyn. loan our net in by guarantors sold. book commercial significant property amount. The worth marketing the liquidity of
money the not the value we're the property on of that guarantors. of and given any confident are We loan, the this losing strength
material single-family, did currently or multifamily in commercial portfolio. We not our from loans loss classified nonperforming real as loan a estate anticipate
continues and real contractual continue and December Our estate specialty XX, interest but to classified contractual a C&I as million $X.X portfolio expectations. nonaccrual at payments. loans commercial principal loan All very well line make to curtailment in perform one, XXXX, with
This our underlying million, loan lender downgraded C&I Nonperforming of the $XX.X with million. assets. in principal credit $XX.X non-real in syndicated deterioration due lending unpaid primarily balance increased was an by some X portfolio due assets to loan estate to syndicated finance approximately
However, XX% borrowing the to XXXX, base. been paid around facility is current, borrower the the since collateral balances by June and pledge the XX, balances down principal have within
the of fires handful affected our areas families in We're lost others We've the wildfires with the Los of and and the since information borrowers in of area. their for none so complete damage. are homes. residential tragic the employees Based with by engaging that saddened properties on single-family the a we've losses communities initially have properties Thankfully, less suffered that actively far, Greater Angeles been gathered started. impacted
low loan balances of for LTVs our Given the insurance is of the we have believe on cover mortgages, borrowers single-family the residential maintained majority by that outstanding adequate that to properties. we coverage most the
adequate For shortfalls. umbrella coverage fully the insurance believe does potential loan is that have those from the to where loans Lloyds amount, our insurance cover not we we cover
Malibu of value in of and the in many from insurance be may Additionally, which the value particularly coverage, the Pasadena. cases, exceeds property excluded the those land,
how assess can in properties While areas and we and the help willing affected it's to are the rebuild to communities we're these in early to revitalization by neighborhoods. loans the providing these homeowners too quickly ready commence, effort building
clearing Of billion $XXX the million $X.X million RIA corresponding Axos at were approximately sheet September banks. up of margin on to good million the a balances prior $XXX had partner business of billion from our held $XXX and quarter. the in Axos the XX Clearing, end Clearing our quarter. million of quarter, and Clearing, at which from from grew up $XXX.X deposit Client million end at deposits XX.X%, Axos were balance by at quarter. the custody $X.XX Total includes were $XXX the
increased up from quarter our custody momentum the to business approximately Securities in few December outpacing $XXX by quarter. experienced runoff This the new have with of new lending quarter, XX% $XXX million assets. million. the assets were quarters asset linked is September $XXX legacy adviser Net million from assets the net certain the a in over continuation past new positive we in
and new team pipeline Advisory growth in remains for net we planning continues service have traction expect RIA asset new to our the well. The AAS. The Axos client-centric, where the model segment continued resonates sales asset clients financial custody healthy, of noncompetitive in space organic
to services as income assets. incremental to ways to partner From generate access additional a third fee identify offer continue parties alternative with and product we perspective, to such
clearing process to are We more service certain our to in and broker-dealer back-office custody efficiently business clients. we realigning advisory systems servicing and and functions have leverage the
reduced Improvements in advisers. Advisory services our the onboard onboarding process time new required have for Axos to
more started to businesses. fewer reduced more low-code broadly if securities time projects have have development we and would making cash launch economic We businesses cases offset we long from to on also us taken are artificial complete sustained in medium offshore and term. our use intelligence benefits productivity bank and than more for growth, that of initiatives believe normalization implemented has balances projects a asset will the to at in the efficiency. takes clearing We're leverage it This working in actively the it traditional we enhance new practices that software used approach. to at the amount to net operational the investments with We have resources than a and custody
hires to and loan The deposit various growth. across have are deposit and we businesses commercial made contributing lending team
with deposit Our commercial cash hires. this management teams teams existing and contributions new treasury coming from growth the quarter our and in generated
We we in incubator continue can to various deposit scale explore lending and different verticals. our ways businesses
features, others gain and better, while additional Some products client quickly segmentation. require traction more more and marketing targeted can through
While XXXX year. teams adding teams, added we new our the remain calendar have on focus past scaling selective the in over is we in
new private space the credit and partners of rapid the We in dialogue existing growth leverage ecosystem. to with have that active
of across to a collaborate on an looking asset track us funds number working proven deals complex classes. partner deploy for growing record willingness with Our depository and to makes of ideal institutions capital nonbank
opportunities fee deposit, about to lending we excited each and have grow businesses. of I'm the income our
continue growing in strong amount to We and development, have technology of members. a new product and and team investing capabilities capital excess our
business remain loan of meaningful our a opportunistic and and are number increase repurchases opportunities. inorganic capital, acquisition share growth of organic seeing While preferred in the we asset use
today to from Additional come we opportunities and increase a nonbank an number million us position to market. shelf to capitalize further in The announced perspective is at-the-market clarity economic could favorable of that a $XXX step and put the bank regulatory proactive capital given acquisition not of sight and the capital on that strategic to have raise potentially unless clear capital accretive additional capital. we do opportunities intend may significant require a additional would require line today. we any excess an that We into have
whether the We to of diversified values generate valuation of and acquire. conservative with structures of to growth loan type remain disciplined and prudent in in funding businesses we consummating lending are mix successful our profitable philosophy and we for acquisition, shareholders. and an lending Regardless our continue will asset-based
to results. Derrick, Now additional call over I'll our turn who financial the on provide will details
