Axos Financial reported broad-based net loan growth of $1.6 billion linked quarter, driven by asset-based lending, commercial specialty and equity finance verticals. Net income rose to approximately $128.4 million from $104.7 million a year earlier, while diluted earnings per share increased to $2.22 from $1.80. The firm achieved a 17.2% return on average common equity and a 1.8% return on assets for the quarter ended December 31, 2025, underscoring strong profitability across its diversified loan portfolio.

Net interest income grew by $41 million (14%) from the prior quarter, buoyed by expansion in single-family mortgage warehouse, commercial specialty real estate, equipment finance and fund finance. Excluding a one-time prepaid FDIC loan benefit, net interest income rose by $23 million (8%) quarter-on-quarter. Reported net interest margin reached 4.94%, up 19 basis points from 4.75%; adjusted for FDIC prepayment and Verdant securitization impacts, margin held roughly flat at 4.72%. Management expects future FDIC loan payoffs and maturities to contribute an additional 10–15 basis points of NIM accretion over coming quarters.

Non-interest income increased by $21 million linked quarter, reflecting higher banking service fees, broker-dealer fees and prepayment penalties. The Verdant Commercial Capital platform, acquired earlier in the year, contributed $18.9 million of non-interest income and $24.3 million of interest income from loans and leases, along with $14.1 million from operating leases. Consolidated non-interest income totaled $53.4 million, up 65% from $32.3 million in the prior quarter, positioning the firm for continued fee-based revenue growth as Verdant integration progresses.

Axos ended the quarter with $23.2 billion of deposits, up 44.3% linked quarter and 16.5% year-over-year, with demand, money market and savings accounts comprising 96% of the total. Non-interest-bearing deposits grew to $3.5 billion. Credit metrics improved: non-accrual loans fell to 61 basis points of total loans (from 74 basis points), non-performing assets declined to 56 basis points of assets (from 64 basis points) and net charge-offs were 4 basis points of assets. The allowance for credit losses equaled 215.8% of non-accrual loans. The loan pipeline stood at $2.2 billion at January 23, 2026, including $598 million of jumbo mortgages, $200 million of multifamily and small-balance commercial, $82 million of auto and consumer and $1.2 billion of commercial loans.