Axos Financial reported net income of $128.4 million for the quarter ended December 31, 2025, representing a 22.6% increase from $104.7 million a year earlier. Diluted EPS rose 23.3% to $2.22, exceeding the prior-year EPS of $1.80. Adjusted non-GAAP EPS improved 23.6% to $2.25, driven primarily by an 18.4% year-over-year increase in net interest income to $331.7 million.

Net ending loan balances climbed by $1.6 billion linked quarter to $24.3 billion, buoyed by robust growth in commercial real estate specialty, capital call, single-family warehouse and equipment leasing portfolios. Net interest margin held near flat at 4.94%, compared with 4.83% in the year-ago period, after excluding effects from a prepayment on FDIC-purchased loans and Verdant securitizations.

Non-interest income surged 92.0% to $53.4 million, including $18.9 million in operating lease rental and other Verdant-related income. Non-interest expenses of $184.6 million included $14.8 million of non-cash depreciation and $11 million of Verdant-related charges; excluding these items, expenses were flat linked quarter. Efficiency gains were supported by higher service fees and mortgage banking income.

Total deposits increased to $23.2 billion, up 23.1% annualized from $20.8 billion six months prior. Assets under custody and administration rose to $44.4 billion, a $1.4 billion sequential lift. Asset quality improved with non-performing assets falling to 0.56% of total assets and annualized net charge-offs declining to 4 basis points of average loans.