Axos Financial reported first-quarter fiscal 2027 adjusted earnings of $2.34 a share on revenue of $395.1 million, both above Wall Street forecasts, according to Investing.com. The bank said net income rose 15.4% from a year earlier, and deposits climbed 14% year over year.
Net interest margin widened to 4.64%, which the report attributes to asset sensitivity and the Verdant acquisition. Loan balances rose to $25.9 billion, and deposits reached $25.4 billion. The bank booked two commercial and industrial charge-offs. Management said those credits had been reserved for in prior quarters.
Management expects net interest margin to stay flat over the next few quarters. It cited deposit costs and excess liquidity from the Capital One deposit acquisition as offsets to rate benefits. Axos kept its fiscal 2027 organic loan growth target at low to mid-teens, excluding acquisitions.
Chief Executive Greg Garrabrants said the company's "core business fundamentals remain strong." He also said Axos is "well-positioned for a higher for longer interest rate environment."
Axos shares closed the regular session at $92.55, up 1.17%. They were essentially unchanged in after-hours trading.