Axos Financial, Inc.
TypePublic
NYSE: AX
S&P 600 component
Russell 2000 component
IndustryFinancial services
FoundedJuly 6, 1999 (1999-07-06)
HeadquartersLas Vegas, Nevada
Key people
Gregory Garrabrants, President & CEO
Andrew J. Micheletti, CFO
ProductsOnline banking
Increase $54.3 million (quarter 2021)
Total assetsIncrease $14.4 billion (2021)
Total equityIncrease $1.3 billion (2021)
Number of employees
1,099 (2020)
Websiteinvestors.axosfinancial.com/corporate-profile/
Footnotes / references
[1][2]

Axos Financial is a bank holding company based in Las Vegas, Nevada and is the parent of Axos Bank, a direct bank.

Origin and name change

Axos originated as a company known as BofI Holding, Inc., which was founded by Jerry Englert and Gary Lewis Evans with $14 million of startup capital.[3] BofI was incorporated in Delaware in 1999 and began operations as Bank of Internet on July 4, 2000.[4] The start date of July 4 was purposely chosen because it showed that the bank would be open on a day that other banks were closed due to Independence Day.[5]

BofI became a public company via an initial public offering on March 15, 2005.[4] It offered 3,052,745 shares of common stock at a price of $11.50 per share.[6]

On October 1, 2018, BofI Holding re-branded as Axos Financial, and switched its stock exchange from NASDAQ to the NYSE.[7]

Lending practices

The bank has made larger loans to wealthy individuals that other banks have turned down, albeit at higher interest rates.[8]

In March 2022, Newsweek and Forbes reported that Axos made a $100 million mortgage loan to Donald Trump's company. The loan followed an announcement by Trump's former accounting firm stating that the Trump organization's financial statements should "no longer be relied on."[9][10]

Approximately 71.5% of the company's loans are secured by properties in California, 11.8% are secured by properties in New York, and 5.1% are secured by properties in Florida.[4]

Acquisitions

In September 2013, the company acquired $173 million in deposits from Principal Bank.[11]

In September 2015, the company acquired H&R Block Bank and became the issuing bank for H&R Block-branded credit cards and lines of credit.[12] It launched a co-branded Individual Retirement Accounts (IRAs) program with H&R Block in January 2016.[13]

In March 2016, the company acquired $140 million of equipment leases from Pacific Western Equipment Finance.[14]

In November 2018, the bank acquired $3 billion in assets and liabilities of Nationwide Bank, a subsidiary of Nationwide Mutual Insurance Company.[15]

In January 2019, Axos Financial acquired COR Clearing LLC.[16] The unit has since been renamed Axos Clearing.[4]

In March 2019, Axos Financial acquired the robo-advisory platform WiseBanyan.[4] The unit has since been renamed Axos Invest and as of early 2020 is keeping the "free" business model originally designed by the start-up's founders. According to the investor presentation, Axos plans to use WiseBanyan to mine more personal data about its client base.[17]

In March 2019, Axos Financial acquired approximately $173 million in deposits from MWABank.[4]

In April 2021, Axos Financial acquired EAS (E*TRADE Advisor Services).[18][19][20] However, it was closed in July 2021 as a part of rebranding.[21][22][23]

Management

Gregory Garrabrants was appointed chief executive officer of Axos' predecessor company BofI Holding in October 2007. Prior to that, he was senior vice president at IndyMac Bancorp.[24] Formerly known as Countrywide Mortgage Investment, IndyMac Bancorp failed in 2008.[25][26]

In April 2019, it was reported that Garrabrants earned $34.5 million, making him the highest paid bank CEO of 2018.[27]

According to Bloomberg News, in March 2020 Garrabrants sent an email advising employees that he expected them to be as productive working at home during the coronavirus/COVID-19 pandemic as they had been while working in the office.[28]

Financial results

On July 29, 2021, the company announced its net income for the last quarter of 2021 as $54.3 million.[29][30][31]

References

  1. ↑ Naake, Spencer (July 22, 2014). "How BofI Holding, Inc. Revolutionized the Banking Industry Almost 20 Years Ago". The Motley Fool.
  2. ↑ "BofI Holding, Inc. 2018 Form 10-K Annual Report". U.S. Securities and Exchange Commission.
  3. ↑ Huard, Christine (March 14, 2005). "Jerry Englert, 73, cofounded Internet-only bank". The San Diego Union-Tribune.
  4. 1 2 3 4 5 6 "Axos Financial, Inc., 2020 Form 10-K Annual Report". Archived from the original on 2021-10-29.
  5. ↑ Naake, Spencer (2014-07-22). "How BofI Holding, Inc. Revolutionized the Banking Industry Almost 20 Years Ago". The Motley Fool. Retrieved 2019-09-12.
  6. ↑ "B of I Holding, Inc. Prospectus". U.S. Securities and Exchange Commission. March 14, 2005.
  7. ↑ "BofI Holding, Inc. is Now Axos Financial, Inc" (Press release). Business Wire. September 12, 2018.
  8. ↑ Eavis, Peter (August 22, 2015). "An Internet Mortgage Provider Reaps the Rewards of Lending Boldly". The New York Times.(subscription required)
  9. ↑ McKnight, Patricia. "Virtual Bank Loans Trump $100M After Firm Warned of 'Unreliable' Finances". Newsweek. Retrieved 18 March 2022.
  10. ↑ Everson, Zach. "Checks & Imbalances: Trump's $100 Million Loan, Fortenberry Heads To Court". Forbes.com. Retrieved 19 March 2022.
  11. ↑ "BofI Federal Bank Completes $173 Million Deposit Acquisition From Principal Bank" (Press release). Marketwired. September 9, 2013.
  12. ↑ "BofI Federal Bank Completes Deposit Transaction With H&R Block" (Press release). Marketwired. September 1, 2015.
  13. ↑ "Bank of Internet USA Launches Individual Retirement Accounts (IRAs) Through H&R Block Partnership" (Press release). Marketwired. January 13, 2016.
  14. ↑ "BofI Holding, Inc. Announces Acquisition of Equipment Leases and Operations of Pacific Western Equipment Finance" (Press release). Business Wire. April 4, 2016.
  15. ↑ "Axos Bank Closes Nationwide Bank Deposit Acquisition" (Press release). Business Wire. November 19, 2018.
  16. ↑ "Press Release | Axos Financial". investors.axosfinancial.com. Retrieved 2019-09-12.
  17. ↑ Lai, Johnny (October 2018). "Axos To Acquire WiseBanyan" (PDF). Archived (PDF) from the original on 2020-03-01.
  18. ↑ "Axos Financial, Inc. to Acquire E*TRADE Advisor Services". www.businesswire.com. 2021-04-20. Retrieved 2021-08-12.
  19. ↑ "Axos Financial, Inc. to Acquire E*TRADE Advisor Services". finance.yahoo.com. Retrieved 2021-08-12.
  20. ↑ "Axos Axes Six Former E*Trade Sales Reps as Competitors Circle RIA Pool". AdvisorHub. 2021-08-11. Retrieved 2021-08-12.
  21. ↑ "Axos Financial, Inc. Closes E*TRADE Advisor Services Acquisition". www.businesswire.com. 2021-08-02. Retrieved 2021-08-12.
  22. ↑ "Axos Financial Closes E*TRADE Advisor Services Acquisition". citybiz. 2021-08-03. Retrieved 2021-08-12.
  23. ↑ "Axos Financial seals deal for E*Trade's custody business". citywireusa.com. Archived from the original on 2021-08-02. Retrieved 2021-08-12.
  24. ↑ "BofI Holding names new CEO". Reuters. 2007-10-23. Retrieved 2020-02-10.
  25. ↑ Lacter, Marc. "IndyMac taken over". LA Biz Observed. Retrieved 18 March 2022.
  26. ↑ Shalal-Esa, Andrea (2008-09-25). "FACTBOX: Top ten U.S. bank failures". Reuters. Thomson Reuters. Retrieved 2008-09-26.
  27. ↑ "CEO of Tiny California Bank Makes Twice as Much as Jamie Dimon". Bloomberg.com. 2019-04-11. Retrieved 2020-02-24.
  28. ↑ "Bloomberg - Bosses Panic-Buy Spy Software to Keep Tabs on Remote Workers". www.bloomberg.com. Archived from the original on 2020-03-27. Retrieved 2020-03-30.
  29. ↑ "Axos Financial, Inc. Announces Record Net Income of $215.7 million for Fiscal 2021". www.businesswire.com. 2021-07-29. Retrieved 2021-08-12.
  30. ↑ "Axos Financial Q2 2021 Earnings Preview (NYSE:AX) | Seeking Alpha". seekingalpha.com. Retrieved 2021-08-12.
  31. ↑ "Axos Financial (AX) Surpasses Q4 Earnings Estimates". Archived from the original on 2021-08-12.
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