Axos Financial, Inc.

Greetings and welcome to the Axios Bank Third Quarter 2026 Earnings Conference Call and Webcast. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce Jonny Lai, Senior Vice President corporate development, and investor relations. Thank you. You may begin.

Thank you, Diego. Good afternoon, everyone, and thank you for your interest in Axos. Joining us today for Axos Financial Inc.' 's third quarter 2026 financial results conference call are the company's president and chief executive officer, Greg Gerbrandt, and executive vice president and chief financial officer, Derek Walsh. Greg and Derek will provide prepared remarks on The financial and operational results for the quarter ended March 31st, 2026, then opened up the call to a Q&A. Before I begin, I'd like to remind listeners that prepared remarks made on this call may contain forward-looking statements that are subject to risks and uncertainties, and that management may make additional forward-looking statements in response to your questions. Please refer to the safe harbor statement found in today's earnings press release and in our investor presentation for additional details. This call is being webcast and there will be an audio replay available in the investor relations section of the company's website located at AxiosFinancial.com for 30 days. Details for this call were provided on the conference call announcement and in today's earnings press release. Before handing over the call to Greg, I'd like to remind listeners that in addition to the earnings press release, we also issued an earnings supplement and 10Q for this call. All of these documents can be found on AxiosFinancial.com. With that, I'd like to turn the call over to Greg.

Thank you, Johnny. Good afternoon, everyone, and thank you for joining us. I'd like to welcome everyone to Axos Financial's conference call for the third quarter of fiscal 2026, ended March 31st, 2026. I thank you for your interest in Axos Financial. We generated another quarter of double-digit year-over-year growth in net interest income, ending loan and deposit balances, earnings per share, and book value. We generated almost $700 million in net loan growth linked quarter, resulting in an 11.2% year-over-year increase in net interest income. Excluding the interest income impact of FDIC-purchased loans and two fewer days in the March 31, 2026 quarter compared to December 31, 2025 quarter, net interest income increased by $5.7 million on that linked quarter basis. We continue to generate higher returns as evidenced by the over 16% return on average common equity and 1.8% return on assets in the three months ended March 31, 2026. Other highlights in the quarter include non-interest income was $86 million for the quarter ended March 31, 2026, up from $53 million in the prior quarter and $33.4 million in the corresponding quarter a year ago. Excluding the benefit of a $22 million legal settlement this quarter, non-interest income was up approximately $10 million linked quarter due to higher mortgage banking income, advisory fee, and the addition of rental income from the commercial office building we purchased in January of 2026 that will be used as our future headquarters. Net interest margin was 4.57% for the quarter ended March 31, 2026, compared to 4.94% in the prior quarter. Excluding the impact from the prepayments of FDIC purchase loans and two fewer days in the quarter ended March 31st, Our net interest margin was down in line with last quarter's guidance of around 10 basis points. We continue to maintain a strong net interest margin with and without the benefit of the accretion from loans purchased from the FDIC, which has now dwindled to around five basis points of positive impact. Non-interest expenses were up $1.4 million linked quarter to $186 million. We are seeing some of the benefits from our operational efficiency initiatives in and artificial intelligence on our salaries and benefits, data processing, and other G&A expenses. The pending completion of the Genius Bank deposit acquisition also allowed us to moderate growth in advertising and promotional expenses in the March quarter. Net income was approximately $124.7 million in the quarter ended March 31st, up 18.5% from the $105.2 million in the prior year's third quarter. The alluded EPS was $2.15 for the quarter ended March 31st, compared to $1.81 in the third quarter of 2025, representing an 18.7% year-over-year increase. Total originations for investment, excluding single-family warehouse lending, were $5.1 billion for the three months ended March 31st. Loan growth was strong across a number of lending businesses, including Capital Calls, Real Estate Lender Finance, and Equipment Finance. Jumbo single-family loan balances were up slightly, while single-family warehouse had a seasonal decline of approximately $123 million. Ending loan balances grew by approximately $800 million link quarter, excluding single-family warehouse. Average loan yields from non-purchased loans for the three months ended March 31st were 7.23%, down from 7.63% in the prior quarter. The sequential decline was driven primarily by the full impact from the two 25 basis point rate cuts in the calendar Q4 2025. Average loan yields for purchased loans were 12.39% compared to 23.32% in the December 31st quarter. Purchased loan yields from the quarter ended December 31st benefited from one FDI purchased loan paying approximately paying off and resulting in approximately $17 million of purchase discount accretion that was recognized in interest income. The FDIC purchase loans continue to perform, and all the loans in that portfolio remain current. New loan interest rates for the March quarter were 6.9% in both the single-family and C&I portfolios, 6.7% in the multifamily portfolio, and 7.8% in our auto portfolio. Ending deposit balances were $22.4 billion, up 11.2% year-over-year. Demand, money market, and savings accounts represent 97% of total deposits in March 31st, increased by 13% year-over-year. We have a diverse mix of funding across a variety of business verticals, with consumer and small business representing 52% of total deposits, commercial cash, treasury management, and institutional representing 22%, commercial specialty representing 14%, Axis Securities, 5%, and Distribution Partners, representing 1%. Ending non-interest-bearing deposits were approximately $3.4 billion in the quarter ended March 31st, an increase of $143 million from the $3.25 billion in the prior quarter. We deliberately reduced higher cost savings and time deposits and temporarily increased federal home loan bank advances in anticipation of the roughly $2.3 billion of Genius Bank deposits coming in the June quarter. Client cash sorting deposits ended the quarter around $1.1 billion. In addition to our exo-security deposits on our balance sheet, we had approximately $450 million of deposits off balance sheet at partner banks. We remain focused on adding non-interest-bearing deposits from small business, custody, clearing, fiduciary services, and commercial and cash and treasury management verticals. Our consolidated net interest margin was 4.57% for the quarter ended March 31st, compared to 4.94% in the quarter ended December 31st. The early payoff of an FDIC purchase loan in that second quarter increased net interest margin by approximately 25 basis point. Excluding the early loan payoffs, the purchase loan yield was 14.2% in the quarter ended December 31st compared to 12.4 in the quarter ended March 31st. With the diminishing impact of the FDIC purchase loans, we expect reported net interest margin to stay roughly flat on an organic basis, excluding the impact of the deposit purchase premium from the acquired deposits, which we estimate to be around five basis points. The diversity of our lending channels provide us with flexibility to maintain strong loan and deposit growth while maintaining our net interest margin. Vernon had another strong quarter, contributing approximately $200 million of new loans and operating leases in the March quarter. We continue to identify opportunities to deepen our relationships with existing Verdant vendors and dealers, as well as accelerate growth in a few existing verticals that were previously constrained by capital and size limitations when Verdant was under private ownership. The synergy between the Verdant and non-marine floor plan lending teams is starting to gain traction. We believe that our ability to provide a comprehensive retail and wholesale lending solution to top-tier original equipment manufacturers is a strategic advantage that we can leverage to win more deals. Demand in our commercial specialty real estate, fund finance, real estate lender finance, and asset-based lending programs remain strong. Pipelines in the jumbo single-family and multifamily areas are rebounding. We are making steady progress growing our loan pipelines in newer lending verticals, such as floor plan and retail marine lending. Taking all these factors into consideration, we are confident that we will generate loan growth by the low in the low to mid-teens on an annual basis this year. We had a strong increase in non-interest income as a result of several recurring and one non-recurring item. Mortgage banking income was $3.7 million in the quarter ended March 31st, up $2.2 million year-over-year due to a favorable servicing rights fair value adjustment. Advisory fee income was $9.4 million, up $1.3 million year-over-year. Banking and service fees in the quarter included a $22 million one-time favorable legal settlement and the addition of rental income from commercial office properties we purchased in January. Verding contributed approximately $23.7 million in non-interest income in the March quarter compared to $18.9 million in the December quarter. The credit quality of our loan book remains strong and our historic and current charge-offs remain low. Net charge-offs were 31 basis points in the quarter ended March 31st compared to nine basis points in the year-ago quarter. We charged off $14 million of our principal balance in a CNI cash flow loan that was put on non-accrual over a year ago when we allocated a specific loan loss reserve. The remaining principal balance is approximately $17 million at March 31st on that loan, and we maintain a $10 million specific loan reserve on this balance. Including the charge-off related to that loan, total net charge-offs were $5.1 million in the three months ended March 31st, or eight basis points of annualized net charge-offs to average loans. Total non-performing assets were $180.4 million at the end of the quarter, down approximately $5 million from $185 million at the March 31st, 2025 quarter. Non-performing assets declined by approximately $27 million in the multifamily group, and commercial mortgages down by $19 million. One syndicated CNI shared national credit became delinquent this quarter, accounting for a $33 million sequential increase in our non-performing assets in the CNI loan area. We have taken over as agent in the syndicated loan and are actively working to resolve this non-performing loan. Total non-performing assets with 62 basis points at the March 31, 2026 time, down from 71 basis points at June 30, 2025. We remain well-reserved for our low levels of credit losses, with our allowance for credit losses to non-accrual loans equal to 192.2% at March 31, 2026. In access clearing, advisory and broker-dealer fees were up sequentially due to higher asset and transaction-based income. Total assets under custody administration were flat at $44 billion. Net new asset growth of approximately $140 million were offset by a decline in the stock market in the first three months of 2026. Cash sorting deposit balances were roughly flat quarter over quarter, despite significant market volatility. We continue to expand the scope and scale of artificial intelligence across the firm to a wide range of businesses and functional units. Having established the governance framework and infrastructure to educate, train, and deploy AI tools to all Access team members, we are now focused on scaling the usage of artificial intelligence across more use cases. We have over 500 team members using Cloud Enterprise to improve the speed, quality, and productivity of various workflows. Since the beginning of calendar 2026, the number of technical uses of artificial intelligence tools has increased by 37%, increasing artificial intelligence's share of committed code to 90%. We are adding specialized agents to test, automate, and QC various work product. We continue to evaluate M&A opportunities to augment growth from existing businesses and team lift-outs. The inverted equipment leasing acquisition continues to perform well with good progress across a variety of strategic and operational initiatives. Loan growth remains healthy and profitability continues to improve. We announced the acquisition of approximately $2.3 billion of online saving deposits from Genius Bank in February of 2026. These deposits are a perfect fit for us, and we're excited to offer additional banking, lending, and securities products to the roughly 60,000 individual Genius Bank digital banking clients. We received regulatory approval last month and expect to complete the deposit conversion and client onboarding next month. Last week, we announced a separate deposit acquisition of approximately $3.2 billion of IRA savings and CDs from Capital One. These are granular retirement savings accounts sourced through digital channels. We submitted our bank merger application for this transaction last week and are actively working with Capital One to determine the exact timing and mechanisms of a conversion and close in the second half of calendar 2026. These two opportunistic acquisitions help us with incremental liquidity and funding for future organic and intergrantic loan growth opportunities. Our disciplined growth and strong capital allows us to capitalize on organic and organic growth. The regulatory environment and dynamics within the banking and FinTech landscape have created a wealth of M&A opportunities that we intend to fully review. We continue to invest capital in areas where we see the best risk-adjusted returns and in tools, people, and processes that will help us scale. Now, I'll turn the call over to Derek, who will have additional details on our financial results.