Axos Financial inks equity distribution deal worth $150M

Axos Financial, Inc. has entered into an equity distribution agreement with Keefe, Bruyette & Woods, Inc., and Raymond (NSE:RYMD) James & Associates, Inc., potentially enabling the sale of up to $150 million in common stock. The arrangement, reported on Tuesday, allows the federally chartered savings institution to issue and sell shares at market prices through "at-the-market" offerings on the New York Stock Exchange.

The deal stipulates that Axos Financial will notify the distribution agents with a placement notice each time it intends to sell shares. Sales can be made directly on the NYSE, through market makers, or via electronic communications networks, among other methods. The minimum sale amount per quarter is set at $5 million.

Axos Financial will set the terms for each sale, including the maximum amount of stock to be sold, the timeframe for sales, minimum pricing, and any daily sales limits, all subject to agreement by the designated agent. The distribution agents are tasked with making commercially reasonable efforts to sell the designated shares on behalf of Axos Financial.

This new equity distribution agreement is based on a press release statement and forms part of Axos Financial’s strategic financial initiatives. The company’s stock is traded on the New York Stock Exchange under the ticker (NYSE:AX), currently trading near its InvestingPro Fair Value with a P/E ratio of 8.62. For deeper insights into Axos Financial’s valuation and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro.

For their services, the distribution agents will receive a commission of 2.5% of the gross proceeds from the sales. Axos Financial has also agreed to customary indemnification rights for the agents.

This new equity distribution agreement is based on a press release statement and forms part of Axos Financial’s strategic financial initiatives. The company’s stock is traded on the New York Stock Exchange under the ticker (NYSE:AX), currently trading near its InvestingPro Fair Value with a P/E ratio of 8.62.

For deeper insights into Axos Financial’s valuation and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro.

In other recent news, Axos Financial has reported impressive earnings and revenue for its fiscal second quarter. The online banking and financial services firm posted adjusted earnings per share of $1.82, surpassing the consensus estimate of $1.75. Revenue was also higher than expected, coming in at $307.9 million against projections of $303.63 million.

Furthermore, Axos Financial has seen a rise in net interest income by 22.5% year on year to $280.1 million, a result of increased interest income on loans and deposits at other financial institutions. The company’s provision for credit losses was $12.2 million, a decrease from $13.5 million in the same quarter last year.

Recent developments also include Axos’ reduction in interest-bearing deposit costs by 51 basis points from the previous quarter, while maintaining flat deposit balances. Total (EPA:TTEF) deposits experienced an annualized increase of 5.9% from June 30, 2024, to $19.9 billion. Lastly, the firm’s book value per share increased by 20.9% year on year to $44.17, indicating strong capital ratios.

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