Axos Financial, Inc. (NYSE:AX) disclosed the outcomes of the shareholder votes from its recent annual meeting held on Thursday. The federally chartered savings institution, which previously operated under the name BofI Holding , Inc., reported substantial participation with 86.18% of eligible shares represented.
During the gathering, investors cast their ballots on several key proposals. The first was the election of Class II directors, with terms expiring in 2027. The elected directors include Gregory Garrabrants, Paul J. Grinberg, Uzair Dada, and Sara Wardell-Smith. Garrabrants and Dada received a significant majority of votes in favor, while Grinberg saw a notable number of votes withheld. Wardell-Smith was also comfortably elected, with a majority of votes cast in her favor.
The second proposal, a non-binding advisory vote on executive compensation, received mixed results. A majority approved the compensation of the company’s Named Executive Officers, although a substantial portion voted against.
Lastly, shareholders ratified the appointment of BDO USA, P.C. as the independent public accounting firm for the fiscal year 2025 with an overwhelming majority.
The detailed voting results for each director were as follows: Gregory Garrabrants received 41,246,913 votes for and 1,450,555 withheld; Paul J. Grinberg had 24,902,853 votes for and 17,794,615 withheld; Uzair Dada was favored by 41,734,214 votes with 963,254 withheld; and Sara Wardell-Smith garnered 41,869,938 votes for and 827,530 withheld. All proposals were subject to a number of broker non-votes.
The company's executive compensation proposal saw 25,844,309 votes for, 16,646,076 votes against, and 207,083 abstentions. The ratification of BDO USA, P.C. as the company’s auditor for the upcoming fiscal year received 48,833,386 votes for, 216,346 against, and 35,961 abstentions.
In other recent news, Axos Financial has been making headlines with its robust financial performance. The company kicked off the fiscal year 2025 with impressive earnings and revenue results, which exceeded Wall Street's expectations. Needham, an investment firm, has consequently maintained its Buy rating for Axos Financial and increased the price target to $85, citing the company's strong start to the new fiscal year and its management's ability to capitalize on market conditions.
Axos Financial's Q1 2025 report shows a 36% rise in net income to approximately $112 million and a 40% increase in earnings per share to $1.93. Deposits also saw substantial growth, increasing by $614 million, mainly in interest-bearing accounts. However, the company's loan growth was slightly below expectations due to cautious lending in certain segments.
Despite the challenging lending environment, Axos Financial reported a minor increase in loan balances by 0.3% to $19.3 billion and an improvement in the net interest margin to 5.17%, up 81 basis points year-over-year. Analysts from Needham anticipate that an increase in net new assets will contribute to fee income growth. These are recent developments that investors should consider.
However, Axos Financial did see an increase in non-performing assets, particularly in single-family jumbo mortgages and commercial real estate loans. Additionally, non-interest expenses rose to approximately $147 million, influenced by new hires and data processing costs. The company aims for high single-digit to low-teens loan growth in fiscal year 2025, supported by a strong loan pipeline of $1.9 billion as of October 25, 2024.
InvestingPro Insights
To complement the shareholder voting results, recent financial data from InvestingPro offers additional context on Axos Financial's performance. The company's market capitalization stands at $4.56 billion, with a P/E ratio of 9.47, suggesting a potentially undervalued stock relative to earnings. This is further supported by an InvestingPro Tip indicating that Axos is trading at a low P/E ratio relative to its near-term earnings growth.
Axos has demonstrated strong financial performance, with revenue growth of 22.64% over the last twelve months and an impressive operating income margin of 53.78%. These figures align with another InvestingPro Tip highlighting that the company has been profitable over the last twelve months and is expected to remain profitable this year, according to analyst predictions.
The stock has shown remarkable momentum, with a one-year price total return of 104.93% and a year-to-date return of 47.58%. This performance is reflected in an InvestingPro Tip noting the company's strong returns over various time frames, including the last month, three months, and decade.
For investors seeking more comprehensive analysis, InvestingPro offers 12 additional tips for Axos Financial, providing a deeper understanding of the company's financial health and market position.
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