A bank built around digital distribution from the beginning
Axos Bank launched on July 4, 2000, choosing an operating model built around remote access rather than a conventional branch network. The date was part of its identity: banking could be delivered nationwide without replicating the physical distribution of older institutions. The business subsequently expanded far beyond online savings accounts. By June 30, 2026, the insured bank held $28.870 billion in assets, placing it 74th in this series’ fixed domestic-bank inventory. [1][3][4]
The bank’s FDIC certificate is 35546, and its regulatory address is San Diego. Axos Financial, Inc., the listed parent headquartered in Las Vegas, owns the bank alongside securities businesses. The bank is a federal savings association that has elected covered-savings-association status, with the OCC as primary regulator. Digital distribution describes how customers reach the institution; it does not remove the charter, deposit obligations, underwriting requirements or operating risks of a regulated bank. [2][7]
The Garrabrants era broadened the franchise
The group went public in 2005, and Gregory Garrabrants joined in 2007, becoming the central executive in its subsequent expansion. His official biography identifies him as president and chief executive of Axos Financial. The management team also includes chief financial officer Derrick Walsh and chief credit officer Thomas Constantine. The combination of technology delivery and specialized lending requires both software execution and conventional credit judgment; the bank’s evolution has depended on building those capabilities together. [4][6]
In September 2018, BofI Holding, Inc. changed its name to Axos Financial, Inc., while BofI Federal Bank was scheduled to become Axos Bank on October 1. The announcement framed the new name around a more diverse collection of consumer, business and institutional services. The identity change did not create a different parent-bank relationship: the holding company and insured subsidiary remained distinct legal organizations, with their respective former names attached to their own histories. [5]
Online deposits are only one part of the funding model
Axos reaches deposit customers through online acquisition channels, a banking sales force and partner relationships. Its fiscal 2026 filing also describes securities affiliates as a source of deposits for the banking business. These channels differ economically. A household savings customer may compare posted rates, while a business or investment relationship may connect cash balances to payments, brokerage, custody or other operational services. The ability to gather funds without a large retail branch network does not mean every deposit has the same price or persistence. [7]
At June 30, 2026, Axos Bank itself reported $24.832 billion in deposits and $24.702 billion in net loans and leases. Net loans were approximately 99.5% of deposits, calculated from the FDIC figures; this is a balance-sheet comparison rather than a regulatory measure. The parent reported approximately $24.6 billion in consolidated deposits. Differences in reporting scope and consolidation mean the parent figure should not replace the insured bank’s regulatory amount. [1][10]
The asset side is a specialized lending business
The fiscal 2026 consolidated loan portfolio was led by $9.496 billion of commercial and industrial loans outside real estate and $8.868 billion in the commercial-real-estate category. Single-family mortgages and warehouse loans added $4.582 billion, while multifamily and commercial mortgages represented $2.484 billion. The categories collectively show how far the institution moved beyond a narrow online-retail proposition. They describe the parent’s portfolio classifications, not separate FDIC totals for the bank. [7]
The mechanisms within those categories matter. Mortgage warehouse credit finances loans that independent mortgage bankers intend to sell. Lender finance can fund other lenders against their receivables. Asset-based credit relies on collateral such as receivables, inventory or equipment, while leveraged cash-flow lending depends primarily on the borrower’s cash generation. Axos says commercial property loans can be secured directly by real estate or indirectly by loans backed by property. Collateral and seniority can reduce exposure, but their value can deteriorate when a borrower fails. [7]
Securities services created a second business and a connection to the bank
The group’s historical timeline describes expansion into clearing and digital investment services in 2019, followed by a further expansion in advisor services in 2021. Today, Axos Clearing LLC provides securities clearing and custody services, including its Axos Advisor Services division, while Axos Invest, Inc. supplies investment-advisory services. These are affiliates, rather than alternative names for the insured bank. Customer securities held in custody are also different from deposits owed by the bank. [4][7][10]
At June 30, 2026, Axos Clearing reported $47.8 billion in assets under custody or administration. That amount cannot be added to the bank’s assets to measure bank size. The securities business generates fee and interest income and helps source deposits, with intercompany cash-sorting charges eliminated in the consolidated accounts. It can broaden customer relationships and revenue while introducing operational, market and legal risks that differ from ordinary loan underwriting. [7][10]
Verdant added equipment finance and a funding opportunity
Axos Bank announced its purchase of Verdant Commercial Capital, LLC in September 2025, and the fiscal 2026 filing confirms completion on September 30. Verdant originated equipment leases generally ranging from $50,000 to $5 million through specialized industry channels. At acquisition, the group obtained approximately $1.0 billion of loans and leases and $212.6 million of equipment under operating leases, among other assets and liabilities. Equipment on operating lease produces rental income and depreciation, making its accounting different from a conventional loan earning interest. [7][8]
Management’s rationale was to combine vendor-based origination expertise with deposit funding and opportunities in commercial deposits and inventory finance. The announcement contemplated an initial cash price around $43.5 million and potential performance-based payments capped at $50 million. Those were announced transaction terms, rather than a claim that every contingent payment had been earned. By the June 2026 quarter, Verdant was contributing lease rental and other income, but also depreciation, amortization and additional secured financing on the consolidated balance sheet. [8][10]
Two deposit purchases expanded funding without buying whole banks
On May 2, 2026, Axos Bank completed the acquisition of approximately $2.3 billion in U.S. consumer deposits from Jenius Bank, the digital banking business of SMBC MANUBANK. The SEC filing says Axos received cash less a negotiated premium. Economically, it assumed the obligation to repay depositors while receiving the corresponding funds, after the premium. This was a deposit acquisition from a banking business, not an acquisition of SMBC MANUBANK itself. [9]
Another transaction closed on September 21, when Axos acquired approximately $1.9 billion of individual-retirement-account deposits from Capital One, National Association, covering savings and certificate-of-deposit accounts. Again, cash equal to the balances moved with the deposits, less a negotiated premium. The closing amount supersedes the approximately $3.2 billion contemplated in the April agreement. The cited disclosures do not reconcile the difference between the announcement estimate and closing amount. These purchased relationships expand the funding base, but retaining their balances and repricing them over time are separate from completing the legal transfer. The September addition is not included in the June figures. [7][12]
Earnings growth accompanied a narrower interest margin
Axos Bank reported $303.239 million in net income for January through June 2026 in the FDIC data. The parent uses a June fiscal year-end and reported $490.4 million for the full fiscal year ending June 30. Those numbers cannot be directly compared: they differ in both entity scope and period. For the three months ending June, the parent earned $124.9 million, up 12.9% from a year earlier, with $317.9 million of net interest income. [1][10]
Growth in interest-earning assets supported net interest income even as the consolidated net interest margin fell to 4.54% from 4.84% in the prior-year quarter. The banking segment’s margin was 4.56%. Noninterest income rose to $61.9 million, aided by Verdant and higher prepayment-related income, while expenses also increased. The result illustrates how earnings can grow with a larger balance sheet despite a smaller spread per dollar of earning assets. It does not establish that every acquired business earned the originally forecast return. [10]
Credit losses, legal expense and capital qualify the growth story
The parent’s annualized net rate was 0.25% in the June quarter, compared with 0.16% a year earlier. Management highlighted a $10 million charge-off on a previously reserved commercial cash-flow loan; excluding it produced a lower adjusted comparison, but the loss remains part of reported credit experience. Consolidated nonperforming assets were 0.53% of total assets, down from 0.71% a year earlier, and the allowance covered 221% of nonaccrual loans. Lower troubled balances and higher realized losses can coexist because these measures capture different stages of credit deterioration. [10]
The quarter also included a $21 million accrual related to a FINRA arbitration matter at Axos Clearing. It helped move the securities segment to an $11.5 million pretax loss, compared with a $6.9 million profit a year earlier. The company’s non-GAAP adjusted earnings excluded that accrual along with specified acquisition-related costs. Identifying the affected affiliate matters: it was a securities-business legal expense in group results, not a description of a bank . [10]
The insured bank ended June with $2.806 billion in book equity. Its common-equity Tier 1 ratio was 10.93%, total capital ratio 12.10% and leverage ratio 9.24%, all below their June 2025 levels. The parent’s ratios were higher and should not be substituted for the bank’s. The figures show that expanding assets and earning profits do not necessarily increase every capital ratio, because both capital resources and their asset denominators change. [1][7]
Arc extends the technology strategy beyond the consumer interface
The group announced an agreement for Arc Technologies, Inc. on July 7, 2026, and confirmed completion on July 20 in its earnings release. Arc, founded in 2021 and led by co-founder and chief executive Nick Lombardo, provides cash-management, capital-markets and financial-software tools for technology and growth companies. Axos described its AI capabilities as a way to automate financial workflows and improve business-customer service. Those are management’s intended benefits, not independently established productivity results. [10][11]
The completed transactions show a bank using acquisitions to add distinct ingredients: equipment-finance expertise, deposit relationships and business software. Its digital origins remain relevant to distribution, but the current institution’s economics also depend on specialized credit, deposit retention, securities operations and capital allocation. Subsequent reporting can establish how those parts perform together. June earnings and September closings document progress in scale and execution, while leaving integration benefits, future credit outcomes and the durability of acquired funding uncertain. [7][10][11][12]
Sources
- FDIC bank financials at June 30, 2026; dollar fields reported in thousandsOfficial sourceBack to text: ↑1↑2↑3↑4
- FDIC institution index dated October 2, 2026; checked October 5Official sourceBack to text: ↑
- FDIC June 30, 2026 asset inventory; domestic insured charter classes selected for this seriesOfficial sourceBack to text: ↑
- Axos official historical timeline; reviewed October 5, 2026SourceBack to text: ↑1↑2↑3
- BofI parent and bank announce Axos name changes, September 12, 2018SourceBack to text: ↑
- Axos official Gregory Garrabrants biography and executive roles; reviewed October 5, 2026SourceBack to text: ↑
- Axos Financial fiscal 2026 Form 10-K, filed August 20, 2026Filing / reportBack to text: ↑1↑2↑3↑4↑5↑6↑7↑8↑9↑10
- Axos Bank announces Verdant acquisition terms, September 22, 2025SourceBack to text: ↑1↑2
- Axos Form 8-K: Jenius consumer-deposit acquisition completed May 2, filed May 4, 2026Filing / reportBack to text: ↑
- Axos Financial fiscal 2026 and June-quarter results, July 30, 2026SourceBack to text: ↑1↑2↑3↑4↑5↑6↑7↑8↑9↑10
- Axos announces Arc Technologies agreement, July 7, 2026; completion confirmed in July 30 resultsSourceBack to text: ↑1↑2
- Axos Form 8-K: Capital One, National Association IRA-deposit acquisition completed September 21, 2026Filing / reportBack to text: ↑1↑2