#127.75 3.1. 50 $7 18 XES XSD VOLU UVOL 76.36 AX October 2018 34.62 34.97 34.62 34.79 2 MO NYSE 134.9600 axos FINANCIAL NYSE Axos Financial, Inc. Investor Presentation NYSE: AX FDM F4666 CLEFEL axos Banking Evolved SM#2Safe Harbor This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 (the "Reform Act"). The words "believe," "expect," "anticipate," "estimate," "estimate," "project," or the negation thereof or similar expressions constitute forward-looking statements within the meaning of the Reform Act. These statements may include, but are not limited to, projections of revenues, income or loss, projected consummation of pending axos expenditures, acquisitions, estimates of capital plans for future operations, products or services, and financing needs or plans, as well as assumptions relating to these matters. Such statements involve risks, uncertainties and other factors that may cause actual results, performance or achievements of the Company and its subsidiaries to be materially different from any future results, performance or achievements expressed or implied by such forward- looking statements. For a discussion of these factors, we refer you to the Company's reports filed with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the year ended June 30, 2018. In light of the significant uncertainties inherent in the forward-looking statements included herein, the inclusion of such information should not be regarded as a representation by the Company or by any other person or entity that the objectives and plans of the Company will be achieved. For all forward-looking statements, the Company claims the protection of the safe-harbor for forward-looking statements contained in the Reform Act. 1#3Our Business Model is More Profitable Because Our Costs are Lower As % of average assets Net interest income Salaries and benefits Premises and equipment Other non-interest expense Total non-interest expense Core business margin Axos¹ (%) 3.69 0.86 0.18 0.66 1.70 1.99 axos Banks $1-$10bn² (%) 3.57 1.50 0.32 1.04 2.86 0.71 1. For the three months ended 06/30/2018 - the most recent data on FDIC website "Statistics on Depository Institutions Report" Axos Bank only, excludes Axos Financial, Inc. to compare to FDIC data. Data retrieved 10/26/2018. 2. Commercial banks by asset size. FDIC reported for three months ended 06/30/18. Total of 516 institutions $1-$10 billion. Data retrieved 10/26/2018. 2#4Axos' Business Model is Differentiated From Other Banks Customer Acquisition • Digital Marketing • Affinity and Distribution Partners • Data mining/target feeding direct marketing • Cross-sell ● Data Driven Insight Sales • Automated fulfillment • Inbound call center sales ● Outbound call center sales ● Minimal outside sales Significant inside sales Integrated Customer Experience Self-service • Digital journey ● Servicing Direct banker (call center) Core Digital Capabilities Digital Marketing axos Digitally Enabled Operations Distribution ● Balance sheet • Whole loan sales options ● Securitization Next-Gen Technology 3#5Fiscal 2018 Highlights Compared with Fiscal axos 2017 $ Millions 15,000 10,000 5,000 0 $ Millions 200 150 100 50 0 Asset Growth 8,502 FY 2017 134.7 12.2% Net Income FY 2017 13.1% 9,540 FY 2018 152.4 FY 2018 $ Millions 10,000 5,000 0- $ Diluted EPS 2.50 2.00 1.50 1.00 0.50 0.00 Return on Equity = 17.05% Return on Assets = 1.68% Deposit Growth 6,900 FY 2017 Diluted EPS 2.07 15.7% FY 2017 14.0% 7,985 FY 2018 2.36 FY 2018 4#6Fiscal 2019 First Quarter Highlights Compared with Fiscal 2018 First Quarter $ Millions 12,000 10,000 8,000 6,000 4,000 2,000 0 $ Millions 40 30 20 10 0 Asset Growth 8,582 Q1 2018 32.4 14.1% Net Income Q1 2018 13.8% 9,792 Q1 2019 36.8 Q1 2019 $ Millions 10,000 5,000 $ Diluted EPS 0.70 0.60 0.50 0.40 0 0.30 0.20 0.10 0.00 Deposit Growth 7,179 Q1 2018 0.50 19.5% Diluted EPS Q1 2017 axos 16.0% 8,578* 6,078 Q1 2019 0.58 Q1 2018 Return on Equity = 14.98% Return on Assets = 1.57% 5 * Assumes $2.5 billion of borrowings are converted to deposits at 9/30/18 under the Nationwide Bank deposit acquisition agreement signed but not closed until November 2018.#7Diluted EPS and Return on Equity Have Been axos Consistently Strong Despite Significant Increase in Tier 1 Capital Ratios Diluted EPS (FY) $ per share 2.5 2.0 1.5 1.0 0.5 0.0 Book value per share 0.72 0.96 27% CAGR 1.34 1.87 2.10 2.37 2013 2014 2015 2016 2017 2018 $4.79 $6.33 $8.51 $10.73 $13.05 $15.24 Return On Average Equity (FY) % 20 15 10 5 0 Tier 1 leverage ratio* * Tier 1 leverage ratio is for Axos Financial, Inc., except 2013 and 2014 which are for Axos Bank 17.57 17.89 18.34 2013 2014 8.6% 8.7% 19.43 9.6% 17.78 17.05 2015 2016 2017 2018 9.1% 10.0% 9.4% 6#8Axos is a Top Quartile Performer Versus Bank Peer Group ROAA Return on equity G&A Efficiency ratio Axos Bank 1.99% 21.35% 1.69% 33.25% Peer Group 1.08% 9.95% 2.58% 62.29% Source: Uniform Bank Performance Report (UBPR) as of 6/30/2018; data retrieved 8/07/2018. Note: Peer group is all savings banks with assets greater than $1 billion for quarter ended 6/30/2018. Percentile 90% 95% 25% axos™ 8% The 95% on ROE means that the Bank outperformed 95% of all banks. The 25% G&A ranking means that only 25% of banks spend less on G&A than Axos. Peer group includes savings banks greater than $1 billion. 7#9Diverse Lending Business Lending Single family Commercial Real Estate C&I Lending Small business Consumer Gain-on-sale Mortgage Banking Jumbo Warehouse Lending Multifamily Small Balance Commercial Lender Finance Asset Backed Lending Equipment Leasing Factoring Bank Loans Large Balance Commercial/Specialty Real Estate H&R Block Franchise Lending Auto Overdraft Lines Unsecured Lending axos 8#10Loan Diversity - September 30, 2018 1. CRE/Home Equity/ Consumer and Other 6% C&I Lender Finance 2% - SF Loan Portfolio¹ 100% = $8,717 Million Factoring 1% Multifamily 21% C&I 19% Gross loans and leases before unaccreted discounts and loan and lease fees and allowances. 51% SF-Residential axos™ 9#11Our Asset Growth has been Driven by Strong and Profitable Organic Loan Production Net Loan Portfolio End of Last Five Quarters ($ in Thousands) Average Loan to Value $10,000,000 $9,000,000 $8,000,000 $7,000,000 $6,000,000 $5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000 $- Multifamily $7,512,999 Q1 2018 54% $7,874,431 $8,064,716 [LIII Single family 57% Q2 2018 53% 57% Q3 2018 53% $8,432,289 57% Q4 2018 53% axos 57% $8,654,500 Q1 2019 53% 57% 10#12Loan Pipeline Remains Strong FY 2019 Q1 $ Millions 1,400 1,200 1,000 800 600 400 200 0 $503 Jumbo Single Family $82 $154 Agency Commercial Multifamily / Primary Single Family axos™ $1,203 $70 $464 T $1,273 & Industral Small Balance Pipeline Warehouse Lending Commercial Single Family Total 11#13Loan Origination Growth $ Billions 8 7 CO 6 LO 5 4 3 2 1 0 2.1 1.1 1.0 Fiscal Year Loan Originations 2013 Annual growth rate 3.0 0.7 2.3 28.5% 5-yr CAGR 4.3 1.0 3.3 2014 2015 5.0 Loans for sale 1.4 3.6 5.6 1.4 4.2 2016 2017 7.5 1.6 5.9 2018 42.0% 42.2% 15.6% 11.2% 34.7% Loans for investment ● axos Future Plans > Organic growth in existing business lines Multifamily geographic expansion Agency and jumbo mortgage channel expansion Small Balance Commercial Real Estate expansion Large Balance Commercial / Specialty Real Estate expansion > Additional C&I verticals/product expansion > Retail auto lending launch > Consumer unsecured installment lending launch 12#14Diversified Online Deposit Businesses Deposit Consumer < Demographically targeted brands direct internet brands Distribution Partners Small business banking Commercial/ Treasury Management Specialty deposits Key Elements BIN sponsorship < Differentiated products with turn-down product options < Exclusive relationships with significant brands, groups, or employees < Exclusive relationships with financial planners through Axos Advisor < Business banking with simple suite of cash management services < Full service treasury/cash management < 1031 exchange firms < Title and escrow companies < HOA and property management < Prepaid program managers with focus on large national programs axos 13#15Deposit Growth in Checking, Business, and Savings Was Achieved While Transforming the Mix of Deposits 100% of Deposits Time deposits June 30, 2013 50% = $2.1 billion. Checking and other demand deposits 19% 31% Savings September 30, 2018 100% of Deposits = $6.1 billion Time deposits Savings 23% 33% Savings - IRA 4% axos Checking Growth (6/2013-9/2018) = 518% Savings Growth (6/2013-9/2018) = 212% Checking and other demand 40% deposits 14#16Axos Customer Base and Deposit Volume is Well Distributed Throughout the United States astogton Average Deposit Balance 100 500 1000 2500 5000 10000 25000 100000 250000 re con 1 Nevada Idaho Baja California Montana Sonora Baja California Sur Wyoming New Mexico Chihuahua Sinaloa Durango North Dakota South Dakota United States Coahuila CKI Texas. Nuevo León Minnesota W ssippi labai West inia Maryland District of Columbia Maine axos New Jersey Delaware New Hampshire Massachusetts Rhode Island Axos Deposits Have National Reach With Customers in Every State Number of Accounts New Brunswick 1 10 25 50 90 15#17Axos Customers are Highly Engaged Engagement Attributes Engagement Score (0-100) Average Lifetime Balance Average # of Services Used Average # of POS % of Total Population % of Total Balance Retention Customer Engagement Results Low Activity Low Activity User Os $100 22% 0% Moderate Note: Study conducted on Rewards Checking customers. Basic User 0 < S < 30 $4000 < 5 < 1 15% 6% Moderate High Activity Engaged 30 S 60 $6,000 7 10 41% 24% High axos Elite Engaged ≥ 60 $50,000 10 25 23% 70% High 64% of Population or 94% of Balance are Overall High Engagement 16#18Core Deposit Growth Was Sufficiently Strong axos To Grow Overall Deposits While Changing The Deposit Mix $ Millions 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0 Deposit Growth 2,092 % CDs¹ % Borrowings² 25% 30.7% 5-yr CAGR 6,044 1 as a % of total deposits 2 as a % of total liabilities 3,042 4,452 6,900 2013 2014 2015 2016 2017 2018 7,985 50% 26% 18% 17% 12% 25% 24% 15% 12% 9% 6% Future Plans > Enhanced digital marketing automation integrated to outbound sales group > Products and technology integration targeted to specific industry groups Create differentiated consumer and business banking platform > Enhanced focus on customer service and user experience > Leverage existing and create new distribution partnerships to reduce acquisition cost and leverage external brands 17#19Diversified Fee / Non-Interest Income Fee Income *Excludes securities income. Mortgage Banking Gain on Sale - - Other Deposit/ Service Fees Prepayment Fee Agency Jumbo Multifamily Structured Settlement Other Cash/Treasury Management Consumer Deposit Prepaid Tax Payments % Fee Income FY 2018* 19% 8% 67% 6% axos 18#20Over the Last Seven Years, Axos Has Successfully Started New Products, Added Distribution Channels, and Completed Acquisitions New product Distribution/ channel M&A ● ● ● 2012 Warehouse Lending Netbank Retail Structured settlement ● ● ● ● ● ● ● ● 2013 Treasury/ cash manage- ment C&I Prepaid Agency Servicing retention UFB Direct Bank X IRA Principal Bank ● ● 2014 Small balance CRE Virtus Union Federal ● ● 2015 Auto Wholesale agency H&R Block Bank ● 2016 HRB franchising lending Equipment leasing ● ● ● 2017 Retail Auto Refund Advance (H&R Block) Unsecured Consumer Lending H&R Block retail stores ● ● axos ● 2018 Factoring Homebuilder mortgage group Nationwide partnership Epiq Trustee Services Nationwide deposits • WiseBanyan acquisition 19#21Key Goals of Universal Digital Bank Personalization Self-Service Facilitate Partnerships Customizable Experience Cross-Sell axos > Increase chance of offering right product at the right time and place > Personalization is the right antidote for too much choice, too much content, and not enough time > > > Eventual artificial intelligence tools assist sale of banking products such as deposits, loans, and mortgages Products optimized by channel, recipient and journey Self service saves time and cost (e.g., activate and de-activate debit-card in platform, send wires via self-service) > Easy integration of third-party features (e.g., biometrics) Access to value added tools (e.g., robo-advisory, automated savings features) either proprietary or third party > Enable creative customer acquisition partners > Provide holistic and interactive and intuitive design experience > Integrate online experience with other channels. > Artificial intelligence and big data credit models enable quick credit decisions > Customized product recommendations based upon analytical determination of need 20#22Universal Digital Bank Consumer Platform ● Product Development (In-House Apps) • Robo-advisor Trusts ● App Store Management Third party services/payments Third-party lending Consumer Online Banking Platform ● ● ● • Auto IRA ● Cross-sell ● Personalization & Segmentation Mortgage Personal loan axos Real-time retention Next-best action Transaction mining Personalized alerts 21#23axos Advanced Data Analytics Provides Key Insights Into Customer Engagement, Profitability, and Retention to Enhance Customer Lifetime Throughout the Bank Framework for Data Analysis Key Learnings Retention & Attrition Drivers Internal & External Databases Evaluate assumptions & identify key learnings Analytics as a Key Asset Predict customer behavior based on insights Data aggregation & analysis CRM Tools Transform data into insights to Boost Long-Term Customer Engagement Customer Segmentation Methodology to Understand Usage & Behavior Profitability Analysis at the Individual Customer Level Streamlined Acquisition Process via Lookalike Modeling & Sales Efficiencies 22#24We are Expanding our Strategic Partnership with H&R Block > Approximately 10,000 U.S branches > > Files 1 in every 7 U.S. tax returns 19.7 million U.S. tax returns per year > 83% of customers receive a refund > 35% franchise-owned > Approximately 2,400 employees > 55 million visits per year on HRB website > Social media ● H&R Block Overview ● ● 28,600 Twitter followers 463,000 Facebook fans 1.7 million views on YouTube Products for 2019 Tax Season axos > Refund Transfer > Emerald Advance Unsecured Loan > Emerald Prepaid Card > Refund Advance Interest-Free Loan Axos will be exclusive provider in 2019 tax season ● ● Axos provides credit underwriting, loan origination, funding and loan servicing Interest-free loan is repaid using borrower's tax refund proceeds Axos' profits will depend on origination volume and actual credit losses 23#25Omni Channel Approach for Axos' 2019 Digital Marketing Strategy User Experience Organizational commitment to user experience Paid, Social & Mobile strategy Social employee engagement Analytical strategy Multi-dimensional analysis by geography, customer type, product, media, traffic source Infrastructure Marketing automation implementation A DIGITAL STRATEGY Business Process Introduced BI reporting tool for analytics Personalization & Data Digital personas for personalized interactions axos Brand & Content Enhanced branding, messaging and positioning 24#26Holistic Credit Risk Management What We Do Utilize a holistic credit-risk management framework to manage and monitor credit quality at each stage of the loan life cycle, and leverage specialized Credit Tools to optimize monitoring and reporting capabilities Credit Monitoring & Oversight Loan Life Cycle Axos Credit Objectives Example of Credit Tools Set Appetite > Originations >> ● ● ● Establish Credit Framework and Culture Board of Directors Annual Strategic Plan Corporate Governance Policies & Approval Authorities Safe Growth PCLENDER™ THETOTALMORTGAGESOLUTION" CLOS COSTAR GROUP RIMS exactbid Credit Tools list is a sampling and is not purported to be comprehensive. Portfolio Management Monitor Assets Throughout Life Cycle i Risk LERETA Reporting > Data-Driven Decision Making REIS axos Microsoft® SQL Server Special Assets Mitigate Problem Loans i Risk LERETA 25#27Monitoring & Management Oversight: Core Products Single Family Residential > Portfolio level monitoring with individual loan reviews completed on an exception basis (e.g., delinquency, FICO/LTV degradation). FICO pulled twice a year > Updated AVMs twice a year > Super jumbo loans receive complete annual loan review, including updated credit report > Pledged assets receive refreshed CLTV ratios on a semiannual basis Portfolio-level review performed quarterly > Commercial Specialty Loan reviews at least quarterly > Project updates at least quarterly > Updated financials at least annually Site visits & inspections for development projects Note: Lists are a sampling and are not purported to be comprehensive. axos Income Property Lending Risk based annual loan review process, with 4 levels depending on financial performance & risk triggers > Updated financials at least annually > FICO pulled twice a year > Updated AVMs twice a year Updated credit report and property inspections requested based on risk triggers Classified loans receive quarterly review > Portfolio-level review performed quarterly > Stress testing performed twice a year C&I Loan reviews at least quarterly > Updated financials at least quarterly - Lender Finance > Borrowing base / custodial reports at least monthly Continuous collateral analytics, with quarterly validation 26#28Best-in-Class Loan Quality (%) 0.50 0.00 Total Net Charge-Offs Annualized¹ 0.02* Axos 0.23 Banks $1-10bn Loans in non-accrual to total loans¹ (%) 1.00 0.50 0.00 0.37 Axos axos 0.85 Banks $1-10bn * Excludes charge-offs related to short-term seasonal tax lending products. The charge-off amount reported by FDIC SDI (including such seasonal tax products) was 0.81%. 1. From FDIC SDI report at 6/30/2018. Total of 516 institutions included in the $1-$10 billion group. Data retrieved 10/25/2018. 27#29Investment Summary axos FINANCIAL TM axos™ Full service branchless banking platform with structural cost advantages vs. traditional banks Superior growth and ROE relative to large and small competitors Solid track record of allocating capital to businesses with best risk-adjusted returns New business initiatives will generate incremental growth in customers, loans and profits Robust risk management systems and culture has resulted in lower credit, counterparty and regulatory risks 28#30Contact Information Greg Garrabrants, President and CEO Andy Micheletti, EVP/CFO [email protected] www.axosfinancial.com axos™ Johnny Lai, VP Corporate Development and Investor Relations Phone: 858.649.2218 Mobile: 858.245.1442 [email protected] 29