Axos Financial Inc
For the period ended Dec 31, 2023. Filed Jan 30, 2024.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Dec 31, 2023 · Filed Jan 30, 2024
Extracted filing text, with the paragraph anchors used by the comparison.
See the whole filing, with its images and exhibitsContents
10. Segment Reporting and Revenue Information
- SEGMENT REPORTING AND REVENUE INFORMATION
Segment Reporting. The operating segments reported below are the segments of the Company for which separate financial information is available and for which segment results are evaluated regularly by the Chief Executive Officer in deciding how to allocate resources and in assessing performance. The operating segments and segment results of the Company are determined based upon the management reporting system, which assigns balance sheet and income statement items to each of the business segments and by which segment results are evaluated by the Chief Executive Officer in deciding how to allocate resources and in assessing performance.
The Company evaluates performance and allocates resources based on pre-tax profit or loss from operations. Certain corporate administration costs have not been allocated to the reportable segments. The Company operates throughtwo operating segments: Banking Business and Securities Business. Inter-segment transactions are eliminated in consolidation and primarily include non-interest income earned by the Securities Business segment and non-interest expense incurred by the Banking Business segment for cash sorting fees related to deposits sourced from Securities Business segment customers, as well as interest expense paid by the Banking Business segment to each of the wholly-owned subsidiaries of the Company and to the Company itself for their operating cash held on deposit with the Business Banking segment. For more information on the Company’s operating segments, see Note 23—“Segment Reporting” in the Company’s 2023 Form 10-K.
In order to reconcile thetwo segments to the consolidated totals, the Company includes parent-only activities and intercompany eliminations. The following tables present the operating results, goodwill, and assets of the segments:
| For the Three Months Ended December 31, 2023 | ||||
|---|---|---|---|---|
| (Dollars in thousands) | Banking Business | Securities Business | Corporate/Eliminations | Axos Consolidated |
| Net interest income | $226,635 | $6,080 | $(4,109) | $228,606 |
| Provision for credit losses | 13,500 | — | — | 13,500 |
| Non-interest income | 103,779 | 32,641 | (12,291) | 124,129 |
| Non-interest expense | 102,282 | 27,968 | (8,411) | 121,839 |
| Income before taxes | $214,632 | $10,753 | $(7,989) | $217,396 |
| For the Three Months Ended December 31, 2022 | ||||
| (Dollars in thousands) | Banking Business | Securities Business | Corporate/Eliminations | Axos Consolidated |
| Net interest income | $198,545 | $4,876 | $(3,511) | $199,910 |
| Provision for credit losses | 3,001 | — | — | 3,001 |
| Non-interest income | 10,557 | 36,004 | (18,232) | 28,329 |
| Non-interest expense | 96,783 | 25,271 | (14,027) | 108,027 |
| Income before taxes | $109,318 | $15,609 | $(7,716) | $117,211 |
| For the Six Months Ended December 31, 2023 | ||||
| (Dollars in thousands) | Banking Business | Securities Business | Corporate/Eliminations | Axos Consolidated |
| Net interest income | $435,854 | $11,622 | $(7,715) | $439,761 |
| Provision for credit losses | 20,500 | — | — | 20,500 |
| Non-interest income | 116,336 | 67,196 | (24,896) | 158,636 |
| Non-interest expense | 203,068 | 55,491 | (16,214) | 242,345 |
| Income before taxes | $328,622 | $23,327 | $(16,397) | $335,552 |
| For the Six Months Ended December 31, 2022 | ||||
| (Dollars in thousands) | Banking Business | Securities Business | Corporate/Eliminations | Axos Consolidated |
| Net interest income | $378,275 | $9,151 | $(7,041) | $380,385 |
| Provision for credit losses | 11,751 | — | — | 11,751 |
| Non-interest income | 21,269 | 65,169 | (30,901) | 55,537 |
| Non-interest expense | 197,579 | 49,786 | (23,251) | 224,114 |
| Income before taxes | $190,214 | $24,534 | $(14,691) | $200,057 |
| As of December 31, 2023 | ||||
|---|---|---|---|---|
| (Dollars in thousands) | Banking Business | Securities Business | Corporate/Eliminations | Axos Consolidated |
| Goodwill | $35,721 | $61,952 | $— | $97,673 |
| Total Assets | $20,757,856 | $819,744 | $46,164 | $21,623,764 |
| As of June 30, 2023 | ||||
| (Dollars in thousands) | Banking Business | Securities Business | Corporate/Eliminations | Axos Consolidated |
| Goodwill | $35,721 | $61,952 | $— | $97,673 |
| Total Assets | $19,396,167 | $899,496 | $52,806 | $20,348,469 |
Revenue Information. The following presents non-interest income, segregated by revenue streams in-scope and out-of-scope of Accounting Standards Codification (“ASC”) 606 for the periods indicated. For further information of the Company’s recognition of revenue and ASC 606 see Note 1—“Organizations and Summary of Significant Accounting Policies” in the 2023 Form 10-K.
| For the Three Months Ended · For the Six Months Ended | ||||
|---|---|---|---|---|
| December 31, | December 31, | |||
| (Dollars in thousands) | 2023 | 2022 | 2023 | 2022 |
| Advisory fee income | $7,362 | $6,983 | $15,581 | $13,942 |
| Broker-dealer clearing fees | 6,068 | 4,425 | 11,603 | 9,658 |
| Deposit service fees | 2,414 | 2,202 | 3,094 | 3,308 |
| Card fees | 732 | 2,144 | 1,414 | 2,933 |
| Bankruptcy trustee and fiduciary service fees | 1,397 | 2,167 | 2,791 | 2,940 |
| Non-interest income (in-scope of ASC 606) | 17,973 | 17,921 | 34,483 | 32,781 |
| Non-interest income (out-of-scope of ASC 606) | 106,156 | 10,408 | 124,153 | 22,756 |
| Total non-interest income | $124,129 | $28,329 | $158,636 | $55,537 |
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.