Axos Financial Inc

Cash flow information is as follows:

During the six months ended December 31, 2023, we had net cash inflows from operating activities of $147.1 million compared to inflows of $177.1 million for the six months ended December 31, 2022. Net operating cash inflows and outflows fluctuate primarily due to the timing of the following: originations of loans held for sale, proceeds from loan sales, securities borrowed and loaned, and customer, broker-dealer and clearing receivables and payables and changes in other assets and payables.

Net cash outflows from investing activities totaled $1,736.2 million for the six months ended December 31, 2023, while outflows totaled $1,411.4 million for the six months ended December 31, 2022. The increase in outflows was primarily due to higher principal repayments, partially offset by increased originations and purchases of loans held for investment related to the FDIC Loan Purchase and acquisition of marine floor financing loans in the six months ended December 31, 2023.

Net cash inflows from financing activities totaled $970.8 million for the six months ended December 31, 2023, compared to net cash inflows from financing activities of $1,612.1 million for the six months ended December 31, 2022. The primary driver behind the decrease in net cash inflows was a lower net increase in deposits in the six months ended December 31, 2023.

As of December 31, 2023, the Bank could borrow up to 35% of its total assets from the FHLB. Borrowings are collateralized by the pledge of certain mortgage loans and available-for-sale securities to the FHLB. At December 31, 2023, the Company had $2,696.7 million available immediately and $4,080.8 million available with additional collateral and the Company had $5,155.8 million of loans and $159.2 thousand of securities pledged to the FHLB. We also had 5 unsecured federal funds purchase lines with five different banks totaling $250.0 million, under which no borrowings were outstanding at December 31, 2023.

The Bank has the ability to borrow short-term from the FRBSF Discount Window. At December 31, 2023, the Bank did not have any borrowings outstanding and the amount available from this source was $3,136.1 million. The credit line is collateralized by consumer loans and mortgage-backed securities. At December 31, 2023 we had $3,915.0 million of loans pledged to the FRBSF.

Axos Clearing has a $150 million secured line of credit available for borrowing, as needed. As of December 31, 2023, there was $6 million outstanding on this credit facility. This credit facility bears interest at rates based on the Federal Funds rate and is due upon demand.

Axos Clearing also has $210 million of unsecured lines of credit available for limited purpose borrowing, which includes $100 million from Axos Financial, Inc. As of December 31, 2023, there was no amount outstanding on this credit facility. This credit facility bears interest at rates based on the Federal Funds rate and is due upon demand.

We view our liquidity sources to be stable and adequate for our anticipated needs and contingencies for both the short- and long-term. Due to the diversified sources of our deposits, while maintaining approximately 90% of our total Bank deposits in insured or collateralized accounts as of December 31, 2023, we believe we have the ability to increase our level of deposits, and have available other potential sources of funding, to address our liquidity needs for the foreseeable future.