Axos Financial Inc
For the period ended Mar 31, 2025. Filed Apr 30, 2025.
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Mar 31, 2025 · Filed Apr 30, 2025
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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.
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 Segment and Securities Business Segment. 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. For more information on the Company’s operating segments, see Note 22—“Segment Reporting” in the 2024 Form 10-K.
In order to reconcile thetwo segments to the consolidated totals, the Company includes corporate activities and intercompany eliminations. The following tables present the operating results, goodwill, and assets of the segments:
| For the Three Months Ended March 31, 2025 | ||||
|---|---|---|---|---|
| (Dollars in thousands) | Banking Business Segment | Securities Business Segment | Corporate/Eliminations | Axos Consolidated |
| Net interest income | $272,260 | $6,942 | $(3,738) | $275,464 |
| Provision for credit losses | 14,500 | — | — | 14,500 |
| Non-interest income | 12,666 | 30,611 | (9,904) | 33,373 |
| Non-interest expense | 118,325 | 28,416 | (480) | 146,261 |
| Income before taxes | $152,101 | $9,137 | $(13,162) | $148,076 |
| For the Three Months Ended March 31, 2024 | ||||
| (Dollars in thousands) | Banking Business Segment | Securities Business Segment | Corporate/Eliminations | Axos Consolidated |
| Net interest income | $258,435 | $7,133 | $(3,962) | $261,606 |
| Provision for credit losses | 6,000 | — | — | 6,000 |
| Non-interest income | 11,908 | 32,746 | (11,491) | 33,163 |
| Non-interest expense | 104,959 | 32,488 | (4,219) | 133,228 |
| Income before taxes | $159,384 | $7,391 | $(11,234) | $155,541 |
| For the Nine Months Ended March 31, 2025 | ||||
| (Dollars in thousands) | Banking Business Segment | Securities Business Segment | Corporate/Eliminations | Axos Consolidated |
| Net interest income | $837,472 | $21,216 | $(11,077) | $847,611 |
| Provision for credit losses | 40,748 | — | — | 40,748 |
| Non-interest income | 24,204 | 89,517 | (23,940) | 89,781 |
| Non-interest expense | 351,176 | 84,685 | 3,185 | 439,046 |
| Income before taxes | $469,752 | $26,048 | $(38,202) | $457,598 |
| For the Nine Months Ended March 31, 2024 | ||||
| (Dollars in thousands) | Banking Business Segment | Securities Business Segment | Corporate/Eliminations | Axos Consolidated |
| Net interest income | $694,289 | $18,755 | $(11,677) | $701,367 |
| Provision for credit losses | 26,500 | — | — | 26,500 |
| Non-interest income | 128,244 | 99,942 | (36,387) | 191,799 |
| Non-interest expense | 308,027 | 87,979 | (20,433) | 375,573 |
| Income before taxes | $488,006 | $30,718 | $(27,631) | $491,093 |
| As of March 31, 2025 | ||||
| (Dollars in thousands) | Banking Business Segment | Securities Business Segment | Corporate/Eliminations | Axos Consolidated |
| Goodwill | $35,721 | $59,953 | $1,999 | $97,673 |
| Total Assets | $23,206,934 | $767,441 | $6,779 | $23,981,154 |
| As of June 30, 2024 | ||||
| (Dollars in thousands) | Banking Business Segment | Securities Business Segment | Corporate/Eliminations | Axos Consolidated |
| Goodwill | $35,721 | $59,953 | $1,999 | $97,673 |
| Total Assets | $22,165,627 | $649,254 | $40,453 | $22,855,334 |
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 additional information on the Company’s recognition of revenue and ASC 606, see Note 1—“Organizations and Summary of Significant Accounting Policies” in the 2024 Form 10-K.
| For the Three Months Ended · For the Nine Months Ended | ||||
|---|---|---|---|---|
| March 31, | March 31, | |||
| (Dollars in thousands) | 2025 | 2024 | 2025 | 2024 |
| Advisory fee income | $8,120 | $8,105 | $24,047 | $23,686 |
| Broker-dealer clearing fees | 6,002 | 4,885 | 16,780 | 16,488 |
| Deposit service fees | 924 | 525 | 4,234 | 3,619 |
| Card fees | 589 | 495 | 2,195 | 1,909 |
| Bankruptcy trustee and fiduciary service fees | 351 | 1,418 | 2,746 | 4,209 |
| Non-interest income (in-scope of ASC 606) | 15,986 | 15,428 | 50,002 | 49,911 |
| Non-interest income (out-of-scope of ASC 606) | 17,387 | 17,735 | 39,779 | 141,888 |
| Total non-interest income | $33,373 | $33,163 | $89,781 | $191,799 |
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