Axos Financial, Inc.
For the period ended Jun 30, 2025. Filed Aug 21, 2025.
View on SEC.govAbout this filing
A company's yearly report to the SEC, with audited financial statements. It is the fullest account a company gives of its business, its finances and the risks it sees.
FY2025 · Filed Aug 21, 2025
Extracted filing text, with the paragraph anchors used by the comparison.
See the whole filing, with its images and exhibitsContents
6. Derivatives
- DERIVATIVES
The following table presents the fair values and notional amounts of the Company’s derivative instruments. While the notional amounts give an indication of the volume of the Company’s derivatives activity, the notional amounts significantly exceed, in the Company’s view, the possible losses that could arise from such transactions. For most derivative contracts, the notional amount is not exchanged, rather it is a reference amount used to calculate payments. As of June 30, 2024, there were no derivatives designated in hedge accounting relationships.
| June 30, 2025 · June 30, 2024 | ||||||
|---|---|---|---|---|---|---|
| Fair Value | Fair Value | |||||
| (Dollars in thousands) | Notional Amount | Derivative Assets | Derivative Liabilities | Notional Amount | Derivative Assets | Derivative Liabilities |
| Derivatives designated as hedging instruments | ||||||
| Interest rate contracts | $400,000 | $1,950 | $— | $— | $— | $— |
| Derivatives not designated as hedging instruments | ||||||
| Interest rate contracts1 | 2,761,021 | 15,782 | 68,427 | 2,435,874 | 106,796 | 102,949 |
| Foreign exchange contracts | 9,570 | 2 | 71 | — | — | — |
| Total derivatives | $3,170,591 | $17,734 | $68,498 | $2,435,874 | $106,796 | $102,949 |
1 Derivatives assets as of June 30, 2025 are presented net of $55.4 million of variation margin on centrally-cleared derivatives. As of June 30, 2024, derivative assets are presented gross of $85.2 million of variation margin on centrally-cleared derivatives as a result of an $87.9 million receivable from the FDIC related to the novation of certain interest rate swaps.
Derivatives designated as hedging instruments
The following table presents pre-tax gains/(losses) on derivative instruments used in cash flow hedge accounting relationships.
| For the Fiscal Year Ended June 30, | |||
|---|---|---|---|
| (Dollars in thousands) | 2025 | 2024 | 2023 |
| Amounts recorded in OCI | $5,448 | $— | $— |
| Amounts reclassified from AOCI to income | (3,749) | — | — |
| Total change in OCI for period | $1,699 | $— | $— |
The Company did not experience any forecasted transactions that failed to occur during the fiscal year ended June 30, 2025. There are no amounts excluded from the assessment of hedge effectiveness.
As of June 30, 2025, the Company expects that approximately $2.2 million of pre-tax net gain related to cash flow hedges recorded in AOCI will be recognized in income over the next 12 months. The maximum length of time over which forecasted transactions are hedged is approximately 2.3 years.
Derivatives not designated as hedging instruments
The following table presents the gains (losses) related to the Company’s derivative instrument activity recognized in the Consolidated Statements of Income:
| For the Fiscal Year Ended June 30, | |||
|---|---|---|---|
| (Dollars in thousands) | 2025 | 2024 | 2023 |
| Interest rate contracts | |||
| Banking and service fees | $(2,463) | $470 | $803 |
| Mortgage banking and servicing rights income | $(431) | $782 | $916 |
| Foreign exchange contracts | |||
| Banking and service fees | $(92) | — | $— |
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.