Axos Financial, Inc.

Balance Sheet Analysis

Our total assets increased $4.5 billion, or 18.0%, to $29.2 billion at March 31, 2026, from $24.8 billion at June 30, 2025, primarily attributable to an increase in loans and available-for-sale securities, partially offset by lower cash and cash equivalents. Our total liabilities increased $4.1 billion, or 18.5%, to $26.2 billion at March 31, 2026 from $22.1 billion at June 30, 2025, primarily attributable to higher advances from the FHLB and higher deposit balances, as well as secured financings assumed as part of the Verdant acquisition.

Loans and Allowance for Credit Losses - Loans

The following table sets forth the composition of the loan portfolio:

Management establishes an allowance for credit losses based upon its evaluation of the expected lifetime credit losses related to the amortized cost basis of loans on the balance sheet. The net charge-off rate for the three months ended March 31, 2026 was 0.31%, compared to 0.09% for the three months ended March 31, 2025. The increase in the net charge-off rate was primarily driven by higher net charge-offs in the Commercial & Industrial - non-RE portfolio. For additional information regarding the Company’s allowance for credit losses, see Note 5—“Loans & Allowance for Credit Losses”in the accompanying interim condensed consolidated financial statements. For a discussion of the provision for credit losses for the three and nine months ended March 31, 2026, see Item 2—“Management's Discussion and Analysis of Financial Condition and Results of Operations—Results of Operations.”We believe that the lower average LTV in the loan portfolio will continue to result in future lower average mortgage loan charge-offs when compared to many other comparable banks.

Asset Quality

Non-performing Assets. Loans reaching 90 days past due are generally placed on nonaccrual status. Loans not yet reaching 90 days past due may be placed on nonaccrual status based on management’s assessment of the aging of contractual principal amounts due, among other factors. For an aging analysis of the Company’s loans held for investment as of March 31, 2026 and June 30, 2025, see Note 5—“Loans & Allowance for Credit Losses” in the accompanying interim condensed consolidated financial statements. Non-performing assets include nonaccrual loans plus other real estate owned and repossessed vehicles.

Non-performing assets consisted of the following:

Our non-performing assets increased to $181.1 million at March 31, 2026 from $175.4 million compared to June 30, 2025, as increases in the Commercial & Industrial - Non-RE and Single Family - Mortgage & Warehouse portfolios, were partially offset by a decrease in the Multifamily and Commercial Mortgage & Commercial Real Estate portfolios. Non-performing assets as a percentage of total assets decreased to 0.62% at March 31, 2026 from 0.71% at June 30, 2025.

Available-for-Sale Securities

Total available-for-sale securities were $801.4 million as of March 31, 2026, compared with $66.0 million at June 30, 2025. During the nine months ended March 31, 2026, we purchased $758.8 million of securities and we received principal repayments of $16.7 million. The remainder of the change for the available-for-sale securities portfolio is attributable to changes in the fair value of the securities.

Deposits

Deposits increased by $1.6 billion, or 7.5%, to $22.4 billion at March 31, 2026, from $20.8 billion at June 30, 2025. As of March 31, 2026 compared with June 30, 2025, interest-bearing demand and savings increased $1,665.3 million, non-interest-bearing deposits increased by $348.9 million and time deposits decreased $455.5 million.

The following table sets forth the composition of the deposit portfolio:

1 Total deposits includes brokered deposits of $1,992.6 million and $1,801.1 million as of March 31, 2026 and June 30, 2025, respectively, which include brokered time deposits of $277.0 million and $700.0 million as of March 31, 2026 and June 30, 2025, respectively.

The following table sets forth the number of deposit accounts by type:

Total deposits that exceeded the FDIC insurance limit or were not collateralized at March 31, 2026 and June 30, 2025 were $3.6 billion and $2.6 billion, respectively. The maturities of non-collateralized time deposits that exceeded the FDIC insurance limit were as follows:

Borrowings and Secured Financings

The following table sets forth the composition of our borrowings and the interest rates:

We regularly use advances from the FHLB to manage our interest rate risk and, to a lesser extent, manage our liquidity position. Generally, FHLB advances with terms between three and ten years have been used to fund the origination of loans and to provide us with interest rate risk protection should rates rise. During the three months ended March 31, 2026, the Company reduced certain higher-cost savings and time deposits in anticipation of the closing of the Jenius Bank deposit acquisition and temporarily replaced such funding with overnight FHLB advances. For additional information on the Jenius Bank deposit acquisition, see“Mergers and Acquisitions”herein.

On September 19, 2025, the Company completed the issuance of $200 million aggregate principal amount of the Company’s 2035 Notes, and on October 1, 2025, the Company completed the redemption of the $160.5 million aggregate principal amount outstanding of its 2030 Notes. For additional information see Note 12—“Borrowings, Subordinated Notes and Debentures”in the accompanying interim condensed consolidated financial statements.

Stockholders’ Equity

Stockholders’ equity increased $384.5 million to $3,065.2 million at March 31, 2026, compared to $2,680.7 million at June 30, 2025. The increase was primarily the result of net income for the nine months ended March 31, 2026 of $365.4 million.