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Axos Financial, Inc.

For the period ended Mar 31, 2026. Filed Apr 30, 2026.

View on SEC.gov

About 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.

Mar 31, 2026 · Filed Apr 30, 2026

AX$93.92+1.3%Stored close · as of Nov 9, 2026

Extracted filing text, with the paragraph anchors used by the comparison.

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Contents

SEGMENT RESULTS

Our Company determines reportable segments based on the services offered, the significance of the services offered, the significance of those services to our Company’s financial condition and operating results and management’s regular review of the operating results of those services. Our Company operates through two operating segments: the Banking Business Segment and the Securities Business Segment. In order to reconcile the two segments to the consolidated totals, our Company includes corporate activities and intercompany eliminations. 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.

The following tables present the operating results of the segments:

For the Three Months Ended March 31, 2026
(Dollars in thousands)Banking Business SegmentSecurities Business SegmentCorporate/EliminationsAxos Consolidated
Net interest income$303,445$7,860$(5,044)$306,261
Provision for credit losses41,000——41,000
Non-interest income64,09030,529(8,631)85,988
Non-interest expense152,67729,5163,760185,953
Income before income taxes$173,858$8,873$(17,435)$165,296
For the Three Months Ended March 31, 2025
(Dollars in thousands)Banking Business SegmentSecurities Business SegmentCorporate/EliminationsAxos Consolidated
Net interest income$272,260$6,942$(3,738)$275,464
Provision for credit losses14,500——14,500
Non-interest income12,66630,611(9,904)33,373
Non-interest expense118,32528,416(480)146,261
Income before income taxes$152,101$9,137$(13,162)$148,076
For the Nine Months Ended March 31, 2026
(Dollars in thousands)Banking Business SegmentSecurities Business SegmentCorporate/EliminationsAxos Consolidated
Net interest income$919,144$24,696$(14,820)$929,020
Provision for credit losses83,255——83,255
Non-interest income109,27790,157(27,728)171,706
Non-interest expense430,70787,9858,081526,773
Income before income taxes$514,459$26,868$(50,629)$490,698
For the Nine Months Ended March 31, 2025
(Dollars in thousands)Banking Business SegmentSecurities Business SegmentCorporate/EliminationsAxos Consolidated
Net interest income$837,472$21,216$(11,077)$847,611
Provision for credit losses40,748——40,748
Non-interest income24,20489,517(23,940)89,781
Non-interest expense351,17684,6853,185439,046
Income before income taxes$469,752$26,048$(38,202)$457,598

Banking Business Segment

For the three and nine months ended March 31, 2026, the Banking Business Segment had income before income taxes of $173.9 million and $514.5 million, respectively, compared to income before income taxes of $152.1 million and $469.8 million, respectively, for the three and nine months ended March 31, 2025.

For the three and nine months ended March 31, 2026, the Banking Business Segment’s net interest income increased $31.2 million, or 11.5%, and $81.7 million, or 9.8%, respectively, compared to net interest income for the three and nine months ended March 31, 2025. The increase in net interest income was primarily due to an increase in interest earned on loans, reflecting higher average balances, partially offset by a decrease in interest income on deposits in other financial institutions, primarily driven by lower average balances and lower rates earned. These increases were partially offset by an increase in interest expense, primarily on secured financings, attributable to the Verdant acquisition, as well as higher interest expense on advances from the FHLB.

For the three and nine months ended March 31, 2026, the Banking Business Segment’s non-interest income increased $51.4 million and $85.1 million, respectively, compared to non-interest income for the three and nine months ended March 31, 2025. The increase in non-interest income for the three and nine months ended March 31, 2026 was primarily due to a $22.0 million legal settlement in our favor reached in March 2026, and higher banking and servicing fee income, mainly attributable to the Verdant acquisition and commercial office complex operating lease rental income.

For the three and nine months ended March 31, 2026, the Banking Business Segment’s non-interest expense increased $34.4 million, or 29.0%, and $79.5 million, or 22.6%, respectively, compared to non-interest expense for the three and nine months ended March 31, 2025. The increase in non-interest expense for the three and nine months ended March 31, 2026 reflected higher depreciation and amortization expense, mainly as a result of the Verdant acquisition, and an increase in salaries and related costs, including as a result of the Verdant acquisition.

We consider the ratios shown in the table below to be key indicators of the performance of our Banking Business Segment:

For the Three Months Ended March 31,For the Nine Months Ended March 31,
2026202520262025
Efficiency ratio41.54%41.53%41.88%40.75%
Return on average assets1.87%1.97%1.89%2.01%
Interest rate spread3.96%3.98%4.06%4.04%
Net interest margin4.62%4.83%4.81%4.97%

Our Banking Business Segment’s net interest margin exceeds our consolidated net interest margin. Our consolidated net interest margin includes certain items that are not reflected in the calculation of our net interest margin within our Banking Business Segment and reduce our consolidated net interest margin, such as the borrowing costs at our Company and the yields and costs associated with certain items within interest-earning assets and interest-bearing liabilities in our Securities Business Segment, including items related to securities financing operations.

Securities Business Segment

For the three and nine months ended March 31, 2026, our Securities Business Segment had income before income taxes of $8.9 million and $26.9 million, respectively, compared to income before income taxes of $9.1 million and $26.0 million, respectively, for the three and nine months ended March 31, 2025.

For the three and nine months ended March 31, 2026, net interest income increased $0.9 million, or 13.2%, and $3.5 million, or 16.4%, respectively, compared to net interest income for the three and nine months ended March 31, 2025. The increases for the three and nine months ended March 31, 2026 were primarily attributable to higher broker-dealer interest income on increased stock lending activity and higher average balances.

For the three and nine months ended March 31, 2026, non-interest income decreased $0.1 million, or 0.3%, and increased $0.6 million, or 0.7%, respectively, compared to the three and nine months ended March 31, 2025. For the three months ended March 31, 2026, lower broker dealer fee income was partially offset by higher advisory fee income. For the nine months ended March 31, 2026, higher advisory fee income was partially offset by lower broker dealer fee income.

For the three and nine months ended March 31, 2026, non-interest expense increased $1.1 million or 3.9%, and $3.3 million, or 3.9%, respectively, compared to the three and nine months ended March 31, 2025. The increases primarily reflected higher data and operational processing and occupancy and equipment expenses.

The following table provides selected information for Axos Clearing:

(Dollars in thousands)March 31, 2026June 30, 2025
FDIC insured deposit program balances at banks$1,563,110$1,444,830
Margin balances$303,884$229,387
Cash reserves for the benefit of customers$83,645$146,835
Securities lending:
Interest-earning assets – securities borrowed$133,015$139,396
Interest-bearing liabilities – securities loaned$148,668$139,426
ContentsView on SEC.gov

The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.