Axos Financial, Inc.
For the period ended Jun 30, 2026. Filed Aug 20, 2026.
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.
FY2026 · Filed Aug 20, 2026
AX$92.67+0.2%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-K
Period ended 2025-06-30; filed 2025-08-21.
0001299709-25-000125
Item 7. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-K
Period ended 2026-06-30; filed 2026-08-20.
0001299709-26-000060
Item 7. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 120 previous paragraphs and 129 current paragraphs.
62 unchanged; 50 reworded; 16 added; 8 removed; 0 previous and 1 current paragraphs rearranged.
Tables are not compared: 27 previous and 26 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (16)
Current report
On September 30, 2025, the Company completed the acquisition of 100% of the membership interests in Verdant Commercial Capital, LLC (“Verdant”) in an all-cash transaction, which increases the Company’s scale and enhances the Company’s existing equipment leasing business. As part of the acquisition, the Company acquired, among other assets and liabilities, approximately $1.0 billion of loans and leases (including $211.0 million of PCD assets) and $212.6 million of equipment under operating lease arrangements.
Current report
On January 23, 2026, the Company purchased a multi-building commercial office complex and associated amenities located in San Diego, California for approximately $125 million, which Axos Bank intends to occupy as its headquarters in the future.
Current report
On April 22, 2026, the Bank entered into a purchase and assumption agreement with Capital One, National Association to acquire approximately $3.2 billion of deposits, comprising IRA savings and IRA certificate of deposit accounts. The deposit acquisition was approved by the Office of the Comptroller of the Currency on June 8, 2026, and is expected to close in calendar year 2026.
Current report
On May 2, 2026, the Bank completed its previously announced acquisition of all of the United States consumer deposits of Jenius Bank, a digital banking business of SMBC MANUBANK (“SMBC”), pursuant to the terms of the Purchase and Assumption Agreement, dated February 12, 2026. The Bank acquired approximately $2.3 billion of deposits from Jenius Bank and received cash, less a negotiated premium.
Current report
1 Favorable legal settlement reflects the recognition of a legal settlement in the Company’s favor reached in March 2026.
Current report
2 Acquisition-related costs includes amortization of intangible assets, and for the fiscal year ended June 30, 2026, also includes $1.3 million of acquisition-related costs associated with the Verdant acquisition.
Current report
Interest Income. For fiscal year 2026, interest income increased $141.5 million, or 7.8%, compared to interest income in fiscal year 2025, primarily due to an increase in interest income on loans, primarily reflecting higher average loan balances, partially offset by lower rates earned. This increase in interest and dividend income was partially offset by a $59.1 million decrease in interest income on interest-earning deposits at other financial institutions primarily driven by lower average balances and lower rates earned.
Current report
For fiscal year 2026, non-interest income increased $102.5 million, or 78.2% compared to non-interest income in fiscal year 2025. The increase was primarily due to an increase in banking and servicing fee income, mainly attributable to:
Current report
•Operating lease rental and other income from the Verdant acquisition;
Current report
•A $22.0 million legal settlement in our favor reached in March 2026; and
Current report
• Commercial office complex operating lease rental income.
Current report
•$51.6 million in depreciation and amortization primarily due to depreciation on equipment under operating leases following the Verdant acquisition;
Current report
•$42.8 million in general and administrative expense reflecting a $21.0 million accrual related to a FINRA arbitration matter, a $7.0 million accrual in the current year for developments in a matter related to the Company’s acquisition of COR Securities in fiscal year 2019 and higher loan and lease servicing expenses following the Verdant acquisition; and
Current report
For the fiscal year 2026, the Banking Business Segment’s non-interest income increased $103.5 million, or 223.0%, compared to non-interest income in fiscal year 2025. The increase in non-interest income was primarily due to higher banking and servicing fee income, mainly attributable to the Verdant acquisition and commercial office complex operating lease rental income, and a $22.0 million legal settlement in our favor reached in March 2026.
Current report
2 United States Treasury securities are hedged via interest rate swaps effectively converting fixed interest rate coupons to a floating interest rate.
Current report
As of June 30, 2026, the Company and its subsidiaries were in compliance with all covenants associated with its outstanding borrowings and lines of credit.
Removed paragraphs (8)
Previous report
Interest Income. For fiscal year 2025, interest income increased $159.9 million, or 9.7%, compared to interest income in fiscal year 2024, primarily reflecting higher interest earned on loans, mainly attributable to higher loan balances.
Previous report
For fiscal year 2025, non-interest income decreased $91.6 million, or 41.1% compared to non-interest income in fiscal year 2024. The decrease was primarily the result of the absence of the gain on the FDIC Loan Purchase as compared to fiscal year 2024, as well as a decrease in broker-dealer fee income on lower rates earned on cash sorting balances. These decreases were partially offset by an increase in mortgage banking and servicing rights income, reflecting net gains on loan sales in fiscal year 2025, and higher banking and service fees.
Previous report
•$11.1 million in data and operational processing expense to support the Company’s growth and continued investments in technology; and
Previous report
•$7.0 million in FDIC and regulatory fees primarily due to higher FDIC assessments, reflecting growth in deposits as well as special assessments in response to failures of other financial institutions.
Previous report
Banking Business Segment
Previous report
For the fiscal year 2025, the Banking Business Segment’s non-interest income decreased $92.6 million, or 66.6%, compared to non-interest income in fiscal year 2024. The decrease in non-interest income was primarily the result of the absence of the gain on the FDIC Loan Purchase as compared to fiscal year 2024.
Previous report
Securities Business Segment
Previous report
The net capital position of Axos Clearing was as follows:
Reworded paragraphs (50)
Previous wording
The Consolidated Financial Statements include the accounts of Axos Financial, Inc. (“Axos”) and its wholly owned subsidiaries, Axos Bank (the “Bank” or “Axos Bank”) and Axos Nevada Holding, LLC (“Axos Nevada Holding”), collectively, the “Company.” Axos, the Bank, three lending-related entities and Axos Nevada Holding comprise substantially all of the Company’s assets and liabilities and revenues and expenses. The Bank, its wholly owned subsidiaries, and the activities of three lending-related entities, constitute the Banking Business Segment. Axos Nevada Holding owns Axos Securities, LLC, which owns Axos Clearing LLC (“Axos Clearing”), a clearing broker-dealer, Axos Invest, Inc., a registered investment advisor, and Axos Invest LLC, an introducing broker-dealer. Axos Securities, LLC and its consolidated subsidiaries constitute the Securities Business Segment. Axos Bank provides consumer and business banking products through its low-cost distribution channels and affinity partners. Axos Clearing and Axos Invest LLC, provide comprehensive securities clearing services to introducing broker-dealers and registered investment advisor correspondents and digital investment advisory services to retail investors, respectively. Axos Financial, Inc.’s common stock is listed on the NYSE under the symbol “AX” and is a component of the Russell 2000® Index and the S&P SmallCap 600® Index, among other indices.
Current wording
The Consolidated Financial Statements include the accounts of Axos Financial, Inc. (“Axos”) and its wholly owned subsidiaries, Axos Bank (the “Bank” or “Axos Bank”) and Axos Nevada Holding, LLC (“Axos Nevada Holding”), collectively, the “Company.” Axos, the Bank, three lending-related entities and Axos Nevada Holding comprise substantially all of the Company’s assets and liabilities and revenues and expenses. The Bank, its wholly owned subsidiaries, three lending-related entities and certain other lending activities constitute the Banking Business Segment. Axos Nevada Holding owns Axos Securities, LLC, which owns Axos Clearing LLC (“Axos Clearing”), a clearing broker-dealer, Axos Invest, Inc., a registered investment advisor, and Axos Invest LLC, an introducing broker-dealer. Axos Securities, LLC and its consolidated subsidiaries constitute the Securities Business Segment. Axos Bank provides consumer and business banking products through its low-cost distribution channels and affinity partners. Axos Clearing and Axos Invest LLC, provide comprehensive securities clearing services to introducing broker-dealers and registered investment advisor correspondents and digital investment advisory services to retail investors, respectively. Axos Financial, Inc.’s common stock is listed on the New York Stock Exchange under the ticker symbol “AX” and is a component of the Russell 2000® Index and the S&P SmallCap 600® Index, among other indices.
Previous wording
From time to time, we undertake acquisitions or similar transactions consistent with our operating and growth strategies. On August 23, 2023, the Company acquired approximately $52 million of marine floor financing loans at par value along with other assets for an additional $2 million, primarily consisting of servicing rights as well as certain employees. The transaction was accounted for as an asset acquisition and such assets are included in the Company’s Consolidated Balance Sheets as of June 30, 2025.
Current wording
From time to time, we undertake acquisitions or similar transactions consistent with our operating and growth strategies. On August 23, 2023, the Company acquired approximately $52 million of marine floor financing loans at par value along with other assets for an additional $2 million, primarily consisting of servicing rights as well as certain employees. The transaction was accounted for as an asset acquisition and such assets are included in the Company’s Consolidated Balance Sheets.
Previous wording
There were no other significant acquisitions undertaken during fiscal years 2025, 2024 or 2023.
Current wording
For additional information on these acquisitions, see Note 2—”Acquisitions.”There were no other significant acquisitions during fiscal years 2026, 2025 or 2024.
Previous wording
The following discussion and analysis of our financial condition and results of operations is based upon our Consolidated Financial Statements and the notes thereto, which have been prepared in accordance with accounting principles generally accepted in the United States of America. The preparation of these Consolidated Financial Statements requires us to make a number of estimates and assumptions that affect the reported amounts and disclosures in the Consolidated Financial Statements. On an ongoing basis, we evaluate our estimates and assumptions based upon historical experience and various factors and circumstances. We believe that our estimates and assumptions are reasonable under the circumstances. However, actual results may differ significantly from these estimates and assumptions that could have a material effect on the carrying value of assets and liabilities at the balance sheet dates and our results of operations for the reporting periods.
Current wording
The following discussion and analysis of our financial condition and results of operations is based upon our Consolidated Financial Statements and the notes thereto, which have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). The preparation of these Consolidated Financial Statements requires us to make a number of estimates and assumptions that affect the reported amounts and disclosures in the Consolidated Financial Statements. On an ongoing basis, we evaluate our estimates and assumptions based upon historical experience and various factors and circumstances. We believe that our estimates and assumptions are reasonable under the circumstances. However, actual results may differ significantly from these estimates and assumptions that could have a material effect on the carrying value of assets and liabilities at the balance sheet dates and our results of operations for the reporting periods.
Previous wording
Allowance for Credit Losses. The Company maintains an allowance for credit losses for its held-for-investment loan and net investment in leases portfolio as well as lending commitments, excluding loans measured at fair value in accordance with applicable accounting standards, which represents management’s estimate of the expected lifetime credit losses on the loans and net investment in leases. The estimate of the allowance for credit losses includes both a quantitative and qualitative assessment, both of which include variables that are subject to uncertainty.
Current wording
Allowance for Credit Losses. The Company maintains an allowance for credit losses (“ACL”) for its held-for-investment loan and net investment in leases portfolio as well as lending commitments, excluding loans measured at fair value in accordance with applicable accounting standards, which represents management’s estimate of the expected lifetime credit losses on the loans and net investment in leases. The estimate of the allowance for credit losses includes both a quantitative and qualitative assessment, both of which include variables that are subject to uncertainty.
Previous wording
The quantitative assessment reflects modeled outputs utilizing economic scenarios and forecasts, which are subject to uncertainty, and is also based on the Company’s current and expected future economic outlook. Key economic variables considered in the quantitative assessment include factors such as the U.S. unemployment rate and interest rates, both of which impact the default rate of the loan pools. Additionally, the results of the quantitative assessment are impacted by the third-party macroeconomic forecasts across various economic scenarios. The Company periodically reviews and adjusts the weighting of scenarios based on management’s allowance for credit losses (“ACL”) framework. Adjustment of scenario weighting away from the baseline scenario to the adverse scenario should increase the allowance for credit losses on the Company’s held-for-investment loan and net investment in leases portfolio, all else remaining equal. Economic forecasts that impacted management’s assessment of scenario weightings included interest rates, inflation, changes in trade policies, and geopolitical unrest. Changes in one or more of these variables can cause a significant change in the estimate of the allowance for credit losses.
Current wording
The quantitative assessment reflects modeled outputs utilizing economic scenarios and forecasts, which are subject to uncertainty, and is also based on the Company’s current and expected future economic outlook. Key economic variables considered in the quantitative assessment include factors such as the U.S. unemployment rate and interest rates, both of which impact the default rate of the loan pools. Additionally, the results of the quantitative assessment are impacted by the third-party macroeconomic forecasts across various economic scenarios. The Company periodically reviews and adjusts the weighting of scenarios based on management’s ACL framework. Adjustment of scenario weighting away from the baseline scenario to the adverse scenario should increase the ACL on the Company’s held-for-investment loan and net investment in leases portfolio, all else remaining equal. Economic forecasts that impacted management’s assessment of scenario weightings included, among other forecasts, interest rates, inflation, changes in trade policies, and geopolitical unrest. Changes in one or more of these variables can cause a significant change in the estimate of the ACL.
Previous wording
For further information on the allowance for credit losses, refer to Note 1—“Organizations and Summary of Significant Accounting Policies” and Note 5—“Loans & Allowance for Credit Losses” in the Consolidated Financial Statements.
Current wording
For further information on the ACL, refer to Note 1—“Organizations and Summary of Significant Accounting Policies” and Note 5—“Loans & Allowance for Credit Losses” in the Consolidated Financial Statements.
Previous wording
We define “adjusted earnings,” a non-GAAP financial measure, as net income without the after-tax impact of non-recurring acquisition-related items (including amortization of intangible assets related to acquisitions and certain gains and provisions resulting from the Company’s FDIC Loan Purchase), and other costs (unusual or non-recurring charges). Adjusted earnings per diluted common share (“adjusted EPS”) is calculated by dividing non-GAAP adjusted earnings by the average number of diluted common shares outstanding during the period. We believe the non-GAAP measures of adjusted earnings and adjusted EPS provide useful information about the Company’s operating performance. We believe excluding the non-recurring acquisition-related costs, and other costs provides investors with an alternative understanding our core business.
Current wording
We define “adjusted earnings”, a non-GAAP financial measure, as net income without the after-tax impact of non-recurring acquisition-related items (including amortization of intangible assets related to acquisitions) and other costs (unusual or non-recurring charges). Adjusted EPS, a non-GAAP financial measure, is calculated by dividing non-GAAP adjusted earnings by the average number of diluted common shares outstanding during the period. We believe the non-GAAP measures of adjusted earnings and adjusted EPS provide useful information about the Company’s operating performance. We believe excluding the non-recurring acquisition-related costs, and other costs provides investors with an alternative understanding of our core business.
Previous wording
1 Other costs for the fiscal year ended 2025 primarily reflects the payment of a legal judgment at an amount less than previously accrued and for the fiscal year ended June 30, 2023 reflects the original accrual for such legal judgment.
Current wording
3 Other costs for the fiscal year ended 2025 primarily reflects the payment of a legal judgment at an amount less than previously accrued.
Previous wording
5 The decrease in the allowance for credit losses - loans to nonaccrual loans as of June 30, 2025 is primarily attributable to the change in nonaccrual loans.
Current wording
5 The increase in Allowance for credit losses - loans to nonaccrual loans as of June 30, 2026, is attributable to an increase in the allowance for credit losses - loans and a decrease in nonaccrual loans.
Previous wording
Our results of operations depend on our net interest income, which is the difference between interest income on interest-earning assets and interest expense on interest-bearing liabilities. Our net interest income is subject to competitive factors in online banking and other markets. Our net interest income is reduced by our current estimate of credit losses. We earn non-interest income primarily from mortgage banking activities, banking products and service activity, asset custody services, broker-dealer clearing and related services, prepayment fee income from multifamily and commercial borrowers who repay their loans before maturity and from gains on sales of other loans and available-for-sale securities. Losses on sales of available-for-sale securities reduce non-interest income. The largest component of non-interest expense is salary and benefits, which is a function of the number of personnel, which increased to 1,989 full-time employees at June 30, 2025, from 1,781 full-time employees at June 30, 2024. We are subject to federal and state income taxes, and our effective tax rates were 29.42%, 29.19% and 28.85% for the fiscal years ended June 30, 2025, 2024, and 2023, respectively. Other factors that affect our results of operations include expenses relating to data and operational processing, advertising, depreciation, occupancy, professional services, and other miscellaneous expenses.
Current wording
Our results of operations depend on our net interest income, which is the difference between interest income on interest-earning assets and interest expense on interest-bearing liabilities. Our net interest income is subject to competitive factors in online banking and other markets. Our net interest income is reduced by our current estimate of credit losses. We earn non-interest income primarily from mortgage banking activities, banking products and service activity, asset custody services, broker-dealer clearing and related services, operating lease income, prepayment fee income from multifamily and commercial borrowers who repay their loans before maturity and from gains on sales of other loans and available-for-sale securities. Losses on sales of available-for-sale securities reduce non-interest income. The largest component of non-interest expense is salary and benefits, which is a function of the number of personnel, which increased to 2,191 full-time employees at June 30, 2026, from 1,989 full-time employees at June 30, 2025. We are subject to federal and state income taxes, and our effective tax rates were 24.17%, 29.42% and 29.19% for the fiscal years ended June 30, 2026, 2025, and 2024, respectively. Other factors that affect our results of operations include expenses relating to data and operational processing, advertising, depreciation, occupancy, professional services, and other miscellaneous expenses.
Previous wording
Interest Expense. For fiscal year 2025, interest expense decreased $6.5 million, or 0.9% compared to interest expense in fiscal year 2024, primarily attributable to lower rates on interest bearing demand and savings deposits and lower average time deposits, advances from the FHLB, and other borrowings. These decreases were partially offset by higher interest-bearing demand and savings deposit balances.
Current wording
Interest Expense. For fiscal year 2026, interest expense increased $22.3 million, or 3.2% compared to interest expense in fiscal year 2025, primarily attributable to an increase in interest expense on secured financings, attributable to the Verdant acquisition, an increase in interest expense on advances from the FHLB and other borrowings. These increases were partially offset by a decrease in interest expense on demand and savings deposits driven by lower rates paid.
Previous wording
Provision for Credit Losses. For fiscal year 2025, provision for credit losses increased $23.2 million compared to the provision for credit losses in fiscal year 2024. See “Asset Quality and Allowance for Credit Losses - Loans” for discussion of our allowance for credit losses and the related provision for credit losses.
Current wording
Provision for Credit Losses. For fiscal year 2026, provision for credit losses increased $45.4 million compared to the provision for credit losses in fiscal year 2025. See “Asset Quality and Allowance for Credit Losses - Loans” for discussion of our allowance for credit losses and the related provision for credit losses.
Previous wording
For fiscal year 2025, non-interest expense increased $73.6 million, or 14.3%, compared to fiscal year 2024, primarily due to increases of:
Current wording
For fiscal year 2026, non-interest expense increased $143.0 million, or 24.3%, compared to fiscal year 2025, primarily due to increases of:
Previous wording
•$47.1 million in salaries and related costs primarily due to increased headcount and salaries to support continued growth in the business;
Current wording
•$25.1 million in salaries and related costs primarily due to increased headcount and salaries, including the impact of the Verdant acquisition.
Previous wording
Income Tax Expense. For fiscal year 2025, income tax expense decreased $5.0 million, or 2.7% compared to income tax expense in fiscal year 2024. The fiscal year 2025 effective tax rate of 29.42%, increased by 0.23% compared to fiscal year 2024. The Company received federal and state tax credits for both fiscal years ended June 30, 2025 and 2024. These tax credits decreased the effective tax rate by approximately 0.43% and 0.58%, respectively. Additionally, in June 2025, the State of California adopted its fiscal year 2026 budget, which, among other things, changed the way financial institutions’ multi-state income is apportioned to the State of California. The change required the Company to remeasure its California deferred tax asset and resulted in revaluation of $5.5 million recognized in the fiscal year ended June 30, 2025. The Company estimates the effective tax rate for fiscal years under this tax law will be reduced by approximately 3% compared to the effective tax rate prior to the change in the State of California tax law.
Current wording
Income Tax Expense. For fiscal year 2026, income tax expense decreased $24.2 million, or 13.4% compared to income tax expense in fiscal year 2025. The fiscal year 2026 effective tax rate of 24.17%, decreased by 5.25% compared to fiscal year 2025. The primary driver of the decrease in the effective tax rate in fiscal year 2026 compared to fiscal year 2025, was lower state and local income taxes, including the effect of the changes in the State of California tax laws passed in June 2025, as well as higher income tax credits. For fiscal years ended June 30, 2026 and 2025, these income tax credits decreased the effective tax rate by 1.23% and 0.46%, respectively.
Previous wording
The Company determines reportable segments based on the services offered, the significance of the services offered, the significance of those services to the Company’s financial condition and operating results and management’s regular review of the operating results of those services. The 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, the Company includes parent-only 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.
Current wording
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.
Previous wording
For the fiscal year ended June 30, 2025, Banking Business Segment had pre-tax income of $631.3 million compared to pre-tax income of $638.7 million for the fiscal year ended June 30, 2024. For the fiscal year ended June 30, 2025, the decrease in pre-tax income was primarily related to the absence of the gain on the FDIC Loan Purchase as compared to fiscal year 2024 and a higher provision for credit losses, partially offset by higher net interest income.
Current wording
For the fiscal year ended June 30, 2026, Banking Business Segment had pre-tax income of $697.3 million compared to pre-tax income of $631.3 million for the fiscal year ended June 30, 2025.
Previous wording
For the fiscal year 2025, the Banking Business Segment’s net interest income increased $163.3 million, or 17.2%, compared to net interest income in fiscal year 2024. The increase in net interest income is reflective of higher interest earned on loans, mainly attributable to higher loan balances, as well as lower rates on demand and savings deposits and lower average time deposits and advances from the FHLB. These decreases were partially offset by higher interest-bearing demand and savings deposit balances.
Current wording
For the fiscal year 2026, the Banking Business Segment’s net interest income increased $116.9 million, or 10.5%, compared to net interest income in fiscal year 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 on secured financings, attributable to the Verdant acquisition, and an increase in interest expense on advances from the FHLB. These increases were partially offset by a decrease in interest expense on demand and savings deposits.
Previous wording
For the fiscal year 2025, the Banking Business Segment’s non-interest expense increased $54.9 million, or 13.1%, compared to non-interest expense in fiscal 2024. The increase in non-interest expense was primarily driven by higher salaries and related costs.
Current wording
For the fiscal year 2026, the Banking Business Segment’s non-interest expense increased $109.2 million, or 23.1%, compared to non-interest expense in fiscal 2025. The increase in non-interest expense was primarily driven by higher depreciation and amortization expense, mainly as a result of the Verdant acquisition, and an increase in salaries and related costs, including the impact of the Verdant acquisition.
Previous wording
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 the Company and the yields and costs associated with certain items within interest-earning assets and interest-bearing liabilities in our Securities Business Segment, including those related to securities financing operations.
Current wording
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.
Previous wording
For the fiscal year ended June 30, 2025, our Securities Business Segment had income before taxes of $32.9 million compared to income before taxes of $40.1 million for the fiscal year ended June 30, 2024.
Current wording
For the fiscal year ended June 30, 2026, our Securities Business Segment had income before taxes of $15.4 million compared to income before taxes of $32.9 million for the fiscal year ended June 30, 2025.
Previous wording
For the fiscal year 2025, the Securities Business Segment’s net interest income increased $2.2 million, or 8.5%, compared to fiscal year 2024, resulting from higher net interest income earned in securities lending activities and lower interest expense on borrowings. In the Securities Business Segment, interest is earned through margin loan balances, securities borrowed and cash deposit balances. Interest expense is incurred from cash borrowed through bank lines and securities lending.
Current wording
For the fiscal year 2026, the Securities Business Segment’s net interest income increased $7.2 million, or 25.5%, compared to fiscal year 2025, resulting from higher broker-dealer interest income on increased stock lending activity and higher average balances. In the Securities Business Segment, interest is earned through margin loan balances, securities borrowed and cash deposit balances. Interest expense is incurred from cash borrowed through bank lines and securities lending.
Previous wording
For the fiscal year 2025, the Securities Business Segment’s non-interest income decreased $9.9 million, or 7.7%, compared to fiscal year 2024, primarily attributable to lower broker-dealer fee income on lower rates earned on cash sorting balances.
Current wording
For the fiscal year 2026, the Securities Business Segment’s non-interest income increased $1.7 million, or 1.4%, compared to fiscal year 2025, primarily attributable to higher advisory fee income, partially offset by lower broker-dealer fee income.
Previous wording
For the fiscal year 2025, the Securities Business Segment’s non-interest expense decreased $0.5 million, or 0.4%, compared to non-interest expense in fiscal year ended June 30, 2024, primarily related to lower broker-dealer clearing charges.
Current wording
For the fiscal year 2026, the Securities Business Segment’s non-interest expense increased $26.5 million, or 23.1%, compared to non-interest expense in fiscal year ended June 30, 2025, primarily related to a $21.0 million accrual related to a FINRA arbitration matter and higher data and operational processing expense.
Previous wording
Our total assets increased $1.9 billion, or 8.4%, to $24.8 billion, as of June 30, 2025, up from $22.9 billion at June 30, 2024. The increase in total assets primarily reflects growth in total loans of $1.8 billion on a net basis, driven by increases in the commercial & industrial - non-RE and commercial real estate portfolios. Total liabilities increased by $1.5 billion or 7.5%, to $22.1 billion at June 30, 2025, up from $20.6 billion at June 30, 2024. The increase in total liabilities primarily reflects growth in deposits of $1.5 billion. Stockholders’ equity increased by $390.1 million, or 17.0%, to $2.7 billion at June 30, 2025, up from $2.3 billion at June 30, 2024. The increase in stockholders’ equity primarily reflects net income of $432.9 million, partially offset by repurchases of $58.5 million of common stock.
Current wording
Our total assets increased $5.2 billion, or 20.9%, to $30.0 billion, as of June 30, 2026, up from $24.8 billion at June 30, 2025. The increase in total assets primarily reflects growth in total loans of $4.5 billion on a net basis, driven by increases in the commercial & industrial - non-RE, including the impact of the Verdant acquisition, and commercial real estate portfolios. Total liabilities increased by $4.7 billion or 21.2%, to $26.8 billion at June 30, 2026, up from $22.1 billion at June 30, 2025. The increase in total liabilities primarily reflects growth in deposits of $3.7 billion. Stockholders’ equity increased by $485.7 million, or 18.1%, to $3.2 billion at June 30, 2026, up from $2.7 billion at June 30, 2025. The increase in stockholders’ equity primarily reflects net income of $490.4 million, partially offset by repurchases of $22.0 million of common stock.
Previous wording
2 Consists of loans secured by real property in California with ZIP Code ranges from 93000 to 96161.
Current wording
2 Consists of loans secured by real property in California with ZIP Code ranges from 93000 to 96162.
Previous wording
Our non-performing assets increased to $175.4 million at June 30, 2025 from $115.8 million at June 30, 2024. The increase in non-performing assets during the fiscal year ended June 30, 2025 was primarily the result of an increase in non-accrual loans of $57.0 million, specifically commercial & industrial - Non-RE, and an increase in other real estate owned and repossessed vehicles of $2.6 million. Non-performing assets as a percentage of total assets increased to 0.71% at June 30, 2025 from 0.51% at June 30, 2024.
Current wording
Our non-performing assets decreased to $159.0 million at June 30, 2026 from $175.4 million at June 30, 2025. The decrease in non-performing assets during the fiscal year ended June 30, 2026 was primarily the result of a decrease in non-accrual loans of $13.3 million, primarily in multifamily and commercial mortgage and commercial real estate, partially offset by increases in commercial & industrial - non-RE and single family - mortgage & warehouse. Non-performing assets as a percentage of total assets decreased to 0.53% at June 30, 2026 from 0.71% at June 30, 2025.
Previous wording
The Company’s allowance for credit losses increased $29.5 million or 11.3% at June 30, 2025 from June 30, 2024. As a percentage of the outstanding loan balance, the Company’s allowance was 1.36% and 1.34% at June 30, 2025 and 2024, respectively. Provisions for credit losses were $55.1 million and $32.8 million for fiscal year 2025 and 2024, respectively. For a discussion of the changes in the allowance for credit losses in fiscal year 2025, see Note 5—“Loans & Allowance for Credit Losses”in the Consolidated Financial Statements.
Current wording
The Company’s allowance for credit losses increased $57.3 million or 19.8% at June 30, 2026 from June 30, 2025. As a percentage of the outstanding loan balance, the Company’s allowance was 1.34% and 1.36% at June 30, 2026 and 2025, respectively. Provisions for credit losses were $92.7 million and $55.1 million for fiscal year 2026 and 2025, respectively. For a discussion of the changes in the allowance for credit losses in fiscal year 2026, see Note 5—“Loans & Allowance for Credit Losses”in the Consolidated Financial Statements.
Previous wording
For fiscal year 2024, net charge-offs were $9.0 million and increased $2.3 million compared to net charge-offs for fiscal year 2023, primarily due to net charge-offs in the auto and consumer portfolio.
Current wording
For fiscal year 2026, net charge-offs were $43.3 million and increased $17.8 million compared to net charge-offs for fiscal year 2025, primarily due to net charge-offs in the commercial & industrial - non-RE portfolio.
Previous wording
For fiscal year 2025, net charge-offs were $25.6 million and increased $16.6 million compared to net charge-offs for fiscal year 2024, primarily due to net charge-offs in the commercial & industrial - non-RE and multifamily and commercial mortgage portfolios.
Current wording
For fiscal year 2025, net charge-offs were $25.6 million and increased $16.6 million compared to net charge-offs for fiscal year 2024, primarily due to the net charge-offs in commercial & industrial - non-RE and multifamily and commercial mortgage portfolios.
Previous wording
2 Includes securities guaranteed by Ginnie Mae, a U.S. government agency, and the government sponsored enterprises Fannie Mae and Freddie Mac.
Current wording
3 Includes securities guaranteed by Ginnie Mae, a U.S. government agency, and the government sponsored enterprises Fannie Mae and Freddie Mac.
Previous wording
3 Private sponsors of securities collateralized primarily by pools of 1-4 family residential, Alt-A or pay-option ARM mortgages and commercial mortgages.
Current wording
4 Private sponsors of securities collateralized primarily by pools of 1-4 family residential, Alt-A or pay-option ARM mortgages and commercial mortgages.
Previous wording
For fiscal year 2025, the number of interest-bearing checking and savings accounts grew primarily due to a higher number of consumer deposit accounts.
Current wording
For fiscal year 2026, the number of interest-bearing checking and savings accounts grew primarily due to a higher number of consumer deposit accounts, including as a result of the Jenius Bank deposit acquisition completed on May 2, 2026.
Previous wording
1 Total deposits includes brokered deposits of $1,801.1 million and $1,611.6 million as of June 30, 2025 and 2024, respectively, which include brokered time deposits of $700.0 million and $400.0 million as of June 30, 2025 and 2024, respectively.
Current wording
1 Total deposits includes brokered deposits of $953.7 million and $1,801.1 million as of June 30, 2026 and 2025, respectively, which include brokered time deposits of $149.9 million and $700.0 million as of June 30, 2026 and 2025, respectively.
Previous wording
Total deposits that exceeded the FDIC insurance limit or were not collateralized at June 30, 2025 and 2024, were $2.6 billion and $2.1 billion, respectively. The maturities of non-collateralized time deposits that exceeded the FDIC insurance limit were as follows:
Current wording
Total deposits that exceeded the FDIC insurance limit or were not collateralized at June 30, 2026 and 2025, were $4.0 billion and $2.6 billion, respectively. The maturities of non-collateralized time deposits that exceeded the FDIC insurance limit were as follows:
Previous wording
Liquidity. Our primary sources of liquidity include deposits, borrowings, payments and maturities of outstanding loans, sales of loans, maturities or sales of available-for-sale securities and other short-term investments. While scheduled loan payments and maturing available-for-sale securities and short-term investments are relatively predictable sources of funds, deposit flows and loan prepayments are greatly influenced by general interest rates, economic conditions and competition. We generally invest excess funds in overnight deposits and other short-term interest-earning assets. We use cash generated through retail deposits, our largest funding source, to offset the cash utilized in lending and investing activities. Our short-term interest-earning available-for-sale securities are used to provide liquidity for lending and other operational requirements.
Current wording
Liquidity. Our primary sources of liquidity include deposits, FHLB advances, borrowings, payments and maturities of outstanding loans, sales of loans, maturities or sales of available-for-sale securities and other short-term investments. While scheduled loan payments and maturing available-for-sale securities and short-term investments are relatively predictable sources of funds, deposit flows and loan prepayments are greatly influenced by general interest rates, economic conditions and competition. We generally invest excess funds in overnight deposits and other short-term interest-earning assets. We use cash generated through deposits, our largest funding source, to offset the cash utilized in lending and investing activities. Our short-term interest-earning available-for-sale securities are used to provide liquidity for lending and other operational requirements.
Previous wording
Axos Bank can borrow up to 35% of its total assets from the FHLB. Borrowings are collateralized by pledging certain mortgage loans and available-for-sale securities to the FHLB. Based on loans and securities pledged at June 30, 2025, we had $2,799.2 million available immediately and an additional $4,925.6 million available with additional collateral and the Company had $4,284.7 million of loans and $127 thousand of securities pledged to the FHLB. At June 30, 2025, we had $250.0 million in unsecured federal funds lines of credit with five major banks under which there were no borrowings outstanding.
Current wording
Axos Bank can borrow up to 35% of its total assets from the FHLB. Borrowings are collateralized by pledging certain mortgage loans and available-for-sale securities to the FHLB. Based on loans and securities pledged at June 30, 2026, we had $2,391.0 million available immediately and an additional $6,336.1 million available with additional collateral and the Company had $3,761.6 million of loans and $750.1 million of securities pledged to the FHLB. At June 30, 2026, we had $250.0 million in unsecured federal funds lines of credit with five major banks under which there were no borrowings outstanding.
Previous wording
The Bank has the ability to borrow short-term from the FRBSF Discount Window. At June 30, 2025, the Bank did not have any borrowings outstanding and the amount available from this source was $7,046.5 million. Borrowings are collateralized by pledging commercial loans and consumer loans. At June 30, 2025, the Bank had $8,227.7 million of loans pledged to the FRBSF.
Current wording
The Bank has the ability to borrow short-term from the FRBSF Discount Window. At June 30, 2026, the Bank did not have any borrowings outstanding and the amount available from this source was $9,581.0 million. Borrowings are collateralized by pledging commercial loans and consumer loans. At June 30, 2026, the Bank had $11,115.1 million of loans pledged to the FRBSF.
Previous wording
Axos Clearing has a $110.0 million unsecured line of credit available for limited purpose borrowing. As of June 30, 2025, there was no amount outstanding. This credit facility bears interest at rates based on the Federal Funds rate and borrowings are due upon demand. The unsecured line of credit requires Axos Clearing to operate in accordance with specific covenants with respect to capital and debt ratios. Axos Clearing was in compliance with all covenants as of June 30, 2025.
Current wording
Axos Clearing has a $95.0 million unsecured line of credit available for limited purpose borrowing. As of June 30, 2026, there was no amount outstanding. This credit facility bears interest at rates based on the Federal Funds rate and borrowings are due upon demand. In July 2026, this line of credit was terminated by Axos Clearing.
Showing the first 40 of 50 pairs. Open the source sections for the rest.
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
In September 2020, the Company completed the sale of $175 million aggregate principal amount of its 4.875% Fixed-to-Floating Rate Subordinated Notes due October 1, 2030 (the “2030 Notes”). On April 30, 2024, the Company paid $4.8 million to repurchase $5.0 million par value of its 2030 Notes resulting in a pre-tax gain of $0.2 million, after accounting for unamortized issuance costs and accrued interest. On September 27, 2024, the Company paid $9.2 million to repurchase $9.5 million par value of its 2030 Notes resulting in a pre-tax non-cash gain on extinguishment of $0.2 million, after accounting for unamortized issuance costs and accrued interest. The non-cash gains are recorded in “General and administrative expense” in the Consolidated Statements of Income. On October 1, 2025, the Company completed the redemption of the $160.5 million aggregate principal amount of 2030 Notes outstanding, which were set to begin their floating period on such date. The 2030 Notes were redeemed for cash by the Company at 100% of their principal amount, plus accrued and unpaid interest, in accordance with the terms of the indenture governing the 2030 Notes. Remaining unamortized deferred financing costs associated with such notes were expensed and included under “Interest expense - Other borrowings” in the Consolidated Statements of Income for the fiscal year ended June 30, 2026.