Axos Financial, Inc.

9. OTHER ASSETS

Other Assets in the Consolidated Balance Sheets primarily comprises bank-owned life insurance, accrued interest receivable, derivatives, net deferred income tax assets, furniture, equipment and software, right-of-use lease assets, LIHTC investments and other receivables. For additional information on accrued interest receivable, see Note 5 - “Loans & Allowance for Credit Losses,” for additional information on derivatives, see Note 6 - “Derivatives” and for additional information on net deferred income tax assets, see Note 15 - “Income Taxes.” Other components of Other Assets are further detailed below.

Bank-owned Life Insurance. The following table summarizes the activity in the Company’s bank-owned life insurance (“BOLI”). Income related to bank-owned life insurance is included in “Banking and service fees” in the Consolidated Statements of Income.

Furniture, equipment and software (not under operating lease agreements). A summary of the cost and accumulated depreciation for premises, leasehold improvements, furniture, equipment and software (not under operating lease agreements) is as follows:

Depreciation and amortization expense related to furniture, equipment and software (not under operating lease agreements) for the fiscal years ended June 30, 2026, 2025 and 2024 was $29.7 million, $21.6 million and $16.2 million, respectively.

Operating Leases-Lessee. The Company leases office space under operating lease agreements scheduled to expire at various dates. Operating lease expense for the fiscal years ended June 30, 2026, 2025 and 2024 was $12.8 million, $11.3 million, and $12.4 million, respectively.

Supplemental information related to the Company’s operating leases is as follows:

Supplemental cash flow information related to leases is as follows:

The following table represents maturities of lease liabilities:

As of June 30, 2026, the Company was in compliance with all covenants contained in lease agreements.

Operating Leases—Lessor. The Company operates as a lessor under operating lease agreements either as a lessor of various types of equipment or as a lessor of commercial office space in the multi-building commercial office complex it owns. For additional information on the Company as a lessor under operating lease agreements, see Note 1—“Organizations and Summary of Significant Accounting Policies.”

A summary of the cost and accumulated depreciation and amortization for premises, building improvements and equipment (under operating lease agreements) is as follows:

Depreciation expense related to premises, building improvements and equipment (under operating lease agreements) for the fiscal year ended June 30, 2026 was $38.6 million. There wasno depreciation expense related to assets under operating lease agreements for the fiscal years ended June 30, 2025 and 2024.

The following table summarizes operating lease income recognized by the Company as lessor under operating lease arrangements for the periods presented. Operating lease income is included in “Banking and service fees” in the Consolidated Statements of Income.

The following table presents the future undiscounted cash flows to be received over the next five fiscal years and the total thereafter where the Company operates as a lessor under operating lease agreements.

LIHTC Investments. The Company recognized the following income and tax benefits for its LIHTC investments.

The Company recognized the following investments on its balance sheets.

1 LIHTC unfunded commitments are included in “Accounts Payable and Other Liabilities” on the Consolidated Balance Sheets.

For the fiscal years ended June 30, 2026 and 2025, there have been no significant modifications or events that resulted in the change in the nature of the LIHTC investments or any changes in the relationship with the underlying project.

For the fiscal years ended June 30, 2026 and 2025, there has been no impairment loss recognized from the forfeiture or ineligibility of income tax credits.