Company: AX
Filing Date: 2025-10-30
Form Type: 10-Q
Source: 0001299709-25-000184
Chunk: 52

Company: Axos Financial, Inc.
Filing Date: 2025-10-30
Form: 10-Q
Item: Part I, Item 1
Chunk 52
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 years.Derivatives not designated as hedging instrumentsThe following table presents the pre-tax gains/(losses) related to the Company’s derivative instrument activity recognized in the Condensed Consolidated Statements of Income:For the Three Months Ended September 30, (Dollars in thousands)20252024Interest rate contractsBanking and service fees$(558)$(1,372)Mortgage banking and servicing rights income417 (251)Foreign exchange contractsBanking and service fees539 — The aggregate foreign exchange transaction gain totaled approximately $0.5 million for the three months ended September 30, 2025, and was not significant for the three months ended September 30, 2024.

7.    OFFSETTING OF DERIVATIVES AND SECURITIES FINANCING AGREEMENTS

The Company enters into derivatives transactions as part of its mortgage banking activities, market making activity in interest rate swap and cap derivatives to facilitate customer demand and hedging activities related to interest rate and foreign exchange risk management, and enters into securities borrowed and securities loaned transactions to facilitate customer match-book activity, cover short positions and support customer securities lending. For additional information on offsetting see Note 7—“Offsetting of Derivatives and Securities Financing Agreements” in the 2025 Form 10-K.The following tables present information about the offsetting of these instruments and related collateral amounts:September 30, 2025(Dollars in thousands)Gross Assets / LiabilitiesAmounts OffsetNet Balance Sheet AmountAmounts Not Offset2Net Assets / LiabilitiesAssets:Securities borrowed$182,518 $— $182,518 $182,518 $— Other Assets — Derivative Assets117,891 — 17,891 10,468 7,423 Liabilities:Securities loaned$204,620 $— $204,620 $204,620 $— Accounts Payable and Other Liabilities — Derivative Liabilities64,618 — 64,618 6,682 57,936 

22

June 30, 2025(Dollars in thousands)Gross Assets / LiabilitiesAmounts OffsetNet Balance Sheet AmountAmounts Not Offset2Net Assets / LiabilitiesAssets:Securities borrowed$139,396 $— $139,396 $139,396 $— Other Assets — Derivative Assets117,734 — 17,734 11,