Company: AX
Filing Date: 2025-04-30
Form Type: 10-Q
Source: 0001299709-25-000087
Chunk: 161

Company: Axos Financial, Inc.
Filing Date: 2025-04-30
Form: 10-Q
Item: Part I, Item 2
Chunk 161
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 risk, see Item 7A—“Quantitative and Qualitative Disclosures About Market Risk” in the 2024 Form 10-K.

We measure interest rate sensitivity as the difference between amounts of interest-earning assets and interest-bearing liabilities that mature or contractually re-price within a given period of time. The difference, or the interest rate sensitivity gap, provides an indication of the extent to which an institution’s interest rate spread will be affected by changes in interest rates. A gap is considered positive when the amount of interest rate sensitive assets exceeds the amount of interest rate sensitive liabilities and negative when the amount of interest rate sensitive liabilities exceeds the amount of interest rate sensitive assets. 

Absent any subsequent asset and liability actions by management, in a rising interest rate environment, an institution with a positive gap would be in a better position than an institution with a negative gap to invest in higher yielding assets or to have its asset yields adjusted upward, which would cause the yield on its assets to increase at a faster pace than the cost of its interest-bearing liabilities. Conversely, absent any subsequent asset and liability actions by management, during a period of falling interest rates, an institution with a positive gap would tend to have its assets reprice at a faster rate than one with a negative gap, which would tend to reduce the growth in its net interest income.

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Banking Business Segment

The following table sets forth the amounts of interest earning assets and interest bearing liabilities that were outstanding at March 31, 2025 and the portions of each financial instrument that are expected to mature or reset interest rates in each future period:

Term to Repricing, Repayment, or Maturity atMarch 31, 2025(Dollars in thousands)Six Months or LessOver Six Months Through One YearOver OneYear ThroughFive YearsOver FiveYearsTotalInterest-earning assets:Cash and cash equivalents$2,088,819$—$—$—$2,088,819Available-for-sale securities147,0544,23617,34111,32779,958Stock of the FHLB, at cost29,728———29,728Loans214,062,7261,781,4104,234,894114,60020,193,630Loans held for sale15,644———15,644Total interest-earning assets16,243,9711,785,6464,252,235125,92722,407,779Non-interest-earning assets————799,155Total assets$16,