Company: AX
Filing Date: 2025-10-30
Form Type: 10-Q
Source: 0001299709-25-000184
Chunk: 76

Company: Axos Financial, Inc.
Filing Date: 2025-10-30
Form: 10-Q
Item: Part I, Item 1
Chunk 76
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 on the loans and leases acquired in the Verdant acquisition, as well as loan growth and the impact of macroeconomic variables used in the allowance for credit losses model, primarily the U.S. unemployment rate, consumer price and housing price indices, as well as the five-year U.S. Treasury rate. 

36

 The provision for credit losses for unfunded lending commitments of $2.0 million for the three months ended September 30, 2025, was primarily driven by unfunded lending commitment growth, primarily in the commercial real estate and commercial & industrial - non-RE portfolios. Provisions for credit losses are charged to income to bring the allowance for credit losses for loans and unfunded lending commitments to a level deemed appropriate by management based on the factors discussed under the heading “Financial Condition—Asset Quality and Allowance for Credit Losses - Loans.”

Non-Interest Income

The following table sets forth information regarding our non-interest income: 

For the Three Months EndedSeptember 30, (Dollars in thousands)20252024Inc (Dec)Broker-dealer fee income$10,948 $11,060 $(112)Advisory fee income8,525 7,945 580 Banking and service fees10,820 8,613 2,207 Mortgage banking and servicing rights income1,395 450 945 Prepayment penalty fee income652 541 111 Total non-interest income$32,340 $28,609 $3,731 

For the three months ended September 30, 2025, non-interest income increased by $3.7 million, or 13.0%, primarily due to an increase in banking and servicing fee income, primarily driven by higher income on BOLI policies, as well as a $0.9 million increase in mortgage banking and servicing rights income, primarily attributable to more favorable servicing rights fair value adjustments in the current period.

Non-Interest Expense

The following table sets forth information regarding our non-interest expense:

For the Three Months EndedSeptember 30, (Dollars in thousands)20252024Inc (Dec)Salaries and related costs$76,605 $74,293 $2,312 Data and operational processing22,057 18,985 3,072 Depreciation and amortization8,341 7,450 891 Advertising and promotional12,207 14,253 (2,046)Professional services13,