Company: AX
Filing Date: 2025-04-30
Form Type: 10-Q
Source: 0001299709-25-000087
Chunk: 80

Company: Axos Financial, Inc.
Filing Date: 2025-04-30
Form: 10-Q
Item: Part I, Item 1
Chunk 80
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 million decrease in interest income on loans, mainly attributable to lower rates earned on loans, partially offset by higher loan balances.

For the three months ended March 31, 2025, total interest expense decreased 13.6% from the three months ended March 31, 2024, primarily due to a $20.2 million decrease in interest expense on demand and savings deposits, reflecting lower rates paid, partially offset by higher deposit balances.

For the nine months ended March 31, 2025, net interest income totaled $847.6 million, an increase of $146.2 million, or 20.9%, compared to net interest income of $701.4 million for the nine months ended March 31, 2024. For the nine months ended March 31, 2025, net interest margin increased by 32 basis points compared to the net interest margin of 4.61% for the nine months ended March 31, 2024.

For the nine months ended March 31, 2025, total interest and dividend income increased 14.2% from the nine months ended March 31, 2024, primarily due to a $153.8 million increase in interest income on loans, attributable to higher loan balances and higher rates earned, and a $18.7 million increase in interest income on interest-earning deposits at other financial institutions.

For the nine months ended March 31, 2025, total interest expense increased 4.9% from the nine months ended March 31, 2024, primarily due to a $34.6 million increase in interest expense on demand and savings deposits, mainly reflecting higher deposit balances, partially offset by lower rates paid.

38

Provision for Credit Losses

The provision for credit losses was $14.5 million and $40.7 million for the three and nine months ended March 31, 2025, respectively, compared to $6.0 million and $26.5 million for the three and nine months ended March 31, 2024, respectively. The provision for credit losses consists of provisions for both funded loans and for unfunded lending commitments. The provision for credit losses for funded loans was $13.8 million and $37.0 million for the three and nine months ended March 31, 2025, respectively, and was primarily driven by the commercial & industrial - non-RE portfolio, reflecting loan growth, as well as the quantitative impact of macroeconomic variables in the allowance for