Company: AX
Filing Date: 2025-04-30
Form Type: 10-Q
Source: 0001299709-25-000087
Chunk: 118

Company: Axos Financial, Inc.
Filing Date: 2025-04-30
Form: 10-Q
Item: Part I, Item 8
Chunk 118
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 credit losses at acquisition of PCD loans— 58,972 11,125 — — 70,097 Provision (benefit) for credit losses - loans(461)677 (1,038)25,749 2,323 27,250 Charge-offs(170)(139)— (86)(8,378)(8,773)Recoveries93 — — — 2,175 2,268 Balance at March 31, 2024$16,965 $76,358 $82,842 $72,010 $9,347 $257,522 For the three and nine months ended March 31, 2025, the allowance for credit losses for loans increased as a result of the provision for credit losses, partially offset by net charge-offs. The provision for credit losses 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 credit losses model, including the 5-year and 10-year U.S. Treasury rates. The provision was also impacted by increases in specific reserves and certain qualitative adjustments.Loan products within each portfolio contain varying collateral types which impact the estimate of the loss given default utilized in the calculation of the allowance for credit losses for loans. For further discussion of the model method of estimating expected lifetime credit losses, see Note 1—“Organizations and Summary of Significant Accounting Policies” in the 2024 Form 10-K. The following tables present a summary of the activity in the allowance for credit losses for off-balance sheet lending commitments:Three Months Ended March 31, (Dollars in thousands)20252024Balance at January 1, $13,223 $12,723 Provision (benefit) for credit losses - unfunded lending commitments750 (3,000)Balance at March 31, $13,973 $9,723 Nine Months Ended March 31, (Dollars in thousands)20252024Balance at July 1, $10,223 $10,473 Provision (benefit) for credit losses - unfunded lending commitments3,750 (750)Balance at March 31, $13,973 $9,723 

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The increase in the allowance for off-balance sheet lending commitments for the three and nine months ended March 31, 2025, was primarily