Company: AX
Filing Date: 2025-01-28
Form Type: 10-Q
Source: 0001299709-25-000011
Chunk: 80

Company: Axos Financial, Inc.
Filing Date: 2025-01-28
Form: 10-Q
Item: Part I, Item 1
Chunk 80
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The provision for credit losses was $12.2 million and $26.2 million for the three and six months ended December 31, 2024, respectively, compared to $13.5 million and $20.5 million for the three and six months ended December 31, 2023, 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 $11.7 million and $23.2 million for the three and six months ended December 31, 2024, respectively, and was primarily due to the quantitative impact of macroeconomic variables in the allowance for credit losses model, primarily the U.S. unemployment rate and commercial real estate mortgage rates, as well as loan growth, increases in specific reserves and certain qualitative adjustments, mainly in the commercial & industrial - non-RE portfolio. The provision for credit losses for unfunded lending commitments of $0.5 million and $3.0 million for the three and six months ended December 31, 2024, respectively, was primarily driven by unfunded lending commitment growth, primarily in the commercial & industrial - non-RE portfolio. 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 EndedFor the Six Months EndedDecember 31, December 31, (Dollars in thousands)20242023Inc (Dec)20242023Inc (Dec)Broker-dealer fee income$11,039 $12,519 $(1,480)$22,099 $24,996 $(2,897)Advisory fee income7,982 7,362 620 15,927 15,581 346 Banking and service fees9,813 10,061 (248)18,426 18,411 15 Mortgage banking and servicing rights income(1,797)753 (2,550)(1,347)4,631 (5,978)Prepayment penalty fee income762 1,037 (275)1,303 2,620 (1,317)Gain on acquisition— 92,397 (92