Company: AX
Filing Date: 2025-10-30
Form Type: 10-Q
Source: 0001299709-25-000184
Chunk: 51

Company: Axos Financial, Inc.
Filing Date: 2025-10-30
Form: 10-Q
Item: Part I, Item 1
Chunk 51
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.The following table presents the notional amounts and fair values of the Company’s derivative instruments. While the notional amounts give an indication of the volume of the Company’s derivatives activity, the notional amounts significantly exceed, in the Company’s view, the possible losses that could arise from such transactions. For most derivative contracts, the notional amount is not exchanged, rather it is a reference amount used to calculate payments.September 30, 2025June 30, 2025Fair ValueFair Value(Dollars in thousands)Notional AmountDerivative AssetsDerivative LiabilitiesNotional AmountDerivative AssetsDerivative LiabilitiesDerivatives designated as hedging instrumentsInterest rate contracts1$400,000 $1,184 $— $400,000 $1,950 $— Derivatives not designated as hedging instrumentsInterest rate contracts12,627,948 16,679 64,599 2,761,021 15,782 68,427 Foreign exchange contracts9,777 29 20 9,570 2 71 Total derivatives$3,037,725 $17,892 $64,619 $3,170,591 $17,734 $68,498 1 Derivative Assets are presented net of $50.8 million and $55.4 million of variation margin on centrally-cleared derivatives as of September 30, 2025 and June 30, 2025, respectively.

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Derivatives designated as hedging instrumentsThe following table presents pre-tax gains/(losses) on derivative instruments used in cash flow hedge accounting relationships.For the Three Months Ended September 30, (Dollars in thousands)20252024Amounts recorded in other comprehensive income (“OCI”)$374 $553 Amounts reclassified from AOCI to income(1,118)— Total change in OCI for period$(744)$553     The Company did not experience any forecasted transactions that failed to occur during the three months ended September 30, 2025 or 2024. There are no amounts excluded from the assessment of hedge effectiveness.As of September 30, 2025, the Company expects that approximately $1.2 million of pre-tax net gain related to cash flow hedges recorded in accumulated other comprehensive income will be recognized in income over the next 12 months. The maximum length of time over which forecasted transactions are hedged is approximately 2.0