Company: AX
Filing Date: 2025-08-21
Form Type: 10-K
Source: 0001299709-25-000125
Chunk: 154

Company: Axos Financial, Inc.
Filing Date: 2025-08-21
Form: 10-K
Item: Item 7
Chunk 154
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 least 5.0%, 6.5%, 8.0% and 10.0%, respectively. Additionally, the Bank is required to maintain a tangible capital ratio equal to at least 1.5% of total average adjusted assets. At June 30, 2025, our Company and Bank met all the capital adequacy requirements to which they were subject to and were “well capitalized” under the regulatory framework for prompt corrective action. Management believes that no conditions or events have occurred since June 30, 2025 that would materially adversely change the Company’s and Bank’s capital classifications. From time to time, we may need to raise additional capital to support our Company’s and Bank’s further growth and to maintain their “well capitalized” status.

The Company and Bank both elected the five-year CECL transition guidance for calculating regulatory capital and ratios. The amounts in the following table reflect this election. This guidance allowed an entity to add back to regulatory capital 100% of the impact of the day one CECL transition adjustment and 25% of the subsequent increases to the allowance for credit losses through June 30, 2022. In fiscal year 2025, this cumulative amount was phased out of regulatory capital at 75% and the cumulative amount will be 100% phased out of regulatory capital beginning in fiscal year 2026.

The Company’s and Bank’s capital ratios and requirements were as follows:

Minimum Capital RequirementMinimum Capital Requirement with Capital Buffer Minimum to Be Well CapitalizedJune 30,20252024Regulatory Capital Ratios (Company):Tier 1 leverage ratio10.73 %9.43 %4.00 %4.00 %N/ACommon equity tier 1 capital ratio12.52 %12.01 %4.50 %7.00 %N/ATier 1 risk-based capital ratio12.52 %12.01 %6.00 %8.50 %N/ATotal risk-based capital ratio15.28 %14.84 %8.00 %10.50 %N/ARegulatory Capital Ratios (Bank):Tier 1 leverage ratio10.23 %9.74 %4.00 %4.00 %5.00 %Common equity tier 1 capital ratio12.42 %12.74 %4.50 %7.00 %6.50 %Tier 1 risk-based capital ratio12