Company: AX
Filing Date: 2025-04-30
Form Type: 10-Q
Source: 0001299709-25-000087
Chunk: 53

Company: Axos Financial, Inc.
Filing Date: 2025-04-30
Form: 10-Q
Item: Part I, Item 1
Chunk 53
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abilitiesNotional AmountDerivative AssetsDerivative LiabilitiesDerivatives designated as hedging instrumentsInterest rate contracts$400,000 $3,790 $— $— $— $— Derivatives not designated as hedging instrumentsInterest rate contracts12,587,213 12,356 72,629 2,435,874 106,796 102,949 Foreign exchange contracts10,996 9 13 — — — Total derivatives$2,998,209 $16,155 $72,642 $2,435,874 $106,796 $102,949 1 Derivative assets are presented net of $63.2 million of variation margin on centrally-cleared derivatives as of March 31, 2025.

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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 March 31, For the Nine Months Ended March 31, (Dollars in thousands)2025202420252024Amounts recorded in OCI$(2,464)$— $6,162 $— Amounts reclassified from AOCI to income(1,130)— (2,608)— Total change in OCI for period$(3,594)$— $3,554 $— The Company did not experience any forecasted transactions that failed to occur during the three and nine months ended March 31, 2025 or 2024. There are no amounts excluded from the assessment of hedge effectiveness.As of March 31, 2025, the Company expects that approximately $2.7 million of pre-tax net gain related to cash flow hedges recorded in AOCI will be recognized in income over the next 12 months. The maximum length of time over which forecasted transactions are hedged is approximately 2.5 years.Derivatives not designated as hedging instrumentsThe following table presents the pre-tax gains/(losses) related to the Company’s derivative instrument activity recognized in the Condensed Consolidated Statements of Income:For the Three Months Ended March 31, For the Nine Months Ended March 31, (Dollars in thousands)2025202420252024Interest rate contractsBanking and service fees$(272)$27 $(1,829)$417 Mortgage banking and servicing rights income136 98 (249)606