Company: AX
Filing Date: 2025-01-28
Form Type: 10-Q
Source: 0001299709-25-000011
Chunk: 149

Company: Axos Financial, Inc.
Filing Date: 2025-01-28
Form: 10-Q
Item: Part I, Item 2
Chunk 149
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%30.96 %40.37 %36.78 %Return on average assets1.87 %2.81 %2.02 %2.24 %Interest rate spread3.96 %3.63 %4.05 %3.53 %Net interest margin4.87 %4.62 %5.04 %4.54 %

Our Banking Business Segment’s net interest margin exceeds our consolidated net interest margin. Our consolidated net interest margin includes certain items that are not reflected in the calculation of our net interest margin within our Banking Business Segment and reduce our consolidated net interest margin, such as the borrowing costs at our Company and the yields and costs associated with certain items within interest-earning assets and interest-bearing liabilities in our Securities Business Segment, including items related to securities financing operations.

Securities Business Segment

For the three and six months ended December 31, 2024, our Securities Business Segment had income before income taxes of $7.8 million and $16.9 million, respectively, compared to income before income taxes of $10.8 million and $23.3 million, respectively, for the three and six months ended December 31, 2023.

For the three months ended December 31, 2024, net interest income increased $0.9 million, or 15.2%, and for the six months ended December 31, 2024, net interest income increased $2.7 million, or 22.8%, respectively, compared to the prior year period. The increases were primarily driven by increased securities borrowing activity in the current year periods.

For the three months ended December 31, 2024, non-interest income decreased $3.6 million, or 11.1%, and for the six months ended December 31, 2024, non-interest income decreased $8.3 million, or 12.3%, respectively, compared to the prior year period. The decreases were primarily driven by lower broker-dealer fee income as a result of lower cash sorting balances in the current year periods.

For the three months ended December 31, 2024, non-interest expense increased $0.2 million or 0.8%, and for the six months ended December 31, 2024, non-interest expense increased $0.8 million, or 1.4%, respectively, compared to the prior year period.

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The following table provides selected information for Axos Clearing