Company: AX
Filing Date: 2025-10-30
Form Type: 10-Q
Source: 0001299709-25-000184
Chunk: 101

Company: Axos Financial, Inc.
Filing Date: 2025-10-30
Form: 10-Q
Item: Part I, Item 8
Chunk 101
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 other valuation methodologies used by the Company, see Note 3—“Fair Value” in the 2025 Form 10-K.Contingent Consideration. The fair value of the Contingent Consideration liability is determined using a Nelson-Siegel stochastic simulation, which models various scenarios based on business forecasts, including monthly asset growth of the Verdant business and other inputs in accordance with the terms of the agreement. The resulting simulated cash flows are then discounted to present value and averaged to determine fair value.

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The following tables present additional information about assets measured at fair value on a recurring basis and for which the Company has utilized Level 3 inputs to determine fair value: For the Three Months EndedSeptember 30, 2025(Dollars in thousands)Available-for-sale Securities:Non-Agency MBSServicing Rights1Accounts payable and other liabilities—Contingent ConsiderationTotalOpening balance$15,569 $27,218 $— $42,787 Total gains or losses for the period:Included in earnings—Mortgage banking and servicing rights income— (1,189)— (1,189)Included in other comprehensive income116 — — 116 Purchases, retentions, issues, sales and settlements:Purchases/Retentions— 214 30,810 31,024 Settlements(4,493)— — (4,493)Closing balance$11,192 $26,243 $30,810 $68,245 Change in unrealized gains or losses for the period included in earnings for assets held at the end of the reporting period$— $(1,189)$— $(1,189)1 Earnings from servicing rights were attributable to: time and payoffs, representing a decrease in servicing rights value due to passage of time, including the impact from both regularly scheduled loan principal payments and loans that were paid down or paid off during the period of $0.4 million for the three months ended September 30, 2025, and a decrease in servicing rights value resulting from market-driven changes in interest rates of $0.8 million for the three months ended September 30, 2025. Additions to servicing rights were related to purchases and servicing rights retained upon sale of loans held for sale. For the Three Months EndedSeptember 30, 2024(Dollars in thousands)Available-for-sale Securities:Non-Agency MBSServicing Rights1TotalOpening balance$110,928