Company: AX
Filing Date: 2025-01-28
Form Type: 10-Q
Source: 0001299709-25-000011
Chunk: 146

Company: Axos Financial, Inc.
Filing Date: 2025-01-28
Form: 10-Q
Item: Part I, Item 2
Chunk 146
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 $50,440 

For the three months ended December 31, 2024, non-interest expense increased $23.5 million, or 19.3%, primarily due to increases of:

•$15.2 million in salaries and related costs primarily due to increased headcount and salaries; 

•$3.1 million in professional services primarily due to higher consulting and legal expenses; and 

•$3.1 million in FDIC and regulatory fees primarily due to higher FDIC assessments.

For the six months ended December 31, 2024, non-interest expense increased $50.4 million, or 20.8%, primarily due to increases of:

•$33.7 million in salaries and related costs primarily due to increased headcount and salaries; and

•$5.1 million in advertising and promotional expenses primarily due to higher marketing expenses, including deposit marketing expense; 

•$4.6 million in FDIC and regulatory fees primarily due to higher FDIC assessments; and

•$3.9 million in data and operational processing primarily due to continued investments in technology.

Provision for Income Taxes

Income tax expense was $45.6 million and $92.5 million for the three and six months ended December 31, 2024, respectively, compared to $65.6 million and $101.1 million for three and six months ended December 31, 2023, respectively. Our effective income tax rates for the three months ended December 31, 2024 and 2023 were 30.36% and 30.19%. Our effective income tax rates for the six months ended December 31, 2024 and 2023 were 29.88% and 30.14%, respectively.

41

SEGMENT RESULTS

Our Company determines reportable segments based on the services offered, the significance of the services offered, the significance of those services to our Company’s financial condition and operating results and management’s regular review of the operating results of those services. Our Company operates through two operating segments: the Banking Business Segment and the Securities Business Segment. In order to reconcile the two segments to the consolidated totals, our Company includes corporate activities and intercompany eliminations. Inter-segment transactions are eliminated in consolidation and primarily include non-interest income earned by the Securities Business Segment and non-interest expense incurred by the Banking Business Segment for cash sorting fees related to deposits sourced from Securities Business Segment customers.

The following tables present the operating results of the segments:

For