Company: AX
Filing Date: 2025-10-30
Form Type: 10-Q
Source: 0001299709-25-000184
Chunk: 32

Company: Axos Financial, Inc.
Filing Date: 2025-10-30
Form: 10-Q
Item: Part I, Item 1
Chunk 32
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 $— $649 Available-for-sale securities:Agency MBS46,757 — 46,757 Non-Agency MBS— 15,569 15,569 Municipal3,682 — 3,682 Total—Available-for-sale securities:$50,439 $15,569 $66,008 Loans held for sale$10,012 $— $10,012 Servicing rights$— $27,218 $27,218 Other assets—Derivative instruments1$17,734 $— $17,734 LIABILITIES:Accounts payable and other liabilities—Derivative instruments$68,498 $— $68,498 1 Other assets - Derivative instruments are presented net of $50.8 million and $55.4 million of variation margin on centrally-cleared derivatives as of September 30, 2025 and June 30, 2025, respectively.The following section describes the valuation methodologies used by the Company to measure various financial instruments at fair value, including an indication of the level in the fair value hierarchy in which each instrument is generally classified. For additional information on the 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—