Company: AX
Filing Date: 2025-01-28
Form Type: 10-Q
Source: 0001299709-25-000011
Chunk: 117

Company: Axos Financial, Inc.
Filing Date: 2025-01-28
Form: 10-Q
Item: Part I, Item 8
Chunk 117
---
,347 $13,227 $166,680 Allowance for credit losses at acquisition of PCD loans— 58,972 11,125 — — 70,097 Provision (benefit) for credit losses - loans(2,090)2,533 (6,102)22,940 969 18,250 Charge-offs(80)— — (86)(4,602)(4,768)Recoveries23 — — — 1,467 1,490 Balance at December 31, 2023$15,356 $78,353 $77,778 $69,201 $11,061 $251,749 For the three and six months ended December 31, 2024, the allowance for credit losses for loans increased as a result of the provision for credit losses, partially offset by net charge-offs. The provision for credit losses was primarily due to the quantitative impact of macroeconomic variables in the allowance for credit losses model, primarily the U.S. unemployment rate and commercial real estate mortgage rates, as well as loan growth, increases in specific reserves and certain qualitative adjustments, mainly in the commercial & industrial - non-RE portfolio.Loan products within each portfolio contain varying collateral types which impact the estimate of the loss given default utilized in the calculation of the allowance for credit losses for loans. For further discussion of the model method of estimating expected lifetime credit losses, see Note 1—“Organizations and Summary of Significant Accounting Policies” in the 2024 Form 10-K. The following tables present a summary of the activity in the allowance for credit losses for off-balance sheet lending commitments:

18

Three Months Ended December 31, (Dollars in thousands)20242023Balance at October 1, $12,723 $11,723 Provision for credit losses - unfunded lending commitments500 1,000 Balance at December 31, $13,223 $12,723 Six Months Ended December 31, (Dollars in thousands)20242023Balance at July 1, $10,223 $10,473 Provision for credit losses - unfunded lending commitments3,000 2,250 Balance at December 31, $13,223 $12,723 The increase in the allowance for off-balance sheet lending commitments for the three and six months ended December 31, 2024