Company: AX
Filing Date: 2025-10-30
Form Type: 10-Q
Source: 0001299709-25-000184
Chunk: 139

Company: Axos Financial, Inc.
Filing Date: 2025-10-30
Form: 10-Q
Item: Part I, Item 2
Chunk 139
---
17% for the three months ended September 30, 2024. The decrease in the net charge-off rate was primarily driven by lower net charge-offs in the Commercial & Industrial - Non-RE portfolio. For additional information regarding the Company’s allowance for credit losses, see Note 5—“Loans & Allowance for Credit Losses” in the accompanying interim condensed consolidated financial statements. For a discussion of the provision for credit losses for the three months ended September 30, 2025, see Item 2—“Management's Discussion and Analysis of Financial Condition and Results of Operations—Results of Operations.” We believe that the lower average LTV in the loan portfolio will continue to result in future lower average mortgage loan charge-offs when compared to many other comparable banks.

Asset Quality 

Non-performing Assets. Loans reaching 90 days past due are generally placed on nonaccrual status. Loans not yet reaching 90 days past due may be placed on nonaccrual status based on management’s assessment of the aging of contractual principal amounts due, among other factors. For an aging analysis of the Company’s loans held for investment as of September 30, 2025 and June 30, 2025, see Note 5—“Loans & Allowance for Credit Losses” in the accompanying interim condensed consolidated financial statements. Non-performing assets include nonaccrual loans plus other real estate owned and repossessed vehicles.

Non-performing assets consisted of the following:

(Dollars in thousands)September 30, 2025June 30, 2025Increase (Decrease)Non-performing assets:Nonaccrual loans:Single Family - Mortgage & Warehouse$67,887 $44,196 $23,691 Multifamily and Commercial Mortgage16,047 33,037 (16,990)Commercial Real Estate21,783 29,223 (7,440)Commercial & Industrial - Non-RE62,536 61,804 732 Auto & Consumer2,157 2,126 31 Total nonaccrual loans$170,410 $170,386 $24 Foreclosed real estate4,383 4,535 (152)Repossessed vehicles—Autos559 505 54 Total non-performing assets$175,352 $175,426 $(74)Total nonaccrual loans as a percentage of total loans0.74 %0.79 %(0