Company: AX
Filing Date: 2025-01-28
Form Type: 10-Q
Source: 0001299709-25-000011
Chunk: 53

Company: Axos Financial, Inc.
Filing Date: 2025-01-28
Form: 10-Q
Item: Part I, Item 1
Chunk 53
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102,949 Total derivatives$2,993,540 $16,363 $83,957 $2,435,874 $106,796 $102,949 1 Derivative assets are presented net of $78.0 million of variation margin on centrally-cleared derivatives as of December 31, 2024.

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Derivatives designated as hedging instrumentsThe following table presents pre-tax gains/(losses) on derivative instruments used in cash flow hedge accounting relationships.For the Three Months Ended December 31, For the Six Months Ended December 31, (Dollars in thousands)2024202320242023Amounts recorded in OCI$8,073 $— $8,626 Amounts reclassified from AOCI to income(1,478)— (1,478)Total change in OCI for period$6,595 $— $7,148 $— The Company did not experience any forecasted transactions that failed to occur during the three and six months ended December 31, 2024 or 2023. There are no amounts excluded from the assessment of hedge effectiveness.As of December 31, 2024, the Company expects that approximately $3.5 million of pre-tax net gain related to cash flow hedges recorded in AOCI will be recognized in income over the next 12 months. The maximum length of time over which forecasted transactions are hedged is approximately 2.7 years.Derivatives not designated as hedging instrumentsThe following table presents the pre-tax gains/(losses) related to the Company’s derivative instrument activity recognized in the Condensed Consolidated Statements of Income:For the Three Months Ended December 31, For the Six Months Ended December 31, (Dollars in thousands)2024202320242023Banking and service fees$(185)$50 $(1,557)$390 Mortgage banking and servicing rights income(134)231 (385)508 

6.    OFFSETTING OF DERIVATIVES AND SECURITIES FINANCING AGREEMENTS

The Company enters into derivatives transactions as part of its mortgage banking activities, market making activity in interest rate swap and cap derivatives to facilitate customer demand and hedging activities related to interest rate risk management, and enters into securities borrowed and securities loaned transactions to facilitate customer match-book activity, cover short positions and support customer securities lending. For additional information on offsetting see Note 7—“Offset