EX-99.2 3 pressrelease-financialsche.htm EX-99.2
AXOS FINANCIAL, INC.
CONSOLIDATED BALANCE SHEETS
(Unaudited)

| At June 30,
(Dollars in thousands, except par and stated value) | 2023 |  | 2022
ASSETS |  |  |
Cash and cash equivalents | $ | 2,233,027 |  |  | $ | 1,202,587 |
Cash segregated for regulatory purposes | 149,059 |  |  | 372,112 |
Total cash, cash equivalents, cash segregated | 2,382,086 |  |  | 1,574,699 |
Securities: |  |  |
Trading | 758 |  |  | 1,758 |
Available-for-sale | 232,350 |  |  | 262,518 |
Stock of regulatory agencies | 21,510 |  |  | 20,368 |
Loans held for sale, carried at fair value | 23,203 |  |  | 4,973 |
Loans held for sale, lower of cost or fair value | 776 |  |  | 10,938 |
Loans—net of allowance for credit losses of $166,680 as of June 2023 and $148,617 as of June 2022 | 16,456,728 |  |  | 14,091,061 |
Mortgage servicing rights, carried at fair value | 25,443 |  |  | 25,213 |
Securities borrowed | 134,339 |  |  | 338,980 |
Customer, broker-dealer and clearing receivables | 374,074 |  |  | 417,417 |
Goodwill and other intangible assets—net | 152,149 |  |  | 156,405 |
Other assets | 545,053 |  |  | 496,835 |
TOTAL ASSETS | $ | 20,348,469 |  |  | $ | 17,401,165 |
LIABILITIES AND STOCKHOLDERS’ EQUITY |  |  |
Deposits: |  |  |
Non-interest bearing | $ | 2,898,150 |  |  | $ | 5,033,970 |
Interest bearing | 14,224,958 |  |  | 8,912,452 |
Total deposits | 17,123,108 |  |  | 13,946,422 |
Advances from the Federal Home Loan Bank | 90,000 |  |  | 117,500 |
Borrowings, subordinated notes and debentures | 361,779 |  |  | 445,244 |
Securities loaned | 159,832 |  |  | 474,400 |
Customer, broker-dealer and clearing payables | 445,477 |  |  | 511,654 |
Accounts payable and other liabilities | 251,114 |  |  | 262,972 |
Total liabilities | 18,431,310 |  |  | 15,758,192 |
STOCKHOLDERS’ EQUITY: |  |  |
Common stock—$0.01 par value; 150,000,000 shares authorized, 69,465,446 shares issued and 58,943,035 shares outstanding as of June 30, 2023; 68,859,722 shares issued and 59,777,949 shares outstanding as of June 30, 2022 | 695 |  |  | 689 |
Additional paid-in capital | 479,878 |  |  | 453,784 |
Accumulated other comprehensive income (loss)—net of tax | (6,610) |  |  | (2,933) |
Retained earnings | 1,735,609 |  |  | 1,428,444 |
Treasury stock, at cost; 10,522,411 shares as of June 30, 2023 and 9,081,773 shares as of June 30, 2022 | (292,413) |  |  | (237,011) |
Total stockholders’ equity | 1,917,159 |  |  | 1,642,973 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 20,348,469 |  |  | $ | 17,401,165 |

S-1

AXOS FINANCIAL, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)

| For the Quarters Ended June 30,
(Dollars in thousands, except earnings per share) | 2023 |  | 2022
INTEREST AND DIVIDEND INCOME: |  |  |
Loans, including fees | $ | 305,011 |  |  | $ | 174,110 |
Securities borrowed and customer receivables | 4,815 |  |  | 4,462 |
Investments and other | 36,604 |  |  | 5,589 |
Total interest and dividend income | 346,430 |  |  | 184,161 |
INTEREST EXPENSE: |  |  |
Deposits | 137,189 |  |  | 11,179 |
Advances from the Federal Home Loan Bank | 523 |  |  | 1,663 |
Securities loaned | 356 |  |  | 503 |
Other borrowings | 4,608 |  |  | 5,406 |
Total interest expense | 142,676 |  |  | 18,751 |
Net interest income | 203,754 |  |  | 165,410 |
Provision for credit losses | 7,000 |  |  | 6,000 |
Net interest income, after provision for credit losses | 196,754 |  |  | 159,410 |
NON-INTEREST INCOME: |  |  |
Broker-dealer fee income | 13,768 |  |  | 4,912 |
Advisory fee income | 7,503 |  |  | 8,152 |
Banking and service fees | 7,838 |  |  | 6,308 |
Mortgage banking income | 1,988 |  |  | 3,498 |
Prepayment penalty fee income | 1,608 |  |  | 4,230 |
Total non-interest income | 32,705 |  |  | 27,100 |
NON-INTEREST EXPENSE: |  |  |
Salaries and related costs | 54,509 |  |  | 43,541 |
Data processing | 16,095 |  |  | 13,594 |
Depreciation and amortization | 5,665 |  |  | 6,022 |
Advertising and promotional | 8,095 |  |  | 3,449 |
Professional services | 5,979 |  |  | 7,649 |
Occupancy and equipment | 4,037 |  |  | 3,480 |
FDIC and regulatory fees | 4,371 |  |  | 3,967 |
Broker-dealer clearing charges | 3,509 |  |  | 3,940 |
General and administrative expense | 10,196 |  |  | 19,151 |
Total non-interest expense | 112,456 |  |  | 104,793 |
INCOME BEFORE INCOME TAXES | 117,003 |  |  | 81,717 |
INCOME TAXES | 29,647 |  |  | 23,821 |
NET INCOME | $ | 87,356 |  |  | $ | 57,896 |
COMPREHENSIVE INCOME | $ | 86,319 |  |  | $ | 56,896 |
Basic earnings per share | $ | 1.48 |  |  | $ | 0.97 |
Diluted earnings per share | $ | 1.46 |  |  | $ | 0.96 |

S-2

AXOS FINANCIAL, INC.
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)

| Year Ended June 30,
(Dollars in thousands, except earnings per share) | 2023 |  | 2022 |  | 2021
INTEREST AND DIVIDEND INCOME: |  |  |  |  |
Loans, including fees | $ | 1,048,874 |  |  | $ | 626,628 |  |  | $ | 584,410 |
Securities borrowed and customer receivables | 18,657 |  |  | 20,512 |  |  | 20,466 |
Investments and other | 89,607 |  |  | 12,588 |  |  | 12,987 |
Total interest and dividend income | 1,157,138 |  |  | 659,728 |  |  | 617,863 |
INTEREST EXPENSE: |  |  |  |  |
Deposits | 339,481 |  |  | 33,620 |  |  | 60,529 |
Advances from the Federal Home Loan Bank | 12,644 |  |  | 4,625 |  |  | 4,672 |
Securities loaned | 3,673 |  |  | 1,124 |  |  | 1,496 |
Other borrowings | 18,219 |  |  | 13,201 |  |  | 12,424 |
Total interest expense | 374,017 |  |  | 52,570 |  |  | 79,121 |
Net interest income | 783,121 |  |  | 607,158 |  |  | 538,742 |
Provision for credit losses | 24,750 |  |  | 18,500 |  |  | 23,750 |
Net interest income, after provision for credit losses | 758,371 |  |  | 588,658 |  |  | 514,992 |
NON-INTEREST INCOME: |  |  |  |  |
Broker-dealer fee income | 46,503 |  |  | 22,880 |  |  | 26,317 |
Advisory fee income | 28,324 |  |  | 29,230 |  |  | — |
Banking and service fees | 32,938 |  |  | 28,752 |  |  | 29,137 |
Mortgage banking income | 7,101 |  |  | 19,198 |  |  | 42,641 |
Prepayment penalty fee income | 5,622 |  |  | 13,303 |  |  | 7,166 |
Total non-interest income | 120,488 |  |  | 113,363 |  |  | 105,261 |
NON-INTEREST EXPENSE: |  |  |  |  |
Salaries and related costs | 204,271 |  |  | 167,390 |  |  | 152,576 |
Data processing | 60,557 |  |  | 50,159 |  |  | 40,719 |
Depreciation and amortization | 23,387 |  |  | 24,596 |  |  | 24,124 |
Advertising and promotional | 37,150 |  |  | 13,580 |  |  | 14,212 |
Professional services | 29,268 |  |  | 22,482 |  |  | 22,241 |
Occupancy and equipment | 15,647 |  |  | 13,745 |  |  | 13,402 |
FDIC and regulatory fees | 15,534 |  |  | 11,823 |  |  | 10,603 |
Broker-dealer clearing charges | 13,433 |  |  | 15,184 |  |  | 11,152 |
General and administrative expense | 47,868 |  |  | 43,103 |  |  | 25,481 |
Total non-interest expense | 447,115 |  |  | 362,062 |  |  | 314,510 |
INCOME BEFORE INCOME TAXES | 431,744 |  |  | 339,959 |  |  | 305,743 |
INCOME TAXES | 124,579 |  |  | 99,243 |  |  | 90,036 |
NET INCOME | $ | 307,165 |  |  | $ | 240,716 |  |  | $ | 215,707 |
COMPREHENSIVE INCOME | $ | 303,488 |  |  | $ | 235,276 |  |  | $ | 219,151 |
Basic earnings per share | $ | 5.15 |  |  | $ | 4.04 |  |  | $ | 3.64 |
Diluted earnings per share | $ | 5.07 |  |  | $ | 3.97 |  |  | $ | 3.56 |

S-3

AXOS FINANCIAL, INC.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Unaudited)

| Year Ended June 30,
(Dollars in thousands) | 2023 |  | 2022 |  | 2021
NET INCOME | $ | 307,165 |  |  | $ | 240,716 |  |  | $ | 215,707 |
Net unrealized gain (loss) from available-for-sale securities, net of tax expense (benefit) of $(1,575), $(2,416), and $1,495 for the years ended June 30, 2023, 2022 and 2021, respectively. | (3,677) |  |  | (5,440) |  |  | 3,444 |
Other comprehensive income (loss) | $ | (3,677) |  |  | $ | (5,440) |  |  | $ | 3,444 |
COMPREHENSIVE INCOME | $ | 303,488 |  |  | $ | 235,276 |  |  | $ | 219,151 |

S-4

AXOS FINANCIAL, INC.
CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY
(Unaudited)

| Preferred Stock |  | Common Stock |  | Additional Paid-in Capital |  | Accumulated Other Comprehensive Income (Loss), Net of Income Tax |  | Retained Earnings |  | Treasury Stock |  | Total
|  |  |  |  | Number of Shares |  |  |  |  |  |  |
(Dollars in thousands) | Shares |  | Amount |  | Issued |  | Treasury |  | Outstanding |  | Amount |  |  |  |  |
Balance as of June 30, 2020 | 515 |  |  | $ | 5,063 |  |  | 67,323,053 |  |  | (7,710,418) |  |  | 59,612,635 |  |  | $ | 673 |  |  | $ | 411,873 |  |  | $ | (937) |  |  | $ | 1,009,299 |  |  | $ | (195,125) |  |  | $ | 1,230,846 |
Cumulative effect of change in accounting principle net of tax, adoption of ASU No. 2016-13 | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (37,088) |  |  | — |  |  | (37,088) |
Net income | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 215,707 |  |  | — |  |  | 215,707 |
Other comprehensive income (loss) | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 3,444 |  |  | — |  |  | — |  |  | 3,444 |
Cash dividends on preferred stock | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (103) |  |  | — |  |  | (103) |
Preferred stock - Series A redemption | (515) |  |  | (5,063) |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (87) |  |  | — |  |  | (5,150) |
Purchase of treasury stock | — |  |  | — |  |  | — |  |  | (753,597) |  |  | (753,597) |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (16,757) |  |  | (16,757) |
Stock-based compensation activity | — |  |  | — |  |  | 746,268 |  |  | (287,362) |  |  | 458,906 |  |  | 8 |  |  | 20,677 |  |  | — |  |  | — |  |  | (10,648) |  |  | 10,037 |
Balance as of June 30, 2021 | — |  |  | $ | — |  |  | 68,069,321 |  |  | (8,751,377) |  |  | 59,317,944 |  |  | $ | 681 |  |  | $ | 432,550 |  |  | $ | 2,507 |  |  | $ | 1,187,728 |  |  | $ | (222,530) |  |  | $ | 1,400,936 |
Net income | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 240,716 |  |  | — |  |  | 240,716 |
Other comprehensive income (loss) | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (5,440) |  |  | — |  |  | — |  |  | (5,440) |
Stock-based compensation activity | — |  |  | — |  |  | 790,401 |  |  | (330,396) |  |  | 460,005 |  |  | 8 |  |  | 21,234 |  |  | — |  |  | — |  |  | (14,481) |  |  | 6,761 |
Stock option exercises and tax benefits | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Balance as of June 30, 2022 | — |  |  | $ | — |  |  | 68,859,722 |  |  | (9,081,773) |  |  | 59,777,949 |  |  | $ | 689 |  |  | $ | 453,784 |  |  | $ | (2,933) |  |  | $ | 1,428,444 |  |  | $ | (237,011) |  |  | $ | 1,642,973 |
Net income | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  |  |  | 307,165 |  |  | — |  |  | 307,165 |
Other comprehensive income (loss) | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (3,677) |  |  | — |  |  | — |  |  | (3,677) |
Purchase of treasury stock | — |  |  | — |  |  | — |  |  | (1,321,161) |  |  | (1,321,161) |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (49,258) |  |  | (49,258) |
Stock-based compensation activity | — |  |  | — |  |  | 605,724 |  |  | (119,477) |  |  | 486,247 |  |  | 6 |  |  | 26,094 |  |  | — |  |  | — |  |  | (6,144) |  |  | 19,956 |
Balance as of June 30, 2023 | — |  |  | $ | — |  |  | 69,465,446 |  |  | (10,522,411) |  |  | 58,943,035 |  |  | $ | 695 |  |  | $ | 479,878 |  |  | $ | (6,610) |  |  | $ | 1,735,609 |  |  | $ | (292,413) |  |  | $ | 1,917,159 |

S-5

AXOS FINANCIAL, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
| Year Ended June 30,
(Dollars in thousands) | 2023 |  | 2022 |  | 2021
CASH FLOWS FROM OPERATING ACTIVITIES: |  |  |  |  |
Net income | $ | 307,165 |  |  | $ | 240,716 |  |  | $ | 215,707 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: |  |  |  |  |
Depreciation and amortization | 23,387 |  |  | 24,596 |  |  | 24,124 |
Other accretion and amortization | (1,616) |  |  | 3,933 |  |  | 4,752 |
Stock-based compensation expense | 26,100 |  |  | 21,242 |  |  | 20,685 |
Trading activity | 1,000 |  |  | 225 |  |  | (1,878) |
Provision for credit losses | 24,750 |  |  | 18,500 |  |  | 23,750 |
Deferred income taxes | (19,586) |  |  | (9,400) |  |  | (8,828) |
Origination of loans held for sale | (254,288) |  |  | (656,487) |  |  | (1,608,700) |
Unrealized and realized gains on loans held for sale | (7,999) |  |  | (16,237) |  |  | (41,172) |
Proceeds from sale of loans held for sale | 242,772 |  |  | 689,530 |  |  | 1,671,515 |
Amortization and change in fair value of mortgage servicing rights | 634 |  |  | (2,228) |  |  | 6,319 |
Net change in assets and liabilities which provide (use) cash: |  |  |  |  |
Securities borrowed | 204,641 |  |  | 280,108 |  |  | (396,720) |
Customer, broker-dealer and clearing receivables | 43,342 |  |  | (43,925) |  |  | (149,549) |
Other Assets | (13,724) |  |  | (107,314) |  |  | (7,460) |
Securities loaned | (314,568) |  |  | (254,588) |  |  | 473,043 |
Customer, broker-dealer and clearing payables | (66,177) |  |  | (23,771) |  |  | 187,811 |
Accounts payable and other liabilities | (7,874) |  |  | 45,382 |  |  | (817) |
Net cash provided by operating activities | $ | 187,959 |  |  | $ | 210,282 |  |  | $ | 412,582 |
CASH FLOWS FROM INVESTING ACTIVITIES: |  |  |  |  |
Purchases of available-for-sale investment securities | (32,669) |  |  | (143,733) |  |  | (122,338) |
Proceeds from sale and repayment of available-for-sale investment securities | 57,989 |  |  | 131,868 |  |  | 74,667 |
Purchase of stock of regulatory agencies | (108,724) |  |  | (54,350) |  |  | (305) |
Proceeds from redemption of stock of regulatory agencies | 108,724 |  |  | 54,350 |  |  | 920 |
Origination of loans held for investment | (8,346,443) |  |  | (10,325,104) |  |  | (5,761,303) |
Proceeds from sale of loans originally classified as held for investment | 14,185 |  |  | 106,324 |  |  | 80,049 |
Mortgage warehouse loan activity, net | 30,773 |  |  | 333,562 |  |  | (139,806) |
Proceeds from sale of other real estate owned and repossessed assets | 4,167 |  |  | 8,654 |  |  | 1,586 |
Proceeds from BOLI claim settlement | 2,778 |  |  | — |  |  | — |
Acquisition of business activity, net of cash acquired | (5,531) |  |  | (54,597) |  |  | — |
Purchase of loans and leases, net of discounts and premiums | (1,564) |  |  | (33,085) |  |  | (3,619) |
Principal repayments on loans | 5,916,179 |  |  | 7,220,931 |  |  | 5,013,817 |
Purchases of furniture, equipment, software and intangibles | (30,215) |  |  | (21,504) |  |  | (10,437) |
Net cash used in investing activities | $ | (2,390,351) |  |  | $ | (2,776,684) |  |  | $ | (866,769) |
CASH FLOWS FROM FINANCING ACTIVITIES: |  |  |  |  |
Net increase in deposits | 3,176,686 |  |  | 3,130,625 |  |  | (520,897) |
Repayments of the Federal Home Loan Bank term advances | (27,500) |  |  | (50,000) |  |  | (70,000) |
Net (repayment) proceeds of Federal Home Loan Bank other advances | — |  |  | (186,000) |  |  | 181,000 |
Net (repayment) proceeds of other borrowings | (84,300) |  |  | 75,300 |  |  | 14,700 |
Redemption of subordinated notes | — |  |  | — |  |  | (51,000) |
Repayment of Paycheck Protection Program Liquidity Facility advances | — |  |  | — |  |  | (151,952) |
Tax payments related to settlement of restricted stock units | (6,144) |  |  | (14,481) |  |  | (10,648) |
Purchase of treasury stock | (48,963) |  |  | — |  |  | (16,757) |
Redemption of Preferred Stock, Series A | — |  |  | — |  |  | (5,150) |
Cash dividends paid on preferred stock | — |  |  | — |  |  | (103) |
Payment of debt issuance costs | — |  |  | (2,120) |  |  | (2,748) |
Proceeds from issuance of subordinated notes | — |  |  | 150,000 |  |  | 175,000 |
Net cash provided by (used in) financing activities | $ | 3,009,779 |  |  | $ | 3,103,324 |  |  | $ | (458,555) |
NET CHANGE IN CASH AND CASH EQUIVALENTS | $ | 807,387 |  |  | $ | 536,922 |  |  | $ | (912,742) |
CASH AND CASH EQUIVALENTS—Beginning of year | $ | 1,574,699 |  |  | $ | 1,037,777 |  |  | $ | 1,950,519 |
CASH AND CASH EQUIVALENTS—End of year | $ | 2,382,086 |  |  | $ | 1,574,699 |  |  | $ | 1,037,777 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: |  |  |  |  |
Interest paid on interest-bearing liabilities | $ | 368,311 |  |  | $ | 50,269 |  |  | $ | 77,995 |
Income taxes paid | 131,365 |  |  | 99,701 |  |  | 92,506 |
Transfers to other real estate and repossessed vehicles from loans held for investment | 12,664 |  |  | 2,134 |  |  | 1,903 |
Transfers from loans held for investment to loans held for sale | 14,185 |  |  | 105,884 |  |  | 71,136 |
Transfers from loans held for sale to loans and leases held for investment | 690 |  |  | 3,098 |  |  | 29,616 |
Operating lease liabilities from obtaining right of use assets | 3,400 |  |  | 6,876 |  |  | — |
Impact of adoption of ASC 326 on retained earnings | — |  |  | — |  |  | 37,088 |
Securities transferred from available-for-sale portfolio to other assets | — |  |  | — |  |  | 70,751 |

S-6

LOANS & ALLOWANCE FOR CREDIT LOSSES
The following table sets forth the composition of the loan portfolio as of the dates indicated:

(Unaudited) (Dollars in thousands) | June 30, 2023 |  | June 30, 2022
Single Family - Mortgage & Warehouse | $ | 4,173,833 |  |  | $ | 3,988,462 |
Multifamily and Commercial Mortgage | 3,082,225 |  |  | 2,877,680 |
Commercial Real Estate | 6,199,818 |  |  | 4,781,044 |
Commercial & Industrial - Non-RE | 2,639,650 |  |  | 2,028,128 |
Auto & Consumer | 546,264 |  |  | 567,228 |
Other | 10,236 |  |  | 11,134 |
Total gross loans | 16,652,026 |  |  | 14,253,676 |
Allowance for credit losses - loans | (166,680) |  |  | (148,617) |
Unaccreted premiums (discounts) and loan fees | (28,618) |  |  | (13,998) |
Total net loans | $ | 16,456,728 |  |  | $ | 14,091,061 |

S-7

SECURITIES
The amortized cost, carrying amount and fair value for the trading and available-for-sale securities at June 30, 2023 and June 30, 2022 were:

| June 30, 2023
| Trading |  | Available-for-sale |  |
(Unaudited) (Dollars in thousands) | Fair Value |  | Amortized Cost |  | Unrealized Gains |  | Unrealized Losses |  | Fair Value |  |  |  |  |  |  |  |
Mortgage-backed securities (MBS): |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S agencies 1 | $ | — |  |  | $ | 27,024 |  |  | $ | — |  |  | $ | (3,077) |  |  | $ | 23,947 |  |  |  |  |  |  |  |  |
Non-agency 2 | — |  |  | 210,271 |  |  | 711 |  |  | (5,977) |  |  | 205,005 |  |  |  |  |  |  |  |  |
Total mortgage-backed securities |  |  | 237,295 |  |  | 711 |  |  | (9,054) |  |  | 228,952 |  |  |  |  |  |  |  |  |
Non-MBS: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Municipal | 758 |  |  | 3,656 |  |  | — |  |  | (258) |  |  | 3,398 |  |  |  |  |  |  |  |  |
Asset-backed securities and structured notes | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  |  |  |  |  |  |  |
Total Non-MBS | 758 |  |  | 3,656 |  |  | — |  |  | (258) |  |  | 3,398 |  |  |  |  |  |  |  |  |
Total debt securities | $ | 758 |  |  | $ | 240,951 |  |  | $ | 711 |  |  | $ | (9,312) |  |  | $ | 232,350 |  |  |  |  |  |  |  |  |
| June 30, 2022
| Trading |  | Available-for-sale |  |
(Unaudited) (Dollars in thousands) | Fair Value |  | Amortized Cost |  | Unrealized Gains |  | Unrealized Losses |  | Fair Value |  |  |  |  |  |  |  |
Mortgage-backed securities (MBS): |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S agencies 1 | $ | — |  |  | $ | 27,722 |  |  | $ | 9 |  |  | $ | (2,406) |  |  | $ | 25,325 |  |  |  |  |  |  |  |  |
Non-agency 2 | — |  |  | 187,616 |  |  | 1,832 |  |  | (2,634) |  |  | 186,814 |  |  |  |  |  |  |  |  |
Total mortgage-backed securities | — |  |  | 215,338 |  |  | 1,841 |  |  | (5,040) |  |  | 212,139 |  |  |  |  |  |  |  |  |
Non-MBS: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Municipal | 1,758 |  |  | 3,529 |  |  | — |  |  | (281) |  |  | 3,248 |  |  |  |  |  |  |  |  |
Asset-backed securities and structured notes | — |  |  | 47,000 |  |  | 131 |  |  | — |  |  | 47,131 |  |  |  |  |  |  |  |  |
Total Non-MBS | 1,758 |  |  | 50,529 |  |  | 131 |  |  | (281) |  |  | 50,379 |  |  |  |  |  |  |  |  |
Total debt securities | $ | 1,758 |  |  | $ | 265,867 |  |  | $ | 1,972 |  |  | $ | (5,321) |  |  | $ | 262,518 |  |  |  |  |  |  |  |  |

1 Includes securities guaranteed by Ginnie Mae, a U.S. government agency, and the government sponsored enterprises Fannie Mae and Freddie Mac.
2 Private sponsors of securities collateralized primarily by first-lien mortgage loans on commercial properties or by pools of 1-4 family residential first mortgages. Primarily super senior securities secured by Alt-A or pay-option ARM mortgages.
S-8

DEPOSITS
The following table sets forth the composition of deposits by type and weighted average interest rate as of the dates indicated:

(Unaudited) | June 30, 2023 |  | June 30, 2022
(Dollars in thousands) | Amount |  | Rate 1 |  | Amount |  | Rate 1
Non-interest bearing | $ | 2,898,150 |  |  | — | % |  | $ | 5,033,970 |  |  | — | %
Interest bearing: |  |  |  |  |  |  |
Demand | 3,334,615 |  |  | 2.43 | % |  | 3,611,889 |  |  | 0.61 | %
Savings | 9,575,781 |  |  | 4.20 | % |  | 4,245,555 |  |  | 0.95 | %
Total interest-bearing demand and savings | 12,910,396 |  |  | 3.74 | % |  | 7,857,444 |  |  | 0.79 | %
Time deposits: |  |  |  |  |  |  |
$250 and under | 932,436 |  |  | 3.72 | % |  | 651,392 |  |  | 1.22 | %
Greater than $250 | 382,126 |  |  | 4.36 | % |  | 403,616 |  |  | 1.41 | %
Total time deposits | 1,314,562 |  |  | 3.91 | % |  | 1,055,008 |  |  | 1.25 | %
Total interest bearing 2 | 14,224,958 |  |  | 3.76 | % |  | 8,912,452 |  |  | 0.85 | %
Total deposits | $ | 17,123,108 |  |  | 3.12 | % |  | $ | 13,946,422 |  |  | 0.54 | %

1. Based on weighted-average stated interest rates at end of period.
2. The total interest-bearing includes brokered deposits of $2,028.5 million and $1,032.7 million as of June 30, 2023 and June 30, 2022, respectively, of which $691 million and $250 million, respectively, are time deposits classified as $250,000 and under.
The number of deposit accounts at the end of each of the last two fiscal years is set forth below:

| At June 30,
| 2023 |  | 2022 |  |  |  |  |  |
Non-interest-bearing | 45,640 |  |  | 42,372 |  |  |  |  |  |  |
Interest-bearing checking and savings accounts | 427,299 |  |  | 344,593 |  |  |  |  |  |  |
Time deposits | 6,340 |  |  | 8,734 |  |  |  |  |  |  |
Total number of deposit accounts | 479,279 |  |  | 395,699 |  |  |  |  |  |  |

S-9

AVERAGE BALANCES, NET INTEREST INCOME, YIELDS EARNED AND RATES PAID
The following table presents information regarding (i) average balances; (ii) the total amount of interest income from interest-earning assets and the weighted average yields on such assets; (iii) the total amount of interest expense on interest-bearing liabilities and the weighted average rates paid on such liabilities; (iv) net interest income; (v) interest rate spread; and (vi) net interest margin:

| For the Three Months Ended
| June 30,
| 2023 |  | 2022
(Unaudited) (Dollars in thousands) | Average Balance 1 |  | Interest Income / Expense |  | Average Yields Earned / Rates Paid 2 |  | Average Balance 1 |  | Interest Income / Expense |  | Average Yields Earned / Rates Paid 2
Assets: |  |  |  |  |  |  |  |  |  |  |
Loans 3,4 | $ | 16,242,438 |  |  | $ | 305,011 |  |  | 7.51 | % |  | $ | 13,704,420 |  |  | $ | 174,110 |  |  | 5.08 | %
Interest-earning deposits in other financial institutions | 2,601,097 |  |  | 32,492 |  |  | 5.00 | % |  | 1,239,655 |  |  | 2,597 |  |  | 0.84 | %
Mortgage-backed and other investment securities 4 | 254,133 |  |  | 3,815 |  |  | 6.00 | % |  | 247,655 |  |  | 2,648 |  |  | 4.28 | %
Securities borrowed and margin lending | 355,687 |  |  | 4,815 |  |  | 5.41 | % |  | 592,234 |  |  | 4,462 |  |  | 3.01 | %
Stock of the regulatory agencies | 17,250 |  |  | 297 |  |  | 6.89 | % |  | 24,852 |  |  | 344 |  |  | 5.54 | %
Total interest-earning assets | 19,470,605 |  |  | 346,430 |  |  | 7.12 | % |  | 15,808,816 |  |  | 184,161 |  |  | 4.66 | %
Non-interest-earning assets | 715,554 |  |  |  |  |  |  | 776,659 |  |  |  |  |
Total assets | $ | 20,186,159 |  |  |  |  |  |  | $ | 16,585,475 |  |  |  |  |
Liabilities and Stockholders’ Equity: |  |  |  |  |  |  |  |  |  |  |
Interest-bearing demand and savings | $ | 12,507,836 |  |  | $ | 123,146 |  |  | 3.94 | % |  | $ | 7,007,335 |  |  | $ | 8,379 |  |  | 0.48 | %
Time deposits | 1,418,347 |  |  | 14,043 |  |  | 3.96 | % |  | 1,012,705 |  |  | 2,800 |  |  | 1.11 | %
Securities loaned | 184,608 |  |  | 356 |  |  | 0.77 | % |  | 408,416 |  |  | 503 |  |  | 0.49 | %
Advances from the FHLB | 90,000 |  |  | 523 |  |  | 2.32 | % |  | 543,247 |  |  | 1,663 |  |  | 1.22 | %
Borrowings, subordinated notes and debentures | 357,645 |  |  | 4,608 |  |  | 5.15 | % |  | 448,548 |  |  | 5,406 |  |  | 4.82 | %
Total interest-bearing liabilities | 14,558,436 |  |  | 142,676 |  |  | 3.92 | % |  | 9,420,251 |  |  | 18,751 |  |  | 0.80 | %
Non-interest-bearing demand deposits | 3,117,796 |  |  |  |  |  |  | 4,695,748 |  |  |  |  |
Other non-interest-bearing liabilities | 631,415 |  |  |  |  |  |  | 829,995 |  |  |  |  |
Stockholders’ equity | 1,878,512 |  |  |  |  |  |  | 1,639,481 |  |  |  |  |
Total liabilities and stockholders’ equity | $ | 20,186,159 |  |  |  |  |  |  | $ | 16,585,475 |  |  |  |  |
Net interest income |  |  | $ | 203,754 |  |  |  |  |  |  | $ | 165,410 |  |  |
Interest rate spread 6 |  |  |  |  | 3.20 | % |  |  |  |  |  | 3.86 | %
Net interest margin 7 |  |  |  |  | 4.19 | % |  |  |  |  |  | 4.19 | %

1 Average balances are obtained from daily data.
2 Annualized.
3 Loans include loans held for sale, loan premiums and unearned fees.
4 Interest income includes reductions for amortization of loan and investment securities premiums and earnings from accretion of discounts and loan fees.
5 Margin lending is the significant component of the asset titled customer, broker-dealer and clearing receivables on the unaudited condensed consolidated balance sheets.
6 Interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average rate paid on interest-bearing liabilities.
7 Net interest margin represents net interest income as a percentage of average interest-earning assets.
S-10

AVERAGE BALANCES, NET INTEREST INCOME, YIELDS EARNED AND RATES PAID
The following tables set forth, for the periods indicated, information regarding (i) average balances; (ii) the total amount of interest income from interest-earning assets and the weighted average yields on such assets; (iii) the total amount of interest expense on interest-bearing liabilities and the weighted average rates paid on such liabilities; (iv) net interest income; (v) interest rate spread; and (vi) net interest margin:

| For the Fiscal Years Ended June 30,
| 2023 |  | 2022 |  | 2021
(Unaudited) (Dollars in thousands) | Average Balance 1 |  | Interest Income / Expense |  | Average Yields Earned / Rates Paid |  | Average Balance 1 |  | Interest Income / Expense |  | Average Yields Earned / Rates Paid |  | Average Balance 1 |  | Interest Income / Expense |  | Average Yields Earned / Rates Paid
Assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Loans 2,3 | $ | 15,571,290 |  |  | $ | 1,048,874 |  |  | 6.74 | % |  | $ | 12,576,873 |  |  | $ | 626,628 |  |  | 4.98 | % |  | $ | 11,332,020 |  |  | $ | 584,410 |  |  | 5.16 | %
Interest-earning deposits in other financial institutions | 1,761,902 |  |  | 73,467 |  |  | 4.17 | % |  | 1,233,983 |  |  | 4,501 |  |  | 0.36 | % |  | 1,600,811 |  |  | 2,185 |  |  | 0.14 | %
Mortgage-backed and other investment securities 3 | 259,473 |  |  | 14,669 |  |  | 5.65 | % |  | 176,951 |  |  | 6,952 |  |  | 3.93 | % |  | 192,420 |  |  | 9,560 |  |  | 4.97 | %
Securities borrowed and margin lending 4 | 388,386 |  |  | 18,657 |  |  | 4.80 | % |  | 687,363 |  |  | 20,512 |  |  | 2.98 | % |  | 613,735 |  |  | 20,466 |  |  | 3.33 | %
Stock of the regulatory agencies | 20,936 |  |  | 1,471 |  |  | 7.03 | % |  | 21,844 |  |  | 1,135 |  |  | 5.20 | % |  | 20,588 |  |  | 1,242 |  |  | 6.03 | %
Total interest-earning assets | 18,001,987 |  |  | 1,157,138 |  |  | 6.43 | % |  | 14,697,014 |  |  | 659,728 |  |  | 4.49 | % |  | 13,759,574 |  |  | 617,863 |  |  | 4.49 | %
Non-interest-earning assets | 735,783 |  |  |  |  |  |  | 658,494 |  |  |  |  |  |  | 394,085 |  |  |  |  |
Total assets | $ | 18,737,770 |  |  |  |  |  |  | $ | 15,355,508 |  |  |  |  |  |  | $ | 14,153,659 |  |  |  |  |
Liabilities and Stockholders’ Equity: |  |  |  |  |  |  |  |  |  |  |  |
Interest-bearing demand and savings | $ | 10,211,737 |  |  | $ | 305,655 |  |  | 2.99 | % |  | $ | 6,773,321 |  |  | $ | 20,053 |  |  | 0.30 | % |  | $ | 7,204,698 |  |  | $ | 29,031 |  |  | 0.40 | %
Time deposits | 1,225,537 |  |  | 33,826 |  |  | 2.76 | % |  | 1,226,774 |  |  | 13,567 |  |  | 1.11 | % |  | 1,825,795 |  |  | 31,498 |  |  | 1.73 | %
Securities loaned | 303,932 |  |  | 3,673 |  |  | 1.21 | % |  | 469,051 |  |  | 1,124 |  |  | 0.24 | % |  | 412,385 |  |  | 1,496 |  |  | 0.36 | %
Advances from the FHLB | 423,612 |  |  | 12,644 |  |  | 2.98 | % |  | 349,796 |  |  | 4,625 |  |  | 1.32 | % |  | 211,077 |  |  | 4,672 |  |  | 2.21 | %
Borrowings, subordinated notes and debentures | 362,733 |  |  | 18,219 |  |  | 5.02 | % |  | 302,454 |  |  | 13,201 |  |  | 4.36 | % |  | 340,699 |  |  | 12,424 |  |  | 3.65 | %
Total interest-bearing liabilities | 12,527,551 |  |  | 374,017 |  |  | 2.99 | % |  | 9,121,396 |  |  | 52,570 |  |  | 0.58 | % |  | 9,994,654 |  |  | 79,121 |  |  | 0.79 | %
Non-interest-bearing demand deposits | 3,730,524 |  |  |  |  |  |  | 3,927,195 |  |  |  |  |  |  | 2,182,009 |  |  |  |  |
Other non-interest-bearing liabilities | 695,617 |  |  |  |  |  |  | 764,542 |  |  |  |  |  |  | 671,581 |  |  |  |  |
Stockholders’ equity | 1,784,078 |  |  |  |  |  |  | 1,542,375 |  |  |  |  |  |  | 1,305,415 |  |  |  |  |
Total liabilities and stockholders’ equity | $ | 18,737,770 |  |  |  |  |  |  | $ | 15,355,508 |  |  |  |  |  |  | $ | 14,153,659 |  |  |  |  |
Net interest income |  |  | $ | 783,121 |  |  |  |  |  |  | $ | 607,158 |  |  |  |  |  |  | $ | 538,742 |  |  |
Interest rate spread 5 |  |  |  |  | 3.44 | % |  |  |  |  |  | 3.91 | % |  |  |  |  |  | 3.70 | %
Net interest margin 6 |  |  |  |  | 4.35 | % |  |  |  |  |  | 4.13 | % |  |  |  |  |  | 3.92 | %

1 Average balances are obtained from daily data.
2 Loans include loans held for sale, loan premiums and unearned fees.
3 Interest income includes reductions for amortization of loan and investment securities premiums and earnings from accretion of discounts and loan fees. y.
4 Margin lending is the significant component of the asset titled customer, broker-dealer and clearing receivables on the unaudited condensed consolidated balance sheets.
5 Interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average rate paid on interest-bearing liabilities.
6 Net interest margin represents net interest income as a percentage of average interest-earning assets.
S-11

AVERAGE BALANCES, NET INTEREST INCOME, YIELDS EARNED AND RATES PAID
BANKING BUSINESS
The following table presents our Banking Business segment’s information regarding (i) average balances; (ii) the total amount of interest income from interest-earning assets and the weighted average yields on such assets; (iii) the total amount of interest expense on interest-bearing liabilities and the weighted average rates paid on such liabilities; (iv) net interest income; (v) interest rate spread; and (vi) net interest margin for the three months ended June 30, 2023 and 2022:

| For the Three Months Ended
| June 30,
| 2023 |  | 2022
(Dollars in thousands) | Average Balance 1 |  | Interest Income/ Expense |  | Average Yields Earned/Rates Paid 2 |  | Average Balance 1 |  | Interest Income/ Expense |  | Average Yields Earned/Rates Paid 2
Assets: |  |  |  |  |  |  |  |  |  |  |
Loans 3, 4 | $ | 16,220,701 |  |  | $ | 304,676 |  |  | 7.51 | % |  | $ | 13,672,947 |  |  | $ | 173,334 |  |  | 5.07 | %
Interest-earning deposits in other financial institutions | 2,438,379 |  |  | 30,693 |  |  | 5.03 | % |  | 929,695 |  |  | 1,993 |  |  | 0.86 | %
Mortgage-backed and other investment securities 4 | 260,538 |  |  | 3,850 |  |  | 5.91 | % |  | 265,080 |  |  | 2,745 |  |  | 4.14 | %
Stock of the regulatory agencies | 17,250 |  |  | 295 |  |  | 6.84 | % |  | 21,734 |  |  | 344 |  |  | 6.33 | %
Total interest-earning assets | 18,936,868 |  |  | 339,514 |  |  | 7.17 | % |  | 14,889,456 |  |  | 178,416 |  |  | 4.79 | %
Non-interest-earning assets | 371,710 |  |  |  |  |  |  | 298,721 |  |  |  |  |
Total assets | $ | 19,308,578 |  |  |  |  |  |  | $ | 15,188,177 |  |  |  |  |
Liabilities and Stockholders’ Equity: |  |  |  |  |  |  |  |  |  |  |
Interest-bearing demand and savings | $ | 12,570,893 |  |  | $ | 123,178 |  |  | 3.92 | % |  | $ | 7,148,061 |  |  | $ | 8,449 |  |  | 0.47 | %
Time deposits | 1,418,347 |  |  | 14,043 |  |  | 3.96 | % |  | 1,012,705 |  |  | 2,800 |  |  | 1.11 | %
Advances from the FHLB | 90,000 |  |  | 523 |  |  | 2.32 | % |  | 543,247 |  |  | 1,663 |  |  | 1.22 | %
Borrowings, subordinated notes and debentures | 34 |  |  | — |  |  | — | % |  | 33 |  |  | — |  |  | — | %
Total interest-bearing liabilities | 14,079,274 |  |  | 137,744 |  |  | 3.91 | % |  | 8,704,046 |  |  | 12,912 |  |  | 0.59 | %
Non-interest-bearing demand deposits | 3,177,475 |  |  |  |  |  |  | 4,770,915 |  |  |  |  |
Other non-interest-bearing liabilities | 192,007 |  |  |  |  |  |  | 139,753 |  |  |  |  |
Stockholders’ equity | 1,859,822 |  |  |  |  |  |  | 1,573,463 |  |  |  |  |
Total liabilities and stockholders’ equity | $ | 19,308,578 |  |  |  |  |  |  | $ | 15,188,177 |  |  |  |  |
Net interest income |  |  | $ | 201,770 |  |  |  |  |  |  | $ | 165,504 |  |  |
Interest rate spread 5 |  |  |  |  | 3.26 | % |  |  |  |  |  | 4.20 | %
Net interest margin 6 |  |  |  |  | 4.26 | % |  |  |  |  |  | 4.45 | %

1. Average balances are obtained from daily data.
2. Annualized.
3. Loans include loans held for sale, loan premiums and unearned fees.
4. Interest income includes reductions for amortization of loan and investment securities premiums and earnings from accretion of discounts and loan fees.
5 Interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average rate paid on interest-bearing liabilities.
6 Net interest margin represents net interest income as a percentage of average interest-earning assets.
S-12

SECURITIES BUSINESS
The following table provides selected information for Axos Clearing LLC as of each period indicated:

(Dollars in thousands) | June 30, 2023 |  | June 30, 2022
FDIC insured deposit program balances at banks | $ | 1,627,053 |  |  | $ | 3,452,358 |
Cash reserves for the benefit of customers | $ | 149,059 |  |  | $ | 372,112 |
Securities lending: |  |  |
Interest-earning assets – stock borrowed | $ | 134,339 |  |  | $ | 338,980 |
Interest-bearing liabilities – stock loaned | $ | 159,832 |  |  | $ | 474,400 |

S-13