AXOS FINANCIAL, INC.
CONSOLIDATED BALANCE SHEETS
(Unaudited)
At June 30,
(Dollars in thousands, except par and stated value)20232022
ASSETS
Cash and cash equivalents$2,233,027 $1,202,587 
Cash segregated for regulatory purposes149,059 372,112 
Total cash, cash equivalents, cash segregated2,382,086 1,574,699 
Securities:
Trading758 1,758 
Available-for-sale232,350 262,518 
Stock of regulatory agencies21,510 20,368 
Loans held for sale, carried at fair value23,203 4,973 
Loans held for sale, lower of cost or fair value776 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 borrowed134,339 338,980 
Customer, broker-dealer and clearing receivables374,074 417,417 
Goodwill and other intangible assets—net152,149 156,405 
Other assets545,053 496,835 
TOTAL ASSETS$20,348,469 $17,401,165 
LIABILITIES AND STOCKHOLDERS’ EQUITY
Deposits:
Non-interest bearing$2,898,150 $5,033,970 
Interest bearing14,224,958 8,912,452 
Total deposits17,123,108 13,946,422 
Advances from the Federal Home Loan Bank90,000 117,500 
Borrowings, subordinated notes and debentures361,779 445,244 
Securities loaned159,832 474,400 
Customer, broker-dealer and clearing payables445,477 511,654 
Accounts payable and other liabilities251,114 262,972 
Total liabilities18,431,310 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, 2022695 689 
Additional paid-in capital479,878 453,784 
Accumulated other comprehensive income (loss)—net of tax(6,610)(2,933)
Retained earnings1,735,609 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’ equity1,917,159 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)20232022
INTEREST AND DIVIDEND INCOME:
Loans, including fees$305,011 $174,110 
Securities borrowed and customer receivables4,815 4,462 
Investments and other36,604 5,589 
Total interest and dividend income346,430 184,161 
INTEREST EXPENSE:
Deposits137,189 11,179 
Advances from the Federal Home Loan Bank523 1,663 
Securities loaned356 503 
Other borrowings4,608 5,406 
Total interest expense142,676 18,751 
Net interest income203,754 165,410 
Provision for credit losses7,000 6,000 
Net interest income, after provision for credit losses196,754 159,410 
NON-INTEREST INCOME:
Broker-dealer fee income13,768 4,912 
Advisory fee income7,503 8,152 
Banking and service fees7,838 6,308 
Mortgage banking income1,988 3,498 
Prepayment penalty fee income1,608 4,230 
Total non-interest income32,705 27,100 
NON-INTEREST EXPENSE:
Salaries and related costs54,509 43,541 
Data processing16,095 13,594 
Depreciation and amortization5,665 6,022 
Advertising and promotional8,095 3,449 
Professional services5,979 7,649 
Occupancy and equipment4,037 3,480 
FDIC and regulatory fees4,371 3,967 
Broker-dealer clearing charges3,509 3,940 
General and administrative expense10,196 19,151 
Total non-interest expense112,456 104,793 
INCOME BEFORE INCOME TAXES117,003 81,717 
INCOME TAXES29,647 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)202320222021
INTEREST AND DIVIDEND INCOME:
Loans, including fees$1,048,874 $626,628 $584,410 
Securities borrowed and customer receivables18,657 20,512 20,466 
Investments and other89,607 12,588 12,987 
Total interest and dividend income1,157,138 659,728 617,863 
INTEREST EXPENSE:
Deposits339,481 33,620 60,529 
Advances from the Federal Home Loan Bank12,644 4,625 4,672 
Securities loaned3,673 1,124 1,496 
Other borrowings18,219 13,201 12,424 
Total interest expense374,017 52,570 79,121 
Net interest income783,121 607,158 538,742 
Provision for credit losses24,750 18,500 23,750 
Net interest income, after provision for credit losses758,371 588,658 514,992 
NON-INTEREST INCOME:
Broker-dealer fee income46,503 22,880 26,317 
Advisory fee income28,324 29,230 — 
Banking and service fees32,938 28,752 29,137 
Mortgage banking income7,101 19,198 42,641 
Prepayment penalty fee income5,622 13,303 7,166 
Total non-interest income120,488 113,363 105,261 
NON-INTEREST EXPENSE:
Salaries and related costs204,271 167,390 152,576 
Data processing60,557 50,159 40,719 
Depreciation and amortization23,387 24,596 24,124 
Advertising and promotional37,150 13,580 14,212 
Professional services29,268 22,482 22,241 
Occupancy and equipment15,647 13,745 13,402 
FDIC and regulatory fees15,534 11,823 10,603 
Broker-dealer clearing charges13,433 15,184 11,152 
General and administrative expense47,868 43,103 25,481 
Total non-interest expense447,115 362,062 314,510 
INCOME BEFORE INCOME TAXES431,744 339,959 305,743 
INCOME TAXES124,579 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)202320222021
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 StockCommon StockAdditional
Paid-in
Capital		Accumulated Other Comprehensive Income (Loss), Net of
Income Tax		Retained
Earnings		Treasury
Stock		Total
  Number of Shares 
(Dollars in thousands)SharesAmountIssuedTreasuryOutstandingAmount
Balance as of June 30, 2020515 $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)202320222021
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 amortization23,387 24,596 24,124 
Other accretion and amortization(1,616)3,933 4,752 
Stock-based compensation expense26,100 21,242 20,685 
Trading activity1,000 225 (1,878)
Provision for credit losses24,750 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 sale242,772 689,530 1,671,515 
Amortization and change in fair value of mortgage servicing rights634 (2,228)6,319 
Net change in assets and liabilities which provide (use) cash:
Securities borrowed204,641 280,108 (396,720)
Customer, broker-dealer and clearing receivables43,342 (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 $412,582 
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of available-for-sale investment securities(32,669)(143,733)(122,338)
Proceeds from sale and repayment of available-for-sale investment securities57,989 131,868 74,667 
Purchase of stock of regulatory agencies(108,724)(54,350)(305)
Proceeds from redemption of stock of regulatory agencies108,724 54,350 920 
Origination of loans held for investment(8,346,443)(10,325,104)(5,761,303)
Proceeds from sale of loans originally classified as held for investment14,185 106,324 80,049 
Mortgage warehouse loan activity, net30,773 333,562 (139,806)
Proceeds from sale of other real estate owned and repossessed assets4,167 8,654 1,586 
Proceeds from BOLI claim settlement2,778 — — 
Acquisition of business activity, net of cash acquired(5,531)(54,597)— 
Purchase of loans and leases, net of discounts and premiums(1,564)(33,085)(3,619)
Principal repayments on loans5,916,179 7,220,931 5,013,817 
Purchases of furniture, equipment, software and intangibles(30,215)(21,504)(10,437)
Net cash used in investing activities$(2,390,351)$(2,776,684)$(866,769)
CASH FLOWS FROM FINANCING ACTIVITIES:
Net increase in deposits3,176,686 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 paid131,365 99,701 92,506 
Transfers to other real estate and repossessed vehicles from loans held for investment12,664 2,134 1,903 
Transfers from loans held for investment to loans held for sale14,185 105,884 71,136 
Transfers from loans held for sale to loans and leases held for investment690 3,098 29,616 
Operating lease liabilities from obtaining right of use assets3,400 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, 2023June 30, 2022
Single Family - Mortgage & Warehouse$4,173,833 $3,988,462 
Multifamily and Commercial Mortgage3,082,225 2,877,680 
Commercial Real Estate6,199,818 4,781,044 
Commercial & Industrial - Non-RE2,639,650 2,028,128 
Auto & Consumer546,264 567,228 
Other10,236 11,134 
  Total gross loans16,652,026 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
TradingAvailable-for-sale
(Unaudited)
(Dollars in thousands) 		Fair
Value		Amortized
Cost		Unrealized
Gains		Unrealized
Losses		Fair
Value
Mortgage-backed securities (MBS):
U.S agencies1
$— $27,024 $— $(3,077)$23,947 
Non-agency2
— 210,271 711 (5,977)205,005 
Total mortgage-backed securities237,295 711 (9,054)228,952 
Non-MBS:
Municipal758 3,656 — (258)3,398 
Asset-backed securities and structured notes— — — — — 
Total Non-MBS758 3,656 — (258)3,398 
Total debt securities$758 $240,951 $711 $(9,312)$232,350 
  June 30, 2022
TradingAvailable-for-sale
(Unaudited)
(Dollars in thousands) 		Fair
Value		Amortized
Cost		Unrealized
Gains		Unrealized
Losses		Fair
Value
Mortgage-backed securities (MBS):
U.S agencies1
$— $27,722 $9 $(2,406)$25,325 
Non-agency2
— 187,616 1,832 (2,634)186,814 
Total mortgage-backed securities— 215,338 1,841 (5,040)212,139 
Non-MBS:
Municipal1,758 3,529 — (281)3,248 
Asset-backed securities and structured notes— 47,000 131 — 47,131 
Total Non-MBS1,758 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, 2023June 30, 2022
(Dollars in thousands)Amount
Rate1
Amount
Rate1
Non-interest bearing$2,898,150 — %$5,033,970 — %
Interest bearing:
Demand3,334,615 2.43 %3,611,889 0.61 %
Savings9,575,781 4.20 %4,245,555 0.95 %
       Total interest-bearing demand and savings12,910,396 3.74 %7,857,444 0.79 %
Time deposits:
$250 and under932,436 3.72 %651,392 1.22 %
Greater than $250382,126 4.36 %403,616 1.41 %
       Total time deposits1,314,562 3.91 %1,055,008 1.25 %
Total interest bearing2
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,
20232022
Non-interest-bearing45,640 42,372 
Interest-bearing checking and savings accounts427,299 344,593 
Time deposits6,340 8,734 
Total number of deposit accounts479,279 395,699 

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,
20232022
(Unaudited)
(Dollars in thousands)
Average
Balance1
Interest
Income /
Expense
Average
Yields
Earned /
Rates Paid2
Average
Balance1
Interest
Income /
Expense
Average
Yields
Earned /
Rates Paid2
Assets:
Loans3,4
$16,242,438 $305,011 7.51 %$13,704,420 $174,110 5.08 %
Interest-earning deposits in other financial institutions2,601,097 32,492 5.00 %1,239,655 2,597 0.84 %
Mortgage-backed and other investment securities4
254,133 3,815 6.00 %247,655 2,648 4.28 %
Securities borrowed and margin lending355,687 4,815 5.41 %592,234 4,462 3.01 %
Stock of the regulatory agencies17,250 297 6.89 %24,852 344 5.54 %
Total interest-earning assets19,470,605 346,430 7.12 %15,808,816 184,161 4.66 %
Non-interest-earning assets715,554 776,659 
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 deposits1,418,347 14,043 3.96 %1,012,705 2,800 1.11 %
Securities loaned184,608 356 0.77 %408,416 503 0.49 %
Advances from the FHLB90,000 523 2.32 %543,247 1,663 1.22 %
Borrowings, subordinated notes and debentures357,645 4,608 5.15 %448,548 5,406 4.82 %
Total interest-bearing liabilities14,558,436 142,676 3.92 %9,420,251 18,751 0.80 %
Non-interest-bearing demand deposits3,117,796 4,695,748 
Other non-interest-bearing liabilities631,415 829,995 
Stockholders’ equity1,878,512 1,639,481 
Total liabilities and stockholders’ equity$20,186,159  $16,585,475  
Net interest income$203,754 $165,410 
Interest rate spread6
3.20 %3.86 %
Net interest margin7
  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,
202320222021
(Unaudited)
(Dollars in thousands)
Average
Balance1
Interest
Income /
Expense		Average
Yields
Earned /
Rates Paid
Average
Balance1
Interest
Income /
Expense		Average
Yields
Earned /
Rates Paid
Average
Balance1
Interest
Income /
Expense		Average
Yields
Earned /
Rates Paid
Assets:
Loans2,3
$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 institutions1,761,902 73,467 4.17 %1,233,983 4,501 0.36 %1,600,811 2,185 0.14 %
Mortgage-backed and other investment securities3
259,473 14,669 5.65 %176,951 6,952 3.93 %192,420 9,560 4.97 %
Securities borrowed and margin lending4
388,386 18,657 4.80 %687,363 20,512 2.98 %613,735 20,466 3.33 %
Stock of the regulatory agencies20,936 1,471 7.03 %21,844 1,135 5.20 %20,588 1,242 6.03 %
Total interest-earning assets18,001,987 1,157,138 6.43 %14,697,014 659,728 4.49 %13,759,574 617,863 4.49 %
Non-interest-earning assets735,783 658,494 394,085 
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 deposits1,225,537 33,826 2.76 %1,226,774 13,567 1.11 %1,825,795 31,498 1.73 %
Securities loaned303,932 3,673 1.21 %469,051 1,124 0.24 %412,385 1,496 0.36 %
Advances from the FHLB423,612 12,644 2.98 %349,796 4,625 1.32 %211,077 4,672 2.21 %
Borrowings, subordinated notes and debentures362,733 18,219 5.02 %302,454 13,201 4.36 %340,699 12,424 3.65 %
Total interest-bearing liabilities12,527,551 374,017 2.99 %9,121,396 52,570 0.58 %9,994,654 79,121 0.79 %
Non-interest-bearing demand deposits3,730,524 3,927,195 2,182,009 
Other non-interest-bearing liabilities695,617 764,542 671,581 
Stockholders’ equity1,784,078 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 spread5
3.44 %3.91 %3.70 %
Net interest margin6
  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.

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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,
 20232022
(Dollars in thousands)
Average
Balance1
Interest
Income/
Expense
Average Yields
Earned/Rates
Paid2
Average
Balance1
Interest
Income/
Expense
Average Yields
Earned/Rates
Paid2
Assets:
Loans3, 4
$16,220,701 $304,676 7.51 %$13,672,947 $173,334 5.07 %
Interest-earning deposits in other financial institutions2,438,379 30,693 5.03 %929,695 1,993 0.86 %
Mortgage-backed and other investment securities4
260,538 3,850 5.91 %265,080 2,745 4.14 %
Stock of the regulatory agencies17,250 295 6.84 %21,734 344 6.33 %
Total interest-earning assets18,936,868 339,514 7.17 %14,889,456 178,416 4.79 %
Non-interest-earning assets371,710 298,721 
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 deposits1,418,347 14,043 3.96 %1,012,705 2,800 1.11 %
Advances from the FHLB90,000 523 2.32 %543,247 1,663 1.22 %
Borrowings, subordinated notes and debentures
34 — — %33 — — %
Total interest-bearing liabilities14,079,274 137,744 3.91 %8,704,046 12,912 0.59 %
Non-interest-bearing demand deposits3,177,475 4,770,915 
Other non-interest-bearing liabilities192,007 139,753 
Stockholders’ equity1,859,822 1,573,463 
Total liabilities and stockholders’ equity$19,308,578 $15,188,177 
Net interest income$201,770 $165,504 
Interest rate spread5
3.26 %4.20 %
Net interest margin6
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.

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SECURITIES BUSINESS
The following table provides selected information for Axos Clearing LLC as of each period indicated:
(Dollars in thousands)June 30, 2023June 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 

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