EX-99.2 6 pressrelease-financialsche.htm EX-99.2
AXOS FINANCIAL, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS

| At June 30,
(Dollars in thousands, except par value) | 2025 |  | 2024
ASSETS |  |  |
Cash and cash equivalents | $ | 1,933,845 |  |  | $ | 1,979,979 |
Restricted cash | 242,509 |  |  | 205,797 |
Total cash, cash equivalents and restricted cash | 2,176,354 |  |  | 2,185,776 |
Trading securities | 649 |  |  | 353 |
Available-for-sale securities | 66,008 |  |  | 141,611 |
Stock of regulatory agencies | 35,163 |  |  | 21,957 |
Loans held for sale, carried at fair value | 10,012 |  |  | 16,482 |
Loans—net of allowance for credit losses of $290,049 as of June 30, 2025 and $260,542 as of June 30, 2024 | 21,049,610 |  |  | 19,231,385 |
Servicing rights, carried at fair value | 27,218 |  |  | 28,924 |
Securities borrowed | 139,396 |  |  | 67,212 |
Customer, broker-dealer and clearing receivables | 252,720 |  |  | 240,028 |
Goodwill and other intangible assets—net | 134,502 |  |  | 141,769 |
Other assets | 891,446 |  |  | 779,837 |
TOTAL ASSETS | $ | 24,783,078 |  |  | $ | 22,855,334 |
LIABILITIES AND STOCKHOLDERS’ EQUITY |  |  |
Deposits: |  |  |
Non-interest bearing | $ | 3,040,696 |  |  | $ | 2,975,631 |
Interest bearing | 17,788,847 |  |  | 16,383,586 |
Total deposits | 20,829,543 |  |  | 19,359,217 |
Advances from the Federal Home Loan Bank | 60,000 |  |  | 90,000 |
Borrowings, subordinated notes and debentures | 312,671 |  |  | 325,679 |
Securities loaned | 139,426 |  |  | 74,177 |
Customer, broker-dealer and clearing payables | 350,606 |  |  | 301,127 |
Accounts payable and other liabilities | 410,155 |  |  | 414,538 |
Total liabilities | 22,102,401 |  |  | 20,564,738 |
COMMITMENTS AND CONTINGENCIES |  |  |
STOCKHOLDERS’ EQUITY: |  |  |
Common stock—$0.01 par value; 150,000,000 shares authorized, 71,101,642 shares issued and 56,483,617 shares outstanding as of June 30, 2025; 70,221,632 shares issued and 56,894,565 shares outstanding as of June 30, 2024 | 711 |  |  | 702 |
Additional paid-in capital | 548,895 |  |  | 510,232 |
Accumulated other comprehensive income (loss)—net of income tax | 348 |  |  | (2,466) |
Retained earnings | 2,618,525 |  |  | 2,185,617 |
Treasury stock, at cost; 14,618,025 shares as of June 30, 2025 and 13,327,067 shares as of June 30, 2024 | (487,802) |  |  | (403,489) |
Total stockholders’ equity | 2,680,677 |  |  | 2,290,596 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 24,783,078 |  |  | $ | 22,855,334 |

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

| Three Months Ended
| June 30,
(Dollars in thousands, except earnings per common share) | 2025 |  | 2024
INTEREST AND DIVIDEND INCOME: |  |  |
Loans, including fees | $ | 410,910 |  |  | $ | 409,466 |
Securities borrowed and customer receivables | 6,699 |  |  | 6,244 |
Investments and other | 24,804 |  |  | 37,718 |
Total interest and dividend income | 442,413 |  |  | 453,428 |
INTEREST EXPENSE: |  |  |
Deposits | 156,931 |  |  | 187,542 |
Advances from the Federal Home Loan Bank | 310 |  |  | 1,293 |
Securities loaned | 477 |  |  | 379 |
Other borrowings | 4,534 |  |  | 4,152 |
Total interest expense | 162,252 |  |  | 193,366 |
Net interest income | 280,161 |  |  | 260,062 |
Provision for credit losses | 14,997 |  |  | 6,000 |
Net interest income, after provision for credit losses | 265,164 |  |  | 254,062 |
NON-INTEREST INCOME: |  |  |
Broker-dealer fee income | 11,013 |  |  | 11,053 |
Advisory fee income | 7,747 |  |  | 7,649 |
Banking and service fees | 9,515 |  |  | 8,436 |
Mortgage banking and servicing rights income | 12,855 |  |  | 3,189 |
Prepayment penalty fee income | 155 |  |  | 534 |
Total non-interest income | 41,285 |  |  | 30,861 |
NON-INTEREST EXPENSE: |  |  |
Salaries and related costs | 74,888 |  |  | 68,760 |
Data and operational processing | 20,358 |  |  | 16,717 |
Depreciation and amortization | 7,691 |  |  | 7,499 |
Advertising and promotional | 11,025 |  |  | 12,346 |
Professional services | 10,362 |  |  | 11,672 |
Occupancy and equipment | 4,536 |  |  | 4,603 |
FDIC and regulatory fees | 6,990 |  |  | 6,930 |
Broker-dealer clearing charges | 4,282 |  |  | 3,841 |
General and administrative expense | 10,520 |  |  | 8,167 |
Total non-interest expense | 150,652 |  |  | 140,535 |
INCOME BEFORE INCOME TAXES | 155,797 |  |  | 144,388 |
INCOME TAXES | 45,122 |  |  | 39,516 |
NET INCOME | $ | 110,675 |  |  | $ | 104,872 |
Basic earnings per common share | $ | 1.96 |  |  | $ | 1.84 |
Diluted earnings per common share | $ | 1.92 |  |  | $ | 1.80 |

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

| Year Ended June 30,
(Dollars in thousands, except earnings per common share) | 2025 |  | 2024 |  | 2023
INTEREST AND DIVIDEND INCOME: |  |  |  |  |
Loans, including fees | $ | 1,654,784 |  |  | $ | 1,499,572 |  |  | $ | 1,048,874 |
Securities borrowed and customer receivables | 25,492 |  |  | 22,407 |  |  | 18,657 |
Investments and other | 135,189 |  |  | 133,628 |  |  | 89,607 |
Total interest and dividend income | 1,815,465 |  |  | 1,655,607 |  |  | 1,157,138 |
INTEREST EXPENSE: |  |  |  |  |
Deposits | 667,753 |  |  | 670,570 |  |  | 339,481 |
Advances from the Federal Home Loan Bank | 1,652 |  |  | 3,087 |  |  | 12,644 |
Securities loaned | 1,830 |  |  | 2,214 |  |  | 3,673 |
Other borrowings | 16,458 |  |  | 18,307 |  |  | 18,219 |
Total interest expense | 687,693 |  |  | 694,178 |  |  | 374,017 |
Net interest income | 1,127,772 |  |  | 961,429 |  |  | 783,121 |
Provision for credit losses | 55,745 |  |  | 32,500 |  |  | 24,250 |
Net interest income, after provision for credit losses | 1,072,027 |  |  | 928,929 |  |  | 758,871 |
NON-INTEREST INCOME: |  |  |  |  |
Broker-dealer fee income | 45,233 |  |  | 48,136 |  |  | 46,503 |
Advisory fee income | 31,794 |  |  | 31,335 |  |  | 28,324 |
Banking and service fees | 38,195 |  |  | 35,723 |  |  | 32,938 |
Mortgage banking and servicing rights income | 13,007 |  |  | 10,000 |  |  | 7,101 |
Prepayment penalty fee income | 2,837 |  |  | 5,069 |  |  | 5,622 |
Gain on acquisition | — |  |  | 92,397 |  |  | — |
Total non-interest income | 131,066 |  |  | 222,660 |  |  | 120,488 |
NON-INTEREST EXPENSE: |  |  |  |  |
Salaries and related costs | 297,955 |  |  | 250,873 |  |  | 204,271 |
Data and operational processing | 80,433 |  |  | 69,370 |  |  | 60,557 |
Depreciation and amortization | 29,019 |  |  | 27,086 |  |  | 23,387 |
Advertising and promotional | 47,760 |  |  | 42,797 |  |  | 37,150 |
Professional services | 37,572 |  |  | 36,532 |  |  | 29,268 |
Occupancy and equipment | 17,705 |  |  | 16,704 |  |  | 15,647 |
FDIC and regulatory fees | 27,558 |  |  | 20,546 |  |  | 15,534 |
Broker-dealer clearing charges | 17,065 |  |  | 18,260 |  |  | 13,433 |
General and administrative expense | 34,631 |  |  | 33,940 |  |  | 48,368 |
Total non-interest expense | 589,698 |  |  | 516,108 |  |  | 447,615 |
INCOME BEFORE INCOME TAXES | 613,395 |  |  | 635,481 |  |  | 431,744 |
INCOME TAXES | 180,487 |  |  | 185,473 |  |  | 124,579 |
NET INCOME | $ | 432,908 |  |  | $ | 450,008 |  |  | $ | 307,165 |
Basic earnings per common share | $ | 7.61 |  |  | $ | 7.82 |  |  | $ | 5.15 |
Diluted earnings per common share | $ | 7.43 |  |  | $ | 7.66 |  |  | $ | 5.07 |

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

(Dollars in thousands) | June 30, 2025 |  | June 30, 2024
Single Family - Mortgage & Warehouse | $ | 4,395,278 |  |  | $ | 4,178,832 |
Multifamily and Commercial Mortgage | 2,940,739 |  |  | 3,861,931 |
Commercial Real Estate | 6,937,187 |  |  | 6,088,622 |
Commercial & Industrial - Non-RE | 6,795,497 |  |  | 5,241,766 |
Auto & Consumer | 482,996 |  |  | 431,660 |
Total gross loans | 21,551,697 |  |  | 19,802,811 |
Allowance for credit losses - loans | (290,049) |  |  | (260,542) |
Unaccreted premiums (discounts) and loan fees | (212,038) |  |  | (310,884) |
Total net loans | $ | 21,049,610 |  |  | $ | 19,231,385 |

AVAILABLE-FOR-SALE SECURITIES
The amortized cost and fair value of available-for-sale securities were:

| June 30, 2025
(Dollars in thousands) | Amortized Cost |  | Unrealized Gains |  | Unrealized Losses |  | Fair Value
Mortgage-backed securities (MBS): |  |  |  |  |  |  |
Agency 1 | $ | 48,229 |  |  | $ | 327 |  |  | $ | (1,799) |  |  | $ | 46,757 |
Non-agency 2 | 14,395 |  |  | 1,232 |  |  | (58) |  |  | 15,569 |
Total mortgage-backed securities | 62,624 |  |  | 1,559 |  |  | (1,857) |  |  | 62,326 |
Municipal | 3,682 |  |  | — |  |  | — |  |  | 3,682 |
Total available-for-sale securities | $ | 66,306 |  |  | $ | 1,559 |  |  | $ | (1,857) |  |  | $ | 66,008 |
| June 30, 2024
(Dollars in thousands) | Amortized Cost |  | Unrealized Gains |  | Unrealized Losses |  | Fair Value
Mortgage-backed securities (MBS): |  |  |  |  |  |  |
Agency 1 | $ | 29,835 |  |  | $ | 83 |  |  | $ | (2,659) |  |  | $ | 27,259 |
Non-agency 2 | 110,658 |  |  | 838 |  |  | (568) |  |  | 110,928 |
Total mortgage-backed securities | 140,493 |  |  | 921 |  |  | (3,227) |  |  | 138,187 |
Municipal | 3,788 |  |  | — |  |  | (364) |  |  | 3,424 |
Total available-for-sale securities | $ | 144,281 |  |  | $ | 921 |  |  | $ | (3,591) |  |  | $ | 141,611 |

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 prime, Alt-A or pay-option ARM mortgages.

DEPOSITS
The following table sets forth the composition of the deposit portfolio:

(Dollars in thousands) | June 30, 2025 |  | June 30, 2024
Non-interest bearing | $ | 3,040,696 |  |  |  |  | $ | 2,975,631 |  |  |
Interest-bearing demand and savings | 16,660,290 |  |  |  |  | 15,445,490 |  |  |
Time deposits | 1,128,557 |  |  |  |  | 938,096 |  |  |
Total interest bearing | 17,788,847 |  |  |  |  | 16,383,586 |  |  |
Total deposits 1 | $ | 20,829,543 |  |  |  |  | $ | 19,359,217 |  |  |

1 The total interest-bearing includes brokered deposits of $1,801.1 million and $1,611.6 million as of June 30, 2025 and June 30, 2024, respectively, which include brokered time deposits of $700.0 million and $400.0 million as of June 30, 2025 and June 30, 2024, respectively.
The number of deposit accounts at the end of each of the last three fiscal years is set forth below:

| At June 30,
| 2025 |  | 2024 |  |  |  |  |  |
Non-interest bearing | 50,967 |  |  | 55,772 |  |  |  |  |  |  |
Interest-bearing checking and savings accounts | 546,678 |  |  | 495,070 |  |  |  |  |  |  |
Time deposits | 2,956 |  |  | 4,696 |  |  |  |  |  |  |
Total number of deposit accounts | 600,601 |  |  | 555,538 |  |  |  |  |  |  |

AVERAGE BALANCES, NET INTEREST INCOME, YIELDS EARNED AND RATES PAID
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, 2025 |  | June 30, 2024 |  |
(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 | $ | 20,539,298 |  |  | $ | 410,910 |  |  | 8.00 | % |  | $ | 19,177,807 |  |  | $ | 409,466 |  |  | 8.54 | % |  |
Non-purchased loans | 19,560,321 |  |  | 374,450 |  |  | 7.66 | % |  | 18,196,696 |  |  | 368,766 |  |  | 8.11 | % |  |
Purchased loans 5 | 978,977 |  |  | 36,460 |  |  | 14.90 | % |  | 981,111 |  |  | 40,700 |  |  | 16.59 | % |  |
Interest-earning deposits in other financial institutions | 2,149,658 |  |  | 23,652 |  |  | 4.40 | % |  | 2,656,167 |  |  | 35,122 |  |  | 5.29 | % |  |
Mortgage-backed and other securities 4 | 76,214 |  |  | 642 |  |  | 3.37 | % |  | 183,297 |  |  | 2,202 |  |  | 4.81 | % |  |
Securities borrowed and margin lending 6 | 344,061 |  |  | 6,699 |  |  | 7.79 | % |  | 329,573 |  |  | 6,244 |  |  | 7.58 | % |  |
Stock of the regulatory agencies | 29,599 |  |  | 510 |  |  | 6.89 | % |  | 17,250 |  |  | 394 |  |  | 9.14 | % |  |
Total interest-earning assets | 23,138,830 |  |  | 442,413 |  |  | 7.65 | % |  | 22,364,094 |  |  | 453,428 |  |  | 8.11 | % |  |
Non-interest-earning assets | 813,673 |  |  |  |  |  |  | 758,002 |  |  |  |  |  |  |
Total assets | $ | 23,952,503 |  |  |  |  |  |  | $ | 23,122,096 |  |  |  |  |  |  |
Liabilities and Stockholders’ Equity: |  |  |  |  |  |  |  |  |  |  |  |  |
Interest-bearing demand and savings | $ | 16,284,806 |  |  | $ | 148,589 |  |  | 3.65 | % |  | $ | 15,697,646 |  |  | $ | 176,930 |  |  | 4.51 | % |  |
Time deposits | 845,052 |  |  | 8,342 |  |  | 3.95 | % |  | 971,756 |  |  | 10,612 |  |  | 4.37 | % |  |
Securities loaned | 108,963 |  |  | 477 |  |  | 1.75 | % |  | 121,197 |  |  | 379 |  |  | 1.25 | % |  |
Advances from the FHLB | 60,001 |  |  | 310 |  |  | 2.07 | % |  | 144,947 |  |  | 1,293 |  |  | 3.57 | % |  |
Borrowings, subordinated notes and debentures | 355,690 |  |  | 4,534 |  |  | 5.10 | % |  | 327,602 |  |  | 4,152 |  |  | 5.07 | % |  |
Total interest-bearing liabilities | 17,654,512 |  |  | 162,252 |  |  | 3.68 | % |  | 17,263,148 |  |  | 193,366 |  |  | 4.48 | % |  |
Non-interest-bearing demand deposits | 2,960,476 |  |  |  |  |  |  | 2,870,716 |  |  |  |  |  |  |
Other non-interest-bearing liabilities | 710,207 |  |  |  |  |  |  | 757,946 |  |  |  |  |  |  |
Stockholders’ equity | 2,627,308 |  |  |  |  |  |  | 2,230,286 |  |  |  |  |  |  |
Total liabilities and stockholders’ equity | $ | 23,952,503 |  |  |  |  |  |  | $ | 23,122,096 |  |  |  |  |  |  |
Net interest income |  |  | $ | 280,161 |  |  |  |  |  |  | $ | 260,062 |  |  |  |  |
Interest rate spread 7 |  |  |  |  | 3.97 | % |  |  |  |  |  | 3.63 | % |  |
Net interest margin 8 |  |  |  |  | 4.84 | % |  |  |  |  |  | 4.65 | % |  |

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 available-for-sale securities premiums and earnings from accretion of discounts and loan fees.
5 Purchased loans include loans, loan discounts and unearned fees related to the FDIC Loan Purchase.
6 Margin lending is the significant component of the asset titled customer, broker-dealer and clearing receivables on the unaudited Condensed Consolidated Balance Sheets.
7 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.
8 Net interest margin represents annualized net interest income as a percentage of average interest-earning assets.

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 Fiscal Years Ended June 30,
| 2025 |  | 2024 |  | 2023
(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 Balance1 |  | Interest Income / Expense |  | Average Yields Earned / Rates Paid
Assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Loans 2,3 | $ | 19,853,221 |  |  | $ | 1,654,784 |  |  | 8.34 | % |  | $ | 18,010,709 |  |  | $ | 1,499,572 |  |  | 8.33 | % |  | $ | 15,571,290 |  |  | $ | 1,048,874 |  |  | 6.74 | %
Non-purchased loans | 18,880,093 |  |  | 1,494,140 |  |  | 7.91 | % |  | 17,458,451 |  |  | 1,405,202 |  |  | 8.05 | % |  | 15,571,290 |  |  | 1,048,874 |  |  | 6.74 | %
Purchased loans 4 | 973,128 |  |  | 160,644 |  |  | 16.51 | % |  | 552,258 |  |  | 94,370 |  |  | 17.09 | % |  | — |  |  | — |  |  | — | %
Interest-earning deposits in other financial institutions | 2,665,865 |  |  | 128,073 |  |  | 4.80 | % |  | 2,242,226 |  |  | 120,861 |  |  | 5.39 | % |  | 1,761,902 |  |  | 73,467 |  |  | 4.17 | %
Mortgage-backed and other securities | 109,405 |  |  | 5,181 |  |  | 4.74 | % |  | 218,565 |  |  | 11,234 |  |  | 5.14 | % |  | 259,473 |  |  | 14,669 |  |  | 5.65 | %
Securities borrowed and margin lending 4 | 344,055 |  |  | 25,492 |  |  | 7.41 | % |  | 329,154 |  |  | 22,407 |  |  | 6.81 | % |  | 388,386 |  |  | 18,657 |  |  | 4.80 | %
Stock of the regulatory agencies | 26,930 |  |  | 1,935 |  |  | 7.19 | % |  | 17,250 |  |  | 1,533 |  |  | 8.89 | % |  | 20,936 |  |  | 1,471 |  |  | 7.03 | %
Total interest-earning assets | 22,999,476 |  |  | $ | 1,815,465 |  |  | 7.89 | % |  | 20,817,904 |  |  | $ | 1,655,607 |  |  | 7.95 | % |  | 18,001,987 |  |  | $ | 1,157,138 |  |  | 6.43 | %
Non-interest-earning assets | 775,958 |  |  |  |  |  |  | 811,032 |  |  |  |  |  |  | 735,783 |  |  |  |  |
Total assets | $ | 23,775,434 |  |  |  |  |  |  | $ | 21,628,936 |  |  |  |  |  |  | $ | 18,737,770 |  |  |  |  |
Liabilities and Stockholders’ Equity: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest-bearing demand and savings | $ | 16,181,014 |  |  | $ | 632,919 |  |  | 3.91 | % |  | $ | 14,352,569 |  |  | $ | 626,678 |  |  | 4.37 | % |  | $ | 10,211,737 |  |  | $ | 305,655 |  |  | 2.99 | %
Time deposits | 859,400 |  |  | 34,834 |  |  | 4.05 | % |  | 1,062,644 |  |  | 43,892 |  |  | 4.13 | % |  | 1,225,537 |  |  | 33,826 |  |  | 2.76 | %
Securities loaned | 113,330 |  |  | 1,830 |  |  | 1.61 | % |  | 153,552 |  |  | 2,214 |  |  | 1.44 | % |  | 303,932 |  |  | 3,673 |  |  | 1.21 | %
Advances from the FHLB | 74,385 |  |  | 1,652 |  |  | 2.22 | % |  | 107,454 |  |  | 3,087 |  |  | 2.87 | % |  | 423,612 |  |  | 12,644 |  |  | 2.98 | %
Borrowings, subordinated notes and debentures | 332,665 |  |  | 16,458 |  |  | 4.95 | % |  | 358,452 |  |  | 18,307 |  |  | 5.11 | % |  | 362,733 |  |  | 18,219 |  |  | 5.02 | %
Total interest-bearing liabilities | 17,560,794 |  |  | $ | 687,693 |  |  | 3.92 | % |  | 16,034,671 |  |  | $ | 694,178 |  |  | 4.33 | % |  | 12,527,551 |  |  | $ | 374,017 |  |  | 2.99 | %
Non-interest-bearing demand deposits | 2,968,839 |  |  |  |  |  |  | 2,769,272 |  |  |  |  |  |  | 3,730,524 |  |  |  |  |
Other non-interest-bearing liabilities | 743,920 |  |  |  |  |  |  | 745,472 |  |  |  |  |  |  | 695,617 |  |  |  |  |
Stockholders’ equity | 2,501,881 |  |  |  |  |  |  | 2,079,521 |  |  |  |  |  |  | 1,784,078 |  |  |  |  |
Total liabilities and stockholders’ equity | $ | 23,775,434 |  |  |  |  |  |  | $ | 21,628,936 |  |  |  |  |  |  | $ | 18,737,770 |  |  |  |  |
Net interest income |  |  | $ | 1,127,772 |  |  |  |  |  |  | $ | 961,429 |  |  |  |  |  |  | $ | 783,121 |  |  |
Interest rate spread 6 |  |  |  |  | 3.97 | % |  |  |  |  |  | 3.62 | % |  |  |  |  |  | 3.44 | %
Net interest margin 7 |  |  |  |  | 4.90 | % |  |  |  |  |  | 4.62 | % |  |  |  |  |  | 4.35 | %

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 available-for-sale securities premiums and earnings from accretion of discounts and loan fees.
4.Purchased loans include loans, loan discounts and unearned fees related to the FDIC Loan Purchase.
5.Margin lending is the significant component of the asset titled customer, broker-dealer and clearing receivables on the audited 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 annualized net interest income as a percentage of average interest-earning assets.1 Average balances are obtained from daily data.

SEGMENT SELECTED FINANCIAL INFORMATION
Banking Business Segment

|  |  | Fiscal Year Ended
|  |  |  |  | June 30, 2025 |  | June 30, 2024
Efficiency ratio |  |  |  |  | 40.80 | % |  | 38.42 | %
Return on average assets |  |  |  |  | 2.02 | % |  | 2.20 | %
Interest rate spread |  |  |  |  | 4.03 | % |  | 3.66 | %
Net interest margin |  |  |  |  | 4.95 | % |  | 4.68 | %

Securities Business Segment

| June 30,
(Dollars in thousands) | 2025 |  | 2024
FDIC insured program balances at banks | $ | 1,444,830 |  |  | $ | 1,289,105 |
Margin balances | $ | 229,387 |  |  | $ | 219,848 |
Cash reserves for the benefit of customers | $ | 146,835 |  |  | $ | 113,676 |
Securities lending: |  |  |
Interest-earning assets – stock borrowed | $ | 139,396 |  |  | $ | 67,212 |
Interest-bearing liabilities – stock loaned | $ | 139,426 |  |  | $ | 74,177 |