10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended December 31, 2023

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission file number: 001-37709

AXOS FINANCIAL, INC.

(Exact name of registrant as specified in its charter)

Delaware	33-0867444
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

9205 West Russell Road, Suite 400, Las Vegas, NV 89148

(Address of principal executive offices) (zip code)

Registrant’s telephone number, including area code: (858) 649-2218

Securities registered pursuant to Section 12(b) of the Act:
Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common stock, $0.01 par value	AX	New York Stock Exchange

__________________________________________________________________________________________

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.   ☒  Yes    ☐  No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).   ☒  Yes    ☐  No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☒	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    ☐  Yes    ☒  No

The number of shares outstanding of the registrant’s common stock on the last practicable date: 56,898,609 shares of common stock, $0.01 par value per share, as of January 23, 2024.

AXOS FINANCIAL, INC.

INDEX

	Page
PART I – FINANCIAL INFORMATION	1
ITEM 1.       FINANCIAL STATEMENTS	1
Condensed Consolidated Balance Sheets (unaudited)	1
Condensed Consolidated Statements of Income (unaudited)	2
Condensed Consolidated Statements of Comprehensive Income (unaudited)	3
Condensed Consolidated Statements of Stockholders’ Equity (unaudited)	4
Condensed Consolidated Statements of Cash Flows (unaudited)	6
Notes to Condensed Consolidated Financial Statements	7
1. Summary of Significant Accounting Policies	7
2. Acquisitions	9
3. Fair Value	10
4. Available-for-Sale Securities	16
5. Loans & Allowance for Credit Losses	18
6. Derivatives	23
7. Stockholders' Equity and Stock-Based Compensation	25
8. Earnings per Common Share	26
9. Commitments and Contingencies	26
10. Segment Reporting and Revenue Information	28
ITEM 2.        MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS	30
SELECTED FINANCIAL INFORMATION	33
RESULTS OF OPERATIONS	35
FINANCIAL CONDITION	45
LIQUIDITY	48
OFF-BALANCE SHEET COMMITMENTS	49
CAPITAL RESOURCES AND REQUIREMENTS	49
ITEM 3.       QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK	51
ITEM 4.       CONTROLS AND PROCEDURES	53
PART II – OTHER INFORMATION	54
ITEM 1.       LEGAL PROCEEDINGS	54
ITEM 1A.    RISK FACTORS	54
ITEM 2.       UNREGISTERED SALES OF EQUITY SECURITIES, USE OF PROCEEDS, AND ISSUER PURCHASES OF EQUITY SECURITIES	54
ITEM 3.       DEFAULTS UPON SENIOR SECURITIES	54
ITEM 4.       MINE SAFETY DISCLOSURES	54
ITEM 5.       OTHER INFORMATION	54
ITEM 6.       EXHIBITS	55
SIGNATURES	56

PART I – FINANCIAL INFORMATION

ITEM 1.FINANCIAL STATEMENTS

AXOS FINANCIAL, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

(Dollars in thousands, except par and stated value)	December 31, 2023		June 30, 2023
ASSETS
Cash and cash equivalents	$	1,568,768	$	2,233,027
Cash segregated for regulatory purposes	194,955		149,059
Total cash, cash equivalents and cash segregated	1,763,723		2,382,086
Trading securities	329		758
Available-for-sale securities	239,812		232,350
Stock of regulatory agencies	21,534		21,510
Loans held for sale, carried at fair value	13,468		23,203
Loans held for sale, lower of cost or fair value	—		776
Loans—net of allowance for credit losses of $251,749 as of December 31, 2023 and $166,680 as of June 30, 2023	18,264,354		16,456,728
Servicing rights, carried at fair value	28,043		25,443
Securities borrowed	145,176		134,339
Customer, broker-dealer and clearing receivables	265,857		374,074
Goodwill and other intangible assets—net	146,793		152,149
Other assets	734,675		545,053
TOTAL ASSETS	$	21,623,764	$	20,348,469
LIABILITIES AND STOCKHOLDERS’ EQUITY
Deposits:
Non-interest bearing	2,833,657		2,898,150
Interest bearing	15,370,255		14,224,958
Total deposits	18,203,912		17,123,108
Advances from the Federal Home Loan Bank	90,000		90,000
Borrowings, subordinated notes and debentures	341,086		361,779
Securities loaned	155,492		159,832
Customer, broker-dealer and clearing payables	368,885		445,477
Accounts payable and other liabilities	386,165		251,114
Total liabilities	19,545,540		18,431,310
COMMITMENTS AND CONTINGENCIES (Note 9)
STOCKHOLDERS’ EQUITY:
Common stock—$0.01 par value; 150,000,000 shares authorized; 69,828,709 shares issued and 56,898,377 shares outstanding as of December 31, 2023; 69,465,446 shares issued and 58,943,035 shares outstanding as of June 30, 2023	698		695
Additional paid-in capital	493,268		479,878
Accumulated other comprehensive income (loss)—net of income tax	(3,919)		(6,610)
Retained earnings	1,970,025		1,735,609
Treasury stock, at cost; 12,930,332 shares as of December 31, 2023 and 10,522,411 shares as of June 30, 2023	(381,848)		(292,413)
Total stockholders’ equity	2,078,224		1,917,159
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	21,623,764	$	20,348,469

See accompanying notes to the condensed consolidated financial statements.

1

AXOS FINANCIAL, INC.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(Unaudited) 

	Three Months Ended				Six Months Ended
	December 31,				December 31,
(Dollars in thousands, except earnings per common share)	2023		2022		2023		2022
INTEREST AND DIVIDEND INCOME:
Loans, including fees	$	357,852	$	255,661	$	684,826	$	463,999
Securities borrowed and customer receivables	5,467		4,321		10,462		8,705
Investments and other	31,344		19,606		63,327		30,670
Total interest and dividend income	394,663		279,588		758,615		503,374
INTEREST EXPENSE:
Deposits	160,181		71,348		306,291		103,853
Advances from the Federal Home Loan Bank	530		2,504		1,059		7,667
Securities loaned	1,010		1,067		1,459		2,010
Other borrowings	4,336		4,759		10,045		9,459
Total interest expense	166,057		79,678		318,854		122,989
Net interest income	228,606		199,910		439,761		380,385
Provision for credit losses	13,500		3,001		20,500		11,751
Net interest income, after provision for credit losses	215,106		196,909		419,261		368,634
NON-INTEREST INCOME:
Broker-dealer fee income	12,519		9,812		24,996		18,990
Advisory fee income	7,362		6,983		15,581		13,942
Banking and service fees	10,061		10,143		18,411		16,657
Mortgage banking and servicing rights income	753		641		4,631		4,006
Prepayment penalty fee income	1,037		750		2,620		1,942
Gain on acquisition	92,397		—		92,397		—
Total non-interest income	124,129		28,329		158,636		55,537
NON-INTEREST EXPENSE:
Salaries and related costs	58,883		49,720		114,694		96,716
Data and operational processing	18,326		14,632		34,410		28,654
Depreciation and amortization	6,488		5,957		12,366		12,051
Advertising and promotional	9,794		10,899		20,169		17,269
Professional services	5,976		8,455		15,787		16,542
Occupancy and equipment	4,001		3,683		7,847		7,737
FDIC and regulatory fees	3,935		3,569		8,384		7,304
Broker-dealer clearing charges	5,948		3,739		9,960		6,568
General and administrative expense	8,488		7,373		18,728		31,273
Total non-interest expense	121,839		108,027		242,345		224,114
INCOME BEFORE INCOME TAXES	217,396		117,211		335,552		200,057
INCOME TAXES	65,625		35,659		101,136		60,098
NET INCOME	$	151,771	$	81,552	$	234,416	$	139,959
COMPREHENSIVE INCOME	$	154,240	$	80,377	$	237,107	$	135,947
Basic earnings per common share	$	2.65	$	1.36	$	4.04	$	2.34
Diluted earnings per common share	$	2.62	$	1.35	$	3.98	$	2.31

See accompanying notes to the condensed consolidated financial statements.

2

AXOS FINANCIAL, INC.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited)

	Three Months Ended				Six Months Ended
	December 31,				December 31,
(Dollars in thousands)	2023		2022		2023		2022
NET INCOME	$	151,771	$	81,552	$	234,416	$	139,959
Net unrealized gain (loss) from available-for-sale securities, net of income tax expense (benefit) of $1,058 and $(503) for the three months ended and $1,170 and $(1,718) for the six months ended December 31, 2023 and 2022, respectively.	2,469		(1,175)		2,691		(4,012)
Other comprehensive income (loss)	2,469		(1,175)		2,691		(4,012)
COMPREHENSIVE INCOME	$	154,240	$	80,377	$	237,107	$	135,947

See accompanying notes to the condensed consolidated financial statements.

3

AXOS FINANCIAL, INC.

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

(Unaudited)

	For the Three Months Ended December 31, 2023
	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)	Issued	Treasury	Outstanding	Amount
BALANCE—September 30, 2023	69,826,263	(11,322,287)	58,503,976	$	698	$	486,676	$	(6,388)	$	1,818,254	$	(323,032)	$	1,976,208
Net income	—	—	—	—		—		—		151,771		—		151,771
Other comprehensive income (loss)	—	—	—	—		—		2,469		—		—		2,469
Purchase of treasury stock	—	(1,607,301)	(1,607,301)	—		—		—		—		(58,650)		(58,650)
Stock-based compensation activity	2,446	(744)	1,702	—		6,592		—		—		(166)		6,426
BALANCE—December 31, 2023	69,828,709	(12,930,332)	56,898,377	$	698	$	493,268	$	(3,919)	$	1,970,025	$	(381,848)	$	2,078,224

	For the Six Months Ended December 31, 2023
	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)	Issued	Treasury	Outstanding	Amount
BALANCE—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
Net income	—	—	—	—		—		—		234,416		—		234,416
Other comprehensive income (loss)	—	—	—	—		—		2,691		—		—		2,691
Purchase of treasury stock	—	(2,255,509)	(2,255,509)	—		—		—		—		(83,186)		(83,186)
Stock-based compensation activity	363,263	(152,412)	210,851	3		13,390		—		—		(6,249)		7,144
BALANCE—December 31, 2023	69,828,709	(12,930,332)	56,898,377	$	698	$	493,268	$	(3,919)	$	1,970,025	$	(381,848)	$	2,078,224

See accompanying notes to the condensed consolidated financial statements.

4

AXOS FINANCIAL, INC.

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (continued)

(Unaudited)

	For the Three Months Ended December 31, 2022
	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)	Issued	Treasury	Outstanding	Amount
BALANCE—September 30, 2022	69,151,152	(9,152,479)	59,998,673	$	692	$	459,101	$	(5,770)	$	1,486,851	$	(239,902)	$	1,700,972
Net income	—	—	—	—		—		—		81,552		—		81,552
Other comprehensive income (loss)	—	—	—	—		—		(1,175)		—		—		(1,175)
Stock-based compensation activity	2,439	(1,033)	1,406	—		6,249		—		—		(39)		6,210
BALANCE—December 31, 2022	69,153,591	(9,153,512)	60,000,079	$	692	$	465,350	$	(6,945)	$	1,568,403	$	(239,941)	$	1,787,559

	For the Six Months Ended December 31, 2022
	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)	Issued	Treasury	Outstanding	Amount
BALANCE—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	—	—	—	—		—		—		139,959		—		139,959
Other comprehensive income (loss)	—	—	—	—		—		(4,012)		—		—		(4,012)
Stock-based compensation activity	293,869	(71,739)	222,130	3		11,566		—		—		(2,930)		8,639
BALANCE—December 31, 2022	69,153,591	(9,153,512)	60,000,079	$	692	$	465,350	$	(6,945)	$	1,568,403	$	(239,941)	$	1,787,559

See accompanying notes to the condensed consolidated financial statements.

5

AXOS FINANCIAL, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
	Six Months Ended
	December 31,
(Dollars in thousands)	2023		2022
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$	234,416	$	139,959
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization	12,365		12,051
Other accretion and amortization	(12,006)		529
Stock-based compensation expense	13,393		11,569
Trading activity	429		1,386
Provision for credit losses	20,500		11,751
Deferred income taxes	21,032		7,592
Origination of loans held for sale	(96,910)		(113,300)
Unrealized and realized gains on loans held for sale	(3,854)		(4,115)
Proceeds from sale of loans held for sale	107,846		117,252
Changes in servicing rights	(1,955)		93
Gain on FDIC Loan Purchase	(92,397)		—
Net change in assets and liabilities which provide (use) cash:
Securities borrowed	(10,837)		280,134
Customer, broker-dealer and clearing receivables	108,217		144,838
Other Assets	(72,132)		(19,062)
Securities loaned	(4,340)		(318,392)
Customer, broker-dealer and clearing payables	(76,592)		(90,707)
Accounts payable and other liabilities	(81)		(4,502)
Net cash provided by operating activities	147,094		177,076
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of available-for-sale securities	(9,612)		—
Proceeds from sale and repayment of available-for-sale securities	5,952		9,111
Purchase of stock of regulatory agencies	—		(74,972)
Proceeds from redemption of stock of regulatory agencies	—		74,972
Origination of loans held for investment	(5,299,304)		(4,499,800)
Proceeds from sale of loans originally classified as held for investment	—		13,965
Mortgage warehouse loan activity, net	150,941		136,545
Proceeds from sale of other real estate owned and repossessed assets	3,420		1,229
Acquisition of business activity, net of cash acquired	—		(5,531)
Purchase of loans and leases, net of discounts and premiums	(841,408)		(127)
Principal repayments on loans	4,270,813		2,947,186
Purchases of furniture, equipment, software and intangibles	(17,031)		(13,982)
Net cash used in investing activities	(1,736,229)		(1,411,404)
CASH FLOWS FROM FINANCING ACTIVITIES:
Net increase in deposits	1,080,804		1,744,072
Repayments of the Federal Home Loan Bank term advances	—		(17,500)
Net (repayment) proceeds of other borrowings	(21,200)		(111,500)
Tax payments related to settlement of restricted stock units	(6,249)		(2,930)
Purchase of treasury stock	(82,583)		—
Net cash provided by financing activities	970,772		1,612,142
NET CHANGE IN CASH AND CASH EQUIVALENTS	(618,363)		377,814
CASH AND CASH EQUIVALENTS—Beginning of year	$	2,382,086	$	1,574,699
CASH AND CASH EQUIVALENTS—End of period	$	1,763,723	$	1,952,513
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Interest paid on interest-bearing liabilities	323,042		121,878
Income taxes paid	84,436		73,129
Transfers to other real estate and repossessed vehicles from loans held for investment	3,301		7,228
Transfers from loans held for sale to loans and leases held for investment	2,783		690
Operating lease liabilities from obtaining right of use assets	5,767		—

See accompanying notes to the condensed consolidated financial statements.

6

AXOS FINANCIAL, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE MONTH AND SIX MONTH PERIODS ENDED DECEMBER 31, 2023 AND 2022

(Dollars in thousands, except per share and stated value amounts)

(Unaudited)

1.    SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation

The condensed consolidated financial statements include the accounts of Axos Financial, Inc. (“Axos”) and its wholly owned subsidiaries, Axos Bank (the “Bank”) and Axos Nevada Holding, LLC (“Axos Nevada Holding” and collectively, the “Company”). Axos, the Bank and Axos Nevada Holding comprise substantially all of the Company’s assets and liabilities and revenues and expenses. The Bank, its wholly owned subsidiaries, and the activities of two lending-related trust entities, constitute the Banking Business segment and Axos Nevada Holding and its wholly owned subsidiaries constitute the Securities Business segment. All significant intercompany balances and transactions have been eliminated in consolidation. The Notes to the Consolidated Financial Statements are an integral part of the Company’s financial statements.

The accompanying interim condensed consolidated financial statements, presented in accordance with accounting principles generally accepted in the United States of America (“GAAP”), are unaudited and reflect all adjustments which, in the opinion of management, are necessary for a fair statement of financial condition and results of operations for the interim periods. All adjustments are of a normal and recurring nature. Certain amounts reported in prior periods have been reclassified to conform with the current presentation. Results for the three and six months ended December 31, 2023 are not necessarily indicative of results that may be expected for any other interim period or for the year as a whole. Certain information and note disclosures normally included in the audited annual financial statements prepared in accordance with GAAP have been condensed or not repeated herein pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) with respect to interim financial reporting. The accompanying unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and accompanying notes for the year ended June 30, 2023 included in our Annual Report on Form 10-K for the fiscal year ended June 30, 2023 (“2023 Form 10-K”) filed with the SEC.

Significant Accounting Policies

For further information regarding the Company’s significant accounting policies see Note 1—“Organizations and Summary of Significant Accounting Policies” in the 2023 Form 10-K. During the three and six months ended December 31, 2023 there were no significant updates to the Company’s significant accounting policies, other than as noted below and the adoption of the accounting standards noted herein.

Purchased Credit Deteriorated (“PCD”) Loans. Purchased loans that reflect a more-than-insignificant deterioration of credit since their origination are considered PCD. For PCD loans, the initial estimate of expected credit losses is recognized in the allowance for credit losses on the date of acquisition. The initial amortized cost of PCD loans is determined by reducing the loans’ par value by the acquisition date estimate of expected credit losses with any difference between the resulting amount and the loans’ purchase price recorded as a non-credit-related discount. Subsequent changes in the initial estimate of expected credit losses are recognized in the provision for credit losses in the Company's Consolidated Statements of Income.

7

New Accounting Standards

Recently Adopted Accounting Standards

The Financial Accounting Standards Board (“FASB”) issued three Accounting Standards Updates (“ASUs”) (2020-04, 2021-04 and 2022-06) all of which provide guidance to alleviate the burden in accounting for reference rate reform by allowing certain expedients and exceptions in applying generally accepted accounting principles to contracts, hedging relationships, and other transactions impacted by reference rate reform. The provisions apply only to those transactions that reference London Interbank Offered Rate (“LIBOR”) or another reference rate expected to be discontinued due to reference rate reform. Adoption of the provisions are optional and are effective from March 12, 2020 through December 31, 2024. The Company adopted these ASUs on July 1, 2023, and there was no impact on its financial condition or results of operations upon adoption.

In March 2022, the FASB issued ASU 2022-02 which eliminates the accounting guidance for troubled debt restructurings by creditors that have adopted the current expected credit losses (“CECL”) model and enhance the disclosure requirements for loan refinancings and restructurings made with borrowers experiencing financial difficulty. In addition, the amendments require a public business entity to disclose current-period gross write-offs for financing receivables and net investment in leases by year of origination in the vintage disclosures. The Company adopted this ASU on a prospective basis on July 1, 2023, and there was no impact on its financial condition or results of operations upon adoption. See Note 5—“Loans & Allowance for Credit Losses” for the new disclosures as a result of the adoption of this accounting guidance.

Accounting Standards Issued But Not Yet Adopted

In November 2023, the FASB issued ASU 2023-07 which requires disclosure of significant business segment expenses and a description of the composition of other segment expenses by business segment. The ASU also requires disclosure of the title and position of the chief operating decision maker and an explanation of how the chief operating decision maker uses the reported measures of segment profit or loss in assessing segment performance and deciding how to allocate resources. This standard is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. The Company does not expect any impact on its financial condition or results of operations upon adoption.

In December 2023, the FASB issued ASU 2023-09 which requires further granularity on the disclosure of income taxes, including:

•Certain prescribed line items in the income tax rate reconciliation presented both in dollar and percentage terms;

•Income taxes paid, income before income taxes and income taxes disaggregated by federal, state and foreign taxes; and

•Further disaggregation of income taxes paid by any individual jurisdiction equal to or exceeding five percent of total income taxes paid.

This standard is effective for fiscal years beginning after December 15, 2024. The Company does not expect any impact on its financial condition or results of operations upon adoption.

8

2.     ACQUISITIONS

On August 23, 2023, the Company acquired approximately $52 million of marine floor financing loans at par value along with other assets for an additional $2 million, primarily consisting of servicing rights as well as certain employees. The transaction was accounted for as an asset acquisition and such assets are included in the Company’s unaudited Condensed Consolidated Balance Sheets as of December 31, 2023.

On December 7, 2023, the Company acquired from the Federal Deposit Insurance Corporation (“FDIC”) two loan portfolios, comprising both PCD and non-PCD loans, with an aggregate unpaid principal balance of $1.3 billion at a fair value of $901.5 million, reflecting a non-credit-related discount of $306.8 million and an allowance for credit losses on PCD loans of $70.1 million, (the “FDIC Loan Purchase”). Also included in the acquisition were certain related interest rate derivative assets and liabilities with a fair value of $109.0 million and $104.4 million, respectively, as of the date of the acquisition and whose maturities generally align with those of the loans acquired. The acquisition of the non-PCD loans and interest rate derivatives was accounted for as a purchase of financial assets and liabilities, and the Company recognized a $92.4 million gain on the transaction included in “Gain on acquisition” in the Unaudited Condensed Consolidated Statement of Income.

For additional information on PCD loans, see Note 1—“Summary of Significant Accounting Policies,” and for additional information on the Company’s loans and derivative instruments, see Note 5—“Loans & Allowance Credit Losses” and Note 6—“Derivatives,” respectively.

The following table summarizes the PCD loans acquired in the FDIC Loan Purchase:

(Dollars in thousands)	Total
Unpaid principal balance	$	341,301
Non-credit discount	(100,686)
Allowance for credit losses at acquisition	(70,097)
Purchase price	$	170,518

9

3.     FAIR VALUE

The following tables sets forth the Company’s financial assets and liabilities measured at fair value on a recurring basis at December 31, 2023 and June 30, 2023. Assets and liabilities are classified in their entirety based on the lowest level of input significant to the fair value measurement:

	December 31, 2023
(Dollars in thousands)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
ASSETS:
Trading securities		$	329	$	—	$	329
Available-for-sale securities:
Agency MBS1		28,664		—		28,664
Non-Agency MBS2		—		207,708		207,708
Municipal		3,440		—		3,440
Total—Available-for-sale securities:		$	32,104	$	207,708	$	239,812
Loans held for sale		$	13,468			$	13,468
Servicing rights		$	—	$	28,043	$	28,043
Other assets—Derivative instruments		$	96,084	$	—	$	96,084
LIABILITIES:
Accounts payable and other liabilities—Derivative instruments		$	92,144	$	—	$	92,144
	June 30, 2023
(Dollars in thousands)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
ASSETS:
Trading securities		$	758	$	—	$	758
Available-for-sale securities:
Agency MBS1		23,947		—		23,947
Non-Agency MBS2		—		205,005		205,005
Municipal		3,398		—		3,398
Total—Available-for-sale securities:		$	27,345	$	205,005	$	232,350
Loans held for sale		$	23,203	$	—	$	23,203
Servicing rights		$	—	$	25,443	$	25,443
Other assets—Derivative instruments		$	919	$	—	$	919
LIABILITIES:
Accounts payable and other liabilities—Derivative instruments		$	691	$	—	$	691

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 adjustable rate mortgages (“ARMs”).

10

The following tables present additional information about assets measured at fair value on a recurring basis and for which the Company has utilized Level 3 inputs to determine fair value:

	For the Three Months Ended
	December 31, 2023
(Dollars in thousands)	Available-for-Sale Securities: Non-Agency MBS		Servicing Rights1		Total
Opening balance	$	206,076	$	29,338	$	235,414
Total gains or losses for the period:
Included in earnings—Mortgage banking and servicing rights income	—		(1,494)		(1,494)
Included in other comprehensive income	1,876		—		1,876
Purchases, retentions, issues, sales and settlements:
Purchases/Retentions	—		199		199
Settlements	(244)		—		(244)
Closing balance	$	207,708	$	28,043	$	235,751
Change in unrealized gains or losses for the period included in earnings for assets held at the end of the reporting period	$	—	$	(1,494)	$	(1,494)
	For the Six Months Ended
	December 31, 2023
(Dollars in thousands)	Available-for-Sale Securities: Non-Agency MBS		Servicing Rights1		Total
Opening Balance	$	205,005	$	25,443	$	230,448
Total gains or losses for the period:
Included in earnings—Mortgage banking and servicing rights income	—		365		365
Included in other comprehensive income	3,191		—		3,191
Purchases, retentions, issues, sales and settlements:
Purchases/Retentions	—		2,235		2,235
Settlements	(488)		—		(488)
Closing balance	$	207,708	$	28,043	$	235,751
Change in unrealized gains or losses for the period included in earnings for assets held at the end of the reporting period	$	—	$	365	$	365

1 Earnings from servicing rights were attributable to: time and payoffs, representing a decrease in servicing rights value due to passage of time, including the impact from both regularly scheduled loan principal payments and loans that were paid down or paid off during the period of $0.3 million and $0.5 million for the three and six months ended December 31, 2023 and a decrease in servicing rights value resulting from market-driven changes in interest rates of $1.2 million three months ended December 31, 2023 and an increase of $0.9 million for the six months ended December 31, 2023. Additions to servicing rights were related to purchases and servicing rights retained upon sale of loans held for sale.

11

	For the Three Months Ended
	December 31, 2022
(Dollars in thousands)	Available-for-Sale Securities: Non-Agency MBS		Servicing Rights1		Derivative Instruments, net		Total
Opening balance	$	184,012	$	26,373	$	535	$	210,920
Total gains or losses for the period:
Included in earnings—Mortgage banking and servicing rights income	—		(1,046)		(517)		(1,563)
Included in other comprehensive income	(2,143)		—		—		(2,143)
Purchases, retentions, issues, sales and settlements:
Purchases/Retentions	—		199		—		199
Settlements	(6,746)		—		—		(6,746)
Closing balance	$	175,123	$	25,526	$	18	$	200,667
Change in unrealized gains or losses for the period included in earnings for assets held at the end of the reporting period	$	—	$	(1,046)	$	(517)	$	(1,563)
	For the Six Months Ended
	December 31, 2022
(Dollars in thousands)	Available-for-Sale Securities: Non-Agency MBS		Servicing Rights1		Derivative Instruments, net		Total
Opening Balance	$	186,814	$	25,213	$	464	$	212,491
Total gains or losses for the period:
Included in earnings—Mortgage banking and servicing rights income	—		(93)		(446)		(539)
Included in other comprehensive income	(4,616)		—		—		(4,616)
Purchases, retentions, issues, sales and settlements:
Purchases/Retentions	—		406		—		406
Settlements	(7,075)		—		—		(7,075)
Closing balance	$	175,123	$	25,526	$	18	$	200,667
Change in unrealized gains or losses for the period included in earnings for assets held at the end of the reporting period	$	—	$	(93)	$	(446)	$	(539)

1 Earnings from servicing rights were attributable to: time and payoffs, representing a decrease in servicing rights value due to passage of time, including the impact from both regularly scheduled loan principal payments and loans that were paid down or paid off during the period of $0.1 million and $0.5 million for the three and six months ended December 31, 2022 and an decrease in servicing rights value resulting from market-driven changes in interest rates of $0.9 million for the three months ended December 31, 2022 and an increase of $0.4 million for the six months ended December 31, 2022. Additions to servicing rights were retained upon sale of loans held for sale.

12

The table below summarizes the quantitative information about Level 3 fair value measurements:

	December 31, 2023
(Dollars in thousands)	Fair Value		Valuation Technique	Unobservable Input	Range (Weighted Average)1
Securities – Non-agency MBS	$	207,708	Discounted Cash Flow	Projected Constant Prepayment Rate, Projected Constant Default Rate, Projected Loss Severity, Discount Rate over SOFR Swaps	0.0 to 59.2% (34.0%) 0.0 to 31.4% (2.5%) 0.0 to 68.7% (28.5%) 2.6 to 6.5% (2.6%)
Servicing Rights	$	28,043	Discounted Cash Flow	Projected Constant Prepayment Rate, Life (in years), Discount Rate	5.2 to 38.1% (12.2%) 1.6 to 15.2 (7.6) 9.5 to 11.5% (9.8%)

	June 30, 2023
(Dollars in thousands)	Fair Value		Valuation Technique	Unobservable Input	Range (Weighted Average)1
Securities – Non-agency MBS	$	205,005	Discounted Cash Flow	Projected Constant Prepayment Rate, Projected Constant Default Rate, Projected Loss Severity, Discount Rate over LIBOR	0.0 to 59.7% (32.0%) 0.0 to 7.5% (2.4%) 0.0 to 68.7% (28.5%) 2.6 to 7.5% (2.7%)
Servicing Rights	$	25,443	Discounted Cash Flow	Projected Constant Prepayment Rate, Life (in years), Discount Rate	6.1% to 40.1% (12.6%) 1.8 to 10.9 (7.7) 9.5 to 11.5% (9.6%)

1 The weighted average for Securities - Non-agency MBS is based on the relative fair value of the securities and for Servicing Rights is based on the relative unpaid principal of the loans being serviced.

For non-agency mortgage-backed securities, significant increases (decreases) in any of those inputs in isolation would result in a significantly lower (higher) fair value measurement. Generally, a change in the assumption used for the probability of default is accompanied by a directionally similar change in the assumption used for the projected loss severity and a directionally opposite change in the assumption used for projected prepayment rates. For servicing rights, significant increases in projected prepayment rates or discount rates in isolation would result in a significantly lower fair value measurement, while a significant increase in expected life in isolation would result in a significantly higher fair value measurement. Generally, a change in the projected prepayment rates is accompanied by a directionally opposite change in expected life.

The aggregate fair value of loans held for sale, carried at fair value, contractual balance (including accrued interest), and unrealized gain were:

(Dollars in thousands)	December 31, 2023		June 30, 2023
Aggregate fair value	$	13,468	$	23,203
Contractual balance	13,013		22,844
Unrealized gain	$	455	$	359

The total interest income and amount of gains and losses from changes in fair value included in earnings for loans held for sale were:

	For the Three Months Ended				For the Six Months Ended
	December 31,				December 31,
(Dollars in thousands)	2023		2022		2023		2022
Interest income	$	141	$	103	$	330	$	153
Change in fair value	33		(422)		(96)		(331)
Total	$	174	$	(319)	$	234	$	(178)

13

The table below summarizes assets measured at fair value on a non-recurring basis:

	December 31, 2023
(Dollars in thousands)	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Balance
Other real estate owned and repossessed vehicles:
Single family real estate	$	—	$	—	$	5,574	$	5,574
Autos	$	—	$	—	$	1,743	$	1,743
Total	$	—	$	—	$	7,317	$	7,317
	June 30, 2023
(Dollars in thousands)	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Balance
Other real estate owned and repossessed vehicles:
Single family real estate	$	—	$	—	$	5,574	$	5,574
Multifamily real estate	—		—		1,392		1,392
Autos	—		—		$	1,133	1,133
Total	$	—	$	—	$	8,099	$	8,099

Other real estate owned and foreclosed assets, which are measured at the lower of carrying value or fair value less costs to sell, had a net carrying amount of $7.3 million at December 31, 2023, after write-downs of $1.1 million, and a net carrying amount of $8.1 million at June 30, 2023, after write-downs of $1.7 million.

The following table presents quantitative information about Level 3 fair value measurements for other real estate owned measured at fair value on a non-recurring basis:

	December 31, 2023
(Dollars in thousands)	Fair Value		Valuation Technique	Unobservable Input	Range (Weighted Average) 1
Other real estate owned:
Single family real estate	$	5,574	Sales comparison approach	Differences between the comparable sales	62.1 to 93.6% (62.1%)

	June 30, 2023
(Dollars in thousands)	Fair Value		Valuation Technique	Unobservable Input	Range (Weighted Average) 1
Other real estate owned:
Single family real estate	$	5,574	Sales comparison approach	Differences between the comparable sales	62.1 to 93.6% (62.1%)
Multifamily real estate	$	1,392	Sales comparison approach and income approach	Differences between the comparable sales and differences in net operating income expectations, capitalization rate	49.8 to 54.5% (49.8%)

1 For other real estate owned the ranges shown may vary positively or negatively based on the comparable sales reported in the current appraisal. In certain instances, the range can be significant due to small sample sizes and in some cases the asset being valued having limited comparable sales with similar characteristics at the time the current appraisal is conducted. The weighted average is based on the relative fair value of comparable sales.

14

Fair Value of Financial Instruments

Carrying amounts and estimated fair values of financial instruments at December 31, 2023 and June 30, 2023 were:

	December 31, 2023
			Fair Value
(Dollars in thousands)	Carrying Amount		Level 1		Level 2		Level 3		Total Fair Value
Financial assets:
Cash, cash equivalents and segregated cash	$	1,763,723	$	1,763,723	$	—	$	—	$	1,763,723
Trading securities	329		—		329		—		329
Available-for-sale securities	239,812		—		32,104		207,708		239,812
Stock of regulatory agencies	21,534		—		21,534		—		21,534
Loans held for sale, at fair value	13,468		—		13,468		—		13,468
Loans held for investment—net	18,264,354		—		—		18,313,778		18,313,778
Securities borrowed	145,176		—		—		155,513		155,513
Customer, broker-dealer and clearing receivables	265,857		—		—		278,219		278,219
Servicing rights	28,043		—		—		28,043		28,043
Other assets - derivative instruments	96,084		—		96,084		—		96,084
Financial liabilities:
Total deposits	18,203,912		—		18,120,805		—		18,120,805
Advances from the Federal Home Loan Bank	90,000		—		84,150		—		84,150
Borrowings, subordinated notes and debentures	341,086		—		314,321		—		314,321
Securities loaned	155,492		—		—		155,492		155,492
Customer, broker-dealer and clearing payables	368,885		—		—		368,885		368,885
Accounts payable and other liabilities - derivative instruments	92,144		—		92,144		—		92,144

	June 30, 2023
			Fair Value
(Dollars in thousands)	Carrying Amount		Level 1		Level 2		Level 3		Total Fair Value
Financial assets:
Cash, cash equivalents and segregated cash	$	2,382,086	$	2,382,086	$	—	$	—	$	2,382,086
Trading securities	758		—		758		—		758
Available-for-sale securities	232,350		—		27,345		205,005		232,350
Stock of regulatory agencies	21,510		—		21,510		—		21,510
Loans held for sale, at fair value	23,203		—		23,203		—		23,203
Loans held for sale, at lower of cost or fair value	776		—		—		780		780
Loans held for investment—net	16,456,728		—		—		16,417,183		16,417,183
Securities borrowed	134,339		—		—		143,461		143,461
Customer, broker-dealer and clearing receivables	374,074		—		—		386,082		386,082
Servicing rights	25,443		—		—		25,443		25,443
Other assets - derivative instruments	919		—		919		—		919
Financial liabilities:
Total deposits	17,123,108		—		17,064,084		—		17,064,084
Advances from the Federal Home Loan Bank	90,000		—		83,192		—		83,192
Borrowings, subordinated notes and debentures	361,779		—		327,564		—		327,564
Securities loaned	159,832		—		—		159,416		159,416
Customer, broker-dealer and clearing payables	445,477		—		—		445,447		445,447
Accounts payable and other liabilities - derivative instruments	691		—		691		—		691

Carrying amount is the estimated fair value for cash and cash equivalents and segregated cash, stock of regulatory agencies, interest bearing deposits, accrued interest receivable and payable, demand deposits, short-term debt, and variable rate loans or deposits that reprice frequently and fully. For fixed rate loans, deposits, borrowings or subordinated debt and for variable rate loans, deposits, borrowings or subordinated debt with infrequent repricing or repricing limits, fair value is based on discounted cash flows using current market rates applied to the estimated life and credit risk. A discussion of the methods of valuing trading securities, available-for-sale securities, loans held for sale and derivatives can be found in Note 3—“Fair Value” of the 2023 Form 10-K. The fair value of off-balance sheet items is not material.

15

4. AVAILABLE-FOR-SALE SECURITIES

The amortized cost and fair value of available-for-sale securities were:

	December 31, 2023
(Dollars in thousands)	Amortized Cost		Unrealized Gains		Unrealized Losses		Fair Value
Mortgage-backed securities (MBS):
U.S. agencies1	$	31,048	$	238	$	(2,622)	$	28,664
Non-agency2	209,783		911		(2,986)		207,708
Total mortgage-backed securities	240,831		1,149		(5,608)		236,372
Non-MBS:
Municipal	3,721		—		(281)		3,440
Total Non-MBS	3,721		—		(281)		3,440
Total available-for-sale securities	$	244,552	$	1,149	$	(5,889)	$	239,812
	June 30, 2023
(Dollars in thousands)	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 securities	237,295		711		(9,054)		228,952
Non-MBS:
Municipal	3,656		—		(258)		3,398
Total Non-MBS	3,656		—		(258)		3,398
Total available-for-sale securities	$	240,951	$	711	$	(9,312)	$	232,350

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.

No credit losses were recognized on available-for-sale securities in the three and six months ended December 31, 2023 and December 31, 2022. Based on the underlying government guarantees and other credit protection supporting our securities, no allowance for credit losses for available-for-sale securities was recorded at December 31, 2023 and June 30, 2023. The Company has no allowance for the available-for-sale securities in an unrealized loss position based on an analysis of: (1) the credit characteristics of the securities, including the forecasted cash flows, credit ratings, credit enhancement, and external government backing, as applicable, and (2) whether the Company is intending to sell or is required to sell any securities before recovering the amortized cost basis of the securities. The unrealized losses on available-for-sale securities are primarily driven by the increase in interest rates since the securities were purchased.

The face amounts of available-for-sale securities pledged to secure borrowings at December 31, 2023 and June 30, 2023 were $0.8 million and $0.9 million, respectively.

During the three and six months ended December 31, 2023 and 2022, the Company sold a $4.8 million available-for-sale security with no realized gain or loss.

16

Securities with unrealized losses, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, were:

	December 31, 2023
	Available-for-sale securities in loss position for
	Less Than 12 Months				More Than 12 Months				Total
(Dollars in thousands)	Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses
MBS:
U.S. agencies	$	25	$	—	$	20,762	$	(2,622)	$	20,787	$	(2,622)
Non-agency	42,324		(71)		133,670		(2,915)		175,994		(2,986)
Total MBS	42,349		(71)		154,432		(5,537)		196,781		(5,608)
Non-MBS:
Municipal	—		—		3,440		(281)		3,440		(281)
Total Non-MBS	—		—		3,440		(281)		3,440		(281)
Total available-for-sale securities	$	42,349	$	(71)	$	157,872	$	(5,818)	$	200,221	$	(5,889)
	June 30, 2023
	Available-for-sale securities in loss position for
	Less Than 12 Months				More Than 12 Months				Total
(Dollars in thousands)	Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses
MBS:
U.S. agencies	$	3,182	$	(16)	$	20,642	$	(3,061)	$	23,824	$	(3,077)
Non-agency	107,982		(1,808)		95,385		(4,169)		203,367		(5,977)
Total MBS	111,164		(1,824)		116,027		(7,230)		227,191		(9,054)
Non-MBS:
Municipal	—		—		3,398		(258)		3,398		(258)
Total Non-MBS	—		—		3,398		(258)		3,398		(258)
Total available-for-sale securities	$	111,164	$	(1,824)	$	119,425	$	(7,488)	$	230,589	$	(9,312)

The components of the Company’s accumulated other comprehensive income (loss) are as follows:

(Dollars in thousands)	December 31, 2023		June 30, 2023
Available-for-sale securities—net unrealized gains (losses)	$	(4,740)	$	(8,601)
Available-for-sale securities—non-credit related	(845)		(845)
Subtotal	(5,585)		(9,446)
Tax benefit (expense)	1,666		2,836
Net unrealized gain (loss) on investment securities in accumulated other comprehensive income (loss)	$	(3,919)	$	(6,610)

The following table sets forth the expected maturity distribution of our mortgage-backed securities, which is based on assumed prepayment rates, and the maturity distribution of our non-MBS, which is based on the contractual maturity:

	As of December 31, 2023
(Dollars in thousands)	Total Amount		Due Within One Year		Due after One but within Five Years		Due after Five but within Ten Years		Due After Ten Years
MBS:
Agency1	$	31,048	$	6,907	$	14,543	$	7,222	$	2,376
Non-Agency2	$	209,783	$	163,929	$	43,425	$	1,534	$	895
Total MBS	$	240,831	$	170,836	$	57,968	$	8,756	$	3,271
Non-MBS:
Municipal	$	3,721	$	—	$	—	$	—	$	3,721
Total Non-MBS	$	3,721	$	—	$	—	$	—	$	3,721
Available-for-sale—Amortized cost	$	244,552	$	170,836	$	57,968	$	8,756	$	6,992
Available-for-sale—Fair value	$	239,812	$	168,400	$	56,864	$	8,181	$	6,367

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 pools of 1-4 family residential, Alt-A or pay-option ARM mortgages and commercial mortgages.

17

5.    LOANS & ALLOWANCE FOR CREDIT LOSSES

The Company categorizes the loan portfolio into six segments: Single Family - Mortgage & Warehouse, Multifamily and Commercial Mortgage, Commercial Real Estate, Commercial & Industrial - Non Real Estate, Auto & Consumer and Other. For further detail of the segments of the Company’s loan portfolio, refer to Note 1—“Organizations and Summary of Significant Accounting Policies” in the 2023 Form 10-K.

The following table sets forth the composition of the loan portfolio:

(Dollars in thousands)	December 31, 2023		June 30, 2023
Single Family - Mortgage & Warehouse	$	4,092,104	$	4,173,833
Multifamily and Commercial Mortgage1	4,065,019		3,082,225
Commercial Real Estate1	6,043,400		6,199,818
Commercial & Industrial - Non-RE	4,177,461		2,639,650
Auto & Consumer	477,275		546,264
Other	5,150		10,236
Total gross loans	18,860,409		16,652,026
Allowance for credit losses - loans	(251,749)		(166,680)
Unaccreted premiums (discounts) and loan fees	(344,306)		(28,618)
Total net loans	$	18,264,354	$	16,456,728

1 Includes PCD loans of $296.7 million in Multifamily and Commercial Mortgage and $44.5 million in Commercial Real Estate as of December 31, 2023. For further detail on PCD loans refer to Note 1—“Summary of Significant Accounting Policies”.

Accrued interest receivable on loans held for investments totaled $107.7 million and $77.9 million as of December 31, 2023 and June 30, 2023, respectively.

At December 31, 2023 and June 30, 2023, the Company has pledged certain loans totaling $5,155.8 million and $5,128.4 million, respectively, to the Federal Home Loan Bank (“FHLB”) and $3,915.0 million and $3,689.5 million, respectively, to the Federal Reserve Bank of San Francisco (“FRBSF”).

The following table presents the components of the provision for credit losses:

	For the Three Months Ended				For the Six Months Ended
	December 31,				December 31,
(Dollars in thousands)	2023		2022		2023		2022
Provision for credit losses - loans	$	12,500	$	3,500	$	18,250	$	12,250
Provision for credit losses - unfunded lending commitments	1,000		(499)		2,250		(499)
Total provision for credit losses	$	13,500	$	3,001	$	20,500	$	11,751

The following tables summarize activity in the allowance for credit losses - loans by portfolio segment:

	For the Three Months Ended December 31, 2023
(Dollars in thousands)	Single Family-Mortgage & Warehouse		Multifamily and Commercial Mortgage		Commercial Real Estate		Commercial & Industrial - Non-RE		Auto & Consumer		Other		Total
Balance at October 1, 2023	$	17,426	$	15,874	$	71,355	$	54,592	$	11,614	$	9	$	170,870
Allowance for credit losses at acquisition of PCD loans	—		58,972		11,125		—		—		—		$	70,097
Provision (benefit) for credit losses - loans	(2,080)		3,507		(4,702)		14,695		1,080		—		12,500
Charge-offs	—		—		—		(86)		(2,321)		—		(2,407)
Recoveries	10		—		—		—		679		—		689
Balance at December 31, 2023	$	15,356	$	78,353	$	77,778	$	69,201	$	11,052	$	9	$	251,749

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	For the Three Months Ended December 31, 2022
(Dollars in thousands)	Single Family-Mortgage & Warehouse		Multifamily and Commercial Mortgage		Commercial Real Estate		Commercial & Industrial - Non-RE		Auto & Consumer		Other		Total
Balance at October 1, 2022	$	18,039	$	14,649	$	73,776	$	34,383	$	14,595	$	30	$	155,472
Provision (benefit) for credit losses - loans	1,878		808		(1,608)		1,655		776		(9)		3,500
Charge-offs	(294)		—		—		—		(1,871)		—		(2,165)
Recoveries	8		—		—		—		403		—		411
Balance at December 31, 2022	$	19,631	$	15,457	$	72,168	$	36,038	$	13,903	$	21	$	157,218

	For the Six Months Ended December 31, 2023
(Dollars in thousands)	Single Family-Mortgage & Warehouse		Multifamily and Commercial Mortgage		Commercial Real Estate		Commercial & Industrial - Non-RE		Auto & Consumer		Other		Total
Balance at July 1, 2023	$	17,503	$	16,848	$	72,755	$	46,347	$	13,212	$	15	$	166,680
Allowance for credit losses at acquisition of PCD loans	—		58,972		11,125		—		—		—		70,097
Provision (benefit) for credit losses - loans	(2,090)		2,533		(6,102)		22,940		975		(6)		18,250
Charge-offs	(80)		—		—		(86)		(4,602)		—		(4,768)
Recoveries	23		—		—		—		1,467		—		1,490
Balance at December 31, 2023	$	15,356	$	78,353	$	77,778	$	69,201	$	11,052	$	9	$	251,749

	For the Six Months Ended December 31, 2022
(Dollars in thousands)	Single Family-Mortgage & Warehouse		Multifamily and Commercial Mortgage		Commercial Real Estate		Commercial & Industrial - Non-RE		Auto & Consumer		Other		Total
Balance at July 1, 2022	$	19,670	$	14,655	$	69,339	$	30,808	$	14,114	$	31	$	148,617
Provision (benefit) for credit losses - loans	236		802		2,829		5,212		3,181		(10)		12,250
Charge-offs	(298)		—		—		—		(4,233)		—		(4,531)
Recoveries	23		—		—		18		841		—		882
Balance at December 31, 2022	$	19,631	$	15,457	$	72,168	$	36,038	$	13,903	$	21	$	157,218

For the three and six months ended December 31, 2023, the allowance for credit losses for loans increased primarily due to loan growth in the Commercial & Industrial - Non-RE portfolio and the loans acquired in the FDIC Loan Purchase.

Loan products within each portfolio contain varying collateral types which impact the estimate of the loss given default utilized in the calculation of the allowance. For further discussion of the model method of estimating expected lifetime credit losses to Note 1—“Organizations and Summary of Significant Accounting Policies” within the 2023 Form 10-K.

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The following tables present a summary of the activity in the allowance for credit losses for off-balance sheet lending commitments:

	Three Months Ended December 31,
(Dollars in thousands)	2023		2022
Balance at October 1,	$	11,723	$	10,973
Provision for credit losses - unfunded lending commitments	1,000		(499)
Balance at December 31,	$	12,723	$	10,474
	Six Months Ended December 31,
(Dollars in thousands)	2023		2022
Balance at July 1,	$	10,473	$	10,973
Provision for credit losses - unfunded lending commitments	2,250		(499)
Balance at December 31,	$	12,723	$	10,474

The increase in the allowance for off-balance sheet lending commitments at December 31, 2023 compared to June 30, 2023, was primarily driven by an increase in the amount of Commercial Real Estate and Commercial and Industrial - Non-RE unfunded commitments.

The following table presents loan-to-value (“LTV”) for the Company’s real estate loans outstanding as of December 31, 2023:

	Total Real Estate Loans				Single Family - Mortgage & Warehouse		Multifamily and Commercial Mortgage		Commercial Real Estate
Weighted-Average LTV	47.8	%			56.4	%	53.3	%	38.8	%
Median LTV	53.0	%	—	%	55.0	%	50.0	%	35.0	%

The Company’s effective weighted-average LTV was 48.6% for real estate loans originated during the three months ended December 31, 2023.

Credit Quality Disclosures. The following tables provide the composition of loans that are performing and nonaccrual by portfolio segment:

	December 31, 2023
(Dollars in thousands)	Single Family-Mortgage & Warehouse		Multifamily and Commercial Mortgage		Commercial Real Estate		Commercial & Industrial - Non-RE		Auto & Consumer		Other		Total
Performing	$	4,037,817	$	4,027,695	$	6,017,298	$	4,174,472	$	475,505	$	5,114	$	18,737,901
Nonaccrual	$	54,287	$	37,324	$	26,102	$	2,989	$	1,770	$	36	$	122,508
Total	$	4,092,104	$	4,065,019	$	6,043,400	$	4,177,461	$	477,275	$	5,150	$	18,860,409
Nonaccrual loans to total loans													0.65		%

	June 30, 2023
(Dollars in thousands)	Single Family-Mortgage & Warehouse		Multifamily and Commercial Mortgage		Commercial Real Estate		Commercial & Industrial - Non-RE		Auto & Consumer		Other		Total
Performing	$	4,143,119	$	3,047,122	$	6,184,966	$	2,636,661	$	544,807	$	8,191	$	16,564,866
Nonaccrual	30,714		35,103		14,852		2,989		1,457		2,045		87,160
Total	$	4,173,833	$	3,082,225	$	6,199,818	$	2,639,650	$	546,264	$	10,236	$	16,652,026
Nonaccrual loans to total loans													0.52		%

There were no nonaccrual loans without an allowance for credit losses as of December 31, 2023 and June 30, 2023. There was no interest income recognized on nonaccrual loans in the three months ended December 31, 2023 and 2022.

Credit Quality Indicators. The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information and current economic trends. The Company analyzes loans individually by classifying the loans based on credit risk. The Company uses the following definitions for risk ratings.

Pass. Loans classified as pass are well protected by the current net worth and paying capacity of the obligor or by the fair value of any underlying collateral, less cost to acquire and sell in a timely manner.

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Special Mention. Loans classified as special mention have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the institution’s credit position at some future date.

Substandard. Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected.

Doubtful. Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable.

The Company reviews and grades loans following a continuous review process, featuring coverage of all loan types and business lines at least quarterly. Continuous reviewing provides more effective risk monitoring because it immediately tests for potential impacts caused by changes in personnel, policy, products or underwriting standards.

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The following tables presents the composition of loans by portfolio segment, fiscal year of origination and credit quality indicator, and the amount of gross charge-offs for the six months ended December 31, 2023:

	December 31, 2023
	Loans Held for Investment by Fiscal Year of Origination												Revolving Loans		Total
(Dollars in thousands)	2024		2023		2022		2021		2020		Prior
Single Family-Mortgage & Warehouse
Pass	$	309,717	$	648,620	$	1,297,738	$	501,469	$	309,309	$	779,468	$	98,848	$	3,945,169
Special Mention	—		10,593		13,575		3,928		8,851		38,883		—		75,830
Substandard	—		285		4,292		3,910		14,999		47,619		—		71,105
Doubtful	—		—		—		—		—		—		—		—
Total	309,717		659,498		1,315,605		509,307		333,159		865,970		98,848		4,092,104
Gross charge-offs	—		—		—		—		—		80		—		80
Multifamily and Commercial Mortgage
Pass	22,417		758,825		1,089,359		664,917		562,656		880,855		—		3,979,029
Special Mention	—		9,096		1,985		—		459		1,085		—		12,625
Substandard	—		4,992		7,250		10,457		33,075		17,591		—		73,365
Doubtful	—		—		—		—		—		—		—		—
Total	22,417		772,913		1,098,594		675,374		596,190		899,531		—		4,065,019
Gross charge-offs	—		—		—		—		—		—		—		—
Commercial Real Estate
Pass	1,071,507		1,710,690		1,737,152		521,677		17,816		53,000		780,174		5,892,016
Special Mention	—		—		—		—		—		—		—		—
Substandard	—		18,657		52,338		34,250		15,000		31,139		—		151,384
Doubtful	—		—		—		—		—		—		—		—
Total	1,071,507		1,729,347		1,789,490		555,927		32,816		84,139		780,174		6,043,400
Gross charge-offs	—		—		—		—		—		—		—		—
Commercial & Industrial - Non-RE
Pass	486,830		411,930		322,969		43,934		7,630		4,427		2,752,431		4,030,151
Special Mention	—		37,404		35,179		—		10,554		—		45,528		128,665
Substandard	—		—		14,624		1,032		—		2,989		—		18,645
Doubtful	—		—		—		—		—		—		—		—
Total	486,830		449,334		372,772		44,966		18,184		7,416		2,797,959		4,177,461
Gross charge-offs	—		—		—		—		—		86		—		86
Auto & Consumer
Pass	27,105		136,439		215,435		55,732		18,658		20,624		—		473,993
Special Mention	—		462		644		100		34		46		—		1,286
Substandard	—		426		925		372		127		146		—		1,996
Doubtful	—		—		—		—		—		—		—		—
Total	27,105		137,327		217,004		56,204		18,819		20,816		—		477,275
Gross charge-offs	—		1,435		2,111		755		131		170		—		4,602
Other
Pass	3,061		—		—		1,071		—		982		—		5,114
Special Mention	—		—		—		—		—		—		—		—
Substandard	—		—		—		36		—		—		—		36
Doubtful	—		—		—		—		—		—		—		—
Total	3,061		—		—		1,107		—		982		—		5,150
Gross charge-offs	—		—		—		—		—		—		—		—
Total
Pass	1,920,637		3,666,504		4,662,653		1,788,800		916,069		1,739,356		3,631,453		18,325,472
Special Mention	—		57,555		51,383		4,028		19,898		40,014		45,528		218,406
Substandard	—		24,360		79,429		50,057		63,201		99,484		—		316,531
Doubtful	—		—		—		—		—		—		—		—
Total	$	1,920,637	$	3,748,419	$	4,793,465	$	1,842,885	$	999,168	$	1,878,854	$	3,676,981	$	18,860,409
As a % of total gross loans	10.18%		19.87%		25.42%		9.77%		5.30%		9.96%		19.50%		100.0%
Total gross charge-offs	$	—	$	1,435	$	2,111	$	755	$	131	$	336	$	—	$	4,768

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	June 30, 2023
	Loans Held for Investment by Fiscal Year of Origination												Revolving Loans		Total
(Dollars in thousands)	2023		2022		2021		2020		2019		Prior
Single Family-Mortgage & Warehouse
Pass	$	730,498	$	1,346,804	$	522,873	$	324,458	$	255,547	$	639,401	$	243,175	$	4,062,756
Special Mention	—		7,280		7,026		8,303		12,942		18,244		6,614		60,409
Substandard	—		5,188		4,686		14,384		2,024		24,386		—		50,668
Doubtful	—		—		—		—		—		—		—		—
Total	730,498		1,359,272		534,585		347,145		270,513		682,031		249,789		4,173,833
Multifamily and Commercial Mortgage
Pass	558,787		975,186		498,744		314,383		224,592		404,222		—		2,975,914
Special Mention	—		9,691		4,636		1,360		7,705		—		—		23,392
Substandard	—		3,145		5,686		38,857		6,181		29,050		—		82,919
Doubtful	—		—		—		—		—		—		—		—
Total	558,787		988,022		509,066		354,600		238,478		433,272		—		3,082,225
Commercial Real Estate
Pass	1,867,476		2,323,095		631,500		87,059		117,928		—		960,024		5,987,082
Special Mention	29,000		43,427		—		8,457		800		15,062				96,746
Substandard	—		29,200		37,951		18,500		15,487		14,852		—		115,990
Doubtful	—		—		—		—		—		—		—		—
Total	1,896,476		2,395,722		669,451		114,016		134,215		29,914		960,024		6,199,818
Commercial & Industrial - Non-RE
Pass	488,120		358,214		29,777		14,794		2,098		—		1,707,619		2,600,622
Special Mention	—		8,221		—		11,413		—		—		600		20,234
Substandard	—		17,762		1,032		—		—		—		—		18,794
Doubtful	—		—		—		—		—		—		—		—
Total	488,120		384,197		30,809		26,207		2,098		—		1,708,219		2,639,650
Auto & Consumer
Pass	161,831		256,154		70,223		24,906		19,897		9,929		—		542,940
Special Mention	423		632		453		60		14		6		—		1,588
Substandard	350		785		233		133		162		73		—		1,736
Doubtful	—		—		—		—		—		—		—		—
Total	162,604		257,571		70,909		25,099		20,073		10,008		—		546,264
Other
Pass	5,721		—		1,306		—		—		1,164		—		8,191
Special Mention	—		—		—		—		—		—		—		—
Substandard	—		2,000		45		—		—		—		—		2,045
Doubtful	—		—		—		—		—		—		—		—
Total	5,721		2,000		1,351		—		—		1,164		—		10,236
Total
Pass	3,812,433		5,259,453		1,754,423		765,600		620,062		1,054,716		2,910,818		16,177,505
Special Mention	29,423		69,251		12,115		29,593		21,461		33,312		7,214		202,369
Substandard	350		58,080		49,633		71,874		23,854		68,361		—		272,152
Doubtful	—		—		—		—		—		—		—		—
Total	$	3,842,206	$	5,386,784	$	1,816,171	$	867,067	$	665,377	$	1,156,389	$	2,918,032	$	16,652,026
As a % of total gross loans	23.07%		32.35%		10.91%		5.21%		4.00%		6.94%		17.52%		100.0%

The Company considers the performance of the loan portfolio and its impact on the allowance for credit losses and evaluates credit quality based on the aging status of its loans. Certain short-term loans do not have a fixed maturity date and are treated as delinquent if not paid in full 90 days after the origination date.

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The following tables provide the aging of loans by portfolio segment:

	December 31, 2023
(Dollars in thousands)	Current			30-59 Days			60-89 Days			90+ Days			Total
Single Family-Mortgage & Warehouse	$	3,994,250		$	20,770		$	10,364		$	66,720		$	4,092,104
Multifamily and Commercial Mortgage	4,022,438			8,109			1,085			33,387			4,065,019
Commercial Real Estate	6,001,011			—			—			42,389			6,043,400
Commercial & Industrial - Non-RE	4,177,461			—			—			—			4,177,461
Auto & Consumer	468,133			6,805			1,311			1,026			477,275
Other	5,150			—			—			—			5,150
Total	$	18,668,443		$	35,684		$	12,760		$	143,522		$	18,860,409
As a % of total gross loans	98.98		%	0.19		%	0.07		%	0.76		%	100.00		%

	June 30, 2023
(Dollars in thousands)	Current			30-59 Days			60-89 Days			90+ Days			Total
Single Family-Mortgage & Warehouse	$	4,102,150		$	20,832		$	7,971		$	42,880		$	4,173,833
Multifamily and Commercial Mortgage	3,048,217			2,705			1,124			30,179			3,082,225
Commercial Real Estate	6,173,716			11,250			—			14,852			6,199,818
Commercial & Industrial - Non-RE	2,639,650			—			—			—			2,639,650
Auto & Consumer	537,181			6,529			1,707			847			546,264
Other	8,024			68			1			2,143			10,236
Total	$	16,508,938		$	41,384		$	10,803		$	90,901		$	16,652,026
As a % of total gross loans	99.14		%	0.25		%	0.06		%	0.55		%	100.00		%

Loans reaching 90+ days past due are generally placed on non-accrual. As of December 31, 2023 and June 30, 2023, there were loans of $31.3 million and $14.1 million, respectively, over 90 days past due and still accruing interest as the Company expects to collect the principal and interest amounts due.

Single family mortgage loans in process of foreclosure were $18.5 million and $17.7 million as of December 31, 2023 and June 30, 2023, respectively.

    Loan Modifications to Borrowers Experiencing Financial Difficulty. The Company may grant certain modifications of loans to borrowers experiencing financial difficulty, which effective July 1, 2023, are reported as financial difficulty modifications (“FDMs”). The Company’s modification programs provide various modifications to borrowers experiencing financial difficulty which may include interest rate reductions, term extensions, payment delays and/or principal forgiveness. There were no FDMs during the three and six months ended December 31, 2023.

Prior to adoption of ASU 2022-02, the Company accounted for certain modifications as troubled debt restructurings (“TDRs”). Approximately 1.77% of our nonaccrual loans were considered TDRs at June 30, 2023. Borrowers that made timely payments after TDRs were considered non-performing for at least six months. Generally, after six months of timely payments, those TDRs were reclassified from the nonaccrual loan category to the performing loan category and any previously deferred interest income was recognized. The Company had no TDRs classified as performing loans at June 30, 2023.

6.     DERIVATIVES

For additional information on the Company’s derivative instruments, see Note 1—“Organizations and Summary of Significant Accounting Policies,” Note 2—“Acquisitions” and Note 3—“Fair Value” in the 2023 Form 10-K and Note 3—“Fair Value” herein. As of December 31, 2023 and June 30, 2023, there were no derivatives designated in hedge accounting relationships.

The following table presents the fair values and notional amounts of the Company’s derivative instruments. While the notional amounts give an indication of the volume of the Company’s derivatives activity, the notional amounts significantly exceed, in

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the Company’s view, the possible losses that could arise from such transactions. For most derivative contracts, the notional amount is not exchanged, rather it is a reference amount used to calculate payments.

	Interest Rate Contracts
(Dollars in thousands)	As of 12/31/2023		As of 6/30/2023
Derivative Assets — Fair Value	$	96,084	$	919
Derivative Liabilities — Fair Value	92,144		691
Derivative Assets — Notional	$	1,316,516	$	231,709
Derivative Liabilities — Notional	1,319,604		204,522

The following table presents the gains (losses) related to the Company’s derivative instrument activity recognized in the Consolidated Statements of Income:

	Three Months Ended				Six Months Ended
	December 31,				December 31,
(Dollars in thousands)	2023		2022		2023		2022
Banking and service fees	$	50	$	119	$	390	$	119
Mortgage banking and servicing rights income	231		23		508		285

7.    STOCKHOLDERS’ EQUITY AND STOCK-BASED COMPENSATION

The Company has an equity incentive plan, the Amended and Restated 2014 Stock Incentive Plan (the “2014 Plan”), which provides for the granting of non-qualified and incentive stock options, restricted stock and restricted stock units, stock appreciation rights and other awards to employees, directors and consultants. The 2014 Plan is designed to encourage selected employees and directors to improve operations and increase profits, and to accept or continue employment or association with the Company through participation in the growth in the value of the Company’s common stock. On November 9, 2023, the Company’s stockholders approved the 2014 Plan, which authorized one million additional shares for future awards under the 2014 Plan. The Company also has an employment agreement with its Chief Executive Officer that authorizes an award of restricted stock units (the “RSU award”). For additional information regarding the Company’s stock-based compensation plans, see Note 16—“Stock-based Compensation” in the 2023 Form 10-K.

At December 31, 2023, 1,932,436 shares of common stock were authorized for future awards under the 2014 Plan. As of December 31, 2023, the total compensation cost related to non-vested awards not yet recognized was $45.4 million and the weighted-average period over which it is expected to be recognized is 1.3 years.

The following table presents the status and changes in RSUs:

	RSUs	Weighted-Average Grant-Date Fair Value
Non-vested balance at June 30, 2023	1,407,882	$	41.53
Granted	643,746	42.66
Vested	(363,263)	37.65
Forfeited	(42,012)	40.33
Non-vested balance at December 31, 2023	1,646,353	$	42.86

    The total fair value of shares vested for the three and six months ended December 31, 2023 was $0.1 million and $14.9 million, respectively. The total fair value of shares vested for the three and six months ended December 31, 2022 was $0.1 million and $12.1 million, respectively.

Common Stock Repurchases. During the three and six months ended December 31, 2023, the Company repurchased a total of $58.7 million and $83.2 million, or 1,607,301 and 2,255,509 common shares at an average price of $36.49 per share and $36.88 per share, respectively. The Company did not repurchase common stock during the three and six months ended December 31, 2022. For additional information regarding the Company’s share repurchase program see Note 15—“Stockholders’ Equity” in the 2023 Form 10-K.

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8.        EARNINGS PER COMMON SHARE

The following table presents the calculation of basic and diluted earnings per common share (“EPS”):

	Three Months Ended				Six Months Ended
	December 31,				December 31,
(Dollars in thousands, except per share data)	2023		2022		2023		2022
Earnings Per Common Share
Net income	$	151,771	$	81,552	$	234,416	$	139,959
Average common shares issued and outstanding	57,216,621		59,999,573		58,082,830		59,927,078
Earnings per common share	$	2.65	$	1.36	$	4.04	$	2.34
Diluted Earnings Per Common Share
Net income	$	151,771	$	81,552	$	234,416	$	139,959
Average common shares issued and outstanding	57,216,621		59,999,573		58,082,830		59,927,078
Dilutive effect of average unvested RSUs	716,213		515,062		847,597		613,275
Average dilutive common shares outstanding	57,932,834		60,514,635		58,930,427		60,540,353
Diluted earnings per common share	$	2.62	$	1.35	$	3.98	$	2.31
Weighted average antidilutive common stock equivalents (excluded from the computation of EPS)	1,598		249,075		837		51,793

For further information regarding the Company’s EPS calculation see Note 17— “Earnings per Common Share” in the 2023 Form 10-K.

9.        COMMITMENTS AND CONTINGENCIES

Operating Leases. The Company leases office space under operating lease agreements scheduled to expire at various dates. The following table represents maturities of lease liabilities:

(Dollars in thousands)	As of December 31, 2023
Within one year	$	12,357
After one year and within two years	12,728
After two years and within three years	12,438
After three years and within four years	12,380
After four years within five years	10,570
After five years	17,367
Total lease payments	77,840
Less: amount representing interest	(7,299)
Total lease liability	$	70,541

Credit-Related Financial Instruments. The Company is a party to credit-related financial instruments with off-balance-sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments are commitments to extend credit. Such commitments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the unaudited condensed consolidated balance sheets.

The Company’s exposure to credit loss is represented by the contractual amount of these commitments. The Company follows the same credit policies in making commitments as it does for on-balance-sheet instruments.

At December 31, 2023, the Company had unfunded commitments to originate $107.6 million in fixed rate loans and $3,394.8 million in variable rate loans, totaling an aggregate outstanding principal balance of $3,502.4 million. For December 31, 2023, the Company’s fixed rate commitments to originate had a weighted-average rate of 8.17%. At December 31, 2023, the Company also had fixed rate commitments to sell loans with an aggregate outstanding principal balance of $13.7 million. At December 31, 2023, 95.1% of the commitments to originate loans are matched with commitments to sell related to conforming single family loans classified as held for sale, respectively.

Commitments to extend credit are agreements to lend to a customer so long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. The commitments for equity lines of credit may expire without being drawn upon. Therefore, the total commitment amounts do not necessarily represent future cash requirements. The amount of collateral obtained, if it is deemed necessary by the Company, is based on management’s credit evaluation of the customer.

In the normal course of business, Axos Clearing LLC.’s (“Axos Clearing”) customer activities involve the execution, settlement, and financing of various customer securities transactions. These activities may expose Axos Clearing to off-balance-

26

sheet risk in the event the customer or other broker is unable to fulfill its contracted obligations and Axos Clearing has to purchase or sell the financial instrument underlying the contract at a loss. Axos Clearing’s clearing agreements with broker-dealers for which it provides clearing services requires them to indemnify Axos Clearing if customers fail to satisfy their contractual obligation.

Litigation. A consolidated derivative action, In re BofI Holding, Inc., Case No. 15cv2722 GPC (KSC), is pending before the United States District Court for the Southern District of California (the “Derivative Action”). The complaint in the Derivative Action sets forth allegations made in a related employment action, Erhart v. BofI Holding Inc., No. 15cv2287 BAS (NLS) (S.D. Cal.) (the “Employment Action”) brought by a former employee of the Company and was stayed pending resolution of the Employment action. On October 4, 2023, the court hearing the Employment Action entered a final amended judgment awarding damages and attorneys’ fees to the plaintiff. The defendants have filed a Notice of Appeal from the Employment Action judgment and all orders merged therein. On January 2, 2024, the Derivative Action plaintiff filed a Third Amended Complaint. The Derivative Action defendants dispute, and intend to vigorously defend against, the allegations raised in the Third Amended Complaint. The Derivative Action plaintiff seeks damages on behalf of the Company with respect to the Employment Action, and also seeks damages on behalf of the Company in connection with a now settled securities class action that was also based upon allegations made in the Employment Action and settled within available insurance coverage without attribution of wrongdoing to the Company, its management, or its directors.

In view of the inherent difficulty of predicting the outcome of the Derivative Action it is not possible to reasonably predict or estimate the eventual loss or range of loss, if any, related to the Derivative Action.

On October 26, 2022, a jury verdict was reached in the case of MUFG Union Bank, N.A. v. Axos Bank, et al, awarding damages to Union Bank. Judgment on such verdict was initially entered on June 5, 2023, and a corrected judgment was entered on June 20, 2023. The Company filed a Notice of Appeal on July 6, 2023, and the plaintiff filed a Notice of Cross-Appeal on July 20, 2023. Briefs have been submitted and the parties now await the scheduling of oral arguments by the court. The Company recorded a $16 million accrued expense in “Accounts payable and other liabilities” on the condensed consolidated balance sheet and in “General and administrative expense” on the condensed consolidated statement of income as of and for the year ended June 30, 2023, respectively. Given the uncertainty of the appellate process and other factors that are unknown or currently unquantifiable, the Company maintained its accrual at December 31, 2023.

27

10.        SEGMENT REPORTING AND REVENUE INFORMATION

Segment Reporting. The operating segments reported below are the segments of the Company for which separate financial information is available and for which segment results are evaluated regularly by the Chief Executive Officer in deciding how to allocate resources and in assessing performance. The operating segments and segment results of the Company are determined based upon the management reporting system, which assigns balance sheet and income statement items to each of the business segments and by which segment results are evaluated by the Chief Executive Officer in deciding how to allocate resources and in assessing performance.

The Company evaluates performance and allocates resources based on pre-tax profit or loss from operations. Certain corporate administration costs have not been allocated to the reportable segments. The Company operates through two operating segments: Banking Business and Securities Business. Inter-segment transactions are eliminated in consolidation and primarily include non-interest income earned by the Securities Business segment and non-interest expense incurred by the Banking Business segment for cash sorting fees related to deposits sourced from Securities Business segment customers, as well as interest expense paid by the Banking Business segment to each of the wholly-owned subsidiaries of the Company and to the Company itself for their operating cash held on deposit with the Business Banking segment. For more information on the Company’s operating segments, see Note 23—“Segment Reporting” in the Company’s 2023 Form 10-K.

In order to reconcile the two segments to the consolidated totals, the Company includes parent-only activities and intercompany eliminations. The following tables present the operating results, goodwill, and assets of the segments:

	For the Three Months Ended December 31, 2023
(Dollars in thousands)	Banking Business		Securities Business		Corporate/Eliminations		Axos Consolidated
Net interest income	$	226,635	$	6,080	$	(4,109)	$	228,606
Provision for credit losses	13,500		—		—		13,500
Non-interest income	103,779		32,641		(12,291)		124,129
Non-interest expense	102,282		27,968		(8,411)		121,839
Income before taxes	$	214,632	$	10,753	$	(7,989)	$	217,396
	For the Three Months Ended December 31, 2022
(Dollars in thousands)	Banking Business		Securities Business		Corporate/Eliminations		Axos Consolidated
Net interest income	$	198,545	$	4,876	$	(3,511)	$	199,910
Provision for credit losses	3,001		—		—		3,001
Non-interest income	10,557		36,004		(18,232)		28,329
Non-interest expense	96,783		25,271		(14,027)		108,027
Income before taxes	$	109,318	$	15,609	$	(7,716)	$	117,211
	For the Six Months Ended December 31, 2023
(Dollars in thousands)	Banking Business		Securities Business		Corporate/Eliminations		Axos Consolidated
Net interest income	$	435,854	$	11,622	$	(7,715)	$	439,761
Provision for credit losses	20,500		—		—		20,500
Non-interest income	116,336		67,196		(24,896)		158,636
Non-interest expense	203,068		55,491		(16,214)		242,345
Income before taxes	$	328,622	$	23,327	$	(16,397)	$	335,552
	For the Six Months Ended December 31, 2022
(Dollars in thousands)	Banking Business		Securities Business		Corporate/Eliminations		Axos Consolidated
Net interest income	$	378,275	$	9,151	$	(7,041)	$	380,385
Provision for credit losses	11,751		—		—		11,751
Non-interest income	21,269		65,169		(30,901)		55,537
Non-interest expense	197,579		49,786		(23,251)		224,114
Income before taxes	$	190,214	$	24,534	$	(14,691)	$	200,057

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	As of December 31, 2023
(Dollars in thousands)	Banking Business		Securities Business		Corporate/Eliminations		Axos Consolidated
Goodwill	$	35,721	$	61,952	$	—	$	97,673
Total Assets	$	20,757,856	$	819,744	$	46,164	$	21,623,764
	As of June 30, 2023
(Dollars in thousands)	Banking Business		Securities Business		Corporate/Eliminations		Axos Consolidated
Goodwill	$	35,721	$	61,952	$	—	$	97,673
Total Assets	$	19,396,167	$	899,496	$	52,806	$	20,348,469

Revenue Information. The following presents non-interest income, segregated by revenue streams in-scope and out-of-scope of Accounting Standards Codification (“ASC”) 606 for the periods indicated. For further information of the Company’s recognition of revenue and ASC 606 see Note 1—“Organizations and Summary of Significant Accounting Policies” in the 2023 Form 10-K.

	For the Three Months Ended				For the Six Months Ended
	December 31,				December 31,
(Dollars in thousands)	2023		2022		2023		2022
Advisory fee income	$	7,362	$	6,983	$	15,581	$	13,942
Broker-dealer clearing fees	6,068		4,425		11,603		9,658
Deposit service fees	2,414		2,202		3,094		3,308
Card fees	732		2,144		1,414		2,933
Bankruptcy trustee and fiduciary service fees	1,397		2,167		2,791		2,940
Non-interest income (in-scope of ASC 606)	17,973		17,921		34,483		32,781
Non-interest income (out-of-scope of ASC 606)	106,156		10,408		124,153		22,756
Total non-interest income	$	124,129	$	28,329	$	158,636	$	55,537

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ITEM 2.MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following discussion provides information about the results of operations, financial condition, liquidity, off balance sheet items and capital resources of Axos Financial, Inc. and subsidiaries (collectively, “we”, “us” or the “Company”). This information is intended to facilitate the understanding and assessment of significant changes and trends related to our financial condition and the results of our operations. This discussion and analysis should be read in conjunction with our financial information in our 2023 Form 10-K, and the interim unaudited condensed consolidated financial statements and notes thereto contained in this report.

Some matters discussed in this report may constitute forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and as such, may involve risks and uncertainties. These forward-looking statements can be identified by the use of terminology such as “estimate,” “project,” “anticipate,” “expect,” “intend,” “believe,” “will,” or the negative thereof or other variations thereon or comparable terminology, or by discussions of strategy that involve risks and uncertainties. These forward-looking statements relate to, among other things, the Company’s financial prospects and other projections of our performance and asset quality, our deposit balances and capital ratios, our ability to continue to grow profitably and increase our business, our ability to continue to diversify lending and deposit franchises, the anticipated timing and financial performance of other offerings, initiatives, and acquisitions, expectations of the environment in which we operate and projections of future performance. Actual results and the timing of events could differ materially from those expressed or implied in such forward-looking statements as a result of risks and uncertainties, including without limitation our ability to successfully integrate acquisitions and realize the anticipated benefits of the transactions, changes in the interest rate environment, monetary policy, inflation, government regulation, general economic conditions, changes in the competitive marketplace, conditions in the real estate markets in which we operate, risks associated with credit quality, our ability to attract and retain deposits and access other sources of liquidity, and the outcome and effects of litigation and other factors beyond our reasonable control. These and other risks and uncertainties are discussed under the heading “Item 1A. Risk Factors” herein and in our 2023 Form 10-K, which has been filed with the SEC, could cause actual results to differ materially from those expressed or implied in any forward-looking statements. Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date of this report. All forward-looking statements are qualified in their entirety by this cautionary statement, and we undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. All written and oral forward-looking statements made in connection with this report, which are attributable to us or persons acting on our behalf are expressly qualified in their entirety by the foregoing information.

General

Our Company is a diversified financial services company with approximately $21.6 billion in assets and approximately $34.4 billion of assets under custody and/or administration at Axos Clearing. Axos Bank (the “Bank”) provides consumer and business banking products through its digital online and mobile banking platforms, low-cost distribution channels and affinity partners. Our Bank has deposit and loan customers nationwide including consumer and business checking, savings and time deposit accounts and financing for single family and multifamily residential properties, commercial real estate mortgages and loans, fund and lender finance loans, asset-based loans, auto loans and other consumer loans. Our Bank generates fee income from consumer and business products including fees from loans originated for sale, deposit account service fees as well as technology and payment transaction processing fees. We offer securities products and services to independent registered investment advisors (“RIAs”) and introducing broker dealers (“IBDs”) through Axos Clearing and Axos Advisor Services (“AAS”) and direct-to-consumer securities trading and digital investment management products through Axos Invest, Inc. (“Axos Invest”). AAS and Axos Clearing generate interest and fee income by providing comprehensive securities custody services to RIAs and clearing, stock lending and margin lending services to IBDs, respectively. Axos Invest generates fee income from self-directed securities trading and margin lending and fee income from digital wealth management services to consumers. Axos Invest LLC is an introducing broker-dealer which supports direct trading. Our common stock is listed on the New York Stock Exchange under the ticker symbol “AX” and is a component of the Russell 2000® Index, the KBW Nasdaq Financial Technology Index, the S&P SmallCap 600® Index, the KBW Nasdaq Financial Technology Index, and the Travillian Tech-Forward Bank Index.

Axos Financial, Inc. is supervised and regulated as a savings and loan holding company by the Board of Governors of the Federal Reserve System (the “Federal Reserve”) and is required to file reports with, comply with the rules and regulations of, and is subject to examination by, the Federal Reserve.

Our Bank is a federal savings bank wholly-owned by our Company and regulated by the Office of the Comptroller of the Currency (“OCC”), and the Federal Deposit Insurance Corporation (“FDIC”) as its deposit insurer. The Bank must file reports with the OCC and the FDIC concerning its activities and financial condition. As a depository institution with more than $10 billion in assets, our Bank and our affiliates are subject to direct supervision by the Consumer Financial Protection Bureau.

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Axos Clearing is a broker-dealer registered with the SEC and the Financial Industry Regulatory Authority, Inc. (“FINRA”). Axos Invest is a Registered Investment Advisor under the Investment Advisers Act of 1940, that is registered with the SEC. Axos Invest LLC is an introducing broker-dealer that is registered with the SEC and FINRA.

FDIC Loan Purchase

On December 7, 2023, the Company acquired from the FDIC two loan portfolios with an aggregate unpaid principal balance of $1.3 billion at a 37% discount to par. Given the level of discount at which the loans were purchased, the yield over the remaining life of the loans is expected to exceed that of the Company’s existing loan portfolio prior to the FDIC Loan Purchase. For additional information on the FDIC Loan Purchase, see Note 2 – “Acquisitions.”

Segment Information

The Company determines reportable segments based on what separate financial information is available and what segment results are evaluated regularly by the Chief Executive Officer in deciding how to allocate resources and in assessing performance. We operate through two segments: the Banking Business segment and the Securities Business segment.

Banking Business. The Banking Business segment includes a broad range of banking services including online banking, concierge banking, and mortgage, vehicle and unsecured lending through online, low-cost distribution channels to serve the needs of consumers and small businesses nationally. In addition, the Banking Business focuses on providing deposit products nationwide to industry verticals (e.g., Title and Escrow), treasury management products to a variety of businesses, and commercial & industrial and commercial real estate lending to clients. The Banking Business includes a bankruptcy trustee and fiduciary service that provides specialized software and consulting services to Chapter 7 bankruptcy and non-Chapter 7 trustees and fiduciaries.

Securities Business. The Securities Business segment includes the clearing broker-dealer, registered investment advisor custody business, and introducing broker-dealer lines of businesses. These lines of business offer products independently to their own customers as well as to Banking Business segment clients. The Securities Business also offers specialized accounting software that serves the business management, family office and wealth management industries.

Critical Accounting Estimates

The following discussion and analysis of our financial condition and results of operations is based upon our unaudited condensed consolidated financial statements and the notes thereto, which have been prepared in accordance with GAAP. The preparation of these unaudited condensed consolidated financial statements requires us to make a number of estimates and assumptions that affect the reported amounts and disclosures in the unaudited condensed consolidated financial statements. On an ongoing basis, we evaluate our estimates and assumptions based upon historical experience and various factors and circumstances. We believe our estimates and assumptions are reasonable under the circumstances. However, actual results may differ significantly from these estimates and assumptions and could have a material effect on the carrying value of assets and liabilities, our results of operations and/or our cash flows.

Critical accounting estimates are those we consider most important to the portrayal of our financial condition and results of operations because they require our most difficult judgments, often as a result of the need to make estimates that are inherently uncertain. Our critical accounting estimates are described in detail in the 2023 Form 10-K in Note 1—“Organizations and Summary of Significant Accounting Policies” and Item 7—“Management’s Discussion and Analysis of Financial Condition and Results of Operations” under the caption “Critical Accounting Estimates.”

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USE OF NON-GAAP FINANCIAL MEASURES

In addition to the results presented in accordance with GAAP, this report includes the non-GAAP financial measures adjusted earnings, adjusted earnings per common share (“Adjusted EPS”), and tangible book value per common share. Non-GAAP financial measures have inherent limitations, may not be comparable to similarly titled measures used by other companies and are not audited. Readers should be aware of these limitations and should be cautious as to their reliance on such measures. As noted below with respect to each measure, we believe the non-GAAP financial measures disclosed in this report enhance investors’ understanding of our business and performance, and our management uses these non-GAAP measures when it internally evaluates the performance of our business and makes operating decisions. However, these non-GAAP measures should not be considered in isolation, or as a substitute for GAAP basis financial measures.

We define “adjusted earnings”, a non-GAAP financial measure, as net income without the after-tax impact of non-recurring acquisition-related items, (including amortization of intangible assets related to acquisitions) and other costs (unusual or non-recurring charges). Adjusted EPS, a non-GAAP financial measure, is calculated by dividing non-GAAP adjusted earnings by the average number of diluted common shares outstanding during the period. We believe the non-GAAP measures of adjusted earnings and adjusted EPS provide useful information about the Company’s operating performance. We believe excluding the non-recurring acquisition-related costs, and other costs provides investors with an alternative understanding of our core business.

Below is a reconciliation of net income, the nearest compatible GAAP measure, to adjusted earnings and adjusted EPS (Non-GAAP):

	Three Months Ended December 31, 2022				Six Months Ended December 31, 2022
(Dollars in thousands, except per share amounts)	2023		2022		2023		2022
Net income	$	151,771	$	81,552	$	234,416	$	139,959
FDIC Loan Purchase - Gain on purchase	(92,397)		—		(92,397)		—
FDIC Loan Purchase - Provision for credit losses	4,648		—		4,648		—
Acquisition-related costs	2,780		2,590		5,570		5,324
Other costs1	—		—		—		16,000
Income tax effect	25,650		(788)		24,811		(6,406)
Adjusted earnings (Non-GAAP)	$	92,452	$	83,354	$	177,048	$	154,877
Average dilutive common shares outstanding	57,932,834		60,514,635		58,930,427		60,540,353
Diluted EPS	$	2.62	$	1.35	$	3.98	$	2.31
FDIC Loan Purchase - Gain on purchase	(1.59)		—		(1.57)		—
FDIC Loan Purchase - Provision for credit losses	0.08		—		0.08		—
Acquisition-related costs	0.05		0.04		0.09		0.09
Other costs	—		—		—		0.26
Income tax effect	0.44		(0.01)		0.42		(0.10)
Adjusted EPS (Non-GAAP)	$	1.60	$	1.38	$	3.00	$	2.56
1 Other costs for the six months ended December 31, 2022 reflect an accrual recorded in the first quarter of fiscal year 2023 as a result of an adverse legal judgement that has not been finalized.

We define “tangible book value”, a non-GAAP financial measure, as book value adjusted for goodwill and other intangible assets. Tangible book value is calculated using common stockholders’ equity minus servicing rights, goodwill and other intangible assets. Tangible book value per common share, a non-GAAP financial measure, is calculated by dividing tangible book value by the common shares outstanding at the end of the period. We believe tangible book value per common share is useful in evaluating the Company’s capital strength, financial condition, and ability to manage potential losses.

Below is a reconciliation of total stockholders’ equity, the nearest compatible GAAP measure, to tangible book value (Non-GAAP):

	December 31,
(Dollars in thousands, except per share amounts)	2023		2022
Common stockholders’ equity	$	2,078,224	$	1,787,559
Less: servicing rights, carried at fair value	28,043		25,526
Less: goodwill and intangible assets—net	146,793		157,585
Tangible common stockholders’ equity (Non-GAAP)	$	1,903,388	$	1,604,448
Common shares outstanding at end of period	56,898,377		60,000,079
Book value per common share	36.53		29.79
Less: servicing rights, carried at fair value per common share	0.49		0.43
Less: goodwill and other intangible assets—net per common share	2.59		2.62
Tangible book value per common share (Non-GAAP)	$	33.45	$	26.74

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SELECTED FINANCIAL INFORMATION

AXOS FINANCIAL, INC.

SELECTED CONSOLIDATED FINANCIAL INFORMATION

(Dollars in thousands)	December 31, 2023			June 30, 2023			December 31, 2022
Selected Balance Sheet Data:
Total assets	$	21,623,764		$	20,348,469		$	18,741,035
Loans—net of allowance for credit losses	18,264,354			16,456,728			15,473,212
Loans held for sale, carried at fair value	13,468			23,203			4,292
Loans held for sale, lower of cost or fair value	—			776			455
Allowance for credit losses	251,749			166,680			157,218
Trading securities	329			758			372
Available-for-sale securities	239,812			232,350			248,062
Securities borrowed	145,176			134,339			58,846
Customer, broker-dealer and clearing receivables	265,857			374,074			272,579
Total deposits	18,203,912			17,123,108			15,690,494
Advances from the Federal Home Loan Bank	90,000			90,000			100,000
Borrowings, subordinated debentures and debentures	341,086			361,779			334,077
Securities loaned	155,492			159,832			156,008
Customer, broker-dealer and clearing payables	368,885			445,477			420,947
Total stockholders’ equity	2,078,224			1,917,159			1,787,559
Capital Ratios:
Equity to assets at end of period	9.61		%	9.42		%	9.54		%
Axos Financial, Inc.:
Tier 1 leverage (to adjusted average assets)	9.39		%	8.96		%	9.06		%
Common equity tier 1 capital (to risk-weighted assets)	10.97		%	10.94		%	10.55		%
Tier 1 capital (to risk-weighted assets)	10.97		%	10.94		%	10.55		%
Total capital (to risk-weighted assets)	13.79		%	13.82		%	13.49		%
Axos Bank:
Tier 1 leverage (to adjusted average assets)	10.22		%	9.68		%	10.05		%
Common equity tier 1 capital (to risk-weighted assets)	12.26		%	11.63		%	11.28		%
Tier 1 capital (to risk-weighted assets)	12.26		%	11.63		%	11.28		%
Total capital (to risk-weighted assets)	13.25		%	12.50		%	12.13		%
Axos Clearing LLC:
Net capital	$	103,454		$	35,221		$	60,334
Excess capital	$	98,397		$	29,905		$	55,977
Net capital as a percentage of aggregate debit items	40.92		%	13.25		%	27.69		%
Net capital in excess of 5% aggregate debit items	$	90,812		$	21,930		$	49,441

33

AXOS FINANCIAL, INC.

SELECTED CONSOLIDATED FINANCIAL INFORMATION

	At or for the Three Months Ended						At or for the Six Months Ended
	December 31,						December 31,
(Dollars in thousands, except per share data)	2023			2022			2023			2022
Selected Income Statement Data:
Interest and dividend income	$	394,663		$	279,588		$	758,615		$	503,374
Interest expense	166,057			79,678			318,854			122,989
Net interest income	228,606			199,910			439,761			380,385
Provision for credit losses	13,500			3,001			20,500			11,751
Net interest income, after provision for credit losses	215,106			196,909			419,261			368,634
Non-interest income	124,129			28,329			158,636			55,537
Non-interest expense	121,839			108,027			242,345			224,114
Income before income taxes	217,396			117,211			335,552			200,057
Income taxes	65,625			35,659			101,136			60,098
Net income	$	151,771		$	81,552		$	234,416		$	139,959
Per Common Share Data:
Net income:
Basic	$	2.65		$	1.36		$	4.04		$	2.34
Diluted	$	2.62		$	1.35		$	3.98		$	2.31
Adjusted earnings per common share (Non-GAAP)1	$	1.60		$	1.38		$	3.00		$	2.56
Book value per common share	$	36.53		$	29.79		$	36.53		$	29.79
Tangible book value per common share (Non-GAAP)1	$	33.45		$	26.74		$	33.45		$	26.74
Weighted average number of common shares outstanding:
Basic	57,216,621			59,999,573			58,082,830			59,927,078
Diluted	57,932,834			60,514,635			58,930,427			60,540,353
Common shares outstanding at end of period	56,898,377			60,000,079			56,898,377			60,000,079
Common shares issued at end of period	69,828,709			69,153,591			69,828,709			69,153,591
Performance Ratios and Other Data:
Loan originations for investment	$	2,739,261		$	2,013,576		$	5,344,593		$	4,499,800
Loan originations for sale	44,325			43,227			96,910			113,300
Loan purchases	789,516			76			841,408			127
Return on average assets	2.90		%	1.77		%	2.29		%	1.55		%
Return on average common stockholders’ equity	30.39		%	18.71		%	23.72		%	16.35		%
Interest rate spread2	3.58		%	3.64		%	3.48		%	3.63		%
Net interest margin3	4.55		%	4.49		%	4.46		%	4.38		%
Net interest margin3 – Banking Business Segment	4.62		%	4.65		%	4.54		%	4.58		%
Efficiency ratio4	34.54		%	47.33		%	40.50		%	51.41		%
Efficiency ratio4 – Banking Business Segment	30.96		%	46.29		%	36.78		%	49.45		%
Asset Quality Ratios:
Net annualized charge-offs to average loans	0.02		%	0.05		%	0.04		%	0.05		%
Non-performing loans and leases to total loans	0.65		%	0.61		%	0.65		%	0.61		%
Non-performing assets to total assets	0.60		%	0.54		%	0.60		%	0.54		%
Allowance for credit losses - loans to total loans held for investment5	1.33		%	1.00		%	1.33		%	1.00		%
Allowance for credit losses - loans to non-performing loans5	205.50		%	165.51		%	205.50		%	165.51		%

1 See “Use of Non-GAAP Financial Measures.”

2 Interest rate spread represents the difference between the annualized weighted average yield on interest-earning assets and the annualized weighted average rate paid on interest-bearing liabilities.

3 Net interest margin represents annualized net interest income as a percentage of average interest-earning assets.

4 Efficiency ratio represents non-interest expense as a percentage of the aggregate of net interest income and non-interest income.

5 The increase in the ratios of the allowance for credit losses - loans to total loans held for investment and the allowance for credit losses - loans to non-performing loans at December 31, 2023 was primarily attributable to the allowance for credit losses related to the PCD loans acquired in the FDIC Loan Purchase. See Note 2 - “Acquisitions” for additional information.

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RESULTS OF OPERATIONS

Comparison of the Three and Six Months Ended December 31, 2023 and 2022

For the three months ended December 31, 2023, we had net income of $151.8 million, or $2.62 per diluted share, compared to net income of $81.6 million, or $1.35 per diluted share, for the three months ended December 31, 2022. For the six months ended December 31, 2023, we had net income of $234.4 million, or $3.98 per diluted share, compared to net income of $140.0 million, or $2.31 per diluted share, for the six months ended December 31, 2022.

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,
	December 31, 2023						December 31, 2022
(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	$	17,499,840	$	357,852	8.18	%	$	15,452,232	$	255,661	6.62	%
Non-purchased loans	17,241,605		345,905		8.02	%	15,452,232		255,661		6.62	%
Purchased loans5	258,235		11,947		18.51	%	—		—		—	%
Interest-earning deposits in other financial institutions	2,023,446		27,737		5.48	%	1,664,408		15,614		3.75	%
Mortgage-backed and other investment securities4	238,470		3,200		5.37	%	257,133		3,578		5.57	%
Securities borrowed and margin lending6	336,919		5,467		6.49	%	409,543		4,321		4.22	%
Stock of the regulatory agencies	17,250		407		9.44	%	18,685		414		8.86	%
Total interest-earning assets	20,115,925		394,663		7.85	%	17,802,001		279,588		6.28	%
Non-interest-earning assets	810,366						678,531
Total assets	$	20,926,291					$	18,480,532
Liabilities and Stockholders’ Equity:
Interest-bearing demand and savings	$	13,931,565	$	150,107	4.31	%	$	9,951,529	$	65,028	2.61	%
Time deposits	1,002,116		10,074		4.02	%	1,146,877		6,320		2.20	%
Securities loaned	181,690		1,010		2.23	%	289,782		1,067		1.47	%
Advances from the FHLB	90,000		530		2.35	%	290,918		2,504		3.44	%
Borrowings, subordinated notes and debentures	349,862		4,336		4.96	%	375,331		4,759		5.07	%
Total interest-bearing liabilities	15,555,233		166,057		4.27	%	12,054,437		79,678		2.64	%
Non-interest-bearing demand deposits	2,682,261						3,941,751
Other non-interest-bearing liabilities	690,854						741,066
Stockholders’ equity	1,997,943						1,743,278
Total liabilities and stockholders’ equity	$	20,926,291					$	18,480,532
Net interest income			$	228,606					$	199,910
Interest rate spread7					3.58	%					3.64	%
Net interest margin8					4.55	%					4.49	%

1Average balances are obtained from daily data.

2Annualized.

3Loans include loans held for sale, loan premiums and unearned fees.

4Interest income includes reductions for amortization of loan and investment securities premiums and earnings from accretion of discounts and loan fees.

5Purchased loans include loans, loan discounts and unearned fees related to the FDIC Loan Purchase.

6Margin lending is the significant component of the asset titled customer, broker-dealer and clearing receivables on the unaudited Condensed Consolidated Balance Sheets.

7Interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average rate paid on interest-bearing liabilities.

8Net interest margin represents annualized net interest income as a percentage of average interest-earning assets.

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	For the Six Months Ended,
	December 31, 2023						December 31, 2022
(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	$	17,075,797	$	684,826	8.02	%	$	15,107,071	$	463,999	6.14	%
Non-purchased loans	16,945,974		672,879		7.94	%	15,107,071		463,999		6.14	%
Purchased loans5	129,823		11,947		18.51	%	—		—		—	%
Interest-earning deposits in other financial institutions	2,058,407		56,247		5.47	%	1,449,814		22,961		3.17	%
Mortgage-backed and other investment securities4	235,929		6,336		5.37	%	260,102		6,876		5.29	%
Securities borrowed and margin lending6	334,105		10,462		6.26	%	537,404		8,705		3.24	%
Stock of the regulatory agencies	17,250		744		8.63	%	23,483		833		7.09	%
Total interest-earning assets	19,721,488		758,615		7.69	%	17,377,874		503,374		5.79	%
Non-interest-earning assets	768,570						683,127
Total assets	$	20,490,058					$	18,061,001
Liabilities and Stockholders’ Equity:
Interest-bearing demand and savings	$	13,389,681	$	284,465	4.25	%	$	8,851,092	$	92,737	2.10	%
Time deposits	1,087,896		21,826		4.01	%	1,151,797		11,116		1.93	%
Securities loaned	185,198		1,459		1.58	%	414,362		2,010		0.97	%
Advances from the FHLB	90,000		1,059		2.35	%	585,633		7,667		2.62	%
Borrowings, subordinated notes and debentures	384,892		10,045		5.22	%	377,650		9,459		5.01	%
Total interest-bearing liabilities	15,137,667		318,854		4.21	%	11,380,534		122,989		2.16	%
Non-interest-bearing demand deposits	2,672,180						4,213,995
Other non-interest-bearing liabilities	703,876						754,079
Stockholders’ equity	1,976,335						1,712,393
Total liabilities and stockholders’ equity	$	20,490,058					$	18,061,001
Net interest income			$	439,761					$	380,385
Interest rate spread7					3.48	%					3.63	%
Net interest margin8					4.46	%					4.38	%

1.Average balances are obtained from daily data.

2.Annualized.

3.Loans include loans held for sale, loan premiums and unearned fees.

4.Purchased loans include loans, loan discounts and unearned fees related to the FDIC Loan Purchase.

5.Interest income includes reductions for amortization of loan and investment securities premiums and earnings from accretion of discounts and loan fees.

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.

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Average Balances, Net Interest Income, Yields Earned and Rates Paid

The following table sets forth the effects of changing rates and volumes on our net interest income. Information is provided with respect to (i) effects on interest income and interest expense attributable to changes in volume (changes in volume multiplied by prior rate); and (ii) effects on interest income and interest expense attributable to changes in rate (changes in rate multiplied by prior volume). The change in interest due to both volume and rate has been allocated proportionally to each based on the relative changes attributable to volume and changes attributable to rate.

	For the Three Months Ended						For the Six Months Ended
	December 31,						December 31,
	2023 vs 2022						2023 vs 2022
	Increase (Decrease) Due to						Increase (Decrease) Due to
(Dollars in thousands)	Volume		Rate		Total Increase (Decrease)		Volume		Rate		Total Increase (Decrease)
Increase (decrease) in interest income:
Loans	$	36,781	$	65,410	$	102,191	$	65,928	$	154,899	$	220,827
Non-purchased loans	24,834		65,410		90,244		53,981		154,899		208,880
Purchased loans1	11,947		—		11,947		11,947		—		11,947
Interest-earning deposits in other financial institutions	3,862		8,261		12,123		12,199		21,087		33,286
Mortgage-backed and other investment securities	(253)		(125)		(378)		(643)		103		(540)
Securities borrowed and margin lending	(868)		2,014		1,146		(4,178)		5,935		1,757
Stock of the regulatory agencies	(33)		26		(7)		(248)		159		(89)
Total increase (decrease) in interest income	$	39,489	$	75,586	$	115,075	$	73,058	$	182,183	$	255,241
Increase (decrease) in interest expense:
Interest-bearing demand and savings	$	32,367	$	52,712	$	85,079	$	63,981	$	127,747	$	191,728
Time deposits	(884)		4,638		3,754		(649)		11,359		10,710
Securities loaned	(485)		428		(57)		(1,440)		889		(551)
Advances from the FHLB	(1,354)		(620)		(1,974)		(5,890)		(718)		(6,608)
Borrowings, subordinated notes and debentures	(320)		(103)		(423)		184		402		586
Total increase (decrease) in interest expense	$	29,324	$	57,055	$	86,379	$	56,186	$	139,679	$	195,865

1 Purchased loans include loans, loan discounts and unearned fees related to the FDIC Loan Purchase.

Net Interest Income

For the three months ended December 31, 2023, net interest income totaled $228.6 million, an increase of $28.7 million and 14.4% compared to net interest income of $199.9 million for the three months ended December 31, 2022. For the three months ended December 31, 2023, net interest margin, defined as annualized net interest income divided by average interest-earning assets, increased by 6 basis points compared to the net interest margin of 4.49% for the three months ended December 31, 2022.

For the three months ended December 31, 2023, total interest and dividend income increased 41.16% from the three months ended December 31, 2022, primarily due to a $102.2 million increase in interest income from loans, attributable to a 156 basis point increase in rates earned and a $2.0 billion increase in average balances.

For the three months ended December 31, 2023, total interest expense increased 108.41% from the three months ended December 31, 2022, primarily due to a $85.1 million increase in interest expense from demand and savings deposits, attributable to a 170 basis point increase in rates paid and a $4.0 billion increase in average balances.

For the six months ended December 31, 2023, net interest income totaled $439.8 million, an increase of $59.4 million and 15.6% compared to net interest income of $380.4 million for the six months ended December 31, 2022. For the six months ended December 31, 2023, net interest margin, defined as annualized net interest income divided by average interest-earning assets, increased by 8 basis points compared to the net interest margin of 4.38% for the six months ended December 31, 2022.

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For the six months ended December 31, 2023, total interest and dividend income increased 50.71% from the six months ended December 31, 2022, primarily due to a $220.8 million increase in interest income from loans, attributable to a 188 basis point increase in rates earned and a $2.0 billion increase in average balances.

For the six months ended December 31, 2023, total interest expense increased 159.3% from the six months ended December 31, 2022, primarily due to $191.7 million increase in interest expense from demand and savings deposits, attributable to a 215 basis point increase in rates paid and a $4.5 billion increase in average balances.

Provision for Credit Losses

The provision for credit losses was $13.5 million and $20.5 million for the three and six months ended December 31, 2023 compared to $3.0 million and $11.8 million for the three and six months ended December 31, 2022. The provision for credit losses for loans for the three and six months ended December 31, 2023 was primarily due to loan growth in the Commercial & Industrial - Non-RE portfolio and the loans acquired in the FDIC Loan Purchase. The provision for credit losses for unfunded commitments of $1.0 million and $2.3 million for the three and six months ended December 31, 2023, respectively, was primarily driven by an increase in the amount of Commercial Real Estate and Commercial and Industrial - Non-RE unfunded commitments. Provisions for credit losses are charged to income to bring the allowance for credit losses for loans and unfunded lending commitments to a level deemed appropriate by management based on the factors discussed under the heading “Financial Condition—Asset Quality and Allowance for Credit Losses - Loans.”

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Non-Interest Income

The following table sets forth information regarding our non-interest income:

	For the Three Months Ended						For the Six Months Ended
	December 31,						December 31,
(Dollars in thousands)	2023		2022		Inc (Dec)		2023		2022		Inc (Dec)
Broker-dealer fee income	$	12,519	$	9,812	$	2,707	$	24,996	$	18,990	$	6,006
Advisory fee income	7,362		6,983		379		15,581		13,942		1,639
Banking and service fees	10,061		10,143		(82)		18,411		16,657		1,754
Mortgage banking and servicing rights income	753		641		112		4,631		4,006		625
Prepayment penalty fee income	1,037		750		287		2,620		1,942		678
Gain on acquisition	92,397		—		92,397		92,397		—		92,397
Total non-interest income	$	124,129	$	28,329	$	95,800	$	158,636	$	55,537	$	103,099

For the three and six months ended December 31, 2023, non-interest income increased by $95.8 million or 338.2%, primarily due to a $92.4 million gain on the FDIC Loan Purchase and an increase in broker-dealer fee income, primarily driven by higher rates earned on cash sorting balances at non-affiliated banks.

Non-Interest Expense

The following table sets forth information regarding our non-interest expense:

	For the Three Months Ended						For the Six Months Ended
	December 31,						December 31,
(Dollars in thousands)	2023		2022		Inc (Dec)		2023		2022		Inc (Dec)
Salaries and related costs	$	58,883	$	49,720	$	9,163	$	114,694	$	96,716	$	17,978
Data and operational processing	18,326		14,632		3,694		34,410		28,654		5,756
Depreciation and amortization	6,488		5,957		531		12,366		12,051		315
Advertising and promotional	9,794		10,899		(1,105)		20,169		17,269		2,900
Professional services	5,976		8,455		(2,479)		15,787		16,542		(755)
Occupancy and equipment	4,001		3,683		318		7,847		7,737		110
FDIC and regulatory fees	3,935		3,569		366		8,384		7,304		1,080
Broker-dealer clearing charges	5,948		3,739		2,209		9,960		6,568		3,392
General and administrative expense	8,488		7,373		1,115		18,728		31,273		(12,545)
Total non-interest expense	$	121,839	$	108,027	$	13,812	$	242,345	$	224,114	$	18,231

For the three months ended December 31, 2023, non-interest expense increased $13.8 million, or 12.8%, primarily due to increases of:

•$9.2 million in salaries and related costs due to increased headcount and salaries;

•$3.7 million in data and operational processing expense primarily due to enhancements of core processing systems, customer interfaces and clearing and custody technology programs; and

•$2.2 million in broker-dealer clearing charges primarily due to mutual fund clearing fees and corporate actions.

The increases were partially offset by a $2.5 million decrease in professional services, primarily due to reduced legal and consulting services.

For the six months ended December 31, 2023, non-interest expense increased $18.2 million, or 8.13%, primarily due to increases of:

•$18.0 million in salaries and related costs due to increased headcount and salaries;

•$5.8 million in data and operational processing expense primarily due to enhancements of core processing systems, customer interfaces and clearing and custody technology programs;

•$3.4 million in broker-dealer clearing charges primarily due to mutual fund clearing fees and corporate actions; and

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•$2.9 million in advertising and promotional expenses due to increased deposit marketing.

The increases were partially offset by a $12.5 million decrease in general and administrative expenses, primarily reflecting the absence of a $16.0 million accrual in the prior year quarter for an adverse legal judgment that has not been finalized.

Provision for Income Taxes

Income tax expense was $65.6 million and $101.1 million for the three and six months ended December 31, 2023, compared to $35.7 million and $60.1 million for three and six months ended December 31, 2022. Our effective income tax rates for the three months ended December 31, 2023 and 2022 were 30.19% and 30.42%, respectively. Our effective income tax rates for the six months ended December 31, 2023 and 2022 were 30.14% and 30.04%, respectively.

SEGMENT RESULTS

Our Company determines reportable segments based on the services offered, the significance of the services offered, the significance of those services to our Company’s financial condition and operating results and management’s regular review of the operating results of those services. Our Company operates through two operating segments: Banking Business and Securities Business. In order to reconcile the two segments to the consolidated totals, our Company includes parent-only activities and intercompany eliminations. Inter-segment transactions are eliminated in consolidation and primarily include non-interest income earned by the Securities Business segment and non-interest expense incurred by the Banking Business segment for cash sorting fees related to deposits sourced from Securities Business segment customers, as well as interest expense paid by the Banking Business segment to each of the wholly-owned subsidiaries of our Company and to our Company itself for their operating cash held on deposit with the Banking Business segment.

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The following tables present the operating results of the segments:

	For the Three Months Ended December 31, 2023
(Dollars in thousands)	Banking Business		Securities Business		Corporate/Eliminations		Axos Consolidated
Net interest income	$	226,635	$	6,080	$	(4,109)	$	228,606
Provision for credit losses	13,500		—		—		13,500
Non-interest income	103,779		32,641		(12,291)		124,129
Non-interest expense	102,282		27,968		(8,411)		121,839
Income before income taxes	$	214,632	$	10,753	$	(7,989)	$	217,396
	For the Three Months Ended December 31, 2022
(Dollars in thousands)	Banking Business		Securities Business		Corporate/Eliminations		Axos Consolidated
Net interest income	$	198,545	$	4,876	$	(3,511)	$	199,910
Provision for credit losses	3,001		—		—		3,001
Non-interest income	10,557		36,004		(18,232)		28,329
Non-interest expense	96,783		25,271		(14,027)		108,027
Income before income taxes	$	109,318	$	15,609	$	(7,716)	$	117,211
	For the Six Months Ended December 31, 2023
(Dollars in thousands)	Banking Business		Securities Business		Corporate/Eliminations		Axos Consolidated
Net interest income	$	435,854	$	11,622	$	(7,715)	$	439,761
Provision for credit losses	20,500		—		—		20,500
Non-interest income	116,336		67,196		(24,896)		158,636
Non-interest expense	203,068		55,491		(16,214)		242,345
Income before income taxes	$	328,622	$	23,327	$	(16,397)	$	335,552
	For the Six Months Ended December 31, 2022
(Dollars in thousands)	Banking Business		Securities Business		Corporate/Eliminations		Axos Consolidated
Net interest income	$	378,275	$	9,151	$	(7,041)	$	380,385
Provision for credit losses	11,751		—		—		11,751
Non-interest income	21,269		65,169		(30,901)		55,537
Non-interest expense	197,579		49,786		(23,251)		224,114
Income before income taxes	$	190,214	$	24,534	$	(14,691)	$	200,057

Banking Business

For the three months ended December 31, 2023, our Banking Business segment had income before income taxes of $214.6 million, compared to income before taxes of $109.3 million for the three months ended December 31, 2022. For the six months ended December 31, 2023, our Banking Business segment had income before income taxes of $328.6 million, compared to income before taxes of $190.2 million for the six months ended December 31, 2022.

For the three and six months ended December 31, 2023, the Banking Business segment’s net interest income increased $28.1 million or 14.1%, and $57.6 million or 15.2%, respectively, compared to net interest income for the three and six months ended December 31, 2022. The increase in net interest income was primarily due to higher interest income from loans driven and from deposits in other financial institutions, primarily attributable to higher rates earned and average balances, partially offset by higher rates paid and higher average interest-bearing deposit balances.

For the three and six months ended December 31, 2023, the Banking Business segment’s non-interest income increased $93.2 million, or 883.0%, and $95.1 million, or 447.0%, respectively, compared to non-interest income for the three and six months ended December 31, 2022. The increase in non-interest income was primarily due to a $92.4 million on the FDIC Loan Purchase. For the six months ended December 31, 2023, higher non-interest income was further driven by increased prepayment penalty fee income, mortgage banking and servicing rights income and banking and service fee income.

For the three and six months ended December 31, 2023, the Banking Business segment’s non-interest expense increased $5.5 million or 5.7%, and $5.5 million or 2.8%, respectively, compared to non-interest expense for the three and six

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months ended December 31, 2022. The increase in non-interest expense was primarily due to increases in salaries and related costs from higher headcount and salaries and increases in data and operational costs from enhancement of core processing systems and customer interfaced offset by decreases in advertising and promotional expense from reduced cash sorting fees paid to our Securities Business. For the six months ended December 31, 2023, the increase in non-interest expense was further offset by the absence of a $16.0 million accrual in the prior year quarter for an adverse legal judgment that has not been finalized.

Average Balances, Net Interest Income, Yields Earned and Rates Paid

The following tables 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
	December 31,
	2023						2022
(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	$	17,499,840	$	358,114	8.19	%	$	15,429,873	$	255,309	6.62	%
Non-purchased loans	17,241,605		346,167		8.03	%	15,429,873		255,309		6.62	%
Purchased loans5	258,235		11,947		18.51	%	—		—		—	%
Interest-earning deposits in other financial institutions	1,867,823		25,688		5.50	%	1,362,744		13,126		3.85	%
Mortgage-backed and other investment securities4	238,092		3,162		5.31	%	264,673		3,615		5.46	%
Stock of the regulatory agencies	17,250		407		9.38	%	18,685		411		8.80	%
Total interest-earning assets	19,623,005		387,371		7.90	%	17,075,975		272,461		6.38	%
Non-interest-earning assets	474,729						341,701
Total assets	$	20,097,734					$	17,417,676
Liabilities and Stockholders’ Equity:
Interest-bearing demand and savings	$	13,951,710	$	150,131	4.30	%	$	10,045,861	$	65,093	2.59	%
Time deposits	1,002,116		10,075		4.02	%	1,146,877		6,321		2.20	%
Advances from the FHLB	90,000		530		2.36	%	290,918		2,504		3.44	%
Borrowings, subordinated notes and debentures	22		—		—	%	33		—		—	%
Total interest-bearing liabilities	15,043,848		160,736		4.27	%	11,483,689		73,918		2.57	%
Non-interest-bearing demand deposits	2,789,378						4,001,370
Other non-interest-bearing liabilities	254,906						198,916
Stockholders’ equity	2,009,602						1,733,701
Total liabilities and stockholders’ equity	$	20,097,734					$	17,417,676
Net interest income			$	226,635					$	198,543
Interest rate spread6					3.63	%					3.81	%
Net interest margin7					4.62	%					4.65	%

1Average balances are obtained from daily data.

2Annualized.

3Loans include loans held for sale, loan premiums and unearned fees.

4Interest income includes reductions for amortization of loan and investment securities premiums and earnings from accretion of discounts and loan fees.

5Purchased loans include loans, loan discounts and unearned fees related to the FDIC Loan Purchase.

6Interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average rate paid on interest-bearing liabilities.

7Net interest margin represents annualized net interest income as a percentage of average interest-earning assets.

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	For the Six Months Ended
	December 31,
	2023						2022
(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	$	17,075,797	$	684,769	8.02	%	$	15,082,455	$	463,319	6.14	%
Non-purchased loans	16,945,974		672,822		7.94	%	15,082,455		463,319		6.14	%
Purchased loans5	129,823		11,947		18.51	%	—		—		—	%
Interest-earning deposits in other financial institutions	1,867,119		51,404		5.51	%	1,145,975		18,757		3.27	%
Mortgage-backed and other investment securities6	235,380		6,336		5.38	%	270,324		6,986		5.17	%
Stock of the regulatory agencies	17,250		744		8.59	%	23,483		829		7.06	%
Total interest-earning assets	19,195,546		743,253		7.74	%	16,522,237		489,891		5.93	%
Non-interest-earning assets	428,200						327,034
Total assets	$	19,623,746					$	16,849,271
Liabilities and Stockholders’ Equity:
Interest-bearing demand and savings	$	13,438,664	$	284,514	4.23	%	$	8,927,706	$	92,833	2.08	%
Time deposits	1,087,896		21,826		4.01	%	1,151,797		11,116		1.93	%
Advances from the FHLB	90,000		1,059		2.35	%	585,633		7,667		2.62	%
Borrowings, subordinated notes and debentures	27		—		7.41	%	27		—		—	%
Total interest-bearing liabilities	14,616,587		307,399		4.21	%	10,665,163		111,616		2.09	%
Non-interest-bearing demand deposits	2,802,887						4,292,481
Other non-interest-bearing liabilities	228,603						192,094
Stockholders’ equity	1,975,669						1,699,533
Total liabilities and stockholders’ equity	$	19,623,746					$	16,849,271
Net interest income			$	435,854					$	378,275
Interest rate spread6					3.53	%					3.84	%
Net interest margin7					4.54	%					4.58	%

1Average balances are obtained from daily data.

2Annualized.

3Loans include loans held for sale, loan premiums and unearned fees.

4Interest income includes reductions for amortization of loan and investment securities premiums and earnings from accretion of discounts and loan fees.

5Purchased loans include loans, loan discounts and unearned fees related to the FDIC Loan Purchase.

6Interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average rate paid on interest-bearing liabilities.

7Net interest margin represents annualized 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

The following table sets forth the effects of changing rates and volumes on our Banking Business segment’s net interest income. Information is provided with respect to (i) effects on interest income and interest expense attributable to changes in volume (changes in volume multiplied by prior rate); and (ii) effects on interest income and interest expense attributable to changes in rate (changes in rate multiplied by prior volume). The change in interest due to both volume and rate has been allocated proportionally to each based on the relative changes attributable to volume and changes attributable to rate.

	For the Three Months Ended						For the Six Months Ended
	December 31,						December 31,
	2023 vs 2022						2023 vs 2022
	Increase (Decrease) Due to						Increase (Decrease) Due to
(Dollars in thousands)	Volume		Rate		Total Increase (Decrease)		Volume		Rate		Total Increase (Decrease)
Increase / (decrease) in interest income:
Loans	$	37,144	$	65,661	$	102,805	$	66,769	$	154,681	$	221,450
Non-purchased loans	25,197		65,661		90,858		54,822		154,681		209,503
Purchased loans1	11,947		—		11,947		11,947		—		11,947
Interest-earning deposits	5,826		6,736		12,562		15,023		17,624		32,647
Securities	(356)		(97)		(453)		(789)		139		(650)
Stock of the regulatory agencies, at cost	(33)		29		(4)		(245)		160		(85)
Total increase (decrease) in interest income	$	42,581	$	72,329	$	114,910	$	80,758	$	172,604	$	253,362
Increase / (decrease) in interest expense:
Interest-bearing demand and savings	$	31,517	$	53,521	$	85,038	$	63,737	$	127,944	$	191,681
Time deposits	(884)		4,638		3,754		(649)		11,359		10,710
Advances from the FHLB	(1,357)		(617)		(1,974)		(5,890)		(718)		(6,608)
Total increase (decrease) in interest expense	$	29,276	$	57,542	$	86,818	$	57,198	$	138,585	$	195,783

1 Purchased loans include loans, loan discounts and unearned fees related to the FDIC Loan Purchase.

We consider the ratios shown in the table below to be key indicators of the performance of our Banking Business segment:

	For the Three Months Ended December 31,				For the Six Months Ended December 31,
	2023		2022		2023		2022
Efficiency ratio	30.96	%	46.29	%	36.78	%	49.45	%
Return on average assets	2.81	%	1.75	%	2.24	%	1.57	%
Interest rate spread	3.63	%	3.81	%	3.53	%	3.84	%
Net interest margin	4.62	%	4.65	%	4.54	%	4.58	%

Our Banking Business segment’s net interest margin exceeds our consolidated net interest margin. Our consolidated net interest margin includes certain items that are not reflected in the calculation of our net interest margin within our Banking Business and reduce our consolidated net interest margin, such as the borrowing costs at our Company and the yields and costs associated with certain items within interest-earning assets and interest-bearing liabilities in our Securities Business, including items related to securities financing operations.

Securities Business

For the three and six months ended December 31, 2023, our Securities Business segment had income before income taxes of $10.8 million and $23.3 million, respectively, compared to income before income taxes of $15.6 million and $24.5 million for the three and six months ended December 31, 2022. respectively.

For the three and six months ended December 31, 2023, net interest income increased $1.2 million or 24.7%, and $2.5 million or 27.0%, respectively, compared to net interest income for the three and six months ended December 31, 2022. The

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increase was primarily driven by an increase in rates earned on interest-bearing cash deposit balances and margin lending and a lower average balances on lines of credit.

For the three months ended December 31, 2023, non-interest income decreased $3.4 million, or 9.3%, compared to non-interest income for the three months ended December 31, 2022. The decrease was primarily driven by lower broker dealer fee income. For the six months ended December 31, 2023, non-interest income increased $2.0 million, or 3.1%, compared to non-interest income for the six months ended December 31, 2022. The increase was primarily driven by higher advisory fees.

For the three and six months ended December 31, 2023, non-interest expense increased $2.7 million, or 10.7%, and $5.7 million or 11.5%, respectively, compared to non-interest expense for the three and six months ended December 31, 2022. The increase was primarily driven by higher salaries and related costs, higher broker dealer clearing charges offset by lower professional services expense.

The following table provides selected information for Axos Clearing:

(Dollars in thousands)	December 31, 2023		June 30, 2023
FDIC insured deposit program balances at banks	$	1,364,830	$	1,627,053
Margin balances	$	192,315	$	205,880
Cash reserves for the benefit of customers	$	194,955	$	149,059
Securities lending:
Interest-earning assets – securities borrowed	$	145,176	$	134,339
Interest-bearing liabilities – securities loaned	$	155,492	$	159,832

FINANCIAL CONDITION

Balance Sheet Analysis

Our total assets increased $1.3 billion, or 6.3%, to $21.6 billion, as of December 31, 2023, up from $20.3 billion at June 30, 2023. The increase in total assets was primarily due to an increase of $1.8 billion in loans, partially offset by a decrease in cash of $0.6 billion. Total liabilities increased $1.1 billion, primarily from an increase in deposits of $1.1 billion.

Loans

The following table sets forth the composition of the loan portfolio:

	December 31, 2023				June 30, 2023
(Dollars in thousands)	Amount		Percent		Amount		Percent
Single Family - Mortgage & Warehouse	$	4,092,104	21.7	%	$	4,173,833	25.1	%
Multifamily and Commercial Mortgage1	4,065,019		21.6	%	3,082,225		18.5	%
Commercial Real Estate1	6,043,400		32.0	%	6,199,818		37.2	%
Commercial & Industrial - Non-RE	4,177,461		22.1	%	2,639,650		15.8	%
Auto & Consumer	477,275		2.5	%	546,264		3.3	%
Other	5,150		0.1	%	10,236		0.1	%
Total gross loans	18,860,409		100.0	%	16,652,026		100.0	%
Allowance for credit losses - loans	(251,749)				(166,680)
Unaccreted discounts and loan fees	(344,306)				(28,618)
Total net loans	$	18,264,354			$	16,456,728

1 Includes PCD loans of $296.7 million in Multifamily and Commercial Mortgage and $44.5 million in Commercial Real Estate as of December 31, 2023. For further detail on PCD loans refer to Note 1—“Summary of Significant Accounting Policies”.

The Bank originates some single-family interest-only loans with terms that include repayments that are less than the repayments for fully amortizing loans. The Bank’s lending guidelines for interest only loans are adjusted for the increased credit risk associated with these loans by requiring borrowers with such loans to borrow at LTVs that are lower than standard amortizing ARM loans and by calculating debt to income ratios for qualifying borrowers based upon a fully amortizing payment, not the interest only payment. The Bank monitors and performs reviews of interest only loans as part of its loan portfolio management process. Adverse trends reflected in the Company’s delinquency statistics, grading and classification of

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interest only loans would be reported to management and the Board of Directors. As of December 31, 2023, the Company had $1.3 billion of interest-only mortgage loans with a weighted average LTV of 57.8%.

Asset Quality and Allowance for Credit Losses - Loans

Non-performing Assets

Non-performing loans are comprised of those 90 days or more past due and other non-accrual loans. Non-performing assets include non-performing loans plus, other real estate owned and repossessed vehicles. At December 31, 2023, our non-performing loans totaled $122.5 million, or 0.65% of total gross loans and our total non-performing assets totaled $129.8 million, or 0.60%, of total assets.

Non-performing loans and foreclosed assets or “non-performing assets” consisted of the following:

(Dollars in thousands)	December 31, 2023			June 30, 2023			Inc (Dec)
Non-performing assets:
Non-accrual loans:
Single Family - Mortgage & Warehouse	$	54,287		$	30,714		$	23,573
Multifamily and Commercial Mortgage	37,324			35,103			2,221
Commercial Real Estate	26,102			14,852			11,250
Commercial & Industrial - Non-RE	2,989			2,989			—
Auto & Consumer	1,770			1,457			313
Other	36			2,045			(2,009)
Total non-performing loans	$	122,508		$	87,160		$	35,348
Foreclosed real estate	5,574			6,966			(1,392)
Repossessed vehicles—Autos	1,743			1,133			610
Total non-performing assets	$	129,825		$	95,259		$	34,566
Total non-performing loans as a percentage of total loans	0.65		%	0.52		%	0.13		%
Total non-performing assets as a percentage of total assets	0.60		%	0.47		%	0.13		%

Total non-performing assets increased from $95.3 million at June 30, 2023 to $129.8 million at December 31, 2023. The increase in non-performing assets was primarily attributable to increases in single-family mortgage loans and commercial real estate.

Management establishes an allowance for credit losses based upon its evaluation of the expected lifetime credit losses related to the amortized cost basis of loans on the balance sheet. The net charge-off rate for the six months ended December 31, 2023 was 0.02%, compared to 0.05% for the six months ended December 31, 2022. Of the 0.02% of net charge-offs for the three months ended December 31, 2023, 0.01% were related to Auto loans covered by insurance policies. For additional information regarding the Company’s allowance for credit losses see Note 5—“Loans and Allowance for Credit Losses” in the Condensed Consolidated Financial Statements. For a discussion of the provision for credit losses for the three and six months ended December 31, 2023, see “Results of Operations—Provision for Credit Losses.” 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. The resolution of existing other real estate owned and non-performing loans should not have a significant adverse impact on our operating results.

Available-for-Sale Securities

Total available-for-sale securities were $239.8 million as of December 31, 2023, compared with $232.4 million at June 30, 2023. During the six months ended December 31, 2023, we purchased $9.6 million of securities and received principal repayments of approximately $6.0 million. The remainder of the change for the available-for-sale portfolio is attributable to changes in unrealized losses and accretion.

Deposits

Deposits increased by $1.1 billion, or 6.3%, to $18.2 billion at December 31, 2023, from $17.1 billion at June 30, 2023. Interest-bearing demand and savings increased $1.5 billion and time deposits decreased $0.3 billion. Non-interest bearing deposits decreased by $0.1 billion as of December 31, 2023, compared with June 30, 2023.

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

	December 31, 2023				June 30, 2023
(Dollars in thousands)	Amount		Rate1		Amount		Rate1
Non-interest bearing	$	2,833,657	—	%	$	2,898,150	—	%
Interest-bearing:
Demand	3,340,669		4.27	%	3,334,615		2.43	%
Savings	11,062,139		4.32	%	9,575,781		4.20	%
Total interest-bearing demand and savings	14,402,808		4.31	%	12,910,396		3.74	%
Time deposits:
$250 and under2	588,502		4.11	%	932,436		3.72	%
Greater than $250	378,945		4.77	%	382,126		4.36	%
Total time deposits	967,447		4.37	%	1,314,562		3.91	%
Total interest bearing2	15,370,255		4.31	%	14,224,958		3.76	%
Total deposits	$	18,203,912	3.64	%	$	17,123,108	3.12	%

1 Based on weighted-average stated interest rates at end of period.

2 The total interest-bearing includes brokered deposits of $1,783.1 million and $2,028.5 million as of December 31, 2023 and June 30, 2023, respectively, of which $381.6 million and $690.9 million, respectively, are time deposits classified as $250,000 and under.

The following table sets forth the number of deposit accounts by type:

	December 31, 2023	June 30, 2023	December 31, 2022
Non-interest bearing	47,846	45,640	43,747
Interest-bearing checking and savings accounts	461,293	427,299	365,714
Time deposits	5,682	6,340	7,475
Total number of deposit accounts	514,821	479,279	416,936

Total Bank deposits that exceeded the FDIC insurance limit of $250,000 or were not collateralized at both December 31, 2023 and June 30, 2023 were $1.9 billion and 1.7 billion, respectively. The maturities of time deposits that exceeded the FDIC insurance limit of $250,000 were as follows:

(Dollars in thousands)	December 31, 2023
3 months or less	$	145,459
3 months to 6 months	187,778
6 months to 12 months	30,051
Over 12 months	15,657
Total	$	378,945

Borrowings

The following table sets forth the composition of our borrowings and the interest rates:

	December 31, 2023					June 30, 2023					December 31, 2022
(Dollars in thousands)	Balance			Weighted Average Rate		Balance			Weighted Average Rate		Balance			Weighted Average Rate
FHLB Advances	$	90,000		2.32	%	$	90,000		2.32	%	$	100,000		2.26	%
Borrowings, subordinated notes and debentures	341,086			4.61	%	361,779			4.69	%	334,077			4.59	%
Total borrowings	$	431,086		4.13	%	$	451,779		4.22	%	$	434,077		4.05	%
Weighted average cost of borrowings during the quarter	4.43		%			4.58		%			4.36		%
Borrowings as a percent of total assets	1.99		%			2.22		%			2.32		%

We regularly use advances from the FHLB to manage our interest rate risk and, to a lesser extent, manage our liquidity position. Generally, FHLB advances with terms between three and ten years have been used to fund the origination of loans and to provide us with interest rate risk protection should rates rise.

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Stockholders’ Equity

Stockholders’ equity increased $161.1 million to $2,078.2 million at December 31, 2023, compared to $1,917.2 million at June 30, 2023. The increase was primarily the result of net income for the six months ended December 31, 2023 of $234.4 million partially offset by repurchases of $83.2 million of common shares.

During the six months ended December 31, 2023, the Company repurchased a total of $83.2 million or 2,255,509 shares of common stock at an average price of $36.88 share. The Company had $20.5 million remaining under the 2023 Board authorized stock repurchase program as of December 31, 2023.

LIQUIDITY

Cash flow information is as follows:

	For the Six Months Ended
	December 31,
(Dollars in thousands)	2023		2022
Operating Activities	$	147,094	$	177,076
Investing Activities	$	(1,736,229)	$	(1,411,404)
Financing Activities	$	970,772	$	1,612,142

During the six months ended December 31, 2023, we had net cash inflows from operating activities of $147.1 million compared to inflows of $177.1 million for the six months ended December 31, 2022. Net operating cash inflows and outflows fluctuate primarily due to the timing of the following: originations of loans held for sale, proceeds from loan sales, securities borrowed and loaned, and customer, broker-dealer and clearing receivables and payables and changes in other assets and payables.

Net cash outflows from investing activities totaled $1,736.2 million for the six months ended December 31, 2023, while outflows totaled $1,411.4 million for the six months ended December 31, 2022. The increase in outflows was primarily due to higher principal repayments, partially offset by increased originations and purchases of loans held for investment related to the FDIC Loan Purchase and acquisition of marine floor financing loans in the six months ended December 31, 2023.

Net cash inflows from financing activities totaled $970.8 million for the six months ended December 31, 2023, compared to net cash inflows from financing activities of $1,612.1 million for the six months ended December 31, 2022. The primary driver behind the decrease in net cash inflows was a lower net increase in deposits in the six months ended December 31, 2023.

As of December 31, 2023, the Bank could borrow up to 35% of its total assets from the FHLB. Borrowings are collateralized by the pledge of certain mortgage loans and available-for-sale securities to the FHLB. At December 31, 2023, the Company had $2,696.7 million available immediately and $4,080.8 million available with additional collateral and the Company had $5,155.8 million of loans and $159.2 thousand of securities pledged to the FHLB. We also had 5 unsecured federal funds purchase lines with five different banks totaling $250.0 million, under which no borrowings were outstanding at December 31, 2023.

The Bank has the ability to borrow short-term from the FRBSF Discount Window. At December 31, 2023, the Bank did not have any borrowings outstanding and the amount available from this source was $3,136.1 million. The credit line is collateralized by consumer loans and mortgage-backed securities. At December 31, 2023 we had $3,915.0 million of loans pledged to the FRBSF.

Axos Clearing has a $150 million secured line of credit available for borrowing, as needed. As of December 31, 2023, there was $6 million outstanding on this credit facility. This credit facility bears interest at rates based on the Federal Funds rate and is due upon demand.

Axos Clearing also has $210 million of unsecured lines of credit available for limited purpose borrowing, which includes $100 million from Axos Financial, Inc. As of December 31, 2023, there was no amount outstanding on this credit facility. This credit facility bears interest at rates based on the Federal Funds rate and is due upon demand.

We view our liquidity sources to be stable and adequate for our anticipated needs and contingencies for both the short- and long-term. Due to the diversified sources of our deposits, while maintaining approximately 90% of our total Bank deposits in insured or collateralized accounts as of December 31, 2023, we believe we have the ability to increase our level of deposits, and have available other potential sources of funding, to address our liquidity needs for the foreseeable future.

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OFF-BALANCE SHEET COMMITMENTS

At December 31, 2023, we had commitments to fund loans of $3,502.4 million, and commitments to sell loans with an aggregate outstanding principal balance of $13.7 million. We have no commitments to purchase available-for-sale securities as of December 31, 2023.

In the normal course of business, Axos Clearing’s customer, broker-dealer, and registered investment advisor activities involve the execution, settlement, and financing of various customer securities transactions. These activities may expose Axos Clearing to off-balance-sheet risk in the event the customer or other broker is unable to fulfill its contracted obligations and Axos Clearing has to purchase or sell the financial instrument underlying the contract at a loss. Axos Clearing’s clearing agreements with broker-dealers for which it provides clearing services requires them to indemnify Axos Clearing if customers fail to satisfy their contractual obligation.

CAPITAL RESOURCES AND REQUIREMENTS

Our Company and Bank are subject to regulatory capital adequacy requirements promulgated by federal bank regulatory agencies. Failure by our Company or Bank to meet minimum capital requirements could result in certain mandatory and discretionary actions by regulators that could have a material adverse effect on our results of operations or financial condition. The Federal Reserve establishes capital requirements for our Company and the OCC has similar requirements for our Bank. Under these capital requirements and the regulatory framework for prompt corrective action, our Company and Bank must meet specific capital guidelines that involve quantitative measures of our Company and Bank’s assets, liabilities and certain off-balance-sheet items as calculated under regulatory accounting practices. Our Company’s and Bank’s capital amounts and classifications are also subject to qualitative judgments by regulators about components, risk weightings and other factors.

Quantitative measures established by regulation require our Company and Bank to maintain certain minimum capital amounts and ratios. Federal bank regulators require our Company and Bank to maintain minimum ratios of tier 1 capital to adjusted average assets of 4.0%, common equity tier 1 capital to risk-weighted assets of 4.5%, tier 1 capital to risk-weighted assets of 6.0% and total risk-based capital to risk-weighted assets of 8.0%. To be “well capitalized,” our Company and Bank must maintain minimum leverage, common equity tier 1 risk-based, tier 1 risk-based and total risk-based capital ratios of at least 5.0%, 6.5%, 8.0% and 10.0%, respectively. At December 31, 2023, our Company and Bank met all the capital adequacy requirements to which they were subject and were “well capitalized” under the regulatory framework for prompt corrective action. Management believes that no conditions or events have occurred since December 31, 2023 that would materially adversely change the Company’s and Bank’s capital classifications. From time to time, we may need to raise additional capital to support our Company’s and Bank’s further growth and to maintain their “well capitalized” status.

The Company and Bank both elected the five-year current expected credit losses (“CECL”) transition guidance for calculating regulatory capital and ratios and the December 31, 2023 and June 30, 2023 amounts reflect this election. This guidance allowed an entity to add back to regulatory capital 100% of the impact of the day-one CECL transition adjustment and 25% of subsequent increases to the allowance for credit losses through June 30, 2022. In fiscal year 2024, this cumulative amount is phased out of regulatory capital at 50% and the cumulative amount will be 100% phased out of regulatory capital beginning in fiscal year 2026.

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The Company’s and Bank’s estimated capital amounts, capital ratios and capital requirements under Basel III were as follows:

	Axos Financial, Inc.						Axos Bank						“Well  Capitalized” Ratio	Minimum Capital Ratio
(Dollars in thousands)	December 31, 2023			June 30, 2023			December 31, 2023			June 30, 2023
Regulatory Capital:
Tier 1	$	1,951,838		$	1,796,352		$	2,049,461		$	1,866,705
Common equity tier 1	$	1,951,838		$	1,796,352		$	2,049,461		$	1,866,705
Total capital	$	2,454,167		$	2,269,237		$	2,214,559		$	2,007,006
Assets:
Average adjusted	$	20,792,068		$	20,059,002		$	20,046,527		$	19,284,378
Total risk-weighted	$	17,795,583		$	16,414,213		$	16,713,359		$	16,054,633
Regulatory Capital Ratios:
Tier 1 leverage (to adjusted average assets)	9.39		%	8.96		%	10.22		%	9.68		%	5.00%	4.00%
Common equity tier 1 capital (to risk-weighted assets)	10.97		%	10.94		%	12.26		%	11.63		%	6.50%	4.50%
Tier 1 capital (to risk-weighted assets)	10.97		%	10.94		%	12.26		%	11.63		%	8.00%	6.00%
Total capital (to risk-weighted assets)	13.79		%	13.82		%	13.25		%	12.50		%	10.00%	8.00%

Basel III requires all banking organizations to maintain a capital conservation buffer above the minimum risk-based capital requirements in order to avoid certain limitations on capital distributions, stock repurchases and discretionary bonus payments to executive officers. The capital conservation buffer is exclusively composed of common equity tier 1 capital, and it applies to each of the three risk-based capital ratios but not the leverage ratio. At December 31, 2023 and June 30, 2023, our Company and Bank were in compliance with the capital conservation buffer requirement, which sets the common equity tier 1 risk-based, tier 1 risk-based and total risk-based capital ratio minimums to 7.0%, 8.5% and 10.5%, respectively.

Securities Business

Pursuant to the net capital requirements of the Exchange Act, Axos Clearing, is subject to the SEC Uniform Net Capital (Rule 15c3-1 of the Exchange Act). Under this rule, the Company has elected to operate under the alternate method and is required to maintain minimum net capital of $250,000 or 2% of aggregate debit balances arising from client transactions, as defined. Under the alternate method, the Company may not repay subordinated debt, pay cash distributions, or make any unsecured advances or loans to its parent or employees if such payment would result in net capital of less than 5% of aggregate debit balances or less than 120% of its minimum dollar requirement.

The net capital positions of Axos Clearing were as follows:

(Dollars in thousands)	December 31, 2023			June 30, 2023
Net capital	$	103,454		$	35,221
Excess Capital	$	98,397		$	29,905
Net capital as a percentage of aggregate debit items	40.92		%	13.25		%
Net capital in excess of 5% aggregate debit items	$	90,812		$	21,930

Axos Clearing, as a clearing broker, is subject to SEC Customer Protection Rule (Rule 15c3-3 of the Exchange Act) which requires segregation of funds in a special reserve account for the benefit of customers. At December 31, 2023, the Company calculated a deposit requirement of $137.3 million and maintained a deposit of $172.9 million. On January 2, 2024, the Company made a withdrawal of $20.0 million.

Certain broker-dealers have chosen to maintain brokerage customer accounts at Axos Clearing. To allow these broker-dealers to classify their assets held by the Company as allowable assets in their computation of net capital, the Company computes a separate reserve requirement for Proprietary Accounts of Brokers (“PAB”). At December 31, 2023, the Company

50

calculated a deposit requirement of $7.8 million and maintained a deposit of $22.1 million. On January 2, 2024, the Company made a deposit of $1.0 million.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

For further discussion of the Company’s market risk, see Item 7A—“Quantitative and Qualitative Disclosures About Market Risk” in the 2023 Form 10-K.

We measure interest rate sensitivity as the difference between amounts of interest-earning assets and interest-bearing liabilities that mature or contractually re-price within a given period of time. The difference, or the interest rate sensitivity gap, provides an indication of the extent to which an institution’s interest rate spread will be affected by changes in interest rates. A gap is considered positive when the amount of interest rate sensitive assets exceeds the amount of interest rate sensitive liabilities and negative when the amount of interest rate sensitive liabilities exceeds the amount of interest rate sensitive assets. In a rising interest rate environment, an institution with a positive gap would be in a better position than an institution with a negative gap to invest in higher yielding assets or to have its asset yields adjusted upward, which would cause the yield on its assets to increase at a faster pace than the cost of its interest-bearing liabilities. During a period of falling interest rates, however, an institution with a positive gap would tend to have its assets reprice at a faster rate than one with a negative gap, which would tend to reduce the growth in its net interest income.

Banking Business

The following table sets forth the amounts of interest earning assets and interest bearing liabilities that were outstanding at December 31, 2023 and the portions of each financial instrument that are expected to mature or reset interest rates in each future period:

	Term to Repricing, Repayment, or Maturity at
	December 31, 2023
(Dollars in thousands)	Six Months or Less			Over Six Months Through One Year			Over One Year Through Five Years			Over Five Years			Total
Interest-earning assets:
Cash and cash equivalents	$	1,535,399		$	—		$	—		$	—		$	1,535,399
Available-for-sale securities1	205,515			3,532			13,781			16,984			239,812
Stock of the FHLB, at cost	17,250			—			—			—			17,250
Loans2	13,097,222			1,287,416			3,640,361			239,538			18,264,537
Loans held for sale	13,468			—			—			—			13,468
Total interest-earning assets	14,868,854			1,290,948			3,654,142			256,522			20,070,466
Non-interest earning assets	—			—			—			—			687,390
Total assets	$	14,868,854		$	1,290,948		$	3,654,142		$	256,522		$	20,757,856
Interest-bearing liabilities:
Interest-bearing deposits3	$	14,312,416		$	958,363		$	109,991		$	37		$	15,380,807
Advances from the FHLB	—			30,000			—			60,000			90,000
Total interest-bearing liabilities	14,312,416			988,363			109,991			60,037			15,470,807
Other non-interest-bearing liabilities	—			—			—			—			3,192,359
Stockholders’ equity	—			—			—			—			2,094,690
Total liabilities and equity	$	14,312,416		$	988,363		$	109,991		$	60,037		$	20,757,856
Net interest rate sensitivity gap	$	556,438		$	302,585		$	3,544,151		$	196,485		$	4,599,659
Cumulative gap	$	556,438		$	859,023		$	4,403,174		$	4,599,659		$	4,599,659
Net interest rate sensitivity gap—as a % of total interest earning assets	2.77		%	1.51		%	17.66		%	0.98		%	22.92		%
Cumulative gap—as % of total cumulative interest earning assets	2.77		%	4.28		%	21.94		%	22.92		%	22.92		%

1 Comprised primarily of non-agency and U.S. government agency mortgage-backed securities. The table reflects contractual repricing dates.

2 Loans includes loan premiums, discounts and unearned fees. The table reflects either contractual repricing dates or maturities.

3 The table assumes that the principal balances for demand deposits and savings accounts will reprice in the first year.

The above table provides an approximation of the projected re-pricing of assets and liabilities at December 31, 2023 on the basis of contractual maturities, adjusted for anticipated prepayments of principal and scheduled rate adjustments. The loan and securities prepayment rates reflected herein are based on historical experience. For the non-maturity deposit liabilities, we use decay rates and rate adjustments based upon our historical experience. Actual repayments of these instruments could vary substantially if future experience differs from our historic experience.

51

Although “gap” analysis is a useful measurement device available to management in determining the existence of interest rate exposure, its static focus as of a particular date makes it necessary to utilize other techniques in measuring exposure to changes in interest rates. For example, gap analysis is limited in its ability to predict trends in future earnings and makes no assumptions about changes in prepayment tendencies, deposit or loan maturity preferences or repricing time lags that may occur in response to a change in the interest rate environment.

The following table indicates the sensitivity of net interest income movements to parallel instantaneous shocks in interest rates for the future 1-12 months and 13-24 months’ time periods. For purposes of modeling net interest income sensitivity, we assume no growth in the balance sheet other than for retained earnings:

	As of December 31, 2023
	First 12 Months				Next 12 Months
(Dollars in thousands)	Net Interest Income		Percentage Change from Base		Net Interest Income		Percentage Change from Base
Up 200 basis points	$	1,074,457	10.3	%	$	1,126,975	6.5	%
Base	$	973,901	—	%	$	1,058,487	—	%
Down 200 basis points	$	894,052	(8.2)	%	$	1,017,392	(3.9)	%

We attempt to measure the effect market interest rate changes will have on the net present value of assets and liabilities, which is defined as market value of equity. We analyze the market value of equity sensitivity to an immediate parallel and sustained shift in interest rates derived from the underlying interest rate curves.

The following table indicates the sensitivity of market value of equity to the interest rate movement described above:

	As of December 31, 2023
(Dollars in thousands)	Net Present Value		Percentage Change from Base		Net Present Value as a Percentage of Assets
Up 200 basis points	$	2,093,506	(1.0)	%	10.2	%
Up 100 basis points	$	2,108,770	(0.3)	%	10.3	%
Base	$	2,114,101	—	%	10.2	%
Down 100 basis points	$	2,109,467	(0.2)	%	10.2	%
Down 200 basis points	$	2,096,831	(0.8)	%	10.0	%

The computation of the prospective effects of hypothetical interest rate changes is based on numerous assumptions, including relative levels of interest rates, asset prepayments, runoffs in deposits and changes in repricing levels of deposits to general market rates. The relative levels of interest rates used in the scenarios are based on the forward yield curve as of the balance sheet date and asset prepayment, deposit runoff and repricing assumptions utilize such relative interest rates. In addition, deposit repricing and runoff assumptions are generally based on historical behaviors over prior interest rate cycles. Results of these modeled outputs should not be relied upon as indicative of actual results. Furthermore, these computations do not take into account any actions that we may undertake in response to future changes in interest rates. Those actions include, but are not limited to, making changes in loan and deposit interest rates and changes in our asset and liability mix.

Securities Business

Our Securities Business is exposed to market risk primarily due to its role as a financial intermediary in customer, broker-dealer, and registered investment advisor transactions, which may include purchases and sales of securities, securities lending activities, and in our trading activities, which are used to support sales, underwriting and other customer activities. We are subject to the risk of loss that may result from the potential change in value of a financial instrument as a result of fluctuations in interest rates, market prices, investor expectations and changes in credit ratings of the issuer.

Our Securities Business is exposed to interest rate risk as a result of maintaining inventories of interest rate sensitive financial instruments and other interest earning assets, including customer and correspondent margin loans and securities borrowing activities. Our exposure to interest rate risk is also from our funding sources including customer and correspondent cash balances, bank borrowings and securities lending activities. Interest rates on customer and correspondent balances and securities produce a positive spread with rates generally fluctuating in parallel.

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With respect to securities held, our interest rate risk is managed by setting and monitoring limits on the size and duration of positions and on the length of time securities can be held. Many of the interest rates on customer and correspondent margin loans are indexed and can vary daily. Our funding sources are generally short term with interest rates that can vary daily.

Our Securities Business is engaged in various brokerage and trading activities that expose us to credit risk arising from potential non-performance from counterparties, customers or issuers of securities. This risk is managed by setting and monitoring position limits for each counterparty, conducting periodic credit reviews of counterparties, reviewing concentrations of securities and conducting business through central clearing organizations.

Collateral underlying margin loans to customers and correspondents and with respect to securities lending activities is marked to market daily and additional collateral is required as necessary.

ITEM 4.CONTROLS AND PROCEDURES

The Company’s management, with the participation of its Chief Executive Officer and Chief Financial Officer, conducted an evaluation of the effectiveness of the design and operation of the Company’s disclosure controls and procedures, pursuant to Exchange Act Rule 13a-15(e). Based upon that evaluation, our Chief Executive Officer along with our Chief Financial Officer concluded that, as of the end of the period covered by this report, the Company’s disclosure controls and procedures were effective to ensure that information required to be disclosed by the Company in reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported within the time periods specified by the Securities and Exchange Commission’s rules and forms, and that such information is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure. During the quarter ended December 31, 2023, the Company implemented a new enterprise resource planning (“ERP”) system to replace certain of its existing financial and operating systems. As a result of this implementation, certain internal controls over financial reporting have been automated, modified, or implemented to address the new control environment associated with this ERP system. Other than the implementation of this ERP system, there were no changes in the Company’s internal control over financial reporting during the quarter ended December 31, 2023 (as defined in Exchange Act Rule 13a-15(f)) that have materially affected, or are reasonably likely to materially affect, internal control over financial reporting.

Management, including the Company’s Chief Executive Officer and Chief Financial Officer, does not expect that the Company’s internal controls will prevent or detect all errors and all fraud. A control system, no matter how well designed and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met. Further, the design of a control system must reflect the fact that there are resource constraints, and the benefits of controls must be considered relative to their costs. Because of the inherent limitations in all control systems, no evaluation of internal controls can provide absolute assurance that all control issues and instances of fraud, if any, have been detected. Also, any evaluation of the effectiveness of controls in future periods are subject to the risk that those internal controls may become inadequate because of changes in business conditions, or that the degree of compliance with the policies or procedures may deteriorate.

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PART II—OTHER INFORMATION

ITEM 1.LEGAL PROCEEDINGS

The information set forth in Note 9—“Commitments And Contingencies” to the Consolidated Financial Statements is incorporated herein by reference.

In addition, from time to time we may be a party to other claims or litigation that arise in the ordinary course of business, such as claims to enforce liens, claims involving the origination and servicing of loans, and other issues related to the Company’s business operations. None of such matters are expected to have a material adverse effect on the Company’s financial condition, results of operations or business.

ITEM 1A.RISK FACTORS

We face a variety of risks that are inherent in our business and our industry. These risks are described in more detail under Item 1A. “Risk Factors” in our 2023 Form 10-K. We encourage you to read these factors in their entirety. Moreover, other factors may also exist that we cannot anticipate or that we currently do not consider to be significant based on information that is currently available.

ITEM 2.UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

The table below sets forth our market repurchases of Axos common stock and the Axos common stock retained in connection with net settlement of restricted stock awards during the quarter ended December 31, 2023.

(Dollars in thousands, except per share data)	Number of Shares Purchased	Average Price Paid Per Shares		Total Number of Shares Purchased as Part of Publicly  Announced Plans or Programs	Approximate Dollar value of Shares that May Yet be Purchased Under the Plans or Programs
Stock Repurchases1
Quarter Ended December 31, 2023
October 1, 2023 to October 31, 2023	1,377,080	$	36.56	1,377,080	$	28,785,217
November 1, 2023 to November 30, 2023	230,221	36.09		230,221	20,475,752
December 1, 2023 to December 31, 2023	—	—		—	—
For the Three Months Ended December 31, 2023	1,607,301	$	36.49	1,607,301	$	20,475,752
Stock Retained in Net Settlement2
October 1, 2023 to October 31, 2023	73
November 1, 2023 to November 30, 2023	609
December 1, 2023 to December 31, 2023	62
For the Three Months Ended December 31, 2023	744

1 On April 27, 2023, the Company announced a program to repurchase up to $100 million of its common stock. The share repurchase program will continue in effect until terminated by the Board of Directors of the Company.

2 The Amended and Restated 2014 Stock Incentive Plan permits net settlement of stock issuances related to equity awards for purposes of payment of a grantee’s minimum income tax obligation. Stock Retained in Net Settlement was purchased at the vesting price of the associated restricted stock unit.

ITEM 3.    DEFAULTS UPON SENIOR SECURITIES

None.

ITEM 4.    MINE SAFETY DISCLOSURES

Not applicable.

ITEM 5.    OTHER INFORMATION

    None.

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ITEM 6.EXHIBITS

Exhibit Number	Description	Incorporated By Reference to
31.1	Chief Executive Officer Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002	Filed herewith.
31.2	Chief Financial Officer Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002	Filed herewith.
32.1	Chief Executive Officer Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002	Filed herewith.
32.2	Chief Financial Officer Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002	Filed herewith.
101.INS	Inline XBRL Instance Document	The instance document does not appear in the interactive data file because its XBRL tags are embedded within the inline XBRL document.
101.SCH	Inline XBRL Taxonomy Extension Schema Document	Filed herewith.
101.CAL	Inline XBRL Taxonomy Calculation Linkbase Document	Filed herewith.
101.LAB	Inline XBRL Taxonomy Label Linkbase Document	Filed herewith.
101.PRE	Inline XBRL Taxonomy Presentation Linkbase Document	Filed herewith.
101.DEF	Inline XBRL Taxonomy Definition Document	Filed herewith.
104	Cover Page Interactive Data File	Formatted as Inline XBRL and contained in Exhibit 101

55

SIGNATURES

In accordance with the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

			Axos Financial, Inc.
Dated:	January 30, 2024	By:	/s/ Gregory Garrabrants
			Gregory Garrabrants President and Chief Executive Officer (Principal Executive Officer)
Dated:	January 30, 2024	By:	/s/ Derrick K. Walsh
			Derrick K. Walsh Executive Vice President and Chief Financial Officer (Principal Financial Officer)

56

EX-31.1

Exhibit 31.1

CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER

PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Gregory Garrabrants, certify that:

1.I have reviewed this quarterly report on Form 10-Q of Axos Financial, Inc.;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d -15(f)) for the registrant and have:

a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c.Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d.Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.     The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions):

a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal controls over financial reporting.

Dated:	January 30, 2024	/s/ GREGORY GARRABRANTS
		GREGORY GARRABRANTS President and Chief Executive Officer (Principal Executive Officer)

EX-31.2

Exhibit 31.2

CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER

PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Derrick K. Walsh, certify that:

1.I have reviewed this quarterly report on Form 10-Q of Axos Financial, Inc.;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d -15(f)) for the registrant and have:

a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c.Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d.Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.     The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions):

a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal controls over financial reporting.

Dated:	January 30, 2024	/s/ DERRICK K. WALSH
		DERRICK K. WALSH Executive Vice President and Chief Financial Officer (Principal Financial Officer)

EX-32.1

Exhibit 32.1

CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER

PURSUANT TO 18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Axos Financial, Inc. (the “Company”) on Form 10-Q for the period ended December 31, 2023 (the “Report”), as filed with the Securities and Exchange Commission on the date hereof, I, Gregory Garrabrants, hereby certify in my capacity as President and Chief Executive Officer of the Company, pursuant to 18 U.S.C. section 1350, as adopted pursuant to section 906 of the Sarbanes-Oxley Act of 2002, that:

a)the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

b)the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company as of the dates and for the periods presented in the financial statements included in such Report.

Dated:	January 30, 2024	/s/ GREGORY GARRABRANTS
		GREGORY GARRABRANTS President and Chief Executive Officer (Principal Executive Officer)

EX-32.2

Exhibit 32.2

CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER

PURSUANT TO 18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Axos Financial, Inc. (the “Company”) on Form 10-Q for the period ended December 31, 2023 (the “Report”), as filed with the Securities and Exchange Commission on the date hereof, I, Derrick K. Walsh, hereby certify in my capacity as Executive Vice President and Chief Financial Officer of the Company, pursuant to 18 U.S.C. section 1350, as adopted pursuant to section 906 of the Sarbanes-Oxley Act of 2002 that:

a)the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

b)the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company as of the dates and for the periods presented in the financial statements included in such Report.

Dated:	January 30, 2024	/s/ DERRICK K. WALSH
		DERRICK K. WALSH Executive Vice President and Chief Financial Officer (Principal Financial Officer)

XML

Cover Page - shares	6 Months Ended
	Dec. 31, 2023	Jan. 23, 2024
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Dec. 31, 2023
Document Transition Report	false
Entity File Number	001-37709
Entity Registrant Name	AXOS FINANCIAL, INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	33-0867444
Entity Address, Address Line One	9205 West Russell Road, Suite 400
Entity Address, City or Town	Las Vegas
Entity Address, State or Province	NV
Entity Address, Postal Zip Code	89148
City Area Code	858
Local Phone Number	649-2218
Title of 12(b) Security	Common stock, $0.01 par value
Trading Symbol	AX
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		56,898,609
Entity Central Index Key	0001299709
Current Fiscal Year End Date	--06-30
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q2
Amendment Flag	false

XML

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 31, 2023	Jun. 30, 2023
ASSETS
Cash and cash equivalents	$ 1,568,768	$ 2,233,027
Cash segregated for regulatory purposes	194,955	149,059
Total cash, cash equivalents and cash segregated	1,763,723	2,382,086
Trading securities	329	758
Available-for-sale securities	239,812	232,350
Stock of regulatory agencies	21,534	21,510
Loans held for sale, carried at fair value	13,468	23,203
Loans held for sale, lower of cost or fair value	0	776
Loans—net of allowance for credit losses of $251,749 as of December 31, 2023 and $166,680 as of June 30, 2023	18,264,354	16,456,728
Servicing rights, carried at fair value	28,043	25,443
Securities borrowed	145,176	134,339
Customer, broker-dealer and clearing receivables	265,857	374,074
Goodwill and other intangible assets—net	146,793	152,149
Other assets	734,675	545,053
TOTAL ASSETS	21,623,764	20,348,469
Deposits:
Non-interest bearing	2,833,657	2,898,150
Interest bearing	15,370,255	14,224,958
Total deposits	18,203,912	17,123,108
Advances from the Federal Home Loan Bank	90,000	90,000
Borrowings, subordinated notes and debentures	341,086	361,779
Securities loaned	155,492	159,832
Customer, broker-dealer and clearing payables	368,885	445,477
Accounts payable and other liabilities	386,165	251,114
Total liabilities	19,545,540	18,431,310
COMMITMENTS AND CONTINGENCIES (Note 9)
STOCKHOLDERS’ EQUITY:
Common stock—$0.01 par value; 150,000,000 shares authorized; 69,828,709 shares issued and 56,898,377 shares outstanding as of December 31, 2023; 69,465,446 shares issued and 58,943,035 shares outstanding as of June 30, 2023	698	695
Additional paid-in capital	493,268	479,878
Accumulated other comprehensive income (loss)—net of income tax	(3,919)	(6,610)
Retained earnings	1,970,025	1,735,609
Treasury stock, at cost; 12,930,332 shares as of December 31, 2023 and 10,522,411 shares as of June 30, 2023	(381,848)	(292,413)
Total stockholders’ equity	2,078,224	1,917,159
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$ 21,623,764	$ 20,348,469

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CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2023	Jun. 30, 2023
ASSETS
Allowance for loan and lease losses	$ 251,749	$ 166,680
STOCKHOLDERS’ EQUITY:
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	150,000,000	150,000,000
Common stock, issued (in shares)	69,828,709	69,465,446
Common stock, shares outstanding (in shares)	56,898,377	58,943,035
Treasury stock, at cost (in shares)	12,930,332	10,522,411

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CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2023	Dec. 31, 2022
INTEREST AND DIVIDEND INCOME:
Loans, including fees	$ 357,852	$ 255,661	$ 684,826	$ 463,999
Securities borrowed and customer receivables	5,467	4,321	10,462	8,705
Investments and other	31,344	19,606	63,327	30,670
Total interest and dividend income	394,663	279,588	758,615	503,374
INTEREST EXPENSE:
Deposits	160,181	71,348	306,291	103,853
Advances from the Federal Home Loan Bank	530	2,504	1,059	7,667
Securities loaned	1,010	1,067	1,459	2,010
Other borrowings	4,336	4,759	10,045	9,459
Total interest expense	166,057	79,678	318,854	122,989
Net interest income	228,606	199,910	439,761	380,385
Total provision for credit losses	13,500	3,001	20,500	11,751
Net interest income, after provision for credit losses	215,106	196,909	419,261	368,634
NON-INTEREST INCOME:
Broker-dealer fee income	12,519	9,812	24,996	18,990
Advisory fee income	7,362	6,983	15,581	13,942
Banking and service fees	10,061	10,143	18,411	16,657
Mortgage banking and servicing rights income	753	641	4,631	4,006
Prepayment penalty fee income	1,037	750	2,620	1,942
Gain on acquisition	92,397	0	92,397	0
Total non-interest income	124,129	28,329	158,636	55,537
NON-INTEREST EXPENSE:
Salaries and related costs	58,883	49,720	114,694	96,716
Data and operational processing	18,326	14,632	34,410	28,654
Depreciation and amortization	6,488	5,957	12,366	12,051
Advertising and promotional	9,794	10,899	20,169	17,269
Professional services	5,976	8,455	15,787	16,542
Occupancy and equipment	4,001	3,683	7,847	7,737
FDIC and regulatory fees	3,935	3,569	8,384	7,304
Broker-dealer clearing charges	5,948	3,739	9,960	6,568
General and administrative expense	8,488	7,373	18,728	31,273
Total non-interest expense	121,839	108,027	242,345	224,114
INCOME BEFORE INCOME TAXES	217,396	117,211	335,552	200,057
INCOME TAXES	65,625	35,659	101,136	60,098
NET INCOME	151,771	81,552	234,416	139,959
COMPREHENSIVE INCOME	$ 154,240	$ 80,377	$ 237,107	$ 135,947
Basic earnings per common share (in dollars per share)	$ 2.65	$ 1.36	$ 4.04	$ 2.34
Diluted earnings per common share (in dollars per share)	$ 2.62	$ 1.35	$ 3.98	$ 2.31

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CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2023	Dec. 31, 2022
Statement of Comprehensive Income [Abstract]
NET INCOME	$ 151,771	$ 81,552	$ 234,416	$ 139,959
Net unrealized gain (loss) from available-for-sale securities, net of income tax expense (benefit) of $1,058 and $(503) for the three months ended and $1,170 and $(1,718) for the six months ended December 31, 2023 and 2022, respectively.	2,469	(1,175)	2,691	(4,012)
Other comprehensive income (loss)	2,469	(1,175)	2,691	(4,012)
COMPREHENSIVE INCOME	$ 154,240	$ 80,377	$ 237,107	$ 135,947

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CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2023	Dec. 31, 2022
Statement of Comprehensive Income [Abstract]
Net unrealized gain (loss) from available-for-sale securities, tax expense (benefit)	$ 1,058	$ (503)	$ 1,170	$ (1,718)

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CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands	Total	Common Stock	Treasury Stock	Additional Paid-in Capital	Accumulated Other Comprehensive Income (Loss), Net of Income Tax	Retained Earnings
Common stock, issued and treasury, beginning balance (in shares) at Jun. 30, 2022		68,859,722
Common stock, treasury, beginning balance (in shares) at Jun. 30, 2022			(9,081,773)
Common stock, outstanding, beginning balance (in shares) at Jun. 30, 2022		59,777,949
Stockholder's equity, beginning balance at Jun. 30, 2022	$ 1,642,973	$ 689	$ (237,011)	$ 453,784	$ (2,933)	$ 1,428,444
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	139,959					139,959
Other comprehensive income (loss)	(4,012)				(4,012)
Stock-based compensation activity, issued (in shares)		293,869
Stock-based compensation activity, treasury stock (in shares)			(71,739)
Stock-based compensation activity, outstanding (in shares)		222,130
Stock-based compensation activity	8,639	$ 3	$ (2,930)	11,566
Common stock, issued and treasury, ending balance (in shares) at Dec. 31, 2022		69,153,591
Common stock, treasury, ending balance (in shares) at Dec. 31, 2022			(9,153,512)
Common stock, outstanding, ending balance (in shares) at Dec. 31, 2022		60,000,079
Stockholder's equity, ending balance at Dec. 31, 2022	1,787,559	$ 692	$ (239,941)	465,350	(6,945)	1,568,403
Common stock, issued and treasury, beginning balance (in shares) at Sep. 30, 2022		69,151,152
Common stock, treasury, beginning balance (in shares) at Sep. 30, 2022			(9,152,479)
Common stock, outstanding, beginning balance (in shares) at Sep. 30, 2022		59,998,673
Stockholder's equity, beginning balance at Sep. 30, 2022	1,700,972	$ 692	$ (239,902)	459,101	(5,770)	1,486,851
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	81,552					81,552
Other comprehensive income (loss)	(1,175)				(1,175)
Stock-based compensation activity, issued (in shares)		2,439
Stock-based compensation activity, treasury stock (in shares)			(1,033)
Stock-based compensation activity, outstanding (in shares)		1,406
Stock-based compensation activity	6,210		$ (39)	6,249
Common stock, issued and treasury, ending balance (in shares) at Dec. 31, 2022		69,153,591
Common stock, treasury, ending balance (in shares) at Dec. 31, 2022			(9,153,512)
Common stock, outstanding, ending balance (in shares) at Dec. 31, 2022		60,000,079
Stockholder's equity, ending balance at Dec. 31, 2022	$ 1,787,559	$ 692	$ (239,941)	465,350	(6,945)	1,568,403
Common stock, issued and treasury, beginning balance (in shares) at Jun. 30, 2023	69,465,446	69,465,446
Common stock, treasury, beginning balance (in shares) at Jun. 30, 2023	(10,522,411)		(10,522,411)
Common stock, outstanding, beginning balance (in shares) at Jun. 30, 2023	58,943,035	58,943,035
Stockholder's equity, beginning balance at Jun. 30, 2023	$ 1,917,159	$ 695	$ (292,413)	479,878	(6,610)	1,735,609
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	234,416					234,416
Other comprehensive income (loss)	2,691				2,691
Purchase of treasury stock (in shares)		(2,255,509)	(2,255,509)
Purchase of treasury stock	(83,186)		$ (83,186)
Stock-based compensation activity, issued (in shares)		363,263
Stock-based compensation activity, treasury stock (in shares)			(152,412)
Stock-based compensation activity, outstanding (in shares)		210,851
Stock-based compensation activity	$ 7,144	$ 3	$ (6,249)	13,390
Common stock, issued and treasury, ending balance (in shares) at Dec. 31, 2023	69,828,709	69,828,709
Common stock, treasury, ending balance (in shares) at Dec. 31, 2023	(12,930,332)		(12,930,332)
Common stock, outstanding, ending balance (in shares) at Dec. 31, 2023	56,898,377	56,898,377
Stockholder's equity, ending balance at Dec. 31, 2023	$ 2,078,224	$ 698	$ (381,848)	493,268	(3,919)	1,970,025
Common stock, issued and treasury, beginning balance (in shares) at Sep. 30, 2023		69,826,263
Common stock, treasury, beginning balance (in shares) at Sep. 30, 2023			(11,322,287)
Common stock, outstanding, beginning balance (in shares) at Sep. 30, 2023		58,503,976
Stockholder's equity, beginning balance at Sep. 30, 2023	1,976,208	$ 698	$ (323,032)	486,676	(6,388)	1,818,254
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	151,771					151,771
Other comprehensive income (loss)	2,469				2,469
Purchase of treasury stock (in shares)		(1,607,301)	(1,607,301)
Purchase of treasury stock	(58,650)		$ (58,650)
Stock-based compensation activity, issued (in shares)		2,446
Stock-based compensation activity, treasury stock (in shares)			(744)
Stock-based compensation activity, outstanding (in shares)		1,702
Stock-based compensation activity	$ 6,426		$ (166)	6,592
Common stock, issued and treasury, ending balance (in shares) at Dec. 31, 2023	69,828,709	69,828,709
Common stock, treasury, ending balance (in shares) at Dec. 31, 2023	(12,930,332)		(12,930,332)
Common stock, outstanding, ending balance (in shares) at Dec. 31, 2023	56,898,377	56,898,377
Stockholder's equity, ending balance at Dec. 31, 2023	$ 2,078,224	$ 698	$ (381,848)	$ 493,268	$ (3,919)	$ 1,970,025

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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 234,416	$ 139,959
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization	12,365	12,051
Other accretion and amortization	(12,006)	529
Stock-based compensation expense	13,393	11,569
Trading activity	429	1,386
Provision (benefit) for credit losses - loans	20,500	11,751
Deferred income taxes	21,032	7,592
Origination of loans held for sale	(96,910)	(113,300)
Unrealized and realized gains on loans held for sale	(3,854)	(4,115)
Proceeds from sale of loans held for sale	107,846	117,252
Changes in servicing rights	(1,955)	93
Gain on FDIC Loan Purchase	(92,397)	0
Net change in assets and liabilities which provide (use) cash:
Securities borrowed	(10,837)	280,134
Customer, broker-dealer and clearing receivables	108,217	144,838
Other Assets	(72,132)	(19,062)
Securities loaned	(4,340)	(318,392)
Customer, broker-dealer and clearing payables	(76,592)	(90,707)
Accounts payable and other liabilities	(81)	(4,502)
Net cash provided by operating activities	147,094	177,076
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of available-for-sale securities	(9,612)	0
Proceeds from sale and repayment of available-for-sale securities	5,952	9,111
Purchase of stock of regulatory agencies	0	(74,972)
Proceeds from redemption of stock of regulatory agencies	0	74,972
Origination of loans held for investment	(5,299,304)	(4,499,800)
Proceeds from sale of loans originally classified as held for investment	0	13,965
Mortgage warehouse loan activity, net	150,941	136,545
Proceeds from sale of other real estate owned and repossessed assets	3,420	1,229
Acquisition of business activity, net of cash acquired	0	(5,531)
Purchase of loans and leases, net of discounts and premiums	(841,408)	(127)
Principal repayments on loans	4,270,813	2,947,186
Purchases of furniture, equipment, software and intangibles	(17,031)	(13,982)
Net cash used in investing activities	(1,736,229)	(1,411,404)
CASH FLOWS FROM FINANCING ACTIVITIES:
Net increase in deposits	1,080,804	1,744,072
Repayments of the Federal Home Loan Bank term advances	0	(17,500)
Net (repayment) proceeds of other borrowings	(21,200)	(111,500)
Tax payments related to settlement of restricted stock units	(6,249)	(2,930)
Purchase of treasury stock	(82,583)	0
Net cash provided by financing activities	970,772	1,612,142
NET CHANGE IN CASH AND CASH EQUIVALENTS	(618,363)	377,814
CASH AND CASH EQUIVALENTS—Beginning of year	2,382,086	1,574,699
CASH AND CASH EQUIVALENTS—End of period	1,763,723	1,952,513
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Interest paid on interest-bearing liabilities	323,042	121,878
Income taxes paid	84,436	73,129
Transfers to other real estate and repossessed vehicles from loans held for investment	3,301	7,228
Transfers from loans held for sale to loans and leases held for investment	2,783	690
Operating lease liabilities from obtaining right of use assets	$ 5,767	$ 0

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

6 Months Ended

Dec. 31, 2023

Accounting Policies [Abstract]

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation

The condensed consolidated financial statements include the accounts of Axos Financial, Inc. (“Axos”) and its wholly owned subsidiaries, Axos Bank (the “Bank”) and Axos Nevada Holding, LLC (“Axos Nevada Holding” and collectively, the “Company”). Axos, the Bank and Axos Nevada Holding comprise substantially all of the Company’s assets and liabilities and revenues and expenses. The Bank, its wholly owned subsidiaries, and the activities of two lending-related trust entities, constitute the Banking Business segment and Axos Nevada Holding and its wholly owned subsidiaries constitute the Securities Business segment. All significant intercompany balances and transactions have been eliminated in consolidation. The Notes to the Consolidated Financial Statements are an integral part of the Company’s financial statements.

The accompanying interim condensed consolidated financial statements, presented in accordance with accounting principles generally accepted in the United States of America (“GAAP”), are unaudited and reflect all adjustments which, in the opinion of management, are necessary for a fair statement of financial condition and results of operations for the interim periods. All adjustments are of a normal and recurring nature. Certain amounts reported in prior periods have been reclassified to conform with the current presentation. Results for the three and six months ended December 31, 2023 are not necessarily indicative of results that may be expected for any other interim period or for the year as a whole. Certain information and note disclosures normally included in the audited annual financial statements prepared in accordance with GAAP have been condensed or not repeated herein pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) with respect to interim financial reporting. The accompanying unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and accompanying notes for the year ended June 30, 2023 included in our Annual Report on Form 10-K for the fiscal year ended June 30, 2023 (“2023 Form 10-K”) filed with the SEC.

Significant Accounting Policies

For further information regarding the Company’s significant accounting policies see Note 1—“Organizations and Summary of Significant Accounting Policies” in the 2023 Form 10-K. During the three and six months ended December 31, 2023 there were no significant updates to the Company’s significant accounting policies, other than as noted below and the adoption of the accounting standards noted herein.

Purchased Credit Deteriorated (“PCD”) Loans. Purchased loans that reflect a more-than-insignificant deterioration of credit since their origination are considered PCD. For PCD loans, the initial estimate of expected credit losses is recognized in the allowance for credit losses on the date of acquisition. The initial amortized cost of PCD loans is determined by reducing the loans’ par value by the acquisition date estimate of expected credit losses with any difference between the resulting amount and the loans’ purchase price recorded as a non-credit-related discount. Subsequent changes in the initial estimate of expected credit losses are recognized in the provision for credit losses in the Company's Consolidated Statements of Income.

New Accounting Standards

Recently Adopted Accounting Standards

The Financial Accounting Standards Board (“FASB”) issued three Accounting Standards Updates (“ASUs”) (2020-04, 2021-04 and 2022-06) all of which provide guidance to alleviate the burden in accounting for reference rate reform by allowing certain expedients and exceptions in applying generally accepted accounting principles to contracts, hedging relationships, and other transactions impacted by reference rate reform. The provisions apply only to those transactions that reference London Interbank Offered Rate (“LIBOR”) or another reference rate expected to be discontinued due to reference rate reform. Adoption of the provisions are optional and are effective from March 12, 2020 through December 31, 2024. The Company adopted these ASUs on July 1, 2023, and there was no impact on its financial condition or results of operations upon adoption.

In March 2022, the FASB issued ASU 2022-02 which eliminates the accounting guidance for troubled debt restructurings by creditors that have adopted the current expected credit losses (“CECL”) model and enhance the disclosure requirements for loan refinancings and restructurings made with borrowers experiencing financial difficulty. In addition, the amendments require a public business entity to disclose current-period gross write-offs for financing receivables and net investment in leases by year of origination in the vintage disclosures. The Company adopted this ASU on a prospective basis on July 1, 2023, and there was no impact on its financial condition or results of operations upon adoption. See Note 5—“Loans & Allowance for Credit Losses” for the new disclosures as a result of the adoption of this accounting guidance.

Accounting Standards Issued But Not Yet Adopted

In November 2023, the FASB issued ASU 2023-07 which requires disclosure of significant business segment expenses and a description of the composition of other segment expenses by business segment. The ASU also requires disclosure of the title and position of the chief operating decision maker and an explanation of how the chief operating decision maker uses the reported measures of segment profit or loss in assessing segment performance and deciding how to allocate resources. This standard is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. The Company does not expect any impact on its financial condition or results of operations upon adoption.

In December 2023, the FASB issued ASU 2023-09 which requires further granularity on the disclosure of income taxes, including:

•Certain prescribed line items in the income tax rate reconciliation presented both in dollar and percentage terms;

•Income taxes paid, income before income taxes and income taxes disaggregated by federal, state and foreign taxes; and

•Further disaggregation of income taxes paid by any individual jurisdiction equal to or exceeding five percent of total income taxes paid.

This standard is effective for fiscal years beginning after December 15, 2024. The Company does not expect any impact on its financial condition or results of operations upon adoption.

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ACQUISITIONS

6 Months Ended

Dec. 31, 2023

Business Combination and Asset Acquisition [Abstract]

ACQUISITIONS

ACQUISITIONS

On August 23, 2023, the Company acquired approximately $52 million of marine floor financing loans at par value along with other assets for an additional $2 million, primarily consisting of servicing rights as well as certain employees. The transaction was accounted for as an asset acquisition and such assets are included in the Company’s unaudited Condensed Consolidated Balance Sheets as of December 31, 2023.

On December 7, 2023, the Company acquired from the Federal Deposit Insurance Corporation (“FDIC”) two loan portfolios, comprising both PCD and non-PCD loans, with an aggregate unpaid principal balance of $1.3 billion at a fair value of $901.5 million, reflecting a non-credit-related discount of $306.8 million and an allowance for credit losses on PCD loans of $70.1 million, (the “FDIC Loan Purchase”). Also included in the acquisition were certain related interest rate derivative assets and liabilities with a fair value of $109.0 million and $104.4 million, respectively, as of the date of the acquisition and whose maturities generally align with those of the loans acquired. The acquisition of the non-PCD loans and interest rate derivatives was accounted for as a purchase of financial assets and liabilities, and the Company recognized a $92.4 million gain on the transaction included in “Gain on acquisition” in the Unaudited Condensed Consolidated Statement of Income.

For additional information on PCD loans, see Note 1—“Summary of Significant Accounting Policies,” and for additional information on the Company’s loans and derivative instruments, see Note 5—“Loans & Allowance Credit Losses” and Note 6—“Derivatives,” respectively.

The following table summarizes the PCD loans acquired in the FDIC Loan Purchase:

(Dollars in thousands)	Total
Unpaid principal balance	$	341,301
Non-credit discount	(100,686)
Allowance for credit losses at acquisition	(70,097)
Purchase price	$	170,518

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FAIR VALUE

6 Months Ended

Dec. 31, 2023

Fair Value Disclosures [Abstract]

FAIR VALUE

FAIR VALUE

The following tables sets forth the Company’s financial assets and liabilities measured at fair value on a recurring basis at December 31, 2023 and June 30, 2023. Assets and liabilities are classified in their entirety based on the lowest level of input significant to the fair value measurement:

	December 31, 2023
(Dollars in thousands)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
ASSETS:
Trading securities		$	329	$	—	$	329
Available-for-sale securities:
Agency MBS1		28,664		—		28,664
Non-Agency MBS2		—		207,708		207,708
Municipal		3,440		—		3,440
Total—Available-for-sale securities:		$	32,104	$	207,708	$	239,812
Loans held for sale		$	13,468			$	13,468
Servicing rights		$	—	$	28,043	$	28,043
Other assets—Derivative instruments		$	96,084	$	—	$	96,084
LIABILITIES:
Accounts payable and other liabilities—Derivative instruments		$	92,144	$	—	$	92,144
	June 30, 2023
(Dollars in thousands)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
ASSETS:
Trading securities		$	758	$	—	$	758
Available-for-sale securities:
Agency MBS1		23,947		—		23,947
Non-Agency MBS2		—		205,005		205,005
Municipal		3,398		—		3,398
Total—Available-for-sale securities:		$	27,345	$	205,005	$	232,350
Loans held for sale		$	23,203	$	—	$	23,203
Servicing rights		$	—	$	25,443	$	25,443
Other assets—Derivative instruments		$	919	$	—	$	919
LIABILITIES:
Accounts payable and other liabilities—Derivative instruments		$	691	$	—	$	691

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 adjustable rate mortgages (“ARMs”).

The following tables present additional information about assets measured at fair value on a recurring basis and for which the Company has utilized Level 3 inputs to determine fair value:

	For the Three Months Ended
	December 31, 2023
(Dollars in thousands)	Available-for-Sale Securities: Non-Agency MBS		Servicing Rights1		Total
Opening balance	$	206,076	$	29,338	$	235,414
Total gains or losses for the period:
Included in earnings—Mortgage banking and servicing rights income	—		(1,494)		(1,494)
Included in other comprehensive income	1,876		—		1,876
Purchases, retentions, issues, sales and settlements:
Purchases/Retentions	—		199		199
Settlements	(244)		—		(244)
Closing balance	$	207,708	$	28,043	$	235,751
Change in unrealized gains or losses for the period included in earnings for assets held at the end of the reporting period	$	—	$	(1,494)	$	(1,494)
	For the Six Months Ended
	December 31, 2023
(Dollars in thousands)	Available-for-Sale Securities: Non-Agency MBS		Servicing Rights1		Total
Opening Balance	$	205,005	$	25,443	$	230,448
Total gains or losses for the period:
Included in earnings—Mortgage banking and servicing rights income	—		365		365
Included in other comprehensive income	3,191		—		3,191
Purchases, retentions, issues, sales and settlements:
Purchases/Retentions	—		2,235		2,235
Settlements	(488)		—		(488)
Closing balance	$	207,708	$	28,043	$	235,751
Change in unrealized gains or losses for the period included in earnings for assets held at the end of the reporting period	$	—	$	365	$	365

1 Earnings from servicing rights were attributable to: time and payoffs, representing a decrease in servicing rights value due to passage of time, including the impact from both regularly scheduled loan principal payments and loans that were paid down or paid off during the period of $0.3 million and $0.5 million for the three and six months ended December 31, 2023 and a decrease in servicing rights value resulting from market-driven changes in interest rates of $1.2 million three months ended December 31, 2023 and an increase of $0.9 million for the six months ended December 31, 2023. Additions to servicing rights were related to purchases and servicing rights retained upon sale of loans held for sale.

	For the Three Months Ended
	December 31, 2022
(Dollars in thousands)	Available-for-Sale Securities: Non-Agency MBS		Servicing Rights1		Derivative Instruments, net		Total
Opening balance	$	184,012	$	26,373	$	535	$	210,920
Total gains or losses for the period:
Included in earnings—Mortgage banking and servicing rights income	—		(1,046)		(517)		(1,563)
Included in other comprehensive income	(2,143)		—		—		(2,143)
Purchases, retentions, issues, sales and settlements:
Purchases/Retentions	—		199		—		199
Settlements	(6,746)		—		—		(6,746)
Closing balance	$	175,123	$	25,526	$	18	$	200,667
Change in unrealized gains or losses for the period included in earnings for assets held at the end of the reporting period	$	—	$	(1,046)	$	(517)	$	(1,563)
	For the Six Months Ended
	December 31, 2022
(Dollars in thousands)	Available-for-Sale Securities: Non-Agency MBS		Servicing Rights1		Derivative Instruments, net		Total
Opening Balance	$	186,814	$	25,213	$	464	$	212,491
Total gains or losses for the period:
Included in earnings—Mortgage banking and servicing rights income	—		(93)		(446)		(539)
Included in other comprehensive income	(4,616)		—		—		(4,616)
Purchases, retentions, issues, sales and settlements:
Purchases/Retentions	—		406		—		406
Settlements	(7,075)		—		—		(7,075)
Closing balance	$	175,123	$	25,526	$	18	$	200,667
Change in unrealized gains or losses for the period included in earnings for assets held at the end of the reporting period	$	—	$	(93)	$	(446)	$	(539)

1 Earnings from servicing rights were attributable to: time and payoffs, representing a decrease in servicing rights value due to passage of time, including the impact from both regularly scheduled loan principal payments and loans that were paid down or paid off during the period of $0.1 million and $0.5 million for the three and six months ended December 31, 2022 and an decrease in servicing rights value resulting from market-driven changes in interest rates of $0.9 million for the three months ended December 31, 2022 and an increase of $0.4 million for the six months ended December 31, 2022. Additions to servicing rights were retained upon sale of loans held for sale.

The table below summarizes the quantitative information about Level 3 fair value measurements:

	December 31, 2023
(Dollars in thousands)	Fair Value		Valuation Technique	Unobservable Input	Range (Weighted Average)1
Securities – Non-agency MBS	$	207,708	Discounted Cash Flow	Projected Constant Prepayment Rate, Projected Constant Default Rate, Projected Loss Severity, Discount Rate over SOFR Swaps	0.0 to 59.2% (34.0%) 0.0 to 31.4% (2.5%) 0.0 to 68.7% (28.5%) 2.6 to 6.5% (2.6%)
Servicing Rights	$	28,043	Discounted Cash Flow	Projected Constant Prepayment Rate, Life (in years), Discount Rate	5.2 to 38.1% (12.2%) 1.6 to 15.2 (7.6) 9.5 to 11.5% (9.8%)

	June 30, 2023
(Dollars in thousands)	Fair Value		Valuation Technique	Unobservable Input	Range (Weighted Average)1
Securities – Non-agency MBS	$	205,005	Discounted Cash Flow	Projected Constant Prepayment Rate, Projected Constant Default Rate, Projected Loss Severity, Discount Rate over LIBOR	0.0 to 59.7% (32.0%) 0.0 to 7.5% (2.4%) 0.0 to 68.7% (28.5%) 2.6 to 7.5% (2.7%)
Servicing Rights	$	25,443	Discounted Cash Flow	Projected Constant Prepayment Rate, Life (in years), Discount Rate	6.1% to 40.1% (12.6%) 1.8 to 10.9 (7.7) 9.5 to 11.5% (9.6%)

1 The weighted average for Securities - Non-agency MBS is based on the relative fair value of the securities and for Servicing Rights is based on the relative unpaid principal of the loans being serviced.

For non-agency mortgage-backed securities, significant increases (decreases) in any of those inputs in isolation would result in a significantly lower (higher) fair value measurement. Generally, a change in the assumption used for the probability of default is accompanied by a directionally similar change in the assumption used for the projected loss severity and a directionally opposite change in the assumption used for projected prepayment rates. For servicing rights, significant increases in projected prepayment rates or discount rates in isolation would result in a significantly lower fair value measurement, while a significant increase in expected life in isolation would result in a significantly higher fair value measurement. Generally, a change in the projected prepayment rates is accompanied by a directionally opposite change in expected life.

The aggregate fair value of loans held for sale, carried at fair value, contractual balance (including accrued interest), and unrealized gain were:

(Dollars in thousands)	December 31, 2023		June 30, 2023
Aggregate fair value	$	13,468	$	23,203
Contractual balance	13,013		22,844
Unrealized gain	$	455	$	359

The total interest income and amount of gains and losses from changes in fair value included in earnings for loans held for sale were:

	For the Three Months Ended				For the Six Months Ended
	December 31,				December 31,
(Dollars in thousands)	2023		2022		2023		2022
Interest income	$	141	$	103	$	330	$	153
Change in fair value	33		(422)		(96)		(331)
Total	$	174	$	(319)	$	234	$	(178)

The table below summarizes assets measured at fair value on a non-recurring basis:

	December 31, 2023
(Dollars in thousands)	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Balance
Other real estate owned and repossessed vehicles:
Single family real estate	$	—	$	—	$	5,574	$	5,574
Autos	$	—	$	—	$	1,743	$	1,743
Total	$	—	$	—	$	7,317	$	7,317
	June 30, 2023
(Dollars in thousands)	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Balance
Other real estate owned and repossessed vehicles:
Single family real estate	$	—	$	—	$	5,574	$	5,574
Multifamily real estate	—		—		1,392		1,392
Autos	—		—		$	1,133	1,133
Total	$	—	$	—	$	8,099	$	8,099

Other real estate owned and foreclosed assets, which are measured at the lower of carrying value or fair value less costs to sell, had a net carrying amount of $7.3 million at December 31, 2023, after write-downs of $1.1 million, and a net carrying amount of $8.1 million at June 30, 2023, after write-downs of $1.7 million.

The following table presents quantitative information about Level 3 fair value measurements for other real estate owned measured at fair value on a non-recurring basis:

	December 31, 2023
(Dollars in thousands)	Fair Value		Valuation Technique	Unobservable Input	Range (Weighted Average) 1
Other real estate owned:
Single family real estate	$	5,574	Sales comparison approach	Differences between the comparable sales	62.1 to 93.6% (62.1%)

	June 30, 2023
(Dollars in thousands)	Fair Value		Valuation Technique	Unobservable Input	Range (Weighted Average) 1
Other real estate owned:
Single family real estate	$	5,574	Sales comparison approach	Differences between the comparable sales	62.1 to 93.6% (62.1%)
Multifamily real estate	$	1,392	Sales comparison approach and income approach	Differences between the comparable sales and differences in net operating income expectations, capitalization rate	49.8 to 54.5% (49.8%)

1 For other real estate owned the ranges shown may vary positively or negatively based on the comparable sales reported in the current appraisal. In certain instances, the range can be significant due to small sample sizes and in some cases the asset being valued having limited comparable sales with similar characteristics at the time the current appraisal is conducted. The weighted average is based on the relative fair value of comparable sales.

Fair Value of Financial Instruments

Carrying amounts and estimated fair values of financial instruments at December 31, 2023 and June 30, 2023 were:

	December 31, 2023
			Fair Value
(Dollars in thousands)	Carrying Amount		Level 1		Level 2		Level 3		Total Fair Value
Financial assets:
Cash, cash equivalents and segregated cash	$	1,763,723	$	1,763,723	$	—	$	—	$	1,763,723
Trading securities	329		—		329		—		329
Available-for-sale securities	239,812		—		32,104		207,708		239,812
Stock of regulatory agencies	21,534		—		21,534		—		21,534
Loans held for sale, at fair value	13,468		—		13,468		—		13,468
Loans held for investment—net	18,264,354		—		—		18,313,778		18,313,778
Securities borrowed	145,176		—		—		155,513		155,513
Customer, broker-dealer and clearing receivables	265,857		—		—		278,219		278,219
Servicing rights	28,043		—		—		28,043		28,043
Other assets - derivative instruments	96,084		—		96,084		—		96,084
Financial liabilities:
Total deposits	18,203,912		—		18,120,805		—		18,120,805
Advances from the Federal Home Loan Bank	90,000		—		84,150		—		84,150
Borrowings, subordinated notes and debentures	341,086		—		314,321		—		314,321
Securities loaned	155,492		—		—		155,492		155,492
Customer, broker-dealer and clearing payables	368,885		—		—		368,885		368,885
Accounts payable and other liabilities - derivative instruments	92,144		—		92,144		—		92,144

	June 30, 2023
			Fair Value
(Dollars in thousands)	Carrying Amount		Level 1		Level 2		Level 3		Total Fair Value
Financial assets:
Cash, cash equivalents and segregated cash	$	2,382,086	$	2,382,086	$	—	$	—	$	2,382,086
Trading securities	758		—		758		—		758
Available-for-sale securities	232,350		—		27,345		205,005		232,350
Stock of regulatory agencies	21,510		—		21,510		—		21,510
Loans held for sale, at fair value	23,203		—		23,203		—		23,203
Loans held for sale, at lower of cost or fair value	776		—		—		780		780
Loans held for investment—net	16,456,728		—		—		16,417,183		16,417,183
Securities borrowed	134,339		—		—		143,461		143,461
Customer, broker-dealer and clearing receivables	374,074		—		—		386,082		386,082
Servicing rights	25,443		—		—		25,443		25,443
Other assets - derivative instruments	919		—		919		—		919
Financial liabilities:
Total deposits	17,123,108		—		17,064,084		—		17,064,084
Advances from the Federal Home Loan Bank	90,000		—		83,192		—		83,192
Borrowings, subordinated notes and debentures	361,779		—		327,564		—		327,564
Securities loaned	159,832		—		—		159,416		159,416
Customer, broker-dealer and clearing payables	445,477		—		—		445,447		445,447
Accounts payable and other liabilities - derivative instruments	691		—		691		—		691

Carrying amount is the estimated fair value for cash and cash equivalents and segregated cash, stock of regulatory agencies, interest bearing deposits, accrued interest receivable and payable, demand deposits, short-term debt, and variable rate loans or deposits that reprice frequently and fully. For fixed rate loans, deposits, borrowings or subordinated debt and for variable rate loans, deposits, borrowings or subordinated debt with infrequent repricing or repricing limits, fair value is based on discounted cash flows using current market rates applied to the estimated life and credit risk. A discussion of the methods of valuing trading securities, available-for-sale securities, loans held for sale and derivatives can be found in Note 3—“Fair Value” of the 2023 Form 10-K. The fair value of off-balance sheet items is not material.

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AVAILABLE-FOR-SALE SECURITIES

6 Months Ended

Dec. 31, 2023

Investments, Debt and Equity Securities [Abstract]

AVAILABLE-FOR-SALE SECURITIES

AVAILABLE-FOR-SALE SECURITIES

The amortized cost and fair value of available-for-sale securities were:

	December 31, 2023
(Dollars in thousands)	Amortized Cost		Unrealized Gains		Unrealized Losses		Fair Value
Mortgage-backed securities (MBS):
U.S. agencies1	$	31,048	$	238	$	(2,622)	$	28,664
Non-agency2	209,783		911		(2,986)		207,708
Total mortgage-backed securities	240,831		1,149		(5,608)		236,372
Non-MBS:
Municipal	3,721		—		(281)		3,440
Total Non-MBS	3,721		—		(281)		3,440
Total available-for-sale securities	$	244,552	$	1,149	$	(5,889)	$	239,812
	June 30, 2023
(Dollars in thousands)	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 securities	237,295		711		(9,054)		228,952
Non-MBS:
Municipal	3,656		—		(258)		3,398
Total Non-MBS	3,656		—		(258)		3,398
Total available-for-sale securities	$	240,951	$	711	$	(9,312)	$	232,350

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.

No credit losses were recognized on available-for-sale securities in the three and six months ended December 31, 2023 and December 31, 2022. Based on the underlying government guarantees and other credit protection supporting our securities, no allowance for credit losses for available-for-sale securities was recorded at December 31, 2023 and June 30, 2023. The Company has no allowance for the available-for-sale securities in an unrealized loss position based on an analysis of: (1) the credit characteristics of the securities, including the forecasted cash flows, credit ratings, credit enhancement, and external government backing, as applicable, and (2) whether the Company is intending to sell or is required to sell any securities before recovering the amortized cost basis of the securities. The unrealized losses on available-for-sale securities are primarily driven by the increase in interest rates since the securities were purchased.

The face amounts of available-for-sale securities pledged to secure borrowings at December 31, 2023 and June 30, 2023 were $0.8 million and $0.9 million, respectively.

During the three and six months ended December 31, 2023 and 2022, the Company sold a $4.8 million available-for-sale security with no realized gain or loss.

Securities with unrealized losses, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, were:

	December 31, 2023
	Available-for-sale securities in loss position for
	Less Than 12 Months				More Than 12 Months				Total
(Dollars in thousands)	Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses
MBS:
U.S. agencies	$	25	$	—	$	20,762	$	(2,622)	$	20,787	$	(2,622)
Non-agency	42,324		(71)		133,670		(2,915)		175,994		(2,986)
Total MBS	42,349		(71)		154,432		(5,537)		196,781		(5,608)
Non-MBS:
Municipal	—		—		3,440		(281)		3,440		(281)
Total Non-MBS	—		—		3,440		(281)		3,440		(281)
Total available-for-sale securities	$	42,349	$	(71)	$	157,872	$	(5,818)	$	200,221	$	(5,889)
	June 30, 2023
	Available-for-sale securities in loss position for
	Less Than 12 Months				More Than 12 Months				Total
(Dollars in thousands)	Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses
MBS:
U.S. agencies	$	3,182	$	(16)	$	20,642	$	(3,061)	$	23,824	$	(3,077)
Non-agency	107,982		(1,808)		95,385		(4,169)		203,367		(5,977)
Total MBS	111,164		(1,824)		116,027		(7,230)		227,191		(9,054)
Non-MBS:
Municipal	—		—		3,398		(258)		3,398		(258)
Total Non-MBS	—		—		3,398		(258)		3,398		(258)
Total available-for-sale securities	$	111,164	$	(1,824)	$	119,425	$	(7,488)	$	230,589	$	(9,312)

The components of the Company’s accumulated other comprehensive income (loss) are as follows:

(Dollars in thousands)	December 31, 2023		June 30, 2023
Available-for-sale securities—net unrealized gains (losses)	$	(4,740)	$	(8,601)
Available-for-sale securities—non-credit related	(845)		(845)
Subtotal	(5,585)		(9,446)
Tax benefit (expense)	1,666		2,836
Net unrealized gain (loss) on investment securities in accumulated other comprehensive income (loss)	$	(3,919)	$	(6,610)

The following table sets forth the expected maturity distribution of our mortgage-backed securities, which is based on assumed prepayment rates, and the maturity distribution of our non-MBS, which is based on the contractual maturity:

	As of December 31, 2023
(Dollars in thousands)	Total Amount		Due Within One Year		Due after One but within Five Years		Due after Five but within Ten Years		Due After Ten Years
MBS:
Agency1	$	31,048	$	6,907	$	14,543	$	7,222	$	2,376
Non-Agency2	$	209,783	$	163,929	$	43,425	$	1,534	$	895
Total MBS	$	240,831	$	170,836	$	57,968	$	8,756	$	3,271
Non-MBS:
Municipal	$	3,721	$	—	$	—	$	—	$	3,721
Total Non-MBS	$	3,721	$	—	$	—	$	—	$	3,721
Available-for-sale—Amortized cost	$	244,552	$	170,836	$	57,968	$	8,756	$	6,992
Available-for-sale—Fair value	$	239,812	$	168,400	$	56,864	$	8,181	$	6,367

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 pools of 1-4 family residential, Alt-A or pay-option ARM mortgages and commercial mortgages.

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LOANS & ALLOWANCE FOR CREDIT LOSSES

6 Months Ended

Dec. 31, 2023

Receivables [Abstract]

LOANS & ALLOWANCE FOR CREDIT LOSSES

LOANS & ALLOWANCE FOR CREDIT LOSSES

The Company categorizes the loan portfolio into six segments: Single Family - Mortgage & Warehouse, Multifamily and Commercial Mortgage, Commercial Real Estate, Commercial & Industrial - Non Real Estate, Auto & Consumer and Other. For further detail of the segments of the Company’s loan portfolio, refer to Note 1—“Organizations and Summary of Significant Accounting Policies” in the 2023 Form 10-K.

The following table sets forth the composition of the loan portfolio:

(Dollars in thousands)	December 31, 2023		June 30, 2023
Single Family - Mortgage & Warehouse	$	4,092,104	$	4,173,833
Multifamily and Commercial Mortgage1	4,065,019		3,082,225
Commercial Real Estate1	6,043,400		6,199,818
Commercial & Industrial - Non-RE	4,177,461		2,639,650
Auto & Consumer	477,275		546,264
Other	5,150		10,236
Total gross loans	18,860,409		16,652,026
Allowance for credit losses - loans	(251,749)		(166,680)
Unaccreted premiums (discounts) and loan fees	(344,306)		(28,618)
Total net loans	$	18,264,354	$	16,456,728

1 Includes PCD loans of $296.7 million in Multifamily and Commercial Mortgage and $44.5 million in Commercial Real Estate as of December 31, 2023. For further detail on PCD loans refer to Note 1—“Summary of Significant Accounting Policies”.

Accrued interest receivable on loans held for investments totaled $107.7 million and $77.9 million as of December 31, 2023 and June 30, 2023, respectively.

At December 31, 2023 and June 30, 2023, the Company has pledged certain loans totaling $5,155.8 million and $5,128.4 million, respectively, to the Federal Home Loan Bank (“FHLB”) and $3,915.0 million and $3,689.5 million, respectively, to the Federal Reserve Bank of San Francisco (“FRBSF”).

The following table presents the components of the provision for credit losses:

	For the Three Months Ended				For the Six Months Ended
	December 31,				December 31,
(Dollars in thousands)	2023		2022		2023		2022
Provision for credit losses - loans	$	12,500	$	3,500	$	18,250	$	12,250
Provision for credit losses - unfunded lending commitments	1,000		(499)		2,250		(499)
Total provision for credit losses	$	13,500	$	3,001	$	20,500	$	11,751

The following tables summarize activity in the allowance for credit losses - loans by portfolio segment:

	For the Three Months Ended December 31, 2023
(Dollars in thousands)	Single Family-Mortgage & Warehouse		Multifamily and Commercial Mortgage		Commercial Real Estate		Commercial & Industrial - Non-RE		Auto & Consumer		Other		Total
Balance at October 1, 2023	$	17,426	$	15,874	$	71,355	$	54,592	$	11,614	$	9	$	170,870
Allowance for credit losses at acquisition of PCD loans	—		58,972		11,125		—		—		—		$	70,097
Provision (benefit) for credit losses - loans	(2,080)		3,507		(4,702)		14,695		1,080		—		12,500
Charge-offs	—		—		—		(86)		(2,321)		—		(2,407)
Recoveries	10		—		—		—		679		—		689
Balance at December 31, 2023	$	15,356	$	78,353	$	77,778	$	69,201	$	11,052	$	9	$	251,749

	For the Three Months Ended December 31, 2022
(Dollars in thousands)	Single Family-Mortgage & Warehouse		Multifamily and Commercial Mortgage		Commercial Real Estate		Commercial & Industrial - Non-RE		Auto & Consumer		Other		Total
Balance at October 1, 2022	$	18,039	$	14,649	$	73,776	$	34,383	$	14,595	$	30	$	155,472
Provision (benefit) for credit losses - loans	1,878		808		(1,608)		1,655		776		(9)		3,500
Charge-offs	(294)		—		—		—		(1,871)		—		(2,165)
Recoveries	8		—		—		—		403		—		411
Balance at December 31, 2022	$	19,631	$	15,457	$	72,168	$	36,038	$	13,903	$	21	$	157,218

	For the Six Months Ended December 31, 2023
(Dollars in thousands)	Single Family-Mortgage & Warehouse		Multifamily and Commercial Mortgage		Commercial Real Estate		Commercial & Industrial - Non-RE		Auto & Consumer		Other		Total
Balance at July 1, 2023	$	17,503	$	16,848	$	72,755	$	46,347	$	13,212	$	15	$	166,680
Allowance for credit losses at acquisition of PCD loans	—		58,972		11,125		—		—		—		70,097
Provision (benefit) for credit losses - loans	(2,090)		2,533		(6,102)		22,940		975		(6)		18,250
Charge-offs	(80)		—		—		(86)		(4,602)		—		(4,768)
Recoveries	23		—		—		—		1,467		—		1,490
Balance at December 31, 2023	$	15,356	$	78,353	$	77,778	$	69,201	$	11,052	$	9	$	251,749

	For the Six Months Ended December 31, 2022
(Dollars in thousands)	Single Family-Mortgage & Warehouse		Multifamily and Commercial Mortgage		Commercial Real Estate		Commercial & Industrial - Non-RE		Auto & Consumer		Other		Total
Balance at July 1, 2022	$	19,670	$	14,655	$	69,339	$	30,808	$	14,114	$	31	$	148,617
Provision (benefit) for credit losses - loans	236		802		2,829		5,212		3,181		(10)		12,250
Charge-offs	(298)		—		—		—		(4,233)		—		(4,531)
Recoveries	23		—		—		18		841		—		882
Balance at December 31, 2022	$	19,631	$	15,457	$	72,168	$	36,038	$	13,903	$	21	$	157,218

For the three and six months ended December 31, 2023, the allowance for credit losses for loans increased primarily due to loan growth in the Commercial & Industrial - Non-RE portfolio and the loans acquired in the FDIC Loan Purchase.

Loan products within each portfolio contain varying collateral types which impact the estimate of the loss given default utilized in the calculation of the allowance. For further discussion of the model method of estimating expected lifetime credit losses to Note 1—“Organizations and Summary of Significant Accounting Policies” within the 2023 Form 10-K.

The following tables present a summary of the activity in the allowance for credit losses for off-balance sheet lending commitments:

	Three Months Ended December 31,
(Dollars in thousands)	2023		2022
Balance at October 1,	$	11,723	$	10,973
Provision for credit losses - unfunded lending commitments	1,000		(499)
Balance at December 31,	$	12,723	$	10,474
	Six Months Ended December 31,
(Dollars in thousands)	2023		2022
Balance at July 1,	$	10,473	$	10,973
Provision for credit losses - unfunded lending commitments	2,250		(499)
Balance at December 31,	$	12,723	$	10,474

The increase in the allowance for off-balance sheet lending commitments at December 31, 2023 compared to June 30, 2023, was primarily driven by an increase in the amount of Commercial Real Estate and Commercial and Industrial - Non-RE unfunded commitments.

The following table presents loan-to-value (“LTV”) for the Company’s real estate loans outstanding as of December 31, 2023:

	Total Real Estate Loans				Single Family - Mortgage & Warehouse		Multifamily and Commercial Mortgage		Commercial Real Estate
Weighted-Average LTV	47.8	%			56.4	%	53.3	%	38.8	%
Median LTV	53.0	%	—	%	55.0	%	50.0	%	35.0	%

The Company’s effective weighted-average LTV was 48.6% for real estate loans originated during the three months ended December 31, 2023.

Credit Quality Disclosures. The following tables provide the composition of loans that are performing and nonaccrual by portfolio segment:

	December 31, 2023
(Dollars in thousands)	Single Family-Mortgage & Warehouse		Multifamily and Commercial Mortgage		Commercial Real Estate		Commercial & Industrial - Non-RE		Auto & Consumer		Other		Total
Performing	$	4,037,817	$	4,027,695	$	6,017,298	$	4,174,472	$	475,505	$	5,114	$	18,737,901
Nonaccrual	$	54,287	$	37,324	$	26,102	$	2,989	$	1,770	$	36	$	122,508
Total	$	4,092,104	$	4,065,019	$	6,043,400	$	4,177,461	$	477,275	$	5,150	$	18,860,409
Nonaccrual loans to total loans													0.65		%

	June 30, 2023
(Dollars in thousands)	Single Family-Mortgage & Warehouse		Multifamily and Commercial Mortgage		Commercial Real Estate		Commercial & Industrial - Non-RE		Auto & Consumer		Other		Total
Performing	$	4,143,119	$	3,047,122	$	6,184,966	$	2,636,661	$	544,807	$	8,191	$	16,564,866
Nonaccrual	30,714		35,103		14,852		2,989		1,457		2,045		87,160
Total	$	4,173,833	$	3,082,225	$	6,199,818	$	2,639,650	$	546,264	$	10,236	$	16,652,026
Nonaccrual loans to total loans													0.52		%

There were no nonaccrual loans without an allowance for credit losses as of December 31, 2023 and June 30, 2023. There was no interest income recognized on nonaccrual loans in the three months ended December 31, 2023 and 2022.

Credit Quality Indicators. The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information and current economic trends. The Company analyzes loans individually by classifying the loans based on credit risk. The Company uses the following definitions for risk ratings.

Pass. Loans classified as pass are well protected by the current net worth and paying capacity of the obligor or by the fair value of any underlying collateral, less cost to acquire and sell in a timely manner.

Special Mention. Loans classified as special mention have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the institution’s credit position at some future date.

Substandard. Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected.

Doubtful. Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable.

The Company reviews and grades loans following a continuous review process, featuring coverage of all loan types and business lines at least quarterly. Continuous reviewing provides more effective risk monitoring because it immediately tests for potential impacts caused by changes in personnel, policy, products or underwriting standards.

The following tables presents the composition of loans by portfolio segment, fiscal year of origination and credit quality indicator, and the amount of gross charge-offs for the six months ended December 31, 2023:

	December 31, 2023
	Loans Held for Investment by Fiscal Year of Origination												Revolving Loans		Total
(Dollars in thousands)	2024		2023		2022		2021		2020		Prior
Single Family-Mortgage & Warehouse
Pass	$	309,717	$	648,620	$	1,297,738	$	501,469	$	309,309	$	779,468	$	98,848	$	3,945,169
Special Mention	—		10,593		13,575		3,928		8,851		38,883		—		75,830
Substandard	—		285		4,292		3,910		14,999		47,619		—		71,105
Doubtful	—		—		—		—		—		—		—		—
Total	309,717		659,498		1,315,605		509,307		333,159		865,970		98,848		4,092,104
Gross charge-offs	—		—		—		—		—		80		—		80
Multifamily and Commercial Mortgage
Pass	22,417		758,825		1,089,359		664,917		562,656		880,855		—		3,979,029
Special Mention	—		9,096		1,985		—		459		1,085		—		12,625
Substandard	—		4,992		7,250		10,457		33,075		17,591		—		73,365
Doubtful	—		—		—		—		—		—		—		—
Total	22,417		772,913		1,098,594		675,374		596,190		899,531		—		4,065,019
Gross charge-offs	—		—		—		—		—		—		—		—
Commercial Real Estate
Pass	1,071,507		1,710,690		1,737,152		521,677		17,816		53,000		780,174		5,892,016
Special Mention	—		—		—		—		—		—		—		—
Substandard	—		18,657		52,338		34,250		15,000		31,139		—		151,384
Doubtful	—		—		—		—		—		—		—		—
Total	1,071,507		1,729,347		1,789,490		555,927		32,816		84,139		780,174		6,043,400
Gross charge-offs	—		—		—		—		—		—		—		—
Commercial & Industrial - Non-RE
Pass	486,830		411,930		322,969		43,934		7,630		4,427		2,752,431		4,030,151
Special Mention	—		37,404		35,179		—		10,554		—		45,528		128,665
Substandard	—		—		14,624		1,032		—		2,989		—		18,645
Doubtful	—		—		—		—		—		—		—		—
Total	486,830		449,334		372,772		44,966		18,184		7,416		2,797,959		4,177,461
Gross charge-offs	—		—		—		—		—		86		—		86
Auto & Consumer
Pass	27,105		136,439		215,435		55,732		18,658		20,624		—		473,993
Special Mention	—		462		644		100		34		46		—		1,286
Substandard	—		426		925		372		127		146		—		1,996
Doubtful	—		—		—		—		—		—		—		—
Total	27,105		137,327		217,004		56,204		18,819		20,816		—		477,275
Gross charge-offs	—		1,435		2,111		755		131		170		—		4,602
Other
Pass	3,061		—		—		1,071		—		982		—		5,114
Special Mention	—		—		—		—		—		—		—		—
Substandard	—		—		—		36		—		—		—		36
Doubtful	—		—		—		—		—		—		—		—
Total	3,061		—		—		1,107		—		982		—		5,150
Gross charge-offs	—		—		—		—		—		—		—		—
Total
Pass	1,920,637		3,666,504		4,662,653		1,788,800		916,069		1,739,356		3,631,453		18,325,472
Special Mention	—		57,555		51,383		4,028		19,898		40,014		45,528		218,406
Substandard	—		24,360		79,429		50,057		63,201		99,484		—		316,531
Doubtful	—		—		—		—		—		—		—		—
Total	$	1,920,637	$	3,748,419	$	4,793,465	$	1,842,885	$	999,168	$	1,878,854	$	3,676,981	$	18,860,409
As a % of total gross loans	10.18%		19.87%		25.42%		9.77%		5.30%		9.96%		19.50%		100.0%
Total gross charge-offs	$	—	$	1,435	$	2,111	$	755	$	131	$	336	$	—	$	4,768

	June 30, 2023
	Loans Held for Investment by Fiscal Year of Origination												Revolving Loans		Total
(Dollars in thousands)	2023		2022		2021		2020		2019		Prior
Single Family-Mortgage & Warehouse
Pass	$	730,498	$	1,346,804	$	522,873	$	324,458	$	255,547	$	639,401	$	243,175	$	4,062,756
Special Mention	—		7,280		7,026		8,303		12,942		18,244		6,614		60,409
Substandard	—		5,188		4,686		14,384		2,024		24,386		—		50,668
Doubtful	—		—		—		—		—		—		—		—
Total	730,498		1,359,272		534,585		347,145		270,513		682,031		249,789		4,173,833
Multifamily and Commercial Mortgage
Pass	558,787		975,186		498,744		314,383		224,592		404,222		—		2,975,914
Special Mention	—		9,691		4,636		1,360		7,705		—		—		23,392
Substandard	—		3,145		5,686		38,857		6,181		29,050		—		82,919
Doubtful	—		—		—		—		—		—		—		—
Total	558,787		988,022		509,066		354,600		238,478		433,272		—		3,082,225
Commercial Real Estate
Pass	1,867,476		2,323,095		631,500		87,059		117,928		—		960,024		5,987,082
Special Mention	29,000		43,427		—		8,457		800		15,062				96,746
Substandard	—		29,200		37,951		18,500		15,487		14,852		—		115,990
Doubtful	—		—		—		—		—		—		—		—
Total	1,896,476		2,395,722		669,451		114,016		134,215		29,914		960,024		6,199,818
Commercial & Industrial - Non-RE
Pass	488,120		358,214		29,777		14,794		2,098		—		1,707,619		2,600,622
Special Mention	—		8,221		—		11,413		—		—		600		20,234
Substandard	—		17,762		1,032		—		—		—		—		18,794
Doubtful	—		—		—		—		—		—		—		—
Total	488,120		384,197		30,809		26,207		2,098		—		1,708,219		2,639,650
Auto & Consumer
Pass	161,831		256,154		70,223		24,906		19,897		9,929		—		542,940
Special Mention	423		632		453		60		14		6		—		1,588
Substandard	350		785		233		133		162		73		—		1,736
Doubtful	—		—		—		—		—		—		—		—
Total	162,604		257,571		70,909		25,099		20,073		10,008		—		546,264
Other
Pass	5,721		—		1,306		—		—		1,164		—		8,191
Special Mention	—		—		—		—		—		—		—		—
Substandard	—		2,000		45		—		—		—		—		2,045
Doubtful	—		—		—		—		—		—		—		—
Total	5,721		2,000		1,351		—		—		1,164		—		10,236
Total
Pass	3,812,433		5,259,453		1,754,423		765,600		620,062		1,054,716		2,910,818		16,177,505
Special Mention	29,423		69,251		12,115		29,593		21,461		33,312		7,214		202,369
Substandard	350		58,080		49,633		71,874		23,854		68,361		—		272,152
Doubtful	—		—		—		—		—		—		—		—
Total	$	3,842,206	$	5,386,784	$	1,816,171	$	867,067	$	665,377	$	1,156,389	$	2,918,032	$	16,652,026
As a % of total gross loans	23.07%		32.35%		10.91%		5.21%		4.00%		6.94%		17.52%		100.0%

The Company considers the performance of the loan portfolio and its impact on the allowance for credit losses and evaluates credit quality based on the aging status of its loans. Certain short-term loans do not have a fixed maturity date and are treated as delinquent if not paid in full 90 days after the origination date.

The following tables provide the aging of loans by portfolio segment:

	December 31, 2023
(Dollars in thousands)	Current			30-59 Days			60-89 Days			90+ Days			Total
Single Family-Mortgage & Warehouse	$	3,994,250		$	20,770		$	10,364		$	66,720		$	4,092,104
Multifamily and Commercial Mortgage	4,022,438			8,109			1,085			33,387			4,065,019
Commercial Real Estate	6,001,011			—			—			42,389			6,043,400
Commercial & Industrial - Non-RE	4,177,461			—			—			—			4,177,461
Auto & Consumer	468,133			6,805			1,311			1,026			477,275
Other	5,150			—			—			—			5,150
Total	$	18,668,443		$	35,684		$	12,760		$	143,522		$	18,860,409
As a % of total gross loans	98.98		%	0.19		%	0.07		%	0.76		%	100.00		%

	June 30, 2023
(Dollars in thousands)	Current			30-59 Days			60-89 Days			90+ Days			Total
Single Family-Mortgage & Warehouse	$	4,102,150		$	20,832		$	7,971		$	42,880		$	4,173,833
Multifamily and Commercial Mortgage	3,048,217			2,705			1,124			30,179			3,082,225
Commercial Real Estate	6,173,716			11,250			—			14,852			6,199,818
Commercial & Industrial - Non-RE	2,639,650			—			—			—			2,639,650
Auto & Consumer	537,181			6,529			1,707			847			546,264
Other	8,024			68			1			2,143			10,236
Total	$	16,508,938		$	41,384		$	10,803		$	90,901		$	16,652,026
As a % of total gross loans	99.14		%	0.25		%	0.06		%	0.55		%	100.00		%

Loans reaching 90+ days past due are generally placed on non-accrual. As of December 31, 2023 and June 30, 2023, there were loans of $31.3 million and $14.1 million, respectively, over 90 days past due and still accruing interest as the Company expects to collect the principal and interest amounts due.

Single family mortgage loans in process of foreclosure were $18.5 million and $17.7 million as of December 31, 2023 and June 30, 2023, respectively.

    Loan Modifications to Borrowers Experiencing Financial Difficulty. The Company may grant certain modifications of loans to borrowers experiencing financial difficulty, which effective July 1, 2023, are reported as financial difficulty modifications (“FDMs”). The Company’s modification programs provide various modifications to borrowers experiencing financial difficulty which may include interest rate reductions, term extensions, payment delays and/or principal forgiveness. There were no FDMs during the three and six months ended December 31, 2023.

Prior to adoption of ASU 2022-02, the Company accounted for certain modifications as troubled debt restructurings (“TDRs”). Approximately 1.77% of our nonaccrual loans were considered TDRs at June 30, 2023. Borrowers that made timely payments after TDRs were considered non-performing for at least six months. Generally, after six months of timely payments, those TDRs were reclassified from the nonaccrual loan category to the performing loan category and any previously deferred interest income was recognized. The Company had no TDRs classified as performing loans at June 30, 2023.

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DERIVATIVES

6 Months Ended

Dec. 31, 2023

Derivative Instruments and Hedging Activities Disclosure [Abstract]

DERIVATIVES

DERIVATIVES

For additional information on the Company’s derivative instruments, see Note 1—“Organizations and Summary of Significant Accounting Policies,” Note 2—“Acquisitions” and Note 3—“Fair Value” in the 2023 Form 10-K and Note 3—“Fair Value” herein. As of December 31, 2023 and June 30, 2023, there were no derivatives designated in hedge accounting relationships.

The following table presents the fair values and notional amounts of the Company’s derivative instruments. While the notional amounts give an indication of the volume of the Company’s derivatives activity, the notional amounts significantly exceed, in

the Company’s view, the possible losses that could arise from such transactions. For most derivative contracts, the notional amount is not exchanged, rather it is a reference amount used to calculate payments.

	Interest Rate Contracts
(Dollars in thousands)	As of 12/31/2023		As of 6/30/2023
Derivative Assets — Fair Value	$	96,084	$	919
Derivative Liabilities — Fair Value	92,144		691
Derivative Assets — Notional	$	1,316,516	$	231,709
Derivative Liabilities — Notional	1,319,604		204,522

The following table presents the gains (losses) related to the Company’s derivative instrument activity recognized in the Consolidated Statements of Income:

	Three Months Ended				Six Months Ended
	December 31,				December 31,
(Dollars in thousands)	2023		2022		2023		2022
Banking and service fees	$	50	$	119	$	390	$	119
Mortgage banking and servicing rights income	231		23		508		285

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STOCKHOLDERS’ EQUITY AND STOCK-BASED COMPENSATION

6 Months Ended

Dec. 31, 2023

Share-Based Payment Arrangement [Abstract]

STOCKHOLDERS’ EQUITY AND STOCK-BASED COMPENSATION

STOCKHOLDERS’ EQUITY AND STOCK-BASED COMPENSATION

The Company has an equity incentive plan, the Amended and Restated 2014 Stock Incentive Plan (the “2014 Plan”), which provides for the granting of non-qualified and incentive stock options, restricted stock and restricted stock units, stock appreciation rights and other awards to employees, directors and consultants. The 2014 Plan is designed to encourage selected employees and directors to improve operations and increase profits, and to accept or continue employment or association with the Company through participation in the growth in the value of the Company’s common stock. On November 9, 2023, the Company’s stockholders approved the 2014 Plan, which authorized one million additional shares for future awards under the 2014 Plan. The Company also has an employment agreement with its Chief Executive Officer that authorizes an award of restricted stock units (the “RSU award”). For additional information regarding the Company’s stock-based compensation plans, see Note 16—“Stock-based Compensation” in the 2023 Form 10-K.

At December 31, 2023, 1,932,436 shares of common stock were authorized for future awards under the 2014 Plan. As of December 31, 2023, the total compensation cost related to non-vested awards not yet recognized was $45.4 million and the weighted-average period over which it is expected to be recognized is 1.3 years.

The following table presents the status and changes in RSUs:

	RSUs	Weighted-Average Grant-Date Fair Value
Non-vested balance at June 30, 2023	1,407,882	$	41.53
Granted	643,746	42.66
Vested	(363,263)	37.65
Forfeited	(42,012)	40.33
Non-vested balance at December 31, 2023	1,646,353	$	42.86

    The total fair value of shares vested for the three and six months ended December 31, 2023 was $0.1 million and $14.9 million, respectively. The total fair value of shares vested for the three and six months ended December 31, 2022 was $0.1 million and $12.1 million, respectively.

Common Stock Repurchases. During the three and six months ended December 31, 2023, the Company repurchased a total of $58.7 million and $83.2 million, or 1,607,301 and 2,255,509 common shares at an average price of $36.49 per share and $36.88 per share, respectively. The Company did not repurchase common stock during the three and six months ended December 31, 2022. For additional information regarding the Company’s share repurchase program see Note 15—“Stockholders’ Equity” in the 2023 Form 10-K.

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EARNINGS PER COMMON SHARE

6 Months Ended

Dec. 31, 2023

Earnings Per Share [Abstract]

EARNINGS PER COMMON SHARE

EARNINGS PER COMMON SHARE

The following table presents the calculation of basic and diluted earnings per common share (“EPS”):

	Three Months Ended				Six Months Ended
	December 31,				December 31,
(Dollars in thousands, except per share data)	2023		2022		2023		2022
Earnings Per Common Share
Net income	$	151,771	$	81,552	$	234,416	$	139,959
Average common shares issued and outstanding	57,216,621		59,999,573		58,082,830		59,927,078
Earnings per common share	$	2.65	$	1.36	$	4.04	$	2.34
Diluted Earnings Per Common Share
Net income	$	151,771	$	81,552	$	234,416	$	139,959
Average common shares issued and outstanding	57,216,621		59,999,573		58,082,830		59,927,078
Dilutive effect of average unvested RSUs	716,213		515,062		847,597		613,275
Average dilutive common shares outstanding	57,932,834		60,514,635		58,930,427		60,540,353
Diluted earnings per common share	$	2.62	$	1.35	$	3.98	$	2.31
Weighted average antidilutive common stock equivalents (excluded from the computation of EPS)	1,598		249,075		837		51,793

For further information regarding the Company’s EPS calculation see Note 17— “Earnings per Common Share” in the 2023 Form 10-K.

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COMMITMENTS AND CONTINGENCIES

6 Months Ended

Dec. 31, 2023

Commitments and Contingencies Disclosure [Abstract]

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES

Operating Leases. The Company leases office space under operating lease agreements scheduled to expire at various dates. The following table represents maturities of lease liabilities:

(Dollars in thousands)	As of December 31, 2023
Within one year	$	12,357
After one year and within two years	12,728
After two years and within three years	12,438
After three years and within four years	12,380
After four years within five years	10,570
After five years	17,367
Total lease payments	77,840
Less: amount representing interest	(7,299)
Total lease liability	$	70,541

Credit-Related Financial Instruments. The Company is a party to credit-related financial instruments with off-balance-sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments are commitments to extend credit. Such commitments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the unaudited condensed consolidated balance sheets.

The Company’s exposure to credit loss is represented by the contractual amount of these commitments. The Company follows the same credit policies in making commitments as it does for on-balance-sheet instruments.

At December 31, 2023, the Company had unfunded commitments to originate $107.6 million in fixed rate loans and $3,394.8 million in variable rate loans, totaling an aggregate outstanding principal balance of $3,502.4 million. For December 31, 2023, the Company’s fixed rate commitments to originate had a weighted-average rate of 8.17%. At December 31, 2023, the Company also had fixed rate commitments to sell loans with an aggregate outstanding principal balance of $13.7 million. At December 31, 2023, 95.1% of the commitments to originate loans are matched with commitments to sell related to conforming single family loans classified as held for sale, respectively.

Commitments to extend credit are agreements to lend to a customer so long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. The commitments for equity lines of credit may expire without being drawn upon. Therefore, the total commitment amounts do not necessarily represent future cash requirements. The amount of collateral obtained, if it is deemed necessary by the Company, is based on management’s credit evaluation of the customer.

In the normal course of business, Axos Clearing LLC.’s (“Axos Clearing”) customer activities involve the execution, settlement, and financing of various customer securities transactions. These activities may expose Axos Clearing to off-balance-

sheet risk in the event the customer or other broker is unable to fulfill its contracted obligations and Axos Clearing has to purchase or sell the financial instrument underlying the contract at a loss. Axos Clearing’s clearing agreements with broker-dealers for which it provides clearing services requires them to indemnify Axos Clearing if customers fail to satisfy their contractual obligation.

Litigation. A consolidated derivative action, In re BofI Holding, Inc., Case No. 15cv2722 GPC (KSC), is pending before the United States District Court for the Southern District of California (the “Derivative Action”). The complaint in the Derivative Action sets forth allegations made in a related employment action, Erhart v. BofI Holding Inc., No. 15cv2287 BAS (NLS) (S.D. Cal.) (the “Employment Action”) brought by a former employee of the Company and was stayed pending resolution of the Employment action. On October 4, 2023, the court hearing the Employment Action entered a final amended judgment awarding damages and attorneys’ fees to the plaintiff. The defendants have filed a Notice of Appeal from the Employment Action judgment and all orders merged therein. On January 2, 2024, the Derivative Action plaintiff filed a Third Amended Complaint. The Derivative Action defendants dispute, and intend to vigorously defend against, the allegations raised in the Third Amended Complaint. The Derivative Action plaintiff seeks damages on behalf of the Company with respect to the Employment Action, and also seeks damages on behalf of the Company in connection with a now settled securities class action that was also based upon allegations made in the Employment Action and settled within available insurance coverage without attribution of wrongdoing to the Company, its management, or its directors.

In view of the inherent difficulty of predicting the outcome of the Derivative Action it is not possible to reasonably predict or estimate the eventual loss or range of loss, if any, related to the Derivative Action.

On October 26, 2022, a jury verdict was reached in the case of MUFG Union Bank, N.A. v. Axos Bank, et al, awarding damages to Union Bank. Judgment on such verdict was initially entered on June 5, 2023, and a corrected judgment was entered on June 20, 2023. The Company filed a Notice of Appeal on July 6, 2023, and the plaintiff filed a Notice of Cross-Appeal on July 20, 2023. Briefs have been submitted and the parties now await the scheduling of oral arguments by the court. The Company recorded a $16 million accrued expense in “Accounts payable and other liabilities” on the condensed consolidated balance sheet and in “General and administrative expense” on the condensed consolidated statement of income as of and for the year ended June 30, 2023, respectively. Given the uncertainty of the appellate process and other factors that are unknown or currently unquantifiable, the Company maintained its accrual at December 31, 2023.

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SEGMENT REPORTING AND REVENUE INFORMATION

6 Months Ended

Dec. 31, 2023

Segment Reporting [Abstract]

SEGMENT REPORTING AND REVENUE INFORMATION

SEGMENT REPORTING AND REVENUE INFORMATION

Segment Reporting. The operating segments reported below are the segments of the Company for which separate financial information is available and for which segment results are evaluated regularly by the Chief Executive Officer in deciding how to allocate resources and in assessing performance. The operating segments and segment results of the Company are determined based upon the management reporting system, which assigns balance sheet and income statement items to each of the business segments and by which segment results are evaluated by the Chief Executive Officer in deciding how to allocate resources and in assessing performance.

The Company evaluates performance and allocates resources based on pre-tax profit or loss from operations. Certain corporate administration costs have not been allocated to the reportable segments. The Company operates through two operating segments: Banking Business and Securities Business. Inter-segment transactions are eliminated in consolidation and primarily include non-interest income earned by the Securities Business segment and non-interest expense incurred by the Banking Business segment for cash sorting fees related to deposits sourced from Securities Business segment customers, as well as interest expense paid by the Banking Business segment to each of the wholly-owned subsidiaries of the Company and to the Company itself for their operating cash held on deposit with the Business Banking segment. For more information on the Company’s operating segments, see Note 23—“Segment Reporting” in the Company’s 2023 Form 10-K.

In order to reconcile the two segments to the consolidated totals, the Company includes parent-only activities and intercompany eliminations. The following tables present the operating results, goodwill, and assets of the segments:

	For the Three Months Ended December 31, 2023
(Dollars in thousands)	Banking Business		Securities Business		Corporate/Eliminations		Axos Consolidated
Net interest income	$	226,635	$	6,080	$	(4,109)	$	228,606
Provision for credit losses	13,500		—		—		13,500
Non-interest income	103,779		32,641		(12,291)		124,129
Non-interest expense	102,282		27,968		(8,411)		121,839
Income before taxes	$	214,632	$	10,753	$	(7,989)	$	217,396
	For the Three Months Ended December 31, 2022
(Dollars in thousands)	Banking Business		Securities Business		Corporate/Eliminations		Axos Consolidated
Net interest income	$	198,545	$	4,876	$	(3,511)	$	199,910
Provision for credit losses	3,001		—		—		3,001
Non-interest income	10,557		36,004		(18,232)		28,329
Non-interest expense	96,783		25,271		(14,027)		108,027
Income before taxes	$	109,318	$	15,609	$	(7,716)	$	117,211
	For the Six Months Ended December 31, 2023
(Dollars in thousands)	Banking Business		Securities Business		Corporate/Eliminations		Axos Consolidated
Net interest income	$	435,854	$	11,622	$	(7,715)	$	439,761
Provision for credit losses	20,500		—		—		20,500
Non-interest income	116,336		67,196		(24,896)		158,636
Non-interest expense	203,068		55,491		(16,214)		242,345
Income before taxes	$	328,622	$	23,327	$	(16,397)	$	335,552
	For the Six Months Ended December 31, 2022
(Dollars in thousands)	Banking Business		Securities Business		Corporate/Eliminations		Axos Consolidated
Net interest income	$	378,275	$	9,151	$	(7,041)	$	380,385
Provision for credit losses	11,751		—		—		11,751
Non-interest income	21,269		65,169		(30,901)		55,537
Non-interest expense	197,579		49,786		(23,251)		224,114
Income before taxes	$	190,214	$	24,534	$	(14,691)	$	200,057

	As of December 31, 2023
(Dollars in thousands)	Banking Business		Securities Business		Corporate/Eliminations		Axos Consolidated
Goodwill	$	35,721	$	61,952	$	—	$	97,673
Total Assets	$	20,757,856	$	819,744	$	46,164	$	21,623,764
	As of June 30, 2023
(Dollars in thousands)	Banking Business		Securities Business		Corporate/Eliminations		Axos Consolidated
Goodwill	$	35,721	$	61,952	$	—	$	97,673
Total Assets	$	19,396,167	$	899,496	$	52,806	$	20,348,469

Revenue Information. The following presents non-interest income, segregated by revenue streams in-scope and out-of-scope of Accounting Standards Codification (“ASC”) 606 for the periods indicated. For further information of the Company’s recognition of revenue and ASC 606 see Note 1—“Organizations and Summary of Significant Accounting Policies” in the 2023 Form 10-K.

	For the Three Months Ended				For the Six Months Ended
	December 31,				December 31,
(Dollars in thousands)	2023		2022		2023		2022
Advisory fee income	$	7,362	$	6,983	$	15,581	$	13,942
Broker-dealer clearing fees	6,068		4,425		11,603		9,658
Deposit service fees	2,414		2,202		3,094		3,308
Card fees	732		2,144		1,414		2,933
Bankruptcy trustee and fiduciary service fees	1,397		2,167		2,791		2,940
Non-interest income (in-scope of ASC 606)	17,973		17,921		34,483		32,781
Non-interest income (out-of-scope of ASC 606)	106,156		10,408		124,153		22,756
Total non-interest income	$	124,129	$	28,329	$	158,636	$	55,537

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)

6 Months Ended

Dec. 31, 2023

Accounting Policies [Abstract]

Consolidation

The condensed consolidated financial statements include the accounts of Axos Financial, Inc. (“Axos”) and its wholly owned subsidiaries, Axos Bank (the “Bank”) and Axos Nevada Holding, LLC (“Axos Nevada Holding” and collectively, the “Company”). Axos, the Bank and Axos Nevada Holding comprise substantially all of the Company’s assets and liabilities and revenues and expenses. The Bank, its wholly owned subsidiaries, and the activities of two lending-related trust entities, constitute the Banking Business segment and Axos Nevada Holding and its wholly owned subsidiaries constitute the Securities Business segment. All significant intercompany balances and transactions have been eliminated in consolidation. The Notes to the Consolidated Financial Statements are an integral part of the Company’s financial statements.

Basis of Presentation

The accompanying interim condensed consolidated financial statements, presented in accordance with accounting principles generally accepted in the United States of America (“GAAP”), are unaudited and reflect all adjustments which, in the opinion of management, are necessary for a fair statement of financial condition and results of operations for the interim periods. All adjustments are of a normal and recurring nature. Certain amounts reported in prior periods have been reclassified to conform with the current presentation. Results for the three and six months ended December 31, 2023 are not necessarily indicative of results that may be expected for any other interim period or for the year as a whole. Certain information and note disclosures normally included in the audited annual financial statements prepared in accordance with GAAP have been condensed or not repeated herein pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) with respect to interim financial reporting. The accompanying unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and accompanying notes for the year ended June 30, 2023 included in our Annual Report on Form 10-K for the fiscal year ended June 30, 2023 (“2023 Form 10-K”) filed with the SEC.

Significant Accounting Policies

Significant Accounting Policies

For further information regarding the Company’s significant accounting policies see Note 1—“Organizations and Summary of Significant Accounting Policies” in the 2023 Form 10-K. During the three and six months ended December 31, 2023 there were no significant updates to the Company’s significant accounting policies, other than as noted below and the adoption of the accounting standards noted herein.

Purchased Credit Deteriorated (“PCD”) Loans. Purchased loans that reflect a more-than-insignificant deterioration of credit since their origination are considered PCD. For PCD loans, the initial estimate of expected credit losses is recognized in the allowance for credit losses on the date of acquisition. The initial amortized cost of PCD loans is determined by reducing the loans’ par value by the acquisition date estimate of expected credit losses with any difference between the resulting amount and the loans’ purchase price recorded as a non-credit-related discount. Subsequent changes in the initial estimate of expected credit losses are recognized in the provision for credit losses in the Company's Consolidated Statements of Income.

New Accounting Standards

Recently Adopted Accounting Standards

The Financial Accounting Standards Board (“FASB”) issued three Accounting Standards Updates (“ASUs”) (2020-04, 2021-04 and 2022-06) all of which provide guidance to alleviate the burden in accounting for reference rate reform by allowing certain expedients and exceptions in applying generally accepted accounting principles to contracts, hedging relationships, and other transactions impacted by reference rate reform. The provisions apply only to those transactions that reference London Interbank Offered Rate (“LIBOR”) or another reference rate expected to be discontinued due to reference rate reform. Adoption of the provisions are optional and are effective from March 12, 2020 through December 31, 2024. The Company adopted these ASUs on July 1, 2023, and there was no impact on its financial condition or results of operations upon adoption.

In March 2022, the FASB issued ASU 2022-02 which eliminates the accounting guidance for troubled debt restructurings by creditors that have adopted the current expected credit losses (“CECL”) model and enhance the disclosure requirements for loan refinancings and restructurings made with borrowers experiencing financial difficulty. In addition, the amendments require a public business entity to disclose current-period gross write-offs for financing receivables and net investment in leases by year of origination in the vintage disclosures. The Company adopted this ASU on a prospective basis on July 1, 2023, and there was no impact on its financial condition or results of operations upon adoption. See Note 5—“Loans & Allowance for Credit Losses” for the new disclosures as a result of the adoption of this accounting guidance.

Accounting Standards Issued But Not Yet Adopted

In November 2023, the FASB issued ASU 2023-07 which requires disclosure of significant business segment expenses and a description of the composition of other segment expenses by business segment. The ASU also requires disclosure of the title and position of the chief operating decision maker and an explanation of how the chief operating decision maker uses the reported measures of segment profit or loss in assessing segment performance and deciding how to allocate resources. This standard is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. The Company does not expect any impact on its financial condition or results of operations upon adoption.

In December 2023, the FASB issued ASU 2023-09 which requires further granularity on the disclosure of income taxes, including:

•Certain prescribed line items in the income tax rate reconciliation presented both in dollar and percentage terms;

•Income taxes paid, income before income taxes and income taxes disaggregated by federal, state and foreign taxes; and

•Further disaggregation of income taxes paid by any individual jurisdiction equal to or exceeding five percent of total income taxes paid.

This standard is effective for fiscal years beginning after December 15, 2024. The Company does not expect any impact on its financial condition or results of operations upon adoption.

Credit Quality Indicators

Credit Quality Indicators. The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information and current economic trends. The Company analyzes loans individually by classifying the loans based on credit risk. The Company uses the following definitions for risk ratings.

Pass. Loans classified as pass are well protected by the current net worth and paying capacity of the obligor or by the fair value of any underlying collateral, less cost to acquire and sell in a timely manner.

Special Mention. Loans classified as special mention have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the institution’s credit position at some future date.

Substandard. Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected.

Doubtful. Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable.

The Company reviews and grades loans following a continuous review process, featuring coverage of all loan types and business lines at least quarterly. Continuous reviewing provides more effective risk monitoring because it immediately tests for potential impacts caused by changes in personnel, policy, products or underwriting standards.

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ACQUISITIONS (Tables)

6 Months Ended

Dec. 31, 2023

Business Combination and Asset Acquisition [Abstract]

Schedule of Asset Acquisition

The following table summarizes the PCD loans acquired in the FDIC Loan Purchase:

(Dollars in thousands)	Total
Unpaid principal balance	$	341,301
Non-credit discount	(100,686)
Allowance for credit losses at acquisition	(70,097)
Purchase price	$	170,518

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FAIR VALUE (Tables)

6 Months Ended

Dec. 31, 2023

Fair Value Disclosures [Abstract]

Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis

The following tables sets forth the Company’s financial assets and liabilities measured at fair value on a recurring basis at December 31, 2023 and June 30, 2023. Assets and liabilities are classified in their entirety based on the lowest level of input significant to the fair value measurement:

	December 31, 2023
(Dollars in thousands)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
ASSETS:
Trading securities		$	329	$	—	$	329
Available-for-sale securities:
Agency MBS1		28,664		—		28,664
Non-Agency MBS2		—		207,708		207,708
Municipal		3,440		—		3,440
Total—Available-for-sale securities:		$	32,104	$	207,708	$	239,812
Loans held for sale		$	13,468			$	13,468
Servicing rights		$	—	$	28,043	$	28,043
Other assets—Derivative instruments		$	96,084	$	—	$	96,084
LIABILITIES:
Accounts payable and other liabilities—Derivative instruments		$	92,144	$	—	$	92,144
	June 30, 2023
(Dollars in thousands)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
ASSETS:
Trading securities		$	758	$	—	$	758
Available-for-sale securities:
Agency MBS1		23,947		—		23,947
Non-Agency MBS2		—		205,005		205,005
Municipal		3,398		—		3,398
Total—Available-for-sale securities:		$	27,345	$	205,005	$	232,350
Loans held for sale		$	23,203	$	—	$	23,203
Servicing rights		$	—	$	25,443	$	25,443
Other assets—Derivative instruments		$	919	$	—	$	919
LIABILITIES:
Accounts payable and other liabilities—Derivative instruments		$	691	$	—	$	691

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 adjustable rate mortgages (“ARMs”).

Schedule of Additional Information About Assets Measured at Fair Value on a Recurring Basis and for which the Company has Utilized Level 3 Inputs to Determine Fair Value

The following tables present additional information about assets measured at fair value on a recurring basis and for which the Company has utilized Level 3 inputs to determine fair value:

	For the Three Months Ended
	December 31, 2023
(Dollars in thousands)	Available-for-Sale Securities: Non-Agency MBS		Servicing Rights1		Total
Opening balance	$	206,076	$	29,338	$	235,414
Total gains or losses for the period:
Included in earnings—Mortgage banking and servicing rights income	—		(1,494)		(1,494)
Included in other comprehensive income	1,876		—		1,876
Purchases, retentions, issues, sales and settlements:
Purchases/Retentions	—		199		199
Settlements	(244)		—		(244)
Closing balance	$	207,708	$	28,043	$	235,751
Change in unrealized gains or losses for the period included in earnings for assets held at the end of the reporting period	$	—	$	(1,494)	$	(1,494)
	For the Six Months Ended
	December 31, 2023
(Dollars in thousands)	Available-for-Sale Securities: Non-Agency MBS		Servicing Rights1		Total
Opening Balance	$	205,005	$	25,443	$	230,448
Total gains or losses for the period:
Included in earnings—Mortgage banking and servicing rights income	—		365		365
Included in other comprehensive income	3,191		—		3,191
Purchases, retentions, issues, sales and settlements:
Purchases/Retentions	—		2,235		2,235
Settlements	(488)		—		(488)
Closing balance	$	207,708	$	28,043	$	235,751
Change in unrealized gains or losses for the period included in earnings for assets held at the end of the reporting period	$	—	$	365	$	365

1 Earnings from servicing rights were attributable to: time and payoffs, representing a decrease in servicing rights value due to passage of time, including the impact from both regularly scheduled loan principal payments and loans that were paid down or paid off during the period of $0.3 million and $0.5 million for the three and six months ended December 31, 2023 and a decrease in servicing rights value resulting from market-driven changes in interest rates of $1.2 million three months ended December 31, 2023 and an increase of $0.9 million for the six months ended December 31, 2023. Additions to servicing rights were related to purchases and servicing rights retained upon sale of loans held for sale.

	For the Three Months Ended
	December 31, 2022
(Dollars in thousands)	Available-for-Sale Securities: Non-Agency MBS		Servicing Rights1		Derivative Instruments, net		Total
Opening balance	$	184,012	$	26,373	$	535	$	210,920
Total gains or losses for the period:
Included in earnings—Mortgage banking and servicing rights income	—		(1,046)		(517)		(1,563)
Included in other comprehensive income	(2,143)		—		—		(2,143)
Purchases, retentions, issues, sales and settlements:
Purchases/Retentions	—		199		—		199
Settlements	(6,746)		—		—		(6,746)
Closing balance	$	175,123	$	25,526	$	18	$	200,667
Change in unrealized gains or losses for the period included in earnings for assets held at the end of the reporting period	$	—	$	(1,046)	$	(517)	$	(1,563)
	For the Six Months Ended
	December 31, 2022
(Dollars in thousands)	Available-for-Sale Securities: Non-Agency MBS		Servicing Rights1		Derivative Instruments, net		Total
Opening Balance	$	186,814	$	25,213	$	464	$	212,491
Total gains or losses for the period:
Included in earnings—Mortgage banking and servicing rights income	—		(93)		(446)		(539)
Included in other comprehensive income	(4,616)		—		—		(4,616)
Purchases, retentions, issues, sales and settlements:
Purchases/Retentions	—		406		—		406
Settlements	(7,075)		—		—		(7,075)
Closing balance	$	175,123	$	25,526	$	18	$	200,667
Change in unrealized gains or losses for the period included in earnings for assets held at the end of the reporting period	$	—	$	(93)	$	(446)	$	(539)

1 Earnings from servicing rights were attributable to: time and payoffs, representing a decrease in servicing rights value due to passage of time, including the impact from both regularly scheduled loan principal payments and loans that were paid down or paid off during the period of $0.1 million and $0.5 million for the three and six months ended December 31, 2022 and an decrease in servicing rights value resulting from market-driven changes in interest rates of $0.9 million for the three months ended December 31, 2022 and an increase of $0.4 million for the six months ended December 31, 2022. Additions to servicing rights were retained upon sale of loans held for sale.

Schedule of Quantitative Information About Level 3 Fair Value Measurements

The table below summarizes the quantitative information about Level 3 fair value measurements:

	December 31, 2023
(Dollars in thousands)	Fair Value		Valuation Technique	Unobservable Input	Range (Weighted Average)1
Securities – Non-agency MBS	$	207,708	Discounted Cash Flow	Projected Constant Prepayment Rate, Projected Constant Default Rate, Projected Loss Severity, Discount Rate over SOFR Swaps	0.0 to 59.2% (34.0%) 0.0 to 31.4% (2.5%) 0.0 to 68.7% (28.5%) 2.6 to 6.5% (2.6%)
Servicing Rights	$	28,043	Discounted Cash Flow	Projected Constant Prepayment Rate, Life (in years), Discount Rate	5.2 to 38.1% (12.2%) 1.6 to 15.2 (7.6) 9.5 to 11.5% (9.8%)

	June 30, 2023
(Dollars in thousands)	Fair Value		Valuation Technique	Unobservable Input	Range (Weighted Average)1
Securities – Non-agency MBS	$	205,005	Discounted Cash Flow	Projected Constant Prepayment Rate, Projected Constant Default Rate, Projected Loss Severity, Discount Rate over LIBOR	0.0 to 59.7% (32.0%) 0.0 to 7.5% (2.4%) 0.0 to 68.7% (28.5%) 2.6 to 7.5% (2.7%)
Servicing Rights	$	25,443	Discounted Cash Flow	Projected Constant Prepayment Rate, Life (in years), Discount Rate	6.1% to 40.1% (12.6%) 1.8 to 10.9 (7.7) 9.5 to 11.5% (9.6%)

1 The weighted average for Securities - Non-agency MBS is based on the relative fair value of the securities and for Servicing Rights is based on the relative unpaid principal of the loans being serviced.

The following table presents quantitative information about Level 3 fair value measurements for other real estate owned measured at fair value on a non-recurring basis:

	December 31, 2023
(Dollars in thousands)	Fair Value		Valuation Technique	Unobservable Input	Range (Weighted Average) 1
Other real estate owned:
Single family real estate	$	5,574	Sales comparison approach	Differences between the comparable sales	62.1 to 93.6% (62.1%)

	June 30, 2023
(Dollars in thousands)	Fair Value		Valuation Technique	Unobservable Input	Range (Weighted Average) 1
Other real estate owned:
Single family real estate	$	5,574	Sales comparison approach	Differences between the comparable sales	62.1 to 93.6% (62.1%)
Multifamily real estate	$	1,392	Sales comparison approach and income approach	Differences between the comparable sales and differences in net operating income expectations, capitalization rate	49.8 to 54.5% (49.8%)

1 For other real estate owned the ranges shown may vary positively or negatively based on the comparable sales reported in the current appraisal. In certain instances, the range can be significant due to small sample sizes and in some cases the asset being valued having limited comparable sales with similar characteristics at the time the current appraisal is conducted. The weighted average is based on the relative fair value of comparable sales.

Schedule of Aggregate Fair Value, Contractual Balance, and Gains of Loans Held For Sale

The aggregate fair value of loans held for sale, carried at fair value, contractual balance (including accrued interest), and unrealized gain were:

(Dollars in thousands)	December 31, 2023		June 30, 2023
Aggregate fair value	$	13,468	$	23,203
Contractual balance	13,013		22,844
Unrealized gain	$	455	$	359

The total interest income and amount of gains and losses from changes in fair value included in earnings for loans held for sale were:

	For the Three Months Ended				For the Six Months Ended
	December 31,				December 31,
(Dollars in thousands)	2023		2022		2023		2022
Interest income	$	141	$	103	$	330	$	153
Change in fair value	33		(422)		(96)		(331)
Total	$	174	$	(319)	$	234	$	(178)

Schedule of Fair Value Assets Measured on Nonrecurring Basis

The table below summarizes assets measured at fair value on a non-recurring basis:

	December 31, 2023
(Dollars in thousands)	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Balance
Other real estate owned and repossessed vehicles:
Single family real estate	$	—	$	—	$	5,574	$	5,574
Autos	$	—	$	—	$	1,743	$	1,743
Total	$	—	$	—	$	7,317	$	7,317
	June 30, 2023
(Dollars in thousands)	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Balance
Other real estate owned and repossessed vehicles:
Single family real estate	$	—	$	—	$	5,574	$	5,574
Multifamily real estate	—		—		1,392		1,392
Autos	—		—		$	1,133	1,133
Total	$	—	$	—	$	8,099	$	8,099

Schedule of Carrying Amounts and Estimated Fair Values of Financial Instruments at Period-end

Carrying amounts and estimated fair values of financial instruments at December 31, 2023 and June 30, 2023 were:

	December 31, 2023
			Fair Value
(Dollars in thousands)	Carrying Amount		Level 1		Level 2		Level 3		Total Fair Value
Financial assets:
Cash, cash equivalents and segregated cash	$	1,763,723	$	1,763,723	$	—	$	—	$	1,763,723
Trading securities	329		—		329		—		329
Available-for-sale securities	239,812		—		32,104		207,708		239,812
Stock of regulatory agencies	21,534		—		21,534		—		21,534
Loans held for sale, at fair value	13,468		—		13,468		—		13,468
Loans held for investment—net	18,264,354		—		—		18,313,778		18,313,778
Securities borrowed	145,176		—		—		155,513		155,513
Customer, broker-dealer and clearing receivables	265,857		—		—		278,219		278,219
Servicing rights	28,043		—		—		28,043		28,043
Other assets - derivative instruments	96,084		—		96,084		—		96,084
Financial liabilities:
Total deposits	18,203,912		—		18,120,805		—		18,120,805
Advances from the Federal Home Loan Bank	90,000		—		84,150		—		84,150
Borrowings, subordinated notes and debentures	341,086		—		314,321		—		314,321
Securities loaned	155,492		—		—		155,492		155,492
Customer, broker-dealer and clearing payables	368,885		—		—		368,885		368,885
Accounts payable and other liabilities - derivative instruments	92,144		—		92,144		—		92,144

	June 30, 2023
			Fair Value
(Dollars in thousands)	Carrying Amount		Level 1		Level 2		Level 3		Total Fair Value
Financial assets:
Cash, cash equivalents and segregated cash	$	2,382,086	$	2,382,086	$	—	$	—	$	2,382,086
Trading securities	758		—		758		—		758
Available-for-sale securities	232,350		—		27,345		205,005		232,350
Stock of regulatory agencies	21,510		—		21,510		—		21,510
Loans held for sale, at fair value	23,203		—		23,203		—		23,203
Loans held for sale, at lower of cost or fair value	776		—		—		780		780
Loans held for investment—net	16,456,728		—		—		16,417,183		16,417,183
Securities borrowed	134,339		—		—		143,461		143,461
Customer, broker-dealer and clearing receivables	374,074		—		—		386,082		386,082
Servicing rights	25,443		—		—		25,443		25,443
Other assets - derivative instruments	919		—		919		—		919
Financial liabilities:
Total deposits	17,123,108		—		17,064,084		—		17,064,084
Advances from the Federal Home Loan Bank	90,000		—		83,192		—		83,192
Borrowings, subordinated notes and debentures	361,779		—		327,564		—		327,564
Securities loaned	159,832		—		—		159,416		159,416
Customer, broker-dealer and clearing payables	445,477		—		—		445,447		445,447
Accounts payable and other liabilities - derivative instruments	691		—		691		—		691

XML

AVAILABLE-FOR-SALE SECURITIES (Tables)

6 Months Ended

Dec. 31, 2023

Investments, Debt and Equity Securities [Abstract]

Schedule of Amortized Cost, Carrying Amount and Fair Value of Available-for-sale Securities

The amortized cost and fair value of available-for-sale securities were:

	December 31, 2023
(Dollars in thousands)	Amortized Cost		Unrealized Gains		Unrealized Losses		Fair Value
Mortgage-backed securities (MBS):
U.S. agencies1	$	31,048	$	238	$	(2,622)	$	28,664
Non-agency2	209,783		911		(2,986)		207,708
Total mortgage-backed securities	240,831		1,149		(5,608)		236,372
Non-MBS:
Municipal	3,721		—		(281)		3,440
Total Non-MBS	3,721		—		(281)		3,440
Total available-for-sale securities	$	244,552	$	1,149	$	(5,889)	$	239,812
	June 30, 2023
(Dollars in thousands)	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 securities	237,295		711		(9,054)		228,952
Non-MBS:
Municipal	3,656		—		(258)		3,398
Total Non-MBS	3,656		—		(258)		3,398
Total available-for-sale securities	$	240,951	$	711	$	(9,312)	$	232,350

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.

The following table sets forth the expected maturity distribution of our mortgage-backed securities, which is based on assumed prepayment rates, and the maturity distribution of our non-MBS, which is based on the contractual maturity:

	As of December 31, 2023
(Dollars in thousands)	Total Amount		Due Within One Year		Due after One but within Five Years		Due after Five but within Ten Years		Due After Ten Years
MBS:
Agency1	$	31,048	$	6,907	$	14,543	$	7,222	$	2,376
Non-Agency2	$	209,783	$	163,929	$	43,425	$	1,534	$	895
Total MBS	$	240,831	$	170,836	$	57,968	$	8,756	$	3,271
Non-MBS:
Municipal	$	3,721	$	—	$	—	$	—	$	3,721
Total Non-MBS	$	3,721	$	—	$	—	$	—	$	3,721
Available-for-sale—Amortized cost	$	244,552	$	170,836	$	57,968	$	8,756	$	6,992
Available-for-sale—Fair value	$	239,812	$	168,400	$	56,864	$	8,181	$	6,367

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 pools of 1-4 family residential, Alt-A or pay-option ARM mortgages and commercial mortgages.

Schedule of Securities in a Continuous Unrealized Loss Position

Securities with unrealized losses, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, were:

	December 31, 2023
	Available-for-sale securities in loss position for
	Less Than 12 Months				More Than 12 Months				Total
(Dollars in thousands)	Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses
MBS:
U.S. agencies	$	25	$	—	$	20,762	$	(2,622)	$	20,787	$	(2,622)
Non-agency	42,324		(71)		133,670		(2,915)		175,994		(2,986)
Total MBS	42,349		(71)		154,432		(5,537)		196,781		(5,608)
Non-MBS:
Municipal	—		—		3,440		(281)		3,440		(281)
Total Non-MBS	—		—		3,440		(281)		3,440		(281)
Total available-for-sale securities	$	42,349	$	(71)	$	157,872	$	(5,818)	$	200,221	$	(5,889)
	June 30, 2023
	Available-for-sale securities in loss position for
	Less Than 12 Months				More Than 12 Months				Total
(Dollars in thousands)	Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses
MBS:
U.S. agencies	$	3,182	$	(16)	$	20,642	$	(3,061)	$	23,824	$	(3,077)
Non-agency	107,982		(1,808)		95,385		(4,169)		203,367		(5,977)
Total MBS	111,164		(1,824)		116,027		(7,230)		227,191		(9,054)
Non-MBS:
Municipal	—		—		3,398		(258)		3,398		(258)
Total Non-MBS	—		—		3,398		(258)		3,398		(258)
Total available-for-sale securities	$	111,164	$	(1,824)	$	119,425	$	(7,488)	$	230,589	$	(9,312)

Schedule of Components of Other Comprehensive Income (Loss)

The components of the Company’s accumulated other comprehensive income (loss) are as follows:

(Dollars in thousands)	December 31, 2023		June 30, 2023
Available-for-sale securities—net unrealized gains (losses)	$	(4,740)	$	(8,601)
Available-for-sale securities—non-credit related	(845)		(845)
Subtotal	(5,585)		(9,446)
Tax benefit (expense)	1,666		2,836
Net unrealized gain (loss) on investment securities in accumulated other comprehensive income (loss)	$	(3,919)	$	(6,610)

XML

LOANS & ALLOWANCE FOR CREDIT LOSSES (Tables)

6 Months Ended

Dec. 31, 2023

Receivables [Abstract]

Schedule of Composition of the Loan Portfolio

The following table sets forth the composition of the loan portfolio:

(Dollars in thousands)	December 31, 2023		June 30, 2023
Single Family - Mortgage & Warehouse	$	4,092,104	$	4,173,833
Multifamily and Commercial Mortgage1	4,065,019		3,082,225
Commercial Real Estate1	6,043,400		6,199,818
Commercial & Industrial - Non-RE	4,177,461		2,639,650
Auto & Consumer	477,275		546,264
Other	5,150		10,236
Total gross loans	18,860,409		16,652,026
Allowance for credit losses - loans	(251,749)		(166,680)
Unaccreted premiums (discounts) and loan fees	(344,306)		(28,618)
Total net loans	$	18,264,354	$	16,456,728

1 Includes PCD loans of $296.7 million in Multifamily and Commercial Mortgage and $44.5 million in Commercial Real Estate as of December 31, 2023. For further detail on PCD loans refer to Note 1—“Summary of Significant Accounting Policies”.

Schedule of Allowance for Credit Losses on Financing Receivables

The following table presents the components of the provision for credit losses:

	For the Three Months Ended				For the Six Months Ended
	December 31,				December 31,
(Dollars in thousands)	2023		2022		2023		2022
Provision for credit losses - loans	$	12,500	$	3,500	$	18,250	$	12,250
Provision for credit losses - unfunded lending commitments	1,000		(499)		2,250		(499)
Total provision for credit losses	$	13,500	$	3,001	$	20,500	$	11,751

The following tables summarize activity in the allowance for credit losses - loans by portfolio segment:

	For the Three Months Ended December 31, 2023
(Dollars in thousands)	Single Family-Mortgage & Warehouse		Multifamily and Commercial Mortgage		Commercial Real Estate		Commercial & Industrial - Non-RE		Auto & Consumer		Other		Total
Balance at October 1, 2023	$	17,426	$	15,874	$	71,355	$	54,592	$	11,614	$	9	$	170,870
Allowance for credit losses at acquisition of PCD loans	—		58,972		11,125		—		—		—		$	70,097
Provision (benefit) for credit losses - loans	(2,080)		3,507		(4,702)		14,695		1,080		—		12,500
Charge-offs	—		—		—		(86)		(2,321)		—		(2,407)
Recoveries	10		—		—		—		679		—		689
Balance at December 31, 2023	$	15,356	$	78,353	$	77,778	$	69,201	$	11,052	$	9	$	251,749

	For the Three Months Ended December 31, 2022
(Dollars in thousands)	Single Family-Mortgage & Warehouse		Multifamily and Commercial Mortgage		Commercial Real Estate		Commercial & Industrial - Non-RE		Auto & Consumer		Other		Total
Balance at October 1, 2022	$	18,039	$	14,649	$	73,776	$	34,383	$	14,595	$	30	$	155,472
Provision (benefit) for credit losses - loans	1,878		808		(1,608)		1,655		776		(9)		3,500
Charge-offs	(294)		—		—		—		(1,871)		—		(2,165)
Recoveries	8		—		—		—		403		—		411
Balance at December 31, 2022	$	19,631	$	15,457	$	72,168	$	36,038	$	13,903	$	21	$	157,218

	For the Six Months Ended December 31, 2023
(Dollars in thousands)	Single Family-Mortgage & Warehouse		Multifamily and Commercial Mortgage		Commercial Real Estate		Commercial & Industrial - Non-RE		Auto & Consumer		Other		Total
Balance at July 1, 2023	$	17,503	$	16,848	$	72,755	$	46,347	$	13,212	$	15	$	166,680
Allowance for credit losses at acquisition of PCD loans	—		58,972		11,125		—		—		—		70,097
Provision (benefit) for credit losses - loans	(2,090)		2,533		(6,102)		22,940		975		(6)		18,250
Charge-offs	(80)		—		—		(86)		(4,602)		—		(4,768)
Recoveries	23		—		—		—		1,467		—		1,490
Balance at December 31, 2023	$	15,356	$	78,353	$	77,778	$	69,201	$	11,052	$	9	$	251,749

	For the Six Months Ended December 31, 2022
(Dollars in thousands)	Single Family-Mortgage & Warehouse		Multifamily and Commercial Mortgage		Commercial Real Estate		Commercial & Industrial - Non-RE		Auto & Consumer		Other		Total
Balance at July 1, 2022	$	19,670	$	14,655	$	69,339	$	30,808	$	14,114	$	31	$	148,617
Provision (benefit) for credit losses - loans	236		802		2,829		5,212		3,181		(10)		12,250
Charge-offs	(298)		—		—		—		(4,233)		—		(4,531)
Recoveries	23		—		—		18		841		—		882
Balance at December 31, 2022	$	19,631	$	15,457	$	72,168	$	36,038	$	13,903	$	21	$	157,218

The following tables present a summary of the activity in the allowance for credit losses for off-balance sheet lending commitments:

	Three Months Ended December 31,
(Dollars in thousands)	2023		2022
Balance at October 1,	$	11,723	$	10,973
Provision for credit losses - unfunded lending commitments	1,000		(499)
Balance at December 31,	$	12,723	$	10,474
	Six Months Ended December 31,
(Dollars in thousands)	2023		2022
Balance at July 1,	$	10,473	$	10,973
Provision for credit losses - unfunded lending commitments	2,250		(499)
Balance at December 31,	$	12,723	$	10,474

Schedule of Real Estate Loans, Loan-to-Value Ratio

The following table presents loan-to-value (“LTV”) for the Company’s real estate loans outstanding as of December 31, 2023:

	Total Real Estate Loans				Single Family - Mortgage & Warehouse		Multifamily and Commercial Mortgage		Commercial Real Estate
Weighted-Average LTV	47.8	%			56.4	%	53.3	%	38.8	%
Median LTV	53.0	%	—	%	55.0	%	50.0	%	35.0	%

Schedule of Outstanding Principal Balance on Loans Performing and Nonaccrual

	December 31, 2023
(Dollars in thousands)	Single Family-Mortgage & Warehouse		Multifamily and Commercial Mortgage		Commercial Real Estate		Commercial & Industrial - Non-RE		Auto & Consumer		Other		Total
Performing	$	4,037,817	$	4,027,695	$	6,017,298	$	4,174,472	$	475,505	$	5,114	$	18,737,901
Nonaccrual	$	54,287	$	37,324	$	26,102	$	2,989	$	1,770	$	36	$	122,508
Total	$	4,092,104	$	4,065,019	$	6,043,400	$	4,177,461	$	477,275	$	5,150	$	18,860,409
Nonaccrual loans to total loans													0.65		%

	June 30, 2023
(Dollars in thousands)	Single Family-Mortgage & Warehouse		Multifamily and Commercial Mortgage		Commercial Real Estate		Commercial & Industrial - Non-RE		Auto & Consumer		Other		Total
Performing	$	4,143,119	$	3,047,122	$	6,184,966	$	2,636,661	$	544,807	$	8,191	$	16,564,866
Nonaccrual	30,714		35,103		14,852		2,989		1,457		2,045		87,160
Total	$	4,173,833	$	3,082,225	$	6,199,818	$	2,639,650	$	546,264	$	10,236	$	16,652,026
Nonaccrual loans to total loans													0.52		%

Schedule of Composition of Loan and Lease Portfolio by Credit Quality Indicators

The following tables presents the composition of loans by portfolio segment, fiscal year of origination and credit quality indicator, and the amount of gross charge-offs for the six months ended December 31, 2023:

	December 31, 2023
	Loans Held for Investment by Fiscal Year of Origination												Revolving Loans		Total
(Dollars in thousands)	2024		2023		2022		2021		2020		Prior
Single Family-Mortgage & Warehouse
Pass	$	309,717	$	648,620	$	1,297,738	$	501,469	$	309,309	$	779,468	$	98,848	$	3,945,169
Special Mention	—		10,593		13,575		3,928		8,851		38,883		—		75,830
Substandard	—		285		4,292		3,910		14,999		47,619		—		71,105
Doubtful	—		—		—		—		—		—		—		—
Total	309,717		659,498		1,315,605		509,307		333,159		865,970		98,848		4,092,104
Gross charge-offs	—		—		—		—		—		80		—		80
Multifamily and Commercial Mortgage
Pass	22,417		758,825		1,089,359		664,917		562,656		880,855		—		3,979,029
Special Mention	—		9,096		1,985		—		459		1,085		—		12,625
Substandard	—		4,992		7,250		10,457		33,075		17,591		—		73,365
Doubtful	—		—		—		—		—		—		—		—
Total	22,417		772,913		1,098,594		675,374		596,190		899,531		—		4,065,019
Gross charge-offs	—		—		—		—		—		—		—		—
Commercial Real Estate
Pass	1,071,507		1,710,690		1,737,152		521,677		17,816		53,000		780,174		5,892,016
Special Mention	—		—		—		—		—		—		—		—
Substandard	—		18,657		52,338		34,250		15,000		31,139		—		151,384
Doubtful	—		—		—		—		—		—		—		—
Total	1,071,507		1,729,347		1,789,490		555,927		32,816		84,139		780,174		6,043,400
Gross charge-offs	—		—		—		—		—		—		—		—
Commercial & Industrial - Non-RE
Pass	486,830		411,930		322,969		43,934		7,630		4,427		2,752,431		4,030,151
Special Mention	—		37,404		35,179		—		10,554		—		45,528		128,665
Substandard	—		—		14,624		1,032		—		2,989		—		18,645
Doubtful	—		—		—		—		—		—		—		—
Total	486,830		449,334		372,772		44,966		18,184		7,416		2,797,959		4,177,461
Gross charge-offs	—		—		—		—		—		86		—		86
Auto & Consumer
Pass	27,105		136,439		215,435		55,732		18,658		20,624		—		473,993
Special Mention	—		462		644		100		34		46		—		1,286
Substandard	—		426		925		372		127		146		—		1,996
Doubtful	—		—		—		—		—		—		—		—
Total	27,105		137,327		217,004		56,204		18,819		20,816		—		477,275
Gross charge-offs	—		1,435		2,111		755		131		170		—		4,602
Other
Pass	3,061		—		—		1,071		—		982		—		5,114
Special Mention	—		—		—		—		—		—		—		—
Substandard	—		—		—		36		—		—		—		36
Doubtful	—		—		—		—		—		—		—		—
Total	3,061		—		—		1,107		—		982		—		5,150
Gross charge-offs	—		—		—		—		—		—		—		—
Total
Pass	1,920,637		3,666,504		4,662,653		1,788,800		916,069		1,739,356		3,631,453		18,325,472
Special Mention	—		57,555		51,383		4,028		19,898		40,014		45,528		218,406
Substandard	—		24,360		79,429		50,057		63,201		99,484		—		316,531
Doubtful	—		—		—		—		—		—		—		—
Total	$	1,920,637	$	3,748,419	$	4,793,465	$	1,842,885	$	999,168	$	1,878,854	$	3,676,981	$	18,860,409
As a % of total gross loans	10.18%		19.87%		25.42%		9.77%		5.30%		9.96%		19.50%		100.0%
Total gross charge-offs	$	—	$	1,435	$	2,111	$	755	$	131	$	336	$	—	$	4,768

	June 30, 2023
	Loans Held for Investment by Fiscal Year of Origination												Revolving Loans		Total
(Dollars in thousands)	2023		2022		2021		2020		2019		Prior
Single Family-Mortgage & Warehouse
Pass	$	730,498	$	1,346,804	$	522,873	$	324,458	$	255,547	$	639,401	$	243,175	$	4,062,756
Special Mention	—		7,280		7,026		8,303		12,942		18,244		6,614		60,409
Substandard	—		5,188		4,686		14,384		2,024		24,386		—		50,668
Doubtful	—		—		—		—		—		—		—		—
Total	730,498		1,359,272		534,585		347,145		270,513		682,031		249,789		4,173,833
Multifamily and Commercial Mortgage
Pass	558,787		975,186		498,744		314,383		224,592		404,222		—		2,975,914
Special Mention	—		9,691		4,636		1,360		7,705		—		—		23,392
Substandard	—		3,145		5,686		38,857		6,181		29,050		—		82,919
Doubtful	—		—		—		—		—		—		—		—
Total	558,787		988,022		509,066		354,600		238,478		433,272		—		3,082,225
Commercial Real Estate
Pass	1,867,476		2,323,095		631,500		87,059		117,928		—		960,024		5,987,082
Special Mention	29,000		43,427		—		8,457		800		15,062				96,746
Substandard	—		29,200		37,951		18,500		15,487		14,852		—		115,990
Doubtful	—		—		—		—		—		—		—		—
Total	1,896,476		2,395,722		669,451		114,016		134,215		29,914		960,024		6,199,818
Commercial & Industrial - Non-RE
Pass	488,120		358,214		29,777		14,794		2,098		—		1,707,619		2,600,622
Special Mention	—		8,221		—		11,413		—		—		600		20,234
Substandard	—		17,762		1,032		—		—		—		—		18,794
Doubtful	—		—		—		—		—		—		—		—
Total	488,120		384,197		30,809		26,207		2,098		—		1,708,219		2,639,650
Auto & Consumer
Pass	161,831		256,154		70,223		24,906		19,897		9,929		—		542,940
Special Mention	423		632		453		60		14		6		—		1,588
Substandard	350		785		233		133		162		73		—		1,736
Doubtful	—		—		—		—		—		—		—		—
Total	162,604		257,571		70,909		25,099		20,073		10,008		—		546,264
Other
Pass	5,721		—		1,306		—		—		1,164		—		8,191
Special Mention	—		—		—		—		—		—		—		—
Substandard	—		2,000		45		—		—		—		—		2,045
Doubtful	—		—		—		—		—		—		—		—
Total	5,721		2,000		1,351		—		—		1,164		—		10,236
Total
Pass	3,812,433		5,259,453		1,754,423		765,600		620,062		1,054,716		2,910,818		16,177,505
Special Mention	29,423		69,251		12,115		29,593		21,461		33,312		7,214		202,369
Substandard	350		58,080		49,633		71,874		23,854		68,361		—		272,152
Doubtful	—		—		—		—		—		—		—		—
Total	$	3,842,206	$	5,386,784	$	1,816,171	$	867,067	$	665,377	$	1,156,389	$	2,918,032	$	16,652,026
As a % of total gross loans	23.07%		32.35%		10.91%		5.21%		4.00%		6.94%		17.52%		100.0%

Schedule of Past Due Loan and Leases

The following tables provide the aging of loans by portfolio segment:

	December 31, 2023
(Dollars in thousands)	Current			30-59 Days			60-89 Days			90+ Days			Total
Single Family-Mortgage & Warehouse	$	3,994,250		$	20,770		$	10,364		$	66,720		$	4,092,104
Multifamily and Commercial Mortgage	4,022,438			8,109			1,085			33,387			4,065,019
Commercial Real Estate	6,001,011			—			—			42,389			6,043,400
Commercial & Industrial - Non-RE	4,177,461			—			—			—			4,177,461
Auto & Consumer	468,133			6,805			1,311			1,026			477,275
Other	5,150			—			—			—			5,150
Total	$	18,668,443		$	35,684		$	12,760		$	143,522		$	18,860,409
As a % of total gross loans	98.98		%	0.19		%	0.07		%	0.76		%	100.00		%

	June 30, 2023
(Dollars in thousands)	Current			30-59 Days			60-89 Days			90+ Days			Total
Single Family-Mortgage & Warehouse	$	4,102,150		$	20,832		$	7,971		$	42,880		$	4,173,833
Multifamily and Commercial Mortgage	3,048,217			2,705			1,124			30,179			3,082,225
Commercial Real Estate	6,173,716			11,250			—			14,852			6,199,818
Commercial & Industrial - Non-RE	2,639,650			—			—			—			2,639,650
Auto & Consumer	537,181			6,529			1,707			847			546,264
Other	8,024			68			1			2,143			10,236
Total	$	16,508,938		$	41,384		$	10,803		$	90,901		$	16,652,026
As a % of total gross loans	99.14		%	0.25		%	0.06		%	0.55		%	100.00		%

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DERIVATIVES (Tables)

6 Months Ended

Dec. 31, 2023

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Derivative Instruments

The following table presents the fair values and notional amounts of the Company’s derivative instruments. While the notional amounts give an indication of the volume of the Company’s derivatives activity, the notional amounts significantly exceed, in

the Company’s view, the possible losses that could arise from such transactions. For most derivative contracts, the notional amount is not exchanged, rather it is a reference amount used to calculate payments.

	Interest Rate Contracts
(Dollars in thousands)	As of 12/31/2023		As of 6/30/2023
Derivative Assets — Fair Value	$	96,084	$	919
Derivative Liabilities — Fair Value	92,144		691
Derivative Assets — Notional	$	1,316,516	$	231,709
Derivative Liabilities — Notional	1,319,604		204,522

Schedule of Derivative Instruments, Gain (Loss)

The following table presents the gains (losses) related to the Company’s derivative instrument activity recognized in the Consolidated Statements of Income:

	Three Months Ended				Six Months Ended
	December 31,				December 31,
(Dollars in thousands)	2023		2022		2023		2022
Banking and service fees	$	50	$	119	$	390	$	119
Mortgage banking and servicing rights income	231		23		508		285

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STOCKHOLDERS’ EQUITY AND STOCK-BASED COMPENSATION (Tables)

6 Months Ended

Dec. 31, 2023

Share-Based Payment Arrangement [Abstract]

Schedule of Status and Changes in Restricted Stock Grants

The following table presents the status and changes in RSUs:

	RSUs	Weighted-Average Grant-Date Fair Value
Non-vested balance at June 30, 2023	1,407,882	$	41.53
Granted	643,746	42.66
Vested	(363,263)	37.65
Forfeited	(42,012)	40.33
Non-vested balance at December 31, 2023	1,646,353	$	42.86

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EARNINGS PER COMMON SHARE (Tables)

6 Months Ended

Dec. 31, 2023

Earnings Per Share [Abstract]

Schedule of Calculation of Basic and Diluted EPS

The following table presents the calculation of basic and diluted earnings per common share (“EPS”):

	Three Months Ended				Six Months Ended
	December 31,				December 31,
(Dollars in thousands, except per share data)	2023		2022		2023		2022
Earnings Per Common Share
Net income	$	151,771	$	81,552	$	234,416	$	139,959
Average common shares issued and outstanding	57,216,621		59,999,573		58,082,830		59,927,078
Earnings per common share	$	2.65	$	1.36	$	4.04	$	2.34
Diluted Earnings Per Common Share
Net income	$	151,771	$	81,552	$	234,416	$	139,959
Average common shares issued and outstanding	57,216,621		59,999,573		58,082,830		59,927,078
Dilutive effect of average unvested RSUs	716,213		515,062		847,597		613,275
Average dilutive common shares outstanding	57,932,834		60,514,635		58,930,427		60,540,353
Diluted earnings per common share	$	2.62	$	1.35	$	3.98	$	2.31
Weighted average antidilutive common stock equivalents (excluded from the computation of EPS)	1,598		249,075		837		51,793

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COMMITMENTS AND CONTINGENCIES (Tables)

6 Months Ended

Dec. 31, 2023

Commitments and Contingencies Disclosure [Abstract]

Schedule of Maturities of Lease Liabilities

The following table represents maturities of lease liabilities:

(Dollars in thousands)	As of December 31, 2023
Within one year	$	12,357
After one year and within two years	12,728
After two years and within three years	12,438
After three years and within four years	12,380
After four years within five years	10,570
After five years	17,367
Total lease payments	77,840
Less: amount representing interest	(7,299)
Total lease liability	$	70,541

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SEGMENT REPORTING AND REVENUE INFORMATION (Tables)

6 Months Ended

Dec. 31, 2023

Segment Reporting [Abstract]

Schedule of Segment Reporting Information, by Segment

The following tables present the operating results, goodwill, and assets of the segments:

	For the Three Months Ended December 31, 2023
(Dollars in thousands)	Banking Business		Securities Business		Corporate/Eliminations		Axos Consolidated
Net interest income	$	226,635	$	6,080	$	(4,109)	$	228,606
Provision for credit losses	13,500		—		—		13,500
Non-interest income	103,779		32,641		(12,291)		124,129
Non-interest expense	102,282		27,968		(8,411)		121,839
Income before taxes	$	214,632	$	10,753	$	(7,989)	$	217,396
	For the Three Months Ended December 31, 2022
(Dollars in thousands)	Banking Business		Securities Business		Corporate/Eliminations		Axos Consolidated
Net interest income	$	198,545	$	4,876	$	(3,511)	$	199,910
Provision for credit losses	3,001		—		—		3,001
Non-interest income	10,557		36,004		(18,232)		28,329
Non-interest expense	96,783		25,271		(14,027)		108,027
Income before taxes	$	109,318	$	15,609	$	(7,716)	$	117,211
	For the Six Months Ended December 31, 2023
(Dollars in thousands)	Banking Business		Securities Business		Corporate/Eliminations		Axos Consolidated
Net interest income	$	435,854	$	11,622	$	(7,715)	$	439,761
Provision for credit losses	20,500		—		—		20,500
Non-interest income	116,336		67,196		(24,896)		158,636
Non-interest expense	203,068		55,491		(16,214)		242,345
Income before taxes	$	328,622	$	23,327	$	(16,397)	$	335,552
	For the Six Months Ended December 31, 2022
(Dollars in thousands)	Banking Business		Securities Business		Corporate/Eliminations		Axos Consolidated
Net interest income	$	378,275	$	9,151	$	(7,041)	$	380,385
Provision for credit losses	11,751		—		—		11,751
Non-interest income	21,269		65,169		(30,901)		55,537
Non-interest expense	197,579		49,786		(23,251)		224,114
Income before taxes	$	190,214	$	24,534	$	(14,691)	$	200,057

	As of December 31, 2023
(Dollars in thousands)	Banking Business		Securities Business		Corporate/Eliminations		Axos Consolidated
Goodwill	$	35,721	$	61,952	$	—	$	97,673
Total Assets	$	20,757,856	$	819,744	$	46,164	$	21,623,764
	As of June 30, 2023
(Dollars in thousands)	Banking Business		Securities Business		Corporate/Eliminations		Axos Consolidated
Goodwill	$	35,721	$	61,952	$	—	$	97,673
Total Assets	$	19,396,167	$	899,496	$	52,806	$	20,348,469

Schedule of Other Nonoperating Income (Expense)

The following presents non-interest income, segregated by revenue streams in-scope and out-of-scope of Accounting Standards Codification (“ASC”) 606 for the periods indicated. For further information of the Company’s recognition of revenue and ASC 606 see Note 1—“Organizations and Summary of Significant Accounting Policies” in the 2023 Form 10-K.

	For the Three Months Ended				For the Six Months Ended
	December 31,				December 31,
(Dollars in thousands)	2023		2022		2023		2022
Advisory fee income	$	7,362	$	6,983	$	15,581	$	13,942
Broker-dealer clearing fees	6,068		4,425		11,603		9,658
Deposit service fees	2,414		2,202		3,094		3,308
Card fees	732		2,144		1,414		2,933
Bankruptcy trustee and fiduciary service fees	1,397		2,167		2,791		2,940
Non-interest income (in-scope of ASC 606)	17,973		17,921		34,483		32,781
Non-interest income (out-of-scope of ASC 606)	106,156		10,408		124,153		22,756
Total non-interest income	$	124,129	$	28,329	$	158,636	$	55,537

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Sep. 30, 2023	Jun. 30, 2023	Dec. 31, 2022	Sep. 30, 2022	Jun. 30, 2022
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Allowance for credit losses at acquisition	$ 251,749	$ 170,870	$ 166,680	$ 157,218	$ 155,472	$ 148,617
Commercial Real Estate
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Allowance for credit losses at acquisition	$ 77,778	$ 71,355	$ 72,755	$ 72,168	$ 73,776	$ 69,339

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ACQUISITIONS (Details) $ in Thousands			3 Months Ended		6 Months Ended
	Dec. 07, 2023 USD ($) loanPortfolio	Aug. 23, 2023 USD ($)	Dec. 31, 2023 USD ($)	Dec. 31, 2022 USD ($)	Dec. 31, 2023 USD ($) segment	Dec. 31, 2022 USD ($)	Sep. 30, 2023 USD ($)	Jun. 30, 2023 USD ($)	Sep. 30, 2022 USD ($)	Jun. 30, 2022 USD ($)
Asset Acquisition [Line Items]
Number of loan portfolio segments	2				6
Unpaid principal balance			$ 18,264,354		$ 18,264,354			$ 16,456,728
Allowance for credit losses at acquisition			251,749	$ 157,218	251,749	$ 157,218	$ 170,870	166,680	$ 155,472	$ 148,617
Gain on acquisition			92,397	0	92,397	0
Commercial Real Estate
Asset Acquisition [Line Items]
Allowance for credit losses at acquisition			$ 77,778	$ 72,168	$ 77,778	$ 72,168	$ 71,355	$ 72,755	$ 73,776	$ 69,339
Marine Floor Financing Loans
Asset Acquisition [Line Items]
Consideration transferred		$ 52,000
Intangible and Other Assets
Asset Acquisition [Line Items]
Consideration transferred		$ 2,000
Real Estate Loan Portfolios | PCD
Asset Acquisition [Line Items]
Unpaid principal balance	$ 341,301
Non-credit-related discount	100,686
Allowance for credit losses at acquisition	70,097
Real Estate Loan Portfolios | Commercial Real Estate
Asset Acquisition [Line Items]
Unpaid principal balance	1,300,000
Unpaid principal balance, fair value	901,500
Non-credit-related discount	306,800
Gain on acquisition	92,400
Real Estate Loan Portfolios | Commercial Real Estate | Interest Rate Swap
Asset Acquisition [Line Items]
Other assets—Derivative instruments	109,000
Accounts payable and other liabilities—Derivative instruments	$ 104,400

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ACQUISITIONS - Schedule of Asset Acquisition (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 07, 2023	Sep. 30, 2023	Jun. 30, 2023	Dec. 31, 2022	Sep. 30, 2022	Jun. 30, 2022
Asset Acquisition [Line Items]
Unpaid principal balance	$ 18,264,354			$ 16,456,728
Allowance for credit losses at acquisition	$ (251,749)		$ (170,870)	$ (166,680)	$ (157,218)	$ (155,472)	$ (148,617)
Real Estate Loan Portfolios | PCD
Asset Acquisition [Line Items]
Unpaid principal balance		$ 341,301
Non-credit discount		(100,686)
Allowance for credit losses at acquisition		(70,097)
Purchase price		$ 170,518

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FAIR VALUE - ASSETS AND LIABILITIES MEASURED ON RECURRING BASIS (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Jun. 30, 2023
ASSETS:
Trading securities	$ 329	$ 758
Fair Value	239,812	232,350
Loans held for sale	13,468	23,203
Agency MBS
ASSETS:
Fair Value	28,664	23,947
Non-Agency MBS
ASSETS:
Fair Value	207,708	205,005
Municipal
ASSETS:
Fair Value	3,440	3,398
Significant Other Observable Inputs (Level 2)
ASSETS:
Trading securities	329	758
Fair Value	32,104	27,345
Loans held for sale	13,468	23,203
Servicing rights	0	0
Other assets—Derivative instruments	96,084	919
LIABILITIES:
Accounts payable and other liabilities—Derivative instruments	92,144	691
Significant Unobservable Inputs (Level 3)
ASSETS:
Trading securities	0	0
Fair Value	207,708	205,005
Loans held for sale	0	0
Servicing rights	28,043	25,443
Other assets—Derivative instruments	0	0
LIABILITIES:
Accounts payable and other liabilities—Derivative instruments	0	0
Recurring
ASSETS:
Trading securities	329	758
Fair Value	239,812	232,350
Loans held for sale	13,468	23,203
Servicing rights	28,043	25,443
Other assets—Derivative instruments	96,084	919
LIABILITIES:
Accounts payable and other liabilities—Derivative instruments	92,144	691
Recurring | Agency MBS
ASSETS:
Fair Value	28,664	23,947
Recurring | Non-Agency MBS
ASSETS:
Fair Value	207,708	205,005
Recurring | Municipal
ASSETS:
Fair Value	3,440	3,398
Recurring | Significant Other Observable Inputs (Level 2)
ASSETS:
Trading securities	329	758
Fair Value	32,104	27,345
Loans held for sale	13,468	23,203
Servicing rights	0	0
Other assets—Derivative instruments	96,084	919
LIABILITIES:
Accounts payable and other liabilities—Derivative instruments	92,144	691
Recurring | Significant Other Observable Inputs (Level 2) | Agency MBS
ASSETS:
Fair Value	28,664	23,947
Recurring | Significant Other Observable Inputs (Level 2) | Non-Agency MBS
ASSETS:
Fair Value	0	0
Recurring | Significant Other Observable Inputs (Level 2) | Municipal
ASSETS:
Fair Value	3,440	3,398
Recurring | Significant Unobservable Inputs (Level 3)
ASSETS:
Trading securities	0	0
Fair Value	207,708	205,005
Loans held for sale		0
Servicing rights	28,043	25,443
Other assets—Derivative instruments	0	0
LIABILITIES:
Accounts payable and other liabilities—Derivative instruments	0	0
Recurring | Significant Unobservable Inputs (Level 3) | Agency MBS
ASSETS:
Fair Value	0	0
Recurring | Significant Unobservable Inputs (Level 3) | Non-Agency MBS
ASSETS:
Fair Value	207,708	205,005
Recurring | Significant Unobservable Inputs (Level 3) | Municipal
ASSETS:
Fair Value	$ 0	$ 0

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FAIR VALUE - LEVEL 3 ASSETS MEASURED ON RECURRING BASIS (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2023	Dec. 31, 2022
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Included in earnings—Mortgage banking income [Extensible Enumeration]	Mortgage banking and servicing rights income	Mortgage banking and servicing rights income	Mortgage banking and servicing rights income	Mortgage banking and servicing rights income
Included in other comprehensive income [Extensible Enumeration]	Other comprehensive income (loss)	Other comprehensive income (loss)	Other comprehensive income (loss)	Other comprehensive income (loss)
Recurring | Level 3
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Opening Balance	$ 235,414	$ 210,920	$ 230,448	$ 212,491
Included in earnings—Mortgage banking and servicing rights income	(1,494)	(1,563)	365	(539)
Included in other comprehensive income	1,876	(2,143)	3,191	(4,616)
Purchases, retentions, issues, sales and settlements:
Purchases/Retentions	199	199	2,235	406
Settlements	(244)	(6,746)	(488)	(7,075)
Closing balance	235,751	200,667	235,751	200,667
Change in unrealized gains or losses for the period included in earnings for assets held at the end of the reporting period	(1,494)	(1,563)	365	(539)
Principal payments and loans that were paid down or paid off	300	100	500	500
Market-driven changes in interest rates	(1,200)	(900)	900	400
Recurring | Level 3 | Available-for-Sale Securities: Non-Agency MBS
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Opening Balance	206,076	184,012	205,005	186,814
Included in earnings—Mortgage banking and servicing rights income	0	0	0	0
Included in other comprehensive income	1,876	(2,143)	3,191	(4,616)
Purchases, retentions, issues, sales and settlements:
Purchases/Retentions	0	0	0	0
Settlements	(244)	(6,746)	(488)	(7,075)
Closing balance	207,708	175,123	207,708	175,123
Change in unrealized gains or losses for the period included in earnings for assets held at the end of the reporting period	0	0	0	0
Recurring | Level 3 | Servicing Rights
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Opening Balance	29,338	26,373	25,443	25,213
Included in earnings—Mortgage banking and servicing rights income	(1,494)	(1,046)	365	(93)
Included in other comprehensive income	0	0	0	0
Purchases, retentions, issues, sales and settlements:
Purchases/Retentions	199	199	2,235	406
Settlements	0	0	0	0
Closing balance	28,043	25,526	28,043	25,526
Change in unrealized gains or losses for the period included in earnings for assets held at the end of the reporting period	$ (1,494)	(1,046)	$ 365	(93)
Recurring | Level 3 | Derivative Instruments, net
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Opening Balance		535		464
Included in earnings—Mortgage banking and servicing rights income		(517)		(446)
Included in other comprehensive income		0		0
Purchases, retentions, issues, sales and settlements:
Purchases/Retentions		0		0
Settlements		0		0
Closing balance		18		18
Change in unrealized gains or losses for the period included in earnings for assets held at the end of the reporting period		$ (517)		$ (446)

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FAIR VALUE - QUANTITATIVE INFORMATION ABOUT LEVEL 3 FAIR VALUE MEASURMENTS (RECURRING) (Details) $ in Thousands	Dec. 31, 2023 USD ($) year	Jun. 30, 2023 USD ($) year
Fair Value, Option, Quantitative Disclosures [Line Items]
Securities – Non-agency MBS	$ 239,812	$ 232,350
Available-for-Sale Securities: Non-Agency MBS
Fair Value, Option, Quantitative Disclosures [Line Items]
Securities – Non-agency MBS	207,708	205,005
Level 3
Fair Value, Option, Quantitative Disclosures [Line Items]
Securities – Non-agency MBS	207,708	205,005
Servicing rights	28,043	25,443
Recurring
Fair Value, Option, Quantitative Disclosures [Line Items]
Securities – Non-agency MBS	239,812	232,350
Servicing rights	28,043	25,443
Recurring | Available-for-Sale Securities: Non-Agency MBS
Fair Value, Option, Quantitative Disclosures [Line Items]
Securities – Non-agency MBS	207,708	205,005
Recurring | Level 3
Fair Value, Option, Quantitative Disclosures [Line Items]
Securities – Non-agency MBS	207,708	205,005
Servicing rights	28,043	25,443
Recurring | Level 3 | Available-for-Sale Securities: Non-Agency MBS
Fair Value, Option, Quantitative Disclosures [Line Items]
Securities – Non-agency MBS	$ 207,708	$ 205,005
Recurring | Level 3 | Available-for-Sale Securities: Non-Agency MBS | Projected Constant Prepayment Rate | Minimum
Fair Value, Option, Quantitative Disclosures [Line Items]
Securities available-for-sale, measurement input	0.000	0.000
Recurring | Level 3 | Available-for-Sale Securities: Non-Agency MBS | Projected Constant Prepayment Rate | Maximum
Fair Value, Option, Quantitative Disclosures [Line Items]
Securities available-for-sale, measurement input	0.592	0.597
Recurring | Level 3 | Available-for-Sale Securities: Non-Agency MBS | Projected Constant Prepayment Rate | Weighted Average
Fair Value, Option, Quantitative Disclosures [Line Items]
Securities available-for-sale, measurement input	0.340	0.320
Recurring | Level 3 | Available-for-Sale Securities: Non-Agency MBS | Projected Constant Default Rate | Minimum
Fair Value, Option, Quantitative Disclosures [Line Items]
Securities available-for-sale, measurement input	0.000	0.000
Recurring | Level 3 | Available-for-Sale Securities: Non-Agency MBS | Projected Constant Default Rate | Maximum
Fair Value, Option, Quantitative Disclosures [Line Items]
Securities available-for-sale, measurement input	0.314	0.075
Recurring | Level 3 | Available-for-Sale Securities: Non-Agency MBS | Projected Constant Default Rate | Weighted Average
Fair Value, Option, Quantitative Disclosures [Line Items]
Securities available-for-sale, measurement input	0.025	0.024
Recurring | Level 3 | Available-for-Sale Securities: Non-Agency MBS | Projected Loss Severity | Minimum
Fair Value, Option, Quantitative Disclosures [Line Items]
Securities available-for-sale, measurement input	0.000	0.000
Recurring | Level 3 | Available-for-Sale Securities: Non-Agency MBS | Projected Loss Severity | Maximum
Fair Value, Option, Quantitative Disclosures [Line Items]
Securities available-for-sale, measurement input	0.687	0.687
Recurring | Level 3 | Available-for-Sale Securities: Non-Agency MBS | Projected Loss Severity | Weighted Average
Fair Value, Option, Quantitative Disclosures [Line Items]
Securities available-for-sale, measurement input	0.285	0.285
Recurring | Level 3 | Available-for-Sale Securities: Non-Agency MBS | Discount Rate | Minimum
Fair Value, Option, Quantitative Disclosures [Line Items]
Securities available-for-sale, measurement input	0.026	0.026
Recurring | Level 3 | Available-for-Sale Securities: Non-Agency MBS | Discount Rate | Maximum
Fair Value, Option, Quantitative Disclosures [Line Items]
Securities available-for-sale, measurement input	0.065	0.075
Recurring | Level 3 | Available-for-Sale Securities: Non-Agency MBS | Discount Rate | Weighted Average
Fair Value, Option, Quantitative Disclosures [Line Items]
Securities available-for-sale, measurement input	0.026	0.027
Recurring | Level 3 | Servicing Rights
Fair Value, Option, Quantitative Disclosures [Line Items]
Servicing rights	$ 28,043	$ 25,443
Recurring | Level 3 | Servicing Rights | Projected Constant Prepayment Rate | Minimum
Fair Value, Option, Quantitative Disclosures [Line Items]
Mortgage servicing right, measurement input	0.052	0.061
Recurring | Level 3 | Servicing Rights | Projected Constant Prepayment Rate | Maximum
Fair Value, Option, Quantitative Disclosures [Line Items]
Mortgage servicing right, measurement input	0.381	0.401
Recurring | Level 3 | Servicing Rights | Projected Constant Prepayment Rate | Weighted Average
Fair Value, Option, Quantitative Disclosures [Line Items]
Mortgage servicing right, measurement input	0.122	0.126
Recurring | Level 3 | Servicing Rights | Discount Rate | Minimum
Fair Value, Option, Quantitative Disclosures [Line Items]
Mortgage servicing right, measurement input	0.095	0.095
Recurring | Level 3 | Servicing Rights | Discount Rate | Maximum
Fair Value, Option, Quantitative Disclosures [Line Items]
Mortgage servicing right, measurement input	0.115	0.115
Recurring | Level 3 | Servicing Rights | Discount Rate | Weighted Average
Fair Value, Option, Quantitative Disclosures [Line Items]
Mortgage servicing right, measurement input	0.098	0.096
Recurring | Level 3 | Servicing Rights | Life (in years) | Minimum
Fair Value, Option, Quantitative Disclosures [Line Items]
Mortgage servicing right, measurement input | year	1.6	1.8
Recurring | Level 3 | Servicing Rights | Life (in years) | Maximum
Fair Value, Option, Quantitative Disclosures [Line Items]
Mortgage servicing right, measurement input | year	15.2	10.9
Recurring | Level 3 | Servicing Rights | Life (in years) | Weighted Average
Fair Value, Option, Quantitative Disclosures [Line Items]
Mortgage servicing right, measurement input | year	7.6	7.7

XML

FAIR VALUE - LOANS HELD-FOR-SALE (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2023	Dec. 31, 2022	Jun. 30, 2023
Fair Value Disclosures [Abstract]
Aggregate fair value	$ 13,468		$ 13,468		$ 23,203
Contractual balance	13,013		13,013		22,844
Unrealized gain	455		455		$ 359
Interest income	141	$ 103	330	$ 153
Change in fair value	33	(422)	(96)	(331)
Total	$ 174	$ (319)	$ 234	$ (178)

XML

FAIR VALUE - ASSETS MEASURED FOR IMPAIRMENT ON NONRECURRING BASIS (Details) - Nonrecurring - USD ($) $ in Thousands	Dec. 31, 2023	Jun. 30, 2023
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other real estate owned and foreclosed assets, fair value	$ 7,317	$ 8,099
Single family real estate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other real estate owned and foreclosed assets, fair value	5,574	5,574
Multifamily real estate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other real estate owned and foreclosed assets, fair value		1,392
Autos
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other real estate owned and foreclosed assets, fair value	1,743	1,133
Quoted Prices in Active Markets for Identical Assets (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other real estate owned and foreclosed assets, fair value	0	0
Quoted Prices in Active Markets for Identical Assets (Level 1) | Single family real estate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other real estate owned and foreclosed assets, fair value	0	0
Quoted Prices in Active Markets for Identical Assets (Level 1) | Multifamily real estate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other real estate owned and foreclosed assets, fair value		0
Quoted Prices in Active Markets for Identical Assets (Level 1) | Autos
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other real estate owned and foreclosed assets, fair value	0	0
Significant Other Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other real estate owned and foreclosed assets, fair value	0	0
Significant Other Observable Inputs (Level 2) | Single family real estate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other real estate owned and foreclosed assets, fair value	0	0
Significant Other Observable Inputs (Level 2) | Multifamily real estate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other real estate owned and foreclosed assets, fair value		0
Significant Other Observable Inputs (Level 2) | Autos
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other real estate owned and foreclosed assets, fair value	0	0
Significant Unobservable Inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other real estate owned and foreclosed assets, fair value	7,317	8,099
Significant Unobservable Inputs (Level 3) | Single family real estate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other real estate owned and foreclosed assets, fair value	5,574	5,574
Significant Unobservable Inputs (Level 3) | Multifamily real estate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other real estate owned and foreclosed assets, fair value		1,392
Significant Unobservable Inputs (Level 3) | Autos
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other real estate owned and foreclosed assets, fair value	$ 1,743	$ 1,133

XML

FAIR VALUE - NARRATIVE (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Dec. 31, 2023	Jun. 30, 2023
Nonrecurring
Fair Value Inputs, Equity, Quantitative Information [Line Items]
Other real estate owned and foreclosed assets, fair value	$ 7,317	$ 8,099
Other Real Estate Owned
Fair Value Inputs, Equity, Quantitative Information [Line Items]
Other real estate owned, valuation allowance	$ 1,100	$ 1,700

XML

FAIR VALUE - QUANTITATIVE INFORMATION ABOUT LEVEL 3 FAIR VALUE MEASURMENTS (NONRECURRING) (Details) - Nonrecurring $ in Thousands	Dec. 31, 2023 USD ($)	Jun. 30, 2023 USD ($)
Fair Value Inputs, Equity, Quantitative Information [Line Items]
Other real estate owned and foreclosed assets, fair value	$ 7,317	$ 8,099
Single family real estate
Fair Value Inputs, Equity, Quantitative Information [Line Items]
Other real estate owned and foreclosed assets, fair value	5,574	5,574
Multifamily real estate
Fair Value Inputs, Equity, Quantitative Information [Line Items]
Other real estate owned and foreclosed assets, fair value		1,392
Level 3
Fair Value Inputs, Equity, Quantitative Information [Line Items]
Other real estate owned and foreclosed assets, fair value	7,317	8,099
Level 3 | Single family real estate
Fair Value Inputs, Equity, Quantitative Information [Line Items]
Other real estate owned and foreclosed assets, fair value	$ 5,574	$ 5,574
Level 3 | Single family real estate | Differences between the comparable sales | Minimum
Fair Value Inputs, Equity, Quantitative Information [Line Items]
Other real estate owned, measurement input	0.621	0.621
Level 3 | Single family real estate | Differences between the comparable sales | Maximum
Fair Value Inputs, Equity, Quantitative Information [Line Items]
Other real estate owned, measurement input	0.936	0.936
Level 3 | Single family real estate | Differences between the comparable sales | Weighted Average
Fair Value Inputs, Equity, Quantitative Information [Line Items]
Other real estate owned, measurement input	0.621	0.621
Level 3 | Multifamily real estate
Fair Value Inputs, Equity, Quantitative Information [Line Items]
Other real estate owned and foreclosed assets, fair value		$ 1,392
Level 3 | Multifamily real estate | Differences between the comparable sales | Minimum
Fair Value Inputs, Equity, Quantitative Information [Line Items]
Other real estate owned, measurement input		0.498
Level 3 | Multifamily real estate | Differences between the comparable sales | Maximum
Fair Value Inputs, Equity, Quantitative Information [Line Items]
Other real estate owned, measurement input		0.545
Level 3 | Multifamily real estate | Differences between the comparable sales | Weighted Average
Fair Value Inputs, Equity, Quantitative Information [Line Items]
Other real estate owned, measurement input		0.498

XML

FAIR VALUE - ESTIMATED FAIR VALUES OF FINANCIAL INSTRUMENTS AT PERIOD-END (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Jun. 30, 2023
Financial assets:
Trading securities	$ 329	$ 758
Available-for-sale securities	239,812	232,350
Stock of regulatory agencies	21,534	21,510
Loans held for sale, at fair value	13,468	23,203
Loans held for sale, lower of cost or fair value	0	776
Securities borrowed	145,176	134,339
Financial liabilities:
Securities loaned	155,492	159,832
Carrying Amount
Financial assets:
Cash, cash equivalents and segregated cash	1,763,723	2,382,086
Trading securities	329	758
Available-for-sale securities	239,812	232,350
Stock of regulatory agencies	21,534	21,510
Loans held for sale, at fair value	13,468	23,203
Loans held for sale, lower of cost or fair value		776
Loans held for investment—net	18,264,354	16,456,728
Securities borrowed	145,176	134,339
Customer, broker-dealer and clearing receivables	265,857	374,074
Servicing rights	28,043	25,443
Other assets—Derivative instruments	96,084	919
Financial liabilities:
Total deposits	18,203,912	17,123,108
Advances from the Federal Home Loan Bank	90,000	90,000
Borrowings, subordinated notes and debentures	341,086	361,779
Securities loaned	155,492	159,832
Customer, broker-dealer and clearing payables	368,885	445,477
Accounts payable and other liabilities—Derivative instruments	92,144	691
Total Fair Value
Financial assets:
Cash, cash equivalents and segregated cash	1,763,723	2,382,086
Trading securities	329	758
Available-for-sale securities	239,812	232,350
Stock of regulatory agencies	21,534	21,510
Loans held for sale, at fair value	13,468	23,203
Loans held for sale, lower of cost or fair value		780
Loans held for investment—net	18,313,778	16,417,183
Securities borrowed	155,513	143,461
Customer, broker-dealer and clearing receivables	278,219	386,082
Servicing rights	28,043	25,443
Other assets—Derivative instruments	96,084	919
Financial liabilities:
Total deposits	18,120,805	17,064,084
Advances from the Federal Home Loan Bank	84,150	83,192
Borrowings, subordinated notes and debentures	314,321	327,564
Securities loaned	155,492	159,416
Customer, broker-dealer and clearing payables	368,885	445,447
Accounts payable and other liabilities—Derivative instruments	92,144	691
Level 1
Financial assets:
Cash, cash equivalents and segregated cash	1,763,723	2,382,086
Trading securities	0	0
Available-for-sale securities	0	0
Stock of regulatory agencies	0	0
Loans held for sale, at fair value	0	0
Loans held for sale, lower of cost or fair value		0
Loans held for investment—net	0	0
Securities borrowed	0	0
Customer, broker-dealer and clearing receivables	0	0
Servicing rights	0	0
Other assets—Derivative instruments	0	0
Financial liabilities:
Total deposits	0	0
Advances from the Federal Home Loan Bank	0	0
Borrowings, subordinated notes and debentures	0	0
Securities loaned	0	0
Customer, broker-dealer and clearing payables	0	0
Accounts payable and other liabilities—Derivative instruments	0	0
Level 2
Financial assets:
Cash, cash equivalents and segregated cash	0	0
Trading securities	329	758
Available-for-sale securities	32,104	27,345
Stock of regulatory agencies	21,534	21,510
Loans held for sale, at fair value	13,468	23,203
Loans held for sale, lower of cost or fair value		0
Loans held for investment—net	0	0
Securities borrowed	0	0
Customer, broker-dealer and clearing receivables	0	0
Servicing rights	0	0
Other assets—Derivative instruments	96,084	919
Financial liabilities:
Total deposits	18,120,805	17,064,084
Advances from the Federal Home Loan Bank	84,150	83,192
Borrowings, subordinated notes and debentures	314,321	327,564
Securities loaned	0	0
Customer, broker-dealer and clearing payables	0	0
Accounts payable and other liabilities—Derivative instruments	92,144	691
Level 3
Financial assets:
Cash, cash equivalents and segregated cash	0	0
Trading securities	0	0
Available-for-sale securities	207,708	205,005
Stock of regulatory agencies	0	0
Loans held for sale, at fair value	0	0
Loans held for sale, lower of cost or fair value		780
Loans held for investment—net	18,313,778	16,417,183
Securities borrowed	155,513	143,461
Customer, broker-dealer and clearing receivables	278,219	386,082
Servicing rights	28,043	25,443
Other assets—Derivative instruments	0	0
Financial liabilities:
Total deposits	0	0
Advances from the Federal Home Loan Bank	0	0
Borrowings, subordinated notes and debentures	0	0
Securities loaned	155,492	159,416
Customer, broker-dealer and clearing payables	368,885	445,447
Accounts payable and other liabilities—Derivative instruments	$ 0	$ 0

XML

AVAILABLE-FOR-SALE SECURITIES - AMORTIZED COST, CARRYING AMOUNT AND FAIR VALUE DISCLOSURES (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Jun. 30, 2023
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	$ 244,552	$ 240,951
Unrealized Gains	1,149	711
Unrealized Losses	(5,889)	(9,312)
Fair Value	239,812	232,350
U.S. agencies
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	31,048	27,024
Unrealized Gains	238	0
Unrealized Losses	(2,622)	(3,077)
Fair Value	28,664	23,947
Non-agency
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	209,783	210,271
Unrealized Gains	911	711
Unrealized Losses	(2,986)	(5,977)
Fair Value	207,708	205,005
Total mortgage-backed securities
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	240,831	237,295
Unrealized Gains	1,149	711
Unrealized Losses	(5,608)	(9,054)
Fair Value	236,372	228,952
Municipal
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	3,721	3,656
Unrealized Gains	0	0
Unrealized Losses	(281)	(258)
Fair Value	3,440	3,398
Total Non-MBS
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	3,721	3,656
Unrealized Gains	0	0
Unrealized Losses	(281)	(258)
Fair Value	$ 3,440	$ 3,398

XML

AVAILABLE-FOR-SALE SECURITIES - NARRATIVE (Details) - USD ($)	3 Months Ended		6 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2023	Dec. 31, 2022	Jun. 30, 2023
Debt Securities, Available-for-sale [Line Items]
Available-for-sale securities, credit losses	$ 0	$ 0	$ 0	$ 0
Proceeds from sale and repayment of available-for-sale securities	4,800,000	4,800,000	4,800,000	4,800,000
Available-for-sale securities, realized gain (loss)	0	$ 0	0	$ 0
Asset Pledged as Collateral
Debt Securities, Available-for-sale [Line Items]
Available-for-sale securities pledged as collateral	$ 800,000		$ 800,000		$ 900,000

XML

AVAILABLE-FOR-SALE SECURITIES - SCHEDULE OF UNREALIZED LOSS ON INVESTMENTS (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Jun. 30, 2023
Fair Value
Less Than 12 Months	$ 42,349	$ 111,164
More Than 12 Months	157,872	119,425
Total	200,221	230,589
Gross Unrealized Losses
Less Than 12 Months	(71)	(1,824)
More Than 12 Months	(5,818)	(7,488)
Total	(5,889)	(9,312)
U.S. agencies
Fair Value
Less Than 12 Months	25	3,182
More Than 12 Months	20,762	20,642
Total	20,787	23,824
Gross Unrealized Losses
Less Than 12 Months	0	(16)
More Than 12 Months	(2,622)	(3,061)
Total	(2,622)	(3,077)
Non-agency
Fair Value
Less Than 12 Months	42,324	107,982
More Than 12 Months	133,670	95,385
Total	175,994	203,367
Gross Unrealized Losses
Less Than 12 Months	(71)	(1,808)
More Than 12 Months	(2,915)	(4,169)
Total	(2,986)	(5,977)
Total MBS
Fair Value
Less Than 12 Months	42,349	111,164
More Than 12 Months	154,432	116,027
Total	196,781	227,191
Gross Unrealized Losses
Less Than 12 Months	(71)	(1,824)
More Than 12 Months	(5,537)	(7,230)
Total	(5,608)	(9,054)
Municipal
Fair Value
Less Than 12 Months	0	0
More Than 12 Months	3,440	3,398
Total	3,440	3,398
Gross Unrealized Losses
Less Than 12 Months	0	0
More Than 12 Months	(281)	(258)
Total	(281)	(258)
Total Non-MBS
Fair Value
Less Than 12 Months	0	0
More Than 12 Months	3,440	3,398
Total	3,440	3,398
Gross Unrealized Losses
Less Than 12 Months	0	0
More Than 12 Months	(281)	(258)
Total	$ (281)	$ (258)

XML

AVAILABLE-FOR-SALE SECURITIES - UNREALIZED GAIN (LOSS) ON INVESTMENTS (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Jun. 30, 2023
Investments, Debt and Equity Securities [Abstract]
Available-for-sale securities—net unrealized gains (losses)	$ (4,740)	$ (8,601)
Available-for-sale securities—non-credit related	(845)	(845)
Subtotal	(5,585)	(9,446)
Tax benefit (expense)	1,666	2,836
Net unrealized gain (loss) on investment securities in accumulated other comprehensive income (loss)	$ (3,919)	$ (6,610)

XML

AVAILABLE-FOR-SALE SECURITIES - INVESTMENTS CLASSIFIED BY CONTRACTUAL MATURITY DATE (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Jun. 30, 2023
Available-for-Sale, Fair Value
Amortized Cost	$ 244,552	$ 240,951
Available-for-Sale Amortized Cost
Total Amount	244,552
Due Within One Year	170,836
Due after One but within Five Years	57,968
Due after Five but within Ten Years	8,756
Due After Ten Years	6,992
Fair Value
Available-for-Sale, Fair Value
Amortized Cost	239,812
Due Within One Year	168,400
Due after One but within Five Years	56,864
Due after Five but within Ten Years	8,181
Due After Ten Years	6,367
U.S. agencies
Available-for-Sale, Fair Value
Amortized Cost	31,048	27,024
Due Within One Year	6,907
Due after One but within Five Years	14,543
Due after Five but within Ten Years	7,222
Due After Ten Years	2,376
Non-agency
Available-for-Sale, Fair Value
Amortized Cost	209,783	210,271
Due Within One Year	163,929
Due after One but within Five Years	43,425
Due after Five but within Ten Years	1,534
Due After Ten Years	895
Total mortgage-backed securities
Available-for-Sale, Fair Value
Amortized Cost	240,831	237,295
Due Within One Year	170,836
Due after One but within Five Years	57,968
Due after Five but within Ten Years	8,756
Due After Ten Years	3,271
Municipal
Available-for-Sale, Fair Value
Amortized Cost	3,721	3,656
Due Within One Year	0
Due after One but within Five Years	0
Due after Five but within Ten Years	0
Due After Ten Years	3,721
Total Non-MBS
Available-for-Sale, Fair Value
Amortized Cost	3,721	$ 3,656
Due Within One Year	0
Due after One but within Five Years	0
Due after Five but within Ten Years	0
Due After Ten Years	$ 3,721

XML

LOANS & ALLOWANCE FOR CREDIT LOSSES - NARRATIVE (Details)		3 Months Ended		6 Months Ended
	Dec. 07, 2023 loanPortfolio	Dec. 31, 2023 USD ($)	Dec. 31, 2022 USD ($)	Dec. 31, 2023 USD ($) segment	Jun. 30, 2023 USD ($) loan
Financing Receivable, Impaired [Line Items]
Number of loan portfolio segments	2			6
Accrued interest receivable on loans held for investments		$ 107,700,000		$ 107,700,000	$ 77,900,000
Advances, collateral pledged		5,155,800,000		5,155,800,000	5,128,400,000
FRBSF and FRB, loans pledged		3,915,000,000		3,915,000,000	3,689,500,000
Nonaccrual loans		0		0	0
Interest income recognized on nonaccrual loans		0	$ 0
Loans past due ninety days or more and still accruing		31,300,000		31,300,000	14,100,000
Mortgage loans in process of foreclosure, amount		$ 18,500,000		$ 18,500,000	$ 17,700,000
Nonaccrual
Financing Receivable, Impaired [Line Items]
Ratio of nonaccrual loans and leases considered TDRs					1.77%
Period over which borrowers can make timely payments after TDR considered non-performing (in months)				6 months
Performing
Financing Receivable, Impaired [Line Items]
Number or TDRs classified as performing | loan					0

XML

LOANS & ALLOWANCE FOR CREDIT LOSSES - LOAN PORTFOLIO COMPOSITION (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 07, 2023	Sep. 30, 2023	Jun. 30, 2023	Dec. 31, 2022	Sep. 30, 2022	Jun. 30, 2022
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	$ 18,860,409			$ 16,652,026
Allowance for credit losses - loans	(251,749)		$ (170,870)	(166,680)	$ (157,218)	$ (155,472)	$ (148,617)
Unaccreted premiums (discounts) and loan fees	(344,306)			(28,618)
Total net loans	18,264,354			16,456,728
Single Family - Mortgage & Warehouse
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	4,092,104			4,173,833
Allowance for credit losses - loans	(15,356)		(17,426)	(17,503)	(19,631)	(18,039)	(19,670)
Multifamily and Commercial Mortgage
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	4,065,019			3,082,225
Allowance for credit losses - loans	(78,353)		(15,874)	(16,848)	(15,457)	(14,649)	(14,655)
Multifamily and Commercial Mortgage | Real Estate Loan Portfolios
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	296,700
Commercial Real Estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	6,043,400			6,199,818
Allowance for credit losses - loans	(77,778)		(71,355)	(72,755)	(72,168)	(73,776)	(69,339)
Commercial Real Estate | Real Estate Loan Portfolios
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	44,500
Total net loans		$ 1,300,000
Commercial & Industrial - Non-RE
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	4,177,461			2,639,650
Allowance for credit losses - loans	(69,201)		(54,592)	(46,347)	(36,038)	(34,383)	(30,808)
Auto & Consumer
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	477,275			546,264
Allowance for credit losses - loans	(11,052)		(11,614)	(13,212)	(13,903)	(14,595)	(14,114)
Other
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	5,150			10,236
Allowance for credit losses - loans	$ (9)		$ (9)	$ (15)	$ (21)	$ (30)	$ (31)

XML

LOANS & ALLOWANCE FOR CREDIT LOSSES - COMPONENTS OF THE PROVISION FOR CREDIT LOSSES (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2023	Dec. 31, 2022
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total provision for credit losses	$ 13,500	$ 3,001	$ 20,500	$ 11,751
Provision for credit losses - loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total provision for credit losses	12,500	3,500	18,250	12,250
Provision for credit losses - unfunded lending commitments
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total provision for credit losses	$ 1,000	$ (499)	$ 2,250	$ (499)

XML

LOANS & ALLOWANCE FOR CREDIT LOSSES - ALLOWANCE FOR LOAN LOSS BY PORTFOLIO CLASS (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2023	Dec. 31, 2022
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Balance, beginning of period	$ 170,870	$ 155,472	$ 166,680	$ 148,617
Allowance for credit losses at acquisition of PCD loans	70,097		70,097
Provision (benefit) for credit losses - loans	13,500	3,001	20,500	11,751
Charge-offs	(2,407)	(2,165)	(4,768)	(4,531)
Recoveries	689	411	1,490	882
Balance, end of period	251,749	157,218	251,749	157,218
Provision (benefit) for credit losses - loans
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Provision (benefit) for credit losses - loans	12,500	3,500	18,250	12,250
Single Family - Mortgage & Warehouse
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Balance, beginning of period	17,426	18,039	17,503	19,670
Allowance for credit losses at acquisition of PCD loans	0		0
Charge-offs	0	(294)	(80)	(298)
Recoveries	10	8	23	23
Balance, end of period	15,356	19,631	15,356	19,631
Single Family - Mortgage & Warehouse | Provision (benefit) for credit losses - loans
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Provision (benefit) for credit losses - loans	(2,080)	1,878	(2,090)	236
Multifamily and Commercial Mortgage
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Balance, beginning of period	15,874	14,649	16,848	14,655
Allowance for credit losses at acquisition of PCD loans	58,972		58,972
Charge-offs	0	0	0	0
Recoveries	0	0	0	0
Balance, end of period	78,353	15,457	78,353	15,457
Multifamily and Commercial Mortgage | Provision (benefit) for credit losses - loans
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Provision (benefit) for credit losses - loans	3,507	808	2,533	802
Commercial Real Estate
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Balance, beginning of period	71,355	73,776	72,755	69,339
Allowance for credit losses at acquisition of PCD loans	11,125		11,125
Charge-offs	0	0	0	0
Recoveries	0	0	0	0
Balance, end of period	77,778	72,168	77,778	72,168
Commercial Real Estate | Provision (benefit) for credit losses - loans
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Provision (benefit) for credit losses - loans	(4,702)	(1,608)	(6,102)	2,829
Commercial & Industrial - Non-RE
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Balance, beginning of period	54,592	34,383	46,347	30,808
Allowance for credit losses at acquisition of PCD loans	0		0
Charge-offs	(86)	0	(86)	0
Recoveries	0	0	0	18
Balance, end of period	69,201	36,038	69,201	36,038
Commercial & Industrial - Non-RE | Provision (benefit) for credit losses - loans
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Provision (benefit) for credit losses - loans	14,695	1,655	22,940	5,212
Auto & Consumer
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Balance, beginning of period	11,614	14,595	13,212	14,114
Allowance for credit losses at acquisition of PCD loans	0		0
Charge-offs	(2,321)	(1,871)	(4,602)	(4,233)
Recoveries	679	403	1,467	841
Balance, end of period	11,052	13,903	11,052	13,903
Auto & Consumer | Provision (benefit) for credit losses - loans
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Provision (benefit) for credit losses - loans	1,080	776	975	3,181
Other
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Balance, beginning of period	9	30	15	31
Allowance for credit losses at acquisition of PCD loans	0		0
Charge-offs	0	0	0	0
Recoveries	0	0	0	0
Balance, end of period	9	21	9	21
Other | Provision (benefit) for credit losses - loans
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Provision (benefit) for credit losses - loans	$ 0	$ (9)	$ (6)	$ (10)

XML

LOANS & ALLOWANCE FOR CREDIT LOSSES - ALLOWANCE FOR LOAN LOSS AND RESERVE FOR UNFUNDED LOAN COMMITMENTS (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2023	Dec. 31, 2022
Off-Balance-Sheet, Credit Loss, Liability [Roll Forward]
Balance, beginning of period	$ 11,723	$ 10,973	$ 10,473	$ 10,973
Provision for credit losses - unfunded lending commitments	1,000	(499)	2,250	(499)
Balance, end of period	$ 12,723	$ 10,474	$ 12,723	$ 10,474

XML

LOANS & ALLOWANCE FOR CREDIT LOSSES - REAL ESTATE LOANS, LTV RATIO (Details)	6 Months Ended
	Dec. 31, 2023
Accounts, Notes, Loans and Financing Receivable [Line Items]
Weighted-Average LTV	47.80%
Median LTV	53.00%
Effective weighted-average LTV	48.60%
Single Family - Mortgage & Warehouse
Accounts, Notes, Loans and Financing Receivable [Line Items]
Weighted-Average LTV	56.40%
Median LTV	55.00%
Multifamily and Commercial Mortgage
Accounts, Notes, Loans and Financing Receivable [Line Items]
Weighted-Average LTV	53.30%
Median LTV	50.00%
Commercial Real Estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Weighted-Average LTV	38.80%
Median LTV	35.00%

XML

LOANS & ALLOWANCE FOR CREDIT LOSSES - UNPAID PRINCIPAL BALANCE FOR PERFORMING AND NONACCRUAL (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Jun. 30, 2023
Financing Receivable, Credit Quality Indicator [Line Items]
Total	$ 18,860,409	$ 16,652,026
Nonaccrual loans to total loans	0.65%	0.52%
Single Family - Mortgage & Warehouse
Financing Receivable, Credit Quality Indicator [Line Items]
Total	$ 4,092,104	$ 4,173,833
Multifamily and Commercial Mortgage
Financing Receivable, Credit Quality Indicator [Line Items]
Total	4,065,019	3,082,225
Commercial Real Estate
Financing Receivable, Credit Quality Indicator [Line Items]
Total	6,043,400	6,199,818
Commercial & Industrial - Non-RE
Financing Receivable, Credit Quality Indicator [Line Items]
Total	4,177,461	2,639,650
Auto & Consumer
Financing Receivable, Credit Quality Indicator [Line Items]
Total	477,275	546,264
Other
Financing Receivable, Credit Quality Indicator [Line Items]
Total	5,150	10,236
Performing
Financing Receivable, Credit Quality Indicator [Line Items]
Total	18,737,901	16,564,866
Performing | Single Family - Mortgage & Warehouse
Financing Receivable, Credit Quality Indicator [Line Items]
Total	4,037,817	4,143,119
Performing | Multifamily and Commercial Mortgage
Financing Receivable, Credit Quality Indicator [Line Items]
Total	4,027,695	3,047,122
Performing | Commercial Real Estate
Financing Receivable, Credit Quality Indicator [Line Items]
Total	6,017,298	6,184,966
Performing | Commercial & Industrial - Non-RE
Financing Receivable, Credit Quality Indicator [Line Items]
Total	4,174,472	2,636,661
Performing | Auto & Consumer
Financing Receivable, Credit Quality Indicator [Line Items]
Total	475,505	544,807
Performing | Other
Financing Receivable, Credit Quality Indicator [Line Items]
Total	5,114	8,191
Nonaccrual
Financing Receivable, Credit Quality Indicator [Line Items]
Total	122,508	87,160
Nonaccrual | Single Family - Mortgage & Warehouse
Financing Receivable, Credit Quality Indicator [Line Items]
Total	54,287	30,714
Nonaccrual | Multifamily and Commercial Mortgage
Financing Receivable, Credit Quality Indicator [Line Items]
Total	37,324	35,103
Nonaccrual | Commercial Real Estate
Financing Receivable, Credit Quality Indicator [Line Items]
Total	26,102	14,852
Nonaccrual | Commercial & Industrial - Non-RE
Financing Receivable, Credit Quality Indicator [Line Items]
Total	2,989	2,989
Nonaccrual | Auto & Consumer
Financing Receivable, Credit Quality Indicator [Line Items]
Total	1,770	1,457
Nonaccrual | Other
Financing Receivable, Credit Quality Indicator [Line Items]
Total	$ 36	$ 2,045

XML

LOANS & ALLOWANCE FOR CREDIT LOSSES - LOANS BY AMORTIZED COST BASIS BY YEAR OF ORIGINATION AND CREDIT QUALITY INDICATOR (Details) - USD ($) $ in Thousands	6 Months Ended
	Dec. 31, 2023	Jun. 30, 2023
Financing Receivable, Credit Quality Indicator [Line Items]
2024	$ 1,920,637	$ 3,842,206
2023	3,748,419	5,386,784
2022	4,793,465	1,816,171
2021	1,842,885	867,067
2020	999,168	665,377
Prior	1,878,854	1,156,389
Revolving Loans	3,676,981	2,918,032
Total	18,860,409	$ 16,652,026
Gross charge-offs
2024	0
2023	1,435
2022	2,111
2021	755
2020	131
Prior	336
Revolving Loans	0
Total	$ 4,768
As a % of total gross loans
2024	10.18%	23.07%
2023	19.87%	32.35%
2022	25.42%	10.91%
2021	9.77%	5.21%
2020	5.30%	4.00%
Prior	9.96%	6.94%
Revolving Loans	19.50%	17.52%
Total	100.00%	100.00%
Single Family - Mortgage & Warehouse
Financing Receivable, Credit Quality Indicator [Line Items]
2024	$ 309,717	$ 730,498
2023	659,498	1,359,272
2022	1,315,605	534,585
2021	509,307	347,145
2020	333,159	270,513
Prior	865,970	682,031
Revolving Loans	98,848	249,789
Total	4,092,104	4,173,833
Gross charge-offs
2024	0
2023	0
2022	0
2021	0
2020	0
Prior	80
Revolving Loans	0
Total	80
Multifamily and Commercial Mortgage
Financing Receivable, Credit Quality Indicator [Line Items]
2024	22,417	558,787
2023	772,913	988,022
2022	1,098,594	509,066
2021	675,374	354,600
2020	596,190	238,478
Prior	899,531	433,272
Revolving Loans	0	0
Total	4,065,019	3,082,225
Gross charge-offs
2024	0
2023	0
2022	0
2021	0
2020	0
Prior	0
Revolving Loans	0
Total	0
Commercial Real Estate
Financing Receivable, Credit Quality Indicator [Line Items]
2024	1,071,507	1,896,476
2023	1,729,347	2,395,722
2022	1,789,490	669,451
2021	555,927	114,016
2020	32,816	134,215
Prior	84,139	29,914
Revolving Loans	780,174	960,024
Total	6,043,400	6,199,818
Gross charge-offs
2024	0
2023	0
2022	0
2021	0
2020	0
Prior	0
Revolving Loans	0
Total	0
Commercial & Industrial - Non-RE
Financing Receivable, Credit Quality Indicator [Line Items]
2024	486,830	488,120
2023	449,334	384,197
2022	372,772	30,809
2021	44,966	26,207
2020	18,184	2,098
Prior	7,416	0
Revolving Loans	2,797,959	1,708,219
Total	4,177,461	2,639,650
Gross charge-offs
2024	0
2023	0
2022	0
2021	0
2020	0
Prior	86
Revolving Loans	0
Total	86
Auto & Consumer
Financing Receivable, Credit Quality Indicator [Line Items]
2024	27,105	162,604
2023	137,327	257,571
2022	217,004	70,909
2021	56,204	25,099
2020	18,819	20,073
Prior	20,816	10,008
Revolving Loans	0	0
Total	477,275	546,264
Gross charge-offs
2024	0
2023	1,435
2022	2,111
2021	755
2020	131
Prior	170
Revolving Loans	0
Total	4,602
Other
Financing Receivable, Credit Quality Indicator [Line Items]
2024	3,061	5,721
2023	0	2,000
2022	0	1,351
2021	1,107	0
2020	0	0
Prior	982	1,164
Revolving Loans	0	0
Total	5,150	10,236
Gross charge-offs
2024	0
2023	0
2022	0
2021	0
2020	0
Prior	0
Revolving Loans	0
Total	0
Pass
Financing Receivable, Credit Quality Indicator [Line Items]
2024	1,920,637	3,812,433
2023	3,666,504	5,259,453
2022	4,662,653	1,754,423
2021	1,788,800	765,600
2020	916,069	620,062
Prior	1,739,356	1,054,716
Revolving Loans	3,631,453	2,910,818
Total	18,325,472	16,177,505
Pass | Single Family - Mortgage & Warehouse
Financing Receivable, Credit Quality Indicator [Line Items]
2024	309,717	730,498
2023	648,620	1,346,804
2022	1,297,738	522,873
2021	501,469	324,458
2020	309,309	255,547
Prior	779,468	639,401
Revolving Loans	98,848	243,175
Total	3,945,169	4,062,756
Pass | Multifamily and Commercial Mortgage
Financing Receivable, Credit Quality Indicator [Line Items]
2024	22,417	558,787
2023	758,825	975,186
2022	1,089,359	498,744
2021	664,917	314,383
2020	562,656	224,592
Prior	880,855	404,222
Revolving Loans	0	0
Total	3,979,029	2,975,914
Pass | Commercial Real Estate
Financing Receivable, Credit Quality Indicator [Line Items]
2024	1,071,507	1,867,476
2023	1,710,690	2,323,095
2022	1,737,152	631,500
2021	521,677	87,059
2020	17,816	117,928
Prior	53,000	0
Revolving Loans	780,174	960,024
Total	5,892,016	5,987,082
Pass | Commercial & Industrial - Non-RE
Financing Receivable, Credit Quality Indicator [Line Items]
2024	486,830	488,120
2023	411,930	358,214
2022	322,969	29,777
2021	43,934	14,794
2020	7,630	2,098
Prior	4,427	0
Revolving Loans	2,752,431	1,707,619
Total	4,030,151	2,600,622
Pass | Auto & Consumer
Financing Receivable, Credit Quality Indicator [Line Items]
2024	27,105	161,831
2023	136,439	256,154
2022	215,435	70,223
2021	55,732	24,906
2020	18,658	19,897
Prior	20,624	9,929
Revolving Loans	0	0
Total	473,993	542,940
Pass | Other
Financing Receivable, Credit Quality Indicator [Line Items]
2024	3,061	5,721
2023	0	0
2022	0	1,306
2021	1,071	0
2020	0	0
Prior	982	1,164
Revolving Loans	0	0
Total	5,114	8,191
Special Mention
Financing Receivable, Credit Quality Indicator [Line Items]
2024	0	29,423
2023	57,555	69,251
2022	51,383	12,115
2021	4,028	29,593
2020	19,898	21,461
Prior	40,014	33,312
Revolving Loans	45,528	7,214
Total	218,406	202,369
Special Mention | Single Family - Mortgage & Warehouse
Financing Receivable, Credit Quality Indicator [Line Items]
2024	0	0
2023	10,593	7,280
2022	13,575	7,026
2021	3,928	8,303
2020	8,851	12,942
Prior	38,883	18,244
Revolving Loans	0	6,614
Total	75,830	60,409
Special Mention | Multifamily and Commercial Mortgage
Financing Receivable, Credit Quality Indicator [Line Items]
2024	0	0
2023	9,096	9,691
2022	1,985	4,636
2021	0	1,360
2020	459	7,705
Prior	1,085	0
Revolving Loans	0	0
Total	12,625	23,392
Special Mention | Commercial Real Estate
Financing Receivable, Credit Quality Indicator [Line Items]
2024	0	29,000
2023	0	43,427
2022	0	0
2021	0	8,457
2020	0	800
Prior	0	15,062
Revolving Loans	0
Total	0	96,746
Special Mention | Commercial & Industrial - Non-RE
Financing Receivable, Credit Quality Indicator [Line Items]
2024	0	0
2023	37,404	8,221
2022	35,179	0
2021	0	11,413
2020	10,554	0
Prior	0	0
Revolving Loans	45,528	600
Total	128,665	20,234
Special Mention | Auto & Consumer
Financing Receivable, Credit Quality Indicator [Line Items]
2024	0	423
2023	462	632
2022	644	453
2021	100	60
2020	34	14
Prior	46	6
Revolving Loans	0	0
Total	1,286	1,588
Special Mention | Other
Financing Receivable, Credit Quality Indicator [Line Items]
2024	0	0
2023	0	0
2022	0	0
2021	0	0
2020	0	0
Prior	0	0
Revolving Loans	0	0
Total	0	0
Substandard
Financing Receivable, Credit Quality Indicator [Line Items]
2024	0	350
2023	24,360	58,080
2022	79,429	49,633
2021	50,057	71,874
2020	63,201	23,854
Prior	99,484	68,361
Revolving Loans	0	0
Total	316,531	272,152
Substandard | Single Family - Mortgage & Warehouse
Financing Receivable, Credit Quality Indicator [Line Items]
2024	0	0
2023	285	5,188
2022	4,292	4,686
2021	3,910	14,384
2020	14,999	2,024
Prior	47,619	24,386
Revolving Loans	0	0
Total	71,105	50,668
Substandard | Multifamily and Commercial Mortgage
Financing Receivable, Credit Quality Indicator [Line Items]
2024	0	0
2023	4,992	3,145
2022	7,250	5,686
2021	10,457	38,857
2020	33,075	6,181
Prior	17,591	29,050
Revolving Loans	0	0
Total	73,365	82,919
Substandard | Commercial Real Estate
Financing Receivable, Credit Quality Indicator [Line Items]
2024	0	0
2023	18,657	29,200
2022	52,338	37,951
2021	34,250	18,500
2020	15,000	15,487
Prior	31,139	14,852
Revolving Loans	0	0
Total	151,384	115,990
Substandard | Commercial & Industrial - Non-RE
Financing Receivable, Credit Quality Indicator [Line Items]
2024	0	0
2023	0	17,762
2022	14,624	1,032
2021	1,032	0
2020	0	0
Prior	2,989	0
Revolving Loans	0	0
Total	18,645	18,794
Substandard | Auto & Consumer
Financing Receivable, Credit Quality Indicator [Line Items]
2024	0	350
2023	426	785
2022	925	233
2021	372	133
2020	127	162
Prior	146	73
Revolving Loans	0	0
Total	1,996	1,736
Substandard | Other
Financing Receivable, Credit Quality Indicator [Line Items]
2024	0	0
2023	0	2,000
2022	0	45
2021	36	0
2020	0	0
Prior	0	0
Revolving Loans	0	0
Total	36	2,045
Doubtful
Financing Receivable, Credit Quality Indicator [Line Items]
2024	0	0
2023	0	0
2022	0	0
2021	0	0
2020	0	0
Prior	0	0
Revolving Loans	0	0
Total	0	0
Doubtful | Single Family - Mortgage & Warehouse
Financing Receivable, Credit Quality Indicator [Line Items]
2024	0	0
2023	0	0
2022	0	0
2021	0	0
2020	0	0
Prior	0	0
Revolving Loans	0	0
Total	0	0
Doubtful | Multifamily and Commercial Mortgage
Financing Receivable, Credit Quality Indicator [Line Items]
2024	0	0
2023	0	0
2022	0	0
2021	0	0
2020	0	0
Prior	0	0
Revolving Loans	0	0
Total	0	0
Doubtful | Commercial Real Estate
Financing Receivable, Credit Quality Indicator [Line Items]
2024	0	0
2023	0	0
2022	0	0
2021	0	0
2020	0	0
Prior	0	0
Revolving Loans	0	0
Total	0	0
Doubtful | Commercial & Industrial - Non-RE
Financing Receivable, Credit Quality Indicator [Line Items]
2024	0	0
2023	0	0
2022	0	0
2021	0	0
2020	0	0
Prior	0	0
Revolving Loans	0	0
Total	0	0
Doubtful | Auto & Consumer
Financing Receivable, Credit Quality Indicator [Line Items]
2024	0	0
2023	0	0
2022	0	0
2021	0	0
2020	0	0
Prior	0	0
Revolving Loans	0	0
Total	0	0
Doubtful | Other
Financing Receivable, Credit Quality Indicator [Line Items]
2024	0	0
2023	0	0
2022	0	0
2021	0	0
2020	0	0
Prior	0	0
Revolving Loans	0	0
Total	$ 0	$ 0

XML

LOANS & ALLOWANCE FOR CREDIT LOSSES - PAST DUE LOANS (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Jun. 30, 2023
Financing Receivable, Past Due [Line Items]
Total	$ 18,860,409	$ 16,652,026
Single Family - Mortgage & Warehouse
Financing Receivable, Past Due [Line Items]
Total	4,092,104	4,173,833
Multifamily and Commercial Mortgage
Financing Receivable, Past Due [Line Items]
Total	4,065,019	3,082,225
Commercial Real Estate
Financing Receivable, Past Due [Line Items]
Total	6,043,400	6,199,818
Commercial & Industrial - Non-RE
Financing Receivable, Past Due [Line Items]
Total	4,177,461	2,639,650
Auto & Consumer
Financing Receivable, Past Due [Line Items]
Total	477,275	546,264
Other
Financing Receivable, Past Due [Line Items]
Total	5,150	10,236
Current
Financing Receivable, Past Due [Line Items]
Total	$ 18,668,443	$ 16,508,938
As a % of total gross loans	98.98%	99.14%
Current | Single Family - Mortgage & Warehouse
Financing Receivable, Past Due [Line Items]
Total	$ 3,994,250	$ 4,102,150
Current | Multifamily and Commercial Mortgage
Financing Receivable, Past Due [Line Items]
Total	4,022,438	3,048,217
Current | Commercial Real Estate
Financing Receivable, Past Due [Line Items]
Total	6,001,011	6,173,716
Current | Commercial & Industrial - Non-RE
Financing Receivable, Past Due [Line Items]
Total	4,177,461	2,639,650
Current | Auto & Consumer
Financing Receivable, Past Due [Line Items]
Total	468,133	537,181
Current | Other
Financing Receivable, Past Due [Line Items]
Total	5,150	8,024
30-59 Days
Financing Receivable, Past Due [Line Items]
Total	$ 35,684	$ 41,384
As a % of total gross loans	0.19%	0.25%
30-59 Days | Single Family - Mortgage & Warehouse
Financing Receivable, Past Due [Line Items]
Total	$ 20,770	$ 20,832
30-59 Days | Multifamily and Commercial Mortgage
Financing Receivable, Past Due [Line Items]
Total	8,109	2,705
30-59 Days | Commercial Real Estate
Financing Receivable, Past Due [Line Items]
Total	0	11,250
30-59 Days | Commercial & Industrial - Non-RE
Financing Receivable, Past Due [Line Items]
Total	0	0
30-59 Days | Auto & Consumer
Financing Receivable, Past Due [Line Items]
Total	6,805	6,529
30-59 Days | Other
Financing Receivable, Past Due [Line Items]
Total	0	68
60-89 Days
Financing Receivable, Past Due [Line Items]
Total	$ 12,760	$ 10,803
As a % of total gross loans	0.07%	0.06%
60-89 Days | Single Family - Mortgage & Warehouse
Financing Receivable, Past Due [Line Items]
Total	$ 10,364	$ 7,971
60-89 Days | Multifamily and Commercial Mortgage
Financing Receivable, Past Due [Line Items]
Total	1,085	1,124
60-89 Days | Commercial Real Estate
Financing Receivable, Past Due [Line Items]
Total	0	0
60-89 Days | Commercial & Industrial - Non-RE
Financing Receivable, Past Due [Line Items]
Total	0	0
60-89 Days | Auto & Consumer
Financing Receivable, Past Due [Line Items]
Total	1,311	1,707
60-89 Days | Other
Financing Receivable, Past Due [Line Items]
Total	0	1
90+ Days
Financing Receivable, Past Due [Line Items]
Total	$ 143,522	$ 90,901
As a % of total gross loans	0.76%	0.55%
90+ Days | Single Family - Mortgage & Warehouse
Financing Receivable, Past Due [Line Items]
Total	$ 66,720	$ 42,880
90+ Days | Multifamily and Commercial Mortgage
Financing Receivable, Past Due [Line Items]
Total	33,387	30,179
90+ Days | Commercial Real Estate
Financing Receivable, Past Due [Line Items]
Total	42,389	14,852
90+ Days | Commercial & Industrial - Non-RE
Financing Receivable, Past Due [Line Items]
Total	0	0
90+ Days | Auto & Consumer
Financing Receivable, Past Due [Line Items]
Total	1,026	847
90+ Days | Other
Financing Receivable, Past Due [Line Items]
Total	$ 0	2,143
Total
Financing Receivable, Past Due [Line Items]
Total		$ 16,652,026
As a % of total gross loans	100.00%	100.00%

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DERIVATIVES - Schedule of Fair Values and Notional Amounts (Details) - USD ($)	Dec. 31, 2023	Jun. 30, 2023
Derivative [Line Items]
Derivative instruments in hedges, at fair value, net	$ 0	$ 0
Interest Rate Contracts
Derivative [Line Items]
Derivative Assets — Fair Value	96,084,000	919,000
Derivative Liabilities — Fair Value	92,144,000	691,000
Derivative Assets — Notional	1,316,516,000	231,709,000
Derivative Liabilities — Notional	$ 1,319,604,000	$ 204,522,000

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DERIVATIVES - Schedule of Gains (Losses) of Derivatives Instruments (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2023	Dec. 31, 2022
Banking and service fees
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, gain (loss) on derivative, net	$ 50	$ 119	$ 390	$ 119
Mortgage banking and servicing rights income
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, gain (loss) on derivative, net	$ 231	$ 23	$ 508	$ 285

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STOCKHOLDERS’ EQUITY AND STOCK-BASED COMPENSATION - NARRATIVE (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2023	Dec. 31, 2022	Nov. 09, 2023
Stock Award Compensation Expense
Stock repurchase amount	$ 58,650		$ 83,186
Stock Incentive Plan, 2014
Stock Award Compensation Expense
Share-based compensation arrangement by share-based payment award, number of shares authorized					1,000,000
RSUs
Stock Award Compensation Expense
Total fair value of shares vested	$ 100	$ 100	$ 14,900	$ 12,100
RSUs | Stock Incentive Plan, 2014
Stock Award Compensation Expense
Share-based compensation arrangement by share-based payment award, number of shares available for grant	1,932,436		1,932,436
Unrecognized compensation expense	$ 45,400		$ 45,400
Weighted-average remaining time period			1 year 3 months 18 days
Common Stock
Stock Award Compensation Expense
Stock repurchase amount	$ 58,700		$ 83,200
Purchase of treasury stock (in shares)	1,607,301		2,255,509
Repurchased stock, average price per share (in dollars per share)	$ 36.49		$ 36.88

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STOCKHOLDERS’ EQUITY AND STOCK-BASED COMPENSATION - CHANGES IN RESTRICTED STOCK UNIT GRANTS (Details) - RSUs	6 Months Ended
	Dec. 31, 2023 $ / shares shares
RSUs
Non-vested balance, beginning (in shares) | shares	1,407,882
Granted (in shares) | shares	643,746
Vested (in shares) | shares	(363,263)
Forfeited (in shares) | shares	(42,012)
Non-vested balance, ending (in shares) | shares	1,646,353
Weighted-Average Grant-Date Fair Value
Non-vested balance, beginning (in dollars per share) | $ / shares	$ 41.53
Granted (in dollars per share) | $ / shares	42.66
Vested (in dollars per share) | $ / shares	37.65
Forfeited (in dollars per share) | $ / shares	40.33
Non-vested balance, ending (in dollars per share) | $ / shares	$ 42.86

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EARNINGS PER COMMON SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2023	Dec. 31, 2022
Earnings Per Common Share
Net income	$ 151,771	$ 81,552	$ 234,416	$ 139,959
Average common shares outstanding (in shares)	57,216,621	59,999,573	58,082,830	59,927,078
Basic earnings per common share (in dollars per share)	$ 2.65	$ 1.36	$ 4.04	$ 2.34
Diluted Earnings Per Common Share
Net income	$ 151,771	$ 81,552	$ 234,416	$ 139,959
Average common shares issued and outstanding (in shares)	57,216,621	59,999,573	58,082,830	59,927,078
Total dilutive common shares outstanding (in shares)	57,932,834	60,514,635	58,930,427	60,540,353
Diluted earnings per common share (in dollars per share)	$ 2.62	$ 1.35	$ 3.98	$ 2.31
Weighted average antidilutive common stock equivalents (excluded from the computation of EPS) (in shares)	1,598	249,075	837	51,793
RSUs
Diluted Earnings Per Common Share
Dilutive effect of average unvested RSUs (in shares)	716,213	515,062	847,597	613,275

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COMMITMENTS AND CONTINGENCIES - SCHEDULE OF MATURITIES OF LEASE LIABILITIES (Details) $ in Thousands	Dec. 31, 2023 USD ($)
Commitments and Contingencies Disclosure [Abstract]
Within one year	$ 12,357
After one year and within two years	12,728
After two years and within three years	12,438
After three years and within four years	12,380
After four years within five years	10,570
After five years	17,367
Total lease payments	77,840
Less: amount representing interest	(7,299)
Total lease liability	$ 70,541

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COMMITMENTS AND CONTINGENCIES - NARRATIVE (Details) - USD ($) $ in Millions	12 Months Ended
	Jun. 30, 2023	Dec. 31, 2023
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Off-balance sheet risk, ratio of commitments to originate loans to commitments to sell		95.10%
MUFG Union Bank v. Axos Bank
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Accrued litigation expense	$ 16.0
General and administrative expense	$ 16.0
Loan Origination Commitments
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Off-balance sheet, loan origination commitment		$ 3,502.4
Loan Origination Commitments | Fixed Interest Rate
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Off-balance sheet, loan origination commitment		$ 107.6
Weighted average fixed interest rate on commitments to extend credit		8.17%
Loan Origination Commitments | Fixed Interest Rate | Sales commitment
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Off-balance sheet, commitment		$ 13.7
Loan Origination Commitments | Variable Interest Rate
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Off-balance sheet, loan origination commitment		$ 3,394.8

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SEGMENT REPORTING AND REVENUE INFORMATION - SEGMENT REPORTING INFORMATION, BY SEGMENT (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2023 USD ($)	Dec. 31, 2022 USD ($)	Dec. 31, 2023 USD ($) segment	Dec. 31, 2022 USD ($)	Jun. 30, 2023 USD ($)
Segment Reporting [Abstract]
Number of operating segments | segment			2
Segment Reporting Information [Line Items]
Net interest income	$ 228,606	$ 199,910	$ 439,761	$ 380,385
Provision for credit losses	13,500	3,001	20,500	11,751
Non-interest income	124,129	28,329	158,636	55,537
Non-interest expense	121,839	108,027	242,345	224,114
INCOME BEFORE INCOME TAXES	217,396	117,211	335,552	200,057
Goodwill	97,673		97,673		$ 97,673
Total Assets	21,623,764		21,623,764		20,348,469
Operating segments | Banking Business
Segment Reporting Information [Line Items]
Net interest income	226,635	198,545	435,854	378,275
Provision for credit losses	13,500	3,001	20,500	11,751
Non-interest income	103,779	10,557	116,336	21,269
Non-interest expense	102,282	96,783	203,068	197,579
INCOME BEFORE INCOME TAXES	214,632	109,318	328,622	190,214
Goodwill	35,721		35,721		35,721
Total Assets	20,757,856		20,757,856		19,396,167
Operating segments | Securities Business
Segment Reporting Information [Line Items]
Net interest income	6,080	4,876	11,622	9,151
Provision for credit losses	0	0	0	0
Non-interest income	32,641	36,004	67,196	65,169
Non-interest expense	27,968	25,271	55,491	49,786
INCOME BEFORE INCOME TAXES	10,753	15,609	23,327	24,534
Goodwill	61,952		61,952		61,952
Total Assets	819,744		819,744		899,496
Corporate/Eliminations
Segment Reporting Information [Line Items]
Net interest income	(4,109)	(3,511)	(7,715)	(7,041)
Provision for credit losses	0	0	0	0
Non-interest income	(12,291)	(18,232)	(24,896)	(30,901)
Non-interest expense	(8,411)	(14,027)	(16,214)	(23,251)
INCOME BEFORE INCOME TAXES	(7,989)	$ (7,716)	(16,397)	$ (14,691)
Goodwill	0		0		0
Total Assets	$ 46,164		$ 46,164		$ 52,806

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SEGMENT REPORTING AND REVENUE INFORMATION - NON-INTEREST INCOME (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2023	Dec. 31, 2022
Segment Reporting [Abstract]
Advisory fee income	$ 7,362	$ 6,983	$ 15,581	$ 13,942
Broker-dealer clearing fees	6,068	4,425	11,603	9,658
Deposit service fees	2,414	2,202	3,094	3,308
Card fees	732	2,144	1,414	2,933
Bankruptcy trustee and fiduciary service fees	1,397	2,167	2,791	2,940
Non-interest income (in-scope of ASC 606)	17,973	17,921	34,483	32,781
Non-interest income (out-of-scope of ASC 606)	106,156	10,408	124,153	22,756
Total non-interest income	$ 124,129	$ 28,329	$ 158,636	$ 55,537