EX-99.2 3 financialschedulesforpress.htm EX-99.2 Document


AXOS FINANCIAL, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Unaudited)
At June 30,
(Dollars in thousands, except par and stated value)20222021
ASSETS
Cash and cash equivalents$1,202,587 $715,624 
Cash segregated for regulatory purposes372,112 322,153 
Total cash, cash equivalents, cash segregated1,574,699 1,037,777 
Securities:
Trading1,758 1,983 
Available-for-sale262,518 187,335 
Stock of regulatory agencies20,368 19,995 
Loans held for sale, carried at fair value4,973 29,768 
Loans held for sale, lower of cost or fair value10,938 12,294 
Loans—net of allowance for credit losses of $148,617 as of June 2022 and $132,958 as of June 2021
14,091,061 11,414,814 
Mortgage servicing rights, carried at fair value 25,213 17,911 
Other real estate owned and repossessed vehicles798 6,782 
Securities borrowed338,980 619,088 
Customer, broker-dealer and clearing receivables471,857 369,815 
Goodwill and other intangible assets—net156,405 115,972 
Other assets496,037 432,031 
TOTAL ASSETS$17,455,605 $14,265,565 
LIABILITIES AND STOCKHOLDERS’ EQUITY
Deposits:
Non-interest bearing$5,033,970 $2,474,424 
Interest bearing8,912,452 8,341,373 
Total deposits13,946,422 10,815,797 
Advances from the Federal Home Loan Bank117,500 353,500 
Borrowings, subordinated notes and debentures445,244 221,358 
Securities loaned474,400 728,988 
Customer, broker-dealer and clearing payables566,094 535,425 
Accounts payable and accrued liabilities and other liabilities262,972 209,561 
Total liabilities15,812,632 12,864,629 
STOCKHOLDERS’ EQUITY:
Common stock—$0.01 par value; 150,000,000 shares authorized, 68,859,722 shares issued and 59,777,949 shares outstanding as of June 2022; 68,069,321 shares issued and 59,317,944 shares outstanding as of June 2021689 681 
Additional paid-in capital453,784 432,550 
Accumulated other comprehensive income (loss)—net of tax(2,933)2,507 
Retained earnings1,428,444 1,187,728 
Treasury stock, at cost; 9,081,773 shares as of June 2022 and 8,751,377 shares as of June 2021(237,011)(222,530)
Total stockholders’ equity1,642,973 1,400,936 
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY$17,455,605 $14,265,565 
S-1

AXOS FINANCIAL, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
 For the Quarters Ended June 30,
(Dollars in thousands, except earnings per share)20222021
INTEREST AND DIVIDEND INCOME:
Loans, including fees$174,110 $147,965 
Securities borrowed and customer receivables4,462 6,270 
Investments5,589 2,686 
Total interest and dividend income184,161 156,921 
INTEREST EXPENSE:
Deposits11,179 10,846 
Advances from the Federal Home Loan Bank1,663 982 
Securities loaned503 664 
Other borrowings5,406 2,775 
Total interest expense18,751 15,267 
Net interest income165,410 141,654 
Provision for credit losses6,000 1,250 
Net interest income, after provision for credit losses159,410 140,404 
NON-INTEREST INCOME:
Prepayment penalty fee income4,230 2,877 
Gain on sale - other59 (213)
Mortgage banking income3,439 2,895 
Broker-dealer fee income13,064 6,386 
Banking and service fees6,308 4,856 
Total non-interest income27,100 16,801 
NON-INTEREST EXPENSE:
Salaries and related costs43,541 37,209 
Data processing13,594 12,947 
Depreciation and amortization6,022 6,211 
Professional services7,649 4,901 
Advertising and promotional3,449 3,612 
Occupancy and equipment3,480 4,163 
Broker-dealer clearing charges3,940 3,166 
FDIC and regulatory fees3,967 2,203 
General and administrative expense19,151 7,448 
Total non-interest expense104,793 81,860 
INCOME BEFORE INCOME TAXES81,717 75,345 
INCOME TAXES23,821 21,090 
NET INCOME$57,896 $54,255 
NET INCOME ATTRIBUTABLE TO COMMON STOCK$57,896 $54,255 
COMPREHENSIVE INCOME$56,589 $54,469 
Basic earnings per share$0.97 $0.92 
Diluted earnings per share$0.96 $0.90 


S-2


AXOS FINANCIAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
Year Ended June 30,
(Dollars in thousands, except earnings per share)202220212020
INTEREST AND DIVIDEND INCOME:
Loans, including fees$626,628 $584,410 $582,748 
Securities borrowed and customer receivables20,512 20,466 16,585 
Investments12,588 12,987 23,506 
Total interest and dividend income659,728 617,863 622,839 
INTEREST EXPENSE:
Deposits33,620 60,529 126,916 
Advances from the Federal Home Loan Bank4,625 4,672 11,988 
Securities loaned1,124 1,496 679 
Other borrowings13,201 12,424 5,645 
Total interest expense52,570 79,121 145,228 
Net interest income607,158 538,742 477,611 
Provision for credit losses18,500 23,750 42,200 
Net interest income, after provision for credit losses588,658 514,992 435,411 
NON-INTEREST INCOME:
Prepayment penalty fee income13,303 7,166 5,993 
Gain on sale - other165 491 6,871 
Mortgage banking income19,033 42,150 20,646 
Broker-dealer fee income52,110 26,317 23,210 
Banking and service fees28,752 29,137 46,267 
Total non-interest income113,363 105,261 102,987 
NON-INTEREST EXPENSE:
Salaries and related costs167,390 152,576 144,341 
Data processing50,159 40,719 30,671 
Depreciation and amortization24,596 24,124 24,443 
Professional services22,482 22,241 11,095 
Advertising and promotional13,580 14,212 14,523 
Occupancy and equipment13,745 13,402 12,059 
Broker-dealer clearing charges15,184 11,152 8,210 
FDIC and regulatory fees11,823 10,603 5,538 
General and administrative expense43,103 25,481 24,886 
Total non-interest expense362,062 314,510 275,766 
INCOME BEFORE INCOME TAXES339,959 305,743 262,632 
INCOME TAXES99,243 90,036 79,194 
NET INCOME$240,716 $215,707 $183,438 
NET INCOME ATTRIBUTABLE TO COMMON STOCK$240,716 $215,518 $183,129 
COMPREHENSIVE INCOME$235,276 $219,151 $182,485 
Basic earnings per share$4.04 $3.64 $3.01 
Diluted earnings per share$3.97 $3.56 $2.98 
S-3

AXOS FINANCIAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Unaudited)
Year Ended June 30,
(Dollars in thousands)202220212020
NET INCOME$240,716 $215,707 $183,438 
Net unrealized gain (loss) from available-for-sale securities, net of tax expense (benefit) of $(2,416), $1,495, and $(381) for the years ended June 30, 2022, 2021 and 2020, respectively.(5,440)3,444 (953)
Other comprehensive income (loss)$(5,440)$3,444 $(953)
COMPREHENSIVE INCOME$235,276 $219,151 $182,485 

S-4


AXOS FINANCIAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY
(Unaudited)
Preferred StockCommon StockAdditional
Paid-in
Capital		Retained
Earnings		Accumulated Other Comprehensive Income (Loss), Net of
Income Tax		Treasury
Stock		Total
  Number of Shares 
(Dollars in thousands)SharesAmountIssuedTreasuryOutstandingAmount
Balance as of June 30, 2019515 $5,063 66,563,922 (5,435,105)61,128,817 $666 $389,945 $826,170 $16 $(148,810)$1,073,050 
Net income— — — — — — — 183,438 — — 183,438 
Other comprehensive income (loss)— — — — — — — — (953)— (953)
Cash dividends on preferred stock— — — — — — — (309)— — (309)
Purchase of treasury stock— — — (1,970,464)(1,970,464)— — — — (38,858)(38,858)
Stock-based compensation expense and restricted stock unit vesting— — 759,131 (304,849)454,282 7 21,928 — — (7,457)14,478 
Balance as of June 30, 2020515 $5,063 67,323,053 (7,710,418)59,612,635 $673 $411,873 $1,009,299 $(937)$(195,125)$1,230,846 
Cumulative effect of change in accounting principle net of tax, adoption of ASU No. 2016-13— — — — — — — (37,088)— — (37,088)
Net income— — — — — — — 215,707 — — 215,707 
Other comprehensive income (loss)— — — — — — — — 3,444 — 3,444 
Cash dividends on preferred stock— — — — — — — (103)— — (103)
Preferred stock - Series A redemption(515)(5,063)— — — — — (87)— — (5,150)
Purchase of treasury stock— — — (753,597)(753,597)— — — — (16,757)(16,757)
Stock-based compensation expense and restricted stock unit vesting— — 746,268 (287,362)458,906 8 20,677 — — (10,648)10,037 
Balance as of June 30, 2021— $— 68,069,321 (8,751,377)59,317,944 $681 $432,550 $1,187,728 $2,507 $(222,530)$1,400,936 
Net income— — — — — — — 240,716 — — 240,716 
Other comprehensive income (loss)— — — — — — — — (5,440)— (5,440)
Stock-based compensation expense and restricted stock unit vesting— — 790,401 (330,396)460,005 8 21,234 — — (14,481)6,761 
Balance as of June 30, 2022— $— 68,859,722 (9,081,773)59,777,949 $689 $453,784 $1,428,444 $(2,933)$(237,011)$1,642,973 

S-5


AXOS FINANCIAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Year Ended June 30,
(Dollars in thousands)202220212020
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income$240,716 $215,707 $183,438 
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Accretion and amortization on securities, net(423)(365)291 
Net accretion of discounts on loans(7,249)(7,050)(35,493)
Amortization of borrowing costs706 1,569 208 
Amortization of operating lease right of use asset10,899 10,598 10,543 
Stock-based compensation expense21,242 20,685 21,935 
Trading activity225 (1,878)1,217 
Provision for credit losses18,500 23,750 42,200 
Deferred income taxes(9,400)(8,828)(6,551)
Origination of loans held for sale(656,487)(1,608,700)(1,601,579)
Unrealized (gain) loss on loans held for sale733 1,469 (1,360)
Gain on sales of loans held for sale(19,198)(42,641)(27,517)
Proceeds from sale of loans held for sale696,832 1,671,515 1,614,379 
Amortization and change in fair value of mortgage servicing rights(2,228)6,319 5,806 
(Gain) loss on sale of other real estate and foreclosed assets(458)(201)(449)
Depreciation and amortization24,596 24,124 24,443 
Net changes in assets and liabilities which provide (use) cash:
Securities borrowed280,108 (396,720)(77,662)
Customer, broker-dealer and clearing receivables(98,365)(149,549)(17,074)
Other assets(116,202)(7,259)(36,979)
Securities loaned(254,588)473,043 57,589 
Customer, broker-dealer and clearing payables30,669 187,811 109,010 
Accounts payable and other liabilities45,382 (817)17,723 
Net cash provided by operating activities$206,010 $412,582 $284,118 
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of investment securities(143,733)(122,338)(304,930)
Proceeds from sales of securities75,023 — — 
Proceeds from repayment of securities61,117 74,667 325,704 
Purchase of stock of regulatory agencies(54,350)(305)(55,870)
Proceeds from redemption of stock of regulatory agencies54,350 920 55,536 
Origination of loans held for investment(10,325,104)(5,761,303)(6,573,568)
Proceeds from sale of loans and leases held for investment106,324 80,049 37,300 
Mortgage warehouse loans activity, net333,562 (139,806)(172,319)
Proceeds from sales of other real estate owned and repossessed assets8,654 1,586 2,241 
Acquisition of business activity, net of cash paid (54,597)— — 
Purchases of loans, net of discounts and premiums(33,085)(3,619)— 
Principal repayments on loans7,220,931 5,013,817 5,349,800 
Purchases of furniture, equipment, software and intangibles(21,504)(10,437)(12,333)
Net cash used in investing activities$(2,772,412)$(866,769)$(1,348,439)
Continued on Next Page
CASH FLOWS FROM FINANCING ACTIVITIES:
Net increase (decrease) in deposits3,130,625 (520,897)2,353,521 
Proceeds from the Federal Home Loan Bank term advances— — 65,000 
Repayments of the Federal Home Loan Bank term advances(50,000)(70,000)(55,000)
Net (repayment) proceeds of Federal Home Loan Bank other advances(186,000)181,000 (226,000)
Redemption of subordinated notes— (51,000)— 
Repayment of Paycheck Protection Program Liquidity Facility advances— (151,952)— 
Proceeds from Paycheck Protection Program Liquidity Facility advances— — 151,952 
Net (repayment) proceeds of other borrowings75,300 14,700 (85,300)
Tax payments related to settlement of restricted stock units(14,481)(10,648)(7,457)
Repurchase of treasury stock— (16,757)(38,858)
Redemption of preferred stock, Series A— (5,150)— 
Cash dividends paid on preferred stock— (103)(386)
Payment of debt issuance costs(2,120)(2,748)— 
Proceeds from issuance of subordinated notes150,000 175,000 — 
Net cash provided by financing activities$3,103,324 $(458,555)$2,157,472 
NET CHANGE IN CASH AND CASH EQUIVALENTS536,922 (912,742)1,093,151 
CASH AND CASH EQUIVALENTS—Beginning of year1,037,777 1,950,519 857,368 
CASH AND CASH EQUIVALENTS—End of year$1,574,699 $1,037,777 $1,950,519 
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Interest paid on interest-bearing liabilities$50,269 $77,995 $145,452 
Income taxes paid99,701 92,506 80,430 
Transfers to other real estate and repossessed vehicles2,134 1,903 1,315 
Transfers from loans and leases held for investment to loans held for sale105,884 71,136 141,849 
Transfers from loans held for sale to loans and leases held for investment3,098 29,616 — 
Securities transferred from available-for-sale portfolio to other assets— 70,751 17,482 
Loans held for investment sold, cash not received— — 61,029 
Operating lease liabilities for obtaining right of use assets16,539 — 82,950 
Impact of adoption of ASC 326 on retained earnings— 37,088 — 



S-6

LOANS & ALLOWANCE FOR CREDIT LOSSES
The following table sets forth the composition of the loan portfolio as of the dates indicated:
(Unaudited)
(Dollars in thousands)		June 30, 2022June 30, 2021
Single Family - Mortgage & Warehouse$3,988,462 $4,359,472 
Multifamily and Commercial Mortgage2,877,680 2,470,454 
Commercial Real Estate4,781,044 3,180,453 
Commercial & Industrial - Non-RE2,028,128 1,123,869 
Auto & Consumer567,228 362,180 
Other11,134 58,316 
  Total gross loans14,253,676 11,554,744 
Allowance for credit losses - loans(148,617)(132,958)
Unaccreted premiums (discounts) and loan fees(13,998)(6,972)
  Total net loans$14,091,061 $11,414,814 


S-7

SECURITIES
The amortized cost, carrying amount and fair value for the trading and available for sale securities at June 30, 2022 and June 30, 2021 were:
June 30, 2022
TradingAvailable for sale
(Unaudited)
(Dollars in thousands) 		Fair
Value		Amortized
Cost		Unrealized
Gains		Unrealized
Losses		Fair
Value
Mortgage-backed securities (MBS):
U.S agencies1
$— $27,722 $9 $(2,406)$25,325 
Non-agency2
— 187,616 1,832 (2,634)186,814 
Total mortgage-backed securities— 215,338 1,841 (5,040)212,139 
Non-MBS:
Municipal1,758 3,529 — (281)3,248 
Asset-backed securities and structured notes— 47,000 131 — 47,131 
Total Non-MBS1,758 50,529 131 (281)50,379 
Total debt securities$1,758 $265,867 $1,972 $(5,321)$262,518 
  June 30, 2021
TradingAvailable for sale
(Unaudited)
(Dollars in thousands) 		Fair
Value		Amortized
Cost		Unrealized
Gains		Unrealized
Losses		Fair
Value
Mortgage-backed securities (MBS):
U.S agencies1
$— $23,639 $420 $(146)$23,913 
Non-agency2
— 65,174 2,862 (421)67,615 
Total mortgage-backed securities— 88,813 3,282 (567)91,528 
Non-MBS:
Municipal1,983 3,466 99 — 3,565 
Asset-backed securities and structured notes— 90,549 1,693 — 92,242 
Total Non-MBS1,983 94,015 1,792 — 95,807 
Total debt securities$1,983 $182,828 $5,074 $(567)$187,335 
1 Includes securities guaranteed by Ginnie Mae, a U.S. government agency, and the government sponsored enterprises Fannie Mae and Freddie Mac.
2 Private sponsors of securities collateralized primarily by first - lien mortgage loans on commercial properties or by pools of 1-4 family residential first mortgages. Primarily super senior securities secured by Alt-A or pay-option ARM mortgages.

S-8

DEPOSITS
The following table sets forth the composition of deposits by type and weighted average interest rate as of the dates indicated:
 (Unaudited)June 30, 2022June 30, 2021
(Dollars in thousands)Amount
Rate1
Amount
Rate1
Non-interest bearing$5,033,967 — %$2,474,424 — %
Interest bearing:
Demand3,611,891 0.61 %3,369,845 0.15 %
Savings4,245,555 0.95 %3,458,687 0.21 %
       Total interest-bearing demand and savings7,857,446 0.79 %6,828,532 0.18 %
Time deposits:
$250 and under651,392 1.22 %1,070,139 1.30 %
Greater than $250403,616 1.41 %442,702 1.03 %
       Total time deposits1,055,008 1.25 %1,512,841 1.22 %
Total interest bearing2
8,912,454 0.85 %8,341,373 0.37 %
Total deposits$13,946,421 0.54 %$10,815,797 0.29 %
1. Based on weighted-average stated interest rates at end of period.
2. The total interest-bearing includes brokered deposits of $1,032.7 million and $621.4 million as of June 30, 2022 and June 30, 2021, respectively, of which $250.0 million and $380.0 million, respectively, are time deposits classified as $250 and under.


The number of deposit accounts at the end of each of the last two fiscal years is set forth below:
At June 30,
20222021
Non-interest-bearing42,372 36,726 
Checking and savings accounts344,593 336,068 
Time deposits8,734 12,815 
Total number of deposit accounts395,699 385,609 

S-9

AVERAGE BALANCES, NET INTEREST INCOME, YIELDS EARNED AND RATES PAID
The following table presents information regarding (i) average balances; (ii) the total amount of interest income from interest-earning assets and the weighted average yields on such assets; (iii) the total amount of interest expense on interest-bearing liabilities and the weighted average rates paid on such liabilities; (iv) net interest income; (v) interest rate spread; and (vi) net interest margin:
For the Three Months Ended
June 30,
20222021
(Unaudited)
(Dollars in thousands)
Average
Balance1
Interest
Income /
Expense
Average
Yields
Earned /
Rates Paid2
Average
Balance1
Interest
Income /
Expense
Average
Yields
Earned /
Rates Paid2
Assets:
Loans3,4
$13,706,238 $174,110 5.08 %$11,485,248 $147,965 5.15 %
Interest-earning deposits in other financial institutions1,239,655 2,597 0.84 %1,930,140 703 0.15 %
Mortgage-backed and other investment securities4
241,300 2,648 4.39 %158,221 1,376 3.48 %
Securities borrowed and margin lending592,234 4,462 3.01 %864,702 6,270 2.90 %
Stock of the regulatory agencies24,852 344 5.54 %20,520 607 11.83 %
Total interest-earning assets15,804,279 184,161 4.66 %14,458,831 156,921 4.34 %
Non-interest-earning assets794,171 438,287 
Total assets$16,598,450 $14,897,118 
Liabilities and Stockholders’ Equity:
Interest-bearing demand and savings$7,007,304 $8,379 0.48 %$7,441,814 $5,118 0.28 %
Time deposits1,012,705 2,800 1.11 %1,632,525 5,728 1.40 %
Securities loaned408,416 503 0.49 %412,385 664 0.64 %
Advances from the FHLB543,247 1,663 1.22 %171,808 982 2.29 %
Borrowings, subordinated notes and debentures448,754 5,406 4.82 %274,664 2,775 4.04 %
Total interest-bearing liabilities9,420,426 18,751 0.80 %9,933,196 15,267 0.61 %
Non-interest-bearing demand deposits4,714,018 2,586,766 
Other non-interest-bearing liabilities824,704 981,989 
Stockholders’ equity1,639,302 1,395,167 
Total liabilities and stockholders’ equity$16,598,450  $14,897,118  
Net interest income$165,410 $141,654 
Interest rate spread6
3.86 %3.73 %
Net interest margin7
  4.19 %  3.92 %
1 Average balances are obtained from daily data.
2 Annualized.
3 Loans include loans held for sale, loan premiums and unearned fees.
4 Interest income includes reductions for amortization of loan and investment securities premiums and earnings from accretion of discounts and loan fees. Loans include average balances of $26.1 million and $26.9 million of Community Reinvestment Act loans which are taxed at a reduced rate for the 2022 and 2021 three-month periods respectively.
5 Margin lending is the significant component of the asset titled customer, broker-dealer and clearing receivables on the unaudited condensed consolidated balance sheets.
6 Interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average rate paid on interest-bearing liabilities.
7 Net interest margin represents net interest income as a percentage of average interest-earning assets.


S-10

AVERAGE BALANCES, NET INTEREST INCOME, YIELDS EARNED AND RATES PAID
The following tables set forth, for the periods indicated, information regarding (i) average balances; (ii) the total amount of interest income from interest-earning assets and the weighted average yields on such assets; (iii) the total amount of interest expense on interest-bearing liabilities and the weighted average rates paid on such liabilities; (iv) net interest income; (v) interest rate spread; and (vi) net interest margin:
For the Fiscal Years Ended June 30,
202220212020
(Unaudited)
(Dollars in thousands)
Average
Balance1
Interest
Income /
Expense		Average
Yields
Earned /
Rates Paid
Average
Balance1
Interest
Income /
Expense		Average
Yields
Earned /
Rates Paid
Average
Balance1
Interest
Income /
Expense		Average
Yields
Earned /
Rates Paid
Assets:
Loans2,3
$12,577,397 $626,628 4.98 %$11,332,020 $584,410 5.16 %$10,149,867 $582,748 5.74 %
Interest-earning deposits in other financial institutions1,233,983 4,501 0.36 %1,600,811 2,185 0.14 %833,612 10,906 1.31 %
Mortgage-backed and other investment securities3
174,651 6,952 3.98 %192,420 9,560 4.97 %217,598 11,061 5.08 %
Securities borrowed and margin lending4
687,363 20,512 2.98 %613,735 20,466 3.33 %362,063 16,585 4.58 %
Stock of the regulatory agencies21,844 1,135 5.20 %20,588 1,242 6.03 %28,776 1,539 5.35 %
Total interest-earning assets14,695,238 659,728 4.49 %13,759,574 617,863 4.49 %11,591,916 622,839 5.37 %
Non-interest-earning assets658,194 394,085 395,789 
Total assets$15,353,432 $14,153,659 $11,987,705 
Liabilities and Stockholders’ Equity:
Interest-bearing demand and savings$6,762,705 $20,053 0.30 %$7,204,698 $29,031 0.40 %$4,844,700 $66,883 1.38 %
Time deposits1,226,774 13,567 1.11 %1,825,795 31,498 1.73 %2,482,151 60,033 2.42 %
Securities loaned469,051 1,124 0.24 %412,385 1,496 0.36 %247,420 679 0.27 %
Advances from the FHLB349,796 4,625 1.32 %211,077 4,672 2.21 %747,358 11,988 1.60 %
Borrowings, subordinated notes and debentures310,454 13,201 4.25 %340,699 12,424 3.65 %103,652 5,645 5.45 %
Total interest-bearing liabilities9,118,780 52,570 0.58 %9,994,654 79,121 0.79 %8,425,281 145,228 1.72 %
Non-interest-bearing demand deposits3,929,457 2,182,009 1,990,005 
Other non-interest-bearing liabilities762,833 671,581 397,506 
Stockholders’ equity1,542,362 1,305,415 1,174,913 
Total liabilities and stockholders’ equity$15,353,432  $14,153,659  $11,987,705  
Net interest income$607,158 $538,742 $477,611 
Interest rate spread5
3.91 %3.70 %3.65 %
Net interest margin6
  4.13 %  3.92 %  4.12 %
1 Average balances are obtained from daily data.
2 Loans include loans held for sale, loan premiums and unearned fees.
3 Interest income includes reductions for amortization of loan and investment securities premiums and earnings from accretion of discounts and loan fees. Loans include average balances of $26.4 million,, $27.2 million, and $28.0 million of Community Reinvestment Act loans which are taxed at a reduced rate for the 2022 2021, and 2020 fiscal years respectively.
4 Margin lending is the significant component of the asset titled customer, broker-dealer and clearing receivables on the unaudited condensed consolidated balance sheets.
5 Interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average rate paid on interest-bearing liabilities.
6 Net interest margin represents net interest income as a percentage of average interest-earning assets.

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AVERAGE BALANCES, NET INTEREST INCOME, YIELDS EARNED AND RATES PAID
BANKING BUSINESS
The following table presents our Banking segment’s information regarding (i) average balances; (ii) the total amount of interest income from interest-earning assets and the weighted average yields on such assets; (iii) the total amount of interest expense on interest-bearing liabilities and the weighted average rates paid on such liabilities; (iv) net interest income; (v) interest rate spread; and (vi) net interest margin for the three months ended June 30, 2022 and 2021:
 For the Three Months Ended
June 30,
 20222021
(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
$13,672,947 $173,334 5.07 %$11,444,379 $147,235 5.15 %
Interest-earning deposits in other financial institutions929,695 1,993 0.86 %1,579,835 413 0.10 %
Mortgage-backed and other investment securities4
265,080 2,745 4.14 %182,874 1,505 3.29 %
Stock of the regulatory agencies21,734 344 6.33 %17,250 301 6.98 %
Total interest-earning assets14,889,456 178,416 4.79 %13,224,338 149,454 4.52 %
Non-interest-earning assets298,721 217,543 
Total assets$15,188,177 $13,441,881 
Liabilities and Stockholders’ Equity:
Interest-bearing demand and savings$7,148,061 $8,449 0.47 %$7,553,737 $5,213 0.28 %
Time deposits1,012,705 2,800 1.11 %1,632,525 5,728 1.40 %
Advances from the FHLB543,247 1,663 1.22 %171,808 982 2.29 %
Borrowings, subordinated notes and debentures
33 — — %44,983 40 0.36 %
Total interest-bearing liabilities8,704,046 12,912 0.59 %9,403,053 11,963 0.51 %
Non-interest-bearing demand deposits4,770,915 2,629,016 
Other non-interest-bearing liabilities139,753 104,885 
Stockholders’ equity1,573,463 1,304,927 
Total liabilities and stockholders’ equity$15,188,177 $13,441,881 
Net interest income$165,504 $137,491 
Interest rate spread5
4.20 %4.01 %
Net interest margin6
4.45 %4.16 %
1. Average balances are obtained from daily data.
2. Annualized.
3. Loans include loans held for sale, loan premiums and unearned fees.
4. Interest income includes reductions for amortization of loan and investment securities premiums and earnings from accretion of discounts and loan fees. Loans include average balances of $26.1 million and $26.9 million of Community Reinvestment Act loans which are taxed at a reduced rate for the 2022 and 2021 three-month periods respectively.
5 Interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average rate paid on interest-bearing liabilities.
6 Net interest margin represents net interest income as a percentage of average interest-earning assets.

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SECURITIES BUSINESS
Selected information concerning the Securities segment follows as of and for the three months ended:
(Dollars in thousands)June 30, 2022June 30, 2021
Compensation as a % of net revenue38.0 %32.4 %
FDIC insured program balances at banks (end of period)$3,452,358 $730,248 
Customer margin balances (end of period)$285,894 $327,148 
Customer funds on deposit, including short credits (end of period)$372,112 $322,153 
Clearing:
Total tickets1,236,292 2,053,362 
Correspondents (end of period)71 69 
Securities lending:
Interest-earning assets – stock borrowed (end of period)$338,980 $619,088 
Interest-bearing liabilities – stock loaned (end of period)$474,400 $728,988 

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