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 September 30, 2022

☐ 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: 59,999,339 shares of common stock, $0.01 par value per share, as of October 21, 2022.

AXOS FINANCIAL, INC.

INDEX

	Page
PART I – FINANCIAL INFORMATION	1
ITEM 1.       FINANCIAL STATEMENTS	1
Condensed Consolidated Balance Sheets as of September 30, 2022 (unaudited) and June 30, 2022	1
Condensed Consolidated Statements of Income (unaudited) for the three months ended September 30, 2022 and 2021	2
Condensed Consolidated Statements of Comprehensive Income (unaudited) for the three months ended September 30, 2022 and 2021	3
Condensed Consolidated Statements of Stockholders’ Equity (unaudited) for the three months ended September 30, 2022 and 2021	4
Condensed Consolidated Statements of Cash Flows (unaudited) for the three months ended September 30, 2022 and 2021	5
Notes to Condensed Consolidated Financial Statements	6
ITEM 2.        MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS	28
SELECTED FINANCIAL DATA	31
RESULTS OF OPERATIONS	33
FINANCIAL CONDITION	42
LIQUIDITY	46
OFF-BALANCE SHEET COMMITMENTS	46
CAPITAL RESOURCES AND REQUIREMENTS	47
ITEM 3.       QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK	48
ITEM 4.       CONTROLS AND PROCEDURES	51
PART II – OTHER INFORMATION	52
ITEM 1.       LEGAL PROCEEDINGS	52
ITEM 1A.    RISK FACTORS	52
ITEM 2.       UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS	52
ITEM 3. DEFAULTS UPON SENIOR SECURITIES	52
ITEM 4.     MINE SAFETY DISCLOSURES	52
ITEM 5.       OTHER INFORMATION	52
ITEM 6.       EXHIBITS	53
SIGNATURES	54

PART I – FINANCIAL INFORMATION

ITEM 1.FINANCIAL STATEMENTS

AXOS FINANCIAL, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(Dollars in thousands, except par and stated value)	(Unaudited) September 30, 2022		June 30, 2022
ASSETS
Cash and cash equivalents	$	1,369,170	$	1,202,587
Cash segregated for regulatory purposes	328,878		372,112
Total cash, cash equivalents, and cash segregated	1,698,048		1,574,699
Securities:
Trading	75		1,758
Available-for-sale	257,634		262,518
Stock of regulatory agencies	20,881		20,368
Loans held for sale, carried at fair value	9,463		4,973
Loans held for sale, lower of cost or fair value	10,476		10,938
Loans—net of allowance for credit losses of $155,472 as of September 30, 2022 and $148,617 as of June 30, 2022	15,211,573		14,091,061
Mortgage servicing rights, carried at fair value	26,373		25,213
Securities borrowed	87,622		338,980
Customer, broker-dealer and clearing receivables	410,842		417,417
Goodwill and other intangible assets—net	160,429		156,405
Other assets	513,662		496,835
TOTAL ASSETS	$	18,407,078	$	17,401,165
LIABILITIES AND STOCKHOLDERS’ EQUITY
Deposits:
Non-interest bearing	4,626,907		5,033,970
Interest bearing	10,549,724		8,912,452
Total deposits	15,176,631		13,946,422
Advances from the Federal Home Loan Bank	112,500		117,500
Borrowings, subordinated notes and debentures	425,818		445,244
Securities loaned	206,889		474,400
Customer, broker-dealer and clearing payables	500,584		511,654
Accounts payable and other liabilities	283,684		262,972
Total liabilities	16,706,106		15,758,192
COMMITMENTS AND CONTINGENCIES (Note 8)
STOCKHOLDERS’ EQUITY:
Common stock—$0.01 par value; 150,000,000 shares authorized; 69,151,152 shares issued and 59,998,673 shares outstanding as of September 30, 2022; 68,859,722 shares issued and 59,777,949 shares outstanding as of June 30, 2022	692		689
Additional paid-in capital	459,101		453,784
Accumulated other comprehensive income (loss)—net of tax	(5,770)		(2,933)
Retained earnings	1,486,851		1,428,444
Treasury stock, at cost; 9,152,479 shares as of September 30, 2022 and 9,081,773 shares as of June 30, 2022	(239,902)		(237,011)
Total stockholders’ equity	1,700,972		1,642,973
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	18,407,078	$	17,401,165

See accompanying notes to the condensed consolidated financial statements.

1

AXOS FINANCIAL, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(Unaudited) 

	Three Months Ended
	September 30,
(Dollars in thousands, except earnings per common share)	2022		2021
INTEREST AND DIVIDEND INCOME:
Loans, including fees	$	208,338	$	149,176
Securities borrowed and customer receivables	4,384		6,851
Investments	11,064		2,283
Total interest and dividend income	223,786		158,310
INTEREST EXPENSE:
Deposits	32,505		7,712
Advances from the Federal Home Loan Bank	5,163		1,016
Securities loaned	943		251
Other borrowings	4,700		2,689
Total interest expense	43,311		11,668
Net interest income	180,475		146,642
Provision for credit losses	8,750		4,000
Net interest income, after provision for credit losses	171,725		142,642
NON-INTEREST INCOME:
Broker-dealer fee income	9,178		6,462
Advisory fee income	6,959		5,304
Banking and service fees	6,514		6,680
Mortgage banking income	3,365		5,270
Prepayment penalty fee income	1,192		2,986
Total non-interest income	27,208		26,702
NON-INTEREST EXPENSE:
Salaries and related costs	46,996		40,737
Data processing	14,022		12,092
Depreciation and amortization	6,094		5,728
Advertising and promotional	6,370		3,372
Professional services	8,087		4,545
Occupancy and equipment	4,054		3,181
FDIC and regulatory fees	3,735		2,266
Broker-dealer clearing charges	2,829		4,005
General and administrative expense	23,900		8,505
Total non-interest expense	116,087		84,431
INCOME BEFORE INCOME TAXES	82,846		84,913
INCOME TAXES	24,439		24,703
NET INCOME	$	58,407	$	60,210
COMPREHENSIVE INCOME	$	55,570	$	59,703
Basic earnings per common share	$	0.98	$	1.01
Diluted earnings per common share	$	0.97	$	0.99

See accompanying notes to the condensed consolidated financial statements.

2

AXOS FINANCIAL, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited)

	Three Months Ended
	September 30,
(Dollars in thousands)	2022		2021
NET INCOME	$	58,407	$	60,210
Net unrealized gain (loss) from available-for-sale securities, net of income tax expense (benefit) of $(1,215) and $(214) for the three months ended September 30, 2022 and 2021, respectively.	(2,837)		(507)
Other comprehensive income (loss)	(2,837)		(507)
Comprehensive income	$	55,570	$	59,703

See accompanying notes to the condensed consolidated financial statements.

3

AXOS FINANCIAL, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

(Unaudited)

	For the Three Months Ended September 30, 2022
		Common Stock					Additional Paid-in Capital		Retained Earnings		Accumulated Other Comprehensive Income (Loss), Net of Income Tax		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	$	1,428,444	$	(2,933)	$	(237,011)	$	1,642,973
Net income		—	—	—	—		—		58,407		—		—		58,407
Other comprehensive income (loss)		—	—	—	—		—		—		(2,837)		—		(2,837)
Stock-based compensation activity		291,430	(70,706)	220,724	3		5,317		—		—		(2,891)		2,429
BALANCE—September 30, 2022		69,151,152	(9,152,479)	59,998,673	$	692	$	459,101	$	1,486,851	$	(5,770)	$	(239,902)	$	1,700,972

	For the Three Months Ended September 30, 2021
		Common Stock					Additional Paid-in Capital		Retained Earnings		Accumulated Other Comprehensive Income (Loss), Net of Income Tax		Treasury Stock		Total
		Number of Shares
(Dollars in thousands)		Issued	Treasury	Outstanding	Amount
BALANCE—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		—	—	—	—		—		60,210		—		—		60,210
Other comprehensive income (loss)		—	—	—	—		—		—		(507)		—		(507)
Stock-based compensation activity		301,296	(124,607)	176,689	3		3,978		—		—		(5,999)		(2,018)
BALANCE—September 30, 2021		68,370,617	(8,875,984)	59,494,633	$	684	$	436,528	$	1,247,938	$	2,000	$	(228,529)	$	1,458,621

See accompanying notes to the condensed consolidated financial statements.

4

AXOS FINANCIAL, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

	Three Months Ended
	September 30,
(Dollars in thousands)	2022		2021
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$	58,407	$	60,210
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, amortization, and accretion	6,801		5,972
Stock-based compensation expense	5,320		3,981
Trading activity	1,683		42
Provision for credit losses	8,750		4,000
Deferred income taxes	(3,807)		1,453
Origination of loans held for sale	(70,073)		(209,967)
Unrealized and realized gains on loans held for sale	(2,433)		(4,107)
Proceeds from sale of loans held for sale	67,610		208,777
Amortization and change in fair value of mortgage servicing rights	(953)		1,185
Net changes in assets and liabilities which provide (use) cash:
Securities borrowed	251,358		161,806
Customer, broker-dealer and clearing receivables	61,015		(53,677)
Other assets	(6,347)		(112,925)
Securities loaned	(267,511)		(189,483)
Customer, broker-dealer and clearing payables	(65,484)		(25,385)
Accounts payable and other liabilities	26,485		18,949
Net cash provided by (used in) operating activities	70,821		(129,169)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of investment securities	—		(7,033)
Proceeds from sale and repayment of securities	1,029		128,506
Purchase of stock of regulatory agencies	(54,964)		(8,219)
Proceeds from redemption of stock of regulatory agencies	54,964		8,219
Origination of loans held for investment	(2,486,224)		(2,050,587)
Proceeds from sale of loans held for investment	13,965		12,100
Mortgage warehouse loans activity, net	103,812		(41,692)
Proceeds from sales of other real estate owned and repossessed assets	719		621
Acquisition of business activity, net of cash acquired	(5,009)		(54,597)
Purchases of loans and leases, net of discounts and premiums	(51)		(7,481)
Principal repayments on loans	1,229,390		1,620,886
Purchases of furniture, equipment, software and intangibles	(7,921)		(3,943)
Net cash used in investing activities	(1,150,290)		(403,220)
CASH FLOWS FROM FINANCING ACTIVITIES:
Net increase in deposits	1,230,209		931,645
Payments of the Federal Home Loan Bank term advances	(5,000)		(10,000)
Net repayment of Federal Home Loan Bank other advances	—		(186,000)
Net proceeds (repayments) of other borrowings	(19,500)		34,400
Tax payments related to settlement of restricted stock units	(2,891)		(5,999)
Net cash provided by financing activities	1,202,818		764,046
NET CHANGE IN CASH AND CASH EQUIVALENTS	123,349		231,657
CASH AND CASH EQUIVALENTS—Beginning of year	$	1,574,699	$	1,037,777
CASH AND CASH EQUIVALENTS—End of period	$	1,698,048	$	1,269,434
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Interest paid on deposits and borrowed funds	$	42,429	$	14,989
Income taxes paid	37,277		29,955
Transfers to other real estate and repossessed vehicles	5,522		140
Transfers from loans held for investment to loans held for sale	—		12,100
Transfers from loans held for sale to loans held for investment	682		376

See accompanying notes to the condensed consolidated financial statements.

5

AXOS FINANCIAL, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE MONTH PERIOD ENDED SEPTEMBER 30, 2022 AND 2021

(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 (the “Axos Nevada Holding”) collectively, the “Company”. Axos Bank and its wholly owned subsidiary constitute the Banking Business segment and Axos Nevada Holding wholly owns the companies constituting the Securities Business segment. All significant intercompany balances and transactions have been eliminated in consolidation.

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. Results for the three months ended September 30, 2022 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, 2022 included in our Annual Report on Form 10-K filed with the SEC for the fiscal year ended June 30, 2022 (“2022 Form 10-K”). A reclassification of certain components of non-interest income for the three months ended September 30, 2021 has been made to conform to the current period presentation. This reclassification had no effect on the Company’s total non-interest income, net income, financial position or cash flows. Additional reclassifications of certain amounts in the Condensed Consolidated Statement of Cash Flows for the three months ended September 30, 2021 have been made to conform to the current period presentation. These reclassifications had no effect on the Company’s results of operations or financial position.

Significant Accounting Policies

Our significant accounting policies are described in greater detail in Note 1—“Organizations and Summary of Significant Accounting Policies” contained in the 2022 Form 10-K.

New Accounting Standards

Accounting Standards Issued But Not Yet Adopted

For a discussion of new accounting standards issued but not yet adopted which are applicable to the Company see Note 1—“Organizations and Summary of Significant Accounting Policies” contained in the 2022 Form 10-K. For the fiscal year beginning July 1, 2022, there have been no new accounting standards issued but not yet adopted that are expected to be material to the Company.

6

2.     ACQUISITIONS

From time to time the Company completes acquisitions and related corporate activities to supplement the organic growth and development of the business.

On August 2, 2021 the Company’s subsidiary, Axos Clearing LLC, acquired certain assets and liabilities of E*TRADE Advisor Services (“EAS”), the registered investment advisor custody business of Morgan Stanley. This business was rebranded as Axos Advisor Services (“AAS”). AAS adds incremental fee income, a turnkey technology platform used by independent registered investment advisors for trading and custody services, and low cost deposits that can be used to generate fee income from other bank partners or to fund loan growth at Axos Bank. The purchase price of $54.8 million consisted entirely of cash consideration paid upon acquisition and working capital adjustments.

The Company incurred acquisition-related costs totaling $0.04 million in total, all of which were recognized in the year ended June 30, 2022.

The acquisition is accounted for as a business combination under the acquisition method of accounting. Accordingly, tangible and intangible assets acquired (and liabilities assumed) are recorded at their estimated fair values as of the date of acquisition. The preliminary allocation of the $54.6 million purchase price consisted of $14.4 million of fair value of tangible assets acquired (which included $7.8 million of a right-of-use lease asset), $11.3 million of liabilities assumed (which included $7.8 million of a lease liability), $27.1 million of identifiable intangible assets and $24.4 million of goodwill, all of which is expected to be deductible for tax purposes. In December 2021, the Company made a $0.2 million true-up payment based on working capital adjustments, which was recorded as an increase in the purchase price up to $54.8 million with no impact on goodwill or identifiable intangible assets. After the working capital true-up, the final acquisition fair value of tangible assets acquired was $14.2 million and the final acquisition fair value of liabilities acquired was $10.9 million. Goodwill was calculated as the excess of consideration exchanged over the fair value of identifiable net assets acquired. The goodwill includes synergies expected to result from combining the acquired assets and liabilities with existing operations, coupling its custody platform with the Company’s existing product offerings and leveraging customer relationships through registered investment advisors (“RIAs”). The following table summarizes the fair value and useful life of each intangible asset acquired as of the acquisition date:

(Dollars in thousands)	Fair Value		Useful Lives (Years)
Trade Name	$	290	0.16
Proprietary Technology	10,990		7
Customer Relationships	15,650		14
Non-Compete Agreements	130		1
Total	$	27,060

The following table presents the results of operations of AAS for the three months ended September 30, 2021 on an unaudited pro forma basis, as if the acquisition of the entity rebranded to AAS had been consummated on July 1, 2020. The unaudited pro forma financial information is provided for informational purposes only and is not necessarily indicative of what the Company’s results of operations would have been if the acquisition of EAS had occurred as of July 1, 2020, or the results of operations for any future periods. Additionally, the information presented does not reflect any synergies or other strategic benefits as a result of acquisition.

	Pro Forma
(Dollars in thousands)	For the Three Months Ended September 30, 2021
Non-interest income	$	8,942

It is not practical to disclose net income on a pro forma basis as the assets and liabilities acquired are a component of a business.

7

3.     FAIR VALUE

The Company’s financial assets and liabilities measured at fair value on a recurring basis at September 30, 2022 and June 30, 2022 are classified in their entirety based on the lowest level of input significant to the fair value measurement.

	September 30, 2022
(Dollars in thousands)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
ASSETS:
Securities—Trading: Municipal		$	75	$	—	$	75
Securities—Available-for-Sale:
Agency MBS1		23,763		—		23,763
Non-Agency MBS2		—		184,012		184,012
Municipal		2,995		—		2,995
Asset-backed securities and structured notes		46,864		—		46,864
Total—Securities—Available-for-Sale		$	73,622	$	184,012	$	257,634
Loans Held for Sale		$	9,463	$	—	$	9,463
Mortgage servicing rights		$	—	$	26,373	$	26,373
Other assets—Derivative instruments		$	—	$	897	$	897
LIABILITIES:
Other liabilities—Derivative instruments		$	—	$	362	$	362
	June 30, 2022
(Dollars in thousands)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
ASSETS:
Securities—Trading: Municipal		$	1,758	$	—	$	1,758
Securities—Available-for-Sale:
Agency MBS1		25,325		—		25,325
Non-Agency MBS2		—		186,814		186,814
Municipal		3,248		—		3,248
Asset-backed securities and structured notes		47,131		—		47,131
Total—Securities—Available-for-Sale		$	75,704	$	186,814	$	262,518
Loans Held for Sale		$	4,973	$	—	$	4,973
Mortgage servicing rights		$	—	$	25,213	$	25,213
Other assets—Derivative instruments		$	—	$	464	$	464
LIABILITIES:
Other liabilities—Derivative instruments		$	—	$	—	$	—

1Includes 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.

8

Additional information is presented below about assets measured at fair value on a recurring basis for which the Company has utilized Level 3 inputs to determine fair value:

	For the Three Months Ended
	September 30, 2022
(Dollars in thousands)	Securities – Available-for-Sale: Non-Agency RMBS		Mortgage 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 income	—		953		71		1,024
Included in other comprehensive income	(2,473)		—		—		(2,473)
Purchases, retentions, issues, sales and settlements:
Purchases/Retentions	—		207		—		207
Settlements	(329)		—		—		(329)
Closing balance	$	184,012	$	26,373	$	535	$	210,920
Change in unrealized gains or losses for the period included in earnings for assets held at the end of the reporting period	$	—	$	953	$	71	$	1,024

1 Earnings from mortgage servicing rights (“MSR”) were attributable to: Time and payoffs, representing a decrease in MSR 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 $0.4 million, and an increase in MSR value resulting from market-driven changes in interest rates of $1.4 million. Additions to mortgage servicing rights were retained upon sale of loans held for sale.

	For the Three Months Ended
	September 30, 2021
(Dollars in thousands)	Securities – Available-for-Sale: Non-Agency RMBS		Mortgage Servicing Rights1		Derivative Instruments, net		Total
Opening Balance	$	67,615	$	17,911	$	2,205	$	87,731
Total gains or losses for the period:
Included in earnings—Mortgage banking income	—		(1,185)		21		(1,164)
Included in other comprehensive income	(112)		—		—		(112)
Purchases, retentions, issues, sales and settlements:
Purchases/Retentions	—		1,712		—		1,712
Settlements	(7,652)		—		—		(7,652)
Closing balance	$	59,851	$	18,438	$	2,226	$	80,515
Change in unrealized gains or losses for the period included in earnings for assets held at the end of the reporting period	$	—	$	(1,185)	$	21	$	(1,164)

1 Earnings from mortgage servicing rights were attributable to: Time and payoffs, representing a decrease in MSR 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 $1.6 million, and an increase in MSR value resulting from market-driven changes in interest rates of $0.4 million. Additions to mortgage servicing rights were retained upon sale of loans held for sale.

The table below summarizes the quantitative information about level 3 fair value measurements as of the dates indicated:

	September 30, 2022
(Dollars in thousands)	Fair Value		Valuation Technique	Unobservable Input	Range (Weighted Average)
Securities – Non-agency MBS	$	184,012	Discounted Cash Flow	Projected Constant Prepayment Rate, Projected Constant Default Rate, Projected Loss Severity, Discount Rate over LIBOR	0.0 to 30.0% (21.4%) 0.0 to 15.9% (2.3%) 0.0 to 68.6% (26.6%) 2.7 to 8.8% (2.7%)
Mortgage Servicing Rights	$	26,373	Discounted Cash Flow	Projected Constant Prepayment Rate, Life (in years), Discount Rate	3.8 to 38.0% (9.3%) 0.9 to 13.0 (9.4) 9.5 to 11.0% (9.5%)
Derivative Instruments	$	535	Sales Comparison Approach	Projected Sales Profit of Underlying Loans	-3.1 to 1.2% (-1.2%)

9

	June 30, 2022
(Dollars in thousands)	Fair Value		Valuation Technique	Unobservable Input	Range (Weighted Average)
Securities – Non-agency MBS	$	186,814	Discounted Cash Flow	Projected Constant Prepayment Rate, Projected Constant Default Rate, Projected Loss Severity, Discount Rate over LIBOR	0.0 to 30.0% (21.4%) 0.0 to 7.9% (2.2%) 0.0 to 68.4% (26.7%) 2.7 to 9.3% (2.8%)
Mortgage Servicing Rights	$	25,213	Discounted Cash Flow	Projected Constant Prepayment Rate, Life (in years), Discount Rate	7.9 to 56.3% (11.0%) 1.2 to 9.9 (8.4) 9.5 to 11.5% (9.5%)
Derivative Instruments	$	464	Sales Comparison Approach	Projected Sales Profit of Underlying Loans	-3.1 to 0.8% (-1.2%)

The significant unobservable inputs used in the fair value measurement of the Company’s residential mortgage-backed securities are projected prepayment rates, probability of default, projected loss severity in the event of default and discount rate over LIBOR. 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.

The table below summarizes assets measured for impairment on a non-recurring basis:

	September 30, 2022
(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 foreclosed assets:
Single family real estate	$	—	$	—	$	4,534	$	4,534
Autos and RVs	$	—	$	—	$	768	$	768
Total	$	—	$	—	$	5,302	$	5,302
	June 30, 2022
(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 foreclosed assets:
Autos and RVs	—		—		798		798
Total	$	—	$	—	$	798	$	798

Non-recurring fair value measurements for other real estate owned and foreclosed assets represent charge-offs of $307 thousand for the three months ended September 30, 2022 and $12 thousand for the three months ended September 30, 2021.

The Company has elected the fair value option for Agency loans held for sale. These loans are intended for sale and fair value is the best indicator of the resolution of these loans. Interest income is recorded based on the contractual terms of the loan and in accordance with the Company’s policy on loans. None of these loans are 90 days or more past due nor on nonaccrual as of September 30, 2022 and June 30, 2022.

As of September 30, 2022 and June 30, 2022, the aggregate fair value of loans held for sale, carried at fair value, contractual balance (including accrued interest), and unrealized gain was as follows:

(Dollars in thousands)	September 30, 2022		June 30, 2022
Aggregate fair value	$	9,463	$	4,973
Contractual balance	9,348		4,881
Unrealized gain	$	115	$	92

10

Gains and losses from changes in fair value included in earnings for loans held for sale for the periods indicated below were:

	For the Three Months Ended
	September 30,
(Dollars in thousands)	2022		2021
Interest income	$	50	$	200
Change in fair value	91		43
Total	$	141	$	243

The following table presents quantitative information about level 3 fair value measurements for financial instruments measured at fair value on a non-recurring basis at the periods indicated:

	September 30, 2022
(Dollars in thousands)	Fair Value		Valuation Technique(s)	Unobservable Input	Range (Weighted Average) 1
Other real estate owned and foreclosed assets:
Single family real estate	$	4,534	Sales comparison approach	Adjustment for differences between the comparable sales	3.5 to 12.1% (4.1%)
Autos and RVs	$	768	Sales comparison approach	Adjustment for differences between the comparable sales	-13.7 to -0.5% (-3.4%)

	June 30, 2022
(Dollars in thousands)	Fair Value		Valuation Technique(s)	Unobservable Input	Range (Weighted Average) 1
Other real estate owned and foreclosed assets:
Autos and RVs	$	798	Sales comparison approach	Adjustment for differences between the comparable sales	-17.2 to 4.6% (-7.5%)

1 For other real estate owned and foreclosed assets 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 property being valued having limited comparable sales with similar characteristics at the time the current appraisal is conducted.

11

Fair Value of Financial Instruments

Carrying amounts and estimated fair values of financial instruments at September 30, 2022 and June 30, 2022 were:

	September 30, 2022
			Fair Value
(Dollars in thousands)	Carrying Amount		Level 1		Level 2		Level 3		Total Fair Value
Financial assets:
Cash and cash equivalents	$	1,698,048	$	1,698,048	$	—	$	—	$	1,698,048
Securities — trading	75		—		75		—		75
Securities — available-for-sale	257,634		—		73,622		184,012		257,634
Loans held for sale, at fair value	9,463		—		9,463		—		9,463
Loans held for sale, at lower of cost or fair value	10,476		—		—		10,489		10,489
Loans held for investment—net	15,211,573		—		—		14,893,655		14,893,655
Securities borrowed	87,622		—		—		86,728		86,728
Customer, broker-dealer and clearing receivables	410,842		—		—		411,171		411,171
Mortgage servicing rights	26,373		—		—		26,373		26,373
Financial liabilities:
Total deposits	15,176,631		—		13,373,113		—		13,373,113
Advances from the Federal Home Loan Bank	112,500		—		105,387		—		105,387
Borrowings, subordinated notes and debentures	425,818		—		385,257		—		385,257
Securities loaned	206,889		—		—		206,910		206,910
Customer, broker-dealer and clearing payables	500,584		—		—		500,584		500,584

	June 30, 2022
			Fair Value
(Dollars in thousands)	Carrying Amount		Level 1		Level 2		Level 3		Total Fair Value
Financial assets:
Cash and cash equivalents	$	1,574,699	$	1,574,699	$	—	$	—	$	1,574,699
Securities — trading	1,758		—		1,758		—		1,758
Securities — available-for-sale	262,518		—		75,704		186,814		262,518
Loans held for sale, at fair value	4,973		—		4,973		—		4,973
Loans held for sale, at lower of cost or fair value	10,938		—		—		10,985		10,985
Loans held for investment—net	14,091,061		—		—		14,015,157		14,015,157
Securities borrowed	338,980		—		—		329,963		329,963
Customer, broker-dealer and clearing receivables	417,417		—		—		414,383		414,383
Mortgage servicing rights	25,213		—		—		25,213		25,213
Financial liabilities:
Total deposits	13,946,422		—		12,812,512		—		12,812,512
Advances from the Federal Home Loan Bank	117,500		—		117,500		—		117,500
Borrowings, subordinated notes and debentures	445,244		—		416,947		—		416,947
Securities loaned	474,400		—		—		473,831		473,831
Customer, broker-dealer and clearing payables	511,654		—		—		471,859		471,859

Carrying amount is the estimated fair value for cash and cash equivalents, 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 and loans held for sale can be found in Note 3 – “Fair Value” of the 2022 Form 10-K. The carrying amount of stock of regulatory agencies approximates the estimated fair value of this investment. The fair value of off-balance sheet items is not material.

12

4.     SECURITIES

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

	September 30, 2022
	Trading		Available-for-sale
(Dollars in thousands)	Fair Value		Amortized Cost		Unrealized Gains		Unrealized Losses		Fair Value
Mortgage-backed securities (MBS):
U.S. agencies1	$	—	$	27,187	$	1	$	(3,425)	$	23,763
Non-agency2	—		187,287		1,300		(4,575)		184,012
Total mortgage-backed securities	—		214,474		1,301		(8,000)		207,775
Non-MBS:
Municipal	75		3,560		—		(565)		2,995
Asset-backed securities and structured notes	—		47,000		—		(136)		46,864
Total Non-MBS	75		50,560		—		(701)		49,859
Total debt securities	$	75	$	265,034	$	1,301	$	(8,701)	$	257,634
	June 30, 2022
	Trading		Available-for-sale
(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:
Municipal	1,758		3,529		—		(281)		3,248
Asset-backed securities and structured notes	—		47,000		131		—		47,131
Total Non-MBS	1,758		50,529		131		(281)		50,379
Total debt securities	$	1,758	$	265,867	$	1,972	$	(5,321)	$	262,518

1Includes securities guaranteed by Ginnie Mae, a U.S. government agency, and the government sponsored enterprises Fannie Mae and Freddie Mac.

2Private 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 months ended September 30, 2022 and September 30, 2021. No allowance for credit losses for available-for-sale debt securities was recorded at September 30, 2022 and June 30, 2022 based on an analysis of: (1) the credit characteristics of the securities, including the forecasted cash flows, credit ratings, credit enhancement, and any external government backing, 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 Company’s non-agency MBS available-for-sale portfolio with a total fair value of $184,012 at September 30, 2022 consists of 17 different issues of super senior securities.

The face amounts of debt securities available-for-sale pledged to secure borrowings at September 30, 2022 and June 30, 2022 were $1.1 million and $1.2 million, respectively.

13

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

	September 30, 2022
	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	$	15,070	$	(1,882)	$	8,493	$	(1,543)	$	23,563	$	(3,425)
Non-agency	127,685		(4,095)		4,516		(480)		132,201		(4,575)
Total MBS	142,755		(5,977)		13,009		(2,023)		155,764		(8,000)
Non-MBS:
Municipal debt	2,995		(565)		—		—		2,995		(565)
Asset-backed securities and structured notes	46,864		(136)		—		—		46,864		(136)
Total Non-MBS	49,859		(701)		—		—		49,859		(701)
Total debt securities	$	192,614	$	(6,678)	$	13,009	$	(2,023)	$	205,623	$	(8,701)
	June 30, 2022
	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	$	16,446	$	(1,338)	$	8,097	$	(1,068)	$	24,543	$	(2,406)
Non-agency	92,796		(2,204)		4,751		(430)		97,547		(2,634)
Total MBS	109,242		(3,542)		12,848		(1,498)		122,090		(5,040)
Non-MBS:
Municipal debt	3,248		(281)		—		—		3,248		(281)
Asset-backed securities and structured notes	—		—		—		—		—		—
Total Non-MBS	3,248		(281)		—		—		3,248		(281)
Total debt securities	$	112,490	$	(3,823)	$	12,848	$	(1,498)	$	125,338	$	(5,321)

On September 30, 2022, there were sixteen securities in a continuous loss position for a period of more than 12 months, and thirty-seven securities in a continuous loss position for a period of less than 12 months. At June 30, 2022, there were fourteen securities in a continuous loss position for a period of more than 12 months, and twenty-five securities in a continuous loss position for a period of less than 12 months.

At September 30, 2022, one non-agency RMBS with a total carrying amount of $1.9 million was determined to have cumulative credit losses of $0.8 million of which none was recognized in earnings during the three months ended September 30, 2022.

During the three months ended September 30, 2022 and September 30, 2021, the Company sold no available-for-sale securities.

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

(Dollars in thousands)	September 30, 2022		June 30, 2022
Available-for-sale debt securities—net unrealized gains (losses)	$	(7,400)	$	(3,349)
Available-for-sale debt securities—non-credit related losses	(845)		(845)
Subtotal	(8,245)		(4,194)
Tax benefit (expense)	2,475		1,261
Net unrealized gain (loss) on investment securities in accumulated other comprehensive income (loss)	$	(5,770)	$	(2,933)

14

The following table sets forth the expected maturity distribution of our mortgage-backed securities and the contractual maturity distribution of our Non-RMBS securities and the weighted-average yield for each range of maturities:

	At September 30, 2022
	Total Amount				Due Within One Year				Due After One but within Five Years				Due After Five but within Ten Years				Due After Ten Years
(Dollars in thousands)	Amount		Yield1		Amount		Yield1		Amount		Yield1		Amount		Yield1		Amount		Yield1
Available-for-sale
Mortgage-backed securities:
Agency2	$	27,187	1.79	%	$	5,018	1.83	%	$	13,175	1.79	%	$	7,063	1.76	%	$	1,931	1.86	%
Non-Agency3	187,287		5.41	%	1,285		16.89	%	183,937		5.30	%	1,726		8.90	%	339		4.63	%
Total Mortgage-Backed Securities	$	214,474	4.95	%	$	6,303	4.90	%	$	197,112	5.07	%	$	8,789	3.17	%	$	2,270	2.28	%
Non-RMBS
Municipal	3,560		3.57	%	—		—	%	—		—	%	—		—	%	3,560		3.57	%
Asset-backed securities and structured notes	47,000		8.43	%	35,155		8.43	%	11,845		8.43	%	—		—	%	—		—	%
Total Non-RMBS	$	50,560	8.09	%	$	35,155	8.43	%	$	11,845	8.43	%	$	—	—	%	$	3,560	3.57	%
Available-for-sale—Amortized Cost	$	265,034	5.55	%	$	41,458	7.89	%	$	208,957	5.26	%	$	8,789	3.17	%	$	5,830	3.07	%
Available-for-sale—Fair Value	$	257,634	5.57	%	$	41,010	7.89	%	$	203,814	5.26	%	$	7,807	3.17	%	$	5,003	3.07	%
Total available-for-sale securities	$	257,634	5.57	%	$	41,010	7.89	%	$	203,814	5.26	%	$	7,807	3.17	%	$	5,003	3.07	%

1 Weighted-average yield is based on amortized cost of the securities. Residential mortgage-backed security yields and maturities include impact of expected prepayments and other timing factors such as interest rate forward curve.

2 Includes securities guaranteed by Ginnie Mae, a U.S. government agency, and the government sponsored enterprises Fannie Mae and Freddie Mac.

3 Private sponsors of securities collateralized primarily by pools of 1-4 family residential first mo prime, Alt-A or pay-option ARM mortgages.

15

5.    LOANS & ALLOWANCE FOR CREDIT LOSSES

The composition of the loan portfolio was:

(Dollars in thousands)	September 30, 2022		June 30, 2022
Single Family - Mortgage & Warehouse	$	4,009,809	$	3,988,462
Multifamily and Commercial Mortgage	2,964,982		2,877,680
Commercial Real Estate	5,523,895		4,781,044
Commercial & Industrial - Non-RE	2,244,342		2,028,128
Auto & Consumer	631,344		567,228
Other	9,954		11,134
Total gross loans and leases	15,384,326		14,253,676
Allowance for credit losses - loans	(155,472)		(148,617)
Unaccreted premiums (discounts) and loan and lease fees	(17,281)		(13,998)
Total net loans and leases	$	15,211,573	$	14,091,061

Activity in the allowance for credit losses by portfolio classes for the periods was:

	For the Three Months Ended September 30, 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	(1,642)		(6)		4,437		3,557		2,405		(1)		8,750
Charge-offs	(4)		—		—		—		(2,362)		—		(2,366)
Recoveries	15		—		—		18		438		—		471
Balance at September 30, 2022	$	18,039	$	14,649	$	73,776	$	34,383	$	14,595	$	30	$	155,472

	For the Three Months Ended September 30, 2021
(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, 2021	$	26,604	$	13,146	$	57,928	$	28,460	$	6,519	$	301	$	132,958
Provision (benefit) for credit losses - loans	(1,351)		36		7,295		(5,646)		3,626		40		4,000
Charge-offs	—		—		—		(322)		(394)		—		(716)
Recoveries	76		177		—		27		256		—		536
Balance at September 30, 2021	$	25,329	$	13,359	$	65,223	$	22,519	$	10,007	$	341	$	136,778

16

Credit Quality Disclosures. Nonaccrual loans consisted of the following as of the dates indicated:

(Dollars in thousands)	As of September 30, 2022
Single Family - Mortgage & Warehouse	$	65,687
Multifamily and Commercial Mortgage	35,837
Commercial Real Estate	14,852
Commercial & Industrial - Non-RE	2,989
Auto & Consumer	990
Other	126
Total nonaccrual loans	$	120,481
Nonaccrual loans to total loans	0.78		%

(Dollars in thousands)	As of June 30, 2022
Single Family - Mortgage & Warehouse	$	66,424
Multifamily and Commercial Mortgage	33,410
Commercial Real Estate	14,852
Commercial & Industrial - Non-RE	2,989
Auto & Consumer	439
Other	80
Total nonaccrual loans	$	118,194
Nonaccrual loans to total loans	0.83		%

No interest income was recognized on nonaccrual loans in the three months ended September 30, 2022 or September 30, 2021 and there were no nonaccrual loans without an allowance for credit losses as of September 30, 2022 and June 30, 2022.

Approximately 1.13% of our nonaccrual loans at September 30, 2022 were considered troubled debt restructurings (“TDRs”), compared to 0.55% at June 30, 2022. Borrowers that make timely payments after TDRs are considered non-performing for at least six months. Generally, after six months of timely payments, those TDRs are reclassified from the nonaccrual loan category to the performing loan category and any previously deferred interest income is recognized. Approximately 54.52% of the Bank’s nonaccrual loans are single family first mortgages.

The outstanding unpaid balance of loans that are either performing or nonaccrual by portfolio class was:

	September 30, 2022
(Dollars in thousands)	Single Family-Mortgage & Warehouse		Multifamily and Commercial Mortgage		Commercial Real Estate		Commercial & Industrial - Non-RE		Auto & Consumer		Other		Total
Performing	$	3,944,122	$	2,929,145	$	5,509,043	$	2,241,353	$	630,354	$	9,828	$	15,263,845
Nonaccrual	65,687		35,837		14,852		2,989		990		126		120,481
Total	$	4,009,809	$	2,964,982	$	5,523,895	$	2,244,342	$	631,344	$	9,954	$	15,384,326

	June 30, 2022
(Dollars in thousands)	Single Family-Mortgage & Warehouse		Multifamily and Commercial Mortgage		Commercial Real Estate		Commercial & Industrial - Non-RE		Auto & Consumer		Other		Total
Performing	$	3,922,038	$	2,844,270	$	4,766,192	$	2,025,139	$	566,789	$	11,054	$	14,135,482
Nonaccrual	66,424		33,410		14,852		2,989		439		80		118,194
Total	$	3,988,462	$	2,877,680	$	4,781,044	$	2,028,128	$	567,228	$	11,134	$	14,253,676

From time to time the Company modifies loan terms temporarily for borrowers who are experiencing financial stress. These loans are performing and accruing and generally return to the original loan terms after the modification term expires. The Company had no TDRs classified as performing loans at September 30, 2022 or June 30, 2022.

17

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, less cost to acquire and sell, of any underlying collateral 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.

18

The amortized cost basis of the Company’s loans by year of origination and credit quality indicator are:

	September 30, 2022
	Loans Held for Investment Origination Year												Revolving Loans		Total
(Dollars in thousands)	2023		2022		2021		2020		2019		Prior
Single Family-Mortgage & Warehouse
Pass	$	309,401	$	1,427,758	$	579,544	$	380,330	$	277,775	$	767,417	$	168,798	$	3,911,023
Special Mention	—		—		—		4,971		2,165		18,091		7,532		32,759
Substandard	—		3,201		3,171		5,017		18,700		35,518		420		66,027
Doubtful	—		—		—		—		—		—		—		—
Total	309,401		1,430,959		582,715		390,318		298,640		821,026		176,750		4,009,809
Multifamily and Commercial Mortgage
Pass	187,856		1,004,942		541,338		403,340		247,670		483,365		—		2,868,511
Special Mention	—		9,706		3,980		532		3,269		—		—		17,487
Substandard	—		3,145		5,759		32,935		6,832		30,313		—		78,984
Doubtful	—		—		—		—		—		—		—		—
Total	187,856		1,017,793		551,077		436,807		257,771		513,678		—		2,964,982
Commercial Real Estate
Pass	509,209		2,613,562		953,785		312,381		182,800		28,759		760,859		5,361,355
Special Mention	—		—		55,820		12,138		1,000		15,000		—		83,958
Substandard	—		—		38,290		—		15,487		23,507		1,298		78,582
Doubtful	—		—		—		—		—		—		—		—
Total	509,209		2,613,562		1,047,895		324,519		199,287		67,266		762,157		5,523,895
Commercial & Industrial - Non-RE
Pass	63,185		402,229		35,057		19,008		10,858		6,520		1,671,859		2,208,716
Special Mention	—		—		—		—		—		—		—		—
Substandard	—		2,988		—		8,500		—		—		24,138		35,626
Doubtful	—		—		—		—		—		—		—		—
Total	63,185		405,217		35,057		27,508		10,858		6,520		1,695,997		2,244,342
Auto & Consumer
Pass	115,451		328,900		96,119		37,417		31,545		20,039		—		629,471
Special Mention	—		328		218		44		16		38		—		644
Substandard	—		509		291		154		231		44		—		1,229
Doubtful	—		—		—		—		—		—		—		—
Total	115,451		329,737		96,628		37,615		31,792		20,121		—		631,344
Other
Pass	698		2,000		3,310		—		—		1,525		—		7,533
Special Mention	—		—		2,295		—		—		—		—		2,295
Substandard	—		—		—		—		—		126		—		126
Doubtful	—		—		—		—		—		—		—		—
Total	698		2,000		5,605		—		—		1,651		—		9,954
Total
Pass	1,185,800		5,779,391		2,209,153		1,152,476		750,648		1,307,625		2,601,516		14,986,609
Special Mention	—		10,034		62,313		17,685		6,450		33,129		7,532		137,143
Substandard	—		9,843		47,511		46,606		41,250		89,508		25,856		260,574
Doubtful	—		—		—		—		—		—		—		—
Total	$1,185,800		$5,799,268		$2,318,977		$1,216,767		$798,348		$1,430,262		$2,634,904		$15,384,326
As a % of total gross loans	7.71%		37.70%		15.07%		7.91%		5.19%		9.30%		17.13%		100.0%

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	June 30, 2022
	Loans Held for Investment Origination Year												Revolving Loans		Total
(Dollars in thousands)	2022		2021		2020		2019		2018		Prior
Single Family-Mortgage & Warehouse
Pass	$	1,484,027	$	600,054	$	402,712	$	303,999	$	279,248	$	548,703	$	241,925	$	3,860,668
Special Mention	—		—		4,790		2,505		4,125		10,971		38,637		61,028
Substandard	—		2,288		3,928		18,407		5,955		36,188		—		66,766
Doubtful	—		—		—		—		—		—		—		—
Total	1,484,027		602,342		411,430		324,911		289,328		595,862		280,562		3,988,462
Multifamily and Commercial Mortgage
Pass	999,819		569,486		429,247		259,161		219,548		316,013		—		2,793,274
Special Mention	1,200		—		534		539		—		968		—		3,241
Substandard	—		5,772		34,343		9,613		7,308		24,129		—		81,165
Doubtful	—		—		—		—		—		—		—		—
Total	1,001,019		575,258		464,124		269,313		226,856		341,110		—		2,877,680
Commercial Real Estate
Pass	2,482,366		990,887		358,422		186,800		28,758		—		602,412		4,649,645
Special Mention	—		32,351		12,138		16,487		15,000		—		—		75,976
Substandard	—		—		12,575		18,043		23,507		—		1,298		55,423
Doubtful	—		—		—		—		—		—		—		—
Total	2,482,366		1,023,238		383,135		221,330		67,265		—		603,710		4,781,044
Commercial & Industrial - Non-RE
Pass	435,228		66,226		25,629		61,932		9,268		—		1,388,435		1,986,718
Special Mention	13		—		—		186		710		—		—		909
Substandard	2,988		28,359		9,154		—		—		—		—		40,501
Doubtful	—		—		—		—		—		—		—		—
Total	438,229		94,585		34,783		62,118		9,978		—		1,388,435		2,028,128
Auto & Consumer
Pass	352,468		107,882		43,377		37,008		16,147		8,891		—		565,773
Special Mention	204		188		24		110		—		1		—		527
Substandard	157		311		224		205		25		6		—		928
Doubtful	—		—		—		—		—		—		—		—
Total	352,829		108,381		43,625		37,323		16,172		8,898		—		567,228
Other
Pass	3,057		6,185		—		—		1,091		721		—		11,054
Special Mention	—		—		—		—		—		—		—		—
Substandard	—		—		46		—		—		34		—		80
Doubtful	—		—		—		—		—		—		—		—
Total	3,057		6,185		46		—		1,091		755		—		11,134
Total
Pass	5,756,965		2,340,720		1,259,387		848,900		554,060		874,328		2,232,772		13,867,132
Special Mention	1,417		32,539		17,486		19,827		19,835		11,940		38,637		141,681
Substandard	3,145		36,730		60,270		46,268		36,795		60,357		1,298		244,863
Doubtful	—		—		—		—		—		—		—		—
Total	$	5,761,527	$	2,409,989	$	1,337,143	$	914,995	$	610,690	$	946,625	$	2,272,707	$	14,253,676
As a % of total gross loans	40.42%		16.91%		9.38%		6.42%		4.28%		6.64%		15.95%		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 outstanding unpaid balance of loans past due 30 days or more by portfolio class are:

	September 30, 2022
(Dollars in thousands)	30-59 Days Past Due			60-89 Days Past Due			90+ Days Past Due			Total
Single Family-Mortgage & Warehouse	$	13,021		$	5,494		$	57,883		$	76,398
Multifamily and Commercial Mortgage	5,909			358			30,001			36,268
Commercial Real Estate	9,655			—			14,852			24,507
Commercial & Industrial - Non-RE	—			—			—			—
Auto & Consumer	4,174			945			495			5,614
Other	1,162			—			126			1,288
Total	$	33,921		$	6,797		$	103,357		$	144,075
As a % of total gross loans	0.22		%	0.05		%	0.67		%	0.94		%

	June 30, 2022
(Dollars in thousands)	30-59 Days Past Due			60-89 Days Past Due			90+ Days Past Due			Total
Single Family-Mortgage & Warehouse	$	5,167		$	1,518		$	63,286		$	69,971
Multifamily and Commercial Mortgage	9,455			2,115			26,556			38,126
Commercial Real Estate	—			14,852			—			14,852
Commercial & Industrial - Non-RE	—			—			—			—
Auto & Consumer	4,865			1,009			466			6,340
Other	413			—			193			606
Total	$	19,900		$	19,494		$	90,501		$	129,895
As a % of total gross loans	0.14		%	0.14		%	0.63		%	0.91		%

Loans reaching 90+ days past due are placed on non-accrual as required under Company policy. No loans 90+ days past due were still accruing interest as of September 30, 2022 and June 30, 2022.

Loans in process of foreclosure were $20.4 million and $20.7 million as of September 30, 2022 and June 30, 2022, respectively.

Unfunded Loan Commitment Reserves

Unfunded loan commitment reserves are included in “Accounts payable and other liabilities” in the unaudited Condensed Consolidated Balance Sheets. Provisions for the unfunded loan commitments are included in the unaudited Condensed Consolidated Statements of Income in “General and administrative expenses”.

The following tables present a summary of the activity in the unfunded loan commitment reserves for the periods indicated:

	Three Months Ended September 30,
(Dollars in thousands)	2022		2021
BALANCE—beginning July 1	$	10,973	$	5,723
Provision	—		2,000
BALANCE—end September 30	$	10,973	$	7,723

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6.    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 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 common stock. 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” contained in the 2022 Form 10-K.

At September 30, 2022, 1,614,701 shares of common stock remained available for issuance pursuant to grant awards under the 2014 Plan and unrecognized compensation expense related to non-vested awards aggregated to $47.6 million and is expected to be recognized in future periods as follows:

(Dollars in thousands)	Stock Award Compensation Expense
For the fiscal year remainder:
Remainder of fiscal year 2023	$	18,487
2024	17,408
2025	9,372
2026	1,913
2027	400
Total	$	47,580

The status and changes in restricted stock units for the period indicated:

	Restricted Stock Units	Weighted-Average Grant-Date Fair Value
Non-vested balance at June 30, 2022	1,350,763	$	41.16
Granted	400,339	38.99
Vested	(291,430)	31.88
Forfeited	(19,210)	41.62
Non-vested balance at September 30, 2022	1,440,462	$	42.43

The total fair value of shares vested for the three months ended September 30, 2022 was $12.0 million. The weighted-average remaining time period until vesting for restricted stock units as of September 30, 2022 was 1.5 years.

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7.    EARNINGS PER COMMON SHARE

The following table presents the calculation of basic and diluted EPS:

	Three Months Ended
	September 30,
(Dollars in thousands, except per share data)	2022		2021
Earnings Per Common Share
Net income attributable to common stockholders	$	58,407	$	60,210
Average common shares issued and outstanding	59,854,584		59,390,846
Earnings per common share	$	0.98	$	1.01
Diluted Earnings Per Common Share
Net income attributable to common stockholders	$	58,407	$	60,210
Average common shares issued and outstanding	59,854,584		59,390,846
Dilutive effect of average unvested RSUs	631,810		1,253,442
Total dilutive common shares outstanding	60,486,394		60,644,288
Diluted earnings per common share	$	0.97	$	0.99

8.    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 as of September 30, 2022 in the corresponding fiscal years:

(Dollars in thousands)
Remainder of fiscal year 2023	$	8,151
2024	10,976
2025	11,143
2026	10,811
2027	10,870
Thereafter	29,177
Total lease payments	81,128
Less: amount representing interest	(8,074)
Total Lease Liability	$	73,054

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 September 30, 2022, the Company had commitments to originate $192.1 million in fixed rate loans and $3,181.9 million in variable rate loans, totaling an aggregate principal balance of $3,374.0 million. At September 30, 2022, the Company’s fixed rate commitments to originate had a weighted-average rate of 6.70%. At September 30, 2022, the Company also had commitments to sell $12.6 million in fixed rate loans and no variable rate loans, totaling an aggregate principal balance of $12.6 million.

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’s 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

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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. On October 15, 2015, the Company, its Chief Executive Officer and its Chief Financial Officer were named defendants in a putative class action lawsuit, Golden v. BofI Holding, Inc., et al, and brought in United States District Court for the Southern District of California (the “Golden Case”). On November 3, 2015, the Company, its Chief Executive Officer and its Chief Financial Officer were named defendants in a second putative class action lawsuit, Hazan v. BofI Holding, Inc., et al, and also brought in the United States District Court for the Southern District of California (the “Hazan Case”). On February 1, 2016, the Golden Case and the Hazan Case were consolidated as In re BofI Holding, Inc. Securities Litigation, Case #: 3:15-cv-02324-GPC-KSC (the “HMEPS Class Action”), and the Houston Municipal Employees Pension System was appointed lead plaintiff. The plaintiffs allege that the Company and other named defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder, by failing to disclose wrongful conduct that was alleged in a complaint filed in connection with a wrongful termination of employment lawsuit filed on October 13, 2015 (the “Employment Matter”) and that as a result the Company’s statements regarding its internal controls, as well as portions of its financial statements, were false and misleading. On April 13, 2022, the parties executed a Stipulation and Agreement of Settlement. The Stipulation and Agreement of Settlement was submitted to the District Court for approval on April 15, 2022. On June 8, 2022, the court granted preliminary approval of the settlement and scheduled a hearing with respect to final approval of the settlement for October 7, 2022. On October 14, 2022, the District Court entered an order granting final approval of such settlement. The settlement was reached because the parties were able to negotiate terms within available insurance coverage and without attribution of wrongdoing to Axos, its management or its directors.

On April 3, 2017, the Company, its Chief Executive Officer and its Chief Financial Officer were named defendants in a putative class action lawsuit, Mandalevy v. BofI Holding, Inc., et al, and brought in United States District Court for the Southern District of California (the “Mandalevy Case”). The Mandalevy Case seeks monetary damages and other relief on behalf of a putative class that has not been certified by the Court. The complaint in the Mandalevy Case (the “Mandalevy Complaint”) alleges a class period that differs from that alleged in the First Class Action, and that the Company and other named defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder, by failing to disclose wrongful conduct that was alleged in a March 2017 media article. The Mandalevy Case has not been consolidated into the First Class Action. On December 7, 2018, the Court entered a final order granting the defendants’ motion and dismissing the Mandalevy Case with prejudice. Subsequently, the plaintiff filed a notice of appeal and the Court took the matter under advisement. On November 3, 2020, the Court issued a ruling affirming in part and reversing in part the District Court’s Order dismissing the Class Action Second Amended Complaint. The defendants filed a petition for rehearing en banc on November 17, 2020, which petition was denied on December 16, 2020. The defendants filed a motion to dismiss the remanded complaint on February 19, 2021. On January 31, 2022, a Stipulation of Settlement was submitted to the District Court for approval. On May 17, 2022, the court granted preliminary approval of the settlement and scheduled a hearing with respect to final approval for September 23, 2022. On September 26, 2022, the District Court entered an order granting final approval of such settlement. The settlement was reached because the parties were able to negotiate terms within available insurance coverage and without attribution of wrongdoing to Axos, its management or its directors.

In addition to the First Class Action and the Mandalevy Case, two separate shareholder derivative actions were filed in December, 2015, purportedly on behalf of the Company. The first derivative action, Calcaterra v. Garrabrants, et al, was filed in the United States District Court for the Southern District of California on December 3, 2015. The second derivative action, Dow v. Micheletti, et al, was filed in the San Diego County Superior Court on December 16, 2015. A third derivative action, DeYoung v. Garrabrants, et al, was filed in the United States District Court for the Southern District of California on January 22, 2016, a fourth derivative action, Yong v. Garrabrants, et al, was filed in the United States District Court for the Southern District of California on January 29, 2016, a fifth derivative action, Laborers Pension Trust Fund of Northern Nevada v. Allrich et al, was filed in the United States District Court for the Southern District of California on February 2, 2016, and a sixth derivative action, Garner v. Garrabrants, et al, was filed in the San Diego County Superior Court on August 10, 2017. Each of these six derivative actions names the Company as a nominal defendant, and certain of its officers and directors as defendants. Each complaint sets forth allegations of breaches of fiduciary duties, gross mismanagement, abuse of control, and unjust enrichment against the defendant officers and directors. The plaintiffs in these derivative actions seek damages in unspecified amounts on the Company’s behalf from the officer and director defendants, certain corporate governance actions, and an award of their costs and attorney’s fees.

The United States District Court for the Southern District of California ordered the six above-referenced derivative actions pending before it to be consolidated and appointed lead counsel in the consolidated action. On June 7, 2018, the Court entered an order granting defendant’s motion for judgment on the pleadings, but giving the plaintiffs limited leave to amend by June 28, 2018. The plaintiffs failed to file an amended complaint, and instead plaintiffs filed on June 28, 2018 a motion to stay the case pending resolution of the securities class action and Employment Matter. On August 10, 2018, defendants filed an opposition to plaintiffs’ motion. On September 11, 2018, the plaintiffs filed a second amended complaint. On October 16, 2018, defendants filed a motion to dismiss the second amended complaint. On October 16, 2018, defendants filed a motion to dismiss

24

the second amended complaint. The Court dismissed the second amended complaint with prejudice on May 23, 2019. Subsequently, the plaintiff filed a notice of appeal and opening brief and the Company filed its answering brief. Oral argument was held September 2, 2020. On February 25, 2021, the Ninth Circuit issued a memorandum decision affirming the dismissal of the Calcaterra derivative action. However, the Ninth Circuit reversed the district court’s order denying a stay of the action and remanded to the district court to reconsider whether it should grant the plaintiff leave to amend. The Ninth Circuit issued its mandate to the district court on April 9, 2021, and the plaintiff has opted for a stay on remand rather than amending the complaint. The two derivative actions pending before the San Diego County Superior Court have been consolidated and have been stayed by agreement of the parties.

The Company and the other named defendants dispute, and intend to vigorously defend against, the allegations raised in the consolidated action and the state court derivative actions. In view of the inherent difficulty of predicting the outcome of each legal action, particularly since claimants seek substantial or indeterminate damages, it is not possible to reasonably predict or estimate the eventual loss or range of loss, if any, related to each legal action, unless otherwise disclosed above.

On October 26, 2022, a jury verdict was reached in the case of MUFG Union Bank, N.A. v. Axos Bank, et al, resulting in an award to Union Bank. The Company continues to believe that the evidence supports the defendants’ understanding of the facts and that meritorious defenses exist to substantially all claims made by Union Bank. In addition, the Company believes that there exists substantial grounds for post-verdict relief and appeal. The Company recorded a $16 million accrued expense in accounts payable and other liabilities on the condensed consolidated balance sheets and in general and administrative expense on the condensed consolidated statements of income as of and for the three months ended September 30, 2022, respectively.

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9.    SEGMENT REPORTING AND REVENUE INFORMATION

Segment Information. 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 and income taxes 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.

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

	Three Months Ended September 30, 2022
(Dollars in thousands)	Banking Business		Securities Business		Corporate/Eliminations		Axos Consolidated
Net interest income	$	179,730	$	4,275	$	(3,530)	$	180,475
Provision for credit losses	8,750		—		—		8,750
Non-interest income	10,712		29,165		(12,669)		27,208
Non-interest expense	100,796		24,515		(9,224)		116,087
Income before taxes	$	80,896	$	8,925	$	(6,975)	$	82,846

	Three Months Ended September 30, 2021
(Dollars in thousands)	Banking Business		Securities Business		Corporate/Eliminations		Axos Consolidated
Net interest income	$	142,241	$	6,176	$	(1,775)	$	146,642
Provision for credit losses	4,000		—		—		4,000
Non-interest income	14,828		13,106		(1,232)		26,702
Non-interest expense	62,725		19,273		2,433		84,431
Income before taxes	$	90,344	$	9	$	(5,440)	$	84,913

	As of September 30, 2022
(Dollars in thousands)	Banking Business		Securities Business		Corporate/Eliminations		Axos Consolidated
Goodwill	$	35,721	$	61,967	$	—	$	97,688
Total Assets	$	17,320,661	$	1,027,815	$	58,602	$	18,407,078

	As of June 30, 2022
(Dollars in thousands)	Banking Business		Securities Business		Corporate/Eliminations		Axos Consolidated
Goodwill	$	35,721	$	59,953	$	—	$	95,674
Total Assets	$	16,002,714	$	1,328,558	$	69,893	$	17,401,165

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Revenue information. The following presents non-interest income, segregated by revenue streams in-scope and out-of-scope of Topic 606 for the periods indicated. For further information of the Company’s recognition of revenue and Topic 606 see Note 1—“Organizations and Summary of Significant Accounting Policies” contained in the 2022 Form 10-K.

	For the Three Months Ended
	September 30,
(Dollars in thousands)	2022		2021
Advisory fee income	$	6,959	$	5,304
Broker-dealer clearing fees	5,233		5,670
Deposit service fees	1,106		626
Card fees	789		1,007
Bankruptcy trustee and fiduciary service fees	773		780
Non-interest income (in-scope Topic 606)	14,860		13,387
Non-interest income (out-of-scope Topic 606)	12,348		13,315
Total non-interest income	$	27,208	$	26,702

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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 2022 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 effects on our business of the current novel coronavirus pandemic (“COVID-19”), the Company’s financial prospects and other projections of our performance and asset quality, our ability to continue to grow profitably and increase our business, our ability to continue to diversify lending and deposit franchises, and 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. Forward-looking statements are inherently unreliable and actual results may vary. Factors that could cause actual results to differ from these forward-looking statements include uncertainties surrounding the severity, duration, and effects of the COVID-19 pandemic, our ability to successfully integrate acquisitions and realize the anticipated benefits of the transactions, changes in the interest rate environment, 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, the outcome and effects of litigation and other risk factors discussed under the heading “Item 1A. Risk Factors” and in our 2022 Form 10-K, which has been filed with the SEC. 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 $18.4 billion in assets. Axos Bank (the “Bank”) provides consumer and business banking products through its online, 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, small-to-medium size businesses in target sectors, and automobiles. Our Bank generates fee income from consumer and business products including fees from loans originated for sale and transaction fees earned from processing payment activity. Our securities products and services are offered through Axos Clearing LLC (“Axos Clearing”) and its business division Axos Advisor Services (“AAS”) and Axos Invest, Inc. (“Axos Invest”), which generate interest and fee income by providing comprehensive securities clearing and custody services to introducing broker-dealers and registered investment advisor correspondents and digital investment advisory services to retail investors, respectively. Axos Invest LLC is an introducing broker-dealer which supports direct trading and Axos Invest, Inc. Axos Financial, Inc.’s common stock is listed on the New York Stock Exchange 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.

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, and Axos Invest LLC is an introducing broker-dealer that is registered with the SEC and FINRA.

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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 and telephonic distribution channels to serve the needs of consumer and small businesses nationally. Our deposit products consist of demand, savings, money market and time deposit accounts. In addition, the Banking Business segment focuses on providing deposit products nationwide to industry verticals (e.g., Title and Escrow), cash management products to a variety of businesses, and commercial & industrial and commercial real estate lending to clients. The Banking Business segment 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, registered investment advisor, 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.

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 accounting principles generally accepted in the United States of America. 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 Note 1 - “Organizations and Summary of Significant Accounting Policies” and under the caption “Management’s Discussion and Analysis of Financial Condition and Results of Operations – Critical Accounting Policies and Estimates” contained in the 2022 Form 10-K.

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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, 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. Although we believe the non-GAAP financial measures disclosed in this report enhance investors’ understanding of our business and performance, 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 costs (including amortization of intangible assets related to acquisitions) and other costs (unusual or non-recurring charges). Adjusted earnings per diluted common share (“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) for the periods shown:

	Three Months Ended
	September 30,
(Dollars in thousands, except per share amounts)	2022		2021
Net income	$	58,407	$	60,210
Acquisition-related costs	2,734		2,846
Other costs	16,000		—
Tax effects of adjustments	(5,526)		(828)
Adjusted earnings (Non-GAAP)	$	71,615	$	62,228
Adjusted EPS (Non-GAAP)	$	1.18	$	1.03

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 mortgage 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) as of the dates indicated:

	September 30,
(Dollars in thousands)	2022		2021
Common stockholders’ equity	$	1,700,972	$	1,458,621
Less: mortgage servicing rights, carried at fair value	26,373		18,438
Less: goodwill and other intangible assets	160,429		164,944
Tangible common stockholders’ equity (Non-GAAP)	$	1,514,170	$	1,275,239
Common shares outstanding at end of period	59,998,673		59,494,633
Tangible book value per common share (Non-GAAP)	$	25.24	$	21.43

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SELECTED FINANCIAL DATA

The following tables set forth certain selected financial data concerning the periods indicated:

AXOS FINANCIAL, INC. AND SUBSIDIARIES

SELECTED CONSOLIDATED FINANCIAL INFORMATION

(Dollars in thousands)	September 30, 2022			June 30, 2022			September 30, 2021
Selected Balance Sheet Data:
Total assets	$	18,407,078		$	17,401,165		$	14,906,750
Loans—net of allowance for credit losses	15,211,573			14,091,061			11,879,021
Loans held for sale, carried at fair value	9,463			4,973			33,344
Loans held for sale, lower of cost or fair value	10,476			10,938			11,949
Allowance for credit losses - loans	155,472			148,617			136,778
Securities—trading	75			1,758			1,941
Securities—available-for-sale	257,634			262,518			135,996
Securities borrowed	87,622			338,980			457,282
Customer, broker-dealer and clearing receivables	410,842			417,417			427,169
Total deposits	15,176,631			13,946,422			11,747,442
Advances from the FHLB	112,500			117,500			157,500
Borrowings, subordinated debentures and other borrowings	425,818			445,244			255,896
Securities loaned	206,889			474,400			539,505
Customer, broker-dealer and clearing payables	500,584			511,654			510,040
Total stockholders’ equity	1,700,972			1,642,973			1,458,621
Capital Ratios:
Equity to assets at end of period	9.24		%	9.44		%	9.78		%
Axos Financial, Inc.:
Tier 1 leverage (to adjusted average assets)	8.98		%	9.25		%	9.19		%
Common equity tier 1 capital (to risk-weighted assets)	9.97		%	9.86		%	10.79		%
Tier 1 capital (to risk-weighted assets)	9.97		%	9.86		%	10.79		%
Total capital (to risk-weighted assets)	12.90		%	12.73		%	13.10		%
Axos Bank:
Tier 1 leverage (to adjusted average assets)	10.30		%	10.65		%	10.14		%
Common equity tier 1 capital (to risk-weighted assets)	10.87		%	11.24		%	11.89		%
Tier 1 capital (to risk-weighted assets)	10.87		%	11.24		%	11.89		%
Total capital (to risk-weighted assets)	11.71		%	12.01		%	12.80		%
Axos Clearing LLC:
Net capital	$	49,183		$	38,915		$	39,663
Excess capital	$	42,324		$	32,665		$	31,435
Net capital as a percentage of aggregate debit items	14.34		%	12.45		%	9.64		%
Net capital in excess of 5% aggregate debit items	$	32,035		$	23,290		$	19,092

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AXOS FINANCIAL, INC. AND SUBSIDIARIES

SELECTED CONSOLIDATED FINANCIAL INFORMATION

	At or for the Three Months Ended
	September 30,
(Dollars in thousands, except per share data)	2022			2021
Selected Income Statement Data:
Interest and dividend income	$	223,786		$	158,310
Interest expense	43,311			11,668
Net interest income	180,475			146,642
Provision for credit losses	8,750			4,000
Net interest income after provision for credit losses	171,725			142,642
Non-interest income	27,208			26,702
Non-interest expense	116,087			84,431
Income before income tax expense	82,846			84,913
Income tax expense	24,439			24,703
Net income	$	58,407		$	60,210
Per Common Share Data:
Net income:
Basic	$	0.98		$	1.01
Diluted	$	0.97		$	0.99
Adjusted earnings per common share (Non-GAAP)1	$	1.18		$	1.03
Book value per common share	$	28.35		$	24.52
Tangible book value per common share (Non-GAAP)1	$	25.24		$	21.43
Weighted average number of common shares outstanding:
Basic	59,854,584			59,390,846
Diluted	60,486,394			60,644,288
Common shares outstanding at end of period	59,998,673			59,494,633
Common shares issued at end of period	69,151,152			68,370,617
Performance Ratios and Other Data:
Loan originations for investment	$	2,486,224		$	2,092,279
Loan originations for sale	$	70,073		$	209,967
Return on average assets	1.32		%	1.66		%
Return on average common stockholders’ equity	13.91		%	16.20		%
Interest rate spread2	3.66		%	4.04		%
Net interest margin3	4.26		%	4.22		%
Net interest margin3 – Banking Business Segment	4.50		%	4.48		%
Efficiency ratio4	55.90		%	48.71		%
Efficiency ratio4 – Banking Business Segment	52.93		%	39.93		%
Asset Quality Ratios:
Net annualized charge-offs to average loans5	0.05		%	0.01		%
Non-performing loans and leases to total loans	0.78		%	1.12		%
Non-performing assets to total assets	0.68		%	0.94		%
Allowance for credit losses - loans to total loans held for investment	1.01		%	1.14		%
Allowance for credit losses - loans to non-performing loans	129.04		%	101.97		%

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 Net charge-offs do not include any amounts transferred to loans held for sale.

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RESULTS OF OPERATIONS

Comparison of the Three Months Ended September 30, 2022 and 2021

For the three months ended September 30, 2022, we had net income of $58.4 million or $0.97 per diluted share compared to net income of $60.2 million or $0.99 per diluted share for the three months ended September 30, 2021.

Net Interest Income

Net interest income for the three months ended September 30, 2022 totaled $180.5 million, an increase of 23.1% compared to net interest income of $146.6 million for the three months ended September 30, 2021. The increase in net interest income for the three months ended September 30, 2022 compared to September 30, 2021 was primarily due to higher average balances and rates earned in the loan portfolio and a higher average balance of non-interest bearing deposits, partially offset by higher rates paid on deposits.

Total interest and dividend income during the three months ended September 30, 2022 increased 41.4% to $223.8 million, compared to $158.3 million during the three months ended September 30, 2021. The increase in interest and dividend income for the three months ended September 30, 2022 was primarily attributable to higher average balances and rates earned in the loan portfolio and higher rates on deposits placed with other financial institutions. The average balance of loans increased by 26.6% for the three months ended September 30, 2022 compared to the three months ended September 30, 2021.

Total interest expense was $43.3 million for the three months ended September 30, 2022, an increase of $31.6 million or 271.2% as compared with the quarter ended September 30, 2021. The increase in total interest expense for the three months ended September 30, 2022 compared to the three months ended September 30, 2021 was primarily due to higher rates paid on deposits, reflecting a 122 basis point increase in average rates paid on interest-bearing demand and savings deposits and a 44 basis point increase in average rates paid on time deposits, as deposit rates continue to increase across the industry. Also contributing to the increase was higher interest expense on advances from the Federal Home Loan Bank (“FHLB”) and other borrowings, both mainly attributable to higher average balances.

Net interest margin, defined as annualized net interest income divided by average interest-earning assets, increased by 4 basis points to 4.26% for the three months ended September 30, 2022 compared to the three months ended September 30, 2021.

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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
	September 30,
	2022						2021
(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	$	14,761,077	$	208,338	5.65	%	$	11,662,383	$	149,176	5.12	%
Interest-earning deposits in other financial institutions	1,235,712		7,347		2.38	%	1,163,143		591		0.20	%
Mortgage-backed and other investment securities4	257,119		3,298		5.13	%	156,360		1,421		3.64	%
Securities borrowed and margin lending5	669,150		4,384		2.62	%	903,542		6,851		3.03	%
Stock of the regulatory agencies	28,281		419		5.93	%	20,694		271		5.24	%
Total interest-earning assets	16,951,339		223,786		5.28	%	13,906,122		158,310		4.55	%
Non-interest-earning assets	689,230						596,295
Total assets	$	17,640,569					$	14,502,417
Liabilities and Stockholders’ Equity:
Interest-bearing demand and savings	$	7,715,655	$	27,709	1.44	%	$	6,564,620	$	3,567	0.22	%
Time deposits	1,156,717		4,796		1.66	%	1,363,061		4,145		1.22	%
Securities loaned	534,538		943		0.71	%	660,040		251		0.15	%
Advances from the FHLB	880,348		5,163		2.35	%	295,402		1,016		1.38	%
Borrowings, subordinated notes and debentures	385,148		4,700		4.88	%	223,837		2,689		4.81	%
Total interest-bearing liabilities	10,672,406		43,311		1.62	%	9,106,960		11,668		0.51	%
Non-interest-bearing demand deposits	4,517,918						3,191,171
Other non-interest-bearing liabilities	770,189						717,725
Stockholders’ equity	1,680,056						1,486,561
Total liabilities and stockholders’ equity	$	17,640,569					$	14,502,417
Net interest income			$	180,475					$	146,642
Interest rate spread6					3.66	%					4.04	%
Net interest margin7					4.26	%					4.22	%

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. Loans include average balances of $25.9 million and $26.7 million of Community Reinvestment Act loans which are taxed at a reduced rate for the 2022 and 2021 three-month periods, respectively.

5Margin lending is the significant component of the asset titled customer, broker-dealer and clearing receivables on the unaudited condensed consolidated balance sheets.

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 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); (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 both, based on their relative absolute values.

	For the Three Months Ended
	September 30,
	2022 vs 2021
	Increase (Decrease) Due to
(Dollars in thousands)	Volume		Rate		Total Increase (Decrease)
Increase (decrease) in interest income:
Loans	$	42,575	$	16,587	$	59,162
Interest-earning deposits	38		6,718		6,756
Securities	1,148		729		1,877
Securities borrowed and margin lending	(1,622)		(845)		(2,467)
Stock of the regulatory agencies	109		39		148
	$	42,248	$	23,228	$	65,476
Increase (decrease) in interest expense:
Interest-bearing demand and savings	$	740	$	23,402	$	24,142
Time deposits	(694)		1,345		651
Securities loaned	(56)		748		692
Advances from the FHLB	3,061		1,086		4,147
Borrowings, subordinated notes and debentures	1,971		40		2,011
	$	5,022	$	26,621	$	31,643

Provision for Credit Losses

The provision for credit losses was $8.8 million for the three months ended September 30, 2022 compared to $4.0 million for the three months ended September 30, 2021 primarily due to growth in the loan portfolio and changes in loan mix in each period. Provisions for credit losses are charged to income to bring the allowance for credit losses - loans to a level deemed appropriate by management based on the factors discussed under “Financial Condition—Asset Quality and Allowance for Credit Losses - Loans.”

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Non-Interest Income1

The following table sets forth information regarding our non-interest income for the periods shown:

	For the Three Months Ended
	September 30,
(Dollars in thousands)	2022		2021		Inc (Dec)
Broker-dealer fee income	9,178		6,462		2,716
Advisory fee income	6,959		5,304		1,655
Banking and service fees	6,514		6,680		(166)
Mortgage banking income	3,365		5,270		(1,905)
Prepayment penalty fee income	1,192		2,986		(1,794)
Total non-interest income	$	27,208	$	26,702	$	506

1.Certain components of non-interest income for the three months ended September 30, 2021 have been reclassified to conform to the current period presentation. See Note 1—”Organizations and Summary of Significant Accounting Policies” in the condensed consolidated financial statements for additional information.

Non-interest income increased to $27.2 million for the three months ended September 30, 2022 compared to $26.7 million for the three months ended September 30, 2021. Increases in broker-dealer fee income of $2.7 million from higher rates earned on cash sorting balances placed at non-affiliated banks and in advisory fee income of $1.7 million as a result of incremental revenues from the AAS acquisition were mostly offset by decreases in mortgage banking income of $1.9 million and prepayment penalty fee income of $1.8 million as higher mortgage rates contributed to lower originations and slower prepayments, respectively.

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Non-Interest Expense

The following table sets forth information regarding our non-interest expense for the periods shown:

	For the Three Months Ended
	September 30,
(Dollars in thousands)	2022		2021		Inc (Dec)
Salaries and related costs	$	46,996	$	40,737	$	6,259
Data processing	14,022		12,092		1,930
Depreciation and amortization	6,094		5,728		366
Advertising and promotional	6,370		3,372		2,998
Professional services	8,087		4,545		3,542
Occupancy and equipment	4,054		3,181		873
FDIC and regulator fees	3,735		2,266		1,469
Broker-dealer clearing charges	2,829		4,005		(1,176)
Other general and administrative	23,900		8,505		15,395
Total non-interest expenses	$	116,087	$	84,431	$	31,656

Non-interest expense was $116.1 million for the three months ended September 30, 2022, up from $84.4 million for the three months ended September 30, 2021. The increase was primarily attributable to higher other general and administrative expenses, salaries and related costs, professional services, advertising and promotional and data processing expenses.

Total salaries and related costs increased $6.3 million to $47.0 million for the quarter ended September 30, 2022, compared to $40.7 million for the quarter ended September 30, 2021, primarily as a result of a 9.9% increase in headcount to 1,409 as well as an increase in salaries.

Data processing expense increased $1.9 million for the three months ended September 30, 2022, compared to the three months ended September 30, 2021. The increase was primarily due to enhancements to customer interfaces and the Company’s processing systems as well as incremental expenses as a result of the AAS acquisition.

Depreciation and amortization expense increased $0.4 million for the three months ended September 30, 2022, compared to the three months ended September 30, 2021. The increase was primarily attributable to the amortization of intangibles as a result of the AAS acquisition.

Advertising and promotional expense increased $3.0 million for the three months ended September 30, 2022, compared to the three months ended September 30, 2021. The increase was primarily due to increased lead generation and deposit marketing costs.

Professional services, which include accounting, consulting and legal fees, increased $3.5 million for the three months ended September 30, 2022 compared to the three months ended September 30, 2021. The increase was primarily the result of higher legal expenses related to litigation.

Occupancy and equipment expense increased $0.9 million for the three months ended September 30, 2022 compared to the three months ended September 30, 2021, due to annual rent increases and growth in our office footprint.

FDIC and regulator fees increased $1.5 million for the three months ended September 30, 2022, compared to the three month period ending September 30, 2021 due to balance sheet growth and changes in product mix at the Bank. As an FDIC-insured institution, the Bank is required to pay deposit insurance premiums to the FDIC.

Broker-dealer clearing charges decreased $1.2 million for the three months ended September 30, 2022 compared to the three months ended September 30, 2021. The decrease was attributable to reduced customer trading activity in the three months ended September 30, 2022.

Other general and administrative costs increased by $15.4 million for the three months ended September 30, 2022, compared to the three month period ended September 30, 2021 primarily reflecting a $16.0 million accrual in the current quarter as a result of an adverse legal judgement that has not been finalized.

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Provision for Income Taxes

Income tax expense was $24.4 million for the three months ended September 30, 2022 compared to $24.7 million for three months ended September 30, 2021. Our effective income tax rates (income tax provision divided by net income before income tax) for the three months ended September 30, 2022 and 2021 were 29.50% and 29.09%, respectively.

SEGMENT RESULTS

Our 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. Our Company operates through two segments: Banking Business and Securities Business. In order to reconcile the two segments to the unaudited condensed consolidated totals, our Company includes parent-only activities and intercompany eliminations. The following tables present the operating results of the segments:

	Three Months Ended September 30, 2022
(Dollars in thousands)	Banking Business		Securities Business		Corporate/Eliminations		Axos Consolidated
Net interest income	$	179,730	$	4,275	$	(3,530)	$	180,475
Provision for credit losses	8,750		—		—		8,750
Non-interest income	10,712		29,165		(12,669)		27,208
Non-interest expense	100,796		24,515		(9,224)		116,087
Income before taxes	$	80,896	$	8,925	$	(6,975)	$	82,846

	Three Months Ended September 30, 2021
(Dollars in thousands)	Banking Business		Securities Business		Corporate/Eliminations		Axos Consolidated
Net interest income	$	142,241	$	6,176	$	(1,775)	$	146,642
Provision for credit losses	4,000		—		—		4,000
Non-interest income	14,828		13,106		(1,232)		26,702
Non-interest expense	62,725		19,273		2,433		84,431
Income before taxes	$	90,344	$	9	$	(5,440)	$	84,913

Banking Business

For the three months ended September 30, 2022, our Banking Business segment had income before taxes of $80.9 million compared to income before taxes of $90.3 million for the three months ended September 30, 2021. The decrease was due to increases in non-interest expense and the provision for credit losses and lower non-interest income, partially offset by an increase in net interest income.

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

	At or for the Three Months Ended September 30,
	2022		2021
Efficiency ratio	52.93	%	39.93	%
Return on average assets	1.66	%	1.92	%
Interest rate spread	3.92	%	4.34	%
Net interest margin	4.50	%	4.48	%

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 Holding 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 borrowings that particularly decrease net interest margin.

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For the Three Months Ended

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

The following table presents our Banking Business segment’s information regarding (i) average balances; (ii) the total amount of interest income from interest-earning assets and the weighted average yields on such assets; (iii) the total amount of interest expense on interest-bearing liabilities and the weighted average rates paid on such liabilities; (iv) net interest income; (v) interest rate spread; and (vi) net interest margin for the three months ended September 30, 2022 and 2021:

	For the Three Months Ended
	September 30,
	2022						2021
(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	$	14,735,034	$	208,010	5.65	%	$	11,622,074	$	148,843	5.12	%
Interest-earning deposits in other financial institutions	929,206		5,631		2.42	%	879,856		337		0.15	%
Mortgage-backed and other investment securities4	275,975		3,371		4.89	%	180,545		1,546		3.43	%
Stock of the regulatory agencies	28,281		418		5.91	%	17,824		270		6.06	%
Total interest-earning assets	15,968,496		217,430		5.45	%	12,700,299		150,996		4.76	%
Non-interest-earning assets	312,320						286,810
Total assets	$	16,280,816					$	12,987,109
Liabilities and Stockholders’ Equity:
Interest-bearing demand and savings	$	7,809,552	$	27,741	1.42	%	$	6,614,799	$	3,594	0.22	%
Time deposits	1,156,717		4,796		1.66	%	1,363,061		4,145		1.22	%
Advances from the FHLB	880,348		5,163		2.35	%	295,402		1,016		1.38	%
Borrowings, subordinated notes and debentures	22		—		—	%	43		—		—	%
Total interest-bearing liabilities	9,846,639		37,700		1.53	%	8,273,305		8,755		0.42	%
Non-interest-bearing demand deposits	4,583,593						3,238,709
Other non-interest-bearing liabilities	190,997						124,213
Stockholders’ equity	1,659,587						1,350,882
Total liabilities and stockholders’ equity	$	16,280,816					$	12,987,109
Net interest income			$	179,730					$	142,241
Interest rate spread5					3.92	%					4.34	%
Net interest margin6					4.50	%					4.48	%

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. Loans include average balances of $25.9 million and $26.7 million of Community Reinvestment Act loans which are taxed at a reduced rate for the 2022 and 2021 three-month periods, respectively.

5Interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average rate paid on interest-bearing liabilities.

6Net 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 both, based on their relative absolute values.

	For the Three Months Ended
	September 30,
	2022 vs 2021
	Increase (Decrease) Due to
(Dollars in thousands)	Volume		Rate		Total Increase (Decrease)
Increase / (decrease) in interest income:
Loans	$	42,675	$	16,492	$	59,167
Interest-earning deposits	20		5,274		5,294
Securities	1,011		814		1,825
Stock of the regulatory agencies, at cost	155		(7)		148
	$	43,861	$	22,573	$	66,434
Increase / (decrease) in interest expense:
Interest-bearing demand and savings	$	774	$	23,372	$	24,146
Time deposits	(694)		1,345		651
Advances from the FHLB	3,061		1,086		4,147
Borrowings, subordinated notes and debentures	—		—		—
	$	3,141	$	25,803	$	28,944

The Banking Business segment’s net interest income for the three months ended September 30, 2022 totaled $179.7 million, an increase of 26.4%, compared to net interest income of $142.2 million for the three months ended September 30, 2021. The increase in net interest income for the three months ended September 30, 2022 was primarily due to higher average balances and rates earned in the loan portfolio, partially offset by higher rates paid on deposits.

The Banking Business segment’s non-interest income decreased $4.1 million from $14.8 million to $10.7 million for the three months ended September 30, 2022 compared to the three months ended September 30, 2021. The decrease was primarily the result of a decrease in mortgage banking income of $1.9 million and a decrease in prepayment penalty fee income of $1.8 million as higher mortgage rates contributed to lower originations and slower prepayments.

The Banking Business segment’s non-interest expense increased $38.1 million for the three months ended September 30, 2022 compared to the three months ended September 30, 2021. The increase was primarily due to a $16.0 million accrual in the current quarter as a result of an adverse legal judgement that has not been finalized, an increase in advertising and promotional expenses of $13.7 million primarily due to amounts paid to our Securities Business segment for non-interest bearing deposits, higher salaries and related costs of $5.3 million as a result of higher headcount and an increase in salaries, and higher professional services of $2.3 million resulting from higher legal expenses related to litigation.

Securities Business

For the three months ended September 30, 2022, our Securities Business segment had income before taxes of $8.9 million compared to income before taxes of $9 thousand for the three months ended September 30, 2021. The increase was due to higher non-interest income, partially offset by higher non-interest expense and lower net interest income.

Net interest income for the three months ended September 30, 2022, decreased $1.9 million to $4.3 million compared to $6.2 million for the three months ended September 30, 2021, primarily as a result of lower securities lending activity, partially offset by higher cash deposit balances.

Non-interest income for the three months ended September 30, 2022, was $29.2 million compared to $13.1 million for the three months ended September 30, 2021. The increase of $16.1 million was primarily the result of an increase in fees earned

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on FDIC insured bank deposits, including amounts received from our Banking Business segment, and incremental revenues as a result of the AAS acquisition.

Non-interest expense increased $5.2 million to $24.5 million for the three months ended September 30, 2022 from the $19.3 million for the three months ended September 30, 2021. The increase was primarily related to an increase in salaries and related costs as a result of higher headcount and an increase in salaries as well as an increase in professional services, partially offset by a decrease in broker-dealer clearing charges on reduced customer trading activity.

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

(Dollars in thousands)	September 30, 2022		June 30, 2022
FDIC insured deposit program balances at banks	$	3,268,927	$	3,452,358
Customer margin balances	$	257,307	$	285,894
Cash reserves for the benefit of customers	$	328,878	$	372,112
Securities lending:
Interest-earning assets – stock borrowed	$	87,622	$	338,980
Interest-bearing liabilities – stock loaned	$	206,889	$	474,400

41

FINANCIAL CONDITION

Balance Sheet Analysis

Our total assets increased $1.0 billion, or 5.8%, to $18.4 billion, as of September 30, 2022, up from $17.4 billion at June 30, 2022. The increase in total assets was primarily due to an increase of $1.1 billion in loans. Total liabilities increased $0.9 billion, primarily from an increase in deposits of $1.3 billion partially offset by a decrease in securities loaned of $0.3 billion.

Loans

Net loans held for investment increased 8.0% to $15.2 billion at September 30, 2022 from $14.1 billion at June 30, 2022. The increase in the loan portfolio was primarily due to loan originations of $2.5 billion, partially offset by loan repayments and other adjustments of $1.2 billion.

The following table sets forth the composition of the loan portfolio as of the dates indicated:

	September 30, 2022				June 30, 2022
(Dollars in thousands)	Amount		Percent		Amount		Percent
Single Family - Mortgage & Warehouse	$	4,009,809	26.0	%	$	3,988,462	28.0	%
Multifamily and Commercial Mortgage	2,964,982		19.3	%	2,877,680		20.2	%
Commercial Real Estate	5,523,895		35.9	%	4,781,044		33.5	%
Commercial & Industrial - Non-RE	2,244,342		14.6	%	2,028,128		14.2	%
Auto & Consumer	631,344		4.1	%	567,228		4.0	%
Other	9,954		0.1	%	11,134		0.1	%
Total gross loans	15,384,326		100.0	%	14,253,676		100.0	%
Allowance for credit losses - loans	(155,472)				(148,617)
Unaccreted discounts and loan fees	(17,281)				(13,998)
Total net loans	$	15,211,573			$	14,091,061

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 interest only loans would be reported to management and the Board of Directors. As of September 30, 2022, the Company had $1.3 billion of interest only mortgage loans with a weighted average loan-to-value of 58.5%.

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Asset Quality and Allowance for Credit Losses - Loans

Non-performing Assets

Non-performing loans are comprised of those past due 90 days or more and other nonaccrual loans. Non-performing assets include non-performing loans plus other real estate owned and repossessed vehicles. At September 30, 2022, our non-performing loans totaled $120.5 million, or 0.78% of total gross loans and our total non-performing assets totaled $125.8 million, or 0.68% of total assets.

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

(Dollars in thousands)	September 30, 2022			June 30, 2022			Inc (Dec)
Non-performing assets:
Non-accrual loans:
Single Family - Mortgage & Warehouse	$	65,687		$	66,424		$	(737)
Multifamily and Commercial Mortgage	35,837			33,410			2,427
Commercial Real Estate	14,852			14,852			—
Commercial & Industrial - Non-RE	2,989			2,989			—
Auto & Consumer	990			439			551
Other	126			80			46
Total non-performing loans	120,481			118,194			2,287
Foreclosed real estate	4,534			—			4,534
Repossessed—Auto and RV	768			798			(30)
Total non-performing assets	$	125,783		$	118,992		$	6,791
Total non-performing loans as a percentage of total loans	0.78		%	0.83		%	(0.05)		%
Total non-performing assets as a percentage of total assets	0.68		%	0.68		%	—		%

Total non-performing assets increased from $119.0 million at June 30, 2022 to $125.8 million at September 30, 2022. The increase in non-performing assets was primarily attributable to additional non-performing loans and foreclosed real estate. The weighted average LTV of the non-performing single family mortgage loans is 58.4%.

The Bank had no performing troubled debt restructurings at September 30, 2022 or June 30, 2022. A troubled debt restructuring is a concession made to a borrower experiencing financial difficulties, typically permanent or temporary modifications of principal and interest payments or an extension of maturity dates. When a loan is delinquent and classified as a troubled debt restructuring no interest is accrued until the borrower demonstrates over time (typically six months) that it can make payments. When a loan is considered a troubled debt restructuring and is on nonaccrual, it is considered non-performing and included in the table above.

Management establishes an allowance for credit losses based upon its evaluation of the expected life-time credit losses related to the amortized cost basis of loans on the balance sheet. 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.

The provision for credit losses was $8.8 million for the three months ended September 30, 2022 compared to $4.0 million for the three months ended September 30, 2021. The provision for credit losses was primarily due to growth in the loan portfolio and changes in loan mix in each period. The provision for credit losses for the three months ended September 30, 2022 increased over the three months ended September 30, 2021 primarily due to a higher provision in Commercial and Industrial - Non-RE, partially offset by lower provisions in Commercial Real Estate and Auto & Consumer. We believe that the lower average LTV in the Bank’s mortgage loan portfolio will continue to result in future lower average mortgage loan charge-offs when compared to many other comparable banks. The resolution of the Bank’s existing other real estate owned and non-performing loans should not have a significant adverse impact on our operating results.

Investment Securities

Total investment securities were $257.7 million as of September 30, 2022, compared with $264.3 million at June 30, 2022. During the three months ended September 30, 2022, we did not purchase any investment securities and received principal repayments of approximately $1.0 million in our available-for-sale portfolio. The remainder of the change for the available-for-sale portfolio is attributable to unrealized losses, accretion and other activities.

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Deposits

Deposits increased by $1.3 billion, or 8.8%, to $15.2 billion at September 30, 2022, from $13.9 billion at June 30, 2022. Interest bearing demand and savings increased $1.4 billion and time deposits increased $0.1 billion. Non-interest bearing deposits decreased $0.4 billion, or 8.1%, to $4.6 billion at September 30, 2022, from $5.0 billion at June 30, 2022.

The following table sets forth the composition of the deposit portfolio as of the dates indicated:

	September 30, 2022				June 30, 2022
(Dollars in thousands)	Amount		Rate1		Amount		Rate1
Non-interest bearing	$	4,626,907	—	%	$	5,033,970	—	%
Interest-bearing:
Demand	4,678,634		1.36	%	3,611,889		0.61	%
Savings	4,628,376		1.86	%	4,245,555		0.95	%
Total interest-bearing demand and savings	9,307,010		1.61	%	7,857,444		0.79	%
Time deposits:
$250 and under2	845,134		1.72	%	651,392		1.22	%
Greater than $250	397,580		2.31	%	403,616		1.41	%
Total time deposits	1,242,714		1.88	%	1,055,008		1.25	%
Total interest bearing2	10,549,724		1.64	%	8,912,452		0.85	%
Total deposits	$	15,176,631	1.14	%	$	13,946,422	0.54	%

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

2 The total interest-bearing includes brokered deposits of $2,312.6 million and $1,032.7 million as of September 30, 2022 and June 30, 2022, respectively, of which $474.9 million and $250.0 million, respectively, are time deposits classified as $250 and under.

The following table sets forth the number of accounts by type as of the date indicated:

	September 30, 2022	June 30, 2022	September 30, 2021
Non-interest bearing	43,539	42,372	38,725
Interest-bearing checking and savings accounts	351,988	344,593	342,860
Time deposits	8,134	8,734	11,082
Total number of accounts	403,661	395,699	392,667

Total deposits that exceeded the FDIC insurance limit of $250,000 at September 30, 2022 and June 30, 2022 were $1.9 billion and $2.3 billion, respectively. The maturities of certificates of deposit that exceeded the FDIC insurance limit of $250,000 at September 30, 2022 were as follows:

(Dollars in thousands)	September 30, 2022
3 months or less	$	3,560
3 months to 6 months	5,844
6 months to 12 months	5,494
Over 12 months	13,034
Total	$	27,932

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Borrowings

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

	September 30, 2022					June 30, 2022					September 30, 2021
(Dollars in thousands)	Balance			Weighted Average Rate		Balance			Weighted Average Rate		Balance			Weighted Average Rate
FHLB Advances	$	112,500		2.27	%	$	117,500		2.26	%	$	157,500		2.29	%
Borrowings, subordinated notes and debentures	425,818			4.13	%	445,244			3.86	%	255,896			4.05	%
Total borrowings	$	538,318		3.74	%	$	562,744		3.53	%	$	413,396		3.38	%
Weighted average cost of borrowings during the quarter	3.12		%			2.85		%			2.85		%
Borrowings as a percent of total assets	2.92		%			3.23		%			2.77		%

At September 30, 2022, total borrowings amounted to $538.3 million, down $24.4 million or 4.3%, from June 30, 2022 and up $124.9 million or 30.2% from September 30, 2021. Borrowings as a percent of total assets were 2.92%, 3.23% and 2.77% at September 30, 2022, June 30, 2022 and September 30, 2021, respectively. Weighted average cost of borrowings during the quarter were 3.12%, 2.85% and 2.85% for the quarters ended September 30, 2022, June 30, 2022 and September 30, 2021, respectively.

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.

Stockholders’ Equity

Stockholders’ equity increased $58.0 million to $1,701.0 million at September 30, 2022 compared to $1,643.0 million at June 30, 2022. The increase was the result of net income for the three months ended September 30, 2022 of $58.4 million and stock compensation expense and restricted stock units vesting which combined for an increase of $2.4 million, partially offset by a $2.8 million decrease in accumulated other comprehensive income, net of tax.

During the three months ended September 30, 2022, the Company did not repurchase any shares of its common stock. The Company had $52.8 million remaining under the Board authorized stock repurchase program as of September 30, 2022.

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LIQUIDITY

Cash flow information is as follows:

	For the Three Months Ended
	September 30,
(Dollars in thousands)	2022		2021
Operating Activities	$	70,821	$	(129,169)
Investing Activities	$	(1,150,290)	$	(403,220)
Financing Activities	$	1,202,818	$	764,046

During the three months ended September 30, 2022, we had net cash inflows from operating activities of $70.8 million compared to outflows of $129.2 million for the three months ended September 30, 2021. 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 $1,150.3 million for the three months ended September 30, 2022, while outflows totaled $403.2 million for the three months ended September 30, 2021. The increase in outflows was primarily due to increased originations of loans and lower repayments on loans.

Net cash inflows from financing activities totaled $1,202.8 million for the three months ended September 30, 2022, compared to net cash inflows from financing activities of $764.0 million for the three months ended September 30, 2021. The primary driver behind the increase in net cash inflows was a net increase in deposits and net repayments of other FHLB advances in the three months ended September 30, 2021.

During the three months ended September 30, 2022, the Bank could borrow up to 40.0% of its total assets from the FHLB. Borrowings are collateralized by the pledge of certain mortgage loans and investment securities to the FHLB. At September 30, 2022, the Company had $2,037.6 million available immediately and $4,363.6 million available with additional collateral. At September 30, 2022, we also had two unsecured federal funds purchase lines with two different banks totaling $175.0 million, under which no borrowings were outstanding.

The Bank has the ability to borrow short-term from the Federal Reserve Bank of San Francisco Discount Window. At September 30, 2022, the Bank did not have any borrowings outstanding and the amount available from this source was $2,958.5 million. The credit line is collateralized by consumer loans and mortgage-backed securities.

Axos Clearing has a total of $170 million in uncommitted secured lines of credit for borrowing as needed. As of September 30, 2022, there was $55.7 million outstanding. These credit facilities bear interest at rates based on the Federal Funds rate and are due upon demand.

Axos Clearing has a $175.0 million committed unsecured line of credit available for limited purpose borrowing, which includes $100.0 million from Axos Financial, Inc. As of September 30, 2022, there was $36.3 million outstanding on this credit facility after elimination of intercompany balances. This credit facility bears interest at rates based on the Federal Funds rate and are due upon demand.

We believe our liquidity sources to be stable and adequate for our anticipated needs and contingencies for the next 12 months and beyond. We believe we have the ability to increase our level of deposits and borrowings to address our liquidity needs for the foreseeable future.

OFF-BALANCE SHEET COMMITMENTS

At September 30, 2022, we had commitments to originate loans with an aggregate outstanding principal balance of $3,374.0 million, and commitments to sell loans with an aggregate outstanding principal balance of $12.6 million. We have no commitments to purchase loans, investment securities or any other unused lines of credit.

In the normal course of business, Axos Clearing’s 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.

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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 unaudited condensed consolidated financial statements. The Federal Reserve establishes capital requirements for our Company and the OCC has similar requirements for our Bank. The following tables present regulatory capital information for our Company and Bank. Information presented for September 30, 2022, reflects the Basel III capital requirements for both our Company and 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 core 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 September 30, 2022, 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 September 30, 2022 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 CECL transition guidance for calculating regulatory capital and ratios and the September 30, 2022 and June 30, 2022 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. Beginning with fiscal year 2023, this cumulative amount is phased out of regulatory capital at 25% per year until it is 100% phased out of regulatory capital beginning in fiscal year 2026.

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 millions)	September 30, 2022			June 30, 2022			September 30, 2022			June 30, 2022
Regulatory Capital:
Tier 1	$	1,571		$	1,522		$	1,675		$	1,615
Common equity tier 1	$	1,571		$	1,522		$	1,675		$	1,615
Total capital	$	2,033		$	1,966		$	1,804		$	1,726
Assets:
Average adjusted	$	17,501		$	16,461		$	16,250		$	15,165
Total risk-weighted	$	15,757		$	15,443		$	15,410		$	14,366
Regulatory Capital Ratios:
Tier 1 leverage (to adjusted average assets)	8.98		%	9.25		%	10.30		%	10.65		%	5.00%	4.00%
Common equity tier 1 capital (to risk-weighted assets)	9.97		%	9.86		%	10.87		%	11.24		%	6.50%	4.50%
Tier 1 capital (to risk-weighted assets)	9.97		%	9.86		%	10.87		%	11.24		%	8.00%	6.00%
Total capital (to risk-weighted assets)	12.90		%	12.73		%	11.71		%	12.01		%	10.00%	8.00%

Basel III implemented a requirement for 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 September 30, 2022 and June 30, 2022, our Company and Bank were in compliance with the capital conservation buffer requirement, which sets the

47

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)	September 30, 2022			June 30, 2022
Net capital	$	49,183		$	38,915
Excess Capital	$	42,324		$	32,665
Net capital as a percentage of aggregate debit items	14.34		%	12.45		%
Net capital in excess of 5% aggregate debit items	$	32,035		$	23,290

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 September 30, 2022, the Company had a deposit requirement of $292.7 million and maintained a deposit of $292.0 million. On October 1, 2022, the company made a deposit of $10.0 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 September 30, 2022, the Company had a deposit requirement of $28.5 million and maintained a deposit of $36.8 million. On October 3, 2022, the Company made a withdrawal in the amount of $7.3 million.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

For further discussion of the Company’s market risk, see “Quantitative and Qualitative Disclosures About Market Risk” in the 2022 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.

48

Banking Business

The following table sets forth the amounts of interest earning assets and interest bearing liabilities that were outstanding at September 30, 2022 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
	September 30, 2022
(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	$	1,346,498		$	—		$	—		$	—		$	1,346,498
Securities1	233,481			1,209			11,131			19,514			265,335
Stock of the FHLB, at cost	17,250			—			—			—			17,250
Loans—net of allowance for credit loss	9,769,494			1,424,010			3,985,251			165,887			15,344,642
Loans held for sale	19,939			—			—			—			19,939
Total interest-earning assets	11,386,662			1,425,219			3,996,382			185,401			16,993,664
Non-interest earning assets	—			—			—			—			326,997
Total assets	$	11,386,662		$	1,425,219		$	3,996,382		$	185,401		$	17,320,661
Interest-bearing liabilities:
Interest-bearing deposits	$	8,478,160		$	1,855,568		$	303,336		$	214		$	10,637,278
Advances from the FHLB	22,500			—			30,000			60,000			112,500
Total interest-bearing liabilities	8,500,660			1,855,568			333,336			60,214			10,749,778
Other non-interest-bearing liabilities	—			—			—			—			4,873,163
Stockholders’ equity	—			—			—			—			1,697,720
Total liabilities and equity	$	8,500,660		$	1,855,568		$	333,336		$	60,214		$	17,320,661
Net interest rate sensitivity gap	$	2,886,002		$	(430,349)		$	3,663,046		$	125,187		$	6,243,886
Cumulative gap	$	2,886,002		$	2,455,653		$	6,118,699		$	6,243,886		$	6,243,886
Net interest rate sensitivity gap—as a % of total interest earning assets	16.98		%	(2.53)		%	21.56		%	0.74		%	36.74		%
Cumulative gap—as % of total interest earning assets	16.98		%	14.45		%	36.01		%	36.74		%	36.74		%

1    Comprised of agency and non-agency mortgage-backed securities, municipal securities and other non-agency debt securities, which are classified as available-for-sale.

The above table provides an approximation of the projected re-pricing of assets and liabilities at September 30, 2022 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.

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.

49

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, the Bank assumes no growth in the balance sheet other than for retained earnings:

	As of September 30, 2022
	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	$	785,696	7.7	%	$	885,569	7.2	%
Base	$	729,676	—	%	$	825,716	—	%
Down 200 basis points	$	667,918	(8.5)	%	$	754,746	(8.6)	%

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 current treasury and LIBOR yield curves.

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

	As of September 30, 2022
(Dollars in thousands)	Net Present Value		Percentage Change from Base		Net Present Value as a Percentage of Assets
Up 200 basis points	$	1,856,089	(4.1)	%	11.2	%
Up 100 basis points	$	1,912,247	(1.2)	%	11.4	%
Base	$	1,934,665	—	%	11.4	%
Down 100 basis points	$	1,895,905	(2.0)	%	11.0	%
Down 200 basis points	$	1,768,706	(8.6)	%	10.2	%

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, and 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 change 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 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.

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. Much 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.

50

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 September 30, 2022 the Company integrated the internal controls over financial reporting of AAS into its company-wide internal controls 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 8 – “Commitments And Contingencies” to the Unaudited Condensed 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 Part 1, “Item 1A. Risk Factors” in our 2022 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 shares retained in connection with net settlement of restricted stock awards during the quarter ended September 30, 2022.

(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 September 30, 2022
July 1, 2022 to July 31, 2022	—	$	—	—	$	—
August 1, 2022 to August 31, 2022	—	$	—	—	$	—
September 1, 2022 to September 30, 2022	—	$	—	—	$	—
For the Three Months Ended September 30, 2022	—	$	—	—	$	52,764
Stock Retained in Net Settlement2
July 1, 2022 to July 31, 2022	324
August 1, 2022 to August 31, 2022	48,115
September 1, 2022 to September 30, 2022	22,267
For the Three Months Ended September 30, 2022	70,706

1 On August 2, 2019, the Board of Directors of the Company authorized a program to repurchase up to $100 million of common stock. The share repurchase program will continue in effect until terminated by the Board of Directors of the Company. Purchases were made in open-market transactions.

2 On October 28, 2021, the stockholders of the Company approved the Amended and Restated 2014 Stock Incentive Plan, which, among other changes permitted 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.

52

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

53

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:	October 27, 2022	By:	/s/ Gregory Garrabrants
			Gregory Garrabrants President and Chief Executive Officer (Principal Executive Officer)
Dated:	October 27, 2022	By:	/s/ Derrick K. Walsh
			Derrick K. Walsh Executive Vice President and Chief Financial Officer (Principal Financial Officer)

54

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:	October 27, 2022	/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:	October 27, 2022	/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 September 30, 2022 (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:	October 27, 2022	/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 September 30, 2022 (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:	October 27, 2022	/s/ DERRICK K. WALSH
		DERRICK K. WALSH Executive Vice President and Chief Financial Officer (Principal Financial Officer)

XML

Cover Page - shares	3 Months Ended
	Sep. 30, 2022	Oct. 21, 2022
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2022
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 (in shares)		59,999,339
Entity Central Index Key	0001299709
Current Fiscal Year End Date	--06-30
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q1
Amendment Flag	false

XML

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2022	Jun. 30, 2022
ASSETS
Cash and cash equivalents	$ 1,369,170	$ 1,202,587
Cash segregated for regulatory purposes	328,878	372,112
Total cash, cash equivalents, and cash segregated	1,698,048	1,574,699
Securities:
Trading	75	1,758
Available-for-sale	257,634	262,518
Stock of regulatory agencies	20,881	20,368
Loans held for sale, carried at fair value	9,463	4,973
Loans held for sale, lower of cost or fair value	10,476	10,938
Loans—net of allowance for credit losses of $155,472 as of September 30, 2022 and $148,617 as of June 30, 2022	15,211,573	14,091,061
Mortgage servicing rights, carried at fair value	26,373	25,213
Securities borrowed	87,622	338,980
Customer, broker-dealer and clearing receivables	410,842	417,417
Goodwill and other intangible assets—net	160,429	156,405
Other assets	513,662	496,835
TOTAL ASSETS	18,407,078	17,401,165
Deposits:
Non-interest bearing	4,626,907	5,033,970
Interest bearing	10,549,724	8,912,452
Total deposits	15,176,631	13,946,422
Advances from the Federal Home Loan Bank	112,500	117,500
Borrowings, subordinated notes and debentures	425,818	445,244
Securities loaned	206,889	474,400
Customer, broker-dealer and clearing payables	500,584	511,654
Accounts payable and other liabilities	283,684	262,972
Total liabilities	16,706,106	15,758,192
COMMITMENTS AND CONTINGENCIES (Note 8)
STOCKHOLDERS’ EQUITY:
Common stock—$0.01 par value; 150,000,000 shares authorized; 69,151,152 shares issued and 59,998,673 shares outstanding as of September 30, 2022; 68,859,722 shares issued and 59,777,949 shares outstanding as of June 30, 2022	692	689
Additional paid-in capital	459,101	453,784
Accumulated other comprehensive income (loss)—net of tax	(5,770)	(2,933)
Retained earnings	1,486,851	1,428,444
Treasury stock, at cost; 9,152,479 shares as of September 30, 2022 and 9,081,773 shares as of June 30, 2022	(239,902)	(237,011)
Total stockholders’ equity	1,700,972	1,642,973
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$ 18,407,078	$ 17,401,165

XML

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2022	Jun. 30, 2022
ASSETS
Allowance for loan and lease losses	$ 155,472	$ 148,617
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)	69,151,152	68,859,722
Common stock, shares outstanding (in shares)	59,998,673	59,777,949
Treasury stock, at cost (in shares)	9,152,479	9,081,773

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CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
INTEREST AND DIVIDEND INCOME:
Loans, including fees	$ 208,338	$ 149,176
Securities borrowed and customer receivables	4,384	6,851
Investments	11,064	2,283
Total interest and dividend income	223,786	158,310
INTEREST EXPENSE:
Deposits	32,505	7,712
Advances from the Federal Home Loan Bank	5,163	1,016
Securities loaned	943	251
Other borrowings	4,700	2,689
Total interest expense	43,311	11,668
Net interest income	180,475	146,642
Provision for credit losses	8,750	4,000
Net interest income, after provision for credit losses	171,725	142,642
NON-INTEREST INCOME:
Broker-dealer fee income	9,178	6,462
Advisory fee income	6,959	5,304
Banking and service fees	6,514	6,680
Mortgage banking income	3,365	5,270
Prepayment penalty fee income	1,192	2,986
Total non-interest income	27,208	26,702
NON-INTEREST EXPENSE:
Salaries and related costs	46,996	40,737
Data processing	14,022	12,092
Depreciation and amortization	6,094	5,728
Advertising and promotional	6,370	3,372
Professional services	8,087	4,545
Occupancy and equipment	4,054	3,181
FDIC and regulatory fees	3,735	2,266
Broker-dealer clearing charges	2,829	4,005
General and administrative expense	23,900	8,505
Total non-interest expense	116,087	84,431
Income before taxes	82,846	84,913
INCOME TAXES	24,439	24,703
NET INCOME	58,407	60,210
COMPREHENSIVE INCOME	$ 55,570	$ 59,703
Basic earnings per common share (in dollars per share)	$ 0.98	$ 1.01
Diluted earnings per common share (in dollars per share)	$ 0.97	$ 0.99

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CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Statement of Comprehensive Income [Abstract]
NET INCOME	$ 58,407	$ 60,210
Net unrealized gain (loss) from available-for-sale securities, net of income tax expense (benefit) of $(1,215) and $(214) for the three months ended September 30, 2022 and 2021, respectively.	(2,837)	(507)
Other comprehensive income (loss)	(2,837)	(507)
Comprehensive income	$ 55,570	$ 59,703

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CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Statement of Comprehensive Income [Abstract]
Net unrealized gain (loss) from available-for-sale securities, tax expense (benefit)	$ (1,215)	$ (214)

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CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands	Total	Common Stock	Treasury Stock	Additional Paid-in Capital	Retained Earnings	Accumulated Other Comprehensive Income (Loss), Net of Income Tax
Stockholder's equity, beginning balance at Jun. 30, 2021	$ 1,400,936	$ 681	$ (222,530)	$ 432,550	$ 1,187,728	$ 2,507
Common stock, issued and treasury, beginning balance (in shares) at Jun. 30, 2021		68,069,321
Common stock, treasury, beginning balance (in shares) at Jun. 30, 2021			8,751,377
Common stock, outstanding, beginning balance (in shares) at Jun. 30, 2021		59,317,944
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	60,210				60,210
Other comprehensive income (loss)	(507)					(507)
Stock-based compensation expense and restricted stock unit vesting, issued (in shares)		301,296
Share-based compensation expense and restricted stock unit vesting, treasury stock (in shares)			(124,607)
Stock-based compensation expense and restricted stock unit vesting, outstanding (in shares)		176,689
Stock-based compensation activity	(2,018)	$ 3	$ (5,999)	3,978
Stockholder's equity, ending balance at Sep. 30, 2021	1,458,621	$ 684	$ (228,529)	436,528	1,247,938	2,000
Common stock, issued and treasury, ending balance (in shares) at Sep. 30, 2021		68,370,617
Common stock, treasury, ending balance (in shares) at Sep. 30, 2021			8,875,984
Common stock, outstanding, ending balance (in shares) at Sep. 30, 2021		59,494,633
Stockholder's equity, beginning balance at Jun. 30, 2022	$ 1,642,973	$ 689	$ (237,011)	453,784	1,428,444	(2,933)
Common stock, issued and treasury, beginning balance (in shares) at Jun. 30, 2022	68,859,722	68,859,722
Common stock, treasury, beginning balance (in shares) at Jun. 30, 2022	9,081,773		9,081,773
Common stock, outstanding, beginning balance (in shares) at Jun. 30, 2022	59,777,949	59,777,949
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	$ 58,407				58,407
Other comprehensive income (loss)	(2,837)					(2,837)
Stock-based compensation expense and restricted stock unit vesting, issued (in shares)		291,430
Share-based compensation expense and restricted stock unit vesting, treasury stock (in shares)			(70,706)
Stock-based compensation expense and restricted stock unit vesting, outstanding (in shares)		220,724
Stock-based compensation activity	2,429	$ 3	$ (2,891)	5,317
Stockholder's equity, ending balance at Sep. 30, 2022	$ 1,700,972	$ 692	$ (239,902)	$ 459,101	$ 1,486,851	$ (5,770)
Common stock, issued and treasury, ending balance (in shares) at Sep. 30, 2022	69,151,152	69,151,152
Common stock, treasury, ending balance (in shares) at Sep. 30, 2022	9,152,479		9,152,479
Common stock, outstanding, ending balance (in shares) at Sep. 30, 2022	59,998,673	59,998,673

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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 58,407	$ 60,210
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, amortization, and accretion	6,801	5,972
Stock-based compensation expense	5,320	3,981
Trading activity	1,683	42
Provision for credit losses	8,750	4,000
Deferred income taxes	(3,807)	1,453
Origination of loans held for sale	(70,073)	(209,967)
Unrealized and realized gains on loans held for sale	(2,433)	(4,107)
Proceeds from sale of loans held for sale	67,610	208,777
Amortization and change in fair value of mortgage servicing rights	(953)	1,185
Net changes in assets and liabilities which provide (use) cash:
Securities borrowed	251,358	161,806
Customer, broker-dealer and clearing receivables	61,015	(53,677)
Other assets	(6,347)	(112,925)
Securities loaned	(267,511)	(189,483)
Customer, broker-dealer and clearing payables	(65,484)	(25,385)
Accounts payable and other liabilities	26,485	18,949
Net cash provided by (used in) operating activities	70,821	(129,169)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of investment securities	0	(7,033)
Proceeds from sale and repayment of securities	1,029	128,506
Purchase of stock of regulatory agencies	(54,964)	(8,219)
Proceeds from redemption of stock of regulatory agencies	54,964	8,219
Origination of loans held for investment	(2,486,224)	(2,050,587)
Proceeds from sale of loans held for investment	13,965	12,100
Mortgage warehouse loans activity, net	103,812
Mortgage warehouse loans activity, net		41,692
Proceeds from sales of other real estate owned and repossessed assets	719	621
Acquisition of business activity, net of cash acquired	(5,009)	(54,597)
Purchases of loans and leases, net of discounts and premiums	(51)	(7,481)
Principal repayments on loans	1,229,390	1,620,886
Purchases of furniture, equipment, software and intangibles	(7,921)	(3,943)
Net cash used in investing activities	(1,150,290)	(403,220)
CASH FLOWS FROM FINANCING ACTIVITIES:
Net increase in deposits	1,230,209	931,645
Payments of the Federal Home Loan Bank term advances	(5,000)	(10,000)
Net repayment of Federal Home Loan Bank other advances	0	(186,000)
Net proceeds (repayments) of other borrowings	(19,500)	34,400
Tax payments related to settlement of restricted stock units	(2,891)	(5,999)
Net cash provided by financing activities	1,202,818	764,046
NET CHANGE IN CASH AND CASH EQUIVALENTS	123,349	231,657
CASH AND CASH EQUIVALENTS—Beginning of year	1,574,699	1,037,777
CASH AND CASH EQUIVALENTS—End of period	1,698,048	1,269,434
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Interest paid on deposits and borrowed funds	42,429	14,989
Income taxes paid	37,277	29,955
Transfers to other real estate and repossessed vehicles	5,522	140
Transfers from loans held for investment to loans held for sale	0	12,100
Transfers from loans held for sale to loans held for investment	$ 682	$ 376

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

3 Months Ended

Sep. 30, 2022

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 (the “Axos Nevada Holding”) collectively, the “Company”. Axos Bank and its wholly owned subsidiary constitute the Banking Business segment and Axos Nevada Holding wholly owns the companies constituting the Securities Business segment. All significant intercompany balances and transactions have been eliminated in consolidation.

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. Results for the three months ended September 30, 2022 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, 2022 included in our Annual Report on Form 10-K filed with the SEC for the fiscal year ended June 30, 2022 (“2022 Form 10-K”). A reclassification of certain components of non-interest income for the three months ended September 30, 2021 has been made to conform to the current period presentation. This reclassification had no effect on the Company’s total non-interest income, net income, financial position or cash flows. Additional reclassifications of certain amounts in the Condensed Consolidated Statement of Cash Flows for the three months ended September 30, 2021 have been made to conform to the current period presentation. These reclassifications had no effect on the Company’s results of operations or financial position.

Significant Accounting Policies

Our significant accounting policies are described in greater detail in Note 1—“Organizations and Summary of Significant Accounting Policies” contained in the 2022 Form 10-K.

New Accounting Standards

Accounting Standards Issued But Not Yet Adopted

For a discussion of new accounting standards issued but not yet adopted which are applicable to the Company see Note 1—“Organizations and Summary of Significant Accounting Policies” contained in the 2022 Form 10-K. For the fiscal year beginning July 1, 2022, there have been no new accounting standards issued but not yet adopted that are expected to be material to the Company.

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ACQUISITIONS

3 Months Ended

Sep. 30, 2022

Business Combination and Asset Acquisition [Abstract]

ACQUISITIONS

ACQUISITIONS

From time to time the Company completes acquisitions and related corporate activities to supplement the organic growth and development of the business.

On August 2, 2021 the Company’s subsidiary, Axos Clearing LLC, acquired certain assets and liabilities of E*TRADE Advisor Services (“EAS”), the registered investment advisor custody business of Morgan Stanley. This business was rebranded as Axos Advisor Services (“AAS”). AAS adds incremental fee income, a turnkey technology platform used by independent registered investment advisors for trading and custody services, and low cost deposits that can be used to generate fee income from other bank partners or to fund loan growth at Axos Bank. The purchase price of $54.8 million consisted entirely of cash consideration paid upon acquisition and working capital adjustments.

The Company incurred acquisition-related costs totaling $0.04 million in total, all of which were recognized in the year ended June 30, 2022.

The acquisition is accounted for as a business combination under the acquisition method of accounting. Accordingly, tangible and intangible assets acquired (and liabilities assumed) are recorded at their estimated fair values as of the date of acquisition. The preliminary allocation of the $54.6 million purchase price consisted of $14.4 million of fair value of tangible assets acquired (which included $7.8 million of a right-of-use lease asset), $11.3 million of liabilities assumed (which included $7.8 million of a lease liability), $27.1 million of identifiable intangible assets and $24.4 million of goodwill, all of which is expected to be deductible for tax purposes. In December 2021, the Company made a $0.2 million true-up payment based on working capital adjustments, which was recorded as an increase in the purchase price up to $54.8 million with no impact on goodwill or identifiable intangible assets. After the working capital true-up, the final acquisition fair value of tangible assets acquired was $14.2 million and the final acquisition fair value of liabilities acquired was $10.9 million. Goodwill was calculated as the excess of consideration exchanged over the fair value of identifiable net assets acquired. The goodwill includes synergies expected to result from combining the acquired assets and liabilities with existing operations, coupling its custody platform with the Company’s existing product offerings and leveraging customer relationships through registered investment advisors (“RIAs”). The following table summarizes the fair value and useful life of each intangible asset acquired as of the acquisition date:

(Dollars in thousands)	Fair Value		Useful Lives (Years)
Trade Name	$	290	0.16
Proprietary Technology	10,990		7
Customer Relationships	15,650		14
Non-Compete Agreements	130		1
Total	$	27,060

The following table presents the results of operations of AAS for the three months ended September 30, 2021 on an unaudited pro forma basis, as if the acquisition of the entity rebranded to AAS had been consummated on July 1, 2020. The unaudited pro forma financial information is provided for informational purposes only and is not necessarily indicative of what the Company’s results of operations would have been if the acquisition of EAS had occurred as of July 1, 2020, or the results of operations for any future periods. Additionally, the information presented does not reflect any synergies or other strategic benefits as a result of acquisition.

	Pro Forma
(Dollars in thousands)	For the Three Months Ended September 30, 2021
Non-interest income	$	8,942

It is not practical to disclose net income on a pro forma basis as the assets and liabilities acquired are a component of a business.

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FAIR VALUE

3 Months Ended

Sep. 30, 2022

Fair Value Disclosures [Abstract]

FAIR VALUE

FAIR VALUE

The Company’s financial assets and liabilities measured at fair value on a recurring basis at September 30, 2022 and June 30, 2022 are classified in their entirety based on the lowest level of input significant to the fair value measurement.

	September 30, 2022
(Dollars in thousands)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
ASSETS:
Securities—Trading: Municipal		$	75	$	—	$	75
Securities—Available-for-Sale:
Agency MBS1		23,763		—		23,763
Non-Agency MBS2		—		184,012		184,012
Municipal		2,995		—		2,995
Asset-backed securities and structured notes		46,864		—		46,864
Total—Securities—Available-for-Sale		$	73,622	$	184,012	$	257,634
Loans Held for Sale		$	9,463	$	—	$	9,463
Mortgage servicing rights		$	—	$	26,373	$	26,373
Other assets—Derivative instruments		$	—	$	897	$	897
LIABILITIES:
Other liabilities—Derivative instruments		$	—	$	362	$	362
	June 30, 2022
(Dollars in thousands)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
ASSETS:
Securities—Trading: Municipal		$	1,758	$	—	$	1,758
Securities—Available-for-Sale:
Agency MBS1		25,325		—		25,325
Non-Agency MBS2		—		186,814		186,814
Municipal		3,248		—		3,248
Asset-backed securities and structured notes		47,131		—		47,131
Total—Securities—Available-for-Sale		$	75,704	$	186,814	$	262,518
Loans Held for Sale		$	4,973	$	—	$	4,973
Mortgage servicing rights		$	—	$	25,213	$	25,213
Other assets—Derivative instruments		$	—	$	464	$	464
LIABILITIES:
Other liabilities—Derivative instruments		$	—	$	—	$	—

1Includes 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.

Additional information is presented below about assets measured at fair value on a recurring basis for which the Company has utilized Level 3 inputs to determine fair value:

	For the Three Months Ended
	September 30, 2022
(Dollars in thousands)	Securities – Available-for-Sale: Non-Agency RMBS		Mortgage 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 income	—		953		71		1,024
Included in other comprehensive income	(2,473)		—		—		(2,473)
Purchases, retentions, issues, sales and settlements:
Purchases/Retentions	—		207		—		207
Settlements	(329)		—		—		(329)
Closing balance	$	184,012	$	26,373	$	535	$	210,920
Change in unrealized gains or losses for the period included in earnings for assets held at the end of the reporting period	$	—	$	953	$	71	$	1,024

1 Earnings from mortgage servicing rights (“MSR”) were attributable to: Time and payoffs, representing a decrease in MSR 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 $0.4 million, and an increase in MSR value resulting from market-driven changes in interest rates of $1.4 million. Additions to mortgage servicing rights were retained upon sale of loans held for sale.

	For the Three Months Ended
	September 30, 2021
(Dollars in thousands)	Securities – Available-for-Sale: Non-Agency RMBS		Mortgage Servicing Rights1		Derivative Instruments, net		Total
Opening Balance	$	67,615	$	17,911	$	2,205	$	87,731
Total gains or losses for the period:
Included in earnings—Mortgage banking income	—		(1,185)		21		(1,164)
Included in other comprehensive income	(112)		—		—		(112)
Purchases, retentions, issues, sales and settlements:
Purchases/Retentions	—		1,712		—		1,712
Settlements	(7,652)		—		—		(7,652)
Closing balance	$	59,851	$	18,438	$	2,226	$	80,515
Change in unrealized gains or losses for the period included in earnings for assets held at the end of the reporting period	$	—	$	(1,185)	$	21	$	(1,164)

1 Earnings from mortgage servicing rights were attributable to: Time and payoffs, representing a decrease in MSR 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 $1.6 million, and an increase in MSR value resulting from market-driven changes in interest rates of $0.4 million. Additions to mortgage servicing rights were retained upon sale of loans held for sale.

The table below summarizes the quantitative information about level 3 fair value measurements as of the dates indicated:

	September 30, 2022
(Dollars in thousands)	Fair Value		Valuation Technique	Unobservable Input	Range (Weighted Average)
Securities – Non-agency MBS	$	184,012	Discounted Cash Flow	Projected Constant Prepayment Rate, Projected Constant Default Rate, Projected Loss Severity, Discount Rate over LIBOR	0.0 to 30.0% (21.4%) 0.0 to 15.9% (2.3%) 0.0 to 68.6% (26.6%) 2.7 to 8.8% (2.7%)
Mortgage Servicing Rights	$	26,373	Discounted Cash Flow	Projected Constant Prepayment Rate, Life (in years), Discount Rate	3.8 to 38.0% (9.3%) 0.9 to 13.0 (9.4) 9.5 to 11.0% (9.5%)
Derivative Instruments	$	535	Sales Comparison Approach	Projected Sales Profit of Underlying Loans	-3.1 to 1.2% (-1.2%)

	June 30, 2022
(Dollars in thousands)	Fair Value		Valuation Technique	Unobservable Input	Range (Weighted Average)
Securities – Non-agency MBS	$	186,814	Discounted Cash Flow	Projected Constant Prepayment Rate, Projected Constant Default Rate, Projected Loss Severity, Discount Rate over LIBOR	0.0 to 30.0% (21.4%) 0.0 to 7.9% (2.2%) 0.0 to 68.4% (26.7%) 2.7 to 9.3% (2.8%)
Mortgage Servicing Rights	$	25,213	Discounted Cash Flow	Projected Constant Prepayment Rate, Life (in years), Discount Rate	7.9 to 56.3% (11.0%) 1.2 to 9.9 (8.4) 9.5 to 11.5% (9.5%)
Derivative Instruments	$	464	Sales Comparison Approach	Projected Sales Profit of Underlying Loans	-3.1 to 0.8% (-1.2%)

The significant unobservable inputs used in the fair value measurement of the Company’s residential mortgage-backed securities are projected prepayment rates, probability of default, projected loss severity in the event of default and discount rate over LIBOR. 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.

The table below summarizes assets measured for impairment on a non-recurring basis:

	September 30, 2022
(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 foreclosed assets:
Single family real estate	$	—	$	—	$	4,534	$	4,534
Autos and RVs	$	—	$	—	$	768	$	768
Total	$	—	$	—	$	5,302	$	5,302
	June 30, 2022
(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 foreclosed assets:
Autos and RVs	—		—		798		798
Total	$	—	$	—	$	798	$	798

Non-recurring fair value measurements for other real estate owned and foreclosed assets represent charge-offs of $307 thousand for the three months ended September 30, 2022 and $12 thousand for the three months ended September 30, 2021.

The Company has elected the fair value option for Agency loans held for sale. These loans are intended for sale and fair value is the best indicator of the resolution of these loans. Interest income is recorded based on the contractual terms of the loan and in accordance with the Company’s policy on loans. None of these loans are 90 days or more past due nor on nonaccrual as of September 30, 2022 and June 30, 2022.

As of September 30, 2022 and June 30, 2022, the aggregate fair value of loans held for sale, carried at fair value, contractual balance (including accrued interest), and unrealized gain was as follows:

(Dollars in thousands)	September 30, 2022		June 30, 2022
Aggregate fair value	$	9,463	$	4,973
Contractual balance	9,348		4,881
Unrealized gain	$	115	$	92

Gains and losses from changes in fair value included in earnings for loans held for sale for the periods indicated below were:

	For the Three Months Ended
	September 30,
(Dollars in thousands)	2022		2021
Interest income	$	50	$	200
Change in fair value	91		43
Total	$	141	$	243

The following table presents quantitative information about level 3 fair value measurements for financial instruments measured at fair value on a non-recurring basis at the periods indicated:

	September 30, 2022
(Dollars in thousands)	Fair Value		Valuation Technique(s)	Unobservable Input	Range (Weighted Average) 1
Other real estate owned and foreclosed assets:
Single family real estate	$	4,534	Sales comparison approach	Adjustment for differences between the comparable sales	3.5 to 12.1% (4.1%)
Autos and RVs	$	768	Sales comparison approach	Adjustment for differences between the comparable sales	-13.7 to -0.5% (-3.4%)

	June 30, 2022
(Dollars in thousands)	Fair Value		Valuation Technique(s)	Unobservable Input	Range (Weighted Average) 1
Other real estate owned and foreclosed assets:
Autos and RVs	$	798	Sales comparison approach	Adjustment for differences between the comparable sales	-17.2 to 4.6% (-7.5%)

1 For other real estate owned and foreclosed assets 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 property being valued having limited comparable sales with similar characteristics at the time the current appraisal is conducted.

Fair Value of Financial Instruments

Carrying amounts and estimated fair values of financial instruments at September 30, 2022 and June 30, 2022 were:

	September 30, 2022
			Fair Value
(Dollars in thousands)	Carrying Amount		Level 1		Level 2		Level 3		Total Fair Value
Financial assets:
Cash and cash equivalents	$	1,698,048	$	1,698,048	$	—	$	—	$	1,698,048
Securities — trading	75		—		75		—		75
Securities — available-for-sale	257,634		—		73,622		184,012		257,634
Loans held for sale, at fair value	9,463		—		9,463		—		9,463
Loans held for sale, at lower of cost or fair value	10,476		—		—		10,489		10,489
Loans held for investment—net	15,211,573		—		—		14,893,655		14,893,655
Securities borrowed	87,622		—		—		86,728		86,728
Customer, broker-dealer and clearing receivables	410,842		—		—		411,171		411,171
Mortgage servicing rights	26,373		—		—		26,373		26,373
Financial liabilities:
Total deposits	15,176,631		—		13,373,113		—		13,373,113
Advances from the Federal Home Loan Bank	112,500		—		105,387		—		105,387
Borrowings, subordinated notes and debentures	425,818		—		385,257		—		385,257
Securities loaned	206,889		—		—		206,910		206,910
Customer, broker-dealer and clearing payables	500,584		—		—		500,584		500,584

	June 30, 2022
			Fair Value
(Dollars in thousands)	Carrying Amount		Level 1		Level 2		Level 3		Total Fair Value
Financial assets:
Cash and cash equivalents	$	1,574,699	$	1,574,699	$	—	$	—	$	1,574,699
Securities — trading	1,758		—		1,758		—		1,758
Securities — available-for-sale	262,518		—		75,704		186,814		262,518
Loans held for sale, at fair value	4,973		—		4,973		—		4,973
Loans held for sale, at lower of cost or fair value	10,938		—		—		10,985		10,985
Loans held for investment—net	14,091,061		—		—		14,015,157		14,015,157
Securities borrowed	338,980		—		—		329,963		329,963
Customer, broker-dealer and clearing receivables	417,417		—		—		414,383		414,383
Mortgage servicing rights	25,213		—		—		25,213		25,213
Financial liabilities:
Total deposits	13,946,422		—		12,812,512		—		12,812,512
Advances from the Federal Home Loan Bank	117,500		—		117,500		—		117,500
Borrowings, subordinated notes and debentures	445,244		—		416,947		—		416,947
Securities loaned	474,400		—		—		473,831		473,831
Customer, broker-dealer and clearing payables	511,654		—		—		471,859		471,859

Carrying amount is the estimated fair value for cash and cash equivalents, 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 and loans held for sale can be found in Note 3 – “Fair Value” of the 2022 Form 10-K. The carrying amount of stock of regulatory agencies approximates the estimated fair value of this investment. The fair value of off-balance sheet items is not material.

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SECURITIES

3 Months Ended

Sep. 30, 2022

Investments, Debt and Equity Securities [Abstract]

SECURITIES

SECURITIES

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

	September 30, 2022
	Trading		Available-for-sale
(Dollars in thousands)	Fair Value		Amortized Cost		Unrealized Gains		Unrealized Losses		Fair Value
Mortgage-backed securities (MBS):
U.S. agencies1	$	—	$	27,187	$	1	$	(3,425)	$	23,763
Non-agency2	—		187,287		1,300		(4,575)		184,012
Total mortgage-backed securities	—		214,474		1,301		(8,000)		207,775
Non-MBS:
Municipal	75		3,560		—		(565)		2,995
Asset-backed securities and structured notes	—		47,000		—		(136)		46,864
Total Non-MBS	75		50,560		—		(701)		49,859
Total debt securities	$	75	$	265,034	$	1,301	$	(8,701)	$	257,634
	June 30, 2022
	Trading		Available-for-sale
(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:
Municipal	1,758		3,529		—		(281)		3,248
Asset-backed securities and structured notes	—		47,000		131		—		47,131
Total Non-MBS	1,758		50,529		131		(281)		50,379
Total debt securities	$	1,758	$	265,867	$	1,972	$	(5,321)	$	262,518

1Includes securities guaranteed by Ginnie Mae, a U.S. government agency, and the government sponsored enterprises Fannie Mae and Freddie Mac.

2Private 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 months ended September 30, 2022 and September 30, 2021. No allowance for credit losses for available-for-sale debt securities was recorded at September 30, 2022 and June 30, 2022 based on an analysis of: (1) the credit characteristics of the securities, including the forecasted cash flows, credit ratings, credit enhancement, and any external government backing, 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 Company’s non-agency MBS available-for-sale portfolio with a total fair value of $184,012 at September 30, 2022 consists of 17 different issues of super senior securities.

The face amounts of debt securities available-for-sale pledged to secure borrowings at September 30, 2022 and June 30, 2022 were $1.1 million and $1.2 million, respectively.

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

	September 30, 2022
	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	$	15,070	$	(1,882)	$	8,493	$	(1,543)	$	23,563	$	(3,425)
Non-agency	127,685		(4,095)		4,516		(480)		132,201		(4,575)
Total MBS	142,755		(5,977)		13,009		(2,023)		155,764		(8,000)
Non-MBS:
Municipal debt	2,995		(565)		—		—		2,995		(565)
Asset-backed securities and structured notes	46,864		(136)		—		—		46,864		(136)
Total Non-MBS	49,859		(701)		—		—		49,859		(701)
Total debt securities	$	192,614	$	(6,678)	$	13,009	$	(2,023)	$	205,623	$	(8,701)
	June 30, 2022
	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	$	16,446	$	(1,338)	$	8,097	$	(1,068)	$	24,543	$	(2,406)
Non-agency	92,796		(2,204)		4,751		(430)		97,547		(2,634)
Total MBS	109,242		(3,542)		12,848		(1,498)		122,090		(5,040)
Non-MBS:
Municipal debt	3,248		(281)		—		—		3,248		(281)
Asset-backed securities and structured notes	—		—		—		—		—		—
Total Non-MBS	3,248		(281)		—		—		3,248		(281)
Total debt securities	$	112,490	$	(3,823)	$	12,848	$	(1,498)	$	125,338	$	(5,321)

On September 30, 2022, there were sixteen securities in a continuous loss position for a period of more than 12 months, and thirty-seven securities in a continuous loss position for a period of less than 12 months. At June 30, 2022, there were fourteen securities in a continuous loss position for a period of more than 12 months, and twenty-five securities in a continuous loss position for a period of less than 12 months.

At September 30, 2022, one non-agency RMBS with a total carrying amount of $1.9 million was determined to have cumulative credit losses of $0.8 million of which none was recognized in earnings during the three months ended September 30, 2022.

During the three months ended September 30, 2022 and September 30, 2021, the Company sold no available-for-sale securities.

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

(Dollars in thousands)	September 30, 2022		June 30, 2022
Available-for-sale debt securities—net unrealized gains (losses)	$	(7,400)	$	(3,349)
Available-for-sale debt securities—non-credit related losses	(845)		(845)
Subtotal	(8,245)		(4,194)
Tax benefit (expense)	2,475		1,261
Net unrealized gain (loss) on investment securities in accumulated other comprehensive income (loss)	$	(5,770)	$	(2,933)

The following table sets forth the expected maturity distribution of our mortgage-backed securities and the contractual maturity distribution of our Non-RMBS securities and the weighted-average yield for each range of maturities:

	At September 30, 2022
	Total Amount				Due Within One Year				Due After One but within Five Years				Due After Five but within Ten Years				Due After Ten Years
(Dollars in thousands)	Amount		Yield1		Amount		Yield1		Amount		Yield1		Amount		Yield1		Amount		Yield1
Available-for-sale
Mortgage-backed securities:
Agency2	$	27,187	1.79	%	$	5,018	1.83	%	$	13,175	1.79	%	$	7,063	1.76	%	$	1,931	1.86	%
Non-Agency3	187,287		5.41	%	1,285		16.89	%	183,937		5.30	%	1,726		8.90	%	339		4.63	%
Total Mortgage-Backed Securities	$	214,474	4.95	%	$	6,303	4.90	%	$	197,112	5.07	%	$	8,789	3.17	%	$	2,270	2.28	%
Non-RMBS
Municipal	3,560		3.57	%	—		—	%	—		—	%	—		—	%	3,560		3.57	%
Asset-backed securities and structured notes	47,000		8.43	%	35,155		8.43	%	11,845		8.43	%	—		—	%	—		—	%
Total Non-RMBS	$	50,560	8.09	%	$	35,155	8.43	%	$	11,845	8.43	%	$	—	—	%	$	3,560	3.57	%
Available-for-sale—Amortized Cost	$	265,034	5.55	%	$	41,458	7.89	%	$	208,957	5.26	%	$	8,789	3.17	%	$	5,830	3.07	%
Available-for-sale—Fair Value	$	257,634	5.57	%	$	41,010	7.89	%	$	203,814	5.26	%	$	7,807	3.17	%	$	5,003	3.07	%
Total available-for-sale securities	$	257,634	5.57	%	$	41,010	7.89	%	$	203,814	5.26	%	$	7,807	3.17	%	$	5,003	3.07	%

1 Weighted-average yield is based on amortized cost of the securities. Residential mortgage-backed security yields and maturities include impact of expected prepayments and other timing factors such as interest rate forward curve.

2 Includes securities guaranteed by Ginnie Mae, a U.S. government agency, and the government sponsored enterprises Fannie Mae and Freddie Mac.

3 Private sponsors of securities collateralized primarily by pools of 1-4 family residential first mo prime, Alt-A or pay-option ARM mortgages.

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LOANS & ALLOWANCE FOR CREDIT LOSSES

3 Months Ended

Sep. 30, 2022

Receivables [Abstract]

LOANS & ALLOWANCE FOR CREDIT LOSSES

LOANS & ALLOWANCE FOR CREDIT LOSSES

The composition of the loan portfolio was:

(Dollars in thousands)	September 30, 2022		June 30, 2022
Single Family - Mortgage & Warehouse	$	4,009,809	$	3,988,462
Multifamily and Commercial Mortgage	2,964,982		2,877,680
Commercial Real Estate	5,523,895		4,781,044
Commercial & Industrial - Non-RE	2,244,342		2,028,128
Auto & Consumer	631,344		567,228
Other	9,954		11,134
Total gross loans and leases	15,384,326		14,253,676
Allowance for credit losses - loans	(155,472)		(148,617)
Unaccreted premiums (discounts) and loan and lease fees	(17,281)		(13,998)
Total net loans and leases	$	15,211,573	$	14,091,061

Activity in the allowance for credit losses by portfolio classes for the periods was:

	For the Three Months Ended September 30, 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	(1,642)		(6)		4,437		3,557		2,405		(1)		8,750
Charge-offs	(4)		—		—		—		(2,362)		—		(2,366)
Recoveries	15		—		—		18		438		—		471
Balance at September 30, 2022	$	18,039	$	14,649	$	73,776	$	34,383	$	14,595	$	30	$	155,472

	For the Three Months Ended September 30, 2021
(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, 2021	$	26,604	$	13,146	$	57,928	$	28,460	$	6,519	$	301	$	132,958
Provision (benefit) for credit losses - loans	(1,351)		36		7,295		(5,646)		3,626		40		4,000
Charge-offs	—		—		—		(322)		(394)		—		(716)
Recoveries	76		177		—		27		256		—		536
Balance at September 30, 2021	$	25,329	$	13,359	$	65,223	$	22,519	$	10,007	$	341	$	136,778

Credit Quality Disclosures. Nonaccrual loans consisted of the following as of the dates indicated:

(Dollars in thousands)	As of September 30, 2022
Single Family - Mortgage & Warehouse	$	65,687
Multifamily and Commercial Mortgage	35,837
Commercial Real Estate	14,852
Commercial & Industrial - Non-RE	2,989
Auto & Consumer	990
Other	126
Total nonaccrual loans	$	120,481
Nonaccrual loans to total loans	0.78		%

(Dollars in thousands)	As of June 30, 2022
Single Family - Mortgage & Warehouse	$	66,424
Multifamily and Commercial Mortgage	33,410
Commercial Real Estate	14,852
Commercial & Industrial - Non-RE	2,989
Auto & Consumer	439
Other	80
Total nonaccrual loans	$	118,194
Nonaccrual loans to total loans	0.83		%

No interest income was recognized on nonaccrual loans in the three months ended September 30, 2022 or September 30, 2021 and there were no nonaccrual loans without an allowance for credit losses as of September 30, 2022 and June 30, 2022.

Approximately 1.13% of our nonaccrual loans at September 30, 2022 were considered troubled debt restructurings (“TDRs”), compared to 0.55% at June 30, 2022. Borrowers that make timely payments after TDRs are considered non-performing for at least six months. Generally, after six months of timely payments, those TDRs are reclassified from the nonaccrual loan category to the performing loan category and any previously deferred interest income is recognized. Approximately 54.52% of the Bank’s nonaccrual loans are single family first mortgages.

The outstanding unpaid balance of loans that are either performing or nonaccrual by portfolio class was:

	September 30, 2022
(Dollars in thousands)	Single Family-Mortgage & Warehouse		Multifamily and Commercial Mortgage		Commercial Real Estate		Commercial & Industrial - Non-RE		Auto & Consumer		Other		Total
Performing	$	3,944,122	$	2,929,145	$	5,509,043	$	2,241,353	$	630,354	$	9,828	$	15,263,845
Nonaccrual	65,687		35,837		14,852		2,989		990		126		120,481
Total	$	4,009,809	$	2,964,982	$	5,523,895	$	2,244,342	$	631,344	$	9,954	$	15,384,326

	June 30, 2022
(Dollars in thousands)	Single Family-Mortgage & Warehouse		Multifamily and Commercial Mortgage		Commercial Real Estate		Commercial & Industrial - Non-RE		Auto & Consumer		Other		Total
Performing	$	3,922,038	$	2,844,270	$	4,766,192	$	2,025,139	$	566,789	$	11,054	$	14,135,482
Nonaccrual	66,424		33,410		14,852		2,989		439		80		118,194
Total	$	3,988,462	$	2,877,680	$	4,781,044	$	2,028,128	$	567,228	$	11,134	$	14,253,676

From time to time the Company modifies loan terms temporarily for borrowers who are experiencing financial stress. These loans are performing and accruing and generally return to the original loan terms after the modification term expires. The Company had no TDRs classified as performing loans at September 30, 2022 or June 30, 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, less cost to acquire and sell, of any underlying collateral 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 amortized cost basis of the Company’s loans by year of origination and credit quality indicator are:

	September 30, 2022
	Loans Held for Investment Origination Year												Revolving Loans		Total
(Dollars in thousands)	2023		2022		2021		2020		2019		Prior
Single Family-Mortgage & Warehouse
Pass	$	309,401	$	1,427,758	$	579,544	$	380,330	$	277,775	$	767,417	$	168,798	$	3,911,023
Special Mention	—		—		—		4,971		2,165		18,091		7,532		32,759
Substandard	—		3,201		3,171		5,017		18,700		35,518		420		66,027
Doubtful	—		—		—		—		—		—		—		—
Total	309,401		1,430,959		582,715		390,318		298,640		821,026		176,750		4,009,809
Multifamily and Commercial Mortgage
Pass	187,856		1,004,942		541,338		403,340		247,670		483,365		—		2,868,511
Special Mention	—		9,706		3,980		532		3,269		—		—		17,487
Substandard	—		3,145		5,759		32,935		6,832		30,313		—		78,984
Doubtful	—		—		—		—		—		—		—		—
Total	187,856		1,017,793		551,077		436,807		257,771		513,678		—		2,964,982
Commercial Real Estate
Pass	509,209		2,613,562		953,785		312,381		182,800		28,759		760,859		5,361,355
Special Mention	—		—		55,820		12,138		1,000		15,000		—		83,958
Substandard	—		—		38,290		—		15,487		23,507		1,298		78,582
Doubtful	—		—		—		—		—		—		—		—
Total	509,209		2,613,562		1,047,895		324,519		199,287		67,266		762,157		5,523,895
Commercial & Industrial - Non-RE
Pass	63,185		402,229		35,057		19,008		10,858		6,520		1,671,859		2,208,716
Special Mention	—		—		—		—		—		—		—		—
Substandard	—		2,988		—		8,500		—		—		24,138		35,626
Doubtful	—		—		—		—		—		—		—		—
Total	63,185		405,217		35,057		27,508		10,858		6,520		1,695,997		2,244,342
Auto & Consumer
Pass	115,451		328,900		96,119		37,417		31,545		20,039		—		629,471
Special Mention	—		328		218		44		16		38		—		644
Substandard	—		509		291		154		231		44		—		1,229
Doubtful	—		—		—		—		—		—		—		—
Total	115,451		329,737		96,628		37,615		31,792		20,121		—		631,344
Other
Pass	698		2,000		3,310		—		—		1,525		—		7,533
Special Mention	—		—		2,295		—		—		—		—		2,295
Substandard	—		—		—		—		—		126		—		126
Doubtful	—		—		—		—		—		—		—		—
Total	698		2,000		5,605		—		—		1,651		—		9,954
Total
Pass	1,185,800		5,779,391		2,209,153		1,152,476		750,648		1,307,625		2,601,516		14,986,609
Special Mention	—		10,034		62,313		17,685		6,450		33,129		7,532		137,143
Substandard	—		9,843		47,511		46,606		41,250		89,508		25,856		260,574
Doubtful	—		—		—		—		—		—		—		—
Total	$1,185,800		$5,799,268		$2,318,977		$1,216,767		$798,348		$1,430,262		$2,634,904		$15,384,326
As a % of total gross loans	7.71%		37.70%		15.07%		7.91%		5.19%		9.30%		17.13%		100.0%

	June 30, 2022
	Loans Held for Investment Origination Year												Revolving Loans		Total
(Dollars in thousands)	2022		2021		2020		2019		2018		Prior
Single Family-Mortgage & Warehouse
Pass	$	1,484,027	$	600,054	$	402,712	$	303,999	$	279,248	$	548,703	$	241,925	$	3,860,668
Special Mention	—		—		4,790		2,505		4,125		10,971		38,637		61,028
Substandard	—		2,288		3,928		18,407		5,955		36,188		—		66,766
Doubtful	—		—		—		—		—		—		—		—
Total	1,484,027		602,342		411,430		324,911		289,328		595,862		280,562		3,988,462
Multifamily and Commercial Mortgage
Pass	999,819		569,486		429,247		259,161		219,548		316,013		—		2,793,274
Special Mention	1,200		—		534		539		—		968		—		3,241
Substandard	—		5,772		34,343		9,613		7,308		24,129		—		81,165
Doubtful	—		—		—		—		—		—		—		—
Total	1,001,019		575,258		464,124		269,313		226,856		341,110		—		2,877,680
Commercial Real Estate
Pass	2,482,366		990,887		358,422		186,800		28,758		—		602,412		4,649,645
Special Mention	—		32,351		12,138		16,487		15,000		—		—		75,976
Substandard	—		—		12,575		18,043		23,507		—		1,298		55,423
Doubtful	—		—		—		—		—		—		—		—
Total	2,482,366		1,023,238		383,135		221,330		67,265		—		603,710		4,781,044
Commercial & Industrial - Non-RE
Pass	435,228		66,226		25,629		61,932		9,268		—		1,388,435		1,986,718
Special Mention	13		—		—		186		710		—		—		909
Substandard	2,988		28,359		9,154		—		—		—		—		40,501
Doubtful	—		—		—		—		—		—		—		—
Total	438,229		94,585		34,783		62,118		9,978		—		1,388,435		2,028,128
Auto & Consumer
Pass	352,468		107,882		43,377		37,008		16,147		8,891		—		565,773
Special Mention	204		188		24		110		—		1		—		527
Substandard	157		311		224		205		25		6		—		928
Doubtful	—		—		—		—		—		—		—		—
Total	352,829		108,381		43,625		37,323		16,172		8,898		—		567,228
Other
Pass	3,057		6,185		—		—		1,091		721		—		11,054
Special Mention	—		—		—		—		—		—		—		—
Substandard	—		—		46		—		—		34		—		80
Doubtful	—		—		—		—		—		—		—		—
Total	3,057		6,185		46		—		1,091		755		—		11,134
Total
Pass	5,756,965		2,340,720		1,259,387		848,900		554,060		874,328		2,232,772		13,867,132
Special Mention	1,417		32,539		17,486		19,827		19,835		11,940		38,637		141,681
Substandard	3,145		36,730		60,270		46,268		36,795		60,357		1,298		244,863
Doubtful	—		—		—		—		—		—		—		—
Total	$	5,761,527	$	2,409,989	$	1,337,143	$	914,995	$	610,690	$	946,625	$	2,272,707	$	14,253,676
As a % of total gross loans	40.42%		16.91%		9.38%		6.42%		4.28%		6.64%		15.95%		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 outstanding unpaid balance of loans past due 30 days or more by portfolio class are:

	September 30, 2022
(Dollars in thousands)	30-59 Days Past Due			60-89 Days Past Due			90+ Days Past Due			Total
Single Family-Mortgage & Warehouse	$	13,021		$	5,494		$	57,883		$	76,398
Multifamily and Commercial Mortgage	5,909			358			30,001			36,268
Commercial Real Estate	9,655			—			14,852			24,507
Commercial & Industrial - Non-RE	—			—			—			—
Auto & Consumer	4,174			945			495			5,614
Other	1,162			—			126			1,288
Total	$	33,921		$	6,797		$	103,357		$	144,075
As a % of total gross loans	0.22		%	0.05		%	0.67		%	0.94		%

	June 30, 2022
(Dollars in thousands)	30-59 Days Past Due			60-89 Days Past Due			90+ Days Past Due			Total
Single Family-Mortgage & Warehouse	$	5,167		$	1,518		$	63,286		$	69,971
Multifamily and Commercial Mortgage	9,455			2,115			26,556			38,126
Commercial Real Estate	—			14,852			—			14,852
Commercial & Industrial - Non-RE	—			—			—			—
Auto & Consumer	4,865			1,009			466			6,340
Other	413			—			193			606
Total	$	19,900		$	19,494		$	90,501		$	129,895
As a % of total gross loans	0.14		%	0.14		%	0.63		%	0.91		%

Loans reaching 90+ days past due are placed on non-accrual as required under Company policy. No loans 90+ days past due were still accruing interest as of September 30, 2022 and June 30, 2022.

Loans in process of foreclosure were $20.4 million and $20.7 million as of September 30, 2022 and June 30, 2022, respectively.

Unfunded Loan Commitment Reserves

Unfunded loan commitment reserves are included in “Accounts payable and other liabilities” in the unaudited Condensed Consolidated Balance Sheets. Provisions for the unfunded loan commitments are included in the unaudited Condensed Consolidated Statements of Income in “General and administrative expenses”.

The following tables present a summary of the activity in the unfunded loan commitment reserves for the periods indicated:

	Three Months Ended September 30,
(Dollars in thousands)	2022		2021
BALANCE—beginning July 1	$	10,973	$	5,723
Provision	—		2,000
BALANCE—end September 30	$	10,973	$	7,723

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EQUITY AND STOCK-BASED COMPENSATION

3 Months Ended

Sep. 30, 2022

Share-Based Payment Arrangement [Abstract]

EQUITY AND STOCK-BASED COMPENSATION

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 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 common stock. 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” contained in the 2022 Form 10-K.

At September 30, 2022, 1,614,701 shares of common stock remained available for issuance pursuant to grant awards under the 2014 Plan and unrecognized compensation expense related to non-vested awards aggregated to $47.6 million and is expected to be recognized in future periods as follows:

(Dollars in thousands)	Stock Award Compensation Expense
For the fiscal year remainder:
Remainder of fiscal year 2023	$	18,487
2024	17,408
2025	9,372
2026	1,913
2027	400
Total	$	47,580

The status and changes in restricted stock units for the period indicated:

	Restricted Stock Units	Weighted-Average Grant-Date Fair Value
Non-vested balance at June 30, 2022	1,350,763	$	41.16
Granted	400,339	38.99
Vested	(291,430)	31.88
Forfeited	(19,210)	41.62
Non-vested balance at September 30, 2022	1,440,462	$	42.43

The total fair value of shares vested for the three months ended September 30, 2022 was $12.0 million. The weighted-average remaining time period until vesting for restricted stock units as of September 30, 2022 was 1.5 years.

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EARNINGS PER COMMON SHARE

3 Months Ended

Sep. 30, 2022

Earnings Per Share [Abstract]

EARNINGS PER COMMON SHARE

EARNINGS PER COMMON SHARE

The following table presents the calculation of basic and diluted EPS:

	Three Months Ended
	September 30,
(Dollars in thousands, except per share data)	2022		2021
Earnings Per Common Share
Net income attributable to common stockholders	$	58,407	$	60,210
Average common shares issued and outstanding	59,854,584		59,390,846
Earnings per common share	$	0.98	$	1.01
Diluted Earnings Per Common Share
Net income attributable to common stockholders	$	58,407	$	60,210
Average common shares issued and outstanding	59,854,584		59,390,846
Dilutive effect of average unvested RSUs	631,810		1,253,442
Total dilutive common shares outstanding	60,486,394		60,644,288
Diluted earnings per common share	$	0.97	$	0.99

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COMMITMENTS AND CONTINGENCIES

3 Months Ended

Sep. 30, 2022

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 as of September 30, 2022 in the corresponding fiscal years:

(Dollars in thousands)
Remainder of fiscal year 2023	$	8,151
2024	10,976
2025	11,143
2026	10,811
2027	10,870
Thereafter	29,177
Total lease payments	81,128
Less: amount representing interest	(8,074)
Total Lease Liability	$	73,054

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 September 30, 2022, the Company had commitments to originate $192.1 million in fixed rate loans and $3,181.9 million in variable rate loans, totaling an aggregate principal balance of $3,374.0 million. At September 30, 2022, the Company’s fixed rate commitments to originate had a weighted-average rate of 6.70%. At September 30, 2022, the Company also had commitments to sell $12.6 million in fixed rate loans and no variable rate loans, totaling an aggregate principal balance of $12.6 million.

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’s 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. On October 15, 2015, the Company, its Chief Executive Officer and its Chief Financial Officer were named defendants in a putative class action lawsuit, Golden v. BofI Holding, Inc., et al, and brought in United States District Court for the Southern District of California (the “Golden Case”). On November 3, 2015, the Company, its Chief Executive Officer and its Chief Financial Officer were named defendants in a second putative class action lawsuit, Hazan v. BofI Holding, Inc., et al, and also brought in the United States District Court for the Southern District of California (the “Hazan Case”). On February 1, 2016, the Golden Case and the Hazan Case were consolidated as In re BofI Holding, Inc. Securities Litigation, Case #: 3:15-cv-02324-GPC-KSC (the “HMEPS Class Action”), and the Houston Municipal Employees Pension System was appointed lead plaintiff. The plaintiffs allege that the Company and other named defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder, by failing to disclose wrongful conduct that was alleged in a complaint filed in connection with a wrongful termination of employment lawsuit filed on October 13, 2015 (the “Employment Matter”) and that as a result the Company’s statements regarding its internal controls, as well as portions of its financial statements, were false and misleading. On April 13, 2022, the parties executed a Stipulation and Agreement of Settlement. The Stipulation and Agreement of Settlement was submitted to the District Court for approval on April 15, 2022. On June 8, 2022, the court granted preliminary approval of the settlement and scheduled a hearing with respect to final approval of the settlement for October 7, 2022. On October 14, 2022, the District Court entered an order granting final approval of such settlement. The settlement was reached because the parties were able to negotiate terms within available insurance coverage and without attribution of wrongdoing to Axos, its management or its directors.

On April 3, 2017, the Company, its Chief Executive Officer and its Chief Financial Officer were named defendants in a putative class action lawsuit, Mandalevy v. BofI Holding, Inc., et al, and brought in United States District Court for the Southern District of California (the “Mandalevy Case”). The Mandalevy Case seeks monetary damages and other relief on behalf of a putative class that has not been certified by the Court. The complaint in the Mandalevy Case (the “Mandalevy Complaint”) alleges a class period that differs from that alleged in the First Class Action, and that the Company and other named defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder, by failing to disclose wrongful conduct that was alleged in a March 2017 media article. The Mandalevy Case has not been consolidated into the First Class Action. On December 7, 2018, the Court entered a final order granting the defendants’ motion and dismissing the Mandalevy Case with prejudice. Subsequently, the plaintiff filed a notice of appeal and the Court took the matter under advisement. On November 3, 2020, the Court issued a ruling affirming in part and reversing in part the District Court’s Order dismissing the Class Action Second Amended Complaint. The defendants filed a petition for rehearing en banc on November 17, 2020, which petition was denied on December 16, 2020. The defendants filed a motion to dismiss the remanded complaint on February 19, 2021. On January 31, 2022, a Stipulation of Settlement was submitted to the District Court for approval. On May 17, 2022, the court granted preliminary approval of the settlement and scheduled a hearing with respect to final approval for September 23, 2022. On September 26, 2022, the District Court entered an order granting final approval of such settlement. The settlement was reached because the parties were able to negotiate terms within available insurance coverage and without attribution of wrongdoing to Axos, its management or its directors.

In addition to the First Class Action and the Mandalevy Case, two separate shareholder derivative actions were filed in December, 2015, purportedly on behalf of the Company. The first derivative action, Calcaterra v. Garrabrants, et al, was filed in the United States District Court for the Southern District of California on December 3, 2015. The second derivative action, Dow v. Micheletti, et al, was filed in the San Diego County Superior Court on December 16, 2015. A third derivative action, DeYoung v. Garrabrants, et al, was filed in the United States District Court for the Southern District of California on January 22, 2016, a fourth derivative action, Yong v. Garrabrants, et al, was filed in the United States District Court for the Southern District of California on January 29, 2016, a fifth derivative action, Laborers Pension Trust Fund of Northern Nevada v. Allrich et al, was filed in the United States District Court for the Southern District of California on February 2, 2016, and a sixth derivative action, Garner v. Garrabrants, et al, was filed in the San Diego County Superior Court on August 10, 2017. Each of these six derivative actions names the Company as a nominal defendant, and certain of its officers and directors as defendants. Each complaint sets forth allegations of breaches of fiduciary duties, gross mismanagement, abuse of control, and unjust enrichment against the defendant officers and directors. The plaintiffs in these derivative actions seek damages in unspecified amounts on the Company’s behalf from the officer and director defendants, certain corporate governance actions, and an award of their costs and attorney’s fees.

The United States District Court for the Southern District of California ordered the six above-referenced derivative actions pending before it to be consolidated and appointed lead counsel in the consolidated action. On June 7, 2018, the Court entered an order granting defendant’s motion for judgment on the pleadings, but giving the plaintiffs limited leave to amend by June 28, 2018. The plaintiffs failed to file an amended complaint, and instead plaintiffs filed on June 28, 2018 a motion to stay the case pending resolution of the securities class action and Employment Matter. On August 10, 2018, defendants filed an opposition to plaintiffs’ motion. On September 11, 2018, the plaintiffs filed a second amended complaint. On October 16, 2018, defendants filed a motion to dismiss the second amended complaint. On October 16, 2018, defendants filed a motion to dismiss

the second amended complaint. The Court dismissed the second amended complaint with prejudice on May 23, 2019. Subsequently, the plaintiff filed a notice of appeal and opening brief and the Company filed its answering brief. Oral argument was held September 2, 2020. On February 25, 2021, the Ninth Circuit issued a memorandum decision affirming the dismissal of the Calcaterra derivative action. However, the Ninth Circuit reversed the district court’s order denying a stay of the action and remanded to the district court to reconsider whether it should grant the plaintiff leave to amend. The Ninth Circuit issued its mandate to the district court on April 9, 2021, and the plaintiff has opted for a stay on remand rather than amending the complaint. The two derivative actions pending before the San Diego County Superior Court have been consolidated and have been stayed by agreement of the parties.

The Company and the other named defendants dispute, and intend to vigorously defend against, the allegations raised in the consolidated action and the state court derivative actions. In view of the inherent difficulty of predicting the outcome of each legal action, particularly since claimants seek substantial or indeterminate damages, it is not possible to reasonably predict or estimate the eventual loss or range of loss, if any, related to each legal action, unless otherwise disclosed above.

On October 26, 2022, a jury verdict was reached in the case of MUFG Union Bank, N.A. v. Axos Bank, et al, resulting in an award to Union Bank. The Company continues to believe that the evidence supports the defendants’ understanding of the facts and that meritorious defenses exist to substantially all claims made by Union Bank. In addition, the Company believes that there exists substantial grounds for post-verdict relief and appeal. The Company recorded a $16 million accrued expense in accounts payable and other liabilities on the condensed consolidated balance sheets and in general and administrative expense on the condensed consolidated statements of income as of and for the three months ended September 30, 2022, respectively.

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SEGMENT REPORTING AND REVENUE INFORMATION

3 Months Ended

Sep. 30, 2022

Segment Reporting [Abstract]

SEGMENT REPORTING AND REVENUE INFORMATION

SEGMENT REPORTING AND REVENUE INFORMATION

Segment Information. 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 and income taxes 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.

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

	Three Months Ended September 30, 2022
(Dollars in thousands)	Banking Business		Securities Business		Corporate/Eliminations		Axos Consolidated
Net interest income	$	179,730	$	4,275	$	(3,530)	$	180,475
Provision for credit losses	8,750		—		—		8,750
Non-interest income	10,712		29,165		(12,669)		27,208
Non-interest expense	100,796		24,515		(9,224)		116,087
Income before taxes	$	80,896	$	8,925	$	(6,975)	$	82,846

	Three Months Ended September 30, 2021
(Dollars in thousands)	Banking Business		Securities Business		Corporate/Eliminations		Axos Consolidated
Net interest income	$	142,241	$	6,176	$	(1,775)	$	146,642
Provision for credit losses	4,000		—		—		4,000
Non-interest income	14,828		13,106		(1,232)		26,702
Non-interest expense	62,725		19,273		2,433		84,431
Income before taxes	$	90,344	$	9	$	(5,440)	$	84,913

	As of September 30, 2022
(Dollars in thousands)	Banking Business		Securities Business		Corporate/Eliminations		Axos Consolidated
Goodwill	$	35,721	$	61,967	$	—	$	97,688
Total Assets	$	17,320,661	$	1,027,815	$	58,602	$	18,407,078

	As of June 30, 2022
(Dollars in thousands)	Banking Business		Securities Business		Corporate/Eliminations		Axos Consolidated
Goodwill	$	35,721	$	59,953	$	—	$	95,674
Total Assets	$	16,002,714	$	1,328,558	$	69,893	$	17,401,165

Revenue information. The following presents non-interest income, segregated by revenue streams in-scope and out-of-scope of Topic 606 for the periods indicated. For further information of the Company’s recognition of revenue and Topic 606 see Note 1—“Organizations and Summary of Significant Accounting Policies” contained in the 2022 Form 10-K.

	For the Three Months Ended
	September 30,
(Dollars in thousands)	2022		2021
Advisory fee income	$	6,959	$	5,304
Broker-dealer clearing fees	5,233		5,670
Deposit service fees	1,106		626
Card fees	789		1,007
Bankruptcy trustee and fiduciary service fees	773		780
Non-interest income (in-scope Topic 606)	14,860		13,387
Non-interest income (out-of-scope Topic 606)	12,348		13,315
Total non-interest income	$	27,208	$	26,702

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)

3 Months Ended

Sep. 30, 2022

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 (the “Axos Nevada Holding”) collectively, the “Company”. Axos Bank and its wholly owned subsidiary constitute the Banking Business segment and Axos Nevada Holding wholly owns the companies constituting the Securities Business segment. All significant intercompany balances and transactions have been eliminated in consolidation.

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. Results for the three months ended September 30, 2022 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, 2022 included in our Annual Report on Form 10-K filed with the SEC for the fiscal year ended June 30, 2022 (“2022 Form 10-K”). A reclassification of certain components of non-interest income for the three months ended September 30, 2021 has been made to conform to the current period presentation. This reclassification had no effect on the Company’s total non-interest income, net income, financial position or cash flows. Additional reclassifications of certain amounts in the Condensed Consolidated Statement of Cash Flows for the three months ended September 30, 2021 have been made to conform to the current period presentation. These reclassifications had no effect on the Company’s results of operations or financial position.

New Accounting Standards

Significant Accounting Policies

Our significant accounting policies are described in greater detail in Note 1—“Organizations and Summary of Significant Accounting Policies” contained in the 2022 Form 10-K.

New Accounting Standards

Accounting Standards Issued But Not Yet Adopted

For a discussion of new accounting standards issued but not yet adopted which are applicable to the Company see Note 1—“Organizations and Summary of Significant Accounting Policies” contained in the 2022 Form 10-K. For the fiscal year beginning July 1, 2022, there have been no new accounting standards issued but not yet adopted that are expected to be material to the Company.

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, less cost to acquire and sell, of any underlying collateral 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)

3 Months Ended

Sep. 30, 2022

Business Combination and Asset Acquisition [Abstract]

Schedule of Fair Value and Useful Life of Each Intangible Asset Acquired

The following table summarizes the fair value and useful life of each intangible asset acquired as of the acquisition date:

(Dollars in thousands)	Fair Value		Useful Lives (Years)
Trade Name	$	290	0.16
Proprietary Technology	10,990		7
Customer Relationships	15,650		14
Non-Compete Agreements	130		1
Total	$	27,060

Schedule Of Business Acquisition, Pro Forma Information

The following table presents the results of operations of AAS for the three months ended September 30, 2021 on an unaudited pro forma basis, as if the acquisition of the entity rebranded to AAS had been consummated on July 1, 2020. The unaudited pro forma financial information is provided for informational purposes only and is not necessarily indicative of what the Company’s results of operations would have been if the acquisition of EAS had occurred as of July 1, 2020, or the results of operations for any future periods. Additionally, the information presented does not reflect any synergies or other strategic benefits as a result of acquisition.

	Pro Forma
(Dollars in thousands)	For the Three Months Ended September 30, 2021
Non-interest income	$	8,942

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FAIR VALUE (Tables)

3 Months Ended

Sep. 30, 2022

Fair Value Disclosures [Abstract]

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

The Company’s financial assets and liabilities measured at fair value on a recurring basis at September 30, 2022 and June 30, 2022 are classified in their entirety based on the lowest level of input significant to the fair value measurement.

	September 30, 2022
(Dollars in thousands)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
ASSETS:
Securities—Trading: Municipal		$	75	$	—	$	75
Securities—Available-for-Sale:
Agency MBS1		23,763		—		23,763
Non-Agency MBS2		—		184,012		184,012
Municipal		2,995		—		2,995
Asset-backed securities and structured notes		46,864		—		46,864
Total—Securities—Available-for-Sale		$	73,622	$	184,012	$	257,634
Loans Held for Sale		$	9,463	$	—	$	9,463
Mortgage servicing rights		$	—	$	26,373	$	26,373
Other assets—Derivative instruments		$	—	$	897	$	897
LIABILITIES:
Other liabilities—Derivative instruments		$	—	$	362	$	362
	June 30, 2022
(Dollars in thousands)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
ASSETS:
Securities—Trading: Municipal		$	1,758	$	—	$	1,758
Securities—Available-for-Sale:
Agency MBS1		25,325		—		25,325
Non-Agency MBS2		—		186,814		186,814
Municipal		3,248		—		3,248
Asset-backed securities and structured notes		47,131		—		47,131
Total—Securities—Available-for-Sale		$	75,704	$	186,814	$	262,518
Loans Held for Sale		$	4,973	$	—	$	4,973
Mortgage servicing rights		$	—	$	25,213	$	25,213
Other assets—Derivative instruments		$	—	$	464	$	464
LIABILITIES:
Other liabilities—Derivative instruments		$	—	$	—	$	—

1Includes 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.

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

Additional information is presented below about assets measured at fair value on a recurring basis for which the Company has utilized Level 3 inputs to determine fair value:

	For the Three Months Ended
	September 30, 2022
(Dollars in thousands)	Securities – Available-for-Sale: Non-Agency RMBS		Mortgage 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 income	—		953		71		1,024
Included in other comprehensive income	(2,473)		—		—		(2,473)
Purchases, retentions, issues, sales and settlements:
Purchases/Retentions	—		207		—		207
Settlements	(329)		—		—		(329)
Closing balance	$	184,012	$	26,373	$	535	$	210,920
Change in unrealized gains or losses for the period included in earnings for assets held at the end of the reporting period	$	—	$	953	$	71	$	1,024

1 Earnings from mortgage servicing rights (“MSR”) were attributable to: Time and payoffs, representing a decrease in MSR 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 $0.4 million, and an increase in MSR value resulting from market-driven changes in interest rates of $1.4 million. Additions to mortgage servicing rights were retained upon sale of loans held for sale.

	For the Three Months Ended
	September 30, 2021
(Dollars in thousands)	Securities – Available-for-Sale: Non-Agency RMBS		Mortgage Servicing Rights1		Derivative Instruments, net		Total
Opening Balance	$	67,615	$	17,911	$	2,205	$	87,731
Total gains or losses for the period:
Included in earnings—Mortgage banking income	—		(1,185)		21		(1,164)
Included in other comprehensive income	(112)		—		—		(112)
Purchases, retentions, issues, sales and settlements:
Purchases/Retentions	—		1,712		—		1,712
Settlements	(7,652)		—		—		(7,652)
Closing balance	$	59,851	$	18,438	$	2,226	$	80,515
Change in unrealized gains or losses for the period included in earnings for assets held at the end of the reporting period	$	—	$	(1,185)	$	21	$	(1,164)

1 Earnings from mortgage servicing rights were attributable to: Time and payoffs, representing a decrease in MSR 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 $1.6 million, and an increase in MSR value resulting from market-driven changes in interest rates of $0.4 million. Additions to mortgage 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 as of the dates indicated:

	September 30, 2022
(Dollars in thousands)	Fair Value		Valuation Technique	Unobservable Input	Range (Weighted Average)
Securities – Non-agency MBS	$	184,012	Discounted Cash Flow	Projected Constant Prepayment Rate, Projected Constant Default Rate, Projected Loss Severity, Discount Rate over LIBOR	0.0 to 30.0% (21.4%) 0.0 to 15.9% (2.3%) 0.0 to 68.6% (26.6%) 2.7 to 8.8% (2.7%)
Mortgage Servicing Rights	$	26,373	Discounted Cash Flow	Projected Constant Prepayment Rate, Life (in years), Discount Rate	3.8 to 38.0% (9.3%) 0.9 to 13.0 (9.4) 9.5 to 11.0% (9.5%)
Derivative Instruments	$	535	Sales Comparison Approach	Projected Sales Profit of Underlying Loans	-3.1 to 1.2% (-1.2%)

	June 30, 2022
(Dollars in thousands)	Fair Value		Valuation Technique	Unobservable Input	Range (Weighted Average)
Securities – Non-agency MBS	$	186,814	Discounted Cash Flow	Projected Constant Prepayment Rate, Projected Constant Default Rate, Projected Loss Severity, Discount Rate over LIBOR	0.0 to 30.0% (21.4%) 0.0 to 7.9% (2.2%) 0.0 to 68.4% (26.7%) 2.7 to 9.3% (2.8%)
Mortgage Servicing Rights	$	25,213	Discounted Cash Flow	Projected Constant Prepayment Rate, Life (in years), Discount Rate	7.9 to 56.3% (11.0%) 1.2 to 9.9 (8.4) 9.5 to 11.5% (9.5%)
Derivative Instruments	$	464	Sales Comparison Approach	Projected Sales Profit of Underlying Loans	-3.1 to 0.8% (-1.2%)

The following table presents quantitative information about level 3 fair value measurements for financial instruments measured at fair value on a non-recurring basis at the periods indicated:

	September 30, 2022
(Dollars in thousands)	Fair Value		Valuation Technique(s)	Unobservable Input	Range (Weighted Average) 1
Other real estate owned and foreclosed assets:
Single family real estate	$	4,534	Sales comparison approach	Adjustment for differences between the comparable sales	3.5 to 12.1% (4.1%)
Autos and RVs	$	768	Sales comparison approach	Adjustment for differences between the comparable sales	-13.7 to -0.5% (-3.4%)

	June 30, 2022
(Dollars in thousands)	Fair Value		Valuation Technique(s)	Unobservable Input	Range (Weighted Average) 1
Other real estate owned and foreclosed assets:
Autos and RVs	$	798	Sales comparison approach	Adjustment for differences between the comparable sales	-17.2 to 4.6% (-7.5%)

1 For other real estate owned and foreclosed assets 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 property being valued having limited comparable sales with similar characteristics at the time the current appraisal is conducted.

Schedule of Fair Value Assets Measured on Nonrecurring Basis

The table below summarizes assets measured for impairment on a non-recurring basis:

	September 30, 2022
(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 foreclosed assets:
Single family real estate	$	—	$	—	$	4,534	$	4,534
Autos and RVs	$	—	$	—	$	768	$	768
Total	$	—	$	—	$	5,302	$	5,302
	June 30, 2022
(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 foreclosed assets:
Autos and RVs	—		—		798		798
Total	$	—	$	—	$	798	$	798

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

As of September 30, 2022 and June 30, 2022, the aggregate fair value of loans held for sale, carried at fair value, contractual balance (including accrued interest), and unrealized gain was as follows:

(Dollars in thousands)	September 30, 2022		June 30, 2022
Aggregate fair value	$	9,463	$	4,973
Contractual balance	9,348		4,881
Unrealized gain	$	115	$	92

Gains and losses from changes in fair value included in earnings for loans held for sale for the periods indicated below were:

	For the Three Months Ended
	September 30,
(Dollars in thousands)	2022		2021
Interest income	$	50	$	200
Change in fair value	91		43
Total	$	141	$	243

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

Carrying amounts and estimated fair values of financial instruments at September 30, 2022 and June 30, 2022 were:

	September 30, 2022
			Fair Value
(Dollars in thousands)	Carrying Amount		Level 1		Level 2		Level 3		Total Fair Value
Financial assets:
Cash and cash equivalents	$	1,698,048	$	1,698,048	$	—	$	—	$	1,698,048
Securities — trading	75		—		75		—		75
Securities — available-for-sale	257,634		—		73,622		184,012		257,634
Loans held for sale, at fair value	9,463		—		9,463		—		9,463
Loans held for sale, at lower of cost or fair value	10,476		—		—		10,489		10,489
Loans held for investment—net	15,211,573		—		—		14,893,655		14,893,655
Securities borrowed	87,622		—		—		86,728		86,728
Customer, broker-dealer and clearing receivables	410,842		—		—		411,171		411,171
Mortgage servicing rights	26,373		—		—		26,373		26,373
Financial liabilities:
Total deposits	15,176,631		—		13,373,113		—		13,373,113
Advances from the Federal Home Loan Bank	112,500		—		105,387		—		105,387
Borrowings, subordinated notes and debentures	425,818		—		385,257		—		385,257
Securities loaned	206,889		—		—		206,910		206,910
Customer, broker-dealer and clearing payables	500,584		—		—		500,584		500,584

	June 30, 2022
			Fair Value
(Dollars in thousands)	Carrying Amount		Level 1		Level 2		Level 3		Total Fair Value
Financial assets:
Cash and cash equivalents	$	1,574,699	$	1,574,699	$	—	$	—	$	1,574,699
Securities — trading	1,758		—		1,758		—		1,758
Securities — available-for-sale	262,518		—		75,704		186,814		262,518
Loans held for sale, at fair value	4,973		—		4,973		—		4,973
Loans held for sale, at lower of cost or fair value	10,938		—		—		10,985		10,985
Loans held for investment—net	14,091,061		—		—		14,015,157		14,015,157
Securities borrowed	338,980		—		—		329,963		329,963
Customer, broker-dealer and clearing receivables	417,417		—		—		414,383		414,383
Mortgage servicing rights	25,213		—		—		25,213		25,213
Financial liabilities:
Total deposits	13,946,422		—		12,812,512		—		12,812,512
Advances from the Federal Home Loan Bank	117,500		—		117,500		—		117,500
Borrowings, subordinated notes and debentures	445,244		—		416,947		—		416,947
Securities loaned	474,400		—		—		473,831		473,831
Customer, broker-dealer and clearing payables	511,654		—		—		471,859		471,859

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SECURITIES (Tables)

3 Months Ended

Sep. 30, 2022

Investments, Debt and Equity Securities [Abstract]

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

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

	September 30, 2022
	Trading		Available-for-sale
(Dollars in thousands)	Fair Value		Amortized Cost		Unrealized Gains		Unrealized Losses		Fair Value
Mortgage-backed securities (MBS):
U.S. agencies1	$	—	$	27,187	$	1	$	(3,425)	$	23,763
Non-agency2	—		187,287		1,300		(4,575)		184,012
Total mortgage-backed securities	—		214,474		1,301		(8,000)		207,775
Non-MBS:
Municipal	75		3,560		—		(565)		2,995
Asset-backed securities and structured notes	—		47,000		—		(136)		46,864
Total Non-MBS	75		50,560		—		(701)		49,859
Total debt securities	$	75	$	265,034	$	1,301	$	(8,701)	$	257,634
	June 30, 2022
	Trading		Available-for-sale
(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:
Municipal	1,758		3,529		—		(281)		3,248
Asset-backed securities and structured notes	—		47,000		131		—		47,131
Total Non-MBS	1,758		50,529		131		(281)		50,379
Total debt securities	$	1,758	$	265,867	$	1,972	$	(5,321)	$	262,518

1Includes securities guaranteed by Ginnie Mae, a U.S. government agency, and the government sponsored enterprises Fannie Mae and Freddie Mac.

2Private 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 and the contractual maturity distribution of our Non-RMBS securities and the weighted-average yield for each range of maturities:

	At September 30, 2022
	Total Amount				Due Within One Year				Due After One but within Five Years				Due After Five but within Ten Years				Due After Ten Years
(Dollars in thousands)	Amount		Yield1		Amount		Yield1		Amount		Yield1		Amount		Yield1		Amount		Yield1
Available-for-sale
Mortgage-backed securities:
Agency2	$	27,187	1.79	%	$	5,018	1.83	%	$	13,175	1.79	%	$	7,063	1.76	%	$	1,931	1.86	%
Non-Agency3	187,287		5.41	%	1,285		16.89	%	183,937		5.30	%	1,726		8.90	%	339		4.63	%
Total Mortgage-Backed Securities	$	214,474	4.95	%	$	6,303	4.90	%	$	197,112	5.07	%	$	8,789	3.17	%	$	2,270	2.28	%
Non-RMBS
Municipal	3,560		3.57	%	—		—	%	—		—	%	—		—	%	3,560		3.57	%
Asset-backed securities and structured notes	47,000		8.43	%	35,155		8.43	%	11,845		8.43	%	—		—	%	—		—	%
Total Non-RMBS	$	50,560	8.09	%	$	35,155	8.43	%	$	11,845	8.43	%	$	—	—	%	$	3,560	3.57	%
Available-for-sale—Amortized Cost	$	265,034	5.55	%	$	41,458	7.89	%	$	208,957	5.26	%	$	8,789	3.17	%	$	5,830	3.07	%
Available-for-sale—Fair Value	$	257,634	5.57	%	$	41,010	7.89	%	$	203,814	5.26	%	$	7,807	3.17	%	$	5,003	3.07	%
Total available-for-sale securities	$	257,634	5.57	%	$	41,010	7.89	%	$	203,814	5.26	%	$	7,807	3.17	%	$	5,003	3.07	%

1 Weighted-average yield is based on amortized cost of the securities. Residential mortgage-backed security yields and maturities include impact of expected prepayments and other timing factors such as interest rate forward curve.

2 Includes securities guaranteed by Ginnie Mae, a U.S. government agency, and the government sponsored enterprises Fannie Mae and Freddie Mac.

3 Private sponsors of securities collateralized primarily by pools of 1-4 family residential first mo prime, Alt-A or pay-option ARM 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:

	September 30, 2022
	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	$	15,070	$	(1,882)	$	8,493	$	(1,543)	$	23,563	$	(3,425)
Non-agency	127,685		(4,095)		4,516		(480)		132,201		(4,575)
Total MBS	142,755		(5,977)		13,009		(2,023)		155,764		(8,000)
Non-MBS:
Municipal debt	2,995		(565)		—		—		2,995		(565)
Asset-backed securities and structured notes	46,864		(136)		—		—		46,864		(136)
Total Non-MBS	49,859		(701)		—		—		49,859		(701)
Total debt securities	$	192,614	$	(6,678)	$	13,009	$	(2,023)	$	205,623	$	(8,701)
	June 30, 2022
	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	$	16,446	$	(1,338)	$	8,097	$	(1,068)	$	24,543	$	(2,406)
Non-agency	92,796		(2,204)		4,751		(430)		97,547		(2,634)
Total MBS	109,242		(3,542)		12,848		(1,498)		122,090		(5,040)
Non-MBS:
Municipal debt	3,248		(281)		—		—		3,248		(281)
Asset-backed securities and structured notes	—		—		—		—		—		—
Total Non-MBS	3,248		(281)		—		—		3,248		(281)
Total debt securities	$	112,490	$	(3,823)	$	12,848	$	(1,498)	$	125,338	$	(5,321)

Components of Other Comprehensive Income (Loss)

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

(Dollars in thousands)	September 30, 2022		June 30, 2022
Available-for-sale debt securities—net unrealized gains (losses)	$	(7,400)	$	(3,349)
Available-for-sale debt securities—non-credit related losses	(845)		(845)
Subtotal	(8,245)		(4,194)
Tax benefit (expense)	2,475		1,261
Net unrealized gain (loss) on investment securities in accumulated other comprehensive income (loss)	$	(5,770)	$	(2,933)

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LOANS & ALLOWANCE FOR CREDIT LOSSES (Tables)

3 Months Ended

Sep. 30, 2022

Receivables [Abstract]

Schedule of Composition of the Loan Portfolio

The composition of the loan portfolio was:

(Dollars in thousands)	September 30, 2022		June 30, 2022
Single Family - Mortgage & Warehouse	$	4,009,809	$	3,988,462
Multifamily and Commercial Mortgage	2,964,982		2,877,680
Commercial Real Estate	5,523,895		4,781,044
Commercial & Industrial - Non-RE	2,244,342		2,028,128
Auto & Consumer	631,344		567,228
Other	9,954		11,134
Total gross loans and leases	15,384,326		14,253,676
Allowance for credit losses - loans	(155,472)		(148,617)
Unaccreted premiums (discounts) and loan and lease fees	(17,281)		(13,998)
Total net loans and leases	$	15,211,573	$	14,091,061

Schedule of Allowance for Credit Losses on Financing Receivables

Activity in the allowance for credit losses by portfolio classes for the periods was:

	For the Three Months Ended September 30, 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	(1,642)		(6)		4,437		3,557		2,405		(1)		8,750
Charge-offs	(4)		—		—		—		(2,362)		—		(2,366)
Recoveries	15		—		—		18		438		—		471
Balance at September 30, 2022	$	18,039	$	14,649	$	73,776	$	34,383	$	14,595	$	30	$	155,472

	For the Three Months Ended September 30, 2021
(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, 2021	$	26,604	$	13,146	$	57,928	$	28,460	$	6,519	$	301	$	132,958
Provision (benefit) for credit losses - loans	(1,351)		36		7,295		(5,646)		3,626		40		4,000
Charge-offs	—		—		—		(322)		(394)		—		(716)
Recoveries	76		177		—		27		256		—		536
Balance at September 30, 2021	$	25,329	$	13,359	$	65,223	$	22,519	$	10,007	$	341	$	136,778

Unfunded Loan Commitment Reserves

Unfunded loan commitment reserves are included in “Accounts payable and other liabilities” in the unaudited Condensed Consolidated Balance Sheets. Provisions for the unfunded loan commitments are included in the unaudited Condensed Consolidated Statements of Income in “General and administrative expenses”.

The following tables present a summary of the activity in the unfunded loan commitment reserves for the periods indicated:

	Three Months Ended September 30,
(Dollars in thousands)	2022		2021
BALANCE—beginning July 1	$	10,973	$	5,723
Provision	—		2,000
BALANCE—end September 30	$	10,973	$	7,723

Schedule of Nonaccrual Loans

Nonaccrual loans consisted of the following as of the dates indicated:

(Dollars in thousands)	As of September 30, 2022
Single Family - Mortgage & Warehouse	$	65,687
Multifamily and Commercial Mortgage	35,837
Commercial Real Estate	14,852
Commercial & Industrial - Non-RE	2,989
Auto & Consumer	990
Other	126
Total nonaccrual loans	$	120,481
Nonaccrual loans to total loans	0.78		%

(Dollars in thousands)	As of June 30, 2022
Single Family - Mortgage & Warehouse	$	66,424
Multifamily and Commercial Mortgage	33,410
Commercial Real Estate	14,852
Commercial & Industrial - Non-RE	2,989
Auto & Consumer	439
Other	80
Total nonaccrual loans	$	118,194
Nonaccrual loans to total loans	0.83		%

Schedule of Outstanding Principal Balance on Loans Performing and Nonaccrual

The outstanding unpaid balance of loans that are either performing or nonaccrual by portfolio class was:

	September 30, 2022
(Dollars in thousands)	Single Family-Mortgage & Warehouse		Multifamily and Commercial Mortgage		Commercial Real Estate		Commercial & Industrial - Non-RE		Auto & Consumer		Other		Total
Performing	$	3,944,122	$	2,929,145	$	5,509,043	$	2,241,353	$	630,354	$	9,828	$	15,263,845
Nonaccrual	65,687		35,837		14,852		2,989		990		126		120,481
Total	$	4,009,809	$	2,964,982	$	5,523,895	$	2,244,342	$	631,344	$	9,954	$	15,384,326

	June 30, 2022
(Dollars in thousands)	Single Family-Mortgage & Warehouse		Multifamily and Commercial Mortgage		Commercial Real Estate		Commercial & Industrial - Non-RE		Auto & Consumer		Other		Total
Performing	$	3,922,038	$	2,844,270	$	4,766,192	$	2,025,139	$	566,789	$	11,054	$	14,135,482
Nonaccrual	66,424		33,410		14,852		2,989		439		80		118,194
Total	$	3,988,462	$	2,877,680	$	4,781,044	$	2,028,128	$	567,228	$	11,134	$	14,253,676

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

The amortized cost basis of the Company’s loans by year of origination and credit quality indicator are:

	September 30, 2022
	Loans Held for Investment Origination Year												Revolving Loans		Total
(Dollars in thousands)	2023		2022		2021		2020		2019		Prior
Single Family-Mortgage & Warehouse
Pass	$	309,401	$	1,427,758	$	579,544	$	380,330	$	277,775	$	767,417	$	168,798	$	3,911,023
Special Mention	—		—		—		4,971		2,165		18,091		7,532		32,759
Substandard	—		3,201		3,171		5,017		18,700		35,518		420		66,027
Doubtful	—		—		—		—		—		—		—		—
Total	309,401		1,430,959		582,715		390,318		298,640		821,026		176,750		4,009,809
Multifamily and Commercial Mortgage
Pass	187,856		1,004,942		541,338		403,340		247,670		483,365		—		2,868,511
Special Mention	—		9,706		3,980		532		3,269		—		—		17,487
Substandard	—		3,145		5,759		32,935		6,832		30,313		—		78,984
Doubtful	—		—		—		—		—		—		—		—
Total	187,856		1,017,793		551,077		436,807		257,771		513,678		—		2,964,982
Commercial Real Estate
Pass	509,209		2,613,562		953,785		312,381		182,800		28,759		760,859		5,361,355
Special Mention	—		—		55,820		12,138		1,000		15,000		—		83,958
Substandard	—		—		38,290		—		15,487		23,507		1,298		78,582
Doubtful	—		—		—		—		—		—		—		—
Total	509,209		2,613,562		1,047,895		324,519		199,287		67,266		762,157		5,523,895
Commercial & Industrial - Non-RE
Pass	63,185		402,229		35,057		19,008		10,858		6,520		1,671,859		2,208,716
Special Mention	—		—		—		—		—		—		—		—
Substandard	—		2,988		—		8,500		—		—		24,138		35,626
Doubtful	—		—		—		—		—		—		—		—
Total	63,185		405,217		35,057		27,508		10,858		6,520		1,695,997		2,244,342
Auto & Consumer
Pass	115,451		328,900		96,119		37,417		31,545		20,039		—		629,471
Special Mention	—		328		218		44		16		38		—		644
Substandard	—		509		291		154		231		44		—		1,229
Doubtful	—		—		—		—		—		—		—		—
Total	115,451		329,737		96,628		37,615		31,792		20,121		—		631,344
Other
Pass	698		2,000		3,310		—		—		1,525		—		7,533
Special Mention	—		—		2,295		—		—		—		—		2,295
Substandard	—		—		—		—		—		126		—		126
Doubtful	—		—		—		—		—		—		—		—
Total	698		2,000		5,605		—		—		1,651		—		9,954
Total
Pass	1,185,800		5,779,391		2,209,153		1,152,476		750,648		1,307,625		2,601,516		14,986,609
Special Mention	—		10,034		62,313		17,685		6,450		33,129		7,532		137,143
Substandard	—		9,843		47,511		46,606		41,250		89,508		25,856		260,574
Doubtful	—		—		—		—		—		—		—		—
Total	$1,185,800		$5,799,268		$2,318,977		$1,216,767		$798,348		$1,430,262		$2,634,904		$15,384,326
As a % of total gross loans	7.71%		37.70%		15.07%		7.91%		5.19%		9.30%		17.13%		100.0%

	June 30, 2022
	Loans Held for Investment Origination Year												Revolving Loans		Total
(Dollars in thousands)	2022		2021		2020		2019		2018		Prior
Single Family-Mortgage & Warehouse
Pass	$	1,484,027	$	600,054	$	402,712	$	303,999	$	279,248	$	548,703	$	241,925	$	3,860,668
Special Mention	—		—		4,790		2,505		4,125		10,971		38,637		61,028
Substandard	—		2,288		3,928		18,407		5,955		36,188		—		66,766
Doubtful	—		—		—		—		—		—		—		—
Total	1,484,027		602,342		411,430		324,911		289,328		595,862		280,562		3,988,462
Multifamily and Commercial Mortgage
Pass	999,819		569,486		429,247		259,161		219,548		316,013		—		2,793,274
Special Mention	1,200		—		534		539		—		968		—		3,241
Substandard	—		5,772		34,343		9,613		7,308		24,129		—		81,165
Doubtful	—		—		—		—		—		—		—		—
Total	1,001,019		575,258		464,124		269,313		226,856		341,110		—		2,877,680
Commercial Real Estate
Pass	2,482,366		990,887		358,422		186,800		28,758		—		602,412		4,649,645
Special Mention	—		32,351		12,138		16,487		15,000		—		—		75,976
Substandard	—		—		12,575		18,043		23,507		—		1,298		55,423
Doubtful	—		—		—		—		—		—		—		—
Total	2,482,366		1,023,238		383,135		221,330		67,265		—		603,710		4,781,044
Commercial & Industrial - Non-RE
Pass	435,228		66,226		25,629		61,932		9,268		—		1,388,435		1,986,718
Special Mention	13		—		—		186		710		—		—		909
Substandard	2,988		28,359		9,154		—		—		—		—		40,501
Doubtful	—		—		—		—		—		—		—		—
Total	438,229		94,585		34,783		62,118		9,978		—		1,388,435		2,028,128
Auto & Consumer
Pass	352,468		107,882		43,377		37,008		16,147		8,891		—		565,773
Special Mention	204		188		24		110		—		1		—		527
Substandard	157		311		224		205		25		6		—		928
Doubtful	—		—		—		—		—		—		—		—
Total	352,829		108,381		43,625		37,323		16,172		8,898		—		567,228
Other
Pass	3,057		6,185		—		—		1,091		721		—		11,054
Special Mention	—		—		—		—		—		—		—		—
Substandard	—		—		46		—		—		34		—		80
Doubtful	—		—		—		—		—		—		—		—
Total	3,057		6,185		46		—		1,091		755		—		11,134
Total
Pass	5,756,965		2,340,720		1,259,387		848,900		554,060		874,328		2,232,772		13,867,132
Special Mention	1,417		32,539		17,486		19,827		19,835		11,940		38,637		141,681
Substandard	3,145		36,730		60,270		46,268		36,795		60,357		1,298		244,863
Doubtful	—		—		—		—		—		—		—		—
Total	$	5,761,527	$	2,409,989	$	1,337,143	$	914,995	$	610,690	$	946,625	$	2,272,707	$	14,253,676
As a % of total gross loans	40.42%		16.91%		9.38%		6.42%		4.28%		6.64%		15.95%		100.0%

Schedule of Past Due Loan and Leases

The outstanding unpaid balance of loans past due 30 days or more by portfolio class are:

	September 30, 2022
(Dollars in thousands)	30-59 Days Past Due			60-89 Days Past Due			90+ Days Past Due			Total
Single Family-Mortgage & Warehouse	$	13,021		$	5,494		$	57,883		$	76,398
Multifamily and Commercial Mortgage	5,909			358			30,001			36,268
Commercial Real Estate	9,655			—			14,852			24,507
Commercial & Industrial - Non-RE	—			—			—			—
Auto & Consumer	4,174			945			495			5,614
Other	1,162			—			126			1,288
Total	$	33,921		$	6,797		$	103,357		$	144,075
As a % of total gross loans	0.22		%	0.05		%	0.67		%	0.94		%

	June 30, 2022
(Dollars in thousands)	30-59 Days Past Due			60-89 Days Past Due			90+ Days Past Due			Total
Single Family-Mortgage & Warehouse	$	5,167		$	1,518		$	63,286		$	69,971
Multifamily and Commercial Mortgage	9,455			2,115			26,556			38,126
Commercial Real Estate	—			14,852			—			14,852
Commercial & Industrial - Non-RE	—			—			—			—
Auto & Consumer	4,865			1,009			466			6,340
Other	413			—			193			606
Total	$	19,900		$	19,494		$	90,501		$	129,895
As a % of total gross loans	0.14		%	0.14		%	0.63		%	0.91		%

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EQUITY AND STOCK-BASED COMPENSATION (Tables)

3 Months Ended

Sep. 30, 2022

Share-Based Payment Arrangement [Abstract]

Schedule of Unrecognized Compensation Expense Related to Non-vested Awards To be Recognized in the Future

At September 30, 2022, 1,614,701 shares of common stock remained available for issuance pursuant to grant awards under the 2014 Plan and unrecognized compensation expense related to non-vested awards aggregated to $47.6 million and is expected to be recognized in future periods as follows:

(Dollars in thousands)	Stock Award Compensation Expense
For the fiscal year remainder:
Remainder of fiscal year 2023	$	18,487
2024	17,408
2025	9,372
2026	1,913
2027	400
Total	$	47,580

Schedule of Status and Changes in Restricted Stock Grants

The status and changes in restricted stock units for the period indicated:

	Restricted Stock Units	Weighted-Average Grant-Date Fair Value
Non-vested balance at June 30, 2022	1,350,763	$	41.16
Granted	400,339	38.99
Vested	(291,430)	31.88
Forfeited	(19,210)	41.62
Non-vested balance at September 30, 2022	1,440,462	$	42.43

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EARNINGS PER COMMON SHARE (Tables)

3 Months Ended

Sep. 30, 2022

Earnings Per Share [Abstract]

Schedule of Calculation of Basic and Diluted EPS

The following table presents the calculation of basic and diluted EPS:

	Three Months Ended
	September 30,
(Dollars in thousands, except per share data)	2022		2021
Earnings Per Common Share
Net income attributable to common stockholders	$	58,407	$	60,210
Average common shares issued and outstanding	59,854,584		59,390,846
Earnings per common share	$	0.98	$	1.01
Diluted Earnings Per Common Share
Net income attributable to common stockholders	$	58,407	$	60,210
Average common shares issued and outstanding	59,854,584		59,390,846
Dilutive effect of average unvested RSUs	631,810		1,253,442
Total dilutive common shares outstanding	60,486,394		60,644,288
Diluted earnings per common share	$	0.97	$	0.99

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Commitment and Contingencies (Tables)

3 Months Ended

Sep. 30, 2022

Commitments and Contingencies Disclosure [Abstract]

Schedule of Maturities of Lease Liabilities

The Company leases office space under operating lease agreements scheduled to expire at various dates. The following table represents maturities of lease liabilities as of September 30, 2022 in the corresponding fiscal years:

(Dollars in thousands)
Remainder of fiscal year 2023	$	8,151
2024	10,976
2025	11,143
2026	10,811
2027	10,870
Thereafter	29,177
Total lease payments	81,128
Less: amount representing interest	(8,074)
Total Lease Liability	$	73,054

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SEGMENT REPORTING AND REVENUE INFORMATION (Tables)

3 Months Ended

Sep. 30, 2022

Segment Reporting [Abstract]

Schedule of Segment Reporting Information, by Segment

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

	Three Months Ended September 30, 2022
(Dollars in thousands)	Banking Business		Securities Business		Corporate/Eliminations		Axos Consolidated
Net interest income	$	179,730	$	4,275	$	(3,530)	$	180,475
Provision for credit losses	8,750		—		—		8,750
Non-interest income	10,712		29,165		(12,669)		27,208
Non-interest expense	100,796		24,515		(9,224)		116,087
Income before taxes	$	80,896	$	8,925	$	(6,975)	$	82,846

	Three Months Ended September 30, 2021
(Dollars in thousands)	Banking Business		Securities Business		Corporate/Eliminations		Axos Consolidated
Net interest income	$	142,241	$	6,176	$	(1,775)	$	146,642
Provision for credit losses	4,000		—		—		4,000
Non-interest income	14,828		13,106		(1,232)		26,702
Non-interest expense	62,725		19,273		2,433		84,431
Income before taxes	$	90,344	$	9	$	(5,440)	$	84,913

	As of September 30, 2022
(Dollars in thousands)	Banking Business		Securities Business		Corporate/Eliminations		Axos Consolidated
Goodwill	$	35,721	$	61,967	$	—	$	97,688
Total Assets	$	17,320,661	$	1,027,815	$	58,602	$	18,407,078

	As of June 30, 2022
(Dollars in thousands)	Banking Business		Securities Business		Corporate/Eliminations		Axos Consolidated
Goodwill	$	35,721	$	59,953	$	—	$	95,674
Total Assets	$	16,002,714	$	1,328,558	$	69,893	$	17,401,165

Schedule of Other Nonoperating Income (Expense)

The following presents non-interest income, segregated by revenue streams in-scope and out-of-scope of Topic 606 for the periods indicated. For further information of the Company’s recognition of revenue and Topic 606 see Note 1—“Organizations and Summary of Significant Accounting Policies” contained in the 2022 Form 10-K.

	For the Three Months Ended
	September 30,
(Dollars in thousands)	2022		2021
Advisory fee income	$	6,959	$	5,304
Broker-dealer clearing fees	5,233		5,670
Deposit service fees	1,106		626
Card fees	789		1,007
Bankruptcy trustee and fiduciary service fees	773		780
Non-interest income (in-scope Topic 606)	14,860		13,387
Non-interest income (out-of-scope Topic 606)	12,348		13,315
Total non-interest income	$	27,208	$	26,702

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ACQUISITIONS - NARRATIVE (Details) - USD ($) $ in Thousands		1 Months Ended	3 Months Ended
	Aug. 02, 2021	Dec. 31, 2021	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022
Business Acquisition [Line Items]
Goodwill			$ 97,688	$ 95,674
E*TRADE Advisor Services
Business Acquisition [Line Items]
Cash consideration	$ 54,600	$ 54,800
Acquisition-related costs			$ 40
Tangible assets acquired	14,400				$ 14,200
Business combination, recognized identifiable assets acquired and liabilities assumed, right-of-use lease asset	7,800
Liabilities assumed	11,300				$ 10,900
Business combination, recognized identifiable assets acquired and liabilities assumed, lease liabilty	7,800
Intangible assets acquired	27,060
Goodwill	$ 24,400
True-up payment based on working capital adjustment		$ 200

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ACQUISITIONS - FAIR VALUE OF ASSETS ACQUIRED (Details) - E*TRADE Advisor Services $ in Thousands	Aug. 02, 2021 USD ($)
Business Acquisition [Line Items]
Fair Value	$ 27,060
Trade name
Business Acquisition [Line Items]
Fair Value	$ 290
Weighted-average useful lives (years)	1 month 28 days
Proprietary Technology
Business Acquisition [Line Items]
Fair Value	$ 10,990
Weighted-average useful lives (years)	7 years
Customer Relationships
Business Acquisition [Line Items]
Fair Value	$ 15,650
Weighted-average useful lives (years)	14 years
Non-Compete Agreements
Business Acquisition [Line Items]
Fair Value	$ 130
Weighted-average useful lives (years)	1 year

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ACQUISITIONS - Business Acquisition, Pro Forma Information (Details) $ in Thousands	3 Months Ended
	Sep. 30, 2021 USD ($)
Business Combination and Asset Acquisition [Abstract]
Non-interest income	$ 8,942

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FAIR VALUE - ASSETS AND LIABILITIES MEASURED ON RECURRING BASIS (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Jun. 30, 2022
ASSETS:
Trading	$ 75	$ 1,758
Available-for-sale	257,634	262,518
Loans held for sale, at fair value	9,463	4,973
Municipal
ASSETS:
Trading	75	1,758
Available-for-sale	2,995	3,248
Agency MBS
ASSETS:
Trading	0	0
Available-for-sale	23,763	25,325
Securities – Available-for-Sale: Non-Agency RMBS
ASSETS:
Trading	0	0
Available-for-sale	184,012	186,814
Quoted Prices in Active Markets for Identical Assets (Level 1)
ASSETS:
Trading	0	0
Available-for-sale	0	0
Loans held for sale, at fair value	0	0
Mortgage servicing rights	0	0
Significant Other Observable Inputs (Level 2)
ASSETS:
Trading	75	1,758
Available-for-sale	73,622	75,704
Loans held for sale, at fair value	9,463	4,973
Mortgage servicing rights	0	0
Significant Unobservable Inputs (Level 3)
ASSETS:
Trading	0	0
Available-for-sale	184,012	186,814
Loans held for sale, at fair value	0	0
Mortgage servicing rights	26,373	25,213
Recurring
ASSETS:
Available-for-sale	257,634	262,518
Loans held for sale, at fair value	9,463	4,973
Mortgage servicing rights	26,373	25,213
Other assets—Derivative instruments	897	464
LIABILITIES:
Other liabilities—Derivative instruments	362	0
Recurring | Municipal
ASSETS:
Trading	75	1,758
Available-for-sale	2,995	3,248
Recurring | Agency MBS
ASSETS:
Available-for-sale	23,763	25,325
Recurring | Securities – Available-for-Sale: Non-Agency RMBS
ASSETS:
Available-for-sale	184,012	186,814
Recurring | Asset-backed securities and structured notes
ASSETS:
Available-for-sale	46,864	47,131
Recurring | Significant Other Observable Inputs (Level 2)
ASSETS:
Available-for-sale	73,622	75,704
Loans held for sale, at fair value	9,463	4,973
Mortgage servicing rights	0	0
Other assets—Derivative instruments	0	0
LIABILITIES:
Other liabilities—Derivative instruments	0	0
Recurring | Significant Other Observable Inputs (Level 2) | Municipal
ASSETS:
Trading	75	1,758
Available-for-sale	2,995	3,248
Recurring | Significant Other Observable Inputs (Level 2) | Agency MBS
ASSETS:
Available-for-sale	23,763	25,325
Recurring | Significant Other Observable Inputs (Level 2) | Securities – Available-for-Sale: Non-Agency RMBS
ASSETS:
Available-for-sale	0	0
Recurring | Significant Other Observable Inputs (Level 2) | Asset-backed securities and structured notes
ASSETS:
Available-for-sale	46,864	47,131
Recurring | Significant Unobservable Inputs (Level 3)
ASSETS:
Available-for-sale	184,012	186,814
Loans held for sale, at fair value	0	0
Mortgage servicing rights	26,373	25,213
Other assets—Derivative instruments	897	464
LIABILITIES:
Other liabilities—Derivative instruments	362	0
Recurring | Significant Unobservable Inputs (Level 3) | Municipal
ASSETS:
Trading	0	0
Available-for-sale	0	0
Recurring | Significant Unobservable Inputs (Level 3) | Agency MBS
ASSETS:
Available-for-sale	0	0
Recurring | Significant Unobservable Inputs (Level 3) | Securities – Available-for-Sale: Non-Agency RMBS
ASSETS:
Available-for-sale	184,012	186,814
Recurring | Significant Unobservable Inputs (Level 3) | Asset-backed securities and structured notes
ASSETS:
Available-for-sale	$ 0	$ 0

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FAIR VALUE - LEVEL 3 ASSETS MEASURED ON RECURRING BASIS (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Included in earnings—Mortgage banking income [Extensible Enumeration]	Mortgage banking income	Mortgage banking income
Included in other comprehensive income [Extensible Enumeration]	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	$ 212,491	$ 87,731
Included in earnings—Mortgage banking income	1,024	(1,164)
Included in other comprehensive income	(2,473)	(112)
Purchases, retentions, issues, sales and settlements:
Purchases/Retentions	207	1,712
Settlements	(329)	(7,652)
Closing balance	210,920	80,515
Change in unrealized gains or losses for the period included in earnings for assets held at the end of the reporting period	1,024	(1,164)
Principal payments and loans that were paid down or paid off	400	1,600
Market-driven changes in interest rates	1,400	400
Recurring | Level 3 | Securities – Available-for-Sale: Non-Agency RMBS
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Opening Balance	186,814	67,615
Included in earnings—Mortgage banking income	0	0
Included in other comprehensive income	(2,473)	(112)
Purchases, retentions, issues, sales and settlements:
Purchases/Retentions	0	0
Settlements	(329)	(7,652)
Closing balance	184,012	59,851
Change in unrealized gains or losses for the period included in earnings for assets held at the end of the reporting period	0	0
Recurring | Level 3 | Mortgage Servicing Rights
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Opening Balance	25,213	17,911
Included in earnings—Mortgage banking income	953	(1,185)
Included in other comprehensive income	0	0
Purchases, retentions, issues, sales and settlements:
Purchases/Retentions	207	1,712
Settlements	0	0
Closing balance	26,373	18,438
Change in unrealized gains or losses for the period included in earnings for assets held at the end of the reporting period	953	(1,185)
Recurring | Level 3 | Derivative Instruments, net
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Opening Balance	464	2,205
Included in earnings—Mortgage banking income	71	21
Included in other comprehensive income	0	0
Purchases, retentions, issues, sales and settlements:
Purchases/Retentions	0	0
Settlements	0	0
Closing balance	535	2,226
Change in unrealized gains or losses for the period included in earnings for assets held at the end of the reporting period	$ 71	$ 21

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FAIR VALUE - QUANTITATIVE INFORMATION ABOUT LEVEL 3 FAIR VALUE MEASURMENTS (RECURRING) (Details) $ in Thousands	Sep. 30, 2022 USD ($) year	Jun. 30, 2022 USD ($) year
Fair Value, Option, Quantitative Disclosures [Line Items]
Available-for-sale	$ 257,634	$ 262,518
Securities – Available-for-Sale: Non-Agency RMBS
Fair Value, Option, Quantitative Disclosures [Line Items]
Available-for-sale	184,012	186,814
Level 3
Fair Value, Option, Quantitative Disclosures [Line Items]
Available-for-sale	184,012	186,814
Mortgage servicing rights	26,373	25,213
Recurring
Fair Value, Option, Quantitative Disclosures [Line Items]
Available-for-sale	257,634	262,518
Mortgage servicing rights	26,373	25,213
Recurring | Securities – Available-for-Sale: Non-Agency RMBS
Fair Value, Option, Quantitative Disclosures [Line Items]
Available-for-sale	184,012	186,814
Recurring | Level 3
Fair Value, Option, Quantitative Disclosures [Line Items]
Available-for-sale	184,012	186,814
Mortgage servicing rights	26,373	25,213
Recurring | Level 3 | Securities – Available-for-Sale: Non-Agency RMBS
Fair Value, Option, Quantitative Disclosures [Line Items]
Available-for-sale	$ 184,012	$ 186,814
Recurring | Level 3 | Securities – Available-for-Sale: Non-Agency RMBS | 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 | Securities – Available-for-Sale: Non-Agency RMBS | Projected Constant Prepayment Rate | Maximum
Fair Value, Option, Quantitative Disclosures [Line Items]
Securities available-for-sale, measurement input	0.300	0.300
Recurring | Level 3 | Securities – Available-for-Sale: Non-Agency RMBS | Projected Constant Prepayment Rate | Weighted Average
Fair Value, Option, Quantitative Disclosures [Line Items]
Securities available-for-sale, measurement input	0.214	0.214
Recurring | Level 3 | Securities – Available-for-Sale: Non-Agency RMBS | 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 | Securities – Available-for-Sale: Non-Agency RMBS | Projected Constant Default Rate | Maximum
Fair Value, Option, Quantitative Disclosures [Line Items]
Securities available-for-sale, measurement input	0.159	0.079
Recurring | Level 3 | Securities – Available-for-Sale: Non-Agency RMBS | Projected Constant Default Rate | Weighted Average
Fair Value, Option, Quantitative Disclosures [Line Items]
Securities available-for-sale, measurement input	0.023	0.022
Recurring | Level 3 | Securities – Available-for-Sale: Non-Agency RMBS | Projected Loss Severity | Minimum
Fair Value, Option, Quantitative Disclosures [Line Items]
Securities available-for-sale, measurement input	0.000	0.000
Recurring | Level 3 | Securities – Available-for-Sale: Non-Agency RMBS | Projected Loss Severity | Maximum
Fair Value, Option, Quantitative Disclosures [Line Items]
Securities available-for-sale, measurement input	0.686	0.684
Recurring | Level 3 | Securities – Available-for-Sale: Non-Agency RMBS | Projected Loss Severity | Weighted Average
Fair Value, Option, Quantitative Disclosures [Line Items]
Securities available-for-sale, measurement input	0.266	0.267
Recurring | Level 3 | Securities – Available-for-Sale: Non-Agency RMBS | Discount Rate | Minimum
Fair Value, Option, Quantitative Disclosures [Line Items]
Securities available-for-sale, measurement input	0.027	0.027
Recurring | Level 3 | Securities – Available-for-Sale: Non-Agency RMBS | Discount Rate | Maximum
Fair Value, Option, Quantitative Disclosures [Line Items]
Securities available-for-sale, measurement input	0.088	0.093
Recurring | Level 3 | Securities – Available-for-Sale: Non-Agency RMBS | Discount Rate | Weighted Average
Fair Value, Option, Quantitative Disclosures [Line Items]
Securities available-for-sale, measurement input	0.027	0.028
Recurring | Level 3 | Mortgage Servicing Rights
Fair Value, Option, Quantitative Disclosures [Line Items]
Mortgage servicing rights	$ 26,373	$ 25,213
Recurring | Level 3 | Mortgage Servicing Rights | Projected Constant Prepayment Rate | Minimum
Fair Value, Option, Quantitative Disclosures [Line Items]
Mortgage servicing right, measurement input	0.038	0.079
Recurring | Level 3 | Mortgage Servicing Rights | Projected Constant Prepayment Rate | Maximum
Fair Value, Option, Quantitative Disclosures [Line Items]
Mortgage servicing right, measurement input	0.380	0.563
Recurring | Level 3 | Mortgage Servicing Rights | Projected Constant Prepayment Rate | Weighted Average
Fair Value, Option, Quantitative Disclosures [Line Items]
Mortgage servicing right, measurement input	0.093	0.110
Recurring | Level 3 | Mortgage Servicing Rights | Discount Rate | Minimum
Fair Value, Option, Quantitative Disclosures [Line Items]
Mortgage servicing right, measurement input	0.095	0.095
Recurring | Level 3 | Mortgage Servicing Rights | Discount Rate | Maximum
Fair Value, Option, Quantitative Disclosures [Line Items]
Mortgage servicing right, measurement input	0.110	0.115
Recurring | Level 3 | Mortgage Servicing Rights | Discount Rate | Weighted Average
Fair Value, Option, Quantitative Disclosures [Line Items]
Mortgage servicing right, measurement input	0.095	0.095
Recurring | Level 3 | Mortgage Servicing Rights | Life (in years) | Minimum
Fair Value, Option, Quantitative Disclosures [Line Items]
Mortgage servicing right, measurement input | year	0.9	1.2
Recurring | Level 3 | Mortgage Servicing Rights | Life (in years) | Maximum
Fair Value, Option, Quantitative Disclosures [Line Items]
Mortgage servicing right, measurement input | year	13.0	9.9
Recurring | Level 3 | Mortgage Servicing Rights | Life (in years) | Weighted Average
Fair Value, Option, Quantitative Disclosures [Line Items]
Mortgage servicing right, measurement input | year	9.4	8.4
Recurring | Level 3 | Derivative Instruments, net
Fair Value, Option, Quantitative Disclosures [Line Items]
Derivative Instruments	$ 535	$ 464
Recurring | Level 3 | Derivative Instruments, net | Projected Sales Profit of Underlying Loans | Minimum
Fair Value, Option, Quantitative Disclosures [Line Items]
Derivative instruments, net, measurement input	(0.031)	(0.031)
Recurring | Level 3 | Derivative Instruments, net | Projected Sales Profit of Underlying Loans | Maximum
Fair Value, Option, Quantitative Disclosures [Line Items]
Derivative instruments, net, measurement input	0.012	0.008
Recurring | Level 3 | Derivative Instruments, net | Projected Sales Profit of Underlying Loans | Weighted Average
Fair Value, Option, Quantitative Disclosures [Line Items]
Derivative instruments, net, measurement input	(0.012)	(0.012)

XML

FAIR VALUE - ASSETS MEASURED FOR IMPAIRMENT ON NONRECURRING BASIS (Details) - Nonrecurring - USD ($) $ in Thousands	Sep. 30, 2022	Jun. 30, 2022
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other real estate owned and foreclosed assets, fair value	$ 5,302	$ 798
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	4,534
Autos and RVs
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other real estate owned and foreclosed assets, fair value	768	798
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
Quoted Prices in Active Markets for Identical Assets (Level 1) | Autos and RVs
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
Significant Other Observable Inputs (Level 2) | Autos and RVs
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	5,302	798
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	4,534
Significant Unobservable Inputs (Level 3) | Autos and RVs
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other real estate owned and foreclosed assets, fair value	$ 768	$ 798

XML

FAIR VALUE - NARRATIVE (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Fair Value Inputs, Equity, Quantitative Information [Line Items]
Impaired loans, charge-offs	$ 2,366	$ 716
Other real estate owned | Nonrecurring
Fair Value Inputs, Equity, Quantitative Information [Line Items]
Impaired loans, charge-offs	$ 307	$ 12

XML

FAIR VALUE - LOANS HELD-FOR-SALE (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Jun. 30, 2022
Fair Value Disclosures [Abstract]
Aggregate fair value	$ 9,463		$ 4,973
Contractual balance	9,348		4,881
Unrealized gain	115		$ 92
Interest income	50	$ 200
Change in fair value	91	43
Total	$ 141	$ 243

XML

FAIR VALUE - QUANTITATIVE INFORMATION ABOUT LEVEL 3 FAIR VALUE MEASURMENTS (NONRECURRING) (Details) - Nonrecurring $ in Thousands	Sep. 30, 2022 USD ($)	Jun. 30, 2022 USD ($)
Fair Value Inputs, Equity, Quantitative Information [Line Items]
Other real estate owned and foreclosed assets, fair value	$ 5,302	$ 798
Single family real estate
Fair Value Inputs, Equity, Quantitative Information [Line Items]
Other real estate owned and foreclosed assets, fair value	4,534
Autos and RVs
Fair Value Inputs, Equity, Quantitative Information [Line Items]
Other real estate owned and foreclosed assets, fair value	768	798
Level 3
Fair Value Inputs, Equity, Quantitative Information [Line Items]
Other real estate owned and foreclosed assets, fair value	5,302	798
Level 3 | Single family real estate
Fair Value Inputs, Equity, Quantitative Information [Line Items]
Other real estate owned and foreclosed assets, fair value	$ 4,534
Level 3 | Single family real estate | Adjustment for differences between the comparable sales | Minimum
Fair Value Inputs, Equity, Quantitative Information [Line Items]
Other real estate owned, measurement input	0.035
Level 3 | Single family real estate | Adjustment for differences between the comparable sales | Maximum
Fair Value Inputs, Equity, Quantitative Information [Line Items]
Other real estate owned, measurement input	0.121
Level 3 | Single family real estate | Adjustment for differences between the comparable sales | Weighted Average
Fair Value Inputs, Equity, Quantitative Information [Line Items]
Other real estate owned, measurement input	0.041
Level 3 | Autos and RVs
Fair Value Inputs, Equity, Quantitative Information [Line Items]
Other real estate owned and foreclosed assets, fair value	$ 768	$ 798
Level 3 | Autos and RVs | Adjustment for differences between the comparable sales | Minimum
Fair Value Inputs, Equity, Quantitative Information [Line Items]
Other repossessed assets, measurement Input	(0.137)	(0.172)
Level 3 | Autos and RVs | Adjustment for differences between the comparable sales | Maximum
Fair Value Inputs, Equity, Quantitative Information [Line Items]
Other repossessed assets, measurement Input	(0.005)	0.046
Level 3 | Autos and RVs | Adjustment for differences between the comparable sales | Weighted Average
Fair Value Inputs, Equity, Quantitative Information [Line Items]
Other repossessed assets, measurement Input	(0.034)	(0.075)

XML

FAIR VALUE - ESTIMATED FAIR VALUES OF FINANCIAL INSTRUMENTS AT PERIOD-END (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Jun. 30, 2022
Financial assets:
Securities — trading	$ 75	$ 1,758
Securities — available-for-sale	257,634	262,518
Loans held for sale, at fair value	9,463	4,973
Loans held for sale, lower of cost or fair value	10,476	10,938
Securities borrowed	87,622	338,980
Financial liabilities:
Securities loaned	206,889	474,400
Carrying Amount
Financial assets:
Cash and cash equivalents	1,698,048	1,574,699
Securities — trading	75	1,758
Securities — available-for-sale	257,634	262,518
Loans held for sale, at fair value	9,463	4,973
Loans held for sale, lower of cost or fair value	10,476	10,938
Loans held for investment—net	15,211,573	14,091,061
Securities borrowed	87,622	338,980
Customer, broker-dealer and clearing receivables	410,842	417,417
Mortgage servicing rights	26,373	25,213
Financial liabilities:
Total deposits	15,176,631	13,946,422
Advances from the Federal Home Loan Bank	112,500	117,500
Borrowings, subordinated notes and debentures	425,818	445,244
Securities loaned	206,889	474,400
Customer, broker-dealer and clearing payables	500,584	511,654
Total Fair Value
Financial assets:
Cash and cash equivalents	1,698,048	1,574,699
Securities — trading	75	1,758
Securities — available-for-sale	257,634	262,518
Loans held for sale, at fair value	9,463	4,973
Loans held for sale, lower of cost or fair value	10,489	10,985
Loans held for investment—net	14,893,655	14,015,157
Securities borrowed	86,728	329,963
Customer, broker-dealer and clearing receivables	411,171	414,383
Mortgage servicing rights	26,373	25,213
Financial liabilities:
Total deposits	13,373,113	12,812,512
Advances from the Federal Home Loan Bank	105,387	117,500
Borrowings, subordinated notes and debentures	385,257	416,947
Securities loaned	206,910	473,831
Customer, broker-dealer and clearing payables	500,584	471,859
Level 1
Financial assets:
Cash and cash equivalents	1,698,048	1,574,699
Securities — trading	0	0
Securities — available-for-sale	0	0
Loans held for sale, at fair value	0	0
Loans held for sale, lower of cost or fair value	0	0
Loans held for investment—net	0	0
Securities borrowed	0	0
Customer, broker-dealer and clearing receivables	0	0
Mortgage servicing rights	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
Level 2
Financial assets:
Cash and cash equivalents	0	0
Securities — trading	75	1,758
Securities — available-for-sale	73,622	75,704
Loans held for sale, at fair value	9,463	4,973
Loans held for sale, lower of cost or fair value	0	0
Loans held for investment—net	0	0
Securities borrowed	0	0
Customer, broker-dealer and clearing receivables	0	0
Mortgage servicing rights	0	0
Financial liabilities:
Total deposits	13,373,113	12,812,512
Advances from the Federal Home Loan Bank	105,387	117,500
Borrowings, subordinated notes and debentures	385,257	416,947
Securities loaned	0	0
Customer, broker-dealer and clearing payables	0	0
Level 3
Financial assets:
Cash and cash equivalents	0	0
Securities — trading	0	0
Securities — available-for-sale	184,012	186,814
Loans held for sale, at fair value	0	0
Loans held for sale, lower of cost or fair value	10,489	10,985
Loans held for investment—net	14,893,655	14,015,157
Securities borrowed	86,728	329,963
Customer, broker-dealer and clearing receivables	411,171	414,383
Mortgage servicing rights	26,373	25,213
Financial liabilities:
Total deposits	0	0
Advances from the Federal Home Loan Bank	0	0
Borrowings, subordinated notes and debentures	0	0
Securities loaned	206,910	473,831
Customer, broker-dealer and clearing payables	$ 500,584	$ 471,859

XML

SECURITIES - AMORTIZED COST, CARRYING AMOUNT AND FAIR VALUE DISCLOSURES (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Jun. 30, 2022
Debt Securities, Available-for-sale [Line Items]
Securities Trading - Fair Value	$ 75	$ 1,758
Amortized Cost	265,034	265,867
Unrealized Gains	1,301	1,972
Unrealized Losses	(8,701)	(5,321)
Fair Value	257,634	262,518
U.S. agencies
Debt Securities, Available-for-sale [Line Items]
Securities Trading - Fair Value	0	0
Amortized Cost	27,187	27,722
Unrealized Gains	1	9
Unrealized Losses	(3,425)	(2,406)
Fair Value	23,763	25,325
Non-agency
Debt Securities, Available-for-sale [Line Items]
Securities Trading - Fair Value	0	0
Amortized Cost	187,287	187,616
Unrealized Gains	1,300	1,832
Unrealized Losses	(4,575)	(2,634)
Fair Value	184,012	186,814
Total MBS
Debt Securities, Available-for-sale [Line Items]
Securities Trading - Fair Value	0	0
Amortized Cost	214,474	215,338
Unrealized Gains	1,301	1,841
Unrealized Losses	(8,000)	(5,040)
Fair Value	207,775	212,139
Municipal debt
Debt Securities, Available-for-sale [Line Items]
Securities Trading - Fair Value	75	1,758
Amortized Cost	3,560	3,529
Unrealized Gains	0	0
Unrealized Losses	(565)	(281)
Fair Value	2,995	3,248
Asset-backed securities and structured notes
Debt Securities, Available-for-sale [Line Items]
Securities Trading - Fair Value	0	0
Amortized Cost	47,000	47,000
Unrealized Gains	0	131
Unrealized Losses	(136)	0
Fair Value	46,864	47,131
Total Non-MBS
Debt Securities, Available-for-sale [Line Items]
Securities Trading - Fair Value	75	1,758
Amortized Cost	50,560	50,529
Unrealized Gains	0	131
Unrealized Losses	(701)	(281)
Fair Value	$ 49,859	$ 50,379

XML

SECURITIES - NARRATIVE (Details)	3 Months Ended
	Sep. 30, 2022 USD ($) security	Sep. 30, 2021 security	Jun. 30, 2022 USD ($) security
Debt Securities, Available-for-sale [Line Items]
Available-for-sale	$ 257,634,000		$ 262,518,000
Number of available-for-sale securities in continuous loss position for a period of more than 12 months | security	16		14
Number of available-for-sale securities in continuous loss position for a period of less than 12 months | security	37		25
Number of available-for-sale securities sold | security		0
Asset Pledged as Collateral
Debt Securities, Available-for-sale [Line Items]
Available-for-sale securities pledged as collateral	$ 1,100,000		$ 1,200,000
Non-agency
Debt Securities, Available-for-sale [Line Items]
Available-for-sale	$ 184,012,000		$ 186,814,000
Number of non-agency RMBS | security	1
Carrying amount of securities with cumulative credit losses	$ 1,900,000
Cumulative credit losses	800,000
Credit losses recognized in earnings	$ 0
RMBS, Super Senior Securities
Debt Securities, Available-for-sale [Line Items]
Available-for-sale, number of securities | security	17

XML

SECURITIES - SCHEDULE OF UNREALIZED LOSS ON INVESTMENTS (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Jun. 30, 2022
Fair Value
Less Than 12 Months	$ 192,614	$ 112,490
More Than 12 Months	13,009	12,848
Total	205,623	125,338
Gross Unrealized Losses
Less Than 12 Months	(6,678)	(3,823)
More Than 12 Months	(2,023)	(1,498)
Total	(8,701)	(5,321)
U.S. agencies
Fair Value
Less Than 12 Months	15,070	16,446
More Than 12 Months	8,493	8,097
Total	23,563	24,543
Gross Unrealized Losses
Less Than 12 Months	(1,882)	(1,338)
More Than 12 Months	(1,543)	(1,068)
Total	(3,425)	(2,406)
Non-agency
Fair Value
Less Than 12 Months	127,685	92,796
More Than 12 Months	4,516	4,751
Total	132,201	97,547
Gross Unrealized Losses
Less Than 12 Months	(4,095)	(2,204)
More Than 12 Months	(480)	(430)
Total	(4,575)	(2,634)
Total MBS
Fair Value
Less Than 12 Months	142,755	109,242
More Than 12 Months	13,009	12,848
Total	155,764	122,090
Gross Unrealized Losses
Less Than 12 Months	(5,977)	(3,542)
More Than 12 Months	(2,023)	(1,498)
Total	(8,000)	(5,040)
Municipal debt
Fair Value
Less Than 12 Months	2,995	3,248
More Than 12 Months	0	0
Total	2,995	3,248
Gross Unrealized Losses
Less Than 12 Months	(565)	(281)
More Than 12 Months	0	0
Total	(565)	(281)
Asset-backed securities and structured notes
Fair Value
Less Than 12 Months	46,864	0
More Than 12 Months	0	0
Total	46,864	0
Gross Unrealized Losses
Less Than 12 Months	(136)	0
More Than 12 Months	0	0
Total	(136)	0
Total Non-MBS
Fair Value
Less Than 12 Months	49,859	3,248
More Than 12 Months	0	0
Total	49,859	3,248
Gross Unrealized Losses
Less Than 12 Months	(701)	(281)
More Than 12 Months	0	0
Total	$ (701)	$ (281)

XML

SECURITIES - UNREALIZED GAIN (LOSS) ON INVESTMENTS (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Jun. 30, 2022
Investments, Debt and Equity Securities [Abstract]
Available-for-sale debt securities—net unrealized gains (losses)	$ (7,400)	$ (3,349)
Available-for-sale debt securities—non-credit related losses	(845)	(845)
Subtotal	(8,245)	(4,194)
Tax benefit (expense)	2,475	1,261
Net unrealized gain (loss) on investment securities in accumulated other comprehensive income (loss)	$ (5,770)	$ (2,933)

XML

SECURITIES - INVESTMENTS CLASSIFIED BY CONTRACTUAL MATURITY DATE (Details) $ in Thousands	Sep. 30, 2022 USD ($)
Available-for-sale
Total Amount	$ 257,634
Due Within One Year	41,010
Due After One but within Five Years	203,814
Due After Five but within Ten Years	7,807
Due After Ten Years	$ 5,003
Available-for-Sale, Yield
Total Amount (percent)	5.57%
Due Within One Year (percent)	7.89%
Due After One but within Five Years (percent)	5.26%
Due After Five but within Ten Years (percent)	3.17%
Due After Ten Years (percent)	3.07%
Available-for-sale—Amortized Cost
Total Amount	$ 265,034
Due Within One Year	41,458
Due After One but within Five Years	208,957
Due After Five but within Ten Years	8,789
Due After Ten Years	$ 5,830
Available-for-Sale, Amortized Cost, Percentage Yield
Total Amount (percent)	5.55%
Due Within One Year (percent)	7.89%
Due After One but within Five Years (percent)	5.26%
Due After Five but within Ten Years (percent)	3.17%
Due After Ten Years (percent)	3.07%
Fair Value
Available-for-sale
Total Amount	$ 257,634
Due Within One Year	41,010
Due After One but within Five Years	203,814
Due After Five but within Ten Years	7,807
Due After Ten Years	$ 5,003
Available-for-Sale, Yield
Total Amount (percent)	5.57%
Due Within One Year (percent)	7.89%
Due After One but within Five Years (percent)	5.26%
Due After Five but within Ten Years (percent)	3.17%
Due After Ten Years (percent)	3.07%
U.S. agencies
Available-for-sale
Total Amount	$ 27,187
Due Within One Year	5,018
Due After One but within Five Years	13,175
Due After Five but within Ten Years	7,063
Due After Ten Years	$ 1,931
Available-for-Sale, Yield
Total Amount (percent)	1.79%
Due Within One Year (percent)	1.83%
Due After One but within Five Years (percent)	1.79%
Due After Five but within Ten Years (percent)	1.76%
Due After Ten Years (percent)	1.86%
Non-agency
Available-for-sale
Total Amount	$ 187,287
Due Within One Year	1,285
Due After One but within Five Years	183,937
Due After Five but within Ten Years	1,726
Due After Ten Years	$ 339
Available-for-Sale, Yield
Total Amount (percent)	5.41%
Due Within One Year (percent)	16.89%
Due After One but within Five Years (percent)	5.30%
Due After Five but within Ten Years (percent)	8.90%
Due After Ten Years (percent)	4.63%
Total MBS
Available-for-sale
Total Amount	$ 214,474
Due Within One Year	6,303
Due After One but within Five Years	197,112
Due After Five but within Ten Years	8,789
Due After Ten Years	$ 2,270
Available-for-Sale, Yield
Total Amount (percent)	4.95%
Due Within One Year (percent)	4.90%
Due After One but within Five Years (percent)	5.07%
Due After Five but within Ten Years (percent)	3.17%
Due After Ten Years (percent)	2.28%
Municipal
Available-for-sale
Total Amount	$ 3,560
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	$ 3,560
Available-for-Sale, Yield
Total Amount (percent)	3.57%
Due Within One Year (percent)	0.00%
Due After One but within Five Years (percent)	0.00%
Due After Five but within Ten Years (percent)	0.00%
Due After Ten Years (percent)	3.57%
Asset-backed securities and structured notes
Available-for-sale
Total Amount	$ 47,000
Due Within One Year	35,155
Due After One but within Five Years	11,845
Due After Five but within Ten Years	0
Due After Ten Years	$ 0
Available-for-Sale, Yield
Total Amount (percent)	8.43%
Due Within One Year (percent)	8.43%
Due After One but within Five Years (percent)	8.43%
Due After Five but within Ten Years (percent)	0.00%
Due After Ten Years (percent)	0.00%
Total Non-MBS
Available-for-sale
Total Amount	$ 50,560
Due Within One Year	35,155
Due After One but within Five Years	11,845
Due After Five but within Ten Years	0
Due After Ten Years	$ 3,560
Available-for-Sale, Yield
Total Amount (percent)	8.09%
Due Within One Year (percent)	8.43%
Due After One but within Five Years (percent)	8.43%
Due After Five but within Ten Years (percent)	0.00%
Due After Ten Years (percent)	3.57%

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LOANS & ALLOWANCE FOR CREDIT LOSSES - LOAN PORTFOLIO COMPOSITION (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Jun. 30, 2022	Sep. 30, 2021	Jun. 30, 2021
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total gross loans and leases	$ 15,384,326	$ 14,253,676
Allowance for credit losses - loans	(155,472)	(148,617)	$ (136,778)	$ (132,958)
Unaccreted premiums (discounts) and loan and lease fees	(17,281)	(13,998)
Total net loans and leases	15,211,573	14,091,061
Single Family - Mortgage & Warehouse
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total gross loans and leases	4,009,809	3,988,462
Allowance for credit losses - loans	(18,039)	(19,670)	(25,329)	(26,604)
Multifamily and Commercial Mortgage
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total gross loans and leases	2,964,982	2,877,680
Allowance for credit losses - loans	(14,649)	(14,655)	(13,359)	(13,146)
Commercial Real Estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total gross loans and leases	5,523,895	4,781,044
Allowance for credit losses - loans	(73,776)	(69,339)	(65,223)	(57,928)
Commercial & Industrial - Non-RE
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total gross loans and leases	2,244,342	2,028,128
Allowance for credit losses - loans	(34,383)	(30,808)	(22,519)	(28,460)
Auto & Consumer
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total gross loans and leases	631,344	567,228
Allowance for credit losses - loans	(14,595)	(14,114)	(10,007)	(6,519)
Other
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total gross loans and leases	9,954	11,134
Allowance for credit losses - loans	$ (30)	$ (31)	$ (341)	$ (301)

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LOANS & ALLOWANCE FOR CREDIT LOSSES - ALLOWANCE FOR LOAN LOSS BY PORTFOLIO CLASS (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Balance, beginning of period	$ 148,617	$ 132,958
Provision (benefit) for credit losses - loans	8,750	4,000
Charge-offs	(2,366)	(716)
Recoveries	471	536
Balance, end of period	155,472	136,778
Single Family - Mortgage & Warehouse
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Balance, beginning of period	19,670	26,604
Provision (benefit) for credit losses - loans	(1,642)	(1,351)
Charge-offs	(4)	0
Recoveries	15	76
Balance, end of period	18,039	25,329
Multifamily and Commercial Mortgage
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Balance, beginning of period	14,655	13,146
Provision (benefit) for credit losses - loans	(6)	36
Charge-offs	0	0
Recoveries	0	177
Balance, end of period	14,649	13,359
Commercial Real Estate
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Balance, beginning of period	69,339	57,928
Provision (benefit) for credit losses - loans	4,437	7,295
Charge-offs	0	0
Recoveries	0	0
Balance, end of period	73,776	65,223
Commercial & Industrial - Non-RE
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Balance, beginning of period	30,808	28,460
Provision (benefit) for credit losses - loans	3,557	(5,646)
Charge-offs	0	(322)
Recoveries	18	27
Balance, end of period	34,383	22,519
Auto & Consumer
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Balance, beginning of period	14,114	6,519
Provision (benefit) for credit losses - loans	2,405	3,626
Charge-offs	(2,362)	(394)
Recoveries	438	256
Balance, end of period	14,595	10,007
Other
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Balance, beginning of period	31	301
Provision (benefit) for credit losses - loans	(1)	40
Charge-offs	0	0
Recoveries	0	0
Balance, end of period	$ 30	$ 341

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LOANS & ALLOWANCE FOR CREDIT LOSSES - NONACCRUAL LOANS (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Jun. 30, 2022
Financing Receivable, Nonaccrual [Line Items]
Financing receivable, nonaccrual	$ 120,481	$ 118,194
Nonaccrual loans to total loans (as a percent)	0.78%	0.83%
Single Family - Mortgage & Warehouse
Financing Receivable, Nonaccrual [Line Items]
Financing receivable, nonaccrual	$ 65,687	$ 66,424
Multifamily and Commercial Mortgage
Financing Receivable, Nonaccrual [Line Items]
Financing receivable, nonaccrual	35,837	33,410
Commercial Real Estate
Financing Receivable, Nonaccrual [Line Items]
Financing receivable, nonaccrual	14,852	14,852
Commercial & Industrial - Non-RE
Financing Receivable, Nonaccrual [Line Items]
Financing receivable, nonaccrual	2,989	2,989
Auto & Consumer
Financing Receivable, Nonaccrual [Line Items]
Financing receivable, nonaccrual	990	439
Other
Financing Receivable, Nonaccrual [Line Items]
Financing receivable, nonaccrual	$ 126	$ 80

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LOANS & ALLOWANCE FOR CREDIT LOSSES - NARRATIVE (Details)	3 Months Ended
	Sep. 30, 2022 USD ($) loan	Sep. 30, 2021 USD ($)	Jun. 30, 2022 USD ($) loan
Financing Receivable, Impaired [Line Items]
Mortgage loans in process of foreclosure, amount	$ 20,400,000		$ 20,700,000
Nonaccrual
Financing Receivable, Impaired [Line Items]
Interest income recognized on nonaccrual loans	$ 0	$ 0
Ratio of nonaccrual loans and leases considered TDRs	1.13%		0.55%
Period over which borrowers can make timely payments after TDR considered non-performing (in months)		6 months
Nonaccrual | Single Family - Mortgage & Warehouse
Financing Receivable, Impaired [Line Items]
Ratio of nonaccrual loans and leases that are single family mortgage	54.52%
Performing
Financing Receivable, Impaired [Line Items]
Number or TDRs classified as performing | loan	0		0

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LOANS & ALLOWANCE FOR CREDIT LOSSES - UNPAID PRINCIPAL BALANCE FOR PERFORMING AND NONACCRUAL (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Jun. 30, 2022
Financing Receivable, Credit Quality Indicator [Line Items]
Total	$ 15,384,326	$ 14,253,676
Single Family - Mortgage & Warehouse
Financing Receivable, Credit Quality Indicator [Line Items]
Total	4,009,809	3,988,462
Multifamily and Commercial Mortgage
Financing Receivable, Credit Quality Indicator [Line Items]
Total	2,964,982	2,877,680
Commercial Real Estate
Financing Receivable, Credit Quality Indicator [Line Items]
Total	5,523,895	4,781,044
Commercial & Industrial - Non-RE
Financing Receivable, Credit Quality Indicator [Line Items]
Total	2,244,342	2,028,128
Auto & Consumer
Financing Receivable, Credit Quality Indicator [Line Items]
Total	631,344	567,228
Other
Financing Receivable, Credit Quality Indicator [Line Items]
Total	9,954	11,134
Performing
Financing Receivable, Credit Quality Indicator [Line Items]
Total	15,263,845	14,135,482
Performing | Single Family - Mortgage & Warehouse
Financing Receivable, Credit Quality Indicator [Line Items]
Total	3,944,122	3,922,038
Performing | Multifamily and Commercial Mortgage
Financing Receivable, Credit Quality Indicator [Line Items]
Total	2,929,145	2,844,270
Performing | Commercial Real Estate
Financing Receivable, Credit Quality Indicator [Line Items]
Total	5,509,043	4,766,192
Performing | Commercial & Industrial - Non-RE
Financing Receivable, Credit Quality Indicator [Line Items]
Total	2,241,353	2,025,139
Performing | Auto & Consumer
Financing Receivable, Credit Quality Indicator [Line Items]
Total	630,354	566,789
Performing | Other
Financing Receivable, Credit Quality Indicator [Line Items]
Total	9,828	11,054
Nonaccrual
Financing Receivable, Credit Quality Indicator [Line Items]
Total	120,481	118,194
Nonaccrual | Single Family - Mortgage & Warehouse
Financing Receivable, Credit Quality Indicator [Line Items]
Total	65,687	66,424
Nonaccrual | Multifamily and Commercial Mortgage
Financing Receivable, Credit Quality Indicator [Line Items]
Total	35,837	33,410
Nonaccrual | Commercial Real Estate
Financing Receivable, Credit Quality Indicator [Line Items]
Total	14,852	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	990	439
Nonaccrual | Other
Financing Receivable, Credit Quality Indicator [Line Items]
Total	$ 126	$ 80

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LOANS & ALLOWANCE FOR CREDIT LOSSES - LOANS BY AMORTIZED COST BASIS BY YEAR OF ORIGINATION AND CREDIT QUALITY INDICATOR (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Jun. 30, 2022
Financing Receivable, Credit Quality Indicator [Line Items]
2023 (2022 prior year)	$ 1,185,800	$ 5,761,527
2022 (2021 prior year)	5,799,268	2,409,989
2021 (2020 prior year)	2,318,977	1,337,143
2020 (2019 prior year)	1,216,767	914,995
2019 (2018 prior year)	798,348	610,690
Prior	1,430,262	946,625
Revolving Loans	2,634,904	2,272,707
Total	$ 15,384,326	$ 14,253,676
As a % of total gross loans
2023 (2022 prior year)	7.71%	40.42%
2022 (2021 prior year)	37.70%	16.91%
2021 (2020 prior year)	15.07%	9.38%
2020 (2019 prior year)	7.91%	6.42%
2019 (2018 prior year)	5.19%	4.28%
Prior	9.30%	6.64%
Revolving Loans	17.13%	15.95%
Total	100.00%	100.00%
Single Family - Mortgage & Warehouse
Financing Receivable, Credit Quality Indicator [Line Items]
2023 (2022 prior year)	$ 309,401	$ 1,484,027
2022 (2021 prior year)	1,430,959	602,342
2021 (2020 prior year)	582,715	411,430
2020 (2019 prior year)	390,318	324,911
2019 (2018 prior year)	298,640	289,328
Prior	821,026	595,862
Revolving Loans	176,750	280,562
Total	4,009,809	3,988,462
Multifamily and Commercial Mortgage
Financing Receivable, Credit Quality Indicator [Line Items]
2023 (2022 prior year)	187,856	1,001,019
2022 (2021 prior year)	1,017,793	575,258
2021 (2020 prior year)	551,077	464,124
2020 (2019 prior year)	436,807	269,313
2019 (2018 prior year)	257,771	226,856
Prior	513,678	341,110
Revolving Loans	0	0
Total	2,964,982	2,877,680
Commercial Real Estate
Financing Receivable, Credit Quality Indicator [Line Items]
2023 (2022 prior year)	509,209	2,482,366
2022 (2021 prior year)	2,613,562	1,023,238
2021 (2020 prior year)	1,047,895	383,135
2020 (2019 prior year)	324,519	221,330
2019 (2018 prior year)	199,287	67,265
Prior	67,266	0
Revolving Loans	762,157	603,710
Total	5,523,895	4,781,044
Commercial & Industrial - Non-RE
Financing Receivable, Credit Quality Indicator [Line Items]
2023 (2022 prior year)	63,185	438,229
2022 (2021 prior year)	405,217	94,585
2021 (2020 prior year)	35,057	34,783
2020 (2019 prior year)	27,508	62,118
2019 (2018 prior year)	10,858	9,978
Prior	6,520	0
Revolving Loans	1,695,997	1,388,435
Total	2,244,342	2,028,128
Auto & Consumer
Financing Receivable, Credit Quality Indicator [Line Items]
2023 (2022 prior year)	115,451	352,829
2022 (2021 prior year)	329,737	108,381
2021 (2020 prior year)	96,628	43,625
2020 (2019 prior year)	37,615	37,323
2019 (2018 prior year)	31,792	16,172
Prior	20,121	8,898
Revolving Loans	0	0
Total	631,344	567,228
Other
Financing Receivable, Credit Quality Indicator [Line Items]
2023 (2022 prior year)	698	3,057
2022 (2021 prior year)	2,000	6,185
2021 (2020 prior year)	5,605	46
2020 (2019 prior year)	0	0
2019 (2018 prior year)	0	1,091
Prior	1,651	755
Revolving Loans	0	0
Total	9,954	11,134
Pass
Financing Receivable, Credit Quality Indicator [Line Items]
2023 (2022 prior year)	1,185,800	5,756,965
2022 (2021 prior year)	5,779,391	2,340,720
2021 (2020 prior year)	2,209,153	1,259,387
2020 (2019 prior year)	1,152,476	848,900
2019 (2018 prior year)	750,648	554,060
Prior	1,307,625	874,328
Revolving Loans	2,601,516	2,232,772
Total	14,986,609	13,867,132
Pass | Single Family - Mortgage & Warehouse
Financing Receivable, Credit Quality Indicator [Line Items]
2023 (2022 prior year)	309,401	1,484,027
2022 (2021 prior year)	1,427,758	600,054
2021 (2020 prior year)	579,544	402,712
2020 (2019 prior year)	380,330	303,999
2019 (2018 prior year)	277,775	279,248
Prior	767,417	548,703
Revolving Loans	168,798	241,925
Total	3,911,023	3,860,668
Pass | Multifamily and Commercial Mortgage
Financing Receivable, Credit Quality Indicator [Line Items]
2023 (2022 prior year)	187,856	999,819
2022 (2021 prior year)	1,004,942	569,486
2021 (2020 prior year)	541,338	429,247
2020 (2019 prior year)	403,340	259,161
2019 (2018 prior year)	247,670	219,548
Prior	483,365	316,013
Revolving Loans	0	0
Total	2,868,511	2,793,274
Pass | Commercial Real Estate
Financing Receivable, Credit Quality Indicator [Line Items]
2023 (2022 prior year)	509,209	2,482,366
2022 (2021 prior year)	2,613,562	990,887
2021 (2020 prior year)	953,785	358,422
2020 (2019 prior year)	312,381	186,800
2019 (2018 prior year)	182,800	28,758
Prior	28,759	0
Revolving Loans	760,859	602,412
Total	5,361,355	4,649,645
Pass | Commercial & Industrial - Non-RE
Financing Receivable, Credit Quality Indicator [Line Items]
2023 (2022 prior year)	63,185	435,228
2022 (2021 prior year)	402,229	66,226
2021 (2020 prior year)	35,057	25,629
2020 (2019 prior year)	19,008	61,932
2019 (2018 prior year)	10,858	9,268
Prior	6,520	0
Revolving Loans	1,671,859	1,388,435
Total	2,208,716	1,986,718
Pass | Auto & Consumer
Financing Receivable, Credit Quality Indicator [Line Items]
2023 (2022 prior year)	115,451	352,468
2022 (2021 prior year)	328,900	107,882
2021 (2020 prior year)	96,119	43,377
2020 (2019 prior year)	37,417	37,008
2019 (2018 prior year)	31,545	16,147
Prior	20,039	8,891
Revolving Loans	0	0
Total	629,471	565,773
Pass | Other
Financing Receivable, Credit Quality Indicator [Line Items]
2023 (2022 prior year)	698	3,057
2022 (2021 prior year)	2,000	6,185
2021 (2020 prior year)	3,310	0
2020 (2019 prior year)	0	0
2019 (2018 prior year)	0	1,091
Prior	1,525	721
Revolving Loans	0	0
Total	7,533	11,054
Special Mention
Financing Receivable, Credit Quality Indicator [Line Items]
2023 (2022 prior year)	0	1,417
2022 (2021 prior year)	10,034	32,539
2021 (2020 prior year)	62,313	17,486
2020 (2019 prior year)	17,685	19,827
2019 (2018 prior year)	6,450	19,835
Prior	33,129	11,940
Revolving Loans	7,532	38,637
Total	137,143	141,681
Special Mention | Single Family - Mortgage & Warehouse
Financing Receivable, Credit Quality Indicator [Line Items]
2023 (2022 prior year)	0	0
2022 (2021 prior year)	0	0
2021 (2020 prior year)	0	4,790
2020 (2019 prior year)	4,971	2,505
2019 (2018 prior year)	2,165	4,125
Prior	18,091	10,971
Revolving Loans	7,532	38,637
Total	32,759	61,028
Special Mention | Multifamily and Commercial Mortgage
Financing Receivable, Credit Quality Indicator [Line Items]
2023 (2022 prior year)	0	1,200
2022 (2021 prior year)	9,706	0
2021 (2020 prior year)	3,980	534
2020 (2019 prior year)	532	539
2019 (2018 prior year)	3,269	0
Prior	0	968
Revolving Loans	0	0
Total	17,487	3,241
Special Mention | Commercial Real Estate
Financing Receivable, Credit Quality Indicator [Line Items]
2023 (2022 prior year)	0	0
2022 (2021 prior year)	0	32,351
2021 (2020 prior year)	55,820	12,138
2020 (2019 prior year)	12,138	16,487
2019 (2018 prior year)	1,000	15,000
Prior	15,000	0
Revolving Loans	0	0
Total	83,958	75,976
Special Mention | Commercial & Industrial - Non-RE
Financing Receivable, Credit Quality Indicator [Line Items]
2023 (2022 prior year)	0	13
2022 (2021 prior year)	0	0
2021 (2020 prior year)	0	0
2020 (2019 prior year)	0	186
2019 (2018 prior year)	0	710
Prior	0	0
Revolving Loans	0	0
Total	0	909
Special Mention | Auto & Consumer
Financing Receivable, Credit Quality Indicator [Line Items]
2023 (2022 prior year)	0	204
2022 (2021 prior year)	328	188
2021 (2020 prior year)	218	24
2020 (2019 prior year)	44	110
2019 (2018 prior year)	16	0
Prior	38	1
Revolving Loans	0	0
Total	644	527
Special Mention | Other
Financing Receivable, Credit Quality Indicator [Line Items]
2023 (2022 prior year)	0	0
2022 (2021 prior year)	0	0
2021 (2020 prior year)	2,295	0
2020 (2019 prior year)	0	0
2019 (2018 prior year)	0	0
Prior	0	0
Revolving Loans	0	0
Total	2,295	0
Substandard
Financing Receivable, Credit Quality Indicator [Line Items]
2023 (2022 prior year)	0	3,145
2022 (2021 prior year)	9,843	36,730
2021 (2020 prior year)	47,511	60,270
2020 (2019 prior year)	46,606	46,268
2019 (2018 prior year)	41,250	36,795
Prior	89,508	60,357
Revolving Loans	25,856	1,298
Total	260,574	244,863
Substandard | Single Family - Mortgage & Warehouse
Financing Receivable, Credit Quality Indicator [Line Items]
2023 (2022 prior year)	0	0
2022 (2021 prior year)	3,201	2,288
2021 (2020 prior year)	3,171	3,928
2020 (2019 prior year)	5,017	18,407
2019 (2018 prior year)	18,700	5,955
Prior	35,518	36,188
Revolving Loans	420	0
Total	66,027	66,766
Substandard | Multifamily and Commercial Mortgage
Financing Receivable, Credit Quality Indicator [Line Items]
2023 (2022 prior year)	0	0
2022 (2021 prior year)	3,145	5,772
2021 (2020 prior year)	5,759	34,343
2020 (2019 prior year)	32,935	9,613
2019 (2018 prior year)	6,832	7,308
Prior	30,313	24,129
Revolving Loans	0	0
Total	78,984	81,165
Substandard | Commercial Real Estate
Financing Receivable, Credit Quality Indicator [Line Items]
2023 (2022 prior year)	0	0
2022 (2021 prior year)	0	0
2021 (2020 prior year)	38,290	12,575
2020 (2019 prior year)	0	18,043
2019 (2018 prior year)	15,487	23,507
Prior	23,507	0
Revolving Loans	1,298	1,298
Total	78,582	55,423
Substandard | Commercial & Industrial - Non-RE
Financing Receivable, Credit Quality Indicator [Line Items]
2023 (2022 prior year)	0	2,988
2022 (2021 prior year)	2,988	28,359
2021 (2020 prior year)	0	9,154
2020 (2019 prior year)	8,500	0
2019 (2018 prior year)	0	0
Prior	0	0
Revolving Loans	24,138	0
Total	35,626	40,501
Substandard | Auto & Consumer
Financing Receivable, Credit Quality Indicator [Line Items]
2023 (2022 prior year)	0	157
2022 (2021 prior year)	509	311
2021 (2020 prior year)	291	224
2020 (2019 prior year)	154	205
2019 (2018 prior year)	231	25
Prior	44	6
Revolving Loans	0	0
Total	1,229	928
Substandard | Other
Financing Receivable, Credit Quality Indicator [Line Items]
2023 (2022 prior year)	0	0
2022 (2021 prior year)	0	0
2021 (2020 prior year)	0	46
2020 (2019 prior year)	0	0
2019 (2018 prior year)	0	0
Prior	126	34
Revolving Loans	0	0
Total	126	80
Doubtful
Financing Receivable, Credit Quality Indicator [Line Items]
2023 (2022 prior year)	0	0
2022 (2021 prior year)	0	0
2021 (2020 prior year)	0	0
2020 (2019 prior year)	0	0
2019 (2018 prior year)	0	0
Prior	0	0
Revolving Loans	0	0
Total	0	0
Doubtful | Single Family - Mortgage & Warehouse
Financing Receivable, Credit Quality Indicator [Line Items]
2023 (2022 prior year)	0	0
2022 (2021 prior year)	0	0
2021 (2020 prior year)	0	0
2020 (2019 prior year)	0	0
2019 (2018 prior year)	0	0
Prior	0	0
Revolving Loans	0	0
Total	0	0
Doubtful | Multifamily and Commercial Mortgage
Financing Receivable, Credit Quality Indicator [Line Items]
2023 (2022 prior year)	0	0
2022 (2021 prior year)	0	0
2021 (2020 prior year)	0	0
2020 (2019 prior year)	0	0
2019 (2018 prior year)	0	0
Prior	0	0
Revolving Loans	0	0
Total	0	0
Doubtful | Commercial Real Estate
Financing Receivable, Credit Quality Indicator [Line Items]
2023 (2022 prior year)	0	0
2022 (2021 prior year)	0	0
2021 (2020 prior year)	0	0
2020 (2019 prior year)	0	0
2019 (2018 prior year)	0	0
Prior	0	0
Revolving Loans	0	0
Total	0	0
Doubtful | Commercial & Industrial - Non-RE
Financing Receivable, Credit Quality Indicator [Line Items]
2023 (2022 prior year)	0	0
2022 (2021 prior year)	0	0
2021 (2020 prior year)	0	0
2020 (2019 prior year)	0	0
2019 (2018 prior year)	0	0
Prior	0	0
Revolving Loans	0	0
Total	0	0
Doubtful | Auto & Consumer
Financing Receivable, Credit Quality Indicator [Line Items]
2023 (2022 prior year)	0	0
2022 (2021 prior year)	0	0
2021 (2020 prior year)	0	0
2020 (2019 prior year)	0	0
2019 (2018 prior year)	0	0
Prior	0	0
Revolving Loans	0	0
Total	0	0
Doubtful | Other
Financing Receivable, Credit Quality Indicator [Line Items]
2023 (2022 prior year)	0	0
2022 (2021 prior year)	0	0
2021 (2020 prior year)	0	0
2020 (2019 prior year)	0	0
2019 (2018 prior year)	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	Sep. 30, 2022	Jun. 30, 2022
Financing Receivable, Past Due [Line Items]
Total gross loans and leases	$ 15,384,326	$ 14,253,676
Single Family - Mortgage & Warehouse
Financing Receivable, Past Due [Line Items]
Total gross loans and leases	4,009,809	3,988,462
Multifamily and Commercial Mortgage
Financing Receivable, Past Due [Line Items]
Total gross loans and leases	2,964,982	2,877,680
Commercial Real Estate
Financing Receivable, Past Due [Line Items]
Total gross loans and leases	5,523,895	4,781,044
Commercial & Industrial - Non-RE
Financing Receivable, Past Due [Line Items]
Total gross loans and leases	2,244,342	2,028,128
Auto & Consumer
Financing Receivable, Past Due [Line Items]
Total gross loans and leases	631,344	567,228
Other
Financing Receivable, Past Due [Line Items]
Total gross loans and leases	9,954	11,134
30-59 Days Past Due
Financing Receivable, Past Due [Line Items]
Total gross loans and leases	$ 33,921	$ 19,900
As a % of total gross loans	0.22%	0.14%
30-59 Days Past Due | Single Family - Mortgage & Warehouse
Financing Receivable, Past Due [Line Items]
Total gross loans and leases	$ 13,021	$ 5,167
30-59 Days Past Due | Multifamily and Commercial Mortgage
Financing Receivable, Past Due [Line Items]
Total gross loans and leases	5,909	9,455
30-59 Days Past Due | Commercial Real Estate
Financing Receivable, Past Due [Line Items]
Total gross loans and leases	9,655	0
30-59 Days Past Due | Commercial & Industrial - Non-RE
Financing Receivable, Past Due [Line Items]
Total gross loans and leases	0	0
30-59 Days Past Due | Auto & Consumer
Financing Receivable, Past Due [Line Items]
Total gross loans and leases	4,174	4,865
30-59 Days Past Due | Other
Financing Receivable, Past Due [Line Items]
Total gross loans and leases	1,162	413
60-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Total gross loans and leases	$ 6,797	$ 19,494
As a % of total gross loans	0.05%	0.14%
60-89 Days Past Due | Single Family - Mortgage & Warehouse
Financing Receivable, Past Due [Line Items]
Total gross loans and leases	$ 5,494	$ 1,518
60-89 Days Past Due | Multifamily and Commercial Mortgage
Financing Receivable, Past Due [Line Items]
Total gross loans and leases	358	2,115
60-89 Days Past Due | Commercial Real Estate
Financing Receivable, Past Due [Line Items]
Total gross loans and leases	0	14,852
60-89 Days Past Due | Commercial & Industrial - Non-RE
Financing Receivable, Past Due [Line Items]
Total gross loans and leases	0	0
60-89 Days Past Due | Auto & Consumer
Financing Receivable, Past Due [Line Items]
Total gross loans and leases	945	1,009
60-89 Days Past Due | Other
Financing Receivable, Past Due [Line Items]
Total gross loans and leases	0	0
90+ Days Past Due
Financing Receivable, Past Due [Line Items]
Total gross loans and leases	$ 103,357	$ 90,501
As a % of total gross loans	0.67%	0.63%
90+ Days Past Due | Single Family - Mortgage & Warehouse
Financing Receivable, Past Due [Line Items]
Total gross loans and leases	$ 57,883	$ 63,286
90+ Days Past Due | Multifamily and Commercial Mortgage
Financing Receivable, Past Due [Line Items]
Total gross loans and leases	30,001	26,556
90+ Days Past Due | Commercial Real Estate
Financing Receivable, Past Due [Line Items]
Total gross loans and leases	14,852	0
90+ Days Past Due | Commercial & Industrial - Non-RE
Financing Receivable, Past Due [Line Items]
Total gross loans and leases	0	0
90+ Days Past Due | Auto & Consumer
Financing Receivable, Past Due [Line Items]
Total gross loans and leases	495	466
90+ Days Past Due | Other
Financing Receivable, Past Due [Line Items]
Total gross loans and leases	126	193
Total
Financing Receivable, Past Due [Line Items]
Total gross loans and leases	$ 144,075	$ 129,895
As a % of total gross loans	0.94%	0.91%
Total | Single Family - Mortgage & Warehouse
Financing Receivable, Past Due [Line Items]
Total gross loans and leases	$ 76,398	$ 69,971
Total | Multifamily and Commercial Mortgage
Financing Receivable, Past Due [Line Items]
Total gross loans and leases	36,268	38,126
Total | Commercial Real Estate
Financing Receivable, Past Due [Line Items]
Total gross loans and leases	24,507	14,852
Total | Commercial & Industrial - Non-RE
Financing Receivable, Past Due [Line Items]
Total gross loans and leases	0	0
Total | Auto & Consumer
Financing Receivable, Past Due [Line Items]
Total gross loans and leases	5,614	6,340
Total | Other
Financing Receivable, Past Due [Line Items]
Total gross loans and leases	$ 1,288	$ 606

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LOANS & ALLOWANCE FOR CREDIT LOSSES - ALLOWANCE FOR LOAN LOSS AND RESERVE FOR UNFUNDED LOAN COMMITMENTS (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Off-Balance-Sheet, Credit Loss, Liability [Roll Forward]
Balance, beginning of period	$ 10,973	$ 5,723
Provision for Credit Losses	0	2,000
Balance, end of period	$ 10,973	$ 7,723

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EQUITY AND STOCK-BASED COMPENSATION - NARRATIVE (Details) $ in Millions	3 Months Ended
	Sep. 30, 2022 USD ($) shares
A2014 Stock Incentive Plan
Stock Award Compensation Expense
Share-based compensation arrangement by share-based payment award, number of shares available for grant | shares	1,614,701
RSUs
Stock Award Compensation Expense
Total fair value of shares vested in the period | $	$ 12.0
Share-based compensation arrangement by share-based payment award, equity instruments other than options, outstanding, weighted average remaining contractual terms	1 year 6 months

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EQUITY AND STOCK-BASED COMPENSATION - UNRECOGNIZED COMPENSATION EXPENSE RELATED TO NON-VESTED AWARDS (Details) - RSUs $ in Thousands	Sep. 30, 2022 USD ($)
Stock Award Compensation Expense
Unrecognized compensation expense	$ 47,600
2023	18,487
2024	17,408
2025	9,372
2026	1,913
2027	400
Total	$ 47,580

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EQUITY AND STOCK-BASED COMPENSATION - CHANGES IN RESTRICTED STOCK UNIT GRANTS (Details) - RSUs	3 Months Ended
	Sep. 30, 2022 $ / shares shares
Restricted Stock Units
Non-vested balance, beginning (in shares) | shares	1,350,763
Granted (in shares) | shares	400,339
Vested (in shares) | shares	(291,430)
Forfeited (in shares) | shares	(19,210)
Non-vested balance, ending (in shares) | shares	1,440,462
Weighted-Average Grant-Date Fair Value
Non-vested balance, beginning (in dollars per share) | $ / shares	$ 41.16
Granted (in dollars per share) | $ / shares	38.99
Vested (in dollars per share) | $ / shares	31.88
Forfeited (in dollars per share) | $ / shares	41.62
Non-vested balance, ending (in dollars per share) | $ / shares	$ 42.43

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EARNINGS PER COMMON SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Earnings Per Common Share
NET INCOME ATTRIBUTABLE TO COMMON STOCK	$ 58,407	$ 60,210
Average common shares outstanding (in shares)	59,854,584	59,390,846
Basic earnings per common share (in dollars per share)	$ 0.98	$ 1.01
Diluted Earnings Per Common Share
Net income attributable to common stockholders	$ 58,407	$ 60,210
Average common shares issued and outstanding (in shares)	59,854,584	59,390,846
Total dilutive common shares outstanding (in shares)	60,486,394	60,644,288
Diluted earnings per common share (in dollars per share)	$ 0.97	$ 0.99
RSUs
Diluted Earnings Per Common Share
Dilutive effect of average unvested RSUs (in shares)	631,810	1,253,442

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COMMITMENTS AND CONTINGENCIES - SCHEDULE OF MATURITIES OF LEASE LIABILITIES (Details) $ in Thousands	Sep. 30, 2022 USD ($)
Commitments and Contingencies Disclosure [Abstract]
Remainder of fiscal year 2023	$ 8,151
2024	10,976
2025	11,143
2026	10,811
2027	10,870
Thereafter	29,177
Total lease payments	81,128
Less: amount representing interest	(8,074)
Total Lease Liability	$ 73,054

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COMMITMENTS AND CONTINGENCIES - NARRATIVE (Details)	1 Months Ended	3 Months Ended
	Dec. 31, 2015 derivativeAction	Sep. 30, 2022 USD ($) derivativeAction	Aug. 10, 2017 derivativeAction
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Loss contingency, new derivative actions filed | derivativeAction	2
Loss contingency, number of pending derivative actions | derivativeAction			6
Loss contingency, number of pending derivative actions to be consolidated | derivativeAction		6
MUFG Union Bank v. Axos Bank
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Litigation amount awarded to third party		$ 16,000,000
Accrued litigation expense		16,000,000
Loan Origination Commitments
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Off-balance sheet, loan origination commitment		3,374,000,000
Loan Origination Commitments | Sales commitment
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Off-balance sheet, commitment		12,600,000
Loan Origination Commitments | Fixed Interest Rate
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Off-balance sheet, loan origination commitment		$ 192,100,000
Weighted average fixed interest rate on commitments to extend credit		6.70%
Loan Origination Commitments | Fixed Interest Rate | Sales commitment
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Off-balance sheet, commitment		$ 12,600,000
Loan Origination Commitments | Variable Interest Rate
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Off-balance sheet, loan origination commitment		3,181,900,000
Loan Origination Commitments | Variable Interest Rate | Sales commitment
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Off-balance sheet, commitment		$ 0

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SEGMENT REPORTING AND REVENUE INFORMATION (Details) $ in Thousands	3 Months Ended
	Sep. 30, 2022 USD ($) segment	Sep. 30, 2021 USD ($)	Jun. 30, 2022 USD ($)
Segment Reporting [Abstract]
Number of operating segments | segment	2
Segment Reporting Information [Line Items]
Net interest income	$ 180,475	$ 146,642
Provision for credit losses	8,750	4,000
Non-interest income	27,208	26,702
Non-interest expense	116,087	84,431
Income before taxes	82,846	84,913
Goodwill	97,688		$ 95,674
Total Assets	18,407,078		17,401,165
Operating segments | Banking Business
Segment Reporting Information [Line Items]
Net interest income	179,730	142,241
Provision for credit losses	8,750	4,000
Non-interest income	10,712	14,828
Non-interest expense	100,796	62,725
Income before taxes	80,896	90,344
Goodwill	35,721		35,721
Total Assets	17,320,661		16,002,714
Operating segments | Securities Business
Segment Reporting Information [Line Items]
Net interest income	4,275	6,176
Provision for credit losses	0	0
Non-interest income	29,165	13,106
Non-interest expense	24,515	19,273
Income before taxes	8,925	9
Goodwill	61,967		59,953
Total Assets	1,027,815		1,328,558
Corporate/Eliminations
Segment Reporting Information [Line Items]
Net interest income	(3,530)	(1,775)
Provision for credit losses	0	0
Non-interest income	(12,669)	(1,232)
Non-interest expense	(9,224)	2,433
Income before taxes	(6,975)	$ (5,440)
Goodwill	0		0
Total Assets	$ 58,602		$ 69,893

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SEGMENT REPORTING AND REVENUE INFORMATION - NON-INTEREST INCOME (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Segment Reporting [Abstract]
Advisory fee income	$ 6,959	$ 5,304
Broker-dealer clearing fees	5,233	5,670
Deposit service fees	1,106	626
Card fees	789	1,007
Bankruptcy trustee and fiduciary service fees	773	780
Non-interest income (in-scope Topic 606)	14,860	13,387
Non-interest income (out-of-scope Topic 606)	12,348	13,315
Total non-interest income	$ 27,208	$ 26,702