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SEGMENT REPORTING
 9 Months Ended
Mar. 31, 2019
Segment Reporting [Abstract]  
SEGMENT REPORTING SEGMENT REPORTING

The Company determines reportable segments based on the services offered, the significance of the services offered, the significance of those services to the Company’s financial condition and operating results and management’s regular review of the operating results of those services. The Company operates through two operating segments: Banking Business and Securities Business.
The Banking Business includes a broad range of banking services including online banking, concierge banking, prepaid card services, and mortgage, vehicle and unsecured lending through online and telephonic distribution channels to serve the needs of consumer and small businesses nationally. In addition, the Banking Business 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 also 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.
The Securities Business includes the Clearing Broker-Dealer, 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 clients. The products offered by the lines of business in the Securities Business primarily generate net interest and non-banking service fee income.
Segment results are determined based upon the management reporting system, which assigns balance sheet and income statement items to each of the business segments. The process is designed around the organizational and management structure and, accordingly, the results derived are not necessarily comparable with similar information published by other financial institutions or in accordance with generally accepted accounting principles.
The Company evaluates performance and allocates resources based on profit or loss from operations. There are no material inter-segment sales or transfers. The accounting policies used by each reportable segment are the same as those discussed in Note 2. All costs, except certain corporate administration costs and income taxes, have been allocated to the reportable segments. Therefore, combined amounts agree to the consolidated totals.
In order to reconcile the two segments to the consolidated totals, the Company includes parent-only activities and intercompany eliminations. The following tables present the operating results of the segments:
 
For the Three Months Ended March 31, 2019
(Dollars in thousands)
Banking Business
 
Securities Business
 
Corporate/Eliminations
 
Axos Consolidated
Net interest income
$
127,072

 
$
2,951

 
$
(854
)
 
$
129,169

Provision for loan losses
19,000

 
—

 
—

 
19,000

Non-interest income
21,027

 
5,071

 
—

 
26,098

Non-interest expense
52,224

 
23,102

 
6,489

 
81,815

Income before taxes
$
76,875

 
$
(15,080
)
 
$
(7,343
)
 
$
54,452


 
For the Three Months Ended March 31, 2018
(Dollars in thousands)
Banking Business
 
Securities Business
 
Corporate/Eliminations
 
Axos Consolidated
Net interest income
$
117,497

 
$
—

 
$
(814
)
 
$
116,683

Provision for loan losses
16,900

 
—

 
—

 
16,900

Non-interest income
23,372

 
—

 
153

 
23,525

Non-interest expense
40,273

 
—

 
5,161

 
45,434

Income before taxes
$
83,696

 
$
—

 
$
(5,822
)
 
$
77,874


 
For the Nine Months Ended March 31, 2019
(Dollars in thousands)
Banking Business
 
Securities Business
 
Corporate/Eliminations
 
Axos Consolidated
Net interest income
$
307,564

 
$
2,951

 
$
(2,347
)
 
$
308,168

Provision for loan losses
24,550

 
—

 
—

 
24,550

Non-interest income
54,462

 
5,071

 
—

 
59,533

Non-interest expense
142,291

 
23,102

 
20,277

 
185,670

Income before taxes
$
195,185

 
$
(15,080
)
 
$
(22,624
)
 
$
157,481


 
For the Nine Months Ended March 31, 2018
(Dollars in thousands)
Banking Business
 
Securities Business
 
Corporate/Eliminations
 
Axos Consolidated
Net interest income
$
283,786

 
$
—

 
$
(2,340
)
 
$
281,446

Provision for loan losses
21,900

 
—

 
—

 
21,900

Non-interest income
53,811

 
—

 
153

 
53,964

Non-interest expense
109,419

 
—

 
14,844

 
124,263

Income before taxes
$
206,278

 
$
—

 
$
(17,031
)
 
$
189,247