Axos Financial Inc

Cash flow information is as follows:

During the nine months ended March 31, 2025, we had net cash inflows from operating activities of $307.0 million compared to inflows of $268.5 million for the nine months ended March 31, 2024. 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 $992.3 million for the nine months ended March 31, 2025, while outflows totaled $2,162.1 million for the nine months ended March 31, 2024. The decrease in outflows was primarily due to absence of the FDIC Loan Purchase in the nine months ended March 31, 2025 as compared to the nine months ended March 31, 2024.

Net cash inflows from financing activities totaled $757.2 million for the nine months ended March 31, 2025, compared to net cash inflows from financing activities of $1,857.5 million for the nine months ended March 31, 2024. The decrease in net cash inflows from financing was primarily driven by a lower net increase in deposits during the nine months ended March 31, 2025.

As of March 31, 2025, the Bank could borrow up to 35% of its total assets from the FHLB. Borrowings are collateralized by pledging certain mortgage loans and available-for-sale securities to the FHLB. At March 31, 2025, the Company had $2,813.5 million available immediately and $4,820.7 million available with additional collateral and the Company had $4,272.6 million of loans and $0.1 million of securities pledged to the FHLB. At March 31, 2025, the Company had $250.0 million in unsecured federal funds lines of credit with five major banks under which there were no borrowings outstanding.

The Bank has the ability to borrow short-term from the FRBSF Discount Window. At March 31, 2025, the Bank did not have any borrowings outstanding and the amount available from this source was $7,554.3 million. Borrowings are collateralized by pledging commercial loans and consumer loans. At March 31, 2025, the Bank had $8,771.8 million of loans pledged to the FRBSF.

Axos Clearing has a $150 million third-party secured line of credit available for borrowing, as needed. As of March 31, 2025, there was $63.5 million outstanding on this credit facility. This credit facility bears interest at rates based on the Federal Funds rate and is due upon demand.

Axos Clearing has a $110 million third-party unsecured line of credit available for limited purpose borrowing. As of March 31, 2025, there was no amount outstanding on this credit facility. This credit facility bears interest at rates based on the Federal Funds rate and is due upon demand.

We view our liquidity sources to be stable and adequate for our anticipated needs and contingencies for both the short- and long-term. Due to the diversified sources of our deposits, while maintaining approximately 90% of our total Bank deposits in insured or collateralized accounts as of March 31, 2025, we believe we have the ability to increase our level of deposits, and have available other potential sources of funding, to address our liquidity needs for the foreseeable future.

For additional information on certain contractual and other obligations, see Note 9—“Commitments and Contingencies” and Note 12—“Other Assets”in the accompanying interim condensed consolidated financial statements and refer to Note 11—“Deposits,” Note 12—“Advances from the Federal Home Loan Bank” and Note 13—“Borrowings, Subordinated Notes and Debentures” in the 2024 Form 10-K.

On January 28, 2025, the Company entered into an equity distribution agreement pursuant to which the Company may issue and sell through distribution agents from time to time shares of the Company’s common stock in at-the-market offerings with an aggregate offering price of up to $150,000,000. The Company will issue the stock pursuant to a previously effective registration statement and a prospectus supplement filed with the SEC on January 28, 2025. No shares of the Company’s common stock have been issued pursuant to this offering.