Axos Financial, Inc.

9. OTHER ASSETS

Other Assets in the Consolidated Balance Sheets primarily comprises bank-owned life insurance, accrued interest receivable, derivatives, net deferred income tax assets, furniture, equipment and software, right-of-use lease assets, LIHTC investments and other receivables. For additional information on accrued interest receivable, see Note 5 - “Loans & Allowance for Credit Losses,” for additional information on derivatives, see Note 6 - “Derivatives” and for additional information on net deferred income tax assets, see Note 14 - “Income Taxes.” Other components of Other Assets are further detailed below.

Bank-owned Life Insurance. The following table summarizes the activity in the Company’s bank-owned life insurance (“BOLI”). Income related to bank-owned life insurance is included in “Banking and service fees” in the Consolidated Statements of Income.

Furniture, equipment and software. A summary of the cost and accumulated depreciation and amortization for leasehold improvements, furniture, equipment and software is as follows:

Depreciation and amortization expense related to leasehold improvements, furniture, equipment and software for the fiscal years ended June 30, 2025, 2024 and 2023 was $21.6 million, $16.2 million and $12.2 million, respectively.

Operating Leases. The Company leases office space under operating lease agreements scheduled to expire at various dates. Operating lease expense for the fiscal years ended June 30, 2025, 2024 and 2023 was $11.3 million, $12.4 million, and $11.4 million, respectively.

Supplemental information related to the Company’s operating leases is as follows:

Supplemental cash flow information related to leases is as follows:

The following table represents maturities of lease liabilities:

As of June 30, 2025, the Company was in compliance with all covenants contained in lease agreements.

LIHTC Investments. The Company recognized the following income and tax benefits for its LIHTC investments.

The Company recognized the following investments on its balance sheets.

1 LIHTC unfunded commitments are included in “Accounts Payable and Other Liabilities” on the Consolidated Balance Sheets.

For the fiscal years ended June 30, 2025 and 2024, there have been no significant modifications or events that resulted in the change in the nature of the LIHTC investments or any changes in the relationship with the underlying project.

For the fiscal years ended June 30, 2025 and 2024, there has been no impairment loss recognized from the forfeiture or ineligibility of income tax credits.