Axos Financial, Inc.

RESULTS OF OPERATIONS

Comparison of the Three and Nine Months Ended March 31, 2026 and 2025

For the three months ended March 31, 2026, we had net income of $124.7 million, or $2.15 per diluted share, compared to net income of $105.2 million, or $1.81 per diluted share, for the three months ended March 31, 2025. For the nine months ended March 31, 2026, we had net income of $365.43 million or $6.33 per diluted share, compared to net income of $322.2 million, or $5.55 per diluted share, for the nine months ended March 31, 2025.

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:

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); 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 each based on the relative changes attributable to volume and changes attributable to rate.

1 Purchased loans include loans, loan discounts and unearned fees related to the FDIC Loan Purchase.

Net Interest Income

For the three months ended March 31, 2026, net interest income totaled $306.3 million, an increase of $30.8 million, or 11.2%, compared to net interest income of $275.5 million for the three months ended March 31, 2025. For the three months ended March 31, 2026, net interest margin decreased by 21 basis points to 4.57%, compared to the net interest margin of 4.78% for the three months ended March 31, 2025.

For the three months ended March 31, 2026, total interest and dividend income increased 10.5% from the three months ended March 31, 2025, primarily due to an increase in interest earned on loans, primarily reflecting higher average balances, partially offset by a $22.0 million decrease in interest income on deposits in other financial institutions, primarily driven by lower average balances and lower rates earned.

For the three months ended March 31, 2026, total interest expense increased 9.4% from the three months ended March 31, 2025, primarily due to an increase in interest expense on secured financings, attributable to the Verdant acquisition, and other borrowings, as well as an increase in interest expense on advances from the FHLB.

For the nine months ended March 31, 2026, net interest income totaled $929.0 million, an increase of $81.4 million, or 9.6%, compared to net interest income of $847.6 million for the nine months ended March 31, 2025. For the nine months ended March 31, 2026, net interest margin decreased by 17 basis points to 4.76%, compared to the net interest margin of 4.93% for the nine months ended March 31, 2025.

For the nine months ended March 31, 2026, total interest and dividend income increased 6.2% from the nine months ended March 31, 2025, primarily due to an increase in interest income on loans, primarily reflecting higher average loan balances, partially offset by lower rates earned. This increase in interest and dividend income was partially offset by a $44.7 million decrease in interest income on interest-earning deposits at other financial institutions primarily driven by lower average balances and lower rates earned.

For the nine months ended March 31, 2026, total interest expense increased 0.6% from the nine months ended March 31, 2025, primarily due to an increase in interest expense on secured financings, attributable to the Verdant acquisition, and other borrowings, as well as an increase in interest expense on advances from the FHLB. These increases were partially offset by a decrease in interest expense on demand and savings deposits.

Provision for Credit Losses

The provision for credit losses was $41.0 million and $83.3 million for the three and nine months ended March 31, 2026, respectively, compared to $14.5 million and $40.7 million, respectively, for the three and nine months ended March 31, 2025. The provision for credit losses consists of provisions for both funded loans and for unfunded lending commitments. The provision for credit losses for funded loans was $38.8 million and $76.3 million for the three and nine months ended March 31, 2026, respectively, and for the three months ended March 31, 2026, reflected loan growth primarily in the Commercial & Industrial - Non-RE and Commercial Real Estate portfolios, an increase in specific reserves primarily related to one Commercial & Industrial - Non-RE portfolio loan with unique credit risk characteristics, as well as changes to the quantitative allowance for credit losses model inputs, including geopolitical events impacting macroeconomic factors and forecasted interest rates. For the nine months ended March 31, 2026, the provision for credit losses was also impacted by the Verdant acquisition, which resulted in a post-acquisition provision for credit losses on the loans and leases acquired.

The provision for credit losses for unfunded lending commitments of $2.2 million and $7.0 million for the three and nine months ended March 31, 2026, respectively, was primarily driven by unfunded lending commitment growth, primarily in the Commercial Real Estate and Commercial & Industrial - Non-RE portfolios. Provisions for credit losses are charged to income to bring the allowance for credit losses for loans and unfunded lending commitments to a level deemed appropriate by management based on the factors discussed under the heading “Financial Condition—Asset Quality and Allowance for Credit Losses - Loans.”

Non-Interest Income

The following table sets forth information regarding our non-interest income:

For the three months ended March 31, 2026, non-interest income increased by $52.6 million, or 157.7%, and for the nine months ended March 31, 2026, non-interest income increased by $81.9 million, or 91.2%. The increases were primarily due to an increase in banking and servicing fee income, mainly attributable to:

•A $22.0 million legal settlement in our favor reached in March 2026; and

•Operating lease rental and other income from the Verdant acquisition.

For the three months ended March 31, 2026, the increase in mortgage banking and servicing income reflected a favorable servicing rights fair value adjustment.

Additionally, for the nine months ended March 31, 2026, the increase in mortgage banking and servicing rights income also reflected the absence of losses on certain loan sales in the prior year period.

Non-Interest Expense

The following table sets forth information regarding our non-interest expense:

For the three months ended March 31, 2026, non-interest expense increased $39.7 million, or 27.1%, primarily due to increases of:

•$15.4 million in depreciation and amortization primarily due to depreciation on equipment under operating leases following the Verdant acquisition;

•$9.5 million in general and administrative expenses primarily reflecting higher loan and lease servicing expenses following the Verdant acquisition and the absence of a payment in the prior year period of a legal judgment at an amount less than previously accrued; and

•$6.9 million in salaries and related costs primarily due to increased headcount and salaries, including as a result of the Verdant acquisition.

For the nine months ended March 31, 2026, non-interest expense increased $87.7 million, or 20.0%, primarily due to increases of:

•$32.5 million in depreciation and amortization primarily due to depreciation on equipment under operating leases following the Verdant acquisition;

•$20.6 million in general and administrative expenses primarily reflecting a $7.0 million accrual in the current period for developments in an ongoing matter related to the Company’s acquisition of COR Securities in fiscal year 2019, higher loan and lease servicing expenses following the Verdant acquisition and the absence of a payment in the prior year period of a legal judgment at an amount less than previously accrued; and

•$17.3 million in salaries and related costs primarily due to increased headcount and salaries, including as a result of the Verdant acquisition.

Provision for Income Taxes

Income tax expense was $40.6 million and $125.3 million for the three and nine months ended March 31, 2026, respectively, compared to $42.9 million and $135.4 million for the three and nine months ended March 31, 2025. Our effective income tax rates for the three months ended March 31, 2026 and 2025 were 24.57% and 28.95%, respectively. Our effective income tax rates for the nine months ended March 31, 2026 and 2025 were 25.53% and 29.58%, respectively. The decrease in the effective income tax rate for the three and nine months ended March 31, 2026 reflects, in part, a change in the State of California income tax law effective beginning with the Company’s 2026 fiscal year, the benefit from RSU vestings, and the effective income tax rate benefit derived from certain tax credits in the three months ended March 31, 2026.