Axos Financial, Inc.

RESULTS OF OPERATIONS

Comparison of the three months ended September 30, 2026 and 2025

For the three months ended September 30, 2026, we had net income of $129.6 million, or $2.25 per diluted share, compared to net income of $112.4 million, or $1.94 per diluted share, for the three months ended September 30, 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 September 30, 2026, net interest income totaled $331.3 million, an increase of $40.2 million, or 13.8%, compared to net interest income of $291.1 million for the three months ended September 30, 2025. For the three months ended September 30, 2026, net interest margin decreased by 11 basis points to 4.64%, compared to the net interest margin of 4.75% for the three months ended September 30, 2025.

For the three months ended September 30, 2026, total interest and dividend income increased 11.0% from the three months ended September 30, 2025, primarily due to higher interest earned on loans, primarily reflecting higher average balances, partially offset by a $17.4 million decrease in interest income on deposits in other financial institutions.

For the three months ended September 30, 2026, total interest expense increased 6.4% from the three months ended September 30, 2025, primarily due to an increase in interest expense on FHLB advances and secured financings.

Provision for Credit Losses

The provision for credit losses was $24.5 million for the three months ended September 30, 2026 compared to $17.3 million for the three months ended September 30, 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 $27.7 million for the three months ended September 30, 2026 which reflects specific reserves on certain individually assessed loans primarily in the commercial and industrial - non-RE portfolio, partially offset by a benefit in the Commercial Real Estate portfolio resulting from an improved macroeconomic outlook in the forecast scenarios used in the allowance for credit losses model.

The provision for credit losses for unfunded lending commitments was a benefit of $3.2 million, and was primarily driven by lower expected losses resulting from an improved macroeconomic outlook in the forecast scenarios used in the allowance for credit losses model. 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 headings “Financial Condition—Asset Quality” and “Financial Condition—Allowance for Credit Losses - Loans.”

Non-Interest Income

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

For the three months ended September 30, 2026, non-interest income increased by $31.5 million, or 97.3%. The increase is primarily attributable to higher banking and service fees, driven mainly by operating lease rental and other income from the Verdant acquisition and commercial office complex operating lease rental income, as well as higher prepayment penalty income.

Non-Interest Expense

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

For the three months ended September 30, 2026, non-interest expense increased $39.2 million, or 25.1%, primarily due to increases of:

•$20.8 million in depreciation and amortization primarily due to depreciation on equipment under operating leases following the Verdant acquisition and an increase in intangible amortization expense following the acquisition of deposits;

•$8.2 million in salaries and related costs primarily due to increased headcount and salaries, including the impact of the Verdant acquisition;

•$5.4 million in general and administrative expenses primarily reflecting higher loan and lease servicing and processing expenses following the Verdant acquisition; and

•$4.4 million in data and operational processing expenses as the Company continues to invest in technology to support its growth.

These increases were partially offset by a decrease of $4.8 million in professional and contracted services, primarily reflecting lower legal expenses.

Provision for Income Taxes

Income tax expense was $45.5 million for the three months ended September 30, 2026, compared to $37.5 million for the three months ended September 30, 2025. Our effective income tax rates for the three months ended September 30, 2026 and 2025 were 25.98% and 25.04%, respectively.