Axos Closes Purchase of Two Loan Portfolios from the FDIC

Axos Financial, Inc. (NYSE: AX) (“Axos” or the “Company”) announces that its wholly-owned subsidiary Axos Bank has completed the acquisition of two performing commercial real estate (“CRE”) loan portfolios, including multi-family loans among others, from the Federal Deposit Insurance Corporation (“FDIC”) at a purchase price equal to approximately 63% of par value, resulting in an approximate discount to par value for the purchased loans of $463.7 million. Axos Bank paid cash for the acquired loans.

The acquired loans, subject to final settlement adjustments, are comprised of the following:

(Dollars in millions)
Loan Type	Unpaid Principal Balance		Weighted-Average Yield Before Accretion of Discount	Weighted-Average Loan-to-Value
Commercial Real Estate Loans	$	578.6	6.8%	50.2%
Multifamily Loans1		674.6	7.0%	67.0%
Total Loans	$	1,253.2	6.9%	59.3%
1Includes Multifamily and Mixed-Use Loans.

“We believe that we purchased these performing loans at an attractive valuation that will be accretive to our net interest margin and net interest income,” said Greg Garrabrants, President and CEO of Axos. “We performed extensive due diligence and valuation analysis on each of the properties in the acquired loan pools. The most recent appraisals received from the FDIC indicated that the weighted average loan-to-value is approximately 59%. All 58 loans are current on principal and interest payments. The transaction value was enhanced by the inclusion of a series of back-to-back interest rate swaps that allow the borrowers to pay an average fixed rate of 3.8%, while Axos receives a primarily variable note rate of 6.9%.”