Axos Financial Completes Acquisition of Commercial Real Estate Loan Portfolios

Axos Financial, a leading financial institution, saw a significant surge in its shares after its subsidiary, Axos Bank, successfully finalized the acquisition of two performing commercial real estate loan portfolios from the Federal Deposit Insurance Corporation. The stock price jumped by 12% to reach $49.80 on Friday, reflecting the market's positive response to this development.

This acquisition comes at a favorable time for Axos Financial, as the stock had hit a 52-week low of $32.05 on November 13. Since then, the company has experienced an impressive upward trajectory, with a remarkable 29% increase in its stock value over the course of the past 12 months.

Axos Bank acquired these portfolios, which include multi-family loans, for a purchase price equal to 63% of the loans' par value. By securing this discount, the bank successfully purchased the loans for a total amount of $463.7 million.

Notably, Axos Bank utilized cash for the acquisition of these loans, further strengthening its financial position and demonstrating its commitment to strategic growth.

It is worth highlighting that all 58 loans within the acquired portfolios are currently up to date with principal and interest payments. Additionally, the transaction's value was significantly enhanced through a series of back-to-back interest rate swaps. These rate swaps enable borrowers to pay an average fixed interest rate of 3.8%, while Axos Bank benefits from a primarily variable note rate of 6.9%.

The successful completion of this acquisition marks a significant milestone for Axos Financial, further establishing its position in the commercial real estate loan market and reinforcing its commitment to delivering high-quality financial solutions to its clients.