Axos Financial Shares Rise 12% After Buying Two Loan Portfolios From FDIC

By Chris Wack

Axos Financial shares were up 12% to $49.80 on Friday after the company's wholly owned Axos Bank subsidiary completed the acquisition of two performing commercial real estate loan portfolios from the Federal Deposit Insurance Corporation.

The stock hit its 52-week low of $32.05 on Nov. 13, and is now up 29% in the past 12 months.

Axos Bank bought the portfolios, including multi-family loans, for a purchase price equal to 63% of par value, resulting in an discount to par value for the purchased loans of $463.7 million.

Axos Bank paid cash for the acquired loans.

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%.

Write to Chris Wack at chris.wack@wsj.com

(END) Dow Jones Newswires

December 08, 2023 11:14 ET (16:14 GMT)

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