Axos Financial, Inc.
For the period ended Dec 31, 2025. Filed Jan 29, 2026.
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Dec 31, 2025 · Filed Jan 29, 2026
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14. Variable Interest Entities
- VARIABLE INTEREST ENTITIES
The Company consolidated the results of operations and financial position ofthree lending-related entities, which it considers VIEs. The Company consolidated these VIEs because it or its subsidiaries is deemed to be the primary beneficiary since the Company or its subsidiaries has the power to direct the loan servicing or portfolio management activities, which are the activities that most significantly affect the VIEs’ economic performance, and the Company or its subsidiaries has the obligation to absorb the majority of the losses or benefits through ownership of all of the secured financings issued by the trusts. For these VIEs, the loans transferred to the VIEs are pledged as collateral to the related secured financings.
In addition, through its acquisition of Verdant, the Company acquired additional variable interests in certain securitization trusts. Following the acquisition, the Company performed an assessment and determined it continues to direct the activities that most significantly affect the acquired VIEs’ economic performance, and the Company has the obligation to absorb the majority of the losses or benefits of such acquired variable interests. As a result, the Company determined it is the primary beneficiary and continues to consolidate the VIEs as of December 31, 2025.
For these VIEs, including those acquired in the Verdant acquisition, the loans transferred to the VIEs are pledged as collateral to the related secured financings.
The following table provides a summary of the assets and liabilities of consolidated VIEs in the Company’s Condensed Consolidated Balance Sheets.
| (Dollars in thousands) | As of December 31, 2025 | As of June 30, 2025 |
|---|---|---|
| Restricted cash | $36,227 | $— |
| Loans—net of allowance for credit losses | 1,568,922 | 1,276,101 |
| Other assets | 161,743 | — |
| Secured financings | 691,507 | — |
| Accounts payable and other liabilities | 17,624 | — |
As part of its securitization activities, Verdant issued a series of notes to provide additional financing to its business. The notes outstanding as of December 31, 2025 are included in “Secured financings” in the Company’s Condensed Consolidated Balance Sheet and are summarized in the below table:
| Series | Classes | Interest Rate Range | Final Maturity Date / Range | Outstanding Principal at December 31, 2025(Dollars in thousands) |
|---|---|---|---|---|
| 2022-01 | Class A, B, C, D | 6.59% to 8.67% | February 2030 | $12,680 |
| 2023-01 | Class A-1, A-2, B, C, D | 6.05% to 7.75% | January 2031 | 115,990 |
| 2024-01 | Class A-1, A-2, B, C, D | 5.68% to 7.23% | December 2031 | 197,681 |
| 2025-01 | Class A-1, A-2, A-3, B, C, D | 4.66% to 6.49% | March 2028 to May 2033 | 354,619 |
| Total | $680,970 | |||
For additional information on the Verdant acquisition, see Note 2, “Acquisitions.”
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.