Axos Financial, Inc.
For the period ended Sep 30, 2026. Filed Oct 29, 2026.
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Sep 30, 2026 · Filed Oct 29, 2026
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. 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 and may only be used to settle the related secured financings.
In addition, through its acquisition of Verdant, the Company acquired additional variable interests in certain securitization entities. 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 September 30, 2026. 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. Additionally, the liabilities issued by the consolidated VIEs are non-recourse to the Company.
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 September 30, 2026 | As of June 30, 2026 |
|---|---|---|
| Restricted cash | $29,767 | $30,306 |
| Loans—net of allowance for credit losses | 1,271,441 | 1,347,670 |
| Other assets | 144,710 | 156,584 |
| Secured financings | 511,647 | 576,680 |
| Accounts payable and other liabilities | 26,251 | 25,929 |
As part of its securitization activities, Verdant issued a series of notes to provide additional financing to its business. The notes outstanding as of September 30, 2026 are included in “Secured financings” in the Company’s Condensed Consolidated Balance Sheet and are summarized in the below table. On September 14, 2026, the Company redeemed 100% of the outstanding principal of all outstanding classes of the Series 2022-01 note issuance.
| Outstanding Principal (Dollars in thousands) | |||||
|---|---|---|---|---|---|
| Series | Classes | Interest Rate Range | Final Maturity Date / Range | As ofSeptember 30, 2026 | As of June 30, 2026 |
| 2022-01 | Class A, B, C, D | Not applicable | Not applicable | $— | $8,494 |
| 2023-01 | Class A-1, A-2, B, C, D | 6.05% to 7.75% | January 2031 | 77,481 | 90,837 |
| 2024-01 | Class A-1, A-2, B, C, D | 5.68% to 7.23% | December 2031 | 144,599 | 162,041 |
| 2025-01 | Class A-1, A-2, A-3, B, C, D | 4.85% to 6.49% | March 2028 to May 2033 | 282,546 | 307,166 |
| Total | $504,626 | $568,538 | |||
For additional information on the Verdant acquisition, see Note 2—“Acquisitions.”
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