other material
confidence high
sentiment positive
materiality 0.75
Axos Bank buys $1.25B performing CRE loan portfolios from FDIC at 63% of par; $463.7M discount
Axos Financial, Inc.
- Purchase price of ~63% of par value on $1.253B unpaid principal balance; discount totals $463.7M.
- All 58 loans current; weighted-average yield 6.9% before discount accretion; avg LTV 59.3%.
- Interest rate swaps convert borrowers' fixed 3.8% average to Axos's variable 6.9% note rate.
- Portfolio comprises $578.6M CRE loans (6.8% yield, 50.2% LTV) and $674.6M multifamily loans (7.0% yield, 67.0% LTV).
- Transaction paid in cash; expected to be accretive to net interest margin and net interest income.