Company: AX
Filing Date: 2025-10-30
Form Type: 10-Q
Source: 0001299709-25-000184
Chunk: 29

Company: Axos Financial, Inc.
Filing Date: 2025-10-30
Form: 10-Q
Item: Part I, Item 1
Chunk 29
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. This Contingent Consideration can be earned over a four-year period commencing with the date of acquisition, and the potential payment of which ranges from zero to $50.0 million based on the return on equity of Verdant. This Contingent Consideration is included in “Accounts payable and other liabilities” in the Consolidated Balance Sheet. For additional information related to the Contingent Consideration, see Note 3—“Fair Value.”Upon acquisition, the assets and liabilities of Verdant were adjusted to their respective fair values (with the exception of purchased credit deteriorated (“PCD”) assets, as further discussed below) as of the closing date of the transaction, including the identifiable intangible assets acquired. Goodwill has been recorded representing the excess of the purchase price over the fair value of the net assets acquired and is expected to be fully tax-deductible. The goodwill recognized is the result of expected synergies and operational efficiencies, among other factors, and has been assigned to the Banking Business Segment. The Company’s accounting for the acquisition has not been finalized as the Company continues to evaluate the post-closing adjustment amount, which is expected to have an insignificant effect on the value of the goodwill recognized as of September 30, 2025. The allocation will be updated, if necessary, through the measurement period, which ends no later than one year from the acquisition date.The following table provides the Verdant preliminary purchase consideration allocation as of the date of acquisition:(Dollars in thousands)September 30, 2025ASSETS:Cash and cash equivalents$31,635 Restricted cash34,924 Loans—net of allowance for credit losses of $7,7951,020,322 Other assets1223,842 Goodwill and other intangible assets—net72,767 TOTAL ASSETS$1,383,490 LIABILITIES:Secured financings$782,423 Accounts payable and other liabilities29,250 TOTAL LIABILITIES$811,673 TOTAL CONSIDERATION (Including $500.0 million to settle certain debt of Verdant and $30.8 million of Contingent Consideration)$571,817 Amount paid to settle certain debt of Verdant, excluding $2.2 million of transaction costs included in the purchase price(497,776)Contingent Consideration(30,810)PURCHASE PRICE$43,231 1 Includes $212.6 million of equipment under operating lease arrangements.

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