Company: AX
Filing Date: 2025-09-17
Form Type: 424B5
Source: 0001299709-25-000159
Chunk: 19

Company: Axos Financial, Inc.
Filing Date: 2025-09-17
Form: 424B5
Chunk 19
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 if holders of the Notes receive any payments, they may receive less, ratably, than holders of Senior Indebtedness and secured indebtedness. For more information on the subordination of payments under the Notes, see “ Description of Notes — Subordination .”

The Notes are not guaranteed by, and are structurally subordinated to, all indebtedness of our subsidiaries, including liabilities of the Bank, and creditors of our subsidiaries will have priority as to our subsidiaries’ assets.

The Notes are not obligations of, or guaranteed by, any of our subsidiaries or any third party. As a result, our right and the rights of our creditors, including holders of the Notes, to participate in any distribution of assets of any of our subsidiaries upon its liquidation, reorganization or otherwise would be subject to the prior claims of creditors of that subsidiary. In the event of any such distribution of assets of the Bank, the claims of depositors and other general or subordinated creditors of such subsidiary would be entitled to priority over the claims of ours or holders of the Notes. Accordingly, the Notes are structurally subordinated to all of the existing and future liabilities and obligations of our subsidiaries. Claims on the Bank by creditors other than us include those by holders of our long-term debt and there are substantial obligations with respect to deposit liabilities and federal funds purchased, other short-term borrowings and various other financial obligations. As of June 30, 2025, Axos Clearing had no outstanding borrowings from other banks and the Bank had $21.0 billion of deposits, and $60 million of FHLB advances, to which the Notes will be structurally subordinated.

We are a holding company and banking laws and regulations could limit our access to funds from the Bank with the result that we may not have access to sufficient cash to make payments on the Notes.

We are a legal entity separate and distinct from our subsidiaries, who do not guarantee the Notes. While we, as a holding company, are required to maintain cash positions for our liquidity at the holding company level, our ability to pay dividends, cover operating expenses, and service our debt, including the Notes, depends upon the dividends from the Bank. Interest expense on our holding company debt obligations for the fiscal year ended June 30, 2025 was $14.8 million.

Federal and state banking regulations limit dividends from the Bank to us. Generally, banks are prohibited from paying dividends when doing so would cause them to fall below regulatory minimum capital levels. Additionally, limits exist on banks paying