Group Co.
Axos Financial, Inc. Closes COR Clearing LLC Acquisition
Traders Magazine Online News, February 5, 2019
Axos Financial, Inc. (NYSE: AX) (“Axos” or the “Company”) announced that its subsidiary, Axos Clearing, LLC, has completed the acquisition of the parent company of COR Clearing LLC (“COR Clearing”) after receiving all required regulatory approvals. The Company expects the transaction to be accretive to diluted earnings per common share (“EPS”) by approximately 6% in Fiscal Year ending June 30, 2020 and 7% in Fiscal Year ending June 30, 2021.
Headquartered in Omaha, Nebraska, COR Clearing is a leading, full-service correspondent clearing firm for more than 60 independent broker-dealers and 90,000 customers. COR Clearing, a wholly-owned subsidiary of Axos Financial, Inc., will be rebranded Axos Clearing.
“This transaction adds another component to our strategy of distributing financial services through a specialized and scalable technology platform,” stated Greg Garrabrants, President and Chief Executive Officer of Axos Financial, Inc. Mr. Garrabrants continued, “COR provides us with an experienced team and a solid foundation to grow our securities business. The approximately $470 million of low-cost deposits held by COR’s clients afford us the flexibility to further reduce our funding costs. The addition of approximately $35 million of annual fee income will diversity our non-interest income and boost our best-in-class return on equity.”
Moelis & Company acted as exclusive financial advisor to the parent company of COR Clearing.
About Axos Financial, Inc.
Axos Financial, Inc. is the holding company for Axos Bank, formerly known as BofI Federal Bank. Axos Bank is a nationwide bank that provides financing for single and multifamily residential properties, small-to-medium size businesses in target sectors, and selected specialty finance receivables. With nearly $10 billion in assets, Axos Bank provides consumer and business banking products through its low-cost distribution channels and affinity partners. Axos Financial, Inc.’s common stock is listed on the NYSE under the symbol “AX” and is a component of the Russell 2000® Index and the S&P 600® Index. For more information about Axos Bank, please visit https://www.axosbank.com.
About COR Clearing LLC
Headquartered in Omaha, Nebraska, COR Clearing is a full-service, independent securities clearing firm servicing retail and online broker-dealers and registered investment advisers throughout the United States. COR Clearing is a registered broker-dealer in all 50 states and is regulated by FINRA, the SEC, and additional Self-Regulatory Organizations (SROs). COR Clearing is the wholly-owned subsidiary of COR Securities Holdings Inc. More information is available at https://www.corclearing.com.
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