Axos Financial, Inc. (NYSE: AX) (“Axos” or the "Company”), parent of Axos Bank (the “Bank”), announced today the pricing of a public offering of $175 million in aggregate principal amount of the Company’s 4.875% Fixed-to-Floating Rate Subordinated Notes due October 1, 2030 (the “Notes”). The Notes will bear interest at the rate of 4.875% per year, payable semiannually in arrears on April 1 and October 1 of each year, beginning on April 1, 2021. From and including October 1, 2025 to, but excluding, October 1, 2030, or the earlier redemption date, interest will accrue at a floating rate per annum equal to a benchmark rate, which is expected to be Three-Month Term SOFR, plus a spread of 476 basis points, payable quarterly in arrears. The offering is expected to fund on September 18, 2020, subject to the satisfaction of customary closing conditions. Keefe, Bruyette & Woods, Inc., A Stifel Company and Raymond James & Associates, Inc. are serving as joint book-running managers on the offering.

Axos Financial, Inc. received a Baa3 rating and BBB rating from Moody’s Investor Services and Kroll Bond Rating Agency, respectively, on the Notes. The proceeds from the sale of the Notes will be used for general corporate purposes, to provide new capital to Axos Bank to support its future growth and for common stock share repurchases.