Axos Bank Acquires Verdant Commercial Capital for $43.5 Million in Cash.

Axos Bank has acquired Verdant Commercial Capital, a $1.1 billion equipment leasing company, for $43.5 million. The deal is expected to be accretive to earnings per share by 2-3% in fiscal 2026 and 5-6% in fiscal 2027. Axos will replace Verdant's high-cost funding with lower-cost deposit funding and expects to cross-sell commercial deposits and floorplan lending to manufacturers and dealers.

Axos Bank, the banking subsidiary of Axos Financial, Inc. (NYSE: AX), has announced the acquisition of Verdant Commercial Capital, LLC (VCC), an independent equipment leasing company with approximately $1.1 billion in loans and leases on its balance sheet as of August 31, 2025. The acquisition price is $43.5 million, including a $4 million premium to book value, and the transaction is expected to close on September 30, 2025 Axos Bank Announces Acquisition of Verdant Commercial ...^[1].

Verdant Commercial Capital specializes in originating small to mid-ticket leases between $50,000 and $5 million nationwide, serving six specialized industry verticals. The company offers a full suite of products, including equipment finance leases, conditional sale leases, fair market value (FMV) leases, and terminal rental adjustment clause (TRAC) leases Axos Bank Announces Acquisition of Verdant Commercial ...^[1].

Greg Garrabrants, President and CEO of Axos Financial, Inc., stated, "This acquisition provides us with more scale and enhances our existing equipment leasing business with good risk-adjusted returns. We like Verdant’s specialization in vendor-based equipment leasing and believe we can scale this business profitably. Additionally, we see opportunities to cross-sell commercial deposits and floorplan lending to manufacturers and dealers in several industry verticals such as specialty vehicles, golf, sports, and entertainment. After replacing their high-cost funding with our lower-cost deposit funding and growing new originations, we expect the transaction to be accretive to earnings per share by approximately 2% - 3% in fiscal 2026 and 5% - 6% in fiscal 2027" Axos Bank Announces Acquisition of Verdant Commercial ...^[1].

Axos will pay a 10% premium on Verdant’s book value at closing. The projected initial purchase price of $43.5 million, including a $4 million premium to book value, will be paid in cash at closing. The seller can earn incremental performance-based cash considerations over a four-year period after close if VCC generates a return on equity (ROE) above 15%. The total earn-out is capped at $50 million Axos Bank Announces Acquisition of Verdant Commercial ...^[1].

The transaction is expected to enhance Axos' equipment leasing business and provide additional opportunities for cross-selling commercial deposits and floorplan lending. The acquisition aligns with Axos' strategy to expand its commercial lending capabilities and strengthen its position in the financial services market Axos Bank Announces Acquisition of Verdant Commercial ...^[1].