Axos Financial, Inc. Closes E*TRADE Advisor Services Acquisition

Rhea-AI Summary

Axos Financial, Inc. (NYSE: AX) has successfully completed its acquisition of E*TRADE Advisor Services (EAS), enhancing its investment advisory services. EAS, now rebranded as Axos Advisor Services, holds approximately $24.8 billion in assets under custody. The transition to a broker-dealer platform was achieved within four months, signaling quick integration. CEO Gregory Garrabrants highlighted the strategic importance of this deal, emphasizing growth opportunities in serving independent RIAs. The acquisition is expected to significantly boost Axos' banking and securities service offerings.

Positive

• Acquisition of EAS enhances Axos' asset management capabilities with $24.8 billion in assets under custody.
• Quick transition to a broker-dealer platform completed in less than four months.
• Expands service offerings to 200 RIA custody relationships, providing potential for revenue growth.

Negative

• None.

Axos Financial, Inc. (NYSE: AX) (“Axos” or the "Company”), parent of Axos Bank, announced today that it has closed its acquisition of E*TRADE Advisor Services (“EAS”), the registered investment advisor (“RIA”) custody business Morgan Stanley acquired in its acquisition of E*TRADE Financial Corporation in 2020. EAS had approximately $24.8 billion of assets under custody, including $1.2 billion of client cash sweeps, at July 30, 2021. EAS has been rebranded Axos Advisor Services and operates as the RIA custody business within Axos Clearing LLC.

“I’m excited to welcome the EAS team and clients to Axos,” said Gregory Garrabrants, President and Chief Executive Officer of the Axos Financial, Inc. “With the dedication and hard work from both teams, we successfully completed the conversion of EAS and received the required regulatory approval to transition EAS to a broker-dealer platform in less than four months. The addition of a turnkey technology platform serving 200 RIA custody relationships with approximately $25 billion of combined assets under custody significantly accelerates our time-to-scale in this business. We see abundant opportunities to expand the breadth and quality of banking and securities services to independent RIAs, advisors and their end clients.”

About Axos Financial, Inc. and Subsidiaries

Axos Financial, Inc. is the holding company for Axos Bank, Axos Clearing LLC and Axos Invest, Inc. Axos Bank is a nationwide bank, with approximately $14.3 billion in assets, that provides consumer and business banking products through its low-cost distribution channels and affinity partners. Axos Clearing LLC, with approximately $41 billion of assets under custody and/or administration, and Axos Invest, Inc., provide comprehensive securities clearing services to introducing broker-dealers and registered investment advisor correspondents and digital investment advisory services to retail investors, respectively. provide comprehensive securities clearing services to introducing broker-dealers and registered investment advisor correspondents and digital investment advisory services to retail investors, respectively. Axos Financial, Inc.’s common stock is listed on the NYSE under the symbol “AX” and is a component of the Russell 2000® Index, the KBW Nasdaq Financial Technology Index, and the S&P SmallCap 600® Index. For more information on Axos Bank, please visit axosbank.com.

Forward Looking Statements

This press release contains forward-looking statements that involve risks and uncertainties, including without limitation statements relating to Axos’ financial prospects and other projections of its performance, specifically the acquisition of EAS. These and other risks and uncertainties detailed in Axos’ periodic reports filed with the Securities and Exchange Commission could cause actual results to differ materially from those expressed or implied in any forward-looking statements. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. All forward-looking statements are qualified in their entirety by this cautionary statement, and Axos undertakes no obligation to revise or update any forward-looking statements to reflect events or circumstances after the date of this press release.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210802005218/en/

FAQ

What did Axos Financial acquire?

Axos Financial acquired E*TRADE Advisor Services, now rebranded as Axos Advisor Services.

How much assets are under custody for EAS?

EAS had approximately $24.8 billion of assets under custody as of July 30, 2021.

What is the significance of the acquisition for Axos Financial?

The acquisition significantly enhances Axos' capabilities in serving independent RIAs and expands its banking and securities service offerings.

How quickly did Axos transition EAS to a broker-dealer platform?

The transition to a broker-dealer platform was completed in less than four months.

What is the stock symbol for Axos Financial?

The stock symbol for Axos Financial is AX.