Axos Financial Inc. said on Jan. 29 that it closed its acquisition of COR Clearing LLC of Omaha, Nebraska. Final terms of the deal were not disclosed; however, Axos told investors in October that it expected a purchase price of $76 million and debt payments of $9 million.
Axos (NYSE: AX) is the University City financial institution formerly known as BofI Federal Bank and Bank of Internet USA.
COR Clearing is a full-service securities clearing firm for more than 60 independent broker-dealers and 90,000 customers. It has deposits of $470 million.
“COR provides us with an experienced team and a solid foundation to grow our securities business,” Axos Financial CEO Greg Garrabrants said in a prepared statement. “… The addition of approximately $35 million of annual fee income will diversify our non-interest income and boost our best-in-class return on equity.”
Axos predicted the buy will be accretive to earnings by 6 percent during the fiscal year which ends in June 2020.
Axos Financial has nearly $10 billion in assets.