Ratings reflect continued credit enhancement and strong collateral performance

Verdant Commercial Capital, LLC, a division of Axos Bank, the nationwide bank subsidiary of Axos Financial, Inc. (NYSE:AX), announced that Moody's Ratings upgraded five classes of notes across its Verdant Receivables 2023-1 and 2024-1 equipment asset-backed securitizations, reflecting strong collateral performance, rising credit enhancement, and continued stability in Verdant's equipment finance platform.

Moody's upgraded three classes in the 2023-1 transaction and two classes in the 2024-1 transaction following a full review of both transactions.

Upgraded classes

Verdant Receivables 2023-1 LLC

Class B: Aaa (sf)
Class C: Aa1 (sf)
Class D: A3 (sf)

Verdant Receivables 2024-1 LLC

Class B: Aa1 (sf)
Class C: Aa3 (sf)

Moody's cited sequential pay structures, non-declining reserve accounts, and increasing overcollateralization as drivers of the actions, supporting continued credit enhancement growth across both transactions. The agency also pointed to sustained collateral outperformance, with cumulative net loss expectations for both transactions reduced to 1.50%.

"These upgrades underscore the strength and consistency of Verdant's vendor platform," said Mike Rooney, Verdant's Chief Executive Officer. "Our disciplined underwriting and focus on essential-use equipment continue to deliver high-quality assets to the ABS market. We appreciate Moody's recognition and the confidence it reflects from our investors."

No other classes were affected, as enhancement levels for the remaining tranches remain consistent with current ratings.

"The continued growth in credit enhancement across both transactions reflects the resilience of our structures and the stability of our servicing platform," said Matt Mahoney, Verdant's Vice President of Treasury. "We remain focused on maintaining strong performance and supporting the long-term success of our securitization program."

ABOUT VERDANT COMMERCIAL CAPITAL

Verdant Commercial Capital, a division of Axos Bank, the nationwide banking subsidiary of Axos Financial, Inc. (NYSE:AX), provides financing solutions for the acquisition of business essential equipment and software in six industries: Industrial; Manufacturing; Specialty Vehicle; Golf, Sports & Entertainment; Renewables & Energy Efficiency; and Technology & Office Automation. Verdant brings partners the ability to fund business with transaction sizes from below $25,000 up to $100 million. Verdant is headquartered in Cincinnati and has offices across the U.S For more information, visit www.verdantcc.com.

About Axos Bank

Axos Financial, Inc., with approximately $28.2 billion in consolidated assets as of December 31, 2025, is the holding company for Axos Bank, Axos Clearing LLC, and Axos Invest, Inc. Axos Bank provides consumer and business banking products nationwide through its low-cost distribution channels and affinity partners. Axos Clearing LLC (including its business division Axos Advisor Services), with approximately $44.4 billion of assets under custody and/or administration as of December 31, 2025, 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. 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 S&P SmallCap 600® Index, among other indices. For more information regarding Axos Bank, please visit www.axosbank.com.

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Moody's Upgrades Five Classes of Verdant Receivables ABS Notes