Axos Financial announced on April 23 2026 that it will acquire individual retirement accounts with an aggregate balance of $3.2 billion from Capital One. The purchase and assumption agreement was signed on April 22 2026 and is subject to approval by the Office of the Comptroller of the Currency (OCC). The transaction is expected to close later in 2026 after regulatory clearance.
The deal expands Axos’s deposit base by adding $3.2 billion in IRA balances to its $28.2 billion in consolidated assets as of December 31 2025. The acquisition provides a new source of fee revenue and cross‑sell opportunities, reinforcing Axos’s strategy of growing low‑cost, FDIC‑insured deposits and leveraging its digital banking platform to serve retirement‑account holders.
Capital One’s divestiture is part of a broader strategic shift away from certain consumer‑deposit products. By shedding the IRA portfolio, the bank can streamline its balance sheet, reduce servicing costs, and free capital for its core credit and banking operations, particularly as it continues to integrate the Discover acquisition and focus on growth in its primary business lines.
Capital One reported first‑quarter 2026 results that missed Wall Street expectations. Revenue was $15.23 billion, $0.13 billion below estimates, and adjusted earnings per share were $4.42, $0.18 below estimates. The company increased its provision for credit losses. CEO Richard Fairbank said, "Our results in the first quarter reflect solid top line growth and strong credit performance. The Discover integration continues to go well and we continue to build momentum from this game‑changing acquisition." CFO Andrew M. Young noted, "The net interest margin decline in Q1 2026 was due to '2 fewer days' in the quarter, seasonal card paydowns, and elevated cash levels. The Discover integration and purchase accounting adjustments impacted the earnings per share."
Investors noted Capital One’s earnings miss and the implications for its balance sheet, while Axos investors viewed the deposit expansion as a positive development. The transaction remains contingent on OCC approval, which will assess the banks’ financial and managerial resources and the impact on financial stability.
The agreement includes a cash payment equal to the IRA balances less an agreed premium, though the premium amount or percentage has not been disclosed. The deal is expected to close later in 2026 after the OCC grants approval.
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