World Omni Auto Receivables Trust 2023-B Annual Report - How They Did This Year

Hey there! Let's break down how World Omni Auto Receivables Trust 2023-B performed this past year. Think of this as a chat with a friend about whether this investment makes sense for you. Here's what we'll cover:

1. What does this investment do and how did it perform this year? Okay, first things first: World Omni Auto Receivables Trust 2023-B isn't a regular company that sells products or services. It's a special type of investment called a "Trust." Think of it like a big basket that holds a bunch of auto loans (car payments) that people owe. This Trust, likely started in late 2023 (its "2023-B" name tells us this), buys many car loans. It then sells "Notes" and "Certificates" to investors like you. Think of these as bonds or shares in this basket of loans. Notes are like debt the Trust owes, often with different payment terms. Certificates represent the remaining ownership. Your investment is paid from collected car payments. A set payment order, called a "waterfall," pays senior noteholders first.

   This report covers the year ending December 31, 2025. World Omni Financial Corp. is the company that put these loans into the Trust. They also collect payments, acting as the "Sponsor" and "Servicer." As the Sponsor, World Omni started the car loans. As the Servicer, it collects payments, handles late payments, and manages repossessions.

   Its performance is all about how well those car loans are paid back. A good sign is that no single borrower makes up more than 10% of the total loans in the basket. This shows good diversity within the loan pool, which usually has thousands of car loans. This means the risk is spread out, so if one or two people stop paying, it won't sink the whole ship. Actual performance depends on on-time payments of loan amounts and interest from these car loans.

2. Financial performance - revenue, profit, growth metrics Its financial performance comes from the cash flow from car loan payments. The Trust's "revenue" is mostly the interest collected on these car loans. Its "expenses" include servicing fees to World Omni Financial Corp. It also pays trustee fees to U.S. Bank. Finally, it pays interest to different Noteholders. Any leftover cash, after all expenses and payments to Noteholders, typically goes to the Certificateholders. The fact that no single borrower is a huge part of the loan pool is a positive for stability.

3. Major wins this year World Omni Financial Corp. services the loans. U.S. Bank is the trustee, overseeing things for investors. Both confirmed they follow all rules for managing these loans. This means they follow the servicing rules in Regulation AB. This regulation sets disclosure and reporting rules for these types of investments. They provided "Servicer Compliance Statements" and "Attestation Reports" to confirm this. This ensures the loans are managed as agreed. Adding to this good news, Matthew Hoole, World Omni Financial Corp.'s CFO, personally certified on March 23, 2026. He confirmed that World Omni, as Servicer, met all its key obligations for the year ending December 31, 2025. This strongly confirms they play by the rules. It also shows the car loan payments are managed openly.

   Independent accountants checked their work. PricewaterhouseCoopers LLP reviewed World Omni, and Ernst & Young LLP reviewed U.S. Bank. Both found no important rule breaking. This means loans are handled properly and openly. That's great news for investors, as it lowers the risk of problems managing the car loans.

4. Financial health - cash, debt, liquidity The "financial health" of this Trust is directly tied to the quality and payment performance of the auto loans it holds. There's no outside guarantees or extra support for these Notes and Certificates. No third-party guarantees, letters of credit, or insurance cover possible losses. This means any support comes from within the Trust. This includes overcollateralization (more loan value than Notes). It also uses subordination (junior Notes take losses first). A reserve account (cash set aside for shortfalls) might also be used. These internal enhancements are crucial for protecting senior Noteholders. Your investment relies only on car loan payments and how well these internal supports work. The good news, as mentioned, is that the loan pool is diversified, with no single borrower making up a large chunk of the assets. This helps spread the risk. The Trust gets its cash from regular payments from car loan borrowers. These payments then go to investors based on the payment order.

5. Key risks that could hurt the value of your investment Remember, you're not buying "stock" in a company. You're buying "Notes" or "Certificates" that are claims on car loan payments. So, there's no "stock price" in the traditional sense.

   The main risk to your investment is the performance of the underlying auto loans. This includes several smaller risks:

   • Credit Risk: Many borrowers might stop making car payments. This causes more late payments and defaults. Then, the Trust's cash flow drops, hurting payments to Noteholders.
   • Recovery Risk: Cars might lose value quickly (e.g., if used car prices drop). Less money comes from repossessed cars after a default. This increases the loss on defaulted loans.
   • Prepayment Risk: Borrowers might pay off loans early (e.g., by refinancing or selling cars). Investors get their money back sooner, but you might earn less elsewhere.
   • Extension Risk: Loans might pay off slower than expected. This extends the Notes' average life, keeping your money tied up longer.

   The filing mentions legal issues involving U.S. Bank, the Trustee. These lawsuits concern U.S. Bank's role as trustee for other investments (like home loan investments and student loans), not this World Omni Auto Receivables Trust. The filing indicates these issues are not important to investors in this Trust.

6. Leadership or strategy changes The filing mentions an "Omnibus Amendment to Sale and Servicing Agreement" dated January 13, 2026. This changes one of the main legal documents for the Trust. It specifically amends the agreement for selling and servicing the loans. Such an amendment usually changes the rules for how the loans are packaged and sold. This could affect how loans are serviced, payment order, or other key operations. Investors would need to review the amendment's details. This is key to understanding its effects, especially since it happened after the year ended (December 31, 2025). The report was signed by Michael Hollis, Group Vice President and Assistant Secretary of World Omni Financial Corp., acting as the Servicer for the Trust.

7. Market trends or regulatory changes affecting them The compliance confirmation means following Regulation AB rules. This regulation sets reporting and servicing standards for these investments. This ensures openness and protects investors.