Company Highlights: GAAP net income of $0.25 and distributable earnings of $0.45, per diluted common share1 Declares cash dividend on common stock of $0.43 per share Strong liquidity position with ~$725 million in cash and liquidity and ~$215 million of CLO restricted cash2 Agency loan originations of $1.15 billion; a servicing portfolio of ~$32.28 billion, up 3% Structured loan originations of $227.2 million, runoff of $629.6 million and a portfolio of ~$11.87 billion Redeemed our 5.75% senior notes at maturity for ~$90.0 million Repurchased $11.4 million of common stock at an average price of $12.19 per share UNIONDALE, N.Y., Aug. 02, 2024 (GLOBE NEWSWIRE) -- Arbor Realty Trust, Inc. (NYSE:ABR), today announced financial results for the second quarter ended June 30, 2024. Arbor reported net income for the quarter of $47.4 million, or $0.25 per diluted common share, compared to net income of $76.2 million, or $0.41 per diluted common share for the quarter ended June 30, 2023. Distributable earnings for the quarter was $91.6 million, or $0.45 per diluted common share, compared to $114.0 million, or $0.57 per diluted common share for the quarter ended June 30, 2023. Agency Business Loan Origination Platform     Agency Loan Volume (in thousands)     Quarter Ended     June 30, 2024   March 31, 2024 Fannie Mae   $ 742,724   $ 458,429 Freddie Mac     346,821     370,102 Private Label     34,714     15,410 SFR-Fixed Rate     24,996     2,318 Total Originations   $ 1,149,255   $ 846,259           Total Loan Sales   $ 1,135,287   $ 1,085,374           Total Loan Commitments   $ 1,099,713   $ 934,243   For the quarter ended June 30, 2024, the Agency Business generated revenues of $76.8 million, compared to $66.6 million for the first quarter of 2024. Gain on sales, including fee-based services, net was $17.4 million for the quarter, reflecting a margin of 1.54%, compared to $16.7 million and 1.54% for the first quarter of 2024. Income from mortgage servicing rights was $14.5 million for the quarter, reflecting a rate of 1.32% as a percentage of loan commitments, compared to $10.2 million and 1.32% (excluding $160.2 million of loan commitments not serviced for a fee) for the first quarter of 2024. At June 30, 2024, loans held-for-sale was $342.9 million, with financing associated with these loans totaling $335.2 million. Fee-Based Servicing Portfolio The Company's fee-based servicing portfolio totaled $32.28 billion at June 30, 2024. Servicing revenue, net was $29.9 million for the quarter and consisted of servicing revenue of $46.8 million, net of amortization of mortgage servicing rights totaling $16.9 million.     Fee-Based Servicing Portfolio ($ in thousands)     June 30, 2024   March 31, 2024     UPB   Wtd. Avg. Fee (bps)   Wtd. Avg. Life (years)   UPB   Wtd. Avg. Fee (bps)   Wtd. Avg. Life (years) Fannie Mae   $ 22,114,193   46.7   7.0   $ 21,548,221   47.1   7.2 Freddie Mac     5,587,178   22.7   7.4     5,301,291   23.4   7.7 Private Label     2,547,308   18.9   6.0     2,524,013   18.9   6.3 FHA     1,369,507   14.4   18.9     1,365,329   14.4   19.0 Bridge     380,547   10.9   3.4     380,712   10.9   3.6 SFR-Fixed Rate     279,962   20.1   4.9     265,429   20.1   5.0 Total   $ 32,278,695   38.4   7.5   $ 31,384,995   38.8   7.7   Loans sold under the Fannie Mae program contain an obligation to partially guarantee the performance of the loan ("loss-sharing obligations") and includes $34.8 million for the fair value of the guarantee obligation undertaken at June 30, 2024. The Company recorded a $4.4 million net provision for loss sharing associated with CECL for the second quarter of 2024. At June 30, 2024, the Company's total CECL allowance for loss-sharing obligations was $41.8 million, representing 0.19% of the Fannie Mae servicing portfolio. Structured Business Portfolio and Investment Activity     Structured Portfolio Activity ($ in thousands)     Quarter Ended     June 30, 2024   March 31, 2024     UPB   %   UPB   % Bridge:                 Multifamily   $ 19,650   9 %   $ 39,235   15 % SFR     185,500   82 %     171,490   67 % Land     10,350   4 %     —   — %       215,500   95 %     210,725   82 %             .     Mezzanine/Preferred Equity     11,684   5 %     45,129   18 % Total Originations   $ 227,184   100 %   $ 255,854   100 %                   Number of Loans Originated     45         59                       SFR Commitments   $ 277,260       $ 411,617                       Loan Runoff   $ 629,641       $ 640,018           Structured Portfolio ($ in thousands)     June 30, 2024   March 31, 2024     UPB   %   UPB   % Bridge:                 Multifamily   $ 9,679,128   82 %   $ 10,254,756   84 % SFR     1,622,269   14 %     1,445,028   12 % Other     176,855   1 %     166,505   1 %       11,478,252   97 %     11,866,289   97 %                   Mezzanine/Preferred Equity     389,981   3 %     377,845   3 % SFR Permanent     4,975   <1 %     5,728   <1 % Total Portfolio   $ 11,873,208   100 %   $ 12,249,862   100 %   At June 30, 2024, the loan and investment portfolio's unpaid principal balance ("UPB"), excluding loan loss reserves, was $11.87 billion, with a weighted average interest rate of 7.79%, compared to $12.25 billion and 8.07% at March 31, 2024. Including certain fees earned and costs associated with the loan and investment portfolio, the weighted average interest rate was 8.60% at June 30, 2024, compared to 8.81% at March 31, 2024. The decrease in rate was primarily due to an increase in non-performing loans and new non-accrual loans in the second quarter of 2024. The average balance of the Company's loan and investment portfolio during the second quarter of 2024, excluding loan loss reserves, was $12.15 billion with a weighted average yield of 8.99%, compared to $12.52 billion and 9.44% for the first quarter of 2024. During the second quarter of 2024, the Company recorded a $28.9 million provision for loan losses associated with CECL. At June 30, 2024, the Company's total allowance for loan losses was $238.9 million. The Company had 24 non-performing loans with a UPB of $676.2 million, before related loan loss reserves of $28.1 million, compared to twenty-one loans with a UPB of $464.8 million, before loan loss reserves of $32.9 million at March 31, 2024. In addition, at June 30, 2024, the Company had fourteen loans with a total UPB of $367.9 million (before related loan loss reserves of $15.0 million) that were less than 60 days past due, compared to twelve loans with a total UPB of $489.4 million at March 31, 2024. Interest income on these loans is only being recorded to the extent cash is received. During the second quarter of 2024, the Company modified twenty-eight loans with a total UPB of $733.3 million. Fifteen of these loans with a total UPB of $398.1 million, contained interest rates based on pricing over SOFR ranging from 3.25% to 5.25%. Under the loan modification terms, borrowers invested additional capital to recapitalize their deals in exchange for temporary rate relief, which we provided through a pay and accrual feature. At June 30, 2024, these modified loans had a weighted average pay rate of 7.18% and a weighted average accrual rate of 2.14%. A portion of these loans totaling $92.7 million were less than 60 days past due and $62.0 million were non-performing at March 31, 2024, and are now current in accordance with their modified terms. Financing Activity The balance of debt that finances the Company's loan and investment portfolio at June 30, 2024 was $10.26 billion with a weighted average interest rate including fees of 7.53%, as compared to $11.11 billion and a rate of 7.44% at March 31, 2024. The average balance of debt that finances the Company's loan and investment portfolio for the second quarter of 2024 was $10.81 billion, as compared to $11.37 billion for the first quarter of 2024. The average cost of borrowings for the second quarter of 2024 was 7.54%, compared to 7.50% for the first quarter of 2024. Dividend The Company announced today that its Board of Directors has declared a quarterly cash dividend of $0.43 per share of common stock for the quarter ended June 30, 2024. The dividend is payable on August 30, 2024 to common stockholders of record on August 16, 2024. Earnings Conference Call The Company will host a conference call today at 10:00 a.m. Eastern Time. A live webcast and replay of the conference call will be available at www.arbor.com in the investor relations section of the Company's website, or you can access the call telephonically at least ten minutes prior to the conference call. The dial-in numbers are (800) 274-8461 for domestic callers and (203) 518-9843 for international callers. Please use participant passcode ABRQ224 when prompted by the operator. A telephonic replay of the call will be available until August 9, 2024. The replay dial-in numbers are (800) 938-2487 for domestic callers and (402) 220-9026 for international callers. About Arbor Realty Trust, Inc. Arbor Realty Trust, Inc. (NYSE: ABR) is a nationwide real estate investment trust and direct lender, providing loan origination and servicing for multifamily, single-family rental (SFR) portfolios, and other diverse commercial real estate assets. Headquartered in New York, Arbor manages a multibillion-dollar servicing portfolio, specializing in government-sponsored enterprise products. Arbor is a leading Fannie Mae DUS® lender and Freddie Mac Optigo® Seller/Servicer, and an approved FHA Multifamily Accelerated Processing (MAP) lender. Arbor's product platform also includes bridge, CMBS, mezzanine and preferred equity loans. Rated by Standard and Poor's and Fitch Ratings, Arbor is committed to building on its reputation for service, quality, and customized solutions with an unparalleled dedication to providing our clients excellence over the entire life of a loan. Safe Harbor Statement Certain items in this press release may constitute forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. These statements are based on management's current expectations and beliefs and are subject to a number of trends and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. Arbor can give no assurance that its expectations will be attained. Factors that could cause actual results to differ materially from Arbor's expectations include, but are not limited to, changes in economic conditions generally, and the real estate markets specifically, continued ability to source new investments, changes in interest rates and/or credit spreads, and other risks detailed in Arbor's Annual Report on Form 10-K for the year ended December 31, 2023 and its other reports filed with the SEC. Such forward-looking statements speak only as of the date of this press release. Arbor expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in Arbor's expectations with regard thereto or change in events, conditions, or circumstances on which any such statement is based. Notes During the quarterly earnings conference call, the Company may discuss non-GAAP financial measures as defined by SEC Regulation G. In addition, the Company has used non-GAAP financial measures in this press release. A supplemental schedule of non-GAAP financial measures and the comparable GAAP financial measure can be found on the last page of this release. Amounts reflect approximate balances as of July 31, 2024.     Contact: Arbor Realty Trust, Inc.Paul Elenio, Chief Financial         ARBOR REALTY TRUST, INC. AND SUBSIDIARIESConsolidated Statements of Income - (Unaudited)($ in thousands—except share and per share data)       Quarter Ended June 30,   Six Months Ended June 30,       2024       2023       2024       2023   Interest income   $ 297,188     $ 335,737     $ 618,480     $ 663,685   Interest expense     209,227       227,195       426,903       446,569   Net interest income     87,961       108,542       191,577       217,116   Other revenue:                 Gain on sales, including fee-based services, net     17,448       22,587       34,114       37,176   Mortgage servicing rights     14,534       16,201       24,733       34,659   Servicing revenue, net     29,910       32,347       61,436       61,913   Property operating income     1,444       1,430       3,014       2,811   Loss on derivative instruments, net     (275 )     (7,384 )     (5,533 )     (3,161 ) Other income, net