GAAP net income of $0.6 million, or $0.00 per diluted common share
Distributable earnings1 of $0.07, or $0.18 per diluted common share, excluding $22.9 million of net realized losses from the resolution of certain legacy assets
Declares cash dividend on common stock of $0.17 per share
Servicing portfolio of ~$36.31 billion, agency loan originations of $707.6 million
Structured loan portfolio of ~$12.00 billion, originations of $767.6 million and runoff of $861.0 million
Closed a $762.6 million collateralized securitization vehicle with enhanced leverage, generating ~$35 million of additional liquidity
Purchased $30.7 million of stock at an average price of $7.46 per share, or 66% of book value
UNIONDALE, N.Y., May 08, 2026 (GLOBE NEWSWIRE) -- Arbor Realty Trust, Inc. (NYSE:ABR), today announced financial results for the first quarter ended March 31, 2026. Arbor reported net income for the quarter of $0.6 million, or $0.00 per diluted common share, compared to net income of $30.4 million, or $0.16 per diluted common share for the quarter ended March 31, 2025. Distributable earnings for the quarter was $14.4 million, or $0.07 per diluted common share, compared to $57.3 million, or $0.28 per diluted common share for the quarter ended March 31, 2025.
Agency Business
Loan Origination Platform
Agency Loan Volume (in thousands)
Quarter Ended
March 31, 2026
December 31, 2025
Fannie Mae
$
570,815
$
1,068,889
Freddie Mac
91,255
493,294
FHA
45,507
62,104
SFR-Fixed Rate
—
3,857
Total Originations
$
707,577
$
1,628,144
Total Loan Sales
$
670,972
$
1,539,801
Total Loan Commitments
$
733,860
$
1,602,180
For the quarter ended March 31, 2026, the Agency Business generated revenues of $57.9 million, compared to $81.0 million for the fourth quarter of 2025. Gain on sales, including fee-based services, net was $12.5 million for the quarter, reflecting a margin of 1.86%, compared to $20.9 million and 1.36% for the fourth quarter of 2025. Income from mortgage servicing rights was $9.7 million for the quarter, reflecting a rate of 1.32% as a percentage of loan commitments, compared to $19.9 million and 1.24% for the fourth quarter of 2025.
At March 31, 2026, loans held-for-sale was $443.2 million, with financing associated with these loans totaling $424.9 million.
Fee-Based Servicing Portfolio
The Company's fee-based servicing portfolio totaled $36.31 billion at March 31, 2026. Servicing revenue, net was $25.7 million for the quarter and consisted of servicing revenue of $44.0 million, net of amortization of mortgage servicing rights totaling $18.3 million.
Fee-Based Servicing Portfolio ($ in thousands)
March 31, 2026
December 31, 2025
UPB
Wtd. Avg. Fee (bps)
Wtd. Avg. Life (years)
UPB
Wtd. Avg. Fee (bps)
Wtd. Avg. Life (years)
Fannie Mae
$
24,261,724
44.4
5.4
$
24,085,960
44.7
5.5
Freddie Mac
7,368,979
18.2
5.7
7,455,088
18.3
5.9
Private Label
2,554,209
18.7
4.3
2,558,048
18.7
4.5
FHA
1,584,644
13.8
19.0
1,549,483
13.9
19.1
Bridge
277,523
10.4
2.0
277,738
10.4
2.2
SFR-Fixed Rate
264,008
20.0
3.8
277,490
20.0
4.0
Total
$
36,311,087
35.5
5.9
$
36,203,807
35.6
6.1
Loans sold under the Fannie Mae program contain an obligation to partially guarantee the performance of the loan ("loss-sharing obligations") and includes $36.1 million for the fair value of the guarantee obligation undertaken at March 31, 2026. The Company recorded a $4.1 million net provision for loss sharing associated with CECL for the first quarter of 2026. At March 31, 2026, the Company's total CECL allowance for loss-sharing obligations was $70.7 million, representing 0.29% of the Fannie Mae servicing portfolio.
Structured Business
Portfolio and Investment Activity
Structured Portfolio Activity ($ in thousands)
Quarter Ended
March 31, 2026
December 31, 2025
UPB
%
UPB
%
Bridge:
Multifamily
$
405,600
53
%
$
336,945
30
%
SFR
321,122
42
%
668,059
61
%
726,722
95
%
1,005,004
91
%
Construction - Multifamily
40,870
5
%
61,206
6
%
Mezzanine/Preferred Equity
—
—
%
36,922
3
%
Total Originations
$
767,592
100
%
$
1,103,132
100
%
Number of Loans Originated
6
29
Commitments:
Construction - Multifamily
$
113,070
$
62,000
SFR
53,000
245,750
Total Commitments
$
166,070
$
307,750
Loan Runoff
$
861,033
$
537,519
Structured Portfolio ($ in thousands)
March 31, 2026
December 31, 2025
UPB
%
UPB
%
Bridge:
Multifamily
$
7,897,122
66
%
$
8,143,114
67
%
SFR
3,265,802
27
%
3,184,910
26
%
Other
46,519
<1
%
43,734
<1
%
11,209,443
94
%
11,371,758
94
%
Mezzanine/Preferred Equity
497,961
4
%
492,330
4
%
Construction - Multifamily
289,889
2
%
249,019
2
%
Total Portfolio
$
11,997,293
100
%
$
12,113,107
100
%
At March 31, 2026, the loan and investment portfolio's unpaid principal balance ("UPB"), excluding loan loss reserves, was $12.00 billion, with a weighted average interest rate of 6.49%, compared to $12.11 billion and 6.49% at December 31, 2025. Including certain fees earned and costs associated with the loan and investment portfolio, the weighted average interest rate was 7.03% at March 31, 2026, compared to 7.08% at December 31, 2025.
The average balance of the Company's loan and investment portfolio during the first quarter of 2026, excluding loan loss reserves, was $12.04 billion with a weighted average yield of 7.50%, compared to $11.84 billion and 7.38% for the fourth quarter of 2025. The increase in the weighted average yield was primarily due to a net decline in loan delinquencies in the first quarter of 2026, partially offset by a decrease in the average SOFR rate in the first quarter of 2026.
During the first quarter of 2026, the Company recorded a $3.6 million net provision for loan losses associated with CECL. At March 31, 2026, the Company's total allowance for loan losses was $131.2 million. The Company had nineteen non-performing loans with a UPB of $481.5 million, before related loan loss reserves of $16.1 million, compared to twenty-six non-performing loans with a UPB of $569.1 million, before loan loss reserves of $10.2 million at December 31, 2025. In addition, the Company recorded $12.5 million of impairments on six real estate owned properties.
At March 31, 2026, the Company had no loans that were less than 60 days past due classified as non-accrual, compared to three loans with a total UPB of $48.3 million at December 31, 2025.
During the first quarter of 2026, the Company modified 13 loans to borrowers experiencing financial difficulty with a total UPB of $478.8 million, the majority of which had borrowers investing additional capital to recapitalize their deals. In addition, of the total modified loans for the first quarter, $115.4 million were non-performing at December 31, 2025, and are now current in accordance with their modified terms.
The Company foreclosed on three loans with a UPB totaling $58.9 million, selling one of these foreclosed properties and one existing REO property for $33.0 million.
Financing Activity
The balance of debt that finances the Company's loan and investment portfolio at March 31, 2026 was $10.71 billion with a weighted average interest rate including fees of 6.40%, as compared to $10.46 billion and a rate of 6.45% at December 31, 2025.
The average balance of debt that finances the Company's loan and investment portfolio for the first quarter of 2026 was $10.38 billion, as compared to $10.09 billion for the fourth quarter of 2025. The average cost of borrowings for the first quarter of 2026 was 6.67%, compared to 6.81% for the fourth quarter of 2025. The decrease in average cost was primarily due to a decrease in the average SOFR rate in the first quarter of 2026, partially offset by the issuance of $400 million of senior unsecured notes in December 2025.
The Company completed a $762.6 million collateralized securitization secured initially by a portfolio of real estate related assets and cash. Investment grade-rated notes totaling $674.0 million were issued, and the Company retained subordinate interests in the issuing vehicle of $88.6 million. The facility has a two and a half year asset replenishment period and an initial weighted average interest rate of 1.73% over term SOFR, excluding fees and transaction costs.
Dividend
The Company announced today that its Board of Directors has declared a quarterly cash dividend of $0.17 per share of common stock for the quarter ended March 31, 2026. The dividend is payable on June 5, 2026 to common stockholders of record on May 22, 2026.
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) 267-6316 for domestic callers and (203) 518-9783 for international callers. Please use participant passcode ABRQ126 when prompted by the operator.
A telephonic replay of the call will be available until May 15, 2026. The replay dial-in numbers are (800) 938-1603 for domestic callers and (402) 220-1549 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, 2025 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 two pages of this release.
Contact:
Arbor Realty Trust, Inc.Investor Relations516-506-4200[email protected]
ARBOR REALTY TRUST, INC. AND SUBSIDIARIESConsolidated Statements of Income - (Unaudited)($ in thousands—except share and per share data)
Quarter Ended March 31,
2026
2025
Interest income
$
235,047
$
240,693
Interest expense
175,202
165,251
Net interest income
59,845
75,442
Other revenue:
Gain on sales, including fee-based services, net
12,505
12,781
Mortgage servicing rights
9,660
8,131
Servicing revenue, net
