Arbor(US:ABR)2025-10-31 12:44Financial Performance - Arbor Realty Trust reported net income of $38.5 million, or $0.20 per diluted common share, for Q3 2025, down from $58.2 million, or $0.31 per diluted common share, in Q3 2024[2] - Distributable earnings for the quarter were $72.9 million, or $0.35 per diluted common share, compared to $88.2 million, or $0.43 per diluted common share, in the same quarter last year[2] - Net income attributable to common stockholders for Q3 2025 was $38,463,000, a decrease of 33.9% from $58,175,000 in Q3 2024[28] - Basic earnings per common share for Q3 2025 was $0.20, down from $0.31 in Q3 2024, reflecting a decline of 35.5%[28] - Distributable earnings for Q3 2025 were $72.94 million, compared to $88.18 million in Q3 2024, reflecting a decrease of approximately 17.3%[37] - Diluted distributable earnings per share for Q3 2025 were $0.35, down from $0.43 in Q3 2024[37] Revenue and Income - Interest income for Q3 2025 was $223,001,000, a decrease of 22.1% from $286,522,000 in Q3 2024[28] - Net interest income for Q3 2025 was $38,266,000, down 56.9% from $88,812,000 in Q3 2024[28] - Total other revenue increased to $74,163,000 in Q3 2025, compared to $67,841,000 in Q3 2024, representing an increase of 19.2%[28] Assets and Liabilities - Total assets as of September 30, 2025, were $13,887,179,000, an increase from $13,490,981,000 at the end of 2024[30] - Total liabilities increased to $10,772,231,000 as of September 30, 2025, compared to $10,339,011,000 at the end of 2024[30] - Total liabilities amounted to $10.77 billion, with debt obligations at $10.36 billion[35] - The company’s goodwill and other intangible assets totaled $86.94 million[35] - Total assets reached $13.89 billion, with cash and cash equivalents at $423.38 million[35] Loan and Credit Losses - The total allowance for loan losses was $246.3 million, with a net provision for loan losses of $17.5 million recorded during the quarter[12] - The company reported a provision for credit losses of $18.38 million for Q3 2025, compared to $17.08 million in Q3 2024[37] - The allowance for credit losses was $246,309,000 as of September 30, 2025, compared to $238,967,000 at the end of 2024[30] - The company modified 19 loans totaling $808.6 million for borrowers experiencing financial difficulty during the quarter[14] Business Operations - The servicing portfolio increased to approximately $35.17 billion, a 4% increase from the previous quarter, with agency loan originations of $1.98 billion, the strongest quarter since Q4 2020[3] - The Agency Business generated revenues of $81.1 million, up from $64.5 million in the previous quarter, with a gain on sales margin of 1.15%[4] - The company generated approximately $360 million of liquidity through balance sheet improvements, including a $1.05 billion collateralized securitization vehicle and $500 million of senior unsecured notes[3] Dividends - Arbor declared a quarterly cash dividend of $0.30 per share, payable on November 26, 2025[21] - The company declared a dividend of $0.30 per share for Q3 2025, down from $0.43 per share in Q3 2024[28] Interest Rates - The weighted average interest rate on the loan and investment portfolio decreased to 6.64%, down from 7.03% in the previous quarter[10] Allowance for Loss-Sharing Obligations - The company's total CECL allowance for loss-sharing obligations was $60.4 million, representing 0.26% of the Fannie Mae servicing portfolio[8] - The allowance for loss-sharing obligations was $95.82 million[35] REIT Status - The company aims to maintain REIT status by distributing at least 90% of its REIT-taxable income[38]