ABR - Arbor Realty Trust Reports First Quarter 2024 Results and Declares Dividend of $0.43 per Share | Benzinga

Company Highlights:

• GAAP net income of $0.31 per diluted common share
• Distributable earnings¹ of $0.47, or $0.48 per diluted common share, excluding a $1.6 million realized loss on a non-performing loan that was previously reserved for
• Declares cash dividend on common stock of $0.43 per share representing a 91% payout ratio
• Strong liquidity position with ~$800 million in cash and liquidity and ~$600 million of restricted cash in CLO vehicles with a cost of debt below the current market²
• Agency loan originations of $846.3 million; a servicing portfolio of ~$31.38 billion, up 9% from 1Q23
• Structured loan originations of $255.9 million, runoff of $640.0 million and a portfolio of ~$12.25 billion
• Repurchased $11.4 million of common stock in April 2024 at an average price of $12.19 per share, reflecting an ~4% discount to book value

UNIONDALE, N.Y., May 03, 2024 (GLOBE NEWSWIRE) -- Arbor Realty Trust, Inc. (NYSE:ABR), today announced financial results for the first quarter ended March 31, 2024. Arbor reported net income for the quarter of $57.9 million, or $0.31 per diluted common share, compared to net income of $84.3 million, or $0.46 per diluted common share for the quarter ended March 31, 2023. Distributable earnings for the quarter was $96.7 million, or $0.47 per diluted common share, compared to $122.2 million, or $0.62 per diluted common share for the quarter ended March 31, 2023.

Agency Business

Loan Origination Platform

For the quarter ended March 31, 2024, the Agency Business generated revenues of $66.6 million, compared to $96.3 million for the fourth quarter of 2023. Gain on sales, including fee-based services, net was $16.7 million for the quarter, reflecting a margin of 1.54%, compared to $16.7 million and 1.32% for the fourth quarter of 2023. Income from mortgage servicing rights was $10.2 million for the quarter, reflecting a rate of 1.32% as a percentage of loan commitments (excluding $160.2 million of loan commitments not serviced for a fee), compared to $21.1 million and 1.55% for the fourth quarter of 2023.

At March 31, 2024, loans held-for-sale was $322.9 million, with financing associated with these loans totaling $312.0 million.

Fee-Based Servicing Portfolio

The Company's fee-based servicing portfolio totaled $31.38 billion at March 31, 2024. Servicing revenue, net was $31.5 million for the quarter and consisted of servicing revenue of $48.2 million, net of amortization of mortgage servicing rights totaling $16.6 million.

Loans sold under the Fannie Mae program contain an obligation to partially guarantee the performance of the loan ("loss-sharing obligations") and includes $34.7 million for the fair value of the guarantee obligation undertaken at March 31, 2024. The Company recorded a $0.3 million net provision for loss sharing associated with CECL for the first quarter of 2024. At March 31, 2024, the Company's total CECL allowance for loss-sharing obligations was $38.1 million, representing 0.18% of the Fannie Mae servicing portfolio.

Structured Business

Portfolio and Investment Activity

At March 31, 2024, the loan and investment portfolio's unpaid principal balance ("UPB"), excluding loan loss reserves, was $12.25 billion, with a weighted average current interest pay rate of 8.07%, compared to $12.62 billion and 8.42% at December 31, 2023. Including certain fees earned and costs associated with the loan and investment portfolio, the weighted average current interest pay rate was 8.81% at March 31, 2024, compared to 8.98% at December 31, 2023.

The average balance of the Company's loan and investment portfolio during the first quarter of 2024, excluding loan loss reserves, was $12.52 billion with a weighted average yield of 9.44%, compared to $12.96 billion and 9.31% for the fourth quarter of 2023.

During the first quarter of 2024, the Company recorded a $17.8 million provision for loan losses associated with CECL. At March 31, 2024, the Company's total allowance for loan losses was $211.9 million. The Company had twenty-one non-performing loans with a UPB of $464.8 million, before related loan loss reserves of $32.9 million, compared to sixteen loans with a carrying value of $274.2 million, before loan loss reserves of $27.1 million at December 31, 2023.

In addition, at March 31, 2024, the Company had twelve loans with a total UPB of $489.4 million that were less than 60 days past due, compared to twenty-four loans with a total UPB of $956.9 million at December 31, 2023. Interest income on these loans is only being recorded to the extent cash is received.

During the first quarter of 2024, the Company modified thirty-nine loans with a total ...

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