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
Agency Loan Volume (in thousands) | ||||||||
Quarter Ended | ||||||||
March 31, 2024 | December 31, 2023 | |||||||
Fannie Mae | $ | 458,429 | $ | 1,177,203 | ||||
Freddie Mac | 370,102 | 98,370 | ||||||
FHA | — | 26,493 | ||||||
Private Label | 15,410 | 140,606 | ||||||
SFR-Fixed Rate | 2,318 | — | ||||||
Total Originations | $ | 846,259 | $ | 1,442,672 | ||||
Total Loan Sales | $ | 1,085,374 | $ | 1,270,356 | ||||
Total Loan Commitments | $ | 934,243 | $ | 1,362,379 | ||||
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 $16.6 million.
Fee-Based Servicing Portfolio ($ in thousands) | ||||||||||||||||
March 31, 2024 | December 31, 2023 | |||||||||||||||
UPB | Wtd. Avg. Fee (bps) | Wtd. Avg. Life (years) | UPB | Wtd. Avg. Fee (bps) | Wtd. Avg. Life (years) | |||||||||||
Fannie Mae | $ | 21,548,221 | 47.1 | 7.2 | $ | 21,264,578 | 47.4 | 7.4 | ||||||||
Freddie Mac | 5,301,291 | 23.4 | 7.7 | 5,181,933 | 24.0 | 8.5 | ||||||||||
Private Label | 2,524,013 | 18.9 | 6.3 | 2,510,449 | 19.5 | 6.7 | ||||||||||
FHA | 1,365,329 | 14.4 | 19.0 | 1,359,624 | 14.4 | 19.2 | ||||||||||
Bridge | 380,712 | 10.9 | 3.6 | 379,425 | 10.9 | 3.2 | ||||||||||
SFR-Fixed Rate | 265,429 | 20.1 | 5.0 | 287,446 | 20.1 | 5.1 | ||||||||||
Total | $ | 31,384,995 | 38.8 | 7.7 | $ | 30,983,455 | 39.1 | 8.0 | ||||||||
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 $38.1 million, representing 0.18% of the Fannie Mae servicing portfolio.
Structured Business
Portfolio and Investment Activity
Structured Portfolio Activity ($ in thousands) | ||||||||||||||
Quarter Ended | ||||||||||||||
March 31, 2024 | December 31, 2023 | |||||||||||||
UPB | % | UPB | % | |||||||||||
Bridge: | ||||||||||||||
Multifamily | $ | 39,235 | 15 | % | $ | 38,700 | 14 | % | ||||||
SFR | 171,490 | 67 | % | 198,629 | 75 | % | ||||||||
210,725 | 82 | % | 237,329 | 89 | % | |||||||||
. | ||||||||||||||
Mezzanine/Preferred Equity | 45,129 | 18 | % | 28,829 | 11 | % | ||||||||
Total Originations | $ | 255,854 | 100 | % | $ | 266,158 | 100 | % | ||||||
Number of Loans Originated | 59 | 58 | ||||||||||||
SFR Commitments | $ | 411,617 | $ | 466,703 | ||||||||||
Loan Runoff | $ | 640,018 | $ | 817,394 |
Structured Portfolio ($ in thousands) | ||||||||||||||
March 31, 2024 | December 31, 2023 | |||||||||||||
UPB | % | UPB | % | |||||||||||
Bridge: | ||||||||||||||
Multifamily | $ | 10,254,756 | 84 | % | $ | 10,789,936 | 86 | % | ||||||
SFR | 1,445,028 | 12 | % | 1,316,803 | 10 | % | ||||||||
Other | 166,505 | 1 | % | 166,505 | 1 | % | ||||||||
11,866,289 | 97 | % | 12,273,244 | 97 | % | |||||||||
Mezzanine/Preferred Equity | 377,845 | 3 | % | 334,198 | 3 | % | ||||||||
SFR Permanent | 5,728 | <1 | % | 7,564 | <1 | % | ||||||||
Total Portfolio | $ | 12,249,862 | 100 | % | $ | 12,615,006 | 100 | % | ||||||
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 ...