Fourth Quarter Highlights:
GAAP net income of $0.48 per diluted common share
Distributable earnings1 of $0.51, or $0.54 per diluted common share excluding a $7.0 million realized loss on an office property that was previously reserved for
Declares cash dividend on common stock of $0.43 per share representing an annualized dividend of $1.72 per share
Strong liquidity position with ~$1 billion in cash and liquidity and ~$600 million of restricted cash in replenishable CLO vehicles with a weighted average cost of 1.74% over SOFR2
Agency loan originations of $1.44 billion and a servicing portfolio of ~$30.98 billion, up 3.5%
Structured loan originations of $266.2 million, runoff of $817.4 million, and a portfolio of ~$12.62 billion
Full Year Highlights:
GAAP net income of $1.75 per diluted common share representing an increase of 5% over last year, and distributable earnings of $2.25 per diluted common share1
Raised dividend twice during 2023 to an annual run rate of $1.72 per share, representing a 7.5% increase over the prior year
Best-in-class total stockholder return of 28%
Agency servicing portfolio growth of 11% from loan originations of $5.11 billion, a 7% increase over the prior year
Structured portfolio reduction of 13% with $3.02 billion of multifamily loan runoff, $1.69 billion of which was recaptured into new agency loan originations
UNIONDALE, N.Y., Feb. 16, 2024 (GLOBE NEWSWIRE) — Arbor Realty Trust, Inc. (NYSE:ABR), today announced financial results for the fourth quarter ended December 31, 2023. Arbor reported net income for the quarter of $91.7 million, or $0.48 per diluted common share, compared to net income of $88.2 million, or $0.49 per diluted common share for the quarter ended December 31, 2022. Net income for the year was $330.1 million, or $1.75 per diluted common share, compared to $284.8 million, or $1.67 per diluted common share for the year ended December 31, 2022. Distributable earnings for the quarter was $104.1 million, or $0.51 per diluted common share, compared to $114.0 million, or $0.60 per diluted common share for the quarter ended December 31, 2022. Distributable earnings for the year was $452.5 million, or $2.25 per diluted common share, compared to $405.7 million, or $2.23 per diluted common share for the year ended December 31, 2022. 1
Agency Business
Loan Origination Platform
Agency Loan Volume (in thousands)
Quarter Ended
Year Ended
December 31, 2023
September 30, 2023
December 31, 2023
December 31, 2022
Fannie Mae
$
1,177,203
$
721,398
$
3,773,532
$
2,919,566
Freddie Mac
98,370
339,241
756,827
1,353,001
Private Label
140,606
67,965
299,934
217,542
FHA
26,493
19,215
257,199
188,394
SFR – Fixed Rate
—
2,030
19,328
89,683
Total Originations
$
1,442,672
$
1,149,849
$
5,106,820
$
4,768,186
Total Loan Sales
$
1,270,356
$
1,275,420
$
4,889,199
$
5,438,623
Total Loan Commitments
$
1,362,379
$
1,211,347
$
5,207,148
$
5,146,718
For the quarter ended December 31, 2023, the Agency Business generated revenues of $96.3 million, compared to $80.8 million for the third quarter of 2023. Gain on sales, including fee-based services, net on the GSE/Agency business (excluding private label and SFR) was $15.4 million for the quarter, reflecting a margin of 1.36%, compared to $17.7 million and 1.48% for the third quarter of 2023. Income from mortgage servicing rights was $21.1 million for the quarter, reflecting a rate of 1.55% as a percentage of loan commitments, compared to $14.1 million and 1.16% for the third quarter of 2023.
At December 31, 2023, loans held-for-sale was $551.7 million, with financing associated with these loans totaling $413.3 million.
Fee-Based Servicing Portfolio
The Company’s fee-based servicing portfolio totaled $30.98 billion at December 31, 2023. Servicing revenue, net was $33.1 million for the quarter and consisted of servicing revenue of $49.2 million, net of amortization of mortgage servicing rights totaling $16.2 million.
Fee-Based Servicing Portfolio ($ in thousands)
December 31, 2023
September 30, 2023
December 31, 2022
UPB
Wtd. Avg.
Fee (bps)
Wtd. Avg.
Life (years)
UPB
Wtd. Avg.
Fee (bps)
Wtd. Avg.
Life (years)
UPB
Wtd. Avg.
Fee (bps)
Wtd. Avg.
Life (years)
Fannie Mae
$
21,264,578
47.4
7.4
$
20,463,620
48.3
7.7
$
19,038,124
50.2
8.0
Freddie Mac
5,181,933
24.0
8.5
5,184,888
24.2
8.5
5,153,207
25.0
9.0
Private Label
2,510,449
19.5
6.7
2,371,475
19.2
7.3
2,074,859
18.5
7.6
FHA
1,359,624
14.4
19.2
1,322,832
14.5
19.9
1,155,893
14.9
19.5
Bridge
379,425
10.9
3.2
305,950
11.2
3.6
301,182
12.5
1.7
SFR-Fixed Rate
287,446
20.1
5.1
287,942
20.1
5.8
274,764
19.8
6.0
Total
$
30,983,455
39.1
8.0
$
29,936,707
39.7
8.3
$
27,998,029
41.1
8.6
Loans sold under the Fannie Mae program contain an obligation to partially guarantee the performance of the loan (“loss-sharing obligations”) and includes $34.6 million for the fair value of the guarantee obligation undertaken at December 31, 2023. The Company recorded a $3.1 million net provision for loss sharing associated with CECL for the fourth quarter of 2023. At December 31, 2023, the Company’s total CECL allowance for loss-sharing obligations was $37.0 million, representing 0.17% of the Fannie Mae servicing portfolio.
Structured Business
Portfolio and Investment Activity
Structured Portfolio Activity ($ in thousands)
Quarter Ended
Year Ended
December 31, 2023
September 30, 2023
December 31, 2023
December 31, 2022
UPB
%
UPB
%
UPB
%
UPB
%
Bridge:
Multifamily
$
38,700
14
%
$
92,000
38
%
$
415,330
42
%
$
5,468,222
89
%
SFR
198,629
75
%
140,379
59
%
524,060
54
%
613,819
10
%
237,329
89
%
232,379
97
%
939,390
96
%
6,082,041
99
%
Mezzanine/Preferred Equity
28,829
11
%
7,779
3
%
43,953
4
%
69,606
1
%
Total Originations
$
266,158
100
%
$
240,158
100
%
$
983,343
100
%
$
6,151,647
100
%
Number of Loans Originated
58
42
150
318
SFR Commitments
$
466,703
$
429,452
$
1,150,687
$
1,086,833
Runoff
$
817,394
$
664,792
$
3,354,055
$
3,818,554
Structured Portfolio ($ in thousands)
December 31, 2023
September 30, 2023
December 31, 2022
UPB
%
UPB
%
UPB
%
Bridge:
Multifamily
$
10,789,936
86
%
$
11,421,819
87
%
$
12,830,999
89
%
SFR
1,316,803
10
%
1,163,648
9
%
927,373
6
%
Other
166,505
1
%
205,505
2
%
337,682
2
%
12,273,244
97
%
12,790,972
98
%
14,096,054
97
%
Mezzanine/Preferred Equity
334,198
3
%
321,729
2
%
324,224
2
%
SFR Permanent
7,564
<1
%
9,694
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