Company: ABR-PF
Filing Date: 2025-10-31
Form Type: 10-Q
Source: 0001253986-25-000022
Chunk: 105

Company: ARBOR REALTY TRUST INC
Filing Date: 2025-10-31
Form: 10-Q
Item: Part I, Item 1
Chunk 105
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The derivative financial instruments using Level 3 inputs are outstanding for short periods of time (generally less than 60 days). A roll-forward of Level 3 derivative instruments is as follows (in thousands): Fair Value Measurements Using Significant Unobservable InputsThree Months Ended September 30,Nine Months Ended September 30,2025202420252024Derivative assets and liabilities, netBeginning balance$382 $1,066 $— $428 Settlements(15,342)(13,460)(34,020)(36,902)Realized gains recorded in earnings14,960 12,394 34,020 36,474 Unrealized gains recorded in earnings578 376 578 376 Ending balance$578 $376 $578 $376 The components of fair value and other relevant information associated with our forward sales commitments and the estimated fair value of cash flows from servicing on loans held-for-sale are as follows (in thousands):September 30, 2025Notional/Principal AmountFair Value ofServicing RightsUnrealized Impairment LossTotal Fair ValueAdjustmentRate lock commitments$55,585 $578 $— $578 Forward sale commitments293,732 — — — Loans held-for-sale, net (1)318,756 3,329 1,444 4,773 Total$3,907 $1,444 $5,351 ________________________(1)Loans held-for-sale, net are recorded at the lower of cost or market on an aggregate basis and includes fair value adjustments related to estimated cash flows from MSRs. We measure certain assets and liabilities for which fair value is only disclosed. The fair values of these assets and liabilities are determined using the following input levels at September 30, 2025 (in thousands):Fair Value Measurements Using Fair Value HierarchyCarrying ValueFair ValueLevel 1Level 2Level 3Financial assets: Loans and investments, net$11,430,418 $11,438,731 $— $— $11,438,731 Loans held-for-sale, net319,207 327,011 — 323,682 3,329 Capitalized mortgage servicing rights, net344,913 477,043 — — 477,043 Securities held-to-maturity, net155,969 155,310 — — 155,