Company: ABR-PF
Filing Date: 2025-08-01
Form Type: 10-Q
Source: 0001253986-25-000014
Chunk: 26

Company: ARBOR REALTY TRUST INC
Filing Date: 2025-08-01
Form: 10-Q
Item: Part I, Item 2
Chunk 26
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609,235 $49,058 $(46,585)$(89,615)Interest expense from debt obligations(9,795,184)41,452 (40,854)(81,402)Impact to net interest income from loans and investments7,606 (5,731)(8,213)Interest income from cash, restricted cash and escrow balances (2)1,743,422 8,717 (8,717)(17,434)Total impact from hypothetical changes in interest rates$16,323 $(14,448)$(25,647)

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(1)Represents the UPB of our structured loan portfolio, the principal balance of our debt and the account balances of our cash, restricted cash and escrows at June 30, 2025.

(2)Our cash, restricted cash and escrows are currently earning interest at a weighted average blended rate of approximately 4.0%, or approximately $70 million annually. Interest income earned on our cash and restricted cash is included as a component of interest income and interest income earned on escrows is included as a component of servicing revenue, net in the consolidated statements of income. The interest earned on our cash, restricted cash and escrows is based on an average daily balance and may be different from the end of period balance.

We entered into treasury futures to hedge our exposure to changes in interest rates inherent in (1) our held-for-sale Agency Business Private Label loans from the time the loans are rate locked until sale and securitization, and (2) our Agency Business SFR – fixed rate loans from the time the loans are originated until the time they can be financed with match term fixed rate securitized debt. Our treasury futures are tied to the 5-year and 10-year treasury rates and hedge our exposure to Private Label loans, until the time they are securitized, and changes in the fair value of our held-for-sale Agency Business SFR – fixed rate loans. A 50 basis point and a 100 basis point increase to the 5-year and 10-year treasury rates on our treasury futures held at June 30, 2025 would have resulted in a gain of $0.7 million and $2.3 million, respectively, in the six months ended June 30, 2025, while a 50 basis point and a 100 basis point decrease in the rates would have resulted in a loss of $2.7 million and $4.4 million