Company: ABR-PF
Filing Date: 2025-08-01
Form Type: 10-Q
Source: 0001253986-25-000014
Chunk: 256

Company: ARBOR REALTY TRUST INC
Filing Date: 2025-08-01
Form: 10-Q
Item: Part I, Item 8
Chunk 256
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 interest-bearing liabilities, mainly from a decrease in SOFR.

Agency Business Revenue

The decrease in gain on sales, including fee-based services, net was primarily due to a 29% decrease in loan sales volume ($328.3 million), partially offset by a 10% increase in the sales margin from 1.54% to 1.69%. The increase in the sales margin was mainly due to the portfolio mix in 2025 that produced higher margins.  

The decrease in income from MSRs was primarily due to a 22% decrease in loan commitment volume ($246.9 million).  

The decrease in servicing revenue, net was primarily due to a decrease in earnings on escrow balances from lower average balances and a decrease in the applicable interest rate.

60

Other Income (Loss)

The increases in property operating income and expenses were due to the addition of several new REO assets. This is also the reason for the increase in depreciation and amortization.

The increase in other income, net was primarily due to increases in the fair values of our Private Label loans and loan fees from our Agency Business. 

Other Expenses

The decrease in employee compensation and benefits expense was primarily due to decreases in commissions and incentive compensation from lower GSE/Agency loan sales volume and bonus allocation targets.

The increase in selling and administrative expenses was primarily due to increases in legal and professional fees.

The decrease in the provision for credit losses (net of recoveries) was primarily related to general improvements in the forecasted outlook for commercial real estate in 2025 and a decrease in specifically impaired loans, net of recoveries.

(Loss) Gain on Real Estate

The loss on real estate in 2025 is substantially comprised of losses on below market debt totaling $1.5 million related to financing on the sale of several REO assets. The $3.8 million gain on real estate in 2024 represents the gain recognized on the sale of an REO asset.

Income from Equity Affiliates

Income from equity affiliates in 2025 primarily reflects a $3.4 million distribution received from our Lexford joint venture, partially offset by a $1.0 million loss from our AMAC III investment; while income in 2024 primarily reflects a $4.2 million distribution received from Lexford, partially offset by losses from our investments in a residential mortgage banking business and AMAC III totaling $1.5 million.

Provision for Income Taxes

In the three months ended June 30, 2025, we recorded a tax provision