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

Company: ARBOR REALTY TRUST INC
Filing Date: 2025-10-31
Form: 10-Q
Item: Part I, Item 2
Chunk 25
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 in the diluted weighted average shares outstanding.

Item 3.    Quantitative and Qualitative Disclosures About Market Risk

We disclosed a quantitative and qualitative analysis regarding market risk in Item 7A of our 2024 Annual Report. That information is supplemented by the information included above in Item 2 of this report. Other than the developments described thereunder, there have been no material changes in our exposure to market risk since December 31, 2024.

The following table projects the potential impact on interest (in thousands) for a 12-month period, assuming a hypothetical instantaneous increase or decrease of 50 basis points and a decrease of 100 basis points in corresponding interest rates. Since it is unlikely that interest rates will significantly increase in the near future as a result of the current high interest rate environment, we have excluded the impact of a 100 basis point increase in corresponding interest rates.

Assets (Liabilities)Subject to InterestRate Sensitivity (1)50 Basis PointIncrease50 Basis PointDecrease100 Basis PointDecreaseInterest income from loans and investments$11,708,762 $46,666 $(43,132)$(79,650)Interest expense from debt obligations(10,117,687)41,153 (41,873)(82,769)Impact to net interest income from loans and investments5,513 (1,259)3,119 Interest income from cash, restricted cash and escrow balances (2)1,949,900 9,750 (9,750)(19,499)Total impact from hypothetical changes in interest rates$15,263 $(11,009)$(16,380)

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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 September 30, 2025.

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(2)Our cash, restricted cash and escrows are currently earning interest at a weighted average blended rate of approximately 4.0%, or approximately $78 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)