Company: ABR-PF
Filing Date: 2025-10-31
Form Type: 10-Q
Source: 0001253986-25-000022
Chunk: 220

Company: ARBOR REALTY TRUST INC
Filing Date: 2025-10-31
Form: 10-Q
Item: Part I, Item 8
Chunk 220
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 below par, or not be able to collect all principal and interest in accordance with the contractual terms of the loan agreement. These loans are valued using pricing models that incorporate observable inputs from current market assumptions or a hypothetical securitization model utilizing observable market data from recent securitization spreads and observable pricing of loans with similar characteristics.The tables above and below include all impaired loans, regardless of the period in which the impairment was recognized.Quantitative information about Level 3 fair value measurements at September 30, 2025 is as follows ($ in thousands):Fair ValueValuation TechniquesSignificant Unobservable Inputs Financial assets:Impaired loans:Weighted AverageMinimum / MaximumMultifamily$344,535 Discounted cash flowsCapitalization rate6.05 %5.50 % - 7.00 %80,580 Price quotesN/AN/AN/A$425,115 Land$49,999 Discounted cash flowsDiscount rate21.50 %21.50 %Revenue growth rate3.00 %3.00 %Retail$11,861 Sales comparativePrice per acre$165$165Derivative financial instruments:Rate lock commitments$578 Discounted cash flowsW/A discount rate9.87 %9.87 %

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Table of ContentsARBOR REALTY TRUST, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

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 Imp