Company: ABR-PF
Filing Date: 2025-10-31
Form Type: 10-Q
Source: 0001253986-25-000022
Chunk: 183

Company: ARBOR REALTY TRUST INC
Filing Date: 2025-10-31
Form: 10-Q
Item: Part I, Item 8
Chunk 183
---
 At September 30, 2025 and December 31, 2024, we have recorded deferred interest totaling $71.7 million and $61.3 million, respectively, on all modified loans to borrowers experiencing financial difficulty, which includes deferred interest from loan resolutions. The deferred interest is included in other assets on the consolidated balance sheets.At September 30, 2025 and December 31, 2024, we had future funding commitments on modified loans with borrowers experiencing financial difficulty of $20.6 million and $56.4 million, respectively, which are generally subject to performance covenants that must be met by the borrower to receive funding.All loan modifications completed in the past 12 months were performing pursuant to their contractual terms at September 30, 2025, except for twenty-one loans with a total UPB of $504.7 million, which includes sixteen loans with a total UPB of $416.3 million that were modified to provide temporary rate relief through a pay and accrual feature. Since these loans are not performing pursuant to their modified terms, these loans are classified as non-accrual loans. Five of these loans with a UPB of $130.3 million have a specific loan loss reserve of $24.3 million. The remaining sixteen loans with a total UPB of $374.3 million have no specific reserves as the estimated fair value of the properties exceeded our carrying value at September 30, 2025. There were no other material loan modifications, refinancings and/or extensions during the three and nine months ended September 30, 2025 and 2024 for borrowers experiencing financial difficulty.Loan ResolutionsIn June 2025, we exercised our right to foreclose on three properties in San Antonio, Texas that were the underlying collateral for a bridge loan with a UPB of $77.7 million, an interest rate of 5.25% with a SOFR floor of 0.50%, and a net carrying value of $66.6 million, which includes loan loss reserves of $3.5 million. At foreclosure, we recorded an additional loss of $5.9 million to the provision for credit losses on the consolidated statements of income and charged-off the $9.4 million loan loss reserve. We simultaneously sold the properties for $65.0 million to a new borrower and provided a $65.0 million bridge loan with an interest rate of SOFR plus 2.00% for years one and two, and SOFR plus 3