Company: ABR-PF
Filing Date: 2025-08-01
Form Type: 10-Q
Source: 0001253986-25-000014
Chunk: 93

Company: ARBOR REALTY TRUST INC
Filing Date: 2025-08-01
Form: 10-Q
Item: Part I, Item 1
Chunk 93
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 the rating agencies. Rating downgrades of CLO collateral will generally not have a direct impact on the principal balance of a CLO asset for purposes of calculating the CLO overcollateralization test unless the rating downgrade is below a significantly low threshold (e.g., CCC-) as defined in each CLO vehicle.

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

(2)The interest coverage ratio divides interest income by interest expense for the classes senior to those retained by us.Our CLO overcollateralization ratios as of the determination dates subsequent to each quarter are as follows:Determination (1)CLO 16 CLO 17 CLO 18 BTR CLO 1July 2025140.90 %124.46 %130.03 %117.47 %April 2025142.15 %122.65 %127.91 %N/AJanuary 2025136.19 %122.10 %123.89 %N/AOctober 2024129.98 %123.14 %124.20 %N/AJuly 2024127.64 %121.78 %123.67 %N/A________________________(1)This table represents the quarterly trend of our overcollateralization ratio, however, the CLO determination dates are monthly and we were in compliance with this test for all periods presented.

The ratio will fluctuate based on the performance of the underlying assets, transfers of assets into the CLOs prior to the expiration of their respective replenishment dates, purchase or disposal of other investments, and loan payoffs. No payment due under the junior subordinated indentures may be paid if there is a default under any senior debt and the senior lender has sent notice to the trustee. The junior subordinated indentures are also cross-defaulted with each other. 

Note 11 — Allowance for Loss-Sharing Obligations

Our allowance for loss-sharing obligations related to the Fannie Mae DUS program is as follows (in thousands):Three Months Ended June 30,Six Months Ended June 30,2025202420252024Beginning balance$85,515 $72,790 $83,150 $71,634 Provisions for loss sharing 6,471 4,714 8,649 5,773 Provisions reversal for loan