ARBOR REALTY TRUST INCABR
ARBOR REALTY TRUST INC Segments Disclosure
Segment Information
As described in Note 1, we operate through two business segments – our Structured Business and our Agency Business. The summarized statements of income and balance sheet data, as well as certain other data, by segment are included in the following tables ($ in thousands). Specifically identifiable costs are recorded directly to each business segment. For items not specifically identifiable, costs have been allocated between the business segments using the most meaningful allocation methodologies, which was predominately direct labor costs (i.e., time spent working on each business segment). Such costs include, but are not limited to, compensation and employee related costs, selling and administrative expenses and stock-based compensation. Intersegment revenue and expenses have been eliminated in the computation of total revenue and operating income.
Our chief operating decision maker (“CODM”) is Ivan Kaufman, our Chief Executive Officer. The CODM uses both net interest income and net income for each segment predominantly in the annual budget and forecasting process. The CODM considers both budget and actual results on a quarterly basis for both profit measures when making decisions about the allocation of operating and capital resources to each segment. The CODM also uses segment net interest income and net income to assess the performance of each segment by comparing the results of each segment with one another and in determining the compensation of certain employees.
| Year Ended December 31, 2025 | |||||||||||||||||||||||
| Structured Business | Agency Business | Other (1) | Consolidated | ||||||||||||||||||||
| Interest income | $ | 890,933 | $ | 49,075 | $ | — | $ | 940,008 | |||||||||||||||
| Interest expense | 676,641 | 25,195 | — | 701,836 | |||||||||||||||||||
| Net interest income | 214,292 | 23,880 | — | 238,172 | |||||||||||||||||||
| Other revenue: | |||||||||||||||||||||||
| Gain on sales, including fee-based services, net | — | 70,669 | — | 70,669 | |||||||||||||||||||
| Mortgage servicing rights | — | 54,532 | — | 54,532 | |||||||||||||||||||
| Servicing revenue | — | 181,129 | — | 181,129 | |||||||||||||||||||
| Amortization of MSRs | — | (71,512) | — | (71,512) | |||||||||||||||||||
| Property operating income | 21,347 | — | — | 21,347 | |||||||||||||||||||
| Gain on derivative instruments, net | — | 1,259 | — | 1,259 | |||||||||||||||||||
| Other income, net | 10,537 | 4,264 | — | 14,801 | |||||||||||||||||||
| Total other revenue | 31,884 | 240,341 | — | 272,225 | |||||||||||||||||||
| Other expenses: | |||||||||||||||||||||||
| Employee compensation and benefits | 65,897 | 87,055 | — | 152,952 | |||||||||||||||||||
| Commissions | — | 21,193 | — | 21,193 | |||||||||||||||||||
| Selling and administrative | 30,368 | 29,437 | — | 59,805 | |||||||||||||||||||
| Property operating expenses | 27,980 | — | — | 27,980 | |||||||||||||||||||
| Depreciation and amortization | 21,648 | 1,566 | — | 23,214 | |||||||||||||||||||
| Impairment loss on real estate owned | 20,500 | — | — | 20,500 | |||||||||||||||||||
| Provision for loss sharing, net | — | 24,259 | — | 24,259 | |||||||||||||||||||
| Provision for loan losses, net | 36,259 | 6,437 | — | 42,696 | |||||||||||||||||||
| Total other expenses | 202,652 | 169,947 | — | 372,599 | |||||||||||||||||||
| Income before extinguishment on debt, loss on real estate, income from equity affiliates and income taxes | 43,524 | 94,274 | — | 137,798 | |||||||||||||||||||
| Loss on extinguishment of debt | (2,919) | — | — | (2,919) | |||||||||||||||||||
| Loss on real estate | (9,151) | — | — | (9,151) | |||||||||||||||||||
| Income from equity affiliates | 50,880 | — | — | 50,880 | |||||||||||||||||||
| Provision for income taxes | (1,634) | (17,145) | — | (18,779) | |||||||||||||||||||
| Net income | 80,700 | 77,129 | — | 157,829 | |||||||||||||||||||
| Preferred stock dividends | 41,369 | — | — | 41,369 | |||||||||||||||||||
| Net income attributable to noncontrolling interest | — | — | 9,033 | 9,033 | |||||||||||||||||||
| Net income attributable to common stockholders | $ | 39,331 | $ | 77,129 | $ | (9,033) | $ | 107,427 | |||||||||||||||
| Year Ended December 31, 2024 | |||||||||||||||||||||||
| Structured Business | Agency Business | Other (1) | Consolidated | ||||||||||||||||||||
| Interest income | $ | 1,112,763 | $ | 55,109 | $ | — | $ | 1,167,872 | |||||||||||||||
| Interest expense | 781,668 | 22,947 | — | 804,615 | |||||||||||||||||||
| Net interest income | 331,095 | 32,162 | — | 363,257 | |||||||||||||||||||
| Other revenue: | |||||||||||||||||||||||
| Gain on sales, including fee-based services, net | — | 74,932 | — | 74,932 | |||||||||||||||||||
| Mortgage servicing rights | — | 51,272 | — | 51,272 | |||||||||||||||||||
| Servicing revenue | — | 194,318 | — | 194,318 | |||||||||||||||||||
| Amortization of MSRs | — | (68,422) | — | (68,422) | |||||||||||||||||||
| Property operating income | 7,226 | — | — | 7,226 | |||||||||||||||||||
| Loss on derivative instruments, net | — | (8,543) | — | (8,543) | |||||||||||||||||||
| Other income, net | 7,255 | 828 | — | 8,083 | |||||||||||||||||||
| Total other revenue | 14,481 | 244,385 | — | 258,866 | |||||||||||||||||||
| Other expenses: | |||||||||||||||||||||||
| Employee compensation and benefits | 67,187 | 87,728 | — | 154,915 | |||||||||||||||||||
| Commissions | — | 26,779 | — | 26,779 | |||||||||||||||||||
| Selling and administrative | 26,922 | 28,009 | — | 54,931 | |||||||||||||||||||
| Property operating expenses | 7,394 | — | — | 7,394 | |||||||||||||||||||
| Depreciation and amortization | 6,296 | 3,259 | — | 9,555 | |||||||||||||||||||
| Provision for loss sharing, net | — | 11,782 | — | 11,782 | |||||||||||||||||||
| Provision for credit losses, net | 63,953 | 4,590 | — | 68,543 | |||||||||||||||||||
| Total other expenses | 171,752 | 162,147 | — | 333,899 | |||||||||||||||||||
| Income before extinguishment of debt, gain on real estate, income from equity affiliates and income taxes | 173,824 | 114,400 | — | 288,224 | |||||||||||||||||||
| Loss on extinguishment of debt | (412) | — | — | (412) | |||||||||||||||||||
| Gain of real estate | 3,813 | — | — | 3,813 | |||||||||||||||||||
| Income from equity affiliates | 5,772 | — | — | 5,772 | |||||||||||||||||||
| Benefit from (provision for) income taxes | 3,590 | (17,068) | — | (13,478) | |||||||||||||||||||
| Net income | 186,587 | 97,332 | — | 283,919 | |||||||||||||||||||
| Preferred stock dividends | 41,369 | — | — | 41,369 | |||||||||||||||||||
| Net income attributable to noncontrolling interest | — | — | 19,278 | 19,278 | |||||||||||||||||||
| Net income attributable to common stockholders | $ | 145,218 | $ | 97,332 | $ | (19,278) | $ | 223,272 | |||||||||||||||
| Year Ended December 31, 2023 | |||||||||||||||||||||||
| Structured Business | Agency Business | Other (1) | Consolidated | ||||||||||||||||||||
| Interest income | $ | 1,279,433 | $ | 51,786 | $ | — | $ | 1,331,219 | |||||||||||||||
| Interest expense | 880,602 | 22,626 | — | 903,228 | |||||||||||||||||||
| Net interest income | 398,831 | 29,160 | — | 427,991 | |||||||||||||||||||
| Other revenue: | |||||||||||||||||||||||
| Gain on sales, including fee-based services, net | — | 72,522 | — | 72,522 | |||||||||||||||||||
| Mortgage servicing rights | — | 69,912 | — | 69,912 | |||||||||||||||||||
| Servicing revenue | — | 193,542 | — | 193,542 | |||||||||||||||||||
| Amortization of MSRs | — | (63,093) | — | (63,093) | |||||||||||||||||||
| Property operating income | 5,708 | — | — | 5,708 | |||||||||||||||||||
| Gain on derivative instruments, net | — | 6,763 | — | 6,763 | |||||||||||||||||||
| Other income, net | 4,868 | 2,799 | — | 7,667 | |||||||||||||||||||
| Total other revenue | 10,576 | 282,445 | — | 293,021 | |||||||||||||||||||
| Other expenses: | |||||||||||||||||||||||
| Employee compensation and benefits | 53,507 | 87,760 | — | 141,267 | |||||||||||||||||||
| Commissions | — | 18,521 | — | 18,521 | |||||||||||||||||||
| Selling and administrative | 23,234 | 28,026 | — | 51,260 | |||||||||||||||||||
| Property operating expenses | 5,897 | — | — | 5,897 | |||||||||||||||||||
| Depreciation and amortization | 5,052 | 4,691 | — | 9,743 | |||||||||||||||||||
| Provision for loss sharing, net | — | 15,695 | — | 15,695 | |||||||||||||||||||
| Provision for credit losses, net | 70,344 | 3,102 | — | 73,446 | |||||||||||||||||||
| Total other expenses | 158,034 | 157,795 | — | 315,829 | |||||||||||||||||||
| Income before extinguishment of debt, income from equity affiliates and income taxes | 251,373 | 153,810 | — | 405,183 | |||||||||||||||||||
| Loss on extinguishment of debt | (1,561) | — | — | (1,561) | |||||||||||||||||||
| Income from equity affiliates | 24,281 | — | — | 24,281 | |||||||||||||||||||
| Benefit from (provision for) income taxes | 803 | (28,150) | — | (27,347) | |||||||||||||||||||
| Net income | 274,896 | 125,660 | — | 400,556 | |||||||||||||||||||
| Preferred stock dividends | 41,369 | — | — | 41,369 | |||||||||||||||||||
| Net income attributable to noncontrolling interest | — | — | 29,122 | 29,122 | |||||||||||||||||||
| Net income attributable to common stockholders | $ | 233,527 | $ | 125,660 | $ | (29,122) | $ | 330,065 | |||||||||||||||
________________________________________
(1)Includes income allocated to the noncontrolling interest holders not allocated to the two reportable segments.
| December 31, 2025 | |||||||||||||||||
| Structured Business | Agency Business | Consolidated | |||||||||||||||
| Assets: | |||||||||||||||||
| Cash and cash equivalents | $ | 124,141 | $ | 358,734 | $ | 482,875 | |||||||||||
| Restricted cash | 35,258 | 32,089 | 67,347 | ||||||||||||||
| Loans and investments, net | 11,934,248 | — | 11,934,248 | ||||||||||||||
| Loans held-for-sale, net | — | 409,081 | 409,081 | ||||||||||||||
| Capitalized mortgage servicing rights, net | — | 340,842 | 340,842 | ||||||||||||||
| Securities held-to-maturity, net | — | 156,087 | 156,087 | ||||||||||||||
| Investments in equity affiliates | 57,966 | — | 57,966 | ||||||||||||||
| Real estate owned, net | 498,938 | — | 498,938 | ||||||||||||||
| Goodwill and other intangible assets | 12,500 | 74,053 | 86,553 | ||||||||||||||
| Other assets and due from related party | 382,735 | 78,231 | 460,966 | ||||||||||||||
| Total assets | $ | 13,045,786 | $ | 1,449,117 | $ | 14,494,903 | |||||||||||
| Liabilities: | |||||||||||||||||
| Debt obligations | $ | 10,625,053 | $ | 390,396 | $ | 11,015,449 | |||||||||||
| Allowance for loss-sharing obligations | — | 97,579 | 97,579 | ||||||||||||||
| Other liabilities and due to related parties | 241,873 | 72,849 | 314,722 | ||||||||||||||
| Total liabilities | $ | 10,866,926 | $ | 560,824 | $ | 11,427,750 | |||||||||||
| December 31, 2024 | |||||||||||||||||
| Assets: | |||||||||||||||||
| Cash and cash equivalents | $ | 58,188 | $ | 445,615 | $ | 503,803 | |||||||||||
| Restricted cash | 134,320 | 22,056 | 156,376 | ||||||||||||||
| Loans and investments, net | 11,033,997 | — | 11,033,997 | ||||||||||||||
| Loans held-for-sale, net | — | 435,759 | 435,759 | ||||||||||||||
| Capitalized mortgage servicing rights, net | — | 368,678 | 368,678 | ||||||||||||||
| Securities held-to-maturity, net | — | 157,154 | 157,154 | ||||||||||||||
| Investments in equity affiliates | 76,312 | — | 76,312 | ||||||||||||||
| Real estate owned, net | 176,543 | — | 176,543 | ||||||||||||||
| Goodwill and other intangible assets | 12,500 | 75,619 | 88,119 | ||||||||||||||
| Other assets and due from related party | 415,310 | 78,930 | 494,240 | ||||||||||||||
| Total assets | $ | 11,907,170 | $ | 1,583,811 | $ | 13,490,981 | |||||||||||
| Liabilities: | |||||||||||||||||
| Debt obligations | $ | 9,500,901 | $ | 422,661 | $ | 9,923,562 | |||||||||||
| Allowance for loss-sharing obligations | — | 83,150 | 83,150 | ||||||||||||||
| Other liabilities and due to related parties | 244,948 | 87,351 | 332,299 | ||||||||||||||
| Total liabilities | $ | 9,745,849 | $ | 593,162 | $ | 10,339,011 | |||||||||||
| Year Ended December 31, | ||||||||||||||||||||
| 2025 | 2024 | 2023 | ||||||||||||||||||
| Origination Data: | ||||||||||||||||||||
| Structured Business | ||||||||||||||||||||
| Bridge: | ||||||||||||||||||||
| SFR | $ | 1,947,107 | $ | 869,141 | $ | 524,060 | ||||||||||||||
| Multifamily | 1,183,945 | 444,635 | 415,330 | |||||||||||||||||
| Land | — | 10,350 | — | |||||||||||||||||
| 3,131,052 | 1,324,126 | 939,390 | ||||||||||||||||||
| Construction - Multifamily | 242,844 | 4,368 | — | |||||||||||||||||
| Mezzanine / Preferred Equity | 149,642 | 97,305 | 43,953 | |||||||||||||||||
| Total New Loan Originations | $ | 3,523,538 | $ | 1,425,799 | $ | 983,343 | ||||||||||||||
| Number of Loans Originated | 98 | 170 | 150 | |||||||||||||||||
| Commitments: | ||||||||||||||||||||
| SFR | $ | 665,834 | $ | 1,438,841 | $ | 1,150,687 | ||||||||||||||
| Construction - Multifamily | 470,500 | 101,000 | — | |||||||||||||||||
| Total Commitments | $ | 1,136,334 | $ | 1,539,841 | $ | 1,150,687 | ||||||||||||||
| Loan Runoff | $ | 2,213,378 | $ | 2,691,583 | $ | 3,354,055 | ||||||||||||||
| Agency Business | ||||||||||||||||||||
| Origination Volumes by Investor: | ||||||||||||||||||||
| Fannie Mae | $ | 2,982,659 | $ | 2,374,040 | $ | 3,773,532 | ||||||||||||||
| Freddie Mac | 1,924,773 | 1,770,976 | 756,827 | |||||||||||||||||
| FHA | 78,145 | 146,507 | 257,199 | |||||||||||||||||
| Private Label | 44,925 | 151,936 | 299,934 | |||||||||||||||||
| SFR - Fixed Rate | 43,762 | 27,314 | 19,328 | |||||||||||||||||
| Total New Loan Originations | $ | 5,074,264 | $ | 4,470,773 | $ | 5,106,820 | ||||||||||||||
| Total Loan Commitment Volume | $ | 5,103,885 | $ | 4,443,972 | $ | 5,207,148 | ||||||||||||||
| Agency Business Loan Sales Data: | ||||||||||||||||||||
| Fannie Mae | $ | 2,850,697 | $ | 2,680,018 | $ | 3,469,340 | ||||||||||||||
| Freddie Mac | 2,081,749 | 1,662,010 | 715,530 | |||||||||||||||||
| FHA | 128,282 | 116,058 | 240,079 | |||||||||||||||||
| SFR - Fixed Rate | 43,762 | 27,314 | 22,931 | |||||||||||||||||
| Private Label | — | 124,286 | 441,319 | |||||||||||||||||
| Total Loan Sales | $ | 5,104,490 | $ | 4,609,686 | $ | 4,889,199 | ||||||||||||||
| Sales Margin (fee-based services as a % of loan sales) | 1.38 | % | 1.63 | % | 1.48 | % | ||||||||||||||
| MSR Rate (MSR income as a % of loan commitments) | 1.07 | % | 1.15 | % | 1.34 | % | ||||||||||||||
| December 31, 2025 | ||||||||||||||||||||
| Key Servicing Metrics for Agency Business: | Servicing Portfolio UPB | Wtd. Avg. Servicing Fee Rate (basis points) | Wtd. Avg. Life of Portfolio (years) | |||||||||||||||||
| Fannie Mae | $ | 24,085,960 | 44.7 | 5.5 | ||||||||||||||||
| Freddie Mac | 7,455,088 | 18.3 | 5.9 | |||||||||||||||||
| Private Label | 2,558,048 | 18.7 | 4.5 | |||||||||||||||||
| FHA | 1,549,483 | 13.9 | 19.1 | |||||||||||||||||
| Bridge | 277,738 | 10.4 | 2.2 | |||||||||||||||||
| SFR - Fixed Rate | 277,490 | 20.0 | 4.0 | |||||||||||||||||
| Total | $ | 36,203,807 | 35.6 | 6.1 | ||||||||||||||||
| December 31, 2024 | ||||||||||||||||||||
| Fannie Mae | $ | 22,730,056 | 46.4 | 6.4 | ||||||||||||||||
| Freddie Mac | 6,077,020 | 21.5 | 6.8 | |||||||||||||||||
| Private Label | 2,605,980 | 18.7 | 5.5 | |||||||||||||||||
| FHA | 1,506,948 | 14.1 | 19.2 | |||||||||||||||||
| Bridge | 278,494 | 10.4 | 3.0 | |||||||||||||||||
| SFR - Fixed Rate | 271,859 | 20.1 | 4.4 | |||||||||||||||||
| Total | $ | 33,470,357 | 37.8 | 6.9 | ||||||||||||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 27, 2026 | Showing above |
| 2024 | Feb 21, 2025 | |
| 2023 | Feb 20, 2024 | |
| 2022 | Feb 17, 2023 | |
| 2021 | Feb 18, 2022 | |
| 2020 | Feb 19, 2021 | |
| 2019 | Feb 14, 2020 | |
| 2018 | Feb 15, 2019 | |
| 2017 | Feb 23, 2018 | |
| 2016 | Mar 3, 2017 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.