{"id":2233,"date":"2021-03-10T16:41:46","date_gmt":"2021-03-10T22:41:46","guid":{"rendered":"https:\/\/1reason.com\/re\/arbor-realty-trust-reports-fourth-quarter-and-full-year-2020-results-and-increases-dividend-for-third-consecutive-quarter-to-0-33-per-share\/2233\/"},"modified":"2021-03-11T10:41:46","modified_gmt":"2021-03-11T16:41:46","slug":"arbor-realty-trust-reports-fourth-quarter-and-full-year-2020-results-and-increases-dividend-for-third-consecutive-quarter-to-0-33-per-share","status":"publish","type":"post","link":"https:\/\/1reason.com\/re\/arbor-realty-trust-reports-fourth-quarter-and-full-year-2020-results-and-increases-dividend-for-third-consecutive-quarter-to-0-33-per-share\/2233\/","title":{"rendered":"Arbor Realty Trust Reports Fourth Quarter and Full Year 2020 Results and Increases Dividend for Third Consecutive Quarter to $0.33 per Share"},"content":{"rendered":"
, Feb. 19, 2021 (GLOBE NEWSWIRE) — Arbor Realty Trust, Inc. (NYSE:ABR), today announced financial results for the fourth quarter and year ended December 31, 2020. Arbor reported net income for the quarter of $96.6 million, or $0.80 per diluted common share, compared to net income of $35.5 million, or $0.34 per diluted common share for the quarter ended December 31, 2019. Net income for the year was $163.4 million, or $1.41 per diluted common share, compared to $121.1 million, or $1.27 per diluted common share for the year ended December 31, 2019. Distributable earnings for the quarter was $67.4 million, or $0.49 per diluted common share, compared to $42.3 million, or $0.34 per diluted common share for the quarter ended December 31, 2019. Distributable earnings for the year was$234.9 million, or$1.75per diluted common share, compared to$159.2 million, or$1.37per diluted common share for the year endedDecember 31, 2019.1<\/sup> <\/p>\n

\u201cWe had a tremendous fourth quarter and an exceptional 2020 demonstrating the value of our franchise and the strength of our diverse business model,\u201d said Ivan Kaufman, founder, chairman and CEO of Arbor Realty Trust. \u201cOur outstanding results continue to reflect the successful execution of our business strategy and our versatile operating platform that have once again allowed us to increase our dividend to 33 cents a share \u2013 our third consecutive quarterly dividend increase representing 10% growth in 2020. Arbor continues to outperform in the commercial mortgage REIT space and we are well positioned to succeed in the current economic climate giving us confidence in our ability to continue to generate strong earnings and dividends in the future.\u201d<\/p>\n

Agency Business<\/u><\/strong><\/p>\n

Loan Origination Platform<\/em><\/strong><\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
Agency Loan Volume (in thousands)<\/td>\n<\/tr>\n
\n\nQuarter Ended<\/td>\n\nYear Ended<\/td>\n<\/tr>\n
\n\nDecember 31,
2020<\/td>\n		\nSeptember 30,
2020<\/td>\n		\nDecember 31,
2020<\/td>\n		\nDecember 31,
2019<\/td>\n<\/tr>\n
Fannie Mae<\/td>\n\n$<\/td>\n2,202,092<\/td>\n\n\n$<\/td>\n1,117,679<\/td>\n\n$<\/td>\n5,041,925<\/td>\n\n$<\/td>\n3,346,272<\/td>\n<\/tr>\n
Freddie Mac<\/td>\n\n\n373,063<\/td>\n\n\n\n252,014<\/td>\n\n\n960,508<\/td>\n\n\n728,317<\/td>\n<\/tr>\n
FHA<\/td>\n\n\n133,523<\/td>\n\n\n\n100,345<\/td>\n\n\n327,345<\/td>\n\n\n123,095<\/td>\n<\/tr>\n
Private Label<\/td>\n\n\n44,884<\/td>\n\n\n\n5,840<\/td>\n\n\n382,191<\/td>\n\n\n401,216<\/td>\n<\/tr>\n
CMBS\/Conduit<\/td>\n\n\n–<\/td>\n\n\n\n–<\/td>\n\n\n–<\/td>\n\n\n211,325<\/td>\n<\/tr>\n
Total Originations<\/td>\n\n$<\/td>\n2,753,562<\/td>\n\n\n$<\/td>\n1,475,878<\/td>\n\n$<\/td>\n6,711,969<\/td>\n\n$<\/td>\n4,810,225<\/td>\n<\/tr>\n
\n\n\n\n\n\n\n\n<\/tr>\n
Total Loan Sales<\/td>\n\n$<\/td>\n2,418,317<\/td>\n\n\n$<\/td>\n1,219,462<\/td>\n\n$<\/td>\n6,587,728<\/td>\n\n$<\/td>\n4,401,112<\/td>\n<\/tr>\n
\n\n\n\n\n\n\n\n<\/tr>\n
Total Loan Commitments<\/td>\n$<\/td>\n2,808,173<\/td>\n\n\n$<\/td>\n1,528,551<\/td>\n\n$<\/td>\n6,810,666<\/td>\n\n$<\/td>\n4,829,721<\/td>\n<\/tr>\n
\n\n\n\n\n\n\n\n<\/tr>\n<\/table>\n

For the quarter ended December 31, 2020, the Agency Business generated revenues (excluding gains and losses on derivative instruments) of $125.6 million, compared to $81.8 million for the third quarter of 2020. Gain on sales, including fee-based services, net was $34.0 million for the quarter, reflecting a margin of 1.41% on loan sales, compared to $19.9 million and 1.63% for the third quarter of 2020. Income from mortgage servicing rights was $68.8 million for the quarter, reflecting a rate of 2.45% as a percentage of loan commitments, compared to $42.4 million and 2.77% for the third quarter of 2020. <\/p>\n

At December 31, 2020, loans held-for-sale was $986.9 million which was primarily comprised of unpaid principal balances totaling $968.6 million, with financing associated with these loans totaling $952.0 million.<\/p>\n

Fee-Based Servicing Portfolio<\/em><\/strong><\/p>\n

Our fee-based servicing portfolio totaled $24.63 billion at December 31, 2020, an increase of 9.2% from September 30, 2020, primarily the result of $2.75 billion of new agency loan originations, net of $641.8 million in portfolio runoff during the quarter. Servicing revenue, net was $14.2 million for the quarter and consisted of servicing revenue of $27.3 million, net of amortization of mortgage servicing rights totaling $13.1 million.<\/p>\n\n\n\n\n\n\n\n\n\n\n
\n\nFee-Based Servicing Portfolio ($ in thousands)<\/td>\n<\/tr>\n
\n\nAs of December 31, 2020<\/td>\n\nAs of September 30, 2020<\/td>\n<\/tr>\n
\n\nUPB<\/td>\nWtd. Avg.
Fee<\/td>\n		Wtd. Avg.
Life (in
years)<\/td>\n		\nUPB<\/td>\nWtd. Avg.
Fee<\/td>\n		Wtd. Avg.
Life (in
years)<\/td>\n<\/tr>\n
Fannie Mae<\/td>\n\n$<\/td>\n18,268,268<\/td>\n\n0.523<\/td>\n%<\/td>\n8.2<\/td>\n\n$<\/td>\n16,462,041<\/td>\n0.516<\/td>\n%<\/td>\n8.4<\/td>\n<\/tr>\n
Freddie Mac<\/td>\n\n4,881,080<\/td>\n\n0.279<\/td>\n%<\/td>\n9.9<\/td>\n\n\n4,687,197<\/td>\n0.288<\/td>\n%<\/td>\n10.4<\/td>\n<\/tr>\n
FHA<\/td>\n\n\n752,116<\/td>\n\n0.163<\/td>\n%<\/td>\n20.3<\/td>\n\n\n685,263<\/td>\n0.171<\/td>\n%<\/td>\n20.4<\/td>\n<\/tr>\n
Private Label<\/td>\n\n726,992<\/td>\n\n0.200<\/td>\n%<\/td>\n8.7<\/td>\n\n\n727,063<\/td>\n0.200<\/td>\n%<\/td>\n9.4<\/td>\n<\/tr>\n
Total<\/td>\n\n$<\/td>\n24,628,456<\/td>\n\n0.454<\/td>\n%<\/td>\n8.9<\/td>\n\n$<\/td>\n22,561,564<\/td>\n0.448<\/td>\n%<\/td>\n9.2<\/td>\n<\/tr>\n
\n\n\n\n\n\n\n\n<\/tr>\n<\/table>\n

Loans sold under the Fannie Mae program contain an obligation to partially guarantee the performance of the loan (\u201closs-sharing obligations\u201d), and includes $34.0 million for the fair value of the guarantee obligation undertaken at December 31, 2020. The Company recorded a $7.6 million reversal of provision for loss sharing associated with current expected credit losses, or \u201cCECL,\u201d for the fourth quarter of 2020. At December 31, 2020, the Company\u2019s total CECL allowance for loss-sharing obligations was $30.3 million, representing 0.17% of the Fannie Mae servicing portfolio.<\/p>\n

Structured Business<\/u><\/strong><\/p>\n

Portfolio and Investment Activity<\/em><\/strong><\/p>\n

Quarter ended December 31, 2020:<\/p>\n