{"id":3722,"date":"2021-08-18T03:32:02","date_gmt":"2021-08-18T08:32:02","guid":{"rendered":"https:\/\/1reason.com\/re\/arbor-realty-trust-reports-second-quarter-2021-results-and-increases-quarterly-dividend-to-0-35-per-share\/3722\/"},"modified":"2021-08-18T22:32:02","modified_gmt":"2021-08-19T03:32:02","slug":"arbor-realty-trust-reports-second-quarter-2021-results-and-increases-quarterly-dividend-to-0-35-per-share","status":"publish","type":"post","link":"https:\/\/1reason.com\/re\/arbor-realty-trust-reports-second-quarter-2021-results-and-increases-quarterly-dividend-to-0-35-per-share\/3722\/","title":{"rendered":"Arbor Realty Trust Reports Second Quarter 2021 Results and Increases Quarterly Dividend to $0.35 per Share"},"content":{"rendered":"
, July 30, 2021 (GLOBE NEWSWIRE) — Arbor Realty Trust, Inc. (NYSE: ABR), today announced financial results for the second quarter ended June 30, 2021. Arbor reported net income for the quarter of $69.1 million, or $0.51 per diluted common share, compared to net income of $44.1 million, or $0.40 per diluted common share for the quarter ended June 30, 2020. Distributable earnings for the quarter was $68.8 million, or $0.45 per diluted common share, compared to $59.8 million, or $0.45 per diluted common share for the quarter ended June 30, 2020.1<\/sup> <\/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\n
\n\n\n<\/tr>\n
\nAgency Loan Volume (in thousands)<\/td>\n<\/tr>\n
\nQuarter Ended<\/td>\n<\/tr>\n
\nJune 30,
2021<\/td>\n		\nMarch 31,
2021<\/td>\n<\/tr>\n
Fannie Mae<\/td>\n$<\/td>\n637,494<\/td>\n\n$<\/td>\n1,063,983<\/td>\n<\/tr>\n
Private Label<\/td>\n\n377,184<\/td>\n\n\n152,454<\/td>\n<\/tr>\n
Freddie Mac<\/td>\n\n155,914<\/td>\n\n\n114,717<\/td>\n<\/tr>\n
FHA<\/td>\n\n130,764<\/td>\n\n\n66,480<\/td>\n<\/tr>\n
SFR-Fixed Rate<\/td>\n\n11,996<\/td>\n\n\n–<\/td>\n<\/tr>\n
Total Originations<\/td>\n$<\/td>\n1,313,352<\/td>\n\n$<\/td>\n1,397,634<\/td>\n<\/tr>\n
\n\n\n<\/tr>\n
Total Loan Sales<\/td>\n$<\/td>\n1,482,110<\/td>\n\n$<\/td>\n1,841,891<\/td>\n<\/tr>\n
\n\n\n<\/tr>\n
Total Loan Commitments<\/td>\n$<\/td>\n1,194,344<\/td>\n\n$<\/td>\n1,460,135<\/td>\n<\/tr>\n
\n\n\n<\/tr>\n<\/table>\n

For the quarter ended June 30, 2021, the Agency Business generated revenues (excluding gains and losses on derivative instruments) of $91.2 million, compared to $89.3 million for the first quarter of 2021. Gain on sales, including fee-based services, net was $40.9 million for the quarter, reflecting a margin of 2.76%, compared to $28.9 million and 1.57% for the first quarter of 2021. Income from mortgage servicing rights was $26.3 million for the quarter, reflecting a rate of 2.20% as a percentage of loan commitments, compared to $36.9 million and 2.53% for the first quarter of 2021. <\/p>\n

At June 30, 2021, loans held-for-sale was $457.6 million which was primarily comprised of unpaid principal balances totaling $448.9 million, with financing associated with these loans totaling $391.8 million.<\/p>\n

The Company closed its second private label securitization totaling $450.0 million. The Company originated and sold multifamily mortgage loans to the securitization and will be the primary servicer. The Company retained subordinate certificate interests in the securitization of$38.2 million, in satisfaction of credit risk retention requirements.<\/p>\n

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

The Company\u2019s fee-based servicing portfolio totaled $26.04 billion at June 30, 2021, an increase of 2.3% from March 31, 2021, primarily the result of $1.31 billion of new agency loan originations, net of $806.1 million in portfolio runoff during the quarter. Servicing revenue, net was $15.3 million for the quarter and consisted of servicing revenue of $30.0 million, net of amortization of mortgage servicing rights totaling $14.7 million.<\/p>\n\n\n\n\n\n\n\n\n\n\n\n
\nFee-Based Servicing Portfolio ($ in thousands)<\/td>\n<\/tr>\n
\nAs of June 30, 2021<\/td>\n\nAs of March 31, 2021<\/td>\n<\/tr>\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$<\/td>\n19,191,969<\/td>\n0.532%<\/td>\n8.3<\/td>\n\n$<\/td>\n19,073,504<\/td>\n0.528%<\/td>\n8.3<\/td>\n<\/tr>\n
Freddie Mac<\/td>\n\n4,708,457<\/td>\n0.285%<\/td>\n9.8<\/td>\n\n\n4,795,228<\/td>\n0.283%<\/td>\n9.8<\/td>\n<\/tr>\n
Private Label<\/td>\n\n1,176,627<\/td>\n0.200%<\/td>\n9.0<\/td>\n\n\n726,918<\/td>\n0.200%<\/td>\n8.7<\/td>\n<\/tr>\n
FHA<\/td>\n\n882,899<\/td>\n0.157%<\/td>\n21.0<\/td>\n\n\n796,133<\/td>\n0.160%<\/td>\n20.7<\/td>\n<\/tr>\n
SFR-Fixed Rate<\/td>\n\n75,103<\/td>\n0.200%<\/td>\n5.9<\/td>\n\n\n63,299<\/td>\n0.200%<\/td>\n6.1<\/td>\n<\/tr>\n
Total<\/td>\n$<\/td>\n26,035,055<\/td>\n0.459%<\/td>\n9.0<\/td>\n\n$<\/td>\n25,455,082<\/td>\n0.460%<\/td>\n9.0<\/td>\n<\/tr>\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 $34.5 million for the fair value of the guarantee obligation undertaken at June 30, 2021. The Company recorded a $0.3 million reversal of provision for loss sharing associated with CECL for the second quarter of 2021. At June 30, 2021, the Company\u2019s total CECL allowance for loss-sharing obligations was $31.2 million, representing 0.16% of the Fannie Mae servicing portfolio.<\/p>\n

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

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