What changed in this filing

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Item 8. Financial Statements and Supplementary Data

2026-02-27 compared with 2025-02-21 · 745 added, 643 removed, 1845 unchanged (43% of the section changed)

31 unchanged sentences

The communication of the critical audit matter does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the account or disclosure to which it relates.

Allowance for Credit Losses

Description of the Matter The Company’s allowance for credit losses (“ACL”) for the structured loan portfolio was $239.0 million as of December 31, 2024.

As discussed in Note 2 to the consolidated financial statements, for structured loans with similar risk characteristics, management estimated the ACL using a third-party probability of default and loss-given default model (the “general reserve”).

The model used loss factors that were developed from the historical loss experience of loans with similar credit and default history, individual characteristics of loans currently in the portfolio, and a reasonable and supportable economic forecast to estimate expected losses over the life of the loans.

For structured loans that were considered collateral-dependent or where it was determined that foreclosure was probable, management estimated the ACL on an individual basis by comparing the estimated fair value of the collateral as of the reporting date to the net carrying value of the loan (the “specific reserve”).

Allowance for Credit Losses – Structured Business Loan and Investment Portfolio

Description of the Matter The Company’s allowance for credit losses (“ACL”) for the Structured Business loan and investment portfolio was $146.0 million as of December 31, 2025.

As described in Note 2 to the consolidated financial statements, for the Structured Business loans and investments with similar risk characteristics, management estimated the ACL using a third-party probability of default and loss-given default model (the “general reserve”).

For the Structured Business loans and investments that were considered collateral-dependent or where it was determined that foreclosure was probable, management estimated the ACL on an individual basis by comparing the estimated fair value of the collateral as of the reporting date to the net carrying value of the loan (the “specific reserve”).

The fair value of the collateral was estimated using internally-developed cash flow models or third-party appraisals.

Auditing management’s allowance for credit losses for the structured loan portfolio involved a high degree of subjectivity and was especially challenging due to the complexity of the statistical methods used to estimate the general reserve and the significant judgments required to estimate the fair value of collateral for loans that were individually evaluated for a specific reserve, which were sensitive to the use of certain market-based assumptions, including capitalization rates.

How We Addressed the Matter in Our Audit We obtained an understanding, evaluated the design, and tested the operating effectiveness of controls over the Company’s process to measure the allowance for credit losses for the structured loan portfolio.

For example, we tested controls over the inputs into and operation and monitoring of the ACL model, the methodology and assumptions used to update collateral values and measure expected credit losses on individually evaluated loans, and management review controls over key judgments used in the evaluation of ACL model results and the estimate of collateral values for individually evaluated loans.

Our test of controls included observation of and inspection of the related documentation for certain key meetings of the Company’s CECL working group, where key judgments on current and forward-looking macroeconomic conditions, internal and external factors, and uncertainty as it relates to economic, model, or credit risks, were discussed and effectively challenged.

Our procedures over the general reserve included, among others, the involvement of EY specialists to assist us with evaluating the ACL model’s methodology, conceptual soundness, and model performance.

We performed procedures to test the completeness and accuracy of data used in the model, evaluating the economic forecast selected by management, and evaluating the reasonableness of model results.

Our procedures over the specific reserve included, among others, the testing of the completeness and accuracy of data inputs, the clerical accuracy of cash-flow models, and the involvement of EY valuation specialists to assist us with auditing management’s estimate of the fair value of collateral for a sample of loans, including testing certain key assumptions such as capitalization rates.

As part of our overall evaluation of the Company’s determination of the ACL and our search for contrary evidence, we compared the current ACL to historical loss levels and evaluated subsequent events.

Auditing management’s allowance for credit losses for the Structured Business loan and investment portfolio involved a high degree of subjectivity and was especially challenging due to the complexity of the statistical methods used to estimate the general reserve and the significant judgment required to estimate the fair value of collateral for loans that were individually evaluated for a specific reserve, which were sensitive to the use of certain market-based assumptions, including capitalization rates.

How We Addressed the Matter in Our Audit We obtained an understanding, evaluated the design, and tested the operating effectiveness of internal controls over the Company’s process to measure the allowance for credit losses for the Structured Business loan and investment portfolio.

For example, we tested internal controls over the inputs, operation, and monitoring of the ACL model, and internal controls over management’s review of key judgments used in estimating the collateral value for individually evaluated loans.

Our tests of controls included observing certain meetings of the Company’s CECL working group, where key judgments on current and forward-looking macroeconomic conditions, internal and external factors, uncertainty as it relates to economic, model, or credit risks, and the adequacy of ACL levels, were discussed and effectively challenged.

We also inspected evidence of management’s review of internally-developed cash flow models or third-party appraisals used to estimate the fair value of collateral.

Our procedures over the general reserve included, among others, the involvement of specialists to assist us with evaluating the methodology, conceptual soundness, and performance of the ACL model.

We also tested the completeness and accuracy of data used in the model and evaluated the reasonableness of the economic forecast selected by management.

Our procedures over the specific reserve included, among others, the testing of the completeness and accuracy of data inputs, the clerical accuracy of cash-flow models, and the involvement of valuation specialists to assist us with auditing management’s estimate of the fair value of collateral for a sample of loans, including testing certain key assumptions such as capitalization rates.

As part of our overall evaluation of the ACL and the reasonableness of management’s assumptions, we searched for contrary evidence from internal and external sources, compared the current ACL to recent and historical loss experience, and evaluated subsequent events.

/s/ Ernst & Young LLP

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Junior subordinated notes to subsidiary trust issuing preferred securities 145,497 144,686

Mortgage notes payable - real estate owned 74,897 44,339

Notes payable - real estate owned 222,965 74,897

Due to related party 501 4,474

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633,683 633,684

Special voting preferred - 16,293,589 shares

Special voting preferred - 16,169,858 and 16,293,589 shares

6.375 % Series D - 9,200,000 shares

4 unchanged sentences

Additional paid-in capital 2,454,312 2,375,469

Retained earnings 13,039 115,216

(Accumulated deficit) retained earnings ( 136,597 ) 13,039

Total Arbor Realty Trust, Inc.

22 unchanged sentences

Property operating income 21,347 7,226 5,708

(Loss) gain on derivative instruments, net ( 8,543 ) 6,763 26,609

Other income (loss), net 8,083 7,667 ( 17,563 )

Gain (loss) on derivative instruments, net 1,259 ( 8,543 ) 6,763

Other income, net 14,801 8,083 7,667

Total other revenue 272,225 258,866 293,021

4 unchanged sentences

Depreciation and amortization 23,214 9,555 9,743

Provision for loss sharing (net of recoveries) 11,782 15,695 1,862

Provision for credit losses (net of recoveries) 68,543 73,446 21,169

Litigation settlement — — 7,350

Impairment loss on real estate owned 20,500 — —

Provision for loss sharing, net 24,259 11,782 15,695

Provision for credit losses, net 42,696 68,543 73,446

Total other expenses 372,599 333,899 315,829

Income before extinguishment of debt, gain on real estate, income from equity affiliates and income taxes 288,224 405,183 361,997

Income before extinguishment of debt, (loss) gain on real estate, income from equity affiliates and income taxes 137,798 288,224 405,183

Loss on extinguishment of debt ( 2,919 ) ( 412 ) ( 1,561 )

Gain on real estate 3,813 — —

(Loss) gain on real estate ( 9,151 ) 3,813 —

Income from equity affiliates 50,880 5,772 24,281

11 unchanged sentences

ARBOR REALTY TRUST, INC.

AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

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Capital Retained

Earnings Total Arbor

Deficit) Total Arbor

Realty Trust, Inc.

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Balance — December 31, 2022 42,585,589 $ 633,684 178,230,522 $ 1,782 $ 2,204,481 $ 97,049 $ 2,936,996 $ 134,883 $ 3,071,879

Cumulative - effect adjustment (1) — — — — ( 8,684 ) 5,612 ( 3,072 ) 625 ( 2,447 )

Balance - January 1, 2022 (adjusted for adoption of ASU 2020-06) 39,325,095 556,163 151,362,181 1,514 1,789,229 68,144 2,415,050 132,487 2,547,537

Issuance - common stock — — 13,113,296 131 193,530 — 193,661 — 193,661

Issuance - Series F preferred stock 3,292,000 77,522 — — — — 77,522 — 77,522

Repurchase - common stock — — ( 3,545,604 ) ( 35 ) ( 37,396 ) — ( 37,431 ) — ( 37,431 )

Stock-based compensation, net — — 707,050 7 6,573 — 6,580 — 6,580

2 unchanged sentences

Distributions - noncontrolling interest — — — — — — — ( 27,373 ) ( 27,373 )

Redemption - OP Units ( 31,506 ) ( 1 ) — — — — ( 1 ) ( 545 ) ( 546 )

Net income — — — — — 371,434 371,434 29,122 400,556

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Distributions - noncontrolling interest — — — — — — — ( 21,514 ) ( 21,514 )

Redemption of OP Units ( 123,731 ) ( 1 ) — — — — ( 1 ) ( 1,604 ) ( 1,605 )

Net income — — — — — 148,796 148,796 9,033 157,829

Balance – December 31, 2025 42,461,858 $ 633,683 195,491,855 $ 1,955 $ 2,454,312 $ ( 136,597 ) $ 2,953,353 $ 113,800 $ 3,067,153

(1) In August 2020, the FASB issued Accounting Standards Update (“ASU”) 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging— Contracts in Entity’s Own Equity (Subtopic 815-40):

Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity.

The adoption of this guidance resulted in a $ 2.5 million increase to the carrying value of our convertible debt, an $ 8.7 million decrease to additional paid-in capital and a $ 5.6 million increase to retained earnings at January 1, 2022.

See Notes to Consolidated Financial Statements.

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Amortization and accretion of interest and fees, net 14,033 ( 705 ) ( 3,612 )

Amortization of capitalized mortgage servicing rights 68,422 63,093 59,876

Originations of loans held-for-sale ( 5,081,397 ) ( 4,501,081 ) ( 5,074,445 )

Proceeds from sales of loans held-for-sale, net of gain on sale 5,104,490 4,609,686 4,878,021

Payoffs and paydowns of loans held-for-sale 6,754 5,487 987

Mortgage servicing rights ( 54,532 ) ( 51,272 ) ( 69,912 )

Amortization of capitalized mortgage servicing rights 71,512 68,422 63,093

Write-off of capitalized mortgage servicing rights from payoffs 9,601 8,500 14,736

Provision for loss sharing (net of recoveries) 11,782 15,695 1,862

Provision for credit losses (net of recoveries) 68,543 73,446 21,169

Net (charge-offs) recoveries for loss sharing obligations ( 266 ) ( 1,229 ) ( 758 )

Deferred tax benefit ( 11,613 ) ( 7,349 ) ( 1,741 )

Provision for loss sharing, net 24,259 11,782 15,695

Provision for credit losses, net 42,696 68,543 73,446

Net charge-offs for loss-sharing obligations ( 9,830 ) ( 266 ) ( 1,229 )

Deferred tax provision (benefit) 3,773 ( 11,613 ) ( 7,349 )

Income from equity affiliates ( 50,880 ) ( 5,772 ) ( 24,281 )

1 unchanged sentence

Loss on extinguishment of debt 2,919 412 1,561

Payoffs and paydowns of loans held-for-sale 5,487 987 58,751

Impairment loss on real estate owned 20,500 — —

Change in fair value of held-for-sale loans ( 2,794 ) ( 609 ) ( 2,536 )

Loss (gain) on derivative instruments, net 8,543 ( 6,763 ) ( 26,609 )

Loss on sale of loans — — 11,180

Litigation settlement — — 7,350

Gain on real estate ( 3,813 ) — —

(Gain) loss on derivative instruments, net ( 1,259 ) 8,543 ( 6,763 )

Loss (gain) on real estate 9,151 ( 3,813 ) —

Changes in operating assets and liabilities 11,588 ( 69,564 ) ( 74,336 )

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Investments in real estate, net ( 40,716 ) ( 3,471 ) —

Due to borrowers and reserves ( 57,966 ) ( 141,152 ) ( 239,626 )

Proceeds from sale of loans and investments — — 397,338

Purchase of securities held-to-maturity, net — — ( 27,598 )

Net cash provided by (used in) investing activities 1,151,769 1,878,978 ( 2,317,122 )

Change in due to borrowers and reserves ( 14,493 ) ( 57,966 ) ( 141,152 )

Net cash (used in) provided by investing activities ( 1,281,093 ) 1,151,769 1,878,978

Financing activities:

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Payoffs and paydowns of credit and repurchase facilities ( 11,201,066 ) ( 9,025,305 ) ( 9,747,252 )

Proceeds from mortgage note payable - REO 39,547 — —

Payoffs and paydowns of mortgage notes payable - REO ( 8,989 ) — —

Proceeds from notes payable - REO 299,361 39,547 —

Payoffs and paydowns of notes payable - REO ( 197,682 ) ( 8,989 ) —

Proceeds from issuance of securitized debt 1,533,238 — —

Payoffs and paydowns of securitized debt ( 2,681,799 ) ( 2,324,269 ) ( 929,782 )

Payoff of convertible senior unsecured notes ( 287,500 ) — —

Proceeds from issuance of common stock 70,518 10,030 193,661

Proceeds from issuance of preferred stock — — 77,522

Proceeds from issuance of senior unsecured notes 900,000 100,000 95,000

2 unchanged sentences

Payments of withholding taxes on net settlement of vested stock ( 3,395 ) ( 4,565 ) ( 8,360 )

Repurchase of common stock ( 2,007 ) ( 11,408 ) ( 37,431 )

Distributions to stockholders and noncontrolling interest ( 319,946 ) ( 394,843 ) ( 380,640 )

Payment of deferred financing costs ( 55,164 ) ( 21,239 ) ( 9,840 )

ARBOR REALTY TRUST, INC.

2 unchanged sentences

(in thousands)

Repurchase of common stock ( 11,408 ) ( 37,431 ) —

Distributions to stockholders and non-controlling interest ( 394,843 ) ( 380,640 ) ( 321,739 )

Payment of deferred financing costs ( 21,239 ) ( 9,840 ) ( 50,362 )

Net cash (used in) provided by financing activities ( 2,490,314 ) ( 1,825,793 ) 1,574,368

Net cash provided by (used in) financing activities 798,755 ( 2,490,314 ) ( 1,825,793 )

Net (decrease) increase in cash, cash equivalents and restricted cash ( 109,957 ) ( 877,028 ) 289,042

24 unchanged sentences

Distributions accrued on preferred stock 7,010 7,010 7,010

Investment in real estate, net — 39,400 31,200

Cumulative - effect adjustment (adoption of convertible debt standard) — — 2,447

See Notes to Consolidated Financial Statements.

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At the inception of each such investment, we determine whether such investment should be accounted for as a loan, equity interest or as real estate.

At the time of purchase, we designate a debt security as available-for-sale, held-to-maturity, or trading depending on our ability and intent for the security.

Securities available-for-sale, which is included as a component of other assets in the consolidated balance sheets, is reported at fair value with the fluctuations in fair value recognized through earnings.

At the time of purchase, we designate a debt security as held-to-maturity or trading depending on our ability and intent for the security.

We do not intend to sell our held-to-maturity securities and it is not likely we will be required to sell the investments before their maturity, therefore, we carry our held-to-maturity securities at cost, net of any unamortized premiums or discounts, which are amortized or accreted over the life of the securities, and net of allowance for credit losses.

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Loans for which the borrower or sponsor is experiencing financial difficulty, and where repayment of the loan is expected substantially through the operation or sale of the underlying collateral, are considered collateral dependent loans.

For collateral dependent loans, we use the

For collateral dependent loans, we use the practical expedient under CECL which allows us to measure expected losses based on the difference between the collateral’s fair value and the amortized cost basis of the loan (the "specific reserve").

When the repayment or satisfaction of the loan is dependent on a sale,

ARBOR REALTY TRUST, INC.

1 unchanged sentence

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

practical expedient under CECL which allows us to measure expected losses based on the difference between the collateral’s fair value and the amortized cost basis of the loan (the "specific reserve").

When the repayment or satisfaction of the loan is dependent on a sale, rather than operations of the collateral, the fair value is adjusted for the estimated costs to sell the collateral.

rather than operations of the collateral, the fair value is adjusted for the estimated costs to sell the collateral.

If foreclosure is probable, we measure expected losses using the fair value of the collateral as of the reporting date.

1 unchanged sentence

We consider the capitalization and market discount rates, as well as the borrower’s operating income and cash flows, in estimating the value of the underlying collateral when determining if a loan is impaired.

We may also obtain a third party appraisal, which may value the collateral through an “as-is” or “stabilized value” methodology.

We may also obtain a third-party appraisal, which we may use to value the collateral through an “as-is” methodology.

Such appraisals may be used as an additional source of valuation information only and no adjustments are made to appraisals.

If, upon completion of the valuation, the fair value of the underlying collateral securing the impaired loan is less than the net carrying value of the loan, we record a specific reserve for credit losses with a corresponding charge to the provision for credit losses and remove the impaired loan from the general reserve CECL analysis described above.

In order to improve long-term collectibility efforts, we may agree to amend or modify loans to certain borrowers experiencing financial difficulty based on specific facts and circumstances in order to avoid foreclosure and repossession of the underlying collateral.

In order to improve long-term collectability efforts, we may agree to amend or modify loans to certain borrowers experiencing financial difficulty based on specific facts and circumstances in order to avoid foreclosure and repossession of the underlying collateral.

The loan modifications to borrowers experiencing financial difficulty may include a delay in payments, including payment deferrals, term extensions, principal forgiveness and interest rate reductions, or a combination thereof.

We record interest on modified loans on an accrual basis to the extent the modified loan is contractually current.

We record interest on modified loans on an accrual basis to the extent the modified loan is contractually current under the modified terms.

The allowance for credit losses on loan modifications is measured using the same method as all other loans held for investment.

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When a loan is restructured, we record our investment at net realizable value, taking into account the cost of all concessions at the date of restructuring.

In addition, a gain or loss may be recorded upon the sale of a loan to a third party in the consolidated statements of income in the period in which the loan was sold.

In addition, a gain or loss may be recorded upon the sale of a restructured loan to a third party in the consolidated statements of income in the period in which the loan was sold.

Loans Held-for-Sale, Net.

Loans held-for-sale, net represents our Agency Business commercial real estate loans originated and sold under the GSE and HUD programs, which are generally transferred or sold within 60 days of loan origination, as well as our Private Label loans, which are either sold instantaneously or pooled and securitized, or sold, within 180 days of loan origination.

Such loans are reported at the lower of cost or market on an aggregate basis and include the value allocated to the associated future MSRs.

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Fannie Mae bears any remaining loss.

In addition, under the terms of the master loss-sharing agreement with Fannie Mae, we are responsible for funding 100 % of mortgage delinquencies (principal and interest) and servicing advances (taxes, insurance and foreclosure costs) until the amounts advanced exceed 5 % of the UPB

Thereafter, we may request interim loss-sharing adjustments which allow us to fund 25 % of such advances until final settlement.

ARBOR REALTY TRUST, INC.

1 unchanged sentence

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

at the date of default.

Thereafter, we may request interim loss-sharing adjustments which allow us to fund 25 % of such advances until final settlement.

At inception, a liability for the fair value of the obligation undertaken in issuing the guaranty is recognized.

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We invest in joint ventures that are formed to invest in real estate-related assets or businesses.

These joint ventures are not majority owned or controlled by us or are VIEs for which we are not the primary beneficiary, and are not

These joint ventures are not majority owned or controlled by us or are VIEs for which we are not the primary beneficiary, and are not consolidated in our financial statements.

These investments are recorded under either the equity or cost method of accounting as deemed appropriate.

We evaluate these investments for impairment whenever events or changes in circumstances indicate that the carrying amounts of such investments may not be recoverable.

We recognize an impairment loss if the estimated fair value of the investment is less

ARBOR REALTY TRUST, INC.

1 unchanged sentence

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

consolidated in our financial statements.

These investments are recorded under either the equity or cost method of accounting as deemed appropriate.

We evaluate these investments for impairment whenever events or changes in circumstances indicate that the carrying amounts of such investments may not be recoverable.

We recognize an impairment loss if the estimated fair value of the investment is less than its carrying amount and we determine that the impairment is other-than-temporary.

We record our share of the net income and losses from the underlying properties of our equity method investments and any other-than-temporary impairment on these investments as income or losses from equity affiliates in the consolidated statements of income.

than its carrying amount and we determine that the impairment is other-than-temporary.

Typically, we record our share of the net income and losses from the underlying properties of our equity method investments and any other-than-temporary impairment on these investments as income or losses from equity affiliates in the consolidated statements of income.

Cash distributions received from our equity method investments are presented as operating cash flows to the extent they represent returns on capital (i.e., distributions do not exceed cumulative earnings) and as investing cash flows to the extent they represent returns of capital (i.e., distributions in excess of cumulative earnings).

Goodwill and Other Intangible Assets.

3 unchanged sentences

Determining the estimated useful lives of intangible assets also requires judgment.

Certain intangible assets, such as GSE licenses, have been deemed to have indefinite lives while other intangible assets, such as broker and borrower relationships and below market rent have been deemed to have finite lives.

Certain intangible assets, such as GSE licenses, have been deemed to have indefinite lives while other intangible assets, such as borrower relationships and below market rent have been deemed to have finite lives.

Our assessment as to which intangible assets are deemed to have finite or indefinite lives is based on several factors including economic barriers of entry for the acquired product lines, scarcity of available GSE licenses, retention trends and our operating plans, among other factors.

11 unchanged sentences

We amortize the value allocated to in-place leases over the remaining lease term, which is reported in depreciation and amortization expense on our consolidated statements of income.

The value allocated to above or below market leases are amortized over the remaining lease term as an adjustment to rental income.

The value allocated to above or below market leases is amortized over the remaining lease term as an adjustment to rental income.

Real estate assets are depreciated using the straight-line method over their estimated useful lives.

2 unchanged sentences

Our properties are reviewed for impairment each quarter if events or circumstances change indicating that the carrying amount of an asset may not be recoverable.

We recognize impairment if the undiscounted estimated cash flows to be generated by an asset is less than the carrying amount of such asset.

Measurement of impairment is based on the asset’s estimated fair value.

We recognize an impairment equal to the difference between the estimated fair value of the asset and its carrying value.

We determine the fair value using either a discounted cash flow approach, broker opinions of value or an appraisal.

In evaluating for impairment, many factors are considered, including estimated current and expected operating cash flows from the property during the projected holding period, costs necessary to extend the life or improve the asset, expected capitalization rates, projected stabilized net operating income, selling costs, and the ability to hold and dispose of the asset in the ordinary course of business.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

Several of our loans provide for accrual of interest at specified rates, which differ from current payment terms.

Several of our modified loans to borrowers experiencing financial difficulty provide for accrual of interest at specified rates, which differ from current payment terms.

Interest is recognized on such loans at the accrual rate subject to our determination that accrued interest and outstanding principal are ultimately collectible, based on the underlying collateral and operations of the asset, as well as the strength and guarantee of the sponsors.

For such loans, we accrue interest at the contractual accrual rate only when, based on our assessment, the borrower has the ability to make the required payments and we expect to ultimately collect accrued interest and outstanding principal.

If we cannot make this determination, interest income above the current pay rate is recognized only upon actual receipt.

2 unchanged sentences

Recognition of income on loans with funded interest reserves are accounted for in the same manner as loans without funded interest reserves.

We classify loans as non-accrual and recognize income only to the extent cash is received on:

(1) all loans that exceed 60 days past due (otherwise referred to as non-performing loans);

and (2) loans that are 60 days past due or less, if we have determined there is reasonable doubt about collectability of all principal and interest.

When a loan is placed on non-accrual status, all accrued interest to date is reversed and full income recognition resumes when the loan becomes contractually current and performance has recommenced.

We classify loans as non-accrual and recognize income only to the extent cash is received when we have determined there is reasonable doubt about collectability of all principal and interest.

When loans are placed on non-accrual, accrued interest to date is reversed and full income recognition resumes when the loan becomes contractually current and performance has recommenced.

While we use our judgment in reaching this determination for loans less than 60 days past due, all loans greater than 60 days past due are generally placed on non-accrual status and considered non-performing loans unless past due amounts are in the process of collection or otherwise reasonably certain to be received in the immediate future.

Additionally, interest income is recorded when earned from equity participation interests, referred to as equity kickers.

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We organize and conduct our operations to qualify as a REIT and to comply with the provisions of the Internal Revenue Code with respect thereto.

A REIT is generally not subject to federal income tax on its taxable income that is distributed to its stockholders;

A REIT is generally not subject to federal income tax on its taxable income that is distributed to its

ARBOR REALTY TRUST, INC.

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

stockholders;

provided that at least 90% of its taxable income is distributed and provided that certain other requirements are met.

2 unchanged sentences

federal, state and local income taxes.

In general, our TRS entities may hold assets that the REIT cannot hold directly and may engage in real estate

ARBOR REALTY TRUST, INC.

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

or non-real estate-related business.

In general, our TRS entities may hold assets that the REIT cannot hold directly and may engage in real estate or non-real estate-related business.

Current and deferred taxes are recorded on the portion of earnings (losses) recognized by us with respect to our interest in TRSs.

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Reclassification

Certain amounts in the prior period financial statements have been reclassified to conform to the presentation of the current period financial statements.

Our real estate owned assets and mortgage notes payable previously recorded within other assets and other liabilities on our consolidated balance sheets are now recorded to real estate owned, net and mortgage notes payable - real estate owned for all periods presented.

In 2025, we refined the presentation of our loan modification disclosures presented in Note 3 and reclassified certain 2024 loan modification activity to conform to the 2025 presentation to enhance comparability between periods.

These reclassifications relate solely to the presentation of the 2024 loan modification activity and did not impact the previously reported consolidated financial position, results of operations or cash flows for the year ended December 31, 2024.

This reclassification represents a change in presentation for comparative purposes only.

Recently Adopted Accounting Pronouncements

Description Effective Date Effect on Financial Statements

In November 2023, the FASB issued ASU 2023-07, Improvements to Reportable Segment Disclosures, which expands disclosures about a public entity’s reportable segments and requires more enhanced information about a reportable segment’s expenses, interim segment profit or loss, and how a public entity’s chief operating decision maker uses reported segment profit or loss information in assessing segment performance and allocating resources.

Fiscal year 2024, with early adoption permitted The adoption of this guidance did not have a material impact on our consolidated financial statements and we have included the required enhanced disclosures within Note 21.

In December 2023, the FASB issued Accounting Standards Update ("ASU") 2023-09, Income Taxes (Topic 740):

Improvements to Income Tax Disclosures.

The ASU focuses on disclosures around effective tax rates and cash income taxes paid and to improve the usefulness of income tax disclosures for investors.

The ASU requires public entities to disclose, on an annual basis, a rate reconciliation presented in both dollars and percentages and to include specific categories and provides further guidance on disaggregation of those categories based on a quantitative threshold equal to 5% or more.

The ASU also makes changes to annual disclosures of income taxes paid for all entities by requiring disclosure of the amount of income taxes paid, net of refunds received, disaggregated by federal, state and foreign jurisdiction.

Fiscal year of 2025, with early adoption permitted The adoption of this guidance did not have a material impact on our consolidated financial statements and we have included the required enhanced disclosures within Note 18.

ARBOR REALTY TRUST, INC.

3 unchanged sentences

Description Effective Date Effect on Financial Statements

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740):

Improvements to Income Tax Disclosures.

This guidance focuses on disclosures around effective tax rates and cash income taxes paid and to improve the usefulness of income tax disclosures for investors.

This guidance requires public entities to disclose, on an annual basis, a rate reconciliation presented in both dollars and percentages and to include specific categories and provides further guidance on disaggregation of those categories based on a quantitative threshold equal to 5% or more.

This guidance also makes changes to annual disclosures of income taxes paid for all entities by requiring entities to disclose the amount of income taxes paid, net of refunds received, disaggregated by federal, state and foreign jurisdiction.

First quarter of 2025, with early adoption permitted The adoption of this guidance is not expected to have a material impact on our consolidated financial statements.

We are not early adopting and will add the necessary disclosures upon adoption.

In November 2024, the FASB issued ASU 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40):

Disaggregation of Income Statement Expenses, which requires disclosures of expenses in the income statement by breaking down expenses into specific categories, such as purchases of inventory, employee compensation, and costs related to depreciation and amortization, and presenting them in a clear, tabular format.

Fiscal year 2026, with early adoption permitted We are currently assessing the impact this guidance will have on our consolidated financial statements and will make all necessary additional disclosure requirements once adopted.

In December 2025, the FASB issued ASU 2025-11, Interim Reporting (Topic 270):

Narrow-Scope Improvements.

The ASU is intended to make the interim reporting guidance easier to apply and to clarify when Topic 270 applies and what is required to be disclosed, without changing the basic approach to interim reporting or meaningfully expanding or reducing interim disclosure requirements.

The ASU’s main provisions (in plain terms) include:

(1) clarifying that Topic 270 applies to any entity that issues interim financial statements and related notes in accordance with GAAP (including “condensed” interim financial statements);

(2) clarifying the form and content expectations for interim financial statements (including direction for SEC registrants to follow the applicable SEC Regulation S-X interim requirements);

(3) adding to Topic 270 a comprehensive list of interim disclosures required by other ASC Topics and making related conforming amendments;

and (4) adding a disclosure principle that requires disclosure of events and changes since the most recent fiscal year-end that have a material impact on the entity so interim financial statements are not misleading.

First quarter of 2028, with early adoption permitted We are not planning on early adoption and this guidance is not expected to have a material impact on our consolidated financial statements.

In November 2025, the FASB issued ASU 2025-09, Derivatives and Hedging (Topic 815):

Hedge Accounting Improvements.

This guidance clarifies certain aspects of hedge accounting and addresses incremental hedge accounting issues arising from reference rate reform.

Key provisions focus on five areas that are intended to enable hedge accounting to be achieved and maintained for a broader set of highly effective economic hedges:

(1) replacing the “shared” risk exposure criterion with a “similar” risk exposure criterion for cash flow hedges of groups of forecasted transactions (with assessment at inception and ongoing), (2) a model to facilitate cash flow hedges of forecasted interest payments on “choose-your-rate” variable-rate debt, (3) updates related to cash flow hedges of nonfinancial forecasted transactions (including pricing components), (4) revisions to the net written option guidance in certain hedging relationships, and (5) changes related to dual hedges involving foreign-currency-denominated debt.

First quarter of 2027, with early adoption permitted We are not planning on early adoption and this guidance is not expected to have a material impact on our consolidated financial statements.

In September 2025, the FASB issued ASU 2025-06, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40):

Targeted Improvements to the Accounting for Internal-Use Software.

The ASU simplifies the accounting for internal-use software by removing the prescribed project stages and requiring capitalization of costs once management authorizes the project, commits funding, and determines completion is probable.

It also brings website development costs under the same guidance and aligns related disclosures with those for property, plant and equipment.

First quarter of 2028, with early adoption permitted We are not planning on early adoption and this guidance is not expected to have a material impact on our consolidated financial statements.

Other Recently Issued Accounting Pronouncements

In March 2024, the FASB issued ASU 2024-01, Scope Application of Profits Interest and Similar Awards, effective in the first quarter of 2025.

We currently do not have any transactions that fall under the scope of this ASU;

During 2025, the FASB also issued:

(1) ASU 2025-08, Financial Instruments—Credit Losses (Topic 326):

Purchased Loans, effective in the first quarter of 2027;

(2) ASU 2025-07, Derivatives and Hedging (Topic 815) and Revenue from Contracts with Customers (Topic 606):

Derivatives Scope Refinements and Scope Clarification for Share-Based Noncash Consideration from a Customer in a Revenue Contract, effective in the first quarter of 2027;

(3) ASU 2025-05, Financial Instruments - Credit Losses (Topic 326):

Measurement of Credit Losses for Accounts Receivable and Contract Assets, effective in the first quarter of 2026;

(4) ASU 2025-04, Compensation—Stock Compensation (Topic 718) and Revenue from Contracts with Customers (Topic 606):

Clarifications to Share-Based Consideration Payable to a Customer, effective in the first quarter of 2027;

and (5) ASU 2025-03, Business Combinations (Topic 805) and Consolidation (Topic 810):

Determining the Accounting Acquirer in the Acquisition of a Variable Interest Entity, effective in the first quarter of 2027.

We currently do not have any transactions that fall under the scope of these ASUs;

therefore, the adoption is not expected to have an impact on our consolidated financial statements.

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Mezzanine loans 290,212 2 % 65 7.84 % 52.3 59 % 78 %

Preferred equity investments 148,845 1 % 27 6.42 % 53.9 62 % 79 %

Construction - multifamily 249,019 2 % 9 9.13 % 24.6 0 % 60 %

SFR permanent loans 3,082 < 1 % 1 9.36 % 10.3 0 % 40 %

Preferred equity investments 202,118 2 % 34 6.87 % 46.0 62 % 80 %

Total UPB 12,113,107 100 % 632 6.49 % 14.7 2 % 77 %

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Preferred equity investments 148,845 1 % 27 6.42 % 53.9 62 % 79 %

Construction - multifamily 4,367 < 1 % 2 9.97 % 20.8 0 % 42 %

SFR permanent loans 3,082 < 1 % 1 9.36 % 10.3 0 % 40 %

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and funded cash reserves.

Other factors such as guarantees, market strength, and remaining loan term and borrower equity are also reviewed and factored into determining the credit risk rating assigned to each loan.

Other factors such as guarantees and other forms of recourse, market strength, remaining loan term and borrower equity are also reviewed and considered in determining the credit risk rating assigned to each loan.

This metric provides a helpful snapshot of portfolio quality and credit risk.

All portfolio assets are subject to, at a minimum, a thorough quarterly financial evaluation in which historical operating performance and forward-looking projections are reviewed, however, we maintain a higher level of scrutiny and focus on loans that we consider “high risk” and that possess deteriorating credit quality.

Generally speaking, given our typical loan profile, risk ratings of pass, pass/watch and special mention suggest that we expect the loan to make both principal and interest payments according to the contractual terms of the current loan agreement or based on our current assessment of the collateral value of the property or financial strength of the guarantors.

A risk rating of substandard indicates we have observed weaknesses in one or more of the loan's credit quality factors and we anticipate the loan may require a modification of some kind to avoid a loss of interest and/or principal.

A risk rating of doubtful indicates we expect the loan to underperform over its term, there could be loss of interest and/or principal, and we may need to take action to protect our investment including foreclosing on the underlying collateral.

Further, while the above are the primary guidelines used in determining a certain risk rating, subjective items such as financial strength of guarantors, market strength, asset quality, or a borrower's ability to perform under modified loan terms may result in a rating that is higher or lower than might be indicated by any risk rating matrix.

All portfolio assets are subject to, at a minimum, a thorough quarterly financial evaluation in which historical operating performance and forward-looking projections are reviewed;

however, we maintain a higher level of scrutiny and focus on loans that we consider “high risk” and that possess deteriorating credit quality.

Generally speaking, given our typical loan profile, risk ratings of pass and pass/watch suggest the loan is performing and that we expect the borrower to make both principal and interest payments according to the contractual terms of the current loan agreement.

A risk rating of special mention indicates loans that require closer monitoring given an observed credit weakness or may have been modified, but we currently expect the borrower to make both principal and interest payments according to the terms of the current loan agreement or we expect to fully recover our investment, including accrued interest, through the current value of the collateral and/or the financial strength of the guarantors.

A risk rating of substandard indicates we have observed weaknesses or significant deterioration in multiple credit quality factors, we expect the loan to underperform in the near term, and we anticipate the loan will require intervention in the form of a modification or potential foreclosure to avoid or limit a loss of interest and/or principal.

A risk rating of doubtful indicates a loss of interest and/or principal is probable and we are actively exploring options to protect our investment including foreclosing on the underlying collateral.

Further, while the above are the primary guidelines used in determining a certain risk rating, subjective items such as the financial strength of guarantors, market strength, asset quality, or a borrower's ability to perform under modified loan terms may result in a rating that is higher or lower than might be indicated by any risk rating matrix.

A summary of the loan portfolio’s internal risk ratings and LTV ratios by asset class at December 31, 2025, and charge-offs recorded during 2025 is as follows ($ in thousands):

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Special Mention 36,230 — — 52,943 — 4,600 93,773

Doubtful 5,704 10,786 — — — — 16,490

Total Single-Family Rental $ 994,559 $ 1,006,016 $ 571,891 $ 501,712 $ 71,916 $ 38,816 $ 3,184,910 0 % 64 %

Percentage of portfolio 26 %

Pass $ 7,282 $ — $ — $ — $ — $ — $ 7,282

Special Mention — — — — 3,500 — 3,500

Substandard — — — — — 127,928 127,928

Total Land $ 7,282 $ — $ — $ — $ 3,500 $ 127,928 $ 138,710 0 % 96 %

Percentage of portfolio 1 %

Special Mention $ — $ — $ — $ — $ 35,410 $ — $ 35,410

Pass/Watch $ — $ — $ — $ — $ — $ 33,410 $ 33,410

Total Office $ — $ — $ — $ — $ — $ 33,410 $ 33,410 0 % 88 %

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Substandard $ — $ — $ — $ — $ — $ 16,424 $ 16,424

Doubtful — — — — — 531 531

Total Retail $ — $ — $ — $ — $ — $ 16,955 $ 16,955 0 % 97 %

Percentage of portfolio < 1 %

Pass/Watch $ — $ — $ — $ — $ — $ 2,291 $ 2,291

Total Land $ — $ — $ — $ — $ — $ 2,291 $ 2,291 0 % 77 %

Percentage of portfolio < 1 %

Doubtful $ — $ — $ — $ — $ — $ 1,700 $ 1,700

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Grand Total $ 2,963,166 $ 1,766,551 $ 908,608 $ 3,127,360 $ 2,998,638 $ 348,784 $ 12,113,107 2 % 77 %

Charge-offs $ 464 $ — $ 4,077 $ 7,668 $ — $ — $ 12,209

Charge-offs, net $ — $ 3,000 $ — $ 24,476 $ 31,968 $ 68,893 $ 128,337

ARBOR REALTY TRUST, INC.

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Special Mention — 31,043 139,125 107,155 87,967 — 365,290

Doubtful 5,704 10,786 — — — — 16,490

Total Single-Family Rental $ 674,001 $ 485,123 $ 506,375 $ 201,658 $ 129,815 $ — $ 1,996,972 0 % 61 %

Percentage of portfolio 18 %

Pass/Watch $ — $ — $ — $ 4,600 $ — $ — $ 4,600

Pass $ 7,282 $ — $ — $ — $ — $ — $ 7,282

Special Mention — — — — 3,500 — 3,500

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Year Ended December 31, 2025

Multifamily Land Retail Commercial Single-Family Rental Office Other Total

Multifamily Single-Family Rental Retail Commercial Land Office Other Total

Allowance for credit losses:

Beginning balance $ 148,139 $ 7,524 $ 3,293 $ 1,700 $ 78,130 $ 181 $ — $ 238,967

Provision for credit losses (net of recoveries) 49,501 72 — — 5,900 39 — 55,512

Charge-offs (1) ( 12,209 ) — — — — — — ( 12,209 )

Provision for credit losses (net of reversals) 43,635 1,293 ( 390 ) — ( 8,861 ) 70 — 35,747

Recoveries ( 406 ) — — — — — — ( 406 )

Charge-offs, net (1) ( 59,444 ) — — — ( 68,893 ) — — ( 128,337 )

Ending balance $ 131,924 $ 8,817 $ 2,903 $ 1,700 $ 376 $ 251 $ — $ 145,971

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Beginning balance $ 110,847 $ 1,624 $ 3,293 $ 1,700 $ 78,058 $ 142 $ — $ 195,664

Provision for credit losses (net of recoveries) 72,886 ( 10 ) ( 2,526 ) — 844 ( 2,320 ) ( 69 ) 68,805

Provision for credit losses (net of reversals) 49,501 5,900 — — 72 39 — 55,512

Charge-offs (2) ( 12,209 ) — — — — — — ( 12,209 )

3 unchanged sentences

Beginning balance $ 37,961 $ 780 $ 5,819 $ 1,700 $ 78,068 $ 8,162 $ 69 $ 132,559

Provision for credit losses (net of recoveries) 19,254 98 — — 461 89 ( 584 ) 19,318

Provision for credit losses (net of reversals) 72,886 844 ( 2,526 ) — ( 10 ) ( 2,320 ) ( 69 ) 68,805

Charge-offs — — — — — ( 5,700 ) — ( 5,700 )

Ending balance $ 110,847 $ 1,624 $ 3,293 $ 1,700 $ 78,058 $ 142 $ — $ 195,664

________________________

(1) Includes $ 8.4 million of specific reserves on two multifamily bridge loans that we foreclosed on and took back the underlying collateral as REO assets at fair value.

During 2024, we recorded a $ 55.5 million provision for credit losses, net of recoveries, on our structured portfolio.

The additional provision for credit losses was primarily attributable to specifically impaired multifamily loans and the impact from the macroeconomic outlook of the commercial real estate market.

(1) Includes $ 40.3 million of specific reserves on six multifamily bridge loans and a multifamily mezzanine loan that were charged-off in connection with the foreclosure of the underlying collateral as REO assets at fair value.

(2) Includes $ 8.4 million of specific reserves on two multifamily bridge loans that were charged-off in connection with the foreclosure of the underlying collateral as REO assets at fair value.

The provision for credit losses during 2025 was primarily attributable to specifically impaired multifamily loans and, to a lesser extent, a weakening in the macroeconomic outlook of the commercial real estate market and losses recorded on the foreclosure of REO assets.

Our estimate of allowance for credit losses on our structured portfolio, including related unfunded loan commitments, was based on a reasonable and supportable forecast period that reflects recent observable data, including price indices for commercial real estate, unemployment rates, and interest rates.

The expected credit losses over the contractual period of our loans also include the obligation to extend credit through our unfunded loan commitments.

Our CECL allowance for unfunded loan commitments is adjusted quarterly and corresponds with the associated outstanding loans.

Estimates of CECL for unfunded loan commitments are adjusted quarterly and correspond with the associated outstanding loans.

At December 31, 2025 and 2024, we had outstanding unfunded commitments of $ 1.92 billion and $ 2.20 billion, respectively, that we are obligated to fund as borrowers meet certain requirements.

The outstanding unfunded commitments are predominantly related to our SFR build-to-rent business.

At December 31, 2024 and 2023, accrued interest receivable related to our loans totaling $ 154.4 million and $ 124.2 million, respectively, was excluded from the estimate of credit losses and is included in other assets on the consolidated balance sheets.

All of our structured loans and investments are secured by real estate assets or by interests in real estate assets, and, as such, the measurement of credit losses may be based on the difference between the fair value of the underlying collateral and the carrying value of the assets as of the period end.

A summary of our specific reserve loans considered impaired by asset class is as follows ($ in thousands):

The outstanding unfunded commitments are predominantly related to our SFR BTR business.

At December 31, 2025 and 2024, accrued interest receivable related to our loans totaling $ 165.7 million and $ 154.4 million, respectively, was excluded from the estimate of credit losses, is subject to our revenue recognition policy, and is included in other assets on the consolidated balance sheets.

ARBOR REALTY TRUST, INC.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

A summary of our specific reserve loans considered impaired by asset class is as follows ($ in thousands):

December 31, 2025

5 unchanged sentences

Multifamily $ 366,275 $ 363,635 $ 38,487 0 % 96 %

Land 134,215 127,868 77,869 0 % 99 %

Retail 16,955 16,855 2,903 0 % 97 %

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________________________________________

(1) Represents the UPB of twenty-seven and nineteen impaired loans (less unearned revenue and other holdbacks and adjustments) by asset class at December 31, 2024 and 2023, respectively.

(1) Represents the UPB of 20 and 27 impaired loans (less unearned revenue and other holdbacks and adjustments) by asset class at December 31, 2025 and 2024, respectively.

Non-performing Loans

Loans are classified as non-performing once the contractual payments exceed 60 days past due.

Loans are generally classified as non-performing once the contractual payments exceed 60 days past due, unless past due payments due to us are in the process of being collected or otherwise reasonably certain to be received in the immediate future.

Income from non-performing loans is generally recognized on a cash basis when it is received.

Full income recognition will resume when the loan becomes contractually current, and performance has recommenced.

At December 31, 2024, twenty-six loans with an aggregate net carrying value of $ 598.9 million, net of related loan loss reserves of $ 23.8 million, were classified as non-performing and, at December 31, 2023, sixteen loans with a total net carrying value of $ 235.6 million, net of related loan loss reserves of $ 27.1 million, were classified as non-performing.

At December 31, 2025, 26 loans with an aggregate net carrying value of $ 545.0 million, net of related loan loss reserves of $ 10.2 million, were classified as non-performing and, at December 31, 2024, 26 loans with an aggregate net carrying value of $ 598.9 million, net of related loan loss reserves of $ 23.8 million, were classified as non-performing.

A summary of our non-performing loans by asset class is as follows ($ in thousands):

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Total $ 569,137 $ 555,247 $ 651,847 $ 622,682

At both December 31, 2024 and 2023, we had no loans contractually past due greater than 60 days that are still accruing interest.

At December 31, 2025, we had loans with a UPB of $ 237.0 million and accrued interest of $ 6.6 million that were greater than 60 days past due and classified as performing loans.

Subsequent to December 31, 2025, all past due payments on these loans have been collected.

At December 31, 2024, we had no loans contractually past due greater than 60 days that were still accruing interest.

Other Non-accrual Loans

In this challenging economic environment, we began experiencing late and partial payments on certain loans in our structured portfolio.

Beginning in the fourth quarter of 2023, for loans that are 60 days past due or less, if we have determined there is reasonable doubt about collectability of all principal and interest, we classify those loans as non-accrual and recognize interest income only when cash is received.

The table below is a summary of those loans that are 60 days past due or less that we have classified as non-accrual, and changes to those loans for the period presented (in thousands).

In this challenging economic environment, we have been experiencing late and partial payments on certain loans in our structured portfolio.

Therefore, for loans that are 60 days past due or less, if we have determined there is reasonable doubt about collectability of all principal and interest, we classify those loans as non-accrual and recognize interest income only when cash is received.

The table below is a summary of those loans that are 60 days past due or less that we have classified as non-accrual, and changes to those loans for the periods presented ($ in thousands).

ARBOR REALTY TRUST, INC.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

Year ended December 31, 2024

Beginning balance ( twenty-four multifamily bridge loans)

Year Ended December 31, 2025 Year Ended December 31, 2024

Beginning balance ( 9 and 24 multifamily bridge loans, respectively)

$ 167,428 $ 956,917

Loans that progressed to greater than 60 days past due ( 185,302 ) ( 676,881 )

Loans modified or paid off ( 128,465 ) ( 1,103,676 )

Additional loans that are now less than 60 days past due experiencing late and partial payments 991,068

Ending balance ( nine multifamily bridge loans)

Loans transferred to REO ( 96,139 ) —

Additional loans classified as non-accrual 290,789 991,068

Ending balance ( 3 and 9 multifamily bridge loans, respectively)

$ 48,311 $ 167,428

(1) The modifications included bringing the loans current by paying past due interest owed (see Loan Modifications section below).

There were no other non-accrual loans that were 60 days or less past due at December 31, 2024.

During the year ended December 31, 2024 and 2023, we recorded $ 23.2 million and $ 92.5 million, respectively, of interest income on non-performing and other non-accrual loans.

In addition, we have six loans with a carrying value totaling $ 121.4 million at December 31, 2024, that are collateralized by a land development project.

The loans do not carry a current pay rate of interest, however, five of the loans with a carrying value totaling $ 112.1 million entitle us to a weighted average accrual rate of interest of 10.05 %.

In 2008, we suspended the recording of the accrual rate of interest on these loans, as they were impaired and we deemed the collection of this interest to be doubtful.

At both December 31, 2024 and 2023, we had a cumulative allowance for credit losses of $ 71.4 million related to these loans.

The loans are subject to certain risks associated with a development project including, but not limited to, availability of construction financing, increases in projected construction costs, demand for the development’s outputs upon completion of the project, and litigation risk.

Additionally, these loans were not classified as non-performing as the borrower is compliant with all of the terms and conditions of the loans.

At December 31, 2025 and 2024, there were three loans and one loan, respectively, included in the table above with a UPB of $ 48.3 million and $ 32.0 million, respectively, that had specific reserves totaling $ 10.7 million and $ 5.0 million, respectively.

We recorded interest income on non-performing and other non-accrual loans of $ 18.2 million and $ 23.2 million during 2025 and 2024, respectively.

On October 31, 2025, we sold a portfolio of eight legacy loans that were collateralized by a land development project with a total UPB of $ 127.9 million and a net carrying value of $ 50.0 million (net of allowance for credit losses of $ 77.9 million), along with our fully impaired $ 2.1 million equity investment in the project, for $ 59.0 million, which consisted of $ 5.9 million in cash and a $ 53.1 million promissory note from the purchaser.

The transaction was accounted for as a loan restructuring with a $ 68.9 million charge-off against the allowance for credit losses and a reversal of the allowance for credit losses of $ 9.0 million.

The promissory note bears interest at a fixed rate of 10.00 %, with a 3.00 % pay rate and a 7.00 % accrual rate, includes mandatory principal paydowns of $ 5.9 million annually with the remaining balance due in full in October 2029 and was recorded within loans and investments, net on the consolidated balance sheet.

The note is initially secured by the land development project, with lien releases permitted on sold units while the borrower is in good standing and is also supported by a full payment guaranty from an affiliate of the borrower.

This transaction also resulted in a $ 29.2 million tax deduction, which reduced our tax expense by approximately $ 7.3 million.

At December 31, 2025, the new loan was performing in accordance with its terms and was on accrual status.

Loan Modifications

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The allowance for credit losses on loan modifications is measured using the same method as all other loans held for investment.

As part of the modifications of each of these loans, we expect borrowers to invest additional capital to recapitalize their projects, which the vast majority have funded in the form of either, or a combination of:

As part of the modifications of each of these loans, we generally expect borrowers to invest additional capital to recapitalize their projects, which the vast majority have funded in the form of either, or a combination of:

(1) reallocation of and/or additional deposits into interest, renovation and/or general reserves;

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and (4) bringing any delinquent loans current by paying past due interest owed.

The following table represents the UPB of loan modifications, as of the modification date, made to borrowers experiencing financial difficulty during 2024 and the deferred interest recorded on those loans at December 31, 2024 (in thousands):

Asset Class Payment Deferrals With/Without Term Extensions (1) Term Extensions (2) Rate Reductions With/Without Term Extensions (3) Other (4) Total (5)(6) December 31, 2024 Deferred Interest (7)

The following table represents the UPB of loan modifications, as of the modification date, made to borrowers experiencing financial difficulty during the year ended December 31, 2025 ($ in thousands):

Asset Class Payment Deferrals With/Without Term Extensions (1) Rate Reductions With/Without Term Extensions (2) Other (3) Total (4)(5)(6)

Multifamily $ 1,351,453 $ 226,875 $ 83,975 $ 1,662,303

Office — 33,410 — 33,410

Single-Family Rental — — 16,490 16,490

1 unchanged sentence

________________________

(1) These loans were modified to a weighted average pay rate and deferred rate of 5.99 % and 2.06 %, respectively, at December 31, 2024 and to extend the weighted average term by 14.4 months.

These modifications include loans with a total UPB of $ 379.0 million in which the pay rate increases from time-to-time throughout the loans maturities.

(2) These loans were modified to extend the maturity date.

The weighted average term extension was 11.7 months.

ARBOR REALTY TRUST, INC.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

(1) These loans were modified to a weighted average pay rate and deferred rate of 4.23 % and 3.06 %, respectively, at December 31, 2025.

A significant portion of these loans (total UPB of $ 1.05 billion) were also modified to extend the weighted average term by 16.7 months.

These modifications also include loans with a total UPB of $ 185.1 million in which the pay rate increases from time-to-time throughout the loans' maturities.

(2) These loans were modified to reduce the interest rate to a weighted average pay rate and deferred rate of 4.85 % and 1.26 %, respectively, at December 31, 2025 and to extend the weighted average term by 22.4 months.

(3) These loan modifications included amending certain terms, such as reallocating and/or replenishment of reserves, providing for a temporary and conditional forbearance of foreclosure and temporarily delaying past due interest payments.

(4) The total UPB of these loan modifications were $ 1.59 billion at December 31, 2025 and represented 13 % of our total Structured Business loans and investments portfolio at December 31, 2025.

(5) At December 31, 2025, modified loans with a total UPB of $ 121.8 million have specific reserves totaling $ 6.8 million.

(6) Loans with a total UPB of $ 549.2 million were modified more than once in 2025 and were only included once in the table and disclosures above.

These loans are classified according to the nature of their most recent modification.

Includes loans with a total UPB of $ 651.1 million which were also modified in prior years.

Using the SOFR rate at December 31, 2025, the loans also modified in prior years were modified from a weighted average pay rate and deferred rate of 5.97 % and 1.30 %, respectively, to a weighted average pay rate and deferred rate of 4.34 % and 2.80 %, respectively.

Asset Class Payment Deferrals With/Without Term Extensions (1) Term Extensions (2) Rate Reductions With/Without Term Extensions (3) Other (4) Total (5)(6)(7)

Multifamily $ 2,197,385 $ 874,090 $ 134,630 $ 394,142 $ 3,600,247

Single-Family Rental 74,078 — 38,479 — 112,557

Total UPB $ 2,271,463 $ 874,090 $ 173,109 $ 394,142 $ 3,712,804

________________________

(1) These loans were modified to a weighted average pay rate and deferred rate of 5.99 % and 2.05 %, respectively, at December 31, 2024.

A significant portion of these loans (total UPB of $ 1.81 billion) were also modified to extend the weighted average term by 19.1 months.

These modifications also include loans with a total UPB of $ 379.0 million in which the pay rate increases from time-to-time throughout the loans' maturities.

(2) These loans were modified to extend the weighted average term by 12.7 months.

(3) These loans were modified to extend the weighted average term by 35.2 months and to reduce the weighted average interest rate by 0.62 %.

(4) These loan modifications included amending certain terms, such as reallocating and/or replenishment of reserves.

(5) The total UPB of the loan modifications made during 2024 was $ 3.97 billion at December 31, 2024 and represents 35 % of our total Structured Business loans and investments portfolio.

(5) The total UPB of these loan modifications were $ 3.56 billion at December 31, 2024 and represented 31 % of our total Structured Business loans and investments portfolio at December 31, 2024.

(6) At December 31, 2024, modified loans with a total UPB of $ 380.8 million have specific reserves totaling $ 41.3 million.

(7) These amounts are included in other assets on the consolidated balance sheets.

The following table represents the UPB of loan modifications, as of the modification date, made to borrowers experiencing financial difficulty during 2023 and the deferred interest recorded on those loans at December 31, 2024 (in thousands):

Asset Class Payment Deferrals With Term Extensions (1)(2) December 31, 2024 Deferred Interest (3)

(7) Loans with a total UPB of $ 410.2 million were modified more than once in 2024 and were only included once in the table and disclosures above.

These loans were classified according to the nature of their most recent modification.

ARBOR REALTY TRUST, INC.

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

Asset Class Payment Deferrals With/Without Term Extensions (1)(2)

Multifamily $ 398,461

________________________

(1) These loans were modified to a weighted average pay rate and deferred rate of 5.92 % and 2.16 % at December 31, 2024, respectively, and to extend the weighted average term by 14.6 months.

(2) The total UPB of the loan modifications made during 2023 was $ 351.8 million at December 31, 2024 and represents 3 % of our total Structured Business loans and investments portfolio.

(3) The deferred interest balance was $ 2.3 million at December 31, 2023.

These amounts are included in other assets on the consolidated balance sheets.

At December 31, 2024, we had future funding commitments on modified loans with borrowers experiencing financial difficulty of $ 56.4 million, which are generally subject to performance covenants that must be met by the borrower to receive funding.

All of the above modified loans were performing pursuant to their contractual terms at December 31, 2024, except for twelve loans with a total UPB of $ 395.8 million which were modified in 2024.

(1) These loans were modified to a weighted average pay rate and deferred rate of 5.92 % and 2.16 %, respectively, at December 31, 2023 and the weighted average term was extended by 14.6 months.

(2) The total UPB of these loan modifications were $ 351.8 million at December 31, 2023 and represented 3 % of our total Structured Business loans and investments portfolio at December 31, 2023.

During 2025, we recorded $ 9.9 million of deferred interest on loans that we modified during 2025 and $ 36.0 million for loans previously modified or resolved.

During 2024, we recorded $ 27.7 million of deferred interest on loans that we modified during 2024 and $ 19.9 million for loans previously modified or resolved.

During 2023, we recorded $ 12.6 million of deferred interest on loans that we modified during 2023.

All of these amounts include deferred interest recorded on loans disclosed under "Loan Resolutions." During 2025 and 2024, we reversed through interest income $ 29.3 million and $ 1.1 million, respectively, of interest receivable that was previously accrued on modified loans that we deemed the collection of interest was doubtful.

At December 31, 2025 and 2024, we have recorded deferred interest totaling $ 68.3 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 December 31, 2025 and 2024, we had future funding commitments on modified loans with borrowers experiencing financial difficulty of $ 17.4 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 December 31, 2025, except for 3 loans with a total UPB of $ 137.5 million, which includes 2 loans with a total UPB of $ 46.7 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.

Three of these loans with a UPB of $ 100.4 million have a specific reserve of $ 20.2 million.

The remaining nine loans with a total UPB of $ 295.4 million have no specific reserves as the estimated fair value of the properties exceeded our carrying value at December 31, 2024.

Seven of the twelve loans with a total UPB of $ 204.6 million were modified to provide temporary rate relief through a pay and accrual feature.

These loans have no specific reserves as the estimated fair value of the properties exceeded our carrying value at December 31, 2025.

There were no other material loan modifications, refinancings and/or extensions during 2025, 2024 or 2023 for borrowers experiencing financial difficulty.

Loan Resolutions

In October 2025, we exercised our right to foreclose on a property in Joshua, Texas that was the underlying collateral for a non-accruing bridge loan with a UPB of $ 16.5 million, an interest rate of SOFR plus 4.75 % with a SOFR floor of 5.24 % and a net carrying value of $ 16.4 million.

We sold the property in October 2025 for $ 16.5 million to a new borrower and provided a $ 15.5 million bridge loan with an interest rate equal to the greater of 5.68 % or SOFR plus 1.70 %.

The new loan was deemed to be a significant financing component of the transaction and, as a result, we recorded a loss and corresponding liability of $ 0.2 million as an adjustment to the purchase price, which will be accreted into interest income over the life of the loan.

In October 2025, we exercised our right to foreclose on a property in Houston, Texas that was the underlying collateral for a non-accruing bridge loan with a UPB of $ 31.2 million, an interest rate of SOFR plus 4.25 % with a SOFR floor of 2.51 % and a net carrying value of $ 25.1 million, which includes a loan loss reserve of $ 2.5 million.

At foreclosure, we recorded a $ 0.8 million loan loss reversal and charged-off the remaining loan loss reserves of $ 1.7 million.

We sold the property in December 2025 for $ 30.0 million to a new borrower and provided a $ 29.5 million bridge loan with an interest rate equal to the greater of 4.50 % or SOFR plus 2.50 %.

In 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 3.00 % for year three, subject to SOFR floors of 4.25 %, 5.25 % and 6.25 % in years one, two and three, respectively.

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The new loan was deemed to be a significant financing component of the transaction and, as a result, we recorded a loss and corresponding liability of $ 0.8 million as an adjustment to the purchase price, which will be accreted into interest income over the life of the loan.

In April 2025, we exercised our right to foreclose on two properties in Austin, Texas that were the underlying collateral for a non-performing bridge loan with a UPB of $ 21.2 million, an interest rate of SOFR plus 4.00 % with a SOFR floor of 0.25 %, and a net carrying value of $ 21.7 million.

At foreclosure, we recorded an additional loss of $ 1.0 million to the provision for credit losses on the consolidated statements of income.

We sold the properties in June 2025 for $ 20.7 million to a new borrower and provided a $ 19.2 million bridge loan with an interest rate of SOFR plus 2.00 % in year one and SOFR plus 3.00 % in year two.

The new loan was deemed to be a significant financing component of the transaction and, as a result, we recorded a loss and corresponding liability of $ 0.1 million as an adjustment to the purchase price, which will be accreted into interest income over the life of the loan.

In April 2025, we exercised our right to foreclose on two properties in Orange Park, Florida that were the underlying collateral for a non-performing bridge loan with a UPB of $ 17.0 million, an interest rate of SOFR plus 4.38 % with a SOFR floor of 2.46 % and a net carrying value of $ 15.7 million.

At foreclosure, we recorded an additional loss of $ 0.3 million to the provision for credit losses on the consolidated statements of income.

We sold the properties in June 2025 for $ 15.4 million to a new borrower and provided a $ 14.8 million bridge loan with an interest rate of SOFR plus 1.50 %.

The new loan was deemed to be a significant financing component of the transaction and, as a result, we recorded a loss and corresponding liability of $ 0.6 million as an adjustment to the purchase price, which will be accreted into interest income over the life of the loan.

In the fourth quarter of 2024, we exercised our right to foreclose on two properties in Houston, Texas, that were the underlying collateral for two bridge loans with an aggregate UPB of $ 73.3 million, a weighted average interest rate of SOFR plus 3.29 %, with a weighted average SOFR floor of 0.68 %, and an aggregate net carrying value of $ 56.5 million, which includes loan loss reserves totaling $ 9.0 million and holdback reserves totaling $ 8.2 million.

At foreclosure, we recorded a $ 7.7 million loan loss recovery and charged-off the remaining loan loss reserves of $ 1.3 million.

At foreclosure, we recorded a $ 7.7 million loan loss reversal and charged-off the remaining loan loss reserves of $ 1.3 million.

Additionally, we simultaneously sold both properties for $ 67.6 million to a new borrower and provided two new bridge loans totaling $ 67.6 million with a weighted average fixed interest rate of 4.25 % for the first two years and 5.75 % in the third year.

The new financing was deemed to be a significant financing component of the transaction and, as a result, we recorded a loss and corresponding liability totaling $ 5.0 million as an adjustment to the purchase price, which will be accreted into interest income over the life of the loan.

The gains and losses of this transaction were recorded through the provision for credit losses (net of recoveries) on the consolidated statements of income.

The new loans were deemed to be a significant financing component of the transaction and, as a result, we recorded a loss and corresponding liability totaling $ 5.0 million as an adjustment to the purchase price, which will be accreted into interest income over the life of the loans.

The gains and losses of this transaction were recorded through the provision for credit losses, net on the consolidated statements of income.

In July 2024, we exercised our right to foreclose on a property in Waco, Texas, that was the underlying collateral for a non-performing bridge loan with a UPB of $ 12.7 million, an interest rate of SOFR plus 3.75 %, with a SOFR floor of 0.10 %, and a net carrying value of $ 11.3 million, which was net of a $ 1.5 million loan loss reserve.

At foreclosure, we recorded a $ 1.0 million loan loss recovery and charged-off the remaining loan loss reserve.

At foreclosure, we recorded a $ 1.0 million loan loss reversal and charged-off the remaining loan loss reserve.

Additionally, we simultaneously sold the property for $ 12.3 million to a new borrower and provided a new $ 12.3 million bridge loan with an interest rate of SOFR, with a SOFR floor of 5.25 %, which was deemed to be a significant financing component of the transaction.

As a result, we recorded a loss and corresponding liability of $ 1.0 million as an

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adjustment to the purchase price which will be accreted into interest income over the life of the loan.

The gains and losses of this transaction were recorded through the provision for credit losses (net of recoveries) on the consolidated statements of income.

As a result, we recorded a loss and corresponding liability of $ 1.0 million as an adjustment to the purchase price which will be accreted into interest income over the life of the loan.

The gains and losses of this transaction were recorded through the provision for credit losses.

In July 2024, we exercised our right to foreclose on a property in Savannah, Georgia, that was the underlying collateral for a non-performing bridge loan with a UPB of $ 7.3 million, an interest rate of SOFR plus 3.75 %, with a SOFR floor of 0.10 %, and a net carrying value of $ 6.6 million, which was net of a $ 0.8 million loan loss reserve.

At foreclosure, we recorded a $ 0.8 million loan loss recovery and a gain of $ 0.3 million.

At foreclosure, we recorded a $ 0.8 million loan loss reversal and a gain of $ 0.3 million.

Additionally, we simultaneously sold the property for $ 7.7 million to a new borrower and provided a new $ 7.3 million bridge loan with a fixed pay rate of 4.00 % and a fixed accrual rate of 2.00 % that is deferred to payoff, which was deemed to be a significant financing component of the transaction.

As a result, we recorded a loss and corresponding liability of $ 0.5 million as an adjustment to the purchase price which will be accreted into interest income over the life of the loan.

The gains and losses of this transaction were recorded through the provision for credit losses (net of recoveries).

The gains and losses of this transaction were recorded through the provision for credit losses, net.

In April 2024, we exercised our right to foreclose on a group of properties in Houston, Texas, that were the underlying collateral for a bridge loan with a UPB of $ 100.3 million.

We simultaneously sold the properties for $ 101.3 million to a newly formed entity, which was initially capitalized with $ 15.0 million of equity and a new $ 95.3 million bridge loan that we provided at SOFR plus 3.00 %.

At December 31, 2024, total equity invested was $ 21.2 million and is made up of $ 9.4 million from AWC Real Estate Opportunity Partners I LP ("AWC”), a fund in which we have a 49 % non-controlling limited partnership interest (see Note 8 for details) and $ 11.8 million from multiple independent ownership groups.

At December 31, 2025, total equity invested was $ 21.2 million and is made up of $ 9.4 million from AWC Real Estate Opportunity Partners I LP ("AWC”), a fund in which we have a 46 % noncontrolling limited partnership interest (see Note 8 for details) and $ 11.8 million from

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multiple independent ownership groups.

AWC and one of the other equity members are the co-managing members of the entity that owns the real estate.

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On the date of the conversion, the investment had a net carrying value of $ 37.1 million, net of an $ 8.0 million reserve.

Upon conversion, we recognized a $ 2.3 million loan loss recovery as a result of the fair value of the property exceeding the carrying value of our loan and preferred equity investment.

Upon conversion, we recognized a $ 2.3 million loan loss reversal as a result of the fair value of the property exceeding the carrying value of our loan and preferred equity investment.

We intend to convert the building to residential condominiums.

In April 2023, we exercised our right to foreclose on a group of properties in Houston, Texas, that are the underlying collateral for 4 bridge loans with a total UPB of $ 217.4 million.

We simultaneously sold these properties to a significant equity investor in the original bridge loans and provided new bridge loan financing as part of the sale totaling $ 239.4 million with a fixed pay rate increasing over time from 3.00 % to 5.00 %, while deferring up to a weighted average rate of SOFR plus 3.47 %.

We did not record a loss on the original bridge loans and recovered all the outstanding interest owed to us as part of this restructuring.

At December 31, 2025 and 2024, we have deferred interest totaling $ 29.4 million and $ 22.2 million accrued, respectively, related to these new loans, which is included in other assets.

In 2022, we sold four bridge loans with an aggregate UPB of $ 296.9 million at par less shared loan origination fees and selling costs totaling $ 2.0 million and recaptured $ 78.0 million of capital to be used for future investments.

The $ 2.0 million in fees and costs were recorded as an unrealized impairment loss and included in other income (loss), net on the consolidated statements of income.

We retained the right to service these loans.

During 2022, we sold a bridge loan and mezzanine loans totaling $ 110.5 million, that were collateralized by a land development project, at a discount for $ 102.2 million.

In connection with this transaction, we recaptured $ 66.3 million of capital to be used for future investments and recorded a $ 9.2 million loss (including fees and expenses), which was included in other income (loss), net on the consolidated statements of income.

We have the potential to recover up to $ 2.8 million depending on the future performance of the loan.

Given the transitional nature of some of our real estate loans, we may require funds to be placed into an interest reserve, based on contractual requirements, to cover debt service costs.

At December 31, 2024 and 2023, we had total interest reserves of $ 215.4 million and $ 156.1 million, respectively, on 589 loans and 537 loans, respectively, with an aggregate UPB of $ 8.65 billion and $ 8.44 billion, respectively.

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See Note 9 for additional loan resolution details.

Interest Reserves

Given the transitional nature of some of our real estate loans, we may require funds to be placed into an interest reserve as required by the loan documents to cover debt service costs.

At December 31, 2025 and 2024, we had total interest reserves of $ 259.7 million and $ 215.4 million, respectively, on 444 loans and 589 loans, respectively, with a total UPB of $ 8.68 billion and $ 8.65 billion, respectively.

Note 4 — Loans Held-for-Sale, Net

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Fannie Mae $ 303,196 $ 171,235

Freddie Mac 159,201 50,235

FHA 65,589 4,832

Private Label 77,798 38,962

FHA 22,390 65,589

SFR - Fixed Rate 2,777 3,246

Freddie Mac 2,225 159,201

408,386 438,233

Fair value of future MSR 5,921 5,138

Unrealized impairment loss ( 1,381 ) ( 1,989 )

Unrealized impairment recovery (loss) 1,414 ( 1,381 )

Unearned discount ( 6,640 ) ( 6,231 )

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During 2025, 2024 and 2023, we sold $ 5.10 billion, $ 4.61 billion and $ 4.89 billion, respectively, of loans held-for-sale.

During 2022, we recorded a net impairment loss of $ 5.2 million on seven Private Label loans held-for-sale with a UPB of $ 129.9 million and a net carrying value of $ 116.4 million.

During the first quarter of 2023, we sold these impaired loans above the net carrying value and recorded a gain of $ 0.9 million.

At December 31, 2025 and 2024, there were no loans held-for-sale that were 90 days or more past due, and there were no loans held-for-sale that were placed on a non-accrual status.

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The weighted average estimated life remaining of our MSRs was 6.1 years and 6.9 years at December 31, 2025 and 2024, respectively.

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A summary of our capitalized MSR activity is as follows ($ in thousands):

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Ending balance $ 338,174 $ 2,668 $ 340,842 $ 363,861 $ 4,817 $ 368,678

We collected prepayment fees totaling $ 3.0 million and $ 6.4 million during 2024 and 2023, respectively, which are included as a component of servicing revenue, net on the consolidated statements of income.

We collected prepayment fees totaling $ 3.5 million, $ 3.0 million and $ 6.4 million during 2025, 2024 and 2023, respectively, which are included as a component of servicing revenue, net on the consolidated statements of income.

At December 31, 2025 and 2024, no MSRs were considered impaired.

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The expected amortization of capitalized MSRs recorded at December 31, 2025 is as follows ($ in thousands):

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Based on scheduled maturities, actual amortization may vary from these estimates.

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Note 6 – Mortgage Servicing

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Product UPB (1) % of Total State UPB % of Total

Fannie Mae $ 22,730,056 67 % Texas 11 %

Freddie Mac 6,077,020 18 % New York 11 %

Private Label 2,605,980 8 % California 8 %

FHA 1,506,948 5 % North Carolina 7 %

Bridge (2) 278,494 1 % Georgia 6 %

SFR - Fixed Rate 271,859 1 % Florida 6 %

Fannie Mae $ 24,085,960 66 % New York 13 %

Freddie Mac 7,455,088 21 % Texas 10 %

Private Label 2,558,048 7 % North Carolina 8 %

FHA 1,549,483 4 % California 7 %

Bridge (2) 277,738 1 % Florida 7 %

SFR - Fixed Rate 277,490 1 % Georgia 5 %

Total $ 36,203,807 100 % New Jersey 5 %

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(1) Excludes loans which we are not collecting a servicing fee.

(2) Represents four bridge loans sold by our Structured Business that we are servicing, see Note 3 for details.

(2) Represents bridge loans sold by our Structured Business that we are servicing.

(3) No other individual state represented 4% or more of the total.

At December 31, 2025 and 2024, our weighted average servicing fee was 35.6 basis points and 37.8 basis points, respectively.

At December 31, 2024 and 2023, we held total escrow balances (including unfunded CLO hold backs) of approximately $ 1.45 billion and $ 1.60 billion, respectively, of which approximately $ 1.41 billion and $ 1.54 billion is not included in our consolidated balance sheets at December 31, 2024 and 2023, respectively.

These escrows are maintained in separate accounts at several federally insured depository

At December 31, 2025 and 2024, we held total escrow balances (including unfunded CLO hold backs) of approximately $ 1.35 billion and $ 1.45 billion, respectively, of which approximately $ 1.34 billion and $ 1.41 billion, respectively, is not included in our consolidated balance sheets.

These escrows are maintained in separate accounts at several federally insured depository institutions, which may exceed FDIC insured limits.

We earn interest income on the total escrow deposits, which is generally based on a market rate of interest negotiated with the financial institutions that hold the escrow deposits.

Interest earned on total escrows, net of interest paid to the borrower, is included as a component of servicing revenue, net in the consolidated statements of income as noted in the following table.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

institutions, which may exceed FDIC insured limits.

We earn interest income on the total escrow deposits, which is generally based on a market rate of interest negotiated with the financial institutions that hold the escrow deposits.

Interest earned on total escrows, net of interest paid to the borrower, is included as a component of servicing revenue, net in the consolidated statements of income as noted in the following table.

The components of servicing revenue, net are as follows ($ in thousands):

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These certificates are collateralized by 5-year to 10-year fixed rate first mortgage loans on multifamily properties, bear interest at an initial weighted average variable rate of 3.94 % and have an estimated weighted average remaining maturity of 5.3 years.

The weighted average effective interest rate was 8.84 % and 8.85 % at December 31, 2024 and 2023, respectively, including the accretion of a portion of the discount deemed collectible.

Approximately $ 192.8 million is estimated to mature in five to ten years.

The weighted average effective interest rate was 8.84 % at both December 31, 2025 and 2024, including the accretion of a portion of the discount deemed collectible.

Approximately $ 63.6 million is estimated to mature in one to five years and $ 129.2 million is estimated to mature in five to ten years.

Agency B Piece Bonds.

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Total $ 230,012 $ 157,154 $ ( 12,646 ) $ 144,508 $ 10,846

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A summary of the changes in the allowance for credit losses for our securities held-to-maturity is as follows ($ in thousands):

Year Ended December 31, 2025 Year Ended December 31, 2024

Certificates B Piece

Bonds Total APL

Certificates B Piece

APL Certificates B Piece Bonds Total APL Certificates B Piece Bonds Total

Beginning balance $ 1,658 $ 9,188 $ 10,846 $ 2,272 $ 3,984 $ 6,256

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Ending balance $ 1,664 $ 15,349 $ 17,013 $ 1,658 $ 9,188 $ 10,846

The allowance for credit losses on our held-to-maturity securities consists of (1) a general reserve estimated on a collective basis by major security type and was based on a reasonable and supportable forecast period and a historical loss reversion for similar securities, and (2) a specific reserve for underlying loans that are probable of, or is, in foreclosure.

The issuers continue to make timely principal and interest payments and we continue to accrue interest on all our securities.

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At December 31, 2025, securities held-to-maturity with a carrying value of $ 19.5 million (before specific allowances of $ 14.6 million) were on non-accrual status.

We continue to accrue interest on all other securities that remain current.

We recorded interest income (including the amortization of discount) related to these investments of $ 14.2 million, $ 15.9 million and $ 13.6 million during 2025, 2024 and 2023, respectively.

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Equity Affiliates December 31, 2025 December 31, 2024

Arbor Residential Investor LLC $ 23,868 $ 32,743 $ —

AMAC Holdings III LLC 15,413 13,591 35,410

Fifth Wall Ventures $ 17,260 $ 14,490 $ —

AWC Real Estate Opportunity Partners I LP 17,134 13,562 108,450

AMAC Holdings III LLC 12,714 15,413 33,410

ARSR DPREF I LLC 5,745 5,603 —

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1,895 1,895 —

Clarus Berkley 1,500 — 67,900

The Park at Via Terrossa 578 606 21,845

JT Prime 425 425 —

West Shore Café — — 1,688

The Cypress at Wesley Park 265 — 14,964

Lexford Portfolio — — —

East River Portfolio — — —

Arbor Residential Investor LLC — 23,868 —

West Shore Café — — —

Total $ 57,966 $ 76,312 $ 246,569

Arbor Residential Investor LLC (“ARI”).

We invested $ 9.6 million for a 50 % interest in ARI, with our former manager (ACM) holding the remaining 50 %.

ARI was formed to hold a 50 % interest in Wakefield Investment Holdings LLC (“Wakefield”), an entity that was formed with a third party to hold a controlling interest ( 65 %) in a residential mortgage banking business.

ARI has no other assets, liabilities or activity other than its investment in Wakefield.

At December 31, 2024, our indirect interest in this business was 12.3 %.

The allocation of income is based on the underlying agreements, which may be different than our indirect interest, and was 9.2 % at December 31, 2024.

We account for our ownership interest in ARI under the equity method of accounting and ARI accounts for its ownership interest in Wakefield under the equity method of accounting.

During 2024, 2023 and 2022, we recorded a loss of $ 1.2 million, income of $ 0.6 million and income of $ 4.9 million, respectively, to income from equity affiliates in the consolidated statements of income.

We also received $ 7.7 million and $ 15.0 million in cash distributions from this investment during 2024 and 2023, respectively, which were classified as returns of capital.

We committed to a $ 30.0 million investment for an 18 % interest in a multifamily-focused commercial real estate investment fund that is sponsored and managed by our chief executive officer and one of his immediate family members.

During 2024, 2023 and 2022, we recorded losses associated with this investment of $ 2.3 million, $ 1.9 million and $ 2.4 million, respectively.

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2024 and 2023, we made contributions of $ 4.1 million and $ 0.7 million, respectively, and received cash distributions of $ 1.1 million in 2023, which were classified as returns of capital, related to this investment.

We committed to a $ 25.0 million investment for a 7.6 % interest in two related private equity funds whose investment objective is to invest primarily in technology, technology-enabled or technology-related companies that are relevant or complementary to the build environment, including real estate or real estate-related industries.

We have no role in the management of the investment funds.

During 2024 and 2023, we made contributions of $ 1.1 million and $ 1.0 million, respectively, and recorded income associated with this investment of $ 0.1 million and a loss of $ 1.2 million, respectively.

Operating results from this investment were de minimis for 2022.

During 2025, 2024 and 2023, we recorded income associated with this investment of $ 1.2 million, $ 0.1 million and a loss of $ 1.2 million, respectively.

During 2025 and 2024, we made contributions of $ 2.9 million and $ 1.1 million, respectively, and during 2025 we received distributions of $ 1.4 million, which were classified as returns of capital.

AWC Real Estate Opportunity Partners I LP ("AWC").

In the fourth quarter of 2023, we committed to a $ 24.0 million investment, of which $ 11.7 million was initially funded, for an initial 99 % noncontrolling interest in a fund whose objective is to make investments in sustainable affordable housing structures, with the intention to bring in additional partners.

In addition, we entered into an agreement with the general partner to provide a loan, up to a maximum of $ 0.9 million, to fund a portion of their 1 % general partnership interest, of which $ 0.3 million was funded at December 31, 2024.

In the second quarter of 2024, in accordance with the fund's objectives, AWC brought in an additional capital partner who committed to a $ 25.0 million investment ($ 16.3 million was funded at December 31, 2024) in exchange for a 51 % non-controlling limited partnership interest and 17.5 % of the general partner's interest in the fund.

This new equity partner diluted our limited partnership interest in the fund to a 49 % non-controlling limited partnership interest.

Additionally, AWC invested $ 9.4 million for a 44 % interest in a newly formed entity, which purchased a group of properties in Houston, Texas, that were the collateral for a $ 100.3 million bridge loan that we foreclosed on simultaneously with the sale.

We committed to a $ 24.0 million investment, of which $ 11.7 million was initially funded, for an initial 99 % noncontrolling interest in a fund whose objective is to make investments in sustainable affordable housing structures, with the intention to bring in additional partners.

In addition, we entered into an agreement with the general partner to provide a loan, up to a maximum of $ 0.9 million, to fund a portion of their 1 % general partnership interest ($ 0.4 million was funded at December 31, 2025).

In 2024, in accordance with the fund's objectives, AWC brought in an additional capital partner who committed to a $ 25.0 million investment ($ 21.8 million was funded at December 31, 2025) in exchange for a 51 % noncontrolling limited partnership interest and 17.5 % of the general partner's interest in the fund.

An additional capital partner was also brought in during the first quarter of 2025, who committed to a $ 3.0 million investment ($ 2.6 million was funded at December 31, 2025).

The new equity partners diluted our interest in the fund to a 46 % noncontrolling limited partnership interest.

In 2024, AWC invested $ 9.4 million for a 44 % interest in a newly formed entity, which purchased a group of properties in Houston, Texas, that were the collateral for a $ 100.3 million bridge loan that we foreclosed on simultaneously with the sale.

We sold the Houston properties for $ 101.3 million, which was primarily financed with a new $ 95.3 million bridge loan we provided at SOFR plus 3 %.

See Note 3 for details.

In the fourth quarter of 2023, this fund also purchased our equity interest in North Vermont Avenue at a discount for $ 1.3 million, which was recorded as a reduction to our investment in AWC.

The remaining $ 14.3 million of capital invested in the fund was used to purchase four additional qualified investments and to pay for legal and administrative expenses primarily related to the formation of the fund.

In 2023, this fund also purchased our equity interest in North Vermont Avenue at a discount for $ 1.3 million, which was recorded as a reduction to our investment in AWC.

The remaining capital invested in the fund was used to purchase four additional qualified investments and to pay for legal and administrative expenses

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primarily related to the formation of the fund.

We provided a $ 13.0 million Fannie Mae DUS loan and a $ 13.2 million bridge loan to the owners of the real estate on two of these investments.

During 2024, we made contributions of $ 13.6 million, received distributions of $ 11.2 million, which were classified as returns of capital, and recorded a loss of $ 0.5 million related to this investment.

Interest income recorded from the $ 95.3 million and $ 13.2 million bridge loans was $ 5.4 million for the year ended December 31, 2024.

During 2025 and 2024, we made contributions of $ 6.1 million and $ 13.6 million, respectively, received distributions of $ 1.0 million and $ 11.2 million, respectively, which were classified as returns of capital, and recorded losses of $ 1.6 million and $ 0.5 million, respectively, related to this investment.

Interest income recorded from the bridge loans was $ 8.2 million and $ 5.4 million during 2025 and 2024, respectively.

Operating results from this investment were de minimis during 2023.

During 2025, 2024 and 2023, we recorded losses associated with this investment of $ 3.6 million, $ 2.3 million and $ 1.9 million, respectively.

During 2025 and 2024, we made contributions of $ 0.9 million and $ 4.1 million, respectively.

ARSR DPREF I LLC.

In the fourth quarter of 2023, we entered into a joint venture whose objective is to invest in preferred equity investments in commercial real estate and we contributed 50 % of a $ 10.2 million preferred equity loan originated by us to the joint venture.

We entered into a joint venture whose objective is to invest in preferred equity investments in commercial real estate and we contributed 50 % of a $ 10.2 million preferred equity loan originated by us to the joint venture.

We hold a 50 % interest in the joint venture which is structured to reflect joint control, allocation of profits and losses and capital contributions.

The agreement provides for a total joint venture contribution of $ 70.0 million, which may be upsized to $ 140.0 million.

During 2024, we recorded income associated with this investment of $ 0.7 million and received distributions of $ 0.4 million which were classified as returns of capital.

During 2025 and 2024, we recorded income associated with this investment of $ 0.6 million and $ 0.7 million, respectively, and received distributions of $ 0.5 million and $ 0.4 million, respectively, which were classified as returns of capital.

Operating results from this investment were de minimis during 2023.

Lightstone Value Plus REIT L.P.

3 unchanged sentences

Operating results from these investments were de minimis for all periods presented.

The Park at Via Terrossa.

In the first quarter of 2024, we contributed $ 0.6 million, for a 5 % interest in a multifamily property.

Clarus Berkley.

In the fourth quarter of 2025, we contributed $ 1.5 million for a 3.6 % interest in a multifamily property.

Operating results from this investment were de minimis during 2025.

The Park at Via Terrossa.

We contributed $ 0.6 million, for a 5 % interest in a multifamily property.

Operating results from this investment were de minimis during 2025 and 2024.

We invested $ 0.5 million for a noncontrolling interest in Docsumo, a startup company that converts unstructured documents, such as bank statements and pay stubs, to accurate structured data and checks documents for fraud, such as photoshopped layers and font changes, using AI.

Operating results from this investment were de minimis for all periods presented.

West Shore Café.

We own a 50 % noncontrolling interest in the West Shore Lake Café, a restaurant/inn lakefront property in Lake Tahoe, California.

We provided a $ 1.7 million first mortgage loan to an affiliated entity to acquire property adjacent to the original property, which matures in September 2025 and bears interest at SOFR plus 4 % with a SOFR floor of 0.15 %.

In 2018, we determined that this investment exhibited indicators of impairment and recorded an other-than-temporary impairment of $ 2.2 million for the full carrying amount of this investment and fully reserved the $ 1.7 million first mortgage loan.

Operating results from this investment were de minimis for all periods presented.

The Cypress at Wesley Park.

In the third quarter of 2025, we originated a $ 15.0 million Fannie Mae loan, which was used to purchase a recently constructed SFR portfolio in Florida, and invested $ 0.3 million of equity for a 5 % ownership interest in the portfolio.

The loan was sold to Fannie Mae during the third quarter.

Operating results from this investment were de minimus during 2025.

Lexford Portfolio.

We own a less than $ 0.1 million noncontrolling equity interest in Lexford, a portfolio of multifamily assets.

In 2024 and 2023, we received distributions from this investment and recognized income totaling $ 9.0 million and $ 12.2 million, respectively.

ARBOR REALTY TRUST, INC.

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

We invested less than $ 0.1 million for a noncontrolling interest in Lexford, a portfolio of multifamily assets.

We currently hold a 30.8 % economic interest in this investment.

During 2025, we recognized income of $ 56.0 million, net of $ 3.0 million in transaction related expenses and received distributions from this investment of $ 59.0 million.

The distribution received relates to the sales of a portion of Lexford's multifamily asset portfolio.

During 2024 and 2023, we received distributions from the investment and recognized income of $ 9.0 million and $ 12.2 million, respectively.

East River Portfolio.

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Operating results from this investment were de minimis for all periods presented.

Arbor Residential Investor LLC (“ARI”).

We invested $ 9.6 million for a 50 % interest in ARI, with our former manager (ACM) holding the remaining 50 %.

During 2025, 2024 and 2023, we recorded a loss of $ 1.7 million, $ 1.2 million and income of $ 0.6 million, respectively, to income from equity affiliates in the consolidated statements of income.

We also received $ 22.5 million and $ 7.7 million in cash distributions from this investment during 2025 and 2024, respectively, which were classified as returns of capital.

ARBOR REALTY TRUST, INC.

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

In April 2025, Wakefield entered into an agreement to sell its interest in the residential mortgage banking business for $ 117.3 million.

Based on the terms of this agreement, $ 22.0 million was allocated to us, which is equivalent to the carrying value of our investment, and therefore we did not record a gain or loss on the transaction.

The transaction closed once the entire sales price was paid, which the first two installments were made in April, for which we received $ 5.6 million as our allocable share, and the final installment was made in July 2025, for which we received $ 16.4 million as our allocable share.

West Shore Café.

We owned a 50 % noncontrolling interest in the West Shore Lake Café, a restaurant/inn lakefront property in Lake Tahoe, California.

We provided a $ 1.7 million first mortgage loan to an affiliated entity to acquire property adjacent to the original property.

In 2018, we determined that this investment exhibited indicators of impairment and recorded an other-than-temporary impairment for the full carrying amount of this investment and fully reserved the first mortgage loan.

In October 2025, we sold the first mortgage loan, along with our equity interest in this investment, as part of the sale of a portfolio of loans collateralized by a land development project.

See Note 3 for details.

Equity Participation Interest.

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These were classified as returns of capital and recognized as income from equity affiliates.

North Vermont Avenue.

We invested $ 2.4 million for an initial 85 % noncontrolling interest in a joint venture that acquired three parcels of land with multiple structures, with the intent to tear down the existing structures and construct a new 202 -unit multifamily complex with ground floor retail.

Operating results from this investment were de minimis for all periods presented.

During 2022, we determined that this investment exhibited indicators of impairment and, as a result of an impairment analysis performed;

we recorded an other-than-temporary impairment of $ 2.4 million to income from equity affiliates for the full carrying amount of this investment.

In the fourth quarter of 2023, AWC purchased our equity interest in North Vermont Avenue at a discount for $ 1.3 million (described above).

See Note 19 for details of certain investments described above.

See Note 19 for additional details of certain investments described above.

Note 9 — Real Estate Owned

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Real estate owned, net $ 434,554 $ 56,437 $ 7,947 $ 498,938 $ 124,486 $ 44,110 $ 7,947 $ 176,543

At December 31, 2024, our REO assets were comprised of four multifamily properties, two office buildings and two land parcels.

At December 31, 2023, our REO assets were comprised of one multifamily property, three office buildings and two land parcels.

At December 31, 2024 and 2023, we had mortgage notes payable totaling $ 74.9 million and $ 44.3 million, respectively, which are collateralized by our REO assets.

At December 31, 2024 and 2023, our multifamily properties had a weighted average occupancy rate of approximately 77 % and 98 %, respectively.

At December 31, 2024, both our office buildings were vacant, and at December 31, 2023, two office buildings were vacant and the third building was 89 % occupied.

During 2024, we foreclosed on three multifamily bridge loans and took back the underlying collateral as REO assets.

These properties have a total carrying value of $ 97.4 million at December 31, 2024.

During 2024, we sold an office REO asset for $ 14.2 million, repaid the mortgage note outstanding of $ 9.0 million, and recognized a $ 3.8 million gain.

During 2024 and 2023, we recorded depreciation expense related to the REO assets of $ 3.7 million and $ 2.9 million, respectively.

Our REO assets had restricted cash balances due to escrow requirements totaling $ 2.9 million and $ 1.4 million at December 31, 2024 and 2023, respectively.

Subsequent Event.

In January and February 2025, we foreclosed on and took back three multifamily properties collateralizing bridge loans with a total UPB of $ 101.6 million.

Number of properties 15 2 2 19 4 2 2 8

During 2025, we foreclosed sixteen multifamily bridge loans with an aggregate net carrying value of $ 441.0 million (net of specific CECL reserves of $ 41.0 million) an d received ownership of the underlying collateral as REO assets.

Upon foreclosure, during 2025, we charged off $ 40.3 million of CECL reserves and reversed $ 0.7 million.

During 2025, we sold five multifamily REO assets for $ 121.9 million and repaid $ 69.2 million of outstanding notes payable.

We recognized a loss of $ 2.7 million re lated to these dispositions, excluding the loss associated with the significant financing component discussed below.

Additionally, we provided new bridge loan financing to the new borrowers totaling $ 125.6 million .

The bridge loans bear interest at fixed rates ranging from 4.75 % to 6.00 % (stepping up annually), or at floating rates generally equal to the greater of stated floors ranging from 5.00 % to 7.32 % and SOFR plus spreads ranging from 0.50 % to 3.30 % (with certain loans stepping up annually).

Three of the new loans provided were deemed to be a significant financing component of the transactions an d as a result, during 2025 , we recorded a loss and corresponding liability of $ 3.2 million, as an adjustme nt to the purchase price, which will be accreted into interest income over the life of the loans.

The net losses of these transactions were recorded through (loss) gain on real estate on the consolidated statements of income.

See Note 3 for details of properties foreclosed and sold within the same reporting period.

During 2025, we determined that certain of our REO assets exhibited indicators of impairment based on expected disposition strategies, our evaluation of current market conditions and other property-specific assumptions.

Based on our impairment analyses performed, we recorded an impairment loss of $ 20.5 million related to six properties, which represents the extent to which the carrying value of the property exceeded its estimated fair value.

At December 31, 2025 and 2024, we had notes payable totalin g $ 223.0 million and $ 74.9 million, respectively, to finance our REO assets.

Interest rates on the notes payable range from SOFR plus 2.35 % to SOFR plus 3.25 %, with maturities spanning from February 2026 to September 2027.

ARBOR REALTY TRUST, INC.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

At December 31, 2025, our multifamily properties had a weighted average occupancy rate of approximately 45 %, excluding two properties that were vacant due to renovations.

At December 31, 2024, our multifamily properties had a weighted average occupancy rate of approximately 77 %.

At both December 31, 2025 and 2024, both office buildings were vacant.

During 2024, we foreclosed on three multifamily bridge loans and took back the underlying collateral as REO assets.

These properties had a total carrying value of $ 97.4 million at December 31, 2024.

During 2024, we sold an office REO asset for $ 14.2 million, repaid the note payable outstanding of $ 9.0 million, and recognized a $ 3.8 million gain.

During 2025, 2024 and 2023, we recorded depreciation expense related to the REO assets o f $ 19.1 million , $ 3.7 million and $ 2.9 million, respectively.

Subsequent Event.

In 2026, we foreclosed on two loans with a total UPB of $ 33.9 million.

Note 10 — Goodwill and Other Intangible Assets

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Finite‑lived intangible assets:

Broker relationships $ 25,000 $ ( 25,000 ) $ — $ 25,000 $ ( 23,307 ) $ 1,693

Borrower relationships $ 14,400 $ ( 13,620 ) $ 780 $ 14,400 $ ( 12,180 ) $ 2,220

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$ 47,410 $ ( 17,483 ) $ 29,927 $ 47,410 $ ( 15,917 ) $ 31,493

The amortization expense recorded for these intangible assets was $ 3.3 million in 2024 and $ 4.7 million in both 2023 and 2022.

The amortization expense recorded for these intangible assets was $ 1.6 million, $ 3.3 million and $ 4.7 million for 2025, 2024 and 2023, respectively.

At December 31, 2025, the weighted average remaining lives of our amortizable finite-lived intangible assets and the estimated annual amortization expense are as follows ($ in thousands):

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Years Ending December 31,

2025 2026 2027

Finite‑lived intangible assets:

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— — — — 215,832 215,459 336,193 6.97 %

$ 750 M repurchase facility (2)

$ 1 B repurchase facility

880,380 879,499 1,207,513 6.45 % 782,956 781,812 1,055,321 7.20 %

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444,452 443,880 725,309 6.29 % 203,348 202,798 362,695 7.28 %

$ 400 M credit facility

140,412 138,695 237,123 7.69 % — — — —

$ 650 M repurchase facility (2)(3)

462,702 462,694 549,069 6.33 % 499,039 499,017 678,017 6.98 %

$ 250 M repurchase facility

$ 400 M credit facility

67,959 66,479 125,099 7.03 % 140,412 138,695 237,123 7.69 %

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79,220 78,963 102,758 6.27 % 108,861 108,696 145,148 7.43 %

$ 134 M loan specific credit facilities

134,131 133,965 181,108 6.59 % 120,660 120,328 161,700 6.91 %

$ 200 M repurchase facility

41,480 41,114 59,147 6.32 % 156,329 155,676 214,441 6.98 %

$ 50 M credit facility (6)

$ 64 M loan specific credit facilities

63,500 63,456 87,000 5.70 % 134,131 133,965 181,108 6.59 %

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(2) These facilities are subject to margin call provisions associated with changes in interest spreads.

(3) A portion of this facility was used to finance a fixed rate SFR permanent loan reported through our Agency Business.

(4) In December 2024, we terminated this facility.

(5) This facility matured in October 2024 and was not renewed.

(6) In June 2024, we terminated this facility.

(3) A portion of this facility was used to finance a fixed-rate SFR permanent loan reported through our Agency Business, which has been paid off.

(4) At December 31, 2025 and 2024, this facility was collateralized by certificates retained by us from our Freddie Mac Q Series securitization (“Q Series securitization”) with a principal balance of $ 26.5 million and $ 26.6 million, respectively.

(8) These amounts exclude outstanding mortgage notes payable on our REO assets with a debt carrying value of $ 74.9 million and $ 44.3 million as of December 31, 2024 and 2023, respectively.

At December 31, 2025, this facility was also collateralized by investment grade notes we retained from our BTR CLO 1 securitization with a principal balance of $ 41.0 million.

(5) These amounts exclude outstanding notes payable on our REO assets with a debt carrying value of $ 223.0 million and $ 74.9 million at December 31, 2025 and 2024, respectively.

(6) This facility matured in October 2025 and was not renewed.

(7) This facility matured in December 2025 and was not renewed.

ARBOR REALTY TRUST, INC.

7 unchanged sentences

The interest rate under the facility is determined on a loan-by-loan basis and may include a floor equal to a pro rata share of the floors included in our originated loans.

The facility has an overadvance available of $ 75.0 million that has an interest rate of SOFR plus 6.85 %, which amortizes quarterly through December 2026.

The facility has a maximum advance rate of 80 % on all loans.

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The leverage on our loan and investment portfolio financed through our credit and repurchase facilities, excluding the securities repurchase facility and working capital facility, was 69 % and 67 % at December 31, 2025 and 2024, respectively.

We have a $ 1.00 billion repurchase facility used to finance bridge loans that matures in August 2025, with a one-year extension option.

The facility bears interest at SOFR plus 2.50 %.

We have a $ 1.00 billion repurchase facility to finance SFR loans that has an interest rate ranging from SOFR plus 2.50 % to 3.26 %.

We have a $ 1.22 billion repurchase facility to refinance loans previously held in our CLOs.

This facility has a 24-month reinvestment period through March 2027.

The facility has an interest rate of SOFR plus 1.85 % and matures at the latest maturity date of all purchased assets, which is currently June 2028.

The facility has an overadvance available of $ 25.0 million that has an interest rate of SOFR plus 6.85 %, which amortizes quarterly through December 2026.

Additionally, this facility was approximately 88 % non-recourse to us and had an 80 % advance rate at closing.

We have a $ 1.00 billion repurchase facility, which includes a concentration limit for delinquent loans to remain in the facility for up to two years .

The interest rate on new loans is determined on a loan-by-loan basis.

Permitted delinquent loans have an interest rate of SOFR plus 3.00 % and can comprise up to 10 % of the outstanding facility balance, or up to 15 % at the lender's discretion.

The commitment amount under this facility expires six months after the lender provides written notice.

We then have an additional six months to repurchase the underlying loans.

We have a $ 750.0 million repurchase facility of which $ 500.0 million may be used to finance performing loans and $ 250.0 million may be used to finance non-performing loans that matures in December 2026, with the ability to extend the maturity in one-year increments, subject to lender approval.

The $ 500.0 million portion of the facility has an interest rate of SOFR plus 1.75 %, with a SOFR floor of 0.15 % and will increase to SOFR plus 2.25 %, with a 0.15 % SOFR floor in March 2026.

The $ 250.0 million portion of the facility has an interest rate of SOFR plus 3.25 %, with a SOFR floor of 2.50 %.

We have a $ 650.0 million repurchase facility to finance SFR loans that has an interest rate ranging from SOFR plus 2.46 % to 3.11 %, with a 0.25 % SOFR floor, and matures in October 2025.

We have a $ 400.0 million credit facility to finance performing and non-performing loans that bears interest at SOFR plus 3.25 %, with a SOFR floor of 1.00 %.

The facility matures in March 2027.

We have a $ 350.0 million repurchase facility to finance bridge loans that matures in March 2025, with a one-year extension option.

The interest rate under the facility is determined on a loan-by-loan basis and includes a floor of SOFR plus 2.00 %.

We have a $ 250.0 million repurchase facility to finance multifamily construction loans that matures in September 2027, with the ability to extend the maturity in one-year increments, subject to lender approval.

The facility has an interest rate of SOFR plus 3.25 %, with a SOFR floor of 2.00 %.

We have a $ 250.0 million repurchase facility to finance bridge loans that bears interest ranging from SOFR plus 2.00 % to 2.65 % depending on the duration of time the loan is being financed.

The facility matures in October 2025, with a one-year extension option.

We have a $ 200.0 million repurchase facility to finance bridge and construction loans that has interest rates ranging from SOFR plus 1.75 % to 3.50 % depending on the type of loan financed, with a SOFR floor determined on a loan-by-loan basis.

In January 2025, this facility was increased to $ 400.0 million and the maturity was extended from January 2025 to January 2027, with a one-year extension option.

We have a $ 200.0 million repurchase facility to finance SFR loans that matures in March 2027, with a one-year extension option.

This facility has an interest rate of SOFR plus 2.55 %.

We have a $ 150.0 million credit facility to finance SFR loans that matures in October 2025.

This facility bears interest at SOFR plus 3.00 %, with an all-in floor of 5.50 %.

We have an $ 850.0 million repurchase facility, of which $ 600.0 million may be used to finance performing loans and $ 250.0 million may be used to finance non-performing loans, that matures in December 2026 with a one-year extension option.

The $ 600.0 million portion of the facility has an interest rate of SOFR plus 1.75 %, with a SOFR floor of 0.15 % that increases to SOFR plus 2.25 %, with a 0.15 % SOFR floor after the loan has been in the line for a year.

At December 31, 2025, $ 93.3 million of loans were transferred in from a terminated facility and has a weighted average interest rate of SOFR plus 2.54 % .

The $ 250.0 million portion of the facility has an interest rate of SOFR plus 3.25 %, with a SOFR floor equal to the greater of 2.50 % or the floor of the underlying loan.

We have a $ 650.0 million repurchase facility to finance SFR loans that has an interest rate ranging from SOFR plus 2.36 % to 3.11 %, depending on the type of loan financed, with a 0.25 % SOFR floor, and matures in October 2026.

We have a $ 400.0 million credit facility to finance performing and non-performing loans that has an interest rate of SOFR plus 3.25 %, with a SOFR floor of 1.00 %, and matures in March 2027.

We have a $ 400.0 million repurchase facility to finance bridge and construction loans that has an interest rate ranging from SOFR plus 1.75 % to 3.50 % depending on the type of loan financed, with a SOFR floor determined on a loan-by-loan basis, and matures in January 2027, with a one-year extension option.

We have a $ 350.0 million repurchase facility to finance bridge loans that matures in March 2026.

The interest rate under the facility is determined on a loan-by-loan basis.

We have a $ 250.0 million repurchase facility to finance multifamily construction loans that matures in September 2027, with a one-year extension option.

The facility has an interest rate of SOFR plus 3.25 %, with a SOFR floor equal to the lesser of 2.50 % or the floor of the underlying loan.

We have a $ 250.0 million repurchase facility to finance bridge loans that has an interest rate ranging from SOFR plus 1.45 % to 2.65 % depending on the duration of time the loan is being financed determined on a loan-by-loan basis, and matures in October 2026.

ARBOR REALTY TRUST, INC.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

We have several loan specific credit facilities totaling $ 134.1 million used to finance individual bridge loans.

The facilities bear interest ranging from SOFR plus 1.91 % to 2.40 %, with a SOFR floor up to 2.40 %, and Prime plus 0.85 %, with a Prime floor of 6.15 %.

The facilities mature between June 2025 and August 2027.

We have a $ 40.0 million credit facility used to purchase loans that bears interest at SOFR plus 2.35 % and matures in April 2026, with a one-year extension option.

We have a $ 35.0 million unsecured working capital line of credit that bears interest at SOFR plus 3.00 %.

We have a $ 250.0 million credit facility to finance SFR loans that matures in October 2027.

This facility has an interest rate of SOFR plus 2.50 %, with an all-in floor of 5.00 %.

We have a $ 200.0 million repurchase facility to finance SFR loans with a $ 100.0 million accordion feature that matures in March 2027, with a one-year extension option.

This facility has an interest rate of SOFR plus 2.55 %.

We have loan specific credit facilities totaling $ 63.5 million used to finance individual bridge loans.

The facilities have interest rates ranging from SOFR plus 1.85 % to 2.10 %, with a SOFR floor of 2.20 %.

The facilities mature between July 2026 and August 2027.

We have a $ 40.0 million credit facility used to purchase loans that has an interest rate of SOFR plus 2.35 % and matures in April 2026, with a one-year extension option.

We have a $ 35.0 million unsecured working capital line of credit that has an interest rate of SOFR plus 3.00 %.

This line matures in April 2026 and is typically renewed annually.

We have an uncommitted repurchase facility that is used to finance certificates retained by us from our Q Series securitization and our purchases of B Piece bonds from SBL program securitizations.

This facility bears interest ranging from SOFR plus 1.50 % to 3.50 % and matures in July 2025, with a one-year extension option.

We have an uncommitted repurchase facility that is used to finance certificates retained by us from our Q Series securitization and investment grade notes retained from our BTR CLO 1 securitization.

This facility has an interest rate ranging from SOFR plus 1.20 % to 1.90 % and has no expiration date.

Agency Business.

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We have a $ 750.0 million ASAP agreement with Fannie Mae providing us with a warehousing credit facility for mortgage loans that are to be sold to Fannie Mae and serviced under the Fannie Mae DUS program.

The ASAP agreement is not a committed line, has no expiration date and bears interest at SOFR plus 1.15 %, with a 0.25 % SOFR floor.

We have a $ 500.0 million repurchase facility that bears interest at SOFR plus 1.48 % and matures in November 2025.

We have a $ 200.0 million credit facility that bears interest at SOFR plus 1.40 % and matures in March 2025.

We have a $ 200.0 million credit facility that bears interest at SOFR plus 1.35 % and matures in July 2025.

We have the ability to borrow up to an additional $ 200.0 million under this facility at the lenders discretion determined on a loan-by-loan basis.

This facility includes a $ 37.5 million sublimit for principal and interest advances we make as the primary servicer to Fannie Mae in connection with potential delinquent loans under the Fannie Mae forbearance program, which bears interest at SOFR plus 1.75 %.

We have a $ 50.0 million credit facility that bears interest at SOFR plus 1.35 % and matures in September 2025.

The ASAP agreement is not a committed line, has no expiration date and has an interest rate of SOFR plus 1.15 %, with a 0.25 % SOFR floor.

We have a $ 500.0 million repurchase facility that has an interest rate of SOFR plus 1.43 % and matures in November 2026.

We have a $ 200.0 million credit facility that has an interest rate of SOFR plus 1.40 % and matures in March 2026.

We have a $ 200.0 million credit facility that has an interest rate of SOFR plus 1.35 % and matures in June 2026.

We have the ability to borrow up to an additional $ 200.0 million under this facility at the lender's discretion determined on a loan-by-loan basis.

We have a letter of credit facility to secure obligations under the Fannie Mae DUS program and the Freddie Mac SBL program with a total committed amount of up to $ 75.0 million.

The facility bears interest at a fixed rate of 2.875 %, matures in September 2025, and is primarily collateralized by our servicing revenue as approved by Fannie Mae and Freddie Mac.

The facility has a fixed interest rate of 2.875 %, matures in September 2027, and is primarily collateralized by our servicing revenue as approved by Fannie Mae and Freddie Mac.

The facility includes a $ 5.0 million sublimit for obligations under the Freddie Mac SBL program.

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CLO 20 $ 933,187 $ 924,504 5.50 % $ 1,045,664 $ 1,040,984 $ —

CLO 18 1,335,647 1,332,950 6.47 % 1,684,765 1,684,285 37,090

CLO 17 1,482,657 1,480,495 6.15 % 1,811,391 1,810,463 50,910

BTR CLO 1 525,304 517,395 6.29 % 685,746 683,807 —

CLO 18 (5) 971,595 970,979 6.01 % 1,339,523 1,338,395 21,469

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CLO 14 326,238 326,238 6.11 % 452,751 452,526 —

CLO 14 (5) 589,345 588,176 6.82 % 680,814 679,469 33,271

Total CLOs (5) 4,581,374 4,572,055 6.35 % 5,806,502 5,803,208 88,000

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(1) Debt carrying value is net of $ 17.5 million and $ 9.5 million of deferred financing fees at December 31, 2025 and 2024, respectively.

(2) At December 31, 2024 and 2023, the aggregate weighted average note rate for our CLOs, including certain fees and costs, was 6.59 % and 7.37 %, respectively, and the Q Series securitization was 7.46 % and 7.99 %, respectively.

(3) At December 31, 2024 and 2023, 46 and 12 loans, respectively, with a total UPB of $ 1.60 billion and $ 308.3 million, respectively, were deemed a "credit risk" as defined by the CLO indentures.

(2) At December 31, 2025 and 2024, the aggregate weighted average note rate for our CLOs, including certain fees and costs, was 6.07 % and 6.59 %, respectively, and the Q Series securitization was 7.46 % at December 31, 2024.

(3) At December 31, 2025 and 2024, 39 and 46 loans, respectively, with a total UPB of $ 1.69 billion and $ 1.60 billion, respectively, were deemed a "credit risk" as defined by the CLO indentures.

A credit risk asset is generally defined as one that, in the CLO collateral manager's reasonable business judgment, has a significant risk of becoming a defaulted asset.

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Does not include restricted cash related to interest payments, delayed fundings and expenses totaling $ 10.1 million and $ 43.4 million at December 31, 2025 and 2024, respectively.

(5) The replenishment period for all CLOs has ended:

CLO 14 - September 2023, CLO 15 – December 2023, CLO 16 – March 2024, CLO 19 – May 2024, CLO 17 – June 2024, and CLO 18 – August 2024.

In 2022, we completed CLO 19, issuing nine tranches of CLO notes through a wholly owned subsidiary totaling $ 1.05 billion.

Of the total CLO notes issued, $ 872.8 million were investment grade notes issued to third party investors and $ 177.2 million were below investment grade notes retained by us.

As of the CLO closing date, the notes were secured by a portfolio of loan obligations with a face value of $ 976.9 million, consisting primarily of bridge loans that were contributed from our existing loan portfolio, and cash.

The financing had an approximate two-year replacement period that allowed the principal proceeds and sale proceeds (if any) of the loan obligations to be reinvested in qualifying replacement loan obligations, subject to the satisfaction of certain conditions set forth in the indenture.

Thereafter, the outstanding debt balance is being reduced as loans are repaid.

Initially, the proceeds of the issuance of the securities also included $ 73.1 million for the purpose of acquiring additional loan obligations for a period of up to 180 days from the CLO closing date, which we subsequently utilized, resulting in the issuer owning loan obligations with a face value of $ 1.05 billion, representing leverage of 83 %.

The notes sold to third parties had an initial weighted average interest rate of 2.36 % plus term SOFR and interest payments on the notes are payable monthly.

In 2022, we completed CLO 18, issuing eight tranches of CLO notes through two wholly owned subsidiaries totaling $ 1.86 billion.

Of the total CLO notes issued, $ 1.65 billion were investment grade notes issued to third party investors and $ 210.1 million were

(5) The replenishment period for the following CLOs has ended:

CLO 14 - September 2023, CLO 16 – March 2024, CLO 19 – May 2024, CLO 17 – June 2024, and CLO 18 – August 2024.

(6) All third-party amounts have been paid down and only our tranches remain.

In August 2025, we completed CLO 20, through a wholly owned subsidiary, issuing nine tranches of CLO notes totaling $ 1.05 billion.

Of the total CLO notes issued, $ 933.2 million consisted of investment grade notes issued to third-party investors.

The remaining $ 116.8 million were below investment grade notes retained by us.

As of the CLO closing date, the notes were secured by a portfolio of real estate related assets and cash with a face value of $ 926.8 million, with the real estate related assets primarily comprised of first-lien mortgage bridge loans contributed from our existing loan portfolio.

The CLO has an approximate two and a half year replacement period, during which principal and sale proceeds from the underlying loans may be reinvested into qualifying replacement loan obligations, subject to conditions outlined in the indenture.

Thereafter, the outstanding debt balance will decrease as loans are repaid.

Initially, the proceeds of the issuance also included $ 123.2 million for the purpose of acquiring additional loan obligations within 180 days from the CLO closing date, which we subsequently utilized, resulting in the issuer owning loan obligations with a face value of $ 1.05 billion, representing leverage of 89 %.

The notes sold to third parties had an initial weighted average interest rate of 1.82 % plus term SOFR, with interest payable monthly.

In May 2025, we completed BTR CLO 1, through a wholly owned subsidiary, issuing 11 tranches of CLO notes totaling $ 801.9 million.

Of the total CLO notes issued, $ 682.6 million consisted of investment grade notes, $ 41.0 million of which were retained by us (including $ 31.8 million we financed), with the remainder issued to third-party investors.

The remaining $ 119.3 million were below investment grade notes and fully retained by us.

As of the CLO closing date, the notes were secured by a portfolio of real estate related

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

below investment grade notes retained by us.

As of the CLO closing date, the notes were secured by a portfolio of loan obligations with a face value of $ 1.70 billion, consisting primarily of bridge loans that were contributed from our existing loan portfolio, and cash.

The financing had an approximate two-and-a-half-year replacement period that allowed the principal proceeds and sale proceeds (if any) of the loan obligations to be reinvested in qualifying replacement loan obligations, subject to the satisfaction of certain conditions set forth in the indenture.

Thereafter, the outstanding debt balance is being reduced as loans are repaid.

Initially, the proceeds of the issuance of the securities also included $ 347.3 million for the purpose of acquiring additional loan obligations for a period of up to 180 days from the CLO closing date, which we subsequently utilized, resulting in the issuer owning loan obligations with a face value of $ 2.05 billion, representing leverage of 81 %.

We retained a residual interest in the portfolio with a notional amount of $ 397.2 million, including the $ 210.1 million below investment grade notes.

The notes sold to third parties had an initial weighted average interest rate of 1.81 % plus compounded SOFR and interest payments on the notes are payable monthly.

assets and cash with a face value of $ 583.6 million, with the real estate related assets primarily comprised of first-lien mortgage construction and bridge loans secured by build-to-rent properties contributed from our existing loan portfolio.

The CLO has an approximate two-year replacement period, during which principal and sale proceeds from the underlying loans may be reinvested into qualifying replacement loan obligations, subject to conditions outlined in the indenture.

The CLO also includes a $ 200.0 million senior revolving note, which may be used to fund construction draws, acquire collateral at closing, or purchase replacement assets during the replacement period, of which $ 83.9 million had been drawn at December 31, 2025.

Thereafter, the outstanding debt balance will decrease as loans are repaid.

Initially, the proceeds of the issuance also included $ 50.0 million for the purpose of acquiring additional loan obligations within 180 days from the CLO closing date, which we subsequently utilized, resulting in the issuer owning loan obligations with a face value of $ 801.9 million, representing leverage of 80 %, or 84 % after factoring in the financed portion of our retained investment grade notes.

The notes sold to third parties had an initial weighted average interest rate of 2.48 % plus term SOFR, with interest payable monthly.

In 2022, we completed CLO 18, issuing eight tranches of CLO notes through two wholly owned subsidiaries totaling $ 1.86 billion.

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We retained a residual interest in the portfolio with a notional amount of $ 397.2 million, including the $ 210.1 million below investment grade notes.

The notes sold to third parties had an initial weighted average interest rate of 1.68 % plus one-month LIBOR and interest payments on the notes are payable monthly.

The notes sold to third parties had an initial weighted average interest rate of 1.81 % plus compounded SOFR and interest payments on the notes are payable monthly.

In 2021, we completed CLO 17, issuing eight tranches of CLO notes through two wholly owned subsidiaries totaling $ 1.91 billion.

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The notes sold to third parties had an initial weighted average interest rate of 1.68 % plus one-month LIBOR and interest payments on the notes are payable monthly.

In 2021, we completed CLO 14, issuing eight tranches of CLO notes through two wholly owned subsidiaries totaling $ 724.2 million.

Of the total CLO notes issued, $ 655.5 million were investment grade notes issued to third party investors and $ 68.7 million were below investment grade notes retained by us.

As of the CLO closing date, the notes were secured by a portfolio of loan obligations with a face value of $ 635.2 million, consisting primarily of bridge loans that were contributed from our existing loan portfolio, and cash.

The financing had a two-and-a-half-year replacement period that allowed the principal proceeds and sale proceeds (if any) of the loan obligations to be reinvested in qualifying replacement loan obligations, subject to the satisfaction of certain conditions set forth in the indenture.

Thereafter, the outstanding debt balance is being reduced as loans are repaid.

Initially, the proceeds of the issuance of the securities also included $ 149.8 million for the purpose of acquiring additional loan obligations for a period of up to 180 days from the CLO closing date, which we subsequently utilized, resulting in the issuer owning loan obligations with a face value of $ 785.0 million, representing leverage of 84 %.

We retained a residual interest in the portfolio with a notional amount of $ 129.5 million, including the $ 68.7 million below investment grade notes.

The notes sold to third parties had an initial weighted average interest rate of 1.33 % plus one-month LIBOR and interest payments on the notes are payable monthly.

In June 2024, we unwound CLO 15, redeeming the remaining outstanding notes totaling $ 674.4 million, which were paid primarily from the refinancing of the remaining assets within our other CLO vehicles and credit and repurchase facilities.

CLO 13 and 12.

In June 2023 and August 2023, we unwound CLO 13 and 12, respectively, redeeming the remaining outstanding notes, which were repaid primarily from the refinancing of the remaining assets within our other CLO vehicles and credit and repurchase facilities.

We expensed $ 1.5 million of deferred financing fees in 2023 related to the unwind of these CLOs, into loss on extinguishment of debt on the consolidated statements of income.

In October 2025, we unwound CLO 16, redeeming the remaining outstanding notes totaling $ 482.1 million, which were repaid from the availability in our credit and repurchase facilities.

We expensed $ 0.6 million of deferred financing fees related to the unwind of this CLO, into loss on extinguishment of debt on the consolidated statements of income.

CLO 19 and CLO 14.

In March 2025, we unwound CLO 19 and 14, redeeming the remaining outstanding notes totaling $ 1.08 billion, which were repaid from a new $ 1.22 billion repurchase facility.

We expensed $ 2.3 million of deferred financing fees related to the unwind of these CLOs, into loss on extinguishment of debt on the consolidated statements of income.

In 2024, we unwound CLO 15, redeeming the remaining outstanding notes totaling $ 674.4 million, which were paid primarily from the refinancing of the remaining assets within our other CLO vehicles and credit and repurchase facilities.

We expensed $ 0.4 million of deferred financing fees related to the unwind of this CLO, into loss on extinguishment of debt on the consolidated statements of income.

Freddie Mac Q Series Securitization.

In 2022, we completed a Q Series securitization, by which we sold to Freddie Mac 11 floating rate loans totaling $ 315.8 million that are secured by first priority mortgage liens on 21 multifamily properties that qualify as mission-driven under the Federal Housing Finance Agency guidelines.

The Q Series securitization is represented through a series of pass-through certificates (the “Certificates”) issued under a pooling and servicing agreement.

We retained certain subordinate and interest-only classes of the Certificates totaling $ 79.0 million and the remaining Certificates totaling $ 236.9 million were purchased by third-party investors, representing leverage of 75 %.

The Certificates sold to third parties paid interest at 2.00 % plus SOFR, excluding fees and transaction costs,

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

Freddie Mac Q Series Securitization.

In December 2022, we completed a Q Series securitization, by which we sold to Freddie Mac 11 floating rate loans totaling $ 315.8 million that are secured by first priority mortgage liens on 21 multifamily properties that qualify as mission-driven under the Federal Housing Finance Agency guidelines.

The Q Series securitization is represented through a series of pass-through certificates (the “Certificates”) issued under a pooling and servicing agreement.

We retained certain subordinate and interest-only classes of the Certificates aggregating $ 79.0 million and the remaining Certificates totaling $ 236.9 million were purchased by third party investors, representing leverage of 75 %.

The Certificates sold to third parties pay interest at 2.00 % plus SOFR, excluding fees and transaction costs, and are payable monthly.

Securitization Paydowns.

During 2024, outstanding notes totaling $ 896.5 million on our CLOs and $ 58.1 million on the Q Series securitization have been paid down.

until they were fully paid off in the third quarter of 2025.

As part of the securitization transaction, we released all mortgage servicing obligations and rights to Freddie Mac who was designated as the master servicer.

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In addition, the special servicer must receive our consent prior to certain decisions with respect to a specially serviced mortgage loan.

Securitization Paydowns.

During 2025, outstanding notes totaling $ 841.7 million on our existing CLOs and Q Series securitization have been paid down.

Senior Unsecured Notes

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2026 175,000 174,790 5.00 % 175,000 174,161 5.00 %

4.50 % Notes (3)

2027 275,000 274,412 4.50 % 275,000 273,927 4.50 %

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We have the right to redeem the notes within three months prior to the maturity date at a redemption price equal to 100 % of the aggregate principal amount, plus accrued and unpaid interest.

(4) These notes can be redeemed by us prior to six months before the maturity date, at a redemption price equal to 100 % of the aggregate principal amount, plus a “make-whole” premium and accrued and unpaid interest.

We have the right to redeem the notes within six months prior to the maturity date at a redemption price equal to 100 % of the aggregate principal amount, plus accrued and unpaid interest.

Except as noted below, we used the proceeds of our senior unsecured debt offerings to make investments and for general corporate purposes.

In October 2024, we issued $ 100.0 million aggregate principal amount of 9.00 % senior unsecured notes due October 2027 in a private offering.

In December 2025, we issued $ 400.0 million aggregate principal amount of 8.50 % senior unsecured notes due December 2028 in a private offering.

We received proceeds of $ 394.9 million from the issuance, after deducting the underwriting discount and other offering expenses.

We used the proceeds to pay down debt and for general corporate purposes.

In March 2023, we issued $ 95.0 million aggregate principal amount of 7.75 % senior unsecured notes due in 2026 in a private offering.

We received proceeds of $ 93.4 million from the issuance, after deducting the placement agent commission and other offering expenses.

We used $ 70.8 million of the proceeds, which included accrued interest and other fees, to repurchase the remaining portion of our 8.00 % senior unsecured notes due in 2023.

We used a portion of the proceeds to repay our remaining outstanding 7.75 % senior notes due March 2026 and will use a portion of the remaining proceeds to repay our 5.00 % senior notes due April 2026.

In July 2025, we issued $ 500.0 million aggregate principal amount of 7.875 % senior unsecured notes due July 2030 in a private offering.

We received proceeds of $ 490.5 million from the issuance, after deducting the underwriting discount and other offering expenses.

We used a portion of the net proceeds to repay our 7.50 % convertible notes due August 2025.

In 2024, we issued $ 100.0 million aggregate principal amount of 9.00 % senior unsecured notes due in 2027 in a private offering.

We received proceeds of $ 98.4 million from the issuance, after deducting the underwriting discount and other offering expenses.

We used a portion of the proceeds to pay down debt.

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In 2023, we issued $ 95.0 million aggregate principal amount of 7.75 % senior unsecured notes due in 2026 in a private offering.

We received proceeds of $ 93.4 million from the issuance, after deducting the placement agent commission and other offering expenses.

We used $ 70.8 million of the proceeds, which included accrued interest and other fees, to repurchase the remaining portion of our 8.00 % senior notes due in 2023.

In December 2025, our 7.75 % senior notes were fully settled with a portion of the proceeds received from our 8.50 % senior notes issuance.

In 2022, we issued $ 150.0 million aggregate principal amount of 8.50 % senior unsecured notes due in 2027 in a private offering.

We received proceeds of $ 147.5 million from the issuance, after deducting the underwriting discount and other offering expenses.

We used $ 47.5 million of the proceeds, which included accrued interest and other fees, to repurchase a portion of our 5.625 % senior unsecured notes.

We used $ 47.5 million of the proceeds, which included accrued interest and other fees, to repurchase a portion of our 5.625 % senior notes.

In 2021, we issued $ 180.0 million aggregate principal amount of 5.00 % senior unsecured notes due in 2028 in a private offering.

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We received proceeds of $ 172.3 million from the issuance, after deducting the underwriting discount and other offering expenses.

In 2020, we issued $ 275.0 million aggregate principal amount of 4.50 % senior unsecured notes due in March 2027 in a private offering.

In 2020, we issued $ 275.0 million aggregate principal amount of 4.50 % senior unsecured notes due in 2027 in a private offering.

We received proceeds of $ 271.8 million from the issuance, after deducting the underwriting discount and other offering expenses.

We used a significant portion of the proceeds to repay secured indebtedness.

The following senior unsecured notes matured during 2023 and 2024:

• in April 2023, we redeemed our 8.00 % notes totaling $ 70.8 million;

• in May 2023, we redeemed the remaining $ 78.8 million of our 5.625 % notes;

• in April 2024, we redeemed our 5.75 % notes totaling $ 90.0 million;

• in October 2024, we redeemed our 4.75 % notes totaling $ 110.0 million.

During 2024, we redeemed both our 5.75 % senior notes totaling $ 90.0 million and 4.75 % senior notes totaling $ 110.0 million at maturity.

Convertible Senior Unsecured Notes

In 2022, we issued $ 287.5 million in aggregate principal amount of 7.50 % convertible senior notes (the “ 7.50 % Convertible Notes”) through a private placement offering.

We received proceeds of $ 279.3 million, net of discounts and fees.

The 7.50 % Convertible Notes pay interest semiannually in arrears and are scheduled to mature in August 2025, unless earlier converted or repurchased by the holders pursuant to their terms.

The initial conversion rate was 59.8480 shares of common stock per $1,000 of principal representing a conversion price of $ 16.71 per share of common stock.

At December 31, 2024, the 7.50 % Convertible Notes had a conversion rate of 61.0757 shares of common stock per $1,000 of principal, which represented a conversion price of $ 16.37 per share of common stock.

We used $ 203.1 million of the net proceeds from our 7.50 % Convertible Notes to repurchase a portion of our 4.75 % convertible senior notes and expensed $ 3.3 million of deferred financing fees into loss on extinguishment of debt on the consolidated statements of income.

The remaining $ 66.1 million of our 4.75 % convertible notes were redeemed at maturity in 2022.

Our convertible senior unsecured notes are not redeemable by us prior to their maturities and are convertible by the holder into, at our election, cash, shares of our common stock or a combination of both, subject to the satisfaction of certain conditions and during specified periods.

The conversion rates are subject to adjustment upon the occurrence of certain specified events and the holders may require us to repurchase all, or any portion, of their notes for cash equal to 100 % of the principal amount, plus accrued and unpaid interest, if we undergo a fundamental change specified in the agreements.

The UPB and net carrying value of our convertible notes are as follows (in thousands):

Period UPB Unamortized Deferred

Financing Fees Net Carrying

December 31, 2024 $ 287,500 $ 1,647 $ 285,853

December 31, 2023 $ 287,500 $ 4,382 $ 283,118

In 2022, we issued $ 287.5 million in aggregate principal amount of 7.50 % convertible senior notes through a private placement offering.

In August 2025, our 7.50 % convertible notes matured, and were fully repaid with a portion of the net proceeds received from our 7.875 % senior unsecured notes issued in July 2025.

The UPB and net carrying value of our convertible notes at December 31, 2024 were as follows ($ in thousands):

UPB Unamortized Deferred Financing Fees Net Carrying Value

$ 287,500 $ 1,647 $ 285,853

During 2025, we incurred interest expense on the convertible notes totaling $ 14.2 million, of which $ 12.6 million and $ 1.6 million related to the cash coupon and deferred financing fees, respectively.

During 2024, we incurred interest expense on the notes totaling $ 24.3 million, of which $ 21.5 million and $ 2.8 million related to the cash coupon and deferred financing fees, respectively.

During 2022, we incurred interest expense on the notes totaling $ 19.8 million, of which $ 16.9 million and $ 2.9 million related to the cash coupon and

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deferred financing fees, respectively.

Including the amortization of the deferred financing fees, our weighted average total cost of the convertible notes was 8.43 % and 8.42 % at December 31, 2024 and 2023, respectively.

During 2023, we incurred interest expense on the notes totaling $ 24.8 million, of which $ 22.1 million and $ 2.7 million related to the cash coupon and deferred financing fees, respectively.

Including the amortization of the deferred financing fees, our weighted average total cost of the convertible notes was 8.43 % at December 31, 2024.

Junior Subordinated Notes

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Credit and Repurchase Facilities and Unsecured Debt.

The credit and repurchase facilities and unsecured debt (senior and convertible notes) contain various financial covenants, including, but not limited to, minimum liquidity requirements, minimum net worth requirements, minimum unencumbered asset requirements, as well as certain other debt service coverage ratios, debt to equity ratios and minimum servicing portfolio tests.

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requirements, minimum unencumbered asset requirements, as well as certain other debt service coverage ratios, debt to equity ratios and minimum servicing portfolio tests.

We were in compliance with all financial covenants and restrictions at December 31, 2025.

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In the event of a breach of the CLO covenants that could not be cured in the near-term, we would be required to fund our non-CLO expenses, including employee costs, distributions required to maintain our REIT status, debt costs, and other expenses with (1) cash on hand, (2) income from any CLO not in breach of a covenant test, (3) income from real property and loan assets, (4) sale of assets, or (5) accessing the equity or debt capital markets, if available.

We have the right to cure covenant breaches which would resume normal residual payments to us by purchasing loans out of the CLOs.

We have the right to cure covenant breaches which would resume normal residual payments to us by purchasing non-performing loans out of the CLOs.

However, we may not have sufficient liquidity available to do so at such time.

Our CLO compliance tests as of the most recent determination dates in January 2026 are as follows:

Cash Flow Triggers CLO 14 CLO 16 CLO 17 CLO 18 CLO 19

Cash Flow Triggers CLO 17 CLO 18 BTR CLO 1 CLO 20

Overcollateralization (1)

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Limit 121.51 % 123.03 % 115.47 % 110.52 %

Pass / Fail Pass Pass Pass Pass Pass

Pass / Fail Pass Pass Pass Pass

Interest Coverage (2)

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Limit 120.00 % 120.00 % 120.00 % 120.00 %

Pass / Fail Pass Pass Pass Pass Pass

Pass / Fail Pass Pass Pass Pass

________________________________________

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(2) The interest coverage ratio divides interest income by interest expense for the classes senior to those retained by us.

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Our CLO overcollateralization ratios as of the determination dates subsequent to each quarter are as follows:

Determination (1) CLO 14 CLO 16 CLO 17 CLO 18 CLO 19

Determination (1) CLO 17 CLO 18 BTR CLO 1 CLO 20

January 2026 127.77 % 136.54 % 117.47 % 112.52 %

October 2025 127.02 % 131.38 % 117.47 % 112.52 %

July 2024 132.91 % 127.64 % 121.78 % 123.67 % 119.98 %

April 2024 125.22 % 120.81 % 121.71 % 123.87 % 119.30 %

January 2024 120.00 % 120.81 % 121.71 % 123.87 % 120.30 %

July 2025 124.46 % 130.03 % 117.47 % N/A

April 2025 122.65 % 127.91 % N/A N/A

January 2025 122.10 % 123.89 % N/A N/A

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The junior subordinated indentures are also cross-defaulted with each other.

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Note 12 — Allowance for Loss-Sharing Obligations

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Beginning balance $ 83,150 $ 71,634

Provisions for loss sharing 13,319 17,864

Provisions reversal for loan repayments ( 764 ) ( 2,169 )

Recoveries (charge-offs), net ( 1,039 ) ( 1,229 )

Provision for loss sharing (net of reversals) 24,259 12,555

Charge-offs, net ( 9,830 ) ( 1,039 )

Ending balance $ 97,579 $ 83,150

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At December 31, 2025 and 2024, our allowance for loss-sharing obligations, associated with expected losses under CECL, was $ 61.9 million and $ 48.3 million, respectively, and represented 0.26 % and 0.21 %, respectively, of our Fannie Mae servicing portfolio.

During 2024, we recorded a $ 11.6 million increase in CECL reserves.

During 2025 and 2024, we recorded an increase in CECL reserves of $ 13.6 million and $ 11.6 million, respectively.

At December 31, 2025 and 2024, the maximum quantifiable liability associated with our guarantees under the Fannie Mae DUS agreement was $ 4.60 billion and $ 4.30 billion, respectively.

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We would be liable for this amount only if all of the loans we service for Fannie Mae, for which we retain some risk of loss, were to default and all of the collateral underlying these loans was determined to be without value at the time of settlement.

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Note 13 — Derivative Financial Instruments

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Sale commitments with the investors have an expiration date that is longer than our related commitments to the borrower to allow, among other things, for closing of the loan and processing of paperwork to deliver the loan into the sale commitment.

These commitments meet the definition of a derivative and are recorded at fair value, including the effects of interest rate movements which are reflected as a component of (loss) gain on derivative instruments, net in the consolidated statements of income.

The estimated fair value of rate lock commitments also includes the fair value of the expected net cash flows associated with the servicing of the loan which is recorded as income from MSRs in the consolidated statements of income.

During 2024, 2023 and 2022, we recorded net losses of $ 3.7 million, net gains of of $ 8.8 million and net losses of $ 3.6 million, respectively, from changes in the fair value of these derivatives and $ 51.3 million, $ 69.9 million and $ 69.3 million, respectively, of income from MSRs.

These commitments meet the definition of a derivative and are recorded at fair value, including the effects of interest rate movements which are reflected as a component of gain (loss) on derivative instruments, net in the consolidated statements of income.

The estimated fair value of rate lock commitments also includes the fair value of the expected net cash flows associated with the servicing of the loan

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which is recorded as income from MSRs in the consolidated statements of income.

During 2025, 2024 and 2023, we recorded net gains of $ 3.1 million, net losses of $ 3.7 million and net gains of $ 8.8 million, respectively, from changes in the fair value of these derivatives and $ 54.5 million, $ 51.3 million and $ 69.9 million, respectively, of income from MSRs.

See Note 14 for details.

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Our policy is to record the asset and liability positions on a net basis.

At December 31, 2024 and 2023, we had $ 2.3 million and $ 1.5 million, respectively, included in others assets, which was comprised of cash posted as collateral of $ 2.0 million and $ 1.9 million, respectively, and net liability positions of $ 0.3 million and $ 0.4 million, respectively, from the fair value of our treasury futures.

During 2024, 2023 and 2022, we recorded realized and unrealized gains of $ 0.1 million and $ 0.6 million, realized gains and unrealized losses of $ 1.6 million and $ 3.7 million, and realized and unrealized gains of $ 26.9 million and $ 3.5 million, respectively, to our Agency Business.

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At December 31, 2025 and 2024, we had $ 1.6 million and $ 2.3 million, respectively, included in others assets, which was comprised of cash posted as collateral of $ 1.6 million and $ 2.0 million, respectively, and net liability positions of less than $ 0.1 million and $ 0.3 million, respectively, from the fair value of our treasury futures.

During 2025, 2024 and 2023, we recorded realized and unrealized losses of $ 1.6 million and $ 0.3 million, realized and unrealized gains of $ 0.1 million and $ 0.6 million, and realized gains and unrealized losses of $ 1.6 million and $ 3.7 million, respectively, to our Agency Business.

A summary of our non-qualifying derivative financial instruments in our Agency Business is as follows ($ in thousands):

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Derivative Count Notional Value Balance Sheet Location Derivative Assets Derivative Liabilities

Rate lock commitments 4 $ 29,621 Other assets/other liabilities $ 473 $ ( 66 )

Forward sale commitments 32 357,432 Other assets/other liabilities 112 ( 1,016 )

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December 31, 2024

Rate lock commitments 3 $ 26,800 Other assets/other liabilities $ 428 $ ( 759 )

Forward sale commitments 44 $ 396,024 Other assets/other liabilities $ 95 $ ( 4,209 )

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$ 404,224 $ 95 $ ( 4,209 )

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Note 14 — Fair Value

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Junior subordinated notes 154,336 145,497 111,992 154,336 144,686 109,099

Mortgage notes payable - real estate owned 74,897 74,897 74,495 44,339 44,339 44,103

Notes payable - real estate owned 222,965 222,965 221,893 74,897 74,897 74,495

Derivative financial instruments 292,734 1,082 1,082 354,300 4,209 4,209

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Level 1 —Inputs are unadjusted and quoted prices exist in active markets for identical assets or liabilities, such as government, agency and equity securities.

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Level 2—Inputs (other than quoted prices included in Level 1) are observable for the asset or liability through correlation with market data.

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Loans held-for-sale, net.

Consists of originated loans that are generally expected to be transferred or sold within 60 days to 180 days of loan funding, and are valued using pricing models that incorporate observable inputs from current market assumptions or a hypothetical securitization model utilizing observable market data from recent securitization spreads and observable pricing of loans with similar characteristics (Level 2).

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securitization model utilizing observable market data from recent securitization spreads and observable pricing of loans with similar characteristics (Level 2).

Fair value includes the fair value allocated to the associated future MSRs and is calculated pursuant to the valuation techniques described below for capitalized mortgage servicing rights, net (Level 3).

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We also consider the impact of counterparty non-performance risk when measuring the fair value of these derivatives.

Credit facilities, repurchase facilities, and mortgage notes payable.

Fair values for credit and repurchase facilities and mortgage notes payable of the Structured Business are estimated using discounted cash flow methodology, using discount rates, which, in our opinion, best reflect current market interest rates for financing with similar characteristics and credit quality (Level 3).

Credit facilities, repurchase facilities, and notes payable - real estate owned.

Fair values for credit and repurchase facilities and notes payable - real estate owned of the Structured Business are estimated using discounted cash flow methodology, using discount rates, which, in our opinion, best reflect current market interest rates for financing with similar characteristics and credit quality (Level 3).

The majority of our credit and repurchase facilities for the Agency Business bear interest at rates that are similar to those available in the market currently and fair values are estimated using Level 2 inputs.

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Fair values are estimated using current market quotes received from inactive markets (Level 2).

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We measure certain financial assets and financial liabilities at fair value on a recurring basis.

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Derivative financial instruments $ 1,082 $ 1,082 $ — $ 1,082 $ —

ARBOR REALTY TRUST, INC.

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

We measure certain financial and non-financial assets at fair value on a nonrecurring basis.

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________________________________________

(1) We had an allowance for credit losses of $ 143.7 million relating to twenty-seven impaired loans with an aggregate carrying value, before loan loss reserves, of $ 589.0 million at December 31, 2024.

(1) We had an allowance for credit losses of $ 43.1 million relating to 20 impaired loans with an aggregate carrying value, before loan loss reserves, of $ 382.2 million at December 31, 2025.

The fair values of these impaired loans are based on the value of the underlying collateral.

(2) We have an impairment of $ 1.4 million related to four loans held-for-sale with an aggregate carrying value, before unrealized impairment losses, of $ 14.6 million.

(2) We have an impairment of $ 1.0 million related to three loans held-for-sale with an aggregate carrying value, before unrealized impairment losses, of $ 14.0 million.

Loan impairment assessments.

Loans held for investment are intended to be held to maturity and, accordingly, are carried at cost, net of unamortized loan origination costs and fees, loan purchase discounts, and net of the allowance for credit losses, when such loan or investment is deemed to be impaired.

Loans held-for-investment are intended to be held to maturity and, accordingly, are carried at cost, net of unamortized loan origination costs and fees, loan purchase discounts, and net of allowance for credit losses, when such loan or investment is deemed to be impaired.

We consider a loan impaired when, based upon current information, it is probable that all amounts due for both principal and interest will not be collected according to the contractual terms of the loan agreement.

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The tables above and below include all impaired loans, regardless of the period in which the impairment was recognized.

ARBOR REALTY TRUST, INC.

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

Quantitative information about Level 3 fair value measurements at December 31, 2025 is as follows ($ in thousands):

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Multifamily $ 302,297 Discounted cash flows Capitalization rate 5.92 % 5.50 % - 7.00 %

Land $ 49,999 Discounted cash flows Discount rate 21.50 % 21.50 %

Revenue growth rate 3.00 % 3.00 %

22,851 Price quotes N/A N/A N/A

Retail $ 13,952 Sales comparative Price per acre $ 165 $ 165

Derivative financial instruments:

Rate lock commitments $ 473 Discounted cash flows W/A discount rate 13.87 % 13.87 %

ARBOR REALTY TRUST, INC.

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

The derivative financial instruments using Level 3 inputs are outstanding for short periods of time (generally less than 60 days).

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Principal Amount Fair Value of

Servicing Rights Interest Rate

Movement Effect Unrealized

Servicing Rights Unrealized

Impairment Loss Total Fair Value

Rate lock commitments $ 29,621 $ 473 $ — $ 473

Forward sale commitments 357,432 — — —

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(1) Loans held-for-sale, net are recorded at the lower of cost or market on an aggregate basis and includes fair value adjustments related to estimated cash flows from MSRs.

ARBOR REALTY TRUST, INC.

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

We measure certain assets and liabilities for which fair value is only disclosed.

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Senior unsecured notes 2,029,078 2,009,938 2,009,938 — —

Convertible senior unsecured notes, net 285,853 287,500 — 287,500 —

Junior subordinated notes 145,497 111,992 — — 111,992

Notes payable - real estate owned 222,965 221,893 — — 221,893

Note 15 — Commitments and Contingencies

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We must make certain representations and warranties concerning each loan we originate for the GSE or HUD programs.

The representations and warranties relate to our practices in the origination and servicing of the loans and the accuracy of the information being provided by us.

The representations and warranties relate to our practices in the origination and servicing of the loans, the accuracy of the information being provided by us and the conformity of the loans to the terms and conditions required by the GSEs and HUD.

In the event of a breach of any representation or warranty, the GSEs or HUD could require us to repurchase a loan, even if the loan is not in default.

Our obligation to repurchase the loan is independent of our risk-sharing obligations.

ARBOR REALTY TRUST, INC.

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

Our Agency Business is subject to supervision by certain regulatory agencies.

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We are also subject to capital requirements on an annual basis for Ginnie Mae and FHA, and we believe we have met all requirements at December 31, 2025.

ARBOR REALTY TRUST, INC.

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

As an approved designated seller/servicer under Freddie Mac’s SBL program, we are required to post collateral to ensure that we are able to meet certain purchase and loss obligations required by this program.

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Total $ 11,074,794 $ 58,956 $ 11,133,750

At December 31, 2024 and 2023, our leases had remaining lease terms of 2.1 – 9.2 years and 0.8 – 10.1 years, respectively, with a weighted average remaining lease term of 6.8 years and 7.6 years, respectively, and a weighted average discount rate of 5.8 % and 5.7 %, respectively.

At December 31, 2025 and 2024, our leases had remaining lease terms of 1.2 to 8.3 years and 2.1 to 9.2 years, respectively, with a weighted average remaining lease term of 6.0 years and 6.8 years, respectively, and a weighted average discount rate of 5.8 % in both periods.

We recorded lease expense of $ 11.0 million, $ 10.9 million and $ 10.9 million during 2025, 2024 and 2023, respectively.

ARBOR REALTY TRUST, INC.

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

Unfunded Commitments.

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From time to time, we may become involved in legal proceedings arising in the ordinary course of our business.

Except as set forth below under “Securities Class Action,” we are not currently a party to any material legal proceedings, and we are not aware of any pending or threatened legal proceeding against us that we believe could have an adverse effect on our business, operating results or financial condition.

Because the results of legal proceedings is inherently unpredictable and uncertain, we are currently unable to predict whether it will have a material adverse effect on our business, financial condition or results of operations.

Except as set forth below under “Securities Class Action,” and "Derivative Actions," we are not currently a party to any material legal proceedings, and we are not aware of any pending or threatened legal proceeding against us that we believe could have an adverse effect on our business, operating results or financial condition.

Because the results of legal proceedings are inherently unpredictable and uncertain, we are currently unable to predict whether it will have a material adverse effect on our business, financial condition or results of operations.

Securities Class Action

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The plaintiffs are seeking damages in an unspecified amount, as well as attorneys’ fees and costs.

On April 10, 2025, we served a motion to dismiss the case, which remains pending.

We believe that the allegations in the lawsuit are without merit, and we intend to vigorously defend against the claims.

At this time, we are unable to determine whether an unfavorable outcome is probable or to estimate reasonably possible losses.

Extended Stay Litigation

This litigation was settled and discontinued in 2023.

Derivative Actions

On February 26, 2025, a purported shareholder filed a verified shareholder derivative suit in the United States District Court for the District of Maryland, derivatively and on behalf of the Company, against certain officers and directors of the Board of Directors, asserting claims for breach of fiduciary duties, unjust enrichment, abuse of control, gross mismanagement, waste of corporate assets, violations of Section 14(a) of the Exchange Act, and contribution under the Exchange Act, arising from substantially the same facts and events as alleged in the above-mentioned Securities Class Action.

The complaint seeks unspecified damages, costs and expenses, as well as other relief.

On March 17, 2025, another purported shareholder filed a substantially similar verified shareholder derivative complaint, and the derivative actions were consolidated as In re Arbor Realty Trust, Inc.

Stockholder Derivative Litigation, No.

1:25-cv-00639 .

On April 28, 2025, the Court entered a joint stipulation and order to stay the action pending resolution of the motion to dismiss in the Securities Class Action.

The consolidated case is in the early stages.

On April 18, 2025, another purported shareholder filed a substantially similar verified shareholder derivative complaint in the District Court for the Eastern District of New York.

On May 20, 2025, the Court entered a joint stipulation and order to stay the action pending resolution of the motion to dismiss in the Securities Class Action.

This case is also in the early stages.

On July 18, 2025, a purported shareholder filed a verified shareholder derivative complaint in the Circuit Court for Baltimore City, Maryland, derivatively and on behalf of the Company, against certain officers and directors of the Board of Directors, asserting demand refusal and a claim for breach of fiduciary duty.

On September 15, 2025, the Court entered a joint stipulation and order to stay the action pending resolution of the motion to dismiss in the Securities Class Action.

This case is also in the early stages.

On July 29, 2025, two purported shareholders filed a verified shareholder derivative complaint in the United States District Court for the Eastern District of New York, derivatively and on behalf of the Company, against certain officers and directors of the Board of Directors, asserting demand refusal and claims for violation of Section 14(a) of the Exchange Act, breach of fiduciary duty and unjust enrichment.

On October 23, 2025, the Court granted a joint motion to change venue and transferred the action to the United States District Court for the District of Maryland.

This case is also in the early stages.

On August 5, 2025, a purported shareholder filed a verified shareholder derivative complaint in the United States District Court for the Eastern District of New York, derivatively and on behalf of the Company, against certain officers and directors of the Board of

ARBOR REALTY TRUST, INC.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

In June 2011, three related lawsuits were filed by the Extended Stay Litigation Trust (the “Trust”), a post-bankruptcy litigation trust alleged to have standing to pursue claims that previously had been held by Extended Stay, Inc.

and the Homestead Village L.L.C.

family of companies that had emerged from bankruptcy.

In June 2013, the Trust amended the lawsuits, to, among other things, (1) consolidate the lawsuits into one lawsuit, (2) dismiss certain defendants from the lawsuits, none of whom were related to us, and (3) reduce the counts within the lawsuits.

After extensive motion practice and discovery, in early December 2022, the plaintiff and certain co-defendants, including our affiliates, commenced discussions regarding a possible settlement of the Action, and in late December 2022, those parties reached an agreement in principle to settle the Action for a total of $ 38.0 million.

We agreed to pay up to $ 7.4 million of the settlement amount, which amount was accrued in our December 31, 2022 financial statements.

In early March 2023, the parties to the settlement finalized the settlement documents and on April 25, 2023, the Bankruptcy Court approved the settlement.

Following the Bankruptcy Court approval, the parties made the agreed upon payments, the broad mutual releases became effective and on June 23, 2023, the litigation was discontinued, with prejudice.

For more detailed information regarding the Action, please refer to Note 15 of our 2022 Annual Report.

Directors, asserting demand futility and claims for violation of Section 14(a) of the Exchange Act, breach of fiduciary duty, and unjust enrichment.

On September 10, 2025, the Court entered a joint stipulation and order to stay the action pending resolution of the motion to dismiss in the Securities Class Action.

This case is also in the early stages.

We believe that the allegations in these lawsuits are without merit, and we intend to vigorously defend against the claims.

At this time, we are unable to determine whether an unfavorable outcome is probable or to estimate reasonably possible losses.

Due to Borrowers.

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We have determined that our operating partnership, ARLP, and our CLO and Q Series securitization entities (“Securitization Entities”) are VIEs, which we consolidate.

ARLP was already consolidated in our financial statements, therefore, the identification of this entity as a VIE had no impact on our consolidated financial statements.

Our Securitization Entities invest in real estate and real estate-related securities and are financed by the issuance of debt securities.

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We are not obligated to provide, have not provided, and do not intend to provide financial support to any of the Securitization Entities.

Unconsolidated VIEs .

We determined that we are not the primary beneficiary of 64 VIEs in which we have a variable interest at December 31, 2025 because we do not have the ability to direct the activities of the VIEs that most significantly impact each entity’s economic performance.

ARBOR REALTY TRUST, INC.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

Unconsolidated VIEs .

We determined that we are not the primary beneficiary of 50 VIEs in which we have a variable interest at December 31, 2024 because we do not have the ability to direct the activities of the VIEs that most significantly impact each entity’s economic performance.

A summary of our variable interests in identified VIEs, of which we are not the primary beneficiary, at December 31, 2025 is as follows ($ in thousands):

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APL certificates 142,346

B Piece bonds 31,508

Equity investments 32,433

B Piece bonds 30,754

Agency interest only strips 21

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Common Stock.

In May 2024, we entered into a new equity distribution agreement with JMP Securities LLC ("JMP").

We have an equity distribution agreement with Citizens JMP Securities LLC ("JMP").

In accordance with the terms of the agreement, we may offer and sell up to 30,000,000 shares of our common stock in "At-The-Market" equity offerings through JMP by means of ordinary brokers' transactions or otherwise at market prices prevailing at the time of sale, or at negotiated prices.

1 unchanged sentence

At December 31, 2025, we had 23,439,335 shares available under the agreement.

During 2023, the Board of Directors authorized a share repurchase program providing for the repurchase of up to $ 150.0 million of our outstanding common stock.

We have a share repurchase program providing for the repurchase of up to $ 150.0 million of our outstanding common stock.

The repurchase of our common stock may be made from time to time in the open market, through privately negotiated transactions, or otherwise in compliance with Rule 10b-18 and Rule 10b5-1 under the Exchange Act, based on our stock price, general market conditions, applicable legal requirements and other factors.

The program may be discontinued or modified at any time.

During April 2024, we repurchased 935,739 shares of our common stock under the share repurchase program at a total cost of $ 11.4 million and an average cost of $ 12.19 per share.

In 2024, we repurchased 935,739 shares of our common stock under the share repurchase program at a total cost of $ 11.4 million and an average cost of $ 12.19 per share.

In December 2025, we repurchased 257,796 shares of our common stock under the share repurchase program at a total cost of $ 2.0 million and an average cost of $ 7.78 per share.

At December 31, 2025, there was $ 136.6 million available for repurchase under this program.

In January and February 2026, we repurchased an additional 2,444,860 shares of our common stock under this program at a total cost of $ 18.0 million and an average cost of $ 7.38 per share.

Noncontrolling Interest.

Noncontrolling interest relates to the OP Units issued to satisfy a portion of the purchase price in connection with the Acquisition.

Noncontrolling interest relates to the OP Units issued to satisfy a portion of the purchase price in connection with the acquisition of the agency platform of ACM in 2016.

Each of these OP Units are paired with one share of our special voting preferred shares having a par value of $ 0.01 per share and is entitled to one vote each on any matter submitted for stockholder approval.

The OP Units are entitled to receive distributions if and when our Board of Directors authorizes and declares common stock distributions.

The OP Units are also redeemable

ARBOR REALTY TRUST, INC.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

for cash, or at our option, for shares of our common stock on a one -for-one basis.

The OP Units are also redeemable for cash, or at our option, for shares of our common stock on a one -for-one basis.

At December 31, 2025, there were 16,169,858 OP Units outstanding, which represented 7.6 % of the voting power of our outstanding stock.

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February 19, 2025 $ 0.43 March 28, 2025 $ 0.3984375 $ 0.390625 $ 0.390625

May 1, 2024 $ 0.43 June 28, 2024 $ 0.3984375 $ 0.390625 $ 0.390625

April 30, 2025 $ 0.30 June 27, 2025 $ 0.3984375 $ 0.390625 $ 0.390625

July 30, 2025 $ 0.30 September 29, 2025 $ 0.3984375 $ 0.390625 $ 0.390625

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The dividend is payable on March 24, 2026 to common stockholders of record as of the close of business on March 10, 2026.

We have determined that 100 % of the common stock and preferred stock dividends paid during 2024, 2023 and 2022 represented ordinary income to our stockholders for income tax purposes.

For 2025, common stock and preferred stock dividends paid were determined to be approximately 45 % non-qualified and 55 % qualified dividends.

For stockholders that may be required to report excess inclusion income to the Internal Revenue Service, we will not pass through any excess inclusion income to our stockholders for 2025.

As a result, no portion of the 2025 dividends should be treated as excess inclusion income for federal income tax purposes.

We have determined that 100 % of the common stock and preferred stock dividends paid during 2024 and 2023 were determined to be non-qualified dividends representing ordinary income to our stockholders for income tax purposes.

Deferred Compensation.

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(3) 226,221 shares with a grant date fair value of $ 2.7 million will vest in 2027;

(4) 31,314 shares with a grant date fair value of $ 0.5 million will vest in 2027;

and (4) 23,454 shares with a grant date fair value of $ 0.2 million will vest in 2028.

During 2024, we issued our chief executive officer 309,775 shares of restricted common stock with a grant date fair value of $ 3.9 million that vest in full in the first quarter of 2027.

We also issued 36,688 fully vested restricted stock units (“RSUs”) with a grant date fair value of $ 0.5 million to certain members of our Board of Directors, who have decided to defer the receipt of the common stock, into which the RSUs are converted, to a future date pursuant to a pre-established deferral election.

We issued our chief executive officer 170,674 shares of restricted common stock with a grant date fair value of $ 2.1 million that vest in full in the first quarter of 2028.

We also granted our chief executive officer up to 682,699 shares of performance-based restricted stock units (“RSUs”) with a grant date fair value of $ 2.7 million that vest at the end of a four-year performance period based on the achievement of certain stockholder return objectives.

In addition, we granted 47,725 fully vested RSUs with a grant date fair value of $ 0.6 million to certain members of our Board of Directors, who decided to defer the receipt of the common stock, into which the RSUs are converted, to a future date pursuant to a pre-established deferral election.

During 2025, we withheld 288,033 shares from the net settlement of restricted common stock by employees for payment of withholding taxes on shares that vested.

During 2023, we issued 943,788 shares of restricted common stock to our employees and members of our Board of Directors under the 2020 Amended Omnibus Stock Incentive Plan (the “2020 Plan”) with a total grant date fair value of $ 11.3 million, of which:

During 2024, we issued 828,073 shares of restricted common stock to our employees and members of our Board of Directors under the Amended Omnibus Stock Incentive Plan with a total grant date fair value of $ 10.9 million, of which:

(1) 268,869 shares with a grant date fair value of $ 3.5 million were fully vested on the grant date;

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and (5) 34,750 shares with a grant date fair value of $ 0.5 million will vest in 2028.

We issued 40,796 RSUs with a grant date fair value of $ 0.5 million to certain members of our Board of Directors and 247,275 RSUs with a grant date fair value of $ 2.9 million that vest in full in the first quarter of 2026 to our chief executive officer.

The individuals decided to defer the receipt of the common stock, to which the RSUs are converted into, to a future date.

The deferred awards have no voting rights and are eligible to receive dividend equivalents equal to the dividends on our common stock as, and when, declared by our Board of Directors.

During 2022, we issued 652,596 shares of restricted common stock to our employees and members of our Board of Directors under the 2020 Plan with a total grant date fair value of $ 11.1 million, of which:

We issued our chief executive officer 309,775 shares of restricted common stock with a grant date fair value of $ 3.9 million that vest in full in the first quarter of 2027.

We also issued 36,688 fully vested RSUs with a grant date fair value of $ 0.5 million to certain members of our Board of Directors, who decided to defer the receipt of the common stock, into which the RSUs are converted, to a future date pursuant to a pre-established deferral election.

During 2023, we issued 943,788 shares of restricted common stock to our employees and members of our Board of Directors under the 2020 Amended Omnibus Stock Incentive Plan with a total grant date fair value of $ 11.3 million, of which:

(1) 299,710 shares with a grant date fair value of $ 3.6 million were fully vested on the grant date;

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and (5) 34,722 shares with a grant date fair value of $ 0.4 million will vest in 2027.

We issued 25,012 fully vested RSUs with a grant date fair

We issued 40,796 RSUs with a grant date fair value of $ 0.5 million to certain members of our Board of Directors and 247,275 RSUs with a grant

ARBOR REALTY TRUST, INC.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

value of $ 0.4 million to certain members of our Board of Directors and 189,873 RSUs with a grant date fair value of $ 3.3 million that vest in full in the first quarter of 2025 to our chief executive officer.

date fair value of $ 2.9 million that vest in full in the first quarter of 2026 to our chief executive officer.

The individuals decided to defer the receipt of the common stock, to which the RSUs are converted into, to a future date.

The deferred awards have no voting rights and are eligible to receive dividend equivalents equal to the dividends on our common stock as, and when, declared by our Board of Directors.

In 2024, 2023 and 2022, previously granted performance-based restricted stock units of 275,569 units, 352,427 units and 381,503 units, respectively, to our chief executive officer fully vested based on achieving the performance objectives for the four-year periods ended December 31, 2023, 2022 and 2021, respectively.

In 2025, previously granted RSUs of 189,873 units to our chief executive officer vested, who decided to defer the receipt of the common stock, into which the RSUs are converted, to a future date pursuant to a pre-established deferral election.

In 2024 and 2023, previously granted performance-based RSUs of 275,569 units and 352,427 units, respectively, to our chief executive officer fully vested based on achieving the performance objectives for the four-year periods ended December 31, 2023 and 2022, respectively.

The 275,569 units vested in full and were not net settled.

The 352,427 units and 381,503 units vested in full and were net settled for 172,513 shares and 186,772 shares, respectively, of common stock in 2023 and 2022.

respectively.

In addition, 313,152 shares and 246,508 shares of performance-based restricted stock granted to our chief executive officer in 2020 and 2019, respectively, vested in 2023 and 2022, respectively, which were net settled for 153,287 shares and 120,665 shares, respectively, of common stock.

The 352,427 units vested in full and were net settled for 172,513 shares of common stock in 2023.

In 2023, previously granted performance-based restricted stock of 313,152 shares to our chief executive officer vested, which were net settled for 153,287 shares of common stock.

Further, 165,746 shares and 184,729 shares of restricted common stock granted to our chief executive officer in 2021 vested in 2024, of which the 165,746 shares were net settled for 81,132 shares of common stock and the 184,729 shares were not net settled.

During 2025, 2024 and 2023, we recorded total stock-based compensation expense of $ 12.9 million, $ 13.4 million and $ 14.2 million, respectively, to employee compensation and benefits and $ 0.9 million, $ 0.8 million and $ 0.7 million, respectively, to selling and administrative expense.

During 2024, a total of 894,913 shares of restricted stock and restricted stock units vested with a grant date fair value of $ 9.6 million.

During 2025, a total of 986,737 shares of restricted stock and RSUs vested with a grant date fair value of $ 13.3 million.

At December 31, 2025 and 2024, there were 2,311,087 shares and 1,689,556 shares, respectively, of unvested restricted common stock with a grant date fair value of $ 28.6 million and $ 22.2 million, respectively.

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(2) We consider OP Units to be common stock equivalents as the holders have voting rights, the right to distributions and the right to redeem the OP Units for the cash value of a corresponding number of shares of common stock or a corresponding number of shares of common stock, at our election.

(3) The year ended December 31, 2024 excludes interest expense of $ 24.3 million, and potentially dilutive shares of 17,487,435 , attributable to convertible debt since their effect would have been anti-dilutive.

(3) The years ended December 31, 2025 and 2024 exclude interest expense of $ 14.2 million and $ 24.3 million, respectively, and potentially dilutive shares of 10,220,007 and 17,487,435 , respectively, attributable to convertible debt since their effect would have been anti-dilutive.

(4) Our chief executive officer was granted RSUs, which vest at the end of a four-year performance period based upon our achievement of total stockholder return objectives.

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Certain REIT income may be subject to state and local income taxes.

We did not have any REIT–federal taxable income, net of dividends paid and net operating loss deductions, for 2024, 2023 and 2022, and therefore, have not provided for REIT federal income tax expense in any of those years.

We did not have any REIT–federal taxable income, net of dividends paid and net operating loss deductions, for 2025, 2024 and 2023, and therefore, have not provided for REIT federal income tax expense, respectively.

In 2025, 2024 and 2023, the REIT incurred no state income tax expense.

We have elected to retain excess inclusion income rather than passing it through to our stockholders.

Certain of our assets and operations that would not otherwise comply with the REIT requirements, such as the Agency Business and our residential mortgage banking joint venture, are owned or conducted through our TRS Consolidated Group, the majority of the income of which is subject to U.S.

Certain of our assets and operations that would not otherwise comply with the REIT requirements, such as the Agency Business and our residential mortgage banking joint venture (sold in 2025), are owned or conducted through our taxable REIT subsidiaries (the "TRS Consolidated Group"), the majority of the income of which is subject to U.S.

federal, state and local income taxes.

The TRS Consolidated Group had no federal net operating losses remaining from prior years.

For 2025, 2024 and 2023, we recorded a provision for income taxes related to the assets held in the TRS Consolidated Group and the REIT in the amount of $ 18.8 million, $ 13.5 million and $ 27.3 million, respectively.

In 2025 and 2024, there were no changes in valuation allowance.

In 2023, the change in valuation allowance previously recorded at the TRS Consolidated Group on the deferred tax assets was released in the amount of $ 0.3 million.

A summary of our pre-tax GAAP income is as follows ($ in thousands):

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Total 15,006 25,091 34,696

Deferred tax (benefit) provision:

Deferred tax provision (benefit):

Federal $ 3,001 $ ( 8,795 ) $ ( 5,272 )

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A reconciliation of our effective income tax rate as a percentage of pre-tax income to the U.S.

federal statutory rate is as follows:

federal statutory rate is as follows ($ in thousands):

Year Ended December 31,

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federal statutory rate $ 37,924 21.0 % $ 62,453 21.0 % $ 89,860 21.0 %

State and local income taxes, net of federal tax effect (1) 3,853 2.1 % 2,707 0.9 % 5,255 1.2 %

Changes in valuation allowances — — — — ( 294 ) ( 0.1 ) %

Nontaxable or nondeductible items:

REIT non‑taxable income ( 24,017 ) ( 13.3 ) % ( 51,885 ) ( 17.4 ) % ( 67,212 ) ( 15.7 ) %

State and local income taxes, net of federal tax benefit 0.9 % 1.2 % 1.0 %

Other 346 0.2 % ( 10 ) — ( 351 ) ( 0.1 ) %

Other adjustments 673 0.4 % 213 0.1 % 89 0.1 %

Effective income tax rate $ 18,779 10.4 % $ 13,478 4.6 % $ 27,347 6.4 %

(1) State taxes in New York, Florida, New Jersey, Massachusetts and Georgia in 2023 and New York, Florida, New Jersey, Massachusetts and Connecticut in 2024 and New York, North Carolina, Florida, Maryland and Georgia in 2025 made up the majority (greater than 50%) of the tax effect in this category.

The significant components of our deferred tax assets and liabilities of our TRS Consolidated Group are as follows ($ in thousands):

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Deferred tax liabilities, net $ 31,037 $ 31,094

Income taxes paid (net of refund) is comprised as follows ($ in thousands):

Year Ended December 31,

2025 2024 2023

Federal $ 19,128 $ 19,300 $ 22,900

State 6,595 7,807 6,849

Total $ 25,723 $ 27,107 $ 29,749

Jurisdictions with income taxes paid (net of refunds) exceeding 5% of total income taxes paid ($ in thousands):

Year Ended December 31,

2025 2024 2023

New York $ 599 $ 1,991 $ 1,837

ARBOR REALTY TRUST, INC.

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

At both December 31, 2025 and 2024, the REIT (excluding the TRS Consolidated Group) had no federal net operating loss carryforwards and no capital loss carryforwards.

At both December 31, 2025 and 2024, the TRS Consolidated Group had no federal net operating loss carryforwards remaining.

At both December 31, 2024 and 2023, the TRS Consolidated Group had state net operating loss carryforwards of $ 0.2 million, which will begin to expire in 2036.

The TRS Consolidated Group is currently under audit in certain state and local jurisdictions for tax years 2017-2021.

While the impact of the current income tax examinations were undetermined, it is not expected to be material to our consolidated financial statements.

We have assessed our tax positions for all open years, which includes 2017-2024, and have concluded that there were no material uncertainties to be recognized.

At December 31, 2025 and 2024, the TRS Consolidated Group had state net operating loss carryforwards of approximately $ 0.3 million and $ 0.2 million, respectively, which will begin to expire in 2036.

The TRS Consolidated Group is currently under audit in certain state and local jurisdictions for tax years 2019 to 2023.

While the impact of the current income tax examinations are undetermined, it is not expected to be material to our consolidated financial statements.

We have assessed our tax positions for all open years, which includes 2018 to 2025, and have concluded that there were no material uncertainties to be recognized.

We have not recognized any interest and penalties related to tax uncertainties for the years ended 2018 through 2025.

4 unchanged sentences

During 2025, 2024 and 2023, we incurred $ 4.0 million, $ 3.3 million and $ 3.2 million, respectively, of costs for services provided and employees seconded to the Service Recipients, all of which are reimbursable to us and included in due from related party on the consolidated balance sheets.

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AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

Other Related Party Transactions.

Due from related party was $ 6.5 million and $ 12.8 million at December 31, 2025 and 2024, respectively, which consisted primarily of amounts due from our affiliated servicing operations related to real estate transactions closing at the end of 2025 and 2024 and amounts due from ACM for costs incurred in connection with the support and secondment agreements described above.

Due to related party was $ 4.5 million and $ 13.8 million at December 31, 2024 and 2023, respectively, and consisted of loan payoffs, holdbacks and escrows to be remitted to our affiliated servicing operations related to real estate transactions.

Due to related party was $ 0.5 million and $ 4.5 million at December 31, 2025 and 2024, respectively, and consisted of loan settlements, holdbacks and escrows to be remitted to our affiliated servicing operations related to real estate transactions.

Investments in equity affiliates, which represent related parties under GAAP, and their related disclosures, are included in Note 8.

In certain instances, our business requires our executives to charter privately owned aircraft in furtherance of our business.

In certain instances, our business requires our executives to utilize privately owned aircraft in furtherance of our business.

We have an aircraft time-sharing agreement with an entity controlled by our chief executive officer that owns a private aircraft.

Pursuant to the agreement, we reimburse the aircraft owner for the required costs under Federal Aviation Administration regulations for the flights our executives’ charter.

During 2024, 2023 and 2022, we reimbursed the aircraft owner $ 0.5 million, $ 0.8 million and $ 1.1 million, respectively, for the flights chartered by our executives pursuant the agreement.

In July 2024, we committed to fund a $ 62.4 million bridge loan ( none of which was funded at December 31, 2024) in an SFR build-to-rent construction project.

Pursuant to the agreement, we reimburse the aircraft owner for the required costs under Federal Aviation Administration regulations for the flights our executives’ take.

During 2025, 2024 and 2023, we reimbursed the aircraft owner $ 1.3 million, $ 0.5 million and $ 0.8 million, respectively, for the flights taken by our executives pursuant the agreement.

In November 2025, we originated a $ 67.9 million bridge loan for the acquisition of a multifamily property purchased by a joint venture we formed with ACM, an entity owned by an immediate family member of our chief executive officer and a consortium of independent outside investors, we refer to as "Clarus Berkley," which was formed to purchase and operate the property.

We contributed $ 1.5 million, for a 3.6 % interest in the borrowing entity, while ACM and the entity owned by an immediate family member of our chief executive officer contributed a combined $ 1.8 million for a 4.3 % interest in the borrowing entity.

The loan has an interest rate of SOFR plus 2.50 % with a SOFR floor of 2.50 % and matures in November 2028.

Interest income recorded from the loan was $ 0.5 million for 2025.

See Note 8 for further details.

In November 2025, we committed to fund a $ 44.8 million bridge loan ( none was funded at December 31, 2025) in an SFR BTR construction project.

An entity owned by an immediate family member of our chief executive officer also made an equity investment in the project, representing less than 1.0 % of the total equity invested.

The loan has an interest rate of SOFR plus 4.25 % with a SOFR floor of 3.50 % and matures in November 2028, with a one-year extension option.

In October 2025, we committed to fund a $ 50.5 million bridge loan ( none was funded at December 31, 2025) in an SFR BTR construction project.

ACM and an entity owned by an immediate family member of our chief executive officer also made equity investments in the project, representing in the aggregate 4.6 % of the total equity invested.

The loan has an interest rate of SOFR plus 4.25 % with a SOFR floor of 3.50 % and matures in October 2028, with a one-year extension option.

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AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

In August 2025, we originated a $ 4.0 million bridge loan for the acquisition of a condominium complex, of which one of our directors is the co-chief executive officer and president of an entity that is an indirect owner of the borrower.

The loan has an interest rate of SOFR plus 3.25 % with a SOFR floor of 4.32 % and matures in August 2026.

Interest income recorded from this bridge loan was $ 0.1 million for 2025.

In May 2025, we refinanced a $ 32.5 million bridge loan with a new $ 43.0 million bridge loan for an SFR BTR construction project that matures in May 2026.

In 2020, we also made a $ 3.5 million preferred equity investment in the same project, of which $ 1.2 million was paid off in May 2025.

An entity owned by an immediate family member of our chief executive officer also made an equity investment in the project and owned a 21.8 % equity interest in the borrowing entity that increased to 26.6 % in connection with the refinancing.

The interest rate on the old loan was SOFR plus 3.75 % with a SOFR floor of 0.75 % and the interest rate on the new loan is SOFR plus 3.00 % with a SOFR floor of 3.25 %.

The preferred equity investment has a 12.00 % fixed rate and was scheduled to mature in May 2025, which was extended to May 2026.

In connection with the extension, the borrower paid deferred interest of $ 1.9 million.

Interest income recorded from these loans was $ 3.7 million, $ 4.2 million and $ 2.8 million for 2025, 2024 and 2023, respectively.

In May 2025, we refinanced a $ 30.5 million bridge loan with a new $ 36.2 million bridge loan, for an SFR BTR construction project.

In 2020, we also made a $ 4.6 million preferred equity investment in the same project.

ACM and an entity owned by an immediate family member of our chief executive officer also made equity investments in the project and owned a combined 18.9 % equity interest in the borrowing entity that increased to 33.7 % in connection with the refinancing.

The interest rate on the old loan was SOFR plus 4.25 % with a SOFR floor of 1.00 % and the interest rate on the new loan is SOFR plus 3.00 % with a SOFR floor of 3.25 %.

The new loan was scheduled to mature in November 2025, which was extended to May 2026.

The preferred equity investment has a 12.00 % fixed rate and was scheduled to mature in November 2025, which was extended to May 2026.

In connection with the extension, the borrower paid deferred interest of $ 1.3 million.

Interest income recorded from the loans was $ 3.5 million, $ 4.4 million and $ 3.6 million for 2025, 2024 and 2023, respectively.

In May 2025, we refinanced a $ 56.9 million bridge loan with a new $ 58.4 million bridge loan for an SFR BTR construction project.

Two of our officers made minority equity investments totaling $ 0.5 million, representing approximately 4 % of the total equity invested in the project.

Interest on the new loan decreased from SOFR plus 5.50 % with a SOFR floor of 3.25 % to SOFR plus 2.75 % with a SOFR floor of 3.50 % and matures in May 2027.

Interest income recorded from the loans was $ 4.8 million, $ 3.2 million and $ 0.4 million for 2025, 2024 and 2023, respectively.

In February 2025, we refinanced a $ 46.2 million bridge loan we purchased from ACM in 2022 with a new $ 52.6 million bridge loan ($ 26.3 million was funded at December 31, 2025) for an SFR BTR construction project.

A consortium of investors (which includes, among other unaffiliated investors, certain of our officers with a minority ownership interest) owns 70 % of the borrowing entity and an entity indirectly owned and controlled by an immediate family member of our chief executive officer owns 10 % of the borrowing entity.

Interest on the new loan decreased from SOFR plus 5.50 % to SOFR plus 4.75 % and matures in February 2027.

Interest income recorded from the loans was $ 1.6 million, $ 0.7 million and $ 0.2 million for 2025, 2024 and 2023, respectively.

In 2024, we committed to fund a $ 62.4 million bridge loan ($ 24.0 million was funded at December 31, 2025) in an SFR BTR construction project.

An entity owned by an immediate family member of our chief executive officer also made an equity investment in the project and owns a 3.34 % equity interest in the borrowing entity.

The loan has an interest rate of SOFR plus 4.25 % with a SOFR floor of 3.50 % and matures in July 2027.

Interest income recorded from this loan was $ 0.1 million for 2024.

In May 2024, we committed to fund a $ 42.5 million bridge loan ($ 4.5 million was funded at December 31, 2024) in an SFR build-to-rent construction project.

Interest income recorded from this loan was $ 1.2 million and $ 0.1 million for 2025 and 2024, respectively.

In 2024, we committed to fund a $ 42.5 million bridge loan ($ 26.4 million was funded at December 31, 2025) in an SFR BTR construction project.

An entity owned by an immediate family member of our chief executive officer also made an equity investment in the project and owns a 2.28 % equity interest in the borrowing entity.

The loan has an interest rate of SOFR plus 4.25 % with a SOFR floor of 3.50 % and matures in May 2027.

Interest income recorded from this loan was $ 0.2 million for 2024.

In May 2023, we committed to fund a $ 56.9 million bridge loan ($ 50.1 million was funded at December 31, 2024) for an SFR build-to-rent construction project.

Two of our officers made minority equity investments totaling $ 0.5 million, representing approximately 4 % of the total equity invested in the project.

The loan has an interest rate of SOFR plus 5.50 % with a SOFR floor of 3.25 % and matures in December 2025, with two six-month extension options.

Interest income recorded from this loan was $ 1.4 million and $ 0.2 million for 2025 and 2024, respectively.

In 2022, we purchased a $ 46.2 million bridge loan originated by ACM at par ($ 7.4 million was funded at December 31, 2024) for an SFR build-to-rent construction project.

The loan has an interest rate of SOFR plus 5.50 % and matures in March 2025.

Interest income recorded from this loan was $ 0.7 million and $ 0.2 million for 2024 and 2023, respectively.

In 2022, we committed to fund a $ 67.1 million bridge loan ($ 37.0 million was funded at December 31, 2024) in an SFR build-to-rent construction project.

In 2022, we committed to fund a $ 67.1 million bridge loan ($ 52.9 million was funded at December 31, 2025) in an SFR BTR construction project.

An entity owned by an immediate family member of our chief executive officer also made an equity investment in the project and owns a 2.25 % equity interest in the borrowing entity.

The loan has an interest rate of SOFR plus 4.63 % with a SOFR floor of 0.25 % and matures in May 2025.

The loan has an interest rate of SOFR plus 4.63 % with a SOFR floor of 0.25 % and was scheduled to mature in May 2025, which was extended to May 2026.

Interest income recorded from this loan was $ 4.4 million, $ 1.6 million and $ 0.2 million for 2025, 2024 and 2023, respectively.

In 2022, we committed to fund a $ 39.4 million bridge loan ($ 32.3 million was funded at December 31, 2024) in an SFR build-to-rent construction project.

In 2022, we committed to fund a $ 39.4 million bridge loan ($ 39.0 million was funded at December 31, 2025) in an SFR BTR construction project.

An entity owned by an immediate family member of our chief executive officer also made an equity investment in the project and owns a 2.25 % equity interest in the borrowing entity.

The loan has an interest rate of SOFR plus 4.00 % with a SOFR floor of 0.25 % and matures in March 2025.

The loan has an interest rate of SOFR plus 4.00 % with a SOFR floor

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

of 0.25 % and was scheduled to mature in March 2025, which was extended to March 2026.

Interest income recorded from this loan was $ 3.2 million, $ 1.9 million and $ 0.4 million for 2025, 2024 and 2023, respectively.

2 unchanged sentences

An entity owned by an immediate family member of our chief executive officer also made an investment in the LLC for a 10 % ownership, is the managing member and holds the right to purchase our interest in the LLC.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

In 2021, we originated a $ 63.4 million bridge loan to a third party to purchase a multifamily property from a multifamily-focused commercial real estate investment fund sponsored and managed by our chief executive officer and one of his immediate family members, which fund has no continued involvement with the property following the purchase.

The loan had an interest rate of SOFR plus 3.75 % with a SOFR floor of 0.25 % and was scheduled to mature in March 2024.

In December 2023, the loan was paid off in full.

Interest income recorded from this loan was $ 5.6 million and $ 3.7 million for 2023 and 2022, respectively.

In 2020, we committed to fund a $ 32.5 million bridge loan, and made a $ 3.5 million preferred equity investment in an SFR build-to-rent construction project.

An entity owned by an immediate family member of our chief executive officer also made an equity investment in the project and owns a 21.8 % equity interest in the borrowing entity.

The bridge loan has an interest rate of SOFR plus 3.75 % with a SOFR floor of 0.75 % and the preferred equity investment has a 12.00 % fixed rate.

Both loans were scheduled to mature in December 2023.

In November 2023, the bridge loan was upsized to a maximum of $ 39.9 million ($ 39.5 million was funded at December 31, 2024) and the maturity on the bridge loan and preferred equity investment were both extended to May 2025.

Interest income recorded from these loans was $ 4.2 million, $ 2.8 million and $ 1.3 million for 2024, 2023 and 2022, respectively.

In 2020, we committed to fund a $ 30.5 million bridge loan , and we made a $ 4.6 million preferred equity investment in a SFR build-to-rent construction project.

ACM and an entity owned by an immediate family member of our chief executive officer also made equity investments in the project and own an 18.9 % equity interest in the borrowing entity.

The bridge loan had an interest rate of SOFR plus 4.25 % with a SOFR floor of 1.00 % and was scheduled to mature in May 2023 and the preferred equity investment has a 12.00 % fixed rate and was scheduled to mature in April 2023.

In April 2023, the bridge loan was upsized to a maximum of $ 38.8 million ($ 33.8 million was funded at December 31, 2024), and the maturity on both loans was extended to May 2025 .

Interest income recorded from these loans was $ 4.4 million, $ 3.6 million and $ 1.6 million for 2024, 2023 and 2022, respectively.

In 2020, we originated a $ 14.8 million Private Label loan and a $ 3.4 million mezzanine loan on two multifamily properties owned in part by a consortium of investors (which includes, among other unaffiliated investors, certain of our officers and our chief executive officer) which owns a 50 % interest in the borrowing entity.

In 2020, we sold the Private Label loan to an unconsolidated affiliate of ours.

The mezzanine loan bears interest at a 9.00 % fixed rate and matures in April 2030.

The mezzanine loan has a fixed interest rate of 9.00 % and matures in April 2030.

Interest income recorded from the mezzanine loan was $ 0.3 million for all periods presented.

We had a $ 35.0 million bridge loan and a $ 10.0 million preferred equity interest on an office building.

The bridge loan was scheduled to mature in October 2023 and the preferred equity investment was scheduled to mature in June 2027.

The day-to-day operations were being managed by an affiliated entity of an immediate family member of our chief executive officer.

In September 2021, we entered into a forbearance agreement with the borrower on the outstanding bridge loan to defer all interest owed until maturity or early payoff.

In the fourth quarter of 2023, we converted these loans in the building to a common equity investment.

See Note 3 for details.

In 2019, we, along with ACM, certain executives of ours and a consortium of independent outside investors, formed AMAC III, a multifamily-focused commercial real estate investment fund sponsored and managed by our chief executive officer and one of his immediate family members.

We invested $ 30.0 million for an 18 % interest in AMAC III.

During 2024, 2023 and 2022, we recorded losses of $ 2.3 million, $ 1.9 million and $ 2.4 million, respectively.

During 2024 and 2023, we made contributions of $ 4.1 million and $ 0.7 million, respectively, and received cash distributions of $ 1.1 million in 2023 associated with this investment.

In 2019, AMAC III originated a $ 7.0 million mezzanine loan to a borrower with which we have an outstanding $ 34.0 million bridge loan.

We committed to a $ 30.0 million investment for an 18 % interest in AMAC III.

In 2019, AMAC III originated a $ 7.0 million mezzanine loan to a borrower with which we had an outstanding $ 34.0 million bridge loan.

In 2020, for full satisfaction of the mezzanine loan, AMAC III became the owner of the property.

Also in 2020, the $ 34.0 million bridge loan was refinanced with a $ 35.4 million bridge loan, which bears interest at SOFR plus 3.50 %, and was scheduled to mature in August 2024, which was extended to February 2025.

Also in 2020, the $ 34.0 million bridge loan was refinanced with a $ 35.4 million bridge loan, which has an interest rate of SOFR plus 3.50 %, and was scheduled to mature in February 2025.

In February 2025, we modified this loan to extend the maturity to February 2028 in exchange for a $ 2.0 million paydown that was made in the first quarter of 2025.

In September 2025, the loan was modified to extend the maturity to July 2028, adjust the interest rate to SOFR plus 1.00 % with an all-in floor of 6.50 %, and include a fixed pay rate of 1.00 %, effective June 1, 2025, with the remaining balance deferred.

Interest income recorded from the bridge loan was $ 1.3 million, $ 3.1 million and $ 3.1 million for 2025, 2024 and 2023, respectively.

In February 2025, we modified this loan to extend the maturity three years in exchange for an immediate paydown of $ 0.3 million and an additional paydown of $ 1.7 million to be made on or prior to March 31, 2025.

In 2019, we converted an existing bridge loan into a $ 2.0 million mezzanine loan with a fixed interest rate of 10.00 % and a January 2024 maturity.

See Note 8 for further details.

In 2019, we converted an existing bridge loan into a $ 2.0 million mezzanine loan with a fixed interest rate of 10.00 %.

The underlying multifamily property is owned in part by a consortium of investors (which includes, among other unaffiliated investors, certain of our officers and our chief executive officer) which owns interests ranging from 10.5 % to 12.0 % in the borrowing entities .

In January 2024, the maturity was extended to January 2025, and we are currently in negotiations with this borrower to further extend the maturity.

The loan was scheduled to mature in May 2025, which was extended to February 2029.

Interest income recorded from this loan was $ 0.2 million for all period presented.

In 2018, we originated a $ 21.7 million bridge loan on a multifamily property owned in part by a consortium of investors (which includes, among other unaffiliated investors, certain of our officers and our chief executive officer) which owns 75 % in the borrowing entity.

The loan has an interest rate of SOFR plus 4.75 % with a SOFR floor of 0.25 %, and was scheduled to mature in November 2024, which was extended to February 2025.

In the fourth quarter of 2024, we recorded a $ 5.5 million specific reserve on this loan.

The loan has an interest rate of SOFR plus 4.75 % with a SOFR floor of 0.25 %, and was scheduled to mature in February 2025, which was modified to extend the maturity to February 2027 in exchange for $ 3.0 million of additional collateral and a $ 2.5 million paydown to be made in February 2026.

In 2024, we recorded a $ 5.5 million specific reserve on this loan.

In September 2025, this loan paid off and we fully reversed the specific reserve recorded.

Interest income recorded from this bridge loan was $ 1.6 million, $ 2.2 million and $ 2.2 million for 2025, 2024 and 2023, respectively.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

2025, we modified this loan to extend the maturity two years in exchange for $ 3.0 million of additional collateral and a $ 2.5 million paydown to be made in February 2026.

In 2017, we originated a $ 46.9 million Fannie Mae loan on a multifamily property owned in part by a consortium of investors (which includes, among other unaffiliated investors, certain of our officers) which owns a 17.6 % interest in the borrowing entity.

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Servicing revenue recorded from this loan was less than $ 0.1 million for all periods presented.

In 2017, Ginkgo Investment Company LLC (“Ginkgo”), of which one of our directors is a 33 % managing member, purchased a multifamily apartment complex which assumed an existing $ 8.3 million Fannie Mae loan that we service.

Ginkgo subsequently sold the majority of its interest in this property and owned a 3.6 % interest at December 31, 2024.

In July 2023, the Fannie Mae loan was paid off in full.

Servicing revenue recorded from this loan was less than $ 0.1 million for all periods presented.

In 2015, we invested $ 9.6 million for 50 % of ACM’s indirect interest in a joint venture with a third party that was formed to invest in a residential mortgage banking business.

At December 31, 2024, we had an indirect interest of 12.3 % in this entity.

We recorded a loss from equity affiliates related to this investment of $ 1.2 million, income of $ 0.6 million and income of $ 4.9 million for 2024, 2023 and 2022, respectively.

During 2024 and 2023, we also received cash distributions totaling $ 7.7 million and $ 15.0 million, respectively, from this investment, which were classified as returns of capital.

In April 2025, Wakefield entered into an agreement to sell its interest in the residential mortgage banking business for $ 117.3 million.

Based on the terms of this agreement, $ 22.0 million was allocated to us, which is equivalent to the carrying value of our investment, and therefore, we did not record a gain or loss on the transaction.

The transaction closed once the entire sales price was paid, which was due in installments as follows:

$ 15.0 million on or before April 1, 2025;

$ 15.0 million on or before April 30, 2025;

and the remaining $ 87.3 million on or before December 15, 2025.

The first two installments were made in April, for which we received $ 5.6 million as our allocable share, and the final installment was made July 2025, for which we received $ 16.4 million as our allocable share.

See Note 8 for further details.

We, along with an executive officer of ours and a consortium of independent outside investors, hold equity investments in a portfolio of multifamily properties referred to as the “Lexford” portfolio, which is managed by an entity owned primarily by a consortium of affiliated investors, including our chief executive officer and an executive officer of ours.

Based on the terms of the management contract, the management company is entitled to 4.75 % of gross revenues of the underlying properties, along with the potential to share in the proceeds of a sale or restructuring of the debt.

Based on the terms of the management contract,

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

the management company is entitled to 4.75 % of gross revenues of the underlying properties, along with the potential to share in the proceeds of a sale or restructuring of the debt.

In 2018, the owners of Lexford restructured part of its debt and we originated 12 bridge loans totaling $ 280.5 million, which were used to repay in full certain existing mortgage debt and to renovate 72 multifamily properties included in the portfolio.

The loans were originated in 2018, had interest rates of LIBOR plus 4.00 % and were scheduled to mature in June 2021.

During 2019, the borrower made payoffs and partial paydowns of principal totaling $ 250.0 million and in 2020, the remaining balance of the loans were refinanced with a $ 34.6 million Private Label loan, which bears interest at a fixed rate of 3.30 % and matures in March 2030.

During 2019, the borrower made payoffs and partial paydowns of principal totaling $ 250.0 million and in 2020, the remaining balance of the loans were refinanced with a $ 34.6 million Private Label loan, which has a fixed interest rate of 3.30 % and matures in March 2030.

In 2020, we sold the Private Label loan to an unconsolidated affiliate of ours.

Interest income recorded from these loans totaled $ 0.5 million during 2020.

Further, as part of this 2018 restructuring, $ 50.0 million in unsecured financing was provided by an unsecured lender to certain parent entities of the property owners.

ACM owns slightly less than half of the unsecured lender entity and, therefore, provided slightly less than half of the unsecured lender financing.

In addition, in connection with our equity investment, we received distributions totaling $ 9.0 million and $ 12.2 million during 2024 and 2023, respectively, which were recorded as income from equity affiliates.

Separate from the loans we originated in 2018, we provide limited (“bad boy”) guarantees for certain other debt controlled by Lexford.

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At December 31, 2025, this debt had an aggregate outstanding balance of approximately $ 300.0 million and is scheduled to mature through 2029.

See Note 8 for further details.

Several of our executives, including our chief financial officer, senior counsel and our chairman, chief executive officer and president, hold similar positions for ACM.

10 unchanged sentences

We have a non-qualified deferred compensation plan (the “Deferred Comp Plan”) which is offered to certain full-time employees and is subject to the rules of section 409A of the Internal Revenue Code.

The Deferred Comp Plan can be

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

modified or discontinued at any time.

The Deferred Comp Plan can be modified or discontinued at any time.

All eligible participating employees may defer a portion of their compensation and, depending on the participant eligibility requirements met, we are contractually obligated to:

30 unchanged sentences

Property operating income 21,347 — — 21,347

Loss on derivative instruments, net — ( 8,543 ) — ( 8,543 )

Gain on derivative instruments, net — 1,259 — 1,259

Other income, net 10,537 4,264 — 14,801

6 unchanged sentences

Depreciation and amortization 21,648 1,566 — 23,214

Provision for loss sharing — 11,782 — 11,782

Provision for loan losses (net of recoveries) 63,953 4,590 — 68,543

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 of debt, gain on real estate, income from equity affiliates and income taxes 173,824 114,400 — 288,224

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 )

Gain on real estate 3,813 — — 3,813

Loss on real estate ( 9,151 ) — — ( 9,151 )

Income from equity affiliates 50,880 — — 50,880

Benefit from (provision for) income taxes 3,590 ( 17,068 ) — ( 13,478 )

Provision for income taxes ( 1,634 ) ( 17,145 ) — ( 18,779 )

Net income 80,700 77,129 — 157,829

17 unchanged sentences

Property operating income 7,226 — — 7,226

Gain on derivative instruments, net — 6,763 — 6,763

Loss on derivative instruments, net — ( 8,543 ) — ( 8,543 )

Other income, net 7,255 828 — 8,083

6 unchanged sentences

Depreciation and amortization 6,296 3,259 — 9,555

Provision for loss sharing (net of recoveries) — 15,695 — 15,695

Provision for credit losses (net of recoveries) 70,344 3,102 — 73,446

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, income from equity affiliates and income taxes 251,373 153,810 — 405,183

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

20 unchanged sentences

Gain on derivative instruments, net — 6,763 — 6,763

Other income (loss), net ( 2,360 ) ( 15,203 ) — ( 17,563 )

Other income, net 4,868 2,799 — 7,667

Total other revenue 10,576 282,445 — 293,021

5 unchanged sentences

Depreciation and amortization 5,052 4,691 — 9,743

Provision for loss sharing (net of recoveries) — 1,862 — 1,862

Provision for credit losses (net of recoveries) 19,770 1,399 — 21,169

Litigation settlement 7,350 — — 7,350

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

2 unchanged sentences

Income from equity affiliates 24,281 — — 24,281

Provision for income taxes ( 821 ) ( 16,663 ) — ( 17,484 )

Benefit from (provision for) income taxes 803 ( 28,150 ) — ( 27,347 )

Net income 274,896 125,660 — 400,556

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Structured Business

Multifamily $ 444,635 $ 415,330 $ 5,468,222

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

Mezzanine / Preferred Equity 97,305 43,953 69,606

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

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Freddie Mac 1,924,773 1,770,976 756,827

Private Label 151,936 299,934 217,542

FHA 78,145 146,507 257,199

Private Label 44,925 151,936 299,934

SFR - Fixed Rate 43,762 27,314 19,328

4 unchanged sentences

Freddie Mac 2,081,749 1,662,010 715,530

Private Label 124,286 441,319 515,086

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

1 unchanged sentence

MSR Rate (MSR income as a % of loan commitments) 1.07 % 1.15 % 1.34 %

________________________________________

ARBOR REALTY TRUST, INC.

1 unchanged sentence

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

(1) 2022 includes $ 17.1 million of gains recognized on treasury futures related to Private Label loans sold, which is included in (loss) gain on derivative instruments, net in the consolidated statements of income.

December 31, 2025

36 unchanged sentences

SOFR Floor 0.10 % to 5.36 %

Land CA IO 2025 SOFR+ 4.00 %

— 125,877 47,977 —

SOFR Floor 0.15 %

Fixed 13.00 %

Office NY IO 2025 SOFR+ 3.50 %

Office NY IO / PI 2028 Fixed 1.00 %

— 33,410 33,159 —

Retail CT IO 2025 SOFR+ 3.50 %

Retail CT IO / PI 2026 SOFR+ 5.50 %

— 10,324 10,324 —

5 unchanged sentences

1,941,429 283,581 264,622 —

Land CA IO 2025 Fixed 0.00 %

— 9,333 9,333 —

Retail Various IO 2025 SOFR+ 3.50 %

Retail Various IO / PI 2026 SOFR+ 5.50 %

— 6,631 3,727 531

SOFR Floor 1.00 %

Fixed 12.00 %

Total Mezzanine Loans 1,941,429 290,212 268,349 531

1 unchanged sentence

Preferred equity investments less than 3% of carrying amount of total loans (6):

Multifamily Various IO / PI 2025 - 2033 Fixed 0.00 % to 16.00 %

Multifamily Various IO 2026 - 2033 Fixed 0.00 % to 16.00 %

1,162,113 198,127 189,066 —

Land TX IO 2025 Fixed 0.00 %

Land TX IO / PI 2026 Fixed 0.00 %

— 2,291 1,915 —

3 unchanged sentences

Other loans less than 3% of carrying amount of total loans (6):

Single‑Family Rental Various IO / PI 2025 SOFR + 4.90 %

— 3,082 3,078 —

SOFR Floor 0.25 %

Construction - Multifamily Various IO 2026 - 2027 SOFR+ 5.50 %

Construction - Multifamily Various IO 2026 - 2030 SOFR+ 4.25 % to 5.75 %

— 249,019 244,116 —

SOFR Floor 4.00 %

SOFR Floor 3.50 % to 4.00%

Total Other Loans — 249,019 244,116 —

19 unchanged sentences

Accretion of unearned revenue 22,418 33,501 41,125

Recoveries of reserves 12,959 4,776 1,500

Reversals/recoveries of reserves 406 12,959 4,776

Loan charge‑offs 128,337 15,709 —

5 unchanged sentences

Provision for loan losses ( 35,747 ) ( 68,472 ) ( 73,580 )

Reclassification to held-for-sale loans — — ( 36 )

Use of loan charge‑offs ( 128,337 ) ( 15,709 ) —

5 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 8. Financial Statements and Supplementary Data