ARBOR REALTY TRUST INC 10-K

Item 8. Financial Statements and Supplementary Data Page Report of Independent Registered Public Accounting Firm (PCAOB ID 42 ) 51 Consolidated Balance Sheets 53 Consolidated Statements of Income 54 Consolidated Statements of Changes in Equity 55 Consolidated Statements of Cash Flows 56 Notes to Consolidated Financial Statements 59 Schedule IV — Loans and Other Lending Investments 117 All other schedules are omitted because they are not applicable or the required information is shown in the consolidated financial statements or notes thereto. 50 Table of Contents Report of Independent Registered Public Accounting Firm To the Stockholders and the Board of Directors of Arbor Realty Trust, Inc. Opinion on the Financial Statements We have audited the accompanying consolidated balance sheets of Arbor Realty Trust, Inc. and subsidiaries (the Company) as of December 31, 2025 and 2024, the related consolidated statements of income, changes in equity and cash flows for each of the three years in the period ended December 31, 2025, and the related notes and financial statement schedule listed in the Index at Item 15(a) (collectively referred to as the “consolidated financial statements”). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company at December 31, 2025 and 2024, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2025, in conformity with U.S. generally accepted accounting principles. We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company's internal control over financial reporting as of December 31, 2025, based on criteria established in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework), and our report dated February 27, 2026 expressed an unqualified opinion thereon. Basis for Opinion These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company’s financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion. Critical Audit Matter The critical audit matter communicated below is a matter arising from the current period audit of the financial statements that was communicated or required to be communicated to the audit committee and that: (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective or complex judgments. 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. 51 Table of Contents 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”). 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 credit losses over the life of the loans. 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 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 We have served as the Company’s auditor since 2003. New York, New York February 27, 2026 52 Table of Contents ARBOR REALTY TRUST, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS ($ in thousands, except share and per share data) December 31, 2025 2024 Assets: Cash and cash equivalents $ 482,875 $ 503,803 Restricted cash 67,347 156,376 Loans and investments, net (allowance for credit losses of $ 145,971 and $ 238,967 ) 11,934,248 11,033,997 Loans held-for-sale, net 409,081 435,759 Capitalized mortgage servicing rights, net 340,842 368,678 Securities held-to-maturity, net (allowance for credit losses of $ 17,013 and $ 10,846 ) 156,087 157,154 Investments in equity affiliates 57,966 76,312 Real estate owned, net 498,938 176,543 Due from related party 6,534 12,792 Goodwill and other intangible assets 86,553 88,119 Other assets 454,432 481,448 Total assets $ 14,494,903 $ 13,490,981 Liabilities and Equity: Credit and repurchase facilities $ 5,149,651 $ 3,559,490 Securitized debt 3,468,258 4,622,489 Senior unsecured notes 2,029,078 1,236,147 Convertible senior unsecured notes — 285,853 Junior subordinated notes to subsidiary trust issuing preferred securities 145,497 144,686 Notes payable - real estate owned 222,965 74,897 Due to related party 501 4,474 Due to borrowers 33,451 47,627 Allowance for loss-sharing obligations 97,579 83,150 Other liabilities 280,770 280,198 Total liabilities 11,427,750 10,339,011 Commitments and contingencies (Note 15) Equity: Arbor Realty Trust, Inc. stockholders’ equity: Preferred stock, cumulative, redeemable, $ 0.01 par value: 100,000,000 shares authorized, shares issued and outstanding by period: 633,683 633,684 Special voting preferred - 16,169,858 and 16,293,589 shares 6.375 % Series D - 9,200,000 shares 6.25 % Series E - 5,750,000 shares 6.25 % Series F - 11,342,000 shares Common stock, $ 0.01 par value: 500,000,000 shares authorized - 195,491,855 and 189,259,435 shares issued and outstanding 1,955 1,893 Additional paid-in capital 2,454,312 2,375,469 (Accumulated deficit) retained earnings ( 136,597 ) 13,039 Total Arbor Realty Trust, Inc. stockholders’ equity 2,953,353 3,024,085 Noncontrolling interest 113,800 127,885 Total equity 3,067,153 3,151,970 Total liabilities and equity $ 14,494,903 $ 13,490,981 ________________________________________ Note: Our consolidated balance sheets include assets and liabilities of consolidated variable interest entities, or VIEs, as we are the primary beneficiary of these VIEs. At December 31, 2025 and 2024, assets of our consolidated VIEs totaled $ 4,662,021 and $ 6,124,925 , respectively, and the liabilities of our consolidated VIEs totaled $ 3,477,848 and $ 4,637,744 , respectively. See Note 16 for discussion of our VIEs. See Notes to Consolidated Financial Statements. 53 Table of Contents ARBOR REALTY TRUST, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME ($ in thousands, except share and per share data) Year Ended December 31, 2025 2024 2023 Interest income $ 940,008 $ 1,167,872 $ 1,331,219 Interest expense 701,836 804,615 903,228 Net interest income 238,172 363,257 427,991 Other revenue: Gain on sales, including fee-based services, net 70,669 74,932 72,522 Mortgage servicing rights 54,532 51,272 69,912 Servicing revenue, net 109,617 125,896 130,449 Property operating income 21,347 7,226 5,708 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 Other expenses: Employee compensation and benefits 174,145 181,694 159,788 Selling and administrative 59,805 54,931 51,260 Property operating expenses 27,980 7,394 5,897 Depreciation and amortization 23,214 9,555 9,743 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, (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 ) (Loss) gain on real estate ( 9,151 ) 3,813 — Income from equity affiliates 50,880 5,772 24,281 Provision for income taxes ( 18,779 ) ( 13,478 ) ( 27,347 ) Net income 157,829 283,919 400,556 Preferred stock dividends 41,369 41,369 41,369 Net income attributable to noncontrolling interest 9,033 19,278 29,122 Net income attributable to common stockholders $ 107,427 $ 223,272 $ 330,065 Basic earnings per common share $ 0.56 $ 1.18 $ 1.79 Diluted earnings per common share $ 0.56 $ 1.18 $ 1.75 Weighted average shares outstanding: Basic 192,956,154 188,701,149 184,641,642 Diluted 209,733,331 205,526,610 218,843,613 See Notes to Consolidated Financial Statements. 54 Table of Contents ARBOR REALTY TRUST, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY ($ in thousands, except shares) Preferred Stock Shares Preferred Stock Value Common Stock Shares Common Stock Par Value Additional Paid‑in Capital Retained Earnings (Accumulated Deficit) Total Arbor Realty Trust, Inc. Stockholders’ Equity Noncontrolling Interest Total Equity 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 Issuance - common stock — — 13,113,296 131 193,530 — 193,661 — 193,661 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 Distributions - common stock — — — — — ( 311,884 ) ( 311,884 ) — ( 311,884 ) Distributions - preferred stock — — — — — ( 41,383 ) ( 41,383 ) — ( 41,383 ) Distributions - noncontrolling interest — — — — — — — ( 27,373 ) ( 27,373 ) Net income — — — — — 371,434 371,434 29,122 400,556 Balance — December 31, 2023 42,585,589 633,684 188,505,264 1,885 2,367,188 115,216 3,117,973 136,632 3,254,605 Issuance - common stock — — 661,708 7 10,023 — 10,030 — 10,030 Repurchase - common stock — — ( 935,739 ) ( 9 ) ( 11,399 ) — ( 11,408 ) — ( 11,408 ) Stock-based compensation, net — — 1,028,202 10 9,657 — 9,667 — 9,667 Distributions - common stock — — — — — ( 325,435 ) ( 325,435 ) — ( 325,435 ) Distributions - preferred stock — — — — — ( 41,383 ) ( 41,383 ) — ( 41,383 ) Distributions - noncontrolling interest — — — — — — — ( 28,025 ) ( 28,025 ) Net income — — — — — 264,641 264,641 19,278 283,919 Balance — December 31, 2024 42,585,589 633,684 189,259,435 1,893 2,375,469 13,039 3,024,085 127,885 3,151,970 Issuance - common stock — — 5,898,957 59 70,459 — 70,518 — 70,518 Repurchase - common stock — — ( 257,796 ) ( 3 ) ( 2,004 ) — ( 2,007 ) — ( 2,007 ) Stock-based compensation, net — — 591,259 6 10,388 — 10,394 — 10,394 Distributions - common stock — — — — — ( 257,049 ) ( 257,049 ) — ( 257,049 ) Distributions - preferred stock — — — — — ( 41,383 ) ( 41,383 ) — ( 41,383 ) 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 See Notes to Consolidated Financial Statements. 55 Table of Contents ARBOR REALTY TRUST, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) Year Ended December 31, 2025 2024 2023 Operating activities: Net income $ 157,829 $ 283,919 $ 400,556 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 23,214 9,555 9,743 Stock-based compensation 13,789 14,232 14,940 Amortization and accretion of interest and fees, net 14,033 ( 705 ) ( 3,612 ) 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 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 ) Distributions from operations of equity affiliates 56,965 17,131 27,542 Loss on extinguishment of debt 2,919 412 1,561 Impairment loss on real estate owned 20,500 — — Change in fair value of held-for-sale loans ( 2,794 ) ( 609 ) ( 2,536 ) (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 ) Net cash provided by operating activities 372,381 461,517 235,857 Investing Activities: Loans and investments funded, originated and purchased, net ( 3,693,370 ) ( 1,600,461 ) ( 1,362,171 ) Payoffs and paydowns of loans and investments 2,421,342 2,781,658 3,359,810 Deferred fees 33,662 25,792 21,299 Proceeds from sale of real estate, net — 14,103 — Contributions to equity affiliates ( 11,706 ) ( 19,593 ) ( 18,986 ) Distributions from equity affiliates 23,966 11,224 15,552 Payoffs and paydowns of securities held-to-maturity 222 483 4,626 Investments in real estate, net ( 40,716 ) ( 3,471 ) — 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: Proceeds from credit and repurchase facilities 12,840,802 9,350,727 9,148,451 Payoffs and paydowns of credit and repurchase facilities ( 11,201,066 ) ( 9,025,305 ) ( 9,747,252 ) 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 senior unsecured notes 900,000 100,000 95,000 Payoffs and paydowns of senior unsecured notes ( 95,000 ) ( 200,000 ) ( 149,600 ) Redemption of OP Units ( 1,605 ) — — 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 ) 56 Table of Contents ARBOR REALTY TRUST, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (continued) (in thousands) 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 Cash, cash equivalents and restricted cash at beginning of period 660,179 1,537,207 1,248,165 Cash, cash equivalents and restricted cash at end of period $ 550,222 $ 660,179 $ 1,537,207 See Notes to Consolidated Financial Statements. 57 Table of Contents ARBOR REALTY TRUST, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (continued) (in thousands) Year Ended December 31, 2025 2024 2023 Reconciliation of cash, cash equivalents and restricted cash: Cash and cash equivalents at beginning of period $ 503,803 $ 928,974 $ 534,357 Restricted cash at beginning of period 156,376 608,233 713,808 Cash, cash equivalents and restricted cash at beginning of period $ 660,179 $ 1,537,207 $ 1,248,165 Cash and cash equivalents at end of period $ 482,875 $ 503,803 $ 928,974 Restricted cash at end of period 67,347 156,376 608,233 Cash, cash equivalents and restricted cash at end of period $ 550,222 $ 660,179 $ 1,537,207 Supplemental cash flow information: Cash used to pay interest $ 665,723 $ 782,047 $ 861,141 Cash used to pay taxes 26,698 28,813 30,129 Supplemental schedule of non-cash investing and financing activities: Real estate acquired in settlement of loans and investments, net 583,123 278,330 39,400 Settlement of loans and investments, net of real estate ( 603,176 ) ( 279,480 ) ( 39,400 ) Derecognition of real estate owned 260,414 177,146 — Loan funded in conjunction with real estate sold ( 271,075 ) ( 182,485 ) — Distributions accrued on preferred stock 7,010 7,010 7,010 See Notes to Consolidated Financial Statements. 58 Table of Contents ARBOR REALTY TRUST, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Note 1 — Description of Business Arbor is a Maryland corporation formed in 2003. We are a nationwide REIT and direct lender, providing loan origination and servicing for commercial real estate assets. We operate through two business segments: our Structured Business and our Agency Business. Through our Structured Business, we invest in a diversified portfolio of structured finance assets in the multifamily, SFR and commercial real estate markets, primarily consisting of bridge loans, in addition to mezzanine loans, junior participating interests in first mortgages and preferred equity. We also invest in real estate-related joint ventures and may directly acquire real property and invest in real estate-related notes and certain mortgage-related securities. Through our Agency Business, we originate, sell and service a range of multifamily finance products through Fannie Mae and Freddie Mac, Ginnie Mae, FHA and HUD. We retain the servicing rights and asset management responsibilities on substantially all loans we originate and sell under the GSE and HUD programs. We are an approved Fannie Mae DUS lender nationally, a Freddie Mac Optigo ® Conventional Loan and SBL lender, seller/servicer, nationally and a HUD MAP and LEAN senior housing/healthcare lender nationally. We also originate and retain the servicing rights on permanent financing loans underwritten using the guidelines of our existing agency loans sold to the GSEs, which we refer to as “Private Label” loans and originate and sell finance products through CMBS programs. We either sell the Private Label loans instantaneously or pool and securitize them and sell certificates in the securitizations to third-party investors, while retaining the highest risk bottom tranche certificate of the securitization. Substantially all of our operations are conducted through our operating partnership, ARLP, for which we serve as the indirect general partner, and ARLP’s subsidiaries. We are organized to qualify as a REIT for U.S. federal income tax purposes. A REIT is generally not subject to federal income tax on that portion of its taxable income that is distributed to its stockholders; provided that at least 90% of its taxable income is distributed and provided that certain other requirements are met. Certain of our assets that produce non-qualifying REIT income, primarily within the Agency Business, are operated through TRS entities, which are part of our TRS Consolidated Group and are subject to U.S. 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 or non-real estate-related business. Note 2 — Basis of Presentation and Significant Accounting Policies Basis of Presentation The consolidated financial statements and accompanying notes have been prepared in accordance with GAAP. In our opinion, all adjustments considered necessary for a fair presentation of our financial position, results of operations and cash flows have been included and are of a normal and recurring nature. Principles of Consolidation The consolidated financial statements include our financial statements and the financial statements of our wholly owned subsidiaries, partnerships and other joint ventures in which we have a controlling interest, including variable interest entities (“VIEs”) of which we are the primary beneficiary. Entities in which we have a significant influence are accounted for under the equity method. Our VIEs are described in Note 16. All significant intercompany transactions and balances have been eliminated in consolidation. Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that could materially affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. The ultimate impact of inflation, a currently high interest rate environment, bank failures, tightening of capital markets and reduced property values, both globally and to our business, makes any estimate or assumption at December 31, 2025 inherently less certain. 59 Table of Contents ARBOR REALTY TRUST, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued) Significant Accounting Policies Cash and Cash Equivalents . All highly liquid investments with original maturities of three months or less are considered to be cash equivalents. We place our cash and cash equivalents in high quality financial institutions. The consolidated account balances at each institution periodically exceed FDIC insurance coverage limits and we believe that this risk is not significant. Loans, Investments and Securities. 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. We invest in preferred equity interests that, in some cases, allow us to participate in a percentage of the underlying property’s cash flows from operations and proceeds from a sale or refinancing. 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 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. Allowance for Credit Losses. We estimate allowances for credit losses on our structured loans and investments (including unfunded loan commitments), loss-sharing obligations related to the Fannie Mae DUS program and our held-to-maturity debt securities under CECL based on current expected credit losses for the life of the loan and investment. Our estimation of credit losses utilizes information obtained from internal and external sources relating to past events, current conditions and reasonable and supportable forecasts about the future. We have licensed a third-party model to assist with the measurement of expected credit losses, which utilizes historical loss experience on similar loans. The loss factors are determined through the generation of probability of defaults and loss given defaults for similar loans with similar credit (the "general reserve"). These results require a significant amount of judgment applied in selecting inputs and analyzing the results produced by the models to determine the general reserve. Changes in such estimates can significantly affect our expected credit losses. We have a CECL working group consisting of members of accounting, asset management, credit risk management and capital markets that is responsible for, among other things, regularly reviewing the CECL methodology, including the adequacy of allowance levels, and ensuring that it is designed and applied in accordance with GAAP. Our method for calculating the estimate of expected credit loss considers historical experience, current conditions, and reasonable and supportable forecasts about the future. The reasonable and supportable forecast period is determined based on our assessment of the most likely scenario of assumptions and plausible outcomes for the macroeconomic environment, level of historical loss forecast estimates, material changes in growth and credit strategy and other factors that may affect our loss experience. The macroeconomic factors that have a significant influence on our estimate of expected credit losses include price indices for commercial real estate, unemployment rates, and interest rates. We are currently using a one year reasonable and supportable forecast period that we regularly evaluate to determine if a change is needed. Beyond our reasonable and supportable forecast period, we generally revert to historical loss information over the remaining loan/asset period, taken from a period that most accurately reflects the expectation of conditions expected to exist during the period of reversion. We may adjust historical loss information for differences in risk that may not reflect the characteristics of our current portfolio, including, but not limited to, loan-to-value and debt service coverage ratios, among other relevant factors. The method of reversion selected represents the best estimate of the collectability of the investments and is reevaluated each reporting period. We generally expect to use an average historical loss for reversion, utilizing a straight-line method for the remaining life of the investments. We also perform a qualitative assessment beyond model estimates and apply qualitative adjustments as necessary. Our qualitative analysis includes a review of data that may directly impact our estimates including internal and external information about the loan or property including current market conditions, asset specific conditions, property operations or borrower/sponsor details (i.e., refinance, sale, loan modification, bankruptcy) which allows us to determine the amount of the expected loss more accurately and reasonably for these investments. We also evaluate the contractual life of our assets to determine if changes are needed for contractual extension options, renewals, modifications, and prepayments. To the extent possible, we estimate our general reserve using a pooling approach for homogeneous assets with similar risk characteristics with the goal of enhancing the precision of their estimate. If particular assets no longer display risk characteristics that are similar to those of the pool, we may decide to revise our pools or perform an individual assessment of expected credit losses. 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 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, 60 Table of Contents ARBOR REALTY TRUST, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued) 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. During the loan review process, if we determine that it is probable that we will be unable to collect all amounts due for both principal and interest according to the contractual terms of a loan because the borrower is experiencing financial difficulty, or where foreclosure is probable, we evaluate whether that loan is impaired and a specific reserve is required. 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 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 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 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. Charge-offs to the allowance for credit losses occur when losses are confirmed through the receipt of cash or other consideration from the completion of a sale; when a modification or restructuring takes place in which we grant a concession to a borrower or agree to a discount in full or partial satisfaction of the loan; when we take ownership and control of the underlying collateral in full satisfaction of the loan; when loans are reclassified as other investments; or when significant collection efforts have ceased and it is highly likely that a loss has been realized. We record a charge-off on a restructured loan when we grant a concession to the borrower in the form of principal forgiveness related to the payoff or the substitution or addition of a new debtor for the original borrower or when we incur costs on behalf of the borrower related to the modification, payoff or the substitution or addition of a new debtor for the original borrower. 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 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, generally 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. During the period prior to its sale, interest income on a loan held-for-sale is calculated in accordance with the terms of the individual loan and the loan origination fees and direct loan origination costs are deferred until the loan is sold. All of our held-for-sale loans are financed with matched borrowings from credit facilities contracted to finance such loans. Interest income and expense are earned or incurred after a loan is closed and before a loan is sold. Transfers of financial assets are accounted for as sales when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated, put presumptively beyond the reach of the entity, even in bankruptcy, (2) the transferee (or if the transferee is an entity whose sole purpose is to engage in securitization and the entity is constrained from pledging or exchanging the assets it receives, each third-party holder of its beneficial interests) has the right to pledge or exchange the transferred financial assets, and (3) we or our agents do not maintain effective control over the transferred financial assets or third-party beneficial interest related to those transferred assets through an agreement to repurchase them before their maturity. We have determined that all loans sold have met these specific conditions and account for all transfers of mortgage loans as completed sales. Allowance for Loss-Sharing Obligations. When a loan is sold under the Fannie Mae DUS program, we undertake an obligation to partially guarantee the performance of the loan. Generally, we are responsible for losses equal to the first 5 % of the UPB and a portion of any additional losses to an overall maximum of 20 % of the original principal balance. 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 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. 61 Table of Contents ARBOR REALTY TRUST, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued) At inception, a liability for the fair value of the obligation undertaken in issuing the guaranty is recognized. In determining the fair value of the guaranty obligation, we consider the risk profile of the collateral and the historical loss experience in our portfolio. The guaranty obligation is removed only upon either the expiration or settlement of the guaranty. We evaluate the allowance for loss-sharing obligations by monitoring the performance of each loss-sharing loan for events or conditions that may signal a potential default. Historically, initial loss recognition occurs at or before a loan becomes 60 days delinquent. In instances where payment under the guaranty on a loan is determined to be probable and estimable (as the loan is probable of, or is, in foreclosure), we record a liability for the estimated loss-sharing specific reserve by transferring the guarantee obligation recorded on the loan to the specific reserve with any adjustments to this reserve amount recorded in provision for loss sharing in the statements of income. The amount of the allowance considers our assessment of the likelihood of repayment by the borrower or key principal(s), the risk characteristics of the loan, the loan’s risk rating, historical loss experience, adverse situations affecting individual loans, the estimated disposition value of the underlying collateral, and the level of risk sharing. We regularly monitor the specific reserves and update loss estimates as current information is received. Capitalized Mortgage Servicing Rights. We recognize, as separate assets, rights to service mortgage loans for others, including such rights from our origination of mortgage loans sold with the servicing rights retained, as well as rights associated with acquired MSRs. Income from MSRs related to loans we originate are recognized when we record a derivative asset upon the commitment to originate a loan with a borrower and sell the loan to an investor. This commitment asset is recognized at fair value based on the discounted expected net cash flows associated with the servicing of the loan. When a mortgage loan we originate is sold, we retain the right to service the loan and recognize the MSR at the initial capitalized valuation. We amortize our MSRs using the amortization method, which requires the MSRs to be amortized over the period of estimated net servicing income or loss and that the servicing assets or liabilities be assessed for impairment, or increased obligation, based on the fair value at each reporting date. Amortization of MSRs is recorded as a reduction of servicing revenues, net in the consolidated statements of income. The following assumptions were used in calculating the fair value of our MSRs for the periods presented: Key rates: We used discount rates ranging from 8 % to 14 %, representing a weighted average discount rate of 12 %, based on our best estimate of market discount rates to determine the present value of MSRs. Servicing Cost: A market participant’s estimated future cost to service the loan for the estimated life of the MSR is subtracted from the estimated future cash flows. Estimated Life: We estimate the life of our MSRs based upon the stated yield maintenance and/or prepayment protection term of the underlying loan and are reduced using prepayment rates that consider the note rate of the loan and the expiration of various types of prepayment penalty and/or lockout provisions prior to that stated maturity date. MSRs are initially recorded at fair value and are carried at amortized cost. The fair value of MRSs from loans we originate and sell are estimated considering market prices for similar MSRs, when available, and by estimating the present value of the future net cash flows of the capitalized MSRs, net of adequate compensation for servicing. Adequate compensation is based on the market rate of similar servicing contracts. The fair value of MSRs acquired approximate the purchase price paid. We evaluate the MSR portfolio for impairment on a quarterly basis based on the difference between the aggregate carrying amount of the MSRs and their aggregate fair value. We engage an independent third-party valuation expert to assist in determining an estimated fair value of our MSR portfolio on a quarterly basis. For purposes of impairment evaluation, the MSRs are stratified based on predominant risk characteristics of the underlying loans, which we have identified as loan type, note rate and yield maintenance provisions. To the extent that the carrying value of the MSRs exceeds fair value, a valuation allowance is established. We record write-offs of MSRs related to loans that were repaid prior to their expected maturity and loans that have defaulted and determined to be unrecoverable. When this occurs, the write-off is recorded as a direct write-down to the carrying value of MSRs and is included as a component of servicing revenue, net in the consolidated statements of income. This direct write-down permanently reduces the carrying value of the MSRs, precluding recognition of subsequent recoveries. For loans that payoff prior to maturity, we may collect a prepayment fee which is included as a component of servicing revenue, net. Investments in Equity Affiliates. 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 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 62 Table of Contents ARBOR REALTY TRUST, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued) 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. We typically use independent third-party valuation specialists to assist us in estimating the fair value of intangible assets and in assigning their estimated useful lives. The fair value estimates are based on available historical information and on future expectations and assumptions we deem reasonable. We generally use an income-based valuation method to estimate the fair value of intangible assets, which discounts expected future cash flows to present value using estimates and assumptions we deem reasonable. 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 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. Goodwill and indefinite-lived intangible assets are not amortized, while finite-lived intangible assets are amortized over their estimated useful lives on a straight-line basis. Indefinite-lived intangible assets, including goodwill, are tested for impairment whenever events or changes in circumstances indicate that the carrying value of such assets may not be recoverable. In addition, with respect to goodwill, an impairment analysis is performed at least annually. We have elected to make the first day of our fiscal fourth quarter the annual impairment assessment date for goodwill. We first assess qualitative factors to determine whether it is more likely than not that the fair value is less than the carrying value. If, based on that assessment, we believe it is more likely than not that the fair value is less than the carrying value, then a two-step goodwill impairment test is performed. Based on the impairment analysis performed as of October 1, 2025, there were no indicators that the indefinite-lived intangible assets, including goodwill, were impaired and there were no events or changes in circumstances indicating impairment at December 31, 2025. Real Estate Owned and Held-For-Sale. Real estate acquired is recorded at its estimated fair value, less costs to sell if classified as held for sale, at acquisition and is shown net of accumulated depreciation and impairment charges. Costs incurred in connection with the acquisition of a property are capitalized. We allocate our real estate acquisitions to land, building, tenant improvements, origination asset of the in-place leases, intangibles for the value of any above or below market leases at fair value and to any other identified intangible assets or liabilities based on their relative fair values. 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 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. Ordinary repairs and maintenance which are not reimbursed by the tenants are expensed as incurred. Major replacements and betterments which improve or extend the life of the asset are capitalized and depreciated over their estimated useful life. 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 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. Impairment charges may be necessary in the event discount rates, capitalization rates, lease-up periods, future economic conditions, and other relevant factors vary significantly from those assumed in valuing the property. Real estate is classified as held-for-sale when we commit to a plan of sale, the asset is available for immediate sale, there is an active program to locate a buyer, and it is probable the sale will be completed within one year . Real estate assets that are expected to be disposed of are valued at the lower of the asset’s carrying amount or its fair value less costs to sell. 63 Table of Contents ARBOR REALTY TRUST, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued) We recognize sales of real estate properties, including the respective gains and losses, upon closing, when control of the asset transfers to the buyer, when it is probable that we will collect substantially all of the agreed upon consideration, and we are not obligated to perform significant activities after the sale. Hedging Activities and Derivatives . We measure derivative instruments at fair value and record them as assets or liabilities. Fair value adjustments will affect either accumulated other comprehensive income until the hedged item is recognized in earnings, or net income depending on whether the derivative instrument qualifies as a hedge for accounting purposes and, if so, the nature of the hedging activity. We use derivatives for hedging purposes rather than trading or speculation. Fair values are estimated based on current market data from financial sources that trade such instruments and are based on prevailing market data and derived from third-party proprietary models based on well recognized financial principles and reasonable estimates about relevant future market conditions. The accounting for changes in the fair value of derivatives depends on the intended use of the derivative, whether we have elected to designate a derivative in a hedging relationship and apply hedge accounting and whether the hedging relationship has satisfied the criteria necessary to apply hedge accounting. Derivatives designated and qualifying as a hedge of the exposure to changes in the fair value of an asset, liability, or firm commitment attributable to a particular risk, such as interest rate risk, are considered fair value hedges. Derivatives designated and qualifying as a hedge of the exposure to variability in expected future cash flows, or other types of forecasted transactions, are considered cash flow hedges. Hedge accounting generally provides for the matching of the timing of gain or loss recognition on the hedging instrument with the recognition of the changes in the fair value of the hedged asset or liability that are attributable to the hedged risk in a fair value hedge or the earnings effect of the hedged forecasted transactions in a cash flow hedge. These derivative instruments must be effective in reducing risk exposure to qualify for hedge accounting. When the terms of an underlying transaction are modified, or when the underlying hedged item ceases to exist, all changes in the fair value of the instrument are marked-to-market with changes in value included in net income for each period until the derivative instrument matures or is settled. Any derivative instrument used for risk management that does not meet the hedging criteria is marked-to-market with the changes in value included in earnings. In cases where a derivative instrument is terminated early, any gain or loss is generally amortized over the remaining life of the hedged item. We may also enter into derivative contracts that are intended to economically hedge certain risks, even though hedge accounting does not apply, or we elect not to apply hedge accounting. The ineffective portion of a derivative’s change in fair value is recognized immediately in earnings. In connection with our interest rate risk management, we may hedge a portion of our interest rate risk by entering into derivative instrument contracts to manage differences in the amount, timing, and duration of our expected cash receipts and our expected cash payments principally related to our investments and borrowings. Our objectives in using interest rate derivatives are to add stability to interest income and to manage our exposure to interest rate movements. To accomplish this objective, we have used, and may again in the future, use treasury futures and interest rate and credit default swaps as part of our interest rate risk management strategy. Instruments designated as cash flow hedges involve the receipt of variable-rate amounts from a counterparty in exchange for us making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. Our rate lock and forward sales commitments associated with the Agency Business meet the definition of a derivative and are recorded at fair value. The estimated fair value of rate lock commitments includes the effects of interest rate movements as well as 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. The estimated fair value of forward sale commitments includes the effects of interest rate movements between the trade date and balance sheet date. Our treasury futures associated with (1) our held-for-sale Agency Business Private Label loans, and (2) our Structured Business SFR loans, do not meet the criteria for hedge accounting and are tied to the five-year and ten-year treasury rates. Our treasury futures are cleared by a central clearing house and variation margin payments (made in cash) are treated as a legal settlement of the derivative itself, as opposed to a pledge of collateral. Realized and unrealized gains and losses related to our treasury futures are recorded through earnings. Revenue Recognition. Interest income is recognized on the accrual basis as it is earned. In certain instances, the borrower pays an additional amount of interest at the time the loan is closed, an origination fee, a prepayment fee, an exit fee and/or deferred interest upon maturity. In some cases, interest income may also include the amortization or accretion of premiums and discounts arising from the purchase or origination of the loan or security. This additional income, net of any direct loan origination costs incurred, is deferred and accreted into interest income on an effective yield or “interest” method adjusted for actual prepayment activity over the life of the related loan or security as a yield adjustment. We record interest on modified loans on an accrual basis to the extent the modified loan is contractually current. Income recognition is suspended and all accrued interest to date is reversed for loans when, in our opinion, a full recovery of all contractual principal and/or interest is not probable. Income recognition is resumed when the loan becomes contractually current, and performance is resumed. We record interest income on certain impaired loans to the extent cash is received, as the borrower continues to make interest payments. 64 Table of Contents ARBOR REALTY TRUST, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued) 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. 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. We will analyze these interest reserves on a periodic basis and determine if any additional interest reserves are needed. 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 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. These equity kickers have the potential to generate additional revenues to us as a result of excess cash flow distributions and/or as appreciated properties are sold or refinanced. Gain on sales, including fee-based services, net — Gain on sales, including fee-based services, net includes commitment fees, broker fees, loan assumption fees, loan origination fees and gains on sale of loans of our Agency Business. In some instances, the borrower pays an additional amount of interest at the time the loan is closed, an origination fee, net of any direct loan origination costs incurred, which is recognized upon the sale of the loan. Revenue recognition occurs when the related services are performed, unless significant contingencies exist, and for the sale of loans, when all the incidence of ownership passes to the buyer. Interest income is recognized on the accrual basis as it is earned from loans held-for-sale. Property operating income — Property operating income represents income associated with the operations of commercial real estate properties classified as real estate owned. We recognize revenue for these activities when the fees are fixed or determinable, or are evidenced by an arrangement, collection is reasonably assured and the services under the arrangement have been provided. Other income (loss), net — Other income (loss), net represents loan structuring, modification and defeasance, as well as broker fees and miscellaneous asset management fees associated with our loan and investment portfolio. We recognize these forms of income when the fees are fixed or determinable, are evidenced by an arrangement, collection is reasonably assured and the services under the arrangement have been provided. Leases. We determine if an arrangement is a lease at inception. Our right to use an underlying asset for the lease term is recorded as an operating lease right-of-use (“ROU”) asset and our obligation to make lease payments arising from the lease is recorded as a lease liability. Operating lease ROU assets and lease liabilities are included in other assets and other liabilities, respectively, in our consolidated balance sheets. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. Our leases do not provide an implicit rate; therefore, we use our incremental borrowing rate in determining the present value of lease payments. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Lease expense for lease payments is recognized on a straight-line basis over the lease term. Leases with an initial term of twelve months or less are expensed as incurred. Stock-Based Compensation. We grant stock awards to certain of our employees and directors, consisting of shares of our common stock that vest immediately or annually over a multi-year period, subject to the recipient’s continued service to us. We record stock-based compensation expense at the grant date fair value of the related stock-based award at the grant date (for the portion that vests immediately) or ratably over the respective vesting periods. Dividends are paid on restricted stock as dividends are paid on shares of our common stock whether or not they are vested. Stock-based compensation is disclosed in our consolidated statements of income under “employee compensation and benefits” for employees and under “selling and administrative” expense for the Board of Directors. Income Taxes. 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 65 Table of Contents 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. Certain REIT income may be subject to state and local income taxes. The Agency Business mainly operates through a TRS, which is a part of our TRS Consolidated Group and is subject to U.S. 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 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. Deferred income tax assets and liabilities are calculated based on temporary differences between our GAAP consolidated financial statements and the federal, state, local tax basis of assets and liabilities as of the consolidated balance sheets. We evaluate the realizability of our deferred tax assets (e.g., net operating loss and capital loss carryforwards) and recognize a valuation allowance if, based on the available evidence, it is more likely than not that some portion or all our deferred tax assets will not be realized. When evaluating the realizability of our deferred tax assets, we consider estimates of expected future taxable income, existing and projected book/tax differences, tax planning strategies available and the general and industry specific economic outlook. We periodically evaluate tax positions to determine whether it is more likely than not that such positions would be sustained upon examination by a tax authority for all open tax years, as defined by the statute of limitations, based on their technical merits. We report interest and penalties related to tax uncertainties as a component of the income tax provision. Earnings Per Share. We present both basic and diluted earnings per share (“EPS”). Basic EPS excludes dilution and is computed by dividing net income available to common stockholders by the weighted average number of shares outstanding for the period. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock, where such exercise or conversion would result in a lower EPS amount. Reclassification 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 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. 66 Table of Contents ARBOR REALTY TRUST, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued) Recently Issued Accounting Pronouncements Description Effective Date Effect on Financial Statements 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 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. 67 Table of Contents ARBOR REALTY TRUST, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued) Note 3 — Loans and Investments Our Structured Business loan and investment portfolio consists of ($ in thousands): December 31, 2025 Percent of Total Loan Count Wtd. Avg. Pay Rate (1) Wtd. Avg. Remaining Months to Maturity (2) Wtd. Avg. First Dollar LTV Ratio (3) Wtd. Avg. Last Dollar LTV Ratio (4) Bridge loans (5) $ 11,371,758 94 % 524 6.39 % 12.9 0 % 77 % Mezzanine loans 290,212 2 % 65 7.84 % 52.3 59 % 78 % Construction - multifamily 249,019 2 % 9 9.13 % 24.6 0 % 60 % 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 % Allowance for credit losses ( 145,971 ) Unearned revenue ( 32,888 ) Loans and investments, net (6) $ 11,934,248 December 31, 2024 Bridge loans (5) $ 10,893,106 96 % 688 6.89 % 11.6 0 % 80 % Mezzanine loans 255,556 2 % 58 7.52 % 51.8 51 % 82 % 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 % Total UPB 11,304,956 100 % 776 6.90 % 13.1 2 % 80 % Allowance for credit losses ( 238,967 ) Unearned revenue ( 31,992 ) Loans and investments, net (6) $ 11,033,997 ________________________________________ (1) “Weighted Average Pay Rate” is a weighted average, based on the UPB of each loan in our portfolio, of the interest rate required to be paid as stated in the individual loan agreements. Certain loans and investments that require an accrual rate to be paid at maturity are not included in the weighted average pay rate as shown in the table. (2) Including extension options, the weighted average remaining months to maturity at December 31, 2025 and 2024 was 19.9 and 22.7, respectively. (3) The “First Dollar Loan-to-Value (“LTV”) Ratio” is calculated by comparing the total of our senior most dollar and all senior lien positions within the capital stack to the fair value of the underlying collateral to determine the point at which we will absorb a total loss of our position. (4) The “Last Dollar LTV Ratio” is calculated by comparing the total of the carrying value of our loan and all senior lien positions within the capital stack to the fair value of the underlying collateral to determine the point at which we will initially absorb a loss. (5) At December 31, 2025 and 2024, bridge loans included 298 and 423 , respectively, of SFR loans with a total gross loan commitment of $ 4.73 billion and $ 4.18 billion, respectively, of which $ 3.18 billion and $ 1.99 billion, respectively, was funded. (6) Excludes exit fee receivables of $ 43.0 million and $ 46.6 million at December 31, 2025 and 2024, respectively, which is included in other assets on the consolidated balance sheets. Concentration of Credit Risk We are subject to concentration risk in that, at December 31, 2025, the UPB related to 65 loans with five different borrowers represented 9 % of total assets. At December 31, 2024, the UPB related to 83 loans with five different borrowers represented 10 % of total assets. During both 2025 and 2024, no single loan or investment represented more than 10% of our total assets and no single investor group generated over 10% of our revenue. See Note 19 for details on our concentration of related party loans and investments. We assign a credit risk rating of pass, pass/watch, special mention, substandard or doubtful to each loan and investment, with a pass rating being the lowest risk and a doubtful rating being the highest risk. Each credit risk rating has benchmark guidelines that pertain to debt-service coverage ratios, LTV ratios, borrower strength, asset quality, payment status in accordance with current contractual terms, 68 Table of Contents ARBOR REALTY TRUST, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued) and funded cash reserves. 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 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): UPB by Origination Year Total Wtd. Avg. First Dollar LTV Ratio Wtd. Avg. Last Dollar LTV Ratio Asset Class / Risk Rating 2025 2024 2023 2022 2021 Prior Multifamily: Pass $ 556,801 $ 87,533 $ 22,253 $ 9,832 $ 34,843 $ 26,758 $ 738,020 Pass/Watch 1,195,412 429,300 108,276 376,064 526,961 159,810 2,795,823 Special Mention 211,404 186,984 185,088 1,788,580 2,028,742 44,479 4,445,277 Substandard 4,990 47,258 21,100 297,729 307,350 — 678,427 Doubtful — 9,460 — 153,443 28,826 24,565 216,294 Total Multifamily $ 1,968,607 $ 760,535 $ 336,717 $ 2,625,648 $ 2,926,722 $ 255,612 $ 8,873,841 3 % 81 % Single-Family Rental: Percentage of portfolio 73 % Pass $ 98,510 $ — $ — $ — $ — $ — $ 98,510 Pass/Watch 859,819 1,006,016 571,891 448,769 71,916 34,216 2,992,627 Special Mention 36,230 — — 52,943 — 4,600 93,773 Total Single-Family Rental $ 994,559 $ 1,006,016 $ 571,891 $ 501,712 $ 71,916 $ 38,816 $ 3,184,910 0 % 64 % Office: Percentage of portfolio 26 % Pass/Watch $ — $ — $ — $ — $ — $ 33,410 $ 33,410 Total Office $ — $ — $ — $ — $ — $ 33,410 $ 33,410 0 % 88 % Retail: Percentage of portfolio < 1 % Substandard $ — $ — $ — $ — $ — $ 16,424 $ 16,424 Doubtful — — — — — 531 531 Total Retail $ — $ — $ — $ — $ — $ 16,955 $ 16,955 0 % 97 % Land: Percentage of portfolio < 1 % Pass/Watch $ — $ — $ — $ — $ — $ 2,291 $ 2,291 Total Land $ — $ — $ — $ — $ — $ 2,291 $ 2,291 0 % 77 % Commercial: Percentage of portfolio < 1 % Doubtful $ — $ — $ — $ — $ — $ 1,700 $ 1,700 Total Commercial $ — $ — $ — $ — $ — $ 1,700 $ 1,700 0 % 100 % Percentage of portfolio < 1 % 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, net $ — $ 3,000 $ — $ 24,476 $ 31,968 $ 68,893 $ 128,337 69 Table of Contents ARBOR REALTY TRUST, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued) A summary of the loan portfolio’s internal risk ratings and LTV ratios by asset class at December 31, 2024, and charge-offs recorded during 2024 is as follows ($ in thousands): UPB by Origination Year Total Wtd. Avg. First Dollar LTV Ratio Wtd. Avg. Last Dollar LTV Ratio Asset Class / Risk Rating 2024 2023 2022 2021 2020 Prior Multifamily: Pass $ 308,228 $ 41,713 $ 69,000 $ 10,205 $ 2,010 $ 24,823 $ 455,979 Pass/Watch 357,724 308,353 1,012,593 462,709 119,860 113,100 2,374,339 Special Mention 79,618 31,344 2,340,782 2,958,064 — 94,529 5,504,337 Substandard — 658 159,100 206,277 — 21,700 387,735 Doubtful 12,460 — 193,850 159,379 14,800 9,765 390,254 Total Multifamily $ 758,030 $ 382,068 $ 3,775,325 $ 3,796,634 $ 136,670 $ 263,917 $ 9,112,644 2 % 83 % Single-Family Rental: Percentage of portfolio 81 % Pass $ 246,234 $ 32,875 $ 10,683 $ — $ — $ — $ 289,792 Pass/Watch 422,063 410,419 356,567 94,503 41,848 — 1,325,400 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 % Land: Percentage of portfolio 18 % 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 % Office: Percentage of portfolio 1 % Special Mention $ — $ — $ — $ — $ 35,410 $ — $ 35,410 Total Office $ — $ — $ — $ — $ 35,410 $ — $ 35,410 0 % 94 % Retail: Percentage of portfolio < 1 % Substandard $ — $ — $ — $ — $ — $ 19,520 $ 19,520 Total Retail $ — $ — $ — $ — $ — $ 19,520 $ 19,520 0 % 88 % Commercial: Percentage of portfolio < 1 % Doubtful $ — $ — $ — $ — $ — $ 1,700 $ 1,700 Total Commercial $ — $ — $ — $ — $ — $ 1,700 $ 1,700 0 % 100 % Percentage of portfolio < 1 % Grand Total $ 1,439,313 $ 867,191 $ 4,281,700 $ 3,998,292 $ 305,395 $ 413,065 $ 11,304,956 2 % 80 % Charge-offs $ 464 $ — $ 4,077 $ 7,668 $ — $ — $ 12,209 Geographic Concentration Risk At December 31, 2025, underlying properties in Texas and Florida represented 23 % and 17 %, respectively, of the outstanding balance of our loan and investment portfolio. At December 31, 2024, underlying properties in Texas and Florida represented 23 % and 17 %, respectively, of the outstanding balance of our loan and investment portfolio. No other states represented 10% or more of the total loan and investment portfolio. 70 Table of Contents ARBOR REALTY TRUST, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued) Allowance for Credit Losses A summary of the changes in the allowance for credit losses is as follows ($ in thousands): Year Ended December 31, 2025 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 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 Year Ended December 31, 2024 Allowance for credit losses: Beginning balance $ 110,847 $ 1,624 $ 3,293 $ 1,700 $ 78,058 $ 142 $ — $ 195,664 Provision for credit losses (net of reversals) 49,501 5,900 — — 72 39 — 55,512 Charge-offs (2) ( 12,209 ) — — — — — — ( 12,209 ) Ending balance $ 148,139 $ 7,524 $ 3,293 $ 1,700 $ 78,130 $ 181 $ — $ 238,967 Year Ended December 31, 2023 Allowance for credit losses: Beginning balance $ 37,961 $ 780 $ 5,819 $ 1,700 $ 78,068 $ 8,162 $ 69 $ 132,559 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 $ 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. 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 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. 71 Table of Contents ARBOR REALTY TRUST, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued) 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): December 31, 2025 Asset Class UPB (1) Carrying Value Allowance for Credit Losses Wtd. Avg. First Dollar LTV Ratio Wtd. Avg. Last Dollar LTV Ratio Multifamily $ 366,275 $ 363,635 $ 38,487 0 % 96 % Retail 16,955 16,855 2,903 0 % 97 % Commercial 1,700 1,700 1,700 0 % 100 % Total $ 384,930 $ 382,190 $ 43,090 0 % 96 % December 31, 2024 Multifamily $ 456,261 $ 444,400 $ 60,887 0 % 99 % Land 134,215 127,868 77,869 0 % 99 % Retail 19,520 15,068 3,293 0 % 87 % Commercial 1,700 1,700 1,700 0 % 100 % Total $ 611,696 $ 589,036 $ 143,749 0 % 99 % ________________________________________ (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 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, 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): December 31, 2025 December 31, 2024 UPB Carrying Value UPB Carrying Value Multifamily $ 566,906 $ 553,016 $ 649,227 $ 620,072 Commercial 1,700 1,700 1,700 1,700 Retail 531 531 920 910 Total $ 569,137 $ 555,247 $ 651,847 $ 622,682 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 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). 72 Table of Contents ARBOR REALTY TRUST, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued) 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 ) 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 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 We may agree to amend or modify loans to certain borrowers experiencing financial difficulty based on specific facts and circumstances in order to improve long-term collectability efforts and 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, 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 and we believe it is ultimately collectible. 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 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; (2) the purchase of a new rate cap; (3) a principal paydown of the loan; 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 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 Total UPB $ 1,351,453 $ 260,285 $ 100,465 $ 1,712,203 ________________________ 73 Table of Contents ARBOR REALTY TRUST, INC. AND SUBSIDIARIES 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. 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, 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)(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 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) 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. 74 Table of Contents ARBOR REALTY TRUST, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued) 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, 2023 ($ in thousands): 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 %, 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. 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. 75 Table of Contents ARBOR REALTY TRUST, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued) 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 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 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 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 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 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. 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, 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 76 Table of Contents ARBOR REALTY TRUST, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued) 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. We did not record a loss on the original bridge loan and received all past due interest owed. In the fourth quarter of 2023, we converted a first mortgage loan and a preferred equity investment in an office building to a common equity investment, which is classified as real estate owned in our consolidated balance sheets. 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 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 total 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. 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 Our GSE loans held-for-sale are typically sold within 60 days of loan origination, while our non-GSE loans are generally expected to be sold to third parties or securitized within 180 days of loan origination. Loans held-for-sale, net consists of the following ($ in thousands): December 31, 2025 December 31, 2024 Fannie Mae $ 303,196 $ 171,235 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 recovery (loss) 1,414 ( 1,381 ) Unearned discount ( 6,640 ) ( 6,231 ) Loans held-for-sale, net $ 409,081 $ 435,759 During 2025, 2024 and 2023, we sold $ 5.10 billion, $ 4.61 billion and $ 4.89 billion, respectively, of loans held-for-sale. 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. Note 5 — Capitalized Mortgage Servicing Rights Our capitalized MSRs reflect commercial real estate MSRs derived primarily from loans sold in our Agency Business or acquired MSRs. The discount rates used to determine the present value of all our MSRs throughout the periods presented were between 8 % - 14 % (representing a weighted average discount rate of 12 %) based on our best estimate of market discount rates. The weighted average estimated life remaining of our MSRs was 6.1 years and 6.9 years at December 31, 2025 and 2024, respectively. 77 Table of Contents ARBOR REALTY TRUST, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued) A summary of our capitalized MSR activity is as follows ($ in thousands): Year Ended December 31, 2025 Year Ended December 31, 2024 Originated Acquired Total Originated Acquired Total Beginning balance $ 363,861 $ 4,817 $ 368,678 $ 382,582 $ 8,672 $ 391,254 Additions 53,277 — 53,277 54,346 — 54,346 Amortization ( 69,619 ) ( 1,893 ) ( 71,512 ) ( 65,570 ) ( 2,852 ) ( 68,422 ) Write-downs and payoffs ( 9,345 ) ( 256 ) ( 9,601 ) ( 7,497 ) ( 1,003 ) ( 8,500 ) Ending balance $ 338,174 $ 2,668 $ 340,842 $ 363,861 $ 4,817 $ 368,678 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. The expected amortization of capitalized MSRs recorded at December 31, 2025 is as follows ($ in thousands): Year Amortization 2026 $ 70,956 2027 66,829 2028 59,867 2029 50,954 2030 37,199 Thereafter 55,037 Total $ 340,842 Based on scheduled maturities, actual amortization may vary from these estimates. 78 Table of Contents ARBOR REALTY TRUST, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued) Note 6 – Mortgage Servicing Product and geographic concentrations that impact our servicing revenue are as follows ($ in thousands): December 31, 2025 Product Concentrations Geographic Concentrations Product UPB (1) % of Total State UPB % of Total 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 % Illinois 4 % Other (3) 41 % Total 100 % December 31, 2024 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 % Total $ 33,470,357 100 % New Jersey 5 % Other (3) 46 % Total 100 % ________________________________________ (1) Excludes loans which we are not collecting a servicing fee. (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, 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. 79 Table of Contents ARBOR REALTY TRUST, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued) The components of servicing revenue, net are as follows ($ in thousands): Year Ended December 31, 2025 2024 2023 Servicing fees $ 133,067 $ 129,092 $ 123,975 Interest earned on escrows 54,186 70,742 77,916 Prepayment fees 3,477 2,984 6,387 Write-offs and payoffs of MSRs ( 9,601 ) ( 8,500 ) ( 14,736 ) Amortization of MSRs ( 71,512 ) ( 68,422 ) ( 63,093 ) Servicing revenue, net $ 109,617 $ 125,896 $ 130,449 Note 7 – Securities Held-to-Maturity Agency Private Label Certificates. In connection with our Private Label securitizations, we retain the most subordinate class of the APL certificates in satisfaction of credit risk retention requirements. At December 31, 2025, we retained APL certificates with an initial face value of $ 192.8 million, which were purchased at a discount for $ 119.0 million. 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 % 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. Freddie Mac may choose to hold, sell or securitize loans we sell to them under the Freddie Mac SBL program. As part of the securitizations under the SBL program, we have the ability to purchase the B Piece bond through a bidding process, which represents the bottom 10%, or highest risk, of the securitization. At December 31, 2025, we retained 49 %, or $ 106.2 million initial face value, of seven B Piece bonds, which were previously purchased at a discount for $ 74.7 million, and sold the remaining 51 % to a third party. These securities are collateralized by a pool of multifamily mortgage loans, bear interest at an initial weighted average variable rate of 3.74 % and have an estimated weighted average remaining maturity of 12.1 years. The weighted average effective interest rate was 2.00 % and 11.76 % at December 31, 2025 and 2024, respectively, including the accretion of a portion of the discount deemed collectible. Approximately $ 36.7 million is estimated to mature after ten years. A summary of our securities held-to-maturity is as follows ($ in thousands): Face Value Net Carrying Value Unrealized Gain (Loss) Estimated Fair Value Allowance for Credit Losses December 31, 2025 APL certificates $ 192,791 $ 140,682 $ ( 15,143 ) $ 125,539 $ 1,664 B Piece bonds 36,730 15,405 9,203 24,608 15,349 Total $ 229,521 $ 156,087 $ ( 5,940 ) $ 150,147 $ 17,013 December 31, 2024 APL certificates $ 192,791 $ 134,834 $ ( 22,803 ) $ 112,031 $ 1,658 B Piece bonds 37,221 22,320 10,157 32,477 9,188 Total $ 230,012 $ 157,154 $ ( 12,646 ) $ 144,508 $ 10,846 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 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 Provision for credit loss expense/(reversal) 6 6,161 6,167 ( 614 ) 5,204 4,590 Ending balance $ 1,664 $ 15,349 $ 17,013 $ 1,658 $ 9,188 $ 10,846 80 Table of Contents ARBOR REALTY TRUST, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued) 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 loss. 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. Note 8 — Investments in Equity Affiliates We account for all investments in equity affiliates under the equity method. A summary of these investments is as follows ($ in thousands): Investments in Equity Affiliates at UPB of Loans to Equity Affiliates at December 31, 2025 Equity Affiliates December 31, 2025 December 31, 2024 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 — Lightstone Value Plus REIT L.P. 1,895 1,895 — Clarus Berkley 1,500 — 67,900 The Park at Via Terrossa 578 606 21,845 Docsumo Pte. Ltd. 450 450 — JT Prime 425 425 — 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 Fifth Wall. 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 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"). 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 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 81 Table of Contents ARBOR REALTY TRUST, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued) 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 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. AMAC III. 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 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. 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 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. / JT Prime . We own a $ 1.9 million interest in a joint venture that holds common operating partnership units of Lightstone Value Plus REIT L.P. (“Lightstone”). We also own a 50 % noncontrolling interest in a joint venture, JT Prime, which holds common operating partnership units of Lightstone at a carrying value of $ 0.4 million. Operating results from these investments were de minimis for all periods presented. 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. Docsumo Pte. Ltd. (“Docsumo”). 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. 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 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. We invested $ 0.1 million for a 5 % interest in a joint venture that owns two multifamily properties. The joint venture is comprised of a consortium of investors (which includes, among other unaffiliated investors, certain of our officers, our chief executive officer and certain other related parties) who together own an interest of 95 %. 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 %. 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. 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. 82 Table of Contents 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. During 2023, we received $ 14.5 million from equity participation interests on properties that were sold and which we had loans that previously paid off. These were classified as returns of capital and recognized as income from equity affiliates. See Note 19 for additional details of certain investments described above. Note 9 — Real Estate Owned A summary of our REO assets is as follows ($ in thousands): December 31, 2025 December 31, 2024 Multifamily Office Land Total Multifamily Office Land Total Land $ 109,788 $ 13,599 $ 7,947 $ 131,334 $ 29,171 $ 13,599 $ 7,947 $ 50,717 Building and intangible assets 363,281 48,882 — 412,163 99,812 35,561 — 135,373 Less: Impairment loss ( 20,500 ) ( 2,500 ) — ( 23,000 ) — ( 2,500 ) — ( 2,500 ) Less: Accumulated depreciation and amortization ( 18,015 ) ( 3,544 ) — ( 21,559 ) ( 4,497 ) ( 2,550 ) — ( 7,047 ) Real estate owned, net $ 434,554 $ 56,437 $ 7,947 $ 498,938 $ 124,486 $ 44,110 $ 7,947 $ 176,543 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. 83 Table of Contents ARBOR REALTY TRUST, INC. AND SUBSIDIARIES 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 Goodwill. The goodwill balance at both December 31, 2025 and 2024 was $ 56.6 million. Other Intangible Assets. The following table sets forth the other intangible assets activity ($ in thousands): December 31, 2025 December 31, 2024 Gross Carrying Value Accumulated Amortization Total Gross Carrying Value Accumulated Amortization Total Finite‑lived intangible assets: Borrower relationships $ 14,400 $ ( 13,620 ) $ 780 $ 14,400 $ ( 12,180 ) $ 2,220 Below market leases 4,010 ( 3,863 ) 147 4,010 ( 3,737 ) 273 Infinite‑lived intangible assets: Fannie Mae DUS license 17,100 — 17,100 17,100 — 17,100 Freddie Mac Program Plus license 8,700 — 8,700 8,700 — 8,700 FHA license 3,200 — 3,200 3,200 — 3,200 $ 47,410 $ ( 17,483 ) $ 29,927 $ 47,410 $ ( 15,917 ) $ 31,493 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): Wtd. Avg. Remaining Life (in years) Estimated Amortization Expense for the Years Ending December 31, 2026 2027 Finite‑lived intangible assets: Borrower relationships 0.3 $ 780 $ — Below market leases 1.0 126 21 0.4 $ 906 $ 21 See Note 21 for details of goodwill and other intangible assets by segment. 84 Table of Contents ARBOR REALTY TRUST, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued) Note 11 — Debt Obligations Credit and Repurchase Facilities Borrowings under our credit and repurchase facilities are as follows ($ in thousands): December 31, 2025 December 31, 2024 UPB Debt Carrying Value (1) Collateral Carrying Value Wtd. Avg. Note Rate UPB Debt Carrying Value (1) Collateral Carrying Value Wtd. Avg. Note Rate Structured Business $ 1.4 B joint repurchase facility (2) $ 885,119 $ 882,635 $ 1,468,161 6.36 % $ 661,159 $ 657,690 $ 1,104,791 6.76 % $ 1.22 B repurchase facility 1,153,313 1,149,944 1,555,403 5.67 % — — — — $ 1 B repurchase facility (2)(6) — — — — 215,832 215,459 336,193 6.97 % $ 1 B repurchase facility 880,380 879,499 1,207,513 6.45 % 782,956 781,812 1,055,321 7.20 % $ 850 M repurchase facility (2) 444,452 443,880 725,309 6.29 % 203,348 202,798 362,695 7.28 % $ 650 M repurchase facility (2)(3) 462,702 462,694 549,069 6.33 % 499,039 499,017 678,017 6.98 % $ 400 M credit facility 67,959 66,479 125,099 7.03 % 140,412 138,695 237,123 7.69 % $ 400 M repurchase facility 292,232 291,342 383,195 5.86 % 74,925 74,896 109,920 6.59 % $ 350 M repurchase facility 127,253 127,199 238,422 5.77 % 134,368 134,189 203,135 6.53 % $ 250 M repurchase facility 73,680 73,052 113,121 6.82 % — — — — $ 250 M repurchase facility 98,848 98,186 126,340 5.22 % — — — — $ 250 M credit facility 79,220 78,963 102,758 6.27 % 108,861 108,696 145,148 7.43 % $ 200 M repurchase facility 41,480 41,114 59,147 6.32 % 156,329 155,676 214,441 6.98 % $ 64 M loan specific credit facilities 63,500 63,456 87,000 5.70 % 134,131 133,965 181,108 6.59 % $ 40 M credit facility 15,576 15,532 24,610 6.12 % 15,576 15,387 24,610 6.77 % $ 35 M working capital facility 35,000 35,000 — 6.69 % — — — — Repurchase facility - securities (2)(4) 50,280 50,280 — 5.11 % 18,549 18,549 — 6.12 % Structured Business total (5) $ 4,770,994 $ 4,759,255 $ 6,765,147 6.12 % $ 3,145,485 $ 3,136,829 $ 4,652,502 7.00 % Agency Business $ 750 M ASAP agreement $ 91,965 $ 91,965 $ 92,733 4.91 % $ 62,196 $ 62,196 $ 62,372 5.48 % $ 500 M repurchase facility 89,431 89,427 89,573 5.19 % 40,878 40,872 41,165 5.81 % $ 200 M credit facility 101,849 101,802 102,409 5.55 % 141,217 141,169 141,971 5.89 % $ 200 M credit facility 43,023 42,887 43,096 5.76 % 137,878 137,762 138,793 5.84 % $ 100 M joint repurchase facility (2) 64,445 64,315 77,798 6.24 % 28,656 28,611 38,962 6.34 % $ 50 M credit facility (7) — — — — 11,723 11,723 11,723 5.84 % $ 1 M repurchase facility (2)(3) — — — — 328 328 469 6.83 % Agency Business total $ 390,713 $ 390,396 $ 405,609 5.45 % $ 422,876 $ 422,661 $ 435,455 5.84 % Consolidated total $ 5,161,707 $ 5,149,651 $ 7,170,756 6.07 % $ 3,568,361 $ 3,559,490 $ 5,087,957 6.86 % ________________________________________ (1) At December 31, 2025 and 2024, debt carrying value for the Structured Business was net of unamortized deferred finance costs of $ 11.7 million and $ 8.6 million, respectively, and for the Agency Business was net of unamortized deferred finance costs of $ 0.3 million and $ 0.2 million, respectively. (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, 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. 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. 85 Table of Contents ARBOR REALTY TRUST, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued) Usually, our credit and repurchase facilities have extension options that are at the discretion of the financial institutions in which we have long standing relationships with. These facilities typically renew annually and also include a "wind-down" feature. Joint Repurchase Facility. We have a $ 1.50 billion joint repurchase facility that is shared between the Structured Business and the Agency Business, and matures in July 2027 with a one-year extension option. This facility is used to finance both structured and Private Label loans. 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. If the estimated market value of the loans financed in this facility decrease, we may be required to pay down borrowings under this facility. Structured Business. We utilize credit and repurchase facilities with various financial institutions to finance our loans and investments as described below. Many of these facilities have a maximum advance rate between 70 % to 83 %, depending on the asset type financed. At December 31, 2025 and 2024, the weighted average interest rate for the credit and repurchase facilities of our Structured Business, including certain fees and costs, such as structuring, commitment, non-use and warehousing fees, was 6.40 % and 7.43 %, respectively. 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 $ 1.22 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 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. 86 Table of Contents ARBOR REALTY TRUST, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued) 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 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. We utilize credit and repurchase facilities with various financial institutions to finance substantially all of our loans held-for-sale as described below. The financial institutions that provide these facilities generally have a security interest in the underlying mortgage notes that serve as collateral for these facilities. 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 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. 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 has an interest rate of SOFR plus 1.75 %. 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 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. At December 31, 2025, the letters of credit outstanding include $ 70.0 million for the Fannie Mae DUS program and $ 5.0 million for the Freddie Mac SBL program. Securitized Debt We account for securitized debt transactions on our consolidated balance sheet as financing facilities. These transactions are considered VIEs for which we are the primary beneficiary and are consolidated in our financial statements. The investment grade notes and guaranteed certificates issued to third parties are treated as secured financings and are non-recourse to us. 87 Table of Contents ARBOR REALTY TRUST, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued) Borrowings and the corresponding collateral under our securitized debt transactions are as follows ($ in thousands): Debt Collateral (3) Loans Cash December 31, 2025 Face Value Carrying Value (1) Wtd. Avg. Rate (2) UPB Carrying Value Restricted Cash (4) CLO 20 $ 933,187 $ 924,504 5.50 % $ 1,045,664 $ 1,040,984 $ — 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 CLO 17 (5) 1,055,700 1,055,380 5.66 % 1,443,820 1,443,845 — Total CLOs 3,485,786 3,468,258 5.81 % 4,514,753 4,507,031 21,469 Q Series securitization (6) — — — 50,600 50,600 — Total securitized debt $ 3,485,786 $ 3,468,258 5.81 % $ 4,565,353 $ 4,557,631 $ 21,469 December 31, 2024 CLO 19 $ 753,987 $ 751,364 7.02 % $ 912,935 $ 912,392 $ — 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 CLO 16 682,845 681,008 5.93 % 944,660 943,542 — CLO 14 326,238 326,238 6.11 % 452,751 452,526 — Total CLOs (5) 4,581,374 4,572,055 6.35 % 5,806,502 5,803,208 88,000 Q Series securitization 50,641 50,434 6.49 % 94,940 94,895 — Total securitized debt $ 4,632,015 $ 4,622,489 6.35 % $ 5,901,442 $ 5,898,103 $ 88,000 ________________________________________ (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, 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. (4) Represents restricted cash held for principal repayments as well as for reinvestment in the CLOs. 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 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. CLO 20. 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. BTR CLO 1 . 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 88 Table of Contents ARBOR REALTY TRUST, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued) 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. CLO 18. 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 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. CLO 17. In 2021, we completed CLO 17, issuing eight tranches of CLO notes through two wholly owned subsidiaries totaling $ 1.91 billion. Of the total CLO notes issued, $ 1.71 billion were investment grade notes issued to third-party investors and $ 194.3 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 $ 1.79 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 $ 315.0 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 $ 2.10 billion, representing leverage of 82 %. We retained a residual interest in the portfolio with a notional amount of $ 385.9 million, including the $ 194.3 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. CLO 16. 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. CLO 15. 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, 89 Table of Contents ARBOR REALTY TRUST, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued) 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. As master servicer, Freddie Mac appointed us as its subservicer, which includes obligations to collect and remit payments and otherwise administer the underlying loans, and a third party as the special servicer. We may, subject to certain limitations, terminate the special servicer, with or without cause, and appoint a successor. 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 A summary of our senior unsecured notes is as follows ($ in thousands): December 31, 2025 December 31, 2024 Senior Unsecured Notes Issuance Date Maturity UPB Carrying Value (1) Wtd. Avg. Rate (2) UPB Carrying Value (1) Wtd. Avg. Rate (2) 8.50 % Notes (3) Dec. 2025 Dec. 2028 $ 400,000 $ 394,340 8.50 % $ — $ — — 7.875 % Notes (4) Jul. 2025 Jul. 2030 500,000 489,397 7.88 % — — — 9.00 % Notes (3) Oct. 2024 Oct. 2027 100,000 98,934 9.00 % 100,000 98,352 9.00 % 8.50 % Notes (3) Oct. 2022 Oct. 2027 150,000 149,041 8.50 % 150,000 148,531 8.50 % 5.00 % Notes (3) Dec. 2021 Dec. 2028 180,000 178,725 5.00 % 180,000 178,300 5.00 % 4.50 % Notes (3) Aug. 2021 Sept. 2026 270,000 269,439 4.50 % 270,000 268,601 4.50 % 5.00 % Notes (3) Apr. 2021 Apr. 2026 175,000 174,790 5.00 % 175,000 174,161 5.00 % 4.50 % Notes (3) Mar. 2020 Mar. 2027 275,000 274,412 4.50 % 275,000 273,927 4.50 % 7.75 % Notes Mar. 2023 Mar. 2026 — — — 95,000 94,275 7.75 % $ 2,050,000 $ 2,029,078 6.70 % $ 1,245,000 $ 1,236,147 5.73 % ________________________________________ (1) At December 31, 2025 and 2024, the carrying value is net of deferred financing fees of $ 20.9 million and $ 8.9 million, respectively. (2) At December 31, 2025 and 2024, the aggregate weighted average note rate, including certain fees and costs, was 7.06 % and 6.02 %, respectively. (3) These notes can be redeemed by us prior to three 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 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 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 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. 90 Table of Contents ARBOR REALTY TRUST, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued) 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 notes. In 2021, we issued $ 180.0 million aggregate principal amount of 5.00 % senior unsecured notes due in 2028 in a private offering. We received proceeds of $ 177.2 million from the issuance, after deducting the underwriting discount and other offering expenses. In 2021, we issued $ 270.0 million aggregate principal amount of 4.50 % senior unsecured notes due in 2026 in a private offering. We received proceeds of $ 265.8 million from the issuance, after deducting the underwriting discount and other offering expenses. In 2021, we issued $ 175.0 million aggregate principal amount of 5.00 % senior unsecured notes due in 2026 in a private offering. 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 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. 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 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 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 The carrying values of borrowings under our junior subordinated notes were $ 145.5 million and $ 144.7 million at December 31, 2025 and 2024, respectively, which is net of a deferred amount of $ 7.6 million and $ 8.3 million, respectively, (which is amortized into interest expense over the life of the notes) and deferred financing fees of $ 1.2 million and $ 1.4 million, respectively. These notes have maturities ranging from March 2034 through April 2037 and pay interest quarterly at a floating rate. The weighted average note rate was 6.52 % and 7.18 % at December 31, 2025 and 2024, respectively. Including certain fees and costs, the weighted average note rate was 6.61 % and 7.26 % at December 31, 2025 and 2024, respectively. Debt Covenants 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 91 Table of Contents ARBOR REALTY TRUST, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued) 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. CLOs. Our CLO vehicles contain interest coverage and asset overcollateralization covenants that must be met as of the waterfall distribution date in order for us to receive such payments. If we fail these covenants in any of our CLOs, all cash flows from the applicable CLO would be diverted to repay principal and interest on the outstanding CLO bonds and we would not receive any residual payments until that CLO regained compliance with such tests. Our CLOs were in compliance with all such covenants at December 31, 2025, as well as on the most recent determination dates in January 2026. 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 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 17 CLO 18 BTR CLO 1 CLO 20 Overcollateralization (1) Current 127.77 % 136.54 % 117.47 % 112.52 % Limit 121.51 % 123.03 % 115.47 % 110.52 % Pass / Fail Pass Pass Pass Pass Interest Coverage (2) Current 136.59 % 130.82 % 170.68 % 139.22 % Limit 120.00 % 120.00 % 120.00 % 120.00 % Pass / Fail Pass Pass Pass Pass ________________________________________ (1) The overcollateralization ratio divides the total principal balance of all collateral in the CLO by the total principal balance of the bonds associated with the applicable ratio. To the extent an asset is considered a defaulted security, the asset’s principal balance for purposes of the overcollateralization test is the lesser of the asset’s market value or the principal balance of the defaulted asset multiplied by the asset’s recovery rate which is determined by the rating agencies. Rating downgrades of CLO collateral will generally not have a direct impact on the principal balance of a CLO asset for purposes of calculating the CLO overcollateralization test unless the rating downgrade is below a significantly low threshold (e.g., CCC-) as defined in each CLO vehicle. (2) The interest coverage ratio divides interest income by interest expense for the classes senior to those retained by us. Our CLO overcollateralization ratios as of the determination dates subsequent to each quarter are as follows: Determination (1) CLO 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 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 ________________________________________ (1) This table represents the quarterly trend of our overcollateralization ratio, however, the CLO determination dates are monthly and we were in compliance with this test for all periods presented. The ratio will fluctuate based on the performance of the underlying assets, transfers of assets into the CLOs prior to the expiration of their respective replenishment dates, purchase or disposal of other investments, and loan payoffs. No payment due under the junior subordinated indentures may be paid if there is a default under any senior debt and the senior lender has sent notice to the trustee. The junior subordinated indentures are also cross-defaulted with each other. 92 Table of Contents ARBOR REALTY TRUST, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued) Note 12 — Allowance for Loss-Sharing Obligations Our allowance for loss-sharing obligations related to the Fannie Mae DUS program is as follows ($ in thousands): Year Ended December 31, 2025 2024 Beginning balance $ 83,150 $ 71,634 Provision for loss sharing (net of reversals) 24,259 12,555 Charge-offs, net ( 9,830 ) ( 1,039 ) Ending balance $ 97,579 $ 83,150 When a loan is sold under the Fannie Mae DUS program, we undertake an obligation to partially guarantee the performance of the loan. A liability is recognized for the fair value of the guarantee obligation undertaken for the non-contingent aspect of the guarantee and is removed only upon either the expiration or settlement of the guarantee. At December 31, 2025 and 2024, we had $ 35.7 million and $ 34.8 million, respectively, of guarantee obligations included in the allowance for loss-sharing obligations. In addition to and separately from the fair value of the guarantee, we estimate our allowance for loss-sharing under CECL over the contractual period in which we are exposed to credit risk. The general reserve related to loss-sharing was based on a collective pooling basis with similar risk characteristics, a reasonable and supportable forecast and a reversion period based on our average historical losses through the remaining contractual term of the portfolio. In instances where payment under the loss-sharing obligations of a loan is determined to be probable and estimable (as the loan is probable of, or is, in foreclosure), we record a liability for the estimated loss-sharing specific reserve. When we settle a loss under the DUS loss-sharing model, the net loss is charged-off against the previously recorded loss-sharing obligation. The settled loss is often net of any previously advanced principal and interest payments in accordance with the DUS program, which are reflected as reductions to the proceeds needed to settle losses. At December 31, 2025 and 2024, we had outstanding advances of $ 7.3 million and $ 1.9 million, respectively, which were netted against the allowance for loss-sharing obligations. 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 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. The maximum quantifiable liability is not representative of the actual loss we would incur. 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. Note 13 — Derivative Financial Instruments We enter into derivative financial instruments to manage exposures that arise from business activities resulting in the receipt or payment of future known and uncertain cash amounts, the value of which are determined by interest rates and credit risk. We do not use these derivatives for speculative purposes, but are instead using them to manage our interest rate and credit risk exposure. Agency Rate Lock and Forward Sale Commitments. We enter into contractual commitments to originate and sell mortgage loans at fixed prices with fixed expiration dates. The commitments become effective when the borrower “rate locks” a specified interest rate within time frames established by us. All potential borrowers are evaluated for creditworthiness prior to the extension of the commitment. Market risk arises if interest rates move adversely between the time of the rate lock by the borrower and the sale date of the loan to an investor. To mitigate the effect of the interest rate risk inherent in providing rate lock commitments to borrowers under the GSE programs, we enter into a forward sale commitment with the investor simultaneously with the rate lock commitment with the borrower. The forward sale contract locks in an interest rate and price for the sale of the loan. The terms of the contract with the investor and the rate lock with the borrower are matched in substantially all aspects, with the objective of eliminating interest rate risk to the extent practical. 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 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 93 Table of Contents ARBOR REALTY TRUST, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued) 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. Treasury Futures and Credit Default Swaps. We enter into over-the-counter treasury futures and credit default swaps to hedge our interest rate and credit risk exposure inherent in (1) our held-for-sale Agency Business Private Label loans from the time the loans are rate locked until sale or securitization, and (2) our Agency Business SFR – fixed rate loans from the time the loans are originated until the time they can be financed with match term fixed rate securitized debt. Our treasury futures typically have a three-month maturity and are tied to the five-year and ten-year treasury rates. Our credit default swaps typically have a five-year maturity, are tied to the credit spreads of the underlying bond issuers and we typically hold our position until we price our Private Label loan securitizations. These instruments do not meet the criteria for hedge accounting, are cleared by a central clearing house and variation margin payments made in cash are treated as a legal settlement of the derivative itself. Our agreements with the counterparties provide for bilateral collateral pledging based on the counterparties' market value. The counterparties have the right to re-pledge the collateral posted, but have the obligation to return the pledged collateral as the market value of the treasury futures change. Our policy is to record the asset and liability positions on a net basis. 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): December 31, 2025 Fair Value 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 ) Treasury futures 617 61,700 — — $ 448,753 $ 585 $ ( 1,082 ) December 31, 2024 Forward sale commitments 44 $ 396,024 Other assets/other liabilities $ 95 $ ( 4,209 ) Treasury futures 82 8,200 — — $ 404,224 $ 95 $ ( 4,209 ) 94 Table of Contents ARBOR REALTY TRUST, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued) Note 14 — Fair Value Fair value estimates are dependent upon subjective assumptions and involve significant uncertainties resulting in variability in estimates with changes in assumptions. The following table summarizes the principal amounts, carrying values and the estimated fair values of our financial instruments ($ in thousands): December 31, 2025 December 31, 2024 Principal / Notional Amount Carrying Value Estimated Fair Value Principal / Notional Amount Carrying Value Estimated Fair Value Financial assets: Loans and investments, net $ 12,113,107 $ 11,934,248 $ 11,964,280 $ 11,304,956 $ 11,033,997 $ 11,122,205 Loans held-for-sale, net 408,386 409,081 421,398 438,233 435,759 449,339 Capitalized mortgage servicing rights, net n/a 340,842 474,767 n/a 368,678 511,282 Securities held-to-maturity, net 229,521 156,087 150,147 230,012 157,154 144,508 Derivative financial instruments 94,319 585 585 41,724 95 95 Financial liabilities: Credit and repurchase facilities $ 5,161,707 $ 5,149,651 $ 5,143,472 $ 3,568,361 $ 3,559,490 $ 3,592,120 Securitized debt 3,485,786 3,468,258 3,487,773 4,632,015 4,622,489 4,616,409 Senior unsecured notes 2,050,000 2,029,078 2,009,938 1,245,000 1,236,147 1,160,154 Convertible senior unsecured notes — — — 287,500 285,853 287,500 Junior subordinated notes 154,336 145,497 111,992 154,336 144,686 109,099 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 Assets and liabilities disclosed at fair value are categorized based upon the level of judgment associated with the inputs used to measure their fair value. Determining which category an asset or liability falls within the hierarchy requires judgment and we evaluate our hierarchy disclosures each quarter. Hierarchical levels directly related to the amount of subjectivity associated with the inputs to fair valuation of these assets and liabilities are as follows: Level 1 —Inputs are unadjusted and quoted prices exist in active markets for identical assets or liabilities, such as government, agency and equity securities. Level 2—Inputs (other than quoted prices included in Level 1) are observable for the asset or liability through correlation with market data. Level 2 inputs may include quoted market prices for a similar asset or liability, interest rates and credit risk. Examples include non-government securities, certain mortgage and asset-backed securities, certain corporate debt and certain derivative instruments. Level 3—Inputs reflect our best estimate of what market participants would use in pricing the asset or liability and are based on significant unobservable inputs that require a considerable amount of judgment and assumptions. Examples include certain mortgage and asset-backed securities, certain corporate debt and certain derivative instruments. The following is a description of the valuation techniques used to measure fair value and the general classification of these instruments pursuant to the fair value hierarchy. Loans and investments, net. Fair values of loans and investments that are not impaired are estimated using inputs based on direct capitalization rate and discounted cash flow methodology using discount rates, which, in our opinion, best reflect current market interest rates that would be offered for loans with similar characteristics and credit quality (Level 3). Fair values of impaired loans and investments are estimated using inputs that require significant judgments, which include assumptions regarding discount rates, capitalization rates, creditworthiness of major tenants, occupancy rates, availability of financing, exit plans and other factors (Level 3). 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 95 Table of Contents ARBOR REALTY TRUST, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued) 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). Capitalized mortgage servicing rights, net. Fair values are estimated using inputs based on discounted future net cash flow methodology (Level 3). MSRs are initially recorded at fair value and are carried at amortized cost. The fair value of MSRs is estimated using a process that involves the use of independent third-party valuation experts, supported by commercially available discounted cash flow models and analysis of current market data. The key inputs used in estimating fair value include the discount rate and contractually specified servicing fees, and to a lessor extent the prepayment speed of the underlying loans, annual per loan cost to service loans, delinquency rates, late charges and other economic factors. Securities held-to-maturity, net. Fair values are approximated using inputs based on current market quotes received from financial sources that trade such securities and are based on prevailing market data and, in some cases, are derived from third-party proprietary models based on well recognized financial principles and reasonable estimates about relevant future market conditions (Level 3). Derivative financial instruments. Fair values of rate lock and forward sale commitments are estimated using valuation techniques, which include internally-developed models based on changes in the U.S. Treasury rate and other observable market data (Level 2). The fair value of rate lock commitments includes the fair value of the expected net cash flows associated with the servicing of the loans, see capitalized mortgage servicing rights, net above for details on the applicable valuation technique (Level 3). We also consider the impact of counterparty non-performance risk when measuring the fair value of these derivatives. 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. For these facilities, the fair values approximate their carrying values. Securitized debt and junior subordinated notes. Fair values are estimated based on broker quotations, representing the discounted expected future cash flows at a yield that reflects current market interest rates and credit spreads (Level 3). Senior unsecured notes. Fair values are estimated at current market quotes received from active markets when available (Level 1). If quotes from active markets are unavailable, then the fair values are estimated utilizing current market quotes received from inactive markets (Level 2). Convertible senior unsecured notes. Fair values are estimated using current market quotes received from inactive markets (Level 2). We measure certain financial assets and financial liabilities at fair value on a recurring basis. The fair values of these financial assets and liabilities are determined using the following input levels at December 31, 2025 ($ in thousands): Carrying Value Fair Value Fair Value Measurements Using Fair Value Hierarchy Level 1 Level 2 Level 3 Financial assets: Derivative financial instruments $ 585 $ 585 $ — $ 112 $ 473 Financial liabilities: Derivative financial instruments $ 1,082 $ 1,082 $ — $ 1,082 $ — 96 Table of Contents 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. The fair values of these financial and non-financial assets, if applicable, were determined using the following input levels at December 31, 2025 ($ in thousands): Fair Value Measurements Using Fair Value Hierarchy Net Carrying Value Fair Value Level 1 Level 2 Level 3 Financial assets: Impaired loans, net Loans held-for-investment (1) $ 339,100 $ 339,100 $ — $ — $ 339,100 Loans held-for-sale (2) 12,989 12,989 — 12,989 — $ 352,089 $ 352,089 $ — $ 12,989 $ 339,100 ________________________________________ (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 $ 1.0 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 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. We evaluate our loans to determine if the value of the underlying collateral securing the impaired loan is less than the net carrying value of the loan, which may result in an allowance, and corresponding charge to the provision for credit losses, or an impairment loss. These valuations require significant judgments, which include assumptions regarding capitalization and discount rates, revenue growth rates, creditworthiness of major tenants, occupancy rates, availability of financing, exit plan and other factors. Loans held-for-sale are generally expected to be transferred or sold within 60 days to 180 days of loan origination and are reported at lower of cost or market. We consider a loan classified as held-for-sale impaired if, based on current information, it is probable that we will sell the loan below par, or not be able to collect all principal and interest in accordance with the contractual terms of the loan agreement. These loans 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. The tables above and below include all impaired loans, regardless of the period in which the impairment was recognized. Quantitative information about Level 3 fair value measurements at December 31, 2025 is as follows ($ in thousands): Fair Value Valuation Techniques Significant Unobservable Inputs Financial assets: Impaired loans: Weighted Average Minimum / Maximum Multifamily $ 302,297 Discounted cash flows Capitalization rate 5.92 % 5.50 % - 7.00 % 22,851 Price quotes N/A N/A N/A $ 325,148 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 % 97 Table of Contents 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). A roll-forward of Level 3 derivative instruments is as follows ($ in thousands): Fair Value Measurements Using Significant Unobservable Inputs for the Year Ended December 31, 2025 2024 2023 Derivative assets and liabilities, net Beginning balance $ — $ 428 $ 354 Settlements ( 54,059 ) ( 50,492 ) ( 66,407 ) Realized gains recorded in earnings 54,059 50,064 66,053 Unrealized gains recorded in earnings 473 — 428 Ending balance $ 473 $ — $ 428 The components of fair value and other relevant information associated with our forward sales commitments and the estimated fair value of cash flows from servicing on loans held-for-sale are as follows ($ in thousands): December 31, 2025 Notional/ Principal Amount Fair Value of Servicing Rights Unrealized Impairment Loss Total Fair Value Adjustment Rate lock commitments $ 29,621 $ 473 $ — $ 473 Forward sale commitments 357,432 — — — Loans held-for-sale, net (1) 408,386 5,921 1,414 7,335 Total $ 6,394 $ 1,414 $ 7,808 ________________________________________ (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. We measure certain assets and liabilities for which fair value is only disclosed. The fair values of these assets and liabilities are determined using the following input levels at December 31, 2025 ($ in thousands): Fair Value Measurements Using Fair Value Hierarchy Carrying Value Fair Value Level 1 Level 2 Level 3 Financial assets: Loans and investments, net $ 11,934,248 $ 11,964,280 $ — $ — $ 11,964,280 Loans held-for-sale, net 409,081 421,398 — 415,477 5,921 Capitalized mortgage servicing rights, net 340,842 474,767 — — 474,767 Securities held-to-maturity, net 156,087 150,147 — — 150,147 Financial liabilities: Credit and repurchase facilities $ 5,149,651 $ 5,143,472 $ — $ 390,396 $ 4,753,076 Securitized debt 3,468,258 3,487,773 — — 3,487,773 Senior unsecured notes 2,029,078 2,009,938 2,009,938 — — 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 Agency Business Commitments. 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, 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. 98 Table of Contents ARBOR REALTY TRUST, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued) Our Agency Business is subject to supervision by certain regulatory agencies. Among other things, these agencies require us to meet certain minimum net worth, operational liquidity and restricted liquidity collateral requirements, and compliance with reporting requirements. Our adjusted net worth and liquidity required by the agencies for all periods presented exceeded these requirements. At December 31, 2025, we were required to maintain at least $ 23.9 million of liquid assets in one of our subsidiaries to meet our operational liquidity requirements for Fannie Mae and we had operational liquidity in excess of this requirement. We are generally required to share the risk of any losses associated with loans sold under the Fannie Mae DUS program and are required to secure this obligation by assigning restricted cash balances and/or a letter of credit to Fannie Mae. The amount of collateral required by Fannie Mae is a formulaic calculation at the loan level by a Fannie Mae assigned tier, which considers the loan balance, risk level of the loan, age of the loan and level of risk-sharing. Fannie Mae requires restricted liquidity for Tier 2 loans of 75 basis points, 15 basis points for Tier 3 loans and 5 basis points for Tier 4 loans, which is funded over a 48 -month period that begins upon delivery of the loan to Fannie Mae. A significant portion of our Fannie Mae DUS serviced loans for which we have risk sharing are Tier 2 loans. At December 31, 2025, the restricted liquidity requirement totaled $ 100.9 million and was satisfied with a $ 70.0 million letter of credit and cash issued to Fannie Mae. At December 31, 2025, reserve requirements for the current Fannie Mae DUS loan portfolio will require us to fund $ 34.8 million in additional restricted liquidity over the next 48 months, assuming no further principal paydowns, prepayments, or defaults within our at-risk portfolio. Fannie Mae periodically reassesses these collateral requirements and may make changes to these requirements in the future. We generate sufficient cash flow from our operations to meet these capital standards and do not expect any changes to have a material impact on our future operations; however, future changes to collateral requirements may adversely impact our available cash. We are subject to various capital requirements in connection with seller/servicer agreements that we have entered into with secondary market investors. Failure to maintain minimum capital requirements could result in our inability to originate and service loans for the respective investor and, therefore, could have a direct material effect on our consolidated financial statements. At December 31, 2025, we met all of Fannie Mae’s quarterly capital requirements and our Fannie Mae adjusted net worth was in excess of the required net worth. 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. 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. Under the SBL program, we are required to post collateral equal to $ 5.0 million, which is satisfied with a $ 5.0 million letter of credit. We enter into contractual commitments with borrowers providing rate lock commitments while simultaneously entering into forward sale commitments with investors. These commitments are outstanding for short periods of time (generally less than 60 days) and are described in more detail in Note 13 and Note 14. Debt Obligations and Operating Leases. At December 31, 2025, the maturities of our debt obligations and the minimum annual operating lease payments under leases with a term in excess of one year are as follows ($ in thousands): Year Debt Obligations Minimum Annual Operating Lease Payments Total 2026 $ 4,931,405 $ 11,424 $ 4,942,829 2027 3,067,110 9,912 3,077,022 2028 2,368,357 9,226 2,377,583 2029 53,586 8,714 62,300 2030 500,000 8,756 508,756 Thereafter 154,336 10,924 165,260 Total $ 11,074,794 $ 58,956 $ 11,133,750 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. 99 Table of Contents ARBOR REALTY TRUST, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued) Unfunded Commitments. In accordance with certain structured loans and investments, we have outstanding unfunded commitments of $ 1.92 billion at December 31, 2025 that we are obligated to fund as borrowers meet certain requirements. Specific requirements include, but are not limited to, property renovations, building construction and conversions based on criteria met by the borrower in accordance with the loan agreements. Litigation. 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,” 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 On July 31, 2024, a purported shareholder filed a securities class action lawsuit against us and certain of our executive officers in the United States District Court for the Eastern District of New York (the “Court”), alleging violations of Sections 10(b) and 20(a) of the Exchange Act and Rule 10b-5 promulgated thereunder. The plaintiffs seek to represent a class of shareholders who purchased our shares of common stock between May 7, 2021 and July 11, 2024. On November 5, 2024, the Court approved the motion appointing the lead plaintiffs and their counsel. An amended complaint was filed by the lead plaintiffs on January 21, 2025. The amended complaint alleges that we have made false and misleading statements and/or failed to disclose material information in connection with allegedly overriding internal controls, engaging in substandard lending practices and not complying with agency requirements. 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. 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 100 Table of Contents ARBOR REALTY TRUST, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued) 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. Due to borrowers represents borrowers’ funds held by us to fund certain expenditures or to be released at our discretion upon the occurrence of certain pre-specified events, and to serve as additional collateral for borrowers’ loans. While retained, these balances earn interest in accordance with the specific loan terms they are associated with. Note 16 — Variable Interest Entities Our involvement with VIEs primarily affects our financial performance and cash flows through amounts recorded in interest income, interest expense, provision for loan losses and through activity associated with our derivative instruments. Consolidated VIEs. We have determined that our operating partnership, ARLP, and our CLO and Q Series securitization entities (“Securitization Entities”) are VIEs, which we consolidate. Our Securitization Entities invest in real estate and real estate-related securities and are financed by the issuance of debt securities. We believe we hold the power necessary to direct the most significant economic activities of those entities. We also have exposure to losses to the extent of our equity interests, and rights to waterfall payments in excess of required payments to bond investors. As a result of consolidation, equity interests have been eliminated, and the consolidated balance sheets reflect both the assets held and debt issued to third parties by the Securitization Entities, prior to the unwind. Our operating results and cash flows include the gross asset and liability amounts related to the Securitization Entities as opposed to our net economic interests in those entities. The assets and liabilities related to these consolidated Securitization Entities are as follows ($ in thousands): December 31, 2025 December 31, 2024 Assets: Restricted cash $ 35,258 $ 131,381 Loans and investments, net 4,557,631 5,898,102 Other assets 69,132 95,442 Total assets $ 4,662,021 $ 6,124,925 Liabilities: Securitized debt $ 3,468,258 $ 4,622,489 Other liabilities 9,590 15,255 Total liabilities $ 3,477,848 $ 4,637,744 Assets held by the Securitization Entities are restricted and can only be used to settle obligations of those entities. The liabilities of the Securitization Entities are non-recourse to us and can only be satisfied from each respective asset pool. See Note 11 for details. 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. 101 Table of Contents ARBOR REALTY TRUST, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued) 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): Type Carrying Amount (1) Loans $ 1,469,312 APL certificates 142,346 Equity investments 32,433 B Piece bonds 30,754 Agency interest only strips 21 Total $ 1,674,866 ________________________________________ (1) Represents the carrying amount of loans and investments before reserves. At December 31, 2025, $ 91.0 million of loans to VIEs had corresponding specific loan loss reserves of $ 7.8 million. The maximum loss exposure at December 31, 2025 would not exceed the carrying amount of our investment. These unconsolidated VIEs have exposure to real estate debt of approximately $ 4.82 billion at December 31, 2025. Note 17 — Equity Preferred Stock. The Series D, Series E and Series F preferred stock are not redeemable by us prior to June 2, 2026, August 11, 2026 and October 12, 2026, respectively. Holders of the Series F preferred stock are entitled to receive cumulative dividends at a fixed rate equal to 6.25 % from the date of issuance through October 29, 2026 and at a floating rate equal to a benchmark rate (which is expected to be the three-month term SOFR) plus a spread of 5.442 % per annum beginning October 30, 2026; provided that in no event should the rate be lower than 6.125 %. Common Stock. 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. During 2025, we sold 5,898,957 shares of our common stock at an average price of $ 11.97 per share for net proceeds of $ 70.6 million. At December 31, 2025, we had 23,439,335 shares available under the agreement. 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. 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 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. 102 Table of Contents ARBOR REALTY TRUST, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued) 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. Distributions. Dividends declared (on a per share basis) for the year ended December 31, 2025 are as follows: Common Stock Preferred Stock Dividend Declaration Date Dividend Declaration Date Series D Series E Series F February 19, 2025 $ 0.43 March 28, 2025 $ 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 October 29, 2025 $ 0.30 December 29, 2025 $ 0.3984375 $ 0.390625 $ 0.390625 Common Stock – On February 24, 2026, the Board of Directors declared a cash dividend of $ 0.30 per share of common stock. The dividend is payable on March 24, 2026 to common stockholders of record as of the close of business on March 10, 2026. 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. We have a stock incentive plan under which the Board of Directors has the authority to issue shares of stock to certain employees, officers and directors. During 2025, we issued 715,452 shares of restricted common stock to certain employees and members of our Board of Directors under the Amended Omnibus Stock Incentive Plan with a total grant date fair value of $ 8.7 million, of which: (1) 239,741 shares with a grant date fair value of $ 3.0 million vested in 2025; (2) 226,036 shares with a grant date fair value of $ 2.7 million will vest in 2026; (3) 226,221 shares with a grant date fair value of $ 2.7 million will vest in 2027; and (4) 23,454 shares with a grant date fair value of $ 0.2 million will vest in 2028. 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 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; (2) 244,794 shares with a grant date fair value of $ 3.2 million vested in 2025; (3) 248,346 shares with a grant date fair value of $ 3.3 million will vest in 2026; (4) 31,314 shares with a grant date fair value of $ 0.5 million will vest in 2027; and (5) 34,750 shares with a grant date fair value of $ 0.5 million will vest in 2028. 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; (2) 277,751 shares with a grant date fair value of $ 3.4 million vested in 2024; (3) 253,479 shares with a grant date fair value of $ 3.0 million vested in 2025; (4) 78,126 shares with a grant date fair value of $ 0.9 million will vest in 2026; and (5) 34,722 shares with a grant date fair value of $ 0.4 million will vest in 2027. 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 103 Table of Contents ARBOR REALTY TRUST, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued) 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 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 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 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. At December 31, 2025, total unrecognized compensation cost related to unvested restricted common stock was $ 9.0 million, which is expected to be recognized ratably over the remaining weighted-average vesting period of 2.2 years. Earnings Per Share. Basic EPS is calculated by dividing net income (loss) attributable to common stockholders by the weighted average number of shares of common stock outstanding during each period inclusive of unvested restricted stock with full dividend participation rights. Diluted EPS is calculated by dividing net income (loss) by the weighted average number of shares of common stock outstanding, plus the additional dilutive effect of common stock equivalents during each period. Our common stock equivalents include the weighted average dilutive effect of RSUs, OP Units and convertible senior unsecured notes. A reconciliation of the numerator and denominator of our basic and diluted EPS computations is as follows ($ in thousands, except share and per share data): Year Ended December 31, 2025 2024 2023 Basic Diluted Basic Diluted Basic Diluted Net income attributable to common stockholders (1) $ 107,427 $ 107,427 $ 223,272 $ 223,272 $ 330,065 $ 330,065 Net income attributable to noncontrolling interest (2) — 9,033 — 19,278 — 29,122 Interest expense on convertible notes (3) — — — — — 24,832 Net income attributable to common stockholders and noncontrolling interest $ 107,427 $ 116,460 $ 223,272 $ 242,550 $ 330,065 $ 384,019 Weighted average shares outstanding 192,956,154 192,956,154 188,701,149 188,701,149 184,641,642 184,641,642 Dilutive effect of OP Units (2) — 16,192,287 — 16,293,589 — 16,293,589 Dilutive effect of convertible notes (3) — — — — — 17,294,392 Dilutive effect of RSUs (4) — 584,890 — 531,872 — 613,990 Weighted average shares outstanding 192,956,154 209,733,331 188,701,149 205,526,610 184,641,642 218,843,613 Net income per common share (1) $ 0.56 $ 0.56 $ 1.18 $ 1.18 $ 1.79 $ 1.75 ________________________________________ (1) Net of preferred stock dividends. 104 Table of Contents ARBOR REALTY TRUST, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued) (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 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. Note 18 — Income Taxes We are organized and conduct our operations to qualify as a REIT and to comply with the provisions of the Internal Revenue Code. A REIT is generally not subject to federal income tax on taxable income which it distributes to its stockholders; provided that it distributes at least 90% of its taxable income and meets certain other requirements. 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 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 (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): Year Ended December 31, 2025 2024 2023 Pre‑tax GAAP income: REIT $ 110,382 $ 247,068 $ 320,045 TRS Consolidated Group 66,226 50,329 107,858 Total pre‑tax GAAP income $ 176,608 $ 297,397 $ 427,903 Our provision for income taxes is comprised as follows ($ in thousands): Year Ended December 31, 2025 2024 2023 Current tax provision: Federal $ 10,799 $ 18,880 $ 26,269 State 4,207 6,211 8,427 Total 15,006 25,091 34,696 Deferred tax provision (benefit): Federal $ 3,001 $ ( 8,795 ) $ ( 5,272 ) State 772 ( 2,818 ) ( 1,783 ) Valuation allowance — — ( 294 ) Total 3,773 ( 11,613 ) ( 7,349 ) Total income tax expense $ 18,779 $ 13,478 $ 27,347 105 Table of Contents ARBOR REALTY TRUST, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued) 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 ($ in thousands): Year Ended December 31, 2025 2024 2023 U.S. 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 ) % 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): December 31, 2025 2024 Deferred tax assets: Expenses not currently deductible $ 35,812 $ 33,189 Loan loss reserves 455 7,084 Net operating loss carryforwards 274 234 Other 531 396 Deferred tax assets, net $ 37,072 $ 40,903 Deferred tax liabilities: Mortgage servicing rights $ 24,878 $ 24,420 Intangibles 5,255 5,106 Interest in equity affiliates, net 904 1,568 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 $ 1,837 106 Table of Contents 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 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. Note 19 — Agreements and Transactions with Related Parties Support Agreement and Employee Secondment Agreement. We have a support agreement and a secondment agreement with ACM and certain of its affiliates and certain affiliates of a relative of our chief executive officer (“Service Recipients”) where we provide support services and seconded employees to the Service Recipients. The Service Recipients reimburse us for the costs of performing such services and the cost of the seconded employees. 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. 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 $ 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 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’ 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. 107 Table of Contents ARBOR REALTY TRUST, INC. 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 $ 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 $ 1.4 million and $ 0.2 million for 2025 and 2024, respectively. 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 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 ($ 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 108 Table of Contents ARBOR REALTY TRUST, INC. AND SUBSIDIARIES 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. In 2021, we invested $ 4.2 million for 49.3 % interest in a limited liability company (“LLC”) which purchased a retail property for $ 32.5 million and assumed an existing $ 26.0 million CMBS loan. A portion of the property can potentially be converted to office space, of which we obtain the right to occupy, in part. 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. 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 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. 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 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 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. 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 . 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 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. 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. We carry a maximum loss-sharing obligation with Fannie Mae on this loan of up to 5 % of the original UPB. 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. 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, 109 Table of Contents ARBOR REALTY TRUST, INC. AND SUBSIDIARIES 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 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. 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. Separate from the loans we originated in 2018, we provide limited (“bad boy”) guarantees for certain other debt controlled by Lexford. The bad boy guarantees may become a liability for us upon standard “bad” acts such as fraud or a material misrepresentation by Lexford or us. 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. Our chief executive officer and his affiliated entities (“the Kaufman Entities”) together beneficially own approximately 35 % of the outstanding membership interests of ACM and certain of our employees and directors also hold an ownership interest in ACM. Furthermore, one of our directors serves as the trustee and co-trustee of two of the Kaufman Entities that hold membership interests in ACM. At December 31, 2025, ACM holds 2,535,870 shares of our common stock and 10,483,930 OP Units, which represents 6.2 % of the voting power of our outstanding stock. Our Board of Directors approved a resolution under our charter allowing our chief executive officer and ACM, (which our chief executive officer has a controlling equity interest in), to own more than the 5 % ownership interest limit of our common stock as stated in our amended charter. Note 20 — Employee Benefits 401(k). We have a 401(k) defined contribution plan (the “401(k) Plan”) which is available to all employees who have completed six months of continuous service. The 401(k) Plan matches 25 % of the first 6 % of each employee’s contribution. We have the option to increase the employer match based on our operating results. In 2025, 2024 and 2023, we recorded $ 1.0 million, $ 1.3 million and $ 1.2 million, respectively, of expenses associated with the 401(k) Plan, which is included in employee compensation and benefits in our consolidated statements of income. Deferred Compensation. 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 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: (1) match the contribution, as specified in the Deferred Comp Plan, and fund such amounts upon vesting and an election by participants to redeem their interests; and/or (2) supply additional life insurance benefits. All employee deferrals vest immediately and the matching contributions, where applicable, vest over a nine-year period beginning after year five. For 2025, 2024 and 2023, there were $ 2.7 million, $ 2.8 million and $ 3.1 million, respectively, of employee deferrals. At December 31, 2025 and 2024, we had recorded liabilities totaling $ 52.9 million and $ 45.9 million, respectively, and assets of $ 44.5 million and $ 38.3 million, respectively, related to the Deferred Comp Plan, which is included in other liabilities and other assets, respectively, in our consolidated balance sheets. Note 21 — Segment Information As described in Note 1, we operate through two business segments – our Structured Business and our Agency Business. The summarized statements of income and balance sheet data, as well as certain other data, by segment are included in the following tables ($ in thousands). Specifically identifiable costs are recorded directly to each business segment. For items not specifically identifiable, costs have been allocated between the business segments using the most meaningful allocation methodologies, which was predominately direct labor costs (i.e., time spent working on each business segment). Such costs include, but are not limited to, compensation and employee related costs, selling and administrative expenses and stock-based compensation. Intersegment revenue and expenses have been eliminated in the computation of total revenue and operating income. Our chief operating decision maker (“CODM”) is Ivan Kaufman, our Chief Executive Officer. The CODM uses both net interest income and net income for each segment predominantly in the annual budget and forecasting process. The CODM considers both budget and actual results on a quarterly basis for both profit measures when making decisions about the allocation of operating and capital resources to each segment. The CODM also uses segment net interest income and net income to assess the performance of each segment by comparing the results of each segment with one another and in determining the compensation of certain employees. 110 Table of Contents ARBOR REALTY TRUST, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued) Year Ended December 31, 2025 Structured Business Agency Business Other (1) Consolidated Interest income $ 890,933 $ 49,075 $ — $ 940,008 Interest expense 676,641 25,195 — 701,836 Net interest income 214,292 23,880 — 238,172 Other revenue: Gain on sales, including fee-based services, net — 70,669 — 70,669 Mortgage servicing rights — 54,532 — 54,532 Servicing revenue — 181,129 — 181,129 Amortization of MSRs — ( 71,512 ) — ( 71,512 ) Property operating income 21,347 — — 21,347 Gain on derivative instruments, net — 1,259 — 1,259 Other income, net 10,537 4,264 — 14,801 Total other revenue 31,884 240,341 — 272,225 Other expenses: Employee compensation and benefits 65,897 87,055 — 152,952 Commissions — 21,193 — 21,193 Selling and administrative 30,368 29,437 — 59,805 Property operating expenses 27,980 — — 27,980 Depreciation and amortization 21,648 1,566 — 23,214 Impairment loss on real estate owned 20,500 — — 20,500 Provision for loss sharing, net — 24,259 — 24,259 Provision for loan losses, net 36,259 6,437 — 42,696 Total other expenses 202,652 169,947 — 372,599 Income before extinguishment on debt, loss on real estate, income from equity affiliates and income taxes 43,524 94,274 — 137,798 Loss on extinguishment of debt ( 2,919 ) — — ( 2,919 ) Loss on real estate ( 9,151 ) — — ( 9,151 ) Income from equity affiliates 50,880 — — 50,880 Provision for income taxes ( 1,634 ) ( 17,145 ) — ( 18,779 ) Net income 80,700 77,129 — 157,829 Preferred stock dividends 41,369 — — 41,369 Net income attributable to noncontrolling interest — — 9,033 9,033 Net income attributable to common stockholders $ 39,331 $ 77,129 $ ( 9,033 ) $ 107,427 111 Table of Contents ARBOR REALTY TRUST, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued) Year Ended December 31, 2024 Structured Business Agency Business Other (1) Consolidated Interest income $ 1,112,763 $ 55,109 $ — $ 1,167,872 Interest expense 781,668 22,947 — 804,615 Net interest income 331,095 32,162 — 363,257 Other revenue: Gain on sales, including fee-based services, net — 74,932 — 74,932 Mortgage servicing rights — 51,272 — 51,272 Servicing revenue — 194,318 — 194,318 Amortization of MSRs — ( 68,422 ) — ( 68,422 ) Property operating income 7,226 — — 7,226 Loss on derivative instruments, net — ( 8,543 ) — ( 8,543 ) Other income, net 7,255 828 — 8,083 Total other revenue 14,481 244,385 — 258,866 Other expenses: Employee compensation and benefits 67,187 87,728 — 154,915 Commissions — 26,779 — 26,779 Selling and administrative 26,922 28,009 — 54,931 Property operating expenses 7,394 — — 7,394 Depreciation and amortization 6,296 3,259 — 9,555 Provision for loss sharing, net — 11,782 — 11,782 Provision for credit losses, net 63,953 4,590 — 68,543 Total other expenses 171,752 162,147 — 333,899 Income before extinguishment of debt, gain on real estate, income from equity affiliates and income taxes 173,824 114,400 — 288,224 Loss on extinguishment of debt ( 412 ) — — ( 412 ) Gain of real estate 3,813 — — 3,813 Income from equity affiliates 5,772 — — 5,772 Benefit from (provision for) income taxes 3,590 ( 17,068 ) — ( 13,478 ) Net income 186,587 97,332 — 283,919 Preferred stock dividends 41,369 — — 41,369 Net income attributable to noncontrolling interest — — 19,278 19,278 Net income attributable to common stockholders $ 145,218 $ 97,332 $ ( 19,278 ) $ 223,272 112 Table of Contents ARBOR REALTY TRUST, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued) Year Ended December 31, 2023 Structured Business Agency Business Other (1) Consolidated Interest income $ 1,279,433 $ 51,786 $ — $ 1,331,219 Interest expense 880,602 22,626 — 903,228 Net interest income 398,831 29,160 — 427,991 Other revenue: Gain on sales, including fee-based services, net — 72,522 — 72,522 Mortgage servicing rights — 69,912 — 69,912 Servicing revenue — 193,542 — 193,542 Amortization of MSRs — ( 63,093 ) — ( 63,093 ) Property operating income 5,708 — — 5,708 Gain on derivative instruments, net — 6,763 — 6,763 Other income, net 4,868 2,799 — 7,667 Total other revenue 10,576 282,445 — 293,021 Other expenses: Employee compensation and benefits 53,507 87,760 — 141,267 Commissions — 18,521 — 18,521 Selling and administrative 23,234 28,026 — 51,260 Property operating expenses 5,897 — — 5,897 Depreciation and amortization 5,052 4,691 — 9,743 Provision for loss sharing, net — 15,695 — 15,695 Provision for credit losses, net 70,344 3,102 — 73,446 Total other expenses 158,034 157,795 — 315,829 Income before extinguishment of debt, income from equity affiliates and income taxes 251,373 153,810 — 405,183 Loss on extinguishment of debt ( 1,561 ) — — ( 1,561 ) Income from equity affiliates 24,281 — — 24,281 Benefit from (provision for) income taxes 803 ( 28,150 ) — ( 27,347 ) Net income 274,896 125,660 — 400,556 Preferred stock dividends 41,369 — — 41,369 Net income attributable to noncontrolling interest — — 29,122 29,122 Net income attributable to common stockholders $ 233,527 $ 125,660 $ ( 29,122 ) $ 330,065 ________________________________________ (1) Includes income allocated to the noncontrolling interest holders not allocated to the two reportable segments. 113 Table of Contents ARBOR REALTY TRUST, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued) December 31, 2025 Structured Business Agency Business Consolidated Assets: Cash and cash equivalents $ 124,141 $ 358,734 $ 482,875 Restricted cash 35,258 32,089 67,347 Loans and investments, net 11,934,248 — 11,934,248 Loans held-for-sale, net — 409,081 409,081 Capitalized mortgage servicing rights, net — 340,842 340,842 Securities held-to-maturity, net — 156,087 156,087 Investments in equity affiliates 57,966 — 57,966 Real estate owned, net 498,938 — 498,938 Goodwill and other intangible assets 12,500 74,053 86,553 Other assets and due from related party 382,735 78,231 460,966 Total assets $ 13,045,786 $ 1,449,117 $ 14,494,903 Liabilities: Debt obligations $ 10,625,053 $ 390,396 $ 11,015,449 Allowance for loss-sharing obligations — 97,579 97,579 Other liabilities and due to related parties 241,873 72,849 314,722 Total liabilities $ 10,866,926 $ 560,824 $ 11,427,750 December 31, 2024 Assets: Cash and cash equivalents $ 58,188 $ 445,615 $ 503,803 Restricted cash 134,320 22,056 156,376 Loans and investments, net 11,033,997 — 11,033,997 Loans held-for-sale, net — 435,759 435,759 Capitalized mortgage servicing rights, net — 368,678 368,678 Securities held-to-maturity, net — 157,154 157,154 Investments in equity affiliates 76,312 — 76,312 Real estate owned, net 176,543 — 176,543 Goodwill and other intangible assets 12,500 75,619 88,119 Other assets and due from related party 415,310 78,930 494,240 Total assets $ 11,907,170 $ 1,583,811 $ 13,490,981 Liabilities: Debt obligations $ 9,500,901 $ 422,661 $ 9,923,562 Allowance for loss-sharing obligations — 83,150 83,150 Other liabilities and due to related parties 244,948 87,351 332,299 Total liabilities $ 9,745,849 $ 593,162 $ 10,339,011 114 Table of Contents ARBOR REALTY TRUST, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued) Year Ended December 31, 2025 2024 2023 Origination Data: Structured Business Bridge: SFR $ 1,947,107 $ 869,141 $ 524,060 Multifamily 1,183,945 444,635 415,330 Land — 10,350 — 3,131,052 1,324,126 939,390 Construction - Multifamily 242,844 4,368 — Mezzanine / Preferred Equity 149,642 97,305 43,953 Total New Loan Originations $ 3,523,538 $ 1,425,799 $ 983,343 Number of Loans Originated 98 170 150 Commitments: SFR $ 665,834 $ 1,438,841 $ 1,150,687 Construction - Multifamily 470,500 101,000 — Total Commitments $ 1,136,334 $ 1,539,841 $ 1,150,687 Loan Runoff $ 2,213,378 $ 2,691,583 $ 3,354,055 Agency Business Origination Volumes by Investor: Fannie Mae $ 2,982,659 $ 2,374,040 $ 3,773,532 Freddie Mac 1,924,773 1,770,976 756,827 FHA 78,145 146,507 257,199 Private Label 44,925 151,936 299,934 SFR - Fixed Rate 43,762 27,314 19,328 Total New Loan Originations $ 5,074,264 $ 4,470,773 $ 5,106,820 Total Loan Commitment Volume $ 5,103,885 $ 4,443,972 $ 5,207,148 Agency Business Loan Sales Data: Fannie Mae $ 2,850,697 $ 2,680,018 $ 3,469,340 Freddie Mac 2,081,749 1,662,010 715,530 FHA 128,282 116,058 240,079 SFR - Fixed Rate 43,762 27,314 22,931 Private Label — 124,286 441,319 Total Loan Sales $ 5,104,490 $ 4,609,686 $ 4,889,199 Sales Margin (fee-based services as a % of loan sales) 1.38 % 1.63 % 1.48 % MSR Rate (MSR income as a % of loan commitments) 1.07 % 1.15 % 1.34 % 115 Table of Contents ARBOR REALTY TRUST, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued) December 31, 2025 Key Servicing Metrics for Agency Business: Servicing Portfolio UPB Wtd. Avg. Servicing Fee Rate (basis points) Wtd. Avg. Life of Portfolio (years) Fannie Mae $ 24,085,960 44.7 5.5 Freddie Mac 7,455,088 18.3 5.9 Private Label 2,558,048 18.7 4.5 FHA 1,549,483 13.9 19.1 Bridge 277,738 10.4 2.2 SFR - Fixed Rate 277,490 20.0 4.0 Total $ 36,203,807 35.6 6.1 December 31, 2024 Fannie Mae $ 22,730,056 46.4 6.4 Freddie Mac 6,077,020 21.5 6.8 Private Label 2,605,980 18.7 5.5 FHA 1,506,948 14.1 19.2 Bridge 278,494 10.4 3.0 SFR - Fixed Rate 271,859 20.1 4.4 Total $ 33,470,357 37.8 6.9 116 Table of Contents ARBOR REALTY TRUST, INC. AND SUBSIDIARIES SCHEDULE IV — LOANS AND OTHER LENDING INVESTMENTS ($ in thousands) Type Location Periodic Payment Terms (1) Maturity Date (2) Interest Pay Rate Index (3) Prior Liens Face Amount (4) Carrying Amount (5) Carrying Amount Subject to Delinquent Interest Bridge Loans: Bridge loans less than 3% of carrying amount of total loans (6): Multifamily Various IO / PI 2026 - 2031 SOFR+ - 1.35 % to 5.75 % $ — $ 8,143,114 $ 8,029,392 $ 470,439 SOFR Floor 0.10 % to 5.33 % Fixed 0.00 % to 11.00 % Single‑Family Rental Various IO / PI 2026 - 2028 SOFR+ 1.70 % to 6.20 % — 3,184,910 3,157,927 — SOFR Floor 0.10 % to 5.36 % Office NY IO / PI 2028 Fixed 1.00 % — 33,410 33,159 — Retail CT IO / PI 2026 SOFR+ 5.50 % — 10,324 10,324 — SOFR Floor 1.00 % Total Bridge Loans — 11,371,758 11,230,802 470,439 Mezzanine Loans: Mezzanine loans less than 3% of carrying amount of total loans (6): Multifamily Various IO / PI 2026 - 2034 Fixed 0.00 % to 14.00 % 1,941,429 283,581 264,622 — 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 Preferred Equity Investments: Preferred equity investments less than 3% of carrying amount of total loans (6): Multifamily Various IO 2026 - 2033 Fixed 0.00 % to 16.00 % 1,162,113 198,127 189,066 — Land TX IO / PI 2026 Fixed 0.00 % — 2,291 1,915 — Commercial NY IO 2026 Fixed 6.00 % 29,792 1,700 — 1,700 Total Preferred Equity Investments 1,191,905 202,118 190,981 1,700 Other Loans: Other loans less than 3% of carrying amount of total loans (6): Construction - Multifamily Various IO 2026 - 2030 SOFR+ 4.25 % to 5.75 % — 249,019 244,116 — SOFR Floor 3.50 % to 4.00% Total Other Loans — 249,019 244,116 — Total Loans $ 3,133,334 $ 12,113,107 $ 11,934,248 $ 472,670 ________________________________________ (1) IO = Interest Only, PI = Principal and Interest. (2) Maturity date does not include possible extensions. (3) References to SOFR are to one-month SOFR unless specifically stated otherwise. (4) During 2025, $ 5.14 billion of loans were extended. (5) The federal income tax basis is approximately $ 12.11 billion. (6) Individual loans each have a carrying value less than 3 % of total loans. 117 Table of Contents ARBOR REALTY TRUST, INC. AND SUBSIDIARIES SCHEDULE IV — LOANS AND OTHER LENDING INVESTMENTS (Continued) ($ in thousands) The following table reconciles our loans and investments carrying amounts for the periods indicated ($ in thousands): Year Ended December 31, 2025 2024 2023 Balance at beginning of year $ 11,033,997 $ 12,377,806 $ 14,254,674 Additions during period: New loan originations 3,523,538 1,425,799 983,343 Funding of unfunded loan commitments (1) 1,341,948 627,790 835,484 Accretion of unearned revenue 22,418 33,501 41,125 Reversals/recoveries of reserves 406 12,959 4,776 Loan charge‑offs 128,337 15,709 — Deductions during period: Loan payoffs and paydowns ( 2,213,378 ) ( 2,691,583 ) ( 3,354,055 ) Unfunded loan commitments (1) ( 1,112,444 ) ( 564,777 ) ( 260,789 ) Unearned revenue and costs ( 23,314 ) ( 19,001 ) ( 13,772 ) Reclassification to real estate owned, net ( 603,176 ) ( 100,025 ) ( 39,400 ) Provision for loan losses ( 35,747 ) ( 68,472 ) ( 73,580 ) Use of loan charge‑offs ( 128,337 ) ( 15,709 ) — Balance at end of year $ 11,934,248 $ 11,033,997 $ 12,377,806 ________________________________________ (1) In accordance with certain loans and investments, we have outstanding unfunded commitments that we are obligated to fund as the borrowers meet certain requirements. Specific requirements include, but are not limited to, property renovations, building construction and conversions based on criteria met by the borrower in accordance with the loan agreements. 118 Table of Contents Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure None.