ARBOR REALTY TRUST INC 10-Q

Item 1. Financial Statements ARBOR REALTY TRUST, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS ($ in thousands, except share and per share data) June 30, 2026 (Unaudited) December 31, 2025 Assets: Cash and cash equivalents $ 287,525 $ 482,875 Restricted cash 138,382 67,347 Loans and investments, net (allowance for credit losses of $ 163,431 and $ 145,971 ) 11,915,216 11,934,248 Loans held-for-sale, net 375,797 409,081 Capitalized mortgage servicing rights, net 323,887 340,842 Securities held-to-maturity, net (allowance for credit losses of $ 14,343 and $ 17,013 ) 157,137 156,087 Investments in equity affiliates 82,762 57,966 Real estate owned, net 545,946 498,938 Goodwill and other intangible assets 85,770 86,553 Other assets 440,403 460,966 Total assets $ 14,352,825 $ 14,494,903 Liabilities and Equity: Credit and repurchase facilities $ 5,812,258 $ 5,149,651 Securitized debt 2,972,246 3,468,258 Senior unsecured notes 1,857,769 2,029,078 Junior subordinated notes to subsidiary trust issuing preferred securities 145,907 145,497 Notes payable - real estate owned 270,410 222,965 Due to borrowers 27,562 33,451 Allowance for loss-sharing obligations 118,898 97,579 Other liabilities 266,752 281,271 Total liabilities 11,471,802 11,427,750 Commitments and contingencies (Note 14) 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: 633,683 633,683 Special voting preferred shares - 16,170,218 and 16,169,858 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 - 188,981,757 and 195,491,855 shares issued and outstanding 1,890 1,955 Additional paid-in capital 2,409,539 2,454,312 Accumulated deficit ( 267,177 ) ( 136,597 ) Total Arbor Realty Trust, Inc. stockholders' equity 2,777,935 2,953,353 Noncontrolling interest 103,088 113,800 Total equity 2,881,023 3,067,153 Total liabilities and equity $ 14,352,825 $ 14,494,903 Note: Our consolidated balance sheets include assets and liabilities of consolidated variable interest entities ("VIEs,") as we are the primary beneficiary of these VIEs. At June 30, 2026 and December 31, 2025, assets of our consolidated VIEs totaled $ 3,790,046 and $ 4,662,021 , respectively, and the liabilities of our consolidated VIEs totaled $ 2,978,886 and $ 3,477,848 , respectively. See Note 15 for discussion of our VIEs. See Notes to Consolidated Financial Statements. 2 Table of Contents ARBOR REALTY TRUST, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) ($ in thousands, except share and per share data) Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Interest income $ 230,858 $ 240,303 $ 465,905 $ 480,997 Interest expense 177,761 171,578 352,963 336,829 Net interest income 53,097 68,725 112,942 144,168 Other revenue: Gain on sales, including fee-based services, net 15,176 13,658 27,681 26,439 Mortgage servicing rights 12,110 10,930 21,770 19,061 Servicing revenue, net 23,879 27,437 49,619 53,040 Property operating income 8,313 5,452 16,373 9,839 Gain on derivative instruments, net 1,041 219 548 3,619 Other income, net 2,260 3,989 4,336 8,407 Total other revenue 62,779 61,685 120,327 120,405 Other expenses: Employee compensation and benefits 45,096 41,181 92,779 87,217 Selling and administrative 15,868 14,859 32,821 31,171 Property operating expenses 12,670 6,802 24,635 10,276 Depreciation and amortization 5,929 5,848 13,033 9,592 Impairment loss on real estate owned 13,650 — 26,150 — Provision for loss sharing, net 13,472 4,215 18,009 6,002 Provision for credit losses, net 38,163 19,004 43,979 28,079 Total other expenses 144,848 91,909 251,406 172,337 (Loss) income before extinguishment of debt, gain (loss) on real estate, income from equity affiliates and income taxes ( 28,972 ) 38,501 ( 18,137 ) 92,236 Loss on extinguishment of debt — — — ( 2,319 ) Gain (loss) on real estate 64 ( 1,448 ) ( 2,073 ) ( 4,258 ) Income from equity affiliates 1,893 2,654 6,304 1,020 Provision for income taxes ( 3,150 ) ( 3,398 ) ( 5,235 ) ( 6,989 ) Net (loss) income ( 30,165 ) 36,309 ( 19,141 ) 79,690 Preferred stock dividends 10,342 10,342 20,684 20,684 Net (loss) income attributable to noncontrolling interest ( 3,165 ) 2,015 ( 3,112 ) 4,617 Net (loss) income attributable to common stockholders $ ( 37,342 ) $ 23,952 $ ( 36,713 ) $ 54,389 Basic (loss) earnings per common share $ ( 0.20 ) $ 0.12 $ ( 0.19 ) $ 0.28 Diluted (loss) earnings per common share $ ( 0.20 ) $ 0.12 $ ( 0.19 ) $ 0.28 Weighted average shares outstanding: Basic 190,806,800 192,236,206 192,491,494 191,154,501 Diluted 190,806,800 209,003,002 192,491,494 207,938,574 Dividends declared per common share $ 0.17 $ 0.30 $ 0.47 $ 0.73 See Notes to Consolidated Financial Statements. 3 Table of Contents ARBOR REALTY TRUST, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Unaudited) ($ in thousands, except shares) Three Months Ended June 30, 2026 Preferred Stock Shares Preferred Stock Value Common Stock Shares Common Stock Par Value Additional Paid-in Capital Accumulated Deficit Total Arbor Realty Trust, Inc. Stockholders’ Equity Noncontrolling Interest Total Equity Balance – April 1, 2026 42,462,218 $ 633,683 192,370,465 $ 1,924 $ 2,428,500 $ ( 194,058 ) $ 2,870,049 $ 109,001 $ 2,979,050 Repurchase - common stock — — ( 3,550,691 ) ( 36 ) ( 20,814 ) — ( 20,850 ) — ( 20,850 ) Stock-based compensation, net — — 161,983 2 1,853 — 1,855 — 1,855 Distributions - common stock — — — — — ( 32,442 ) ( 32,442 ) — ( 32,442 ) Distributions - preferred stock — — — — — ( 13,677 ) ( 13,677 ) — ( 13,677 ) Distributions - noncontrolling interest — — — — — — — ( 2,748 ) ( 2,748 ) Net loss — — — — — ( 27,000 ) ( 27,000 ) ( 3,165 ) ( 30,165 ) Balance – June 30, 2026 42,462,218 $ 633,683 188,981,757 $ 1,890 $ 2,409,539 $ ( 267,177 ) $ 2,777,935 $ 103,088 $ 2,881,023 Six Months Ended June 30, 2026 Balance – January 1, 2026 42,461,858 $ 633,683 195,491,855 $ 1,955 $ 2,454,312 $ ( 136,597 ) $ 2,953,353 $ 113,800 $ 3,067,153 Repurchase - common stock — — ( 7,668,592 ) ( 77 ) ( 51,506 ) — ( 51,583 ) — ( 51,583 ) Stock-based compensation, net — — 1,158,494 12 6,733 — 6,745 — 6,745 Distributions - common stock — — — — — ( 90,527 ) ( 90,527 ) — ( 90,527 ) Distributions - preferred stock — — — — — ( 24,024 ) ( 24,024 ) — ( 24,024 ) Distributions - noncontrolling interest — — — — — — — ( 7,600 ) ( 7,600 ) Redemption of OP Units 360 — — — — — — — — Net loss — — — — — ( 16,029 ) ( 16,029 ) ( 3,112 ) ( 19,141 ) Balance – June 30, 2026 42,462,218 $ 633,683 188,981,757 $ 1,890 $ 2,409,539 $ ( 267,177 ) $ 2,777,935 $ 103,088 $ 2,881,023 4 Table of Contents Three Months Ended June 30, 2025 Preferred Stock Shares Preferred Stock Value Common Stock Shares Common Stock Par Value Additional Paid-in Capital (Accumulated Deficit) Retained Earnings Total Arbor Realty Trust, Inc. Stockholders’ Equity Noncontrolling Interest Total Equity Balance – April 1, 2025 42,465,761 $ 633,682 192,161,707 $ 1,922 $ 2,410,499 $ ( 38,600 ) $ 3,007,503 $ 121,956 $ 3,129,459 Issuance - common stock — — 145,000 — 1,591 — 1,591 — 1,591 Stock-based compensation, net — — ( 5,293 ) — ( 429 ) — ( 429 ) — ( 429 ) Distributions - common stock — — — — — ( 57,870 ) ( 57,870 ) — ( 57,870 ) Distributions - preferred stock — — — — — ( 10,345 ) ( 10,345 ) — ( 10,345 ) Distributions - noncontrolling interest — — — — — — — ( 4,852 ) ( 4,852 ) Net income — — — — — 34,294 34,294 2,015 36,309 Balance – June 30, 2025 42,465,761 $ 633,682 192,301,414 $ 1,922 $ 2,411,661 $ ( 72,521 ) $ 2,974,744 $ 119,119 $ 3,093,863 Six Months Ended June 30, 2025 Balance – January 1, 2025 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 — — 2,508,750 25 30,776 — 30,801 — 30,801 Stock-based compensation, net — — 533,229 4 5,416 — 5,420 — 5,420 Distributions - common stock — — — — — ( 139,941 ) ( 139,941 ) — ( 139,941 ) Distributions - preferred stock — — — — — ( 20,692 ) ( 20,692 ) — ( 20,692 ) Distributions - noncontrolling interest — — — — — — — ( 11,808 ) ( 11,808 ) Redemption of OP Units ( 119,828 ) ( 2 ) — — — — ( 2 ) ( 1,575 ) ( 1,577 ) Net income — — — — — 75,073 75,073 4,617 79,690 Balance – June 30, 2025 42,465,761 $ 633,682 192,301,414 $ 1,922 $ 2,411,661 $ ( 72,521 ) $ 2,974,744 $ 119,119 $ 3,093,863 See Notes to Consolidated Financial Statements. 5 Table of Contents ARBOR REALTY TRUST, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (in thousands) Six Months Ended June 30, 2026 2025 Operating activities: Net (loss) income $ ( 19,141 ) $ 79,690 Adjustments to reconcile net (loss) income to net cash provided by operating activities: Depreciation and amortization 13,033 9,592 Stock-based compensation 9,089 8,545 Amortization and accretion of interest and fees, net 6,416 6,549 Originations of loans held-for-sale ( 1,784,340 ) ( 1,467,283 ) Proceeds from sales of loans held-for-sale, net of gain on sale 1,814,410 1,537,874 Payoffs and paydowns of loans held-for-sale 69 6,503 Mortgage servicing rights ( 21,770 ) ( 19,061 ) Amortization of capitalized mortgage servicing rights 36,540 35,525 Write-off of capitalized mortgage servicing rights from payoffs 3,893 5,164 Provision for loss sharing, net 18,009 6,002 Provision for credit losses, net 43,979 28,079 Charge-offs and advances, net of reimbursements 3,310 605 Deferred tax benefit ( 4,791 ) ( 1,741 ) Income from equity affiliates ( 6,304 ) ( 1,020 ) Distributions from operations of equity affiliates 9,104 4,138 Loss on extinguishment of debt — 2,319 Impairment loss on real estate owned 26,150 — Change in fair value of held-for-sale loans 412 ( 2,788 ) Gain on derivative instruments, net ( 548 ) ( 3,619 ) Loss on real estate 2,073 4,258 Changes in operating assets and liabilities 379 ( 28,734 ) Net cash provided by operating activities 149,972 210,597 Investing Activities: Loans and investments funded, originated and purchased, net ( 1,575,738 ) ( 1,484,429 ) Payoffs and paydowns of loans and investments 1,491,887 962,014 Deferred fees 11,084 16,002 Contributions to equity affiliates ( 28,251 ) ( 6,507 ) Distributions from equity affiliates 656 7,905 Payoffs and paydowns of securities held-to-maturity — 121 Investment in real estate, net ( 27,925 ) ( 14,007 ) Change in due to borrowers and reserves ( 100 ) ( 3,224 ) Net cash used in investing activities ( 128,387 ) ( 522,125 ) Financing activities: Proceeds from credit and repurchase facilities 5,672,204 4,936,438 Payoffs and paydowns of credit and repurchase facilities ( 4,981,763 ) ( 3,774,678 ) Proceeds from issuance of securitized debt 818,344 491,416 Payoffs and paydowns of securitized debt ( 1,312,080 ) ( 1,599,961 ) Payoffs and paydowns of senior unsecured notes ( 175,000 ) — Proceeds from notes payable - REO 41,736 177,534 Payoffs and paydowns of notes payable - REO ( 24,454 ) ( 67,812 ) Proceeds from issuance of common stock — 30,801 Repurchase of common stock ( 51,583 ) — Redemption of operating partnership units — ( 1,577 ) Payments of withholding taxes on net settlement of vested stock ( 2,344 ) ( 3,125 ) Distributions to stockholders and noncontrolling interest ( 118,819 ) ( 172,441 ) Payment of deferred financing costs ( 12,141 ) ( 18,560 ) Net cash used in financing activities ( 145,900 ) ( 1,965 ) Net decrease in cash, cash equivalents and restricted cash ( 124,315 ) ( 313,493 ) Cash, cash equivalents and restricted cash at beginning of period 550,222 660,179 Cash, cash equivalents and restricted cash at end of period $ 425,907 $ 346,686 See Notes to Consolidated Financial Statements. 6 Table of Contents ARBOR REALTY TRUST, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (Continued) (in thousands) Six Months Ended June 30, 2026 2025 Reconciliation of cash, cash equivalents and restricted cash: Cash and cash equivalents at beginning of period $ 482,875 $ 503,803 Restricted cash at beginning of period 67,347 156,376 Cash, cash equivalents and restricted cash at beginning of period $ 550,222 $ 660,179 Cash and cash equivalents at end of period $ 287,525 $ 255,742 Restricted cash at end of period 138,382 90,944 Cash, cash equivalents and restricted cash at end of period $ 425,907 $ 346,686 Supplemental cash flow information: Cash used to pay interest $ 341,865 $ 325,903 Cash used to pay taxes 1,704 11,122 Supplemental schedule of non-cash investing and financing activities: Real estate acquired in settlement of loans and investments, net 169,844 355,954 Settlement of loans and investments, net of real estate ( 174,318 ) ( 376,059 ) Derecognition of real estate owned 113,806 175,882 Loan funded in conjunction with real estate sold ( 107,760 ) ( 183,955 ) Distributions accrued on preferred stock 10,342 7,010 See Notes to Consolidated Financial Statements. 7 Table of Contents ARBOR REALTY TRUST, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) Note 1 — Description of Business Arbor Realty Trust, Inc. (“we,” “us,” “our,” or the "Company") is a Maryland corporation formed in 2003. We are a nationwide real estate investment trust (“REIT”) and direct lender, providing loan origination and servicing for commercial real estate assets. We operate through two business segments: our Structured Loan Origination and Investment Business, or “Structured Business,” and our Agency Loan Origination and Servicing Business, or “Agency Business.” Through our Structured Business, we invest in a diversified portfolio of structured finance assets in the multifamily, single-family rental (“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 the Federal National Mortgage Association (“Fannie Mae”) and the Federal Home Loan Mortgage Corporation (“Freddie Mac,” and together with Fannie Mae, the government-sponsored enterprises, or “GSEs,”) the Government National Mortgage Association (“Ginnie Mae,”) Federal Housing Authority (“FHA”) and the U.S. Department of Housing and Urban Development (together with Ginnie Mae and FHA, “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 Delegated Underwriting and Servicing (“DUS”) lender nationally, a Freddie Mac Optigo® Conventional Loan and Small Balance Loan (“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 that are generally 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 conduit/commercial mortgage-backed securities ("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, Arbor Realty Limited 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 its REIT-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 taxable REIT subsidiaries (“TRS,”) which are part of our TRS consolidated group (the “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 have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”), for interim financial statements and the instructions to Form 10-Q. Accordingly, certain information and footnote disclosures normally included in the consolidated financial statements prepared under GAAP have been condensed or omitted. 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. The operating results presented for interim periods are not necessarily indicative of the results that may be expected for any other interim period or for the entire year. These financial statements should be read in conjunction with our financial statements and notes thereto included in our 2025 Annual Report. 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 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 15. 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 uncertainty related to broader economic, market and industry conditions, such as the impact of inflation, 8 Table of Contents ARBOR REALTY TRUST, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) the interest rate environment, capital market conditions, property values, geopolitical events and tariff developments, both globally, and to our business, makes any estimate or assumption at June 30, 2026 inherently less certain. Significant Accounting Policies See Item 8 – Financial Statements and Supplementary Data in our 2025 Annual Report for a description of our significant accounting policies. There have been no significant changes to our significant accounting policies since December 31, 2025. Reclassification Certain prior period amounts have been reclassified to conform to the current period presentation. Amounts previously presented separately as due from related party and due to related party are now included within other assets and other liabilities, respectively. As of December 31, 2025, the reclassification increased other assets by $ 6.5 million and increased other liabilities by $ 0.5 million. The reclassification had no impact on total assets, total liabilities, shareholders' equity, net income (loss) or cash flows. Note 3 — Loans and Investments Our Structured Business loan and investment portfolio consists of ($ in thousands): June 30, 2026 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) $ 11,318,551 93 % 386 6.39 % 14.5 0 % 78 % Mezzanine loans 300,880 3 % 61 8.01 % 45.1 57 % 80 % Construction - multifamily 285,482 2 % 9 9.00 % 22.5 0 % 59 % Preferred equity investments 202,118 2 % 34 6.87 % 40.1 63 % 82 % Total UPB 12,107,031 100 % 490 6.50 % 15.9 2 % 77 % Allowance for credit losses ( 163,431 ) Unearned revenue ( 28,384 ) Loans and investments, net (6) $ 11,915,216 December 31, 2025 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 ________________________ (1) “Weighted Average Pay Rate” is a weighted average, based on the unpaid principal balance (“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 June 30, 2026 and December 31, 2025 was 21.5 and 19.9, respectively. (3) The “First Dollar Loan-to-Value (“LTV”) Ratio” is calculated by comparing the total of all senior lien positions ahead of our loan or investment 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. If we own the senior most position within the capital stack, the First Dollar LTV Ratio is 0 %. (4) The “Last Dollar LTV Ratio” is calculated by comparing the total of the carrying value of our loan or investment and all senior lien positions ahead of our loan or investment within the capital stack to the fair value of the underlying collateral to determine the point at which we will initially begin to absorb a loss. 9 Table of Contents ARBOR REALTY TRUST, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (5) At June 30, 2026 and December 31, 2025, bridge loans included 176 and 298 , respectively, of SFR loans with a total gross loan commitment of $ 4.53 billion and $ 4.73 billion, respectively, of which $ 3.38 billion and $ 3.18 billion, respectively, was funded. (6) Excludes exit fee receivables of $ 41.5 million and $ 43.0 million at June 30, 2026 and December 31, 2025, 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 June 30, 2026, the UPB related to 33 loans with five different borrowers represented 8 % of total assets. At December 31, 2025, the UPB related to 65 loans with five different borrowers represented 9 % of total assets. During both the three and six months ended June 30, 2026 and the year ended December 31, 2025, 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 18 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, 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. 10 Table of Contents ARBOR REALTY TRUST, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) A summary of the loan portfolio’s internal risk ratings and LTV ratios by asset class at June 30, 2026, and charge-offs recorded for the six months ended June 30, 2026 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 2026 2025 2024 2023 2022 Prior Multifamily: Pass $ 574,805 $ 443,399 $ 50,118 $ 18,643 $ 94,477 $ 158,803 $ 1,340,245 Pass/Watch 269,500 1,139,077 234,660 88,374 540,818 723,660 2,996,089 Special Mention — 464,750 206,869 23,570 1,086,717 1,607,844 3,389,750 Substandard — — 22,758 — 388,659 175,894 587,311 Doubtful — 1,450 9,460 — 164,015 184,726 359,651 Total Multifamily $ 844,305 $ 2,048,676 $ 523,865 $ 130,587 $ 2,274,686 $ 2,850,927 $ 8,673,046 3 % 82 % Single-Family Rental: Percentage of portfolio 72 % Pass $ — $ 27,000 $ — $ — $ — $ — $ 27,000 Pass/Watch 342,645 1,023,989 1,004,907 456,066 287,836 41,106 3,156,549 Special Mention — 25,250 20,256 130,405 19,675 — 195,586 Total Single-Family Rental $ 342,645 $ 1,076,239 $ 1,025,163 $ 586,471 $ 307,511 $ 41,106 $ 3,379,135 0 % 66 % Office: Percentage of portfolio 28 % 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 % 100 % Land: Percentage of portfolio < 1 % Pass/Watch $ — $ — $ — $ — $ — $ 2,785 $ 2,785 Total Land $ — $ — $ — $ — $ — $ 2,785 $ 2,785 0 % 14 % Commercial: Percentage of portfolio < 1 % Doubtful $ — $ — $ — $ — $ — $ 1,700 $ 1,700 Total Commercial $ — $ — $ — $ — $ — $ 1,700 $ 1,700 0 % 100 % Percentage of portfolio < 1 % Grand Total $ 1,186,950 $ 3,124,915 $ 1,549,028 $ 717,058 $ 2,582,197 $ 2,946,883 $ 12,107,031 2 % 77 % Charge-offs $ — $ — $ 4,911 $ — $ 17,322 $ 3,356 $ 25,589 11 Table of Contents ARBOR REALTY TRUST, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) 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 Geographic Concentration Risk At June 30, 2026, underlying properties in Texas and Florida represented 23 % and 18 %, respectively, and 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. No other states represented 10% or more of the total loan and investment portfolio. 12 Table of Contents ARBOR REALTY TRUST, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) Allowance for Credit Losses A summary of the changes in the allowance for credit losses is as follows ($ in thousands): Three Months Ended June 30, 2026 Multifamily Single-Family Rental Retail Commercial Office Land Total Allowance for credit losses: Beginning balance $ 118,462 $ 7,910 $ 2,903 $ 1,700 $ 248 $ — $ 131,223 Provision for credit losses (net of reversals) 37,943 1,625 — — 21 — 39,589 Charge-offs (1) ( 7,381 ) — — — — — ( 7,381 ) Ending balance $ 149,024 $ 9,535 $ 2,903 $ 1,700 $ 269 $ — $ 163,431 Three Months Ended June 30, 2025 Allowance for credit losses: Beginning balance $ 150,911 $ 6,524 $ 3,293 $ 1,700 $ 509 $ 78,000 $ 240,937 Provision for credit losses (net of reversals) 16,552 788 — — ( 46 ) 190 17,484 Charge-offs (1) ( 15,143 ) — — — — — ( 15,143 ) Ending balance $ 152,320 $ 7,312 $ 3,293 $ 1,700 $ 463 $ 78,190 $ 243,278 Six Months Ended June 30, 2026 Allowance for credit losses: Beginning balance $ 131,924 $ 8,817 $ 2,903 $ 1,700 $ 251 $ 376 $ 145,971 Provision for credit losses (net of reversals) 42,689 718 — — 18 ( 376 ) 43,049 Charge-offs (1) ( 25,589 ) — — — — — ( 25,589 ) Ending balance $ 149,024 $ 9,535 $ 2,903 $ 1,700 $ 269 $ — $ 163,431 Six Months Ended June 30, 2025 Allowance for credit losses: Beginning balance $ 148,139 $ 7,524 $ 3,293 $ 1,700 $ 181 $ 78,130 $ 238,967 Provision for credit losses (net of reversals) 23,324 ( 212 ) — — 282 60 23,454 Recoveries ( 406 ) — — — — — ( 406 ) Charge-offs (1) ( 18,737 ) — — — — — ( 18,737 ) Ending balance $ 152,320 $ 7,312 $ 3,293 $ 1,700 $ 463 $ 78,190 $ 243,278 ________________________ (1) Includes specific reserves that were charged-off in connection with the foreclosure of the underlying collateral as real estate owned ("REO") assets at fair value of $ 6.0 million during both the three and six months ended June 30, 2026, and $ 4.4 million and $ 8.4 million during the three and six months ended June 30, 2025, respectively. The provision for credit losses during the three and six months ended June 30, 2026 was primarily attributable to specifically impaired multifamily loans and a softer macroeconomic outlook of the commercial real estate market. 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 current expected credit losses (“CECL”) for unfunded loan commitments are adjusted quarterly and correspond with the associated outstanding loans. At June 30, 2026 and December 31, 2025, we had outstanding unfunded commitments of $ 1.53 billion and $ 1.92 billion, respectively, that we are obligated to fund as borrowers meet certain requirements. The outstanding unfunded commitments are predominantly related to our SFR build-to-rent ("BTR") business. 13 Table of Contents ARBOR REALTY TRUST, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) At June 30, 2026 and December 31, 2025, accrued interest receivable related to our loans totaling $ 156.4 million and $ 165.7 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. 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): June 30, 2026 Asset Class UPB (1) Carrying Value Allowance for Credit Losses Wtd. Avg. First Dollar LTV Ratio Wtd. Avg. Last Dollar LTV Ratio Multifamily $ 422,144 $ 427,118 $ 41,937 0 % 97 % Retail 16,955 16,911 2,903 0 % 100 % Commercial 1,700 1,700 1,700 0 % 100 % Total $ 440,799 $ 445,729 $ 46,540 0 % 97 % December 31, 2025 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 % ________________________ (1) Represents the UPB of 19 and 20 impaired loans (less unearned revenue and other holdbacks and adjustments) by asset class at June 30, 2026 and December 31, 2025, 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 June 30, 2026, 19 loans with an aggregate net carrying value of $ 396.4 million, net of related loan loss reserves of $ 31.1 million, were classified as non-performing and, 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. A summary of our non-performing loans by asset class is as follows ($ in thousands): June 30, 2026 December 31, 2025 UPB Carrying Value UPB Carrying Value Multifamily $ 426,614 $ 425,272 $ 566,906 $ 553,016 Commercial 1,700 1,700 1,700 1,700 Retail 531 531 531 531 Total $ 428,845 $ 427,503 $ 569,137 $ 555,247 At June 30, 2026 and December 31, 2025, we had loans with a UPB of $ 91.2 million and $ 237.0 million, respectively, and accrued interest of $ 1.9 million and $ 6.6 million, respectively, that were greater than 60 days past due and classified as performing loans. All past due payments on these loans have been subsequently collected, except for a loan that was greater than 60 days past due at June 30, 2026 with a UPB of $ 58.6 million and accrued interest of $ 1.6 million. We are currently in the process of modifying that loan and expect to collect the accrued interest in August 2026. 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 14 Table of Contents ARBOR REALTY TRUST, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) 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). Three Months Ended June 30, 2026 Six Months Ended June 30, 2026 Beginning balance ( 0 and 3 multifamily bridge loans) $ — $ 48,311 Loans that progressed to greater than 60 days past due — ( 1,221 ) Loans modified or paid off — ( 47,090 ) Additional loans classified as non-accrual 94,920 94,920 Ending balance ( 3 multifamily bridge loans) $ 94,920 $ 94,920 Three Months Ended June 30, 2025 Six Months Ended June 30, 2025 Beginning balance ( 5 and 9 multifamily bridge loans) $ 142,823 $ 167,428 Loans that progressed to greater than 60 days past due — ( 82,290 ) Loans modified or paid off ( 47,675 ) ( 86,165 ) Loans transferred to REO ( 48,500 ) ( 48,500 ) Additional loans classified as non-accrual 10,264 106,439 Ending balance ( 3 multifamily bridge loans) $ 56,912 $ 56,912 We recorded interest income on non-performing and other non-accrual loans of $ 1.3 million and $ 8.0 million during the three and six months ended June 30, 2026, respectively, and $ 4.1 million and $ 9.9 million during the three and six months ended June 30, 2025, respectively. 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 three months ended June 30, 2026 ($ in thousands): Asset Class Payment Deferrals With/Without Term Extensions (1) Rate Reductions With/Without Term Extensions (2) Other (3) Total (4)(5) Multifamily $ 13,200 $ 260,723 $ 113,000 $ 386,923 ________________________ (1) This loan was modified to a weighted average pay rate and deferred rate of 5.65 % and 3.00 %, respectively, at June 30, 2026 and the pay rate increases from time-to-time throughout the loan maturity. This loan was also modified to extend the weighted average term by 22.1 months. (2) These loans were modified to reduce the interest rate to a weighted average rate of 5.72 % at June 30, 2026, and to extend the weighted average term by 36.8 months. The interest rate on one of these loans with a UPB of $ 20.8 million increases from time-to-time throughout the loan maturity. (3) This loan modification capitalized $ 1.2 million of unpaid interest and divided this loan into a $ 104.1 million tranche bearing interest at SOFR plus 3.00 % and a $ 10.1 million tranche bearing interest at a fixed rate of 10.00 %. 15 Table of Contents ARBOR REALTY TRUST, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (4) The total UPB of these loan modifications were $ 386.1 million at June 30, 2026 and represented 3 % of our Structured portfolio at June 30, 2026. (5) Includes loans with a total UPB of $ 113.0 million, which were previously modified in prior years. Using the SOFR rate at June 30, 2026, such loans were modified from a weighted average pay rate and deferred rate of 6.65 % and 1.25 %, respectively, to a weighted average pay rate and deferred rate of 6.95 % and 0.00 %, respectively. The following table represents the UPB of loan modifications, as of the modification date, made to borrowers experiencing financial difficulty during the six months ended June 30, 2026 (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 $ 179,986 $ 457,317 $ 228,420 $ 865,723 ________________________ (1) These loans were modified to a weighted average pay rate and deferred rate of 4.69 % and 2.81 %, respectively, at June 30, 2026 and to extend the weighted average term by 23.5 months. These modifications also include loans with a total UPB of $ 78.3 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 5.52 % and 0.46 %, respectively, and to extend the weighted average term by 29.0 months. (3) Loan modifications with a total UPB of $ 115.4 million 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. A loan modification with a UPB of $ 113.0 million was modified to capitalize $ 1.2 million of unpaid interest and was divided into a $ 104.1 million tranche bearing interest at SOFR plus 3.00 % and a $ 10.1 million tranche bearing interest at a fixed rate of 10.00 %. (4) The total UPB of the loan modifications made during the six months ended June 30, 2026 was $ 865.4 million at June 30, 2026 and represented 7 % of our Structured portfolio at June 30, 2026. (5) At June 30, 2026, modified loans with a UPB of $ 33.0 million have specific reserves totaling $ 1.0 million. (6) Includes loans with a total UPB of $ 421.1 million, which were previously modified in prior years. Using the SOFR rate at June 30, 2026, these loans were modified from a weighted average pay rate and deferred rate of 5.67 % and 2.01 %, respectively, to a weighted average pay rate and deferred rate of 4.99 % and 1.89 %, respectively. The following table represents the UPB of loan modifications, as of the modification date, made to borrowers experiencing financial difficulty during the three months ended June 30, 2025 ($ in thousands): Asset Class Payment Deferrals With/Without Term Extensions (1) Rate Reduction Without Term Extension (2) Total (3)(4)(5) Multifamily $ 144,905 $ 107,000 $ 251,905 ________________________ (1) These loans were modified to a weighted average pay rate and deferred rate of 5.50 % and 2.78 %, respectively, at June 30, 2025. A portion of these loans with a total UPB of $ 116.5 million were also modified to extend the weighted average term by 19 months. These modifications also include loans with a total UPB of $ 38.1 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 5.97 % and 0.56 %, respectively, and to extend the weighted average term by 23 months. (3) The total UPB of the loan modifications made during the three months ended June 30, 2025 was $ 249.9 million at June 30, 2025 and represented 2 % of our Structured portfolio at June 30, 2025. (4) At June 30, 2025, a modified loan with a UPB of $ 25.6 million has a specific reserve of $ 2.2 million. (5) Includes loans with a total UPB of $ 136.1 million, which were previously modified in prior years. Using the SOFR rate at June 30, 2025, these loans were modified from a weighted average pay rate and deferred rate of 6.47 % and 1.65 %, respectively, to a weighted average pay rate and deferred rate of 5.18 % and 2.28 %, respectively. 16 Table of Contents ARBOR REALTY TRUST, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) The following table represents the UPB of loan modifications, as of the modification date, made to borrowers experiencing financial difficulty during the six months ended June 30, 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 $ 994,270 $ 107,000 $ 83,975 $ 1,185,245 Single-Family Rental — — 16,490 16,490 Total UPB $ 994,270 $ 107,000 $ 100,465 $ 1,201,735 ________________________ (1) These loans were modified to a weighted average pay rate and deferred rate of 5.23 % and 2.19 %, respectively, at June 30, 2025. A portion of these loans with a total UPB of $ 225.2 million were also modified to extend the weighted average term by 19.3 months. These modifications also include loans with a total UPB of $ 508.4 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 5.97 % and 0.56 %, respectively, and to extend the weighted average term by 23 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 the loan modifications made during the six months ended June 30, 2025 was $ 1.20 billion at June 30, 2025 and represented 11 % of our Structured portfolio at June 30, 2025. (5) At June 30, 2025, modified loans with a UPB of $ 51.1 million have specific reserves totaling $ 7.4 million. (6) Includes loans with a total UPB of $ 520.1 million, which were previously modified in prior years. Using the SOFR rate at June 30, 2025, these loans were modified from a weighted average pay rate and deferred rate of 6.71 % and 1.25 %, respectively, to a weighted average pay rate and deferred rate of 4.69 % and 3.10 %, respectively. During the three and six months ended June 30, 2026, we recorded $ 0.4 million and $ 0.6 million, respectively, of deferred interest on the loans that we modified during 2026 and $ 3.9 million and $ 9.3 million, respectively, for loans previously modified. During the three and six months ended June 30, 2025, we recorded $ 1.9 million and $ 5.7 million, respectively, of deferred interest on the loans that we modified during 2025 and $ 8.3 million and $ 17.4 million, respectively, for loans previously modified. During the three and six months ended June 30, 2025, we reversed through interest income $ 4.3 million and $ 7.6 million, respectively, of interest receivable that was previously accrued on modified loans that we deemed the collection of interest to be doubtful. At June 30, 2026 and December 31, 2025, we have recorded deferred interest totaling $ 62.7 million and $ 68.3 million, respectively, on all modified loans to borrowers experiencing financial difficulty, which is included in other assets on the consolidated balance sheets. At June 30, 2026 and December 31, 2025, we had future funding commitments on modified loans with borrowers experiencing financial difficulty of $ 3.4 million and $ 17.4 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 June 30, 2026, except for three loans with a total UPB of $ 72.3 million. Since these loans are not performing pursuant to their modified terms, these loans are classified as non-accruing loans. There were no other material loan modifications, refinancings and/or extensions during the three and six months ended June 30, 2026 and 2025 for borrowers experiencing financial difficulty. Loan Resolutions During the three months ended June 30, 2026, we exercised our right to foreclose on two properties in Texas that were the underlying collateral for bridge loans with an aggregate UPB of $ 42.0 million and an aggregate net carrying value of $ 41.3 million, including one non-performing loan with a UPB of $ 21.1 million. The loans had a weighted average pay rate of SOFR plus 3.55 % and a weighted average deferred rate of 0.58 %. At foreclosure, we recognized aggregate gains of $ 0.5 million through gain (loss) on real estate on the consolidated statements of operations. We sold the properties during the three months ended June 30, 2026 for aggregate proceeds of $ 42.5 million to new borrowers and provided new bridge loans totaling $ 41.9 million with a weighted average interest rate of SOFR plus 2.50 % and a weighted average interest rate floor of 6.14 %. During the six months ended June 30, 2026, we exercised our right to foreclose on three properties in Texas that were the underlying collateral for bridge loans with an aggregate UPB of $ 67.0 million and an aggregate net carrying value of $ 66.1 million, including two 17 Table of Contents ARBOR REALTY TRUST, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) non-performing loans with an aggregate UPB of $ 46.1 million. The loans had a weighted average pay rate of SOFR plus 3.44 % and a weighted average deferred rate of 0.36 %. At foreclosure, we recognized aggregate gains of $ 0.5 million through gain (loss) on real estate and recorded a $ 1.8 million loss through the provision for credit losses, which was charged-off. We sold the properties during the six months ended June 30, 2026 for aggregate proceeds of $ 67.5 million to new borrowers and provided new bridge loans totaling $ 66.4 million with a weighted average interest rate of SOFR plus 2.50 %. Two of the newly originated loans are subject to a weighted average interest rate floor of 6.14 %. The newly originated loans described above represent loan-to-capitalization ratios ranging from 81 %- 88 %, reflecting additional equity contributed by the new borrowers to fund the agreed upon purchase price, closing costs, capital expenditures and other reserve requirements. 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 June 30, 2026 and December 31, 2025, we had total interest reserves of $ 216.2 million and $ 259.7 million, respectively, on 329 loans and 444 loans, respectively, with a total UPB of $ 8.44 billion and $ 8.68 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): June 30, 2026 December 31, 2025 Fannie Mae $ 180,834 $ 303,196 Freddie Mac 108,824 2,225 Private Label 77,729 77,798 FHA 8,083 22,390 SFR - Fixed Rate 2,777 2,777 378,247 408,386 Fair value of future MSR 3,939 5,921 Unrealized impairment recovery (loss) 1,002 1,414 Unearned discount ( 7,391 ) ( 6,640 ) Loans held-for-sale, net $ 375,797 $ 409,081 During the three and six months ended June 30, 2026, we sold $ 1.14 billion and $ 1.81 billion, respectively, of loans held-for-sale. During the three and six months ended June 30, 2025, we sold $ 807.0 million and $ 1.54 billion, respectively, of loans held-for-sale. At June 30, 2026 and December 31, 2025, 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 mortgage servicing rights (“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 5.8 years and 6.1 years at June 30, 2026 and December 31, 2025, respectively. 18 Table of Contents ARBOR REALTY TRUST, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) A summary of our capitalized MSR activity is as follows ($ in thousands): Three Months Ended June 30, 2026 Six Months Ended June 30, 2026 Originated Acquired Total Originated Acquired Total Beginning balance $ 329,621 $ 2,308 $ 331,929 $ 338,174 $ 2,668 $ 340,842 Additions 13,051 — 13,051 23,478 — 23,478 Amortization ( 17,954 ) ( 293 ) ( 18,247 ) ( 35,907 ) ( 633 ) ( 36,540 ) Write-downs and payoffs ( 2,826 ) ( 20 ) ( 2,846 ) ( 3,853 ) ( 40 ) ( 3,893 ) Ending balance $ 321,892 $ 1,995 $ 323,887 $ 321,892 $ 1,995 $ 323,887 Three Months Ended June 30, 2025 Six Months Ended June 30, 2025 Beginning balance $ 353,005 $ 4,215 $ 357,220 $ 363,861 $ 4,817 $ 368,678 Additions 10,931 — 10,931 20,337 — 20,337 Amortization ( 17,264 ) ( 503 ) ( 17,767 ) ( 34,459 ) ( 1,066 ) ( 35,525 ) Write-downs and payoffs ( 2,042 ) ( 16 ) ( 2,058 ) ( 5,109 ) ( 55 ) ( 5,164 ) Ending balance $ 344,630 $ 3,696 $ 348,326 $ 344,630 $ 3,696 $ 348,326 We collected prepayment fees totaling $ 0.8 million and $ 1.7 million during the three and six months ended June 30, 2026, respectively, and $ 0.9 million and $ 1.9 million during the three and six months ended June 30, 2025, respectively, which are included as a component of servicing revenue, net on the consolidated statements of operations. At June 30, 2026 and December 31, 2025, no MSRs were considered impaired. The expected amortization of capitalized MSRs recorded at June 30, 2026 is as follows ($ in thousands): Year Amortization 2026 (six months ending 12/31/2026) $ 36,457 2027 69,887 2028 63,144 2029 54,278 2030 40,210 Thereafter 59,911 Total $ 323,887 Based on scheduled maturities, actual amortization may vary from these estimates. 19 Table of Contents ARBOR REALTY TRUST, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) Note 6 — Mortgage Servicing Product and geographic concentrations that impact our servicing revenue are as follows ($ in thousands): June 30, 2026 Product Concentrations Geographic Concentrations Product UPB (1) % of Total State UPB % of Total Fannie Mae $ 24,419,734 66 % New York 14 % Freddie Mac 7,672,121 21 % Texas 10 % Private Label 2,477,077 7 % North Carolina 8 % FHA 1,585,871 4 % California 7 % Bridge (2) 277,333 1 % Florida 7 % SFR - Fixed Rate 272,226 1 % New Jersey 6 % Total $ 36,704,362 100 % Georgia 5 % Other (3) 43 % Total 100 % December 31, 2025 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 % ________________________ (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 June 30, 2026 and December 31, 2025, our weighted average servicing fee was 35.0 basis points and 35.6 basis points, respectively. At June 30, 2026 and December 31, 2025, we held total escrow balances (including unfunded collateralized loan obligation ("CLO") hold backs) of approximately $ 1.25 billion and $ 1.35 billion, respectively, of which approximately $ 1.24 billion and $ 1.34 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 operations as noted in the following table. 20 Table of Contents ARBOR REALTY TRUST, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) The components of servicing revenue, net are as follows ($ in thousands): Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Servicing fees $ 33,596 $ 32,887 $ 67,543 $ 65,430 Interest earned on escrows 10,585 13,512 20,804 26,402 Prepayment fees 791 863 1,705 1,897 Write-offs and payoffs of MSRs ( 2,846 ) ( 2,058 ) ( 3,893 ) ( 5,164 ) Amortization of MSRs ( 18,247 ) ( 17,767 ) ( 36,540 ) ( 35,525 ) Servicing revenue, net $ 23,879 $ 27,437 $ 49,619 $ 53,040 Note 7 — Securities Held-to-Maturity Agency Private Label Certificates (“APL 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 June 30, 2026, we held 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 4.8 years. The weighted average effective interest rate was 8.84 % at both June 30, 2026 and December 31, 2025, 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. At June 30, 2026, we held 49 %, or $ 106.2 million initial face value, of seven Freddie Mac SBL program 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, had an initial weighted average variable rate of 3.74 % and have an estimated weighted average remaining maturity of 11.6 years. The weighted average effective interest rate was 3.32 % and 2.00 % at June 30, 2026 and December 31, 2025, respectively, including the accretion of a portion of the discount deemed collectible. Approximately $ 32.0 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 June 30, 2026 APL certificates $ 192,791 $ 143,810 $ ( 15,770 ) $ 128,040 $ 1,676 B Piece bonds 31,970 13,327 8,954 22,281 12,667 Total $ 224,761 $ 157,137 $ ( 6,816 ) $ 150,321 $ 14,343 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 21 Table of Contents ARBOR REALTY TRUST, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) A summary of the changes in the allowance for credit losses for our securities held-to-maturity is as follows ($ in thousands): Three Months Ended June 30, 2026 Six Months Ended June 30, 2026 APL Certificates B Piece Bonds Total APL Certificates B Piece Bonds Total Beginning balance $ 1,473 $ 13,652 $ 15,125 $ 1,664 $ 15,349 $ 17,013 Provision for credit loss expense/(reversal) 203 ( 285 ) ( 82 ) 12 2,115 2,127 Charge-offs — ( 700 ) ( 700 ) — ( 4,797 ) ( 4,797 ) Ending balance $ 1,676 $ 12,667 $ 14,343 $ 1,676 $ 12,667 $ 14,343 Three Months Ended June 30, 2025 Six Months Ended June 30, 2025 Beginning balance $ 1,659 $ 9,108 $ 10,767 $ 1,658 $ 9,188 $ 10,846 Provision for credit loss expense/(reversal) 448 2,444 2,892 449 2,364 2,813 Ending balance $ 2,107 $ 11,552 $ 13,659 $ 2,107 $ 11,552 $ 13,659 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 June 30, 2026, securities held-to-maturity with a carrying value of $ 11.6 million (before specific allowances of $ 9.5 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 $ 3.9 million and $ 7.6 million during the three and six months ended June 30, 2026, respectively, and $ 3.4 million and $ 7.1 million during the three and six months ended June 30, 2025 , 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 June 30, 2026 Equity Affiliates June 30, 2026 December 31, 2025 Biscayne Shores $ 24,343 $ — $ — Fifth Wall Ventures 19,783 17,260 — AWC Real Estate Opportunity Partners I LP 16,401 17,134 108,450 AMAC Holdings III LLC 11,598 12,714 33,410 ARSR DPREF I LLC 5,921 5,745 — Lightstone Value Plus REIT L.P. 1,895 1,895 — Clarus Berkley 1,140 1,500 67,900 The Park at Via Terrossa 552 578 21,845 Docsumo Pte. Ltd. 439 450 — JT Prime 425 425 — The Cypress at Wesley Park 265 265 14,964 Lexford Portfolio — — — East River Portfolio — — — Total $ 82,762 $ 57,966 $ 246,569 Biscayne Shores . In the second quarter of 2026, we contributed $ 25.0 million for a 25.6 % interest in a multifamily property. During both the three and six months ended June 30, 2026, we received distributions of $ 0.7 million, which were classified as returns of capital. Operating results from this investment were de minimis this period. Fifth Wall Ventures ("Fifth Wall"). During the three and six months ended June 30, 2026, we recorded income of $ 0.1 million and loss of $ 0.7 million, respectively, and made contributions of $ 2.9 million and $ 3.2 million, respectively. During the three and six months ended June 30, 2025, we recorded income of $ 0.3 million and $ 0.8 million, respectively, and made contributions of $ 1.2 million and $ 1.9 22 Table of Contents ARBOR REALTY TRUST, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) million, respectively. During both the three and six months ended June 30, 2025, we received distributions of $ 1.4 million, which were classified as returns of capital. AWC Real Estate Opportunity Partners I LP ("AWC"). During the three and six months ended June 30, 2026, we recorded a loss of $ 0.4 million and $ 0.7 million, respectively, and during the three and six months ended June 30, 2025, we recorded a loss of $ 0.1 million and $ 0.2 million, respectively, related to this investment. During the three and six months ended June 30, 2025, we made contributions of $ 1.3 million and $ 3.7 million, respectively, related to this investment. During both the three and six months ended June 30, 2025 we received distributions of $ 1.0 million, which were classified as returns of capital. Certain investments made by AWC are in qualified properties that have outstanding bridge loans originated by us and a Fannie Mae DUS loan we continue to service. Interest income recorded from the bridge loans was $ 1.8 million and $ 3.6 million for the three and six months ended June 30, 2026, respectively, and $ 2.1 million and $ 4.2 million for the three and six months ended June 30, 2025, respectively. AMAC Holdings III LLC (“AMAC III”). During the three and six months ended June 30, 2026, we recorded a loss of $ 0.7 million and $ 1.1 million, respectively. During the three and six months ended June 30, 2025, we recorded a loss of $ 1.1 million and $ 1.9 million, respectively, and made contributions of $ 0.9 million for both the three and six months ended June 30, 2025. Lexford Portfolio. During the three and six months ended June 30, 2026, we received distributions from this investment and recognized income of $ 3.0 million and $ 8.8 million, respectively. During both the three and six months ended June 30, 2025, we received distributions from this investment and recognized income of $ 3.4 million. Arbor Residential Investor LLC. During the six months ended June 30, 2025, we recorded a loss of $ 1.4 million. During the three and six months ended June 30, 2025, we received distributions of $ 5.6 million and $ 6.1 million, respectively, which were classified as returns of capital. We completed the sale of our interest in this investment in July 2025. See Note 18 for details of certain investments described above. Note 9 — Real Estate Owned A summary of our REO assets is as follows ($ in thousands): June 30, 2026 December 31, 2025 Multifamily Office Land Total Multifamily Office Land Total Land $ 115,576 $ 13,599 $ 7,947 $ 137,122 $ 109,788 $ 13,599 $ 7,947 $ 131,334 Building and intangible assets 424,250 58,152 — 482,402 363,281 48,882 — 412,163 Less: Impairment loss ( 40,600 ) ( 2,500 ) — ( 43,100 ) ( 20,500 ) ( 2,500 ) — ( 23,000 ) Less: Accumulated depreciation and amortization ( 26,920 ) ( 3,558 ) — ( 30,478 ) ( 18,015 ) ( 3,544 ) — ( 21,559 ) Real estate owned, net $ 472,306 $ 65,693 $ 7,947 $ 545,946 $ 434,554 $ 56,437 $ 7,947 $ 498,938 Number of foreclosed loans 19 2 2 23 15 2 2 19 Number of properties 32 2 2 36 31 2 2 35 During the three and six months ended June 30, 2026, we foreclosed on three and five multifamily bridge loans, respectively, each of which was collateralized by one property, and received ownership of the underlying collateral as REO assets. The loans foreclosed during the three and six months ended June 30, 2026 had an aggregate net carrying value of $ 68.8 million and $ 102.8 million, respectively, net of CECL reserves of $ 3.5 million in each period. Upon foreclosure, we recorded charge-offs against the allowance for credit losses of $ 6.0 million during both the three and six months ended June 30, 2026, which included $ 2.5 million of additional provision for credit losses recognized upon foreclosure. There were no reversals of previously recorded allowance for credit losses upon foreclosure during either period. During the three and six months ended June 30, 2026, we sold three and four existing multifamily REO properties for $ 37.3 million and $ 45.3 million, respectively, and repaid mortgage notes outstanding of $ 24.5 million in the second quarter of 2026. During the three and six months ended June 30, 2026, we recognized losses of $ 0.4 million, and $ 2.4 million, respectively, relating to these dispositions, excluding the loss associated with the significant financing component discussed below. Additionally, we provided new bridge loan financing to two and three of the buyers, respectively, totaling $ 31.9 million and $ 41.4 million, respectively. The bridge loans bear interest at floating rates generally equal to the greater of stated floors ranging from 5.17 % to 6.65 % and SOFR plus spreads ranging from 1.50 % to 3.00 %, with one loan increasing in year two to the greater of 6.17 % and SOFR plus 2.50 %. One of the new financings provided 23 Table of Contents ARBOR REALTY TRUST, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) was deemed to have a significant financing component and, as a result, during the six months ended June 30, 2026, 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. The net losses of these transactions were recorded through gain (loss) on real estate on the consolidated statements of operations. The newly originated loans described above represent loan-to-capitalization ratios ranging from 72 %- 88 %, reflecting additional equity contributed by the new borrowers to fund the agreed upon purchase price, closing costs, capital expenditures and other reserve requirements. See Note 3 for details of properties foreclosed and sold within the same reporting period. During the three and six months ended June 30, 2026, 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, including expected disposition proceeds, recent market bids or broker opinions of value, projected property-level operating performance, occupancy and net operating income expectations. Based on our impairment analysis performed, we recorded an impairment loss of $ 13.7 million and $ 26.2 million, related to two and six properties, for the three and six months ended June 30, 2026, respectively, which represents the extent to which the carrying value of the properties exceeded their estimated fair value less costs to sell. The fair value measurements for these impaired REO assets were determined on a nonrecurring basis and were classified as Level 3 within the fair value hierarchy, including, as applicable, expected sales proceeds, broker opinions of value, appraisals, capitalization rates, projected property-level cash flows and estimated selling costs. At June 30, 2026 and December 31, 2025, we had notes payable totaling $ 270.4 million and $ 223.0 million, respectively, which are collateralized by our REO assets. Interest rates on the notes range from SOFR plus 2.18 % to SOFR plus 3.25 %, wit h maturities spanning fr om August 2026 to September 2027. At June 30, 2026 and December 31, 2025, our multifamily REO properties had a weighted average occupancy rate of approximately 51 % and 45 %, respectively, excluding three and two properties, respectively, that were vacant due to renovations. At June 30, 2026 and December 31, 2025, both our office buildings were vacant. We recorded depreciation expense related to the REO assets of $ 5.2 million and $ 11.2 million f or the three and six months ended June 30, 2026, respectively, and $ 4.8 million and $ 7.5 million for the three and six months ended June 30, 2025, respectively. 24 Table of Contents ARBOR REALTY TRUST, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) Note 10 — Debt Obligations Credit and Repurchase Facilities Borrowings under our credit and repurchase facilities are as follows ($ in thousands): June 30, 2026 December 31, 2025 Current Maturity Extended Maturity Debt Carrying Value (1) Collateral Carrying Value Wtd. Avg. Note Rate (2) Debt Carrying Value (1) Collateral Carrying Value Structured Business $ 1.66 B repurchase facility (6) N/A $ 1,543,778 $ 2,145,982 5.56 % $ 1,149,944 $ 1,555,403 $ 1.55 B joint repurchase facility (3) Jul. 2027 Jul. 2028 1,569,336 2,268,747 5.91 % 882,635 1,468,161 $ 1.00 B repurchase facility (5) N/A 857,560 1,256,534 6.49 % 879,499 1,207,513 $ 850 M repurchase facility (3) Dec. 2026 Dec. 2027 341,017 599,935 6.51 % 443,880 725,309 $ 650 M repurchase facility (3) Oct. 2026 N/A 212,203 251,274 6.27 % 462,694 549,069 $ 400 M credit facility Mar. 2027 N/A 45,167 84,664 7.00 % 66,479 125,099 $ 400 M repurchase facility Jan. 2027 Jan. 2028 242,775 335,775 6.03 % 291,342 383,195 $ 350 M repurchase facility (7) Mar. 2027 N/A 147,823 248,081 5.63 % 127,199 238,422 $ 300 M credit facility Mar. 2029 Mar. 2030 65,442 85,637 6.74 % — — $ 250 M repurchase facility Sept. 2027 Sept. 2028 66,455 99,072 6.68 % 73,052 113,121 $ 250 M repurchase facility Oct. 2026 N/A 62,345 78,500 5.19 % 98,186 126,340 $ 250 M repurchase facility Oct. 2027 N/A 124,489 163,248 6.24 % 78,963 102,758 $ 200 M credit facility Mar. 2027 Mar. 2028 71,316 96,696 6.29 % 41,114 59,147 $ 40 M credit facility (7) Sept. 2026 Sept. 2027 15,574 24,610 6.09 % 15,532 24,610 $ 35 M working capital facility (7) Sept. 2026 N/A 35,000 — 6.65 % 35,000 — $ 21 M loan specific credit facility (9) Jul. 2026 N/A 20,798 26,000 5.83 % 63,456 87,000 Repurchase facility - securities (3)(4) N/A N/A 31,903 — 5.07 % 50,280 — Structured Business total (8) $ 5,452,981 $ 7,764,755 5.98 % $ 4,759,255 $ 6,765,147 Agency Business $ 750 M ASAP agreement N/A N/A $ 21,996 $ 22,154 4.87 % $ 91,965 $ 92,733 $ 500 M repurchase facility Nov. 2026 N/A 99,050 100,571 5.15 % 89,427 89,573 $ 200 M credit facility (7) Mar. 2027 N/A 168,609 170,438 5.10 % 101,802 102,409 $ 200 M credit facility (7) Jun. 2027 N/A 4,379 4,578 4.95 % 42,887 43,096 $ 100 M joint repurchase facility (3) Jul. 2027 Jul. 2028 65,243 77,729 6.15 % 64,315 77,798 Agency Business total $ 359,277 $ 375,470 5.29 % $ 390,396 $ 405,609 Consolidated total $ 5,812,258 $ 8,140,225 5.94 % $ 5,149,651 $ 7,170,756 ________________________ (1) At June 30, 2026 and December 31, 2025, debt carrying value for the Structured Business was net of unamortized deferred financing fees of $ 9.4 million and $ 11.7 million, respectively, and for the Agency Business was net of unamortized deferred financing fees of $ 0.3 million at both June 30, 2026 and December 31, 2025. (2) At June 30, 2026 and December 31, 2025, all credit and repurchase facilities are variable rate loans. (3) These facilities are subject to margin call provisions associated with changes in interest spreads. (4) At both June 30, 2026 and December 31, 2025, this facility was collateralized by investment grade notes we retained from our BTR CLO 1 securitization with a principal balance of $ 41.0 million, and at December 31, 2025 it was also collateralized by certificates retained by us from our Freddie Mac Q Series securitization (“Q Series securitization”) with a principal balance of $ 26.5 million. (5) 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. (6) This facility matures at the latest maturity date of all purchased assets, which is currently March 2029. (7) These facilities were extended in 2026. (8) These amounts exclude outstanding notes payable on our REO assets with a debt carrying value of $ 270.4 million and $ 223.0 million at June 30, 2026 and December 31, 2025, respectively. 25 Table of Contents ARBOR REALTY TRUST, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (9) This facility matures on July 31, 2026 and will not be renewed. Structured Business At June 30, 2026 and December 31, 2025, 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 6.24 % and 6.40 %, respectively. The leverage on our loan and investment portfolio financed through our credit and repurchase facilities, excluding the securities repurchase facility and the working capital facility, was 69 % at both June 30, 2026 and December 31, 2025. In June 2026, we amended a $ 1.50 billion joint repurchase facility to increase the facility size to $ 1.65 billion to refinance loans previously held in CLO 17. The interest rate on the loans transferred from CLO 17 is SOFR plus 1.65 %. In May 2026, we amended a $ 1.22 billion repurchase facility to increase the facility size to $ 1.66 billion to refinance loans previously held in CLO 17. The interest rate on the loans transferred from CLO 17 is SOFR plus 1.75 %. In March 2026, we entered into a $ 300.0 million credit facility to finance BTR loans that matures in March 2029, with a one-year extension option. The facility may be increased, subject to lender approval, by up to $ 50.0 million to a maximum of $ 350.0 million. The facility has an interest rate of SOFR plus 3.00 %, with a SOFR floor of 2.50 %. Agency Business In March 2026, we extended the maturity of a $ 200.0 million credit facility to March 2027 and reduced the interest rate from SOFR plus 1.40 % to SOFR plus 1.35 %. In June 2026, we extended the maturity of our other $ 200.0 million credit facility to June 2027 and reduced the interest rate from SOFR plus 1.35 % to SOFR plus 1.20 %. 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. Borrowings and the corresponding collateral under our securitized debt transactions are as follows ($ in thousands): Debt Collateral (3) Loans Cash June 30, 2026 Face Value Carrying Value (1) Wtd. Avg. Rate (2) UPB Carrying Value Restricted Cash (4) CLO 21 $ 673,990 $ 668,339 5.46 % $ 756,567 $ 753,112 $ — CLO 20 933,187 925,853 5.47 % 1,020,331 1,016,667 25,834 BTR CLO 1 595,933 589,114 6.18 % 690,402 689,083 611 CLO 18 (5) 788,940 788,940 5.96 % 1,182,619 1,182,470 — Total securitized debt $ 2,992,050 $ 2,972,246 5.74 % $ 3,649,919 $ 3,641,332 $ 26,445 December 31, 2025 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 — — — 50,600 50,600 — Total securitized debt $ 3,485,786 $ 3,468,258 5.81 % $ 4,565,353 $ 4,557,631 $ 21,469 26 Table of Contents ARBOR REALTY TRUST, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) ________________________ (1) Debt carrying value is net of $ 19.8 million and $ 17.5 million of deferred financing fees at June 30, 2026 and December 31, 2025, respectively. (2) At June 30, 2026 and December 31, 2025, the aggregate weighted average note rate for our CLOs, including certain fees and costs, was 6.01 % and 6.07 %, respectively. (3) At June 30, 2026 and December 31, 2025, 20 and 39 loans, respectively, with a total UPB of $ 808.3 million and $ 1.69 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 $ 76.6 million and $ 10.1 million at June 30, 2026 and December 31, 2025, respectively. (5) The replenishment period for CLO 17 and CLO 18 ended in June 2024 and August 2024, respectively. CLO 17. In May 2026, we unwound CLO 17, redeeming the remaining outstanding notes totaling $ 787.0 million, which were repaid from the availability in our credit and repurchase facilities. CLO 21. In March 2026, we completed CLO 21, through a wholly owned subsidiary, issuing nine tranches of CLO notes totaling $ 762.6 million. Of the total CLO notes issued, $ 674.0 million consisted of investment grade notes issued to third-party investors. The remaining $ 88.6 million were below investment grade notes that were 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 $ 662.6 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 payments 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. The proceeds of the issuance also included $ 100.0 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 $ 762.6 million, representing leverage of 88 %. The notes sold to third parties had an initial weighted average interest rate of 1.73 % plus term SOFR, with interest payable monthly. Securitization Paydowns . During the six months ended June 30, 2026, outstanding notes totaling $ 182.7 million on our existing CLOs have been paid down . Senior Unsecured Notes A summary of our senior unsecured notes is as follows ($ in thousands): June 30, 2026 December 31, 2025 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 $ 395,238 8.50 % $ 400,000 $ 394,340 8.50 % 7.875 % Notes (4) Jul. 2025 Jul. 2030 500,000 490,553 7.88 % 500,000 489,397 7.88 % 9.00 % Notes (3) Oct. 2024 Oct. 2027 100,000 99,223 9.00 % 100,000 98,934 9.00 % 8.50 % Notes (3) Oct. 2022 Oct. 2027 150,000 149,303 8.50 % 150,000 149,041 8.50 % 5.00 % Notes (3) Dec. 2021 Dec. 2028 180,000 178,938 5.00 % 180,000 178,725 5.00 % 4.50 % Notes (3)(5) Aug. 2021 Sept. 2026 270,000 269,860 4.50 % 270,000 269,439 4.50 % 4.50 % Notes (3) Mar. 2020 Mar. 2027 275,000 274,654 4.50 % 275,000 274,412 4.50 % 5.00 % Notes (6) Apr. 2021 Apr. 2026 — — — 175,000 174,790 5.00 % $ 1,875,000 $ 1,857,769 6.86 % $ 2,050,000 $ 2,029,078 6.70 % ________________________ (1) At June 30, 2026 and December 31, 2025, the carrying value is net of deferred financing fees of $ 17.2 million and $ 20.9 million, respectively. (2) At June 30, 2026 and December 31, 2025, the aggregate weighted average note rate, including certain fees and costs, was 7.23 % and 7.06 %, 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 27 Table of Contents ARBOR REALTY TRUST, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) 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. (5) In July 2026, we redeemed our 4.50 % senior notes. See "Convertible Senior Unsecured Notes" below. (6) In April 2026, we redeemed our 5.00 % senior notes at maturity. Convertible Senior Unsecured Notes In August 2025, our 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. During the three months ended June 30, 2025, we incurred interest expense on the notes totaling $ 6.1 million, of which $ 5.4 million and $ 0.7 million related to the cash coupon and deferred financing fees, respectively. During the six months ended June 30, 2025, we incurred interest expense on the notes totaling $ 12.2 million, of which $ 10.8 million and $ 1.4 million related to the cash coupon and deferred financing fees, respectively. Subsequent Event. In July 2026, we issued $ 375.0 million in aggregate principal amount of 6.25 % convertible senior unsecured notes (the “ 6.25 % Convertible Notes”) through a private placement offering, which includes the exercised initial purchaser's over-allotment option of $ 50.0 million. The 6.25 % Convertible Notes pay interest semiannually in arrears and are scheduled to mature in July 2029, unless earlier converted or repurchased by the holders pursuant to their terms. The initial conversion rate was 164.0016 shares of common stock per $1,000 of principal representing a conversion price of $ 6.10 per share of common stock. We used the net proceeds to repurchase 2,140,300 shares of our common stock for $ 11.6 million, repurchase $ 102.7 million of our common stock pursuant to a prepaid forward transaction and used the remaining proceeds, together with cash on hand, to redeem, in full, our outstanding $ 270.0 million 4.50 % senior unsecured notes that were due in September 2026. The initial aggregate number of shares of our common stock underlying the prepaid forward transaction is approximately 18,941,200 shares. Junior Subordinated Notes The carrying values of borrowings under our junior subordinated notes were $ 145.9 million and $ 145.5 million at June 30, 2026 and December 31, 2025, respectively, which is net of a deferred amount of $ 7.3 million and $ 7.6 million, respectively, (which is amortized into interest expense over the life of the notes) and deferred financing fees of $ 1.2 million at both June 30, 2026 and December 31, 2025. 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 6.60 % and 6.52 % at June 30, 2026 and December 31, 2025, respectively. Including certain fees and costs, the weighted average note rate was 6.69 % and 6.61 % at June 30, 2026 and December 31, 2025, respectively. Debt Covenants Credit and Repurchase Facilities and Unsecured Debt. The credit and repurchase facilities and unsecured debt contain various financial covenants, including, but not limited to, minimum liquidity requirements, minimum net worth requirements, minimum unencumbered asset requirements, as well as certain other debt service coverage ratios, debt to equity ratios and minimum servicing portfolio tests. We were in compliance with all financial covenants and restrictions at June 30, 2026. 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 June 30, 2026, as well as on the most recent determination dates in July 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. 28 Table of Contents ARBOR REALTY TRUST, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) Our CLO compliance tests as of the most recent determination dates in July 2026 are as follows: Cash Flow Triggers CLO 18 BTR CLO 1 CLO 20 CLO 21 Overcollateralization (1) Current 145.88 % 117.47 % 112.52 % 113.15 % Limit 123.03 % 115.47 % 110.52 % 111.15 % Pass / Fail Pass Pass Pass Pass Interest Coverage (2) Current 140.81 % 171.10 % 134.60 % 133.81 % 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 18 BTR CLO 1 CLO 20 CLO 21 July 2026 145.88 % 117.47 % 112.52 % 113.15 % April 2026 139.84 % 117.47 % 112.52 % 113.15 % January 2026 136.54 % 117.47 % 112.52 % N/A October 2025 131.38 % 117.47 % 112.52 % N/A July 2025 130.03 % 117.47 % 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. Note 11 — Allowance for Loss-Sharing Obligations Our allowance for loss-sharing obligations related to the Fannie Mae DUS program is as follows ($ in thousands): Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Beginning balance $ 106,773 $ 85,515 $ 97,579 $ 83,150 Provision for loss sharing (net of reversals) 13,472 4,215 18,009 6,002 Charge-offs and advances, net of reimbursements ( 1,347 ) 27 3,310 605 Ending balance $ 118,898 $ 89,757 $ 118,898 $ 89,757 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 29 Table of Contents ARBOR REALTY TRUST, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) removed only upon either the expiration or settlement of the guarantee. At June 30, 2026 and December 31, 2025, we had $ 36.6 million and $ 35.7 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 unreimbursed advanced principal and interest payments in accordance with the DUS program, which are reflected as reductions to the proceeds needed to settle losses. At June 30, 2026 and December 31, 2025, we had outstanding advances of $ 2.6 million and $ 7.3 million, respectively, which were netted against the allowance for loss-sharing obligations. At June 30, 2026 and December 31, 2025, our allowance for loss-sharing obligations, associated with expected losses under CECL, was $ 82.3 million and $ 61.9 million, respectively, and represented 0.34 % and 0.26 %, respectively, of our Fannie Mae servicing portfolio. At June 30, 2026 and December 31, 2025, the maximum quantifiable liability associated with our guarantees under the Fannie Mae DUS agreement was $ 4.69 billion and $ 4.60 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 12 — 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 on derivative instruments, net in the consolidated statements of operations. The estimated fair value of rate lock commitments also includes the fair value of the expected net cash flows associated with the servicing of the loan which is recorded as income from MSRs in the consolidated statements of operations. During the three and six months ended June 30, 2026, we recorded net gains of $ 0.5 million and net losses of $ 0.8 million, respectively, from changes in the fair value of these derivatives and income from MSRs of $ 12.1 million and $ 21.8 million, respectively. During the three and six months ended June 30, 2025, we recorded net gains of $ 1.4 million and $ 6.1 million, respectively, from changes in the fair value of these derivatives and income from MSRs of $ 10.9 million and $ 19.1 million, respectively. See Note 13 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 30 Table of Contents ARBOR REALTY TRUST, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) 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 June 30, 2026 and December 31, 2025, we had $ 2.9 million and $ 1.6 million, respectively, included in others assets, which was comprised of cash posted as collateral of $ 3.3 million and $ 1.6 million, respectively, and net liability positions of $ 0.3 million and $ 0.1 million, respectively, from the fair value of our treasury futures. During the three months ended June 30, 2026, we recorded realized gains of $ 0.9 million and unrealized losses of $ 0.3 million to our Agency Business, related to our swaps. During the six months ended June 30, 2026, we recorded realized gains of $ 1.7 million and unrealized losses of $ 0.3 million to our Agency Business, related to our swaps. During the three months ended June 30, 2025, we recorded realized losses of $ 1.0 million and unrealized gains of $ 0.5 million to our Agency Business, related to swaps. During the six months ended June 30, 2025, we recorded realized losses of $ 0.5 million and unrealized losses of $ 1.2 million to our Agency Business, related to our swaps. A summary of our non-qualifying derivative financial instruments in our Agency Business is as follows ($ in thousands): June 30, 2026 Fair Value Derivative Count Notional Value Balance Sheet Location Derivative Assets Derivative Liabilities Rate lock commitments 4 $ 191,041 Other assets/other liabilities $ 748 $ ( 743 ) Forward sale commitments 16 488,782 Other assets/other liabilities 846 ( 1,894 ) Treasury futures 559 55,900 — — $ 735,723 $ 1,594 $ ( 2,637 ) December 31, 2025 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 ) 31 Table of Contents ARBOR REALTY TRUST, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) Note 13 — 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): June 30, 2026 December 31, 2025 Principal / Notional Amount Carrying Value Estimated Fair Value Principal / Notional Amount Carrying Value Estimated Fair Value Financial assets: Loans and investments, net $ 12,107,031 $ 11,915,216 $ 11,916,632 $ 12,113,107 $ 11,934,248 $ 11,964,280 Loans held-for-sale, net 378,247 375,797 385,894 408,386 409,081 421,398 Capitalized mortgage servicing rights, net n/a 323,887 462,029 n/a 340,842 474,767 Securities held-to-maturity, net 224,761 157,137 150,321 229,521 156,087 150,147 Derivative financial instruments 231,927 1,594 1,594 94,319 585 585 Financial liabilities: Credit and repurchase facilities $ 5,821,983 $ 5,812,258 $ 5,800,728 $ 5,161,707 $ 5,149,651 $ 5,143,472 Securitized debt 2,992,050 2,972,246 2,999,104 3,485,786 3,468,258 3,487,773 Senior unsecured notes 1,875,000 1,857,769 1,789,738 2,050,000 2,029,078 2,009,938 Junior subordinated notes 154,336 145,907 113,551 154,336 145,497 111,992 Notes payable - real estate owned 270,410 270,410 269,131 222,965 222,965 221,893 Derivative financial instruments 447,896 2,637 2,637 292,734 1,082 1,082 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 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). 32 Table of Contents ARBOR REALTY TRUST, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) 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 lesser 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). 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 June 30, 2026 ($ in thousands): Carrying Value Fair Value Fair Value Measurements Using Fair Value Hierarchy Level 1 Level 2 Level 3 Financial assets: Derivative financial instruments $ 1,594 $ 1,594 $ — $ 846 $ 748 Financial liabilities: Derivative financial instruments $ 2,637 $ 2,637 $ — $ 2,637 $ — 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 June 30, 2026 ($ in thousands): Net Carrying Value Fair Value Fair Value Measurements Using Fair Value Hierarchy Level 1 Level 2 Level 3 Financial assets: Impaired loans, net Loans held-for-investment (1) $ 399,189 $ 399,189 $ — $ — $ 399,189 Loans held-for-sale (2) 12,937 12,937 — 12,937 — $ 412,126 $ 412,126 $ — $ 12,937 $ 399,189 ________________________ (1) We had an allowance for credit losses of $ 46.5 million relating to 19 impaired loans with an aggregate carrying value, before loan loss reserves, of $ 445.7 million at June 30, 2026. The fair values of these impaired loans are based on the value of the underlying collateral. 33 Table of Contents ARBOR REALTY TRUST, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (2) We have an impairment loss of $ 1.0 million related to 3 loans held-for-sale with an aggregate carrying value, before unrealized impairment losses, of $ 13.9 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 the 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 June 30, 2026 is as follows ($ in thousands): Fair Value Valuation Techniques Significant Unobservable Inputs Financial assets: Impaired loans: Weighted Average Minimum / Maximum Multifamily $ 237,717 Discounted cash flows Capitalization rate 5.95 % 5.50 % - 7.50 % 147,464 Price quotes N/A N/A N/A $ 385,181 Retail $ 14,008 Sales comparative Price per acre $ 165 $ 165 Derivative financial instruments: Rate lock commitments $ 748 Discounted cash flows W/A discount rate 6.36 % 0.00 % - 9.00 % 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 Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Derivative assets and liabilities, net Beginning balance $ 633 $ 309 $ 473 $ — Settlements ( 11,996 ) ( 10,856 ) ( 21,496 ) ( 18,678 ) Realized gains recorded in earnings 11,363 10,547 21,023 18,678 Unrealized gains recorded in earnings 748 382 748 382 Ending balance $ 748 $ 382 $ 748 $ 382 34 Table of Contents ARBOR REALTY TRUST, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) 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): June 30, 2026 Notional/ Principal Amount Fair Value of Servicing Rights Unrealized Impairment Recovery (Loss) Total Fair Value Adjustment Rate lock commitments $ 191,041 $ 748 $ — $ 748 Forward sale commitments 488,782 — — — Loans held-for-sale, net (1) 378,247 3,939 1,002 4,941 Total $ 4,687 $ 1,002 $ 5,689 ________________________ (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 June 30, 2026 ($ 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 $ 11,915,216 $ 11,916,632 $ — $ — $ 11,916,632 Loans held-for-sale, net 375,797 385,894 — 381,955 3,939 Capitalized mortgage servicing rights, net 323,887 462,029 — — 462,029 Securities held-to-maturity, net 157,137 150,321 — — 150,321 Financial liabilities: Credit and repurchase facilities $ 5,812,258 $ 5,800,728 $ — $ 359,277 $ 5,441,451 Securitized debt 2,972,246 2,999,104 — — 2,999,104 Senior unsecured notes 1,857,769 1,789,738 1,789,738 — — Junior subordinated notes 145,907 113,551 — — 113,551 Notes payable - real estate owned 270,410 269,131 — — 269,131 Note 14 — 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. 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 June 30, 2026, we were required to maintain at least $ 24.3 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 June 30, 35 Table of Contents ARBOR REALTY TRUST, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) 2026, the restricted liquidity requirement totaled $ 104.7 million and was satisfied with a $ 70.0 million letter of credit and cash issued to Fannie Mae. At June 30, 2026, reserve requirements for the current Fannie Mae DUS loan portfolio will require us to fund $ 33.8 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 June 30, 2026, 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 not subject to capital requirements on a quarterly basis for Ginnie Mae and FHA, as requirements for these investors are only required on an annual basis. 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 12 and Note 13. Debt Obligations and Operating Leases. At June 30, 2026, 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 (six months ending December 31, 2026) $ 1,780,992 $ 5,767 $ 1,786,759 2027 5,084,559 9,912 5,094,471 2028 1,673,580 9,226 1,682,806 2029 1,881,957 8,714 1,890,671 2030 538,355 8,756 547,111 2031 — 6,381 6,381 Thereafter 154,336 4,543 158,879 Total $ 11,113,779 $ 53,299 $ 11,167,078 During the three and six months ended June 30, 2026, we recorded lease expense of $ 2.8 million and $ 5.7 million, respectively. During the three and six months ended June 30, 2025, we recorded lease expense of $ 2.7 million and $ 5.4 million, respectively. Unfunded Commitments. In accordance with certain structured loans and investments, we have outstanding unfunded commitments of $ 1.53 billion at June 30, 2026 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 sought to represent a class of shareholders who purchased our shares of common stock between May 7, 2021 and July 11, 2024. 36 Table of Contents ARBOR REALTY TRUST, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) 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 alleged that we had 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 sought damages in an unspecified amount, as well as attorneys’ fees and costs. On April 10, 2025, we served a motion to dismiss the case. On March 31, 2026, the Court granted the motion to dismiss in its entirety, dismissing the amended complaint. The plaintiffs were granted leave to amend the complaint within 30 days of the order dismissing the case but ultimately decided not to amend. On May 5, 2026, the Court dismissed the plaintiffs’ claims with prejudice and judgment was entered in favor of Defendants. The plaintiffs’ time to appeal has expired. 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 sought 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. On June 12, 2026, the parties filed a joint stipulation to voluntarily dismiss this action without prejudice, which was subsequently entered by the Court on July 1, 2026. 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. On April 14, 2026, the Court lifted the stay. The next day, the parties filed a joint letter to the Court, requesting that the Court reinstate the stay pursuant to its May 20, 2025 order. On April 15, 2026, the Court ordered the parties to file a joint status report by May 5, 2026, which the parties did. On May 5, 2026, the Court ordered the parties to file a joint status report by June 9, 2026. On June 9, 2026, the parties filed a joint stipulation to voluntarily dismiss this action without prejudice, which was subsequently entered by the Court on July 13, 2026. On July 18, 2025, a purported shareholder filed a verified shareholder derivative complaint in the Circuit Court for the 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. On June 19, 2026, the court entered a joint stipulation and order to extend the stay until July 10, 2026. On July 10, 2026, the parties filed a joint stipulation to voluntarily dismiss this action without prejudice, which was subsequently entered by the Court on July 14, 2026. 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. On November 14, 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. On May 18, 2026, the court entered a joint stipulation and order to extend the stay until July 10, 2026. On July 10, 2026, the parties filed a joint stipulation to voluntarily dismiss this action without prejudice, which was subsequently entered by the Court on July 13, 2026. 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 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. On June 18, 2026, the parties filed a joint stipulation to voluntarily dismiss this action without prejudice, which was subsequently entered that same day. 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 15 — 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. 37 Table of Contents ARBOR REALTY TRUST, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) 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): June 30, 2026 December 31, 2025 Assets: Restricted cash $ 103,077 $ 35,258 Loans and investments, net 3,641,332 4,557,631 Other assets 45,637 69,132 Total assets $ 3,790,046 $ 4,662,021 Liabilities: Securitized debt $ 2,972,246 $ 3,468,258 Other liabilities 6,640 9,590 Total liabilities $ 2,978,886 $ 3,477,848 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 10 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 65 VIEs in which we have a variable interest at June 30, 2026 because we do not have the ability to direct the activities of the VIEs that most significantly impact each entity's economic performance or substantially all of the activities do not involve, or are not conducted on behalf of, the Company. A summary of our variable interests in identified VIEs, of which we are not the primary beneficiary, at June 30, 2026 is as follows ($ in thousands): Type Carrying Amount (1) Loans $ 1,530,221 APL certificates 145,486 Equity investments 30,287 B Piece bonds 25,994 Agency interest-only strips 6 Total $ 1,731,994 ________________________ (1) Represents the carrying amount of loans and investments before reserves. At June 30, 2026, $ 114.4 million of loans to VIEs had corresponding specific loan loss reserves of $ 14.5 million. The maximum loss exposure at June 30, 2026 would not exceed the carrying amount of our investment. These unconsolidated VIEs have exposure to real estate debt of approximately $ 4.78 billion at June 30, 2026. Note 16 — 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 38 Table of Contents ARBOR REALTY TRUST, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) 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. At June 30, 2026, 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. During the six months ended June 30, 2026, we repurchased 7,668,592 shares of our common stock under our share repurchase program at a cost of $ 51.4 million, excluding broker commission fees, representing an average cost of $ 6.71 per share. At June 30, 2026, there was $ 85.2 million available for repurchase under this program. Noncontrolling Interest. Noncontrolling interest relates to the operating partnership units (“OP Units”) issued to satisfy a portion of the purchase price in connection with the acquisition of the agency platform of Arbor Commercial Mortgage, LLC ("ACM") in 2016. Each of these OP Units are paired with one share of our special voting preferred shares having a par value of $ 0.01 per share and is entitled to one vote each on any matter submitted for stockholder approval. The OP Units are entitled to receive distributions if and when our Board of Directors authorizes and declares common stock distributions. The OP Units are also redeemable for cash, or at our option, for shares of our common stock on a one -for-one basis. At June 30, 2026, there were 16,170,218 OP Units outstanding, which represented 7.9 % of the voting power of our outstanding stock. Distributions. Dividends declared (on a per share basis) during the six months ended June 30, 2026 are as follows: Common Stock Preferred Stock Dividend Declaration Date Dividend Declaration Date Series D Series E Series F February 24, 2026 $ 0.30 March 30, 2026 $ 0.3984375 $ 0.390625 $ 0.390625 May 7, 2026 $ 0.17 June 29, 2026 $ 0.3984375 $ 0.390625 $ 0.390625 Common Stock – On July 29, 2026, the Board of Directors declared a cash dividend of $ 0.17 per share of common stock. The dividend is payable on August 28, 2026 to common stockholders of record as of the close of business on August 14, 2026. Deferred Compensation. During 2026, we granted 1,249,730 shares of restricted common stock to certain employees and Board of Directors members under the Amended Omnibus Stock Incentive Plan with a total grant date fair value of $ 9.1 million, of which: (1) 395,249 shares with a grant date fair value of $ 3.0 million vested on the grant date in 2026; (2) 342,587 shares with a grant date fair value of $ 2.6 million will vest in 2027; (3) 352,135 shares with a grant date fair value of $ 2.6 million will vest in 2028; (4) 47,267 shares with a grant date fair value of $ 0.3 million will vest in 2029; and (5) 112,492 shares with a grant date fair value of $ 0.6 million will vest in 2030. During 2026, we granted our chief executive officer 281,690 shares of restricted common stock with a grant date fair value of $ 2.1 million that vest in full in the first quarter of 2029. We also granted our chief executive officer up to 1,126,760 shares of performance-based restricted stock units (“RSUs”) with a grant date fair value of $ 3.1 million that vest at the end of a four-year performance period based on the achievement of certain stockholder return objectives. During 2026, we granted our chief operating officer 649,350 shares of performance-based RSUs with a grant date fair value of $ 0.6 million that vest at the end of a five-year performance period based on the achievement of certain stockholder return objectives. We also awarded our chief operating officer a multi-year performance award pursuant to which he may earn between 0 % and 100 % of a maximum award value of $ 20.0 million based on the level of achievement of specified new business volume and related performance metrics during the applicable performance period. Following completion of the performance period and certification of the performance results, any portion of the award earned will be converted into and granted in the form of shares of restricted common stock. The grant date and number of shares resulting from the award will be determined at that time based on the applicable stock price specified in the award agreement. Subject to continued employment, the restricted shares will generally vest in five equal installments on the grant date and on each of the first four anniversaries of the grant date. We also issued 93,075 fully-vested RSUs with a grant date fair value of $ 0.7 million to certain members of our Board of Directors, who have decided to defer the receipt of the common stock, into which the RSUs are converted, or to defer receipt of cash fees, to a future date pursuant to a pre-established deferral election. 39 Table of Contents ARBOR REALTY TRUST, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) During 2026, we withheld 322,969 shares from the net settlement of restricted common stock by employees for payment of withholding taxes on shares that vested. Earnings Per Share (“EPS”). 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 and OP Units and for the six months ended June 30, 2025, 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): Three Months Ended June 30, 2026 2025 Basic Diluted (1) Basic Diluted Net (loss) income attributable to common stockholders (2) $ ( 37,342 ) $ ( 37,342 ) $ 23,952 $ 23,952 Net (loss) income attributable to noncontrolling interest (3) — — — 2,015 Net (loss) income attributable to common stockholders and noncontrolling interest (4) $ ( 37,342 ) $ ( 37,342 ) $ 23,952 $ 25,967 Weighted average shares outstanding 190,806,800 190,806,800 192,236,206 192,236,206 Dilutive effect of OP Units (3) — — — 16,173,761 Dilutive effect of RSUs (5) — — — 593,035 Weighted average shares outstanding (4) 190,806,800 190,806,800 192,236,206 209,003,002 Net (loss) income per common share (2) $ ( 0.20 ) $ ( 0.20 ) $ 0.12 $ 0.12 Six Months Ended June 30, 2026 2025 Net (loss) income attributable to common stockholders (2) $ ( 36,713 ) $ ( 36,713 ) $ 54,389 $ 54,389 Net (loss) income attributable to noncontrolling interest (3) — — — 4,617 Net (loss) income attributable to common stockholders and noncontrolling interest (4) $ ( 36,713 ) $ ( 36,713 ) $ 54,389 $ 59,006 Weighted average shares outstanding 192,491,494 192,491,494 191,154,501 191,154,501 Dilutive effect of OP Units (3) — — — 16,211,314 Dilutive effect of RSUs (5) — — — 572,759 Weighted average shares outstanding (4) 192,491,494 192,491,494 191,154,501 207,938,574 Net (loss) income per common share (2) $ ( 0.19 ) $ ( 0.19 ) $ 0.28 $ 0.28 ________________________ (1) For the three and six months ended June 30, 2026, potentially dilutive securities were excluded from the computation of diluted loss per common share because their effect would have been anti-dilutive due to the net loss attributable to common stockholders incurred during the period. (2) Net of preferred stock dividends. (3) 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. (4) The three and six months ended June 30, 2025 excludes interest expense of $ 6.1 million and $ 12.2 million, respectively, and potentially dilutive shares of 17,471,534 and 17,543,663 , respectively, attributable to convertible debt since their effect would have been anti-dilutive. In August 2025, our convertible debt matured and was fully settled. (5) Represents the dilutive effect of performance-based RSUs granted to certain executive officers that vest based upon our achievement of total stockholder return objectives and RSUs granted to our chief executive officer and certain directors who have decided to defer the receipt of the common stock into which the RSUs are converted, or to defer receipt of cash fees, to a future date pursuant to a pre-established deferral election. 40 Table of Contents ARBOR REALTY TRUST, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) Note 17 — Income Taxes As a REIT, we are generally not subject to U.S. federal income tax to the extent of our distributions to stockholders and as long as certain asset, income, distribution, ownership and administrative tests are met. To maintain our qualification as a REIT, we must annually distribute at least 90% of our REIT-taxable income to our stockholders and meet certain other requirements. We may also be subject to certain state, local and franchise taxes. Under certain circumstances, federal income and excise taxes may be due on our undistributed taxable income. If we were to fail to meet these requirements, we would be subject to U.S. federal income tax, which could have a material adverse impact on our results of operations and amounts available for distributions to our stockholders. We believe that all of the criteria to maintain our REIT qualification have been met for the applicable periods, but there can be no assurance that these criteria will continue to be met in subsequent periods. The Agency Business is operated through 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. On July 4, 2025, the One Big Beautiful Bill Act (the “OBBBA”) was enacted into law. The legislation includes significant changes to U.S. tax law. Both our REIT and Agency Business are now subject to the provisions of Section 162(m) of the Internal Revenue Code (“Section 162(m)”) which limits the tax deductibility of executive compensation to $1.0 million per year for each named executive officer (“NEO”). We believe that it is more likely than not a significant portion of our NEO compensation will exceed the $1.0 million limitation in current and future years resulting in no tax deductibility for the book expense associated with these compensation agreements, including share-based compensation. In addition, the OBBBA made permanent the deduction generally available to individuals, trusts and estates equal to 20% of ordinary REIT dividends, subject to certain limitations, which had previously been scheduled to expire for taxable years beginning on or after January 1, 2026. The OBBBA also increased the limitation on a REIT’s ownership of taxable REIT subsidiary securities from 20% to 25% of the REIT’s total assets, effective for taxable years beginning after December 31, 2025. A summary of our income tax provision is as follows ($ in thousands): Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Current income tax provision $ ( 5,361 ) $ ( 5,001 ) $ ( 10,026 ) $ ( 8,730 ) Deferred income tax benefit 2,211 1,603 4,791 1,741 Total income tax provision $ ( 3,150 ) $ ( 3,398 ) $ ( 5,235 ) $ ( 6,989 ) Note 18 — 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 the three and six months ended June 30, 2026, we incurred $ 0.9 million and $ 1.8 million, respectively, and, during the three and six months ended June 30, 2025, we incurred $ 1.0 million and $ 1.9 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. 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. Beginning in 2026, for certain flights, we also charter the aircraft from a certificated air carrier for use of the same aircraft. The air carrier provides charter revenue back to the aircraft owner when we use the aircraft. During the three and six months ended June 30, 2026, we reimbursed the aircraft owner $ 0.2 million and $ 0.4 million, respectively, and during the three and six months ended June 30, 2025, we reimbursed the aircraft owner $ 0.7 million and $ 0.9 million, respectively, for flights taken by our executives pursuant to the time-sharing agreement. During both the three and six months ended June 30, 2026, we reimbursed the aircraft owner $ 0.6 million, for the flights chartered by our executives pursuant to 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 41 Table of Contents ARBOR REALTY TRUST, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) 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 this loan was $ 1.1 million and $ 2.2 million for the three and six months ended June 30, 2026, respectively. See Note 8 for further details. In November 2025, we committed to fund a $ 44.8 million bridge loan ($ 2.3 million was funded at June 30, 2026) 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. Interest income recorded from this loan was less than $ 0.1 million for both the three and six months ended June 30, 2026. In October 2025, we committed to fund a $ 50.5 million bridge loan ($ 3.9 million was funded at June 30, 2026) 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. Interest income recorded from this loan was less than $ 0.1 million for both the three and six months ended June 30, 2026. 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 less than $ 0.1 million and $ 0.2 million for the three and six months ended June 30, 2026, respectively. 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 was scheduled to mature in May 2026, which was extended to July 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 on the old loan was SOFR plus 3.75 % with a SOFR floor of 0.75 % and the interest rate of 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 2026, which was extended to July 2026. In connection with the extension, the borrower paid deferred interest of $ 1.9 million. In July 2026, the outstanding bridge loan and preferred equity investment paid off in full, including all back interest owed. Interest income recorded from these loans was $ 0.6 million and $ 1.4 million for the three and six months ended June 30, 2026, respectively, and $ 1.0 million and $ 2.0 million for the three and six ended June 30, 2025, 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 May 2026, which was extended to July 2026. The preferred equity investment has a 12.00 % fixed rate and was scheduled to mature in May 2026, which was extended to July 2026. In connection with the extension, the borrower paid deferred interest of $ 1.3 million. In July 2026, the outstanding bridge loan and preferred equity investment paid off in full, including all back interest owed. Interest income recorded from these loans was $ 0.5 million and $ 1.2 million for the three and six months ended June 30, 2026, respectively, and $ 0.9 million and $ 1.9 million for the three and six months ended June 30, 2025, 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 $ 1.0 million and $ 2.0 million for the three and six months ended June 30, 2026, respectively, and $ 1.2 million and $ 2.6 million for the three and six months ended June 30, 2025, 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 ($ 40.5 million was funded at June 30, 2026) 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 $ 0.9 million and $ 1.5 million for the three and six months ended June 30, 2026, respectively, and $ 0.3 million and $ 0.6 million for the three and six months ended June 30, 2025, respectively. 42 Table of Contents ARBOR REALTY TRUST, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) In 2024, we committed to fund a $ 62.4 million bridge loan ($ 31.2 million was funded at June 30, 2026) in an SFR BTR construction project. An entity owned by an immediate family member of our chief executive officer also made an equity investment in the project and owns a 3.34 % equity interest in the borrowing entity. The loan has an interest rate of SOFR plus 4.25 % with a SOFR floor of 3.50 % and matures in July 2027. Interest income recorded from this loan was $ 0.7 million and $ 1.3 million for the three and six months ended June 30, 2026, respectively, and $ 0.2 million and $ 0.3 million for the three and six months ended June 30, 2025, respectively. In 2024, we committed to fund a $ 42.5 million bridge loan ($ 38.4 million was funded at June 30, 2026) in an SFR BTR construction project. An entity owned by an immediate family member of our chief executive officer also made an equity investment in the project and owns a 2.28 % equity interest in the borrowing entity. The loan has an interest rate of SOFR plus 4.25 % with a SOFR floor of 3.50 % and matures in May 2027. Interest income recorded from this loan was $ 0.8 million and $ 1.4 million for the three and six months ended June 30, 2026, respectively, and $ 0.3 million and $ 0.4 million for the three and six months ended June 30, 2025, respectively. In 2022, we committed to fund a $ 67.1 million bridge loan ($ 55.0 million was funded at June 30, 2026) 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 2026, which was extended to May 2027. Interest income recorded from this loan was $ 1.2 million and $ 2.4 million for the three and six months ended June 30, 2026, respectively, and $ 1.1 million and $ 2.1 million for the three and six months ended June 30, 2025, respectively. In 2022, we committed to fund a $ 39.4 million bridge loan in an SFR BTR construction project. An entity owned by an immediate family member of our chief executive officer also made an equity investment in the project and owns a 2.25 % equity interest in the borrowing entity. The loan has an interest rate of SOFR plus 4.00 % with a SOFR floor of 0.25 % and was scheduled to mature in March 2026, which was extended to March 2027. In April 2026, the bridge loan was paid off. Interest (loss) income recorded from this loan was $( 0.1 ) million and $ 0.7 million for the three and six months ended June 30, 2026, respectively, and $ 0.8 million and $ 1.5 million for the three and six months ended June 30, 2025, respectively. The interest loss recorded during the three months ended June 30, 2026 was primarily attributable to the waiver of a previously accrued exit fee in connection with the loan. 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 have 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 203 0. Interest income recorded from the mezzanine loan was less than $ 0.1 million and $ 0.2 million for the three and six months ended June 30, 2026, respectively, and $ 0.1 million and $ 0.2 million for the three and six months ended June 30, 2025, respectively. 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 have 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 that we modified 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 less than $ 0.1 million and $ 0.2 million for the three and six months ended June 30, 2026, respectively, and $ 0.7 million and $ 1.3 million for the three and six months ended June 30, 2025, 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 less than $ 0.1 million and $ 0.1 million for the three and six months ended June 30, 2026, respectively, and less than $ 0.1 million and $ 0.1 million for the three and six months ended June 30, 2025, respectively. 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 owned 75 % in the borrowing entity. The 43 Table of Contents ARBOR REALTY TRUST, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) loan had 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 recovered the specific reserve recorded. Interest income recorded from this loan was $ 0.5 million and $ 1.0 million for the three and six months ended June 30, 2025, 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. The loan was paid off in October 2025. Servicing revenue recorded from this loan was less than $ 0.1 million for the three and six months ended June 30, 2025, respectively. 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, the joint venture 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 2025, 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. See Note 8 for further details. We, along with an executive officer of ours and a consortium of independent outside investors, hold equity investments in a portfolio of multifamily properties referred to as the “Lexford” portfolio, which is managed by an entity owned primarily by a consortium of affiliated investors, including our chief executive officer and an executive officer of ours. Based on the terms of the management contract, the management company is entitled to 4.75 % of gross revenues of the underlying properties, along with the potential to share in the proceeds of a sale or restructuring of the debt. 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 June 30, 2026, this debt had an aggregate outstanding balance of approximately $ 295.0 million and is scheduled to mature through 2029. See Note 8 for further details. Several of our executives, including our chief financial officer, corporate secretary 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 June 30, 2026, ACM holds 2,535,870 shares of our common stock and 10,483,930 OP Units, which represents 6.3 % 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. 44 Table of Contents ARBOR REALTY TRUST, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) Note 19 — Segment Information As described in Note 1, we operate through two business segments – our Structured Business and our Agency Business. The summarized statements of operations 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 were 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 (loss). Our chief operating decision maker (“CODM”) is Ivan Kaufman, our chief executive officer. The CODM uses both net interest income and net income (loss) 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 (loss) 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. Three Months Ended June 30, 2026 Structured Business Agency Business Other (1) Consolidated Interest income $ 219,211 $ 11,647 $ — $ 230,858 Interest expense 172,066 5,695 — 177,761 Net interest income 47,145 5,952 — 53,097 Other revenue: Gain on sales, including fee-based services, net — 15,176 — 15,176 Mortgage servicing rights — 12,110 — 12,110 Servicing revenue — 42,126 — 42,126 Amortization of MSRs — ( 18,247 ) — ( 18,247 ) Property operating income 8,313 — — 8,313 Gain on derivative instruments, net — 1,041 — 1,041 Other income, net 1,638 622 — 2,260 Total other revenue 9,951 52,828 — 62,779 Other expenses: Employee compensation and benefits 18,667 21,525 — 40,192 Commissions — 4,904 — 4,904 Selling and administrative 8,269 7,599 — 15,868 Property operating expenses 12,670 — — 12,670 Depreciation and amortization 5,537 392 — 5,929 Impairment loss on real estate owned 13,650 — — 13,650 Provision for loss sharing, net — 13,472 — 13,472 Provision for credit losses, net 38,245 ( 82 ) — 38,163 Total other expenses 97,038 47,810 — 144,848 (Loss) income before gain on real estate, income from equity affiliates and income taxes ( 39,942 ) 10,970 — ( 28,972 ) Gain on real estate 64 — — 64 Income from equity affiliates 1,893 — — 1,893 Provision for income taxes ( 626 ) ( 2,524 ) — ( 3,150 ) Net (loss) income ( 38,611 ) 8,446 — ( 30,165 ) Preferred stock dividends 10,342 — — 10,342 Net loss attributable to noncontrolling interest — — ( 3,165 ) ( 3,165 ) Net (loss) income attributable to common stockholders $ ( 48,953 ) $ 8,446 $ 3,165 $ ( 37,342 ) 45 Table of Contents ARBOR REALTY TRUST, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) Three Months Ended June 30, 2025 Structured Business Agency Business Other (1) Consolidated Interest income $ 229,980 $ 10,323 $ — $ 240,303 Interest expense 165,858 5,720 — 171,578 Net interest income 64,122 4,603 — 68,725 Other revenue: Gain on sales, including fee-based services, net — 13,658 — 13,658 Mortgage servicing rights — 10,930 — 10,930 Servicing revenue — 45,204 — 45,204 Amortization of MSRs — ( 17,767 ) — ( 17,767 ) Property operating income 5,452 — — 5,452 Gain on derivative instruments, net — 219 — 219 Other income, net 2,105 1,884 — 3,989 Total other revenue 7,557 54,128 — 61,685 Other expenses: Employee compensation and benefits 16,018 20,905 — 36,923 Commissions — 4,258 — 4,258 Selling and administrative 7,590 7,269 — 14,859 Property operating expenses 6,802 — — 6,802 Depreciation and amortization 5,456 392 — 5,848 Provision for loss sharing, net — 4,215 — 4,215 Provision for credit losses 16,112 2,892 — 19,004 Total other expenses 51,978 39,931 — 91,909 Income before loss on real estate, income from equity affiliates and income taxes 19,701 18,800 — 38,501 Loss on real estate ( 1,448 ) — — ( 1,448 ) Income from equity affiliates 2,654 — — 2,654 Provision for income taxes ( 1,277 ) ( 2,121 ) — ( 3,398 ) Net income 19,630 16,679 — 36,309 Preferred stock dividends 10,342 — — 10,342 Net income attributable to noncontrolling interest — — 2,015 2,015 Net income attributable to common stockholders $ 9,288 $ 16,679 $ ( 2,015 ) $ 23,952 46 Table of Contents ARBOR REALTY TRUST, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) Six Months Ended June 30, 2026 Structured Business Agency Business Other (1) Consolidated Interest income $ 443,605 $ 22,300 $ — $ 465,905 Interest expense 342,881 10,082 — 352,963 Net interest income 100,724 12,218 — 112,942 Other revenue: Gain on sales, including fee-based services, net — 27,681 — 27,681 Mortgage servicing rights — 21,770 — 21,770 Servicing revenue — 86,159 — 86,159 Amortization of MSRs — ( 36,540 ) — ( 36,540 ) Property operating income 16,373 — — 16,373 Gain on derivative instruments, net — 548 — 548 Other income, net 3,865 471 — 4,336 Total other revenue 20,238 100,089 — 120,327 Other expenses: Employee compensation and benefits 37,529 46,487 — 84,016 Commissions — 8,763 — 8,763 Selling and administrative 17,419 15,402 — 32,821 Property operating expenses 24,635 — — 24,635 Depreciation and amortization 12,250 783 — 13,033 Impairment loss on real estate owned 26,150 — — 26,150 Provision for loss sharing, net — 18,009 — 18,009 Provision for loan losses, net 41,889 2,090 — 43,979 Total other expenses 159,872 91,534 — 251,406 (Loss) income before loss on real estate, income from equity affiliates and income taxes ( 38,910 ) 20,773 — ( 18,137 ) Loss on real estate ( 2,073 ) — — ( 2,073 ) Income from equity affiliates 6,304 — — 6,304 Provision for income taxes ( 544 ) ( 4,691 ) — ( 5,235 ) Net (loss) income ( 35,223 ) 16,082 — ( 19,141 ) Preferred stock dividends 20,684 — — 20,684 Net loss attributable to noncontrolling interest — — ( 3,112 ) ( 3,112 ) Net (loss) income attributable to common stockholders $ ( 55,907 ) $ 16,082 $ 3,112 $ ( 36,713 ) 47 Table of Contents ARBOR REALTY TRUST, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) Six Months Ended June 30, 2025 Structured Business Agency Business Other (1) Consolidated Interest income $ 460,067 $ 20,930 $ — $ 480,997 Interest expense 327,437 9,392 — 336,829 Net interest income 132,630 11,538 — 144,168 Other revenue: Gain on sales, including fee-based services, net — 26,439 — 26,439 Mortgage servicing rights — 19,061 — 19,061 Servicing revenue — 88,565 — 88,565 Amortization of MSRs — ( 35,525 ) — ( 35,525 ) Property operating income 9,839 — — 9,839 Gain on derivative instruments, net — 3,619 — 3,619 Other income, net 4,183 4,224 — 8,407 Total other revenue 14,022 106,383 — 120,405 Other expenses: Employee compensation and benefits 34,175 44,171 — 78,346 Commissions — 8,871 — 8,871 Selling and administrative 16,521 14,650 — 31,171 Property operating expenses 10,276 — — 10,276 Depreciation and amortization 8,809 783 — 9,592 Provision for loss sharing, net — 6,002 — 6,002 Provision for credit losses, net 25,266 2,813 — 28,079 Total other expenses 95,047 77,290 — 172,337 Income before extinguishment of debt, loss on real estate, income from equity affiliates and income taxes 51,605 40,631 — 92,236 Loss on extinguishment of debt ( 2,319 ) — — ( 2,319 ) Loss on real estate ( 4,258 ) — — ( 4,258 ) Income from equity affiliates 1,020 — — 1,020 Provision for income taxes ( 639 ) ( 6,350 ) — ( 6,989 ) Net income 45,409 34,281 — 79,690 Preferred stock dividends 20,684 — — 20,684 Net income attributable to noncontrolling interest — — 4,617 4,617 Net income attributable to common stockholders $ 24,725 $ 34,281 $ ( 4,617 ) $ 54,389 ________________________ (1) Includes income (loss) allocated to the noncontrolling interest holders not allocated to the two reportable segments. 48 Table of Contents ARBOR REALTY TRUST, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) June 30, 2026 Structured Business Agency Business Consolidated Assets: Cash and cash equivalents $ 58,886 $ 228,639 $ 287,525 Restricted cash 103,077 35,305 138,382 Loans and investments, net 11,915,216 — 11,915,216 Loans held-for-sale, net — 375,797 375,797 Capitalized mortgage servicing rights, net — 323,887 323,887 Securities held-to-maturity, net — 157,137 157,137 Investments in equity affiliates 82,762 — 82,762 Real estate owned, net 545,946 — 545,946 Goodwill and other intangible assets 12,500 73,270 85,770 Other assets 345,603 94,800 440,403 Total assets $ 13,063,990 $ 1,288,835 $ 14,352,825 Liabilities: Debt obligations $ 10,699,313 $ 359,277 $ 11,058,590 Allowance for loss-sharing obligations — 118,898 118,898 Other liabilities 211,266 83,048 294,314 Total liabilities $ 10,910,579 $ 561,223 $ 11,471,802 December 31, 2025 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 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 241,873 72,849 314,722 Total liabilities $ 10,866,926 $ 560,824 $ 11,427,750 49 Table of Contents ARBOR REALTY TRUST, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Origination Data: Structured Business Bridge: Multifamily $ 159,550 $ 103,300 $ 565,150 $ 471,050 SFR 490,617 530,986 811,739 887,280 650,167 634,286 1,376,889 1,358,330 Construction - Multifamily 38,810 75,259 79,680 93,896 Mezzanine / Preferred Equity — 6,999 — 11,439 Total New Loan Originations $ 688,977 $ 716,544 $ 1,456,569 $ 1,463,665 Number of Loans Originated 14 19 20 39 Commitments: Construction - Multifamily $ — $ 173,000 $ 113,070 $ 265,000 SFR 48,785 232,384 101,785 394,784 Total Commitments $ 48,785 $ 405,384 $ 214,855 $ 659,784 Loan Runoff $ 539,745 $ 519,709 $ 1,400,778 $ 941,650 Agency Business Origination Volumes by Investor: Fannie Mae $ 619,130 $ 683,206 $ 1,189,945 $ 1,041,017 Freddie Mac 428,278 150,339 519,533 328,359 FHA 8,083 — 53,590 16,041 Private Label — — — 44,925 SFR - Fixed Rate 21,272 23,552 21,272 32,663 Total New Loan Originations $ 1,076,763 $ 857,097 $ 1,784,340 $ 1,463,005 Total Loan Commitment Volume $ 1,211,900 $ 852,766 $ 1,945,760 $ 1,498,167 Agency Business Loan Sales Data: Fannie Mae $ 740,728 $ 657,305 $ 1,312,307 $ 1,013,021 Freddie Mac 335,931 114,464 412,934 412,949 FHA 45,507 18,366 67,897 85,908 SFR - Fixed Rate 21,272 16,885 21,272 25,996 Total Loan Sales $ 1,143,438 $ 807,020 $ 1,814,410 $ 1,537,874 Sales Margin (fee-based services as a % of loan sales) 1.33 % 1.69 % 1.53 % 1.72 % MSR Rate (MSR income as a % of loan commitments) 1.00 % 1.28 % 1.12 % 1.27 % ________________________ 50 Table of Contents ARBOR REALTY TRUST, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) June 30, 2026 Key Servicing Metrics for Agency Business: Servicing Portfolio UPB Wtd. Avg. Servicing Fee Rate (basis points) Wtd. Avg. Life of Portfolio (years) Fannie Mae $ 24,419,734 43.9 5.2 Freddie Mac 7,672,121 17.6 5.7 Private Label 2,477,077 18.7 4.1 FHA 1,585,871 13.8 18.9 Bridge 277,333 10.4 1.7 SFR - Fixed Rate 272,226 20.0 3.8 Total $ 36,704,362 35.0 5.8 December 31, 2025 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 51 Table of Contents