Arbor Realty (ABR) Q1 2026 Earnings Transcript

Motley Fool Transcribing, The Motley Fool

Fri, May 8, 2026 astatine 10:43 AM CDT 33 min read

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Date

Friday, May 8, 2026 astatine 10 a.m. ET

Call participants

• Chairman, Chief Executive Officer, and President — Ivan Paul Kaufman

• Chief Financial Officer and Treasurer — Paul Anthony Elenio

Full Conference Call Transcript

Ivan Paul Kaufman: Thank you, Stephanie, and bully morning, everyone, and invited to the quarterly net telephone for Arbor Realty Trust, Inc. This morning, we volition sermon the results for the 4th ended March 31, 2026. Some of the abbreviated reports look to person provoked investigative involvement from regulators, arsenic good arsenic people actions and derivative claims from plaintiffs’ instrumentality firms. We person steadfastly maintained that these attacks and claims made against america were baseless and misleading. We are pleased to study successful that respect that we judge immoderate pending investigations that were initiated successful the aftermath of the abbreviated reports person present been closed without immoderate enactment against us.

Additionally, and precise recently, our question to disregard the people enactment suit against america was granted and the claims dismissed without prejudice. We person been precise pleased with these developments. Although our absorption squad ne'er mislaid show of our shareholders and their interests during this challenging period, we are blessed to enactment this section down america and absorption connected creating shareholder worth escaped of these costly and unwarranted distractions.

On our past net call, we discussed astatine magnitude however we consciousness we are astatine the bottommost of the rhythm and person ring-fenced the bulk of our nonperforming and subperforming loans and are moving exceedingly hard astatine accelerating the solution of these loans into performing assets, which volition let america to commencement to physique backmost our tally complaint of involvement income for the future. This is our apical priority, arsenic these loans are having a tremendous resistance connected our earnings. We besides mentioned that if rates went down the process would accelerate, and if rates increased, it would pb to a longer play of clip needed to resoluteness these loans.

Unfortunately, fixed the geopolitical landscape, the five- and ten-year person really accrued astir 50 ground points successful the archetypal quarter, which is surely pushing our timetable retired a small bit. Despite these challenges, we proceed to marque advancement successful moving done our assets, and again, we judge we person a wide enactment of show connected resolving a bulk of these assets implicit the adjacent respective quarters. We ended the archetypal 4th with astir $500 cardinal successful delinquencies and astir $500 cardinal of REO assets for full nonperforming assets of astir $1 billion. These numbers are down astir $100 cardinal from the past quarter, oregon a 9% simplification successful risk.