GlobeNewswire Inc | Feb 19, 2021 08:00AM EST

February 19, 2021

Fourth Quarter Highlights:

-- Diversified operating platform with a multifamily focus that continues to produce strong distributable earnings and dividends in all cyclesGAAP net income of $0.80 and distributable earnings of $0.49 per diluted common share1Raised cash dividend on common stock to $0.33 per share, our third consecutive quarterly increaseContinued strong performance from our residential mortgage banking joint venture generating pretax income of $19.6 millionRaised $105 million of accretive growth capital through the issuance of common shares

Agency Business:

-- Segment income of $70.9 million -- Record loan originations of $2.75 billion, an 87% increase over last quarter -- Servicing portfolio of $24.63 billion representing 9% growth in the current quarter

Structured Business:

-- Segment income of $39.9 million -- Portfolio growth of 7% on $985.2 million of loan originations

Full Year Highlights:

-- GAAP net income of $1.41 and distributable earnings of $1.75 per diluted common share1 -- Raised annual dividend run rate to $1.32 per share, a 10% increase from a year ago, representing nine straight years of dividend growth -- Record originations of $9.15 billion, a 20% increase over 2019 -- Agency servicing portfolio growth of 23% from record loan originations of $6.71 billion -- Structured portfolio growth of 28% from loan originations of $2.43 billion -- Industry leading shareholder return of 7% in 2020 despite ongoing pandemic; all other commercial mortgage REITs in our space had a negative return during 2020 -- Raised $250 million of accretive growth capital through issuance of common stock and senior unsecured debt -- Continued focus on improving funding sources: issued $275.0 million of 4.50% senior notes to replace higher cost debt, increased warehouse capacity by $420.0 million, added a new $800.0 million CLO vehicle and completed first private label securitization totaling $727.2 million -- Generated pretax income of $75.7 million from residential mortgage banking joint venture -- Named the top Fannie Mae Small Loan Producer two years running (2019-2020); jumped up to sixth on the Top Fannie Mae DUS Multifamily Lender list for 2020

UNIONDALE, N.Y., Feb. 19, 2021 (GLOBE NEWSWIRE) -- Arbor Realty Trust, Inc. (NYSE:ABR), today announced financial results for the fourth quarter and year ended December 31, 2020. Arbor reported net income for the quarter of $96.6 million, or $0.80 per diluted common share, compared to net income of $35.5 million, or $0.34 per diluted common share for the quarter ended December 31, 2019. Net income for the year was $163.4 million, or $1.41 per diluted common share, compared to $121.1 million, or $1.27 per diluted common share for the year ended December 31, 2019. Distributable earnings for the quarter was $67.4 million, or $0.49 per diluted common share, compared to $42.3 million, or $0.34 per diluted common share for the quarter ended December 31, 2019. Distributable earnings for the year was$234.9 million, or$1.75per diluted common share, compared to$159.2 million, or$1.37per diluted common share for the year endedDecember 31, 2019.1

We had a tremendous fourth quarter and an exceptional 2020 demonstrating the value of our franchise and the strength of our diverse business model, said Ivan Kaufman, founder, chairman and CEO of Arbor Realty Trust. Our outstanding results continue to reflect the successful execution of our business strategy and our versatile operating platform that have once again allowed us to increase our dividend to 33 cents a share our third consecutive quarterly dividend increase representing 10% growth in 2020. Arbor continues to outperform in the commercial mortgage REIT space and we are well positioned to succeed in the current economic climate giving us confidence in our ability to continue to generate strong earnings and dividends in the future.

Agency Business

Loan Origination Platform

Agency Loan Volume (in thousands) Quarter Ended Year Ended December 31, September December 31, December 31, 2020 30, 2020 2019 2020Fannie Mae $ 2,202,092 $ 1,117,679 $ 5,041,925 $ 3,346,272Freddie Mac 373,063 252,014 960,508 728,317FHA 133,523 100,345 327,345 123,095Private Label 44,884 5,840 382,191 401,216CMBS/Conduit - - - 211,325Total $ 2,753,562 $ 1,475,878 $ 6,711,969 $ 4,810,225Originations Total Loan $ 2,418,317 $ 1,219,462 $ 6,587,728 $ 4,401,112Sales Total Loan $ 2,808,173 $ 1,528,551 $ 6,810,666 $ 4,829,721Commitments

For the quarter ended December 31, 2020, the Agency Business generated revenues (excluding gains and losses on derivative instruments) of $125.6 million, compared to $81.8 million for the third quarter of 2020. Gain on sales, including fee-based services, net was $34.0 million for the quarter, reflecting a margin of 1.41% on loan sales, compared to $19.9 million and 1.63% for the third quarter of 2020. Income from mortgage servicing rights was $68.8 million for the quarter, reflecting a rate of 2.45% as a percentage of loan commitments, compared to $42.4 million and 2.77% for the third quarter of 2020.

At December 31, 2020, loans held-for-sale was $986.9 million which was primarily comprised of unpaid principal balances totaling $968.6 million, with financing associated with these loans totaling $952.0 million.

Fee-Based Servicing Portfolio

Our fee-based servicing portfolio totaled $24.63 billion at December 31, 2020, an increase of 9.2% from September 30, 2020, primarily the result of $2.75 billion of new agency loan originations, net of $641.8 million in portfolio runoff during the quarter. Servicing revenue, net was $14.2 million for the quarter and consisted of servicing revenue of $27.3 million, net of amortization of mortgage servicing rights totaling $13.1 million.

Fee-Based Servicing Portfolio ($ in thousands) As of December 31, 2020 As of September 30, 2020 Wtd. Wtd. Wtd. Avg. Wtd. Avg. UPB Avg. Life UPB Avg. Life Fee (in Fee (in years) years)Fannie $ 18,268,268 0.523 % 8.2 $ 16,462,041 0.516 % 8.4MaeFreddie Mac 4,881,080 0.279 % 9.9 4,687,197 0.288 % 10.4FHA 752,116 0.163 % 20.3 685,263 0.171 % 20.4Private 726,992 0.200 % 8.7 727,063 0.200 % 9.4LabelTotal $ 24,628,456 0.454 % 8.9 $ 22,561,564 0.448 % 9.2

Loans sold under the Fannie Mae program contain an obligation to partially guarantee the performance of the loan (loss-sharing obligations), and includes $34.0 million for the fair value of the guarantee obligation undertaken at December 31, 2020. The Company recorded a $7.6 million reversal of provision for loss sharing associated with current expected credit losses, or CECL, for the fourth quarter of 2020. At December 31, 2020, the Companys total CECL allowance for loss-sharing obligations was $30.3 million, representing 0.17% of the Fannie Mae servicing portfolio.

Structured Business

Portfolio and Investment Activity

Quarter ended December 31, 2020:

-- Strong growth in the portfolio of $378.2 million, or 7.4% -- Continued significant income generated by our residential mortgage banking joint venture -- Originated 57 loans totaling $985.2 million, consisted primarily of multifamily bridge loans totaling $868.7 million -- Payoffs and pay downs on 32 loans totaling $567.6 million

Year ended December 31, 2020:

-- Portfolio growth of $1.20 billion, or $27.9% -- Originated 137 loans totaling $2.43 billion, consisted primarily of multifamily bridge loans totaling $2.12 billion -- Payoffs and pay downs totaling $1.21 billion

The Company recorded pretax income of $19.6 million from its significant joint venture investment in a residential mortgage banking business as a result of the continued historically low interest rate environment. Pretax income from this investment for the year ended December 31, 2020 totaled $75.7 million.

At December 31, 2020, the loan and investment portfolios unpaid principal balance, excluding loan loss reserves, was $5.48 billion, with a weighted average current interest pay rate of 5.23%, compared to $5.10 billion and 5.39% at September 30, 2020. Including certain fees earned and costs associated with the loan and investment portfolio, the weighted average current interest pay rate was 5.80% at December 31, 2020, compared to 5.93% at September 30, 2020.

The average balance of the Companys loan and investment portfolio during the fourth quarter of 2020, excluding loan loss reserves, was $5.09 billion with a weighted average yield of 6.04%, compared to $4.98 billion and 5.98% for the third quarter of 2020.

During the fourth quarter of 2020, the Company recorded additional provisions for loan losses of $1.7 million as a result of its loan review process associated with CECL. At December 31, 2020, the Companys total allowance for loan losses was $148.3 million. The Company had seven non-performing loans with a carrying value of $60.3 million, before related loan loss reserves of $6.5 million, compared to eight loans with a carrying value of $62.9 million, before related loan loss reserves of $9.1 million as of September 30, 2020.

Financing Activity

The balance of debt that finances the Companys loan and investment portfolio at December 31, 2020 was $4.92 billion with a weighted average interest rate including fees of 3.03% as compared to $4.52 billion and a rate of 3.09% at September 30, 2020. The average balance of debt that finances the Companys loan and investment portfolio for the fourth quarter of 2020 was $4.64 billion, as compared to $4.59 billion for the third quarter of 2020. The average cost of borrowings for the fourth quarter of 2020 was 3.05%, compared to 3.06% for the third quarter of 2020.

The Company is subject to various financial covenants and restrictions under the terms of its collateralized securitization vehicles, financing facilities and unsecured debt. The Company believes it was in compliance with all financial covenants and restrictions as of December 31, 2020 and as of the most recent collateralized securitization vehicle determination dates in February 2021.

Capital Markets

The Company issued 7.0 million shares of common stock in a public offering receiving net proceeds of $93.0 million. The proceeds are primarily to be used to make investments and for general corporate purposes.

Dividends

The Company announced today that its Board of Directors has declared a quarterly cash dividend of $0.33 per share of common stock for the quarter ended December 31, 2020, representing a 10.0% increase from a year ago. The dividend is payable on March 19, 2021 to common stockholders of record on March 3, 2021. The ex-dividend date is March 2, 2021.

As previously announced, the Board of Directors has declared cash dividends on the Company's Series A, Series B and Series C cumulative redeemable preferred stock reflecting accrued dividends from December 1, 2020 through February 28, 2021. The dividends are payable on March 1, 2021 to preferred stockholders of record on February 15, 2021. The Company will pay total dividends of $0.515625, $0.484375 and $0.53125 per share on the Series A, Series B and Series C preferred stock, respectively.

Earnings Conference Call

The Company will host a conference call today at 10:00 a.m. Eastern Time. A live webcast and replay of the conference call will be available at http://www.arbor.com in the investor relations section of the Companys website. Those without web access should access the call telephonically at least ten minutes prior to the conference call. The dial-in numbers are (877) 876-9173 for domestic callers and (785) 424-1667 for international callers. Please use participant passcode ABRQ420 when prompted by the operator.

A telephonic replay of the call will be available until February 26, 2021. The replay dial-in numbers are (800) 839-6737 for domestic callers and (402) 220-6052 for international callers.

About Arbor Realty Trust, Inc.

Arbor Realty Trust, Inc. (NYSE:ABR) is a nationwide real estate investment trust and direct lender, providing loan origination and servicing for multifamily, seniors housing, healthcare and other diverse commercial real estate assets. Headquartered in New York, Arbor manages a multibillion-dollar servicing portfolio, specializing in government-sponsored enterprise products. Arbor is a Fannie Mae DUS lender and Freddie Mac Optigo Seller/Servicer. Arbors product platform also includes CMBS, bridge, mezzanine and preferred equity lending. Rated by Standard and Poors and Fitch Ratings, Arbor is committed to building on its reputation for service, quality and customized solutions with an unparalleled dedication to providing our clients excellence over the entire life of a loan.

Safe Harbor Statement

Certain items in this press release may constitute forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements are based on managements current expectations and beliefs and are subject to a number of trends and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. Arbor can give no assurance that its expectations will be attained. Factors that could cause actual results to differ materially from Arbors expectations include, but are not limited to, changes in economic conditions generally, and the real estate markets specifically, in particular, due to the uncertainties created by the COVID-19 pandemic, continued ability to source new investments, changes in interest rates and/or credit spreads, and other risks detailed in Arbors Annual Report on Form 10-K for the year ended December 31, 2020 and its other reports filed with the SEC. Such forward-looking statements speak only as of the date of this press release. Arbor expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in Arbors expectations with regard thereto or change in events, conditions, or circumstances on which any such statement is based.

1. Non-GAAP Financial Measures

During the quarterly earnings conference call, the Company may discuss non-GAAP financial measures as defined by SEC Regulation G. In addition, the Company has used non-GAAP financial measures in this press release. A supplemental schedule of non-GAAP financial measures and the comparable GAAP financial measure can be found on page 12 of this release.

Contacts: Investors: Media:Arbor Realty Trust, Inc. The Ruth Group Bonnie HabyanPaul Elenio, Chief Financial Daniel Kontoh-Boateng/James Chief MarketingOfficer Salierno Officer516-506-4422 646-536-7019/7028 516-506-4615pelenio@arbor.com dboateng@theruthgroup.com bhabyan@arbor.com jsalierno@theruthgroup.com

ARBOR REALTY TRUST, INC. AND SUBSIDIARIES Consolidated Statements of Income($ in thousands?except share and per share data) Quarter Ended December 31, Year Ended December 31, 2020 2019 2020 2019 (Unaudited) (Unaudited) Interest $ 86,157 $ 81,983 $ 339,465 $ 315,940 incomeInterest 40,044 48,186 169,216 186,399 expense Net interest 46,113 33,797 170,249 129,541 income Other revenue: Gain on sales,including 34,041 13,755 94,607 65,652 fee-basedservices, netMortgageservicing 68,809 27,909 165,517 90,761 rightsServicing 14,229 14,587 54,385 54,542 revenue, netPropertyoperating - 1,487 3,976 9,674 incomeGain (loss) onderivative 518 4,764 (58,335 ) (1,962 )instruments,netOther income, 706 (137 ) 4,109 1,178 net Total other 118,303 62,365 264,259 219,845 revenue Other expenses:Employeecompensation 42,728 28,456 144,380 122,102 and benefitsSelling and 8,334 9,205 37,348 40,329 administrativePropertyoperating 120 2,571 4,898 10,220 expensesDepreciationand 1,810 1,847 7,640 7,510 amortizationImpairmentloss on real - - - 1,000 estate ownedProvision forloss sharing (6,884 ) (409 ) 14,822 1,147 (net ofrecoveries)Provision forcredit losses 1,600 - 61,110 - (net ofrecoveries) Total other 47,708 41,670 270,198 182,308 expensesIncome beforeextinguishmentof debt, sale of realestate, incomefrom equityaffiliates,and income 116,708 54,492 164,310 167,078 taxes

Loss onextinguishment - (7,311 ) (3,546 ) (7,439 )of debtGain (loss) onsale of real 1,493 - (375 ) - estateIncome fromequity 19,402 1,502 76,161 10,635 affiliatesProvision for (24,901 ) (4,072 ) (40,393 ) (15,036 )income taxes Net income 112,702 44,611 196,157 155,238 Preferredstock 1,888 1,888 7,554 7,554 dividendsNet incomeattributableto 14,197 7,181 25,208 26,610 noncontrollinginterestNet incomeattributable $ 96,617 $ 35,542 $ 163,395 $ 121,074 to commonstockholders Basic earningsper common $ 0.81 $ 0.35 $ 1.44 $ 1.30 shareDilutedearnings per $ 0.80 $ 0.34 $ 1.41 $ 1.27 common share Weightedaverage shares outstanding: Basic 119,875,315 101,611,818 113,811,471 92,851,327 Diluted 138,630,532 125,498,359 133,969,296 116,192,951 Dividendsdeclared per $ 0.32 $ 0.30 $ 1.23 $ 1.14 common share

ARBOR REALTY TRUST, INC. AND SUBSIDIARIES Consolidated Balance Sheets ($ in thousands?except share and per share data) December 31, December 31, 2020 2019 Assets: Cash and cash equivalents $ 339,528 $ 299,687 Restricted cash 197,470 210,875 Loans and investments, net (allowance forcredit losses: $148,329 and $71,069, 5,285,868 4,189,960 respectively)Loans held-for-sale, net 986,919 861,360 Capitalized mortgage servicing rights, net 379,974 286,420 Securities held-to-maturity, net (allowancefor credit losses: $1,644 and $0, 95,524 88,699 respectively)Investments in equity affiliates 74,274 41,800 Real estate owned, net 1,485 13,220 Due from related party 12,449 10,651 Goodwill and other intangible assets 105,451 110,700 Other assets 182,044 125,788 Total assets $ 7,660,986 $ 6,239,160 Liabilities and Equity: Credit facilities and repurchase agreements $ 2,234,883 $ 1,678,288 Collateralized loan obligations 2,517,309 2,130,121 Debt fund - 68,629 Senior unsecured notes 662,843 319,799 Convertible senior unsecured notes, net 267,973 284,152 Junior subordinated notes to subsidiary trust 141,656 140,949 issuing preferred securitiesDue to related party 2,365 13,100 Due to borrowers 89,325 79,148 Allowance for loss-sharing obligations 64,303 34,648 Other liabilities 197,644 134,299 Total liabilities 6,178,301 4,883,133 Equity: Arbor Realty Trust, Inc. stockholders' equity: Preferred stock, cumulative, redeemable, $0.01 par value: 100,000,000 shares authorized; special voting preferred shares; 17,560,633 and 20,369,265 shares issued and outstanding, respectively; 8.25% Series A, $38,788 aggregate liquidation preference; 1,551,500 shares issued and outstanding; 7.75% Series B, $31,500 aggregate liquidation preference; 1,260,000 shares issued and outstanding; 8.50% Series C, $22,500 aggregate liquidation preference; 900,000 shares issued and 89,472 89,501 outstanding Common stock, $0.01 par value: 500,000,000 shares authorized; 123,181,173 and 109,706,214 shares issued and 1,232 1,097 outstanding, respectively Additional paid-in capital 1,317,109 1,154,932 Accumulated deficit (63,442 ) (60,920 ) Total Arbor Realty Trust, Inc. stockholders? 1,344,371 1,184,610 equity Noncontrolling interest 138,314 171,417 Total equity 1,482,685 1,356,027 Total liabilities and equity $ 7,660,986 $ 6,239,160

ARBOR REALTY TRUST, INC. AND SUBSIDIARIES Statement of Income Segment Information - (Unaudited)(in thousands) Quarter Ended December 31, 2020 Structured Agency Other / Business Business Eliminations Consolidated ^(1) Interest $ 77,651 $ 8,506 $ - $ 86,157 incomeInterest 35,574 4,470 - 40,044 expense Net interest 42,077 4,036 - 46,113 income Other revenue: Gain on sales,including - 34,041 - 34,041 fee-basedservices, netMortgageservicing - 68,809 - 68,809 rightsServicing - 27,322 - 27,322 revenueAmortization - (13,093 ) - (13,093 )of MSRsGain onderivative 317 201 - 518 instruments,netOther income, 706 - - 706 net Total other 1,023 117,280 - 118,303 revenue Other expenses:Employeecompensation 11,412 31,316 - 42,728 and benefitsSelling and 3,059 5,275 - 8,334 administrativePropertyoperating 120 - - 120 expensesDepreciationand 546 1,264 - 1,810 amortizationProvision forloss sharing - (6,884 ) - (6,884 )(net ofrecoveries)Provision forcredit losses 1,584 16 - 1,600 (net ofrecoveries) Total other 16,721 30,987 - 47,708 expensesIncome beforesale of real estate, incomefrom equityaffiliates,and income 26,379 90,329 - 116,708 taxes

Gain on sale 990 503 - 1,493 of real estateIncome fromequity 19,402 - - 19,402 affiliatesProvision for (4,966 ) (19,935 ) - (24,901 )income taxes Net income 41,805 70,897 - 112,702 Preferredstock 1,888 - - 1,888 dividendsNet incomeattributableto - - 14,197 14,197 noncontrollinginterestNet income (loss)attributable to $ 39,917 $ 70,897 $ (14,197 ) $ 96,617 commonstockholders ^(1) Includes certain income or expenses not allocated to the two reportablesegments. Amount reflects income attributableto thenoncontrolling interestholders.

ARBOR REALTY TRUST, INC. AND SUBSIDIARIES Balance Sheet Segment Information - (Unaudited)(in thousands) December 31, 2020 Structured Agency Consolidated Business BusinessAssets: Cash and cash equivalents $ 172,568 $ 166,960 $ 339,528Restricted cash 188,226 9,244 197,470Loans and investments, net 5,285,868 - 5,285,868Loans held-for-sale, net - 986,919 986,919Capitalized mortgage servicing - 379,974 379,974rights, netSecurities held-to-maturity, - 95,524 95,524netInvestments in equity 74,274 - 74,274affiliatesGoodwill and other intangible 12,500 92,951 105,451assetsOther assets 142,844 53,134 195,978Total assets $ 5,876,280 $ 1,784,706 $ 7,660,986 Liabilities: Debt obligations $ 4,872,626 $ 952,038 $ 5,824,664Allowance for loss-sharing - 64,303 64,303obligationsOther liabilities 203,554 85,780 289,334Total liabilities $ 5,076,180 $ 1,102,121 $ 6,178,301

ARBOR REALTY TRUST, INC. AND SUBSIDIARIESReconciliation of Distributable Earnings to GAAP Net Income - (Unaudited)($ in thousands?except share and per share data) Quarter Ended December Year Ended December 31, 31, 2020 2019 2020 2019 Net income attributable $ 96,617 $ 35,542 $ 163,395 $ 121,074to common stockholders Adjustments: Net income attributableto noncontrolling 14,197 7,181 25,208 26,610interestIncome from mortgage (68,809) (27,909) (165,517) (90,761)servicing rightsDeferred tax provision 9,898 1,176 4,726 150Amortization and 17,241 18,547 65,979 71,105write-offs of MSRsDepreciation and 2,755 2,690 11,486 11,194amortizationLoss on extinguishment of - 7,311 3,546 7,439debtProvision for credit (5,742) 172 73,402 1,193losses, net(Gain) loss on derivative (518) (4,372) 43,596 1,687instruments, netStock-based compensation 1,761 1,941 9,046 9,515 Distributable earnings ^ $ 67,400 $ 42,279 $ 234,867 $ 159,206(1) Diluted distributable $ 0.49 $ 0.34 $ 1.75 $ 1.37earnings per share ^(1) Diluted weighted average 138,630,532 125,498,359 133,969,296 116,192,951shares outstanding ^(1) ^(1) Amounts are attributable to common stockholders and OP Unit holders. TheOP Units are redeemable for cash, or at the Company's option for shares of theCompany's common stock on a one-for-one basis.

Beginning in the fourth quarter of 2020, the Company changed the name of itsnon-GAAP financial measure from core earnings to distributable earnings.Although calculated the same way as core earnings, the Company believes thename change to distributable earnings better reflects what this non-GAAPfinancial measure presents.

The Company is presenting distributable earnings because management believes itis an important supplemental measure of the Company's operating performance andis useful to investors, analysts and other parties in the evaluation of REITsand their ability to provide dividends to stockholders. Dividends are one ofthe principal reasons investors invest in REITs. To maintain REIT status, REITsare required to distribute at least 90% of their REIT-taxable income. TheCompany considers distributable earnings in determining its quarterly dividendand believes that, over time, distributable earnings is a useful indicator ofthe Company's dividends per share.

The Company defines distributable earnings as net income (loss) attributable tocommon stockholders computed in accordance with GAAP, adjusted for accountingitems such as depreciation and amortization (adjusted for unconsolidated jointventures), non-cash stock-based compensation expense, income from MSRs,amortization and write-offs of MSRs, gains/losses on derivative instrumentsprimarily associated with Private Label loans not yet sold and securitized, thetax impact on cumulative gains/losses on derivative instruments associated withPrivate Label loans sold during the periods presented, changes in fair value ofGSE-related derivatives that temporarily flow through earnings, deferred tax(benefit) provision, CECL provisions for credit losses (adjusted for realizedlosses as described below) and amortization of the convertible senior notesconversion option. The Company also adds back one-time charges such asacquisition costs and one-time gains/losses on the early extinguishment ofdebt.

The Company reduces distributable earnings for realized losses in the periodmanagement determines that a loan is deemed nonrecoverable. Loans are deemednonrecoverable upon the earlier of: (i) when the loan receivable is settled(i.e. when the loan is repaid, or in the case of foreclosure, when theunderlying asset is sold); or (ii) when management determines that it is nearlycertain that all amounts due will not be collected. The realized loss amount isequal to the difference between the cash received, or expected to be received,and the book value of the asset.

Distributable earnings is not intended to be an indication of the Company'scash flows from operating activities (determined in accordance with GAAP) or ameasure of its liquidity, nor is it entirely indicative of funding theCompany's cash needs, including its ability to make cash distributions. TheCompany's calculation of distributable earnings may be different from thecalculations used by other companies and, therefore, comparability may belimited.

As noted above, the Company changed the name of its non-GAAP financial measurefrom core earnings to distributable earnings in the fourth quarter of 2020.Core earnings was introduced as the Company's non-GAAP performance measure inthe first quarter of 2020 as a replacement of adjusted funds from operations(?AFFO?). Core earnings was comparable to the previous AFFO metric, revised toexclude provisions for credit losses (including CECL) related to the Company'sstructured loan portfolio, securities held-to maturity and loss-sharingobligations related to the Fannie Mae program. Prior period amounts presentedin the table above have been conformed to reflect these changes.