XML 93 R45.htm IDEA: XBRL DOCUMENT
v3.19.3.a.u2

Fair Value (Tables) | 12 Months Ended
--- | ---
Dec. 31, 2019
Fair Value. |
Summary of the principal amounts, carrying values and the estimated fair values of the Company's financial instruments | The following table summarizes the principal amounts, carrying values and the estimated fair values of our financial instruments (in thousands):
|  |  | December 31, 2019 |  |  | December 31, 2018
|  | Principal / |  |  |  |  |  |  |  | Principal / |  |  |  |  |  |
|  | Notional |  | Carrying |  | Estimated |  | Notional |  | Carrying |  | Estimated
|  | Amount |  | Value |  | Fair Value |  | Amount |  | Value |  | Fair Value
Financial assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Loans and investments, net |  | $ | 4,279,611 |  | $ | 4,189,960 |  | $ | 4,228,071 |  | $ | 3,283,342 |  | $ | 3,200,145 |  | $ | 3,249,499
Loans held-for-sale, net |  |  | 847,126 |  |  | 861,360 |  |  | 876,975 |  |  | 472,964 |  |  | 481,664 |  |  | 489,546
Capitalized mortgage servicing rights, net |  |  | n/a |  |  | 286,420 |  |  | 328,995 |  |  | n/a |  |  | 273,770 |  |  | 322,463
Securities held-to-maturity, net |  |  | 111,028 |  |  | 88,699 |  |  | 91,738 |  |  | 103,515 |  |  | 76,363 |  |  | 79,097
Derivative financial instruments |  |  | 173,532 |  |  | 1,435 |  |  | 1,435 |  |  | 400,661 |  |  | 6,113 |  |  | 6,113
Financial liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Credit and repurchase facilities |  | $ | 1,681,146 |  | $ | 1,678,288 |  | $ | 1,677,658 |  | $ | 1,138,135 |  | $ | 1,135,627 |  | $ | 1,135,774
Collateralized loan obligations |  |  | 2,147,467 |  |  | 2,130,121 |  |  | 2,147,944 |  |  | 1,609,524 |  |  | 1,593,548 |  |  | 1,588,989
Debt fund |  |  | 70,000 |  |  | 68,629 |  |  | 70,138 |  |  | 70,000 |  |  | 68,183 |  |  | 70,154
Senior unsecured notes |  |  | 325,000 |  |  | 319,799 |  |  | 331,225 |  |  | 125,000 |  |  | 122,484 |  |  | 123,750
Convertible senior unsecured notes, net |  |  | 300,914 |  |  | 284,152 |  |  | 310,778 |  |  | 270,057 |  |  | 254,768 |  |  | 267,324
Junior subordinated notes |  |  | 154,336 |  |  | 140,949 |  |  | 97,668 |  |  | 154,336 |  |  | 140,259 |  |  | 95,873
Derivative financial instruments |  |  | 347,701 |  |  | 3,097 |  |  | 3,097 |  |  | 108,625 |  |  | 732 |  |  | 732
Schedule of certain financial assets and financial liabilities measured at fair value on a recurring basis | The fair values of these financial assets and liabilities were determined using the following input levels as of December 31, 2019 (in thousands):
|  |  |  |  |  |  |  | Fair Value Measurements
|  | Carrying |  |  |  | Using Fair Value Hierarchy
|  | Value |  | Fair Value |  | Level 1 |  | Level 2 |  | Level 3
Financial assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Derivative financial instruments |  | $ | 1,435 |  | $ | 1,435 |  | $ | — |  | $ | 369 |  | $ | 1,066
Financial liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Derivative financial instruments |  | $ | 3,097 |  | $ | 3,097 |  | $ | — |  | $ | 3,097 |  | $ | —
Schedule of certain financial assets and financial liabilities measured at fair value on a nonrecurring basis | 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 as of December 31, 2019 (in thousands):
|  |  |  |  |  |  | Fair Value Measurements
|  | Net Carrying |  |  |  | Using Fair Value Hierarchy
|  | Value |  | Fair Value |  | Level 1 |  | Level 2 |  | Level 3
Financial assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Impaired loans, net (1) |  | $ | 59,657 |  | $ | 59,657 |  | $ | — |  | $ | — |  | $ | 59,657
Non-financial assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Long-lived assets (2) |  | $ | 13,220 |  | $ | 13,220 |  | $ | — |  | $ | — |  | $ | 13,220
| (1) |  | We had an allowance for loan losses of $71.1 million relating to five loans with an aggregate carrying value, before loan loss reserves, of $130.7 million at December 31, 2019.
| (2) |  | We recorded a $1.0 million impairment loss during 2019 on the hotel property we own. See Note 9 for details.
Schedule of quantitative information about Level 3 fair value measurements | Quantitative information about Level 3 fair value measurements at December 31, 2019 is as follows ($ in thousands):
|  |  |  |  | Valuation |  | Significant |
|  | Fair Value |  | Techniques |  | Unobservable Inputs |
Financial assets: |  |  |  |  |  |  |  |  |  |
Impaired loans: |  |  |  |  |  |  |  |  |  |
Land |  | $ | 58,931 |  | Discounted cash flows |  | Discount rate |  | 23.00 | %
|  |  |  |  |  |  | Revenue growth rate |  | 3.00 | %
Office |  |  | 726 |  | Discounted cash flows |  | Discount rate |  | 11.00 | %
|  |  |  |  |  |  | Capitalization rate |  | 9.00 | %
|  |  |  |  |  |  | Revenue growth rate |  | 2.50 | %
Derivative financial instruments: |  |  |  |  |  |  |  |  |  |
Rate lock commitments |  |  | 1,066 |  | Discounted cash flows |  | W/A discount rate |  | 13.59 | %
Long-lived assets: |  |  |  |  |  |  |  |  |  |
Hotel proerty |  |  | 10,208 |  | Broker quotes |  | N/A |  | N/A |
Schedule of financial assets measured at fair value on a recurring basis using Level 3 inputs | A roll-forward of Level 3 derivative instruments is as follows (in thousands):
|  | Fair Value
|  | Measurements Using
|  | Significant
|  | Unobservable Inputs
|  | for the Year Ended
|  | December 31,
|  | 2019 |  | 2018 |  | 2017
Derivative assets |  |  |  |  |  |  |  |  |
Balance at beginning of period |  | $ | 324 |  | $ | 276 |  | $ | 2,816
Settlements |  |  | (83,992) |  |  | (98,791) |  |  | (79,360)
Realized gains recorded in earnings |  |  | 83,668 |  |  | 98,515 |  |  | 76,544
Unrealized gains recorded in earnings |  |  | 1,066 |  |  | 324 |  |  | 276
Balance at end of period |  | $ | 1,066 |  | $ | 324 |  | $ | 276
Schedule of components of fair value and other relevant information | The components of fair value and other relevant information associated with our rate lock commitments, forward sales commitments and the estimated fair value of cash flows from servicing on loans held-for-sale are as follows (in thousands):
|  | Notional/ |  | Fair Value of |  | Interest Rate |  | Total Fair
|  | Principal Amount |  | Servicing Rights |  | Movement Effect |  | Value Adjustment
December 31, 2019 |  |  |  |  |  |  |  |  |  |  |  |
Rate lock commitments |  | $ | 37,657 |  | $ | 1,066 |  | $ | (202) |  | $ | 864
Forward sale commitments |  |  | 483,576 |  |  | — |  |  | 202 |  |  | 202
Loans held-for-sale, net (1) |  |  | 847,126 |  |  | 16,519 |  |  | — |  |  | 16,519
Total |  |  |  |  | $ | 17,585 |  | $ | — |  | $ | 17,585
| (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.
Schedule of fair value of assets and liabilities | The fair values of these assets and liabilities are determined using the following input levels as of December 31, 2019 (in thousands):
|  |  |  |  |  |  |  | Fair Value Measurements
|  | Carrying |  |  |  |  | Using Fair Value Hierarchy
|  | Value |  | Fair Value |  | Level 1 |  | Level 2 |  | Level 3
Financial assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Loans and investments, net |  | $ | 4,189,960 |  | $ | 4,228,071 |  | $ | — |  | $ | — |  | $ | 4,228,071
Loans held-for-sale, net |  |  | 861,360 |  |  | 876,975 |  |  | — |  |  | 860,456 |  |  | 16,519
Capitalized mortgage servicing rights, net |  |  | 286,420 |  |  | 328,995 |  |  | — |  |  | — |  |  | 328,995
Securities held-to-maturity, net |  |  | 88,699 |  |  | 91,738 |  |  | — |  |  | — |  |  | 91,738
Financial liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Credit and repurchase facilities |  | $ | 1,678,288 |  | $ | 1,677,658 |  | $ | — |  | $ | 743,594 |  | $ | 934,064
Collateralized loan obligations |  |  | 2,130,121 |  |  | 2,147,944 |  |  | — |  |  | — |  |  | 2,147,944
Debt fund |  |  | 68,629 |  |  | 70,138 |  |  | — |  |  | — |  |  | 70,138
Senior unsecured notes |  |  | 319,799 |  |  | 331,225 |  |  | 331,225 |  |  | — |  |  | —
Convertible senior unsecured notes, net |  |  | 284,152 |  |  | 310,778 |  |  | — |  |  | 310,778 |  |  | —
Junior subordinated notes |  |  | 140,949 |  |  | 97,668 |  |  | — |  |  | — |  |  | 97,668

X
- Definition Tabular disclosure of components of fair value and other relevant information. + References No definition available. + Details
Name: | abr_ScheduleOfComponentsOfFairAndOtherRelevantInformationTableTextBlock
Namespace Prefix: | abr_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of financial instruments measured at fair value, including those classified in shareholders' equity measured on a recurring or nonrecurring basis. Disclosures include, but are not limited to, fair value measurements recorded and the reasons for the measurements, level within the fair value hierarchy in which the fair value measurements are categorized and transfers between levels 1 and 2. Nonrecurring fair value measurements are those that are required or permitted in the statement of financial position in particular circumstances. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=117815213&loc=d3e19207-110258 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=117815213&loc=d3e19279-110258 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2C -URI http://asc.fasb.org/extlink&oid=117815213&loc=SL7498348-110258 Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=117815213&loc=d3e19207-110258 Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (bb) -URI http://asc.fasb.org/extlink&oid=117815213&loc=d3e19207-110258 + Details
Name: | us-gaap_FairValueAssetsAndLiabilitiesMeasuredOnRecurringAndNonrecurringBasisTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of input and valuation technique used to measure fair value and change in valuation approach and technique for each separate class of asset and liability measured on recurring and nonrecurring basis. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (bbb) -URI http://asc.fasb.org/extlink&oid=117815213&loc=d3e19207-110258 + Details
Name: | us-gaap_FairValueAssetsAndLiabilitiesMeasuredOnRecurringAndNonrecurringBasisValuationTechniquesTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of assets and liabilities by class, including financial instruments measured at fair value that are classified in shareholders' equity, if any, that are measured at fair value on a nonrecurring basis in periods after initial recognition (for example, impaired assets). Disclosures may include, but are not limited to: (a) the fair value measurements recorded and the reasons for the measurements and (b) the level within the fair value hierarchy in which the fair value measurements are categorized in their entirety (levels 1, 2, 3). + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=117815213&loc=d3e19207-110258 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (bbb) -URI http://asc.fasb.org/extlink&oid=117815213&loc=d3e19207-110258 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=117815213&loc=d3e19207-110258 + Details
Name: | us-gaap_FairValueAssetsMeasuredOnNonrecurringBasisTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=117815213&loc=d3e19279-110258 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (c) -URI http://asc.fasb.org/extlink&oid=117815213&loc=d3e19207-110258 + Details
Name: | us-gaap_FairValueAssetsMeasuredOnRecurringBasisUnobservableInputReconciliationTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the fair value of financial instruments, including financial assets and financial liabilities, and the measurements of those instruments, assets, and liabilities. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 11 -URI http://asc.fasb.org/extlink&oid=118260190&loc=d3e13467-108611 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=117815213&loc=d3e19207-110258 + Details
Name: | us-gaap_FairValueByBalanceSheetGroupingTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_FairValueDisclosuresAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of assets and liabilities, including [financial] instruments measured at fair value that are classified in stockholders' equity, if any, that are measured at fair value on a recurring basis. The disclosures contemplated herein include the fair value measurements at the reporting date by the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3). + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=117815213&loc=d3e19207-110258 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=117815213&loc=d3e19207-110258 + Details
Name: | us-gaap_ScheduleOfFairValueAssetsAndLiabilitiesMeasuredOnRecurringBasisTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration