MMA Capital (Trading Symbol(s) MMAC MMAC) 8-K MuniMae Announces Second Quarter Financial Results

Exhibit 99.3

Municipal Mortgage & Equity, LLC
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except share data)
(unaudited)

	June 30,			December 31,
	2005			2004
ASSETS:
Investment in tax-exempt bonds and interests in bond securitizations, net	$	1,354,108		$	1,275,748
Investment in taxable bonds		16,389			9,205
Loans receivable, net		663,663			593,968
Loans receivable held for sale		715			27,766
Investments in partnerships		672,609			827,273
Investment in derivative financial instruments		3,206			3,102
Cash and cash equivalents		136,698			92,881
Interest receivable		20,002			18,368
Restricted assets		81,064			72,805
Other assets		82,099			66,040
Land, building and equipment, net		162,518			182,773
Mortgage servicing rights, net		13,309			11,349
Goodwill		107,561			106,609
Other intangibles		25,764			22,443
Total assets	$	3,339,705		$	3,310,330
LIABILITIES AND SHAREHOLDERS’ EQUITY:
Notes payable	$	740,183		$	880,224
Mortgage notes payable		108,783			32,237
Short-term debt		490,215			413,157
Long-term debt		182,337			164,014
Subordinate debentures		172,750			84,000
Preferred shares subject to mandatory redemption		168,000			168,000
Tax credit equity guarantee liability		223,986			186,778
Investment in derivative financial instruments		3,204			4,923
Accounts payable and accrued expenses		21,173			35,003
Interest payable		16,172			19,266
Unearned revenue and other liabilities		90,256			74,176
Total liabilities		2,217,059			2,161,778
Commitments and contingencies
Minority interest in subsidiary companies		312,484			404,586
Preferred shareholders’ equity in a subsidiary company, liquidation preference of $73,000 at June 30, 2005 and December 31, 2004, respectively		71,031			71,031
Shareholders’ equity:
Common shares, par value $0 (42,046,099 shares authorized, including 38,074,265 shares issued and outstanding, and 70,855 deferred shares at June 30, 2005 and 39,471,099 shares authorized, 35,179,884 shares issued and outstanding, and 58,114 deferred shares at December 31, 2004		749,424			681,227
Less common shares held in treasury at cost (181,015 and 124,715 at June 30, 2005 and December 31, 2004, respectively)		(3,987	)		(2,615	)
Less unearned compensation (deferred shares)		(7,539	)		(4,145	)
Accumulated other comprehensive income (loss)		1,233			(1,532	)
Total shareholders’ equity		739,131			672,935
Total liabilities and shareholders’ equity	$	3,339,705		$	3,310,330
BOOK VALUE PER COMMON SHARE	$	19.47		$	19.16

Municipal Mortgage & Equity, LLC
CALCULATION OF CASH AVAILABLE FOR DISTRIBUTION
(in thousands, except share data)
(unaudited)

	For the three months ended						For the six months ended
	June 30,						June 30,
	2005			2004			2005			2004
SOURCES OF CASH:
Interest on bonds, interests in bond securitizations and loans	$	32,776		$	32,342		$	65,345		$	61,201
Syndication fees		9,409			11,190			16,598			15,923
Asset management and advisory fees		7,309			5,398			15,203			11,564
Origination and brokerage fees		2,822			4,191			4,917			6,161
Guarantee fees		4,041			4,566			7,113			5,066
Loan servicing fees		2,307			1,940			4,373			3,813
Distributions from equity investments in partnerships		3,574			1,887			5,210			3,805
Other income		2,278			2,152			4,502			3,990
Interest on short-term investments		1,323			1,930			2,175			2,717
Net gain on sales		6,482			1,089			7,348			1,700
Total Sources of Cash		72,321			66,685			132,784			115,940
EXPENSES:
Interest expense		16,476			15,481			31,331			30,220
Interest expense on debentures and preferred shares		6,080			4,004			11,828			7,050
Salaries and benefits		19,011			19,679			36,076			32,738
Professional fees		3,214			2,481			4,765			3,975
General and administrative		5,208			3,529			9,215			7,468
Loss on loans and investments		—			—			—			(26	)
Income tax expense		380			187			593			190
Total Expenses		50,369			45,361			93,808			81,615
Cash available for distribution		21,952			21,324			38,976			34,325
LESS:
Cash allocable to minority interest		944			—			1,894			—
Cash available for distribution to common shares	$	21,008		$	21,324		$	37,082		$	34,325
CAD per common share	$	0.55		$	0.61		$	0.98		$	0.98
CALCULATION OF CASH DISTRIBUTION:
Cash available for distribution to common shares	$	21,008		$	21,324		$	37,082		$	34,325
Actual amount paid	$	18,318		$	16,138		$	36,418		$	32,078
Payout Ratio		87.2	%		75.7	%		98.3	%		93.5	%
Common shares outstanding		37,694,105			34,893,770
Cash Distribution per common share	$	0.4825		$	0.4625		$	0.9600		$	0.9200

Note 1:Certain prior year amounts have been reclassified to conform to the current year presentation.

The primary differences between Net Income as calculated under generally accepted accounting principles (“GAAP”) and Cash Available for Distribution (“CAD”) result from the timing of income and expense recognition and non-cash events. These differences between CAD and GAAP income include the treatment of certain fees, which for CAD purposes are recognized when received but for GAAP purposes are amortized into income over the relevant period. In addition, there are differences related to non-cash gains and losses associated with bond valuations and sales, non-cash gains and losses associated with changes in market value of derivative financial instruments, amortization of goodwill and intangibles, deferred compensation and capitalization of mortgage servicing rights, which are not included in the calculation of CAD. As a result of Financial Interpretation No.46 (Revised), “Consolidation of Variable Interest Entities”, effective in the second quarter of 2004 certain asset management and syndication fees are eliminated for GAAP as a result of consolidating certain tax credit equity funds.

The common shares outstanding reported for Cash Available for Distribution are the actual shares outstanding at the end of the quarter. For GAAP, the weighted average shares outstanding during the period are reported for the basic net income per share calculation. The weighted average shares outstanding for diluted net income per share include the potential dilutive effect from the exercise of options and vesting of deferred shares.

Municipal Mortgage & Equity, LLC
VARIANCE ANALYSIS FOR CAD

2nd Quarter 2005 Compared to 2nd Quarter 2004:

CAD for the second quarter of 2005 decreased $0.3 million over the same period last year due primarily to the following changes:

(1)	a $5.4 million increase in net gain on sales due primarily to an increase in the volume of tax exempt bond sales/repayments and a gain associated with the termination of certain interest rate swaps;
(2)	a $1.9 million increase in asset management and advisory fees primarily due to the new MRC business;
(3)	a $1.7 million increase in distributions from equity investments in partnerships due to an increase in distributions from the CAPREIT investments and increases from the new MRC business;
(4)	a $0.7 million decrease in salaries and benefits resulting from a 25% increase in headcount, offset in the quarter by a larger decrease in bonus costs due to timing differences and changes in bonus structure;
(5)	a $0.4 million increase in loan servicing fees driven by an increase in the size of the loan servicing portfolio; and
(6)	a $0.1 million increase in other income primarily the result of the new MRC business;

Offset in part by:

(7)	a $4.2 million decrease in net interest income (interest on bonds, interests in bond securitizations and loans, interest on short-term investments less interest expense, interest expense on debentures and preferred shares and cash allocable to minority interest) due primarily to an overall growth of the bond and loan portfolios, offset by decreases in interest income relative to defaulted and nonaccrual bonds and bonds that have been sold/repaid as well as increases in interest expense, interest expense on debentures and preferred shares and cash allocable to minority interest due to increases in senior costs on securitizations and borrowing rates and increases in preferred shares and trust preferred securities from offerings subsequent to the second quarter of 2004;
(8)	a $1.8 million decrease in syndication fees due to a decrease in overall volume of approximately 7%;
(9)	a $1.7 million increase in general and administrative expenses primarily due to cost increases in travel and information technology and an overall increase in volume of Company business;
(10)	a $1.4 million decrease in origination and brokerage fees resulting from a decrease in deal volume of our legacy businesses offset by increases from the new MRC business;
(11)	a $0.7 million increase in professional fees primarily driven by an increase in accounting and consulting fees surrounding internal control compliance;
(12)	a $0.5 million decrease in guarantee fees due to a decrease in the volume of guaranteed funds established during the quarter; and
(13)	a $0.2 million increase in income tax expense due to an increase in state tax liabilities associated with the acquisition of MRC.

Municipal Mortgage & Equity, LLC
VARIANCE ANALYSIS FOR CAD

June 30, 2005 Year to Date Compared to June 30, 2004 Year to Date:

CAD for the six months ending June 30, 2005, increased $2.8 million over the same period last year due primarily to the following changes:

(1)	a $5.7 million increase in net gain on sales due primarily to an increase in the volume of tax exempt bond sales/repayments and a gain associated with the termination of certain interest rate swaps;
(2)	a $3.6 million increase in asset management and advisory fees due to the receipt of previously reserved past due asset management fees that were made available from underlying property capital events and asset management fees associated with the new MRC business;
(3)	a $2.0 million increase in guarantee fees resulting from a guarantee associated with a bond investment and an increase in fees from the new 2005 guaranteed funds;
(4)	a $1.4 million increase in distributions from equity investments in partnerships due to an increase in distributions from the CAPREIT investments and increases from the new MRC business;
(5)	a $0.7 million increase in syndication fees due to an overall increase in business volume of 6%;
(6)	a $0.6 million increase in loan servicing fees driven by an increase in the size of the loan servicing portfolio; and
(7)	a $0.5 million increase in other income due to fees generated from the new MRC business and from property disposition consultation fees;

Offset in part by:

(8)	a $4.2 million decrease in net interest income (interest on bonds, interests in bond securitizations and loans, interest on short-term investments less interest expense, interest expense on debentures and preferred shares and cash allocable to minority interest) due primarily to an overall growth of the bond and loan portfolios, offset by decreases in interest income relative to defaulted and nonaccrual bonds and bonds that have been sold/repaid as well as increases in interest expense, interest expense on debentures and preferred shares and cash allocable to minority interest due to increases in senior costs on securitizations and borrowing rates and increases in preferred shares and trust preferred securities from offerings subsequent to the second quarter of 2004;
(9)	a $3.3 million increase in salaries and benefits resulting from increases in medical insurance expenses, salary and other compensation costs generated by an approximate 25% increase in headcount, offset by a decrease in bonus costs due to timing differences and changes in bonus structure;
(10)	a $1.8 million increase in general and administrative expenses primarily due to cost increases in travel and information technology and an overall increase in volume of Company business;
(11)	a $1.2 million decrease in origination and brokerage fees resulting from a decrease in deal volume of our legacy businesses offset by increases from the new MRC business;
(12)	a $0.8 million increase in professional fees primarily driven by an increase in accounting and consulting fees surrounding internal control compliance;
(13)	a $0.4 million increase in income tax expense due to an increase in state tax liabilities associated with the acquisition of MRC.

Municipal Mortgage & Equity, LLC
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except share and per share data)
(unaudited)

	For the three months ended						For the six months ended
	June 30,						June 30,
	2005			2004			2005			2004
INCOME:
Interest income
Interest on bonds and interests in bond securitizations	$	24,361		$	21,340		$	47,446		$	40,842
Interest on loans		11,665			11,388			23,611			22,109
Interest on short-term investments		994			1,859			1,481			2,666
Total interest income		37,020			34,587			72,538			65,617
Fee income
Syndication fees		4,424			4,190			9,032			7,941
Origination and brokerage fees		1,410			2,848			1,845			3,765
Guarantee fees		4,039			1,506			6,975			3,359
Asset management and advisory fees		5,344			1,967			11,030			8,133
Loan servicing fees		1,350			1,139			2,572			2,258
Other income		1,388			1,213			2,764			2,558
Total fee income		17,955			12,863			34,218			28,014
Net rental income		5,550			5,496			12,122			5,496
Total income		60,525			52,946			118,878			99,127
EXPENSES:
Interest expense		18,702			18,651			35,819			32,554
Interest expense on debentures and preferred shares		6,081			4,004			11,312			7,049
Salaries and benefits		19,839			20,460			37,688			36,044
General and administrative		7,546			6,654			16,716			10,352
Professional fees		3,466			2,731			5,344			4,225
Depreciation and amortization		3,937			3,936			7,731			5,875
Total expenses		59,571			56,436			114,610			96,099
Net gain on sale of loans		1,251			1,730			965			2,410
Net gain on sale of tax-exempt investments		5,159			1,013			6,073			1,205
Net gain on sale of investments in tax credit equity partnerships		5,723			379			6,564			2,814
Net gain on deconsolidation of tax credit equity partnerships		2,501			—			2,501
Net gain on derivatives		94			6,687			2,982			3,262
Impairments and valuation allowances		(554	)		(430	)		(1,366	)		(730	)
Income before income tax (expense) benefit, net income allocable to minority interest, net losses from equity investments in partnerships, discontinued operations and cumulative effect of a change in accounting principle		15,128			5,889			21,987			11,989
Income tax (expense) benefit		(4,251	)		(173	)		(3,035	)		2,337
Net income allocable to minority interest		22,031			76,659			60,913			76,764
Net losses from equity investments in partnerships		(9,330	)		(71,224	)		(54,056	)		(81,735	)
Income from continuing operations		23,578			11,151			25,809			9,355
Discontinued operations		—			—			—			—
Income before cumulative effect of a change in accounting principle		23,578			11,151			25,809			9,355
Cumulative effect of a change in accounting principle		—			—			—			520
Net income	$	23,578		$	11,151		$	25,809		$	9,875
										(Continued)

Municipal Mortgage & Equity, LLC
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except share and per share data)
(unaudited)

	For the three months ended				For the six months ended
	June 30,				June 30,
	2005		2004		2005		2004
Basic earnings per common share:
Earnings before discontinued operations and cumulative effect of a change in accounting principle	$	0.62	$	0.32	$	0.69	$	0.27
Discontinued operations		—		—		—		—
Cumulative effect of a change in accounting principle		—		—		—		0.02
Basic earnings per common share	$	0.62	$	0.32	$	0.69	$	0.29
Weighted average common shares outstanding		37,919,842		34,800,580		37,404,006		34,047,243
Diluted earnings per common share:
Earnings before discontinued operations and cumulative effect of a change in accounting principle	$	0.61	$	0.32	$	0.68	$	0.27
Discontinued operations		—		—		—		—
Cumulative effect of a change in accounting principle		—		—		—		0.02
Diluted earnings per common share	$	0.61	$	0.32	$	0.68	$	0.29
Weighted average common shares outstanding		38,432,587		35,140,968		37,890,911		34,406,363