EXHIBIT 99.1
Anthracite Capital, Inc. and Subsidiaries
Consolidated Statements of Financial Condition (Unaudited)
(in thousands, except per share data)
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December 31, 2003 December 31, 2002
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ASSETS
Cash and cash equivalents $ 20,805 $ 24,698
Restricted cash equivalents 12,845 84,485
Residential mortgage backed securities 753,219 1,506,450
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Cash and RMBS 786,869 1,615,633
Commercial real estate securities 1,366,508 894,345
Commercial real estate loans 97,984 88,926
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Total Commercial real estate 1,464,492 983,271
Receivable for investments sold 99,056 -
Other assets 42,964 40,447
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Total Assets $2,393,381 $2,639,351
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LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Borrowings:
Secured by pledge of residential mortgage backed securities $670,874 $1,418,206
Secured by pledge of commercial real estate securities 444,987 42,861
Secured by pledge of commercial real estate loans 22,710 16,004
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Total short term borrowings 1,138,571 1,477,071
Long term Borrowings: Collateralized debt obligations 684,970 684,590
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Total borrowings $1,823,541 $2,161,661
Securities sold, not yet settled 99,551 -
Payable for investments purchased - 524
Distributions payable 14,749 16,589
Other liabilities 38,110 54,361
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Total Liabilities $1,975,951 $2,233,135
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Stockholders' Equity:
Common stock, par value $0.001 per share; 400,000 shares authorized;
49,464 shares issued and outstanding in 2003; and
47,398 shares issued and outstanding in 2002 49 47
10% Series B Preferred stock, liquidation preference $43,942
in 2003 and $47,817 in 2002 33,431 36,379
9.375% Series C Preferred stock, liquidation preference $57,500
in 2003 55,435 -
Additional paid - in capital 536,333 515,180
Distributions in excess of earnings (101,635) (24,161)
Accumulated other comprehensive loss (106,183) (121,229)
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Total Stockholders' Equity 417,430 406,216
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Total Liabilities and Stockholders' Equity $2,393,381 $2,639,351
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Anthracite Capital, Inc.
Consolidated Statements of Operations (Unaudited)
(in thousands, except per share data)
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For the Three Months Ended For the Year Ended
December 31, December 31,
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2003 2002 2003 2002
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Income:
Commercial real estate securities $26,384 $21,782 $98,114 $72,205
Commercial real estate loans 2,828 3,481 10,196 16,243
Residential mortgage backed securities 8,878 17,070 54,504 72,524
Cash and cash equivalents 126 276 964 1,473
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Total income 38,216 42,609 163,778 162,445
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Expenses:
Interest expense:
Collateralized debt obligations 11,138 8,158 44,226 17,626
Commercial real estate securities 1,722 1,255 4,341 5,686
Commercial real estate loans 163 364 526 1,832
Residential mortgage backed securities 2,512 6,094 16,072 25,009
Hedging Expense 5,539 3,308 18,790 14,758
General and administrative 572 549 2,296 2,323
Incentive fee - - - 9,332
Management fee 2,070 2,460 9,411 3,195
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Total expenses 23,716 22,188 95,662 79,761
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Other gain (loss):
Realized loss (8,354) 8,455 (41,633) (26,265)
Unrealized gain (loss) 7,858 (12,083) (3,405) 8,401
Foreign currency (loss) - (432) - (812)
Hedge Ineffectiveness 881 110 706 236
Incentive fee attributable to other gains - - - (343)
Loss on impairment of asset - (10,273) (32,426) (10,273)
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Total other gain (loss) 385 (14,223) (76,758) (29,056)
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Income before cumulative transition adjustment 14,885 6,198 (8,642) 53,628
Cumulative transition adjustment - SFAS 142 - - - 6,327
Net Income (Loss) 14,885 6,198 (8,642) 59,955
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Dividends on preferred stock 2,446 1,195 7,744 5,162
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Net Income (Loss) available to Common Stockholders 12,439 5,003 (16,386) 54,793
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Net Income (Loss) per share, basic
Income before cumulative transition adjustment $0.25 $0.11 $(0.34) $ 1.04
Cumulative transition adjustment - - - 0.14
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Net Income $0.25 $0.11 $(0.34) $ 1.18
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Net Income (Loss) per share, diluted
Income before cumulative transition adjustment $0.25 $0.11 $(0.34) $ 1.04
Cumulative transition adjustment - - - 0.14
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Net Income $0.25 $0.11 $(0.34) $ 1.18
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Weighted average number of shares outstanding:
Basic 49,107 47,256 48,246 46,411
Diluted 49,118 47,284 48,246 46,452