Exhibit 99.4 Contact: Brian Beades 212-754-5596 ahr-info@blackrock.com Anthracite Capital Updates First Quarter Earnings New York - May 7, 2004 - Anthracite Capital, Inc. (NYSE: AHR) (the "Company" or "Anthracite") today revised its previously announced earnings for the three-month period ended March 31, 2004, as a result of an error made by the Company's transfer agent. Although there is an impact to net income available (loss) to common stockholders as a result of the transfer agent's error, the Company's Operating Earnings of $0.28 per share were not affected. Subsequent to the earnings release, the Company received notification from the transfer agent that they had incorrectly converted 111,000 shares of the Company's Series B Preferred Stock into 162,388 shares of Anthracite common stock instead of redeeming such shares as intended by the holder. Adjusting for the redemption, the amount of the one-time charge for the Company's Series B Preferred Stock redemption increased by $663,000 to $10,508,000 or $0.21 per share from $9,845,000 or $0.20 per share. As a result, the Company's net loss to common stockholders for the three months ended March 31, 2004 was $0.01 per share as compared to $0.00 as previously reported. All adjustments made to the previously released Consolidated Statements of Financial Condition and Consolidated Statements of Operations subsequent to the Company's earnings release are reflected in the statements attached hereto. Forward Looking Statements This press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act with respect to future financial or business performance, strategies or expectations. Forward-looking statements are typically identified by words or phrases such as "trend," "opportunity," "pipeline," "believe," "comfortable," "expect," "anticipate," "current," "intention," "estimate," "position," "assume," "potential," "outlook," "continue," "remain," "maintain," "sustain," "seek," "achieve," and similar expressions, or future or conditional verbs such as "will," "would," "should," "could," "may" or similar expressions. Anthracite cautions that forward-looking statements are subject to numerous assumptions, risks and uncertainties, which change over time. Forward-looking statements speak only as of the date they are made, and Anthracite assumes no duty to and does not undertake to update forward-looking statements. Actual results could differ materially from those anticipated in forward-looking statements and future results could differ materially from historical performance. In addition to factors previously disclosed in Anthracite's Securities and Exchange Commission (the "SEC") reports and those identified elsewhere in this press release, the following factors, among others, could cause actual results to differ materially from forward-looking statements or historical performance: (1) the introduction, withdrawal, success and timing of business initiatives and strategies; (2) changes in political, economic or industry conditions, the interest rate environment or financial and capital markets, which could result in changes in the value of Anthracite's assets; (3) the relative and absolute investment performance and operations of Anthracite's manager; (4) the impact of increased competition; (5) the impact of capital improvement projects; (6) the impact of future acquisitions or divestitures; (7) the unfavorable resolution of legal proceedings; (8) the extent and timing of any share repurchases; (9) the impact, extent and timing of technological changes and the adequacy of intellectual property protection; (10) the impact of legislative and regulatory actions and reforms and regulatory, supervisory or enforcement actions of government agencies relating to Anthracite, BlackRock or PNC; (11) terrorist activities and international hostilities, which may adversely affect the general economy, real estate, financial and capital markets, specific industries, and Anthracite and BlackRock; (12) the ability of Anthracite's manager to attract and retain highly talented professionals; (13) fluctuations in foreign currency exchange rates; and (14) the impact of changes to tax legislation and, generally, the tax position of the company. Anthracite's Annual Report on Form 10-K for the year ended December 31, 2003 and Anthracite's subsequent reports filed with the SEC, accessible on the SEC's website at www.sec.gov, identify additional factors that can affect forward-looking statements. To learn more about Anthracite, visit our website at www.anthracitecapital.com. Anthracite Capital, Inc. and Subsidiaries Consolidated Statements of Financial Condition (Unaudited) (in thousands, except per share data) - ------------------------------------------------------------------------------------------------------------------------ March 31, 2004 December 31, 2003 ASSETS Cash and cash equivalents $ 17,264 $ 20,805 Restricted cash equivalents 15,389 12,845 Residential mortgage backed securities 708,105 753,219 ------------- --------------- Cash and RMBS 740,758 786,869 Commercial real estate securities 1,472,636 1,366,508 Commercial mortgage loan pools 1,222,103 - Commercial real estate loans 122,263 97,984 ------------- --------------- Total Commercial real estate 2,817,002 1,464,492 Receivable for investments sold 100,662 99,056 Other assets 48,666 48,429 ------------- --------------- Total Assets $3,707,088 $2,398,846 ============= =============== LIABILITIES AND STOCKHOLDERS' EQUITY Liabilities: Borrowings: Secured by pledge of residential mortgage backed securities $ 648,525 $ 670,874 Secured by pledge of commercial real estate securities 134,467 444,987 Secured by pledge of commercial real estate loans 7,430 22,710 ------------- --------------- Total short term borrowings 790,422 1,138,571 Long term Borrowings: Collateralized debt obligations 1,057,522 684,970 ------------- --------------- Total borrowings $1,847,944 $1,823,541 Due to REMIC Trust 1,199,034 - 10% Series B Preferred Stock - called for redemption 43,930 - Securities sold, not yet settled 101,234 99,551 Payable for investments purchased 49,301 - Distributions payable 15,059 14,749 Other liabilities 48,451 43,575 ------------- --------------- Total Liabilities $3,304,953 $1,981,416 ------------- --------------- Stockholders' Equity: Common Stock, par value $0.001 per share; 400,000 shares authorized; 50,572 shares issued and outstanding in 2004; and 49,464 shares issued and outstanding in 2003 $ 51 $ 49 10% Series B Preferred Stock, liquidation preference $43,942 in 2003 - 33,431 9.375% Series C Preferred Stock, liquidation preference $57,500 in 2004 and 2003 55,435 55,435 Additional paid-in capital 549,199 536,333 Distributions in excess of earnings (116,460) (101,635) Accumulated other comprehensive loss (86,090) (106,183) ------------- --------------- Total Stockholders' Equity 402,135 417,430 ------------- --------------- Total Liabilities and Stockholders' Equity $3,707,088 $2,398,846 ============= =============== Anthracite Capital, Inc. Consolidated Statements of Operations (Unaudited) (in thousands, except per share data) - ------------------------------------------------------------------------------------------------------------------ For the Three Months Ended March 31, ---------------------------------- 2004 2003 ---------------------------------- Operating Portfolio Interest Income: Commercial real estate securities $ 29,185 $ 19,953 Commercial real estate loans 3,074 2,409 Residential mortgage backed securities 6,717 20,285 Cash and cash equivalents 88 176 -------- -------- Total interest income $ 39,064 $ 42,823 -------- -------- Expenses: Interest expense: Collateralized debt obligations 11,167 10,913 Commercial real estate securities 2,027 478 Commercial real estate loans 148 112 Residential mortgage backed securities 1,927 4,949 Hedging Expense 4,631 2,991 General and administrative 602 582 Incentive fee - - Management fee 2,130 2,577 -------- -------- Total expenses $ 22,632 $ 22,602 -------- -------- Income from the Operating Portfolio $ 16,432 $ 20,221 -------- -------- Other loss: Realized loss (4,723) (8,531) Unrealized gain (loss) 1,553 (1,731) Hedge ineffectiveness (973) (262) -------- -------- Total other loss $ (4,143) $(10,524) -------- -------- Net Income 12,289 9,697 -------- -------- Dividends on preferred stock 2,446 1,195 Cost to retire preferred stock in excess of carrying value 10,508 - -------- -------- Net Income available (Loss) to Common Stockholders $ (665) $ 8,502 -------- -------- Operating Earnings available to Common Stockholders per share: Basic $ 0.28 $ 0.40 Diluted $ 0.28 $ 0.40 Net Income (Loss) available to Common Stockholders per share, basic $ (0.01) $ 0.18 Net Income (Loss) available to Common Stockholders per share, diluted $ (0.01) $ 0.18 Weighted average number of shares outstanding: Basic 49,837 47,592 Diluted 49,846 47,622 Operating Earnings: Income from the operating portfolio $ 16,432 $ 20,221 Dividends on preferred (2,446) (1,195) -------- -------- Net operating earnings $ 13,986 $ 19,026 ======== ========