Exhibit 99.1
Anthracite Capital, Inc. and Subsidiaries
Consolidated Statements of Financial Condition (Unaudited)
(in thousands, except per share data)
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June 30, 2004 December 31, 2003
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ASSETS
Cash and cash equivalents $61,839 $ 20,805
Restricted cash equivalents 18,370 12,845
Residential mortgage backed securities 474,803 726,717
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Cash and RMBS 555,012 760,367
Commercial mortgage loan pools 1,320,657 -
Loan loss reserve (1,124) -
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Commercial mortgage loan pools 1,319,533 -
Commercial real estate securities 1,579,434 1,393,010
Commercial real estate loans 152,714 97,984
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Total Commercial real estate 3,051,681 1,490,994
Receivable for investments sold 35,218 99,056
Other assets 72,861 48,429
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Total Assets $3,714,772 $2,398,846
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LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Short term borrowings:
Secured by pledge of residential mortgage backed securities $444,997 $ 670,874
Secured by pledge of commercial real estate securities 303,945 444,987
Secured by pledge of commercial mortgage loan pools 7,424 -
Secured by pledge of commercial real estate loans 32,080 22,710
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Total short term borrowings 788,446 1,138,571
Long term Borrowings:
Collateralized debt obligations 1,057,217 684,970
Secured by pledge of commercial mortgage loan pools 1,298,636 -
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Total long term borrowings 2,355,853 684,970
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Total borrowings $3,144,299 $1,823,541
Securities sold, not yet settled - 99,551
Payable for investments purchased 97,017 -
Distributions payable 15,118 14,749
Other liabilities 39,156 43,575
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Total Liabilities $3,295,590 $1,981,416
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Stockholders' Equity:
Common Stock, par value $0.001 per share; 400,000 shares
authorized; 52,885 shares issued and outstanding in 2004;
and 49,464 shares issued and outstanding in 2003 $ 53 $ 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 574,681 536,333
Distributions in excess of earnings (124,351) (101,635)
Accumulated other comprehensive loss (86,636) (106,183)
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Total Stockholders' Equity 419,182 417,430
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Total Liabilities and Stockholders' Equity $3,714,772 $2,398,846
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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 For the Six Months
Ended June 30, Ended June 30,
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2004 2003 2004 2003
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Interest Income:
Commercial real estate securities $ 30,166 $ 23,032 $ 59,351 $45,605
Commercial mortgage loan pools 12,351 - 12,351 -
Commercial real estate loans 4,140 3,043 7,214 5,208
Residential mortgage backed securities 5,386 16,126 12,103 34,035
Cash and cash equivalents 103 209 191 385
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Total interest income 52,146 42,410 91,210 85,233
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Expenses:
Interest expense:
Collateralized debt obligations 15,678 11,077 26,845 21,990
Commercial real estate securities 1,114 699 3,141 1,177
Commercial mortgage loan pools 11,972 - 11,972 -
Commercial real estate loans 145 115 293 227
Residential mortgage backed securities 1,560 5,103 3,487 10,052
Hedging Expense 3,148 4,764 7,779 7,755
General and administrative 633 591 1,235 1,173
Management fee 2,163 2,649 4,293 5,226
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Total expenses 36,413 24,998 59,045 47,600
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Other loss:
Realized loss (3,870) (1,928) (8,593) (10,459)
Unrealized gain (loss) (4,212) 506 (2,659) (1,225)
Foreign currency loss (12) - (12) -
Hedge ineffectiveness 467 21 (506) (241)
Loss on impairment of assets - (27,014) - (27,014)
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Total other loss (7,627) (28,415) (11,770) (38,939)
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Net Income (loss) 8,106 (11,003) 20,395 (1,306)
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Dividends on preferred stock 1,775 1,611 4,221 2,807
Cost to retire preferred stock in excess
of carrying value 10,508 - 10,508 -
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Net Income available (loss) to Common Stockholders $ (4,177) $(12,614) $ 5,666 $(4,113)
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Net Income (Loss) available to Common
Stockholders per share, basic $ (0.08) $ (0.26) $ 0.11 $ (0.09)
Net Income (Loss) available to Common
Stockholders per share, diluted $ (0.08) $ (0.26) $ 0.11 $ (0.09)
Weighted average number of shares outstanding:
Basic 50,706 47,862 50,276 47,728
Diluted 50,706 47,883 50,285 47,746