Exhibit 99.1
Anthracite Capital, Inc. and Subsidiaries
Consolidated Statements of Financial Condition (Unaudited)
(in thousands, except per share data)
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September 30, 2004 December 31, 2003
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ASSETS
Cash and cash equivalents $15,263 $ 20,805
Restricted cash equivalents 27,043 12,845
Residential mortgage-backed securities 396,140 726,717
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Cash and RMBS 438,446 760,367
Commercial mortgage loan pools 1,316,600 -
Commercial real estate securities 1,626,136 1,393,010
Commercial real estate loans 247,330 97,984
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Total commercial real estate 3,190,066 1,490,994
Receivable for investments sold 37,031 99,056
Other assets 53,931 48,429
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Total Assets $3,719,474 $2,398,846
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LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Short term borrowings:
Secured by pledge of residential mortgage-backed securities $371,036 $ 670,874
Secured by pledge of commercial real estate securities 341,765 444,987
Secured by pledge of commercial mortgage loan pools 8,552 -
Secured by pledge of commercial real estate loans 89,053 22,710
Secured by pledge of other assets 8,025
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Total short term borrowings 818,431 1,138,571
Long term borrowings:
Collateralized debt obligations 1,068,156 684,970
Secured by pledge of commercial mortgage loan pools 1,298,985 -
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Total long term borrowings 2,367,141 684,970
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Total borrowings 3,185,572 $1,823,541
Securities sold, not yet settled - 99,551
Payable for investments purchased 15,671 -
Distributions payable 15,806 14,749
Other liabilities 35,889 43,575
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Total Liabilities $3,252,938 $1,981,416
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Stockholders' Equity:
Common Stock, par value $0.001 per share; 400,000 shares authorized;
53,241 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 578,599 536,333
Distributions in excess of earnings (124,103) (101,635)
Accumulated other comprehensive loss (43,448) (106,183)
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Total Stockholders' Equity 466,536 417,430
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Total Liabilities and Stockholders' Equity $3,719,474 $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 Ended For the Nine Months Ended
September 30, September 30,
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2004 2003 2004 2003
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Operating Portfolio
Income:
Commercial real estate securities $32,408 $26,125 $92,072 $71,730
Commercial mortgage loan pools 13,715 - 26,066 -
Commercial real estate loans 5,123 2,160 12,337 7,368
Residential mortgage-backed securities 3,941 11,591 15,731 45,626
Cash and cash equivalents 165 453 356 838
Other 742 - 742 -
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Total income 56,094 40,329 147,304 125,562
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Expenses:
Interest expense:
Collateralized debt obligations 16,162 11,098 43,007 33,088
Commercial real estate securities 1,945 1,442 5,086 2,619
Commercial mortgage loan pools 12,706 - 24,678 -
Commercial real estate loans 424 136 718 363
Residential mortgage-backed securities 1,673 3,508 5,159 13,560
Hedging expense 3,825 5,496 11,604 13,251
General and administrative 886 551 2,120 1,724
Management fee 2,212 2,115 6,505 7,341
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Total expenses 39,833 24,346 98,877 71,946
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Other gain (loss):
Realized gain (loss) 54 (22,820) (8,540) (33,279)
Unrealized gain (loss) 923 (10,038) (1,736) (11,263)
Foreign currency loss (113) - (126) -
Hedge ineffectiveness (624) 66 (1,130) (175)
Loss on impairment of assets - (5,412) - (32,426)
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Total other gain (loss) 240 (38,204) (11,532) (77,143)
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Net income (loss) 16,501 (22,221) 36,895 (23,527)
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Dividends on preferred stock 1,348 2,491 5,568 5,298
Cost to retire preferred stock in excess of
carrying value - - 10,508 -
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Net income (loss) available to Common Stockholders $15,153 $(24,712) $20,819 (28,825)
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Net Income (Loss) available to Common Stockholders
per share, basic $0.28 $(0.51) $0.41 $(0.60)
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Net Income (Loss) available to Common Stockholders
per share, diluted $0.28 $(0.51) $0.41 $(0.60)
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Weighted average number of shares outstanding:
Basic 53,212 48,405 51,258 47,956
Diluted 53,221 48,421 51,267 47,972