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, 2004 December 31, 2003
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ASSETS
Cash and cash equivalents $23,755 $20,805
Restricted cash equivalents 19,680 12,845
Residential mortgage-backed securities 372,071 726,717
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Cash and RMBS 415,506 760,367
Commercial mortgage loan pools 1,312,045 -
Commercial real estate securities 1,623,939 1,393,010
Commercial real estate loans 329,930 97,984
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Total commercial real estate 3,265,914 1,490,994
Receivable for investments sold - 99,056
Other assets 47,714 48,429
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Total Assets $3,729,134 $2,398,846
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LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Short term borrowings:
Secured by pledge of residential mortgage-backed securities $356,451 $670,874
Secured by pledge of commercial real estate securities 305,526 444,987
Secured by pledge of commercial mortgage loan pools 773 -
Secured by pledge of commercial real estate loans 141,601 22,710
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Total short term borrowings 804,351 1,138,571
Long term borrowings:
Collateralized debt obligations 1,067,967 684,970
Secured by pledge of commercial mortgage loan pools 1,294,058 -
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Total long term borrowings 2,362,025 684,970
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Total borrowings 3,166,376 1,823,541
Securities sold, not yet settled - 99,551
Distributions payable 15,819 14,749
Other liabilities 33,201 43,575
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Total Liabilities 3,215,396 1,981,416
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Stockholders' Equity:
Common Stock, par value $0.001 per share; 400,000 shares authorized;
53,289 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 578,919 536,333
Distributions in excess of earnings (134,075) (101,635)
Accumulated other comprehensive income (loss) 13,406 (106,183)
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Total Stockholders' Equity 513,738 417,430
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Total Liabilities and Stockholders' Equity $3,729,134 $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 Year Ended
Ended December 31, December 31,
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2004 2003 2004 2003
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Operating Portfolio
Income:
Commercial real estate securities $31,785 $26,384 $123,860 $98,114
Commercial mortgage loan pools 13,606 - 39,672 -
Commercial real estate loans 7,948 2,828 20,790 10,196
Residential mortgage-backed securities 3,171 8,878 18,901 54,504
Cash and cash equivalents 282 126 638 964
Other - - 742 -
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Total income 56,792 38,216 204,603 163,778
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Expenses:
Interest expense:
Collateralized debt obligations 15,978 11,138 58,986 44,226
Commercial real estate securities 2,312 1,722 7,398 4,341
Commercial mortgage loan pools 12,850 - 37,527 -
Commercial real estate loans 1,185 163 2,148 526
Residential mortgage-backed securities 1,858 2,512 7,016 16,072
Hedging expense 2,829 5,539 14,434 18,790
General and administrative 1,306 572 3,427 2,296
Management fee 2,451 2,070 8,957 9,411
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Total expenses 40,769 23,716 139,893 95,662
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Other gain (loss):
Realized gain (loss) 16,327 (8,354) 7,527 (41,633)
Unrealized gain (loss) (90) 7,858 (1,825) (3,405)
Foreign currency loss (61) - (187) -
Hedge ineffectiveness 115 881 (1,015) 706
Loss on impairment of assets (26,018) - (26,018) (32,426)
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Total other gain (loss) (9,727) 385 (21,518) (76,758)
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Net income (loss) 6,296 14,885 43,192 (8,642)
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Dividends on preferred stock 1,348 2,446 6,916 7,744
Cost to retire preferred stock in excess of
carrying value - - 10,508 -
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Net income (loss) available to Common Stockholders $4,948 $12,439 $25,768 $(16,386)
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Net Income (Loss) available to Common
Stockholders per share, basic $0.09 $0.25 $0.50 $(0.34)
Net Income (Loss) available to
Common Stockholders per share, diluted $0.09 $0.25 $0.50 $(0.34)
Weighted average number of shares outstanding:
Basic 53,281 49,107 51,767 48,246
Diluted 53,290 49,118 51,776 48,246