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, 2005 December 31, 2004
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ASSETS
Cash and cash equivalents $40,556 $23,755
Restricted cash equivalents 1,246 19,680
Residential mortgage-backed securities ("RMBS") 259,026 372,071
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Cash and RMBS 300,828 415,506
Commercial mortgage loan pools 1,292,407 1,312,045
Commercial real estate securities 2,005,383 1,628,519
Commercial real estate loans 425,453 325,350
Commercial real estate equity 51,003 -
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Total commercial real estate 3,774,246 3,265,914
Other assets 91,107 47,714
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Total Assets $4,166,181 $3,729,134
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LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Short term borrowings:
Secured by pledge of RMBS $249,122 $356,451
Secured by pledge of commercial real estate securities 617,194 305,526
Secured by pledge of commercial mortgage loan pools 5,977 773
Secured by pledge of commercial real estate loans 230,945 141,601
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Total short term borrowings 1,103,238 804,351
Long term borrowings:
Collateralized debt obligations 1,066,930 1,067,967
Secured by pledge of commercial mortgage loan pools 1,272,931 1,294,058
Junior subordinated notes to subsidiary trust issuing
preferred securities 77,380 -
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Total long term borrowings 2,417,241 2,362,025
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Total borrowings 3,520,479 3,166,376
Distributions payable 16,673 15,819
Other liabilities 31,011 33,201
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Total Liabilities 3,568,163 3,215,396
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Stockholders' Equity:
Common Stock, par value $0.001 per share; 400,000 shares
authorized; 56,339 shares issued and outstanding in 2005;
and 53,289 shares issued and outstanding in 2004 56 53
9.375% Series C Preferred Stock, liquidation preference
$57,500 in 2005 and 2004 55,435 55,435
Additional paid-in capital 612,368 578,919
Distributions in excess of earnings (130,038) (134,075)
Accumulated other comprehensive income 60,197 13,406
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Total Stockholders' Equity 598,018 513,738
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Total Liabilities and Stockholders' Equity $4,166,181 $3,729,134
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Anthracite Capital, Inc. and Subsidiaries
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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2005 2004 2005 2004
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Operating Portfolio
Income:
Commercial real estate securities $39,392 $31,785 $142,634 $123,860
Commercial mortgage loan pools 13,408 13,606 54,025 39,672
Commercial real estate loans 10,827 7,948 35,258 20,790
Commercial real estate equity 299 - 299 -
RMBS 2,012 3,171 9,851 18,901
Cash and cash equivalents 606 282 2,077 638
Other - - - 742
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Total Income 66,544 56,792 244,144 204,603
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Expenses:
Interest expense:
Collateralized debt obligations 19,271 15,978 69,794 58,986
Commercial real estate securities 5,773 2,312 17,107 7,398
Commercial mortgage loan pools 12,703 12,850 50,988 37,527
Commercial real estate loans 2,135 1,185 6,018 2,148
RMBS 2,702 1,858 9,821 7,016
Junior subordinated notes 1,477 - 1,543 -
Hedging expense 1,596 2,829 7,110 14,434
General and administrative expense 1,226 1,306 3,917 3,427
Management fee 2,936 2,451 10,975 8,957
Incentive fee 159 - 159 -
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Total Expenses 49,978 40,769 177,432 139,893
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Income from the operating portfolio 16,566 16,023 66,712 64,710
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Other income (loss):
Net realized and unrealized loss (286) (357) (2,097) (10,892)
Net realized gain attributable to CDO HY1 - 16,594 - 16,594
Net realized gain attributable to CDO HY2 16,523 - 16,523 -
Incentive fee attributable to CDO HY2 gain (4,131) - (4,131) -
Foreign currency gain (loss) 123 (61) (134) (187)
Hedge ineffectiveness 478 115 (1,188) (1,015)
Loss on impairment of assets (1,857) (26,018) (5,088) (26,018)
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Total Other Income (Loss) 10,850 (9,727) 3,885 (21,518)
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Net Income 27,416 6,296 70,597 43,192
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Dividends on preferred stock 1,348 1,348 5,392 6,916
Cost to retire preferred stock in excess of carrying
value - - - 10,508
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Net Income available to Common Stockholders $26,068 $4,948 $65,205 $25,768
=================================== ================================
Net Income available to Common Stockholders per share,
basic $0.47 $0.09 $1.20 $0.50
Net Income available to Common Stockholders per share,
diluted $0.47 $0.09 $1.20 $0.50
Weighted average number of shares outstanding:
Basic 55,838 53,281 54,144 51,767
Diluted 55,844 53,290 54,153 51,776