EXHIBIT A

Municipal Mortgage & Equity, LLC

Adjusted Balance Sheets

(unaudited)

(in thousands, except per share data)

Adjusted
Balance Sheet
March 31, 2014

Adjusted

 Balance Sheet

December 31, 2013

ASSETS

1

Cash and cash equivalents

$

97,589

$

66,794

2

Adjusted restricted cash⁽¹⁾

35,007

35,006

3

Adjusted bonds available-for-sale⁽¹⁾

222,613

243,077

4

Adjusted investment in SA Fund and SA Partnership⁽¹⁾

4,859

4,821

5

Adjusted real estate held-for-use, net⁽¹⁾

24,376

24,532

6

Real estate held-for-sale, net

20,872

24,090

7

Investment in preferred stock

31,371

31,371

8

Adjusted other assets⁽¹⁾

19,624

18,111

9

Total assets

$

456,311

$

447,802

LIABILITIES AND EQUITY

10

Adjusted debt⁽¹⁾       

$

345,672

$

350,361

11

Accounts payable and accrued expenses

6,941

8,723

12

Adjusted deferred revenue⁽¹⁾

18,452

18,846

13

Adjusted other liabilities⁽¹⁾

6,203

6,174

14

Total liabilities

$

377,268

$

384,104

Equity:

15

Adjusted noncontrolling interests in CFVs and IHS⁽¹⁾  

$

(1,695)

$

(1,648)

Common shareholders' equity:

16

    Common shares, no par value

41,303

28,687

17

    Accumulated other comprehensive income

39,435

36,659

18

        Total common shareholders' equity

80,738

65,346

19

            Total equity

79,043

63,698

20

            Total liabilities and equity

$

456,311

$

447,802

Common shareholders' equity per share

21

Total common shareholders' equity

$

80,738

$

65,346

22

Common shares outstanding⁽²⁾

40,020

40,561

23

Common shareholders' equity per common share

$

2.02

$

1.61

Fully diluted common shareholders' equity per share

24

Diluted common shareholders' equity⁽³⁾

$

83,095

$

67,046

25

Diluted common shares outstanding⁽⁴⁾

41,551

42,062

26

Fully diluted common shareholders' equity per common share

$

2.00

$

1.59

⁽¹⁾  

Indicates a non-GAAP financial measure. See Exhibit C for a reconciliation between the Adjusted Balance Sheet at March 31, 2014 and December 31, 2013, as presented above, and the Consolidated Balance Sheets included with the Company's First Quarter 2014 Report.  Rows not indicated by the footnote reflect amounts as presented on the Company's Consolidated Balance Sheets included with the Company's First Quarter 2014 Report. 

⁽²⁾   

Includes shares issued and outstanding as well as non-employee directors' and employee vested deferred shares.

⁽³⁾    

Excludes the Company's liability for options held by employees ($2.3 million and $1.6 million at March 31, 2014 and December 31, 2013, respectively) and unvested time based deferred shares of $0.1 million at March 31, 2014 and December 31, 2013.

⁽⁴⁾     

Includes the common stock equivalents associated with unvested share awards as well as in-the-money option awards unless they are contingent upon a certain share price that has not yet been achieved. The common stock equivalents (and gross share awards outstanding) were 1.5 million (1.9 million) and 1.5 million (2.0 million) at March 31, 2014 and December 31, 2013, respectively.

EXHIBIT B

Municipal Mortgage & Equity, LLC
Adjusted Income Statement

For the three months ended 

March 31,

(in thousands, unaudited)

2014

2013

1

Adjusted bond interest income⁽¹⁾

$

5,688

$

17,095

2

Income on preferred stock investment

1,297

1,297

3

Adjusted asset management fees ⁽¹⁾

1,432

1,048

4

Adjusted other income⁽¹⁾

407

494

5

Total income

8,824

19,934

6

Adjusted interest expense⁽¹⁾

(4,854)

(12,719)

7

Adjusted operating expenses⁽¹⁾

(6,308)

(8,984)

8

Total expense

(11,162)

(21,703)

9

Adjusted net (losses) gains on assets and derivatives⁽¹⁾

(287)

1,480

10

Net gains on early extinguishment of liabilities

−

36,263

11

Adjusted net gains on sale of real estate⁽¹⁾

15,042

3,649

12

Net gains due to real estate consolidation and foreclosure

2,003

−

13

Adjusted other net losses ⁽¹⁾

(864)

(1,874)

14

Adjusted income tax benefit⁽¹⁾

50

1,527

15

Net income to common shareholders

$

13,606

$

39,276

16

Total other comprehensive income to common shareholders        

2,776

10,987

17

Comprehensive income to common shareholders

$

16,382

$

50,263

⁽¹⁾

Indicates a non-GAAP financial measure. See Exhibit D for a reconciliation between the adjusted measures presented above and the Consolidated Statements of Operations included with the Company's First Quarter 2014 Report.

EXHIBIT C

Municipal Mortgage & Equity, LLC
Reconciliation of Adjusted Balance Sheet

March 31, 2014

December 31, 2013

(in thousands, unaudited)

GAAP

Balance Sheet

Consolidation Adjustments

Adjusted

Balance Sheet

GAAP

Balance Sheet

Consolidation Adjustments

Adjusted

Balance Sheet

ASSETS

1

Cash and cash equivalents

$

97,589

$

−

$

97,589

$

66,794

$

−

$

66,794

2

Adjusted restricted cash

87,477

(52,470)

⁽¹⁾

35,007

87,903

(52,897)

⁽¹⁾

35,006

3

Adjusted bonds available-for-sale

184,883

37,730

⁽²⁾

222,613

195,332

47,745

⁽²⁾

243,077

4

Adjusted investments in Lower Tier Property Partnerships related to CFVs

274,229

(274,229)

⁽¹⁾

−

286,007

(286,007)

⁽¹⁾

−

5

Adjusted SA Fund investments

162,667

(162,667)

⁽¹⁾

−

158,325

(158,325)

⁽¹⁾

−

6

Adjusted investment in SA Fund and SA Partnership

−

4,859

⁽³⁾

4,859

−

4,821

⁽³⁾

4,821

7

Adjusted real estate held-for-use, net

109,340

(84,964)

⁽⁴⁾

24,376

120,576

(96,044)

⁽⁴⁾

24,532

8

Real estate held-for-sale, net

20,872

−

20,872

24,090

−

24,090

9

Investment in preferred stock

31,371

−

31,371

31,371

−

31,371

10

Adjusted other assets

45,655

(26,031)

⁽⁵⁾

19,624

44,960

(26,849)

⁽⁵⁾

18,111

11

Total assets

$

1,014,083

$

(557,772)

$

456,311

$

1,015,358

$

(567,556)

$

447,802

LIABILITIES AND EQUITY

12

Adjusted debt          

$

436,984

$

(91,312)

⁽¹⁾

$

345,672

$

441,963

$

(91,602)

⁽¹⁾

$

350,361

13

Accounts payable and accrued expenses

6,941

−

6,941

8,723

−

8,723

14

Adjusted unfunded equity commitments to Lower Tier Property Partnerships related to CFVs

13,461

(13,461)

⁽¹⁾

−

13,461

(13,461)

⁽¹⁾

−

15

Adjusted deferred revenue

−

18,452

⁽⁶⁾

18,452

−

18,846

⁽⁶⁾

18,846

16

Adjusted other liabilities

13,245

(7,042)

⁽⁷⁾

6,203

12,352

(6,178)

⁽⁷⁾

6,174

17

Total liabilities

$

470,631

$

(93,363)

$

377,268

$

476,499

$

(92,395)

$

384,104

Equity:

18

Adjusted noncontrolling interests in CFVs and IHS

$

462,714

$

(464,409)

⁽⁸⁾

$

(1,695)

$

473,513

$

(475,161)

⁽⁸⁾

$

(1,648)

Common shareholders' equity:

19

  Common shares, no par value

41,303

−

41,303

28,687

−

28,687

20

  Accumulated other

  comprehensive income

39,435

−

39,435

36,659

−

36,659

21

        Total common shareholders' equity

80,738

−

80,738

65,346

−

65,346

22

            Total equity

543,452

(464,409)

79,043

538,859

(475,161)

63,698

23

            Total liabilities and equity

$

1,014,083

$

(557,772)

$

456,311

$

1,015,358

$

(567,556)

$

447,802

⁽¹⁾    

Each of these adjustments are reflected on the Company's Consolidated Balance Sheets included with the First Quarter 2014 Report and denoted as balances related to CFVs.

⁽²⁾     

Represents the carrying basis of the bonds eliminated in consolidation. This amount excludes net unrealized gains occurring since consolidation that have not been reflected in the Company's common shareholders' equity given that the Company is required to consolidate and account for the real estate, which prohibits an increase in value from its original cost basis until the real estate is sold ($2.0 million and $2.5 million at March 31, 2014 and December 31, 2013, respectively).

⁽³⁾    

Represents the Company's equity investment in the SA Fund that it manages that was eliminated in consolidation ($3.7 million and $3.6 million at March 31, 2014 and December 31, 2013, respectively) and the Company's equity investment in the SA Partnership which was included within other assets on the Company's Consolidated Balance Sheets ($1.2 million at March 31, 2014 and December 31, 2013).

⁽⁴⁾ 

Represents the removal of real estate related to CFVs as denoted on the Company's Consolidated Balance Sheets ($91.2 million and $102.3 million at March 31, 2014 and December 31, 2013, respectively). This amount was offset by the addition of an investment in a real estate partnership which was included within other assets on the Company's Consolidated Balance Sheets ($6.2 million and $6.3 million at March 31, 2014 and December 31, 2013, respectively).

⁽⁵⁾   

Represents the removal of other assets related to CFVs as denoted on the Company's Consolidated Balance Sheets ($22.7 million and $23.7 million at March 31, 2014 and December 31, 2013, respectively) as well as the reclassifications of the Company's investment in SA Partnership from other assets to Investment in SA Fund and SA Partnership (as discussed in note 3 above) and an investment in a real estate partnership from other assets to real estate held-for-use, net (as discussed in note 4 above). These amounts were offset by other assets attributable to the Company that were eliminated in consolidation of $4.1 million and $4.4 million at March 31, 2014 and December 31, 2013, respectively.

⁽⁶⁾    

Represents deferred revenue attributable to the Company that was eliminated in consolidation of $16.4 million and $16.7 million at March 31, 2014 and December 31, 2013, respectively (primarily related to unamortized guarantee fees that the Company received in connection with its low income housing tax credit funds ("LIHTC Funds")). This amount also includes deferred revenue of $2.1 million at March 31, 2014 and December 31, 2013, which was included within other liabilities on the Company's Consolidated Balance Sheets.

⁽⁷⁾    

Represents the removal of other liabilities related to CFVs as denoted on the Company's Consolidated Balance Sheets ($5.0 million and $4.0 million at March 31, 2014 and December 31, 2013, respectively) as well as the reclassification of deferred revenue (as discussed in note 6 above).

⁽⁸⁾    

Represents the amount of noncontrolling interest attributable to the Company's consolidated LIHTC Funds, SA Fund and Lower Tier Property Partnerships. It does not include the noncontrolling interest attributable to IHS.

EXHIBIT D

Municipal Mortgage & Equity, LLC
Reconciliation of Adjusted Income Statement

(in thousands, unaudited)

For the three months ended
March 31,

Adjusted Bond Interest Income

2014

2013

1

Interest on bonds on the Consolidated Statements of Operations ("Income

  Statement")

$

5,160

$

15,795

2

Note 14 - Discontinued Operations - Interest income

185

^(b)

615

^(b)

3

Note 15 - CFVs - Interest income

343

^(a)

685

^(a)

4

Total

$

5,688

$

17,095

Adjusted Asset Management Fees

5

Note 15 - CFVs - Asset management fees

$

841

^(a)

$

858

^(a)

6

Reported through Other income on the Income Statement

591

190

7

Total            

$

1,432

$

1,048

Adjusted Other Income

8

Interest on loans and short-term investments on the Income Statement

$

145

$

143

9

Reported through Other income on the Income Statement

262

351

10

Total

$

407

$

494

Adjusted Interest Expense

11

Total interest expense on the Income Statement

$

1,203

$

6,289

12

Interest expense on the Income Statement (reported through operating and

  other expenses)

3,573

4,129

13

Income allocable to perpetual preferred shareholders on the Income Statement

−

2,005

14

Reported through Net (losses) gains on assets and derivatives on the Income

  Statement

78

296

15

Total

$

4,854

$

12,719

Adjusted Operating Expenses

16

Salaries and benefits on the Income Statement

$

3,329

$

3,888

17

General and administrative on the Income Statement

963

1,293

18

Professional fees on the Income Statement

1,382

2,344

19

Reported through Other expenses on the Income Statement

634

1,459

20

Total             

$

6,308

$

8,984

Adjusted Net (Losses) Gains on Assets and Derivatives

21

Net (losses) gains on assets and derivatives on the Income Statement

$

(365)

$

1,184

22

Interest on derivatives reported through Adjusted Interest Expense above

78

296

23

Total

$

(287)

$

1,480

(in thousands, unaudited)

For the three months ended
March 31,

Adjusted Net Gains on Sale of Real Estate

2014

2013

24

Note 14 - Discontinued Operations - Net gains on disposal of REO

$

15,037

^(b)

$

−

25

Note 14 - Discontinued Operations - Net gains on redemption of bonds

5

^(b)

3,649

^(b)

26

Total

$

15,042

$

3,649

Adjusted Other Net Losses

27

Reported through Other expenses on the Income Statement

$

(277)

$

(475)

28

Impairment on bonds on the Income Statement

−

(353)

29

Note 14 - Discontinued Operations - Other income

385

^(b)

459

^(b)

30

Note 14 - Discontinued Operations - Other expense

(479)

^(b)

(698)

^(b)

31

Note 15 - CFVs - Guarantee fees

331

^(a)

331

^(a)

32

Note 15 - CFVs -  Equity in losses from LTPPs

(949)

^(a)

(1,499)

^(a)

33

Note 15 - CFVs -  Equity in income from SA Fund

128

^(a)

282

^(a)

34

Note 15 - CFVs -  Other expense

(59)

^(a)

(71)

^(a)

35

Equity in income from IHS reported through an allocation of income

56

^(a)

150

^(a)

36

Total

$

(864)

$

(1,874)

Adjusted Income Tax Benefit

37

Income tax benefit on the Income Statement

$

554

$

1,527

38

Note 14 - Discontinued Operations - Income tax expense

(504)

^(b)

−

39

Total

$

50

$

1,527

Activity Related to CFVs

40

Revenue from CFVs on the Income Statement

$

5,050

$

2,788

41

Expenses from CFVs on the Income Statement

(11,649)

(11,431)

42

Net gains related to CFVs on the Income Statement

4,809

14,987

43

Equity in losses from LTPPs of CFVs on the Income Statement

(7,428)

(6,418)

44

Net losses allocable to noncontrolling interest in CFVs and IHS - continuing

  operations on the Income Statement           

9,909

810

45

Total

$

691

$

736

46

Sum of note (a) line items

$

691

$

736

Discontinued operations

47

Income from discontinued operations, net of tax on the Income Statement

$

14,479

$

5,061

48

Net losses (income) allocable to noncontrolling interests in CFVs and IHS -

  discontinued operations on the Income Statement       

150

(1,036)

49

Total

$

14,629

$

4,025

50

Sum of note (b) line items

$

14,629

$

4,025