NOTE 20 − OPERATING SEGMENTS

The Company's operations include three reportable operating segments that reflect the way the Company manages its operations and makes its business decisions. In addition to its reportable operating segments, certain other activities are reported in the "all other" category. Summarized operating segment data is as follows (in thousands) (unaudited):

	Real Estate			Financial Fund Management			Commercial Finance			All Other (1)			Total
Three Months Ended March 31, 2012
Revenues from external customers	$	9,681		$	5,428		$	−		$	−		$	15,109
Equity in earnings (losses) of unconsolidated entities		35			876			(1,240	)		−			(329	)
Total revenues		9,716			6,304			(1,240	)		−			14,780
Segment operating expenses		(7,407	)		(4,379	)		(230	)		−			(12,016	)
Restructuring expenses		−			−			−			(365	)		(365	)
General and administrative expenses		(94	)		(604	)		−			(1,769	)		(2,467	)
Provision for credit losses		(103	)		−			(2,859	)		−			(2,962	)
Depreciation and amortization		(324	)		(37	)		−			(174	)		(535	)
Gain on sale of investment securities, net		−			−			−			5			5
Impairment loss recognized in earnings		−			(74	)		−			−			(74	)
Interest expense		(213	)		−			(36	)		(396	)		(645	)
Other income (expense), net		129			538			−			(42	)		625
Pretax income attributable to noncontrolling interests (2)		39			−			−			−			39
Income (loss) from continuing operations including noncontrolling interests before taxes	$	1,743		$	1,748		$	(4,365	)	$	(2,741	)	$	(3,615	)

Six Months Ended March 31, 2012
Revenues from external customers	$	17,741		$	11,341		$	4,134		$	−		$	33,216
Equity in earnings (losses) of unconsolidated entities		641			1,542			(1,955	)		−			228
Total revenues		18,382			12,883			2,179			−			33,444
Segment operating expenses		(14,599	)		(10,183	)		(2,193	)		−			(26,975	)
Restructuring expenses		−			−			−			(365	)		(365	)
General and administrative expenses		(172	)		(1,473	)		−			(3,718	)		(5,363	)
Gain on sale of leases and loans		−			−			37			−			37
Provision for credit losses		(207	)		−			(5,005	)		−			(5,212	)
Depreciation and amortization		(647	)		(74	)		(1,556	)		(319	)		(2,596	)
Gain on deconsolidation of LEAF		−			−			8,749			−			8,749
Loss on extinguishment of debt		−			−			−			(2,190	)		(2,190	)
Gain on sale of investment securities, net		−			41			−			22			63
Impairment loss recognized in earnings		−			(74	)		−			−			(74	)
Interest expense		(428	)		−			(1,727	)		(1,464	)		(3,619	)
Other income (expense), net		246			1,115			−			(177	)		1,184
Pretax loss (income) attributable to noncontrolling interests (2)		14			−			(224	)		−			(210	)
Income (loss) including noncontrolling interests before intercompany interest expense and taxes		2,589			2,235			260			(8,211	)		(3,127	)
Intercompany interest (expense) income		−			−			(29	)		29			−
Income (loss) from operations including noncontrolling interests before taxes	$	2,589		$	2,235		$	231		$	(8,182	)	$	(3,127	)

	Real Estate			Financial Fund Management			Commercial Finance			All Other (1)			Total
Three Months Ended March 31, 2011
Revenues from external customers	$	6,270		$	7,145		$	6,415		$	−		$	19,830
Equity in (losses) earnings of unconsolidated entities		(12	)		467			62			−			517
Total revenues		6,258			7,612			6,477			−			20,347
Segment operating expenses		(6,088	)		(5,960	)		(3,693	)		−			(15,741	)
General and administrative expenses		(80	)		(780	)		−			(2,037	)		(2,897	)
Gain on sale of leases and loans		−			−			252			−			252
Provision for credit losses		(89	)		−			(2,630	)		−			(2,719	)
Depreciation and amortization		(340	)		(44	)		(2,407	)		(130	)		(2,921	)
Interest expense		(272	)		−			(2,510	)		(1,385	)		(4,167	)
Gain on extinguishment of servicing and repurchase liabilities		−			−			4,426			−			4,426
Gain on sale of investment securities, net		−			10			−			87			97
Other income (expense), net		115			747			6			(665	)		203
Pretax loss (income) attributable to noncontrolling interests (2)		67			−			(145	)		−			(78	)
(Loss) income including noncontrolling interests before intercompany interest expense and income taxes		(429	)		1,585			(224	)		(4,130	)		(3,198	)
Intercompany interest (expense) income		−			−			(34	)		34			−
(Loss) income from operations including noncontrolling interests before taxes	$	(429	)	$	1,585		$	(258	)	$	(4,096	)	$	(3,198	)

Six Months Ended March 31, 2011
Revenues from external customers	$	13,061		$	13,820		$	8,202		$	−		$	35,083
Equity in earnings (losses) of unconsolidated entities		71			2,122			(249	)		−			1,944
Total revenues		13,132			15,942			7,953			−			37,027
Segment operating expenses		(11,549	)		(12,680	)		(7,966	)		−			(32,195	)
General and administrative expenses		(177	)		(1,774	)		−			(4,062	)		(6,013	)
Gain on sale of leases and loans		−			−			263			−			263
Provision for credit losses		(89	)		−			(4,236	)		−			(4,325	)
Depreciation and amortization		(655	)		(89	)		(3,035	)		(267	)		(4,046	)
Interest expense		(547	)		−			(3,121	)		(2,868	)		(6,536	)
Gain on sale of management contract		−			6,520			−			−			6,520
Gain on extinguishment of servicing and repurchase liabilities		−			−			4,426			−			4,426
(Loss) gain on sale of investment securities, net		−			(1,460	)		−			96			(1,364	)
Other income (expense), net		237			1,406			8			(362	)		1,289
Pretax loss attributable to noncontrolling interests (2)		63			−			822			−			885
Income (loss) including noncontrolling interests before intercompany interest expense and income taxes		415			7,865			(4,886	)		(7,463	)		(4,069	)
Intercompany interest (expense) income		−			−			(1,588	)		1,588			−
Income (loss) from operations including noncontrolling interests before taxes	$	415		$	7,865		$	(6,474	)	$	(5,875	)	$	(4,069	)

	Real Estate		Financial Fund Management		Commercial Finance		All Other (1)			Total
Segment assets:
March 31, 2012	$	164,897	$	30,685	$	26,407	$	(53,497	)	$	168,492
March 31, 2011	$	157,131	$	38,237	$	216,050	$	(37,014	)	$	374,404

(1)	Includes general corporate expenses and assets not allocable to any particular segment.

(2)

In viewing its segment operations, management includes the pretax (income) loss attributable to noncontrolling interests. However, these interests are excluded from (loss) income from operations as computed in accordance with U.S. GAAP and should be deducted to compute (loss) income from operations as reflected in the Company's consolidated statements of operations.

Geographic Information. During the six months ended March 31, 2011, the Company recognized a $5.1 million net gain on the sale of its management contract with, and equity investment in, Resource Europe CLO I. There were no other revenues generated from the Company's European operations for the three and six months ended March 31, 2012 and 2011. Included in the segment assets are European assets of $855,000 and $6.8 million as of March 31, 2012 and 2011, respectively.

Major Customer. For the three and six months ended March 31, 2012, the total of the management, incentive and servicing fees that the Company received from RSO were 24% and 22%, respectively, and 12% and 17% for the three and six months ended March 31, 2011. These fees have been reported as revenues by the Company's reporting segments.