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 June 30, 2012
Revenues from external customers	$	11,286		$	2,223		$	2		$	−		$	13,511
Equity in (losses) earnings of unconsolidated entities		(365	)		768			(130	)		−			273
Total revenues		10,921			2,991			(128	)		−			13,784
Segment operating expenses		(7,386	)		(2,994	)		(118	)		−			(10,498	)
General and administrative expenses		(98	)		(608	)		−			(1,861	)		(2,567	)
Provision for credit losses		(52	)		−			(5,646	)		−			(5,698	)
Depreciation and amortization		(324	)		(29	)		−			(175	)		(528	)
Gain on sale and deconsolidation of subsidiaries		−			54,682			−			−			54,682
Interest expense		(213	)		−			(7	)		(358	)		(578	)
Other income (expense), net		148			455			−			(241	)		362
Pretax income attributable to noncontrolling interests (2)		(45	)		−			−			−			(45	)
Income (loss) from continuing operations including noncontrolling interests before taxes	$	2,951		$	54,497		$	(5,899	)	$	(2,635	)	$	48,914

Nine Months Ended June 30, 2012
Revenues from external customers	$	29,027		$	13,564		$	4,136		$	−		$	46,727
Equity in earnings (losses) of unconsolidated entities		276			2,310			(2,085	)		−			501
Total revenues		29,303			15,874			2,051			−			47,228
Segment operating expenses		(21,985	)		(13,177	)		(2,311	)		−			(37,473	)
Restructuring expenses		−			−			−			(365	)		(365	)
General and administrative expenses		(270	)		(2,081	)		−			(5,579	)		(7,930	)
Gain on sale of leases and loans		−			−			37			−			37
Provision for credit losses		(259	)		−			(10,651	)		−			(10,910	)
Depreciation and amortization		(971	)		(103	)		(1,556	)		(494	)		(3,124	)
Gain on sale and deconsolidation of subsidiaries		−			54,682			8,749			−			63,431
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		(641	)		−			(1,734	)		(1,822	)		(4,197	)
Other income (expense), net		394			1,570			−			(418	)		1,546
Pretax income attributable to noncontrolling interests (2)		(31	)		−			(224	)		−			(255	)
Income (loss) including noncontrolling interests before intercompany interest expense and taxes		5,540			56,732			(5,639	)		(10,846	)		45,787
Intercompany interest (expense) income		−			−			(29	)		29			−
Income (loss) from operations including noncontrolling interests before taxes	$	5,540		$	56,732		$	(5,668	)	$	(10,817	)	$	45,787

	Real Estate			Financial Fund Management			Commercial Finance			All Other (1)			Total
Three Months Ended June 30, 2011
Revenues from external customers	$	8,503		$	4,873		$	6,790		$	−		$	20,166
Equity in earnings (losses) of unconsolidated entities		7,370			379			(326	)		−			7,423
Total revenues		15,873			5,252			6,464			−			27,589
Segment operating expenses		(6,727	)		(4,234	)		(3,709	)		−			(14,670	)
General and administrative expenses		(71	)		(666	)		−			(1,877	)		(2,614	)
Gain on sale of leases and loans		−			−			94			−			94
Provision for credit losses		(782	)		−			(2,694	)		−			(3,476	)
Depreciation and amortization		(301	)		(36	)		(2,696	)		(126	)		(3,159	)
Interest expense		(265	)		−			(2,578	)		(1,433	)		(4,276	)
Gain on sale of investment securities, net		−			25			−			57			82
Other income (expense), net		81			714			3			(102	)		696
Pretax income attributable to noncontrolling interests (2)		(28	)		−			(239	)		−			(267	)
Income (loss) including noncontrolling interests before intercompany interest expense and income taxes		7,780			1,055			(5,355	)		(3,481	)		(1	)
Intercompany interest (expense) income		−			−			(35	)		35			−
Income (loss) income from operations including noncontrolling interests before taxes	$	7,780		$	1,055		$	(5,390	)	$	(3,446	)	$	(1	)

Nine Months Ended June 30, 2011
Revenues from external customers	$	21,564		$	18,693		$	14,992		$	−		$	55,249
Equity in earnings (losses) of unconsolidated entities		7,441			2,501			(575	)		−			9,367
Total revenues		29,005			21,194			14,417			−			64,616
Segment operating expenses		(18,276	)		(16,914	)		(11,675	)		−			(46,865	)
General and administrative expenses		(248	)		(2,440	)		−			(5,939	)		(8,627	)
Gain on sale of leases and loans		−			−			357			−			357
Provision for credit losses		(871	)		−			(6,930	)		−			(7,801	)
Depreciation and amortization		(956	)		(125	)		(5,731	)		(393	)		(7,205	)
Interest expense		(812	)		−			(5,699	)		(4,301	)		(10,812	)
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		−			(1,435	)		−			153			(1,282	)
Other income (expense), net		318			2,120			11			(464	)		1,985
Pretax loss attributable to noncontrolling interests (2)		35			−			583			−			618
Income (loss) including noncontrolling interests before intercompany interest expense and income taxes		8,195			8,920			(10,241	)		(10,944	)		(4,070	)
Intercompany interest (expense) income		−			−			(1,623	)		1,623			−
Income (loss) from operations including noncontrolling interests before taxes	$	8,195		$	8,920		$	(11,864	)	$	(9,321	)	$	(4,070	)

	Real Estate		Financial Fund Management		Commercial Finance		All Other (1)			Total
Segment assets:
June 30, 2012	$	167,077	$	79,447	$	20,990	$	(74,678	)	$	192,836
June 30, 2011	$	163,052	$	41,719	$	230,430	$	(41,996	)	$	393,205

(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 nine months ended June 30, 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 revenues generated from the Company's European operations for the three and nine months ended June 30, 2012 and no other revenues during the three and nine months ended June 30, 2011. Included in the segment assets are European assets of $559,000 and $6.5 million as of June 30, 2012 and 2011, respectively.

Major Customer. For the three and nine months ended June 30, 2012, the total of the management, incentive and servicing fees that the Company received from RSO were 30% and 24%, respectively, and 9% and 14% for the three and nine months ended June 30, 2011. These fees have been reported as revenues by the Company's reporting segments.