NOTE 22 − 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 reporting operating segments, certain other activities are reported in the “all other” category. Summarized operating segment data is as follows (in thousands) (unaudited):

	Real Estate			Commercial Finance			Financial Fund Management			All Other (1)			Total
Three Months Ended June 30, 2011
Revenues from external customers	$	8,503		$	6,790		$	4,873		$	−		$	20,166
Equity in earnings (losses) of unconsolidated entities		7,370			(326	)		379			−			7,423
Total revenues		15,873			6,464			5,252			−			27,589
Segment operating expenses		(6,727	)		(3,709	)		(4,234	)		−			(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	)		(2,696	)		(36	)		(126	)		(3,159	)
Interest expense		(265	)		(2,578	)		−			(1,433	)		(4,276	)
Gain on sale of investment securities		−			−			25			57			82
Other income (expense), net		81			3			714			(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			(5,355	)		1,055			(3,481	)		(1	)
Intercompany interest (expense) income		−			(35	)		−			35			−
Income (loss) from operations including noncontrolling interests before taxes	$	7,780		$	(5,390	)	$	1,055		$	(3,446	)	$	(1	)

Nine Months Ended June 30, 2011
Revenues from external customers	$	21,564		$	14,992		$	18,693		$	−		$	55,249
Equity in earnings (losses) of unconsolidated entities		7,441			(575	)		2,501			−			9,367
Total revenues		29,005			14,417			21,194			−			64,616
Segment operating expenses		(18,276	)		(11,675	)		(16,914	)		−			(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	)		(5,731	)		(125	)		(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		−			−			(1,435	)		153			(1,282	)
Other income (expense), net		318			11			2,120			(464	)		1,985
Pretax loss attributable to noncontrolling interests (2)		35			583			−			−			618
Income (loss) including noncontrolling interests before intercompany interest expense and and income taxes		8,195			(10,241	)		8,920			(10,944	)		(4,070	)
Intercompany interest (expense) income		−			(1,623	)		−			1,623			−
Income (loss) from operations including noncontrolling interests before taxes	$	8,195		$	(11,864	)	$	8,920		$	(9,321	)	$	(4,070	)

	Real Estate			Commercial Finance			Financial Fund Management			All Other (1)			Total
Three Months Ended June 30, 2010
Revenues from external customers	$	11,113		$	5,876		$	7,592		$	−		$	24,581
Equity in earnings (losses) of unconsolidated entities		49			(284	)		892			−			657
Total revenues		11,162			5,592			8,484			−			25,238
Segment operating expenses		(5,856	)		(4,512	)		(6,471	)		−			(16,839	)
General and administrative expenses		(72	)		(94	)		(818	)		(1,962	)		(2,946	)
Loss on sale of leases and loans		−			(7,154	)		−			−			(7,154	)
Provision for credit losses		−			(1,428	)		−			−			(1,428	)
Depreciation and amortization		(319	)		(1,499	)		(42	)		(145	)		(2,005	)
Interest expense		(277	)		(1,825	)		(1	)		(1,401	)		(3,504	)
Net other-than-temporary impairment losses recognized		−			−			(67	)		−			(67	)
Loss on the sale of loans and investment securities		−			−			(27	)		−			(27	)
Other income (expense), net		123			1			752			(137	)		739
Pretax (income) loss attributable to noncontrolling interests (2)		(16	)		1,986			−			−			1,970
Income (loss) including noncontrolling interests before intercompany interest expense and income taxes		4,745			(8,933	)		1,810			(3,645	)		(6,023	)
Intercompany interest (expense) income		−			(1,577	)		−			1,577			−
Income (loss) from continuing operations including noncontrolling interests before taxes	$	4,745		$	(10,510	)	$	1,810		$	(2,068	)	$	(6,023	)

Nine Months Ended June 30, 2010
Revenues from external customers	$	23,298		$	23,438		$	19,226		$	−		$	65,962
Equity in earnings (losses) of unconsolidated entities		581			(1,614	)		5,131			−			4,098
Total revenues		23,879			21,824			24,357			−			70,060
Segment operating expenses		(16,099	)		(13,818	)		(15,875	)		−			(45,792	)
General and administrative expenses		(206	)		(305	)		(2,377	)		(6,258	)		(9,146	)
Loss on sales of leases and loans		−			(7,705	)		−			−			(7,705	)
Provision for credit losses		(49	)		(3,364	)		(1	)		−			(3,414	)
Depreciation and amortization		(977	)		(4,943	)		(155	)		(518	)		(6,593	)
Interest expense		(795	)		(6,073	)		(3	)		(4,321	)		(11,192	)
Net other-than-temporary impairment losses recognized		−			−			(364	)		−			(364	)
Loss on the sale of loans and investment securities		−			−			(451	)		−			(451	)
Other income (expense), net		275			1			1,864			(194	)		1,946
Pretax loss attributable to noncontrolling interests (2)		41			3,421			8			−			3,470
Income (loss) including noncontrolling interests before intercompany interest expense and and income taxes		6,069			(10,962	)		7,003			(11,291	)		(9,181	)
Intercompany interest (expense) income		−			(4,702	)		−			4,702			−
Income (loss) from continuing operations including noncontrolling interests before taxes	$	6,069		$	(15,664	)	$	7,003		$	(6,589	)	$	(9,181	)

	Real Estate		Commercial Finance		Financial Fund Management		All Other (1)			Total
Segment assets:
June 30, 2011	$	163,052	$	230,430	$	41,719	$	(41,996	)	$	393,205

June 30, 2010	$	150,400	$	66,541	$	33,393	$	(31,188	)	$	219,146

(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 three and nine months ended June 30, 2011, the Company recognized a $6.5 million net gain on the sale of its management contract with, and equity investment in, REM I. Revenues generated from the Company's European operations were $489,000 and $1.7 million for the three and nine months ended June 30, 2010, respectively. Included in the segment assets are European assets $6.5 million as of June 30, 2011 and 2010.

Major Customer. For the three and nine months ended June 30, 2011, the total of the management, incentive and servicing fees that the Company received from RCC were 9.4% and 13.7% of its consolidated revenues, respectively, as compared to and 17.2% and 11.6% for the three and nine months ended June 30, 2010, respectively. These fees have been reported as revenues by each of the Company's reporting segments.