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| Delaware                        |   | 72-0654145          |
|---------------------------------|--------|---------------------|
| (State or other jurisdiction of |   | (I.R.S. Employer    |
| incorporation or organization)  |   | Identification No.) |

| One Crescent Drive, Suite 203, Navy Yard Corporate Center, Philadelphia, PA  19112 |
|----------------------------------------------------------------------------------------------|
| (Address of principal executive offices) (Zip code)                                          |
| (215) 546-5005                                                                               |
| (Registrant's telephone number, including area code)                                         |
|                                                                                         |
| Securities registered pursuant to Section 12(g) of the Act:                                  |

|   | Common stock, par value $.01 per share |   | NASDAQ                               |   |
|--------|----------------------------------------|--------|--------------------------------------|--------|
|   | Title of class                         |   | Name of exchange on which registered |   |

| Large accelerated filer                                                     | o |                                          | Accelerated filer                                                 | þ |   |
|-----------------------------------------------------------------------------|---|-----------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|
| Non-accelerated filer          | o | (Do not check if a smaller reporting company) | Smaller reporting company                                                                                                                                   | o      |   |

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INDEX 

|       |     | Page                                                                                                        |
|------------|----------|-------------------------------------------------------------------------------------------------------------|
| PART I     |     |                                                                                                        |
|       | Item 1:  | Business                                                                                                    |   3 |
|       | Item 1A: | Risk Factors                                                                                                | 10 |
|       | Item 1B: | Unresolved Staff Comments                                                                                   | 14 |
|       | Item 2:  | Properties                                                                                                  | 14 |
|       | Item 3:  | Legal Proceedings                                                                                           | 15 |
|       | Item 4:  | Submission of Matters to a Vote of Security Holders                                                         | 15 |
|       |     |                                                                                                        |   |
| PART II    |     |                                                                                                        |
|       | Item 5:  | Market for Registrant's Common Equity, Related Stockholder Matters andIssuer Purchases of Equity Securities | 16 |
|       | Item 6:  | Selected Financial Data                                                                                     | 18 |
|       | Item 7:  | Management’s Discussion and Analysis of Financial Condition and Results of Operations                 | 19 |
|       | Item 7A: | Quantitative and Qualitative Disclosures About Market Risk                                                  | 44 |
|       | Item 8:  | Financial Statements and Supplementary Data                                                                 | 45 |
|       | Item 9:  | Changes in and Disagreements with Accountants on Accounting andFinancial Disclosure                         | 94 |
|       | Item 9A: | Controls and Procedures                                                                                     | 94 |
|       | Item 9B: | Other Information                                                                                           | 96 |
|       |     |                                                                                                        |   |
| PART III   |     |                                                                                                        |
|       | Item 10: | Directors and Executive Officers and Corporate Governance                                                   | 96 |
|       | Item 11: | Executive Compensation                                                                                      | 96 |
|       | Item 12: | Security Ownership of Certain Beneficial Owners and Management andRelated Stockholder Matters               | 96 |
|       | Item 13: | Certain Relationships and Related Transactions, and Director Independence                                   | 96 |
|       | Item 14: | Principal Accounting Fees and Services                                                                      | 96 |
|       |     |                                                                                                        |   |
| PART IV    |     |                                                                                                        |
|       | Item 15: | Exhibits and Financial Statement Schedules                                                                  | 97 |
|       |     |                                                                                                        |   |
| SIGNATURES | 99       |

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| ITEM 1. | BUSINESS. |
|---------|-----------|

|   | · | In commercial finance, we completed the offering of two public limited partnerships, which obtained $135.0 million in investor funding through October 30, 2009. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | In real estate, we completed the offering of one private limited partnership which obtained $32.5 million in investor funding, and commenced an offering of another $40.0 million fund that will invest in discounted real estate and real estate debt ($37.3 million of investor funding has been raised through December 4, 2009).  In addition, we filed a registration statement with the Securities and ExchangeCommission, or SEC, for Resource Real Estate Opportunity REIT, Inc., which will seek to obtain up to $750.0 million in investor funding. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | In financial fund management, we focused on the management of 32 CDO issuers, six investment entities (one of which is currently in the offering stage), and Resource Capital Markets through our registered broker-dealer subsidiary, Chadwick Securities, Inc. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|                                             |   | September 30, 2009                     |   |   | September 30, 2008 |   |
|--------------------------------------------------|--------|----------------------------------------|--------|--------|--------------------|--------|
|                                             |   | Institutional and Individual Investors |   |   | RCC                |   |   | Company |   |   | Total |   |   | Total |   |
| Trust preferred securities (1)              |   | $                                      | 4,458  |   |               | $      | − |   |   | $ | − |   |   | $ | 4,458 |   |   | $ | 4,787 |   |
| Bank loans (1)                              |   |                                   | 3,006  |   |               |   | 914 |   |   |   | − |   |   |   | 3,920 |   |   |   | 4,251 |   |
| Asset-backed securities (1)                 |   |                                   | 2,186  |   |               |   | − |   |   |   | − |   |   |   | 2,186 |   |   |   | 5,638 |   |
| Real properties (2)                         |   |                                   | 643    |   |               |   | − |   |   |   | − |   |   |   | 643 |   |   |   | 614 |   |
| Mortgage and other real estate-related loans (2) |   |                                   | 10     |   |               |   | 860 |   |   |   | 177 |   |   |   | 1,047 |   |   |   | 1,089 |   |
| Commercial finance assets (3)               |   |                                   | 1,212  |   |               |   | 2 |   |   |   | 147 |   |   |   | 1,361 |   |   |   | 1,535 |   |
| Private equity and other assets (1)         |   |                                   | 66     |   |               |   | − |   |   |   | − |   |   |   | 66 |   |   |   | 59 |   |
|                                             |   | $                                      | 11,581 |   |               | $      | 1,776 |   |   | $ | 324 |   |   | $ | 13,681 |   |   | $ | 17,973 |   |

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| (1) | We value these assets at their amortized cost. |
|-----|------------------------------------------------|

| (2) | We value our managed real estate assets as the sum of:  (i) the amortized cost of our commercial real estate loans; and (ii) the book value of each of the following: (a) real estate and other assets held by our real estate investment entities, (b) our outstanding legacy loan portfolio, and (c) our interests in real estate. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | We value our commercial finance assets as the sum of the book value of the equipment and notes and future payment card receivables financed by us. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------|

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|                         |   | CDOs   |           |   | Limited Partnerships |   |     | TIC Programs |   |   | Other Investment Funds |   |
|------------------------------|--------|--------|----------------|--------|----------------------|--------|----------|--------------|--------|--------|------------------------|--------|
| As of September 30, 2009 (1) |   |   |           |   |                 |   |     |         |   |   |                   |   |
| Financial fund management    |   |   | 32             |   |                 |   | 13       |         |   |   | −                |   |   |   | − |   |
| Real estate                  |   |   |   2       |   |                 |   |   8 |         |   |   | 7                      |   |   |   | 5 |   |
| Commercial finance           |   |   |   − |   |                 |   |   4 |         |   |   | −                |   |   |   | 1 |   |
|                         |   |   | 34             |   |                 |   | 25       |         |   |   | 7                      |   |   |   | 6 |   |
| As of September 30, 2008 (1) |   |   |           |   |                 |   |     |         |   |   |                   |   |   |   |   |   |
| Financial fund management    |   |   | 35             |   |                 |   | 13       |         |   |   | −                |   |   |   | − |   |
| Real estate                  |   |   |   2       |   |                 |   |   7 |         |   |   | 7                      |   |   |   | 5 |   |
| Commercial finance           |   |   |   − |   |                 |   |   4 |         |   |   |  −          |   |   |   | 1 |   |
|                         |   |   | 37             |   |                 |   | 24       |         |   |   | 7                      |   |   |   | 6 |   |

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| (1) | All of our operating segments manage assets on behalf of RCC. |
|-----|---------------------------------------------------------------|

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|   | · | the acquisition, ownership and management of portfolios of discounted real estate and real estate related debt, which have been acquired to date through joint ventures with institutional investors and a sponsored real estate investment entity; |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | the sponsorship and management of real estate investment entities that principally invest in multifamily housing; |
|--------|--------|-------------------------------------------------------------------------------------------------------------------|

|   | · | the management, principally for RCC, of general investments in commercial real estate debt, including first mortgage debt, whole loans, mortgage participations, notes, mezzanine debt and related commercial real estate securities; and |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | to a lesser extent, the management and resolution of a portfolio of real estate loans and property interests that we acquired at various times between 1991 and 1999, which we refer to as our legacy portfolio. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | · | Apidos Capital Management, LLC, or Apidos, finances, structures and manages investments in bank loans, high yield bonds and equity investments; |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Trapeza Capital Management, LLC, or TCM, a joint venture between us and an unrelated third-party, originates, structures, finances and manages investments in trust preferred securities and senior debt securities of banks, bank holding companies, insurance companies and other financial companies.  TCM together with the Trapeza CDO issuers and Trapeza Partnerships are collectively referred to as Trapeza; |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Resource Capital Markets, Inc., which, through our registered broker-dealer subsidiary, Chadwick Securities, Inc., acts as an agent in the primary and secondary markets for trust preferred securities of banks, bank holding companies, insurance companies, other financial companies, real estate companies, REITS, and other real estate related companies as well as securities of CDO issuers; |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Resource Europe Management Ltd., or Resource Europe, structures and manages investments in international bank loans; |
|--------|--------|----------------------------------------------------------------------------------------------------------------------|

|   | · | Resource Financial Institutions Group, Inc., or RFIG, serves as the general partner for six (one of which is currently in the offering stage) company-sponsored affiliated partnerships which invest in financial institutions; |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Ischus Capital Management, LLC, or Ischus, finances, structures and manages investments in asset-backed securities or ABS, including residential mortgage-backed securities, or RMBS, and commercial mortgage-backed securities, or CMBS; and |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Resource Capital Manager, Inc., or RCM, an indirect wholly-owned subsidiary, provides investment management and administrative services to RCC under a management agreement between RCM and RCC. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| Sponsor/Manager |   | Asset Class                |   | Number ofCDO Issuers |   |   | Assets Under Management (1) |   |
|-----------------|--------|----------------------------|--------|----------------------|--------|--------|-----------------------------|--------|
|            |   |                       |   |                 |   |   | (in billions)               |   |
| Trapeza (2)(3)  |   | Trust preferred securities |   |                 | 13     |   |                        | $      | 4.5 |   |
| Apidos          |   | Bank loans                 |   |                 | 11     |   |                        |   | 3.5 |   |
| Ischus (2)      |   | RMBS/CMBS/ABS              |   |                 | 7      |   |                        |   | 2.2 |   |
| Resource Europe |   | Bank loans                 |   |                 | 1      |   |                        |   | 0.4 |   |
|            |   |                       |   |                 | 32     |   |                        | $      | 10.6 |   |

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| (1) | Calculated as set forth in “Assets Under Management,” above. |
|-----|--------------------------------------------------------------------------|

| (2) | We also own a 50% interest in the general partners of the limited partnerships that own a portion of the equity interests in each of five Trapeza CDO issuers and one Ischus CDO issuer. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | Through Trapeza, we own a 50% interest in an entity that manages 11 of the Trapeza CDO issuers and a 33.33% interest in another entity that manages two of the Trapeza CDO issuers. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|                     |   | Total  |   |   | Financial Fund Management |   |          | Real Estate |   |   | Commercial Finance |   |   | Corporate/ Other |                 |
|--------------------------|--------|--------|--------|--------|---------------------------|--------|---------------|-------------|--------|--------|--------------------|--------|--------|------------------|----------------------|
| September 30, 2009       |   |   |   |   |                      |   |          |        |   |   |               |   |   |             |                 |
| Investment professionals |   |   | 121    |   |                      |   | 32            |        |   |   |   26          |   |   |             |   61            |   |   |   |   2 |   |
| Other                    |   |   | 330    |   |                      |   | 16            |        |   |   |   17          |   |   |             | 259                  |   |   |   | 38 |   |
|                     |   |   | 451    |   |                      |   | 48            |        |   |   |   43          |   |   |             | 320                  |   |   |   | 40 |   |
| Property management      |   |   | 318    |   |                      |   |  − |        |   |   | 318                |   |   |             |    − |   |   |   |   − |   |
| Total                    |   |   | 769    |   |                      |   | 48            |        |   |   | 361                |   |   |             | 320                  |   |   |   | 40 |   |
|                     |   |   |   |   |                      |   |          |        |   |   |               |   |   |             |                 |   |   |   |   |   |
| September 30, 2008       |   |   |   |   |                      |   |          |        |   |   |               |   |   |             |                 |   |   |   |   |   |
| Investment professionals |   |   | 179    |   |                      |   | 39            |        |   |   |   31          |   |   |             | 104                  |   |   |   |   5 |   |
| Other                    |   |   | 367    |   |                      |   | 19            |        |   |   |   18          |   |   |             | 294                  |   |   |   | 36 |   |
|                     |   |   | 546    |   |                      |   | 58            |        |   |   |   49          |   |   |             | 398                  |   |   |   | 41 |   |
| Property management      |   |   | 253    |   |                      |   |  − |        |   |   | 253                |   |   |             |    − |   |   |   |   − |   |
| Total                    |   |   | 799    |   |                      |   | 58            |        |   |   | 302                |   |   |             | 398                  |   |   |   | 41 |   |

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| ITEM 1A. | RISK FACTORS. |
|----------|---------------|

|   | · | existing capital markets conditions.  As a result of the ongoing credit market turmoil, we may not be able to obtain debt financing on attractive terms.  As a result, we may be required to use a greater proportion of our equity funds to complete asset acquisitions and originations, reducing the number of investments we would otherwise make.  If the current capital markets environmentpersists, we may modify our investment strategy in order to optimize our portfolio performance.  Our options would include limiting or eliminating the use of debt and focusing on those investments that do not require the use of leverage to meet our portfolio goals.  During fiscal 2009, the market constraints on our ability to obtain debt financing caused our commercial finance operations to reduce originations of leases and loans held for our investment entities, as well as for our account,which reduced our operating revenues.  For our financial fund management operations, the availability of financing has been largely halted; |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | market acceptance of the types of funds we sponsor and market perceptions about the types of assets which we seek to acquire for our funds which has been impaired by current market conditions; |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | the willingness or ability of retail investors, a principal source of investment funds for our commercial finance and real estate investment funds, to invest in long-term, relatively illiquid investments of the type sponsored by us; |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | the performance of our existing funds.  During fiscal 2009, several of our funds reduced or ceased to make equity distributions as a result of reduced operations.  In one of those funds, we have deferred our management fees until such time as we are able to resume those distributions in full; |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | the availability of qualified personnel to manage our funds; |
|--------|--------|--------------------------------------------------------------|

|   | · | the availability of suitable investments in the types of loans, real estate, commercial finance assets and other assets that we seek to acquire for our funds; and |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | interest rate changes and their effect on both the assets we seek to acquire for our funds, and the amount, cost and availability of acquisition financing. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | · | are junior mortgage loans; |
|--------|--------|----------------------------|

|   | · | involve payment structures other than equal periodic payments that retire a loan over its term; |
|--------|--------|-------------------------------------------------------------------------------------------------|

|   | · | require the borrower to pay a large lump sum at loan maturity (which will depend upon the borrower’s ability to obtain financing or otherwise raise a substantial amount of cash at maturity); and |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | while producing income, do not generate sufficient revenues to pay the full amount of debt service on the loan as originally structured. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------|

| ITEM 1B. | UNRESOLVED STAFF COMMENTS. |
|----------|----------------------------|

| ITEM 2. | PROPERTIES. |
|---------|-------------|

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| ITEM 3. | LEGAL PROCEEDINGS. |
|---------|--------------------|

| ITEM 4. | SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS. |
|---------|------------------------------------------------------|

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| ITEM 5. | MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER |
|---------|------------------------------------------------------------|
|    | MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES.         |

|           |   | As Reported |   |
|----------------|--------|-------------|--------|
|           |   | High        |   |   | Low |   |
| Fiscal 2009    |   |        |   |   |   |   |
| Fourth Quarter |   | $           | 6.23   |   |   | $ | 4.68 |   |
| Third Quarter  |   | $           | 6.60   |   |   | $ | 3.42 |   |
| Second Quarter |   | $           | 4.19   |   |   | $ | 2.76 |   |
| First Quarter  |   | $           | 9.36   |   |   | $ | 3.25 |   |
|           |   |        |   |   |   |   |   |   |
| Fiscal 2008    |   |        |   |   |   |   |   |   |
| Fourth Quarter |   | $           | 13.61  |   |   | $ | 8.35 |   |
| Third Quarter  |   | $           | 10.84  |   |   | $ | 8.01 |   |
| Second Quarter |   | $           | 14.47  |   |   | $ | 9.44 |   |
| First Quarter  |   | $           | 18.71  |   |   | $ | 14.18 |   |

|                                                   | (a)                                                                                         | (b)                                                                         | (c)                                                                                                                                       |
|--------------------------------------------------------|---------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------|
| Plan category                                          | Number of securities to be issued upon exercise of outstanding options, warrants and rights | Weighted-average exercise price of outstanding options, warrants and rights | Number of securities remaining available for future issuance under equity compensation plans excluding securities reflected in column (a) |
| Equity compensation plans approved by security holders | 3,134,596                                                                                   | $9.04                                                                       | 576,863                                                                                                                                   |

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|   | * | Assumes $100 was invested on October 1, 2004 in our common stock or in the indicated index and that all cash dividends were reinvested as received. |
|--------|---|-----------------------------------------------------------------------------------------------------------------------------------------------------|

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| ITEM 6. | SELECTED FINANCIAL DATA. |
|---------|--------------------------|

|                                                                                                |   | As of and for the Years Ended September 30, |    |
|-----------------------------------------------------------------------------------------------------|--------|---------------------------------------------|---------|
|                                                                                                |   | 2009                                        |    |   | 2008 |   |   | 2007 |   |   | 2006 |   |   | 2005 |   |
|                                                                                                |   |                                        |    |   |   |   |   |   |   |   |   |   |   | (unaudited) |   |
| Statement of operations data:                                                                       |   |                                        |    |   |   |   |   |   |   |   |   |   |   |   |   |
| Revenues:                                                                                           |   |                                        |    |   |   |   |   |   |   |   |   |   |   |   |   |
|    Commercial finance                                                                |   | $                                           | 49,395  |   |   | $ | 96,881 |   |   | $ | 40,692 |   |   | $ | 23,840 |   |   | $ | 13,381 |   |
| Real estate                                                                                         |   |                                        | 25,417  |   |   |   | 31,519 |   |   |   | 22,987 |   |   |   | 23,076 |   |   |   | 17,791 |   |
| Financial fund management                                                                           |   |                                        | 33,344  |   |   |   | 27,536 |   |   |   | 63,089 |   |   |   | 28,457 |   |   |   | 19,550 |   |
| Total revenues                                                                                      |   | $                                           | 108,156 |   |   | $ | 155,936 |   |   | $ | 126,768 |   |   | $ | 75,373 |   |   | $ | 50,722 |   |
| (Loss) income from continuing operationsbefore cumulative effect of a change inaccounting principle |   | $                                           | (14,487 | ) |   | $ | (24,944 | ) |   | $ | 5,254 |   |   | $ | 15,668 |   |   | $ | 7,426 |   |
| (Loss) income from discontinued operations,net of tax                                               |   |                                        | (444    | ) |   |   | (1,299 | ) |   |   | (1,558 | ) |   |   | 1,231 |   |   |   | 11,070 |   |
| Cumulative effect of a change in accountingprinciple, net of tax                                    |   |                                        | − |   |   |   | − |   |   |   | − |   |   |   | 1,074 |   |   |   | − |   |
| Net (loss) income                                                                                   |   | $                                           | (14,931 | ) |   | $ | (26,243 | ) |   | $ | 3,696 |   |   | $ | 17,973 |   |   | $ | 18,496 |   |
|                                                                                                |   |                                        |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic (loss) earnings per common share:                                                             |   |                                        |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Continuing operations                                                                               |   | $                                           | (0.81   | ) |   | $ | (1.42 | ) |   | $ | 0.30 |   |   | $ | 0.89 |   |   | $ | 0.42 |   |
| Discontinued operations                                                                             |   |                                        | (0.03   | ) |   |   | (0.08 | ) |   |   | (0.09 | ) |   |   | 0.07 |   |   |   | 0.63 |   |
| Cumulative effect of a change in accounting principle                                               |   |                                        | − |   |   |   | − |   |   |   | − |   |   |   | 0.06 |   |   |   | − |   |
| Net (loss) income                                                                                   |   | $                                           | (0.84   | ) |   | $ | (1.50 | ) |   | $ | 0.21 |   |   | $ | 1.02 |   |   | $ | 1.05 |   |
|                                                                                                |   |                                        |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Diluted (loss) earnings per common share:                                                           |   |                                        |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Continuing operations                                                                               |   | $                                           | (0.81   | ) |   | $ | (1.42 | ) |   | $ | 0.27 |   |   | $ | 0.82 |   |   | $ | 0.38 |   |
| Discontinued operations                                                                             |   |                                        | (0.03   | ) |   |   | (0.08 | ) |   |   | (0.08 | ) |   |   | 0.07 |   |   |   | 0.58 |   |
| Cumulative effect of a change in accounting principle                                               |   |                                        | − |   |   |   | − |   |   |   | − |   |   |   | 0.05 |   |   |   | − |   |
| Net (loss) income                                                                                   |   | $                                           | (0.84   | ) |   | $ | (1.50 | ) |   | $ | 0.19 |   |   | $ | 0.94 |   |   | $ | 0.96 |   |
|                                                                                                |   |                                        |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash dividends per common share                                                                     |   | $                                           | 0.20    |   |   | $ | 0.28 |   |   | $ | 0.27 |   |   | $ | 0.24 |   |   | $ | 0.20 |   |
|                                                                                                |   |                                        |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance sheet data:                                                                                 |   |                                        |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total assets                                                                                        |   | $                                           | 375,840 |   |   | $ | 758,357 |   |   | $ | 966,452 |   |   | $ | 418,858 |   |   | $ | 463,037 |   |
| Borrowings                                                                                          |   | $                                           | 191,383 |   |   | $ | 554,059 |   |   | $ | 706,372 |   |   | $ | 172,238 |   |   | $ | 147,302 |   |
| Stockholders’ equity                                                                          |   | $                                           | 139,818 |   |   | $ | 143,733 |   |   | $ | 185,347 |   |   | $ | 195,167 |   |   | $ | 191,138 |   |
|                                                                                                |   |                                        |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

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| ITEM 7. | MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION |
|---------|-------------------------------------------------------------|
|    | AND RESULTS OF OPERATIONS.                                  |

|   | · | a $7.2 million charge, net of tax, from the sale of our interest in Apidos CDO VI; |
|--------|--------|------------------------------------------------------------------------------------|

|   | · | a $4.2 million charge, net of minority interest and tax, to reflect the other-than-temporary impairment of certain investments in CDO issuers with investments in bank loans ($3.2 million, including $1.4 million in Europe) and financial institutions ($998,000); |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | a $5.3 million provision for credit losses, net of tax, which impacted our business segments as follows:  commercial finance ($4.0 million), real estate ($282,000) and financial fund management ($1.1 million); and |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | a $1.2 million charge, net of tax, to reflect our equity losses in the unrealized depreciation in the book value of securities held by our investment entities. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                      |   | September 30, |   |   | Decrease |   |
|---------------------------|--------|---------------|--------|--------|----------|--------|
|                      |   | 2009          |   |   | 2008     |   |   | Amount |   |   | Percentage |   |
| Financial fund management |   | $             | 10,630 |   |     | $      | 14,735 |   |   | $ | (4,105 | ) (2) |   |   | 28% |   |
| Real estate               |   |          | 1,690  |   |     |   | 1,703 |   |   |   | (13 | ) |   |   |   1% |   |
| Commercial finance        |   |          | 1,361  |   |     |   | 1,535 |   |   |   | (174 | ) (3) |   |   | 11% |   |
|                      |   | $             | 13,681 |   |     | $      | 17,973 |   |   | $ | (4,292 | ) |   |   | 24% |   |

----

| (1) | For information on how we calculate assets under management, see Item 1, “Business-Assets Under Management.” |
|-----|--------------------------------------------------------------------------------------------------------------------------|

| (2) | Reduction primarily due to the following:  (i) a decrease in the collateral base of our ABS portfolio resulting from payment defaults ($1.7 billion), (ii) liquidation of two of our CDO issuers invested primarily in real estate ABS ($1.6 billion), (iii) a decrease in the collateral base of our trust preferred securities resulting from payment defaults ($279.5 million), (iv) sale of Apidos CDO VI ($226.5million), and (v) a decrease in the collateral base of our bank loan portfolio resulting from payment defaults ($95.1 million). |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | Reduction primarily reflects the reduction in new originations. |
|-----|-----------------------------------------------------------------|

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|                        |   | CDOs   |           |   | Limited Partnerships |   |     | TIC Programs |   |   | Other Investment Funds |   |
|-----------------------------|--------|--------|----------------|--------|----------------------|--------|----------|--------------|--------|--------|------------------------|--------|
| As of September 30, 2009(1) |   |   |           |   |                 |   |     |         |   |   |                   |   |
| Financial fund management   |   |   | 32             |   |                 |   | 13       |         |   |   | −                |   |   |   | − |   |
| Real estate                 |   |   |   2       |   |                 |   |   8 |         |   |   | 7                      |   |   |   | 5 |   |
| Commercial finance          |   |   |   − |   |                 |   |   4 |         |   |   | −                |   |   |   | 1 |   |
|                        |   |   | 34             |   |                 |   | 25       |         |   |   | 7                      |   |   |   | 6 |   |
| As of September 30, 2008(1) |   |   |           |   |                 |   |     |         |   |   |                   |   |   |   |   |   |
| Financial fund management   |   |   | 35             |   |                 |   | 13       |         |   |   | −                |   |   |   | − |   |
| Real estate                 |   |   |   2       |   |                 |   |   7 |         |   |   | 7                      |   |   |   | 5 |   |
| Commercial finance          |   |   |   − |   |                 |   |   4 |         |   |   | −                |   |   |   | 1 |   |
|                        |   |   | 37             |   |                 |   | 24       |         |   |   | 7                      |   |   |   | 6 |   |

----

| (1) | All of our operating segments manage assets on behalf of RCC. |
|-----|---------------------------------------------------------------|

|                                   |   | Years Ended September 30, |    |
|----------------------------------------|--------|---------------------------|---------|
|                                   |   | 2009                      |    |   | 2008 |   |   | 2007 |   |
| Finance and rental revenues (1)   |   | $                         | 38,491  |   |   | $ | 80,660 |   |   | $ | 48,981 |   |
| Fund management revenues (2)      |   |                      | 58,879  |   |   |   | 53,156 |   |   |   | 63,490 |   |
| RCC management fees                    |   |                      | 7,357   |   |   |   | 6,021 |   |   |   | 7,048 |   |
| Gains on resolution of loans (3)  |   |                      | 1,030   |   |   |   | 9,298 |   |   |   | 2,993 |   |
| Other (4)                         |   |                      | 2,399   |   |   |   | 6,801 |   |   |   | 4,256 |   |
|                                   |   | $                         | 108,156 |   |   | $ | 155,936 |   |   | $ | 126,768 |   |

----

| (1) | Includes fees from each of our financial fund management, real estate and commercial finance operations and our share of the income or loss from limited and general partnership interests we own in our financial fund management and real estate operations. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Includes interest and rental income from our commercial finance operations, interest income on bank loans from our financial fund management operations, interest and accreted discount income from our real estate operations and revenues from certain real estate assets. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | Includes the resolution of loans we hold in our real estate operating segment. |
|-----|--------------------------------------------------------------------------------|

| (4) | Includes the disposition of leases and loans as well as other charges earned by our commercial finance operations, the equity compensation earned in connection with the formation of RCC and net gains from the sale of TIC property interests. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|                               |   | September 30, |    |
|------------------------------------|--------|---------------|---------|
|                               |   | 2009          |    |   | 2008 |   |
| LEAF                               |   | $             | 144     |   |   | $ | 113 |   |
| LCFF (2)                      |   |          | − |   |   |   | 172 |   |
| Merit                              |   |          | 3       |   |   |   | 12 |   |
| Managed for our own account        |   |          | 147     |   |   |   | 297 |   |
| LEAF investment entities (2)  |   |          | 1,181   |   |   |   | 1,133 |   |
| RCC                                |   |          | 2       |   |   |   | 105 |   |
| Other                              |   |          | 31      |   |   |   | − |   |
| Managed for others                 |   |          | 1,214   |   |   |   | 1,238 |   |
|                               |   | $             | 1,361   |   |   | $ | 1,535 |   |

----

| (1) | For information on how we calculate assets under management, see Item 1, “Business − “Assets under Management.” |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------|

| (2) | As of March 1, 2009, LCFF is no longer a consolidated entity, and at September 30, 2009 is included in assets managed for our investment entities. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | finance revenues from leases and loans held by us prior to being sold to our investment entities; |
|--------|--------|---------------------------------------------------------------------------------------------------|

|   | · | acquisition fees which we earn when we sell commercial finance assets to one of our investment entities; and |
|--------|--------|--------------------------------------------------------------------------------------------------------------|

|   | · | asset management fees earned over the life of the lease or loan after we sell it. |
|--------|--------|-----------------------------------------------------------------------------------|

|                     |   | Years Ended September 30, |   |
|--------------------------|--------|---------------------------|--------|
|                     |   | 2009                      |   |   | 2008 |   |   | 2007 |   |
| Revenues:(1)             |   |                      |   |   |   |   |   |   |   |
| Finance revenues         |   | $                         | 22,974 |   |   | $ | 53,680 |   |   | $ | 16,859 |   |
| Acquisition fees         |   |                      | 4,943  |   |   |   | 18,466 |   |   |   | 10,484 |   |
| Fund management fees     |   |                      | 19,133 |   |   |   | 18,275 |   |   |   | 11,403 |   |
| Other                    |   |                      | 2,345  |   |   |   | 6,460 |   |   |   | 1,946 |   |
|                     |   | $                         | 49,395 |   |   | $ | 96,881 |   |   | $ | 40,692 |   |
| Costs and expenses:      |   |                      |   |   |   |   |   |   |   |   |   |   |
| Wages and benefit costs  |   | $                         | 13,263 |   |   | $ | 24,212 |   |   | $ | 11,634 |   |
| Other costs and expenses |   |                      | 11,916 |   |   |   | 18,529 |   |   |   | 7,867 |   |
|                     |   | $                         | 25,179 |   |   | $ | 42,741 |   |   | $ | 19,501 |   |

----

| (1) | Total revenues include RCC servicing and origination fees of $1.0 million, $1.5 million and $1.2 million for fiscal 2009, 2008 and 2007, respectively. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | · | a $30.7 million decrease in commercial finance revenues.  In fiscal 2008, we held a significantly higher portfolio balance of leases and loans as a result of the $412.5 million NetBank portfolio acquired in November 2007 and held by us until being completely sold in April 2008.  In addition, as of March 2009, we no longer consolidated LCFF, a $195.0 million portfolio.  As a result ofthese transactions, our finance revenues decreased significantly; however, since these assets are now owned by our investment funds, we are earning ongoing asset management fees.  Our warehouse line of credit that allows us to originate and hold equipment financings prior to selling them to our investment entities was extended until January 29, 2010, but at a lower borrowing limit of $115.0 million (previously $150.0 million).  This will require us to reduce the size of the portfolio we canhold on our balance sheet, which accordingly, will decrease of our future commercial finance revenues; |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | a $13.5 million decrease in acquisition fees resulting from the $1.0 billion decrease in the amount of leases sold to our funds and RCC to $281.3 million.  This decrease reflects the portfolio acquisitions we sold to our investment entities in fiscal 2008.  Additionally, the difficulty in obtaining debt financing by our investment funds has limited their ability to acquire equipment financingsfrom us.  Consequently, we have reduced our commercial finance originations to match the asset acquisition capabilities of our funds; |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | an $858,000 increase in fund management fees.  Our management fees include fees we receive to service the commercial finance assets we manage, offering fees earned for raising capital in our investment entities as well as fees received for originating loans for those entities.  During fiscal 2009, management fees earned to service leases increased by $816,000 due to the growth in assets under managementcreated by the $1.2 billion of lease originations in fiscal 2008.  These increases were offset, in part, by decreased offering fees of $136,000 related to the time between the closing of one fund and the opening of another investment fund.  In addition, during fiscal 2009, we waived $425,000 of fund management fees in one of our investment entities as payment of such fees is contingent upon providing a certain annual distribution rate to the investment entity’s partners, which was notmet and is uncertain for future periods; and |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | a $4.1 million decrease in other income, primarily reflecting reduced gains on equipment finance dispositions and late fees derived from commercial finance assets held by us.  These fees typically vary widely from period to period and are driven by the amount and seasoning of commercial finance assets held by us.  The large decrease in fiscal 2009 was due to the sale of the well-seasoned NetBankportfolio in fiscal 2008. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | a $10.9 million reduction in wages and benefits.  Our costs have decreased due to several factors: (i) in fiscal 2008, we held significantly higher assets and accordingly, incurred higher servicing costs; (ii) for fiscal 2009, many of these costs were reimbursed by the investment entities to whom we have sold these assets; and (iii) in conjunction with converting the operations we acquired in fiscal 2008onto the LEAF platform, we have reduced overhead costs by eliminating redundant positions.  Furthermore, in response to the ongoing recession and reduced originations, we have increased collection and customer service staff, while to a greater extent, we have decreased sales, credit and lease processing staff.  In total, we reduced the number of full-time employees in our commercial finance operations by 78 to 320 as of September 30, 2009 from 398 at September 30, 2008; and |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | a $6.7 million reduction in other costs and expenses.  This decrease is due to the decline in assets managed for our own account, which resulted in reduced costs to service our portfolio, primarily legal costs, and to our ongoing cost saving and consolidation efforts.  These efforts targeted eliminating overhead redundancies occurring through ouracquisitions and taking advantage of efficiencies obtained by operating on a single platform.  In addition, fiscal 2008 included one-time costs related to the portfolio acquisitions we made, which did not recur in fiscal 2009. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | a $30.6 million increase in commercial finance revenues primarily as a result of a greater number of assets held on our balance sheet as a result of the NetBank assets acquired coupled with increased availability under our credit facilities; |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | a $6.2 million increase in commercial finance revenues attributable to Merit’s first full year of operations; |
|--------|--------|---------------------------------------------------------------------------------------------------------------------|

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|   | · | an $8.0 million increase in asset acquisition fees resulting from an increase in leases sold.  Sales of leases increased by $617.2 million to $1.2 billion for fiscal 2008, principally related to commercial assets sold to our investment entities in connection with the NetBank and Dolphin Capital Corp. portfolio acquisitions; |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | a $6.9 million increase in fund management fees resulting from the $377.0 million increase in assets under management; and |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------|

|   | · | a $4.5 million increase in other income, reflecting primarily $3.3 million of net gains on equipment finance dispositions which typically vary widely from period to period, but increased as a result of holding the NetBank portfolio on our books.  Additionally, documentation fees increased by $1.0 million in relation to the increase in originations. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | an increase of $12.6 million in wages and benefits.  The number of full-time employees increased to 398 as of September 30, 2008 from 240 as of September 30, 2007 due to the acquisitions of the NetBank and Dolphin portfolios and to support our expanding operations.  Increases in personnel costs reflect additional costs incurred to service the increased amount of leases held on our books throughoutfiscal 2008 and that resulted in our increase in finance revenues.  Additionally, we incurred additional payroll costs due to our recent acquisitions.  In the fourth quarter of fiscal 2008, we consolidated certain business operations and reduced duplicative headcount; and |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | an increase of $10.7 million in operating expenses as a result of our increase in origination capabilities and increased facility costs, primarily due to our acquisitions. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | a commercial real estate debt portfolio we manage for RCC, comprised principally of A notes, whole loans, mortgage participations, B notes, mezzanine debt and related commercial real estate securities; |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | real estate investment fund assets, primarily multifamily apartments; |
|--------|--------|-----------------------------------------------------------------------|

|   | · | discounted real estate and real estate related debt we acquired through joint ventures with institutional investors and our opportunity fund; and |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | real estate loans, owned assets and ventures, known collectively as our legacy portfolio. |
|--------|--------|-------------------------------------------------------------------------------------------|

|                                                    |   | September 30, |   |
|---------------------------------------------------------|--------|---------------|--------|
|                                                    |   | 2009          |   |   | 2008 |   |
|                                                    |   | (in millions) |   |
| Assets under management (1):                            |   |          |   |   |   |   |
| Commercial real estate debt                             |   | $             | 872    |   |   | $ | 924 |   |
| Real estate investment funds and programs (residential) |   |          | 547    |   |   |   | 498 |   |
| Discounted/opportunistic portfolios                     |   |          | 193    |   |   |   | 187 |   |
| Legacy portfolio                                        |   |          | 78     |   |   |   | 94 |   |
|                                                    |   | $             | 1,690  |   |   | $ | 1,703 |   |

----

| (1) | For information on how we calculate assets under management, see Item 1, “Business − “Assets under Management.” |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------|

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----

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|                                                               |   | Years Ended September 30, |    |
|--------------------------------------------------------------------|--------|---------------------------|---------|
|                                                               |   | 2009                      |    |   | 2008 |   |   | 2007 |   |
| Revenues:                                                          |   |                      |    |   |   |   |   |   |   |
| Management fees:                                                   |   |                      |    |   |   |   |   |   |   |
| Asset management fees                                              |   | $                         | 3,935   |   |   | $ | 2,407 |   |   | $ | 1,462 |   |
| Resource Residential property management fees                      |   |                      | 4,362   |   |   |   | 2,682 |   |   |   | − |   |
| REIT management fees from RCC                                      |   |                      | 5,321   |   |   |   | 4,465 |   |   |   | 5,051 |   |
|                                                               |   |                      | 13,618  |   |   |   | 9,554 |   |   |   | 6,513 |   |
| Fee income from sponsorship of real estate investment entities     |   |                      | 1,929   |   |   |   | 3,583 |   |   |   | 6,904 |   |
| Master lease revenues                                              |   |                      | 3,994   |   |   |   | 3,660 |   |   |   | − |   |
| Rental property and revenues of consolidated VIEs                  |   |                      | 5,014   |   |   |   | 5,208 |   |   |   | 4,700 |   |
| Interest, including accreted loan discount                         |   |                      | 492     |   |   |   | 1,549 |   |   |   | 1,221 |   |
| Gains and fees on resolution of loans and other property interests |   |                      | 1,030   |   |   |   | 9,298 |   |   |   | 2,993 |   |
| Equity in (losses) earnings of unconsolidated entities             |   |                      | (660    | ) |   |   | (1,606 | ) |   |   | 537 |   |
| Net gain on sales of TIC property interests                        |   |                      | − |   |   |   | 273 |   |   |   | 119 |   |
|                                                               |   | $                         | 25,417  |   |   | $ | 31,519 |   |   | $ | 22,987 |   |
| Cost and expenses:                                                 |   |                      |    |   |   |   |   |   |   |   |   |   |
| General and administrative expenses                                |   | $                         | 9,587   |   |   | $ | 12,278 |   |   | $ | 9,942 |   |
| Resource Residential expenses                                      |   |                      | 4,459   |   |   |   | 3,043 |   |   |   | 34 |   |
| Master lease expenses                                              |   |                      | 4,577   |   |   |   | 4,081 |   |   |   | 2 |   |
| Rental property and expenses of consolidated VIEs                  |   |                      | 3,415   |   |   |   | 3,200 |   |   |   | 3,212 |   |
|                                                               |   | $                         | 22,038  |   |   | $ | 22,602 |   |   | $ | 13,190 |   |

|   | · | a $1.5 million increase in asset management fees due to an increase in equity deployed in properties that we manage in our investment entities by six to 50 at September 30, 2009 from 44 at September 30, 2008; |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | a $1.7 million increase in fees earned by Resource Residential which reflects the increase in multifamily units under management to 12,794 at September 30, 2009 from 10,877 at September 30, 2008; and |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | an $856,000 increase in REIT management fees due principally to higher RCC net income which increased the incentive management fee RCC paid us. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | a $1.7 million decrease in fee income related to the purchase and third-party financing of property through the sponsorship of real estate investment entities.  During fiscal 2009, we earned fees from the acquisition of four distressed notes for $31.9 million and seven property acquisitions with an aggregate purchase price of $62.7 million, as compared to the acquisition of seven properties with an aggregatepurchase price of $89.7 million during fiscal 2008.  During fiscal 2009, the fees earned were 1.0% to 1.75% of the acquisition price as compared to 1.75% of the acquisition price during fiscal 2008; |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | a $334,000 increase in master lease revenues from one TIC property due to improved occupancy; |
|--------|--------|-----------------------------------------------------------------------------------------------|

|   | · | a $194,000 decrease in rental property income and revenues of consolidated VIEs due to a 17% reduction in the daily rate charged at the Savannah, Georgia hotel we own in addition to the sale of our entire interest in another asset to one of our real estate investment funds; |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | a $1.1 million decrease in interest income attributable to the principal paydown of two loans and the foreclosure of another loan; |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------|

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|   | · | an $8.3 million decrease in gains and fees on the resolution of loans and other property interests.  During fiscal 2009, we received proceeds of $9.9 million from the payoff of one loan, resulting in a gain of $991,000, received discounted proceeds of $1.2 million from the payoff of another loan resulting in a loss of $313,000 and recorded a $330,000 gain on an asset sold in the prior year.  Infiscal 2008, we collected $18.4 million in connection with a substantial settlement of a discounted loan, which was secured by an office building in Washington, D.C.  As a result of this repayment, we recognized a pre-tax gain in the quarter ended September 30, 2008 of approximately $7.5 million.  Also, in fiscal 2008, we received $1.0 million in net proceeds plus a $130,000 structuring fee from the sale of a 19.99% interest in a partnership that owns a hotel property resulting in a gain of$574,000, and received $1.9 million in net proceeds from the sale of a 10% interest in a real estate venture resulting in a gain of $891,000; |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | a $946,000 decrease in equity losses of unconsolidated entities due to a favorable change in an interest rate swap; and |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------|

|   | · | a $273,000 decrease in net gain on sales of TIC property interests due to the sale of a $50.0 million TIC property during fiscal 2008; there were no TIC sales in fiscal 2009. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | a $2.7 million decrease in general and administrative expenses, primarily $1.7 million of wages and benefits, of which $1.2 million related to reduced bonuses; |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | a $1.4 million increase in Resource Residential expenses due to an increase in wages and benefits related to an increase in the number of employees required to manage the increase in properties; and |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | a $496,000 increase in master lease expenses from one TIC asset due to turnover costs related to occupancy. |
|--------|--------|-------------------------------------------------------------------------------------------------------------|

|   | · | a $945,000 increase in asset management fees due to an increase in equity deployed in properties that we manage in our investment entities to 44 at September 30, 2008 from 25 at September 30, 2007; |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | a $2.7 million increase in fees earned by Resource Residential which reflects the increase in apartment  and condominium units it managed or whose management it supervises to 10,877 at September 30, 2008 from 8,432 at September 30, 2007; |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | a $586,000 decrease in REIT management fees, primarily due to lower RCC net income which decreased the incentive management fees RCC paid to us; |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | a $3.3 million decrease in fee income related to the purchase and third-party financing of property through the sponsorship of real estate investment entities and TIC property interests.  During fiscal 2008, we acquired eight assets with an aggregate purchase price of $102.0 million, as compared to ten assets acquired for $166.7 million during fiscal 2007; |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | a $3.7 million increase in master lease revenues from one TIC asset as a result of having executed a master lease in October 2007 for a residential property owned by the TIC investors; |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | a $508,000 increase in rental property income due to increased occupancy at a hotel property in Savannah, Georgia; |
|--------|--------|--------------------------------------------------------------------------------------------------------------------|

|   | · | a $328,000 increase in interest income attributable to a higher payment rate on a note under a forbearance agreement, income payable on a new note delivered to us in connection with the sale on March 31, 2008 of a 10% interest in a real estate venture and income on a note held temporarily by us to facilitate the acquisition of the note by a related real estate investment fund; |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | a $6.3 million increase in gains and fees on resolutions.  In fiscal 2008, we collected $18.4 million in connection with the substantial settlement of a discounted loan, which was secured by an office building in Washington, D.C.  As a result of this repayment, we recognized a pre-tax gain in the quarter ended September 30, 2008 of approximately $7.5 million.  We received $1.0 millionin net proceeds plus a $130,000 structuring fee from the sale of a 19.99% interest in a partnership that owns a hotel property resulting in a gain of $574,000.  We also received $1.9 million in net proceeds from the sale of a 10% interest in a real estate venture resulting in a gain of $891,000.  For fiscal 2007, we received $2.9 million from the sale of a 15% interest in the same real estate venture, resulting in a gain of $2.7 million; |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | a $2.1 million decrease in our equity income primarily due to the operating losses of an entity which holds an office building in Washington, DC; and |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | a $154,000 increase in net gains on sale of TIC property interests.  We sold our interests in a $50.0 million TIC property during fiscal 2008 as compared to a $33.0 million TIC property during fiscal 2007. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | · | a $2.3 million increase in general and administrative expenses due to an increase in wages and benefits; |
|--------|--------|----------------------------------------------------------------------------------------------------------|

|   | · | a $3.0 million increase in Resource Residential management expenses which represents expenses from our new internal property manager; and |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | a $4.1 million increase in master lease expenses as a result of having executed a master lease for a TIC residential property. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------|

|   | · | Apidos finances, structures and manages investments in bank loans, high yield bonds and equity investments; |
|--------|--------|-------------------------------------------------------------------------------------------------------------|

|   | · | Trapeza, a joint venture between us and an unrelated third-party, originates, structures, finances and manages investments in trust preferred securities and senior debt securities of banks, bank holding companies, insurance companies and other financial companies; |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Resource Capital Markets, Inc., through our registered broker-dealer subsidiary, Chadwick Securities, Inc., acts as an agent in the primary and secondary markets for trust preferred securities of banks, bank holding companies, insurance companies, other financial companies, real estate companies, REITS, and other real estate related companies as well as securities of CDO issuers; |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Resource Europe structures and manages investments in international bank loans; |
|--------|--------|---------------------------------------------------------------------------------|

|   | · | RFIG serves as the general partner for six (one of which is currently in the offering stage) company-sponsored affiliated partnerships which invest in financial institutions; |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Ischus finances, structures and manages investments in asset-backed securities, or ABS, including residential mortgage-backed securities, or RMBS, and commercial mortgage-backed securities, or CMBS; and |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | RCM, an indirect wholly-owned subsidiary, provides investment management and administrative services to RCC under a management agreement between RCM and RCC. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                 |   | September 30, 2009                     |   |
|--------------------------------------|--------|----------------------------------------|--------|
|                                 |   | Institutional and Individual Investors |   |   | RCC |   |   | Total by Type |   |
| Trapeza                              |   | $                                      | 4,458  |   |   | $ | − |   |   | $ | 4,458 |   |
| Apidos                               |   |                                   | 2,570  |   |   |   | 914 |   |   |   | 3,484 |   |
| Ischus                               |   |                                   | 2,186  |   |   |   | − |   |   |   | 2,186 |   |
| Resource Europe                      |   |                                   | 436    |   |   |   | − |   |   |   | 436 |   |
| Other company-sponsored partnerships |   |                                   | 66     |   |   |   | − |   |   |   | 66 |   |
|                                 |   | $                                      | 9,716  |   |   | $ | 914 |   |   | $ | 10,630 |   |

|                                 |   | September 30, 2008                     |   |
|--------------------------------------|--------|----------------------------------------|--------|
|                                 |   | Institutional and Individual Investors |   |   | RCC |   |   | Total by Type |   |
| Trapeza                              |   | $                                      | 4,787  |   |   | $ | − |   |   | $ | 4,787 |   |
| Apidos                               |   |                                   | 2,906  |   |   |   | 941 |   |   |   | 3,847 |   |
| Ischus                               |   |                                   | 5,273  |   |   |   | 365 |   |   |   | 5,638 |   |
| Resource Europe                      |   |                                   | 404    |   |   |   | − |   |   |   | 404 |   |
| Other company-sponsored partnerships |   |                                   | 59     |   |   |   | − |   |   |   | 59 |   |
|                                 |   | $                                      | 13,429 |   |   | $ | 1,306 |   |   | $ | 14,735 |   |

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| (1) | For information on how we calculate assets under management, see the table and related notes at the end of “Assets under Management,” as presented earlier in this section. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | · | Collateral management fees − we receive fees for managing the assets held by CDO issuers we have sponsored.  These fees vary by CDO issuer, with our annual fees ranging between 0.10% and 0.60% of the aggregate principal balance of the collateral securities owned by the CDO issuers.  CDO indentures require certain overcollateralizationtest ratios, or O/C ratio(s), to be maintained.  O/C ratios measure the ratio of assets (collateral) to liabilities (notes) of a given CDO issuer.  Losses incurred on collateral due to payment defaults, payment deferrals or rating agency downgrades reduce the O/C ratios.  If O/C ratios are not met, incentive or subordinate management fees are deferred and interest collections from collateral are applied to outstanding principal note balances. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Administration fees − we receive fees for managing the assets held by partnerships sponsored by us and for managing their general operations.  These fees vary by limited partnership, with our annual fee ranging between 0.75% and 2.00% of the partnership capital balance. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|                                                 |   | Years Ended September 30, |   |
|------------------------------------------------------|--------|---------------------------|--------|
|                                                 |   | 2009                      |   |   | 2008 |   |   | 2007 |   |
| Revenues:                                            |   |                      |   |   |   |   |   |   |   |
| Limited and general partner interests:               |   |                      |   |   |   |   |   |   |   |
| Fair value adjustments                               |   | $                         | (266   | ) |   | $ | (23,483 | ) |   | $ | (2,901 | ) |
| Operations                                           |   |                      | (68    | ) |   |   | 2,752 |   |   |   | 6,062 |   |
| Total limited and general partner interests          |   |                      | (334   | ) |   |   | (20,731 | ) |   |   | 3,161 |   |
|                                                 |   |                      |   |   |   |   |   |   |   |   |   |   |
| Fund and RCC management fees                         |   |                      | 20,673 |   |   |   | 24,232 |   |   |   | 25,762 |   |
| Interest income on loans                             |   |                      | 6,017  |   |   |   | 16,563 |   |   |   | 26,201 |   |
| Introductory agent, due diligence and placement fees |   |                      | 5,166  |   |   |   | 2,593 |   |   |   | 1,901 |   |
| Earnings from unconsolidated CDOs                    |   |                      | 1,610  |   |   |   | 2,670 |   |   |   | 2,649 |   |
| Earnings of SFF partnerships                         |   |                      | 158    |   |   |   | 1,641 |   |   |   | 2,043 |   |
| Other                                                |   |                      | 54     |   |   |   | 568 |   |   |   | 1,372 |   |
|                                                 |   | $                         | 33,344 |   |   | $ | 27,536 |   |   | $ | 63,089 |   |
| Costs and expenses:                                  |   |                      |   |   |   |   |   |   |   |   |   |   |
| General and administrative                           |   | $                         | 20,399 |   |   | $ | 27,539 |   |   | $ | 19,333 |   |
| Equity compensation expense − RCC              |   |                      | 3      |   |   |   | 134 |   |   |   | 1,861 |   |
| Expenses of SFF partnerships                         |   |                      | 66     |   |   |   | 64 |   |   |   | 70 |   |
|                                                 |   | $                         | 20,468 |   |   | $ | 27,737 |   |   | $ | 21,264 |   |

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|   | · | Limited and general partner interests: |
|--------|--------|----------------------------------------|

|   | - | during fiscal 2009 and 2008, we recorded $1.6 million and ($23.2 million), respectively, in realized and unrealized fair value adjustments on Trapeza partnership securities and swap agreements and ($1.9 million) and ($287,000), respectively, in realized and unrealized fair value adjustments in the book value of securities we hold in unconsolidated other company-sponsored partnerships; and |
|--------|---|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | - | during fiscal 2009 and 2008, we recorded ($4,000) and $3.2 million, respectively, in revenues (other than fair value adjustments) from our limited and general partner share of operating results of the unconsolidated Trapeza partnerships and ($64,000) and ($402,000), respectively, from our limited and general partner share of operating results of unconsolidated other company-sponsored partnerships. |
|--------|---|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | a $3.6 million decrease in fund and RCC management fees, primarily from the following: |
|--------|--------|----------------------------------------------------------------------------------------|

|   | - | a $2.1 million net decrease in senior, subordinated and incentive management fees from our Trapeza operations, primarily from the following: |
|--------|---|----------------------------------------------------------------------------------------------------------------------------------------------|

|   | - | a $2.6 million decrease in subordinated management fees.  During fiscal 2009 and 2008, we recorded subordinated management fees of ($242,000) and $2.3 million, respectively, on 11 CDO issuers.  The loss recorded during fiscal 2009 was primarily the result of the write-off of cumulative accrued subordinated management fees that we no longer expect to receive from nine CDO issuers; and |
|--------|---|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | - | a $278,000 decrease in senior management fees as a result of portfolio defaults which reduced our collateral base. |
|--------|---|--------------------------------------------------------------------------------------------------------------------|

|   | - | a $591,000 increase in incentive management fees.  During fiscal 2009, we reversed $57,000 in incentive management fees from two CDO issuers as compared to a reversal of $648,000 of similar fees from three CDO issuers during fiscal 2008; and |
|--------|---|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | - | a $147,000 reduction in the net discount taken on incentive management fees.  During fiscal 2008, a discount of $147,000 was applied to the cumulative accrued incentive management fee balance for three CDO issuers.  No such discount was taken during fiscal 2009. |
|--------|---|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | - | a $3.8 million net decrease in collateral management fees from our Ischus operations primarily due to a reduction in subordinated management fees as a result of an increase in rating agency downgrades which reduced our collateral base and the liquidation of two of our CDO issuers during fiscal 2009; |
|--------|---|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | - | a $481,000 decrease in management fees from other company-sponsored partnerships primarily due to the liquidation of our previously sponsored hedge fund and a decline in fair values of other company-sponsored partnership investments.  These management fees are net asset based; and |
|--------|---|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | - | a $262,000 decrease in collateral management fees from the European CDO issuer we manage due to a decrease in the euro to dollar exchange rate for fiscal 2009 as compared to fiscal 2008. |
|--------|---|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | - | a $1.4 million increase in collateral management fees resulting from a full year of fees on four bank loan CDO issuers whose management we assumed from an unaffiliated third-party asset manager in May 2008; |
|--------|---|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | - | a $940,000 increase in RCC management fees and equity compensation, reflecting a $440,000 increase in management fees and a $500,000 increase in equity compensation; and |
|--------|---|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | - | an $851,000 decrease in our share of expenses for the management of Trapeza Capital Management LLC and Trapeza Management Group LLC, primarily due to a decrease in asset management personnel and state taxes. |
|--------|---|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | a $10.5 million decrease in interest income on loans held for investment, resulting primarily from the following: |
|--------|--------|-------------------------------------------------------------------------------------------------------------------|

|   | - | a $3.2 million decrease in interest income from CDO issuers whose loan assets were held by us in warehouse facilities and consolidated in our financial statements for fiscal 2008, including one Apidos and one Resource Europe CDO issuer.  The weighted average loan balance was $49.3 million at a weighted average interest rate of 7.16%.  We did not have any such consolidation during fiscal 2009;and |
|--------|---|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | - | a $7.3 million decrease from Apidos CDO VI.  In December 2007, we closed Apidos CDO VI, repaid all borrowings under the warehouse facility and purchased 100% of the subordinated notes.  The weighted average loan balances of Apidos CDO VI for fiscal 2009 and 2008 was $115.5 million and $221.0 million, respectively, at an effective interest rate of 4.38% and 5.81%, respectively.  As ofMarch 31, 2009, we agreed to sell our interest in Apidos CDO VI and no longer consolidated it.  This transaction settled on May 6, 2009. |
|--------|---|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | a $2.6 million increase in introductory agent fees resulting from the receipt of $5.1 million and $2.6 million in introductory agent fees earned in connection with 91 and 16 trust preferred transactions during fiscal 2009 and 2008, respectively. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | a $1.1 million net decrease in earnings from 12 unconsolidated CDO issuers we previously sponsored and manage.  Through fiscal 2009, we have fully impaired nine CDO investments.  The cost-recovery method will be used to realize any future income on these investments; |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | a $1.5 million decrease in the earnings of our SFF partnerships related to a decrease in earnings from four CDO investments which we have fully impaired.  We will utilize the cost-recovery method to realize any future income on these investments; and |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | a $514,000 decrease in other income, primarily as a result of a decrease in interest income we earned on the restricted cash balances of Apidos CDO VI, which we deconsolidated in May 2009. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | a $4.7 million decrease in wages and benefits due to the reduction in asset management and support personnel; |
|--------|--------|---------------------------------------------------------------------------------------------------------------|

|   | · | a $1.6 million decrease in professional fees, primarily due to a decrease in consulting fees related to our European operations and an overall decrease in general legal expenses; |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | a $581,000 decrease in financial software expenses; and |
|--------|--------|---------------------------------------------------------|

|   | · | a $336,000 decrease in broker fees paid to an affiliated party in connection with our Trapeza operations. |
|--------|--------|-----------------------------------------------------------------------------------------------------------|

|   | · | Limited and general partner interests: |
|--------|--------|----------------------------------------|

|   | - | during fiscal 2008 and 2007, we recorded ($23.2 million) and ($2.7 million), respectively, in realized and unrealized fair value adjustments on Trapeza partnership securities and swap agreements and ($287,000) and ($176,000), respectively, in realized and unrealized fair value adjustments in the book value of investments we hold in unconsolidated other company-sponsored partnerships; and |
|--------|---|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | - | during fiscal 2008 and 2007, we recorded $3.2 million and $6.2 million, respectively, in revenues (other than fair value adjustments) from our limited and general partner share of operating results of the unconsolidated Trapeza partnerships and ($402,000) and ($141,000), respectively, from our limited and general partner share of operating results of unconsolidated other company-sponsored partnerships. |
|--------|---|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | a $1.5 million decrease in fund and RCC management fees, primarily from the following: |
|--------|--------|----------------------------------------------------------------------------------------|

|   | - | a $1.8 million decrease in RCC management fees and equity compensation, reflecting a $438,000 decrease in management fees and a $1.3 million decrease in equity compensation; |
|--------|---|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | - | a $1.7 million decrease in fund management fees received in connection with the formation of Trapeza CDO XI and Trapeza CDO XII during fiscal 2007.  No such fees were received during fiscal 2008; |
|--------|---|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | - | a $1.4 million net decrease in collateral management fees from our Trapeza operations, reflecting a $2.3 million decrease due to a discount recorded in connection with subordinate and incentive management fees we expect to receive in the future partially offset by an $889,000 increase primarily due to a full twelve months of collateral management fees for three previously completed CDOs; and |
|--------|---|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | - | a $397,000 net decrease in collateral management fees from our Ischus operations. |
|--------|---|-----------------------------------------------------------------------------------|

|   | - | a $3.0 million net increase in collateral management fees from our Apidos and Resource Europe operations primarily due to a full twelve months of collateral management fees for three previously completed CDOs; and |
|--------|---|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | - | an $860,000 increase in collateral management fees resulting from the assumption of management of four new bank loan CDOs from an unaffiliated third-party asset manager in May 2008. |
|--------|---|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | a $9.6 million decrease in interest income on loans held for investment, resulting primarily from the following: |
|--------|--------|------------------------------------------------------------------------------------------------------------------|

|   | - | a $12.1 million decrease from the consolidation in our financial statements of one Apidos CDO issuer and one Resource Europe CDO issuer during fiscal 2008 as compared to two Resource Europe CDO issuers and two Apidos CDO issuers during fiscal 2007 while they accumulated assets through separate warehouse facilities.  The weighted average loan balances of CDO issuers we consolidated through warehouse facilitiesfor fiscal 2008 and 2007 were $49.3 million and $230.3 million, respectively, at weighted average interest rates of 7.16% and 6.70%, respectively; offset in part by |
|--------|---|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | - | a $2.5 million increase from the consolidation in our financial statements of Apidos CDO VI during fiscal 2008 as compared to fiscal 2007 while it accumulated assets through a warehouse facility.  In December 2007, we closed Apidos CDO VI, repaid all borrowings under the warehouse facility and purchased 100% of the subordinated notes.  The weighted average loan balances of Apidos CDO VI for fiscal2008 and 2007 were $221.0 million and $138.1 million, respectively, at weighted average interest rates of 5.81% and 7.59%, respectively. |
|--------|---|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | a $692,000 increase in introductory agent, due diligence and placement fees as a result of the following: |
|--------|--------|-----------------------------------------------------------------------------------------------------------|

|   | - | during fiscal 2008, we received $2.6 million in introductory agent fees earned in connection with 16 trust preferred security transactions.  We expect to earn introductory agent fees in the future, which will vary depending upon the terms of the transactions; and |
|--------|---|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | - | during fiscal 2007, we received $1.9 million in due diligence and placement fees in connection with 11 bank trust preferred and REIT trust preferred security transactions.  We do not expect to earn similar due diligence and placement fees in the future due to market conditions. |
|--------|---|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | a $402,000 decrease in the earnings of our SFF partnerships related to a decrease in earnings from four CDO investments.  As of September 30, 2008, we have fully impaired one CDO investment.  We will utilize the cost-recovery method to realize any future income on this investment. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | an $804,000 decrease in other revenue primarily from the following: |
|--------|--------|---------------------------------------------------------------------|

|   | - | a $582,000 decrease from the interest spread earned on loans and ABS assets accumulating on warehouse facilities with third parties based on the terms of warehousing agreements during fiscal 2007.  No such spread was received during fiscal 2008; and |
|--------|---|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | - | a $300,000 decrease from the gain on the sale of a security during fiscal 2007.  No such gain occurred during fiscal 2008. |
|--------|---|--------------------------------------------------------------------------------------------------------------------------------------|

|   | · | an $8.2 million increase in general and administrative expenses, primarily from the following: |
|--------|--------|------------------------------------------------------------------------------------------------|

|   | - | a $3.7 million increase in compensation expense due to higher wages and benefits as well as severance payments of $932,000 made to terminated employees; |
|--------|---|----------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | - | a $3.0 million decrease in reimbursed expenses from our Trapeza, Ischus and Apidos operations; the amount of reimbursed expenses primarily depends upon the terms of the transactions; |
|--------|---|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | - | a $1.5 million increase in professional fees primarily due to an increase in consulting fees related to our European operations and additional legal fees; offset, in part, by |
|--------|---|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | a $1.7 million decrease in equity compensation expense related to the award of RCC restricted stock and options to members of management. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | a $2.7 million increase related to the amortization of restricted stock awards given to our employees, of which $468,000 was due to accelerated vesting for certain terminated employees; and |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | · | an additional charge of $389,000 related to the final release of shares in the Employee Stock Ownership Plan. |
|--------|--------|---------------------------------------------------------------------------------------------------------------|

|                      |   | Years Ended September 30, |   |
|---------------------------|--------|---------------------------|--------|
|                      |   | 2009                      |   |   | 2008 |   |   | 2007 |   |
| Commercial finance        |   | $                         | 6,410  |   |   | $ | 7,505 |   |   | $ | 229 |   |
| Financial fund management |   |                      | 1,738  |   |   |   | 2,622 |   |   |   | − |   |
| Real estate               |   |                      | 456    |   |   |   | 500 |   |   |   | − |   |
|                      |   | $                         | 8,604  |   |   | $ | 10,627 |   |   | $ | 229 |   |

|   | · | Commercial finance – The provision for credit losses we recorded in fiscal 2009 for these assets decreased by $1.1 million as compared to the provision we made for fiscal 2008 primarily due to the decrease in the assets held for investment as a result of the sale of LCFF in March 2009; |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Financial fund management – We consolidated Apidos CDO VI, a $240.0 million securitization of corporate loans, from December 2007 until its sale in March 2009.  During fiscal 2008 and the period prior to the sale, our evaluation of the creditworthiness of that portfolio of loans included an analysis of observable secondary market prices and general market conditions.  As a result, managementconcluded that a provision for credit losses of $1.7 million and $2.6 million was warranted during fiscal 2009 and fiscal 2008, respectively; and |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Real estate - While we continue to monetize our legacy loan portfolio to reduce our overall exposure, we determined that economic conditions continue to negatively impact one of our remaining loans in the portfolio.  Accordingly, we recorded a provision for credit losses of $456,000 and $500,000 during fiscal 2009 and 2008, respectively. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                      |   | Years Ended September 30, |   |
|---------------------------|--------|---------------------------|--------|
|                      |   | 2009                      |   |   | 2008 |   |   | 2007 |   |
| Commercial finance        |   | $                         | 10,524 |   |   | $ | 27,466 |   |   | $ | 11,796 |   |
| Financial fund management |   |                      | 5,014  |   |   |   | 14,559 |   |   |   | 19,485 |   |
| Real estate               |   |                      | 966    |   |   |   | 1,222 |   |   |   | 1,040 |   |
| Corporate                 |   |                      | 3,695  |   |   |   | 4,019 |   |   |   | 1,245 |   |
|                      |   | $                         | 20,199 |   |   | $ | 47,266 |   |   | $ | 33,566 |   |

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|                                         |   | Years Ended September 30, |   |
|----------------------------------------------|--------|---------------------------|--------|
|                                         |   | 2009                      |   |   | 2008 |   |   | 2007 |   |
| Commercial finance:                          |   |                      |   |   |   |   |   |   |   |
| Average borrowings                           |   | $                         | 201.2  |   |   | $ | 423.6 |   |   | $ | 172.1 |   |
| Average interest rates                       |   |                      | 5.0    | %  |   |   | 6.4 | %  |   |   | 6.9 | %  |
|                                         |   |                      |   |   |   |   |   |   |   |   |   |   |
| Financial fund management:                   |   |                      |   |   |   |   |   |   |   |   |   |   |
| Average borrowings                           |   | $                         | 108.7  |   |   | $ | 255.6 |   |   | $ | 366.1 |   |
| Average interest rates                       |   |                      | 4.6    | %  |   |   | 5.6 | %  |   |   | 5.3 | %  |
|                                         |   |                      |   |   |   |   |   |   |   |   |   |   |
| Corporate – Secured credit facilities: |   |                      |   |   |   |   |   |   |   |   |   |   |
| Average borrowings                           |   | $                         | 42.8   |   |   | $ | 56.8 |   |   | $ | 12.2 |   |
| Average interest rates                       |   |                      | 11.1   | %  |   |   | 6.9 | %  |   |   | 10.1 | %  |

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|                                            |   | Years Ended September 30, |    |
|-------------------------------------------------|--------|---------------------------|---------|
|                                            |   | 2009                      |    |   | 2008 |   |   | 2007 |   |
| SFF partnerships (1)                       |   | $                         | 1,549   |   |   | $ | 6,578 |   |   | $ | (1,473 | ) |
| Commercial finance minority ownership (2)  |   |                      | − |   |   |   | (1,485 | ) |   |   | (530 | ) |
| Commercial finance fund participation (3)  |   |                      | − |   |   |   | (693 | ) |   |   | − |   |
| Other (4)                                  |   |                      | 54      |   |   |   | (157 | ) |   |   | (139 | ) |
|                                            |   | $                         | 1,603   |   |   | $ | 4,243 |   |   | $ | (2,142 | ) |

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| (1) | We own a 15% and 36% limited partner interest in SFF I and SFF II, respectively.  The SFF partnerships invest in the equity of certain of the CDO issuers we have structured. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Senior executives of LEAF hold a 14.1% interest in LEAF, reflecting LEAF common stock issued to them upon the conversion of a note in fiscal 2006 and the issuance of LEAF restricted stock, net of shares repurchased in December 2008. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | In January 2008, LEAF sold a 49% participation interest in one of its subsidiaries that held a portfolio of leases acquired from NetBank to one of its investment partnerships and sold the remaining 51% interest to it in April 2008. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4) | Reflects the approximately 20% interest held by a related party in a real estate property we own.  Fiscal 2008 and 2007 also included the interest spread earned by warehouse providers while assets were in the accumulation stage.  As of January 2008, all warehouse facilities were terminated. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                        |   | Years Ended September 30, |    |
|-------------------------------------------------------------|--------|---------------------------|---------|
|                                                        |   | 2009                      |    |   | 2008 |   |   | 2007 |   |
| RCC dividend income (1)                                |   | $                         | 3,405   |   |   | $ | 2,421 |   |   | $ | 3,173 |   |
| (Loss) gain on sales of equity securities (2)          |   |                      | (393    | ) |   |   | − |   |   |   | 3,533 |   |
| Interest income (3)                                    |   |                      | 340     |   |   |   | 547 |   |   |   | 761 |   |
| Other (expense) income, net (4)                        |   |                      | (196    | ) |   |   | 68 |   |   |   | 518 |   |
| Write-off of European real estate investment fund costs (5) |   |                      | − |   |   |   | − |   |   |   | (4,775 | ) |
| Other income, net                                           |   | $                         | 3,156   |   |   | $ | 3,036 |   |   | $ | 3,210 |   |

----

| (1) | In fiscal 2009, we recognized five dividend payments on our investment in RCC as compared to three and four dividend payments in fiscal 2008 and 2007, respectively. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | In fiscal 2009, we sold 99,318 shares of common stock of The Bancorp, Inc., or TBBK, at loss of $393,000.  In fiscal 2007, we recorded a gain of $3.5 million from the sale of 240,000 shares of TBBK.  No shares of TBBK were sold during fiscal 2008. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | Interest income decreased in fiscal 2009 by $207,000 from fiscal 2008, of which $273,000 was due to a decrease in cash balances at LEAF due to the deconsolidation of LCFF. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| (4) | Included in other income for fiscal 2009 is $192,000 of amortized losses in the retirement plan for our former CEO and in fiscal 2007 includes a $263,000 foreign exchange gain on our European operations. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (5) | In fiscal 2007, we wrote-off $4.8 million of reimbursable costs related to a European real estate fund that we sponsored that did not close due to the market conditions. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                             |   | Years Ended September 30, |    |
|--------------------------------------------------|--------|---------------------------|---------|
|                                             |   | 2009                      |    |   | 2008 |   |   | 2007 |   |
| Operating loss (for period prior to disposition) |   | $                         | (370    | ) |   | $ | (1,104 | ) |   | $ | (2,095 | ) |
| Loss on disposal, net                            |   |                      | − |   |   |   | − |   |   |   | (329 | ) |
| Income tax (provision) benefit                   |   |                      | (70     | ) |   |   | 386 |   |   |   | 848 |   |
| Discontinued loss, net of tax                    |   | $                         | (440    | ) |   | $ | (718 | ) |   | $ | (1,576 | ) |

|                                           |   | Years Ending September 30, |   |
|------------------------------------------------|--------|----------------------------|--------|
|                                           |   | 2009                       |   |   | 2008 |   |   | 2007 |   |
| Loss from discontinued operations before taxes |   | $                          | (14    | ) |   | $ | (856 | ) |   | $ | (180 | ) |
| Benefit for income taxes                       |   |                       | 5      |   |   |   | 300 |   |   |   | 68 |   |
| Loss from discontinued operations, net of tax  |   | $                          | (9     | ) |   | $ | (556 | ) |   | $ | (112 | ) |

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|   | · | cash of $26.2 million, including cash proceeds from the issuance of $15.6 million of 12% senior notes (of which $4.7 million was used to paydown our borrowings outstanding under the TD facility), and restricted cash of $2.7 million comprised of various escrow balances (principally $1.3 million held in LEAF collection accounts and $1.2 million escrowed for taxes and capital improvements for our investment in a hotelproperty); and |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | cash generated from operations, as well as payments received on leases and loans. |
|--------|--------|-----------------------------------------------------------------------------------|

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|                                |   |   |    |   | Payments Due By Period |   |
|-------------------------------------|--------|--------|---------|--------|------------------------|--------|
|                                |   | Total  |    |   | Less than 1 Year       |   |   | 1 – 3 Years |   |   | 4 – 5 Years |   |   | After 5 Years |   |
| Contractual obligations:            |   |   |    |   |                   |   |   |   |   |   |   |   |   |   |   |
| Other debt (1)                 |   | $      | 32,061  |   |                   | $      | 1,898 |   |   | $ | 28,268 |   |   | $ | 496 |   |   | $ | 1,399 |   |
| Capital lease obligations (1)  |   |   | 684     |   |                   |   | 323 |   |   |   | 308 |   |   |   | 53 |   |   |   | − |   |
| Secured credit facilities (1)  |   |   | 163,579 |   |                   |   | 149,029 |  (2) |   |   | 14,550 |   |   |   | − |   |   |   | − |   |
| Operating lease obligations         |   |   | 9,866   |   |                   |   | 2,470 |   |   |   | 3,685 |   |   |   | 1,815 |   |   |   | 1,896 |   |
| Other long-term liabilities         |   |   | 14,746  |   |                   |   | 3,481 |   |   |   | 2,020 |   |   |   | 1,496 |   |   |   | 7,749 |   |
| Total contractual obligations       |   | $      | 220,936 |   |                   | $      | 157,201 |   |   | $ | 48,831 |   |   | $ | 3,860 |   |   | $ | 11,044 |   |

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| (1) | Not included in the table above are estimated interest payments calculated at rates in effect at September 30, 2009; less than 1 year: $5.5 million; 1-3 years:  $5.9 million; 4-5 years:  $261,000; and after 5 years: $1.6 million. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Includes $136.5 million of principal payments on our commercial finance secured revolving credit facility, which is non-recourse to us and which is collateralized by the underlying equipment being leased or financed. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                          |   |   |   |   | Amount of Commitment Expiration Per Period |   |
|-------------------------------|--------|--------|--------|--------|--------------------------------------------|--------|
|                          |   | Total  |   |   | Less than1 Year                            |   |   | 1 – 3Years |   |   | 4 – 5Years |   |   | After5 Years |   |
| Other commercial commitments: |   |   |   |   |                                       |   |   |   |   |   |   |   |   |   |   |
| Guarantees                    |   | $      | 3,263  |   |                                       | $      | 3,263 |   |   | $ | − |   |   | $ | - |   |   | $ | - |   |
| Standby letters of credit     |   |   | 546    |   |                                       |   | 546 |   |   |   | − |   |   |   | - |   |   |   | - |   |
| Total commercial commitments  |   | $      | 3,809  |   |                                       | $      | 3,809 |   |   | $ | − |   |   | $ | − |   |   | $ | − |   |

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This standard is effective for us for assets or liabilities arising from contingencies in business combinations for which the acquisition date is after September 30, 2009. 

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|   | · | A two-step approach to determine whether or not a market is active.  The guidance further provides that if a transaction is considered to have been entered into on a distressed basis, the entity should use its own judgment rather than relying on observable transactions. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | An entity must recognize an OTTI only at the time at which it intends or is required to sell the asset prior to the recovery of its cost basis.  The guidance also changes the presentation of OTTI for debt securities that the entity does not intend to sell.  Impairments are separated into two components: (i) the amount of impairments related to credit losses and (ii)  the amountrelated to other factors.  The amount of impairment related to credit losses is reflected as a charge to earnings, while the amount deemed to be related to other factors is reflected as an adjustment to shareholders’ equity through other comprehensive income. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Disclosures about fair value of financial instruments are required in interim as well as in annual financial statements.  These disclosures are also required in summarized financial information at interim reporting periods. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| ITEM 7A. | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK. |
|----------|-------------------------------------------------------------|

|   | · | the loan is subject to forbearance or other agreements that require all of the operating cash flow from the property underlying the loan, after debt service on senior lien interest, to be paid to us and therefore is not currently being paid based on the stated interest rate of the loan; |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | the senior lien interest ahead of our interest is at a fixed rate and is not subject to interest rate fluctuation that would affect payments to us; and |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | the loan has significant accrued and unpaid interest and other charges outstanding to which cash flow from the underlying property would be applied even if cash flows were to exceed the interest due, as originally underwritten. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| ITEM 8. | FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA. |
|---------|----------------------------------------------|

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|                                                                                                                                                                                        |   | September 30, |     |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------|----------|
|                                                                                                                                                                                        |   | 2009          |     |   | 2008 |   |
| ASSETS                                                                                                                                                                                      |   |          |     |   |   |   |
| Cash                                                                                                                                                                                        |   | $             | 26,197   |   |   | $ | 14,910 |   |
| Restricted cash                                                                                                                                                                             |   |          | 2,741    |   |   |   | 23,689 |   |
| Receivables                                                                                                                                                                                 |   |          | 1,358    |   |   |   | 2,014 |   |
| Receivables from managed entities and related parties, net                                                                                                                                  |   |          | 55,047   |   |   |   | 35,674 |   |
| Loans sold, not settled, at fair value                                                                                                                                                      |   |          | −  |   |   |   | 662 |   |
| Loans held for investment, net                                                                                                                                                              |   |          | −  |   |   |   | 219,664 |   |
| Investments in commercial finance - held for investment, net                                                                                                                                |   |          | 2,429    |   |   |   | 182,315 |   |
| Investments in commercial finance - held for sale, net                                                                                                                                      |   |          | 142,701  |   |   |   | 110,773 |   |
| Investments in real estate, net                                                                                                                                                             |   |          | 27,313   |   |   |   | 37,972 |   |
| Investment securities available-for-sale, at fair value                                                                                                                                     |   |          | 19,500   |   |   |   | 22,746 |   |
| Investments in unconsolidated entities                                                                                                                                                      |   |          | 16,241   |   |   |   | 18,523 |   |
| Property and equipment, net                                                                                                                                                                 |   |          | 13,435   |   |   |   | 16,886 |   |
| Deferred tax assets                                                                                                                                                                         |   |          | 45,656   |   |   |   | 44,467 |   |
| Goodwill                                                                                                                                                                                    |   |          | 7,969    |   |   |   | 7,969 |   |
| Intangible assets, net                                                                                                                                                                      |   |          | 3,637    |   |   |   | 4,329 |   |
| Other assets                                                                                                                                                                                |   |          | 11,616   |   |   |   | 15,764 |   |
| Total assets                                                                                                                                                                                |   | $             | 375,840  |   |   | $ | 758,357 |   |
|                                                                                                                                                                                        |   |          |     |   |   |   |   |   |
| LIABILITIES AND STOCKHOLDERS’ EQUITY                                                                                                                                                  |   |          |     |   |   |   |   |   |
| Liabilities:                                                                                                                                                                                |   |          |     |   |   |   |   |   |
| Accrued expenses and other liabilities                                                                                                                                                      |   | $             | 40,986   |   |   | $ | 56,309 |   |
| Payables to managed entities and related parties                                                                                                                                            |   |          | 1,284    |   |   |   | 586 |   |
| Borrowings                                                                                                                                                                                  |   |          | 191,383  |   |   |   | 554,059 |   |
| Deferred tax liabilities                                                                                                                                                                    |   |          | 2,046    |   |   |   | 1,060 |   |
| Minority interests                                                                                                                                                                          |   |          | 323      |   |   |   | 2,610 |   |
| Total liabilities                                                                                                                                                                           |   |          | 236,022  |   |   |   | 614,624 |   |
|                                                                                                                                                                                        |   |          |     |   |   |   |   |   |
| Commitments and contingencies                                                                                                                                                               |   |          |     |   |   |   |   |   |
|                                                                                                                                                                                        |   |          |     |   |   |   |   |   |
| Stockholders’ equity:                                                                                                                                                                 |   |          |     |   |   |   |   |   |
| Preferred stock, $1.00 par value, 1,000,000 shares authorized;none outstanding                                                                                                              |   |          | -        |   |   |   | - |   |
| Common stock, $.01 par value, 49,000,000 shares authorized; 27,757,849and 27,421,552 shares issued, respectively (including nonvestedrestricted stock of 552,461 and 513,386, respectively) |   |          | 272      |   |   |   | 269 |   |
| Additional paid-in capital                                                                                                                                                                  |   |          | 277,944  |   |   |   | 269,689 |   |
| Accumulated deficit                                                                                                                                                                         |   |          | (22,471  | ) |   |   | (3,980 | ) |
| Treasury stock, at cost; 9,213,665 and 9,312,232 shares, respectively                                                                                                                       |   |          | (100,367 | ) |   |   | (101,440 | ) |
| Accumulated other comprehensive loss                                                                                                                                                        |   |          | (15,560  | ) |   |   | (20,805 | ) |
| Total stockholders’ equity                                                                                                                                                            |   |          | 139,818  |   |   |   | 143,733 |   |
|                                                                                                                                                                                        |   | $             | 375,840  |   |   | $ | 758,357 |   |

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|                                                         |   | Years Ended September 30, |    |
|--------------------------------------------------------------|--------|---------------------------|---------|
|                                                         |   | 2009                      |    |   | 2008 |   |   | 2007 |   |
| REVENUES                                                     |   |                      |    |   |   |   |   |   |   |
| Commercial finance                                           |   | $                         | 49,395  |   |   | $ | 96,881 |   |   | $ | 40,692 |   |
| Real estate                                                  |   |                      | 25,417  |   |   |   | 31,519 |   |   |   | 22,987 |   |
| Financial fund management                                    |   |                      | 33,344  |   |   |   | 27,536 |   |   |   | 63,089 |   |
|                                                         |   |                      | 108,156 |   |   |   | 155,936 |   |   |   | 126,768 |   |
| COSTS AND EXPENSES                                           |   |                      |    |   |   |   |   |   |   |   |   |   |
| Commercial finance                                           |   |                      | 25,179  |   |   |   | 42,741 |   |   |   | 19,501 |   |
| Real estate                                                  |   |                      | 22,038  |   |   |   | 22,602 |   |   |   | 13,190 |   |
| Financial fund management                                    |   |                      | 20,468  |   |   |   | 27,737 |   |   |   | 21,264 |   |
| General and administrative                                   |   |                      | 14,369  |   |   |   | 16,080 |   |   |   | 11,875 |   |
| Provision for credit losses                                  |   |                      | 8,604   |   |   |   | 10,627 |   |   |   | 229 |   |
| Depreciation and amortization                                |   |                      | 6,922   |   |   |   | 4,660 |   |   |   | 2,924 |   |
|                                                         |   |                      | 97,580  |   |   |   | 124,447 |   |   |   | 68,983 |   |
| OPERATING INCOME                                             |   |                      | 10,576  |   |   |   | 31,489 |   |   |   | 57,785 |   |
|                                                         |   |                      |    |   |   |   |   |   |   |   |   |   |
| OTHER (EXPENSE) INCOME                                       |   |                      |    |   |   |   |   |   |   |   |   |   |
| Impairment losses on investment securities                   |   |                      | (9,827  | ) |   |   | − |   |   |   | − |   |
| Recognized in other comprehensive loss                       |   |                      | 1,288   |   |   |   | − |   |   |   | − |   |
| Net impairment losses recognized in earnings                 |   |                      | (8,539  | ) |   |   | (14,467 | ) |   |   | (12,580 | ) |
| Interest expense                                             |   |                      | (20,199 | ) |   |   | (47,266 | ) |   |   | (33,566 | ) |
| Minority interest income (expense), net                      |   |                      | 1,603   |   |   |   | 4,243 |   |   |   | (2,142 | ) |
| Loss on sale of loans and investment securities, net         |   |                      | (11,588 | ) |   |   | (17,674 | ) |   |   | (5,025 | ) |
| Other income, net                                            |   |                      | 3,156   |   |   |   | 3,036 |   |   |   | 3,210 |   |
|                                                         |   |                      | (35,567 | ) |   |   | (72,128 | ) |   |   | (50,103 | ) |
| (Loss) income from continuing operations before income taxes |   |                      | (24,991 | ) |   |   | (40,639 | ) |   |   | 7,682 |   |
| (Benefit) provision for income taxes                         |   |                      | (10,504 | ) |   |   | (15,695 | ) |   |   | 2,428 |   |
| (Loss) income from continuing operations                     |   |                      | (14,487 | ) |   |   | (24,944 | ) |   |   | 5,254 |   |
| Loss from discontinued operations, net of tax                |   |                      | (444    | ) |   |   | (1,299 | ) |   |   | (1,558 | ) |
| NET (LOSS) INCOME                                            |   | $                         | (14,931 | ) |   | $ | (26,243 | ) |   | $ | 3,696 |   |
|                                                         |   |                      |    |   |   |   |   |   |   |   |   |   |
| Basic (loss) earnings per common share:                      |   |                      |    |   |   |   |   |   |   |   |   |   |
| Continuing operations                                        |   | $                         | (0.81   | ) |   | $ | (1.42 | ) |   | $ | 0.30 |   |
| Discontinued operations                                      |   |                      | (0.03   | ) |   |   | (0.08 | ) |   |   | (0.09 | ) |
| Net (loss) income                                            |   | $                         | (0.84   | ) |   | $ | (1.50 | ) |   | $ | 0.21 |   |
| Weighted average shares outstanding                          |   |                      | 17,835  |   |   |   | 17,518 |   |   |   | 17,467 |   |
|                                                         |   |                      |    |   |   |   |   |   |   |   |   |   |
| Diluted (loss) earnings per common share:                    |   |                      |    |   |   |   |   |   |   |   |   |   |
| Continuing operations                                        |   | $                         | (0.81   | ) |   | $ | (1.42 | ) |   | $ | 0.27 |   |
| Discontinued operations                                      |   |                      | (0.03   | ) |   |   | (0.08 | ) |   |   | (0.08 | ) |
| Net (loss) income                                            |   | $                         | (0.84   | ) |   | $ | (1.50 | ) |   | $ | 0.19 |   |
| Weighted average shares outstanding                          |   |                      | 17,835  |   |   |   | 17,518 |   |   |   | 19,085 |   |
|                                                         |   |                      |    |   |   |   |   |   |   |   |   |   |
| Dividends declared per common share                          |   | $                         | 0.20    |   |   | $ | 0.28 |   |   | $ | 0.27 |   |

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|                                                                                                  |   |   |    |   |       |   |    | Retained     |   |   |     |   |   |       |     |   | Accumulated   |   |    |                |   |   |          |   |
|-------------------------------------------------------------------------------------------------------|--------|--------|---------|--------|------------|--------|---------|--------------|--------|--------|----------|--------|--------|------------|----------|--------|---------------|--------|---------|---------------------|--------|--------|---------------|--------|
|                                                                                                  |   |   |    |   | Additional |   |    | Earnings     |   |   |     |   |   | ESOP       |     |   | Other         |   |    | Total               |   |   |          |   |
|                                                                                                  |   | Common |    |   | Paid-In    |   |    | (Accumulated |   |   | Treasury |   |   | Loan       |     |   | Comprehensive |   |    | Stockholders’ |   |   | Comprehensive |   |
|                                                                                                  |   | Stock  |    |   | Capital    |   |    | Deficit)     |   |   | Stock    |   |   | Receivable |     |   | Income (Loss) |   |    | Equity              |   |   | Income (Loss) |   |
| Balance, September 30, 2006                                                                           |   | $      | 264     |   |       | $      | 259,882 |         |   | $      | 27,569   |   |   | $          | (96,960  | )      |          | $      | (465    | )                   |   | $      | 4,877         |   |   | $ | 195,167 |   |   |   |   |
| Cumulative effect adjustment                                                                          |   |   | − |   |       |   | − |         |   |   | 676      |   |   |       | −  |   |          |   | − |                |   |   | −       |   |   |   | 676 |   |   |   |   |
| Balance, October 1, 2006                                                                              |   |   | 264     |   |       |   | 259,882 |         |   |   | 28,245   |   |   |       | (96,960  | )      |          |   | (465    | )                   |   |   | 4,877         |   |   |   | 195,843 |   |   |   |   |
| Net income                                                                                            |   |   | − |   |       |   | − |         |   |   | 3,696    |   |   |       | −  |   |          |   | − |                |   |   | −       |   |   |   | 3,696 |   |   | $ | 3,696 |   |
| Treasury shares issued                                                                                |   |   | − |   |       |   | 443     |         |   |   | −  |   |   |       | 314      |   |          |   | − |                |   |   | −       |   |   |   | 757 |   |   |   |   |   |
| Stock-based compensation                                                                              |   |   | − |   |       |   | 934     |         |   |   | −  |   |   |       | −  |   |          |   | − |                |   |   | −       |   |   |   | 934 |   |   |   |   |   |
| Restricted stock awards                                                                               |   |   | − |   |       |   | 1,004   |         |   |   | −  |   |   |       | −  |   |          |   | − |                |   |   | −       |   |   |   | 1,004 |   |   |   |   |   |
| Issuance of common shares                                                                             |   |   | 4       |   |       |   | 1,222   |         |   |   | −  |   |   |       | −  |   |          |   | − |                |   |   | −       |   |   |   | 1,226 |   |   |   |   |   |
| Tax benefit from exercise    of stock options                                               |   |   | − |   |       |   | 2,090   |         |   |   | −  |   |   |       | −  |   |          |   | − |                |   |   | −       |   |   |   | 2,090 |   |   |   |   |   |
| Purchase of treasury shares                                                                           |   |   | − |   |       |   | − |         |   |   | −  |   |   |       | (5,368   | )      |          |   | − |                |   |   | −       |   |   |   | (5,368 | ) |   |   |   |   |
| Cash dividends                                                                                        |   |   | − |   |       |   | − |         |   |   | (4,770   | )      |   |       | −  |   |          |   | − |                |   |   | −       |   |   |   | (4,770 | ) |   |   |   |   |
| Other comprehensive loss                                                                              |   |   | − |   |       |   | − |         |   |   | −  |   |   |       | −  |   |          |   | − |                |   |   | (9,479        | )      |   |   | (9,479 | ) |   |   | (9,479 | ) |
| Settlement of equity conversion    feature underlying   a subsidiary’s debt |   |   | − |   |       |   | (611    | )            |   |   | −  |   |   |       | −  |   |          |   | − |                |   |   | −       |   |   |   | (611 | ) |   |   |   |   |
| Repayment of ESOP loan                                                                                |   |   | − |   |       |   | (217    | )            |   |   | −  |   |   |       | −  |   |          |   | 242     |                |   |   | −       |   |   |   | 25 |   |   |   |   |   |
| Balance, September 30, 2007                                                                           |   |   | 268     |   |       |   | 264,747 |         |   |   | 27,171   |   |   |       | (102,014 | )      |          |   | (223    | )                   |   |   | (4,602        | )      |   |   | 185,347 |   |   | $ | (5,783 | ) |
| Net loss                                                                                              |   |   | − |   |       |   | − |         |   |   | (26,243  | )      |   |       | −  |   |          |   | − |                |   |   | −       |   |   |   | (26,243 | ) |   | $ | (26,243 | ) |
| Treasury shares issued                                                                                |   |   | − |   |       |   | 306     |         |   |   | −  |   |   |       | 811      |   |          |   | − |                |   |   | −       |   |   |   | 1,117 |   |   |   |   |   |
| Stock-based compensation                                                                              |   |   | − |   |       |   | 1,007   |         |   |   | −  |   |   |       | −  |   |          |   | − |                |   |   | −       |   |   |   | 1,007 |   |   |   |   |   |
| Restricted stock awards                                                                               |   |   | − |   |       |   | 3,448   |         |   |   | −  |   |   |       | −  |   |          |   | − |                |   |   | −       |   |   |   | 3,448 |   |   |   |   |   |
| Issuance of common shares                                                                             |   |   | 1       |   |       |   | 181     |         |   |   | −  |   |   |       | −  |   |          |   | − |                |   |   | −       |   |   |   | 182 |   |   |   |   |   |
| Purchase of treasury shares                                                                           |   |   | − |   |       |   | − |         |   |   | −  |   |   |       | (237     | )      |          |   | − |                |   |   | −       |   |   |   | (237 | ) |   |   |   |   |
| Cash dividends                                                                                        |   |   | − |   |       |   | − |         |   |   | (4,908   | )      |   |       | −  |   |          |   | − |                |   |   | −       |   |   |   | (4,908 | ) |   |   |   |   |
| Other comprehensive loss                                                                              |   |   | − |   |       |   | − |         |   |   | −  |   |   |       | −  |   |          |   | − |                |   |   | (16,203       | )      |   |   | (16,203 | ) |   |   | (16,203 | ) |
| Repayment of ESOP loan                                                                                |   |   | − |   |       |   | − |         |   |   | −  |   |   |       | −  |   |          |   | 223     |                |   |   | −       |   |   |   | 223 |   |   |   |   |   |
| Balance, September 30, 2008                                                                           |   |   | 269     |   |       |   | 269,689 |         |   |   | (3,980   | )      |   |       | (101,440 | )      |          |   | − |                |   |   | (20,805       | )      |   |   | 143,733 |   |   | $ | (42,446 | ) |
| Net loss                                                                                              |   |   | − |   |       |   | − |         |   |   | (14,931  | )      |   |       | −  |   |          |   | − |                |   |   | −       |   |   |   | (14,931 | ) |   | $ | (14,931 | ) |
| Treasury shares issued                                                                                |   |   | − |   |       |   | (650    | )            |   |   | −  |   |   |       | 1,073    |   |          |   | − |                |   |   | −       |   |   |   | 423 |   |   |   |   |   |
| Stock-based compensation                                                                              |   |   | − |   |       |   | 613     |         |   |   | −  |   |   |       | −  |   |          |   | − |                |   |   | −       |   |   |   | 613 |   |   |   |   |   |
| Restricted stock awards                                                                               |   |   | − |   |       |   | 3,615   |         |   |   | −  |   |   |       | −  |   |          |   | − |                |   |   | −       |   |   |   | 3,615 |   |   |   |   |   |
| Issuance of warrants in    Senior Notes offering                                       |   |   | − |   |       |   | 4,941   |         |   |   | −  |   |   |       | −  |   |          |   | − |                |   |   | −       |   |   |   | 4,941 |   |   |   |   |   |
| Issuance of common shares                                                                             |   |   | 3       |   |       |   | − |         |   |   | −  |   |   |       | −  |   |          |   | − |                |   |   | −       |   |   |   | 3 |   |   |   |   |   |
| Purchase of subsidiary stock    held by a noncontrolling    stockholder      |   |   | − |   |       |   | (264    | )            |   |   | −  |   |   |       | −  |   |          |   | − |                |   |   | −       |   |   |   | (264 | ) |   |   |   |   |
| Cash dividends                                                                                        |   |   | − |   |       |   | − |         |   |   | (3,560   | )      |   |       | −  |   |          |   | − |                |   |   | −       |   |   |   | (3,560 | ) |   |   |   |   |
| Other comprehensive income                                                                            |   |   | − |   |       |   | − |         |   |   | −  |   |   |       | −  |   |          |   |    |                |   |   | 5,245         |   |   |   | 5,245 |   |   |   | 5,245 |   |
| Balance, September 30, 2009                                                                           |   | $      | 272     |   |       | $      | 277,944 |         |   | $      | (22,471  | )      |   | $          | (100,367 | )      |          | $      | − |                |   | $      | (15,560       | )      |   | $ | 139,818 |   |   | $ | (9,686 | ) |

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|                                                                                              |   | Years Ended September 30, |     |
|---------------------------------------------------------------------------------------------------|--------|---------------------------|----------|
|                                                                                              |   | 2009                      |     |   | 2008 |   |   | 2007 |   |
| CASH FLOWS FROM OPERATING ACTIVITIES:                                                             |   |                      |     |   |   |   |   |   |   |
| Net (loss) income                                                                                 |   | $                         | (14,931  | ) |   | $ | (26,243 | ) |   | $ | 3,696 |   |
| Adjustments to reconcile net (loss) income to net cash(used in) provided by operating activities: |   |                      |     |   |   |   |   |   |   |   |   |   |
| Loss on sale of loans and investment securities, net                                              |   |                      | 11,588   |   |   |   | 17,674 |   |   |   | 5,025 |   |
| Net impairment losses recognized in earnings                                                      |   |                      | 8,539    |   |   |   | 14,467 |   |   |   | 12,580 |   |
| Depreciation and amortization                                                                     |   |                      | 8,876    |   |   |   | 6,024 |   |   |   | 3,699 |   |
| Provision for credit losses                                                                       |   |                      | 8,604    |   |   |   | 10,627 |   |   |   | 229 |   |
| Minority interest (income) expense                                                                |   |                      | (1,603   | ) |   |   | (4,243 | ) |   |   | 2,142 |   |
| Equity in (earnings) losses of unconsolidated entities                                            |   |                      | (1,279   | ) |   |   | 15,656 |   |   |   | (13,960 | ) |
| Distributions from unconsolidated entities                                                        |   |                      | 6,128    |   |   |   | 15,647 |   |   |   | 16,212 |   |
| Gain on sale of investments in commercial finance assets                                          |   |                      | (628     | ) |   |   | (1,956 | ) |   |   | (568 | ) |
| Gain on sale of assets                                                                            |   |                      | (1,041   | ) |   |   | (9,488 | ) |   |   | (3,974 | ) |
| Loss (gain) on sale of investment securities available-for-sale                                   |   |                      | 399      |   |   |   | − |   |   |   | (3,533 | ) |
| Deferred income tax benefits                                                                      |   |                      | (13,249  | ) |   |   | (16,031 | ) |   |   | (14,891 | ) |
| Non-cash compensation on long-term incentive plans                                                |   |                      | 4,651    |   |   |   | 5,572 |   |   |   | 2,695 |   |
| Non-cash compensation issued                                                                      |   |                      | 3        |   |   |   | 136 |   |   |   | 1,861 |   |
| Non-cash compensation received                                                                    |   |                      | (867     | ) |   |   | 159 |   |   |   | (1,404 | ) |
| (Increase) decrease in commercial finance investments, held for sale                              |   |                      | (37,330  | ) |   |   | 65,297 |   |   |   | 84,950 |   |
| Changes in operating assets and liabilities                                                       |   |                      | (19,016  | ) |   |   | (18,002 | ) |   |   | 8,278 |   |
| Net cash (used in) provided by operating activities ofcontinuing operations                       |   |                      | (41,156  | ) |   |   | 75,296 |   |   |   | 103,037 |   |
| CASH FLOWS FROM INVESTING ACTIVITIES:                                                             |   |                      |     |   |   |   |   |   |   |   |   |   |
| Capital expenditures                                                                              |   |                      | (335     | ) |   |   | (6,401 | ) |   |   | (5,441 | ) |
| Payments received on real estate loans and real estate                                            |   |                      | 10,052   |   |   |   | 23,182 |   |   |   | 17,501 |   |
| Investments in real estate                                                                        |   |                      | (4,694   | ) |   |   | (9,802 | ) |   |   | (20,917 | ) |
| Purchase of commercial finance assets held for investment                                         |   |                      | (41,942  | ) |   |   | (111,700 | ) |   |   | (180,205 | ) |
| Payments received on commercial finance assets held for investment                                |   |                      | 46,246   |   |   |   | 74,332 |   |   |   | 27,342 |   |
| Purchase of loans and investment securities                                                       |   |                      | (19,290  | ) |   |   | (251,585 | ) |   |   | (23,225 | ) |
| Proceeds from sale of loans and investment securities                                             |   |                      | 5,367    |   |   |   | 40,360 |   |   |   | 7,172 |   |
| Principal payments received on loans                                                              |   |                      | 4,061    |   |   |   | 13,931 |   |   |   | − |   |
| Net cash paid for acquisitions                                                                    |   |                      | −  |   |   |   | (8,022 | ) |   |   | (20,708 | ) |
| Other                                                                                             |   |                      | (477     | ) |   |   | (17,050 | ) |   |   | (2,862 | ) |
| Net cash used in investing activities of continuing operations                                    |   |                      | (1,012   | ) |   |   | (252,755 | ) |   |   | (201,343 | ) |
| CASH FLOWS FROM FINANCING ACTIVITIES:                                                             |   |                      |     |   |   |   |   |   |   |   |   |   |
| Increase in borrowings                                                                            |   |                      | 438,897  |   |   |   | 930,731 |   |   |   | 745,598 |   |
| Principal payments on borrowings                                                                  |   |                      | (395,905 | ) |   |   | (715,914 | ) |   |   | (649,055 | ) |
| Repayment from managed entity on RCC lease portfolio purchase                                     |   |                      | 4,500    |   |   |   | − |   |   |   | − |   |
| Distributions paid to minority interest holders                                                   |   |                      | (73      | ) |   |   | − |   |   |   | (2,368 | ) |
| Dividends paid                                                                                    |   |                      | (3,560   | ) |   |   | (4,908 | ) |   |   | (4,770 | ) |
| Decrease (increase) in restricted cash                                                            |   |                      | 10,297   |   |   |   | (31,194 | ) |   |   | (10,156 | ) |
| Proceeds from issuance of stock                                                                   |   |                      | 3        |   |   |   | 182 |   |   |   | 1,226 |   |
| Purchase of treasury stock                                                                        |   |                      | (264     | ) |   |   | (237 | ) |   |   | (5,368 | ) |
| Tax benefit from exercise of stock options                                                        |   |                      | −  |   |   |   | − |   |   |   | 2,090 |   |
| Other                                                                                             |   |                      | 2        |   |   |   | 315 |   |   |   | (611 | ) |
| Net cash provided by financing activities of continuing operations                                |   |                      | 53,897   |   |   |   | 178,975 |   |   |   | 76,586 |   |
| CASH FLOWS FROM DISCONTINUED OPERATIONS:                                                          |   |                      |     |   |   |   |   |   |   |   |   |   |
| Operating activities                                                                              |   |                      | (2       | ) |   |   | (494 | ) |   |   | (133 | ) |
| Financing activities                                                                              |   |                      | (440     | ) |   |   | (736 | ) |   |   | (1,145 | ) |
| Net cash used in discontinued operations                                                          |   |                      | (442     | ) |   |   | (1,230 | ) |   |   | (1,278 | ) |
| Increase (decrease) in cash                                                                       |   |                      | 11,287   |   |   |   | 286 |   |   |   | (22,998 | ) |
| Cash, beginning of year                                                                           |   |                      | 14,910   |   |   |   | 14,624 |   |   |   | 37,622 |   |
| Cash, end of year                                                                                 |   | $                         | 26,197   |   |   | $ | 14,910 |   |   | $ | 14,624 |   |

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|   | · | LEAF Financial Corporation (“LEAF”) sponsored and manages five investment entities and as the general and limited partner or managing member, originates and acts as the servicer of the leases and loans sold to these entities.  Four of these entities are publicly-held partnerships and one is a limited liability company that the Company consolidated through March 2009, but no longer consolidates;and |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Merit Capital Advance (“Merit”), a subsidiary that commenced operations in March 2007 and has substantially reduced its operations as of September 2009, provided capital to small businesses by advancing funds against their future credit card receipts.  The average advance is $25,000 and Merit secures its repayments by having its customer’s credit card receipts from its credit card processordeposited directly into Merit’s collection account. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Resource Capital Partners, Inc. acts as the general partner in all of the Company’s investment limited partnerships and provides asset management services to the entire portfolio; |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Resource Real Estate Management, Inc. (“Resource Residential”) provides property management services to the entire multifamily apartment portfolio, including fund assets, distressed assets and joint venture assets; |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Resource Real Estate Funding, Inc., on behalf of RCC, manages the commercial real estate debt portfolio comprised principally of A notes, whole mortgage loans, mortgage participations, B notes, mezzanine debt and related commercial real estate securities.  In addition, it manages a separate portfolio of discounted real estate and real estate loans; and |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Resource Real Estate manages loans, owned assets and ventures, which are collectively referred to as the “legacy portfolio.” |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------|

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|   | · | Apidos Capital Management, LLC (“Apidos”) finances, structures and manages investments in bank loans, high yield bonds and equity investments; |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Trapeza Capital Management, LLC (“TCM”), a joint venture between the Company and an unrelated third-party, originates, structures, finances and manages investments in trust preferred securities and senior debt securities of banks, bank holding companies, insurance companies and other financial companies.  TCM together with the Trapeza CDO issuers and Trapeza Partnerships are collectively referredto as "Trapeza"; |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Resource Capital Markets, Inc., through the Company’s registered broker-dealer subsidiary, Chadwick Securities, Inc., acts as an agent in the primary and secondary markets for trust preferred securities of banks, bank holding companies, insurance companies, other financial companies, real estate companies, REITS and other real estate related companies as well as securities of collateralized debt obligation(“CDO”) issuers; |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Resource Europe Management Ltd. structures and manages investments in international bank loans; |
|--------|--------|-------------------------------------------------------------------------------------------------|

|   | · | Resource Financial Institutions Group, Inc. serves as the general partner for six (one of which is currently in the offering stage) company-sponsored affiliated partnerships which invest in financial institutions; |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Ischus Capital Management, LLC finances, structures and manages investments in asset-backed securities (“ABS”), including residential mortgage-backed securities (“RMBS”) and commercial mortgage-backed securities (“CMBS”); and |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Resource Capital Manager, Inc., an indirect wholly-owned subsidiary, provides investment management and administrative services to RCC in accordance with a management agreement. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | · | security deposits, previously included in accrued expenses and other liabilities, were reclassified to investments in commercial finance assets held for investment, net and held for sale, net; |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | loss on sale of loans and impairment charges on investment securities were separately disclosed in the consolidated statements of operations; and |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | $1.9 million was reclassified from loss on sale of loans to provision for credit losses. |
|--------|--------|------------------------------------------------------------------------------------------|

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intangibles with finite lives are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and usedis measured by a comparison of the carrying amount of an asset to future undiscounted net cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. Assets to be disposed of are reported at the lower of the carrying amount or fair value less costs to sell. 

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|   | · | A two-step approach to determine whether or not a market is active and further provides that if a transaction is considered to be distressed, the entity should use it own judgment rather than relying on observable transactions within a market that is not active. |
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|   | · | An entity must recognize an OTTI only at the time at which it intends or is required to sell the asset prior to the recovery of its cost basis.  The guidance also changes the presentation of OTTI for debt securities that the entity does not intend to sell.  Impairments are separated into two components: (a) the amount of impairments related to credit losses and (b) and the amount relatedto other factors. The amount of impairment related to credit losses is reflected as a charge to earnings, while the amount deemed to be related to other factors is reflected as an adjustment to shareholders’ equity through other comprehensive income. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Disclosures about fair value of financial instruments are required in interim as well as in annual financial statements.  These disclosures are also required in summarized financial information at interim reporting periods. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|                                                                         |   | Years Ended September 30, |     |
|------------------------------------------------------------------------------|--------|---------------------------|----------|
|                                                                         |   | 2009                      |     |   | 2008 |   |   | 2007 |   |
| Cash paid for:                                                               |   |                      |     |   |   |   |   |   |   |
| Interest                                                                     |   | $                         | 18,975   |   |   | $ | 57,845 |   |   | $ | 18,929 |   |
| Income taxes                                                                 |   | $                         | 2,638    |   |   | $ | 3,880 |   |   | $ | 3,251 |   |
|                                                                         |   |                      |     |   |   |   |   |   |   |   |   |   |
| Non-cash activities include the following:                                   |   |                      |     |   |   |   |   |   |   |   |   |   |
| Fair value of warrants recorded as a discount to the Senior Notes            |   | $                         | 4,941    |   |   | $ | − |   |   | $ | − |   |
| Transfer of loans held for investment:                                       |   |                      |     |   |   |   |   |   |   |   |   |   |
| Reduction of loans held for investment                                       |   | $                         | −  |   |   | $ | 325,365 |   |   | $ | 418,801 |   |
| Termination of associated warehouse credit facilities                        |   | $                         | −  |   |   | $ | (337,276 | ) |   | $ | 418,284 |   |
| Activity on secured warehouse facilities related to bank loans:              |   |                      |     |   |   |   |   |   |   |   |   |   |
| Purchase of loans                                                            |   | $                         | −  |   |   | $ | (51,524 | ) |   | $ | (1,085,863 | ) |
| (Repayments of) borrowings to fund purchases of loans                        |   | $                         | −  |   |   | $ | (100,368 | ) |   | $ | 788,527 |   |
| Proceeds from sale of loans                                                  |   | $                         | −  |   |   | $ | 7,366 |   |   | $ | 280,970 |   |
| Principal payments on loans                                                  |   | $                         | −  |   |   | $ | 6,322 |   |   | $ | 60,896 |   |
| Use of funds held in escrow for purchases of loans                           |   | $                         | −  |   |   | $ | − |   |   | $ | 3,000 |   |
| (Loss) gain on sales of loans                                                |   | $                         | −  |   |   | $ | − |   |   | $ | (5,025 | ) |
| (Settlement) sale of loans traded, not settled, including use ofescrow funds |   | $                         | −  |   |   | $ | (152,706 | ) |   | $ | 152,706 |   |
| Acquisition of commercial finance assets (see Note 6):                       |   |                      |     |   |   |   |   |   |   |   |   |   |
| Commercial finance assets acquired                                           |   | $                         | −  |   |   | $ | 412,439 |   |   | $ | 67,816 |   |
| Purchase of building and other assets                                        |   | $                         | −  |   |   | $ | 7,835 |   |   | $ | 4,810 |   |
| Goodwill acquired                                                            |   | $                         | −  |   |   | $ | 28 |   |   | $ | 7,941 |   |
| Debt incurred for acquisitions                                               |   | $                         | −  |   |   | $ | (391,176 | ) |   | $ | (59,800 | ) |
| Liabilities assumed                                                          |   | $                         | −  |   |   | $ | (21,176 | ) |   | $ | − |   |
| Receipt of notes upon the resolution of real estate investments              |   | $                         | −  |   |   | $ | 1,500 |   |   | $ | − |   |
| Property received on foreclosure of a real estate loans:                     |   |                      |     |   |   |   |   |   |   |   |   |   |
| Investment in real estate loans                                              |   | $                         | (2,837   | ) |   | $ | − |   |   | $ | − |   |
| Investment in real estate owned                                              |   | $                         | 2,837    |   |   | $ | − |   |   | $ | − |   |
|                                                                         |   |                      |     |   |   |   |   |   |   |   |   |   |
| Non-cash effects from the deconsolidation of Apidos CDO VI and LCFF:    |   |                      |     |   |   |   |   |   |   |
| Cash                                                                         |   | $                         | 959      |   |   | $ | − |   |   | $ | − |   |
| Restricted cash                                                              |   | $                         | 10,651   |   |   | $ | − |   |   | $ | − |   |
| Due from affiliates                                                          |   | $                         | (8,410   | ) |   | $ | − |   |   | $ | − |   |
| Receivables                                                                  |   | $                         | (6,564   | ) |   | $ | − |   |   | $ | − |   |
| Loans held for investment                                                    |   | $                         | 229,097  |   |   | $ | − |   |   | $ | − |   |
| Investments in commercial finance-held for investment, net                   |   | $                         | 185,784  |   |   | $ | − |   |   | $ | − |   |
| Other assets                                                                 |   | $                         | 4,230    |   |   | $ | − |   |   | $ | − |   |
| Accrued expense and other liabilities                                        |   | $                         | (7,540   | ) |   | $ | − |   |   | $ | − |   |
| Borrowings                                                                   |   | $                         | (401,162 | ) |   | $ | − |   |   | $ | − |   |
| Equity                                                                       |   | $                         | (7,045   | ) |   | $ | − |   |   | $ | − |   |

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| Bank loans:                    |   |   |    |
|--------------------------------|--------|--------|---------|
| Principal                      |   | $      | 223,659 |   |
| Unamortized premium            |   |   | 226     |   |
| Unamortized discount           |   |   | (2,626  | ) |
|                           |   |   | 221,259 |   |
| Allowance for credit losses    |   |   | (1,595  | ) |
| Loans held for investment, net |   | $      | 219,664 |   |

|                                  |   | Years Ended September 30, |    |
|---------------------------------------|--------|---------------------------|---------|
|                                  |   | 2009                      |    |   | 2008 |   |
| Balance, beginning of year            |   | $                         | 1,595   |   |   | $ | − |   |
| Provision for credit losses           |   |                      | 1,738   |   |   |   | 2,622 |   |
| Charge-offs                           |   |                      | (715    | ) |   |   | (1,027 | ) |
| Reduction due to the sale of interest |   |                      | (2,618  | ) |   |   | − |   |
| Balance, end of year                  |   | $                         | − |   |   | $ | 1,595 |   |

|                                       |   | September 30, 2009  |    |   | September 30, 2008 |   |    |
|--------------------------------------------|--------|---------------------|---------|--------|--------------------|--------|---------|
|                                       |   | Held for Investment |    |   | Held for Sale      |   |    | Total |   |   | Held for Investment |   |   | Held for Sale |   |   | Total |
| Notes receivable (1)                  |   | $                   | 385     |   |               | $      | 60,441  |   |   | $ | 60,826 |   |   | $ | 125,904 |   |   | $ | 71,988 |   |   | $ | 197,892 |   |
| Direct financing leases, net               |   |                | 1,480   |   |               |   | 72,236  |   |   |   | 73,716 |   |   |   | 44,396 |   |   |   | 36,073 |   |   |   | 80,469 |   |
| Future payment card receivables, net       |   |                | 3,774   |   |               |   | − |   |   |   | 3,774 |   |   |   | 13,667 |   |   |   | − |   |   |   | 13,667 |   |
| Assets subject to operating leases,net (2) |   |                | − |   |               |   | 10,024  |   |   |   | 10,024 |   |   |   | 98 |   |   |   | 2,712 |   |   |   | 2,810 |   |
| Allowance for credit losses                |   |                | (3,210  | )      |               |   | − |   |   |   | (3,210 | ) |   |   | (1,750 | ) |   |   | − |   |   |   | (1,750 | ) |
| Investments in commercial finance, net     |   | $                   | 2,429   |   |               | $      | 142,701 |   |   | $ | 145,130 |   |   | $ | 182,315 |   |   | $ | 110,773 |   |   | $ | 293,088 |   |

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| (1) | The interest rates on notes receivable generally range from 8% to 15%. |
|-----|------------------------------------------------------------------------|

| (2) | Net of accumulated depreciation of $737,000 and $105,000 for commercial finance assets held for sale as of September 30, 2009 and 2008, respectively, and $0 and $28,000 for those commercial assets held for investment as of September 30, 2009 and 2008, respectively. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|                                           |   | September 30, 2009  |   |   | September 30, 2008 |   |
|------------------------------------------------|--------|---------------------|--------|--------|--------------------|--------|
|                                           |   | Held for Investment |   |   | Held for Sale      |   |   | Total |   |   | Held for Investment |   |   | Held for Sale |   |   | Total |   |
| Total future minimum lease paymentsreceivables |   | $                   | 1,959  |   |               | $      | 84,534 |   |   | $ | 86,493 |   |   | $ | 54,090 |   |   | $ | 44,286 |   |   | $ | 98,376 |   |
| Initial direct costs, net of amortization      |   |                | 6      |   |               |   | 1,157 |   |   |   | 1,163 |   |   |   | 549 |   |   |   | 1,289 |   |   |   | 1,838 |   |
| Unguaranteed residuals                         |   |                | 17     |   |               |   | 3,376 |   |   |   | 3,393 |   |   |   | 109 |   |   |   | 450 |   |   |   | 559 |   |
| Security deposits                              |   |                | (87    | )      |               |   | (69 | ) |   |   | (156 | ) |   |   | (2,336 | ) |   |   | (1,957 | ) |   |   | (4,293 | ) |
| Unearned income                                |   |                | (415   | )      |               |   | (16,762 | ) |   |   | (17,177 | ) |   |   | (8,016 | ) |   |   | (7,995 | ) |   |   | (16,011 | ) |
| Investments in direct financing leases,net     |   | $                   | 1,480  |   |               | $      | 72,236 |   |   | $ | 73,716 |   |   | $ | 44,396 |   |   | $ | 36,073 |   |   | $ | 80,469 |   |

|                          |   | Years Ended September 30, |   |
|-------------------------------|--------|---------------------------|--------|
|                          |   | 2009                      |   |   | 2008 |   |   | 2007 |   |
| Balance, beginning of year    |   | $                         | 1,750  |   |   | $ | 120 |   |   | $ | − |   |
| Provision for credit losses   |   |                      | 6,410  |   |   |   | 7,505 |   |   |   | 229 |   |
| Charge-offs                   |   |                      | (3,557 | ) |   |   | (6,099 | ) |   |   | (195 | ) |
| Recoveries                    |   |                      | 107    |   |   |   | 224 |   |   |   | 86 |   |
| Reduction due to sale of LCFF |   |                      | (1,500 | ) |   |   | − |   |   |   | − |   |
| Balance, end of year          |   | $                         | 3,210  |   |   | $ | 1,750 |   |   | $ | 120 |   |

|       |   | NotesReceivable |   |   | Direct Financing Leases |   |   | OperatingLeases (1) |   |
|------------|--------|-----------------|--------|--------|-------------------------|--------|--------|---------------------|--------|
| 2010       |   | $               | 26,720 |   |                    | $      | 23,056 |                |   | $ | 3,834 |   |
| 2011       |   |            | 11,549 |   |                    |   | 21,537 |                |   |   | 3,431 |   |
| 2012       |   |            | 10,074 |   |                    |   | 18,732 |                |   |   | 2,797 |   |
| 2013       |   |            | 7,576  |   |                    |   | 13,112 |                |   |   | 513 |   |
| 2014       |   |            | 4,620  |   |                    |   | 9,346  |                |   |   | 4 |   |
| Thereafter |   |            | 287    |   |                    |   | 710    |                |   |   | − |   |
|       |   | $               | 60,826 |   |                    | $      | 86,493 |                |   | $ | 10,579 |   |

|   | (1) | Operating lease amounts as shown are net of the residual value, if any, at the end of the lease term. |
|--------|-----|-------------------------------------------------------------------------------------------------------|

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|                                    |   | NetBank |     |   | Dolphin Capital Corp. |   |    | Total  |   |
|-----------------------------------------|--------|---------|----------|--------|-----------------------|--------|---------|--------|--------|
| Leases and loans                        |   | $       | 412,539  |   |                  | $      | − |   |   | $ | 412,539 |   |
| Other assets and property and equipment |   |    | 6,168    |   |                  |   | 1,667   |   |   |   | 7,835 |   |
| Liabilities assumed                     |   |    | (21,176  | )      |                  |   | − |   |   |   | (21,176 | ) |
| Borrowings under LEAF debt facilities   |   |    | (389,683 | )      |                  |   | (1,493  | )      |   |   | (391,176 | ) |
| Net cash paid for acquisitions          |   | $       | 7,848    |   |                  | $      | 174     |   |   | $ | 8,022 |   |

| Leases and loans                                                 |   | $      | 269,481  |   |
|------------------------------------------------------------------|--------|--------|----------|--------|
| Goodwill and customer list                                       |   |   | 12,701   |   |
| Borrowings under LEAF debt facility                              |   |   | (59,809  | )      |
| Leases and loans acquired by LEAF’s investment partnership |   |   | (201,665 | )      |
| Net cash paid for acquisition                                    |   | $      | 20,708   |   |

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|                                                        |   | September 30, |    |
|-------------------------------------------------------------|--------|---------------|---------|
|                                                        |   | 2009          |    |   | 2008 |   |
| Real estate loans:                                          |   |          |    |   |   |   |
| Balance, beginning of year                                  |   | $             | 17,413  |   |   | $ | 27,765 |   |
| New loans                                                   |   |          | − |   |   |   | 1,500 |   |
| Collection of principal                                     |   |          | (9,373  | ) |   |   | (9,180 | ) |
| Foreclosure                                                 |   |          | (2,837  | ) |   |   | − |   |
| Interest received                                           |   |          | (1,249  | ) |   |   | (4,221 | ) |
| Accreted and accrued interest income                        |   |          | 493     |   |   |   | 1,549 |   |
| Balance, end of year                                        |   |          | 4,447   |   |   |   | 17,413 |   |
| Less allowance for credit losses                            |   |          | (1,585  | ) |   |   | (1,129 | ) |
| Real estate loans, net                                      |   |          | 2,862   |   |   |   | 16,284 |   |
| Real estate:                                                |   |          |    |   |   |   |   |   |
| Ventures                                                    |   |          | 8,189   |   |   |   | 7,837 |   |
| Owned, net of accumulated depreciation of $3,212 and $2,515 |   |          | 16,262  |   |   |   | 13,851 |   |
| Total real estate                                           |   |          | 24,451  |   |   |   | 21,688 |   |
| Investments in real estate, net                             |   | $             | 27,313  |   |   | $ | 37,972 |   |

|                        |   | Years Ended September 30, |    |
|-----------------------------|--------|---------------------------|---------|
|                        |   | 2009                      |    |   | 2008 |   |   | 2007 |   |
| Balance, beginning of year  |   | $                         | 1,129   |   |   | $ | 629 |   |   | $ | 770 |   |
| Provision for credit losses |   |                      | 456     |   |   |   | 500 |   |   |   | − |   |
| Charge-offs                 |   |                      | − |   |   |   | − |   |   |   | (141 | ) |
| Balance, end of year        |   | $                         | 1,585   |   |   | $ | 1,129 |   |   | $ | 629 |   |

|                |   | Cost or Amortized Cost |   |   | Unrealized Gains |   |    | Unrealized Losses |   |   | Fair Value |   |
|---------------------|--------|------------------------|--------|--------|------------------|--------|---------|-------------------|--------|--------|------------|--------|
| September 30, 2009: |   |                   |   |   |             |   |    |              |   |   |       |   |
| CDO securities      |   | $                      | 9,777  |   |             | $      | 268     |              |   | $      | (1,800     | )      |   | $ | 8,245 |   |
| Equity securities   |   |                   | 30,180 |   |             |   | − |              |   |   | (18,925    | )      |   |   | 11,255 |   |
| Total               |   | $                      | 39,957 |   |             | $      | 268     |              |   | $      | (20,725    | )      |   | $ | 19,500 |   |
|                |   |                   |   |   |             |   |    |              |   |   |       |   |   |   |   |   |
| September 30, 2008: |   |                   |   |   |             |   |    |              |   |   |       |   |   |   |   |   |
| CDO securities      |   | $                      | 18,875 |   |             | $      | − |              |   | $      | (8,722     | )      |   | $ | 10,153 |   |
| Equity securities   |   |                   | 30,900 |   |             |   | − |              |   |   | (18,307    | )      |   |   | 12,593 |   |
| Total               |   | $                      | 49,775 |   |             | $      | − |              |   | $      | (27,029    | )      |   | $ | 22,746 |   |

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|                |   | Less than 12 Months |    |   | More than 12 Months |   |
|---------------------|--------|---------------------|---------|--------|---------------------|--------|
|                |   | Fair Value          |    |   | Unrealized Losses   |   |   | Number of Securities |   |   | Fair Value |   |   | Unrealized Losses |   |   | Number of Securities |   |
| September 30, 2009: |   |                |    |   |                |   |   |   |   |   |   |   |   |   |   |   |   |   |
| CDO securities      |   | $                   | − |   |                | $      | − |   |   |   | − |   |   | $ | 7,111 |   |   | $ | (1,800 | ) |   |   | 4 |   |
| Equity securities   |   |                | − |   |                |   | − |   |   |   | − |   |   |   | 11,255 |   |   |   | (18,925 | ) |   |   | 1 |   |
| Total               |   | $                   | − |   |                | $      | − |   |   |   | − |   |   | $ | 18,366 |   |   | $ | (20,725 | ) |   |   | 5 |   |
|                |   |                |    |   |                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| September 30, 2008: |   |                |    |   |                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| CDO securities      |   | $                   | − |   |                | $      | − |   |   |   | − |   |   | $ | 10,153 |   |   | $ | (8,722 | ) |   |   | 11 |   |
| Equity securities   |   |                | 591     |   |                |   | (583 | ) |   |   | 1 |   |   |   | 12,002 |   |   |   | (17,724 | ) |   |   | 1 |   |
| Total               |   | $                   | 591     |   |                | $      | (583 | )  |   |   | 1 |   |   | $ | 22,155 |   |   | $ | (26,446 | ) |   |   | 12 |   |

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|                                         |   | September 30, |    |   |   |
|----------------------------------------------|--------|---------------|---------|--------|--------|
|                                         |   | 2009          |    |   | 2008   |   | Partnership Interests |   |
| Real estate investment entities              |   | $             | 11,918  |   |   | $ | 10,422 |   | 3% to 11% |   |
| Financial fund management partnerships       |   |          | 3,429   |   |   |   | 4,927 |   | 5% to 10% |   |
| Commercial finance investment entities       |   |          | − |   |   |   | 1,636 |   | 1% to 6% |   |
| Trapeza entities (1)                    |   |          | 894     |   |   |   | 1,538 |   | 33% to 50% |   |
| Total investments in unconsolidated entities |   | $             | 16,241  |   |   | $ | 18,523 |   |   |   |

----

| (1) | Includes total write-downs to fair value of $164,000 and $23.2 million for fiscal 2009 and 2008, respectively.  These amounts are reflected as a reduction of financial fund management revenues. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                   |   | September 30, |   |
|----------------------------------------|--------|---------------|--------|
|                                   |   | 2009          |   |   | 2008 |   |
| Cash                                   |   | $             | 42     |   |   | $ | 103 |   |
| Property and equipment, net            |   |          | 2,868  |   |   |   | 3,111 |   |
| Other assets                           |   |          | 373    |   |   |   | 11 |   |
| Total assets                           |   | $             | 3,283  |   |   | $ | 3,225 |   |
|                                   |   |          |   |   |   |   |   |   |
| Accrued expenses and other liabilities |   | $             | 170    |   |   | $ | 56 |   |
| Borrowings                             |   |          | 1,057  |   |   |   | 1,227 |   |
| Total liabilities                      |   | $             | 1,227  |   |   | $ | 1,283 |   |

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|                                   |   | September 30, |   |
|----------------------------------------|--------|---------------|--------|
|                                   |   | 2009          |   |   | 2008 |   |
| Restricted cash                        |   | $             | 350    |   |   | $ | 130 |   |
| Loans held for investment, net         |   |          | 17,028 |   |   |   | 9,086 |   |
| Total assets                           |   | $             | 17,378 |   |   | $ | 9,216 |   |
|                                   |   |          |   |   |   |   |   |   |
| Accrued expenses and other liabilities |   | $             | 2,591  |   |   | $ | 31 |   |
| Borrowings                             |   |          | 19,068 |   |   |   | 9,213 |   |
| Total liabilities                      |   | $             | 21,659 |   |   | $ | 9,244 |   |

|                                                         |   | ApidosCDO VI |    |   | LCFF   |   |
|--------------------------------------------------------------|--------|--------------|---------|--------|--------|--------|
| Cash                                                         |   | $            | − |   |   | $      | 1,093 |   |
| Restricted cash                                              |   |         | 13,737  |   |   |   | 7,006 |   |
| Receivables                                                  |   |         | 1,164   |   |   |   | − |   |
| Loans held for investment, net                               |   |         | 220,326 |   |   |   | − |   |
| Investments in commercial finance - held for investment, net |   |         | − |   |   |   | 180,873 |   |
| Other assets                                                 |   |         | − |   |   |   | 2,953 |   |
| Total assets                                                 |   | $            | 235,227 |   |   | $      | 191,925 |   |
|                                                         |   |         |    |   |   |   |   |   |
| Accrued expenses and other liabilities                       |   | $            | 1,991   |   |   | $      | 17,484 |   |
| Borrowings (1)                                          |   |         | 213,321 |   |   |   | 173,813 |   |
| Total liabilities                                            |   | $            | 215,312 |   |   | $      | 191,297 |   |

----

| (1) | Apidos CDO VI senior notes were reflected net of unamortized deferred issuance costs of $4.5 million. |
|-----|-------------------------------------------------------------------------------------------------------|

|                                        |   | Estimated Useful |    |   | September 30, |   |
|---------------------------------------------|--------|------------------|---------|--------|---------------|--------|
|                                        |   | Lives            |    |   | 2009          |   |   | 2008 |   |
| Land                                        |   |             | − |   |          | $      | 200 |   |   | $ | 200 |   |
| Building                                    |   | 39 years         |    |   |          | 1,666  |   |   |   | 1,666 |   |
| Leasehold improvements                      |   | 1-15 years       |    |   |          | 6,185  |   |   |   | 6,228 |   |
| Real estate assets – consolidated VIE |   | 40 years         |    |   |          | 3,900  |   |   |   | 3,900 |   |
| Furniture and equipment                     |   | 3-10 years       |    |   |          | 12,699 |   |   |   | 12,394 |   |
|                                        |   |             |    |   |          |   | 24,650 |   |   |   | 24,388 |   |
| Accumulated depreciation and amortization   |   |             |    |   |          |   | (11,215 | ) |   |   | (7,502 | ) |
| Property and equipment, net                 |   |             |    |   |          | $      | 13,435 |   |   | $ | 16,886 |   |

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|                     |   |   | Estimated Useful |   | September 30, |   |
|--------------------------|--------|--------|------------------|--------|---------------|--------|
|                     |   |   | Lives            |   | 2009          |   |   | 2008 |   |
| Customer lists           |   |   | 10 years         |   | $             | 4,727  |   |   | $ | 4,727 |   |
| Accumulated amortization |   |   |             |   |          | (1,090 | ) |   |   | (398 | ) |
| Intangible assets, net   |   |   |             |   | $             | 3,637  |   |   | $ | 4,329 |   |

| 2010                                                        |   | $      | 809   |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|-------|--------|
| 2011                                                        |   |   | 836   |   |
| 2012                                                        |   |   | 699   |   |
| 2013                                                        |   |   | 459   |   |
| 2014                                                        |   |   | 310   |   |
| Thereafter                                                  |   |   | 524   |   |
|                                                                                                                                                                                                                                                                                                             |   | $      | 3,637 |   |

|                                 |   | As of September 30, |    |
|--------------------------------------|--------|---------------------|---------|
|                                 |   | 2009                |    |   | 2008 |   |
|                                 |   | Amount of Facility  |    |   | Amount Available |   |   | Borrowings Outstanding |   |   | Borrowings Outstanding |   |
| Commercial finance:                  |   |                |    |   |   |   |   |   |   |   |   |   |
| Secured revolving credit facilities: |   |                |    |   |   |   |   |   |   |   |   |   |
| PNC Bank                             |   | $                   | 150,000 |   |   | $ | 13,500 |   |   | $ | 136,500 |   |   | $ | 128,950 |   |
| Morgan Stanley                       |   |                | − |   |   |   | − |   |   |   | − |   |   |   | 140,369 |   |
| LCFF subordinated notes              |   |                | − |   |   |   | − |   |   |   | − |   |   |   | 3,416 |   |
| Subtotal − Commercial finance  |   | $                   | 150,000 |   |   |   | 13,500 |   |   |   | 136,500 |   |   |   | 272,735 |   |
|                                 |   |                |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Corporate:                           |   |                |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Secured revolving credit facilities: |   |                |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| TD Bank                              |   | $                   | 26,502  |   |   |   | − |   |   |   | 26,502 | (1) |   |   | 43,600 |   |
| Sovereign                            |   |                | 14,000  |   |   |   | − |   |   |   | 577 |   |   |   | 7,000 |   |
| Subtotal – Corporate           |   | $                   | 40,502  |   |   |   | − |   |   |   | 27,079 |   |   |   | 50,600 |   |
|                                 |   |                |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Senior notes (2)                |   |                |    |   |   |   |   |   |   |   | 10,629 |   |   |   | − |   |
|                                 |   |                |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Financial fund management:           |   |                |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Apidos CDO VI senior notes, net      |   |                |    |   |   |   |   |   |   |   | − |   |   |   | 213,321 |   |
|                                 |   |                |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other debt                           |   |                |    |   |   |   |   |   |   |   | 17,175 |   |   |   | 17,403 |   |
| Total borrowings outstanding         |   |                |    |   |   | $ | 13,500 |   |   | $ | 191,383 |   |   | $ | 554,059 |   |

----

| (1) | Does not reflect a $246,000 letter of credit which reduces availability on the TD facility. |
|-----|---------------------------------------------------------------------------------------------|

| (2) | The Company’s outstanding 12% senior notes are reflected net of an unamortized discount ($4.9 million at September 30, 2009) related to the fair value of the detachable warrants issued with the notes. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| 2010       |   | $      | 151,250 |   |
|------------|--------|--------|---------|--------|
| 2011       |   |   | 14,528  |   |
| 2012       |   |   | 28,598  |   |
| 2013       |   |   | 278     |   |
| 2014       |   |   | 271     |   |
| Thereafter |   |   | 1,399   |   |
|       |   | $      | 196,324 |   |

|   | · | a $250.0 million line of credit with Morgan Stanley.  The interest rate was based on one-month LIBOR plus 1.15%.  Weighted average borrowings for fiscal 2009 and 2008 were $67.5 million and $130.7 million, respectively, at an effective interest rate of 4.9%, and 6.0%, respectively.  The Company utilized interest rate swaps and caps on this facility to mitigate fluctuations in LIBOR;and |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | $9.4 million of LCFF fixed subordinated notes.  Weighted average borrowings for fiscal 2009 and 2008 were $2.6 million and $245,000, respectively, at an effective interest rate of 10.9% and 8.4%, respectively. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|                                                                                                          |   | Years Ended September 30, |    |
|---------------------------------------------------------------------------------------------------------------|--------|---------------------------|---------|
|                                                                                                          |   | 2009                      |    |   | 2008 |   |   | 2007 |   |
| Net (loss) income                                                                                             |   | $                         | (14,931 | ) |   | $ | (26,243 | ) |   | $ | 3,696 |   |
|                                                                                                          |   |                      |    |   |   |   |   |   |   |   |   |   |
| Other comprehensive (loss) income:                                                                            |   |                      |    |   |   |   |   |   |   |   |   |   |
| Unrealized losses on investment securities available-for-sale,net of tax of $(1,391), $(11,375) and $(11,908) |   |                      | (1,584  | ) |   |   | (21,134 | ) |   |   | (14,027 | ) |
| Less: reclassification for losses realized, net of tax of $3,484,$5,524 and $4,431                            |   |                      | 5,455   |   |   |   | 9,010 |   |   |   | 4,612 |   |
|                                                                                                          |   |                      | 3,871   |   |   |   | (12,124 | ) |   |   | (9,415 | ) |
| Minimum pension liability adjustment, net of tax of $(673), $(941)and $(245)                                  |   |                      | (569    | ) |   |   | (1,680 | ) |   |   | (256 | ) |
| Less:  reclassification for losses realized, net of tax of $84, $0 and $0                           |   |                      | 108     |   |   |   | − |   |   |   | − |   |
|                                                                                                          |   |                      | (461    | ) |   |   | (1,680 | ) |   |   | (256 | ) |
| Unrealized losses on hedging contracts, net of tax of $(2,256), $(1,101)and $(703)                            |   |                      | (1,374  | ) |   |   | (1,771 | ) |   |   | (732 | ) |
| Transfer of interest rate swaps and caps to affiliated entities, net of taxof $3,574, $0 and $0               |   |                      | 3,170   |   |   |   | − |   |   |   | − |   |
| Swap termination due to expiration, net of tax of $233, $0 and $0                                             |   |                      | 319     |   |   |   | − |   |   |   | − |   |
| Foreign currency translation (loss) gain                                                                      |   |                      | (280    | ) |   |   | (628 | ) |   |   | 924 |   |
| Comprehensive loss                                                                                            |   | $                         | (9,686  | ) |   | $ | (42,446 | ) |   | $ | (5,783 | ) |

|                                                                          |   | Investment securities available-for-sale |    |   | Cash flow hedges |   |   | Foreign currency translation adjustments |   |   | SERP pension liability |   |   | Total  |   |
|-------------------------------------------------------------------------------|--------|------------------------------------------|---------|--------|------------------|--------|--------|------------------------------------------|--------|--------|------------------------|--------|--------|--------|--------|
| Balance, September 30, 2007, net of taxof $(4,361), $(703), $0 and $(246)     |   | $                                        | (4,538  | )      |             | $      | (732   | )                                        |   | $      | 924                    |   |   | $      | (256   | ) |   | $ | (4,602 | ) |
| Changes during fiscal 2008                                                    |   |                                     | (12,124 | )      |             |   | (1,771 | )                                        |   |   | (628                   | )      |   |   | (1,680 | ) |   |   | (16,203 | ) |
| Balance, September 30, 2008, net of taxof $(10,202), $(1,804), $0 and (1,186) |   |                                     | (16,662 | )      |             |   | (2,503 | )                                        |   |   | 296                    |   |   |   | (1,936 | ) |   |   | (20,805 | ) |
| Changes during fiscal 2009                                                    |   |                                     | 3,871   |   |             |   | 2,115  |                                     |   |   | (280                   | )      |   |   | (461   | ) |   |   | 5,245 |   |
| Balance, September 30, 2009, net of taxof $(8,119), $(252), $0 and $(1,859)   |   | $                                        | (12,791 | )      |             | $      | (388   | )                                        |   | $      | 16                     |   |   | $      | (2,397 | ) |   | $ | (15,560 | ) |

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|                           |   | Years Ended September 30, |    |
|--------------------------------|--------|---------------------------|---------|
|                           |   | 2009                      |    |   | 2008 |   |   | 2007 |   |
| Current provision:             |   |                      |    |   |   |   |   |   |   |
| Federal                        |   | $                         | 2,270   |   |   | $ | 336 |   |   | $ | 11,015 |   |
| State                          |   |                      | 475     |   |   |   | − |   |   |   | 6,304 |   |
| Deferred benefit               |   |                      | (13,249 | ) |   |   | (16,031 | ) |   |   | (14,891 | ) |
| Income tax (benefit) provision |   | $                         | (10,504 | ) |   | $ | (15,695 | ) |   | $ | 2,428 |   |

|                                          |   | Years Ended September 30, |                                                       |
|-----------------------------------------------|--------|---------------------------|------------------------------------------------------------|
|                                          |   | 2009                      |                                                       |   | 2008 |   |   | 2007 |   |
| Statutory tax rate                            |   |                      |           35% |   |   |   |    35% |   |   |   |   35% |   |
| State and local taxes, net of federal benefit |   |                      |     5                                       |   |   |   |   5 |   |   |   |   5 |   |
| Deferred tax assets for net operating losses  |   |                      |        (5)                   |   |   |   |   1 |   |   |   |   (4) |   |
| Valuation allowance for deferred tax assets   |   |                      |     4                                       |   |   |   |   (4) |   |   |   | (14) |   |
| Non-deductible compensation                   |   |                      |     −                                 |   |   |   |   − |   |   |   |   5 |   |
| Equity compensation expense                   |   |                      |       (1)                         |   |   |   |   (1) |   |   |   |   6 |   |
| Other items                                   |   |                      |    4                                        |   |   |   |   3 |   |   |   |   (1) |   |
|                                          |   |                      |          42%  |   |   |   |    39% |   |   |   |     32% |   |

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|                                               |   | September 30, |    |
|----------------------------------------------------|--------|---------------|---------|
|                                               |   | 2009          |    |   | 2008 |   |
| Deferred tax assets related to:                    |   |          |    |   |   |   |
| Investments in partnership interests               |   | $             | 7,757   |   |   | $ | 11,013 |   |
| Capital loss carryforwards                         |   |          | 11,743  |   |   |   | − |   |
| Unrealized loss on investments                     |   |          | 11,955  |   |   |   | 14,827 |   |
| Provision for credit losses                        |   |          | 1,670   |   |   |   | 8,349 |   |
| Foreign, state and local loss carryforwards        |   |          | 6,533   |   |   |   | 6,909 |   |
| Employee stock options and restricted stock awards |   |          | 4,653   |   |   |   | 3,752 |   |
| Accrued expenses                                   |   |          | − |   |   |   | 1,213 |   |
| Investments in real estate assets                  |   |          | 2,310   |   |   |   | 422 |   |
| Gross deferred tax assets                          |   |          | 46,621  |   |   |   | 46,485 |   |
| Less:  valuation allowance               |   |          | (965    | ) |   |   | (2,018 | ) |
| Total deferred tax assets, net                     |   | $             | 45,656  |   |   | $ | 44,467 |   |
|  Deferred tax liabilities related to:         |   |          |    |   |   |   |   |   |
| Accrued expenses                                   |   | $             | (484    | ) |   | $ | − |   |
| Property and equipment basis differences           |   |          | (1,562  | ) |   |   | (1,060 | ) |
| Total deferred tax liabilities                     |   | $             | (2,046  | ) |   | $ | (1,060 | ) |

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|                                  |   | Years Ended September 30, |    |
|---------------------------------------|--------|---------------------------|---------|
|                                  |   | 2009                      |    |   | 2008 |   |   | 2007 |   |
| Shares (1)                       |   |                      |    |   |   |   |   |   |   |
| Basic shares outstanding              |   |                      | 17,835  |   |   |   | 17,518 |   |   |   | 17,467 |   |
| Dilutive effect of equity award plans |   |                      | − |   |   |   | − |   |   |   | 1,618 |   |
| Dilutive shares outstanding           |   |                      | 17,835  |   |   |   | 17,518 |   |   |   | 19,085 |   |

----

| (1) | For fiscal 2009, 2008 and 2007, the following were antidilutive and, therefore, excluded from the computation of Diluted EPS: (i) outstanding options to purchase 1,056,000, 982,000 and 527,000 shares of common stock at a weighted average price of $32.53, $29.84 and $17.84 per share, respectively, and (ii) 385,000, 555,000 and 200,000 shares of nonvested restricted stock at a weighted average price of $14.44, $15.53and $23.17 per share, respectively.  The option exercise prices and the restricted stock grant date prices for these equity awards were greater than the average market price of the Company’s common stock for the respective periods. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                |   | Years Ended September 30, |                     |
|-------------------------------------|--------|---------------------------|--------------------------|
|                                |   | 2008                      |                     |   | 2007 |   |
| Fair value of stock options granted |   | $                         | 3.49                     |   |   | $ | 10.50 |   |
| Expected life (years)               |   |                      | 6.3                      |   |   |   | 6.3 |   |
| Expected stock volatility           |   |                      |     47.4% |   |   |   |     30.1% |   |
| Risk-free interest rate             |   |                      |    3.9%        |   |   |   |    4.9% |   |
| Dividend yield                      |   |                      |    2.9%        |   |   |   |    1.8% |   |

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| Restricted stock – unearned performance awards |   |  Shares |     |
|------------------------------------------------------|--------|--------------|----------|
| Outstanding, beginning of year                       |   |         | 604,203  |   |
| Awarded                                              |   |         | 100,000  |   |
| Issued                                               |   |         | (20,625  | ) |
| Forfeited                                            |   |         | (423,214 | ) |
| Outstanding, end of year                             |   |         | 260,364  |   |

| Nonvested restricted performance stock |   |   |    |
|----------------------------------------|--------|--------|---------|
| Outstanding, beginning of year         |   |   | − |   |
| Awarded                                |   |   | 41,214  |   |
| Issued                                 |   |   | (20,625 | ) |
| Forfeited                              |   |   | − |   |
| Outstanding, end of year               |   |   | 20,589  |   |

|                            |   |   |      |   | Weighted |   |    | Weighted    |   |   |      |   |
|---------------------------------|--------|--------|-----------|--------|----------|--------|---------|-------------|--------|--------|-----------|--------|
|                            |   |   |      |   | Average  |   |    | Average     |   |   | Aggregate |   |
|                            |   |   |      |   | Exercise |   |    | Contractual |   |   | Intrinsic |   |
| Stock Options Outstanding       |   | Shares |      |   | Price    |   |    | Life        |   |   | Value     |   |
| Balance, beginning of year      |   |   | 3,373,199 |   |     | $      | 8.49    |        |   |   |      |   |   |   |
| Granted                         |   |   | −   |   |     | $      | − |        |   |   |      |   |   |   |
| Exercised                       |   |   | −   |   |     | $      | − |        |   |   |      |   |   |   |
| Forfeited                       |   |   | (834,583  | )      |     | $      | (6.82   | )           |   |   |      |   |   |   |
| Balance, end of year            |   |   | 2,538,616 |   |     | $      | 9.04    |        |   |   | 4.0       |   |   | $ | 1,325,000 |   |
|                            |   |   |      |   |     |   |    |        |   |   |      |   |   |   |   |   |
| Exercisable, September 30, 2009 |   |   | 2,434,679 |   |     | $      | 9.04    |        |   |   |      |   |   |   |   |   |
| Available for grant             |   |   | 449,865   | (1)    |     |   |    |        |   |   |      |   |   |   |   |   |

----

| (1) | Reduced for restricted stock awards granted, net of forfeitures, under the Company’s 2005 Plan. |
|-----|-------------------------------------------------------------------------------------------------------|

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|                               |   | Shares |     |   | Weighted Average Grant DateFair Value |   |
|------------------------------------|--------|--------|----------|--------|---------------------------------------|--------|
| Nonvested Stock Options            |   |   |     |   |                                  |   |
| Outstanding, beginning of year     |   |   | 260,185  |   |                                  | $      | 6.23 |   |
| Granted                            |   |   | −  |   |                                  | $      | − |   |
| Vested                             |   |   | (145,184 | )      |                                  | $      | (6.84 | ) |
| Exercised                          |   |   | −  |   |                                  | $      | − |   |
| Forfeited                          |   |   | (11,063  | )      |                                  | $      | − |   |
| Outstanding, end of year           |   |   | 103,938  |   |                                  | $      | 5.47 |   |
|                               |   |   |     |   |                                  |   |   |   |
| Nonvested Restricted Stock         |   |   |     |   |                                  |   |   |   |
| Outstanding, beginning of year     |   |   | 612,934  |   |                                  | $      | 15.29 |   |
| Granted                            |   |   | 225,839  |   |                                  | $      | 3.67 |   |
| Vested                             |   |   | (276,597 | )      |                                  | $      | (13.75 | ) |
| Forfeited                          |   |   | (9,715   | )      |                                  | $      | (14.55 | ) |
| Outstanding, end of year (1)  |   |   | 552,461  |   |                                  | $      | 11.32 |   |

----

| (1) | At September 30, 2009, includes 69,300 shares of nonvested restricted stock that do not have dividend equivalent rights and, therefore, are not included in the shares outstanding in the consolidated balance sheets. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Director Units                 |   | Shares |    |   | Weighted Average Grant DateFair Value |   |
|--------------------------------|--------|--------|---------|--------|---------------------------------------|--------|
| Outstanding, beginning of year |   |   | 158,640 |   |                                  | $      | 7.15 |   |
| Granted                        |   |   | 32,635  |   |                                  | $      | 4.14 |   |
| Shares issued upon termination |   |   | − |   |                                  | $      | − |   |
| Forfeited                      |   |   | − |   |                                  | $      | − |   |
| Outstanding, end of year       |   |   | 191,275 |   |                                  | $      | 6.63 |   |
|                           |   |   |    |   |                                  |   |   |   |
| Vested units                   |   |   | 147,756 |   |                                  | $      | 6.51 |   |
| Available for grant            |   |   | 65,251  |   |                                  |   |   |   |

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| Nonvested Director Units       |   | Shares |    |   | Weighted Average Grant DateFair Value |   |
|--------------------------------|--------|--------|---------|--------|---------------------------------------|--------|
| Outstanding, beginning of year |   |   | 18,561  |   |                                  | $      | 12.92 |   |
| Granted                        |   |   | 32,635  |   |                                  | $      | 4.14 |   |
| Vested                         |   |   | (7,677  | )      |                                  | $      | (8.79 | ) |
| Forfeited                      |   |   | − |   |                                  | $      | − |   |
| Outstanding, end of year       |   |   | 43,519  |   |                                  | $      | 8.61 |   |

|                              |   | Years Ended September 30, |   |
|-----------------------------------|--------|---------------------------|--------|
|                              |   | 2009                      |   |   | 2008 |   |   | 2007 |   |
| Interest cost                     |   | $                         | 484    |   |   | $ | 499 |   |   | $ | 518 |   |
| Expected return on plan assets    |   |                      | (53    | ) |   |   | (190 | ) |   |   | (210 | ) |
| Amortization of unrecognized loss |   |                      | 192    |   |   |   | − |   |   |   | − |   |
| Net cost                          |   | $                         | 623    |   |   | $ | 309 |   |   | $ | 308 |   |

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|                                                              |   | September 30, |   |
|-------------------------------------------------------------------|--------|---------------|--------|
|                                                              |   | 2009          |   |   | 2008 |   |
| Projected benefit obligation, beginning of year                   |   | $             | 6,472  |   |   | $ | 6,649 |   |
| Interest cost                                                     |   |          | 484    |   |   |   | 499 |   |
| Actuarial loss                                                    |   |          | 1,368  |   |   |   | 162 |   |
| Benefit payments                                                  |   |          | (838   | ) |   |   | (838 | ) |
| Projected benefit obligation, end of year                         |   | $             | 7,486  |   |   | $ | 6,472 |   |
|                                                              |   |          |   |   |   |   |   |   |
| Fair value of plan assets, beginning of year                      |   | $             | 884    |   |   | $ | 3,154 |   |
| Actual gain (loss) on plan assets                                 |   |          | 95     |   |   |   | (2,270 | ) |
| Fair value of plan assets, end of year                            |   | $             | 979    |   |   | $ | 884 |   |
|                                                              |   |          |   |   |   |   |   |   |
| Unfunded status                                                   |   | $             | (6,507 | ) |   | $ | (5,588 | ) |
| Unrecognized net actuarial loss                                   |   |          | 4,256  |   |   |   | 3,122 |   |
| Net accrued cost                                                  |   | $             | (2,251 | ) |   | $ | (2,466 | ) |
|                                                              |   |          |   |   |   |   |   |   |
| Amounts recognized in the consolidated balance sheets consist of: |   |          |   |   |   |   |   |   |
| Accrued benefit liability                                         |   | $             | (6,507 | ) |   | $ | (5,588 | ) |
| Accumulated other comprehensive loss                              |   |          | 2,397  | (1) |   |   | 1,936 | (1) |
| Deferred tax assets                                               |   |          | 1,859  |   |   |   | 1,186 |   |
| Net liability recognized                                          |   | $             | (2,251 | ) |   | $ | (2,466 | ) |

----

| (1) | The estimated net loss for the plan that is expected to be amortized from accumulated other comprehensive loss into net periodic pension benefit cost over the next fiscal year is $273,000.  The unrealized loss included in accumulated other comprehensive loss related to the SERP was $2.4 million and $1.9 million as of September 30, 2009 and 2008, respectively. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2010       |   | $      | 828   |   |
|------------|--------|--------|-------|--------|
| 2011       |   |   | 807   |   |
| 2012       |   |   | 785   |   |
| 2013       |   |   | 761   |   |
| 2014       |   |   | 735   |   |
| Thereafter |   |   | 2,043 |   |

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|                                                        |   | September 30, |    |
|-------------------------------------------------------------|--------|---------------|---------|
|                                                        |   | 2009          |    |   | 2008 |   |
| Receivables from managed entities and related parties, net: |   |          |    |   |   |   |
| Commercial finance investment entities (1)             |   | $             | 36,285  |   |   | $ | 22,844 |   |
| Financial fund management investment entities               |   |          | 3,523   |   |   |   | 4,151 |   |
| Real estate investment entities                             |   |          | 10,905  |   |   |   | 6,563 |   |
| RCC                                                         |   |          | 4,101   |   |   |   | 1,870 |   |
| Other                                                       |   |          | 233     |   |   |   | 246 |   |
| Receivables from managed entities and related parties       |   | $             | 55,047  |   |   | $ | 35,674 |   |
|                                                        |   |          |    |   |   |   |   |   |
| Payables due to managed entities and related parties, net:  |   |          |    |   |   |   |   |   |
| Real estate investment entities                             |   | $             | 1,284   |   |   | $ | 316 |   |
| Other                                                       |   |          | − |   |   |   | 270 |   |
| Payables to managed entities and related parties            |   | $             | 1,284   |   |   | $ | 586 |   |

----

| (1) | Reflects the $263,000 discount recorded in fiscal 2009 in connection with management fees and reimbursed expenses that the Company expects to receive in the future. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                                |   | Years Ended September 30, |    |
|---------------------------------------------------------------------|--------|---------------------------|---------|
|                                                                |   | 2009                      |    |   | 2008 |   |   | 2007 |   |
| Financial fund management - fees from managed entities (1)          |   | $                         | 3,105   |   |   | $ | 7,996 | (2) |   | $ | 13,215 |   |
| Real estate - fees from investment entities (3)                |   |                      | 11,343  |   |   |   | 9,407 |   |   |   | 9,216 |   |
| Commercial finance- fees from investment entities (4)               |   |                      | 20,168  |   |   |   | 35,193 |   |   |   | 17,048 |   |
| RCC:                                                                |   |                      |    |   |   |   |   |   |   |   |   |   |
| Management, incentive and servicing fees                            |   |                      | 8,181   |   |   |   | 7,480 |   |   |   | 8,963 |   |
| Reimbursement of expenses                                           |   |                      | 600     |   |   |   | 636 |   |   |   | 1,938 |   |
| Dividends                                                           |   |                      | 3,405   |   |   |   | 2,421 |   |   |   | 3,173 |   |
| Commitment fee                                                      |   |                      | 180     |   |   |   | − |   |   |   | − |   |
| Atlas Energy- reimbursement of net costs and expenses               |   |                      | 1,369   |   |   |   | 1,269 |   |   |   | 1,114 |   |
| 1845 Walnut Associates Ltd. - payment of rent andoperating expenses |   |                      | (475    | ) |   |   | (549 | ) |   |   | (492 | ) |
| 9 Henmar LLC - payment of broker and consulting fees                |   |                      | (81     | ) |   |   | (417 | ) |   |   | (455 | ) |
| Ledgewood P.C. - payment of fees for legal services                 |   |                      | (549    | ) |   |   | (1,255 | ) |   |   | (521 | ) |
| Anthem Securities:                                                  |   |                      |    |   |   |   |   |   |   |   |   |   |
| Payment of broker-dealer expenses                                   |   |                      | − |   |   |   | − |   |   |   | (826 | ) |
| Reimbursement of costs and expenses                                 |   |                      | − |   |   |   | − |   |   |   | 688 |   |

----

| (1) | For fiscal 2009, excludes a $1.7 million reduction in the Company’s clawback liability associated with two Trapeza partnerships.  For fiscal 2008 and 2007, excludes the non-cash incentive fee on the unrealized depreciation in the book value of Trapeza partnership securities totaling $11.2 million and $1.6 million, respectively. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Reflects a $2.3 million discount recorded in fiscal 2008 in connection with subordinate and incentive management fees that the Company expects to receive in the future. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | Reflects discounts of $394,000 and $956,000 recorded in fiscal 2009 and 2008, respectively, in connection with management fees that the Company expects to receive in the future. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4) | In 2009, the Company waived $425,000 of fund management fees from one of its investment entities. |
|-----|---------------------------------------------------------------------------------------------------|

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|                                                    |   | Years Ended September 30, |    |
|---------------------------------------------------------|--------|---------------------------|---------|
|                                                    |   | 2009                      |    |   | 2008 |   |   | 2007 |   |
| RCC dividend income                                     |   | $                         | 3,405   |   |   | $ | 2,421 |   |   | $ | 3,173 |   |
| (Loss) gain on sales of equity securities               |   |                      | (393    | ) |   |   | − |   |   |   | 3,533 |   |
| Interest income                                         |   |                      | 340     |   |   |   | 547 |   |   |   | 761 |   |
| Other (expense) income, net                             |   |                      | (196    | ) |   |   | 68 |   |   |   | 518 |   |
| Write-off of European real estate investment fund costs |   |                      | − |   |   |   | − |   |   |   | (4,775 | ) |
| Other income, net                                       |   | $                         | 3,156   |   |   | $ | 3,036 |   |   | $ | 3,210 |   |

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|                                     |   | Level 1 |    |   | Level 2 |   |    | Level 3 |   |   | Total  |   |
|------------------------------------------|--------|---------|---------|--------|---------|--------|---------|---------|--------|--------|--------|--------|
| Assets:                                  |   |    |    |   |    |   |    |    |   |   |   |   |
| Receivables from managed entities        |   | $       | − |   |    | $      | − |    |   | $      | 55,047 |   |   | $ | 55,047 |   |
| Investment securities available-for-sale |   |    | 11,255  |   |    |   | − |    |   |   | 8,245  |   |   |   | 19,500 |   |
| Total                                    |   | $       | 11,255  |   |    | $      | − |    |   | $      | 63,292 |   |   | $ | 74,547 |   |

|                                                                                      |   | Investment securities available-for-sale |    |   | Receivables from managed entities |   |
|-------------------------------------------------------------------------------------------|--------|------------------------------------------|---------|--------|-----------------------------------|--------|
| Balance, beginning of year                                                                |   | $                                        | 10,153  |   |                              | $      | 35,674 |   |
| Realized losses – impairment charges on investment securitiesincluded in operations |   |                                     | (8,466  | )      |                              |   | − |   |
| Discount                                                                                  |   |                                     | − |   |                              |   | (657 | ) |
| Advances and repayments, net                                                              |   |                                     | − |   |                              |   | 20,030 |   |
| Purchases, sales, issuances, and settlements, net                                         |   |                                     | (603    | )      |                              |   | − |   |
| Change in unrealized losses – included in accumulated othercomprehensive loss       |   |                                     | 7,161   |   |                              |   | − |   |
| Balance, end of year                                                                      |   | $                                        | 8,245   |   |                              | $      | 55,047 |   |

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|                                                               |   | Level 1 |    |   | Level 2 |   |    | Level 3 |   |   | Total   |   |
|--------------------------------------------------------------------|--------|---------|---------|--------|---------|--------|---------|---------|--------|--------|---------|--------|
| Assets:                                                            |   |    |    |   |    |   |    |    |   |   |    |   |
| Investments in commercial finance – impairedloans and leases |   | $       | − |   |    | $      | − |    |   | $      | 1,945   |   |   | $ | 1,945 |   |
| Investments in commercial finance –held for sale             |   |    | − |   |    |   | − |    |   |   | 142,701 |   |   |   | 142,701 |   |
| Total                                                              |   | $       | − |   |    | $      | − |    |   | $      | 144,646 |   |   | $ | 144,646 |   |
|                                                               |   |    |    |   |    |   |    |    |   |   |    |   |   |   |   |   |
| Liabilities:                                                       |   |    |    |   |    |   |    |    |   |   |    |   |   |   |   |   |
| Senior notes                                                       |   | $       | − |   |    | $      | 10,629  |    |   | $      | − |   |   | $ | 10,629 |   |

|                                                                                  |   | September 30, 2009 |    |   | September 30, 2008   |   |
|---------------------------------------------------------------------------------------|--------|--------------------|---------|--------|----------------------|--------|
|                                                                                  |   | Carrying Amount    |    |   | Estimated Fair Value |   |   | Carrying Amount |   |   | Estimated Fair Value |   |
| Assets(1)                                                                             |   |               |    |   |                 |   |   |   |   |   |   |   |
| Receivables from managed entities                                                     |   | $                  | 55,047  |   |                 | $      | 55,047 |   |   | $ | 35,674 |   |   | $ | 35,674 |   |
| Investments in commercial finance –held for investment − notes receivable |   |               | 385     |   |                 |   | 385 |   |   |   | 125,904 |   |   |   | 125,904 |   |
| Investments in real estate loans, net                                                 |   |               | 2,862   |   |                 |   | 823 |   |   |   | 16,284 |   |   |   | 16,957 |   |
| Loans held for investment                                                             |   |               | − |   |                 |   | − |   |   |   | 219,664 |   |   |   | 190,233 |   |
| Interest rate cap agreements                                                          |   |               | − |   |                 |   | − |   |   |   | 763 |   |   |   | 763 |   |
|                                                                                  |   | $                  | 58,294  |   |                 | $      | 56,255 |   |   | $ | 398,289 |   |   | $ | 369,531 |   |
| Borrowings(2)                                                                         |   |               |    |   |                 |   |   |   |   |   |   |   |   |   |   |   |
| Secured warehouse debt                                                                |   | $                  | − |   |                 | $      | − |   |   | $ | 213,321 |   |   | $ | 213,321 |   |
| Commercial finance debt                                                               |   |               | 136,500 |   |                 |   | 136,500 |   |   |   | 272,735 |   |   |   | 272,735 |   |
| Corporate secured revolving credit facilities                                         |   |               | 27,079  |   |                 |   | 27,079 |   |   |   | 50,600 |   |   |   | 50,600 |   |
| Real estate debt                                                                      |   |               | 13,198  |   |                 |   | 11,305 |   |   |   | 13,494 |   |   |   | 13,494 |   |
| Senior notes                                                                          |   |               | 10,629  |   |                 |   | 10,629 |   |   |   | − |   |   |   | − |   |
| Other debt                                                                            |   |               | 3,977   |   |                 |   | 3,977 |   |   |   | 3,909 |   |   |   | 3,909 |   |
|                                                                                  |   | $                  | 191,383 |   |                 | $      | 189,490 |   |   | $ | 554,059 |   |   | $ | 554,059 |   |
| Liabilities(3)                                                                        |   |               |    |   |                 |   |   |   |   |   |   |   |   |   |   |   |
| Interest rate swap contracts                                                          |   | $                  | − |   |                 | $      | − |   |   | $ | 4,244 |   |   | $ | 4,244 |   |

----

| (1) | The fair value of interest rate cap agreements was included in other assets. |
|-----|------------------------------------------------------------------------------|

| (2) | The carrying value of the Company’s floating rate debt approximates its fair value because of its short-term maturity and the variable interest rates in the debt agreements.  The carrying value of the Company’s fixed rate debt approximates its fair value due to its recent issuance. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | The fair value of interest rate swap agreements was included in accrued expenses and other liabilities. |
|-----|---------------------------------------------------------------------------------------------------------|

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|       |   | Operating |   |   | Capital |   |    | Total  |   |
|------------|--------|-----------|--------|--------|---------|--------|---------|--------|--------|
| 2010       |   | $         | 2,470  |   |    | $      | 359     |   |   | $ | 2,829 |   |
| 2011       |   |      | 1,885  |   |    |   | 269     |   |   |   | 2,154 |   |
| 2012       |   |      | 1,800  |   |    |   | 57      |   |   |   | 1,857 |   |
| 2013       |   |      | 1,452  |   |    |   | 41      |   |   |   | 1,493 |   |
| 2014       |   |      | 363    |   |    |   | 15      |   |   |   | 378 |   |
| Thereafter |   |      | 1,896  |   |    |   | − |   |   |   | 1,896 |   |
|       |   | $         | 9,866  |   |    | $      | 741     |   |   | $ | 10,607 |   |

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----

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|                                          |   | Years Ended September 30, |    |
|-----------------------------------------------|--------|---------------------------|---------|
|                                          |   | 2009                      |    |   | 2008 |   |   | 2007 |   |
| Loss from discontinued operations             |   | $                         | (370    | ) |   | $ | (1,104 | ) |   | $ | (2,095 | ) |
| Loss on disposal, net                         |   |                      | − |   |   |   | − |   |   |   | (329 | ) |
| (Provision) benefit for income taxes          |   |                      | (70     | ) |   |   | 386 |   |   |   | 848 |   |
| Loss from discontinued operations, net of tax |   | $                         | (440    | ) |   | $ | (718 | ) |   | $ | (1,576 | ) |

|                                          |   | Years Ended September 30, |   |
|-----------------------------------------------|--------|---------------------------|--------|
|                                          |   | 2009                      |   |   | 2008 |   |   | 2007 |   |
| Loss from discontinued operations             |   | $                         | (14    | ) |   | $ | (856 | ) |   | $ | (180 | ) |
| Benefit for income taxes                      |   |                      | 5      |   |   |   | 300 |   |   |   | 68 |   |
| Loss from discontinued operations, net of tax |   | $                         | (9     | ) |   | $ | (556 | ) |   | $ | (112 | ) |

|                                          |   | Years Ended September 30, |    |
|-----------------------------------------------|--------|---------------------------|---------|
|                                          |   | 2009                      |    |   | 2008 |   |   | 2007 |   |
| Loss from discontinued operations             |   | $                         | (377    | ) |   | $ | (1,999 | ) |   | $ | (2,275 | ) |
| Loss on disposal, net                         |   |                      | − |   |   |   | − |   |   |   | (129 | ) |
| (Provision) benefit for income taxes          |   |                      | (67     | ) |   |   | 700 |   |   |   | 846 |   |
| Loss from discontinued operations, net of tax |   | $                         | (444    | ) |   | $ | (1,299 | ) |   | $ | (1,558 | ) |

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----

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|                                                         |   | Commercial finance |    |   | Real estate |   |    | Financial fund management |   |   | All other (1) |   |   | Total  |    |
|--------------------------------------------------------------|--------|--------------------|---------|--------|-------------|--------|---------|---------------------------|--------|--------|---------------|--------|--------|--------|---------|
| Year Ended September 30, 2009                                |   |               |    |   |        |   |    |                      |   |   |          |   |   |   |    |
| Revenues from external customers                             |   | $                  | 50,528  |   |        | $      | 26,077  |                      |   | $      | 30,272        |   |   | $      | − |   |   | $ | 106,877 |   |
| Equity in (losses) earnings of unconsolidated entities       |   |               | (1,133  | )      |        |   | (660    | )                         |   |   | 3,072         |   |   |   | − |   |   |   | 1,279 |   |
| Total revenues                                               |   |               | 49,395  |   |        |   | 25,417  |                      |   |   | 33,344        |   |   |   | − |   |   |   | 108,156 |   |
| Segment operating expenses                                   |   |               | (25,179 | )      |        |   | (22,038 | )                         |   |   | (20,468       | )      |   |   | − |   |   |   | (67,685 | ) |
| General and administrative expenses                          |   |               | (409    | )      |        |   | (232    | )                         |   |   | (3,414        | )      |   |   | (10,314 | ) |   |   | (14,369 | ) |
| Provision for credit losses                                  |   |               | (6,410  | )      |        |   | (456    | )                         |   |   | (1,738        | )      |   |   | − |   |   |   | (8,604 | ) |
| Depreciation and amortization                                |   |               | (4,293  | )      |        |   | (1,370  | )                         |   |   | (398          | )      |   |   | (861    | ) |   |   | (6,922 | ) |
| Impairment losses on investment securities                   |   |               | − |   |        |   | − |                      |   |   | (9,667        | )      |   |   | (160    | ) |   |   | (9,827 | ) |
| Recognized in other comprehensive loss                       |   |               | − |   |        |   | − |                      |   |   | 1,201         |   |   |   | 87      |   |   |   | 1,288 |   |
| Net impairment losses recognized in earnings                 |   |               | − |   |        |   | − |                      |   |   | (8,466        | )      |   |   | (73     | ) |   |   | (8,539 | ) |
| Interest expense                                             |   |               | (10,524 | )      |        |   | (966    | )                         |   |   | (5,014        | )      |   |   | (3,695  | ) |   |   | (20,199 | ) |
| Minority interest income                                     |   |               | − |   |        |   | 54      |                      |   |   | 1,549         |   |   |   | − |   |   |   | 1,603 |   |
| Loss on sale of loans and investment securities, net         |   |               | − |   |        |   | − |                      |   |   | (11,588       | )      |   |   | − |   |   |   | (11,588 | ) |
| Other income (expense), net                                  |   |               | 79      |   |        |   | 75      |                      |   |   | 3,440         |   |   |   | (438    | ) |   |   | 3,156 |   |
| Income (loss) before intercompany interest expense and taxes |   |               | 2,659   |   |        |   | 484     |                      |   |   | (12,753       | )      |   |   | (15,381 | ) |   |   | (24,991 | ) |
| Intercompany interest (expense) income                       |   |               | (5,899  | )      |        |   | − |                      |   |   | −       |   |   |   | 5,899   |   |   |   | − |   |
| Income (loss) from continuing operations before taxes        |   | $                  | (3,240  | )      |        | $      | 484     |                      |   | $      | (12,753       | )      |   | $      | (9,482  | ) |   | $ | (24,991 | ) |
| Year Ended September 30, 2008                                |   |               |    |   |        |   |    |                      |   |   |          |   |   |   |    |   |   |   |   |   |
| Revenues from external customers                             |   | $                  | 97,214  |   |        | $      | 33,283  |                      |   | $      | 41,095        |   |   | $      | − |   |   | $ | 171,592 |   |
| Equity in losses of unconsolidated entities                  |   |               | (333    | )      |        |   | (1,764  | )                         |   |   | (13,559       | )      |   |   | − |   |   |   | (15,656 | ) |
| Total revenues                                               |   |               | 96,881  |   |        |   | 31,519  |                      |   |   | 27,536        |   |   |   | − |   |   |   | 155,936 |   |
| Segment operating expenses                                   |   |               | (42,741 | )      |        |   | (22,602 | )                         |   |   | (27,737       | )      |   |   | − |   |   |   | (93,080 | ) |
| General and administrative expenses                          |   |               | (425    | )      |        |   | (217    | )                         |   |   | (3,874        | )      |   |   | (11,564 | ) |   |   | (16,080 | ) |
| Provision for credit losses                                  |   |               | (7,505  | )      |        |   | (500    | )                         |   |   | (2,622        | )      |   |   | − |   |   |   | (10,627 | ) |
| Depreciation and amortization                                |   |               | (2,412  | )      |        |   | (1,093  | )                         |   |   | (257          | )      |   |   | (898    | ) |   |   | (4,660 | ) |
| Net impairment losses recognized in earnings                 |   |               | − |   |        |   | − |                      |   |   | (14,467       | )      |   |   | − |   |   |   | (14,467 | ) |
| Interest expense                                             |   |               | (27,466 | )      |        |   | (1,222  | )                         |   |   | (14,559       | )      |   |   | (4,019  | ) |   |   | (47,266 | ) |
| Minority interest (expense) income                           |   |               | (2,178  | )      |        |   | (61     | )                         |   |   | 6,482         |   |   |   | − |   |   |   | 4,243 |   |
| Loss on sale of loans and investment securities, net         |   |               | − |   |        |   | − |                      |   |   | (17,660       | )      |   |   | (14     | ) |   |   | (17,674 | ) |
| Other income (expense), net                                  |   |               | 352     |   |        |   | 288     |                      |   |   | 2,441         |   |   |   | (45     | ) |   |   | 3,036 |   |
| Income (loss) before intercompany interest expense and taxes |   |               | 14,506  |   |        |   | 6,112   |                      |   |   | (44,717       | )      |   |   | (16,540 | ) |   |   | (40,639 | ) |
| Intercompany interest (expense) income                       |   |               | (5,860  | )      |        |   | − |                      |   |   | −       |   |   |   | 5,860   |   |   |   | − |   |
| Income (loss) from continuing operations before taxes        |   | $                  | 8,646   |   |        | $      | 6,112   |                      |   | $      | (44,717       | )      |   | $      | (10,680 | ) |   | $ | (40,639 | ) |
| Year Ended September 30, 2007                                |   |               |    |   |        |   |    |                      |   |   |          |   |   |   |    |   |   |   |   |   |
| Revenues from external customers                             |   | $                  | 40,716  |   |        | $      | 22,808  |                      |   | $      | 49,284        |   |   | $      | − |   |   | $ | 112,808 |   |
| Equity in (losses) earnings of unconsolidated entities       |   |               | (24     | )      |        |   | 179     |                      |   |   | 13,805        |   |   |   | − |   |   |   | 13,960 |   |
| Total revenues                                               |   |               | 40,692  |   |        |   | 22,987  |                      |   |   | 63,089        |   |   |   | − |   |   |   | 126,768 |   |
| Segment operating expenses                                   |   |               | (19,501 | )      |        |   | (13,190 | )                         |   |   | (21,264       | )      |   |   | − |   |   |   | (53,955 | ) |
| General and administrative expenses (2)                      |   |               | (197    | )      |        |   | (164    | )                         |   |   | (3,461        | )      |   |   | (8,053  | ) |   |   | (11,875 | ) |
| Provision for credit losses                                  |   |               | (229    | )      |        |   | − |                      |   |   | −       |   |   |   | − |   |   |   | (229 | ) |
| Depreciation and amortization                                |   |               | (1,243  | )      |        |   | (692    | )                         |   |   | (103          | )      |   |   | (886    | ) |   |   | (2,924 | ) |
| Net impairment losses recognized in earnings                 |   |               | − |   |        |   | − |                      |   |   | (12,580       | )      |   |   | − |   |   |   | (12,580 | ) |
| Interest expense                                             |   |               | (11,796 | )      |        |   | (1,040  | )                         |   |   | (19,485       | )      |   |   | (1,245  | ) |   |   | (33,566 | ) |
| Minority interest expense                                    |   |               | (530    | )      |        |   | − |                      |   |   | (1,612        | )      |   |   | − |   |   |   | (2,142 | ) |
| Loss on sale of loans and investment securities, net         |   |               | − |   |        |   | − |                      |   |   | (5,025        | )      |   |   | − |   |   |   | (5,025 | ) |
| Other income, net                                            |   |               | 246     |   |        |   | 330     |                      |   |   | 2,414         |   |   |   | 220     |   |   |   | 3,210 |   |
| Income (loss) before intercompany interest expense and taxes |   |               | 7,442   |   |        |   | 8,231   |                      |   |   | 1,973         |   |   |   | (9,964  | ) |   |   | 7,682 |   |
| Intercompany interest (expense) income                       |   |               | (2,769  | )      |        |   | − |                      |   |   | (6,082        | )      |   |   | 8,851   |   |   |   | − |   |
| Income (loss) from continuing operations before taxes        |   | $                  | 4,673   |   |        | $      | 8,231   |                      |   | $      | (4,109        | )      |   | $      | (1,113  | ) |   | $ | 7,682 |   |

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|               |   | Commercial finance |    |   | Real estate |   |    | Financial fund management |   |   | All other (1) |   |   | Total  |    |
|--------------------|--------|--------------------|---------|--------|-------------|--------|---------|---------------------------|--------|--------|---------------|--------|--------|--------|---------|
| Segment assets     |   |               |    |   |        |   |    |                      |   |   |          |   |   |   |    |
| September 30, 2009 |   | $                  | 212,336 |   |        | $      | 148,903 |                      |   | $      | 34,596        |   |   | $      | (19,995 | ) |   | $ | 375,840 |   |
| September 30, 2008 |   | $                  | 356,671 |   |        | $      | 147,657 |                      |   | $      | 274,742       |   |   | $      | (20,713 | ) |   | $ | 758,357 |   |
| September 30, 2007 |   | $                  | 283,474 |   |        | $      | 144,790 |                      |   | $      | 557,839       |   |   | $      | (19,651 | ) |   | $ | 966,452 |   |

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

| (2) | In accordance with Company policy, certain corporate overhead expenses are allocated to the operating segments based on assets under management, which may be affected by, but not limited to, various market conditions.  Accordingly, the Company recorded no allocations of corporate overhead during the fourth quarter of fiscal 2007. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Quarterly results for fiscal 2009 (1)     |   | December 31 |    |   | March 31 |   |    | June 30 |   |   | September 30 |   |
|-------------------------------------------|--------|-------------|---------|--------|----------|--------|---------|---------|--------|--------|--------------|--------|
| Revenues                                  |   | $           | 32,193  |   |     | $      | 27,205  |    |   | $      | 22,629       |   |   | $ | 26,129 |   |
| Operating income (loss)                   |   | $           | 3,799   |   |     | $      | 3,921   |    |   | $      | (73          | )      |   | $ | 2,929 |   |
| (Loss) income from continuing operations  |   | $           | (3,295  | )      |     | $      | (11,470 | )       |   | $      | (126         | )      |   | $ | 404 |   |
| Net (loss) income                         |   | $           | (3,220  | )      |     | $      | (11,633 | )       |   | $      | (204         | )      |   | $ | 126 |   |
|                                      |   |        |    |   |     |   |    |    |   |   |         |   |   |   |   |   |
| Basic (loss) earnings per common share:   |   |        |    |   |     |   |    |    |   |   |         |   |   |   |   |   |
| Continuing operations                     |   | $           | (0.18   | )      |     | $      | (0.64   | )       |   | $      | (0.01        | )      |   | $ | 0.02 |   |
| Net (loss) income                         |   | $           | (0.18   | )      |     | $      | (0.65   | )       |   | $      | (0.01        | )      |   | $ | 0.01 |   |
|                                      |   |        |    |   |     |   |    |    |   |   |         |   |   |   |   |   |
| Diluted loss per common share:            |   |        |    |   |     |   |    |    |   |   |         |   |   |   |   |   |
| Continuing operations                     |   | $           | (0.18   | )      |     | $      | (0.64   | )       |   | $      | (0.01        | )      |   | $ | 0.02 |   |
| Net (loss) income                         |   | $           | (0.18   | )      |     | $      | (0.65   | )       |   | $      | (0.01        | )      |   | $ | 0.01 |   |
|                                      |   |        |    |   |     |   |    |    |   |   |         |   |   |   |   |   |
|                                      |   |        |    |   |     |   |    |    |   |   |         |   |   |   |   |   |
| Quarterly results for fiscal 2008(2)      |   | December 31 |    |   | March 31 |   |    | June 30 |   |   | September 30 |   |
| Revenues                                  |   | $           | 44,059  |   |     | $      | 50,380  |    |   | $      | 29,445       |   |   | $ | 32,052 |   |
| Operating income (loss)                   |   | $           | 15,402  |   |     | $      | 20,500  |    |   | $      | (905         | )      |   | $ | (3,508 | ) |
| (Loss) income from continuing operations  |   | $           | (10,866 | )      |     | $      | 2,090   |    |   | $      | (7,898       | )      |   | $ | (8,270 | ) |
| Net (loss) income                         |   | $           | (10,977 | )      |     | $      | 1,983   |    |   | $      | (8,025       | )      |   | $ | (9,224 | ) |
|                                      |   |        |    |   |     |   |    |    |   |   |         |   |   |   |   |   |
| Basic (loss) earnings per common share:   |   |        |    |   |     |   |    |    |   |   |         |   |   |   |   |   |
| Continuing operations                     |   | $           | (0.62   | )      |     | $      | 0.12    |    |   | $      | (0.45        | )      |   | $ | (0.47 | ) |
| Net (loss) income                         |   | $           | (0.63   | )      |     | $      | 0.11    |    |   | $      | (0.46        | )      |   | $ | (0.52 | ) |
|                                      |   |        |    |   |     |   |    |    |   |   |         |   |   |   |   |   |
| Diluted (loss) earnings per common share: |   |        |    |   |     |   |    |    |   |   |         |   |   |   |   |   |
| Continuing operations                     |   | $           | (0.62   | )      |     | $      | 0.12    |    |   | $      | (0.45        | )      |   | $ | (0.47 | ) |
| Net (loss) income                         |   | $           | (0.63   | )      |     | $      | 0.11    |    |   | $      | (0.46        | )      |   | $ | (0.52 | ) |

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| (1) | Fiscal 2009 |
|-----|-------------|

| -   | Quarter Ended December 31, 2008 – included a $4.4 million non-cash impairment charge taken on investments in CDO securities ($0.59 per share-diluted). |
|---------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------|

| -   | Quarter Ended March 31, 2009 – included an $11.6 million loss on the sale of bank loans ($0.70 per share diluted). |
|---------------|--------------------------------------------------------------------------------------------------------------------------|

| (2) | Fiscal 2008 |
|-----|-------------|

| -   | Quarter Ended December 31, 2007 – included an $18.3 million loss on the sale of bank loans ($1.05 per share diluted) in Europe and the United States in late January and early February 2008 as a result of the termination in January 2008 of two secured warehouse credit facilities the Company consolidated for which it had provided limited guarantees. |
|---------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| -   | Quarter Ended December 31, 2007 and June 30, 2008 and September 30, 2008 – included partnership level adjustments, primarily mark-to-market adjustments on investment partnerships that the Company manages,  of $6.7 million ($0.70 per share diluted), $11.0 million ($0.63 per share diluted) and $6.9 million ($0.37 per share diluted), respectively. |
|---------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| ITEM 9. | CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS |
|---------|-----------------------------------------------|
|    | ON ACCOUNTING AND FINANCIAL DISCLOSURE.       |

| ITEM 9A. | CONTROLS AND PROCEDURES. |
|----------|--------------------------|

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| ITEM 9B. | OTHER INFORMATION. |
|----------|--------------------|

| ITEM 10. | DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE. |
|----------|---------------------------------------------------------|

| ITEM 11. | EXECUTIVE COMPENSATION. |
|----------|-------------------------|

| ITEM 12. | SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND |
|----------|-----------------------------------------------------|
|     | MANAGEMENT AND RELATED STOCKHOLDER MATTERS.         |

| ITEM 13. | CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, |
|----------|-------------------------------------------------|
|     | AND DIRECTOR INDEPENDENCE.                      |

| ITEM 14. | PRINCIPAL ACCOUNTING FEES AND SERVICES. |
|----------|-----------------------------------------|

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| ITEM 15. | EXHIBITS AND FINANCIAL STATEMENT SCHEDULES. |
|----------|---------------------------------------------|

|   | 1. | Financial Statements |
|--------|----|----------------------|

|   |   | Report of Independent Registered Public Accounting Firm |
|--------|--------|---------------------------------------------------------|

|   | Consolidated Balance Sheets at September 30, 2009 and 2008 |
|--------|------------------------------------------------------------|

|   | Consolidated Statements of Operations for the years ended September 30, 2009, 2008 and 2007 |
|--------|---------------------------------------------------------------------------------------------|

|   | Consolidated Statements of Changes in Stockholders' Equity for the years ended |
|--------|--------------------------------------------------------------------------------|

|   | September 30, 2009, 2008 and 2007 |
|--------|-----------------------------------|

|   | Consolidated Statements of Cash Flows for the years ended September 30, 2009, 2008 and 2007 |
|--------|---------------------------------------------------------------------------------------------|

|   | Notes to Consolidated Financial Statements − September 30, 2009 |
|--------|-----------------------------------------------------------------------|

|   | 2. | Financial Statement Schedules |
|--------|----|-------------------------------|

|   | Schedule II – Valuation and Qualifying Accounts |
|--------|-------------------------------------------------------|

|   | Schedule III - Investments in Real Estate |
|--------|-------------------------------------------|

|   | Schedule IV – Investments in Mortgage Loans on Real Estate |
|--------|------------------------------------------------------------------|

|   | a) | Exhibits |
|--------|----|----------|

|   | Exhibit No. |   | Description                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|--------|-------------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | 3.1         |   | Restated Certificate of Incorporation of Resource America. (2)                                                                                                                                                                                                                                                                                                                                                                                    |
|   | 3.2         |   | Amended and Restated Bylaws of Resource America. (2)                                                                                                                                                                                                                                                                                                                                                                                              |
|   | 10.1(a)     |   | Loan and Security Agreement, dated May 24, 2007, between Resource America, Inc., Commerce Bank, N.A. and the other parties thereto. (3)                                                                                                                                                                                                                                                                                                           |
|   | 10.1(b)     |   | First Amendment and Joinder to Loan and Security Agreement, dated July 18, 2007. (4)                                                                                                                                                                                                                                                                                                                                                              |
|   | 10.1(c)     |   | Second Amendment and Joinder to Loan and Security Agreement, dated November 15, 2007. (4)                                                                                                                                                                                                                                                                                                                                                         |
|   | 10.1(d)     |   | Third Amendment to Loan and Security Agreement, dated August 7, 2008. (5)                                                                                                                                                                                                                                                                                                                                                                         |
|   | 10.1(e)     |   | Fourth Amendment to Loan and Security Agreement, dated September 30, 2008. (6)                                                                                                                                                                                                                                                                                                                                                                    |
|   | 10.1(f)     |   | Fifth Amendment to Loan and Security Agreement, dated December 19, 2008. (1)                                                                                                                                                                                                                                                                                                                                                                      |
|   | 10.1(g)     |   | Sixth Amendment to Loan and Security Agreement, dated March 26, 2009. (10)                                                                                                                                                                                                                                                                                                                                                                        |
|   | 10.1(h)     |   | Seventh Amendment to Loan and Security Agreement, dated May 15, 2009. (14)                                                                                                                                                                                                                                                                                                                                                                        |
|   | 10.1(i)     |   | Eighth Amendment to Loan and Security Agreement, dated November 6, 2009. (17)                                                                                                                                                                                                                                                                                                                                                                     |
|   | 10.2(a)     |   | Agreement of Purchase and Sale of Limited Liability Company Membership Interests between Resource America, Inc. and RSI Associates, LLC, dated February 21, 2008. (7)                                                                                                                                                                                                                                                                             |
|   | 10.2(b)     |   | First Amendment to Agreement of Purchase and Sale of Limited Liability Company Membership Interests between Resource America, Inc. and RSI Associates, LLC, dated March 2008. (7)                                                                                                                                                                                                                                                                 |
|   | 10.3        |   | Amended and Restated Employment Agreement between Michael S. Yecies and Resource America, Inc., dated December 29, 2008. (8)                                                                                                                                                                                                                                                                                                                      |
|   | 10.4        |   | Amended and Restated Employment Agreement between Thomas C. Elliott and Resource America, Inc., dated December 29, 2008. (8)                                                                                                                                                                                                                                                                                                                      |
|   | 10.5        |   | Amended and Restated Employment Agreement between Jeffrey F. Brotman and Resource America, Inc., dated December 29, 2008.. (8)                                                                                                                                                                                                                                                                                                                    |
|   | 10.6        |   | Amended and Restated Employment Agreement between Jonathan Z. Cohen and Resource America, Inc., dated December 29, 2008. (8)                                                                                                                                                                                                                                                                                                                      |
|   | 10.7        |   | Amended and Restated Employment Agreement between Steven J. Kessler and Resource America, Inc., dated December 29, 2008. (8)                                                                                                                                                                                                                                                                                                                      |
|   | 10.8(a)     |   | U.S. $250,000,000 Receivables Loan and Security Agreement, dated as of October 31, 2006, among Resource Capital Funding II, LLC, as the Borrower, and LEAF Financial Corporation, as the Servicer, and Morgan Stanley Bank, as a Lender and Collateral Agent, and U.S. Bank National Association, as the Custodian and the Lender’s Bank and LyonFinancial Services, Inc. (D/B/A U.S. Bank Portfolio Services), as the Backup Servicer. (9) |
|   | 10.8(b)     |   | First Amendment to Receivables Loan and Security Agreement, dated as of October 31, 2006. (9)                                                                                                                                                                                                                                                                                                                                                     |
|   | 10.8(c)     |   | Purchase and Sale Agreement, dated as of October 31, 2006. (9)                                                                                                                                                                                                                                                                                                                                                                                    |
|   | 10.8(d)     |   | First amendment to Purchase and Sale Agreement, dated as of December 21, 2006. (9)                                                                                                                                                                                                                                                                                                                                                                |
|   | 10.8(e)     |   | Fifth Amendment to Receivables Loan and Security Agreement, dated as of May 23, 2008. (5)                                                                                                                                                                                                                                                                                                                                                         |
|   | 10.8(f)     |   | Amended and Restated Fee Letter, dated May 23, 2008. (5)                                                                                                                                                                                                                                                                                                                                                                                          |
|   | 10.8(g)     |   | Sixth Amendment to Receivables Loan and Security Agreement, dated as of November 13, 2008. (8)                                                                                                                                                                                                                                                                                                                                                    |
|   | 10.9(a)     |   | Credit Agreement, dated July 31, 2006, by and among LEAF Financial Corporation, LEAF Funding, Inc. and National City Bank. (11)                                                                                                                                                                                                                                                                                                                   |
|   | 10.9(b)     |   | Guaranty and Suretyship Agreement by registrant and Resource Leasing, Inc. in favor of National City Bank. (11)                                                                                                                                                                                                                                                                                                                                   |
|   | 10.9(c)     |   | First Amendment to Credit Agreement, dated August 14, 2006, by and among LEAF Financial Corporation, LEAF Funding, Inc. and National City Bank. (12)                                                                                                                                                                                                                                                                                              |
|   | 10.9(d)     |   | Second Amendment to Credit Agreement, dated December 22, 2006, between LEAF Financial Corporation, LEAF Funding, Inc. and National City Bank. (9)                                                                                                                                                                                                                                                                                                 |

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|   | 10.9(e) |   | Third Amendment to Credit Agreement, dated March 14, 2007, between LEAF Financial Corporation, LEAF Funding, Inc. and National City Bank. (13)     |
|--------|---------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------|
|   | 10.9(f) |   | Seventh Amendment to Credit Agreement, dated July 31, 2009, between LEAF Financial Corporation, LEAF Funding, Inc. and National City Bank.         |
|   | 10.9(g) |   | Eighth Amendment to Credit Agreement, dated September 30, 2009, between LEAF Financial Corporation, LEAF Funding, Inc. and National City Bank.     |
|   | 10.10   |   | Note Purchase Agreement (including the form of Senior Note, form of Warrant and form of Registration Rights Agreement). (16)                       |
|   | 12.1    |   | Ratio of Earnings to Fixed Charges.                                                                                                                |
|   | 14.1    |   | Insider Trading Policy.(15)                                                                                                                        |
|   | 21.1    |   | Subsidiaries of Resource America, Inc.                                                                                                             |
|   | 23.1    |   | Consent of Grant Thornton LLP.                                                                                                                     |
|   | 31.1    |   | Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.                                                |
|   | 31.2    |   | Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.                                                |
|   | 32.1    |   | Certification of Chief Executive Officer pursuant to Section 1350 18 U.S.C., as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
|   | 32.2    |   | Certification of Chief Financial Officer pursuant to Section 1350 18 U.S.C., as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |

----

|   | (1) | Filed previously as an exhibit to our Current Report on Form 8-K filed on December 24, 2008 and by this reference incorporated herein. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------|

|   | (2) | Filed previously as an exhibit to our Quarterly Report on Form 10-Q for the quarter ended December 31, 1999 and by this reference incorporated herein. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (3) | Filed previously as an exhibit to our Current Report on Form 8-K filed on June 1, 2007 and by this reference incorporated herein. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------|

|   | (4) | Filed previously as an exhibit to our Annual Report on Form 10-K for the fiscal year ended September 30, 2007 and by this reference incorporated herein. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (5) | Filed previously as an exhibit to our Quarterly Report on Form 10-Q for the quarter ended June 30, 2008 and by this reference incorporated herein. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (6) | Filed previously as an exhibit to our Current Report on Form 8-K filed on October 6, 2008 and by this reference incorporated herein. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------|

|   | (7) | Filed previously as an exhibit to our Quarterly Report on Form 10-Q for the quarter ended March 31, 2008 and by this reference incorporated herein. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (8) | Filed previously as an exhibit to our Quarterly Report on Form 10-Q for the quarter ended December 31, 2008 and by this reference incorporated herein. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (9) | Filed previously as an exhibit to our Quarterly Report on Form 10-Q for the quarter ended December 31, 2006 and by this reference incorporated herein. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (10) | Filed previously as an exhibit to our Current Report on Form 8-K filed on March 27, 2009 and by this reference incorporated herein. |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------------|

|   | (11) | Filed previously as an exhibit to our Current Report on Form 8-K filed on August 4, 2006 and by this reference incorporated herein. |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------------|

|   | (12) | Filed previously as an exhibit to our Current Report on Form 8-K filed on August 17, 2006 and by this reference incorporated herein. |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------|

|   | (13) | Filed previously as an exhibit to our Quarterly Report on Form 10-Q for the quarter ended March 31, 2007 and by this reference incorporated herein. |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (14) | Filed previously as an exhibit to our Quarterly Report on Form 10-Q for the quarter ended March 31, 2009 and by this reference incorporated herein. |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (15) | Filed previously as an exhibit to our Current Report on Form 8-K filed on August 31, 2007 and by this reference incorporated herein. |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------|

|   | (16) | Filed previously as an exhibit to our Current Report on Form 8-K filed on October 1, 2009 and by this reference incorporated herein. |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------|

|   | (17) | Filed previously as an exhibit to our Current Report on Form 8-K filed on November 9, 2009 and by this reference incorporated herein. |
|--------|------|---------------------------------------------------------------------------------------------------------------------------------------|

(Back to Index)

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(Back to Index)

SIGNATURES

|              | RESOURCE AMERICA, INC.                |
|-------------------|---------------------------------------|
| December 11, 2009 | By:  /s/ Jonathan Z. Cohen  |
|              | Chief Executive Officer and President |

| /s/ Edward E. Cohen        |   | Chairman of the Board             | December 11, 2009 |
|----------------------------|--------|-----------------------------------|-------------------|
| EDWARD E. COHEN            |   |                              |              |
|                       |   |                              |              |
| /s/ Jonathan Z. Cohen      |   | Director, President               | December 11, 2009 |
| JONATHAN Z. COHEN          |   | and Chief Executive Officer       |              |
|                       |   | (Principal Executive Officer)     |              |
|                       |   |                              |              |
| /s/ Michael J. Bradley     |   | Director                          | December 11, 2009 |
| MICHAEL J. BRADLEY         |   |                              |              |
|                       |   |                              |              |
| /s/ Carlos C. Campbell     |   | Director                          | December 11, 2009 |
| CARLOS C. CAMPBELL         |   |                              |              |
|                       |   |                              |              |
| /s/ Kenneth A. Kind        |   | Director                          | December 11, 2009 |
| KENNETH A. KIND            |   |                              |              |
|                       |   |                              |              |
| /s/ Hersh Kozlov           |   | Director                          | December 11, 2009 |
| HERSH KOZLOV               |   |                              |              |
|                       |   |                              |              |
| /s/ Andrew M. Lubin        |   | Director                          | December 11, 2009 |
| ANDREW M. LUBIN            |   |                              |              |
|                       |   |                              |              |
| /s/ John S. White          |   | Director                          | December 11, 2009 |
| JOHN S. WHITE              |   |                              |              |
|                       |   |                              |              |
| /s/ Steven J. Kessler      |   | Executive Vice President          | December 11, 2009 |
| STEVEN J. KESSLER          |   | and Chief Financial Officer       |              |
|                       |   | (Principal Financial Officer)     |              |
|                       |   |                              |              |
| /s/ Arthur J. Miller  |   | Vice President                    | December 11, 2009 |
| ARTHUR J. MILLER           |   | and Chief Accounting Officer |              |
|                       |   | (Principal Accounting Officer)    |              |

(Back to Index)

----

(Back to Index)

Resource America, Inc. 

Schedule II 

|                                                     |   | Balance at Beginning of Year |    |   | Additions Charged to Costs and Expenses |   |    | Amounts Written-off Against the Allowance |   |   | Balance at End of Year |   |
|----------------------------------------------------------|--------|------------------------------|---------|--------|-----------------------------------------|--------|---------|-------------------------------------------|--------|--------|------------------------|--------|
| Allowance for investments in real estate loans:          |   |                         |    |   |                                    |   |    |                                      |   |   |                   |   |
| September 30, 2009                                       |   | $                            | 1,129   |   |                                    | $      | 456     |                                      |   | $      | −                |   |   | $ | 1,585 |   |
| September 30, 2008                                       |   | $                            | 629     |   |                                    | $      | 500     |                                      |   | $      | −                |   |   | $ | 1,129 |   |
| September 30, 2007                                       |   | $                            | 770     |   |                                    | $      | − |                                      |   | $      | (141                   | )      |   | $ | 629 |   |
|                                                     |   |                         |    |   |                                    |   |    |                                      |   |   |                   |   |   |   |   |   |
| Allowance for investments in commercial finance assets:  |   |                         |    |   |                                    |   |    |                                      |   |   |                   |   |   |
| September 30, 2009                                       |   | $                            | 1,750   |   |                                    | $      | 6,410   |                                      |   | $      | (4,950                 | ) (1)  |   | $ | 3,210 |   |
| September 30, 2008                                       |   | $                            | 120     |   |                                    | $      | 7,505   |                                      |   | $      | (5,875                 | )      |   | $ | 1,750 |   |
| September 30, 2007                                       |   | $                            | − |   |                                    | $      | 229     |                                      |   | $      | (109                   | )      |   | $ | 120 |   |
|                                                     |   |                         |    |   |                                    |   |    |                                      |   |   |                   |   |   |   |   |   |
| Allowance for investments in loans held for investments: |   |                         |    |   |                                    |   |    |                                      |   |   |                   |   |   |
| September 30, 2009                                       |   | $                            | 1,595   |   |                                    | $      | 1,738   |                                      |   | $      | (3,333                 | ) (2)  |   | $ | − |   |
| September 30, 2008                                       |   | $                            | − |   |                                    | $      | 2,622   |                                      |   | $      | (1,027                 | )      |   | $ | 1,595 |   |
| September 30, 2007                                       |   | $                            | − |   |                                    | $      | − |                                      |   | $      | −                |   |   | $ | − |   |

----

| (1) | Includes $1.5 million reduction due to the sale of LCFF. |
|-----|----------------------------------------------------------|

| (2) | Includes $2.6 million reduction due to the sale of Apidos CDO VI. |
|-----|-------------------------------------------------------------------|

(Back to Index)

----

(Back to Index)

SCHEDULE III

| Column A                                                 |   | Column B     |    | Column C                        |   | Column D                                   |   | Column E                                         |    | Column F                 |   | Column G             |   | Column H      |   | Column I                                                |
|----------------------------------------------------------|--------|--------------|---------|---------------------------------|--------|--------------------------------------------|--------|--------------------------------------------------|---------|--------------------------|--------|----------------------|--------|---------------|--------|---------------------------------------------------------|
| Description                                              |   | Encumbrances |    | Initial cost to Company         |   | Cost capitalized subsequent to acquisition |   | Gross Amount at which carried at close of period |    | Accumulated Depreciation |   | Date of Construction |   | Date Acquired |   | Life on which depreciation in latest income is computed |
|                                                     |   |         |    | Buildings and Land Improvements |   | Improvements Carrying Costs                |   | Buildings and Land Improvements Total            |    |                     |   |                 |   |          |   |                                                    |
| Real estate owned:                                       |   |         |    |                            |   |                                       |   |                                             |    |                     |   |                 |   |          |   |                                                    |
|    Hotel    Savannah, GA   |   | $            | 12,141  |                            | $      | 10,187                                     |   | $                                                | 2,114   |                     | $      | 16,519               |   | $             | 3,155  |                                                    |   | 1853 |   | 6/30/2005 |   | 40 years |
|                                                     |   |         |    |                            |   |                                       |   |                                             |    |                     |   |                 |   |          |   |                                                    |   |   |   |   |   |   |
| Commercial    Philadelphia, PA       |   |         | − |                            |   | 2,874                                      |   |                                             | 82      |                     |   | 2,956                |   |          | 56     |                                                    |   | 1924 |   | 1/9/2009 |   | 37 years |
|                                                     |   |         |    |                            |   |                                       |   |                                             |    |                     |   |                 |   |          |   |                                                    |   |   |   |   |   |   |
| Office Building    Moberly, MI       |   |         | 1,472   |                            |   | 1,866                                      |   |                                             | − |                     |   | 1,866                |   |          | 80     |                                                    |   | 1998 |   | 11/30/2007 |   | 39 years |
|                                                     |   |         |    |                            |   |                                       |   |                                             |    |                     |   |                 |   |          |   |                                                    |   |   |   |   |   |   |
| Assets of consolidatedvariable interest entities (a):    |   |         |    |                            |   |                                       |   |                                             |    |                     |   |                 |   |          |   |                                                    |   |   |   |   |   |   |
| Commercial Retail    St. Cloud, MI   |   |         | − |                            |   | 2,300                                      |   |                                             | − |                     |   | 2,300                |   |          | 633    |                                                    |   | 1970 |   | 7/01/2003 |   | 40 years |
|                                                     |   |         |    |                            |   |                                       |   |                                             |    |                     |   |                 |   |          |   |                                                    |   |   |   |   |   |   |
| Commercial Retail    Elkins West, WV |   |         | 1,057   |                            |   | 1,600                                      |   |                                             | − |                     |   | 1,600                |   |          | 400    |                                                    |   | 1963 |   | 7/01/2003 |   | 40 years |
|                                                     |   |         |    |                            |   |                                       |   |                                             |    |                     |   |                 |   |          |   |                                                    |   |   |   |   |   |   |
|                                                     |   | $            | 14,670  |                            | $      | 18,827                                     |   | $                                                | 2,196   |                     | $      | 25,241               |   | $             | 4,324  |                                                    |   |   |   |   |   |   |

----

| (a) | Balances as of June 30, 2009 due to one-quarter lag reporting. |
|-----|----------------------------------------------------------------|

|                                   |   | Years Ended September 30, |    |
|----------------------------------------|--------|---------------------------|---------|
|                                   |   | 2009                      |    |   | 2008 |   |   | 2007 |   |
| Balance at the beginning of the period |   | $                         | 22,132  |   |   | $ | 19,410 |   |   | $ | 19,545 |   |
| Additions during period:               |   |                      |    |   |   |   |   |   |   |   |   |   |
| Acquired through foreclosure           |   |                      | 2,874   |   |   |   | − |   |   |   | − |   |
| Improvements, etc.                     |   |                      | 235     |   |   |   | 2,722 |   |   |   | 1,249 |   |
| Other – basis adjustments        |   |                      | − |   |   |   | − |   |   |   | (91 | ) |
|                                   |   |                      | 25,241  |   |   |   | 22,132 |   |   |   | 20,703 |   |
| Deductions during the period:          |   |                      |    |   |   |   |   |   |   |   |   |   |
| Cost of real estate sold               |   |                      | − |   |   |   | − |   |   |   | 919 |   |
| Other − write-down               |   |                      | − |   |   |   | − |   |   |   | 374 |   |
| Balance at close of period             |   | $                         | 25,241  |   |   | $ | 22,132 |   |   | $ | 19,410 |   |

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----

(Back to Index)

SCHEDULE IV

| Column A                              |   | Column B                  |   | Column C            |   | Column D              |   | Column E    |    |   | Column F                 |   |   | Column G                     |   |   | Column H                                                              |   |
|---------------------------------------|--------|---------------------------|--------|---------------------|--------|-----------------------|--------|-------------|---------|--------|--------------------------|--------|--------|------------------------------|--------|--------|-----------------------------------------------------------------------|--------|
| Description                           |   | Interest rate             |   | Final maturity date |   | Periodic payment term |   | Prior liens |    |   | Face amount of mortgages |   |   | Carrying amount of mortgages |   |   | Principal amount of loans subject to delinquent principal or interest |   |
| Second Lien Loans                     |   |                      |   |                |   |                  |   |        |    |   |                     |   |   |                         |   |   |                                                                  |   |
|                                  |   |                      |   |                |   |                  |   |        |    |   |                     |   |   |                         |   |   |                                                                  |   |
| Office building,Washington, DC        |   | Fixed interest rate of 8% |   | 8/1/2018            |   | (a)                   |   | $           | − |   |                     | $      | 40,987 |                         |   | $      | 2,815                                                                 |   |   | $ | − |   |
|                                  |   |                      |   |                |   |                  |   |        |    |   |                     |   |   |                         |   |   |                                                                  |   |   |   |   |   |
| Office building,Omaha, NE             |   | Fixed interest rate of 8% |   | 8/31/2011           |   | Monthly               |   |        | − |   |                     |   | 70     |                         |   |   | 47                                                                    |   |   |   | − |   |
|                                  |   |                      |   |                |   |                  |   |        |    |   |                     |   |   |                         |   |   |                                                                  |   |   |   |   |   |
| Multifamily unit,Seabrook Village, NJ |   | Fixed interest rate of 6% |   | 11/30/2012          |   | (a)                   |   |        | − |   |                     |   | 1,585  |                         |   |   | 1,585                                                                 |   |   |   | − |   |
|                                  |   |                      |   |                |   |                  |   | $           | − |   |                     | $      | 42,642 |                         |   | $      | 4,447                                                                 |   |   | $ | − |   |

----

| (a) | No current payments. |
|-----|----------------------|

|                             |   |   | Years Ended September 30, |    |
|----------------------------------|--------|--------|---------------------------|---------|
|                             |   |   | 2009                      |    |   | 2008 |   |   | 2007 |   |
| Balance, beginning of the period | (b)    |   | $                         | 15,869  |   |   | $ | 27,759 |   |   | $ | 28,584 |   |
|   Additions:           |   |   |                      |    |   |   |   |   |   |   |   |   |   |
| New loans                        |   |   |                      | − |   |   |   | − |   |   |   | 1,597 |   |
| Additions to existing loans      |   |   |                      | − |   |   |   | − |   |   |   | 42 |   |
| Other                            | (b)    |   |                      | 266     |   |   |   | 4,795 |   |   |   | 760 |   |
|                             |   |   |                      | 16,135  |   |   |   | 32,554 |   |   |   | 30,983 |   |
|                             |   |   |                      |    |   |   |   |   |   |   |   |   |   |
|   Deductions:          |   |   |                      |    |   |   |   |   |   |   |   |   |   |
| Foreclosed loans                 |   |   |                      | 2,837   |   |   |   | − |   |   |   | − |   |
| Collections of principal         | (b)    |   |                      | 8,851   |   |   |   | 16,685 |   |   |   | 3,224 |   |
|                             |   |   |                      | 11,688  |   |   |   | 16,685 |   |   |   | 3,224 |   |
| Balance, end of the period       |   |   | $                         | 4,447   |   |   | $ | 15,869 |   |   | $ | 27,759 |   |

----

| (b) | This balance does not include a note receivable, which is not a mortgage, relating to a partial sale of our interest in a real estate venture.  This note receivable was paid off during fiscal 2009. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----