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| Delaware                                                                                                  |               | 72-0654145                                     |
|----------------------------------------------------------------------------------------------------------------|--------------------|------------------------------------------------|
| (State      or other  jurisdictionof      incorporation or organization)                             |               | (I.R.S.      EmployerIdentification      No.)  |
|                                                                                                           |               |                                           |
| One      Crescent Drive, Suite 203Navy      Yard Corporate CenterPhiladelphia,      PA     |               | 19112                                          |
| (Address      of principal executive offices)                                                                  |               | (Zip      Code)                                |
| Registrant’s      telephone number, including area code:                                            |  215-546-5005 |                                           |
| Securities      registered pursuant to Section 12(b) of the Act:                                               |
|                                                                                                           |               |                                           |
| Title of each      class                                                                                       |               | Name of each exchange      on which registered |
| None                                                                                                           |               | None                                           |

| Large      accelerated filer            ¨           |                                               | Accelerated      filer                                   x |
|----------------------------------------------------------------------------------------------------------------------|----------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Non-accelerated      filer              ¨ | (Do      not check if a smaller reporting Company) | Smaller      reporting      company                      ¨                                                                                           |

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INDEX

|          |     | Page                                                                                                                        |
|---------------|----------|-----------------------------------------------------------------------------------------------------------------------------|
| PART      I   |     |                                                                                                                        |
|          | Item 1:  | Business                                                                                                                    |  3 − 10 |
|          | Item 1A: | Risk Factors                                                                                                                |  11 − 15 |
|          | Item 1B: | Unresolved Staff Comments                                                                                                   |  16 |
|          | Item 2:  | Properties                                                                                                                  |  16 |
|          | Item 3:  | Legal Proceedings                                                                                                           |  16 |
|          | Item 4:  | Submission of Matters to a Vote of Security      Holders                                                                    |  16 |
|          |     |                                                                                                                        |   |
| PART      II  |     |                                                                                                                        |
|          | Item 5:  | Market      for Registrant's Common Equity, Related Stockholder Matters and      Issuer      Purchases of Equity Securities |  17 − 18 |
|          | Item 6:  | Selected Financial Data                                                                                                     |  19 |
|          | Item 7:  | Management’s      Discussion and Analysis of Financial Condition and Results      of Operations                       |  20 − 42 |
|          | Item 7A: | Quantitative and Qualitative Disclosures About Market      Risk                                                             |  43 − 44 |
|          | Item 8:  | Financial Statements and Supplementary    Data                                                                              |  45 − 90 |
|          | Item 9:  | Changes      in and Disagreements with Accountants on Accounting and Financial      Disclosure                              |  91 |
|          | Item 9A: | Controls and Procedures                                                                                                     |  91 − 92 |
|          | Item 9B: | Other Information                                                                                                           |  93 |
|          |     |                                                                                                                        |   |
| PART      III |     |                                                                                                                        |
|          | Item 10: | Directors and Executive Officers of the      Registrant                                                                     |  93 |
|          | Item 11: | Executive Compensation                                                                                                      |  93 |
|          | Item 12: | Security      Ownership of Certain Beneficial Owners and Management and Related      Stockholder Matters                    |  93 |
|          | Item 13: | Certain Relationships and Related      Transactions                                                                         |  93 |
|          | Item 14: | Principal Accounting Fees and Services                                                                                      |  93 |
|          |     |                                                                                                                        |   |
| PART      IV  |     |                                                                                                                        |
|          | Item 15: | Exhibits, Financial Statement Schedules                                                                                     |  94 − 95 |
|          |     |                                                                                                                        |   |
| SIGNATURES    | 96       |

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ITEM1.  

|   | · | In      commercial finance, we completed the offering of one public limited      partnership, which obtained $120.0 million in investor funding and      commenced an offering for another public limited partnership which is      seeking up to $200.0 million of investor funding.  As of      December 5, 2008, $33.6 million of investor funding has been raised for      this partnership. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | In      real estate, we entered into a $500.0 million joint venture with another      institutional investor to acquire distressed real estate assets (see “−      Real Estate − Distressed Real Estate Operations,” below) and two joint      ventures with an institutional investor that acquired two value-added      properties (see “− Real Estate − Value-Added Investments,”      below).  We also completed the offering of one private limited      partnership which raised $35.0 million in investor funding and commenced      an offering for another private limited partnership which is seeking up to      $55.0 million of investor funding.  As of December 5, 2008,      $16.6 million of investor funding has been raised for this      partnership.  In addition, we established a real estate property      management group on October 1, 2007 which allows us to manage directly      properties held by our sponsored investment programs and provides us      with a new source of recurringrevenues. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|                                                  |   | As      of September 30, 2008               |    |   | As      of September      30, 2007 |   |
|-------------------------------------------------------|--------|---------------------------------------------|---------|--------|------------------------------------|--------|
|                                                  |   | Institutional      and Individual Investors |    |   | RCC                                |   |   | Company |   |   | Total |   |   | Total |   |
| Trust      preferred securities (1)                   |   | $                                           | 4,787   |   |                               | $      | − |   |   | $ | − |   |   | $ | 4,787 |   |   | $ | 5,260 |   |
| Bank      loans (1)                                   |   |                                        | 3,083   |   |                               |   | 941 |   |   |   | 227 |   |   |   | 4,251 |   |   |   | 3,106 |   |
| Asset-backed      securities (1)                      |   |                                        | 5,273   |   |                               |   | 365 |   |   |   | − |   |   |   | 5,638 |   |   |   | 5,533 |   |
| Real      properties (1)                              |   |                                        | 614     |   |                               |   | − |   |   |   | − |   |   |   | 614 |   |   |   | 512 |   |
| Mortgage      and other real estate-related loans (1) |   |                                        | − |   |                               |   | 918 |   |   |   | 171 |   |   |   | 1,089 |   |   |   | 1,122 |   |
| Commercial      finance assets (2)                    |   |                                        | 1,133   |   |                               |   | 105 |   |   |   | 297 |   |   |   | 1,535 |   |   |   | 1,093 |   |
| Private      equity and other assets (1)              |   |                                        | 59      |   |                               |   | − |   |   |   | − |   |   |   | 59 |   |   |   | 85 |   |
|                                                  |   | $                                           | 14,949  |   |                               | $      | 2,329 |   |   | $ | 695 |   |   | $ | 17,973 |   |   | $ | 16,711 |   |

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| (1) | We      value these assets at their amortized cost.  We value our      managed real estate assets as the sum of:  (i) the amortized      cost of our commercial real estate loans; (ii) the book value of real      estate and other assets held by our real estate investment partnerships      and TIC property interests; (iii) the amount of our outstanding legacy      loan portfolio; and (iv) the book value of our interests in real      estate. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | We      value our commercial finance assets as the sum of the book value of the      equipment and notes and future receivable advances financed by      us. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                              |   | CDOs   |           |   | Limited      Partnerships |   |          | TIC      Property Interests |   |   | Other      Investment Funds |   |
|-----------------------------------|--------|--------|----------------|--------|---------------------------|--------|---------------|-----------------------------|--------|--------|-----------------------------|--------|
| 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 |   |
| As      of September 30, 2007 (1) |   |   |           |   |                      |   |          |                        |   |   |                        |   |   |   |   |   |
| Financial      fund management    |   |   | 29             |   |                      |   | 12            |                        |   |   | −                     |   |   |   | − |   |
| Real      estate                  |   |   |        2  |   |                      |   |        5 |                        |   |   | 7                           |   |   |   | 2 |   |
| Commercial      finance           |   |   |   − |   |                      |   |   3      |                        |   |   | −                     |   |   |   | 1 |   |
|                              |   |   | 31             |   |                      |   | 20            |                        |   |   | 7                           |   |   |   | 3 |   |

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

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|   | · | the      sponsorship and management of real estate investment funds, including      investment partnerships and TIC programs that invest principally in      multi-family housing; |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

|   | · | the      ownership and management of portfolios of distressed or value-added real      estate assets acquired through joint ventures with institutional      investors; 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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|                                                                                                                                                                                                                                                                                                                                                                                                    |   | September      30, 2008 |    |   | September      30, 2007            |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------|---------|--------|------------------------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                    |   | Portfolio      Loans    |    |   | Loans      Held UnderFIN      46-R |   |   | Portfolio      Loans |   |   | Loans      Held UnderFIN      46-R |   |
| Number      of      loans                                                                        |   |                    | 6       |   |                               |   | 2 |   |   |   | 7 |   |   |   | 2 |   |
| Outstanding      loans receivable (1)                                                            |   | $                       | 62,658  |   |                               | $      | 10,181 |   |   | $ | 69,281 |   |   | $ | 9,937 |   |
| Appraised      value of property loan (2)                                                                                                                                                                                                                                                                                                                                                               |   | $                       | 137,850 |   |                               | $      | 4,650 |   |   | $ | 175,350 |   |   | $ | 4,750 |   |
| Third      party liens (3)                                                                       |   | $                       | 16,117  |   |                               | $      | 1,227 |   |   | $ | 25,097 |   |   | $ | 1,387 |   |
| Carried      cost of investment (4)                                                              |   | $                       | 17,413  |   |                               | $      | 1,942 |   |   | $ | 27,765 |   |   | $ | 1,942 |   |
| Net      interest in outstanding loans receivable (5)                                                                                                                                                                                                                                                                                                                                                   |   | $                       | 46,541  |   |                               | $      | 8,954 |   |   | $ | 44,184 |   |   | $ | 8,550 |   |

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| (1) | Consists      of the original stated or face value of the obligation plus interest and      the amount of the senior lieninterest. |
|-----|------------------------------------------------------------------------------------------------------------------------------------|

| (2) | We      generally obtain appraisals on each of the properties underlying our      portfolio loans at least once every threeyears. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------|

| (3) | Represents      the outstanding balance of the senior lien  interests. |
|-----|------------------------------------------------------------------------|

| (4) | Represents      the book cost of our investment, including subsequent advances, after      accretion of discount and allocation of gains from the sale of a senior      lien interest in, or borrower refinancing of, the loan, but excludes an      allowance for credit losses of $1.1 million at      September 30, 2008 and $629,000 at September 30,  2007. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (5) | Consists      of the amounts set forth in the line "Outstanding Loans Receivable" less      amounts in the line “Third PartyLiens.” |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Trapeza      Capital Management, LLC, or Trapeza, a joint venture between us and an      unrelated third party, which 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; |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Apidos      Capital Management, LLC, or Apidos, which finances, structures and manages      investments in bank loans; |
|--------|--------|------------------------------------------------------------------------------------------------------------------------|

|   | · | Ischus      Capital Management, LLC, or Ischus, which 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; |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

|   | · | 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 CDOs; and |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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| Sponsor/Manager          |   | Asset      Class                |   | Number      of CDO Issuers |          |   | Assets      Under Management (1) |   |
|--------------------------|--------|---------------------------------|--------|----------------------------|---------------|--------|----------------------------------|--------|
|                     |   |                            |   |                       |          |   | (in      billions)               |   |
| Trapeza      (2)(3)      |   | Trust      Preferred Securities |   |                       | 13            |   |                             | $      | 4.8 |   |
| Apidos      (4)          |   | Bank      Loans                 |   |                       | 12            |   |                             |   | 3.9 |   |
| Ischus      (2)      (5) |   | RMBS/CMBS/ABS                   |   |                       |        9 |   |                             |   | 5.6 |   |
| Resource      Europe     |   | Bank      Loans                 |   |                       |   1      |   |                             |   | 0.4 |   |
|                     |   |                            |   |                       | 35            |   |                             | $      | 14.7 |   |

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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 seven      Trapeza CDO issuers and one Ischus CDOissuer. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (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 an entity that manages two of the      Trapeza CDO issuers. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4) | RCC      holds 100% of the equity interests in three of these CDO issuers with      assets of $941.0 million. |
|-----|---------------------------------------------------------------------------------------------------------------|

| (5) | RCC      holds 90% of the equity interests in one of these CDO issuers with assets      of $365.2 million. |
|-----|------------------------------------------------------------------------------------------------------------|

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|                                                                                                                                                                                                                                                  |   | Total  |   |   | Financial      Fund Management |   |   | Real      Estate |   |   | Commercial      Finance |   |   | Corporate/      Other |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------------------------------|--------|--------|------------------|--------|--------|-------------------------|--------|--------|-----------------------|--------|
| September 30,      2008                                                                                                                                                                                                                               |   |   |   |   |                           |   |   |             |   |   |                    |   |   |                  |   |
| Investment      professionals                                                                                                                                                                                                                         |   |   | 179    |   |                           |   | 39     |             |   |   | 31                      |   |   |                  | 104    |   |   |   | 5 |   |
| Other                                         |   |   | 620    |   |                           |   | 19     |             |   |   | 271                     | (1)    |   |                  | 294    | (2) |   |   | 36 |   |
| Total                                         |   |   | 799    |   |                           |   | 58     |             |   |   | 302                     | (1)    |   |                  | 398    | (2) |   |   | 41 |   |
|                                                                                                                                                                                                                                                  |   |   |   |   |                           |   |   |             |   |   |                    |   |   |                  |   |   |   |   |   |   |
| September 30,      2007                                                                                                                                                                                                                               |   |   |   |   |                           |   |   |             |   |   |                    |   |   |                  |   |   |   |   |   |   |
| Investment      professionals                                                                                                                                                                                                                         |   |   | 184    |   |                           |   | 48     |             |   |   | 29                      |   |   |                  | 105    |   |   |   | 2 |   |
| Other                                         |   |   | 210    |   |                           |   | 21     |             |   |   | 16                      |   |   |                  | 135    |   |   |   | 38 |   |
| Total                                         |   |   | 394    |   |                           |   | 69     |             |   |   | 45                      |   |   |                  | 240    |   |   |   | 40 |   |

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| (1) | Includes      253 employees related to our new property management    division. |
|-----|---------------------------------------------------------------------------------|

| (2) | Reflects      the additional employees hired in connection with the acquisitions of      NetBank and Dolphin Capital Corp. |
|-----|----------------------------------------------------------------------------------------------------------------------------|

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ITEM1A.  

|   | · | the      availability of financing for the acquisitions of assets, which has been      constrained or, in the case of our financial fund management operations,      largely halted, by current marketconditions; |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | 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 marketconditions; |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | 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; |
|--------|--------|---------------------------------------------|

|   | · | 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. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------|

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ITEM1B.  

ITEM2.   

ITEM3.  

ITEM4.     

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|                |   | As      Reported |   |
|---------------------|--------|------------------|--------|
|                |   | High             |   |   | Low |   |
| 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 |   |
|                |   |             |   |   |   |   |   |   |
| Fiscal      2007    |   |             |   |   |   |   |   |   |
| Fourth      Quarter |   | $                | 21.51  |   |   | $ | 12.28 |   |
| Third      Quarter  |   | $                | 25.00  |   |   | $ | 20.56 |   |
| Second      Quarter |   | $                | 28.53  |   |   | $ | 22.38 |   |
| First      Quarter  |   | $                | 27.68  |   |   | $ | 20.42 |   |

|                                                       | (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 plansapproved by security holders | 4,004,694                                                                                                  | $7.15                                                                                 | 432,414                                                                                                                                                  |

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|   | * | Assumes      $100 was invested on October 1, 2003 in our common stock or in the      indicated index and that cash dividends were reinvested as      received. |
|--------|---|----------------------------------------------------------------------------------------------------------------------------------------------------------------|

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ITEM6. 

|                                                                                                             |   | As      of and for the Years Ended September 30, |    |
|------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------|---------|
|                                                                                                             |   | 2008                                             |    |   | 2007 |   |   | 2006 |   |   | 2005 |   |   | 2004 |   |
|                                                                                                             |   |                                             |    |   |   |   |   |   |   |   | (unaudited) |   |   | (unaudited) |   |
| Statement      of operations data:                                                                               |   |                                             |    |   |   |   |   |   |   |   |   |   |   |   |   |
| Revenues:                                                                                                        |   |                                             |    |   |   |   |   |   |   |   |   |   |   |   |   |
|    Commercial      finance                                                                        |   | $                                                | 96,881  |   |   | $ | 40,692 |   |   | $ | 23,840 |   |   | $ | 13,381 |   |   | $ | 7,135 |   |
| Real estate                                                                                                      |   |                                             | 31,519  |   |   |   | 22,987 |   |   |   | 23,076 |   |   |   | 17,791 |   |   |   | 10,519 |   |
| Financial fund      management                                                                                   |   |                                             | 27,536  |   |   |   | 63,089 |   |   |   | 28,457 |   |   |   | 19,550 |   |   |   | 10,118 |   |
| Total revenues                                                                                                   |   | $                                                | 155,936 |   |   | $ | 126,768 |   |   | $ | 75,373 |   |   | $ | 50,722 |   |   | $ | 27,772 |   |
| (Loss)      income from continuing operationsbefore cumulative effect of a      change inaccounting    principle |   | $                                                | (24,944 | ) |   | $ | 5,254 |   |   | $ | 15,668 |   |   | $ | 7,426 |   |   | $ | 3,096 |   |
| (Loss)      income from discontinued operations,net of tax                                                       |   |                                             | (1,299  | ) |   |   | (1,558 | ) |   |   | 1,231 |   |   |   | 11,070 |   |   |   | 16,799 |   |
| Cumulative      effect of a change in accountingprinciple, net of    tax                                         |   |                                             | − |   |   |   | − |   |   |   | 1,074 |   |   |   | − |   |   |   | − |   |
| Net      (loss) income                                                                                           |   | $                                                | (26,243 | ) |   | $ | 3,696 |   |   | $ | 17,973 |   |   | $ | 18,496 |   |   | $ | 19,895 |   |
|                                                                                                             |   |                                             |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic      (loss) earnings per common share:                                                                     |   |                                             |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Continuing      operations                                                                                       |   | $                                                | (1.42   | ) |   | $ | 0.30 |   |   | $ | 0.89 |   |   | $ | 0.42 |   |   | $ | 0.17 |   |
| Discontinued      operations                                                                                     |   |                                             | (0.08   | ) |   |   | (0.09 | ) |   |   | 0.07 |   |   |   | 0.63 |   |   |   | 0.97 |   |
| Cumulative      effect of a change in accountingprinciple                                                        |   |                                             | − |   |   |   | − |   |   |   | 0.06 |   |   |   | − |   |   |   | − |   |
| Net      (loss) income                                                                                           |   | $                                                | (1.50   | ) |   | $ | 0.21 |   |   | $ | 1.02 |   |   | $ | 1.05 |   |   | $ | 1.14 |   |
|                                                                                                             |   |                                             |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Diluted      (loss) earnings per common share:                                                                   |   |                                             |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Continuing      operations                                                                                       |   | $                                                | (1.42   | ) |   | $ | 0.27 |   |   | $ | 0.82 |   |   | $ | 0.38 |   |   | $ | 0.17 |   |
| Discontinued      operations                                                                                     |   |                                             | (0.08   | ) |   |   | (0.08 | ) |   |   | 0.07 |   |   |   | 0.58 |   |   |   | 0.92 |   |
| Cumulative      effect of a change in accountingprinciple                                                        |   |                                             | − |   |   |   | − |   |   |   | 0.05 |   |   |   | − |   |   |   | − |   |
| Net      (loss) income                                                                                           |   | $                                                | (1.50   | ) |   | $ | 0.19 |   |   | $ | 0.94 |   |   | $ | 0.96 |   |   | $ | 1.09 |   |
| Cash      dividends per common share                                                                             |   | $                                                | 0.28    |   |   | $ | 0.27 |   |   | $ | 0.24 |   |   | $ | 0.20 |   |   | $ | 0.17 |   |
|                                                                                                             |   |                                             |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance      sheet data:                                                                                         |   |                                             |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total assets                                                                                                     |   | $                                                | 762,650 |   |   | $ | 966,452 |   |   | $ | 418,858 |   |   | $ | 463,037 |   |   | $ | 742,350 |   |
| Borrowings                                                                                                       |   | $                                                | 554,059 |   |   | $ | 706,372 |   |   | $ | 172,238 |   |   | $ | 147,302 |   |   | $ | 43,694 |   |
| Stockholders’    equity                                                                                    |   | $                                                | 143,733 |   |   | $ | 185,347 |   |   | $ | 195,167 |   |   | $ | 191,138 |   |   | $ | 259,879 |   |
|                                                                                                             |   |                                             |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

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ITEM7.    

|   | ·   | a      $4.1 million charge, net of minority interest and tax, to reflect the      other-than-temporary impairment of certain investments in CDOs, primarily      those with investments in financial institutions and real estate,      including RMBS and CMBS; |
|--------|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ·   | a      $11.0 million charge, net of tax, to reflect losses incurred from the sale      of loans being accumulated on warehouse facilities we terminated in 2008      as a result of our determination not to proceed with the CDO issuance for      which the assets were beingaccumulated; |
|--------|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ·   | an      aggregate $14.4 million of charges, net of tax, to reflect our      equity impairment charges recognized by the five Trapeza partnerships      in which we have interests; and |
|--------|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ·   | a      $5.4 million charge, net of tax, to reflect the provision for credit      losses, which impacted our business segments as      follows:  commercial finance $3.5 million; real estate $310,000;      and financial fund management $1.6million. |
|--------|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | an      increase in the financial fund management assets we manage, principally as      the result of the completion of one CDO issuance during the first      quarter of      fiscal 2008 and the assumption of collateral management for five CDO      issuers from two unrelated thirdparties; |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | an      increase in real estate assets managed on behalf of RCC, joint ventures      and limited partnerships and TIC property interests that we sponsor;      and |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | an      increase in commercial finance assets managed on behalf of the limited      partnerships we sponsor, RCC, and forourselves. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------|

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|                           |   | As      of September 30, |   |   | Increase |   |
|--------------------------------|--------|--------------------------|--------|--------|----------|--------|
|                           |   | 2008                     |   |   | 2007     |   |   | Amount |   |   | Percentage |   |
| Financial      fund management |   | $                        | 14,735 |   |     | $      | 13,984 |   |   | $ | 751 |   |   |   | 5% |   |
| Real      estate               |   |                     | 1,703  |   |     |   | 1,634 |   |   |   | 69 |   |   |   | 4% |   |
| Commercial      finance        |   |                     | 1,535  |   |     |   | 1,093 |   |   |   | 442 |   |   |   | 40% |   |
|                           |   | $                        | 17,973 |   |     | $      | 16,711 |   |   | $ | 1,262 |   |   |   | 8% |   |

|                             |   | CDOs   |           |   | Limited      Partnerships |   | TIC      Property Interests |   |   | Other      Investment Funds |
|----------------------------------|--------|--------|----------------|--------|---------------------------|--------|-----------------------------|--------|--------|-----------------------------|
| 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 |   |
| As of September 30,      2007(1) |   |   |           |   |                      |   |                        |   |   |                        |   |   |   |   |   |
| Financial      fund management   |   |   | 29             |   |                      |   | 12                          |   |   | −                     |   |   |   | − |   |
| Real      estate                 |   |   |        2  |   |                      |   |        5               |   |   | 7                           |   |   |   | 2 |   |
| Commercial      finance          |   |   |   − |   |                      |   |   3                    |   |   | −                     |   |   |   | 1 |   |
|                             |   |   | 31             |   |                      |   | 20                          |   |   | 7                           |   |   |   | 3 |   |

----

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

|                                                               |   | Years      Ended September 30, |    |
|--------------------------------------------------------------------|--------|--------------------------------|---------|
|                                                               |   | 2008                           |    |   | 2007 |   |   | 2006 |   |
| Finance      and rental revenues (1)                               |   | $                              | 80,660  |   |   | $ | 48,981 |   |   | $ | 22,156 |   |
| Fund      management revenues (2)                                  |   |                           | 53,156  |   |   |   | 63,490 |   |   |   | 38,192 |   |
| RCC      management fees                                           |   |                           | 6,021   |   |   |   | 7,048 |   |   |   | 4,320 |   |
| Gains      on resolution of loans and other property interests (3) |   |                           | 9,298   |   |   |   | 2,993 |   |   |   | 4,691 |   |
| Net      gain from sales of TIC property interests (4)             |   |                           | 273     |   |   |   | 119 |   |   |   | 1,363 |   |
| Other      (5)                                                     |   |                           | 6,528   |   |   |   | 4,137 |   |   |   | 4,651 |   |
|                                                               |   | $                              | 155,936 |   |   | $ | 126,768 |   |   | $ | 75,373 |   |

----

| (1) | 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. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | 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 each of those      segments.  Fiscal 2008 revenues reflect the negative realized      and unrealized fair value adjustments of $9.3 million and $14.2 million,      respectively, from limited and general partnership interests in the      Trapeza partnerships. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| (4) | Reflects      gains, net of losses, recognized by our real estate reporting segment on      the sale of TIC property interests to outside  investors. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------|

| (5) | Includes      the equity compensation earned in connection with the formation of RCC and      the disposition of leases and loans as well as other charges earned by our      commercial finance operations. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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----

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|                                         |   | September      30, |    |
|----------------------------------------------|--------|--------------------|---------|
|                                         |   | 2008               |    |   | 2007 |   |
| LEAF                                         |   | $                  | 113     |   |   | $ | 90 |   |
| LCFF                                         |   |               | 172     |   |   |   | 146 |   |
| Merit                                        |   |               | 12      |   |   |   | 7 |   |
| Managed for      ourselves                   |   |               | 297     |   |   |   | 243 |   |
|                                         |   |               |    |   |   |   |   |   |
| Lease      Equity Appreciation Fund I, L.P.  |   |               | 105     |   |   |   | 89 |   |
| Lease      Equity Appreciation Fund II, L.P. |   |               | 298     |   |   |   | 361 |   |
| Fund      III                                |   |               | 718     |   |   |   | 306 |   |
| Fund      4                                  |   |               | 12      |   |   |   | − |   |
| RCC                                          |   |               | 105     |   |   |   | 83 |   |
| Other                                        |   |               | − |   |   |   | 11 |   |
| Managed for    others                        |   |               | 1,238   |   |   |   | 850 |   |
|                                         |   | $                  | 1,535   |   |   | $ | 1,093 |   |

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----

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|                           |   | Years      Ended September 30, |   |
|--------------------------------|--------|--------------------------------|--------|
|                           |   | 2008                           |   |   | 2007 |   |   | 2006 |   |
| Revenues:(1)                   |   |                           |   |   |   |   |   |   |   |
| Finance    revenues:           |   |                           |   |   |   |   |   |   |   |
| LEAF                           |   | $                              | 46,946 |   |   | $ | 16,343 |   |   | $ | 9,006 |   |
| Merit                          |   |                           | 6,734  |   |   |   | 516 |   |   |   | − |   |
| Acquisitionfees                |   |                           | 18,466 |   |   |   | 10,484 |   |   |   | 5,788 |   |
| Fund management      fees      |   |                           | 18,275 |   |   |   | 11,403 |   |   |   | 7,707 |   |
| Other                          |   |                           | 6,460  |   |   |   | 1,946 |   |   |   | 1,339 |   |
|                           |   | $                              | 96,881 |   |   | $ | 40,692 |   |   | $ | 23,840 |   |
| Costs      and expenses:       |   |                           |   |   |   |   |   |   |   |   |   |   |
| Wage and benefit      costs:   |   |                           |   |   |   |   |   |   |   |   |   |   |
| LEAF                           |   | $                              | 22,107 |   |   | $ | 10,763 |   |   | $ | 9,327 |   |
| Merit                          |   |                           | 2,105  |   |   |   | 871 |   |   |   | − |   |
| Other costs and      expenses: |   |                           |   |   |   |   |   |   |   |   |   |   |
| LEAF                           |   |                           | 16,309 |   |   |   | 6,972 |   |   |   | 5,116 |   |
| Merit                          |   |                           | 2,220  |   |   |   | 895 |   |   |   | − |   |
|                           |   | $                              | 42,741 |   |   | $ | 19,501 |   |   | $ | 14,443 |   |

----

| (1) | Total      revenues include RCC servicing and origination fees of $1.5 million, $1.2      million and $1.6 million for fiscal 2008, 2007, and 2006,      respectively. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | a      $30.6 million (187%) 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.  In January and April 2008, we sold      49% and 51%, respectively, of the NetBank portfolio to Fund      III.  As a result, our commercial finance revenues and interest      expense will decrease significantly in fiscal 2009; however, we will earn      ongoing fund asset management fees; |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

|   | · | an      $8.0 million (76%) 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. portfolioacquisitions; |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | a      $6.9 million (60%) increase in fund management fees resulting from the      $377.0 million increase in assets under management;  and |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | a      $4.5 million (232%) 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 (108%) in wages and benefit      costs.  The number of full-time employees increased to 398 as of      September 30, 2008 from 240 as of September 30, 2007 due to our recent      acquisitions 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 throughout fiscal 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 (136%) in operating expenses as a result of our      increase in origination capabilities and increased facility costs,      primarily due to our acquisitions. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | · | a      $7.9 million (87%) increase in commercial finance revenues due to the      growth in lease originations and our decision to hold more direct      financing leases and loans on our balance sheet.  We increased our      commercial finance assets by $134.0 million to $243.0 million at September      30, 2007 and increased our lease originations $355.6 million (84%),      including $269.5 million from our acquisition of the leasing business of      Pacific Capital Bank, or PCB; |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | a      $4.7 million (81%) increase in asset acquisition fees resulting from an      increase in leases sold.  Sales of leases increased by $323.3      million to $577.6 million for fiscal 2007, principally related to the PCB      leases and loans acquired by our investment  partnerships; |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | a      $3.7 million (48%) increase in fund management fees resulting from an      increase in assets under management to $1.1 billion at September 30, 2007      from $612.7 million at September 30, 2006;and |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | a      $607,000 (45%) increase in other income, reflecting gains on dispositions      which may vary significantly from period to  period. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------|

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

|   | · | 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; |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | portfolios      of distressed or value-added real estate assets we acquired through joint      ventures with institutionalinvestors; |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------|

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

|   | · | a      portfolio of distressed real estate loans we acquired at a discount,      primarily from HUD. |
|--------|--------|------------------------------------------------------------------------------------------------------|

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   | September      30, |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   | 2008               |   |   | 2007 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   | (in      millions) |   |
| Assets      under management:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |               |   |   |   |   |
| Commercial real estate      debt                                                                                                             |   | $                  | 924    |   |   | $ | 948 |   |
| Real estate investment funds and      programs                                                                                               |   |               | 498    |   |   |   | 425 |   |
| Institutional      portfolios                                                                                                                |   |               | 116    |   |   |   | 87 |   |
| Legacy      portfolio                                                                                                                        |   |               | 94     |   |   |   | 99 |   |
| Distressed portfolios (primarily      HUD      loans)                                                                                        |   |               | 71     |   |   |   | 75 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   | $                  | 1,703  |   |   | $ | 1,634 |   |

|   | · | the      transition of property management from outsourced third party managers to      our internal multi-family manager, Resource Residential, which commenced      operations in October 2007 which has provided a new source of      revenues; |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | the      continuing volatility and reduction in liquidity in global credit markets      which has affected our fee income from RCC and our fee income from      sponsorship of partnership and TICinterests; |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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----

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|   | · | an      increased number of distressed real estate opportunities that are      available for purchase; |
|--------|--------|--------------------------------------------------------------------------------------------------------|

|   | · | continued      opportunities in our real estate business through the sponsorship of real      estate investment partnerships; |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------|

|   | · | an      agreement executed for a $500.0 million joint venture, structured as a      credit facility, with an existing institutional investor; the first asset      under this facility was purchased on June 30, 2008 for $9.3 million;      and |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | the      acquisition of two value-added properties with a new joint venture partner      for $29.5 million. |
|--------|--------|-------------------------------------------------------------------------------------------------------------|

|                                                                          |   | Years      Ended September 30, |   |
|-------------------------------------------------------------------------------|--------|--------------------------------|--------|
|                                                                          |   | 2008                           |   |   | 2007 |   |   | 2006 |   |
| Revenues:                                                                     |   |                           |   |   |   |   |   |   |   |
| Managementfees:                                                               |   |                           |   |   |   |   |   |   |   |
| Asset management      fees                                                    |   | $                              | 2,407  |   |   | $ | 1,462 |   |   | $ | 2,248 |   |
| Resource Residential property      management fees                            |   |                           | 2,682  |   |   |   | − |   |   |   | − |   |
| REIT management fees from      RCC                                            |   |                           | 4,465  |   |   |   | 5,051 |   |   |   | 1,077 |   |
|                                                                          |   |                           | 9,554  |   |   |   | 6,513 |   |   |   | 3,325 |   |
| Fee income from sponsorship of      partnerships and TICproperty    interests |   |                           | 3,583  |   |   |   | 6,904 |   |   |   | 8,681 |   |
| Master lease      revenues                                                    |   |                           | 3,660  |   |   |   | − |   |   |   | − |   |
| Rental property and FIN 46-R      revenues                                    |   |                           | 5,208  |   |   |   | 4,700 |   |   |   | 4,720 |   |
| Interest, including accreted      loan discount                               |   |                           | 1,549  |   |   |   | 1,221 |   |   |   | 1,128 |   |
| Gains and fees on resolution of      loans and other property interests       |   |                           | 9,298  |   |   |   | 2,993 |   |   |   | 4,691 |   |
| Equity in (losses) earnings of      unconsolidated entities                   |   |                           | (1,606 | ) |   |   | 537 |   |   |   | (832 | ) |
| Net gain on sales of TIC      property interests                              |   |                           | 273    |   |   |   | 119 |   |   |   | 1,363 |   |
|                                                                          |   | $                              | 31,519 |   |   | $ | 22,987 |   |   | $ | 23,076 |   |
| Cost      and expenses:                                                       |   |                           |   |   |   |   |   |   |   |   |   |   |
| General and administrative      expenses                                      |   | $                              | 12,278 |   |   | $ | 9,942 |   |   | $ | 8,549 |   |
| Resource Residential      expenses                                            |   |                           | 3,043  |   |   |   | 34 |   |   |   | − |   |
| Master lease      expenses                                                    |   |                           | 4,081  |   |   |   | 2 |   |   |   | − |   |
| Rental property and FIN 46-R      expenses                                    |   |                           | 3,200  |   |   |   | 3,212 |   |   |   | 2,973 |   |
|                                                                          |   | $                              | 22,602 |   |   | $ | 13,190 |   |   | $ | 11,522 |   |

|   | · | a      $945,000 increase in asset management fees due to an increase in the      number of properties under management to 44 at September 30, 2008 from 25      at September 30, 2007; |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | a      $2.7 million increase in fees from Resource Residential management which      represents revenues from our new internal property  manager; |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------|

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

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|   | · | 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 million in net      proceeds plus a $130,000 structuring fee from the sale of a 19.99%      interest in 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. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | 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. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | a      $1.8 million decrease in fee income related to the lower volume of TIC      program activity.  We closed $18.3 million in TIC investments in      fiscal 2007 compared to $44.1 million in fiscal  2006; |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | a      $4.0 million increase in management fees from RCC reflecting an increase      of $508.0 million in the commercial real estate debt assets we managed to      $948.0 million at September 30,2007; |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | a      $786,000 decrease in property management fees, including a $405,000      discount recorded in connection with property management fees we expect to      receive in the future; |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | a      $1.7 million decrease in gain on property resolutions, principally related      to the partial sales of a real estate venture.  During 2007 and      2006, we sold 15% and 20% of our interests for $2.9 million and $4.0      million, respectively, and recorded gains of $2.7 million and $4.5      million, respectively, from thosesales; |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | a      $1.4 million increase in equity income due to the reallocation of      partnership income from a real estate venture;  and |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------|

|   | · | a      $1.2 decrease in net gains on sale of TIC property interests due to the      lower volume of TIC programactivity. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------|

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----

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|                                      |   | As      of September 30, 2008             |   |
|-------------------------------------------|--------|-------------------------------------------|--------|
|                                      |   | Institutional      andIndividualInvestors |   |   | RCC |   |   | Assets      Held on Warehouse Facilities |   |   | 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 |   |

|                                      |   | As      of September 30, 2007             |   |
|-------------------------------------------|--------|-------------------------------------------|--------|
|                                      |   | Institutional      andIndividualInvestors |   |   | RCC |   |   | Assets      Held on Warehouse Facilities |   |   | Total      by Type |   |
| Trapeza                                   |   | $                                         | 5,167  |   |   | $ | − |   |   | $ | 93 |   |   | $ | 5,260 |   |
| Apidos                                    |   |                                      | 1,438  |   |   |   | 952 |   |   |   | 212 |   |   |   | 2,602 |   |
| Ischus                                    |   |                                      | 5,137  |   |   |   | 396 |   |   |   | − |   |   |   | 5,533 |   |
| Resource      Europe                      |   |                                      | 415    |   |   |   | − |   |   |   | 89 |   |   |   | 504 |   |
| Other      company-sponsored partnerships |   |                                      | 85     |   |   |   | − |   |   |   | − |   |   |   | 85 |   |
|                                      |   | $                                         | 12,242 |   |   | $ | 1,348 |   |   | $ | 394 |   |   | $ | 13,984 |   |

|   | · | Collateral management      fees − we receive fees for managing the assets held by CDOs we      sponsor.  These fees vary by CDO, with our annual fees ranging      between 0.04% and 0.60% of the aggregate principal balance of the      collateral securities owned by the CDO issuers.  CDO indentures      require certain overcollateralization test ratios, or O/C ratio(s), to be      maintained.  O/C ratios measure the ratio of assets (collateral)      to liabilities (notes) within a given CDO.  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 capitalbalance. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   | Years      Ended September 30, |    |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------|---------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   | 2008                           |    |   | 2007 |   |   | 2006 |   |
| Revenues:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                           |    |   |   |   |   |   |   |
| Limited and general partner      interests:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |                           |    |   |   |   |   |   |   |
| Fair value      adjustments                                                                                                            |   | $                              | (23,483 | ) |   | $ | (2,901 | ) |   | $ | (2,989 | ) |
| Operations                                                                                                                             |   |                           | 2,752   |   |   |   | 6,062 |   |   |   | 5,542 |   |
| Total limited and general      partner      interests                                                                                            |   |                           | (20,731 | ) |   |   | 3,161 |   |   |   | 2,553 |   |
| Fund and RCC management      fees                                                                                            |   |                           | 24,232  |   |   |   | 25,762 |   |   |   | 14,731 |   |
| Interest income on      loans                                                                                                |   |                           | 16,563  |   |   |   | 26,201 |   |   |   | 7,302 |   |
| Earnings from unconsolidated      CDOs                                                                                       |   |                           | 2,670   |   |   |   | 2,649 |   |   |   | 737 |   |
| Introductory agent, due      diligence and placement fees                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                           | 2,593   |   |   |   | 1,901 |   |   |   | − |   |
| Earnings of SFF      partnerships                                                                                            |   |                           | 1,641   |   |   |   | 2,043 |   |   |   | 2,218 |   |
| Other                                                                                                                        |   |                           | 568     |   |   |   | 1,372 |   |   |   | 916 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   | $                              | 27,536  |   |   | $ | 63,089 |   |   | $ | 28,457 |   |
| Costs      and expenses:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                           |    |   |   |   |   |   |   |   |   |   |
| General and      administrative                                                                                              |   | $                              | 27,539  |   |   | $ | 19,333 |   |   | $ | 10,442 |   |
| Equity compensation expense −      RCC                                                                                 |   |                           | 134     |   |   |   | 1,861 |   |   |   | 1,650 |   |
| Expenses of SFF      partnerships                                                                                            |   |                           | 64      |   |   |   | 70 |   |   |   | 7 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   | $                              | 27,737  |   |   | $ | 21,264 |   |   | $ | 12,099 |   |

|   | · | a      $23.9 million decrease in limited and general partner interests, primarily      as a result of the following: |
|--------|--------|----------------------------------------------------------------------------------------------------------------------|

|   | - | a      $20.6 million decrease in fair value adjustments,    principally: |
|--------|---|--------------------------------------------------------------------------|

|   | - | a      $11.3 million increase in net unrealized depreciation in the book value of      the Trapeza partnership securities and swap agreements to reflect current      fair value; and |
|--------|---|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | - | a      $9.3 million decrease in book value due to the permanent impairment of      four Trapeza partnership equityinterests; |
|--------|---|------------------------------------------------------------------------------------------------------------------------------|

|   | - | a      $3.3 million decrease in operations, other than fair value      adjustments, reflecting: |
|--------|---|------------------------------------------------------------------------------------------------------|

|   | - | a      $3.0 million decrease from our limited and general partner share of the      operating results of the unconsolidated Trapeza partnerships;      and |
|--------|---|------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | - | a      $219,000 decrease from our limited and general partner share of the      operating results of the 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 and 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 |
|--------|---|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | - | 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. |
|--------|---|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

|   | - | 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 facilities for 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 fiscal 2008 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 assignment fees      in connection with 11 bank trust preferred and REIT trust preferred      security transactions.  We do not expect to earn similar due      diligence and assignment fees in the future due to market      conditions. |
|--------|---|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | a      $402,000 decrease in our earnings from 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      $608,000 increase in limited and general partner interests,      reflecting: |
|--------|--------|-------------------------------------------------------------------------------------|

|   | - | an      $88,000 net increase in fair value adjustments as a result of the      following: |
|--------|---|-------------------------------------------------------------------------------------------|

|   | - | a      $264,000 increase in net unrealized appreciation in the book value of the      Trapeza partnership securities and swap agreements to reflect current fair      value; offset in part by |
|--------|---|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | - | a      $176,000 decrease in net unrealized appreciation in the book value of the      other company-sponsored partnerships securities to reflect current fair      value; and |
|--------|---|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | - | a      $520,000 increase in operations, other than fair value adjustments,      reflecting: |
|--------|---|---------------------------------------------------------------------------------------------|

|   | - | a      $740,000 increase from our limited and general partner share of the      operating results of the unconsolidated Trapeza partnerships we have      sponsored; and |
|--------|---|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | - | a      $219,000 decrease from our limited and general partner share of the      operating results of the unconsolidated other company-sponsored      partnerships. |
|--------|---|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | an      $11.0 million increase in fund and RCC management fees, primarily from the      following: |
|--------|--------|----------------------------------------------------------------------------------------------------|

|   | - | a      $12.1 million increase in collateral management fees principally as a      result of the completion of nine new CDOs in fiscal 2007 coupled with a      full year of collateral management fees for seven previously completed      CDOs; |
|--------|---|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | - | a      $1.7 million increase in portfolio 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 2006;      and |
|--------|---|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | - | a      $425,000 increase in management fees from our five company-sponsored      unconsolidated partnerships, primarily due to a full twelve months of      management fees for two of thepartnerships. |
|--------|---|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | - | a      $2.8 million decrease in RCC management fees and equity compensation,      reflecting a $1.2 million decrease in management fees primarily as a      result of the sale of RCC’s agency RMBS portfolio in January and October      2006 and a $1.6 million decrease in equity compensation;    and |
|--------|---|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | - | a      $580,000 increase in our equity share of the expenses for Trapeza Capital      Management LLC and Trapeza Management GroupLLC. |
|--------|---|---------------------------------------------------------------------------------------------------------------------------------------|

|   | · | an      $18.9 million increase in interest income on loans held for investment      resulting from the consolidation in our financial statements of three      Apidos and two Resource Europe CDO issuers during fiscal 2007 as compared      to four Apidos CDO issuers and one Resource Europe CDO issuer during      fiscal 2006 while they accumulate assets through separate warehouse      facilities.  In May 2007, we closed Apidos Cinco CDO and our      first European CDO, Resource Europe I, and repaid all outstanding      borrowings under their respective warehouse facilities.  The      weighted average loan balances of CDO issuers we consolidated for fiscal      2007 and 2006 were $368.4 million and $101.8 million, respectively, at      weighted average interest rates of 7.04% and 6.98%,      respectively; |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | a      $1.9 million increase in our earnings from unconsolidated CDOs as a result      of our investments in seven new CDO issuers and an increase in earnings      from investments in six previously sponsored CDO  issuers; |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | a      $1.9 million increase in introductory agent, due diligence and placement      fees as a result of the following: |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------|

|   | - | $1.3      million earned in due diligence and placement fees in connection with the      origination of $310.0 million for six REIT trust preferred security      transactions.  We do not expect to earn similar fees in the      future due to market conditions;and |
|--------|---|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | - | $575,000      earned in placement fees in connection with the origination of $225.0      million for five Trapeza trust preferred security      transactions. |
|--------|---|---------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | a      $456,000 increase in other revenue, primarily a $300,000 gain on the sale      of a security during fiscal 2007.  No such gain occurred during      fiscal 2006. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | an      $8.9 million increase in general and administrative expenses, primarily      from the following: |
|--------|--------|----------------------------------------------------------------------------------------------------------|

|   | - | a      $6.4 million increase in compensation expense due to higher wages and      benefits; |
|--------|---|---------------------------------------------------------------------------------------------|

|   | - | a      $1.6 million increase in other operating expenses, primarily from      insurance costs, rent and other general and administrative expenses      related to the addition ofpersonnel; |
|--------|---|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | - | a      $297,000 decrease in reimbursed expenses from our Trapeza, Apidos and      Ischus operations, which vary depending on the terms of the transaction;      and |
|--------|---|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | - | a      $567,000 decrease in reimbursed RCC operating  expenses. |
|--------|---|-----------------------------------------------------------------|

|   | · | a      $211,000 increase in equity compensation expense related to the award of      RCC restricted stock and options to members of  management. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | · | a      $2.7 million increase related to the amortization of restricted stock      awards given to our employees, of which $507,000 was due to accelerated      vesting for certain terminated employees;and |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

|   | · | a      $1.3 million increase as a result of increased headcount to service our      expanding asset management operations;and |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------|

|   | · | a      $731,000 increase in the amortization of restricted stock      awards. |
|--------|--------|-------------------------------------------------------------------------------|

|   | · | in      our commercial finance business, the increase in the amount of leases and      loans we held on our balance sheet along with the growth in our      originations for fiscal 2008 as compared to fiscal 2007 as well as the      economic downturn has increased the likelihood that credit problems may      occur prior to completing the sale of those assets to one of our      investment partnerships.  In addition, our Merit business, which      has higher interest rate spreads and a greater risk of credit loss,      resulted in a provision of $4.1 million.  Accordingly, we      recorded a total provision for credit losses in our commercial finance      business of $5.6 million during fiscal  2008; |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | in      our financial fund management business, our evaluation of the      creditworthiness of the portfolio of loans held by Apidos CDO VI included      an analysis of observable secondary market prices and general market      conditions.  As a result, management concluded that a provision      for credit losses of $2.6 million was needed during fiscal 2008;      and |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | in      our real estate business, while we continue to monetize our legacy loan      portfolio to reduce our overall exposure, we determined that both general      and local economic conditions could have a negative impact on one loan      remaining within the portfolio.  Accordingly, we recorded a      provision for credit losses of $500,000 on our portfolio of real estate      loans for fiscal 2008. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|                           |   | Years      Ended September 30, |   |
|--------------------------------|--------|--------------------------------|--------|
|                           |   | 2008                           |   |   | 2007 |   |   | 2006 |   |
| Commercial      finance        |   | $                              | 27,466 |   |   | $ | 11,796 |   |   | $ | 4,430 |   |
| Financial      fund management |   |                           | 14,559 |   |   |   | 19,485 |   |   |   | 5,318 |   |
| Real      estate               |   |                           | 1,222  |   |   |   | 1,040 |   |   |   | 245 |   |
| Corporate                      |   |                           | 4,019  |   |   |   | 1,245 |   |   |   | 126 |   |
|                           |   | $                              | 47,266 |   |   | $ | 33,566 |   |   | $ | 10,119 |   |

|                                              |   | Years      Ended September 30, |   |
|---------------------------------------------------|--------|--------------------------------|--------|
|                                              |   | 2008                           |   |   | 2007 |   |   | 2006 |   |
| Commercial      finance:                          |   |                           |   |   |   |   |   |   |   |
| Average    borrowings                             |   | $                              | 423.6  |   |   | $ | 172.1 |   |   | $ | 60.6 |   |
| Average interest      rates                       |   |                           | 6.4%   |   |   |   | 6.9% |   |   |   | 7.0% |   |
|                                              |   |                           |   |   |   |   |   |   |   |   |   |   |
| Financial      fund management:                   |   |                           |   |   |   |   |   |   |   |   |   |   |
| Average    borrowings                             |   | $                              | 255.6  |   |   | $ | 366.1 |   |   | $ | 100.3 |   |
| Average interest      rates                       |   |                           | 5.6%   |   |   |   | 5.3% |   |   |   | 5.2% |   |
|                                              |   |                           |   |   |   |   |   |   |   |   |   |   |
| Corporate      – Secured credit facilities: |   |                           |   |   |   |   |   |   |   |   |   |   |
| Average    borrowings                             |   | $                              | 56.8   |   |   | $ | 12.2 |   |   | $ | 1.0 |   |
| Average interest      rates                       |   |                           | 6.9%   |   |   |   | 10.1% |   |   |   | 9.3% |   |

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|                                                |   | Years      Ended September 30, |   |
|-----------------------------------------------------|--------|--------------------------------|--------|
|                                                |   | 2008                           |   |   | 2007 |   |   | 2006 |   |
| SFF      partnerships (1)                           |   | $                              | 6,578  |   |   | $ | (1,473 | ) |   | $ | (1,624 | ) |
| Commercial      finance minority ownership      (2) |   |                           | (1,485 | ) |   |   | (530 | ) |   |   | (117 | ) |
| Commercial      finance fund participation      (3) |   |                           | (693   | ) |   |   | − |   |   |   | − |   |
| Warehouse      providers (4)                        |   |                           | (96    | ) |   |   | (139 | ) |   |   | (34 | ) |
| Real      estate minority holder (5)                |   |                           | (61    | ) |   |   | − |   |   |   | − |   |
|                                                |   | $                              | 4,243  |   |   | $ | (2,142 | ) |   | $ | (1,775 | ) |

----

| (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 havestructured. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Senior      executives of LEAF hold a 14.9% interest in LEAF, reflecting LEAF common      stock issued to them upon the conversion of a note in fiscal 2006 and the      issuance to them of LEAF restricted stock in fiscal 2007 and      2006.  The increase in minority interest expense for fiscal 2008      reflects the increase in LEAF’sincome. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (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 Fund      III.  In April 2008, the remaining 51% interest in the      subsidiary was sold to Fund III. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4) | Certain      warehouse providers were entitled to receive 10% to 15% of the interest      spread earned on their respective warehouse facilities which held Apidos      and Resource Europe bank loan assets during their accumulation      stage.  As of January 2008, all warehouse facilities were      terminated. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (5) | In      March 2008, we sold a 19.99% interest in an indirect subsidiary that holds      a hotel property in Savannah, Georgia to a related  party. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------|

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|                                                       |   | Years      Ended September 30, |    |
|------------------------------------------------------------|--------|--------------------------------|---------|
|                                                       |   | 2008                           |    |   | 2007 |   |   | 2006 |   |
| Operating (loss) income (period      prior to disposition) |   | $                              | (1,104  | ) |   | $ | (2,095 | ) |   | $ | 2,674 |   |
| Write-downs to expected sales      value                   |   |                           | − |   |   |   | (374 | ) |   |   | (431 | ) |
| Gain (loss) on      disposal                               |   |                           | − |   |   |   | 45 |   |   |   | (452 | ) |
| Income tax benefit      (provision)                        |   |                           | 386     |   |   |   | 848 |   |   |   | (591 | ) |
| Discontinued (loss) income, net      of tax                |   | $                              | (718    | ) |   | $ | (1,576 | ) |   | $ | 1,200 |   |

|                                                |   | Years      Ending September 30, |   |
|-----------------------------------------------------|--------|---------------------------------|--------|
|                                                |   | 2008                            |   |   | 2007 |   |   | 2006 |   |
| Loss      from discontinued operations before taxes |   | $                               | (856   | ) |   | $ | (180 | ) |   | $ | − |   |
| Benefit      for income taxes                       |   |                            | 300    |   |   |   | 68 |   |   |   | − |   |
| Loss      from discontinued operations, net of tax  |   | $                               | (556   | ) |   | $ | (112 | ) |   | $ | − |   |

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|                                                                     |   | Years      Ended September 30, |     |
|--------------------------------------------------------------------------|--------|--------------------------------|----------|
|                                                                     |   | 2008                           |     |   | 2007 |   |   | 2006 |   |
| Provided      by (used in) operating activities of continuing operations |   | $                              | 75,296   |   |   | $ | 103,037 |   |   | $ | (37,454 | ) |
| Used      in investing activities of continuing operations               |   |                           | (252,755 | ) |   |   | (201,343 | ) |   |   | (36,523 | ) |
| Provided      by financing activities of continuing operations           |   |                           | 178,975  |   |   |   | 76,586 |   |   |   | 46,128 |   |
| (Used      in) provided by discontinued operations                       |   |                           | (1,230   | ) |   |   | (1,278 | ) |   |   | 38,943 |   |
| Net      cash retained by entities previously consolidated               |   |                           | −  |   |   |   | − |   |   |   | (3,825 | ) |
|                                                                     |   | $                              | 286      |   |   | $ | (22,998 | ) |   | $ | 7,269 |   |

|   | · | cash      of $14.9 million and restricted cash of $23.7 million comprised of $14.8      million related to various escrow balances, principally $13.7 million held      in escrow for Apidos CDO VI which we consolidate under FIN 46-R, and $8.9      million in collection accounts related to our commercial finance      business; |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | cash      generated from operations, including asset and property management fees as      well as payments received on leases and loans, including sales of      equipment; and |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | financing      available      includes the following:  $400.0 million under two commercial      finance credit facilities, net of $269.3 million utilized, for a net      availability of $130.7 million, which is limited to funding our commercial      finance operations and $69.0 million under two corporate      facilities,  net of $50.6 million utilized, for a net available      of $18.4 million, subject to collateral limitations.  As of      September 30, 2008, availability was limited to $11.2      million.  Furthermore, on August 7, 2008 and September 30, 2008,      our corporate revolving credit facility with TD Bank was amended to reduce      the minimum net worth covenant.  In consideration for the      amendment, we and TD Bank agreed to reduce the outstanding commitment of      $55.0 million on September 30, 2008, to $45.0 million on December 31, 2008      and to $30.0 million on March 31, 2009.  Additionally, during      fiscal 2008, the resolution of our legacy portfolio provided $21.3 million      of cash.  Our legacy portfolio at September 30, 2008, consists      of eight loans and five property interests with an aggregate face value      (net of third party liens) of $77.2 million.  Because of current      economic conditions, the amount of cash we may be able to derive from      resolution of our legacy portfolio in the future may be limited; in any      event, the amount of cash we derive from it has been subject to      significant variations.  Accordingly, we cannot assure you that      our legacy portfolio will be a source of significant on-going cash      generation in thefuture. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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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)                     |   | $      | 238,116 |   |                        | $      | 1,031 |   |   | $ | 231,546 |   |   | $ | 463 |   |   | $ | 5,076 |   |
| Capital lease obligations (1)      |   |   | 703     |   |                        |   | 245 |   |   |   | 421 |   |   |   | 37 |   |   |   | − |   |
| Secured credit facilities (1)      |   |   | 319,919 |   |                        |   | 180,455 | (2) |   |   | 61,975 |   |   |   | 56,383 |   |   |   | 21,106 |   |
| Operating lease      obligations   |   |   | 15,840  |   |                        |   | 2,987 |   |   |   | 4,321 |   |   |   | 3,829 |   |   |   | 4,703 |   |
| Other long-term      liabilities   |   |   | 23,542  |   |                        |   | 11,178 |   |   |   | 1,573 |   |   |   | 1,458 |   |   |   | 9,333 |   |
| Total contractual      obligations |   | $      | 598,120 |   |                        | $      | 195,896 |   |   | $ | 299,836 |   |   | $ | 62,170 |   |   | $ | 40,218 |   |

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| (1)   | Not      included in the table above are estimated interest payments calculated at      rates in effect at September 30, 2008; less than 1 year: $23.3 million;      1-3 years:  $26.1 million; 4-5 years:  $5.9 million;      and after 5 years: $3.3 million. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2)   | Includes      $166.6 million of principal payments on our commercial finance secured      revolving credit facilities. |
|-----------------|------------------------------------------------------------------------------------------------------------------------|

|                                                                                                                                                                                                                                                                                                                     |   |   |    |   | Amount      of Commitment Expiration Per Period |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|---------|--------|-------------------------------------------------|--------|
|                                                                                                                                                                                                                                                                                                                     |   | Total  |    |   | Less      than1      Year                       |   |   | 1      – 3Years |   |   | 4      – 5Years |   |   | After      5Years |   |
| Other      commercial commitments:                                                                                                                                                                                                                                                                                       |   |   |    |   |                                            |   |   |   |   |   |   |   |   |   |   |
| Guarantees                                                                    |   | $      | 4,141   |   |                                            | $      | 4,141 |   |   | $ | − |   |   | $ | - |   |   | $ | - |   |
| Standby letters of      credit                                                |   |   | 246     |   |                                            |   | 246 |   |   |   | − |   |   |   | - |   |   |   | - |   |
| Other commercial      commitments                                                                                                                                                                                                                                                                                        |   |   | 575,977 |   |                                            |   | 2,756 |   |   |   | 110,623 |   |   |   | 64,800 |   |   |   | 397,798 |   |
| Total commercial      commitments                                                                                                                                                                                                                                                                                        |   | $      | 580,364 |   |                                            | $      | 7,143 |   |   | $ | 110,623 |   |   | $ | 64,800 |   |   | $ | 397,798 |   |

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ITEM7A. 

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

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

|   | · | each      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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ITEM8.   

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|                                                                                                                                                                                                       |   | September      30, |     |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------|----------|
|                                                                                                                                                                                                       |   | 2008               |     |   | 2007 |   |
| ASSETS                                                                                                                                                                                                     |   |               |     |   |   |   |
| Cash                                                                                                                                                                                                       |   | $                  | 14,910   |   |   | $ | 14,624 |   |
| Restricted cash                                                                                                                                                                                            |   |               | 23,689   |   |   |   | 19,340 |   |
| Receivables                                                                                                                                                                                                |   |               | 2,014    |   |   |   | 21,255 |   |
| Receivables from managed      entities and related parties                                                                                                                                                 |   |               | 35,674   |   |   |   | 20,177 |   |
| Loans sold, not settled, at fair      value                                                                                                                                                                |   |               | 662      |   |   |   | 148,586 |   |
| Loans held for investment,      net                                                                                                                                                                        |   |               | 219,664  |   |   |   | 285,928 |   |
| Investments in commercial      finance - held for investment, net                                                                                                                                          |   |               | 184,651  |   |   |   | 152,728 |   |
| Investments in commercial      finance - held for sale, at fair value                                                                                                                                      |   |               | 112,730  |   |   |   | 90,112 |   |
| Investments in real estate,      net                                                                                                                                                                       |   |               | 37,972   |   |   |   | 49,041 |   |
| Investment securities      available-for-sale, at fair value                                                                                                                                               |   |               | 22,746   |   |   |   | 51,777 |   |
| Investments in unconsolidated      entities                                                                                                                                                                |   |               | 18,523   |   |   |   | 39,342 |   |
| Property and equipment,      net                                                                                                                                                                           |   |               | 16,886   |   |   |   | 12,286 |   |
| Deferred tax    assets                                                                                                                                                                                     |   |               | 44,467   |   |   |   | 29,877 |   |
| Goodwill                                                                                                                                                                                                   |   |               | 7,969    |   |   |   | 7,941 |   |
| Intangible assets,      net                                                                                                                                                                                |   |               | 4,329    |   |   |   | 4,774 |   |
| Other assets                                                                                                                                                                                               |   |               | 15,764   |   |   |   | 18,664 |   |
| Total assets                                                                                                                                                                                               |   | $                  | 762,650  |   |   | $ | 966,452 |   |
|                                                                                                                                                                                                       |   |               |     |   |   |   |   |   |
| LIABILITIES      AND STOCKHOLDERS’ EQUITY                                                                                                                                                            |   |               |     |   |   |   |   |   |
| Accrued expenses and other      liabilities                                                                                                                                                                |   | $                  | 60,602   |   |   | $ | 55,875 |   |
| Payables to managed entities and      related parties                                                                                                                                                      |   |               | 586      |   |   |   | 1,163 |   |
| Borrowings                                                                                                                                                                                                 |   |               | 554,059  |   |   |   | 706,372 |   |
| Deferred tax      liabilities                                                                                                                                                                              |   |               | 1,060    |   |   |   | 11,124 |   |
| Minority    interests                                                                                                                                                                                      |   |               | 2,610    |   |   |   | 6,571 |   |
| Total    liabilities                                                                                                                                                                                       |   |               | 618,917  |   |   |   | 781,105 |   |
|                                                                                                                                                                                                       |   |               |     |   |   |   |   |   |
| Commitments and      contingencies                                                                                                                                                                         |   |               | −  |   |   |   | − |   |
|                                                                                                                                                                                                       |   |               |     |   |   |   |   |   |
| Stockholders’      equity:                                                                                                                                                                           |   |               |     |   |   |   |   |   |
| Preferred stock, $1.00 par      value, 1,000,000 shares authorized;noneoutstanding                                                                                                                         |   |               | -        |   |   |   | - |   |
| Common stock, $.01 par value,      49,000,000 shares authorized; 27,421,552and 26,986,975 shares issued,      respectively (including nonvestedrestricted      stock of 513,386 and 199,708, respectively) |   |               | 269      |   |   |   | 268 |   |
| Additional paid-in      capital                                                                                                                                                                            |   |               | 269,689  |   |   |   | 264,747 |   |
| (Accumulated deficit) retained      earnings                                                                                                                                                               |   |               | (3,980   | ) |   |   | 27,171 |   |
| Treasury stock, at cost;      9,312,232 and 9,369,960 shares, respectively                                                                                                                                 |   |               | (101,440 | ) |   |   | (102,014 | ) |
| ESOP loan    receivable                                                                                                                                                                                    |   |               | −  |   |   |   | (223 | ) |
| Accumulated other comprehensive      loss                                                                                                                                                                  |   |               | (20,805  | ) |   |   | (4,602 | ) |
| Total stockholders’      equity                                                                                                                                                                      |   |               | 143,733  |   |   |   | 185,347 |   |
|                                                                                                                                                                                                       |   | $                  | 762,650  |   |   | $ | 966,452 |   |

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|                                                                                                                            |   | Years      Ended September 30, |    |
|---------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------|---------|
|                                                                                                                            |   | 2008                           |    |   | 2007 |   |   | 2006 |   |
| REVENUES                                                                                                                        |   |                           |    |   |   |   |   |   |   |
| Commercial      finance                                                                                                         |   | $                              | 96,881  |   |   | $ | 40,692 |   |   | $ | 23,840 |   |
| Real      estate                                                                                                                |   |                           | 31,519  |   |   |   | 22,987 |   |   |   | 23,076 |   |
| Financial      fund management                                                                                                  |   |                           | 27,536  |   |   |   | 63,089 |   |   |   | 28,457 |   |
|                                                                                                                            |   |                           | 155,936 |   |   |   | 126,768 |   |   |   | 75,373 |   |
| COSTS      AND EXPENSES                                                                                                         |   |                           |    |   |   |   |   |   |   |   |   |   |
| Commercial      finance                                                                                                         |   |                           | 42,741  |   |   |   | 19,501 |   |   |   | 14,443 |   |
| Real      estate                                                                                                                |   |                           | 22,602  |   |   |   | 13,190 |   |   |   | 11,522 |   |
| Financial      fund management                                                                                                  |   |                           | 27,737  |   |   |   | 21,264 |   |   |   | 12,099 |   |
| General      and administrative                                                                                                 |   |                           | 16,080  |   |   |   | 11,875 |   |   |   | 9,765 |   |
| Provision      for credit losses                                                                                                |   |                           | 8,718   |   |   |   | 229 |   |   |   | 73 |   |
| Depreciation      and amortization                                                                                              |   |                           | 4,660   |   |   |   | 2,924 |   |   |   | 3,064 |   |
|                                                                                                                            |   |                           | 122,538 |   |   |   | 68,983 |   |   |   | 50,966 |   |
| OPERATING      INCOME                                                                                                           |   |                           | 33,398  |   |   |   | 57,785 |   |   |   | 24,407 |   |
|                                                                                                                            |   |                           |    |   |   |   |   |   |   |   |   |   |
| OTHER      (EXPENSE) INCOME                                                                                                     |   |                           |    |   |   |   |   |   |   |   |   |   |
| Interest      expense                                                                                                           |   |                           | (47,266 | ) |   |   | (33,566 | ) |   |   | (10,119 | ) |
| Minority      interest income (expense), net                                                                                    |   |                           | 4,243   |   |   |   | (2,142 | ) |   |   | (1,775 | ) |
| Loss      on sales of loans and leases                                                                                          |   |                           | (19,583 | ) |   |   | (5,025 | ) |   |   | − |   |
| Impairment      charges on investment securities available-for-sale                                                             |   |                           | (14,467 | ) |   |   | (12,580 | ) |   |   | − |   |
| Other      income, net                                                                                                          |   |                           | 3,036   |   |   |   | 3,210 |   |   |   | 5,154 |   |
|                                                                                                                            |   |                           | (74,037 | ) |   |   | (50,103 | ) |   |   | (6,740 | ) |
| (Loss)      income from continuing operations before income taxesand cumulative effect of a      change in accounting principle |   |                           | (40,639 | ) |   |   | 7,682 |   |   |   | 17,667 |   |
| (Benefit)      provision for income taxes                                                                                       |   |                           | (15,695 | ) |   |   | 2,428 |   |   |   | 1,999 |   |
| (Loss)      income from continuing operations before cumulative effectof a change in accounting      principle                  |   |                           | (24,944 | ) |   |   | 5,254 |   |   |   | 15,668 |   |
| (Loss)      income from discontinued operations, net of tax                                                                     |   |                           | (1,299  | ) |   |   | (1,558 | ) |   |   | 1,231 |   |
| Cumulative      effect of a change in accounting principle, net of tax                                                          |   |                           | − |   |   |   | − |   |   |   | 1,074 |   |
| NET      (LOSS) INCOME                                                                                                          |   | $                              | (26,243 | ) |   | $ | 3,696 |   |   | $ | 17,973 |   |
|                                                                                                                            |   |                           |    |   |   |   |   |   |   |   |   |   |
| Basic      (loss) earnings per common share:                                                                                    |   |                           |    |   |   |   |   |   |   |   |   |   |
| Continuing      operations                                                                                                      |   | $                              | (1.42   | ) |   | $ | 0.30 |   |   | $ | 0.89 |   |
| Discontinued      operations                                                                                                    |   |                           | (0.08   | ) |   |   | (0.09 | ) |   |   | 0.07 |   |
| Cumulative      effect of accounting change                                                                                     |   |                           | − |   |   |   | − |   |   |   | 0.06 |   |
| Net      (loss) income                                                                                                          |   | $                              | (1.50   | ) |   | $ | 0.21 |   |   | $ | 1.02 |   |
| Weighted      average shares outstanding                                                                                        |   |                           | 17,518  |   |   |   | 17,467 |   |   |   | 17,627 |   |
|                                                                                                                            |   |                           |    |   |   |   |   |   |   |   |   |   |
| Diluted      (loss) earnings per common share:                                                                                  |   |                           |    |   |   |   |   |   |   |   |   |   |
| Continuing      operations                                                                                                      |   | $                              | (1.42   | ) |   | $ | 0.27 |   |   | $ | 0.82 |   |
| Discontinued      operations                                                                                                    |   |                           | (0.08   | ) |   |   | (0.08 | ) |   |   | 0.07 |   |
| Cumulative      effect of accounting change                                                                                     |   |                           | − |   |   |   | − |   |   |   | 0.05 |   |
| Net      (loss) income                                                                                                          |   | $                              | (1.50   | ) |   | $ | 0.19 |   |   | $ | 0.94 |   |
| Weighted      average shares outstanding                                                                                        |   |                           | 17,518  |   |   |   | 19,085 |   |   |   | 19,121 |   |
|                                                                                                                            |   |                           |    |   |   |   |   |   |   |   |   |   |
| Dividends      declared per common share                                                                                        |   | $                              | 0.28    |   |   | $ | 0.27 |   |   | $ | 0.24 |   |

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|                                                                                                    |   |   |    |   |       |   |    | (Accumulated |   |   |     |   |   |       |     |   | Accumulated        |   |    |                |   |   |               |   |
|---------------------------------------------------------------------------------------------------------|--------|--------|---------|--------|------------|--------|---------|--------------|--------|--------|----------|--------|--------|------------|----------|--------|--------------------|--------|---------|---------------------|--------|--------|--------------------|--------|
|                                                                                                    |   |   |    |   | Additional |   |    | Deficit)     |   |   |     |   |   | ESOP       |     |   | Other              |   |    | Total               |   |   |               |   |
|                                                                                                    |   | Common |    |   | Paid-In    |   |    | Retained     |   |   | Treasury |   |   | Loan       |     |   | Comprehensive      |   |    | Stockholders’ |   |   | Comprehensive      |   |
|                                                                                                    |   | Stock  |    |   | Capital    |   |    | Earnings     |   |   | Stock    |   |   | Receivable |     |   | Income      (Loss) |   |    | Equity              |   |   | Income      (Loss) |   |
| Balance,      September 30, 2005                                                                        |   | $      | 264     |   |       | $      | 258,019 |         |   | $      | 13,847   |   |   | $          | (82,556  | )      |               | $      | (488    | )                   |   | $      | 2,052              |   |   | $ | 191,138 |   |   |   |   |
| Net      income                                                                                         |   |   | − |   |       |   | − |         |   |   | 17,973   |   |   |       | −  |   |               |   | − |                |   |   | −            |   |   |   | 17,973 |   |   | $ | 17,973 |   |
| Treasury      shares issued                                                                             |   |   | − |   |       |   | 297     |         |   |   | −  |   |   |       | 238      |   |               |   | − |                |   |   | −            |   |   |   | 535 |   |   |   |   |   |
| Stock-based      compensation                                                                           |   |   | − |   |       |   | 1,137   |         |   |   | −  |   |   |       | −  |   |               |   | − |                |   |   | −            |   |   |   | 1,137 |   |   |   |   |   |
| Issuance      of restricted common stock                                                                |   |   | − |   |       |   | 305     |         |   |   | −  |   |   |       | −  |   |               |   | − |                |   |   | −            |   |   |   | 305 |   |   |   |   |   |
| Issuance      of common shares                                                                          |   |   | − |   |       |   | 133     |         |   |   | −  |   |   |       | −  |   |               |   | − |                |   |   | −            |   |   |   | 133 |   |   |   |   |   |
| Tax      benefit from exercise of stock options                                                         |   |   | − |   |       |   | 231     |         |   |   | −  |   |   |       | −  |   |               |   | − |                |   |   | −            |   |   |   | 231 |   |   |   |   |   |
| Purchase      of treasury shares                                                                        |   |   | − |   |       |   | − |         |   |   | −  |   |   |       | (14,642  | )      |               |   | − |                |   |   | −            |   |   |   | (14,642 | ) |   |   |   |   |
| Minority      interest created upon the        conversion of notes                                 |   |   | − |   |       |   | (240    | )            |   |   | −  |   |   |       | −  |   |               |   | − |                |   |   | −            |   |   |   | (240 | ) |   |   |   |   |
| Other      comprehensive income                                                                         |   |   | − |   |       |   | − |         |   |   | −  |   |   |       | −  |   |               |   | − |                |   |   | 2,825              |   |   |   | 2,825 |   |   |   | 2,825 |   |
| Cash      dividends                                                                                     |   |   | − |   |       |   | − |         |   |   | (4,251   | )      |   |       | −  |   |               |   | − |                |   |   | −            |   |   |   | (4,251 | ) |   |   |   |   |
| Repayment      of ESOP loan                                                                             |   |   | − |   |       |   | − |         |   |   | −  |   |   |       | −  |   |               |   | 23      |                |   |   | −            |   |   |   | 23 |   |   |   |   |   |
| Balance,      September 30, 2006                                                                        |   |   | 264     |   |       |   | 259,882 |         |   |   | 27,569   |   |   |       | (96,960  | )      |               |   | (465    | )                   |   |   | 4,877              |   |   |   | 195,167 |   |   | $ | 20,798 |   |
| Cumulative      effect adjustment under SAB 108                                                         |   |   | − |   |       |   | − |         |   |   | 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 | ) |

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|                                                                                                        |   | Years      Ended September 30, |     |
|-------------------------------------------------------------------------------------------------------------|--------|--------------------------------|----------|
|                                                                                                        |   | 2008                           |     |   | 2007 |   |   | 2006 |   |
| CASH      FLOWS FROM OPERATING ACTIVITIES:                                                                  |   |                           |     |   |   |   |   |   |   |
| Net      (loss) income                                                                                      |   | $                              | (26,243  | ) |   | $ | 3,696 |   |   | $ | 17,973 |   |
| Adjustments      to reconcile net (loss) income to net cash provided by(used in) operating      activities: |   |                           |     |   |   |   |   |   |   |   |   |   |
| Cumulative effect of a change in      accounting principle, net of tax                                      |   |                           | −  |   |   |   | − |   |   |   | (1,074 | ) |
| Impairment charges on securities      available-for-sale                                                    |   |                           | 14,467   |   |   |   | 12,580 |   |   |   | − |   |
| Depreciation and      amortization                                                                          |   |                           | 6,024    |   |   |   | 3,699 |   |   |   | 3,180 |   |
| Provision for credit      losses                                                                            |   |                           | 8,718    |   |   |   | 229 |   |   |   | 73 |   |
| Minority interest (income)      expense                                                                     |   |                           | (4,243   | ) |   |   | 2,142 |   |   |   | 1,775 |   |
| Equity in losses (earnings) of      unconsolidated entities                                                 |   |                           | 15,656   |   |   |   | (13,960 | ) |   |   | (5,896 | ) |
| Distributions from      unconsolidated entities                                                             |   |                           | 15,647   |   |   |   | 16,212 |   |   |   | 12,570 |   |
| Loss on sales of loans and      leases                                                                      |   |                           | 19,583   |   |   |   | 5,160 |   |   |   | − |   |
| Gain on sales of investments in      commercial finance assets                                              |   |                           | (1,956   | ) |   |   | (568 | ) |   |   | − |   |
| Gain on sales of investment      securities available-for-sale                                              |   |                           | −  |   |   |   | (3,533 | ) |   |   | (668 | ) |
| Gain on sales of      assets                                                                                |   |                           | (9,488   | ) |   |   | (3,974 | ) |   |   | (7,715 | ) |
| Deferred income tax      benefit                                                                            |   |                           | (16,031  | ) |   |   | (14,891 | ) |   |   | (4,357 | ) |
| Non-cash compensation on      long-term incentive plans                                                     |   |                           | 5,572    |   |   |   | 2,695 |   |   |   | 1,739 |   |
| Non-cash compensation      issued                                                                           |   |                           | 136      |   |   |   | 1,861 |   |   |   | 2,396 |   |
| Non-cash compensation      received                                                                         |   |                           | 159      |   |   |   | (1,404 | ) |   |   | (1,844 | ) |
| Decrease      (increase) in commercial finance investments held for sale                                    |   |                           | 65,297   |   |   |   | 84,950 |   |   |   | (68,376 | ) |
| Changes      in operating assets and liabilities                                                            |   |                           | (18,002  | ) |   |   | 8,143 |   |   |   | 12,770 |   |
| Net      cash provided by (used in) operating activities ofcontinuing      operations                       |   |                           | 75,296   |   |   |   | 103,037 |   |   |   | (37,454 | ) |
| CASH      FLOWS FROM INVESTING ACTIVITIES:                                                                  |   |                           |     |   |   |   |   |   |   |   |   |   |
| Capital      expenditures                                                                                   |   |                           | (6,401   | ) |   |   | (5,441 | ) |   |   | (4,141 | ) |
| Payments      received on real estate loans and real estate                                                 |   |                           | 23,182   |   |   |   | 17,501 |   |   |   | 42,058 |   |
| Investments      in real estate                                                                             |   |                           | (9,802   | ) |   |   | (20,917 | ) |   |   | (33,004 | ) |
| Purchase      of commercial finance assets held for investment                                              |   |                           | (111,700 | ) |   |   | (180,205 | ) |   |   | − |   |
| Proceeds      from sale of commercial finance assets held-for-investment                                    |   |                           | 74,332   |   |   |   | 27,342 |   |   |   | − |   |
| Purchase      of investments                                                                                |   |                           | (251,585 | ) |   |   | (23,225 | ) |   |   | (34,820 | ) |
| Proceeds      from sale of investments                                                                      |   |                           | 40,360   |   |   |   | 7,172 |   |   |   | 7,205 |   |
| Principal      payments received on loans                                                                   |   |                           | 13,931   |   |   |   | − |   |   |   | − |   |
| Net      cash paid for acquisitions                                                                         |   |                           | (8,022   | ) |   |   | (20,708 | ) |   |   | − |   |
| Increase      in other assets                                                                               |   |                           | (17,050  | ) |   |   | (2,862 | ) |   |   | (13,821 | ) |
| Net      cash used in investing activities of continuing operations                                         |   |                           | (252,755 | ) |   |   | (201,343 | ) |   |   | (36,523 | ) |
| CASH      FLOWS FROM FINANCING ACTIVITIES:                                                                  |   |                           |     |   |   |   |   |   |   |   |   |   |
| Increase      in borrowings                                                                                 |   |                           | 930,731  |   |   |   | 745,598 |   |   |   | 570,448 |   |
| Principal      payments on borrowings                                                                       |   |                           | (715,914 | ) |   |   | (649,055 | ) |   |   | (501,088 | ) |
| Distributions      paid to minority interest holders                                                        |   |                           | −  |   |   |   | (2,368 | ) |   |   | (1,600 | ) |
| Dividends      paid                                                                                         |   |                           | (4,908   | ) |   |   | (4,770 | ) |   |   | (4,251 | ) |
| Increase      in restricted cash                                                                            |   |                           | (31,194  | ) |   |   | (10,156 | ) |   |   | (3,103 | ) |
| Proceeds      from issuance of stock                                                                        |   |                           | 182      |   |   |   | 1,226 |   |   |   | 133 |   |
| Purchase      of treasury stock                                                                             |   |                           | (237     | ) |   |   | (5,368 | ) |   |   | (14,642 | ) |
| Tax      benefit from exercise of stock options                                                             |   |                           | −  |   |   |   | 2,090 |   |   |   | 231 |   |
| Other                                                                                                       |   |                           | 315      |   |   |   | (611 | ) |   |   | − |   |
| Net      cash provided by financing activities of continuing    operations                                  |   |                           | 178,975  |   |   |   | 76,586 |   |   |   | 46,128 |   |
| CASH      FLOWS FROM DISCONTINUED OPERATIONS:                                                               |   |                           |     |   |   |   |   |   |   |   |   |   |
| Operating      activities                                                                                   |   |                           | (408     | ) |   |   | (133 | ) |   |   | 1,771 |   |
| Investing      activities                                                                                   |   |                           | (86      | ) |   |   | − |   |   |   | 37,172 |   |
| Financing      activities                                                                                   |   |                           | (736     | ) |   |   | (1,145 | ) |   |   | − |   |
| Net      cash (used in) provided by discontinued operations                                                 |   |                           | (1,230   | ) |   |   | (1,278 | ) |   |   | 38,943 |   |
| Net      cash retained by entities previously consolidated                                                  |   |                           | −  |   |   |   | − |   |   |   | (3,825 | ) |
| Increase      (decrease) in cash                                                                            |   |                           | 286      |   |   |   | (22,998 | ) |   |   | 7,269 |   |
| Cash      at beginning of year                                                                              |   |                           | 14,624   |   |   |   | 37,622 |   |   |   | 30,353 |   |
| Cash      at end of year                                                                                    |   | $                              | 14,910   |   |   | $ | 14,624 |   |   | $ | 37,622 |   |

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|   | · | LEAF      Financial Corporation (“LEAF”) sponsors and manages five investment      entities that offer regular cash payments to their      investors.  Four of these entities are publicly-held      partnerships and one is a limited liability company that the Company      consolidates.  LEAF as general and limited partner or managing      member, originates and acts as the servicer of leases and loans sold to      its various sponsored investmententities; |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | - | LEAF      Equity Appreciation Fund I, L.P., which commenced operations in March      2003, raised $17.1 million; |
|--------|---|------------------------------------------------------------------------------------------------------------------|

|   | - | LEAF      Equity Appreciation Fund II, L.P., which commenced operations in April      2005, raised $60.0 million; |
|--------|---|-------------------------------------------------------------------------------------------------------------------|

|   | - | LEAF      Equipment Leasing Income Fund III, L.P. (“Fund III”), which commenced      operations in March 2007, raised $120.0million; |
|--------|---|--------------------------------------------------------------------------------------------------------------------------------------------------|

|   | - | LEAF      Equipment Finance Fund 4, L.P. (“Fund 4”), which commenced operations in      September 2008.  Fund 4 is in its offering stage and is      authorized to raise gross offering proceeds of up to $200.0 million;      and |
|--------|---|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | - | LEAF      Commercial Finance Fund LLC (“LCFF”), a wholly-owned subsidiary, commenced      operations in May 2008.  LCFF is a new investment fund offering      investors units of participation in the form of 8.25% promissory notes of      LCFF in the maximum amount of $25.0million. |
|--------|---|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Resource      Real Estate Funding, Inc. (“RREF”) which, on behalf of RCC, manages the      commercial real estate debt portfolio comprised principally of A notes,      whole loans, mortgage participations, B notes, mezzanine debt and      related commercial real estate securities.  In addition, RREF      manages a separate portfolio of distressed real estate loans, principally      acquired at a substantial discount; |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

|   | · | Resource      Real Estate which manages the loans, owned assets and ventures, known      collectively as the legacyportfolio. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------|

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|   | · | Trapeza      Capital Management, LLC (“Trapeza”), a joint venture between us and an      unrelated third party, which 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; |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Apidos      Capital Management, LLC (“Apidos”), which invests in, finances, structures      and manages investments in bankloans; |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------|

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

|   | · | Resource      Europe Management Ltd., which invests in, structures and manages      investments in international bankloans; |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------|

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

|   | · | Resource      Capital Markets, Inc., which 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,      REIT and other real estate related companies as well as securities of      collateralized debt obligations (“CDOs”);and |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Resource      Capital Manager, Inc. (“RCM”), which provides investment management and      administrative services to RCC under a management agreement between RCM      and RCC. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | · | the      reclass of investments in commercial finance assets into those held for      investment and those held for sale |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------|

|   | · | loss      on sales of loans and leases and impairment charges on investment      securities available-for-sale were separately disclosed on the statements      of operations; |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | provision      for credit losses was reported separately from general and administrative      expenses; and |
|--------|--------|-------------------------------------------------------------------------------------------------------------|

|   | · | one      operating segment was reclassed to discontinued  operations; |
|--------|--------|-----------------------------------------------------------------------|

|   | · | accrued      losses on pending loan settlements was reclassified as an offset to loans      sold not settled to properly reflect net  proceeds. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------|

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|                                                                              |   | Years      Ended September 30, |     |
|-----------------------------------------------------------------------------------|--------|--------------------------------|----------|
|                                                                              |   | 2008                           |     |   | 2007 |   |   | 2006 |   |
| Cash      paid for:                                                               |   |                           |     |   |   |   |   |   |   |
| Interest                                                                          |   | $                              | 57,845   |   |   | $ | 18,929 |   |   | $ | 12,294 |   |
| Income      taxes                                                                 |   | $                              | 3,880    |   |   | $ | 3,251 |   |   | $ | 6,106 |   |
| Non-cash      activities include the following:                                   |   |                           |     |   |   |   |   |   |   |   |   |   |
| Transfer      of loans held for investment:                                       |   |                           |     |   |   |   |   |   |   |   |   |   |
| Reduction of loans held for      investment                                       |   | $                              | 325,365  |   |   | $ | 418,801 |   |   | $ | 541,060 |   |
| Termination of associated      warehouse credit facilities                        |   | $                              | (337,276 | ) |   | $ | 418,284 |   |   | $ | 538,557 |   |
| Activity      on secured warehouse credit facilities related to bankloans:        |   |                           |     |   |   |   |   |   |   |   |   |   |
| Purchase of    loans                                                              |   | $                              | 51,524   |   |   | $ | 1,085,863 |   |   | $ | 546,303 |   |
| (Repayments of) borrowings to      fund purchases of loans                        |   | $                              | (100,368 | ) |   | $ | 788,527 |   |   | $ | 510,434 |   |
| Proceeds from sale of      loans                                                  |   | $                              | 7,366    |   |   | $ | 280,970 |   |   | $ | 24,812 |   |
| Principal payments on      loans                                                  |   | $                              | 6,322    |   |   | $ | 60,896 |   |   | $ | 8,805 |   |
| Use of funds held in escrow for      purchases of loans                           |   | $                              | −  |   |   | $ | 3,000 |   |   | $ | − |   |
| (Loss) gain on sales of      loans                                                |   | $                              | −  |   |   | $ | (5,025 | ) |   | $ | 28 |   |
| (Settlement) sale of loans      traded, not settled, including use ofescrow funds |   | $                              | (152,706 | ) |   | $ | 152,706 |   |   | $ | − |   |
| Distribution      of RCC stock-based awards                                       |   | $                              | −  |   |   | $ | − |   |   | $ | 5,621 |   |
| Acquisition      of commercial finance assets (see Note 7):                       |   |                           |     |   |   |   |   |   |   |   |   |   |
| 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    |   |   | $ | − |   |   | $ | 5,135 |   |

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|                                                                 |   | Years      Ended September 30, |    |
|----------------------------------------------------------------------|--------|--------------------------------|---------|
|                                                                 |   | 2008                           |    |   | 2007 |   |   | 2006 |   |
| Basic      EPS                                                       |   |                           |    |   |   |   |   |   |   |
| Continuing      operations                                           |   | $                              | (24,944 | ) |   | $ | 5,254 |   |   | $ | 15,668 |   |
| Discontinued      operations                                         |   |                           | (1,299  | ) |   |   | (1,558 | ) |   |   | 1,231 |   |
| Cumulative      effect of accounting change                          |   |                           | − |   |   |   | − |   |   |   | 1,074 |   |
| Net      (loss) income                                               |   | $                              | (26,243 | ) |   | $ | 3,696 |   |   | $ | 17,973 |   |
|                                                                 |   |                           |    |   |   |   |   |   |   |   |   |   |
| Diluted      EPS                                                     |   |                           |    |   |   |   |   |   |   |   |   |   |
| Continuing      operations                                           |   | $                              | (24,944 | ) |   | $ | 5,254 |   |   | $ | 15,668 |   |
| Minority      interest from the assumed conversion of notes      (1) |   |                           | − |   |   |   | − |   |   |   | (35 | ) |
| (Loss)      income from continuing operations, as adjusted           |   |                           | (24,944 | ) |   |   | 5,254 |   |   |   | 15,633 |   |
| Discontinued      operations                                         |   |                           | (1,299  | ) |   |   | (1,558 | ) |   |   | 1,231 |   |
| Cumulative      effect of accounting change                          |   |                           | − |   |   |   | − |   |   |   | 1,074 |   |
| Net      (loss) income                                               |   | $                              | (26,243 | ) |   | $ | 3,696 |   |   | $ | 17,938 |   |
|                                                                 |   |                           |    |   |   |   |   |   |   |   |   |   |
| Shares (2)                                                      |   |                           |    |   |   |   |   |   |   |   |   |   |
| Basic      shares outstanding                                        |   |                           | 17,518  |   |   |   | 17,467 |   |   |   | 17,627 |   |
| Dilutive      effect of equity award plans                           |   |                           | − |   |   |   | 1,618 |   |   |   | 1,494 |   |
| Dilutive      shares outstanding                                     |   |                           | 17,518  |   |   |   | 19,085 |   |   |   | 19,121 |   |

----

|        (1) | The      Company owed $11,500 in convertible notes to two executive officers of      LEAF which were converted on February 2006 at the election of the      executives into 11.5% of LEAF’s common stock.  Diluted EPS for      fiscal 2006 reflects the assumed conversion of these notes as of the      beginning of fiscal 2006 through the conversion date and the related      minority interest expense, net of tax, as a reduction of income from      continuing operations. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|        (2) | For      fiscal 2008, all options and other common stock equivalents were excluded      from the computation of Diluted EPS due to the net loss for the      year.  Of the options outstanding at September 30, 2008, a total      of 978,507 options had exercise prices in the range from $15.91 to $27.84,      which would have been considered antidilutive if there had been net income      reported for the year.  At September 30, 2007 and 2006,      outstanding options to purchase 527,250 shares (exercise prices ranging      from $16.66 to $27.84) and 30,000 shares (exercise price of $21.09),      respectively, were excluded from the computation of Diluted EPS as their      effect would have beenantidilutive. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                |   | September      30, |   |
|-----------------------------------------------------|--------|--------------------|--------|
|                                                |   | 2008               |   |   | 2007 |   |
| Escrow      funds − financial fund management |   | $                  | 13,736 |   |   | $ | 12,282 |   |
| Collection      accounts – commercial finance |   |               | 8,888  |   |   |   | 5,884 |   |
| Escrow      funds − real estate and other     |   |               | 1,065  |   |   |   | 1,174 |   |
|                                                |   | $                  | 23,689 |   |   | $ | 19,340 |   |

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|                                |   | September      30, |    |
|-------------------------------------|--------|--------------------|---------|
|                                |   | 2008               |    |   | 2007 |   |
| Bank      loans:                    |   |               |    |   |   |   |
| Principal                           |   | $                  | 223,659 |   |   | $ | 284,906 |   |
| Unamortized    premium              |   |               | 226     |   |   |   | 1,160 |   |
| Unamortized    discount             |   |               | (2,626  | ) |   |   | (138 | ) |
|                                |   |               | 221,259 |   |   |   | 285,928 |   |
| Allowance for credit      losses    |   |               | (1,595  | ) |   |   | − |   |
| Loans      held for investment, net |   | $                  | 219,664 |   |   | $ | 285,928 |   |
|                                |   |               |    |   |   |   |   |   |
| Loans      sold, not settled        |   | $                  | 662     |   |   | $ | 148,586 |   |

| Balance,      October 1, 2007    |   | $      | − |   |
|----------------------------------|--------|--------|---------|--------|
| Provision for credit      losses |   |   | 2,622   |   |
| Charge-offs                      |   |   | (1,027  | )      |
| Balance,      September 30, 2008 |   | $      | 1,595   |   |

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----

(Back to Index)

|                                         |   | NetBank |     |   | Dolphin      Capital Corp. |   |    | Total  |   |
|----------------------------------------------|--------|---------|----------|--------|----------------------------|--------|---------|--------|--------|
| Leases      and loans                        |   | $       | 412,539  |   |                       | $      | − |   |   | $ | 412,539 |   |
| Property      and equipment and other assets |   |    | 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,      customer lists, business platform and other intangibles |   |   | 12,701   |   |
| Borrowings      under LEAF debt facility                               |   |   | (59,809  | )      |
| Leases      and loans acquired by LEAF’s investment partnerships |   |   | (201,665 | )      |
| Net cash paid for      acquisition                                     |   | $      | 20,708   |   |

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----

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|                                             |   | September      30, 2008  |    |   | September      30, 2007 |   |    |
|--------------------------------------------------|--------|--------------------------|---------|--------|-------------------------|--------|---------|
|                                             |   | Held      for Investment |    |   | Held      for Sale      |   |    | Total |   |   | Held      for Investment |   |   | Held      for Sale |   |   | Total |
| Notes      receivable (1)                        |   | $                        | 125,904 |   |                    | $      | 71,988  |   |   | $ | 197,892 |   |   | $ | 125,149 |   |   | $ | 66,700 |   |   | $ | 191,849 |   |
| Direct      financing leases, net                |   |                     | 46,732  |   |                    |   | 38,030  |   |   |   | 84,762 |   |   |   | 20,678 |   |   |   | 23,285 |   |   |   | 43,963 |   |
| Future      payment card receivables, net        |   |                     | 13,667  |   |                    |   | − |   |   |   | 13,667 |   |   |   | 6,899 |   |   |   | − |   |   |   | 6,899 |   |
| Assets      subject to operating leases, net (2) |   |                     | 98      |   |                    |   | 2,712   |   |   |   | 2,810 |   |   |   | 122 |   |   |   | 127 |   |   |   | 249 |   |
| Allowance      for credit losses                 |   |                     | (1,750  | )      |                    |   | − |   |   |   | (1,750 | ) |   |   | (120 | ) |   |   | − |   |   |   | (120 | ) |
| Investments in commercial      finance, net      |   | $                        | 184,651 |   |                    | $      | 112,730 |   |   | $ | 297,381 |   |   | $ | 152,728 |   |   | $ | 90,112 |   |   | $ | 242,840 |   |

----

|        (1) | The      interest rates on notes receivable generally range from 7% to      15%. |
|-----------------|----------------------------------------------------------------------------------|

|        (2) | Net      of accumulated depreciation of $105,000 and $3,000 for commercial finance      assets held for sale as of September 30, 2008 and 2007, respectively, and      $28,000 and $4,000 for those commercial assets held for investment as of      September 30, 2008 and 2007,respectively. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                |   | September      30, 2008  |   |   | September      30, 2007 |   |
|-----------------------------------------------------|--------|--------------------------|--------|--------|-------------------------|--------|
|                                                |   | Held      for Investment |   |   | Held      for Sale      |   |   | Total |   |   | Held      for Investment |   |   | Held      for Sale |   |   | Total |   |
| Total      future minimum lease paymentsreceivables |   | $                        | 54,090 |   |                    | $      | 44,286 |   |   | $ | 98,376 |   |   | $ | 23,251 |   |   | $ | 26,807 |   |   | $ | 50,058 |   |
| Initial      direct costs, net ofamortization       |   |                     | 549    |   |                    |   | 1,289 |   |   |   | 1,838 |   |   |   | 309 |   |   |   | 349 |   |   |   | 658 |   |
| Unguaranteed      residuals                         |   |                     | 109    |   |                    |   | 450 |   |   |   | 559 |   |   |   | 183 |   |   |   | 260 |   |   |   | 443 |   |
| Unearned      income                                |   |                     | (8,016 | )      |                    |   | (7,995 | ) |   |   | (16,011 | ) |   |   | (3,065 | ) |   |   | (4,131 | ) |   |   | (7,196 | ) |
| Investments in direct financing      leases, net    |   | $                        | 46,732 |   |                    | $      | 38,030 |   |   | $ | 84,762 |   |   | $ | 20,678 |   |   | $ | 23,285 |   |   | $ | 43,963 |   |

|                                                |   | September      30, |   |
|-----------------------------------------------------|--------|--------------------|--------|
|                                                |   | 2008               |   |   | 2007 |   |
| Total      future payment card receivables          |   | $                  | 16,845 |   |   | $ | 8,135 |   |
| Unearned      income                                |   |               | (3,178 | ) |   |   | (1,236 | ) |
| Investments      in future payment card receivables |   | $                  | 13,667 |   |   | $ | 6,899 |   |

| Balance,      September 30, 2006 |   | $      | − |   |
|----------------------------------|--------|--------|---------|--------|
| Provision for credit      losses |   |   | 229     |   |
| Charge-offs                      |   |   | (195    | )      |
| Recoveries                       |   |   | 86      |   |
| Balance,      September 30, 2007 |   |   | 120     |   |
| Provision for credit      losses |   |   | 5,596   |   |
| Charge-offs                      |   |   | (4,047  | )      |
|    Recoveries     |   |   | 81      |   |
| Balance,      September 30, 2008 |   | $      | 1,750   |   |

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----

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|       |   | NotesReceivable |    |   | Direct      FinancingLeases |   |   | OperatingLeases      (1) |   |
|------------|--------|-----------------|---------|--------|-----------------------------|--------|--------|--------------------------|--------|
| 2009       |   | $               | 32,175  |   |                        | $      | 15,041 |                     |   | $ | 37 |   |
| 2010       |   |            | 27,396  |   |                        |   | 14,366 |                     |   |   | 31 |   |
| 2011       |   |            | 20,175  |   |                        |   | 12,136 |                     |   |   | 21 |   |
| 2012       |   |            | 13,140  |   |                        |   | 8,018  |                     |   |   | − |   |
| 2013       |   |            | 10,208  |   |                        |   | 3,773  |                     |   |   | − |   |
| Thereafter |   |            | 22,810  |   |                        |   | 756    |                     |   |   | − |   |
|       |   | $               | 125,904 |   |                        | $      | 54,090 |                     |   | $ | 89 |   |

----

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

|                                                             |   | September      30, |    |
|------------------------------------------------------------------|--------|--------------------|---------|
|                                                             |   | 2008               |    |   | 2007 |   |
| Real      estate loans:                                          |   |               |    |   |   |   |
| Balance, beginning of      period                                |   | $                  | 27,765  |   |   | $ | 28,739 |   |
| New loans                                                        |   |               | 1,500   |   |   |   | 1,597 |   |
| Additions to existing      loans                                 |   |               | − |   |   |   | 42 |   |
| Collection of      principal                                     |   |               | (16,691 | ) |   |   | (3,373 | ) |
| Interest received                                                |   |               | (4,221  | ) |   |   | (766 | ) |
| Accreted and accrued interest      income                        |   |               | 1,549   |   |   |   | 1,221 |   |
| Gains on sales                                                   |   |               | 7,511   |   |   |   | 305 |   |
| Balance, end of    period                                        |   |               | 17,413  |   |   |   | 27,765 |   |
| Less allowance for credit      losses                            |   |               | (1,129  | ) |   |   | (629 | ) |
| Real estate loans,    net                                        |   |               | 16,284  |   |   |   | 27,136 |   |
| Real      estate:                                                |   |               |    |   |   |   |   |   |
| Ventures                                                         |   |               | 7,837   |   |   |   | 9,769 |   |
| Owned, net of accumulated      depreciation of $2,515 and $2,125 |   |               | 13,851  |   |   |   | 12,136 |   |
| Total real estate                                                |   |               | 21,688  |   |   |   | 21,905 |   |
| Investments      in real estate, net                             |   | $                  | 37,972  |   |   | $ | 49,041 |   |

|                             |   | Years      Ended September 30, |    |
|----------------------------------|--------|--------------------------------|---------|
|                             |   | 2008                           |    |   | 2007 |   |   | 2006 |   |
| Balance,      beginning of year  |   | $                              | 629     |   |   | $ | 770 |   |   | $ | 770 |   |
| Provision for credit      losses |   |                           | 500     |   |   |   | − |   |   |   | − |   |
| Charge-offs                      |   |                           | − |   |   |   | (141 | ) |   |   | − |   |
| Balance,      end of year        |   | $                              | 1,129   |   |   | $ | 629 |   |   | $ | 770 |   |

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----

(Back to Index)

|                                                |   | September      30, |   |
|-----------------------------------------------------|--------|--------------------|--------|
|                                                |   | 2008               |   |   | 2007 |   |
| Equity      securities:                             |   |               |   |   |   |   |
| RCC stock                                           |   | $                  | 12,002 |   |   | $ | 22,099 |   |
| TBBK stock                                          |   |               | 591    |   |   |   | 2,184 |   |
|          CDO securities              |   |               | 10,153 |   |   |   | 27,494 |   |
| Total investment securities      available-for-sale |   | $                  | 22,746 |   |   | $ | 51,777 |   |

|                    |   | Cost      or Amortized Cost |   |   | Unrealized      Gains |   |    | Unrealized      Losses |   |   | Fair      Value |   |
|-------------------------|--------|-----------------------------|--------|--------|-----------------------|--------|---------|------------------------|--------|--------|-----------------|--------|
| September      30, 2008 |   | $                           | 49,775 |   |                  | $      | − |                   |   | $      | (27,029         | )      |   | $ | 22,746 |   |
| September      30, 2007 |   | $                           | 65,654 |   |                  | $      | 1,036   |                   |   | $      | (14,913         | )      |   | $ | 51,777 |   |

|                    |   | Less      than 12 Months |   |   | More      than 12 Months |   |
|-------------------------|--------|--------------------------|--------|--------|--------------------------|--------|
|                    |   | Fair      Value          |   |   | Unrealized      Losses   |   |   | Number      of Securities |   |   | Fair      Value |   |   | Unrealized      Losses |   |   | Number      of Securities |   |
| September      30, 2008 |   | $                        | 591    |   |                     | $      | (583 | ) |   |   | 1 |   |   | $ | 22,155 |   |   | $ | (26,446 | ) |   |   | 12 |   |
| September      30, 2007 |   | $                        | 39,291 |   |                     | $      | (9,667 | ) |   |   | 8 |   |   | $ | 6,700 |   |   | $ | (5,246 | ) |   |   | 5 |   |

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----

(Back to Index)

|                                              |   | September      30, |    |   | Range      of Combined |   |
|---------------------------------------------------|--------|--------------------|---------|--------|------------------------|--------|
|                                              |   | 2008               |    |   | 2007                   |   |   | Partnership      Interests |   |
| Real      estate investment partnerships          |   | $                  | 10,422  |   |                   | $      | 7,926 |   |   | 3%      to 11% |   |
| Financial      fund management partnerships       |   |               | 4,927   |   |                   |   | 7,185 |   |   | 5%      to 10% |   |
| Commercial      finance investment partnerships   |   |               | 1,636   |   |                   |   | 2,109 |   |   | 1%      to 5% |   |
| Trapeza      entities (1)                         |   |               | 1,538   |   |                   |   | 18,755 |   |   | 5%      to 50% |   |
| TIC      property interests                       |   |               | − |   |                   |   | 3,367 |   |   |   | N/A |   |
| Total investments in      unconsolidated entities |   | $                  | 18,523  |   |                   | $      | 39,342 |   |   |   |   |   |

----

|        (1) | Includes      total write-downs to fair value of $23.2 million and $2.7 million for      fiscal 2008 and 2007, respectively.  These amounts are reflected      as a reduction of financial fund management  revenues. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                    |   | Years      Ended September 30, |   |
|-------------------------|--------|--------------------------------|--------|
|                    |   | 2008                           |   |   | 2007 |   |   | 2006 |   |
| Management      fees    |   | $                              | 7,948  |   |   | $ | 13,160 |   |   | $ | 6,810 |   |
| Operating      expenses |   |                           | (2,360 | ) |   |   | (2,876 | ) |   |   | (1,746 | ) |
| Other      expenses     |   |                           | (245   | ) |   |   | (29 | ) |   |   | (170 | ) |
| Net      income         |   | $                              | 5,343  |   |   | $ | 10,255 |   |   | $ | 4,894 |   |

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----

(Back to Index)

|                                           |   | Estimated      Useful |    |   | September      30, |   |
|------------------------------------------------|--------|-----------------------|---------|--------|--------------------|--------|
|                                           |   | Lives                 |    |   | 2008               |   |   | 2007 |   |
| Land                                           |   |                  | − |   |               | $      | 200 |   |   | $ | − |   |
| Building                                       |   | 39      years         |    |   |               | 1,666  |   |   |   | − |   |
| Leasehold      improvements                    |   | 1-15      years       |    |   |               | 6,228  |   |   |   | 4,420 |   |
| Real      estate assets − FIN 46-R       |   | 40      years         |    |   |               | 3,900  |   |   |   | 3,900 |   |
| Furniture      and equipment                   |   | 3-10      years       |    |   |               | 12,394 |   |   |   | 9,438 |   |
|                                           |   |                  |    |   |               |   | 24,388 |   |   |   | 17,758 |   |
| Accumulated      depreciation and amortization |   |                  |    |   |               |   | (7,502 | ) |   |   | (5,472 | ) |
| Property and equipment,      net               |   |                  |    |   |               | $      | 16,886 |   |   | $ | 12,286 |   |

|                          |   | Estimated      Useful |    |   | September      30, |   |
|-------------------------------|--------|-----------------------|---------|--------|--------------------|--------|
|                          |   | Lives                 |    |   | 2008               |   |   | 2007 |   |
| Customer      lists           |   | 10      years         |    |   | $                  | 4,727  |   |   | $ | 4,760 |   |
| Other      intangibles        |   |                  | − |   |               |   | − |   |   |   | 332 |   |
|                          |   |                  |    |   |               |   | 4,727 |   |   |   | 5,092 |   |
| Accumulated      amortization |   |                  |    |   |               |   | (398 | ) |   |   | (318 | ) |
| Intangible assets,      net   |   |                  |    |   |               | $      | 4,329 |   |   | $ | 4,774 |   |

| 2009       |   | $      | 692   |   |
|------------|--------|--------|-------|--------|
| 2010       |   |   | 809   |   |
| 2011       |   |   | 836   |   |
| 2012       |   |   | 699   |   |
| 2013       |   |   | 459   |   |
| Thereafter |   |   | 834   |   |
|       |   | $      | 4,329 |   |

(Back to Index)

----

(Back to Index)

|                                            |   | As      of September 30, |    |
|-------------------------------------------------|--------|--------------------------|---------|
|                                            |   | 2008                     |    |   | 2007 |   |
|                                            |   | Amount      of Facility  |    |   | Borrowings      Outstanding |   |   | Borrowings      Outstanding |   |
| Commercial      finance:                        |   |                     |    |   |   |   |   |   |   |
| Secured revolving credit      facilities        |   | $                        | 250,000 |   |   | $ | 140,369 |   |   | $ | 137,637 |   |
|                                            |   |                     | 150,000 |   |   |   | 128,950 |   |   |   | 83,900 |   |
| LCFF promissory      notes                      |   |                     | − |   |   |   | 3,416 |   |   |   | − |   |
| Subtotal − Commercial      finance        |   | $                        | 400,000 |   |   |   | 272,735 |   |   |   | 221,537 |   |
|                                            |   |                     |    |   |   |   |   |   |   |   |   |   |
| Financial      fund management:                 |   |                     |    |   |   |   |   |   |   |   |   |   |
| Consolidated under FIN      46-R:               |   |                     |    |   |   |   |   |   |   |   |   |   |
| CDO senior notes, net (1)                       |   | $                        | 218,000 |   |   |   | 213,321 |   |   |   | − |   |
| Secured warehouse credit      facilities        |   |                     | − |   |   |   | − |   |   |   | 439,539 |   |
| Subtotal − Financial fund      management |   | $                        | 218,000 |   |   |   | 213,321 |   |   |   | 439,539 |   |
|                                            |   |                     |    |   |   |   |   |   |   |   |   |   |
| Corporate:                                      |   |                     |    |   |   |   |   |   |   |   |   |   |
| Secured revolving credit      facilities        |   | $                        | 55,000  |   |   |   | 43,600 |   |   |   | 29,600 |   |
|                                            |   |                     | 14,000  |   |   |   | 7,000 |   |   |   | − |   |
| Subtotal −      Corporate                 |   | $                        | 69,000  |   |   |   | 50,600 |   |   |   | 29,600 |   |
|                                            |   |                     |    |   |   |   |   |   |   |   |   |   |
| Other      debt                                 |   |                     |    |   |   |   | 17,403 |   |   |   | 15,696 |   |
| Total borrowings      outstanding               |   |                     |    |   |   | $ | 554,059 |   |   | $ | 706,372 |   |

----

|        (1) | CDO      senior notes are reflected net of deferred issuance costs of $4.7      million. |
|-----------------|------------------------------------------------------------------------------------------|

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----

(Back to Index)

|   | ·   | In      July 2007, a $300.0 million facility was opened with affiliates of Morgan      Stanley with interest at LIBOR plus 0.75%.  The Company      determined to end this facility at its maturity date on January 16, 2008.  The      Company recorded a loss as of December 31, 2007 from the subsequent sale      of the underlying loans in the portfolio.  The Company has no      further exposure under this facility.  Average borrowings for      fiscal 2008 and 2007 were $12.7 million and $3.0 million, respectively, at      an average interest rate of 5.8% and 6.1%,  respectively. |
|--------|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ·   | In      January 2007, a EUR 400.0 million facility was opened with Morgan Stanley      with interest at European LIBOR plus 0.75%.  The Company also      determined to end this facility at its maturity date on January 11,      2008.  The Company recorded a loss as of December 31, 2007 from      the subsequent sale of the underlying loans.  The Company has no      further exposure under this facility.  Average borrowings for      fiscal 2008 and 2007 were $35.7 million and $108.0 million, respectively,      at an average interest rate of 5.4% and 5.0%,  respectively. |
|--------|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ·   | In      connection with the closing of Apidos CDO VI and the issuance of its      senior notes, a $400.0 million facility opened in August 2006 with      affiliates of Credit Suisse Securities (USA) LLC was terminated in      December 2007.  The interest rate was LIBOR plus      0.625%.  Average borrowings for fiscal 2008 and 2007 were $36.2      million and $138.5 million, respectively, at an average interest rate of      5.7% and 6.0%, respectively. |
|--------|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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----

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| 2009       |   | $      | 181,731 |            |
|------------|--------|--------|---------|-----------------|
| 2010       |   |   | 39,929  |            |
| 2011       |   |   | 254,013 | (1)             |
| 2012       |   |   | 45,996  |            |
| 2013       |   |   | 10,887  |            |
| Thereafter |   |   | 26,182  |            |
|       |   | $      | 558,738 |   (2) |

----

|        (1) | Includes      the repayment of $218.0 million of senior notes issued by Apidos CDO VI      which the Company consolidates in accordance with FIN      46-R.  These notes are subject to an early call feature      beginning in January 2011 based on certain conditions being met and a      majority vote by the note holders. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|        (2) | Reflects      gross principal repayments excluding reduction for unamortized deferred      issuance costs of $4.7 million for Apidos CDO  VI. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------|

(Back to Index)

----

(Back to Index)

|                                                                                                                          |   | Years      Ended September 30, |    |
|-------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------|---------|
|                                                                                                                          |   | 2008                           |    |   | 2007 |   |   | 2006 |   |
| Net      (loss) income                                                                                                        |   | $                              | (26,243 | ) |   | $ | 3,696 |   |   | $ | 17,973 |   |
| Other      comprehensive (loss) income:                                                                                       |   |                           |    |   |   |   |   |   |   |   |   |   |
| Unrealized (losses) gains on      investment securitiesavailable-for-sale, net of tax      of $(11,375), $(11,908) and $2,003 |   |                           | (21,134 | ) |   |   | (14,027 | ) |   |   | 3,225 |   |
| Less: reclassification for      losses (gains) realized, net of taxof $5,524, $4,431 and      $255                            |   |                           | 9,010   |   |   |   | 4,612 |   |   |   | (400 | ) |
|                                                                                                                          |   |                           | (12,124 | ) |   |   | (9,415 | ) |   |   | 2,825 |   |
| Minimum pension liability      adjustment, net of tax of $(941),$(245) and $0                                                 |   |                           | (1,680  | ) |   |   | (256 | ) |   |   | − |   |
| Unrealized losses on hedging      contracts, net of tax of$(1,101), $(703) and      $0                                        |   |                           | (1,771  | ) |   |   | (732 | ) |   |   | − |   |
| Foreign currency translation      (loss) gain                                                                                 |   |                           | (628    | ) |   |   | 924 |   |   |   | − |   |
| Comprehensive      (loss) income                                                                                              |   | $                              | (42,446 | ) |   | $ | (5,783 | ) |   | $ | 20,798 |   |

|                                                                            |   | Years      Ended September 30, |   |
|---------------------------------------------------------------------------------|--------|--------------------------------|--------|
|                                                                            |   | 2008                           |   |   | 2007 |   |   | 2006 |   |
| Balance      at beginning of year                                               |   | $                              | (732   | ) |   | $ | − |   |   | $ | − |   |
| Current      period changes in fair value, net of tax of $(1,101),$(703) and $0 |   |                           | (1,771 | ) |   |   | (732 | ) |   |   | − |   |
| Balance      at end of year                                                     |   | $                              | (2,503 | ) |   | $ | (732 | ) |   | $ | − |   |

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----

(Back to Index)

|                                       |   | Years      Ended September 30, |    |
|--------------------------------------------|--------|--------------------------------|---------|
|                                       |   | 2008                           |    |   | 2007 |   |   | 2006 |   |
| (Benefit)      provision for income taxes: |   |                           |    |   |   |   |   |   |   |
| Current:                                   |   |                           |    |   |   |   |   |   |   |
| Federal                                    |   | $                              | 336     |   |   | $ | 11,015 |   |   | $ | 5,238 |   |
| State                                      |   |                           | − |   |   |   | 6,304 |   |   |   | 1,118 |   |
| Deferred                                   |   |                           | (16,031 | ) |   |   | (14,891 | ) |   |   | (4,357 | ) |
| Income      tax (benefit) provision        |   | $                              | (15,695 | ) |   | $ | 2,428 |   |   | $ | 1,999 |   |

|                                               |   | Years      Ended September 30, |    |
|----------------------------------------------------|--------|--------------------------------|---------|
|                                               |   | 2008                           |    |   | 2007 |   |   | 2006 |   |
| Statutory      tax rate                            |   |                           | 35      | % |   |   | 35 | % |   |   | 35 | % |
| State      and local taxes, net of federal benefit |   |                           | 5       |   |   |   | 5 |   |   |   | 5 |   |
| Valuation      allowance for deferred tax assets   |   |                           | (4      | ) |   |   | (14 | ) |   |   | (22 | ) |
| Non-deductible      compensation                   |   |                           | − |   |   |   | 5 |   |   |   | 1 |   |
| Equity      compensation expense                   |   |                           | (1      | ) |   |   | 6 |   |   |   | 1 |   |
| Deferred      tax assets for net operating losses  |   |                           | 1       |   |   |   | (4 | ) |   |   | (6 | ) |
| Other      items                                   |   |                           | 3       |   |   |   | (1 | ) |   |   | (3 | ) |
|                                               |   |                           | 39      | % |   |   | 32 | % |   |   | 11 | % |

|                                                    |   | September      30, |    |
|---------------------------------------------------------|--------|--------------------|---------|
|                                                    |   | 2008               |    |   | 2007 |   |
| Deferred      tax assets related to:                    |   |               |    |   |   |   |
| Investments in partnership      interests               |   | $                  | 11,013  |   |   | $ | − |   |
| Unrealized loss on      investments                     |   |               | 14,827  |   |   |   | 4,192 |   |
| Provision for credit      losses                        |   |               | 8,349   |   |   |   | 13,215 |   |
| Foreign, state and local loss      carryforwards        |   |               | 6,909   |   |   |   | 8,985 |   |
| Employee stock options and      restricted stock awards |   |               | 3,752   |   |   |   | 3,920 |   |
| Accrued expenses                                        |   |               | 1,213   |   |   |   | − |   |
| Investments in real estate      assets                  |   |               | 422     |   |   |   | − |   |
| Gross deferred tax      assets                          |   |               | 46,485  |   |   |   | 30,312 |   |
| Less:  valuation      allowance               |   |               | (2,018  | ) |   |   | (435 | ) |
| Total deferred tax assets,      net                     |   | $                  | 44,467  |   |   | $ | 29,877 |   |
|                                                    |   |               |    |   |   |   |   |   |
| Deferred      tax liabilities related to:               |   |               |    |   |   |   |   |   |
| Investments in partnership      interests               |   | $                  | − |   |   | $ | (9,787 | ) |
| Accrued expenses                                        |   |               | − |   |   |   | (609 | ) |
| Property and equipment basis      differences           |   |               | (1,060  | ) |   |   | (552 | ) |
| Investments in real estate      assets                  |   |               | − |   |   |   | (176 | ) |
| Total deferred tax      liabilities                     |   | $                  | (1,060  | ) |   | $ | (11,124 | ) |

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|                                     |   | Years      Ended September 30, |             |
|------------------------------------------|--------|--------------------------------|------------------|
|                                     |   | 2008                           |             |   | 2007 |   |   | 2006 |   |
| Fair      value of stock options granted |   | $                              | 3.49             |   |   | $ | 10.50 |   |   | $ | 9.20 |   |
| Expected      life (years)               |   |                           |        6.3% |   |   |   |        6.3% |   |   |   |        6.3% |   |
| Expected      stock volatility           |   |                           | 47.4%            |   |   |   | 30.1% |   |   |   | 27.8% |   |
| Risk-free      interest rate             |   |                           |        3.9% |   |   |   |        4.9% |   |   |   |        4.0% |   |
| Dividend      yield                      |   |                           |        2.9% |   |   |   |        1.8% |   |   |   |        1.2% |   |

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|                                        |   |   |      |   | Weighted |   |   | Weighted    |   |   |      |   |
|---------------------------------------------|--------|--------|-----------|--------|----------|--------|--------|-------------|--------|--------|-----------|--------|
|                                        |   |   |      |   | Average  |   |   | Average     |   |   | Aggregate |   |
|                                        |   |   |      |   | Exercise |   |   | Contractual |   |   | Intrinsic |   |
| Stock Options      Outstanding              |   | Shares |      |   | Price    |   |   | Life        |   |   | Value     |   |
| Balance      – October 1, 2007        |   |   | 3,316,761 |   |     | $      | 8.49   |        |   |   |      |   |   |   |
| Granted                                     |   |   | 102,000   |   |     | $      | 9.22   |        |   |   |      |   |   |   |
| Exercised                                   |   |   | (30,062   | )      |     | $      | 6.03   |        |   |   |      |   |   |   |
| Forfeited                                   |   |   | (15,500   | )      |     | $      | (17.97 | )           |   |   |      |   |   |   |
| Balance      - September      30, 2008 |   |   | 3,373,199 |   |     | $      | 8.49   |        |   |   | 3.93      |   |   | $ | 10,672,520 |   |
|                                        |   |   |      |   |     |   |   |        |   |   |      |   |   |   |   |   |
| Exercisable,      September 30, 2008        |   |   | 3,113,014 |   |     | $      | 7.94   |        |   |   |      |   |   |   |   |   |
| Available      for grant                    |   |   | 334,525   | (1)    |     |   |   |        |   |   |      |   |   |   |   |   |

----

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

|                                        |   | Shares |    |   | Weighted      Average Grant DateFair      Value |   |
|---------------------------------------------|--------|--------|---------|--------|-------------------------------------------------|--------|
| Nonvested Stock      Options                |   |   |    |   |                                            |   |
| Outstanding      – October 1, 2007    |   |   | 297,870 |   |                                            | $      | 7.70 |   |
| Granted                                     |   |   | 102,000 |   |                                            | $      | 3.49 |   |
| Vested                                      |   |   | (94,123 | )      |                                            | $      | (7.55 | ) |
| Exercised                                   |   |   | (30,062 | )      |                                            | $      | (6.57 | ) |
| Forfeited                                   |   |   | (15,500 | )      |                                            | $      | (6.47 | ) |
| Outstanding      – September 30, 2008 |   |   | 260,185 |   |                                            | $      | 6.23 |   |
|                                        |   |   |    |   |                                            |   |   |   |
| Nonvested Restricted      Stock             |   |   |    |   |                                            |   |   |   |
| Outstanding      – October 1, 2007    |   |   | 199,708 |   |                                            | $      | 22.50 |   |
| Granted                                     |   |   | 505,817 |   |                                            | $      | 13.39 |   |
| Vested                                      |   |   | (90,837 | )      |                                            | $      | (21.64 | ) |
| Forfeited                                   |   |   | (1,754  | )      |                                            | $      | (19.94 | ) |
| Outstanding      – September 30, 2008 |   |   | 612,934 | (1)    |                                            | $      | 15.29 |   |

----

|        (1) | At      September 30, 2008, includes 99,548 shares of non-vested restricted stock      that do not have dividend equivalent rights and, therefore, are not      included in the shares outstanding in the consolidated balance      sheets. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| Director Units      Outstanding                  |   | Shares |    |   | Weighted      Average Grant DateFair      Value |   |
|--------------------------------------------------|--------|--------|---------|--------|-------------------------------------------------|--------|
| Units      outstanding – October 1, 2007   |   |   | 145,500 |   |                                            | $      | 6.71 |   |
| Granted                                          |   |   | 13,140  |   |                                            | $      | 10.27 |   |
| Shares issued upon      termination              |   |   | − |   |                                            | $      | − |   |
| Forfeited                                        |   |   | − |   |                                            | $      | − |   |
| Units      outstanding -      September 30, 2008 |   |   | 158,640 |   |                                            | $      | 7.15 |   |
|                                             |   |   |    |   |                                            |   |   |   |
| Vested      units                                |   |   | 140,079 |   |                                            | $      | 6.38 |   |
| Units      available for grant                   |   |   | 97,886  |   |                                            |   |   |   |

| Nonvested Director      Units              |   | Shares |    |   | Weighted      Average Grant      DateFair      Value |   |
|--------------------------------------------|--------|--------|---------|--------|------------------------------------------------------|--------|
| Outstanding      – October 1, 2007   |   |   | 7,260   |   |                                                 | $      | 21.06 |   |
| Granted                                    |   |   | 13,140  |   |                                                 | $      | 10.27 |   |
| Vested                                     |   |   | (1,839  | )      |                                                 | $      | (26.11 | ) |
| Forfeited                                  |   |   | − |   |                                                 | $      | − |   |
| Outstanding      - September 30,      2008 |   |   | 18,561  |   |                                                 | $      | 12.92 |   |

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|                                |   | Years      Ended September 30, |   |
|-------------------------------------|--------|--------------------------------|--------|
|                                |   | 2008                           |   |   | 2007 |   |   | 2006 |   |
| Interest      cost                  |   | $                              | 499    |   |   | $ | 518 |   |   | $ | 535 |   |
| Expected      return on plan assets |   |                           | (190   | ) |   |   | (210 | ) |   |   | (151 | ) |
| Net cost                            |   | $                              | 309    |   |   | $ | 308 |   |   | $ | 384 |   |

|                                                                   |   | September      30, |   |
|------------------------------------------------------------------------|--------|--------------------|--------|
|                                                                   |   | 2008               |   |   | 2007 |   |
| Projected      benefit obligation, beginning of year                   |   | $                  | 6,649  |   |   | $ | 6,895 |   |
| Interest cost                                                          |   |               | 499    |   |   |   | 518 |   |
| Actuarial loss                                                         |   |               | 162    |   |   |   | 74 |   |
| Benefit payments                                                       |   |               | (838   | ) |   |   | (838 | ) |
| Projected      benefit obligation, end of year                         |   | $                  | 6,472  |   |   | $ | 6,649 |   |
|                                                                   |   |               |   |   |   |   |   |   |
| Fair      value of plan assets, beginning of year                      |   | $                  | 3,154  |   |   | $ | 3,501 |   |
| Actual loss on plan      assets                                        |   |               | (2,270 | ) |   |   | (347 | ) |
| Fair      value of plan assets, end of year                            |   | $                  | 884    |   |   | $ | 3,154 |   |
|                                                                   |   |               |   |   |   |   |   |   |
| Unfunded      status                                                   |   | $                  | (5,588 | ) |   | $ | (3,495 | ) |
| Unrecognized      net actuarial loss                                   |   |               | 3,122  |   |   |   | 501 |   |
| Net accrued cost                                                       |   | $                  | (2,466 | ) |   | $ | (2,994 | ) |
|                                                                   |   |               |   |   |   |   |   |   |
| Amounts      recognized in the consolidated balance sheets consist of: |   |               |   |   |   |   |   |   |
| Accrued benefit      liability                                         |   | $                  | (5,588 | ) |   | $ | (3,495 | ) |
| Accumulated other comprehensive      loss                              |   |               | 1,936  | (1) |   |   | 256 |   |
| Deferred tax    assets                                                 |   |               | 1,186  |   |   |   | 245 |   |
| Net liability      recognized                                          |   | $                  | (2,466 | ) |   | $ | (2,994 | ) |

----

|        (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 $183,000.  The amount included      in accumulated other comprehensive income related to the SERP was $1.9      million and $256,000 as of September 30, 2008 and 2007,      respectively. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2009       |   | $ | 825   |   |
|------------|--------|---|-------|--------|
| 2010       |   | $ | 800   |   |
| 2011       |   | $ | 773   |   |
| 2012       |   | $ | 744   |   |
| 2013       |   | $ | 714   |   |
| Thereafter |   | $ | 1,804 |   |

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|                                                                     |   | September      30, |   |
|--------------------------------------------------------------------------|--------|--------------------|--------|
|                                                                     |   | 2008               |   |   | 2007 |   |
| Receivables      from managed entities and related parties:              |   |               |   |   |   |   |
| Commercial finance investment      partnerships                          |   | $                  | 22,844 |   |   | $ | 9,229 |   |
| Financial fund management      entities                                  |   |               | 4,151  |   |   |   | 5,341 |   |
| Real estate investment      partnerships and TIC property interests, net |   |               | 6,563  |   |   |   | 3,439 |   |
| RCC                                                                      |   |               | 1,870  |   |   |   | 2,034 |   |
| Other                                                                    |   |               | 246    |   |   |   | 134 |   |
| Receivables from managed      entities and related parties, net          |   | $                  | 35,674 |   |   | $ | 20,177 |   |
| Payables      due to managed entities and related parties:               |   |               |   |   |   |   |   |   |
| Real estate investment      partnerships and TIC property interests      |   | $                  | 316    |   |   | $ | 1,163 |   |
| Other                                                                    |   |               | 270    |   |   |   | − |   |
| Payables to managed entities      and related parties                    |   | $                  | 586    |   |   | $ | 1,163 |   |

|                                                                                |   | Years      Ended September 30, |    |
|-------------------------------------------------------------------------------------|--------|--------------------------------|---------|
|                                                                                |   | 2008                           |    |   | 2007 |   |   | 2006 |   |
| Financial fund management      - fees from managed entities (1)                     |   | $                              | 8,043   | (2) |   | $ | 13,314 |   |   | $ | 8,803 |   |
| Real estate - fees from      investment partnerships andTIC property      interests |   |                           | 9,407   |   |   |   | 9,216 |   |   |   | 11,452 |   |
| Commercial finance -      fees from investment partnerships                         |   |                           | 35,193  |   |   |   | 17,048 |   |   |   | 5,816 |   |
| RCC:                                                                                |   |                           |    |   |   |   |   |   |   |   |   |   |
| Management, incentive and      servicing fees                                       |   |                           | 7,480   |   |   |   | 8,963 |   |   |   | 8,203 |   |
| Reimbursement of expenses from      RCC                                             |   |                           | 636     |   |   |   | 1,938 |   |   |   | 718 |   |
| Dividends                                                                           |   |                           | 2,421   |   |   |   | 3,173 |   |   |   | 2,722 |   |
| Atlas America -      reimbursement of net costs and expenses                        |   |                           | 1,269   |   |   |   | 1,114 |   |   |   | 1,303 |   |
| Anthem      Securities:                                                             |   |                           |    |   |   |   |   |   |   |   |   |   |
| Payment of broker-dealer      expenses                                              |   |                           | − |   |   |   | (826 | ) |   |   | (1,166 | ) |
| Reimbursement of costs and      expenses                                            |   |                           | − |   |   |   | 688 |   |   |   | 2,906 |   |
| 1845 Walnut Associates Ltd. -      payment of rent andoperating    expenses         |   |                           | (549    | ) |   |   | (492 | ) |   |   | (450 | ) |
| 9 Henmar LLC - payment      of broker and consulting fees                           |   |                           | (417    | ) |   |   | (455 | ) |   |   | (479 | ) |
| Ledgewood P.C. – payment      of legal services                               |   |                           | (1,255  | ) |   |   | (521 | ) |   |   | (472 | ) |

----

|        (1) | Excludes      the non-cash incentive fee on the unrealized depreciation in the book      value of Trapeza partnership securities totaling $11.2 million, $1.6      million and $1.8 million for the years ended September 30, 2008, 2007 and      2006, respectively. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|        (2) | Reflects      a $2.3 million discount recorded in the year ended September 30, 2008 in      connection with subordinate and incentive management fees that the Company      expects to receive in the future. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|                                                         |   | Years      Ended September 30, |    |
|--------------------------------------------------------------|--------|--------------------------------|---------|
|                                                         |   | 2008                           |    |   | 2007 |   |   | 2006 |   |
| RCC      dividend income                                     |   | $                              | 2,421   |   |   | $ | 3,173 |   |   | $ | 2,722 |   |
| Gains      on sales of TBBK shares                           |   |                           | − |   |   |   | 3,533 |   |   |   | 668 |   |
| Interest      income and other income                        |   |                           | 615     |   |   |   | 1,279 |   |   |   | 576 |   |
| Write-off      of European real estate investment fund costs |   |                           | − |   |   |   | (4,775 | ) |   |   | − |   |
| Litigation      settlement (1)                               |   |                           | − |   |   |   | − |   |   |   | 1,188 |   |
| Other income,net                                             |   | $                              | 3,036   |   |   | $ | 3,210 |   |   | $ | 5,154 |   |

----

|        (1) | In      fiscal 2006, the Company recorded a $1.2 million gain from the reversal of      a $1.0 million reserve for a lawsuit that settled in favor of the Company      along with $200,000 received for reimbursed  costs. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|       |   | Operating |   |   | Capital |   |    | Total  |   |
|------------|--------|-----------|--------|--------|---------|--------|---------|--------|--------|
| 2009       |   | $         | 2,987  |   |    | $      | 289     |   |   | $ | 3,276 |   |
| 2010       |   |      | 2,410  |   |    |   | 262     |   |   |   | 2,672 |   |
| 2011       |   |      | 1,911  |   |    |   | 191     |   |   |   | 2,102 |   |
| 2012       |   |      | 1,938  |   |    |   | 22      |   |   |   | 1,960 |   |
| 2013       |   |      | 1,891  |   |    |   | 17      |   |   |   | 1,908 |   |
| Thereafter |   |      | 4,703  |   |    |   | − |   |   |   | 4,703 |   |
|       |   | $         | 15,840 |   |    | $      | 781     |   |   | $ | 16,621 |   |

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|                               |   | September      30, 2008 |    |   | September      30, 2007   |   |
|------------------------------------|--------|-------------------------|---------|--------|---------------------------|--------|
|                               |   | Carrying      Amount    |    |   | Estimated      Fair Value |   |   | Carrying      Amount |   |   | Estimated      Fair Value |   |
| Assets(1)                          |   |                    |    |   |                      |   |   |   |   |   |   |   |
| Loans      held for investment     |   | $                       | 219,664 |   |                      | $      | 190,233 |   |   | $ | 285,928 |   |   | $ | 272,613 |   |
| Interest      rate caps agreements |   |                    | 763     |   |                      |   | 763 |   |   |   | − |   |   |   | − |   |
|                               |   | $                       | 220,427 |   |                      | $      | 190,996 |   |   | $ | 285,928 |   |   | $ | 272,613 |   |
|                               |   |                    |    |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Borrowings(2)                      |   |                    |    |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Secured      warehouse debt        |   | $                       | 213,321 |   |                      | $      | 213,321 |   |   | $ | 439,539 |   |   | $ | 439,539 |   |
| Commercial      finance debt       |   |                    | 269,319 |   |                      |   | 269,319 |   |   |   | 221,537 |   |   |   | 221,537 |   |
| Real      estate debt              |   |                    | 13,967  |   |                      |   | 13,967 |   |   |   | 13,768 |   |   |   | 13,768 |   |
| Other      debt                    |   |                    | 57,452  |   |                      |   | 57,452 |   |   |   | 31,528 |   |   |   | 31,528 |   |
|                               |   | $                       | 554,059 |   |                      | $      | 554,059 |   |   | $ | 706,372 |   |   | $ | 706,372 |   |
|                               |   |                    |    |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Liabilities(3)                     |   |                    |    |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Interest      rate swap contracts  |   | $                       | 4,244   |   |                      | $      | 4,244 |   |   | $ | 1,434 |   |   | $ | 1,434 |   |

----

| (1)   | The      fair value of interest rate cap agreements are 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 are included in accrued      expenses and otherliabilities. |
|-----------------|------------------------------------------------------------------------------------------------------------------|

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|                                                         |   | Years      Ended September 30, |    |
|--------------------------------------------------------------|--------|--------------------------------|---------|
|                                                         |   | 2008                           |    |   | 2007 |   |   | 2006 |   |
| (Loss)      income from discontinued operations before taxes |   | $                              | (1,104  | ) |   | $ | (2,095 | ) |   | $ | 2,674 |   |
| Loss      on disposal, net                                   |   |                           | − |   |   |   | (329 | ) |   |   | (883 | ) |
| Benefit      (provision) for income taxes                    |   |                           | 386     |   |   |   | 848 |   |   |   | (591 | ) |
| (Loss)      income from discontinued operations, net of tax  |   | $                              | (718    | ) |   | $ | (1,576 | ) |   | $ | 1,200 |   |

|                                                |   | Years      Ended September 30, |   |
|-----------------------------------------------------|--------|--------------------------------|--------|
|                                                |   | 2008                           |   |   | 2007 |   |   | 2006 |   |
| Loss      from discontinued operations before taxes |   | $                              | (856   | ) |   | $ | (180 | ) |   | $ | − |   |
| Benefit      for income taxes                       |   |                           | 300    |   |   |   | 68 |   |   |   | − |   |
| Loss      from discontinued operations, net of tax  |   | $                              | (556   | ) |   | $ | (112 | ) |   | $ | − |   |

|                                                         |   | Years      Ended September 30, |    |
|--------------------------------------------------------------|--------|--------------------------------|---------|
|                                                         |   | 2008                           |    |   | 2007 |   |   | 2006 |   |
| (Loss)      income from discontinued operations before taxes |   | $                              | (1,999  | ) |   | $ | (2,275 | ) |   | $ | 2,674 |   |
| Loss      on disposal, net                                   |   |                           | − |   |   |   | (129 | ) |   |   | (836 | ) |
| Benefit      (provision) for income taxes                    |   |                           | 700     |   |   |   | 846 |   |   |   | (607 | ) |
| (Loss)      income from discontinued operations, net of tax  |   | $                              | (1,299  | ) |   | $ | (1,558 | ) |   | $ | 1,231 |   |

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|                                                                    |   | Commercial      finance |    |   | Real      estate |   |    | Financial      fund management |   |   | All other (1) |   |   | Total  |    |
|-------------------------------------------------------------------------|--------|-------------------------|---------|--------|------------------|--------|---------|--------------------------------|--------|--------|---------------|--------|--------|--------|---------|
| 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                                        |   |                    | (5,596  | )      |             |   | (500    | )                              |   |   | (2,622        | )      |   |   | − |   |   |   | (8,718 | ) |
| Depreciation      and amortization                                      |   |                    | (2,412  | )      |             |   | (1,093  | )                              |   |   | (257          | )      |   |   | (898    | ) |   |   | (4,660 | ) |
| Interest      expense                                                   |   |                    | (27,466 | )      |             |   | (1,222  | )                              |   |   | (14,559       | )      |   |   | (4,019  | ) |   |   | (47,266 | ) |
| Minority      interest (income) expense                                 |   |                    | (2,178  | )      |             |   | (61     | )                              |   |   | 6,482         |   |   |   | − |   |   |   | 4,243 |   |
| Loss      on sales of loans and leases                                  |   |                    | (1,909  | )      |             |   | − |                           |   |   | (17,660       | )      |   |   | (14     | ) |   |   | (19,583 | ) |
| Impairment      charges on available-for-sale securities                |   |                    | − |   |             |   | − |                           |   |   | (14,467       | )      |   |   | − |   |   |   | (14,467 | ) |
| Other      income (expense), net                                        |   |                    | 352     |   |             |   | 288     |                           |   |   | 2,441         |   |   |   | (45     | ) |   |   | 3,036 |   |
| Income      (loss) before intercompany interest expense andincome taxes |   |                    | 14,506  |   |             |   | 6,112   |                           |   |   | (44,717       | )      |   |   | (16,540 | ) |   |   | (40,639 | ) |
| Intercompany      interest expense                                      |   |                    | (5,860  | )      |             |   | − |                           |   |   | −       |   |   |   | 5,860   |   |   |   | − |   |
| Income      (loss) from continuing operations before incometaxes        |   | $                       | 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 | ) |
| Interest      expense                                                   |   |                    | (11,796 | )      |             |   | (1,040  | )                              |   |   | (19,485       | )      |   |   | (1,245  | ) |   |   | (33,566 | ) |
| Minority      interest expense                                          |   |                    | (530    | )      |             |   | − |                           |   |   | (1,612        | )      |   |   | − |   |   |   | (2,142 | ) |
| Loss      on sales of loans and leases                                  |   |                    | − |   |             |   | − |                           |   |   | (5,025        | )      |   |   | − |   |   |   | (5,025 | ) |
| Impairment      charges on available-for-sale securities                |   |                    | − |   |             |   | − |                           |   |   | (12,580       | )      |   |   | − |   |   |   | (12,580 | ) |
| Other      income, net                                                  |   |                    | 246     |   |             |   | 330     |                           |   |   | 2,414         |   |   |   | 220     |   |   |   | 3,210 |   |
| Income      (loss) before intercompany interest expenseand income taxes |   |                    | 7,442   |   |             |   | 8,231   |                           |   |   | 1,973         |   |   |   | (9,964  | ) |   |   | 7,682 |   |
| Intercompany      interest expense                                      |   |                    | (2,769  | )      |             |   | − |                           |   |   | (6,082        | )      |   |   | 8,851   |   |   |   | − |   |
| Income      (loss) from continuing operations before incometaxes        |   | $                       | 4,673   |   |             | $      | 8,231   |                           |   | $      | (4,109        | )      |   | $      | (1,113  | ) |   | $ | 7,682 |   |
| Year      Ended September 30, 2006                                      |   |                    |    |   |             |   |    |                           |   |   |          |   |   |   |    |   |   |   |   |   |
| Revenues      from external customers                                   |   | $                       | 23,824  |   |             | $      | 25,614  |                           |   | $      | 20,039        |   |   | $      | − |   |   | $ | 69,477 |   |
| Equity      in earnings (losses) of unconsolidated entities             |   |                    | 16      |   |             |   | (2,538  | )                              |   |   | 8,418         |   |   |   | − |   |   |   | 5,896 |   |
| Total revenues                                                          |   |                    | 23,840  |   |             |   | 23,076  |                           |   |   | 28,457        |   |   |   | − |   |   |   | 75,373 |   |
| Segment      operating expenses                                         |   |                    | (14,443 | )      |             |   | (11,522 | )                              |   |   | (12,099       | )      |   |   | − |   |   |   | (38,064 | ) |
| General      and administrative expenses                                |   |                    | (304    | )      |             |   | (424    | )                              |   |   | (4,624        | )      |   |   | (4,413  | ) |   |   | (9,765 | ) |
| Provision      for credit losses                                        |   |                    | (73     | )      |             |   | − |                           |   |   | −       |   |   |   | − |   |   |   | (73 | ) |
| Depreciation      and amortization                                      |   |                    | (1,749  | )      |             |   | (612    | )                              |   |   | (30           | )      |   |   | (673    | ) |   |   | (3,064 | ) |
| Interest      expense                                                   |   |                    | (4,430  | )      |             |   | (245    | )                              |   |   | (5,318        | )      |   |   | (126    | ) |   |   | (10,119 | ) |
| Minority      interest expense                                          |   |                    | (117    | )      |             |   | − |                           |   |   | (1,658        | )      |   |   | − |   |   |   | (1,775 | ) |
| Other      income, net                                                  |   |                    | 6       |   |             |   | 210     |                           |   |   | 2,720         |   |   |   | 2,218   |   |   |   | 5,154 |   |
| Income      (loss) before intercompany interest expense andincome taxes |   |                    | 2,730   |   |             |   | 10,483  |                           |   |   | 7,448         |   |   |   | (2,994  | ) |   |   | 17,667 |   |
| Intercompany      interest expense                                      |   |                    | (1,634  | )      |             |   | (480    | )                              |   |   | (3,815        | )      |   |   | 5,929   |   |   |   | − |   |
| Income      from continuing operations before income taxes              |   | $                       | 1,096   |   |             | $      | 10,003  |                           |   | $      | 3,633         |   |   | $      | 2,935   |   |   | $ | 17,667 |   |

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|                    |   | Commercial      finance |    |   | Real      estate |   |    | Financial      fund management |   |   | All      other (1) |   |   | Total  |    |
|-------------------------|--------|-------------------------|---------|--------|------------------|--------|---------|--------------------------------|--------|--------|--------------------|--------|--------|--------|---------|
| Segment      assets     |   |                    |    |   |             |   |    |                           |   |   |               |   |   |   |    |
| September      30, 2008 |   | $                       | 360,964 |   |             | $      | 147,657 |                           |   | $      | 274,742            |   |   | $      | (20,713 | ) |   | $ | 762,650 |   |
| September      30, 2007 |   | $                       | 283,474 |   |             | $      | 144,790 |                           |   | $      | 557,839            |   |   | $      | (19,651 | ) |   | $ | 966,452 |   |
| September      30, 2006 |   | $                       | 127,235 |   |             | $      | 144,718 |                           |   | $      | 170,353            |   |   | $      | (23,448 | ) |   | $ | 418,858 |   |

----

|        (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 2008         |   | 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         | )      |   | $ | (1,599 | ) |
| (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 | ) |
|                                           |   |        |    |   |     |   |   |    |   |   |         |   |   |   |   |   |
|                                           |   |        |    |   |     |   |   |    |   |   |         |   |   |   |   |   |
| Quarterly results for      fiscal 2007         |   | December 31 |    |   | March 31 |   |   | June 30 |   |   | September 30 |   |
| Revenues                                       |   | $           | 24,279  |   |     | $      | 32,376 |    |   | $      | 38,451       |   |   | $ | 31,662 |   |
| Operating      income                          |   | $           | 9,540   |   |     | $      | 15,747 |    |   | $      | 18,916       |   |   | $ | 13,582 |   |
| Income      (loss) from continuing operations  |   | $           | 4,604   |   |     | $      | 5,877  |    |   | $      | 5,707        |   |   | $ | (10,934 | ) |
| Net      income (loss)                         |   | $           | 4,585   |   |     | $      | 5,840  |    |   | $      | 4,239        |   |   | $ | (10,968 | ) |
|                                           |   |        |    |   |     |   |   |    |   |   |         |   |   |   |   |   |
| Basic      earnings (loss) per common share:   |   |        |    |   |     |   |   |    |   |   |         |   |   |   |   |   |
| Continuing      operations                     |   | $           | 0.27    |   |     | $      | 0.34   |    |   | $      | 0.32         |   |   | $ | (0.63 | ) |
| Net      income (loss)                         |   | $           | 0.27    |   |     | $      | 0.34   |    |   | $      | 0.24         |   |   | $ | (0.63 | ) |
|                                           |   |        |    |   |     |   |   |    |   |   |         |   |   |   |   |   |
| Diluted      earnings (loss) per common share: |   |        |    |   |     |   |   |    |   |   |         |   |   |   |   |   |
| Continuing      operations                     |   | $           | 0.24    |   |     | $      | 0.31   |    |   | $      | 0.29         |   |   | $ | (0.63 | ) |
| Net      income (loss)                         |   | $           | 0.24    |   |     | $      | 0.31   |    |   | $      | 0.22         |   |   | $ | (0.63 | ) |

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(Back to Index)

ITEM9.   

ITEM9A. 

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(Back to Index)

ITEM 9B.
 

ITEM10.    

ITEM11.     

ITEM12.    

ITEM13.     

ITEM14.   

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(Back to Index)

ITEM15.  

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

|   |   | Report      of Independent Registered Public AccountingFirm |
|--------|--------|-------------------------------------------------------------|

|   | Consolidated      Balance Sheets at September 30, 2008 and2007 |
|--------|----------------------------------------------------------------|

|   | Consolidated      Statements of Operations for the years ended September 30, 2008, 2007      and 2006 |
|--------|------------------------------------------------------------------------------------------------------------|

|   | Consolidated      Statements of Changes in Stockholders' Equity  for |
|--------|----------------------------------------------------------------------|

|   | the      years ended September 30, 2008, 2007 and2006 |
|--------|-------------------------------------------------------|

|   | Consolidated      Statements of Cash Flows for the years ended September 30, 2008, 2007 and      2006 |
|--------|-------------------------------------------------------------------------------------------------------|

|   | Notes      to Consolidated Financial Statements − September 30,  2008 |
|--------|-----------------------------------------------------------------------------|

| 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                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|-------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 2.1         | Asset      Purchase Agreement by and among LEAF Financial Corporation, LEAF Funding,      Inc., Dolphin Capital Corp. and Lehman Brothers Bank, FSB, dated November      19, 2007. (1)                                                                                                                                                                                                                                                                                           |
| 2.2         | Loan      Sale Agreement by and between Federal Deposit Insurance Corporation as      receiver of NetBank, Alpharetta, Georgia and LEAF Funding, LLC, dated      November 2007. (1)                                                                                                                                                                                                                                                                                              |
| 3.1         | Restated      Certificate of Incorporation of Resource America. (2)                                                                                                                                                                                                                                                                                                                                                                                                              |
| 3.2         | Amended      and Restated Bylaws of Resource America. (2)                                                                                                                                                                                                                                                                                                                                                                                                                        |
| 10.1        | Receivables      Loan and Security Agreement, dated November 1, 2007 among LEAF Capital      Funding III, LLC as Borrower; LEAF Financial Corporation as Servicer,      Morgan Stanley Bank as Class A Lender and Collateral Agent and Morgan      Stanley Asset Funding, Inc. as Class B Lender, U.S. Bank National      Association as Custodian and Lender’s Bank and Lyon Financial Services,      Inc. (d/b/a U.S. Bank Portfolio Services as Backup Servicer.) (1)   |
| 10.2(a)     | Loan      and Security Agreement, dated May 24, 2007, between Resource America,      Inc., Commerce Bank, N.A. and the other parties thereto. (3)                                                                                                                                                                                                                                                                                                                                |
| 10.2(b)     | First      Amendment and Joinder to Loan and Security Agreement, dated July 18, 2007.      (4)                                                                                                                                                                                                                                                                                                                                                                                   |
| 10.2(c)     | Second      Amendment and Joinder to Loan and Security Agreement, dated November 15,      2007. (4)                                                                                                                                                                                                                                                                                                                                                                              |
| 10.2(d)     | Third      Amendment to Loan and Security Agreement, dated August 7, 2008. (5)                                                                                                                                                                                                                                                                                                                                                                                                   |
| 10.2(e)     | Fourth      Amendment to Loan and Security Agreement, dated September 30, 2008. (6)                                                                                                                                                                                                                                                                                                                                                                                              |
| 10.3(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)                                                                                                                                                                                                                                                                                             |
| 10.3(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)                                                                                                                                                                                                                                                                                 |
| 10.4        | Employment      Agreement between Michael S. Yecies and Resource America, Inc., dated      November 17, 2006. (8)                                                                                                                                                                                                                                                                                                                                                                |
| 10.5        | Employment      Agreement between Thomas C. Elliott and Resource America, Inc., dated      November 17, 2006. (8)                                                                                                                                                                                                                                                                                                                                                                |
| 10.6        | Employment      Agreement between Jeffrey F. Brotman and Resource America, Inc., dated      June 18, 2007. (4)                                                                                                                                                                                                                                                                                                                                                                   |
| 10.7(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 Lyon Financial Services, Inc. (D/B/A      U.S. Bank Portfolio Services), as the Backup Servicer. (9) |
| 10.7(b)     | First      Amendment to Receivables Loan and Security Agreement, dated as of October      31, 2006. (9)                                                                                                                                                                                                                                                                                                                                                                          |
| 10.7(c)     | Purchase      and Sale Agreement, dated as of October 31, 2006. (9)                                                                                                                                                                                                                                                                                                                                                                                                              |
| 10.7(d)     | First      amendment to Purchase and Sale Agreement, dated as of December 21, 2006.      (9)                                                                                                                                                                                                                                                                                                                                                                                     |
| 10.7(e)     | Fifth      Amendment to Receivables Loan and Security Agreement, dated as of May 23,      2008. (10)                                                                                                                                                                                                                                                                                                                                                                             |
| 10.7(f)     | Amended      and Restated Fee Letter, dated May 23, 2008. (10)                                                                                                                                                                                                                                                                                                                                                                                                                   |
| 10.8(a)     | Credit      Agreement, dated July 31, 2006, by and among LEAF Financial Corporation,      LEAF Funding, Inc. and National City Bank. (11)                                                                                                                                                                                                                                                                                                                                        |
| 10.8(b)     | Guaranty      and Suretyship Agreement by registrant and Resource Leasing, Inc. in favor      of National City Bank. (11)                                                                                                                                                                                                                                                                                                                                                        |
| 10.8(c)     | First      Amendment to Credit Agreement, dated August 14, 2006, by and among LEAF      Financial Corporation, LEAF Funding, Inc. and National City Bank. (12)                                                                                                                                                                                                                                                                                                                   |
| 10.8(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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|    |                                                                                                                                                                                                                                                            |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 10.8(e) | Third      Amendment to Credit Agreement, dated March 14, 2007, between LEAF      Financial Corporation, LEAF Funding, Inc. and National City Bank. (13)                                                                                                        |
| 10.9(a) | Credit      Agreement, dated August 31, 2007, between LEAF Commercial Finance Co.,      LLC, Various Financial Institutions and Other Persons from Time to Time      Parties thereto, and National City Bank. (14)                                              |
| 10.9(b) | First      Amendment to Credit Agreement, dated June 22, 2007, between LEAF      Commercial Finance Co., LLC, Various Financial Institutions and Other      Persons from Time to Time Parties thereto, and National City Bank,      dated August 31, 2007. (14) |
| 10.10   | Asset      Purchase Agreement, dated June 19, 2007, between LEAF Funding, Inc., LEAF      Financial Corporation and LEAF Commercial Finance Co., LLC and Pacific      Capital Bank, N.A. (9)                                                                    |
| 10.11   | Limited      Liability Company Agreement of LEAF Ventures, LLC, dated March 2007,      between LEAF Financial Corporation and Crit DeMent, Miles Herman, Robert      Moskovitz, David English, Matthew Goldenberg and Nicholas Capparelli.      (13)            |
| 10.12   | Credit      Agreement, dated March 15, 2007, between Merit Capital Advance, LLC and      Deutsche Bank AG Cayman Islands. (13)                                                                                                                                  |
| 10.13   | Limited      Liability Company Agreement of Merit Capital Advance, LLC, dated March 15,      2007. (13)                                                                                                                                                         |
| 10.14   | Merit      Capital Advance, LLC 15% Subordinated Convertible PIK Note, dated March      15, 2007. (13)                                                                                                                                                          |
| 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 Quarterly Report on Form 10-Q for the      quarter ended December 31, 2007 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 Current Report on Form 8-K filed on      November 21, 2006 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 Quarterly Report on Form 10-Q for the      quarter ended June 30, 2008 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 June 30, 2007 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. |
|------------------|-------------------------------------------------------------------------------------------------------------------------------------------------|

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----

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SIGNATURES

|                   | RESOURCE      AMERICA, INC.                |
|------------------------|--------------------------------------------|
| December      15, 2008 | By:  /s/ Jonathan Z. Cohen       |
|                   | Chief Executive Officer and      President |

| /s/      Edward E. Cohen    | Chairman      of the Board       | December      15, 2008 |
|-----------------------------|----------------------------------|------------------------|
| EDWARD      E. COHEN        |                             |                   |
|                        |                             |                   |
| /s/      Jonathan Z. Cohen  | Director,      President         | December      15, 2008 |
| JONATHAN      Z. COHEN      | and      Chief Executive Officer |                   |
|                        |                             |                   |
| /s/      Michael J. Bradley | Director                         | December      15, 2008 |
| MICHAEL      J. BRADLEY     |                             |                   |
|                        |                             |                   |
| /s/      Carlos C. Campbell | Director                         | December      15, 2008 |
| CARLOS      C. CAMPBELL     |                             |                   |
|                        |                             |                   |
| /s/      Kenneth A. Kind    | Director                         | December      15, 2008 |
| KENNETH      A. KIND        |                             |                   |
|                        |                             |                   |
| /s/      Hersh Kozlov       | Director                         | December      15, 2008 |
| HERSH      KOZLOV           |                             |                   |
|                        |                             |                   |
| /s/      Andrew M. Lubin    | Director                         | December      15, 2008 |
| ANDREW      M. LUBIN        |                             |                   |
|                        |                             |                   |
| /s/      John S. White      | Director                         | December      15, 2008 |
| JOHN      S. WHITE          |                             |                   |
|                        |                             |                   |
| /s/      Steven J. Kessler  | Executive      Vice President    | December      15, 2008 |
| STEVEN      J. KESSLER      | and      Chief Financial Officer |                   |

(Back to Index)

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(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, 2008                                            |   | $                                 | 629     |   |                                         | $      | 500     |                                           |   | $      | −                     |   |   | $ | 1,129 |   |
| September 30, 2007                                            |   | $                                 | 770     |   |                                         | $      | − |                                           |   | $      | (141                        | )      |   | $ | 629 |   |
| September 30, 2006                                            |   | $                                 | 770     |   |                                         | $      | − |                                           |   | $      | −                     |   |   | $ | 770 |   |
|                                                          |   |                              |    |   |                                         |   |    |                                           |   |   |                        |   |   |   |   |   |
| Allowance      for investments in commercial finance assets:  |   |                              |    |   |                                         |   |    |                                           |   |   |                        |   |   |
| September 30, 2008                                            |   | $                                 | 120     |   |                                         | $      | 5,596   |                                           |   | $      | (3,966                      | )      |   | $ | 1,750 |   |
| September 30, 2007                                            |   | $                                 | − |   |                                         | $      | 229     |                                           |   | $      | (109                        | )      |   | $ | 120 |   |
| September 30, 2006                                            |   | $                                 | − |   |                                         | $      | 73      |                                           |   | $      | (73                         | )      |   | $ | − |   |
|                                                          |   |                              |    |   |                                         |   |    |                                           |   |   |                        |   |   |   |   |   |
| Allowance      for investments in loans held for investments: |   |                              |    |   |                                         |   |    |                                           |   |   |                        |   |   |
| September 30, 2008                                            |   | $                                 | − |   |                                         | $      | 2,622   |                                           |   | $      | (1,027                      | )      |   | $ | 1,595 |   |
| September 30, 2007                                            |   | $                                 | − |   |                                         | $      | − |                                           |   | $      | −                     |   |   | $ | − |   |
| September 30, 2006                                            |   | $                                 | − |   |                                         | $      | − |                                           |   | $      | −                     |   |   | $ | − |   |
|                                                          |   |                              |    |   |                                         |   |    |                                           |   |   |                        |   |   |   |   |   |

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----

(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      capitalizedsubsequent      to acquisition |   |   | Gross      Amount at which carried at closeof      period |   |   | Accumulated      Depreciation |   |   | Date      of Construction |   | Date      Acquired | Life      on which depreciation in latest income iscomputed |
|                                      |   |          |    |   | Buildings      and Land Improvements |   |   | ImprovementsCarrying      Costs                     |   |   | Buildings      and Land Improvements Total                |   |   |                          |   |   |                      |   |               |                                                        |
| Real      estate owned                    |   |          |    |   |                                 |   |   |                                                |   |   |                                                      |   |   |                          |   |   |                      |   |               |                                                        |
| Hotel,      Savannah, GA                  |   | $             | 12,267  |   |                                 | $      | 10,187 |                                                |   | $      | 2,105                                                     | (a)    |   | $                             | 16,366 |   |                      | $      | 2,515              |                                                        |   |   | 1853 |   | 6/30/2005 | 40      years |
|                                      |   |          |    |   |                                 |   |   |                                                |   |   |                                                      |   |   |                          |   |   |                      |   |               |                                                        |   |   |   |   |   |   |
| FIN      46 Assets                        |   |          |    |   |                                 |   |   |                                                |   |   |                                                      |   |   |                          |   |   |                      |   |               |                                                        |   |   |   |   |   |   |
| Commercial      Retail (c)St. Cloud, MI   |   |          | 1,227   |   |                                 |   | 2,300  |                                                |   |   | −                                                   |   |   |                          | 2,300  |   |                      |   | 518                |                                                        |   |         1970 |   | 7/01/2003      (a) | 40      years |
|                                      |   |          |    |   |                                 |   |   |                                                |   |   |                                                      |   |   |                          |   |   |                      |   |               |                                                        |   |   |   |   |   |   |
| Commercial      Retail (c)Elkins West, WV |   |          | − |   |                                 |   | 1,600  |                                                |   |   | −                                                   |   |   |                          | 1,600  |   |                      |   | 217                |                                                        |   |         1963 |   | 7/01/2003      (a) | 40      years |
|                                      |   |          |    |   |                                 |   |   |                                                |   |   |                                                      |   |   |                          |   |   |                      |   |               |                                                        |   |   |   |   |   |   |
| Office      BuildingMoberly, MI           |   |          | 1,482   |   |                                 |   | 1,866  |                                                |   |   | −                                                   |   |   |                          | 1,866  |   |                      |   | 38                 |                                                        |   |        1998 |   | 11/30/07 | 39      years |
|                                      |   | $             | 14,976  |   |                                 | $      | 15,953 |                                                |   | $      | 2,105                                                     |   |   | $                             | 22,132 |   |                      | $      | 3,288              |                                                        |   |   |   |   |   |   |

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|        (a) | Date      of FIN 46-R adoption. |
|-----------------|---------------------------------|

|        (b) | Balances      as of June 30, 2008 due to one-quarter lag reporting FIN 46-R      results. |
|-----------------|-------------------------------------------------------------------------------------------|

|                                         |   | Years      Ended September 30, |    |
|----------------------------------------------|--------|--------------------------------|---------|
|                                         |   | 2008                           |    |   | 2007 |   |   | 2006 |   |
| Balance      at the beginning of the period  |   | $                              | 19,410  |   |   | $ | 19,545 |   |   | $ | 141,127 |   |
| Additions      during period:                |   |                           |    |   |   |   |   |   |   |   |   |   |
| Improvements,    etc.                        |   |                           | 2,722   |   |   |   | 1,249 |   |   |   | − |   |
| Other – basis      adjustments         |   |                           | − |   |   |   | (91 | ) |   |   | 323 |   |
| Other − reclass from other      assets |   |                           | − |   |   |   | − |   |   |   | 4,678 |   |
|                                         |   |                           | 22,132  |   |   |   | 20,703 |   |   |   | 146,128 |   |
|                                         |   |                           |    |   |   |   |   |   |   |   |   |   |
| Deductions      during the period:           |   |                           |    |   |   |   |   |   |   |   |   |   |
| Cost of real estate      sold                |   |                           | − |   |   |   | 919 |   |   |   | 126,177 |   |
| Other −    write-down                  |   |                           | − |   |   |   | 374 |   |   |   | 406 |   |
| Balance      at close of period              |   | $                              | 22,132  |   |   | $ | 19,410 |   |   | $ | 19,545 |   |

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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                      |                             |                     |                       |   |             |    |   |                          |   |   |                              |   |   |                                                                            |   |
| Apartmentbuilding,Hartford, CT              | Fixed      interest rate of 7.5% | 1/1/2009                 | (a)                        |   | $                | 12,579  |   |                          | $      | 21,309 |                              |   | $      | 7,709                                                                           |   |   | $ | − |   |
|                                        |                             |                     |                       |   |             |    |   |                          |   |   |                              |   |   |                                                                            |   |   |   |   |   |
| Office building,Washington, DC              | Fixed      interest rate of 8%   | 8/1/2018                 | (b)                        |   |             | − |   |                          |   | 35,326 |                              |   |   | 3,659                                                                           |   |   |   | − |   |
|                                        |                             |                     |                       |   |             |    |   |                          |   |   |                              |   |   |                                                                            |   |   |   |   |   |
| Office building,Omaha, NE                   | Fixed      interest rate of 8%   | 8/31/2011                |                       |   |             | − |   |                          |   | 79     |                              |   |   | 79                                                                              |   |   |   | − |   |
|                                        |                             |                     |                       |   |             |    |   |                          |   |   |                              |   |   |                                                                            |   |   |   |   |   |
| Office building,Philadelphia,    PA         | Fixed      interest rate of 6%   | 4/27/2008                |        (c)            |   |             | − |   |                          |   | 2,837  |                              |   |   | 2,837                                                                           |   |   |   | − |   |
|                                        |                             |                     |                       |   |             |    |   |                          |   |   |                              |   |   |                                                                            |   |   |   |   |   |
| Multi-family unit,Seabrook Village,      NJ | Fixed      interest rate of 6%   | 11/30/2012               |                       |   |             | − |   |                          |   | 1,585  |                              |   |   | 1,585                                                                           |   |   |   | − |   |
|                                        |                             |                     |                       |   |             |    |   |                          |   |   |                              |   |   |                                                                            |   |   |   |   |   |
|                                        |                             |                     |                       |   | $                | 12,579  |   |                          | $      | 61,136 |                              |   | $      | 15,869                                                                          |   |   | $ | − |   |

----

|        (a) | All      net cash flows from relatedproperty |
|-----------------|----------------------------------------------|

|        (b) | No      current payments         |
|-----------------|--------------------------------------------------------------------------|
|   (c) | We      have commenced foreclosure proceedings against this  property.   |

|                                        |   | Years      Ended September 30, |    |
|---------------------------------------------|--------|--------------------------------|---------|
|                                        |   | 2008                           |    |   | 2007 |   |   | 2006 |   |
| Balance      at the beginning of the period |   | $                              | 27,759  |   |   | $ | 28,584 |   |   | $ | 25,923 |   |
| Additions      during period:               |   |                           |    |   |   |   |   |   |   |   |   |   |
| New loans                                   |   |                           | − |   |   |   | 1,597 |   |   |   | 4,909 |   |
| Additions to existing      loans            |   |                           | − |   |   |   | 42 |   |   |   | 2,310 |   |
| Other                                       |   |                           | 4,795   |   |   |   | 760 |   |   |   | 465 |   |
|                                        |   |                           | 32,554  |   |   |   | 30,983 |   |   |   | 33,607 |   |
|                                        |   |                           |    |   |   |   |   |   |   |   |   |   |
| Deductions      during the period:          |   |                           |    |   |   |   |   |   |   |   |   |   |
| Collections of      principal               |   |                           | 16,685  |   |   |   | 3,224 |   |   |   | 5,023 |   |
| Balance      at end of fiscal year (d)      |   | $                              | 15,869  |   |   | $ | 27,759 |   |   | $ | 28,584 |   |

----

|        (d) | 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. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------|

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