Resource America, Inc. Reports Operating Results for the Fourth Fiscal Quarter and Fiscal Year Ended September 30, 2010


PHILADELPHIA, PA--(Marketwire - December 6, 2010) - Resource America, Inc. (NASDAQ: REXI) (the "Company") reported adjusted income from continuing operations attributable to common shareholders, a non-GAAP measure, of $959,000, or $0.05 per common share-diluted, and $1.5 million, or $0.08 per common share-diluted, for the fourth fiscal quarter and fiscal year ended September 30, 2010, as compared to an adjusted loss from continuing operations attributable to common shareholders of $428,000, or $0.02 per common share-diluted, and $17.4 million, or $0.94 per common share-diluted, for the fourth fiscal quarter and fiscal year ended September 30, 2009, respectively. A reconciliation of the Company's reported GAAP (loss) income from continuing operations attributable to common shareholders to adjusted income (loss) from continuing operations attributable to common shareholders, a non-GAAP measure, is included as Schedule I to this release.

For the fourth fiscal quarter and fiscal year ended September 30, 2010, the Company reported a GAAP loss from continuing operations attributable to common shareholders of $8.5 million, or $0.44 per common share-diluted, and $14.1 million, or $0.74 per common share-diluted, respectively, as compared to GAAP income from continuing operations attributable to common shareholders of $404,000, or $0.02 per common share-diluted, and a GAAP loss from continuing operations attributable to common shareholders of $14.5 million, or $0.78 per common share-diluted, for the fourth fiscal quarter and fiscal year ended September 30, 2009, respectively.

The GAAP loss from continuing operations attributable to common shareholders for the fourth fiscal quarter and fiscal year ended September 30, 2010 was primarily the result of losses generated from the Company's commercial finance operations and deferred tax asset adjustments. Schedule I reflects the removal of the Company's commercial finance operations and deferred tax asset adjustments from (loss) income from continuing operations attributable to common shareholders.

Jonathan Cohen, CEO and President, commented, "We are pleased with our current financial and operational position. We are enthusiastic about the opportunities ahead. Financially, our liquidity and debt levels have dramatically improved. Operationally, since the financial crisis of 2008-2009, we have now substantially repositioned our three core businesses. In real estate, we continue to grow through (i) the recent launch of our Resource Real Estate REIT, (ii) our continued distressed investing through our institutional joint venture and (iii) the growth of Resource Capital Corp (NYSE: RSO) which we manage. In our financial fund management business, we have returned to profitability and are starting to grow revenues and profits in our core asset managers. At LEAF, our equipment leasing business, we think the opportunities are great to grow our origination and servicing platform and expand our vendor program business. We are actively pursuing ways to provide the capital and structure to make that happen soon. In the partnership management part of LEAF's business, we continue to manage over $700 million of assets for four funds and have been able to securitize over 80% of those assets in the last few months and expect to do the rest shortly."

Assets Under Management

The following table sets forth information relating to our assets under management by operating segment, which decreased by $1.1 billion (8%) from September 30, 2009 to November 30, 2010:

                                        At November 30,   At September 30,
                                              2010              2009
                                        ----------------- -----------------
Financial fund management               $    10.3 billion $    10.7 billion
Real estate                                   1.6 billion       1.7 billion
Commercial finance                            0.8 billion       1.4 billion
                                        ----------------- -----------------
                                        $    12.7 billion $    13.8 billion
                                        ================= =================

A description of how the Company calculates assets under management is set forth in Item 1 of the Company's Annual Report on Form 10-K for the fiscal year ended September 30, 2009.

Book Value

As of September 30, 2010, the Company's book value per common share was $7.21. Total stockholders' equity was $132.0 million as of September 30, 2010 as compared to $139.8 million as of September 30, 2009. Total common shares outstanding were 18,301,570 as of September 30, 2010 as compared to 17,991,723 as of September 30, 2009.

Highlights for the Fourth Fiscal Quarter and Fiscal Year Ended September 30, 2010 and Recent Developments

REAL ESTATE:
-- Fundraising: Resource Real Estate ("RRE") filed a $750.0 million
   registration statement with the Securities and Exchange Commission
   ("SEC") on July 7, 2009 for Resource Real Estate Opportunity REIT, Inc.
   ("RRE Opportunity REIT"), for which RRE is the external manager.
   The registration statement became effective in June 2010 and the
   public offering broke escrow in September 2010. Through December 3,
   2010, RRE Opportunity REIT has raised approximately $22.2 million.
   Also, during the fiscal year ended September 30, 2010, Resource
   Capital Corp. ("RCC") raised over $151 million in equity proceeds
   through two public follow-on offerings and its dividend reinvestment
   plan.
-- Significant Acquisitions: In September and October 2010, RRE purchased
   four loans on behalf of RCC from the U.S. Department of Housing and
   Urban Development for $37.4 million with an existing joint venture
   partner. These loans are secured by multifamily rental properties
   located in Washington DC, Willington and Mansfield Connecticut, and
   Decatur Georgia. In connection with these purchases, the Company
   received $377,000 in acquisition fees and will receive asset management
   and property management fees in the future.
-- Property Management: Resource Real Estate Management, Inc., the
   Company's property management subsidiary, increased the apartment units
   it manages to 13,522 units at 50 properties as of September 30, 2010
   from 12,794 units at 49 properties as of September 30, 2009.

LEASING:
-- Securitizations: Since May 2010, LEAF Financial Corporation ("LEAF"),
   on behalf of an affiliate for which it manages leasing portfolios, has
   completed four securitization transactions totaling $600 million, term
   funded through the issuance of contract-backed notes. LEAF will
   continue to service these securitization pools.
-- Financing: In September 2010, LEAF completed a short-term bridge
   financing, pursuant to which it may borrow up to $21.5 million as it
   originates equipment leases and loans.

FINANCIAL FUND MANAGEMENT:
-- Additional Management Engagements: In November 2010, a subsidiary of
   Resource Financial Fund Management, Inc. ("RFFM") was awarded the
   management contract for an existing $255 million third-party
   collateralized debt obligation and will receive management fees in the
   future. In September 2010, a subsidiary of RFFM entered into a
   sub-advisory agreement to provide management and advisory services to
   an unrelated third-party for a $400 million loan portfolio. In
   connection with this agreement, the Company will receive advisory fees
   in the future.
-- Increased Revenues. Financial fund management revenues increased 11%
   to $8.8 million for the fourth fiscal quarter ended September 30, 2010
   as compared to $7.9 million for the fourth fiscal quarter ended
   September 30, 2009.

CORPORATE:
-- Decreased Borrowings: As of September 30, 2010, the Company reduced
   its consolidated borrowings outstanding by $125.3 million, or 65%,
   to $66.1 million from $191.4 million at September 30, 2009. This
   decrease primarily reflects the repayment and termination of the
   commercial finance credit facility, which had a $136.5 million balance
   at September 30, 2009. At September 30, 2010, borrowings include
   $20.8 million in non-recourse short-term bridge financing for
   commercial finance, $14.1 million of corporate revolving debt,
   $14.3 million of senior notes, net of a discount, and $16.9 million
   of other debt, of which $13.5 million is in mortgage debt secured by
   the underlying properties.
-- Dividends.  The Company's Board of Directors authorized the payment
   on October 29, 2010 of a $0.03 cash dividend per share on the Company's
   common stock to holders of record as of the close of business on
   October 19, 2010. RCC paid a cash dividend of $0.25 per common share
   for its third quarter ended September 30, 2010.

Resource America, Inc. is a specialized asset management company that uses industry specific expertise to evaluate, originate, service and manage investment opportunities for its own account and for outside investors in the real estate, commercial finance and financial fund management sectors.

For more information, please visit our website at www.resourceamerica.com or contact investor relations at pkamdar@resourceamerica.com.

Statements made in this release include forward-looking statements, which involve substantial risks and uncertainties. The Company's actual results, performance or achievements could differ materially from those expressed or implied in this release and its other reports filed with the Securities and Exchange Commission. For information pertaining to risks relating to these forward-looking statements, reference is made to the section "Risk Factors" contained in Item 1A of the Company's Annual Report on Form 10-K and in other of its public filings with the Securities and Exchange Commission. The Company undertakes no obligation to update or revise any forward-looking statements to reflect new or changing information or events except as may be required by law.

A registration statement relating to securities offered by RRE Opportunity REIT was declared effective by the SEC on June 16, 2010. A written prospectus relating to these securities may be obtained by contacting Chadwick Securities, Inc., 1845 Walnut Street, 10th Floor, Philadelphia, PA 19103.

This press release shall not constitute an offer to sell or a solicitation of an offer to buy any of the securities described herein, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

The remainder of this release contains the Company's unaudited consolidated balance sheets, consolidated statements of operations, consolidated statements of cash flows, and reconciliation of GAAP (loss) income from continuing operations attributable to common shareholders to adjusted income (loss) from continuing operations attributable to common shareholders.

                          RESOURCE AMERICA, INC.
                        CONSOLIDATED BALANCE SHEETS
                    (in thousands, except share data)


                                                        September 30,
                                                  ------------------------
                                                      2010         2009
                                                  -----------  -----------
                                                  (unaudited)
ASSETS
  Cash                                            $    11,243  $    26,197
  Restricted cash                                      12,018        2,741
  Receivables                                           1,671        1,358
  Receivables from managed entities and related
   parties, net                                        66,416       55,047
  Investments in commercial finance - held for
   investment, net                                     12,176        2,429
  Investments in commercial finance - held for
   sale, net                                                -      142,701
  Investments in real estate, net                      27,114       28,923
  Investment securities, at fair value                 22,358       19,500
  Investments in unconsolidated entities               13,825       16,241
  Property and equipment, net                           9,984       13,435
  Deferred tax assets                                  43,703       45,656
  Goodwill                                              7,969        7,969
  Intangible assets, net                                    -        3,637
  Other assets                                          5,776       10,006
                                                  -----------  -----------
    Total assets                                  $   234,253  $   375,840
                                                  ===========  ===========

LIABILITIES AND EQUITY
Liabilities:
  Accrued expenses and other liabilities          $    38,492  $    40,986
  Payables to managed entities and related parties        156        1,284
  Borrowings                                           66,110      191,383
  Deferred tax liabilities                                411        2,046
                                                  -----------  -----------
    Total liabilities                                 105,169      235,699
                                                  -----------  -----------

Commitments and contingencies

Equity:
  Preferred stock, $1.00 par value, 1,000,000
   shares authorized; none outstanding                      -            -
  Common stock, $.01 par value, 49,000,000 shares
   authorized; 28,167,909 and 27,757,849 shares
   issued, respectively (including nonvested
   restricted stock of 741,086 and 552,461,
   respectively)                                          274          272
  Additional paid-in capital                          281,378      277,944
  Accumulated deficit                                 (37,558)     (22,471)
  Treasury stock, at cost; 9,125,253 and 9,213,665
   shares, respectively                               (99,330)    (100,367)
  Accumulated other comprehensive loss                (12,807)     (15,560)
                                                  -----------  -----------
    Total stockholders' equity                        131,957      139,818
  Noncontrolling interests                             (2,873)         323
                                                  -----------  -----------
    Total equity                                      129,084      140,141
                                                  -----------  -----------
                                                  $   234,253  $   375,840
                                                  ===========  ===========






                          RESOURCE AMERICA, INC.
                  CONSOLIDATED STATEMENTS OF OPERATIONS
                  (in thousands, except per share data)


                              Three Months Ended          Years Ended
                                September 30,           September 30,
                            ----------------------  ----------------------
                               2010        2009        2010        2009
                            ----------  ----------  ----------  ----------
                                  (unaudited)       (unaudited)
REVENUES:
Real estate                 $    8,032  $    8,156  $   31,911  $   25,417
Commercial finance               1,853       9,805      23,677      48,767
Financial fund management        8,783       7,930      33,140      33,344
                            ----------  ----------  ----------  ----------
                                18,668      25,891      88,728     107,528
                            ----------  ----------  ----------  ----------
COSTS AND EXPENSES:
Real estate                      4,681       4,929      20,780      22,038
Commercial finance               4,346       5,115      18,164      25,179
Financial fund management        5,153       4,936      21,028      20,468
General and administrative       3,826       3,320      12,972      14,369
Loss (gain) on sale of
 leases and loans                  392        (238)      8,097        (628)
Impairment of intangibles        2,828           -       2,828           -
Provision for credit losses      1,795       2,959       5,209       8,604
Depreciation and
 amortization                    1,249       1,941       7,842       6,922
                            ----------  ----------  ----------  ----------
                                24,270      22,962      96,920      96,952
                            ----------  ----------  ----------  ---------- 
OPERATING (LOSS) INCOME         (5,602)      2,929      (8,192)     10,576
                            ----------  ----------  ----------  ----------

OTHER (EXPENSE) INCOME:
Total other-than-temporary
 impairment losses on
 investment securities            (445)       (577)       (809)     (8,539)
Portion recognized in other
 comprehensive loss                  -           -           -           -
                            ----------  ----------  ----------  ----------
Net other-than-temporary
 impairment losses
 recognized in earnings           (445)       (577)       (809)     (8,539)
Loss on sale of loans and
 investment securities, net          -           -        (451)    (11,588)
Interest expense                (1,894)     (3,242)    (13,086)    (20,199)
Other income, net                  645         (68)      2,591       3,156
                            ----------  ----------  ----------  ----------
                                (1,694)     (3,887)    (11,755)    (37,170)
                            ----------  ----------  ----------  ----------
Loss from continuing
 operations before taxes        (7,296)       (958)    (19,947)    (26,594)
Income tax provision
 (benefit)                       2,155      (1,285)     (2,650)    (10,504)
                            ----------  ----------  ----------  ----------
(Loss) income from
 continuing operations          (9,451)        327     (17,297)    (16,090)
Income (loss) from
 discontinued operations,
 net of tax                        625        (278)        622        (444)
                            ----------  ----------  ----------  ----------
Net (loss) income               (8,826)         49     (16,675)    (16,534)
Add:  Net loss attributable
 to noncontrolling
 interests                         951          77       3,224       1,603
                            ----------  ----------  ----------  ----------
Net (loss) income
 attributable to
 common shareholders        $   (7,875) $      126  $  (13,451) $  (14,931)
                            ==========  ==========  ==========  ==========

Basic (loss) income per
 share attributable to
 common shareholders:
Continuing operations       $    (0.44) $     0.02  $    (0.74) $    (0.78)
Discontinued operations           0.03       (0.01)       0.03       (0.03)
                            ----------  ----------  ----------  ----------
Net (loss) income           $    (0.41) $     0.01  $    (0.71) $    (0.81)
                            ==========  ==========  ==========  ==========
Weighted average shares
 outstanding                    19,049      18,654      18,942      18,507
                            ==========  ==========  ==========  ==========

Diluted (loss) income per
 share attributable to
 common shareholders:
Continuing operations       $    (0.44) $     0.02  $    (0.74) $    (0.78)
Discontinued operations           0.03       (0.01)       0.03       (0.03)
                            ----------  ----------  ----------  ----------
Net (loss) income           $    (0.41) $     0.01  $    (0.71) $    (0.81)
                            ==========  ==========  ==========  ==========

Weighted average shares
 outstanding                    19,049      19,158      18,942      18,507
                            ==========  ==========  ==========  ==========
Amounts attributable to
 common shareholders:
(Loss) income from
 continuing operations      $   (8,500) $      404  $  (14,073) $  (14,487)
Discontinued operations            625        (278)        622        (444)
                            ----------  ----------  ----------  ----------
Net (loss) income           $   (7,875) $      126  $  (13,451) $  (14,931)
                            ==========  ==========  ==========  ==========

Dividends declared per
 common share               $     0.03  $     0.03  $     0.09  $     0.20
                            ==========  ==========  ==========  ==========





                          RESOURCE AMERICA, INC.
                  CONSOLIDATED STATEMENTS OF CASH FLOWS
                              (in thousands)


                                                  Years Ended September 30,
                                                  ------------------------
                                                      2010         2009
                                                  -----------  -----------
                                                  (unaudited)
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss                                          $   (16,675) $   (16,534)
Adjustments to reconcile net loss to net cash
 provided by (used in) operating activities:
  Loss on sale of loans and investment securities,
   net                                                    451       11,588
  Net other-than-temporary impairment losses
   recognized in earnings                               3,637        8,539
  Depreciation and amortization                        12,088        8,876
  Provision for credit losses                           5,209        8,604
  Equity in earnings of unconsolidated entities        (4,870)      (1,279)
  Distributions from unconsolidated entities            5,104        6,128
  Loss (gain) on sale of leases and loans               8,097         (628)
  Gain on sale of assets                               (2,420)        (642)
  Deferred income tax benefits                         (1,733)     (13,249)
  Equity-based compensation issued                      3,573        4,654
  Equity-based compensation received                   (1,441)        (867)
Decrease (increase) in commercial finance
 investments - held for sale                           17,603      (37,330)
Changes in operating assets and liabilities            (1,542)     (19,016)
                                                  -----------  -----------
Net cash provided by (used in) operating
 activities                                            27,081      (41,156)
                                                  -----------  -----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures                                     (782)        (335)
Payments received on real estate loans and real
 estate                                                 8,563       10,052
Investments in unconsolidated real estate entities     (1,821)      (4,694)
Purchase of commercial finance assets - held for
 investment                                           (11,771)     (41,942)
Payments received on commercial finance assets -
 held for investment                                        -       46,246
Purchase of loans and investment                       (1,445)     (19,290)
Proceeds from sale of loans and investment
 securities                                             4,094        5,367
Principal payments received on loans                        -        4,061
                                                  -----------  -----------
Net cash used in investing activities                  (3,162)        (535)
                                                  -----------  -----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Increase in borrowings                                103,401      438,897
Principal payments on borrowings                     (128,767)    (395,905)
Repayment from managed entity on RCC lease
 portfolio purchase                                         -        4,500
Dividends paid                                         (1,636)      (3,560)
(Increase) decrease in restricted cash                 (9,277)      10,297
Other                                                  (2,594)        (809)
                                                  -----------  -----------
Net cash (used in) provided by financing
 activities                                           (38,873)      53,420
                                                  -----------  -----------
CASH FLOWS FROM DISCONTINUED OPERATIONS:
Operating activities                                        -           (2)
Financing activities                                        -         (440)
                                                  -----------  -----------
Net cash used in discontinued operations                    -         (442)
                                                  -----------  -----------
(Decrease) increase in cash                           (14,954)      11,287
Cash, beginning of year                                26,197       14,910
                                                  -----------  -----------
Cash, end of year                                 $    11,243  $    26,197
                                                  ===========  ===========






      RECONCILIATION OF GAAP (LOSS) INCOME FROM CONTINUING OPERATIONS
    ATTRIBUTABLE TO COMMON SHAREHOLDERS TO ADJUSTED INCOME (LOSS) FROM
      CONTINUING OPERATIONS ATTRIBUTABLE TO COMMON SHAREHOLDERS (1)
                  (in thousands, except per share data)
                                (unaudited)


                                 Three Months Ended       Years Ended
                                    September 30,         September 30,
                                --------------------  --------------------
                                  2010       2009       2010       2009
                                ---------  ---------  ---------  ---------
(Loss) income from continuing
 operations attributable to
 common shareholders - GAAP     $  (8,500) $     404  $ (14,073) $ (14,487)

Adjustments, net of tax:
  Loss (income) from commercial
   finance operations (2)           6,453       (246)    12,523     (2,258)
  Deferred tax assets               3,006       (586)     3,008       (643)
                                ---------  ---------  ---------  ---------
Adjusted income (loss) from
 continuing operations
 attributable to common
 shareholders                   $     959  $    (428) $   1,458  $ (17,388)
                                =========  =========  =========  =========

Adjusted weighted average
 diluted shares outstanding (3)    19,450     18,654     19,290     18,507
                                =========  =========  =========  =========

Adjusted income (loss) from
 continuing operations
 attributable to common
 shareholders per common
 share-diluted                  $    0.05  $   (0.02) $    0.08  $   (0.94)
                                =========  =========  =========  =========



(1)  Adjusted income (loss) from continuing operations attributable to
     common shareholders presents the Company's operations without the
     effect of its commercial finance operations. The Company believes that
     this provides useful information to investors since it allows
     investors to evaluate the Company's progress in both its real estate
     and financial fund management segments during the fiscal year ended
     September 30, 2010 separately from its commercial finance operations,
     which have been severely impacted by a reduction in liquidity and lack
     of availability of credit. Adjusted income (loss) from continuing
     operations attributable to common shareholders should not be
     considered as an alternative to (loss) income from continuing
     operations attributable to common shareholders (computed in accordance
     with GAAP).  Instead, adjusted income (loss) from continuing
     operations attributable to common shareholders should be reviewed in
     connection with (loss) income from continuing operations attributable
     to common shareholders in the Company's consolidated financial
     statements, to help analyze how the Company's business is performing.

(2)  Loss (income) from commercial finance operations consists of revenues
     and expenses from commercial finance operations (including loss (gain)
     from sale of leases and loans, impairment of intangibles, provision
     for credit losses and depreciation and amortization) net of applicable
     tax benefits and non-controlling interests.

(3)  Dilutive shares used in the calculation of adjusted income from
     continuing operations attributable to common shareholders per common
     share-diluted includes an additional 401,000 and 348,000 shares for
     the three months and fiscal year ended September 30, 2010,
     respectively, which were not used in the calculation of GAAP loss from
     continuing operations attributable to common shareholders per common
     share-diluted for those periods.



Contact Information: Contact: Thomas C. Elliott Chief Financial Officer Resource America, Inc. One Crescent Drive, Suite 203 Philadelphia, PA 19112 215/546-5005 215/546-4785 (fax)