Alesco Financial Inc. Announces First Quarter 2009 Financial Results

PHILADELPHIA, May 11 /PRNewswire-FirstCall/ -- Alesco Financial Inc. (NYSE:
AFN) ("AFN" or the "Company"), a specialty finance real estate investment
trust, today announced financial results for the three-months ended March 31,
2009.

AFN reported a GAAP net loss for the three-months ended March 31, 2009 of
($35.8) million, or ($0.60) per diluted common share, as compared to net
income of $84.9 million, or $1.40 per diluted common share for the
three-months ended March 31, 2008. AFN's net loss for the three-month period
ended March 31, 2009 included ($50.5) million in loan loss provisions on our
residential mortgage and leveraged loan portfolios, partially offset by net
investment income generated from our investment portfolio.

Liquidity and Equity Summary
As of March 31, 2009, our consolidated financial statements include $87.7
million of available, unrestricted cash and cash equivalents. The following
table shows the components of our stockholders' equity and the net change in
cash and cash equivalents attributable to such components, in each case as
determined in accordance with GAAP, as of, and for the three months ended,
March 31, 2009. The table is divided between the components of our
stockholders' equity which are attributable to our assets and liabilities
which are not assets and liabilities of consolidated variable interest
entities ("VIEs"), and those which are assets and liabilities of consolidated
VIEs. The assets of consolidated VIEs are pledged to satisfy the liabilities
of the consolidated VIEs. The liabilities of our consolidated VIEs are
non-recourse to us, but similarly we have no rights to use any of the proceeds
of the assets held by consolidated VIEs to satisfy any of our recourse
liabilities. The components of our stockholders' equity attributable to our
investments in consolidated VIEs are determined in accordance with GAAP (under
which we consolidate all of the assets and liabilities of the VIEs) and do not
reflect the fair value of the interests in the consolidated VIEs owned by us.
The Net Change in Cash and Cash Equivalents column reflects the sources and
uses of cash during the period with respect to each component of our
stockholders' equity.

Net Change in
Allocated Parent Cash and Cash
Stockholders' Equity Equivalents for
as of Three Months Ended
March 31, 2009 March 31, 2009 (C)
(amounts in thousands)

Net Assets not Included in
Consolidated VIEs:
Investments in TruPS
debt securities $5,790 $200
Investments in residential and
commercial loans 8,876 304
Cash and cash equivalents 87,666 193
Other assets and
liabilities, net (A) 3,863 (2,583) (D)
Recourse indebtedness (A) (76,188) (949)

Net Assets of
Consolidated VIEs (B):
Investments in TruPS CDOs $4,935 -
Investments in
leveraged loan CLOs
and warehouse facility 1,203 2,819 (E)
Investment in Kleros
Real Estate (MBS) CDOs - -
Investment in residential loan
mortgage loan securitization (6,137) 1,647

Total $30,008 $1,631

(A) Amount is net of our $1.5 million investment in common securities
of the trusts that issued our junior subordinated debentures. The
$1.5 million is recorded within other assets in our consolidated
financial statements.

(B) We currently hold the following notional amounts of preference
shares or subordinated interests in consolidated VIEs: $218.5
million in TruPS CDOs, $48 million in leveraged loan CLOs, $38.5
million in a leveraged loan warehouse facility, $54.5 million in
a whole-loan mortgage securitization and $90 million in Kleros
Real Estate CDOs. As of March 31, 2009, the Company estimated the
aggregate fair value of its investments in preference shares and
subordinated interests of consolidated VIEs to be approximately
$4.6 million.

(C) The Company's primary sources of cash are interest income on debt
securities, cash deposits and mortgage loans, distributions from
investments in consolidated VIEs (such as CDOs, CLOs and mortgage
securitization) and proceeds from the sale of assets. The Company's
primary uses of cash are recourse debt service, payment of general
and administrative expenses, and additional investments. The
following reconciles the change in cash and cash equivalents
during the three-months ended March 31, 2009:

Cash and cash equivalents, at the beginning
of the period $86,035
Net change in cash and cash equivalents 1,631
Cash and cash equivalents, at the end of the period $87,666

(D) Amount relates to payment of general and administrative expenses
incurred directly by the Company. General and administrative
expenses incurred and paid by consolidated VIEs reduce the
Company's net distributions, if any, from these consolidated
VIEs and are not paid directly by the Company.

(E) Amount includes $2.4 million of distributions from investments in
CLOs, $1.8 million of distributions from an investment in a
leveraged loan warehouse facility, and is partially reduced by $1.4
million of additional contributions to the leveraged loan warehouse
facility during the three-months ended March 31, 2009. The leveraged
loan warehouse facility is currently in default and all principal and
interest collections are being used to amortize the warehouse credit
facility debt. Subsequent to March 31, 2009, we experienced a partial
failure of an interest diversion test in our Emporia II CLO, which
resulted in a reduction to our quarterly cash distribution from the
Emporia II CLO. The partial failure was primarily attributable to the
recent increase in defaulted assets collateralizing the CLO. The
interest diversion test was cured in April 2009; however, the current
state of the credit markets and the economy in general increases the
likelihood of defaults and ratings agency downgrades on the underlying
collateral of our CLOs.

Management has evaluated our current and forecasted liquidity and continues to
monitor evolving market conditions. Future investment alternatives and
operating activities will continue to be evaluated against anticipated current
and longer term liquidity demands. Management will continue to consider
projections regarding our taxable income and liquidity position and decisions
regarding future dividends are subject to the review and approval of our board
of directors.

On October 10, 2008, the Company was notified by the New York Stock Exchange
(the "NYSE") that it was not in compliance with an NYSE continued listing
standard applicable to its common stock. The standard requires that the
average closing price of any listed security not fall below $1.00 per share
for any consecutive 30 trading-day period. On October 15, 2008, the Company
notified the NYSE of its intent to cure this deficiency. After exploring
different alternatives for curing the deficiency and restoring compliance with
the continued listing standards, the Company currently expects to effectuate a
1 for 10 reverse stock split of the outstanding shares of its common stock.
Under the NYSE rules, the Company has six months from the date of the NYSE
notice to comply with the NYSE minimum share price standard. If the Company
is not compliant by that date, its common stock will be subject to suspension
and delisting by the NYSE. However, on February 26, 2009, the NYSE granted
NYSE-listed companies a reprieve from the NYSE's $1 minimum price requirement
until June 30, 2009. In addition, the NYSE extended until June 30, 2009 the
temporary lowering of its market-capitalization standard to $15 million for
listed companies, which generally requires that average market capitalization
of a NYSE-listed company be at least $25 million over any 30 consecutive
trading day period. We therefore have until August 13, 2009 to become
compliant with the NYSE minimum share price standard. If we fail to meet any
of the NYSE's other listing standards, however, we may be delisted for failing
to comply with the continued listing standards.

Investment Portfolio Summary

Investments in Debt Securities

The following table summarizes our investments in debt securities as of March
31, 2009 (dollars in thousands):
Cumulative Weighted-
Net Change Estimated Weighted Average
Investment Amortized in Fair Fair Average Years to
Description Cost Value Value Coupon Maturity

(dollars in thousands)
TruPS and
subordinated
debentures
and security-
related
receivables $5,532,009 $(4,136,994) $1,395,015 4.7% 27.4

MBS 2,030,142 (1,619,054) 411,088 2.4% 6.9

Total $7,562,151$ (5,756,048) $1,806,103 4.1% 21.9

Subsequent to the adoption of Statement of Financial Accounting Standards No.
159, "The Fair Value Option for Financial Assets and Financial Liabilities,"
on January 1, 2008, all of the Company's investments in debt securities are
classified as trading securities. The estimated fair values of our
investments are based primarily on quoted market prices from independent
pricing sources, or when quoted market prices are not available because
certain securities do not actively trade in the public markets, based on
comparisons to similar instruments or from internal pricing models. These
internal valuation models include discounted cash flow analyses developed by
management using current interest rates, estimates of the term of the
particular contract, specific issuer information and other market data for
securities without an active market. Management's estimates of fair value
require significant management judgment and are subject to a high degree of
variability based upon market conditions, the availability of specific issuer
information and management's assumptions.

As of March 31, 2009, the aggregate principal amount of investments in the 46
TruPS investments that have defaulted or are currently deferring interest
payments is $726.5 million, representing approximately 14.1% of our combined
TruPS portfolio. As of March 31, 2009, $307.5 million of defaulted securities
have been completely written off in our consolidated financial statements.
For the three-months ended March 31, 2009, investment interest income does not
include $9.1 million of interest earnings on the $726.5 million of currently
deferring and defaulted securities. The TruPS deferrals and defaults
described above have resulted in the over-collateralization tests being
triggered in all eight CDOs in which we hold equity interests. The trigger of
an over-collateralization test in a TruPS CDO means that AFN, as a holder of
equity securities, will not receive current distributions of cash in respect
of its equity interests until sufficient debt is paid down in the CDOs to cure
the over-collateralization tests.

Investments in Loans
Loans accounted for as held for investment are recorded at amortized cost.
Loans accounted for as held for sale are carried at the lower of cost or
market, with changes in fair value recorded in the net change in fair value of
investments in debt securities and loans and non-recourse indebtedness. The
following table summarizes our investments in loans as of March 31, 2009
(dollars in thousands):

Unpaid Unamortized Cumulative
Principal Premium/ Unrealized Carrying
Balance (Discount) Gain (Loss) Amount
March 31, 2009:
5/1 Adjustable rate
residential mortgages $593,654 $6,578 $- $600,232

7/1 Adjustable rate
residential mortgages 202,237 3,284 - 205,521

10/1 Adjustable rate
residential mortgages 68,048 1,243 - 69,291

Commercial loan (1) 7,464 - - 7,464

Leveraged loans 867,537 (10,244) (60,530) 796,763

Total $1,738,940 $861 $(60,530) $1,679,271

(1) Weighted-average interest rate excludes non-interest accruing
commercial loan.

Weighted-
Weighted- Average
Number Average Contractual
of Interest Maturity
Loans Rate Date
March 31, 2009:
5/1 Adjustable rate
residential mortgages 1,446 6.3% July 2036

7/1 Adjustable rate
residential mortgages 472 6.6% Dec 2036

10/1 Adjustable rate
residential mortgages 184 6.8% Sept 2036

Commercial loan (1) 1 21.0% -

Leveraged loans 435 5.4% May 2013

Total 2,538 5.9%

As of March 31, 2009, the Company continues to classify all of the leveraged
loans included in its warehouse facility with a third party as held for sale.
During the three-months ended March 31, 2009, the Company recorded a $40
million increase to the fair value of these leveraged loans. The fair value
increase was primarily attributable to a tightening of estimated credit
spreads as evidenced by comparable market leveraged loan data. During the
fourth quarter of 2008, the Company determined that it no longer had the
intent to hold these particular loans to maturity or for the foreseeable
future. The warehouse facility that provides short-term financing for
approximately $157.1 million of par value of leveraged loans is scheduled to
mature in May 2009 and, as previously disclosed, is currently in default. If
the securitization markets remain effectively closed for the foreseeable
future, the Company will likely lose the first loss cash that is deposited
with the warehouse lender in the amount of $38.5 million, which is the maximum
amount of loss that the Company is exposed to from the warehouse facility.

The following table summarizes the Company's allowance for loan losses:
As of As of
March 31, December 31,
2009 2008

Leveraged loans $46,742 $26,765
Residential mortgages 67,799 41,663

Total $114,541 $68,428

The following table provides a roll-forward of our loan loss reserves:
For the
Three-Months
Ended
March 31,
2009

Balance, December 31, 2008 $68,428
Additions 50,458
Charge-offs (4,345)

Balance, March 31, 2009 $114,541

Indebtedness

The following table summarizes our total indebtedness (including recourse and
non-recourse indebtedness) as of March 31, 2009 (dollars in thousands):

Cumulative Net
Change in
Amortized Fair Carrying
Description Cost Value Amount

Non-recourse indebtedness:
Trust preferred obligations $385,600 $(286,084) $99,516
Securitized mortgage debt 821,802 - 821,802
CDO notes payable (1) 8,436,837 (6,309,824) 2,127,013
Warehouse credit facilities 123,114 - 123,114

Total non-recourse
indebtedness $9,767,353 $(6,595,908) $3,171,445

Recourse indebtedness:
Junior subordinated
debentures $49,614 $- $49,614
Contingent convertible debt 28,063 - 28,063

Total recourse indebtedness $77,677 $- $77,677

Total indebtedness $9,845,030 $(6,595,908) $3,249,122

(1) Excludes CDO notes payable purchased by the Company which are
eliminated in consolidation. Carrying amount includes $1.4 billion
of liabilities at fair value.

Current
Weighted- Weighted-
Interest Average Average
Rate Interest Contractual
Description Terms Rate Maturity
Non-recourse indebtedness:
Trust preferred obligations 1.7% to 9.3% 4.6% Oct 2036
Securitized mortgage debt 5.0% to 6.0% 5.7% Dec 2046
CDO notes payable (1) 0.7% to 7.9% 1.7% Mar 2039
Warehouse credit facilities 3.7% 3.7% May 2009

Total non-recourse indebtedness

Recourse indebtedness:
Junior subordinated
debentures 5.6% to 9.5% 7.9% Aug 2036
Contingent convertible debt 7.6% 7.6% May 2027
Total recourse indebtedness

Total indebtedness

(1) Excludes CDO notes payable purchased by the Company which are
eliminated in consolidation. Carrying amount includes $1.4 billion
of liabilities at fair value.

Recourse indebtedness refers to indebtedness that is recourse to the general
assets of the Company. As indicated in the table above, the Company's
consolidated financial statements include recourse indebtedness of $77.7
million as of March 31, 2009. Non-recourse indebtedness consists of
indebtedness of consolidated VIEs (i.e. CDOs, CLOs and other securitization
vehicles) which is recourse only to specific assets pledged as collateral to
the lenders. The creditors of each consolidated VIE have no recourse to the
general credit of the Company. As of March 31, 2009, the Company's maximum
exposure to economic loss as a result of its involvement with each VIE is the
$449.5 million of capital that the Company has invested in warehouse
first-loss deposits and the preference shares or debt of the CDO, CLO or other
types of securitization structures. None of the indebtedness shown in the
table above subjects the Company to potential margin calls for additional
pledges of cash or other assets.

Adoption of New Accounting Principles
In December 2007, the FASB issued Statement of Financial Accounting Standards
No. 160, "Noncontrolling Interests in Consolidated Financial Statements-an
amendment of Accounting Research Bulletin No. 51" ("SFAS No. 160"). SFAS No.
160 requires reporting entities to present noncontrolling (minority) interests
as equity (as opposed to as a liability or mezzanine equity) and provides
guidance on the accounting for transactions between an entity and
noncontrolling interests. SFAS No. 160 applies prospectively as of the first
annual reporting period beginning on or after December 15, 2008, except for
the presentation and disclosure requirements which will be applied
retrospectively for all periods presented. As of January 1, 2009, the Company
adopted SFAS No. 160 and the adoption of SFAS No. 160 resulted in the
following changes to the presentation of the Company's prior period
consolidated financial statements: (1) reclassified all amounts previously
included within the "Minority interests" financial statement caption to the
"Noncontrolling interests in subsidiaries" financial statement caption, which
is included within the equity section of the Company's consolidated balance
sheets; (2) consolidated net income (loss) was adjusted to include net income
(loss) attributable to both the controlling and noncontrolling interests; and
(3) consolidated comprehensive income (loss) was adjusted to include
comprehensive income (loss) attributable to both the controlling and
noncontrolling interests. The adoption of SFAS No. 160 did not have an impact
on net income (loss) for any prior periods.

In May 2008, the FASB issued FSP No. Accounting Principles Board 14-1,
"Accounting for Convertible Debt Instruments That May Be Settled in Cash upon
Conversion (Including Partial Cash Settlement)," or FSP APB 14-1, which
clarifies the accounting for convertible debt instruments that may be settled
in cash (including partial cash settlement) upon conversion. FSP APB 14-1
requires issuers to account separately for the liability and equity components
of certain convertible debt instruments in a manner that reflects the issuer's
nonconvertible debt (unsecured debt) borrowing rate when interest cost is
recognized. The equity component is presented in parent stockholders' equity
and the accretion of the resulting discount on the debt is recognized as part
of interest expense in the consolidated statement of operations. FSP APB 14-1
requires companies to retroactively apply the requirements of the
pronouncement to all periods presented. As of January 1, 2009, the Company
adopted FSP APB 14-1 and the effect of adoption was not material to the three
months ended March 31, 2009 and 2008. However, the consolidated financial
statements as of and for the year ended December 31, 2008 have been
retroactively restated for the adoption, which resulted in an increase to the
Company's net loss of $1.6 million or $0.03 per diluted share and a $2.2
million increase to parent stockholders' equity at January 1, 2008.

In June 2008, the FASB issued FSP EITF 03-6-1, "Determining Whether
Instruments Granted in Share-Based Payment Transactions Are Participating
Securities" ("FSP EITF 03-6-1"). FSP EITF 03-6-1 addresses whether
instruments granted in share-based payment transactions are participating
securities prior to vesting and, therefore, need to be included in the
earnings allocation in computing earnings per share under the two-class method
as described in SFAS No. 128, "Earnings per Share." Under the guidance in FSP
EITF 03-6-1, unvested share-based payment awards that contain non-forfeitable
rights to dividends or dividend equivalents (whether paid or unpaid) are
participating securities and shall be included in the computation of earnings
per share pursuant to the two-class method. FSP EITF 03-6-1 is effective for
fiscal years beginning after December 15, 2008, and interim periods within
those fiscal years. As of January 1, 2009, the Company adopted FSP EITF
03-6-1 and all prior-period earnings per share data presented was adjusted
retrospectively. The effect of adoption was a reduction to basic and diluted
earnings (loss) per share by $0.03 for the three-months ended March 31, 2008,
and there was no material impact to the three-months ended March 31, 2009.

Conference Call
As previously announced, a conference call to discuss these financial results
with investors and analysts will be held on May 11, 2009 at 10:00 AM ET.
Interested parties can access the live webcast of our conference call by
clicking on the webcast link on our homepage at www.alescofinancial.com.
Those wishing to participate in the conference call via telephone with
operator assistance can dial 866-831-6272 or, for those calling from overseas,
617-213-8859, at least ten minutes in advance of the scheduled time. A replay
will be available for two weeks at 888-286-8010, pass code 59551093.

About Alesco Financial Inc.
Alesco Financial Inc. is a specialty finance REIT headquartered in
Philadelphia, Pennsylvania. Alesco Financial Inc. is externally managed by
Cohen & Company Management, LLC, a subsidiary of Cohen & Company, an
alternative investment management firm, which, since 2001, has provided
financing to small and mid-sized companies in financial services, real estate
and other sectors. For more information, please visit
www.alescofinancial.com.

Forward-Looking Statements
Information set forth in this release contains forward-looking statements,
which involve a number of risks and uncertainties. Alesco Financial Inc.
cautions readers that any forward-looking information is not a guarantee of
future performance and that actual results could differ materially from those
contained or implied in the forward-looking information.

The following factors, among others, could cause actual results to differ from
those set forth in the forward-looking statements: the failure of Alesco
Financial Inc. to successfully execute its business plans or gain access to
additional financing, continued disruption in the U.S. credit markets
generally and the mortgage loan and CDO markets particularly, AFN's ability to
timely consummate the merger with Cohen & Company, the limited availability of
additional investment portfolios for future acquisition, performance of
existing investments, AFN's ability to restore compliance with NYSE continued
listing standards or, in the event that AFN is unable to maintain its listing
with the NYSE, its ability to comply with the initial listing standards of the
NYSE or another securities exchange, continued qualification as a REIT and the
cost of capital. Additional factors that may affect future results are
contained in our filings with the Securities and Exchange Commission (the
"SEC"), which are available at the SEC's web site at www.sec.gov and Alesco
Financial Inc.'s web site, www.alescofinancial.com. Alesco Financial Inc.
disclaims any obligation to update and revise statements contained in these
materials based on new information or otherwise.

Additional Information About the Merger and Where to Find It
In connection with the proposed merger, AFN will file with the SEC, a
registration statement on Form S-4 which will include proxy statements of AFN
and Cohen & Company and a prospectus of AFN. STOCKHOLDERS ARE URGED TO READ
THE PROXY STATEMENT/PROSPECTUS CAREFULLY AND IN ITS ENTIRETY WHEN IT BECOMES
AVAILABLE BECAUSE IT WILL CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED
MERGER. The definitive proxy statement will be mailed to AFN's stockholders.
In addition, stockholders will be able to obtain the proxy
statement/prospectus and all other relevant documents filed by AFN with the
SEC free of charge at the SEC's website www.sec.gov or from Alesco Financial
Inc., Attn: Investor Relations, 2929 Arch Street, 17th Floor, Philadelphia, PA
19104.

Participants in the Solicitation
AFN and its directors and executive officers may be deemed to be participants
in the solicitation of proxies from the stockholders of AFN in favor of the
proposed merger. Information about the directors and executive officers of
AFN and their ownership of AFN stock is set forth in AFN's annual report on
Form 10-K/A filed with the SEC on April 30, 2009. Investors may obtain
additional information regarding the interests of such participants by reading
the proxy statement/prospectus for the proposed merger when it becomes
available. Stockholders may obtain these documents from the SEC or AFN using
the contact information above.

Alesco Financial Inc.
Consolidated Statements of Income (Loss)
(Unaudited and in thousands, except share and per share information)

For the For the
Three Months Three Months
Ended Ended
March 31, March 31,
2009 2008
(As Adjusted)
Net investment income (loss):
Investment interest income $99,884 $173,895
Investment interest expense (58,953) (139,784)
Provision for loan losses (50,458) (7,564)

Net investment income (loss) (9,527) 26,547

Expenses:
Related party management compensation 3,876 4,715
General and administrative 3,973 3,615

Total expenses 7,849 8,360
Other income and expense:
Interest and other income 406 1,494
Net change in fair value of
investments in debt securities and
loans and non-recourse indebtedness 6,877 202,858
Net change in fair value of
derivative contracts (4,752) (82,863)
Credit default swap premiums - (1,335)
Impairments on other investments and
intangible assets (2,077) (8,557)
Net realized loss on sale of assets (11,845) (1,449)

Earnings (loss) before benefit
(provision) for income taxes (28,767) 128,335
Benefit (provision) for income taxes (14,188) 427

Net income (loss) (42,955) 128,762
Less: Net (income) loss
attributable to noncontrolling
interests 7,122 (43,875)

Net income (loss) attributable to
common stockholders $(35,833) $84,887

Earnings (loss) per share-basic:
Basic earnings (loss) per share $(0.60) $1.40

Weighted-average shares
outstanding-Basic 60,171,324 60,548,032

Earnings (loss) per share-diluted:
Diluted earnings (loss) per share $(0.60) $1.40

Weighted-average shares
outstanding-Diluted 60,171,324 60,548,032

Distributions declared per common share $- $0.25

Note: See "Adoption of New Accounting Principles" section of this release
for discussion of current and prior period effects of new accounting
principles.

Alesco Financial Inc.
Consolidated Balance Sheets
(Unaudited and in thousands, except share and per share information)

As of As of
March 31, December 31,
2009 2008
(As Adjusted)
Assets
Investments in debt securities and
security-related receivables, at
fair value $1,806,103 $2,079,750
Investments in loans
Residential mortgages 875,044 901,491
Commercial mortgages 7,464 7,464
Leveraged loans (including amounts
held for sale of $96,287 and
$63,601, respectively) 796,763 780,269
Loan loss reserve (114,541) (68,428)

Total investments in loans, net 1,564,730 1,620,796
Cash and cash equivalents 87,666 86,035
Restricted cash and warehouse deposits 77,194 54,059
Accrued interest receivable 22,777 31,435
Deferred tax asset 11,620 25,036
Other assets 33,839 37,820

Total assets $3,603,929 $3,934,931

Liabilities and equity
Indebtedness
Trust preferred obligations, at
fair value $99,516 $120,409
Securitized mortgage debt 821,802 844,764
CDO notes payable (including
amounts at fair value of
$1,421,683 and $1,647,590,
respectively) 2,127,013 2,342,920
Warehouse credit facilities 123,114 126,623
Recourse indebtedness 77,677 77,656

Total indebtedness 3,249,122 3,512,372
Accrued interest payable 21,668 30,530
Related party payable 5,899 4,880
Derivative liabilities 250,056 266,984
Other liabilities 11,531 12,165

Total liabilities 3,538,276 3,826,931
Equity
Preferred stock, $0.001 par value
per share, 50,000,000 shares
authorized, no shares issued and
outstanding - -
Common stock, $0.001 par value per
share, 100,000,000 shares
authorized, 60,171,324 issued and
outstanding, including 836,776
and 985,810 unvested restricted
share awards, respectively 59 59
Additional paid-in-capital 484,742 484,612
Accumulated other comprehensive loss (13,464) (14,223)
Accumulated deficit (441,329) (405,496)

Total parent stockholders' equity 30,008 64,952
Noncontrolling interests in subsidiaries 35,645 43,048

Total equity 65,653 108,000

Total liabilities and equity $3,603,929 $3,934,931

Note: See "Adoption of New Accounting Principles" section of this release
for discussion of current and prior period effects of new accounting
principles.

Investors: Media:
John Longino Joseph Kuo
Chief Financial Officer Kekst and Company
215-701-8952 212-521-4863
info@alescofinancial.com

SOURCE Alesco Financial Inc.

Investors: John Longino, Chief Financial Officer, +1-215-701-8952,
info@alescofinancial.com; Media: Joseph Kuo, Kekst and Company,
+1-212-521-4863