Daily News: October 31, 2012

CapitalSource Bank Earnings Rise 34% Year/Year


CapitalSource reported net income for third-quarter 2012 was $31 million compared to net income of $388 million in the prior quarter and a net loss of $81 million in the third quarter of 2011.

The company said third-quarter net income for CapitalSource Bank was $33.9 million, an increase of $10.8 million, or 47%, from the prior quarter primarily due to a lower loan loss provision. Net income for the same quarter in 2011 was $25.2 million.

Bank loans and leases increased $24 million as funded loan and lease production of $623 million, compared to $596 million in the prior quarter, was largely offset by $599 million of loan repayments, sales and other reductions. Total loans and leases were $5.4 billion at quarter end, a year-to-date increase of 10% and an 18% increase since September 30, 2011. Equipment finance assets as of September 30, 2012 were $561.6 million, up from $470.3 million sequentially and $361.8 million one year earlier.

The bank loan loss provision was $0.3 million, compared to $13 million in the prior quarter. Net charge-offs were $4 million in the quarter, compared to $7 million in the prior quarter. Non-accrual loans decreased to $64 million or 1.21% of loans at quarter end, compared to $102 million or 1.94% of loans at the end of the prior quarter. The allowance for loan and lease losses was $98 million or 1.89% of loans at quarter end, compared to $102 million or 1.96% of loans at the end of the prior quarter.