Daily News: April 30, 2013

CapitalSource Bank Segment Portfolio Grows to $6B

CapitalSource reported net income for Q1/13 of $29 million compared to net income of $25 million in Q1/12. The company said its Bank segment’s new funded loan and lease production in Q1/13 was $575 million, excluding a $67 million loan purchase, compared to $843 million in the prior quarter which was significantly boosted by year-end transactions. Q1/12 lease and loan production was $521.5 million.

Deposits were $5.7 billion at quarter end with an average weighted interest rate on total deposits of 0.88%. Total loans and leases were $6 billion at quarter end, an increase of 18% from a year ago.

Commenting on its CapitalSource Bank segment, the company said its equipment finance first quarter 2013 ending portfolio of $622.2 million was up 49% from $417.9 million at the end of the same quarter 2012. CapitalSource noted that the increase included $141 of operating leases and related equity investments as of March 31, 2013.

“Overall, our first quarter financial performance represented a strong start to 2013 despite the very competitive lending environment,” said James J. Pieczynski, CapitalSource CEO. “We continued to return excess parent company capital to shareholders in the first quarter – utilizing $140 million to repurchase 15 million shares and pay our usual quarterly dividend. That pushed total capital returned to shareholders since December of 2010 to well over $1 billion and over the last ten quarters we have reduced the outstanding share count by 42%.”

As anticipated, all credit metrics remained within acceptable parameters and our cost of funds was down marginally as well. By any measure, it was another strong quarter of growth and profitability in a challenging environment,” said Tad Lowrey, CapitalSource Bank chairman and CEO.

“The first quarter is typically seasonally weak and we have seen ongoing pricing pressure, but we were pleased with the level of loan growth which is consistent with our expectation for double-digit growth during 2013. We are maintaining underwriting discipline while continuing to benefit from the breadth of our national loan generation franchise, so remain confident we will reach our full year growth target,” added Lowrey.

To read the full CapitalSource news release, click here.