Daily News: January 24, 2014

CapitalSource Originates $2.5B; Drives 19% Portfolio Growth

CapitalSource reported fourth-quarter net income of $58 million, up from net income of $47 million in the fourth quarter of 2012. Net income for 2013 was $164 million compared to net income of $491 million for 2012, which included $347 million related to the reversal of a substantial portion of the company’s deferred tax asset valuation allowance in the second quarter of 2012.

The Capital Source Bank segment full-year net income of $140.7 million was up 15% compared to $122.7 million a year earlier. The net book value of the loan and lease portfolio at YE/13 was $6.85 billion, up 19% from $5.76 billion a year earlier.

CapitalSource noted the Equipment Finance portfolio grew 27% year-over-year from $609.4 million at YE/12 to $771.9 million at YE/13.

“2013 was an outstanding year of growth and profitability for CapitalSource Bank. Our national lending franchise once again outperformed our expectations – originating over $2.5 billion of new loans which resulted in 19% loan growth,” said James J. Pieczynski, CapitalSource CEO. “Our strong financial performance last year will be greatly enhanced by the planned merger with PacWest Bancorp. We are
very pleased that CapitalSource shareholders overwhelmingly approved the merger at a special meeting on January 13, and we look forward to receiving the required regulatory approvals so the transaction can
close before the end of the first quarter.”

To read the CapitalSource news release click here.