Daily News: February 17, 2012

CapitalSource Reports 50% Y/Y Portfolio Growth


CapitalSource reported net income for the quarter of $9 million compared to a net loss of $81 million in the prior quarter and net income of $6 million in the fourth quarter of 2010. The company net loss for the full-year 2011 was $52 million compared to a net loss of $109 million for the full-year 2010. The company said the full-year 2011 net loss was caused by a third-quarter charge of $114 million due to the early retirement of debt.

CapitalSource noted its total asset-based year-end portfolio of $1,441 million was up from $974.2 million or almost 50% higher compared to year-end 2010. New loan and lease fundings in the fourth quarter were $664.8 million, up from $536.2 million or 24% higher compared to the same period one-year ago.

“The fourth quarter capped a year of substantial progress on our principal objectives for 2011 — growing CapitalSource Bank, shrinking the parent company balance sheet, improving the overall credit profile of our loan portfolio and returning capital to shareholders,” said James J. Pieczynski, CapitalSource CEO.

“The financial performance at CapitalSource Bank was very strong in the fourth quarter, with a net interest margin of 4.95%, growth in the loan and lease portfolio of $231 million and pretax income of $47 million,” said Tad Lowrey, CapitalSource Bank CEO. “2011 was a year of exceptional growth at the Bank. Compared to 2010, our total assets and deposits were both up 11%; loans and leases grew by 25%; and pretax income was up over 160%. Our credit profile improved dramatically as well, as non-performing assets declined to 1.87% of total assets at December 31, 2011 compared to 4.83% at December 31, 2010. We expect continued growth in loans, deposits and profitability in 2012.”

To read the CapitalSource release in its entirety, click here.