CapitalSource Swings to FY Profit Helped by Tax Benefit
CapitalSource reported net income for the fourth quarter 2012 of $47 million compared to net income of $9 million in the fourth quarter of 2011. Net income for the full year 2012 was $491 million compared to a net loss of $52 million for the full year 2011. Consolidated results for 2012 were helped by a tax benefit of $370 million and a provision charge that was $54 million lower than the previous year. 2011 results included an extinguishment of debt charge of $119 million.
Highlights excerpted from the news release follow:
“The fourth quarter concluded a year of substantial achievement on key financial metrics and important progress on our principal strategic objectives, including growing CapitalSource Bank, returning excess
capital to shareholders, reversing a substantial portion of our deferred tax asset valuation allowance and significantly improving and stabilizing the overall credit profile of our loan portfolio,” said James J. Pieczynski, CapitalSource CEO.
“Looking ahead to 2013, we expect to achieve bank holding company status for the parent and conversion to a state bank commercial charter for the Bank by year end,” said Tad Lowrey, CapitalSource chairman and CEO. Though the full economic benefit will not be evident until the first quarter of 2013, we successfully redeployed $296 million of excess liquidity at the Bank to fund a substantial portion of fourth quarter loan growth, which will provide a head start for 2013 earnings,” added Lowrey.
To read the CapitalSource news release: click here.