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Capital Source Reports Third Quarter Loss Driven by One-Time Charge

October 28, 2011, 07:00 AM
Filed Under: Corporate Earnings


CapitalSource Inc. reported a net loss for the quarter of $81 million compared to net income of $17 million in the prior quarter. Net income in the third quarter of 2010 was $78 million which included a carry-back tax benefit of $37 million.

The loss in the quarter was driven by a one-time charge of $114 million resulting from the early retirement of debt.

“Funded loan production was particularly strong in the quarter.  Loan growth so far this year of $688 million at CapitalSource Bank, on new funded loan production of approximately $1.8 billion, represents 18% growth year-to-date. It is clear, therefore, that we can expect loan growth for the full year in excess of 20%,” said James J. Pieczynski, CapitalSource CEO.

“Growth in the quarter was broad-based with the largest concentrations in technology cash flow, healthcare real estate, equipment finance, general real-estate and multifamily. We have been actively hiring across our entire lending platform and we are attracting highly talented professionals, which underscores the momentum we are experiencing.”







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