CapitalSource Inc. announced financial results for the second quarter of 2012. The Company reported net income for the quarter of $388 million or $1.66 per diluted share, including $1.49 per diluted share resulting from reversal of $347 million of the Company’s deferred tax asset valuation allowance. Excluding the reversal, net income for the quarter was $40 million or $0.17 per diluted share, compared to net income of $25 million or $0.10 per diluted share in the prior quarter and net income of $17 million or $0.05 per diluted share in the second quarter of 2011.
CapitalSource Bank Segment – includes commercial lending and banking business activities in CapitalSource Bank.
Second Quarter 2012 Highlights:
- Net Income was $23 million, a decrease of $9 million from the prior quarter primarily due to an $11 million increase in provision for loan losses.
- Total interest income decreased $3 million to $96 million, primarily due to non-recurring items in the prior quarter.
- Total loans and leases increased $250 million or 5%, to $5.3 billion at quarter end versus quarter end March 31, 2012.
- Total loans and leases increased 30% since June 30, 2011.
- Funded loan and lease production was $596 million, compared to $522 million in the prior quarter.
- Equipment finance business line loan and lease portfolio increased to $470.3 million from $417.8 million at the end of the first quarter and $289.2 million as of June 30, 2011.
- Allowance for loan and lease losses was $102 million or 1.96% of the loan portfolio, an increase of $5 million from the prior quarter.
“Our national lending franchise continued to produce at a high level in the second quarter - with $250 million of loan growth at the Bank, representing 5% growth in the quarter. Funded production of $596 million was in line with our projection, as was the net interest margin in the quarter at 4.95%," said Tad Lowrey, CapitalSource Bank Chairman and CEO. "Bank assets increased to $7.1 billion, while deposit costs declined by 7 basis points. Though several favorable one-time items in the first quarter and a higher loan loss provision in the second quarter make some linked quarter comparisons unfavorable, we are very pleased with the overall financial performance at CapitalSource Bank through the first half of 2012 and remain on track for significant year over year earnings and loan growth.”
Read the full CapitalSource press release.