CapitalSource announced financial results for the fourth quarter of 2012. The Company reported net income for the quarter of $47 million compared to net income of $31 million in the prior quarter and 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.
CapitalSource Bank Segment - Fourth Quarter 2012 Highlights
- Net Income was $34 million, unchanged from the prior quarter.
- Loans and Leases increased $441 million as funded loan and lease production of $843 million, compared to $623 million in the prior quarter, raised full year loan growth to $909 million. Total loans and leases were $5.8 billion at quarter end, an increase of 19% since December 31, 2011.
- Credit Quality - Loan loss provision was $1.4 million, compared to $0.3 million in the prior quarter. The provision was positively impacted by recoveries of $8.1 million due to the resolution of previously charged off amounts, compared to $4.9 million of recoveries in the prior quarter. Net charge-offs were $1.0 million in the quarter, compared to $3.6 million in the prior quarter. Non-accrual loans decreased to $42 million or 0.74% of loans at quarter end, compared to $64 million or 1.21% of loans at the end of the prior quarter. Non-performing assets declined by $23 million to $47 million or 0.64% of total assets. The allowance for loan and lease losses was $99 million or 1.76% of loans at quarter end, compared to $98 million or 1.89% of loans at the end of the prior quarter.
“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. “Our return of capital initiative continued in the fourth quarter, with payment of a $0.50 per share special dividend in December and eight million additional shares repurchased. Since December of 2010 we have returned over $900 million to shareholders in the form of dividends and share repurchases, while retiring 35% of our outstanding shares," concluded Pieczynski.
Read the full CapitalSource earnings press release.