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First Quarter Net Income of $29 Million or $0.14 Per Share
Loan Growth of $139 million (2.4%) at CapitalSource Bank, Excluding $67 Million of Loans Purchased from the Parent Company
Net Interest Margin at CapitalSource Bank of 5.08%
15 Million Shares Repurchased - Outstanding Shares Reduced by 42% Since December 2010
LOS ANGELES, April 29, 2013 (GLOBE NEWSWIRE) -- CapitalSource Inc. (NYSE:CSE) today announced financial results for the first quarter of 2013. The Company reported net income for the quarter of $29 million or $0.14 per diluted share compared to net income of $47 million or $0.22 per diluted share in the prior quarter, which included $12 million or $0.06 per diluted share of non-recurring tax benefits, and net income of $25 million or $0.10 per diluted share in the first quarter of 2012.
"Overall, our first quarter financial performance represented a strong start to 2013 despite the very competitive lending environment," said James J. Pieczynski, CapitalSource CEO. "We continued to return excess Parent Company capital to shareholders in the first quarter - utilizing $140 million to repurchase 15 million shares and pay our usual quarterly dividend. That pushed total capital returned to shareholders since December of 2010 to well over $1 billion and over the last ten quarters we have reduced the outstanding share count by 42%."
"Interest income, net interest margin, total loans and leases and net income at CapitalSource Bank all increased in the first quarter from the prior quarter levels. As anticipated, all credit metrics remained within acceptable parameters and our cost of funds was down marginally as well. By any measure, it was another strong quarter of growth and profitability in a challenging environment," said Tad Lowrey, CapitalSource Bank Chairman and CEO. "The first quarter is typically seasonally weak and we have seen ongoing pricing pressure, but we were pleased with the level of loan growth which is consistent with our expectation for double-digit growth during 2013. We are maintaining underwriting discipline while continuing to benefit from the breadth of our national loan generation franchise, so remain confident we will reach our full year growth target," added Lowrey.