Investors are urged to carefully read the forward-looking statements language in our earnings release, but essentially, it says the following: Statements made on this call, which are not historical facts, may be deemed forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All forward-looking statements, including statements regarding future financial operating results, involve risks, uncertainties, and contingencies, many of which are beyond the control of CapitalSource and which may cause actual results to differ materially from anticipated results.CapitalSource is under no obligation to update or alter our forward-looking statements, whether as a result of new information, future events or otherwise, and we expressly disclaim any obligation to do so. And more detailed information about risk factors can be found in our reports filed with the SEC. Jim will begin the prepared portion of our call. Jim? James J. Pieczynski Thank you, Dennis, and good afternoon to everyone. 2011 was a solid year of progress for CapitalSource. As Tad will describe in detail shortly, CapitalSource Bank had a particularly strong financial performance with nearly $2.5 billion in new loan production resulting in an annual loan growth of 25% and net interest margin of roughly 5% and pretax income significantly in excess of our 2010 level. The Parent Company's balance sheet contracted as planned, with its loan portfolio declining by $1.3 billion or 58% and total debt reduced by more than $1.2 billion or 61% during the year. Our consolidated credit metrics improved dramatically and our strategic decision to aggressively return excess Parent Company capital to shareholders was extraordinarily successful. Over 70 million of our shares were repurchased between August 1 and December 31 at an average price of $6.22 per share. And during 2011, we reduced a total outstanding share count by 21%. As we look ahead to 2012, we are excited and confident about our ability to further leverage our national specialty lending platform and our highly efficient deposit gathering bank franchise in Southern and Central California. As a result, we expect to produce another year of substantial loan growth at CapitalSource Bank, while simultaneously continuing to liquidate the Parent legacy assets and returning capital to shareholders. We entered the new year with a streamlined executive management team and a condensed organizational structure as we have moved to consolidate corporate support functions and transferred remaining Parent employees into the bank as of January 1. Doing so starts the process of eliminating redundancies and support functions, which will enhance our ability to meet 2012 expense efficiency objectives, which John Bogler will outline in his comments. With that, I would like to turn the call over to Tad who will focus his comments on the bank's financial performance. Tad?
Douglas H. LowreyThank you, Jim. Good afternoon, everyone. The fourth quarter capped a very strong year for CapitalSource Bank. We saw a full-year top line revenue growth as interest income increased 11%, while interest expense declined by 4%. In addition, our pretax income was up 160% year-over-year. Turning to the fourth quarter, net interest income was 3% higher than last quarter, and the net interest margin held steady at 4.95% despite our earlier expectations for a modest decline. Our loan and lease portfolio increased by $231 million or 5% on production-- funded production of $665 million. Including the loans purchased from the Parent during the fourth quarter, our portfolio growth was $343 million or 7.5% above the prior quarter end. Our credit quality was stable, and a loan loss provision of $4 million was down from $14 million in the third quarter. We continue to reduce the level of cash and investments as we deployed excess liquidity to support loan growth, while also growing deposits by 5%. Our new and renewed time deposits were added in an average interest rate of 93 basis points, which resulted in a small decline in our overall weighted average interest rate on our deposits. We previously thought that we would have to pay up a bit to raise deposits. But our experience in the fourth quarter has caused us to lower our projections about the potential costs of raising an additional $500 million to $600 million of deposits during 2012 and its impact on our net interest margins. Read the rest of this transcript for free on seekingalpha.com