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8-K - FORM 8-K - CAPITALSOURCE INC | w76115e8vk.htm |
Exhibit 99.1
News
CapitalSource Inc.
CapitalSource Inc.
4445 Willard Avenue
Twelfth Floor
Chevy Chase, MD 20815
Twelfth Floor
Chevy Chase, MD 20815
FOR IMMEDIATE RELEASE
For information contact: |
||
Investor Relations:
|
Media Relations: | |
Dennis Oakes
|
Michael E. Weiss | |
Senior Vice President Investor Relations
|
Director of Communications | |
(212) 321-7212
|
(301) 841-2918 |
CAPITALSOURCE REPORTS THIRD QUARTER 2009 RESULTS
| Charge-Offs Decline from Second Quarter Levels | ||
| Provision for Loan Losses Increased to Address Expected Commercial Real Estate Losses | ||
| Debt Reduced and Parent Liquidity Increased at Quarter End | ||
| Net Interest Margin Expansion and Strong Capital Levels at CapitalSource Bank | ||
| Quarter End Tangible Common Equity to Tangible Assets at 15.9% and 12.7%, respectively, for Consolidated Company and CapitalSource Bank | ||
| Additional Valuation Allowance of $149 Million Taken on Deferred Tax Assets |
Chevy Chase, Md., November 2, 2009 CapitalSource Inc. (NYSE: CSE) today announced financial
results for the third quarter of 2009. Net loss for the quarter was $274 million, or $0.87 per
diluted share, compared to a net loss of $247 million, or $0.82 per diluted share in the prior
quarter and net income of $14 million, or $0.05 per diluted share in the third quarter of 2008.
Despite declining charge-offs, we increased our general provision for commercial loan losses
this quarter in light of continuing stress in our commercial real estate portfolio. Total commercial loan
loss provisions of $204 million were higher than the second quarter, but the $48 million in loan
loss provisions at CapitalSource Bank were roughly one half of the prior quarters level. Included
in this quarters loan loss provision is an approximate $50 million judgmental reserve we added on commercial real
estate, which is another example of our efforts to put credit issues from our legacy portfolio
behind us. Directionally, our credit book performed as anticipated, with charge-offs and loan loss
provisions concentrated in commercial real
estate, said John K. Delaney, CapitalSource Chairman and CEO. We expect elevated credit charges
to
continue into 2010, but remain comfortable with the cumulative loss assumptions we outlined for
our legacy loan portfolio in August of this year. In fact, for most non commercial real estate
categories, which comprise 80% of the legacy portfolio, we are already at or near the mid-point of
our range for cumulative credit charges, and for commercial real estate we have already charged
off, or reserved for, 23% of the legacy loan balance, concluded Delaney.
Our sale of senior secured notes and common stock offering as well as the successful
extension of our syndicated bank facility to 2012, all of which occurred early in the third
quarter, enhanced liquidity and strengthened our balance sheet. Those actions, combined with a
$300 million pay down of our syndicated bank facility, accomplished one of our primary strategic
goals for 2009 which was substantial reduction of 2009-2010 debt maturities, commented
CapitalSource Chief Financial Officer, Donald F. Cole. Our quarter end liquidity position at the
Parent Company was stronger than at June 30. Sources and uses of cash, including unfunded
commitments, were consistent with our expectations. We took an additional non-cash accounting
charge of $149 million, as we added to the valuation allowance for the deferred tax asset
established last quarter, added Cole.
All key indicators of our capital strength remained at high levels and our net interest
margin increased again this quarter, as we experienced improvements in both asset yield and cost of
deposits, said Tad Lowrey, President and CEO of CapitalSource Bank. In addition, we have seen an
increase in lending market activity in recent months, which is reflected in a strengthening
pipeline and increases in loan commitments closed and funded by the Bank during the quarter. We
also recently completed our first full year regulatory exam and continue to maintain an excellent
working relationship with our banking regulators, concluded Lowrey.
CapitalSource Bank Segment
| Commercial loans and loans held for sale, including accrued interest, increased $123 million from the prior quarter to $3.0 billion. There were approximately $350 million in new loan commitments closed at CapitalSource Bank during the quarter of which $228 million funded. |
| The A Participation Interest, net was $714 million at the end of the quarter, reflecting principal repayments of $180 million, partially offset by discount accretion of $7 million. The Companys position remains significantly over-collateralized by the total underlying collateral pool. At the end of the quarter, the A Participation Interest represented 20% of the total $3.6 billion in underlying loan and property balances, a decrease from 23% at the end of the prior quarter and 38% at acquisition in July 2008. Under the A Participation Interest structure, the Company receives 70% of all principal collections on the underlying loans and properties. Payments on the A Participation Interest are current and management expects the A Participation Interest will be fully repaid in 2010. |
| Cash and cash equivalents, including restricted cash totaled $801 million at the end of the quarter, a decrease from $817 million at the end of the prior quarter. |
| Investment securities, available-for-sale, which consist primarily of investments in Agency callable notes and Agency and Non-Agency MBS, were $701 million at the end of the quarter, a decrease from $816 million at the end of the prior quarter primarily due to the maturities of Agency debt instruments partially offset by purchases of Agency MBS. |
| Investment securities, held-to-maturity increased $31 million during the quarter to $250 million due to CMBS purchases. CapitalSource Bank focuses on the most senior AAA-rated CMBS tranches with substantial credit support, including cash defeasance. |
| Deposits were $4.4 billion at the end of the quarter, a decrease of $157 million, or 3%, from the prior quarter, primarily due to continued efforts to lower cost of funds at CapitalSource Bank. Average rates on new and renewed certificates of deposit were 1.47% for the quarter, compared to 1.78% for the prior quarter. At quarter end, the weighted average interest rate on deposits at CapitalSource Bank was 1.85%, a decrease of 0.40% from the prior quarter and 1.57% from the prior year end. |
| Interest income was $72 million for the quarter, an increase of $5 million from the prior quarter, primarily due to increased yield on the A Participation Interest from higher accretion of discount during the quarter. |
| Net finance margin for the quarter was 4.04% compared to 3.01% in the prior quarter, primarily due to higher asset yields and lower cost of funds. |
| Yield on average interest earning assets was 5.77% for the quarter, an increase of 58 basis points from the prior quarter primarily due to higher yields on the A Participation Interest and the commercial loan portfolio. Yield on average interest earnings assets, excluding the A Participation Interest, increased to 5.86% for the quarter from 5.64% in the prior quarter. In addition, yield on the commercial loan portfolio was 7.79%, an increase of 46 basis points from the prior quarter. |
| Cost of interest-bearing liabilities, which includes deposits and FHLB borrowings, was 2.01% for the quarter compared to 2.58% for the prior quarter. The cost of deposits was 2.02% for the quarter, a decrease of 58 basis points from the prior quarter primarily due to re-pricing higher rate maturing certificates of deposit and continued reductions in deposit rates offered. The cost of FHLB borrowings was 1.84% during the quarter, compared to 1.93% for the prior quarter. |
| Non-interest income, which consists primarily of loan servicing fee income earned by servicing loans for the Parent Company, was $7 million for the quarter, a decrease of $1 million from the prior quarter. Loan servicing fees are expected to continue to decline as the size of the Parent Companys legacy portfolio winds down. |
| Total operating expenses were $25 million in the quarter, a decrease of $1 million from the prior quarter. Operating expense in the prior quarter included a $2.5 million FDIC special assessment paid by CapitalSource Bank to the FDICs Deposit Insurance Fund, which was part of a required payment for all insured institutions. During the current quarter, $5 million of loan sourcing expense was paid to the Parent Company, an increase of $2 million from the prior quarter due to an increase in loans closed. Operating expenses as a percentage of average total assets were 1.79%, a decrease of 4 basis points from the prior quarter. |
| Total Risk-Based Capital Ratio was 16.75% at the end of the quarter compared to 16.77% at the end of the prior quarter. |
| Tier 1 Leverage Ratio at the end of the quarter was 12.52% compared to 12.46% at the end of the prior quarter. |
| Tangible Common Equity to Tangible Assets at the end of the quarter was 12.71% compared to 12.49% at the end of the prior quarter. |
Other Commercial Finance Segment
| Total commercial loans and loans held for sale, including accrued interest, were $5.7 billion at the end of the quarter, a decrease from $6.2 billion at the end of the prior quarter, primarily due to scheduled loan repayments and charge-offs. |
| Cash and cash equivalents were $302 million at the end of the quarter, an increase from $199 million at the end of the prior quarter, primarily due to proceeds from the July equity offering, limited loan sales, principal balance reductions and loan payoffs. |
| Restricted cash was $137 million at the end of the quarter, a decrease from $168 million at the end of the prior quarter. |
| Interest income was $121 million for the quarter, a decrease of $12 million from the prior quarter, primarily due to the decrease in commercial loans and an increase in non-accrual loans. Excluding the legacy residential mortgage portfolio, interest income was $102 million for the quarter compared to $113 million in the prior quarter. |
| Yield on average interest-earning assets was 7.70% for the quarter, a decrease of 14 basis points from the prior quarter, primarily due to an increase in the loans on non-accrual. Excluding the legacy residential mortgage portfolio, yield on average interest-earnings assets would have been 8.68% for the quarter compared to 8.78% in the prior quarter. Loan yield was 8.97% for the quarter, a decrease of 8 basis points from the prior quarter. |
| Prepayment-related fee income on loans was $0.8 million for the quarter, a decrease from $1 million in the prior quarter. Prepayment-related fee income contributed 6 basis points to yield. |
| Cost of funds was 4.57% for the quarter, an increase of 34 basis points from the prior quarter primarily due to higher pricing on our syndicated bank credit facility and the new senior secured notes, and the acceleration of deferred finance fees as credit facility balances have amortized. Borrowing spread to average one-month LIBOR increased 44 basis points to 4.30%. |
| Total operating expenses were $49 million in the quarter, a decrease from $51 million in the prior quarter primarily due to a decrease in compensation and benefits, partially offset by an increase in professional fees. Operating expenses as a percentage of average total assets were 2.29% for the quarter, a 4 basis point increase from the prior quarter. |
Healthcare Net Lease Segment
| Direct real estate investments, net were $946 million at the end of the quarter, a decrease of $13 million from the prior quarter, primarily due to depreciation. |
| Operating lease income was $27 million, consistent with the prior quarter. |
Consolidated Metrics
Assets
| Total commercial lending assets (including loans, loans held for sale, the A Participation Interest and related accrued interest) were $9.4 billion at the end of the quarter compared to $9.9 billion at the end of the prior quarter. The decrease was primarily due to the net reduction in the A Participation |
Interest, loan repayments, charge-offs, loan sales and foreclosures, partially offset by loans closed at CapitalSource Bank. |
Credit
| Loans on non-accrual were $994 million at the end of the quarter, an increase from $884 million at the end of the prior quarter. As a percentage of commercial lending assets, non-accruals were 10.53%. Of the non-accruals at the Parent Company, $530 million were current. Non-accruals in CapitalSource Bank were $184 million at the end of the quarter, compared to $85 million at the end of the prior quarter. As a percentage of core loans in CapitalSource Bank, which excludes the A Participation Interest, non-accruals were 6.12%. Of the non-accruals at the Bank, $151 million were current. |
| Loans 30-89 days delinquent were $132 million at the end of the quarter, an increase from $118 million at the end of the prior quarter. As a percentage of commercial lending assets, loans 30-89 days delinquent were 1.39%. As a percentage of core loans in CapitalSource Bank, which excludes the A Participation Interest, loans 30-89 days delinquent were 1.25%. CapitalSource Bank had three loans totaling $38 million that were 30-89 days delinquent at the end of the quarter compared to no loans that were 30-89 days delinquent at the end of the prior quarter. |
| Loans 90 or more days delinquent were $396 million at the end of the quarter, a decrease from $412 million at the end of the prior quarter. As a percentage of commercial lending assets, loans 90 or more days delinquent were 4.19%. CapitalSource Bank had three loans totaling $13 million that were 90 or more days delinquent at the end of the quarter, equal to 0.44% of core loans which exclude the A Participation Interest. |
| Net commercial charge-offs were $135 million, a decrease of $32 million from the prior quarter. As a percentage of average commercial lending assets, net commercial charge-offs for the trailing 12 months ended September 30, 2009, were 5.74%. CapitalSource Bank had $13 million in charge-offs in the quarter compared to $70 million in the prior quarter. As a percentage of average core loans in CapitalSource Bank, which excludes the A Participation Interest, net charge-offs for the trailing 12 months ended September 30, 2009 were 3.29%. |
| Provision for commercial loan losses was $204 million for the quarter, an increase of $35 million from the prior quarter. The provision for commercial loan losses at CapitalSource Bank was $48 million for the quarter, compared to $90 million for the prior quarter. |
| Allowance for loan losses was $517 million at the end of the quarter, a net increase of $69 million from the prior quarter. As a percentage of commercial lending assets, the allowance for loan losses was 5.48%. CapitalSource Banks allowance for loan losses increased from $92 million at the end of the prior quarter to $127 million at the end of the current quarter, or 4.21% of core loans, which excludes the A Participation Interest. |
| Provision for loan losses on the mortgage-related receivables in the Other Commercial Finance segment was $17 million compared $35 million in the prior quarter. |
| Net charge-offs on the mortgage-related receivables in the Other Commercial Finance segment were $17 million compared to $19 million in the prior quarter. |
Other Income/(Expense)
| Loss on investments, net was $8 million for the quarter primarily due to write-downs on certain cost-based investments and realized losses on sales. Loss on investments was $5 million for the prior quarter. |
| Loss on derivatives, net was $10 million for the quarter primarily due to lower interest rates having an adverse impact on our pay fixed swaps, partially offset by realized gains. Loss on derivatives, net was $1 million for the prior quarter. |
| Gain on extinguishment of debt was $11 million for the quarter primarily due to debt repurchases. Gain on extinguishment of debt for the prior quarter was $5 million. |
| Other income/loss, net was a $10 million loss for the quarter primarily due to losses on REO and foreign currency translation losses. Other income/loss, net was a $11 million loss for the prior quarter. |
Income Taxes
| The valuation allowance related to our deferred tax assets increased during the quarter by $149 million or $0.47 per share, to a total of $286 million. The increase was caused primarily by the establishment of an allowance for the deferred tax assets of a subsidiary that continued to incur operating losses during the quarter. The net deferred tax asset at quarter end, after subtracting the valuation allowance, was $44 million. The valuation allowance is a non-cash accounting charge that will exist until there is sufficient positive evidence to support its reduction or reversal. Such evidence would include a period of positive pre-tax income for those entities for which an allowance has been established. |
Book Value
| Book Value per share was $7.51 at the end of the quarter, a decrease from $8.60 at the end of the prior quarter, primarily due to the current quarter loss and the shares issued in the July public equity offering. Total shareholders equity was $2.4 billion at the end of the quarter, a decrease of $182 million from the prior quarter primarily due to the current quarter loss and the dividend payment of $0.01 per share made to shareholders during the quarter, partially offset by the net proceeds of $77 million received from the July 2009 public equity offering. |
| Tangible Book Value per share at the end of the quarter was $6.93 compared to $7.98 at the end of prior quarter, primarily due to the current quarter loss and the shares issued in the July public equity offering. Tangible equity was $2.2 billion at the end of the quarter, a decrease of $181 million from the prior quarter. |
Share Count
| Average diluted shares outstanding were 315.6 million shares for the quarter, compared to 299.5 million shares for the prior quarter, primarily due to the impact of the issuance of shares in the July public equity offering. Total outstanding shares at September 30, 2009 were 323.1 million. |
Dividends
| A quarterly cash dividend of $0.01 per common share was paid on September 30, 2009 to common shareholders of record on September 16, 2009. |
A conference call to discuss the results will be hosted on Monday November 2, 2009 at 8:30 a.m.
EST. Analysts and investors interested in participating are invited to call (866) 843-0890 from
within the United States or (412) 317-9250 from outside the United States, with passcode 9995126. A
webcast of the call will be available on the Investor Relations section of the CapitalSource web
site at http://www.capitalsource.com.
A telephonic replay will also be available from approximately 12 noon EST November 2, 2009 through
February 3, 2010. Please call (877) 344-7529 from the United States or (412) 317-0088 from outside
the United States with passcode 434898. An audio replay will also be available on the Investor
Relations section of the CapitalSource website.
A transcript of the earnings conference call will also be posted to the Investor Relations section
of the CapitalSource website on November 2, 2009.
A slide presentation that may be referred to on the conference call will be posted to the Investor
Relations homepage of the CapitalSource website prior to the call at the following address:
http://www.capitalsource.com/investor_relations.
About CapitalSource
CapitalSource Inc. (NYSE: CSE) is a commercial lender that provides financial products to middle
market businesses and offers depository products and services in southern and central California
through its wholly owned subsidiary CapitalSource Bank. As of September 30, 2009, CapitalSource had
total commercial assets of $10.4 billion and $4.4 billion in deposits. The Company is headquartered
in Chevy Chase, MD. Visit www.capitalsource.com for more information.
Forward Looking Statements
This release contains forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995, including certain plans, expectations, goals, and projections and
including statements about growing our business and our assets, loan servicing fees and our legacy
portfolio, managing our credit book, the impact of the U.S. economy on our business, our
expectations regarding future credit performance, charge-offs and provisions for loan losses, our
capital levels and our liquidity and capital positions, the performance, security and payment of
the A Participation Interest, and our valuation allowance against a portion of our deferred tax
assets, all of which are subject to numerous assumptions, risks, and uncertainties. All statements
contained in this release that are not clearly historical in nature are forward-looking, and the
words anticipate, assume, intend, believe, expect, estimate, plan, goal, will,
outlook, continue, look forward, should, and similar expressions are generally intended to
identify forward-looking statements. All forward-looking statements (including statements
regarding future financial and operating results and future transactions and their results) involve
risks, uncertainties and contingencies, many of which are beyond our control which may cause actual
results, performance, or achievements to differ materially from anticipated results, performance or
achievements. Actual results could differ materially from those contained or implied by such
statements for a variety of factors, including without limitation: changes in economic or market
conditions or investment or lending opportunities; continued or worsening recession in the overall
economy or disruptions in credit and other markets; movements in interest rates and lending
spreads; continued or worsening credit losses, charge-offs, reserves and delinquencies; our ability
to successfully and cost effectively operate our business,
including CapitalSource Bank; our
ability to successfully grow deposits and commercial loan assets or deploy capital in favorable
lending transactions; competitive and other market pressures on product pricing and services;
success and timing of other business strategies; the nature, extent, and timing of governmental
actions and reforms; changes in tax laws or regulations affecting our business; and other factors
described in CapitalSources 2008 Annual Report on Form 10-K and documents subsequently filed by
CapitalSource with the Securities and Exchange Commission. All forward-looking statements included
in this news release are based on information available at the time of the release. We are under no
obligation to (and expressly disclaim any such obligation to) update or alter our forward-looking
statements, whether as a result of new information, future events or otherwise, except as required
by applicable law.
CapitalSource Inc.
Consolidated Balance Sheets
($ in thousands)
Consolidated Balance Sheets
($ in thousands)
September 30, | December 31, | |||||||
2009 | 2008 | |||||||
(Unaudited) | ||||||||
ASSETS |
||||||||
Cash and cash equivalents |
$ | 1,037,818 | $ | 1,338,563 | ||||
Restricted cash |
227,185 | 419,383 | ||||||
Investment securities: |
||||||||
Available-for-sale, at fair value |
710,312 | 679,551 | ||||||
Held-to-maturity, at amortized cost |
250,222 | 14,389 | ||||||
Total investment securities |
960,534 | 693,940 | ||||||
Mortgage-backed securities pledged, trading |
| 1,489,291 | ||||||
Mortgage-related receivables, net |
1,529,795 | 1,801,535 | ||||||
Commercial real estate A participation interest,
net |
714,238 | 1,396,611 | ||||||
Loans: |
||||||||
Loans held for sale |
32,743 | 8,543 | ||||||
Loans held for investment |
8,587,607 | 9,396,751 | ||||||
Less deferred loan fees and
discounts |
(150,300 | ) | (174,317 | ) | ||||
Less allowance for loan
losses |
(517,405 | ) | (423,844 | ) | ||||
Loans held for investment, net |
7,919,902 | 8,798,590 | ||||||
Total loans |
7,952,645 | 8,807,133 | ||||||
Interest receivable |
113,541 | 117,516 | ||||||
Direct real estate investments, net |
946,459 | 989,716 | ||||||
Other investments |
96,229 | 127,746 | ||||||
Goodwill |
173,135 | 173,135 | ||||||
Other assets |
488,262 | 1,065,063 | ||||||
Total assets |
$ | 14,239,841 | $ | 18,419,632 | ||||
LIABILITIES AND SHAREHOLDERS EQUITY |
||||||||
Liabilities: |
||||||||
Deposits |
$ | 4,390,486 | $ | 5,043,695 | ||||
Repurchase agreements |
| 1,595,750 | ||||||
Credit facilities |
826,611 | 1,445,062 | ||||||
Term debt |
4,733,273 | 5,338,456 | ||||||
Other borrowings |
1,547,037 | 1,573,813 | ||||||
Other liabilities |
315,232 | 592,136 | ||||||
Total liabilities |
11,812,639 | 15,588,912 | ||||||
Shareholders equity: |
||||||||
Preferred stock (50,000,000 shares authorized; no shares outstanding) |
| | ||||||
Common stock ($0.01 par value,
1,200,000,000 shares
authorized; 323,100,000
and 282,804,211 shares
issued
and shares outstanding,
respectively) |
3,231 | 2,828 | ||||||
Additional paid-in capital |
3,899,604 | 3,686,765 | ||||||
Accumulated deficit |
(1,501,669 | ) | (868,425 | ) | ||||
Accumulated other comprehensive income,
net |
25,910 | 9,095 | ||||||
Total CapitalSource Inc. shareholders
equity |
2,427,076 | 2,830,263 | ||||||
Noncontrolling interests |
126 | 457 | ||||||
Total shareholders equity |
2,427,202 | 2,830,720 | ||||||
Total liabilities and shareholders
equity |
$ | 14,239,841 | $ | 18,419,632 | ||||
CapitalSource Inc.
Consolidated Statements of Income
(Unaudited)
($ in thousands, except per share data)
Consolidated Statements of Income
(Unaudited)
($ in thousands, except per share data)
Three Months Ended | Nine Months Ended | |||||||||||||||||||
September 30, | June 30, | September 30, | September 30, | September 30, | ||||||||||||||||
2009 | 2009 | 2008 | 2009 | 2008 | ||||||||||||||||
Net investment income: |
||||||||||||||||||||
Interest income: |
||||||||||||||||||||
Loans |
$ | 173,980 | $ | 183,093 | $ | 239,294 | $ | 556,465 | $ | 707,913 | ||||||||||
Investment securities |
13,421 | 13,469 | 24,739 | 47,443 | 111,496 | |||||||||||||||
Other |
1,126 | 913 | 9,979 | 3,781 | 17,150 | |||||||||||||||
Total interest income |
188,527 | 197,475 | 274,012 | 607,689 | 836,559 | |||||||||||||||
Fee income |
25,281 | 24,906 | 29,974 | 81,583 | 104,882 | |||||||||||||||
Total interest and fee income |
213,808 | 222,381 | 303,986 | 689,272 | 941,441 | |||||||||||||||
Operating lease income |
27,247 | 27,406 | 28,140 | 82,533 | 80,040 | |||||||||||||||
Total investment income |
241,055 | 249,787 | 332,126 | 771,805 | 1,021,481 | |||||||||||||||
Interest expense: |
||||||||||||||||||||
Deposits |
22,674 | 29,959 | 32,178 | 91,020 | 32,178 | |||||||||||||||
Borrowings |
82,672 | 80,906 | 142,672 | 256,226 | 491,259 | |||||||||||||||
Total interest expense |
105,346 | 110,865 | 174,850 | 347,246 | 523,437 | |||||||||||||||
Net investment income |
135,709 | 138,922 | 157,276 | 424,559 | 498,044 | |||||||||||||||
Provision for loan losses |
221,385 | 203,847 | 110,261 | 580,499 | 147,594 | |||||||||||||||
Net investment (loss) income after provision for loan losses |
(85,676 | ) | (64,925 | ) | 47,015 | (155,940 | ) | 350,450 | ||||||||||||
Operating expenses: |
||||||||||||||||||||
Compensation and benefits |
29,339 | 34,808 | 29,473 | 99,184 | 99,070 | |||||||||||||||
Depreciation of direct real estate investments |
8,713 | 8,838 | 8,898 | 26,515 | 26,804 | |||||||||||||||
Professional fees |
15,263 | 11,860 | 7,839 | 44,543 | 29,762 | |||||||||||||||
Other administrative expenses |
20,026 | 22,254 | 15,309 | 59,138 | 44,034 | |||||||||||||||
Total operating expenses |
73,341 | 77,760 | 61,519 | 229,380 | 199,670 | |||||||||||||||
Other (expense) income: |
||||||||||||||||||||
Loss on investments, net |
(8,472 | ) | (4,967 | ) | (30,010 | ) | (29,566 | ) | (34,003 | ) | ||||||||||
(Loss) gain on derivatives |
(10,298 | ) | (1,333 | ) | 2,659 | (12,317 | ) | (20,354 | ) | |||||||||||
(Loss) gain on residential mortgage investment portfolio |
(3 | ) | | (26,956 | ) | 15,308 | (73,273 | ) | ||||||||||||
Gain (loss) on extinguishment of debt |
11,472 | 4,565 | 70,057 | (41,091 | ) | 82,782 | ||||||||||||||
Other (expense) income, net |
(9,725 | ) | (10,970 | ) | 12,413 | (36,192 | ) | 16,898 | ||||||||||||
Total other (expense) income |
(17,026 | ) | (12,705 | ) | 28,163 | (103,858 | ) | (27,950 | ) | |||||||||||
Net (loss) income before income taxes |
(176,043 | ) | (155,390 | ) | 13,659 | (489,178 | ) | 122,830 | ||||||||||||
Income tax expense |
98,193 | 91,179 | 58 | 135,947 | 40,377 | |||||||||||||||
Net (loss) income |
(274,236 | ) | (246,569 | ) | 13,601 | (625,125 | ) | 82,453 | ||||||||||||
Net income (loss) attributable to noncontrolling
interests |
10 | (22 | ) | (100 | ) | (28 | ) | 1,480 | ||||||||||||
Net
(loss) income attributable to CapitalSource Inc. |
$ | (274,246 | ) | $ | (246,547 | ) | $ | 13,701 | $ | (625,097 | ) | $ | 80,973 | |||||||
Net (loss) income per share attributable to CapitalSource Inc.: |
||||||||||||||||||||
Basic |
$ | (0.87 | ) | $ | (0.82 | ) | $ | 0.05 | $ | (2.07 | ) | $ | 0.33 | |||||||
Diluted |
$ | (0.87 | ) | $ | (0.82 | ) | $ | 0.05 | $ | (2.07 | ) | $ | 0.33 | |||||||
Average shares outstanding: |
||||||||||||||||||||
Basic |
315,604,434 | 299,452,870 | 272,005,048 | 301,823,130 | 242,495,601 | |||||||||||||||
Diluted |
315,604,434 | 299,452,870 | 272,585,479 | 301,823,130 | 243,614,848 | |||||||||||||||
Dividends declared per share |
$ | 0.01 | $ | 0.01 | $ | 0.05 | $ | 0.03 | $ | 1.25 |
CapitalSource Inc.
Segment Data
(Unaudited)
($ in thousands)
Segment Data
(Unaudited)
($ in thousands)
Three Months Ended September 30, 2009 | Three Months Ended June 30, 2009 | |||||||||||||||||||||||||||||||||||||||
OTHER | OTHER | |||||||||||||||||||||||||||||||||||||||
CAPITALSOURCE | COMMERCIAL | HEALTHCARE | INTERCOMPANY | CAPITALSOURCE | COMMERCIAL | HEALTHCARE | INTERCOMPANY | |||||||||||||||||||||||||||||||||
BANK | FINANCE | NET LEASE | ELIMINATIONS | CONSOLIDATED | BANK | FINANCE | NET LEASE | ELIMINATIONS | CONSOLIDATED | |||||||||||||||||||||||||||||||
Net investment income: |
||||||||||||||||||||||||||||||||||||||||
Interest income |
$ | 71,673 | $ | 120,798 | $ | 107 | $ | (4,051 | ) | $ | 188,527 | $ | 66,744 | $ | 133,059 | $ | 97 | $ | (2,425 | ) | $ | 197,475 | ||||||||||||||||||
Fee income |
7,112 | 20,171 | | (2,002 | ) | 25,281 | 6,052 | 20,629 | | (1,775 | ) | 24,906 | ||||||||||||||||||||||||||||
Total interest and fee income |
78,785 | 140,969 | 107 | (6,053 | ) | 213,808 | 72,796 | 153,688 | 97 | (4,200 | ) | 222,381 | ||||||||||||||||||||||||||||
Operating lease income |
| | 27,247 | | 27,247 | | | 27,406 | | 27,406 | ||||||||||||||||||||||||||||||
Total investment income |
78,785 | 140,969 | 27,354 | (6,053 | ) | 241,055 | 72,796 | 153,688 | 27,503 | (4,200 | ) | 249,787 | ||||||||||||||||||||||||||||
Interest expense |
23,602 | 78,729 | 7,066 | (4,051 | ) | 105,346 | 30,551 | 77,215 | 5,524 | (2,425 | ) | 110,865 | ||||||||||||||||||||||||||||
Net investment income |
55,183 | 62,240 | 20,288 | (2,002 | ) | 135,709 | 42,245 | 76,473 | 21,979 | (1,775 | ) | 138,922 | ||||||||||||||||||||||||||||
Provision for loan losses |
48,451 | 172,934 | | | 221,385 | 90,470 | 113,377 | | | 203,847 | ||||||||||||||||||||||||||||||
Net investment income (loss) after provision for loan losses |
6,732 | (110,694 | ) | 20,288 | (2,002 | ) | (85,676 | ) | (48,225 | ) | (36,904 | ) | 21,979 | (1,775 | ) | (64,925 | ) | |||||||||||||||||||||||
Compensation and benefits |
11,410 | 17,345 | 584 | | 29,339 | 11,005 | 23,179 | 624 | | 34,808 | ||||||||||||||||||||||||||||||
Depreciation of direct real estate investments |
| | 8,713 | | 8,713 | | | 8,838 | | 8,838 | ||||||||||||||||||||||||||||||
Professional fees |
575 | 14,411 | 277 | | 15,263 | 615 | 11,046 | 199 | | 11,860 | ||||||||||||||||||||||||||||||
Other operating expenses |
13,380 | 16,880 | 1,719 | (11,953 | ) | 20,026 | 14,582 | 16,347 | 2,016 | (10,691 | ) | 22,254 | ||||||||||||||||||||||||||||
Total operating expenses |
25,365 | 48,636 | 11,293 | (11,953 | ) | 73,341 | 26,202 | 50,573 | 11,676 | (10,691 | ) | 77,760 | ||||||||||||||||||||||||||||
Total other income (expense) |
7,409 | (7,987 | ) | (4,833 | ) | (11,615 | ) | (17,026 | ) | 8,364 | (11,277 | ) | 1,005 | (10,797 | ) | (12,705 | ) | |||||||||||||||||||||||
Net (loss) income before income taxes |
(11,224 | ) | (167,317 | ) | 4,162 | (1,664 | ) | (176,043 | ) | (66,063 | ) | (98,754 | ) | 11,308 | (1,881 | ) | (155,390 | ) | ||||||||||||||||||||||
Income tax expense (benefit) |
3,925 | 93,807 | 461 | | 98,193 | 4,781 | 89,702 | (3,304 | ) | | 91,179 | |||||||||||||||||||||||||||||
Net (loss) income |
(15,149 | ) | (261,124 | ) | 3,701 | (1,664 | ) | (274,236 | ) | (70,844 | ) | (188,456 | ) | 14,612 | (1,881 | ) | (246,569 | ) | ||||||||||||||||||||||
Net income (loss) attributable to noncontrolling interests |
| 10 | | | 10 | | (22 | ) | | | (22 | ) | ||||||||||||||||||||||||||||
Net
(loss) income attributable to CapitalSource Inc. |
$ | (15,149 | ) | $ | (261,134 | ) | $ | 3,701 | $ | (1,664 | ) | $ | (274,246 | ) | $ | (70,844 | ) | $ | (188,434 | ) | $ | 14,612 | $ | (1,881 | ) | $ | (246,547 | ) | ||||||||||||
Nine Months Ended September 30, 2009 | Nine Months Ended September 30, 2008 | |||||||||||||||||||||||||||||||||||||||
OTHER | OTHER | |||||||||||||||||||||||||||||||||||||||
CAPITALSOURCE | COMMERCIAL | HEALTHCARE | INTERCOMPANY | CAPITALSOURCE | COMMERCIAL | HEALTHCARE | INTERCOMPANY | |||||||||||||||||||||||||||||||||
BANK | FINANCE | NET LEASE | ELIMINATIONS | CONSOLIDATED | BANK | FINANCE | NET LEASE | ELIMINATIONS | CONSOLIDATED | |||||||||||||||||||||||||||||||
Net investment income: |
||||||||||||||||||||||||||||||||||||||||
Interest income |
$ | 211,284 | $ | 404,990 | $ | 289 | $ | (8,874 | ) | $ | 607,689 | $ | 64,887 | $ | 780,819 | $ | 944 | $ | (10,091 | ) | $ | 836,559 | ||||||||||||||||||
Fee income |
17,721 | 68,127 | | (4,265 | ) | 81,583 | 1,665 | 102,589 | 239 | 389 | 104,882 | |||||||||||||||||||||||||||||
Total interest and fee income |
229,005 | 473,117 | 289 | (13,139 | ) | 689,272 | 66,552 | 883,408 | 1,183 | (9,702 | ) | 941,441 | ||||||||||||||||||||||||||||
Operating lease income |
| | 82,533 | | 82,533 | | | 80,040 | | 80,040 | ||||||||||||||||||||||||||||||
Total investment income |
229,005 | 473,117 | 82,822 | (13,139 | ) | 771,805 | 66,552 | 883,408 | 81,223 | (9,702 | ) | 1,021,481 | ||||||||||||||||||||||||||||
Interest expense |
92,566 | 245,207 | 18,347 | (8,874 | ) | 347,246 | 32,178 | 468,871 | 32,479 | (10,091 | ) | 523,437 | ||||||||||||||||||||||||||||
Net investment income |
136,439 | 227,910 | 64,475 | (4,265 | ) | 424,559 | 34,374 | 414,537 | 48,744 | 389 | 498,044 | |||||||||||||||||||||||||||||
Provision for loan losses |
163,912 | 416,587 | | | 580,499 | 3,535 | 144,059 | | | 147,594 | ||||||||||||||||||||||||||||||
Net investment (loss) income after provision for loan losses |
(27,473 | ) | (188,677 | ) | 64,475 | (4,265 | ) | (155,940 | ) | 30,839 | 270,478 | 48,744 | 389 | 350,450 | ||||||||||||||||||||||||||
Compensation and benefits |
33,369 | 64,331 | 1,484 | | 99,184 | 8,496 | 88,947 | 1,627 | | 99,070 | ||||||||||||||||||||||||||||||
Depreciation of direct real estate investments |
| | 26,515 | | 26,515 | | | 26,804 | | 26,804 | ||||||||||||||||||||||||||||||
Professional fees |
1,785 | 42,071 | 687 | | 44,543 | 569 | 28,677 | 516 | | 29,762 | ||||||||||||||||||||||||||||||
Other operating expenses |
40,153 | 48,951 | 5,870 | (35,836 | ) | 59,138 | 10,041 | 39,225 | 5,161 | (10,393 | ) | 44,034 | ||||||||||||||||||||||||||||
Total operating expenses |
75,307 | 155,353 | 34,556 | (35,836 | ) | 229,380 | 19,106 | 156,849 | 34,108 | (10,393 | ) | 199,670 | ||||||||||||||||||||||||||||
Total other income (expense) |
25,334 | (91,029 | ) | (2,463 | ) | (35,700 | ) | (103,858 | ) | 4,573 | (11,868 | ) | (1,309 | ) | (19,346 | ) | (27,950 | ) | ||||||||||||||||||||||
Net (loss) income before income taxes |
(77,446 | ) | (435,059 | ) | 27,456 | (4,129 | ) | (489,178 | ) | 16,306 | 101,761 | 13,327 | (8,564 | ) | 122,830 | |||||||||||||||||||||||||
Income tax expense |
8,641 | 125,486 | 1,820 | | 135,947 | 6,576 | 33,801 | | | 40,377 | ||||||||||||||||||||||||||||||
Net (loss) income |
(86,087 | ) | (560,545 | ) | 25,636 | (4,129 | ) | (625,125 | ) | 9,730 | 67,960 | 13,327 | (8,564 | ) | 82,453 | |||||||||||||||||||||||||
Net (loss) income attributable to noncontrolling interests |
| (28 | ) | | | (28 | ) | | (640 | ) | 2,120 | | 1,480 | |||||||||||||||||||||||||||
Net
(loss) income attributable to CapitalSource Inc. |
$ | (86,087 | ) | $ | (560,517 | ) | $ | 25,636 | $ | (4,129 | ) | $ | (625,097 | ) | $ | 9,730 | $ | 68,600 | $ | 11,207 | $ | (8,564 | ) | $ | 80,973 | |||||||||||||||
CapitalSource Inc.
Selected Financial Data
(Unaudited)
Selected Financial Data
(Unaudited)
Three Months Ended | Nine Months Ended | |||||||||||||||||||
September 30, | June 30, | September 30, | September 30, | September 30, | ||||||||||||||||
2009 | 2009 | 2008 | 2009 | 2008 | ||||||||||||||||
CapitalSource Bank Segment: |
||||||||||||||||||||
Performance ratios: |
||||||||||||||||||||
Return on average assets |
(1.07 | %) | (4.94 | %) | 0.85 | % | (2.00 | %) | 0.85 | % | ||||||||||
Return on average equity |
(6.89 | %) | (30.84 | %) | 5.69 | % | (12.68 | %) | 5.69 | % | ||||||||||
Yield on average interest earning assets |
5.77 | % | 5.19 | % | 5.97 | % | 5.43 | % | 5.97 | % | ||||||||||
Cost of funds |
2.01 | % | 2.58 | % | 3.38 | % | 2.59 | % | 3.38 | % | ||||||||||
Net finance margin |
4.04 | % | 3.01 | % | 3.08 | % | 3.24 | % | 3.08 | % | ||||||||||
Operating expenses as a percentage of average
total assets |
1.79 | % | 1.83 | % | 1.67 | % | 1.75 | % | 1.67 | % | ||||||||||
Core lending spread |
7.50 | % | 6.96 | % | 4.99 | % | 7.06 | % | 4.77 | % | ||||||||||
Loan yield |
7.79 | % | 7.33 | % | 7.61 | % | 7.44 | % | 7.61 | % | ||||||||||
Capital ratios: |
||||||||||||||||||||
Tier 1 leverage |
12.52 | % | 12.46 | % | 12.65 | % | 12.52 | % | 12.65 | % | ||||||||||
Total risk-based capital |
16.75 | % | 16.77 | % | 16.12 | % | 16.75 | % | 16.12 | % | ||||||||||
Tangible common equity to tangible assets |
12.71 | % | 12.49 | % | 12.77 | % | 12.71 | % | 12.77 | % | ||||||||||
Average balances ($ in thousands): |
||||||||||||||||||||
Average loans |
$ | 2,910,820 | $ | 2,947,753 | $ | 1,655,256 | $ | 2,883,770 | $ | 555,779 | ||||||||||
Average assets |
5,614,879 | 5,748,682 | 4,548,271 | 5,767,924 | 1,527,157 | |||||||||||||||
Average interest earning assets |
5,414,942 | 5,626,428 | 4,423,854 | 5,636,690 | 1,485,382 | |||||||||||||||
Average deposits |
4,459,800 | 4,629,352 | 3,774,541 | 4,669,281 | 1,267,364 | |||||||||||||||
Average borrowings |
200,011 | 123,033 | N/A | 110,062 | N/A | |||||||||||||||
Average equity |
872,325 | 921,405 | 678,594 | 907,881 | 227,849 | |||||||||||||||
Other Commercial Finance Segment: |
||||||||||||||||||||
Performance ratios: |
||||||||||||||||||||
Return on average assets |
(12.28 | %) | (8.37 | %) | 0.20 | % | (8.15 | %) | 0.61 | % | ||||||||||
Return on average equity |
(78.47 | %) | (49.69 | %) | 1.23 | % | (50.41 | %) | 3.95 | % | ||||||||||
Yield on average interest earning assets |
7.70 | % | 7.84 | % | 8.15 | % | 7.97 | % | 8.41 | % | ||||||||||
Cost of funds |
4.57 | % | 4.23 | % | 5.26 | % | 4.38 | % | 5.09 | % | ||||||||||
Net finance margin |
3.40 | % | 3.90 | % | 3.55 | % | 3.84 | % | 3.95 | % | ||||||||||
Operating expenses as a percentage of average
total assets |
2.29 | % | 2.25 | % | 1.31 | % | 2.26 | % | 1.40 | % | ||||||||||
Core lending spread |
8.64 | % | 8.59 | % | 7.16 | % | 8.53 | % | 7.18 | % | ||||||||||
Loan yield |
8.97 | % | 9.05 | % | 9.97 | % | 9.11 | % | 10.29 | % | ||||||||||
Leverage ratios: |
||||||||||||||||||||
Total debt to equity (as of period end) |
5.56 | x | 5.65 | x | 6.37 | x | 5.56 | x | 6.37 | x | ||||||||||
Equity to total assets (as of period end) |
14.81 | % | 14.59 | % | 13.28 | % | 14.81 | % | 13.28 | % | ||||||||||
Average balances ($ in thousands): |
||||||||||||||||||||
Average loans |
$ | 5,980,896 | $ | 6,405,635 | $ | 7,731,635 | $ | 6,370,674 | $ | 9,093,295 | ||||||||||
Average assets |
8,437,236 | 9,034,419 | 12,517,048 | 9,191,510 | 14,886,828 | |||||||||||||||
Average interest earning assets |
7,264,436 | 7,856,362 | 11,705,776 | 7,933,583 | 13,996,134 | |||||||||||||||
Average borrowings |
6,841,000 | 7,329,372 | 10,226,049 | 7,488,183 | 12,275,617 | |||||||||||||||
Average equity |
1,320,307 | 1,521,013 | 2,065,944 | 1,486,570 | 2,314,568 |
CapitalSource Inc.
Selected Financial Data
(Unaudited)
Selected Financial Data
(Unaudited)
Three Months Ended | Nine Months Ended | |||||||||||||||||||
September 30, | June 30, | September 30, | September 30, | September 30, | ||||||||||||||||
2009 | 2009 | 2008 | 2009 | 2008 | ||||||||||||||||
Healthcare Net Lease Segment: |
||||||||||||||||||||
Performance ratios: |
||||||||||||||||||||
Return on average assets |
1.43 | % | 5.63 | % | 2.28 | % | 3.29 | % | 1.38 | % | ||||||||||
Return on average equity |
3.01 | % | 11.83 | % | 6.50 | % | 6.83 | % | 3.88 | % | ||||||||||
Yield on average income earning assets |
10.27 | % | 10.37 | % | 10.44 | % | 10.40 | % | 9.98 | % | ||||||||||
Cost of funds |
5.71 | % | 4.72 | % | 7.12 | % | 5.14 | % | 7.12 | % | ||||||||||
Net finance margin |
7.51 | % | 8.18 | % | 6.44 | % | 8.00 | % | 5.93 | % | ||||||||||
Operating expenses as a percentage of average
total assets |
4.36 | % | 4.50 | % | 4.28 | % | 4.44 | % | 4.20 | % | ||||||||||
Operating expenses (excluding direct real
estate depreciation) as a percentage of average
total assets |
1.00 | % | 1.09 | % | 0.98 | % | 1.03 | % | 0.90 | % | ||||||||||
Leverage ratios: |
||||||||||||||||||||
Total debt to equity (as of period end) |
1.30 | x | 0.93 | x | 1.58 | x | 1.30 | x | 1.58 | x | ||||||||||
Equity to total assets (as of period end) |
40.62 | % | 48.37 | % | 35.55 | % | 40.62 | % | 35.55 | % | ||||||||||
Average balances ($ in thousands): |
||||||||||||||||||||
Average assets |
$ | 1,027,314 | $ | 1,040,676 | $ | 1,070,651 | $ | 1,040,360 | $ | 1,082,274 | ||||||||||
Average interest earning assets |
18,739 | 17,394 | 17,931 | 17,116 | 26,594 | |||||||||||||||
Average income earning assets |
1,071,438 | 1,077,872 | 1,086,955 | 1,077,765 | 1,095,125 | |||||||||||||||
Average borrowings |
491,039 | 469,284 | 602,809 | 477,096 | 607,841 | |||||||||||||||
Average equity |
488,410 | 495,576 | 375,014 | 501,488 | 384,971 | |||||||||||||||
Consolidated CapitalSource Inc.: |
||||||||||||||||||||
Performance ratios: |
||||||||||||||||||||
Return on average assets |
(7.34 | %) | (6.35 | %) | 0.30 | % | (5.31 | %) | 0.63 | % | ||||||||||
Return on average equity |
(40.79 | %) | (33.79 | %) | 1.74 | % | (28.98 | %) | 3.68 | % | ||||||||||
Yield on average interest earning assets |
6.68 | % | 6.61 | % | 7.47 | % | 6.78 | % | 8.09 | % | ||||||||||
Cost of funds |
3.53 | % | 3.58 | % | 4.83 | % | 3.69 | % | 5.02 | % | ||||||||||
Net finance margin |
3.92 | % | 3.83 | % | 3.62 | % | 3.88 | % | 4.00 | % | ||||||||||
Operating expenses as a percentage of average
total assets |
1.96 | % | 2.00 | % | 1.37 | % | 1.95 | % | 1.54 | % | ||||||||||
Operating expenses (excluding direct real
estate depreciation) as a percentage of average
total assets |
1.73 | % | 1.77 | % | 1.17 | % | 1.72 | % | 1.34 | % | ||||||||||
Leverage ratios: |
||||||||||||||||||||
Total debt and deposits to equity (as of period end) |
4.74 | x | 4.66 | x | 5.42 | x | 4.74 | x | 5.42 | x | ||||||||||
Equity to total assets (as of period end) |
17.05 | % | 17.27 | % | 15.30 | % | 17.05 | % | 15.30 | % | ||||||||||
Tangible common equity to tangible assets |
15.94 | % | 16.22 | % | 14.37 | % | 15.94 | % | 14.37 | % | ||||||||||
Average balances ($ in thousands): |
||||||||||||||||||||
Average loans |
$ | 8,891,741 | $ | 9,352,814 | $ | 9,387,006 | $ | 9,254,140 | $ | 9,649,113 | ||||||||||
Average assets |
14,831,438 | 15,577,640 | 17,839,831 | 15,753,478 | 17,221,544 | |||||||||||||||
Average interest earning assets |
12,698,143 | 13,499,610 | 16,147,676 | 13,587,085 | 15,508,148 | |||||||||||||||
Average income earning assets |
13,750,841 | 14,560,088 | 17,216,700 | 14,647,734 | 16,576,678 | |||||||||||||||
Average borrowings |
7,366,511 | 7,780,606 | 10,581,114 | 7,926,017 | 12,635,714 | |||||||||||||||
Average deposits |
4,459,800 | 4,629,352 | 3,774,541 | 4,669,281 | 1,267,364 | |||||||||||||||
Average equity |
2,667,621 | 2,926,463 | 3,129,503 | 2,884,010 | 2,930,729 |
CapitalSource Inc.
Credit Quality Data
(Unaudited)
Credit Quality Data
(Unaudited)
September 30, 2009 | June 30, 2009 | March 31, 2009 | December 31, 2008 | September 30, 2008 | June 30, 2008 | March 31, 2008 | December 31, 2007 | September 30, 2007 | ||||||||||||||||||||||||||||
Loans 30-89 days contractually delinquent: |
||||||||||||||||||||||||||||||||||||
As a % of total commercial lending assets(1) |
1.39 | % | 1.19 | % | 1.21 | % | 2.75 | % | 0.39 | % | 0.74 | % | 1.12 | % | 0.85 | % | 0.22 | % | ||||||||||||||||||
Loans 90 or more days contractually delinquent: |
||||||||||||||||||||||||||||||||||||
As a % of total commercial lending assets |
4.19 | % | 4.15 | % | 2.79 | % | 1.30 | % | 1.72 | % | 1.17 | % | 0.59 | % | 0.59 | % | 0.71 | % | ||||||||||||||||||
Loans on non-accrual(2): |
||||||||||||||||||||||||||||||||||||
As a % of total commercial lending assets |
10.53 | % | 8.91 | % | 5.88 | % | 4.03 | % | 2.39 | % | 2.20 | % | 1.79 | % | 1.73 | % | 1.76 | % | ||||||||||||||||||
Impaired loans(3): |
||||||||||||||||||||||||||||||||||||
As a % of total commercial lending assets |
13.85 | % | 12.11 | % | 8.24 | % | 6.35 | % | 6.35 | % | 5.40 | % | 4.06 | % | 3.23 | % | 3.46 | % | ||||||||||||||||||
Allowance for loan losses: |
||||||||||||||||||||||||||||||||||||
As a % of total commercial lending assets |
5.48 | % | 4.51 | % | 4.26 | % | 3.89 | % | 1.48 | % | 1.50 | % | 1.40 | % | 1.41 | % | 1.16 | % | ||||||||||||||||||
Net charge offs (last twelve months): |
||||||||||||||||||||||||||||||||||||
As a % of total average commercial lending assets |
6.16 | % | 5.40 | % | 3.95 | % | 2.89 | % | 1.22 | % | 0.66 | % | 0.57 | % | 0.64 | % | 0.76 | % |
(1) | Includes commercial loans, loans held for sale, commercial real estate A participation interest and related accrued interest. | |
(2) | Includes loans with an aggregate principal balance of $359.6 million, $295.3 million, $115.2 million, $110.3 million, $96.3 million, $58.3 million, $47.2 million, $55.5 million, and $17.7 million as of September 30, 2009, June 30, 2009, March 31, 2009, December 31, 2008, September 30, 2008, June 30, 2008, March 31, 2008, December 31, 2007 and September 30, 2007, respectively, that were also classified as loans 90 or more days contractually delinquent. Also includes non-performing loans held for sale that had an aggregate principal balance of $25.1 million, $13.8 million, $14.0 million, $14.5 million, $14.5 million, $14.9 million and $3.0 million as of September 30, 2009, June 30, 2009, March 31, 2009, December 31, 2008, September 30, 2008, June 30, 2008 and September 30, 2007, respectively. As of March 31, 2008 and December 31, 2007 there were no non-performing loans classified as held for sale. | |
(3) | Includes loans with an aggregate principal balance of $366.1 million, $390.3 million, $179.3 million, $128.9 million, $163.8 million, $81.7 million, $47.2 million, $55.5 million and $57.4 million as of September 30, 2009, June 30, 2009, March 31, 2009, December 31, 2008, September 30, 2008, June 30, 2008, March 31, 2008, December 31, 2007 and September 30, 2007, respectively, that were also classified as loans 90 or more days contractually delinquent, and loans with an aggregate principal balance of $968.5 million, $870.6 million, $601.1 million, $423.4 million, $249.4 million, $192.4 million, $174.5 million, $170.5 million and $166.4 million as of September 30, 2009, June 30, 2009, March 31, 2009, December 31, 2008, September 30, 2008, June 30, 2008, March 31, 2008, December 31, 2007 and September 30, 2007, respectively, that were also classified as loans on non-accrual status. |