Profile: CapitalSource Inc (CSE.N)
9 Dec 2013
CapitalSource Inc. (CapitalSource), incorporated on June 4, 2003, is a commercial lender, which provides financial products to small and middle market businesses nationwide and provides depository products and services to consumers in southern and central California, through its wholly owned subsidiary, CapitalSource Bank. As of December 31, 2012, it had 21 retail bank branches located in southern and central California. During the year ended December 31, 2012, it operated as two reportable segments: CapitalSource Bank and Other Commercial Finance. Its CapitalSource Bank segment comprises its commercial lending and banking business activities, and its Other Commercial Finance segment comprises its loan portfolio and other business activities in the Parent Company.
Loan Products and Service Offerings
The Company makes senior secured real estate and asset-based loans. It also makes cash flow loans, which are secured by the enterprise value of the borrowing entity. Asset-based loans are collateralized by specified assets of the client, generally its accounts/notes receivable, inventory and/or machinery. Real estate loans are secured by senior mortgages on real property. Its cash flow loans are secured by a security interest in all or substantially all of a client's assets.
The Company’s lending activities are focused on the 10 sectors, which include healthcare, lender finance, multi-family real estate, commercial real estate, equipment leasing and finance, technology, security, small business, professional practices and premium finance. Healthcare includes real estate, asset-based and cash flow loans to healthcare providers. Lender finance include loans to commercial finance companies with underlying portfolios of tax liens, loans secured by timeshare receivables, auto receivables, student loans and other consumer receivables. Multi-family real estate includes mortgage loans on multifamily properties. Commercial real estate includes mortgage loans on a range of commercial property types. Equipment leasing and finance includes equipment loans and leases collateralized by the specific equipment financed. Technology includes loans to technology companies that provide critical product or service offerings, including wireless communication tower owner/operators, information technology hosting providers and managed service providers. Security includes asset-based and cash flow loans to companies in the physical security, government security, and public safety sectors. Small business includes loans guaranteed in part by the small business administration (SBA) to small businesses. Professional practices include business loans to dentists, physicians, pharmacists and optometrists. Premium finance includes life insurance premium finance loans secured by the cash surrender value of life insurance policies and other liquid assets. Through CapitalSource Bank's 21 branches in southern and central California and its Website, the Company provides savings and money market accounts, individual retirement accounts and certificates of deposit
The Company depends on deposits and external financing sources to fund its operations. It employs a range of financing arrangements, including term debt, subordinated debt and equity. As a member of the Federal Home Loan Bank of San Francisco (FHLB SF), CapitalSource Bank had financing availability with the FHLB SF as of December 31, 2012 equal to 35% of CapitalSource Bank's total assets, subject to pledging adequate collateral. The Company issues term debt securitizations, in which it contributed commercial loans to separate Issuers. It has issued subordinated debt to statutory trusts (TP Trusts), which are formed for the purpose of issuing preferred securities to outside investors, which it refers to as Trust Preferred Securities (TPS).
33rd Floor, 633 West 5th Street
CHEVY CHASE MD 20815