| Q: What is the main business of CapitalSource (CSE)? |
A: CapitalSource Inc. (NYSE: CSE), through its wholly owned subsidiary CapitalSource Bank, makes commercial loans to small and middle-market businesses nationwide and offers depository products and services in 21 retail branches in southern and central California. Click here for more detailed information.
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| Q: When did CSE begin doing business? |
A: CSE was co-founded in 2000 by John Delaney who currently serves as Chairman of the Board. Prior to CapitalSource, Mr. Delaney founded Healthcare Financial Partners (HFP) which was similar to CSE, but solely focused on Healthcare lending. HFP was sold to Heller Financial in 1999 and later sold to GE Capital.
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| Q: When did CSE go public? |
A: The CSE IPO (Initial Public Offering) was August 6, 2003 - 21,300,000 shares were sold at $14.50 per share.
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| Q: What is CSE's current corporate structure? |
A: CSE operates as a C-Corp, as it did prior to 2006. From January 2006 through December 2008, the Company operated as a Real Estate Investment Trust (REIT).
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| Q: Where are CSE offices located? |
A: CSE has its corporate headquarters in Los Angeles, CA and additional offices are located across the U.S. Please visit the office section of our website for a listing.
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| Q: How many employees does the Company have? |
A: As of March 31, 2013, CSE had 537 employees.
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| Q: When does the CSE fiscal year end? |
A: CSE operates on a calendar year basis, so the fiscal year end is December 31st.
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| Q: What is CapitalSource Bank (CSB)? How does it fit into CSE? |
A: CapitalSource established CapitalSource Bank (CSB) by forming a de novo California Industrial Bank and then purchasing $5.2 billion of deposits and certain assets, including 22 retail branches, from Fremont Investment & Loan. Operations commenced on July 28, 2008. At March 31, 2013, CSB had $6.0 billion in commercial loans and leases, and $5.7 billion of deposits. All new CSE loans are now made in the Bank. For more information on CSB, please visit: www.capitalsourcebank.com.
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| Q: What makes CSE stand out as a lender? |
A: CSE has a national origination team with extensive industry experience in twelve specialized lending areas such as healthcare, security, technology and lender finance. CSE manages the loan process from beginning to end and a large part of the Company’s success is built upon a demonstrated ability to understand borrower needs and to structure loans appropriately. The capacity to generate high-quality information upon which to base credit decisions, utilizing an in-house accounting group, is also a key asset. In addition, customized credit and underwriting tools are crucial components of the CapitalSource underwriting process.
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| Q: How large is the CSE lending portfolio? |
A: $6.3 billion as of March 31, 2013.
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| Q: Who is your target client? |
A: Our target client for most of our business segments is a company seeking a loan of up to $100 million. Borrowers are usually seeking secured working capital loans, business or real estate acquisition financing, or equipment/capital improvement financing. In addition, we make small business loans which are generally less than $2 million and multifamily loans which are typically less than $5 million.
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| Q: What sectors does CSE lend in? |
A: Healthcare (real estate, credit and asset-based), security finance (security alarm and homeland security), lender finance (asset backed lending to finance companies including timeshare and resort finance), commercial real estate, corporate asset finance including equipment finance, corporate finance (leveraged buyouts), multifamily real estate, small business and professional practice lending.
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| Q: What is the typical duration of a CSE loan? |
A: Our commercial loans have stated maturities at origination that generally range from three to seven years, with the average for new loans generally closer to four years.
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| Q: How does CapitalSource monitor its loans? |
A: CSE closely and proactively monitors the financial performance of its borrowers, utilizing in-house personnel, on a quarterly or more frequent basis.
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| Q: How does CapitalSource measure the performance of its portfolio? |
A: CSE reports several credit metrics (e.g. non-performing assets, provision for loan losses, non-accruals and charge-offs) that indicate the quarterly credit performance of all loans on its books. Please see the 1Q’13 Earnings Press Release.
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| Q: What is the definition of a loan on non-accrual? |
A: We place loans on non-accrual status when we expect, based on judgment, that our borrower will not be able to fully meet its debt obligations.
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| Q: What is the credit performance of CapitalSource over time? |
A: Please see page 20 of the 1Q’13 Earnings Press Release.
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| Q: How does CapitalSource fund its business? |
A: Since the formation of CapitalSource Bank, CSE principally uses deposits to fund its new business. A portion of loans in the legacy loan book (pre-CapitalSource Bank) are held at the Parent Company in match-funded securitizations.
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| Q: Does CSE pay a dividend? |
A: Yes. CSE began paying dividends in 2006. Please visit the dividend page of the Company website for information on the most recent dividend paid and historical dividend information.
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| Q: Why did CSE pay a special dividend of $2.50 in January 2006? |
A: The January 2006 Earnings & Profits (E&P) special dividend of $2.50 per share was issued to meet one of the requirements for REIT qualification. Specifically, earnings and profits attributable to tax years ending prior to January 1, 2006 had to be distributed to shareholders as a special dividend.
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| Q: What stock exchange is CSE stock listed on? |
A: CSE trades on the New York Stock Exchange (NYSE) under the ticker symbol CSE.
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| Q: What is the CUSIP number for CSE? |
A: 14055X102
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| Q: Does CSE have a Dividend Reinvestment and Direct Stock Purchase Plan? |
A: No.
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| Q: Who is the transfer agent for CSE stock? |
A: American Stock Transfer and Trust Company
59 Maiden Lane
Plaza Level
New York, NY 10038
800.937.5449
718.921.8124
www.amstock.com
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| Q: Who should I call if I have not received my dividend or I received incorrect funds? |
A: If you hold your shares in record name, meaning you have the stock certificate, please contact our transfer agent, American Stock Transfer & Trust at 800.937.5449. If you hold your shares at a brokerage firm or use an online trading broker you should contact them directly.
If you hold your shares at a brokerage firm or use an online trading broker you will need to contact them directly.
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| Q: How do I replace a lost CSE share certificate? |
A: You must contact our transfer agent, American Stock Transfer and Trust Company, at 800.937.5449 or consult their website at www.amstock.com.
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| Q: How do I change my address for dividend payments or transfer ownership of a stock certificate? |
A: You must contact the transfer agent, American Stock Transfer and Trust Company.
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| Q: How do I obtain recent financial publications for CSE, such as the Annual Report? |
A: Recent publications can be viewed on the CSE website or printed from the downloadable IR package. Hard copies can be requested by filling out the form on the information request page.
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