CapitalSource Bank Receives 'Outstanding' CRA Rating by FDIC

Highest rating possible in first evaluation of California-based bank

Dec 06, 2010, 16:30 ET from CapitalSource Inc.

LOS ANGELES, Dec. 6, 2010 /PRNewswire/ -- CapitalSource Bank, the banking subsidiary of CapitalSource Inc. (NYSE: CSE), announced that it has been assigned an overall rating of "Outstanding," -- the highest rating possible -- on its Community Reinvestment Act (CRA) Performance Evaluation from the Federal Deposit Insurance Corporation (FDIC). The recently issued rating marks the first time that CapitalSource Bank has been formally evaluated for CRA and is based on the performance of the bank since its inception in July 2008 through June 2010.  

CapitalSource Bank extended $143 million in community development investments and loans, more than doubling the bank's three-year business plan of $69 million. According to the evaluation, "CapitalSource Bank has an excellent record of participating in and helping to support community development activities within its assessment areas."

The CRA evaluation assessed CapitalSource Bank's performance with respect to meeting the credit needs of its entire community, including low and moderate income individuals, neighborhoods and businesses. The evaluation considers an institution's community development loans and services, along with a review of the community development investments in the bank's assessment area.

"We are extremely proud of the 'Outstanding' rating we received from the FDIC," said CapitalSource Bank President and CEO Tad Lowrey. "Since our formation in 2008, CapitalSource Bank has made a concerted effort to address the needs of our communities, with a special focus on low and moderate income neighborhoods. We believe this rating is a reflection of our fulfillment of that commitment."

"The rating we received from the FDIC reinforces our approach to meeting the needs of the communities where we do business. We view our CRA work not as a requirement or a box to check off, but as the right thing to do," commented Gary Dunn, Vice President, CRA Officer, CapitalSource Bank. "Our evaluation results also recognize the leadership role CapitalSource Bank employees play as they contribute their time and talents to a variety of not-for-profit organizations in the communities we serve."

The CRA, enacted in 1977, requires banks to help meet the credit needs of the communities they serve, including low- and moderate-income communities. In rating CapitalSource Bank "Outstanding," the FDIC cited the following factors:

  • CapitalSource Bank is a leader in providing community development services within its assessment areas.
  • CapitalSource Bank has a high level of community development loans, qualified investments and donations.  
  • CapitalSource Bank exhibits excellent responsiveness to credit and community economic development needs.
  • During the review period, CapitalSource Bank extended 267 community development loans totaling $99.3 million.  The community development loans have supported small businesses and affordable housing, which address the needs of the assessment areas.
  • CapitalSource Bank's goal within its own business plan called for $69 million of qualified investments and loans within three years. CapitalSource Bank more than doubled this goal within two years of operation, which demonstrates the Board of Directors' and senior management's commitment to low to moderate income individuals and the geographies of its assessment areas.

CapitalSource Bank was also recently awarded -- through the U.S. Treasury's national Bank Enterprise Awards (BEA) program -- the top grant amount of $600,000 for its investment in low-income and economically distressed communities served by its Southern and Central California branches.

About CapitalSource

CapitalSource Inc. (NYSE: CSE), through its wholly owned subsidiary CapitalSource Bank, provides financial products nationwide to small and middle market businesses and offers depository products and services in southern and central California. As of September 30, 2010, CapitalSource had total assets of $9.6 billion and $4.6 billion in deposits. Visit and for more information.

SOURCE CapitalSource Inc.