CapitalSource Bank Recognized by the U.S. Treasury Department for Local Community Investments

CHEVY CHASE, Md., Oct. 5 /PRNewswire/ -- CapitalSource Inc. (NYSE: CSE) today announced that its banking subsidiary, CapitalSource Bank, is one of 69 depository institutions nationally to receive recognition by the U.S. Treasury for its investment in low income and economically distressed communities served by its Southern and Central California branches. Only eight other California institutions received an award from the Community Development Financial Institutions Fund. CapitalSource Bank was awarded the top grant amount of $600,000.

"We are honored to be recognized for our involvement in the local community with the U.S. Treasury Department Bank Enterprise Award.  Though our national lending platform facilitates loans to small and mid-size businesses throughout the country, our retail bank has deep roots in California and we actively support our local communities in numerous ways," said Tad Lowrey, CapitalSource Bank CEO. "We gratefully accept this award as recognition of the work we have done, and look forward to using the grant to further invest in our local communities. We will do so by continuing our Community Reinvestment Act (CRA) initiatives already in place, complimented by local outreach and community partnerships in the markets we serve," added Lowrey.

The national Bank Enterprise Awards (BEA) program was enacted to provide an incentive to FDIC–insured banks to increase their level of support to certified Community Development Financial Institutions (CDFIs) or increase their provision of loans, investments, and financial services in distressed communities.  According to the U.S. Department of the Treasury release announcing the awards (see: http://www.cdfifund.gov/news_events/cdfi-2010-40-CDFI-Fund-Awards-Nearly-25-Million.asp) the BEA Program "recognizes the key role played by some mainstream depository institutions in promoting community revitalization through the provision of central financial services, credit and investment capital."

"We take our obligation to be good corporate citizens and to provide financial services to the local communities we serve very seriously," commented Steven A. Museles, Co-CEO, CapitalSource Inc. "This award is well deserved recognition for the dedicated efforts of our team at CapitalSource Bank to fulfill that responsibility."

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 June 30, 2010, CapitalSource had total assets of $10.7 billion and $4.6 billion in deposits. Visit www.capitalsource.com for more information.

SOURCE CapitalSource Inc.