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Christopher Menkin
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Christopher "Kit" Menkin is of editor LeasingNews.org (http://www.leasingnews.org/), an internet trade publication for the finance/leasing industry. He has 41 years experience in the finance/leasing industry as well as being a founder of a commercial regional bank and serving on... More
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  • The New Direction Of CapitalSource Will Matthew Wagner Follow John Delaney's Footprints? 0 comments
    Jul 30, 2013 1:24 PM

    In comparing the financial numbers with PacWest above, it looks like the merger should have been the other way---but the alignment of board of directors as well as executive management shows Matthew Wagner is in charge to get it done. While the ownership will be 45% PacWest, 55% CapitalSource, the board will consist of 8 people from PacWest and 5 people from CapitalSource. John Eggemeyer, current Chairman of Pacific Western, will be the Chairman with Matthew P. Wagner as CEO. Sounds more like a PacWest Show to me.

    With all the new middle market leasing companies, regional bank and now community banks getting more into the installment lending market place, competition is keen. The trend has been separate divisions for bank finance and leasing separate divisions and not branches fighting in the trenches. Perhaps Matthew Wagner sees that, and as he noted, while the new branches are a plus, the plum is the CapitalSource finance/leasing division.

    CapitalSource was founded in 2000 by John Delaney and Jason Fish with an initial capitalization of more than $500 million, which at the time was the largest private capitalization for a finance company.[4]

    In 2003, CapitalSource completed an IPO and began trading on the New York Stock Exchange (NYSE) under the symbol CSE. In 2006, CapitalSource completed its conversion to a Real Estate Investment Trust (REIT), which enabled the company to remain competitive in a highly-liquid market due to the tax benefits of REIT status.

    The company pursued deposit-based funding for nearly three years before forming CapitalSource Bank, a de novo industrial bank, in 2008. The same year it purchased various deposits and assets, including 22 retail branches, from Fremont Investment & Loan. The operations of CapitalSource Bank commenced on July 28, 2008.

    CapitalSource was founded in 2000 by John Delaney and Jason Fish with an initial capitalization of more than $500 million, which at the time was the largest private capitalization for a finance company. In 2003, CapitalSource completed an IPO and began trading on the New York Stock Exchange (NYSE) under the symbol CSE. In 2006, CapitalSource completed its conversion to a Real Estate Investment Trust (REIT), which enabled the company to remain competitive in a highly-liquid market due to the tax benefits of REIT status.

    The company pursued deposit-based funding for nearly three years before forming CapitalSource Bank, a de novo industrial bank, in 2008.The same year it purchased various deposits and assets, including 22 retail branches, from Fremont Investment & Loan.

    (CapitalSource Bank was established July 25,2008-FDIC) and according to the FDIC started three days later on July 28, 2008.

    en.wikipedia.org/wiki/CapitalSource

    John Delaney
    Member of the U.S. House of Representatives
    Maryland's 6th District (Democrat)

    In the wake of the 2010 Census, Maryland adopted new boundaries for the state's 8 new Congressional districts on October 20, 2011. Delaney took a leave of absence in January, 2012 from CapitalSource after being encouraged by a list of who's-who in both the local and national Democratic party. The state adopted a new map for the nearly 200 state legislative districts on February 24, 2012.

    He first won the five-candidate Democratic primary, then on April 3, defeated the 10-term Republican incumbent by 59%-38%; the day after he resigned as chairman of CapitalSource. He assumed his office January 3, 2013.

    http://en.wikipedia.org/wiki/John_Delaney_(Maryland_politician) www.bizjournals.com/washington/blog/2012....html

    There is no doubt he left CapitalSource in excellent financial condition. Tier 1 risk-based capital ratio: 15.42%

    March 31, 2013 the bank had 530 full time employees at 24 offices in California three in Brea, two in Los Angeles, one in Arcadia, Bakersfield, Beverly Hills, Fresno, Hanford, Huntington Beach, Laguna Hills, Newport Beach, Northridge, Pasadena, Redlands, Seal Beach, Studio City, Tarzana, Torrance, Tustin, Visalia, Westlake Village, Whittier

    (in millions, unless otherwise)

    Net Equity
    2008 $915.7
    2009 $868.3
    2010 $924.6
    2011 $1,050.3
    2012 $1,100.8
    3/31 $1,136.2

    Profit
    2008 -$8.5
    2009 -$70.7
    2010 $51.6
    2011 $112.6
    2012 $122.6
    3/31 $34.6

    Non-Current Loans
    2008 $40.4
    2009 $185.3
    2010 $239.7
    2011 $118.4
    2012 $42.0
    3/31 $30.0

    Charge Offs
    2008 0
    2009 $116.4 ($78.6 construction/land, $11.4 nonfarm/nores.,$24.4 commercial/industrial,$1.9 multi-fam.)
    2010 $144.7 ($83.3 nonfarm/nonres.,$53.8 const./land,$4.4 commercial/ind. $834,000 other loans)
    2011 $57.7 ($33.1 nonfarm/nonres.,$13.7 commercial, $10.5 const./land, $785,000 other family, -$389,000 other loans
    2012 $11.9 ($10,418 other loans, $3.3 lease receivables, $2.5 commercial, -$4.3 nonfarm/nonres.)
    3/31 $2.2 ($1.6 other loans, $844,000 commercial/ind., -$249 nonfarm/nonres.)

    Construction and Land Development, 1-4 family multiple residential properties, Multiple Family Residential properties, Non-Farm Non-Residential loans.

    (All information on CapitalSource Bank from FDIC.gov)

    CapitalSource Second quarter:
    http://leasingnews.org/archives/Jul2013/7_24.htm#capsource

    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

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