Segment Data

6 Months Ended

Jun. 30, 2011

Segment Data [Abstract]

Segment Data

Note 19.   Segment Data

For the three and six months ended June 30, 2011, we operated as two reportable segments: 1) CapitalSource Bank and 2) Other Commercial Finance. For the three and six months ended June 30, 2010, we operated as three reportable segments: 1) CapitalSource Bank, 2) Other Commercial Finance, and 3) Healthcare Net Lease. Our CapitalSource Bank segment comprises our commercial lending and banking business activities, and our Other Commercial Finance segment comprises our loan portfolio and other business activities in the Parent Company. Our Healthcare Net Lease segment comprised our direct real estate investment business activities, which we exited completely with the sale of all of the assets related to this segment during 2010. We have reclassified all comparative period results to reflect our two current reportable segments. In addition, for comparative purposes, overhead and other intercompany allocations have been reclassified from the Healthcare Net Lease segment into the Other Commercial Finance segment for the three and six months ended June 30, 2010.

The financial results of our operating segments as of and for the three months ended June 30, 2011 were as follows:

	Three Months Ended June 30, 2011
	CapitalSource			Other Commercial			Intercompany
	Bank			Finance			Eliminations			Consolidated Total
	($ in thousands)
Total interest income	$	90,490		$	40,701		$	(3,766	)	$	127,425
Interest expense		15,612			30,195			—			45,807
Provision for loan losses		(1,331	)		2,854			—			1,523
Operating expenses		32,594			41,676			(18,948	)		55,322
Total other income		3,000			24,751			(18,681	)		9,070
Net income (loss) before income taxes		46,615			(9,273	)		(3,499	)		33,843
Income tax expense (benefit)		18,840			(1,591	)		—			17,249
Net income (loss)	$	27,775		$	(7,682	)	$	(3,499	)	$	16,594
Total assets as of June 30, 2011	$	6,371,806		$	3,024,484		$	(81,346	)	$	9,314,944
Total assets as of December 31, 2010		6,117,368			3,418,897			(90,858	)		9,445,407

The financial results of our operating segments for the three months ended June 30, 2010 were as follows:

	Three Months Ended June 30, 2010
	CapitalSource			Other Commercial			Intercompany			Consolidated
	Bank			Finance			Eliminations			Total
	($ in thousands)
Total interest income	$	78,926		$	87,333		$	(1,539	)	$	164,720
Interest expense		16,431			44,326			—			60,757
Provision for loan losses		5,094			20,168			—			25,262
Operating expenses		29,248			40,392			(16,049	)		53,591
Other income (expense), net		7,067			(25,690	)		(16,183	)		(34,806	)
Net income (loss) from continuing operations before income taxes		35,220			(43,243	)		(1,673	)		(9,696	)
Income tax benefit		(2,463	)		(1,711	)		—			(4,174	)
Net income (loss) from continuing operations	$	37,683		$	(41,532	)	$	(1,673	)	$	(5,522	)

The financial results of our operating segments for the six months ended June 30, 2011 were as follows:

	Six Months Ended June 30, 2011
	CapitalSource		Other Commercial			Intercompany			Consolidated
	Bank		Finance			Eliminations			Total
	($ in thousands)
Total interest income	$	182,294	$	88,315		$	(1,032	)	$	269,577
Interest expense		30,822		61,737			—			92,559
Provision for loan losses		9,911		36,421			—			46,332
Operating expenses		65,535		83,002			(38,954	)		109,583
Total other income		5,965		57,105			(36,009	)		27,061
Net income (loss) before income taxes		81,991		(35,740	)		1,913			48,164
Income tax expense		21,935		6,476			—			28,411
Net income (loss)	$	60,056	$	(42,216	)	$	1,913		$	19,753

The financial results of our operating segments for the six months ended June 30, 2010 were as follows:

	Six Months Ended June 30, 2010
	CapitalSource			Other Commercial			Intercompany			Consolidated
	Bank			Finance			Eliminations			Total
	($ in thousands)
Total interest income	$	160,380		$	179,666		$	(3,912	)	$	336,134
Interest expense		33,732			92,026			—			125,758
Provision for loan losses		92,798			151,404			—			244,202
Operating expenses		53,583			90,899			(27,686	)		116,796
Other income (expense), net		15,226			(44,668	)		(27,639	)		(57,081	)
Net loss from continuing operations before income taxes		(4,507	)		(199,331	)		(3,865	)		(207,703	)
Income tax (benefit) expense		(2,519	)		19,351			—			16,832
Net loss from continuing operations	$	(1,988	)	$	(218,682	)	$	(3,865	)	$	(224,535	)

The accounting policies of each of the individual operating segments are the same as those described in Note 2, Summary of Significant Accounting Policies, in our audited consolidated financial statements for the year ended December 31, 2010, included in our Form 10-K.

Intercompany Eliminations

The intercompany eliminations consist of eliminations for intercompany activity among the segments. Such activities primarily include services provided by the Parent Company to CapitalSource Bank and by CapitalSource Bank to the Parent Company, and daily loan collections received at CapitalSource Bank for Parent Company loans and daily loan disbursements paid at the Parent Company for CapitalSource Bank loans.