CAPITALSOURCE INC - FORM 8-K - EX-99.1

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8-K - FORM 8-K - CAPITALSOURCE INC	w77185e8vk.htm

Exhibit 99.1

Board of Governors of the Federal Reserve System
Federal Deposit Insurance Corporation
Office of the Comptroller of the Currency

Federal Financial Institutions Examination Council


			1

Consolidated Reports of Condition and Income for A Bank With Domestic Offices Only — FFIEC 041


Institution Name		CAPITALSOURCE BANK

City		LOS ANGELES

State		CA

Zip Code		90071

Call Report Quarter End Date		12/31/2009

Report Type		041

RSSD-ID		3806100

FDIC Certificate Number		58878

OCC Charter Number		0

ABA Routing Number		322286447

Last updated on		1/29/2010

Board of Governors of the Federal Reserve System, Federal Deposit Insurance Corporation, Office of the Comptroller of the Currency
Legend: NR — Not Reported, CONF — Confidential


CAPITALSOURCE BANK		FFIEC 041
RSSD-ID 3806100		Quarter End Date 12/31/2009
Last Updated on 1/29/2010		2

Bank Demographic Information


Dollar amounts in thousands
1. Reporting date	RCON9999		20091231	1.
2. FDIC certificate number	RSSD9050		58878	2.
3. Legal title of bank	RSSD9017	Click here for value		3.
4. City	RSSD9130	Los Angeles		4.
5. State abbreviation	RSSD9200	CA		5.
6. Zip code	RSSD9220		90071	6.

(RSSD9017) CapitalSource Bank

Contact Information


Dollar amounts in thousands
1. Contact Information for the Reports of Condition and Income			1.
a. Chief Financial Officer (or Equivalent) Signing the Reports			1.a.
1. Name	TEXTC490	CONF	1.a.1.
2. Title	TEXTC491	CONF	1.a.2.
3. E-mail Address	TEXTC492	CONF	1.a.3.
4. Telephone	TEXTC493	CONF	1.a.4.
5. FAX	TEXTC494	CONF	1.a.5.
b. Other Person to Whom Questions about the Reports Should be Directed			1.b.
1. Name	TEXTC495	CONF	1.b.1.
2. Title	TEXTC496	CONF	1.b.2.
3. E-mail Address	TEXT4086	CONF	1.b.3.
4. Telephone	TEXT8902	CONF	1.b.4.
5. FAX	TEXT9116	CONF	1.b.5.
2. Person to whom questions about Schedule RC-T — Fiduciary and Related Services should be directed			2.
a. Name and Title	TEXTB962	CONF	2.a.
b. E-mail Address	TEXTB926	CONF	2.b.
c. Telephone	TEXTB963	CONF	2.c.
d. FAX	TEXTB964	CONF	2.d.
3. Emergency Contact Information			3.
a. Primary Contact			3.a.
1. Name	TEXTC366	CONF	3.a.1.
2. Title	TEXTC367	CONF	3.a.2.
3. E-mail Address	TEXTC368	CONF	3.a.3.
4. Telephone	TEXTC369	CONF	3.a.4.
5. FAX	TEXTC370	CONF	3.a.5.
b. Secondary Contact			3.b.
1. Name	TEXTC371	CONF	3.b.1.
2. Title	TEXTC372	CONF	3.b.2.
3. E-mail Address	TEXTC373	CONF	3.b.3.
4. Telephone	TEXTC374	CONF	3.b.4.
5. FAX	TEXTC375	CONF	3.b.5.
4. USA PATRIOT Act Section 314(a) Anti-Money Laundering Contact Information			4.
a. Primary Contact			4.a.
1. Name	TEXTC437	CONF	4.a.1.
2. Title	TEXTC438	CONF	4.a.2.
3. E-mail Address	TEXTC439	CONF	4.a.3.


CAPITALSOURCE BANK		FFIEC 041
RSSD-ID 3806100		Quarter End Date 12/31/2009
Last Updated on 1/29/2010		3


Dollar amounts in thousands
4. Telephone	TEXTC440	CONF	4.a.4.
b. Secondary Contact			4.b.
1. Name	TEXTC442	CONF	4.b.1.
2. Title	TEXTC443	CONF	4.b.2.
3. E-mail Address	TEXTC444	CONF	4.b.3.
4. Telephone	TEXTC445	CONF	4.b.4.
c. Third Contact			4.c.
1. Name	TEXTC870	CONF	4.c.1.
2. Title	TEXTC871	CONF	4.c.2.
3. E-mail Address	TEXTC872	CONF	4.c.3.
4. Telephone	TEXTC873	CONF	4.c.4.
d. Fourth Contact			4.d.
1. Name	TEXTC875	CONF	4.d.1.
2. Title	TEXTC876	CONF	4.d.2.
3. E-mail Address	TEXTC877	CONF	4.d.3.
4. Telephone	TEXTC878	CONF	4.d.4.

Optional Narrative Statement Concerning the Amounts Reported in the Reports of Condition and Income


Dollar amounts in thousands
1. Comments?	RCON6979	No	1.
2. Bank Management Statement	TEXT6980		2.

Schedule RI — Income Statement


Dollar amounts in thousands
1. Interest income:			1.
a. Interest and fee income on loans:			1.a.
1. Loans secured by real estate:			1.a.1.
a. Loans secured by 1-4 family residential properties	RIAD4435	0	1.a.1.a.
b. All other loans secured by real estate	RIAD4436	100,574	1.a.1.b.
2. Commercial and industrial loans	RIAD4012	95,147	1.a.2.
3. Loans to individuals for household, family, and other personal expenditures:			1.a.3.
a. Credit cards	RIADB485	0	1.a.3.a.
b. Other (includes single payment, installment, all student loans, and revolving credit plans other than credit cards)	RIADB486	0	1.a.3.b.
4. Loans to foreign governments and official institutions	RIAD4056	0	1.a.4.
5. All other loans	RIAD4058	67,313	1.a.5.
6. Total interest and fee income on loans	RIAD4010	263,034	1.a.6.
b. Income from lease financing receivables	RIAD4065	0	1.b.
c. Interest income on balances due from depository institutions	RIAD4115	1,101	1.c.
d. Interest and dividend income on securities:			1.d.
1. U.S. Treasury securities and U.S. Government agency obligations (excluding mortgage-backed securities)	RIADB488	9,262	1.d.1.
2. Mortgage-backed securities	RIADB489	37,307	1.d.2.
3. All other securities (includes securities issued by states and political subdivisions in the U.S.)	RIAD4060	3,353	1.d.3.
e. Interest income from trading assets	RIAD4069	0	1.e.
f. Interest income on federal funds sold and securities purchased under agreements to resell	RIAD4020	0	1.f.


CAPITALSOURCE BANK		FFIEC 041
RSSD-ID 3806100		Quarter End Date 12/31/2009
Last Updated on 1/29/2010		4


Dollar amounts in thousands
g. Other interest income	RIAD4518	42	1.g.
h. Total interest income	RIAD4107	314,099	1.h.
2. Interest expense:			2.
a. Interest on deposits:			2.a.
1. Transaction accounts (NOW accounts, ATS accounts, and telephone and preauthorized transfer accounts)	RIAD4508	0	2.a.1.
2. Nontransaction accounts:			2.a.2.
a. Savings deposits (includes MMDAs)	RIAD0093	11,014	2.a.2.a.
b. Time deposits of $100,000 or more	RIADA517	37,292	2.a.2.b.
c. Time deposits of less than $100,000	RIADA518	61,124	2.a.2.c.
b. Expense of federal funds purchased and securities sold under agreements to repurchase	RIAD4180	0	2.b.
c. Interest on trading liabilities and other borrowed money	RIAD4185	2,443	2.c.
d. Interest on subordinated notes and debentures	RIAD4200	0	2.d.
e. Total interest expense	RIAD4073	111,873	2.e.
3. Net interest income	RIAD4074	202,226	3.
4. Provision for loan and lease losses	RIAD4230	213,381	4.
5. Noninterest income:			5.
a. Income from fiduciary activities	RIAD4070	0	5.a.
b. Service charges on deposit accounts	RIAD4080	247	5.b.
c. Trading revenue	RIADA220	0	5.c.
d. Not available			5.d.
1. Fees and commissions from securities brokerage	RIADC886	0	5.d.1.
2. Investment banking, advisory, and underwriting fees and commissions	RIADC888	0	5.d.2.
3. Fees and commissions from annuity sales	RIADC887	0	5.d.3.
4. Underwriting income from insurance and reinsurance activities	RIADC386	0	5.d.4.
5. Income from other insurance activities	RIADC387	0	5.d.5.
e. Venture capital revenue	RIADB491	0	5.e.
f. Net servicing fees	RIADB492	29,327	5.f.
g. Net securitization income	RIADB493	0	5.g.
h. Not applicable			5.h.
i. Net gains (losses) on sales of loans and leases	RIAD5416	4,486	5.i.
j. Net gains (losses) on sales of other real estate owned	RIAD5415	0	5.j.
k. Net gains (losses) on sales of other assets (excluding securities)	RIADB496	3	5.k.
l. Other noninterest income	RIADB497	48	5.l.
m. Total noninterest income	RIAD4079	34,111	5.m.
6. Not available			6.
a. Realized gains (losses) on held-to-maturity securities	RIAD3521	0	6.a.
b. Realized gains (losses) on available-for-sale securities	RIAD3196	-53	6.b.
7. Noninterest expense:			7.
a. Salaries and employee benefits	RIAD4135	44,710	7.a.
b. Expenses of premises and fixed assets (net of rental income) (excluding salaries and employee benefits and mortgage interest)	RIAD4217	15,318	7.b.
c. Not available			7.c.
1. Goodwill impairment losses	RIADC216	0	7.c.1.
2. Amortization expense and impairment losses for other intangible assets	RIADC232	73	7.c.2.
d. Other noninterest expense	RIAD4092	39,729	7.d.
e. Total noninterest expense	RIAD4093	99,830	7.e.
8. Income (loss) before income taxes and extraordinary items and other adjustments	RIAD4301	-76,927	8.
9. Applicable income taxes (on item 8)	RIAD4302	19,772	9.
10. Income (loss) before extraordinary items and other adjustments	RIAD4300	-96,699	10.


CAPITALSOURCE BANK		FFIEC 041
RSSD-ID 3806100		Quarter End Date 12/31/2009
Last Updated on 1/29/2010		5


Dollar amounts in thousands
11. Extraordinary items and other adjustments, net of income taxes	RIAD4320		0	11.
12. Net income (loss) attributable to bank and noncontrolling (minority) interests (sum of items 10 and 11)	RIADG104		-96,699	12.
13. LESS: Net income (loss) attributable to noncontrolling (minority) interests (if net income, report as a positive value; if net loss, report as a negative value)	RIADG103		0	13.
14. Net income (loss) attributable to bank (item 12 minus item 13)	RIAD4340		-96,699	14.
1. Interest expense incurred to carry tax-exempt securities, loans, and leases acquired after August 7, 1986, that is not deductible for federal income tax purposes	RIAD4513		0	M.1.
2. Income from the sale and servicing of mutual funds and annuities (included in Schedule RI, item 8)	RIAD8431		0	M.2.
3. Income on tax-exempt loans and leases to states and political subdivisions in the U.S. (included in Schedule RI, items 1.a and 1.b)	RIAD4313		0	M.3.
4. Income on tax-exempt securities issued by states and political subdivisions in the U.S. (included in Schedule RI, item 1.d.(3))	RIAD4507		0	M.4.
5. Number of full-time equivalent employees at end of current period	RIAD4150		351	M.5.
6. Interest and fee income on loans to finance agricultural production and other loans to farmers (included in Schedule RI, item 1.a.(5))	RIAD4024		0	M.6.
7. If the reporting bank has restated its balance sheet as a result of applying push down accounting this calendar year, report the date of the bank’s acquisition	RIAD9106		0	M.7.
8. Trading revenue (from cash instruments and derivative instruments):				M.8.
a. Interest rate exposures	RIAD8757	NR		M.8.a.
b. Foreign exchange exposures	RIAD8758	NR		M.8.b.
c. Equity security and index exposures	RIAD8759	NR		M.8.c.
d. Commodity and other exposures	RIAD8760	NR		M.8.d.
e. Credit exposures	RIADF186	NR		M.8.e.
9. Net gains (losses) recognized in earnings on credit derivatives that economically hedge credit exposures held outside the trading account:				M.9.
a. Net gains (losses) on credit derivatives held for trading	RIADC889		0	M.9.a.
b. Net gains (losses) on credit derivatives held for purposes other than trading	RIADC890		0	M.9.b.
10. Credit losses on derivatives	RIADA251		0	M.10.
11. Does the reporting bank have a Subchapter S election in effect for federal income tax purposes for the current tax year?	RIADA530	No		M.11.
12. Noncash income from negative amortization on closed-end loans secured by 1-4 family residential properties (included in Schedule RI, item 1.a.(1)(a))	RIADF228	NR		M.12.
13. Net gains (losses) recognized in earnings on assets and liabilities that are reported at fair value under a fair value option:				M.13.
a. Net gains (losses) on assets	RIADF551	NR		M.13.a.
1. Estimated net gains (losses) on loans attributable to changes in instrument-specific credit risk	RIADF552	NR		M.13.a.1.
b. Net gains (losses) on liabilities	RIADF553	NR		M.13.b.
1. Estimated net gains (losses) on liabilities attributable to changes in instrument-specific credit risk	RIADF554	NR		M.13.b.1.

Schedule RI-A — Changes in Bank Equity Capital


Dollar amounts in thousands
1. Total bank equity capital most recently reported for the December 31, 2008, Reports of Condition and Income (i.e., after adjustments from amended Reports of Income)	RIAD3217	915,690	1.
2. Restatements due to corrections of material accounting errors and changes in accounting principles	RIADB507	0	2.
3. Balance end of previous calendar year as restated	RIADB508	915,690	3.
4. Net income (loss) attributable to bank (must equal Schedule RI, item 14)	RIAD4340	-96,699	4.
5. Sale, conversion, acquisition, or retirement of capital stock, net (excluding treasury stock transactions)	RIADB509	2,678	5.


CAPITALSOURCE BANK		FFIEC 041
RSSD-ID 3806100		Quarter End Date 12/31/2009
Last Updated on 1/29/2010		6


Dollar amounts in thousands
6. Treasury stock transactions, net	RIADB510	0	6.
7. Changes incident to business combinations, net	RIAD4356	0	7.
8. Cash dividends declared on preferred stock	RIAD4470	0	8.
9. Cash dividends declared on common stock	RIAD4460	0	9.
10. Other comprehensive income	RIADB511	656	10.
11. Other transactions with parent holding company (not included in items 5, 6, 8, or 9 above)	RIAD4415	20,000	11.
12. Total bank equity capital end of current period (sum of items 3 through 11) (must equal Schedule RC, item 27.a)	RIAD3210	842,325	12.

Schedule RI-B Part I — Charge-offs and Recoveries on Loans and Leases

(Column A) Charge-offs

(Column B) Recoveries

Dollar amounts in thousands

Calendar year-to-date

1. Loans secured by real estate:

a. Construction, land development, and other land loans:

1.a.

1. 1-4 family residential construction loans

RIADC891

RIADC892

1.a.1.

2. Other construction loans and all land development and other land loans

RIADC893

78,655

RIADC894

1.a.2.

b. Secured by farmland

RIAD3584

RIAD3585

1.b.

c. Secured by 1-4 family residential properties:

1.c.

1. Revolving, open-end loans secured by 1-4 family residential properties and extended under lines of credit

RIAD5411

RIAD5412

1.c.1.

2. Closed-end loans secured by 1-4 family residential properties:

1.c.2.

a. Secured by first liens

RIADC234

RIADC217

1.c.2.a.

b. Secured by junior liens

RIADC235

RIADC218

1.c.2.b.

d. Secured by multifamily (5 or more) residential properties

RIAD3588

1,970

RIAD3589

1.d.

e. Secured by nonfarm nonresidential properties:

1.e.

1. Loans secured by owner-occupied nonfarm nonresidential properties

RIADC895

RIADC896

1.e.1.

2. Loans secured by other nonfarm nonresidential properties

RIADC897

11,392

RIADC898

1.e.2.

2. Loans to depository institutions and acceptances of other banks

RIAD4481

RIAD4482

3. Not applicable

4. Commercial and industrial loans

RIAD4638

24,456

RIAD4608

5. Loans to individuals for household, family, and other personal expenditures:

a. Credit cards

RIADB514

RIADB515

5.a.

b. Other (includes single payment, installment, all student loans, and revolving credit plans other than credit cards)

RIADB516

RIADB517

5.b.

6. Loans to foreign governments and official institutions

RIAD4643

RIAD4627

7. All other loans

RIAD4644

RIAD4628

8. Lease financing receivables

RIAD4266

RIAD4267

9. Total

RIAD4635

116,473

RIAD4605

1. Loans to finance commercial real estate, construction, and land development activities (not secured by real estate) included in Schedule RI-B, part I, items 4 and 7, above

RIAD5409

RIAD5410

M.1.

2. Not available

M.2.

a. Loans secured by real estate to non-U.S. addressees (domicile) (included in Schedule RI-B, part I, item 1, above)

RIAD4652

RIAD4662

M.2.a.

b. Loans to and acceptances of foreign banks (included in Schedule RI-B, part I, item 2, above)

RIAD4654

RIAD4664

M.2.b.

c. Commercial and industrial loans to non-U.S. addressees (domicile) (included in Schedule RI-B, part I, item 4, above)

RIAD4646

RIAD4618

M.2.c.


CAPITALSOURCE BANK		FFIEC 041
RSSD-ID 3806100		Quarter End Date 12/31/2009
Last Updated on 1/29/2010		7

(Column A) Charge-offs

(Column B) Recoveries

Dollar amounts in thousands

Calendar year-to-date

d. Leases to individuals for household, family, and other personal expenditures (included in Schedule RI-B, part I, item 8, above)

RIADF185

RIADF187

M.2.d.

3. Loans to finance agricultural production and other loans to farmers (included in Schedule RI-B, part I, item 7, above)

RIAD4655

RIAD4665

M.3.

Schedule RI-B Part I — Charge-offs and Recoveries on Loans and Leases


Dollar amounts in thousands
4. Uncollectible retail credit card fees and finance charges reversed against income (i.e., not included in charge-offs against the allowance for loan and lease losses)	RIADC388	NR	M.4.

Schedule RI-B Part II — Changes in Allowance for Loan and Lease Losses


Dollar amounts in thousands
1. Balance most recently reported for the December 31, 2008, Reports of Condition and Income (i.e., after adjustments from amended Reports of Income)	RIADB522		55,600	1.
2. Recoveries	RIAD4605		0	2.
3. Charge-offs	RIADC079		103,461	3.
4. Write-downs arising from transfers of loans to a held-for-sale account	RIAD5523		13,012	4.
5. Provision for loan and lease losses	RIAD4230		213,381	5.
6. Adjustments	RIADC233		0	6.
7. Balance end of current period	RIAD3123		152,508	7.
1. Allocated transfer risk reserve included in Schedule RI-B, part II, item 7, above	RIADC435		0	M.1.
2. Separate valuation allowance for uncollectible retail credit card fees and finance charges.	RIADC389	NR		M.2.
3. Amount of allowance for loan and lease losses attributable to retail credit card fees and finance charges	RIADC390	NR		M.3.
4. Amount of allowance for post-acquisition losses on purchased impaired loans accounted for in accordance with AICPA Statement of Position 03-3 (included in Schedule RI-B, part II, item 7, above)	RIADC781		0	M.4.

Schedule RI-E — Explanations


Dollar amounts in thousands
1. Other noninterest income (from Schedule RI, item 5.l) Itemize and describe amounts greater than $25,000 that exceed 3% of Schedule RI, item 5.l:				1.
a. Income and fees from the printing and sale of checks	RIADC013		0	1.a.
b. Earnings on/increase in value of cash surrender value of life insurance	RIADC014		0	1.b.
c. Income and fees from automated teller machines (ATMs)	RIADC016		0	1.c.
d. Rent and other income from other real estate owned	RIAD4042		0	1.d.
e. Safe deposit box rent	RIADC015		0	1.e.
f. Net change in the fair values of financial instruments accounted for under a fair value option	RIADF229		0	1.f.
g. Bank card and credit card interchange fees	RIADF555		0	1.g.
h. Gains on bargain purchases	RIADJ447		0	1.h.
i. Disclose component and the dollar amount of that component:				1.i.
1. Describe component	TEXT4461	Income on investment		1.i.1.
2. Amount of component	RIAD4461		547	1.i.2.
j. Disclose component and the dollar amount of that component:				1.j.
1. Describe component	TEXT4462	FX currency gain/loss		1.j.1.
2. Amount of component	RIAD4462		2,809	1.j.2.


CAPITALSOURCE BANK		FFIEC 041
RSSD-ID 3806100		Quarter End Date 12/31/2009
Last Updated on 1/29/2010		8


Dollar amounts in thousands
k. Disclose component and the dollar amount of that component:				1.k.
1. Describe component	TEXT4463	click here for value		1.k.1.
2. Amount of component	RIAD4463		-3,425	1.k.2.
2. Other noninterest expense (from Schedule RI, item 7.d) Itemize and describe amounts greater than $25,000 that exceed 3% of Schedule RI, item 7.d:				2.
a. Data processing expenses	RIADC017		0	2.a.
b. Advertising and marketing expenses	RIAD0497		2,197	2.b
c. Directors’ fees	RIAD4136		0	2.c.
d. Printing, stationery, and supplies	RIADC018		0	2.d.
e. Postage	RIAD8403		0	2.e.
f. Legal fees and expenses	RIAD4141		0	2.f
g. FDIC deposit insurance assessments	RIAD4146	CONF		2.g
h. Accounting and auditing expenses	RIADF556		0	2.h.
i. Consulting and advisory expenses	RIADF557		1,380	2.i.
j. Automated teller machine (ATM) and interchange expenses	RIADF558		0	2.j.
k. Telecommunications expenses	RIADF559		1,613	2.k.
l. Disclose component and the dollar amount of that component:				2.l.
1. Describe component	TEXT4464	click here for value		2.1.1.
2. Amount of component	RIAD4464		14,624	2.I.2.
m. Disclose component and the dollar amount of that component:				2.m.
1. Describe component	TEXT4467	click here for value		2.m.1.
2. Amount of component	RIAD4467		3,704	2.m.2.
n. Disclose component and the dollar amount of that component:				2.n.
1. Describe component	TEXT4468			2.n.1.
2. Amount of component	RIAD4468		0	2.n.2.
3. Extraordinary items and other adjustments and applicable income tax effect (from Schedule RI, item 11):				3.
a. Disclose component, the gross dollar amount of that component, and its related income tax:				3.a.
1. Describe component	TEXT4469			3.a.1.
2. Amount of component	RIAD4469		0	3.a.2.
3. Applicable income tax effect	RIAD4486		0	3.a.3.
b. Disclose component, the gross dollar amount of that component, and its related income tax:				3.b.
1. Describe component	TEXT4487			3.b.1.
2. Amount of component	RIAD4487		0	3.b.2.
3. Applicable income tax effect	RIAD4488		0	3.b.3.
c. Disclose component, the gross dollar amount of that component, and its related income tax:				3.c.
1. Describe component	TEXT4489			3.c.1.
2. Amount of component	RIAD4489		0	3.c.2.
3. Applicable income tax effect	RIAD4491		0	3.c.3.
4. Restatements due to corrections of material accounting errors and changes in accounting principles (from Schedule RI-A, item 2):				4.
a. Cummulative effect of the initial application of FSP FAS 115-2 on other-than-temporary impairment	RIADG894		0	4.a.
b. Disclose component and the dollar amount of that component:				4.b.
1. Describe component	TEXTB527			4.b.1.
2. Amount of component	RIADB527		0	4.b.2
5. Other transactions with parent holding company (from Schedule RI-A, item 11):				5.


CAPITALSOURCE BANK		FFIEC 041
RSSD-ID 3806100		Quarter End Date 12/31/2009
Last Updated on 1/29/2010		9


Dollar amounts in thousands
a. Disclose component and the dollar amount of that component:				5.a.
1. Describe component	TEXT4498	click here for value
				5.a.1.
2. Amount of component	RIAD4498		20,000	5.a.2.
b. Disclose component and the dollar amount of that component:				5.b.
1. Describe component	TEXT4499			5.b.1.
2. Amount of component	RIAD4499		0	5.b.2.
6. Adjustments to allowance for loan and lease losses (from Schedule RI-B, part II, item 6):				6.
a. Disclose component and the dollar amount of that component:				6.a.
1. Describe component	TEXT4521			6.a.1.
2. Amount of component	RIAD4521		0	6.a.2.
b. Disclose component and the dollar amount of that component:				6.b.
1. Describe component	TEXT4522			6.b.1.
2. Amount of component	RIAD4522		0	6.b.2.
7. Other explanations:				7.
a. Comments?	RIAD4769	No		7.a.
b. Other explanations	TEXT4769			7.b.

(TEXT4463) Gain/Loss on derivatives

(TEXT4464) Intercompany loan sourcing fees

(TEXT4467) Provision for off-balance sheet

(TEXT4498) Capital contribution from parent

Schedule RC — Balance Sheet


Dollar amounts in thousands
1. Cash and balances due from depository institutions (from Schedule RC-A):			1.
a. Noninterest-bearing balances and currency and coin	RCON0081	117,081	1.a.
b. Interest-bearing balances	RCON0071	118,861	1.b.
2. Securities:			2.
a. Held-to-maturity securities (from Schedule RC-B, column A)	RCON1754	711,981	2.a.
b. Available-for-sale securities (from Schedule RC-B, column D)	RCON1773	1,017,898	2.b
3. Federal funds sold and securities purchased under agreements to resell:			3.
a. Federal funds sold	RCONB987	0	3.a.
b. Securities purchased under agreements to resell	RCONB989	0	3.b.
4. Loans and lease financing receivables (from Schedule RC-C):			4.
a. Loans and leases held for sale	RCON5369	0	4.a.
b. Loans and leases, net of unearned income	RCONB528	3,511,247	4.b.
c. LESS: Allowance for loan and lease losses	RCON3123	152,508	4.c.
d. Loans and leases, net of unearned income and allowance (item 4.b minus 4.c)	RCONB529	3,358,739	4.d.
5. Trading assets (from Schedule RC-D)	RCON3545	0	5.
6. Premises and fixed assets (including capitalized leases)	RCON2145	15,168	6.
7. Other real estate owned (from Schedule RC-M)	RCON2150	0	7.
8. Investments in unconsolidated subsidiaries and associated companies (from Schedule RC-M)	RCON2130	0	8.
9. Direct and indirect investments in real estate ventures	RCON3656	0	9.
10. Intangible assets:			10.
a. Goodwill	RCON3163	173,135	10.a.


CAPITALSOURCE BANK		FFIEC 041
RSSD-ID 3806100		Quarter End Date 12/31/2009
Last Updated on 1/29/2010		10


Dollar amounts in thousands
b. Other intangible assets (from Schedule RC-M)	RCON0426		216	10.b.
11. Other assets (from Schedule RC-F)	RCON2160		145,261	11.
12. Total assets (sum of items 1 through 11)	RCON2170		5,658,340	12.
13. Deposits:				13.
a. In domestic offices (sum of totals of columns A and C from Schedule RC-E)	RCON2200		4,483,983	13.a.
1. Noninterest-bearing	RCON6631		104	13.a.1.
2. Interest-bearing	RCON6636		4,483,879	13.a.2.
b. Not applicable				13.b.
14. Federal funds purchased and securities sold under agreements to repurchase:				14.
a. Federal funds purchased	RCONB993		0	14.a.
b. Securities sold under agreements to repurchase	RCONB995		0	14.b.
15. Trading liabilities (from Schedule RC-D)	RCON3548		0	15.
16. Other borrowed money (includes mortgage indebtedness and obligations under capitalized leases) (from Schedule RC-M)	RCON3190		200,000	16.
17. Not applicable				17.
18. Not applicable				18.
19. Subordinated notes and debentures	RCON3200		0	19.
20. Other liabilities (from Schedule RC-G)	RCON2930		132,032	20.
21. Total liabilities (sum of items 13 through 20)	RCON2948		4,816,015	21.
22. Not applicable				22.
23. Perpetual preferred stock and related surplus	RCON3838		0	23.
24. Common stock	RCON3230		921,000	24.
25. Surplus (exclude all surplus related to preferred stock)	RCON3839		23,876	25.
26. Not available				26.
a. Retained earnings	RCON3632		-105,188	26.a.
b. Accumulated other comprehensive income	RCONB530		2,637	26.b.
c. Other equity capital components	RCONA130		0	26.c.
27. Not available				27.
a. Total bank equity capital (sum of items 23 through 26.c)	RCON3210		842,325	27.a.
b. Noncontrollng (minority) interests in consolidated subsidiaries	RCON3000		0	27.b.
28. Total equity capital (sum of items 27.a and 27.b)	RCONG105		842,325	28.
29. Total liabilities and equity capital (sum of items 21 and 28)	RCON3300		5,658,340	29.
1. Indicate in the box at the right the number of the statement below that best describes the most comprehensive level of auditing work performed for the bank by independent external auditors as of any date during 2008	RCON6724	NR		M.1.
2. Bank’s fiscal year-end date	RCON8678	NR		M.2.

Schedule RC-A — Cash and Balances Due From Depository Institutions


Dollar amounts in thousands
1. Cash items in process of collection, unposted debits, and currency and coin:			1.
a. Cash items in process of collection and unposted debits	RCON0020	0	1.a.
b. Currency and coin	RCON0080	344	1.b.
2. Balances due from depository institutions in the U.S:			2.
a. U.S. branches and agencies of foreign banks	RCON0083	0	2.a.
b. Other commercial banks in the U.S. and other depository institutions in the U.S.	RCON0085	117,036	2.b.
3. Balances due from banks in foreign countries and foreign central banks:			3.
a. Foreign branches of other U.S. banks	RCON0073	0	3.a.
b. Other banks in foreign countries and foreign central banks	RCON0074	0	3.b.
4. Balances due from Federal Reserve Banks	RCON0090	118,562	4.
5. Total	RCON0010	235,942	5.


CAPITALSOURCE BANK		FFIEC 041
RSSD-ID 3806100		Quarter End Date 12/31/2009
Last Updated on 1/29/2010		11

Schedule RC-B — Securities

(Column A)

(Column B)

(Column C)

(Column D)

Held-to-maturity

Available-for-sale

Dollar amounts in thousands

Amortized Cost

Fair Value

Amortized Cost

Fair Value

RCON0211

RCON0213

RCON1286

RCON1287

1. U.S. Treasury securities

2. U.S. Government agency obligations (exclude mortgage-backed securities):

RCON1289

RCON1290

RCON1291

RCON1293

a. Issued by U.S. Government agencies

2.a.

RCON1294

RCON1295

RCON1297

RCON1298

b. Issued by U.S. Government-sponsored agencies

169,977

326,593

324,997

2.b.

RCON8496

RCON8497

RCON8498

RCON8499

3. Securities issued by states and political subdivisions in the U.S.

4. Mortgage-backed securities (MBS):

a. Residential mortgage pass-through securities:

4.a.

RCONG300

RCONG301

RCONG302

RCONG303

1. Guaranteed by GNMA

105,057

105,124

4.a.1.

RCONG304

RCONG305

RCONG306

RCONG307

2. Issued by FNMA and FHLMC

178,933

181,947

4.a.2.

RCONG308

RCONG309

RCONG310

RCONG311

3. Other pass-through securities

4.a.3.

b. Other residential mortgage-backed securities (include CMOs, REMICs, and stripped MBS):

4.b.

RCONG312

RCONG313

RCONG314

RCONG315

1. Issued or guaranteed by FNMA, FHLMC, or GNMA

128,863

131,320

4.b.1.

2. Collateralized by MBS issued or guaranteed by FNMA, FHLMC, or GNMA

RCONG316

RCONG317

RCONG318

RCONG319

4.b.2.

RCONG320

RCONG321

RCONG322

RCONG323

3. All other residential MBS

152,852

153,214

4.b.3.

c. Commercial MBS:

4.c.

RCONG324

RCONG325

RCONG326

RCONG327

1. Commercial mortgage pass-through securities

4.c.1.

RCONG328

RCONG329

RCONG330

RCONG331

2. Other commercial MBS

242,078

262,181

4.c.2.


CAPITALSOURCE BANK		FFIEC 041
RSSD-ID 3806100		Quarter End Date 12/31/2009
Last Updated on 1/29/2010		12

(Column A)

(Column B)

(Column C)

(Column D)

Held-to-maturity

Available-for-sale

Dollar amounts in thousands

Amortized Cost

Fair Value

Amortized Cost

Fair Value

5. Asset-backed securities and structured financial products:

RCONC026

RCONC988

RCONC989

RCONC027

a. Asset-backed securities (ABS)

5.a.

b. Structured financial products:

5.b.

RCONG336

RCONG337

RCONG338

RCONG339

1. Cash

5.b.1.

RCONG340

RCONG341

RCONG342

RCONG343

2. Synthetic

5.b.2.

RCONG344

RCONG345

RCONG346

RCONG347

3. Hybrid

5.b.3.

6. Other debt securities:

RCON1737

RCON1738

RCON1739

RCON1741

a. Other domestic debt securities

299,926

4,996

5,162

6.a.

RCON1742

RCON1743

RCON1744

RCON1746

b. Foreign debt securities

6.b.

7. Investments in mutual funds and other equity securities with readily determinable fair values

RCONA510

RCONA511

116,134

RCON1754

RCON1771

RCON1772

RCON1773

8. Total

711,981

732,084

1,013,428

1,017,898


CAPITALSOURCE BANK		FFIEC 041
RSSD-ID 3806100 Last Updated on 1/29/2010		Quarter End Date 12/31/2009 13

Schedule RC-B — Securities

Dollar amounts in thousands

1. Pledged securities

RCON0416

1,211,392

M.1.

2. Maturity and repricing data for debt securities (excluding those in nonaccrual status):

M.2.

a. Securities issued by the U.S. Treasury, U.S. Government agencies, and states and political subdivisions in the U.S.; other non-mortgage debt securities; and mortgage pass-through securities other than those backed by closed-end first lien 1-4 family residential mortgages with a remaining maturity or next repricing date of:

M.2.a.

1. Three months or less

RCONA549

544,910

M.2.a.1.

2. Over three months through 12 months

RCONA550

M.2.a.2.

3. Over one year through three years

RCONA551

69,738

M.2.a.3.

4. Over three years through five years

RCONA552

112,440

M.2.a.4.

5. Over five years through 15 years

RCONA553

72,974

M.2.a.5.

6. Over 15 years

RCONA554

M.2.a.6.

b. Mortgage pass-through securities backed by closed-end first lien 1-4 family residential mortgages with a remaining maturity or next repricing date of:

M.2.b.

1. Three months or less

RCONA555

M.2.b.1.

2. Over three months through 12 months

RCONA556

5,536

M.2.b.2.

3. Over one year through three years

RCONA557

M.2.b.3.

4. Over three years through five years

RCONA558

100,332

M.2.b.4.

5. Over five years through 15 years

RCONA559

100,656

M.2.b.5.

6. Over 15 years

RCONA560

80,547

M.2.b.6.

c. Other mortgage-backed securities (include CMOs, REMICs, and stripped MBS; exclude mortgage pass-through securities) with an expected average life of:

M.2.c.

1. Three years or less

RCONA561

423,545

M.2.c.1.

2. Over three years

RCONA562

103,067

M.2.c.2.

d. Debt securities with a REMAINING MATURITY of one year or less (included in Memorandum items 2.a through 2.c above)

RCONA248

544,910

M.2.d.

3. Amortized cost of held-to-maturity securities sold or transferred to available-for-sale or trading securities during the calendar year-to-date (report the amortized cost at date of sale or transfer)

RCON1778

M.3.

4. Structured notes (included in the held-to-maturity and available-for-sale accounts in Schedule RC-B, items 2, 3, 5, and 6):

M.4.

a. Amortized cost

RCON8782

55,795

M.4.a.

b. Fair value

RCON8783

55,523

M.4.b.


CAPITALSOURCE BANK RSSD-ID 3806100 Last Updated on 1/29/2010		FFIEC 041 Quarter End Date 12/31/2009 14

Schedule RC-B — Securities

(Column A)

(Column B)

(Column C)

(Column D)

Held-to-maturity

Available-for-sale

Dollar amounts in thousands

Amortized Cost

Fair Value

Amortized Cost

Fair Value

5. Asset-backed securities (ABS) (for each column, sum of Memorandum items 5.a through 5.f must equal Schedule RC-B, item 5.a):

M.5.

RCONB838

RCONB839

RCONB840

RCONB841

a. Credit card receivables

M.5.a.

RCONB842

RCONB843

RCONB844

RCONB845

b. Home equity lines

M.5.b.

RCONB846

RCONB847

RCONB848

RCONB849

c. Automobile loans

M.5.c.

RCONB850

RCONB851

RCONB852

RCONB853

d. Other consumer loans

M.5.d.

RCONB854

RCONB855

RCONB856

RCONB857

e. Commercial and industrial loans

M.5.e.

RCONB858

RCONB859

RCONB860

RCONB861

f. Other

M.5.f.

6. Structured financial products by underlying collateral or reference assets (for each column, sum of Memorandum items 6.a through 6.g must equal Schedule RC-B, sum of items 5.b(1) through(3)):

M.6.

a. Trust preferred securities issued by financial institutions

RCONG348

RCONG349

RCONG350

RCONG351

M.6.a.

b. Trust preferred securities issued by real estate investment trusts

RCONG352

RCONG353

RCONG354

RCONG355

M.6.b.

RCONG356

RCONG357

RCONG358

RCONG359

c. Corporate and similar loans

M.6.c.

d. 1-4 family residential MBS issued or guaranteed by U.S. government-sponsored enterprises (GSEs)

RCONG360

RCONG361

RCONG362

RCONG363

M.6.d.

e. 1-4 family residential MBS not issued or guaranteed by GSEs

RCONG364

RCONG365

RCONG366

RCONG367

M.6.e.

f. Diversified (mixed) pools of structured financial products

RCONG368

RCONG369

RCONG370

RCONG371

M.6.f.

RCONG372

RCONG373

RCONG374

RCONG375

g. Other collateral or reference assets

M.6.g.


CAPITALSOURCE BANK		FFIEC 041
RSSD-ID 3806100		Quarter End Date 12/31/2009
Last Updated on 1/29/2010		15

Schedule RC-C Part I — Loans and Leases

(Column A) To Be

Completed by Banks

with $300 Million or More

(Column B) To Be

Dollar amounts in thousands

in Total Assets

Completed by All Banks

1. Loans secured by real estate:

a. Construction, land development, and other land loans:

1.a.

1. 1-4 family residential construction loans

RCONF158

1.a.1.

2. Other construction loans and all land development and other land loans

RCONF159

376,471

1.a.2.

b. Secured by farmland (including farm residential and other improvements)

RCON1420

1.b.

c. Secured by 1-4 family residential properties:

1.c.

1. Revolving, open-end loans secured by 1-4 family residential properties and extended under lines of credit

RCON1797

1.c.1.

2. Closed-end loans secured by 1-4 family residential properties:

1.c.2.

a. Secured by first liens

RCON5367

1.c.2.a.

b. Secured by junior liens

RCON5368

1.c.2.b.

d. Secured by multifamily (5 or more) residential properties

RCON1460

105,550

1.d.

e. Secured by nonfarm nonresidential properties:

1.e.

1. Loans secured by owner-occupied nonfarm nonresidential properties

RCONF160

1.e.1.

2. Loans secured by other nonfarm nonresidential properties

RCONF161

960,346

1.e.2.

2. Loans to depository institutions and acceptances of other banks

RCON1288

a. To commercial banks in the U.S.:

2.a.

1. To U.S. branches and agencies of foreign banks

RCONB532

2.a.1.

2. To other commercial banks in the U.S

RCONB533

2.a.2.

b. To other depository institutions in the U.S

RCONB534

2.b.

c. To banks in foreign countries:

2.c.

1. To foreign branches of other U.S. banks

RCONB536

2.c.1.

2. To other banks in foreign countries

RCONB537

2.c.2.

3. Loans to finance agricultural production and other loans to farmers

RCON1590

4. Commercial and industrial loans

RCON1766

1,212,372

a. To U.S. addressees (domicile)

RCON1763

1,172,674

4.a.

b. To non-U.S. addressees (domicile)

RCON1764

39,698

4.b.

5. Not applicable

6. Loans to individuals for household, family, and other personal expenditures (i.e., consumer loans) (includes purchased paper):

a. Credit cards

RCONB538

6.a.

b. Other revolving credit plans

RCONB539

6.b.

c. Other consumer loans (includes single payment, installment, and all student loans)

RCON2011

6.c.

7. Loans to foreign governments and official institutions (including foreign central banks)

RCON2081

8. Obligations (other than securities and leases) of states and political subdivisions in the U.S

RCON2107

9. Other loans

RCON1563

856,508

a. Loans for purchasing or carrying securities (secured and unsecured)

RCON1545

32,290

9.a.

b. All other loans (exclude consumer loans)

RCON1564

824,218

9.b.

10. Lease financing receivables (net of unearned income)

RCON2165

10.

a. Leases to individuals for household, family, and other personal expenditures (i.e., consumer leases)

RCONF162

10.a.


CAPITALSOURCE BANK		FFIEC 041
RSSD-ID 3806100		Quarter End Date 12/31/2009
Last Updated on 1/29/2010		16

(Column A) To Be

Completed by Banks

with $300 Million or More

(Column B) To Be

Dollar amounts in thousands

in Total Assets

Completed by All Banks

b. All other leases

RCONF163

10.b.

11. Any unearned income on loans reflected in items 1-9 above

RCON2123

11.

12. Total loans and leases, net of unearned income

RCON2122

3,511,247

12.

Schedule RC-C Part I — Loans and Leases


Dollar amounts in thousands
1. Loans and leases restructured and in compliance with modified terms (included in Schedule RC-C, part I, and not reported as past due or nonaccrual in Schedule RC-N, Memorandum item 1):				M.1.
a. Loans secured by 1-4 family residential properties	RCONF576		0	M.1.a.
b. Other loans and all leases (exclude loans to individuals for household, family, and other personal expenditures)	RCON1616		0	M.1.b.
2. Maturity and repricing data for loans and leases (excluding those in nonaccrual status):				M.2.
a. Closed-end loans secured by first liens on 1-4 family residential properties (reported in Schedule RC-C, part I, item 1.c.(2)(a), column B, above) with a remaining maturity or next repricing date of:				M.2.a.
1. Three months or less	RCONA564		0	M.2.a.1.
2. Over three months through 12 months	RCONA565		0	M.2.a.2.
3. Over one year through three years	RCONA566		0	M.2.a.3.
4. Over three years through five years	RCONA567		0	M.2.a.4.
5. Over five years through 15 years	RCONA568		0	M.2.a.5.
6. Over 15 years	RCONA569		0	M.2.a.6.
b. All loans and leases (reported in Schedule RC-C, part I, items 1 through 10, column B, above) EXCLUDING closed-end loans secured by first liens on 1-4 family residential properties (reported in Schedule RC-C, part I, item 1.c.(2)(a), column B, above) with a remaining maturity or next repricing date of:				M.2.b.
1. Three months or less	RCONA570		3,224,636	M.2.b.1.
2. Over three months through 12 months	RCONA571		52,260	M.2.b.2.
3. Over one year through three years	RCONA572		36,924	M.2.b.3.
4. Over three years through five years	RCONA573		15,345	M.2.b.4.
5. Over five years through 15 years	RCONA574		14,430	M.2.b.5.
6. Over 15 years	RCONA575		0	M.2.b.6.
c. Loans and leases (reported in Schedule RC-C, part I, items 1 through 10, column B, above) with a REMAINING MATURITY of one year or less (excluding those in nonaccrual status)	RCONA247		1,095,220	M.2.c.
3. Loans to finance commercial real estate, construction, and land development activities (not secured by real estate) included in Schedule RC-C, part I, items 4 and 9, column B	RCON2746		824,218	M.3.
4. Adjustable rate closed-end loans secured by first liens on 1-4 family residential properties (included in Schedule RC-C, part I, item 1.c.(2)(a), column B)	RCON5370		0	M.4.
5. Loans secured by real estate to non-U.S. addressees (domicile) (included in Schedule RC-C, part I, items 1.a through 1.e, column B)	RCONB837		0	M.5.
6. Outstanding credit card fees and finance charges included in Schedule RC-C, part I, item 6.a	RCONC391	NR		M.6.
7. Purchased impaired loans held for investment accounted for in accordance with AICPA Statement of Position 03-3 (exclude loans held for sale):				M.7.
a. Outstanding balance	RCONC779		13,330	M.7.a.
b. Carrying amount included in Schedule RC-C, part I, items 1 through 9	RCONC780		12,366	M.7.b.
8. Closed-end loans with negative amortization features secured by 1-4 family residential properties:				M.8.


CAPITALSOURCE BANK		FFIEC 041
RSSD-ID 3806100		Quarter End Date 12/31/2009
Last Updated on 1/29/2010		17


Dollar amounts in thousands
a. Total carrying amount of closed-end loans with negative amortization features secured by 1-4 family residential properties (included in Schedule RC-C, part I, items 1.c.(2)(a) and 1.c.(2)(b))	RCONF230		0	M.8.a.
b. Total maximum remaining amount of negative amortization contractually permitted on closed-end loans secured by 1-4 family residential properties	RCONF231	NR		M.8.b.
c. Total amount of negative amortization on closed-end loans secured by 1-4 family residential properties included in the carrying amount reported in Memorandum item 8.a above	RCONF232	NR		M.8.c.
9. Loans secured by 1-4 family residential properties in process of foreclosure (included in Schedule RC-C, part I, items 1.c.(1), 1.c.(2)(a), and 1.c.(2)(b))	RCONF577		0	M.9.
10. Loans measured at fair value (included in Schedule RC-C, part I, items 1 through 9):				M.10.
a. Loans secured by real estate:				M.10.a.
1. Construction, land development, and other land loans	RCONF578	NR		M.10.a.1.
2. Secured by farmland (including farm residential and other improvements)	RCONF579	NR		M.10.a.2.
3. Secured by 1-4 family residential properties:				M.10.a.3.
a. Revolving, open-end loans secured by 1-4 family residential properties and extended under lines of credit	RCONF580	NR		M.10.a.3.a.
b. Closed-end loans secured by 1-4 family residential properties:				M.10.a.3.b.
1. Secured by first liens	RCONF581	NR		M.10.a.3.b.1.
2. Secured by junior liens	RCONF582	NR		M.10.a.3.b.2.
4. Secured by multifamily (5 or more) residential properties	RCONF583	NR		M.10.a.4.
5. Secured by nonfarm nonresidential properties	RCONF584	NR		M.10.a.5.
b. Commercial and industrial loans	RCONF585	NR		M.10.b.
c. Loans to individuals for household, family, and other personal expenditures (i.e., consumer loans) (includes purchased paper):				M.10.c.
1. Credit cards	RCONF586	NR		M.10.c.1.
2. Other revolving credit plans	RCONF587	NR		M.10.c.2.
3. Other consumer loans (includes single payment, installment, and all student loans)	RCONF588	NR		M.10.c.3.
d. Other loans	RCONF589	NR		M.10.d.
11. Unpaid principal balance of loans measured at fair value (reported in Schedule RC-C, part I, Memorandum item 10):				M.11.
a. Loans secured by real estate:				M.11.a.
1. Construction, and land development, and other land loans	RCONF590	NR		M.11.a.1.
2. Secured by farmland (including farm residential and other improvements)	RCONF591	NR		M.11.a.2.
3. Secured by 1-4 family residential properties:				M.11.a.3.
a. Revolving, open-end loans secured by 1-4 family residential properties and extended under lines of credit	RCONF592	NR		M.11.a.3.a.
b. Closed-end loans secured by 1-4 family residential properties:				M.11.a.3.b.
1. Secured by first liens	RCONF593	NR		M.11.a.3.b.1.
2. Secured by junior liens	RCONF594	NR		M.11.a.3.b.2.
4. Secured by multifamily (5 or more) residential properties	RCONF595	NR		M.11.a.4.
5. Secured by nonfarm nonresidential properties	RCONF596	NR		M.11.a.5.
b. Commercial and industrial loans	RCONF597	NR		M.11.b.
c. Loans to individuals for household, family, and other personal expenditures (i.e., consumer loans) (includes purchased paper):				M.11.c.
1. Credit cards	RCONF598	NR		M.11.c.1.
2. Other revolving credit plans	RCONF599	NR		M.11.c.2.
3. Other consumer loans (includes single payment, installment, and all student loans)	RCONF600	NR		M.11.c.3.
d. Other loans	RCONF601	NR		M.11.d.


CAPITALSOURCE BANK		FFIEC 041
RSSD-ID 3806100		Quarter End Date 12/31/2009
Last Updated on 1/29/2010		18

Schedule RC-C Part I — Loans and Leases

(Column C) Best

(Column B)

estimate at

(Column A) Fair

Gross

acquisition date

value of

contractual

of contractual

acquired loans

amounts

cash flows not

and leases at

receivable at

expected to be

Dollar amounts in thousands

acquisition date

collected

12. Loans (not subject to the requirements of AICPA Statement of Position 03-3) and leases held for investment that were acquired in business combinations with acquisition dates in the current calendar year:

M.12.

RCONG091

RCONG092

RCONG093

a. Loans secured by real estate

M.12.a.

RCONG094

RCONG095

RCONG096

b. Commercial and industrial loans

M.12.b.

c. Loans to individuals for household,

RCONG097

RCONG098

RCONG099

family, and other personal expenditures

M.12.c.

RCONG100

RCONG101

RCONG102

d. All other loans and all leases

M.12.d.

Schedule RC-C Part I — Loans and Leases


Dollar amounts in thousands
13. Construction, land development, and other land loans in domestic offices with interest reserves:				M.13.
a. Amount of loans that provide for the use of interest reserves (included in Schedule RC-C, part I, item 1.a, column B)	RCONG376	NR		M.13.a.
b. Amount of interest capitalized from interest reserves on construction, land development, and other land loans that is included in interest and fee income on loans during the quarter (included in Schedule RI, item 1.a.(1)(a)(2))	RIADG377	NR		M.13.b.
14. Pledged loans and leases	RCONG378		0	M.14.

Schedule RC-C Part II — Loans to Small Businesses and Small Farms

Dollar amounts in thousands

1. Indicate in the appropriate box at the right whether all or substantially all of the dollar volume of your bank’s “Loans secured by nonfarm nonresidential properties” reported in Schedule RC-C, part I, items 1.e.(1) and 1.e.(2), and all or substantially all of the dollar volume of your bank’s “Commercial and industrial loans” reported in Schedule RC-C, part

RCON6999

I, item 4, have original amounts of $100,000 or less

2. Report the total number of loans currently outstanding for each of the following Schedule RC-C, part I, loan categories:

a. “Loans secured by nonfarm nonresidential properties” reported in Schedule RC-C, part I, items 1.e.(1) and 1.e.(2)

RCON5562

2.a.

b. “Commercial and industrial loans” reported in Schedule RC-C, part I, item 4

RCON5563

2.b.

Schedule RC-C Part II — Loans to Small Businesses and Small Farms

(Column B) Amount

Dollar amounts in thousands

(Column A) Number of Loans

Currently Outstanding

3. Number and amount currently outstanding of “Loans secured by nonfarm nonresidential properties” reported in Schedule RC-C, part I, items 1.e.(1) and 1.e.(2):

a. With original amounts of $100,000 or less

RCON5564

RCON5565

3.a.

b. With original amounts of more than $100,000 through $250,000

RCON5566

RCON5567

3.b.


CAPITALSOURCE BANK		FFIEC 041
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(Column A) Number of

(Column B) Amount

Dollar amounts in thousands

Loans

Currently Outstanding

c. With original amounts of more than $250,000 through $1,000,000

RCON5568

RCON5569

3.c.

4. Number and amount currently outstanding of “Commercial and industrial loans” reported in Schedule RC-C, part I, item 4:

a. With original amounts of $100,000 or less

RCON5570

RCON5571

4.a.

b. With original amounts of more than $100,000 through $250,000

RCON5572

RCON5573

4.b.

c. With original amounts of more than $250,000 through $1,000,000

RCON5574

RCON5575

4.c.

Schedule RC-C Part II — Loans to Small Businesses and Small Farms

Dollar amounts in thousands

5. Indicate in the appropriate box at the right whether all or substantially all of the dollar volume of your bank’s “Loans secured by farmland (including farm residential and other improvements)” reported in Schedule RC-C, part I, item 1.b, and all or substantially all of the dollar volume of your bank’s “Loans to finance agricultural production and other loans to farmers” reported in Schedule RC-C, part I, item 3, have original amounts of $100,000 or less

RCON6860

6. Report the total number of loans currently outstanding for each of the following Schedule RC-C, part I, loan categories:

a. “Loans secured by farmland (including farm residential and other improvements)” reported in Schedule RC-C, part I, item 1.b

RCON5576

6.a.

b. “Loans to finance agricultural production and other loans to farmers” reported in Schedule RC-C, part I, item 3

RCON5577

6.b.

Schedule RC-C Part II — Loans to Small Businesses and Small Farms

(Column A) Number of

(Column B) Amount

Dollar amounts in thousands

Loans

Currently Outstanding

7. Number and amount currently outstanding of “Loans secured by farmland (including farm residential and other improvements)” reported in Schedule RC-C, part I, item 1.b:

a. With original amounts of $100,000 or less

RCON5578

RCON5579

7.a.

b. With original amounts of more than $100,000 through $250,000

RCON5580

RCON5581

7.b.

c. With original amounts of more than $250,000 through $500,000

RCON5582

RCON5583

7.c.

8. Number and amount currently outstanding of “Loans to finance agricultural production and other loans to farmers” reported in Schedule RC-C, part I, item 3:

a. With original amounts of $100,000 or less

RCON5584

RCON5585

8.a.

b. With original amounts of more than $100,000 through $250,000

RCON5586

RCON5587

8.b.

c. With original amounts of more than $250,000 through $500,000

RCON5588

RCON5589

8.c.

Schedule RC-D — Trading Assets and Liabilities

Dollar amounts in thousands

1. U.S. Treasury securities

RCON3531

2. U.S. Government agency obligations (exclude mortgage-backed securities)

RCON3532

3. Securities issued by states and political subdivisions in the U.S

RCON3533

4. Mortgage-backed securities (MBS):

a. Residential mortgage pass-through securities issued or guaranteed by FNMA, FHLMC, or GNMA

RCONG379

4.a.

b. Other residential MBS issued or guaranteed by FNMA, FHLMC, or GNMA (include CMOs, REMICs, and stripped MBS)

RCONG380

4.b.

c. All other residential MBS

RCONG381

4.c.

d. Commercial MBS

RCONG382

4.d.


CAPITALSOURCE BANK		FFIEC 041
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Last Updated on 1/29/2010		20

Dollar amounts in thousands

5. Other debt securities:

a. Structured financial products:

5.a.

1. Cash

RCONG383

5.a.1.

2. Synthetic

RCONG384

5.a.2.

3. Hybrid

RCONG385

5.a.3.

b. All other debt securities

RCONG386

5.b.

6. Loans:

a. Loans secured by real estate:

6.a.

1. Construction, land development, and other land loans

RCONF604

6.a.1.

2. Secured by farmland (including farm residential and other improvements)

RCONF605

6.a.2.

3. Secured by 1-4 family residential properties:

6.a.3.

a. Revolving, open-end loans secured by 1-4 family residential properties and extended under lines of credit

RCONF606

6.a.3.a.

b. Closed-end loans secured by 1-4 family residential properties:

6.a.3.b.

1. Secured by first liens

RCONF607

6.a.3.b.1.

2. Secured by junior liens

RCONF611

6.a.3.b.2.

4. Secured by multifamily (5 or more) residential properties

RCONF612

6.a.4.

5. Secured by nonfarm nonresidential properties

RCONF613

6.a.5.

b. Commercial and industrial loans

RCONF614

6.b.

c. Loans to individuals for household, family, and other personal expenditures (i.e., consumer loans) (includes purchased paper):

6.c.

1. Credit cards

RCONF615

6.c.1.

2. Other revolving credit plans

RCONF616

6.c.2.

3. Other consumer loans (includes single payment, installment, and all student loans)

RCONF617

6.c.3.

d. Other loans

RCONF618

6.d.

7. Not applicable

8. Not applicable

9. Other trading assets

RCON3541

10. Not applicable

10.

11. Derivatives with a positive fair value

RCON3543

11.

12. Total trading assets

RCON3545

12.

13. Not available

13.

a. Liability for short positions

RCON3546

13.a.

b. Other trading liabilities

RCONF624

13.b.

14. Derivatives with a negative fair value

RCON3547

14.

15. Total trading liabilities

RCON3548

15.

1. Unpaid principal balance of loans measured at fair value (reported in Schedule RC-D, items 6.a.(1) through 6.d):

M.1.

a. Loans secured by real estate:

M.1.a.

1. Construction, land development, and other land loans

RCONF625

M.1.a.1.

2. Secured by farmland (including farm residential and other improvements)

RCONF626

M.1.a.2.

3. Secured by 1-4 family residential properties:

M.1.a.3.

a. Revolving, open-end loans secured by 1-4 family residential properties and extended under lines of credit

RCONF627

M.1.a.3.a.

b. Closed-end loans secured by 1-4 family residential properties:

M.1.a.3.b.

1. Secured by first liens

RCONF628

M.1.a.3.b.1.

2. Secured by junior liens

RCONF629

M.1.a.3.b.2.

4. Secured by multifamily (5 or more) residential properties

RCONF630

M.1.a.4.

5. Secured by nonfarm nonresidential properties

RCONF631

M.1.a.5.

b. Commercial and industrial loans

RCONF632

M.1.b.


CAPITALSOURCE BANK		FFIEC 041
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Last Updated on 1/29/2010		21

Dollar amounts in thousands

c. Loans to individuals for household, family, and other personal expenditures (i.e., consumer loans) (includes purchased paper):

M.1.c.

1. Credit cards

RCONF633

M.1.c.1.

2. Other revolving credit plans

RCONF634

M.1.c.2.

3. Other consumer loans (includes single payment, installment, and all student loans)

RCONF635

M.1.c.3.

d. Other loans

RCONF636

M.1.d.

2. Loans measured at fair value that are past due 90 days or more:

M.2.

a. Fair value

RCONF639

M.2.a.

b. Unpaid principal balance

RCONF640

M.2.b.

3. Structured financial products by underlying collateral or reference assets (sum of Memorandum items 3.a through 3.g must equal Schedule RC-D, sum of items 5.a.(1) through (3)):

M.3.

a. Trust preferred securities issued by financial institutions

RCONG299

M.3.a.

b. Trust preferred securities issued by real estate investment trusts

RCONG332

M.3.b.

c. Corporate and similar loans

RCONG333

M.3.c.

d. 1-4 family residential MBS issued or guaranteed by U.S. government-sponsored enterprises (GSEs)

RCONG334

M.3.d.

e. 1-4 family residential MBS not issued or guaranteed by GSEs

RCONG335

M.3.e.

f. Diversified (mixed) pools of structured financial products

RCONG651

M.3.f.

g. Other collateral or reference assets

RCONG652

M.3.g.

4. Pledged trading assets:

M.4.

a. Pledged securities

RCONG387

M.4.a.

b. Pledged loans

RCONG388

M.4.b.

5. Asset-backed securities:

M.5.

a. Credit card receivables

RCONF643

M.5.a.

b. Home equity lines

RCONF644

M.5.b.

c. Automobile loans

RCONF645

M.5.c.

d. Other consumer loans

RCONF646

M.5.d.

e. Commercial and industrial loans

RCONF647

M.5.e.

f. Other

RCONF648

M.5.f.

6. Retained beneficial interests in securitizations (first-loss or equity tranches)

RCONF651

M.6.

7. Equity securities:

M.7.

a. Readily determinable fair values

RCONF652

M.7.a.

b. Other

RCONF653

M.7.b.

8. Loans pending securitization

RCONF654

M.8.

9. Other trading assets (itemize and describe amounts included in Schedule RC-D, item 9, that are greater than $25,000 and exceed 25% of the item):

M.9.

a. Disclose component and the dollar amount of that component:

M.9.a.

1. Describe component

TEXTF655

M.9.a.1.

2. Amount of component

RCONF655

M.9.a.2.

b. Disclose component and the dollar amount of that component:

M.9.b.

1. Describe component

TEXTF656

M.9.b.1.

2. Amount of component

RCONF656

M.9.b.2.

c. Disclose component and the dollar amount of that component:

M.9.c.

1. Describe component

TEXTF657

M.9.c.1.

2. Amount of component

RCONF657

M.9.c.2.

10. Other trading liabilities (itemize and describe amounts included in Schedule RC-D, item 13.b, that are greater than $25,000 and exceed 25% of the item):

M.10.

a. Disclose component and the dollar amount of that component:

M.10.a.

1. Describe component

TEXTF658

M.10.a.1.

2. Amount of component

RCONF658

M.10.a.2.


CAPITALSOURCE BANK		FFIEC 041
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Last Updated on 1/29/2010		22


Dollar amounts in thousands
b. Disclose component and the dollar amount of that component:			M.10.b.
1. Describe component	TEXTF659		M.10.b.1.
2. Amount of component	RCONF659	NR	M.10.b.2.
c. Disclose component and the dollar amount of that component:			M.10.c.
1. Describe component	TEXTF660		M.10.c.1.
2. Amount of component	RCONF660	NR	M.10.c.2.

Schedule RC-E — Deposit Liabilities

(Column A)

Transaction

(Column B)

(Column C)

Accounts Total

Transaction

Nontransaction

transaction

Accounts Memo:

Accounts Total

accounts

Total demand

nontransaction

(including total

deposits

accounts

demand

(included in

(including

Dollar amounts in thousands

deposits)

column A)

MMDAs)

Deposits of:

1. Individuals, partnerships, and corporations (include all certified and

RCONB549

RCONB550

official checks)

4,483,879

RCON2202

RCON2520

2. U.S. Government

104

3. States and political subdivisions in the U.S.

RCON2203

RCON2530

RCONB551

RCONB552

4. Commercial banks and other depository institutions in the U.S.

RCON2213

RCON2236

5. Banks in foreign countries

RCON2216

RCON2377

6. Foreign governments and official institutions (including foreign central banks)

RCON2215

RCON2210

RCON2385

7. Total

104

4,483,879

Schedule RC-E — Deposit Liabilities


Dollar amounts in thousands
1. Selected components of total deposits:			M.1.
a. Total Individual Retirement Accounts (IRAs) and Keogh Plan accounts	RCON6835	374,939	M.1.a.
b. Total brokered deposits	RCON2365	0	M.1.b.
c. Fully insured brokered deposits (included in Memorandum item 1.b above):			M.1.c.
1. Brokered deposits issued in denominations of less than $100,000	RCON2343	0	M.1.c.1.
2. Brokered deposits issued in denominations of $100,000 and certain brokered	RCON2344	0	M.1.c.2.
retirement deposit accounts
d. Maturity data for brokered deposits:			M.1.d.
1. Brokered deposits issued in denominations of less than $100,000 with a remaining	RCONA243	0	M.1.d.1.
maturity of one year or less (included in Memorandum item 1 .c.(1) above)
2. Brokered deposits issued in denominations of $100,000 or more with a remaining	RCONA244	0	M.1.d.2.
maturity of one year or less
e. Preferred deposits (uninsured deposits of states and political subdivisions in the U.S.	RCON5590	0	M.1.e.
reported in item 3 above which are secured or collateralized as required under state law) (to be completed for the December report only)
2. Components of total nontransaction accounts:			M.2.


CAPITALSOURCE BANK		FFIEC 041
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Last Updated on 1/29/2010		23


Dollar amounts in thousands
a. Savings deposits:			M.2.a.
1. Money market deposit accounts (MMDAs)	RCON6810	258,283	M.2.a.1.
2. Other savings deposits (excludes MMDAs)	RCON0352	599,084	M.2.a.2.
b. Total time deposits of less than $100,000	RCON6648	2,129,055	M.2.b.
c. Total time deposits of $100,000 or more	RCON2604	1,497,457	M.2.c.
1. Individual Retirement Accounts (IRAs) and Keogh Plan accounts included in Memorandum item 2.c, “Total time deposits of $100,000 or more,” above	RCONF233	106,282	M.2.c.1.
3.Maturity and repricing data for time deposits of less than $100,000:			M.3.
a. Time deposits of less than $100,000 with a remaining maturity or next repricing date of:			M.3.a.
1. Three months or less	RCONA579	876,555	M.3.a.1.
2. Over three months through 12 months	RCONA580	1,122,570	M.3.a.2.
3. Over one year through three years	RCONA581	118,179	M.3.a.3.
4. Over three years	RCONA582	11,751	M.3.a.4.
b. Time deposits of less than $100,000 with a REMAINING MATURITY of one year or less (included in Memorandum items 3.a.(1) and 3.a.(2) above)	RCONA241	1,999,125	M.3.b.
4.Maturity and repricing data for time deposits of $100,000 or more:			M.4.
a. Time deposits of $100,000 or more with a remaining maturity or next repricing date of:			M.4.a.
1. Three months or less	RCONA584	535,733	M.4.a.1.
2. Over three months through 12 months	RCONA585	837,519	M.4.a.2.
3. Over one year through three years	RCONA586	112,111	M.4.a.3.
4. Over three years	RCONA587	12,094	M.4.a.4.
b. Time deposits of $100,000 or more with a REMAINING MATURITY of one year or less (included in Memorandum items 4.a.(1) and 4.a.(2) above)	RCONA242	1,373,252	M.4.b.

Schedule RC-F — Other Assets


Dollar amounts in thousands
1. Accrued interest receivable	RCONB556		18,258	1.
2. Net deferred tax assets	RCON2148		0	2.
3. Interest-only strips receivable (not in the form of a security) on:				3.
a. Mortgage loans	RCONA519		0	3.a.
b. Other financial assets	RCONA520		0	3.b
4. Equity securities that DO NOT have readily determinable fair values	RCON1752		29,553	4.
5. Life insurance assets	RCONC009		0	5.
6. All other assets	RCON2168		97,450	6.
a. Prepaid expenses	RCON2166		0	6 a.
b. Repossessed personal property (including vehicles)	RCON1578		0	6.b.
c. Derivatives with a positive fair value held for purposes other than trading	RCONC010		0	6.c.
d. Retained interests in accrued interest receivable related to securitized credit cards	RCONC436		0	6.d.
e. FDIC loss-sharing indemnification assets	RCONJ448		0	6.e.
f. Prepaid deposit insurance assessments	RCONJ449	CONF		6.f.
g. Disclose component and the dollar amount of that component:				6.g.
1. Describe component	TEXT3549	CRA Investment		6.g.1.
2. Amount of component	RCON3549		23,786	6.g.2.
h. Disclose component and the dollar amount of that component:				6.h.
1. Describe component	TEXT3550	Click here for value		6.h.1.
2. Amount of component	RCON3550		30,235	6.h.2.
i. Disclose component and the dollar amount of that component:				6.i.
1. Describe component	TEXT3551			6.i.1.


CAPITALSOURCE BANK		FFIEC 041
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Dollar amounts in thousands
2. Amount of component	RCON3551	0	6.i.2
7. Total	RCON2160	145,261	7.

(TEXT3550) Intercompany receivable

Schedule RC-G — Other Liabilities


Dollar amounts in thousands
1. Not available				1.
a. Interest accrued and unpaid on deposits	RCON3645		24	1.a.
b. Other expenses accrued and unpaid (includes accrued income taxes payable)	RCON3646		47,489	1.b.
2. Net deferred tax liabilities	RCON3049		6,986	2.
3. Allowance for credit losses on off-balance sheet credit exposures	RCONB557		3,800	3.
4. All other liabilities	RCON2938		73,733	4.
a. Accounts payable	RCON3066		0	4.a.
b. Deferred compensation liabilities	RCONC011		0	4.b.
c. Dividends declared but not yet payable	RCON2932		0	4.c.
d. Derivatives with a negative fair value held for purposes other than trading	RCONC012		0	4.d.
e. Disclose component and the dollar amount of that component:				4.e.
1. Describe component	TEXT3552	Click here for value		4.e.1.
2. Amount of component	RCON3552		42,779	4.e.2.
f. Disclose component and the dollar amount of that component:				4.f.
1. Describe component	TEXT3553	Securities trade date clearing		4.f.1.
2. Amount of component	RCON3553		20,245	4.f.2.
g. Disclose component and the dollar amount of that component:				4.g.
1. Describe component	TEXT3554			4.g.1.
2. Amount of component	RCON3554		0	4.a.2.
5. Total	RCON2930		132,032	5.

(TEXT3552) Intercompany payable

Schedule RC-K — Quarterly Averages


Dollar amounts in thousands
1. Interest-bearing balances due from depository institutions	RCON3381	90,894	1.
2. U.S. Treasury securities and U.S. Government agency obligations (excluding mortgage-backed securities)	RCONB558	384,508	2.
3. Mortgage-backed securities	RCONB559	786,550	3.
4. All other securities (includes securities issued by states and political subdivisions in the U.S.)	RCONB560	475,087	4.
5. Federal funds sold and securities purchased under agreements to resell	RCON3365	0	5.
6. Loans:			6.
a. Total loans	RCON3360	3,586,259	6 a.
b. Loans secured by real estate:			6.b.
1. Loans secured by 1-4 family residential properties	RCON3465	0	6.b.1.
2. All other loans secured by real estate	RCON3466	1,430,686	6 b.2.
c. Commercial and industrial loans	RCON3387	1,202,553	6.c.
d. Loans to individuals for household, family, and other personal expenditures:			6.d.
1. Credit cards	RCONB561	0	6.d.1.


CAPITALSOURCE BANK		FFIEC 041
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Last Updated on 1/29/2010		25


Dollar amounts in thousands
2. Other (includes single payment, installment, all student loans, and revolving credit plans other than credit cards)	RCONB562	0	6.d. 2.
7. Trading assets	RCON3401	0	7.
8. Lease financing receivables (net of unearned income)	RCON3484	0	8.
9. Total assets	RCON3368	5,629,210	9.
10. Interest-bearing transaction accounts (NOW accounts, ATS accounts, and telephone and preauthorized transfer accounts) (exclude demand deposits)	RCON3485	0	10.
11. Nontransaction accounts:			11.
a. Savings deposits (includes MMDAs)	RCONB563	830,664	11.a.
b. Time deposits of $100,000 or more	RCONA514	1,432,777	11.b.
c. Time deposits of less than $100,000	RCONA529	2,150,364	11.c.
12. Federal funds purchased and securities sold under agreements to repurchase	RCON3353	0	12.
13. Other borrowed money (includes mortgage indebtedness and obligations under capitalized leases)	RCON3355	201,967	13.
1. Loans to finance agricultural production and other loans to farmers	RCON3386	0	M.1.

Schedule RC-L — Derivatives and Off-Balance Sheet Items


Dollar amounts in thousands
1. Unused commitments:			1.
a. Revolving, open-end lines secured by 1-4 family residential properties, e.g., home equity lines	RCON3814	0	1.a.
b. Credit card lines	RCON3815	0	1.b.
c. Commercial real estate, construction, and land development:			1.c.
1. Commitments to fund commercial real estate, construction, and land development loans secured by real estate:			1.c.1.
a. 1-4 family residential construction loan commitments	RCONF164	0	1.c.1.a.
b. Commercial real estate, other construction loan, and land development loan commitments	RCONF165	105,874	1.c.1.b.
2. Commitments to fund commercial real estate, construction, and land development loans not secured by real estate	RCON6550	808,981	1.c.2.
d. Securities underwriting	RCON3817	0	1.d.
e. Other unused commitments	RCON3818	0	1.e.
2. Financial standby letters of credit	RCON3819	38,623	2.
a. Amount of financial standby letters of credit conveyed to others	RCON3820	0	2.a.
3. Performance standby letters of credit	RCON3821	0	3.
a. Amount of performance standby letters of credit conveyed to others	RCON3822	0	3.a.
4. Commercial and similar letters of credit	RCON3411	0	4.
5. Not applicable			5.
6. Securities lent (including customers’ securities lent where the customer is indemnified against loss by the reporting bank)	RCON3433	0	6.

Schedule RC-L — Derivatives and Off-Balance Sheet Items

(Column A) Sold

(Column B) Purchased

Dollar amounts in thousands

Protection

7. Credit derivatives:

a. Notional amounts:

7.a.

1. Credit default swaps

RCONC968

RCONC969

7.a.1.

2. Total return swaps

RCONC970

RCONC971

7.a.2.

3. Credit options

RCONC972

RCONC973

7.a.3.

4. Other credit derivatives

RCONC974

RCONC975

7.a.4.


CAPITALSOURCE BANK		FFIEC 041
RSSD-ID 3806100		Quarter End Date 12/31/2009
Last Updated on 1/29/2010		26

(Column A) Sold

(Column B) Purchased

Dollar amounts in thousands

Protection

b. Gross fair values:

7.b.

1. Gross positive fair value

RCONC219

RCONC221

7.b.1.

2. Gross negative fair value

RCONC220

RCONC222

7.b.2.

Schedule RC-L — Derivatives and Off-Balance Sheet Items


Dollar amounts in thousands
c. Notational amounts by regulatory capital treatment:			7.c.
1. Positions covered under the Market Risk Rule:			7.c.1.
a. Sold protection	RCONG401	0	7.c.1.a.
b. Purchased protection	RCONG402	0	7.c.1.b.
2. All other positions:			7.c.2.
a. Sold protection	RCONG403	0	7.c.2.a.
b. Purchased protection that is recognized as a guarantee for regulatory capital purposes	RCONG404	0	7.c.2.b.
c. Purchased protection that is not recognized as a guarantee for regulatory capital purposes	RCONG405	0	7.c.2.c.

Schedule RC-L — Derivatives and Off-Balance Sheet Items

(Column B)

Remaining

(Column A)

Maturity of Over

(Column C)

Remaining

One Year

Remaining

Maturity of One

Through Five

Maturity of Over

Dollar amounts in thousands

Year or Less

Years

Five Years

d. Notional amounts by remaining maturity:

7.d.

1. Sold credit protection:

7.d.1.

RCONG406

RCONG407

RCONG408

a. Investment grade

7.d.1.a.

RCONG409

RCONG410

RCONG411

b. Subinvestment grade

7.d.1.b.

2. Purchased credit protection:

7.d.2.

RCONG412

RCONG413

RCONG414

a. Investment grade

7.d.2.a.

b. Subinvestment grade

RCONG415

RCONG416

RCONG417

7.d.2.b.

Schedule RC-L — Derivatives and Off-Balance Sheet Items


Dollar amounts in thousands
8. Spot foreign exchange contracts	RCON8765	0	8.
9. All other off-balance sheet liabilities (exclude derivatives) (itemize and describe each component of this item over 25% of Schedule RC, item 27.a, “Total bank equity capital”)	RCON3430	0	9.
a. Securities borrowed	RCON3432	0	9.a.
b. Commitments to purchase when-issued securities	RCON3434	0	9.b.
c. Standby letters of credit issued by a Federal Home Loan Bank on the bank’s behalf	RCONC978	0	9.c.
d. Disclose component and the dollar amount of that component:			9.d.


CAPITALSOURCE BANK		FFIEC 041
RSSD-ID 3806100		Quarter End Date 12/31/2009
Last Updated on 1/29/2010		27


Dollar amounts in thousands
1. Describe component	TEXT3555		9.d.1.
2. Amount of component	RCON3555	0	9.d. 2.
e. Disclose component and the dollar amount of that component:			9.e.
1. Describe component	TEXT3556		9.e.1.
2. Amount of component	RCON3556	0	9.e.2
f. Disclose component and the dollar amount of that component:			9.f.
1. Describe component	TEXT3557		9.f.1.
2. Amount of component	RCON3557	0	9.f.2.
10. All other off-balance sheet assets (exclude derivatives) (itemize and describe each component of this item over 25% of Schedule RC, item 27.a, “Total bank equity capital”)	RCON5591	0	10.
a. Commitments to sell when-issued securities	RCON3435	0	10.a.
b. Disclose component and the dollar amount of that component:			10.b.
1. Describe component	TEXT5592		10.b.1.
2. Amount of component	RCON5592	0	10.b.2.
c. Disclose component and the dollar amount of that component:			10.c.
1. Describe component	TEXT5593		10.c.1.
2. Amount of component	RCON5593	0	10.c.2.
d. Disclose component and the dollar amount of that component:			10.d.
1. Describe component	TEXT5594		10.d.1.
2. Amount of component	RCON5594	0	10.d.2.
e. Disclose component and the dollar amount of that component:			10.e.
1. Describe component	TEXT5595		10.e.1.
2. Amount of component	RCON5595	0	10.e.2.
11. Year-to-date merchant credit card sales volume:			11.
a. Sales for which the reporting bank is the acquiring bank	RCONC223	0	11.a.
b. Sales for which the reporting bank is the agent bank with risk	RCONC224	0	11.b.



CAPITALSOURCE BANK		FFIEC 041
RSSD-ID 3806100		Quarter End Date 12/31/2009
Last Updated on 1/29/2010		28

Schedule RC-L — Derivatives and Off-Balance Sheet Items

(Column B) Foreign

(Column C) Equity

(Column D)

(Column A) Interest

Exchange

Derivative

Commodity and

Dollar amounts in thousands

Rate Contracts

Contracts

Other Contracts

12. Gross amounts (e.g., notional amounts):

12.

RCON8693

RCON8694

RCON8695

RCON8696

a. Futures contracts

12.a.

RCON8697

RCON8698

RCON8699

RCON8700

b. Forward contracts

12.b.

c. Exchange-traded option contracts:

12.c.

RCON8701

RCON8702

RCON8703

RCON8704

1. Written options

12.c.1.

RCON8705

RCON8706

RCON8707

RCON8708

2. Purchased options

12.c.2.

d. Over-the-counter option contracts:

12.d.

RCON8709

RCON8710

RCON8711

RCON8712

1. Written options

12.d.1.

RCON8713

RCON8714

RCON8715

RCON8716

2. Purchased options

12.d.2.

RCON3450

RCON3826

RCON8719

RCON8720

e. Swaps

17,138

12.e.

RCONA126

RCONA127

RCON8723

RCON8724

13. Total gross notional amount of derivative contracts held for trading

13.

14. Total gross notional amount of derivative contracts held for purposes

RCON8725

RCON8726

RCON8727

RCON8728

other than trading

17,138

14.

RCONA589

a. Interest rate swaps where the bank has agreed to pay a fixed rate

14.a.

15. Not available

15.

a. Contracts held for trading:

15.a.

RCON8733

RCON8734

RCON8735

RCON8736

1. Gross positive fair value

15.a.1.

RCON8737

RCON8738

RCON8739

RCON8740

2. Gross negative fair value

15.a.2.



CAPITALSOURCE BANK		FFIEC 041
RSSD-ID 3806100		Quarter End Date 12/31/2009
Last Updated on 1/29/2010		29

(Column B) Foreign

(Column C) Equity

(Column D)

(Column A) Interest

Exchange

Derivative

Commodity and

Dollar amounts in thousands

Rate Contracts

Contracts

Other Contracts

b. Contracts held for purposes other than trading:

15.b.

RCON8741

RCON8742

RCON8743

RCON8744

1. Gross positive fair value

15.b.1.

RCON8745

RCON8746

RCON8747

RCON8748

2. Gross negative fair value

3,425

15.b.2.

Schedule RC-L — Derivatives and Off-Balance Sheet Items

(Column B)

(Column E)

(Column A)

Monoline

(Column D)

Corporations and

Banks and

Financial

(Column C)

Sovereign

All Other

Dollar amounts in thousands

Securities Firms

Guarantors

Hedge Funds

Governments

Counterparties

16. Over-the counter derivatives:

16.

RCONG418

RCONG419

RCONG420

RCONG421

RCONG422

a. Net current credit exposure

16.a.

b. Fair value of collateral:

16.b.

RCONG423

RCONG424

RCONG425

RCONG426

RCONG427

1. Cash — U.S. dollar

16.b.1.

RCONG428

RCONG429

RCONG430

RCONG431

RCONG432

2. Cash — Other currencies

16.b.2.

RCONG433

RCONG434

RCONG435

RCONG436

RCONG437

3. U.S. Treasury securities

16.b.3.

RCONG438

RCONG439

RCONG440

RCONG441

RCONG442

4. U.S. Government agency and U.S. Government-sponsored agency

debt securities

16.b.4.

RCONG443

RCONG444

RCONG445

RCONG446

RCONG447

5. Corporate bonds

16.b.5.

RCONG448

RCONG449

RCONG450

RCONG451

RCONG452

6. Equity securities

16.b.6.

RCONG453

RCONG454

RCONG455

RCONG456

RCONG457

7. All other collateral

16.b.7.

RCONG458

RCONG459

RCONG460

RCONG461

RCONG462

8. Total fair value of collateral (sum of items 16.b.(1) through (7))

16.b.8.


CAPITALSOURCE BANK RSSD-ID 3806100 Last Updated on 1/29/2010		FFIEC 041 Quarter End Date 12/31/2009 30

Schedule RC-M — Memoranda


Dollar amounts in thousands
1. Extensions of credit by the reporting bank to its executive officers, directors, principal shareholders, and their related interests as of the report date:				1.
a. Aggregate amount of all extensions of credit to all executive officers, directors, principal shareholders, and their related interests	RCON6164		0	1.a.
b. Number of executive officers, directors, and principal shareholders to whom the amount of all extensions of credit by the reporting bank (including extensions of credit to related interests) equals or exceeds the lesser of $500,000 or 5 percent of total capital as defined for this purpose in agency regulations	RCON6165		0	1.b.
2. Intangible assets other than goodwill:				2.
a. Mortgage servicing assets	RCON3164		0	2.a.
1. Estimated fair value of mortgage servicing assets	RCONA590		0	2.a.1.
b. Purchased credit card relationships and nonmortgage servicing assets	RCONB026		0	2.b.
c. All other identifiable intangible assets	RCON5507		216	2.c.
d. Total	RCON0426		216	2.d.
3. Other real estate owned:				3.
a. Construction, land development, and other land	RCON5508		0	3.a.
b. Farmland	RCON5509		0	3.b.
c. 1-4 family residential properties	RCON5510		0	3.c.
d. Multifamily (5 or more) residential properties	RCON5511		0	3.d.
e. Nonfarm nonresidential properties	RCON5512		0	3.e.
f. Foreclosed properties from “GNMA loans”	RCONC979		0	3.f.
g. Total (sum of items 3.a through 3.f) (must equal Schedule RC, item 7)	RCON2150		0	3.g.
4. Not applicable				4.
5. Other borrowed money:				5.
a. Federal Home Loan Bank advances:				5.a.
1. Advances with a remaining maturity or next repricing date of:				5.a.1.
a. One year or less	RCONF055		40,000	5.a.1.a.
b. Over one year through three years	RCONF056		137,000	5.a.1.b.
c. Over three years through five years	RCONF057		23,000	5.a.1.c.
d. Over five years	RCONF058		0	5.a.1.d.
2. Advances with a remaining maturity of one year or less (included in item 5.a.(1)(a) above)	RCON2651		40,000	5.a.2.
3. Structured advances (included in items 5.a.(1)(a) — (d) above)	RCONF059		0	5.a.3.
b. Other borrowings:				5.b.
1. Other borrowings with a remaining maturity of next repricing date of:				5.b.1.
a. One year or less	RCONF060		0	5.b.1.a.
b. Over one year through three years	RCONF061		0	5.b.1.b.
c. Over three years through five years	RCONF062		0	5.b.1.c.
d. Over five years	RCONF063		0	5.b.1.d.
2. Other borrowings with a remaining maturity of one year or less (included in item 5.b.(1)(a) above)	RCONB571		0	5.b.2.
c. Total	RCON3190		200,000	5.c.
6. Does the reporting bank sell private label or third party mutual funds and annuities?	RCONB569	No		6.
7. Assets under the reporting bank’s management in proprietary mutual funds and annuities	RCONB570		0	7.
8. Primary Internet Web site address of the bank (home page), if any	TEXT4087	Click here for value		8.
9. Do any of the bank’s Internet Web sites have transactional capability, i.e., allow the bank’s customers to execute transactions on their accounts through the Web site?	RCON4088	Yes		9.
10. Secured liabilities:				10.
a. Amount of “Federal funds purchased” that are secured (included in Schedule RC, item 14.a)	RCONF064		0	10.a.


CAPITALSOURCE BANK		FFIEC 041
RSSD-ID 3806100		Quarter End Date 12/31/2009
Last Updated on 1/29/2010		31


Dollar amounts in thousands
b. Amount of “Other borrowings” that are secured (included in Schedule RC-M, items 5.b.(1)(a) — (d))	RCONF065		0	10.b.
11. Does the bank act as trustee or custodian for Individual Retirement Accounts, Health Savings Accounts, and other similar accounts?	RCONG463	Yes		11.
12. Does the bank provide custody, safekeeping, or other services involving the acceptance of orders for the sale or purchase of securities?	RCONG464	No		12.

(TEXT4087) www.capitalsourcebank.com

Schedule RC-N — Past Due and Nonaccrual Loans Leases and Other Assets

(Column A) Past

(Column B) Past

due 30 through

due 90 days or

89 days and still

more and still

(Column C)

Dollar amounts in thousands

accruing

Nonaccrual

1. Loans secured by real estate:

a. Construction, land development, and other land loans:

1.a.

1. 1-4 family residential construction loans

RCONF172
0

RCONF174
0

RCONF175
0

1.a.1.

2. Other construction loans and all land development and other land loans

RCONF173

RCONF175

RCONF177

17,711

73,952

1.a.2.

RCON3493

RCON3494

RCON3495

b. Secured by farmland

1.b.

c. Secured by 1-4 family residential properties:

1.c.

1. Revolving, open-end loans secured by 1-4 family residential properties and extended under lines of credit

RCON5398

RCON5399

RCON5400

1.c.1.

2. Closed-end loans secured by 1-4 family residential properties:

1.c.2.

RCONC236

RCONC237

RCONC229

a. Secured by first liens

1.c.2.a.

RCONC238

RCONC239

RCONC230

b. Secured by junior liens

1.c.2.b.

RCON3499

RCON3500

RCON3501

d. Secured by multifamily (5 or more) residential properties

1,045

13,539

1.d.

e. Secured by nonfarm nonresidential properties:

1.e.

1. Loans secured by owner-occupied nonfarm nonresidential

RCONF178

RCONF180

RCONF182

properties

1.e.1.

RCONF179

RCONF181

RCONF183

2. Loans secured by other nonfarm nonresidential properties

42,283

1.e.2.

RCONB834

RCONB835

RCONB836

2. Loans to depository institutions and acceptances of other banks

3. Not applicable

RCON1606

RCON1607

RCON1608

4. Commercial and industrial loans

26,541

5. Loans to individuals for household, family, and other personal expenditures:


CAPITALSOURCE BANK RSSD-ID 3806100 Last Updated on 1/29/2010		FFIEC 041 Quarter End Date 12/31/2009 32


	(Column A) Past	(Column B) Past
	due 30 through	due 90 days or
	89 days and still	more and still	(Column C)
Dollar amounts in thousands	accruing	accruing	Nonaccrual
a. Credit cards	RCONB575 0	RCONB576 0	RCONB577 0	5.a.
b. Other (includes single payment, installment, all student loans, and revolving credit plans other than credit cards)	RCONB578 0	RCONB579 0	RCONB580 0	5.b.
6. Loans to foreign governments and official institutions	RCON5389 0	RCON5390 0	RCON5391 0	6.
7. All other loans	RCON5459 0	RCON5460 0	RCON5461 11,337	7.
8. Lease financing receivables	RCON1226 0	RCON1227 0	RCON1228 0	8.
9. Debt securities and other assets (exclude other real estate owned and other repossessed assets)	RCON3505 0	RCON3506 0	RCON3507 0	9.
10. Loans and leases reported in items 1 through 8 above which are wholly or partially guaranteed by the U.S. Government (including loans and leases covered by FDIC loss-sharing agreements)	RCON5612 0	RCON5613 0	RCON5614 0	10.
a. Guaranteed portion of loans and leases included in item 10 above (exclude rebooked “GNMA loans”)	RCON5615 0	RCON5616 0	RCON5617 0	10.a.
b. Rebooked “GNMA loans” that have been repurchased or are eligible for repurchase included in item 10 above	RCONC866 0	RCONC867 0	RCONC868 0	10.b.
1. Restructured loans and leases included in Schedule RC-N, items 1 through 8, above (and not reported in Schedule RC-C, Part I, Memorandum item 1):				M.1.
a. Loans secured by 1-4 family residential properties	RCONF661 0	RCONF662 0	RCONF663 0	M.1.a.
b. Other loans and all leases (exclude loans to individuals for household, family, and other personal expenditures)	RCON1658 0	RCON1659 0	RCON1661 34,998	M.1.b.
2. Loans to finance commercial real estate, construction, and land development activities (not secured by real estate) included in Schedule RC-N, items 4 and 7, above	RCON6558 0	RCON6559 0	RCON6560 0	M.2.
3. Not available				M.3.
a. Loans secured by real estate to non-U.S. addressees (domicile) (included in Schedule RC-N, item 1, above)	RCON1248 0	RCON1249 0	RCON1250 0	M.3.a.
b. Loans to and acceptances of foreign banks (included in Schedule RC-N, item 2, above)	RCON5380 0	RCON5381 0	RCON5382 0	M.3.b.
c. Commercial and industrial loans to non-U.S. addressees (domicile) (included in Schedule RC-N, item 4, above)	RCON1254 0	RCON1255 0	RCON1256 0	M.3.c.
d. Leases to individuals for household, family, and other personal expenditures (included in Schedule RC-N, item 8, above)	RCONF166 0	RCONF167 0	RCONF168 0	M.3.d.
4. Loans to finance agricultural production and other loans to farmers (included in Schedule RC-N, item 7, above)	RCON1594 0	RCON1597 0	RCON1583 0	M.4.
5. Loans and leases held for sale and loans measured at fair value (included in Schedule RC-N, items 1 through 8, above):				M.5.
a. Loans and leases held for sale	RCONC240 0	RCONC241 0	RCONC226 0	M.5.a.
b. Loans measured at fair value:				M.5.b.
1. Fair value	RCONF664 0	RCONF665 0	RCONF666 0	M.5.b.1.


CAPITALSOURCE BANK		FFIEC 041
RSSD-ID 3806100		Quarter End Date 12/31/2009
Last Updated on 1/29/2010		33

(Column A) Past

(Column B) Past

due 30 through

due 90 days or

89 days and still

more and still

(Column C)

Dollar amounts in thousands

accruing

Nonaccrual

RCONF667

RCONF668

RCONF669

2. Unpaid principal balance

M.5.b.2.

Schedule RC-N — Past Due and Nonaccrual Loans Leases and Other Assets

(Column A) Past due 30

(Column B) Past due 90

Dollar amounts in thousands

through 89 days

days or more

6. Derivative contracts: Fair value of amounts carried as assets

RCON3529

RCON3530

M.6.

Schedule RC-N — Past Due and Nonaccrual Loans Leases and Other Assets

Dollar amounts in thousands

7. Additions to nonaccrual assets during the quarter

RCONC410

22,931

M.7.

8. Nonaccrual assets sold during the quarter

RCONC411

11,041

M.8.

Schedule RC-O — Other Data for Deposit Insurance and FICO Assessments

Dollar amounts in thousands

1. Total deposit liabilities before exclusions (gross) as defined in Section 3(l) of the Federal Deposit Insurance Act and FDIC regulations

RCONF236

4,484,007

2. Total allowable exclusions

RCONF237

3. Not applicable

4. Total daily average of deposit liabilities before exclusions (gross) as defined in Section

RCONF238

4,422,399

3(l) of the Federal Deposit Insurance Act and FDIC regulations

5. Total daily average of allowable exclusions

RCONF239

6. Not applicable

7. Unsecured “Other borrowings” with a remaining maturity of (sum of items 7.a through 7.d must be less than or equal to Schedule RC-M, items 5.b.(1)(a)-(d) minus item 10.b):

a. One year or less

RCONG465

7.a.

b. Over one year through three years

RCONG466

7.b.

c. Over three years through five years

RCONG467

7.c.

d. Over five years

RCONG468

7.d.

8. Subordinated notes and debentures with a remaining maturity of (sum of items 8.a. through 8.d. must equal Schedule RC, item 19):

a. One year or less

RCONG469

8.a.

b. Over one year through three years

RCONG470

8.b.

c. Over three years through five years

RCONG471

8.c.

d. Over five years

RCONG472

8.d.

9. Reciprocal brokered deposits (included in Schedule RC-E, part I, Memorandum item 1.b)

RCONG803

1. Total assessable deposits of the bank, including related interest accrued and unpaid (sum of Memorandum items 1.a.(1), 1.b.(1), 1.c.(1), and 1.d.(1) must equal Schedule RC-O, item 1 less item 2):

M.1.

a. Deposit accounts (excluding retirement accounts) of $250,000 or less:

M.1.a.

1. Amount of deposit accounts (excluding retirement accounts) of $250,000 or less

RCONF049

3,739,660

M.1.a.1.

2. Number of deposit accounts (excluding retirement accounts) of $250,000 or less

RCONF050

M.1.a.2.

b. Deposit accounts (excluding retirement accounts) of more than $250,000:

M.1.b.

1. Amount of deposit accounts (excluding retirement accounts) of more than $250,000

RCONF051

369,407

M.1.b.1.


CAPITALSOURCE BANK		FFIEC 041
RSSD-ID 3806100		Quarter End Date 12/31/2009
Last Updated on 1/29/2010		34

Dollar amounts in thousands

2. Number of deposit accounts (excluding retirement accounts) of more than $250,000

RCONF052

964

M.1.b.2.

c. Retirement deposit accounts of $250,000 or less:

M.1.c.

1. Amount of retirement deposit accounts of $250,000 or less

RCONF045

364,848

M.1.c.1.

2. Number of retirement deposit accounts of $250,000 or less

RCONF046

M.1.c.2.

d. Retirement deposit accounts of more than $250,000:

M.1.d.

1. Amount of retirement deposit accounts of more than $250,000

RCONF047

10,092

M.1.d.1.

2. Number of retirement deposit accounts of more than $250,000

RCONF048

M.1.d.2.

2. Estimated amount of uninsured assessable deposits, including related interest accrued and unpaid

RCON5597

280,096

M.2.

3. Has the reporting institution been consolidated with a parent bank or savings association in that parent bank’s or parent savings association’s Call Report or Thrift Financial Report? If so, report the legal title and FDIC Certificate Number of the parent bank or parent savings association:

M.3.

a. Legal title

TEXTA545

M.3.a.

b. FDIC Certificate Number

RCONA545

M.3.b.

4. Noninterest-bearing transaction accounts (as defined in Part 370 of the FDIC’s regulations) of more than $250,000 (see instructions):

M.4.

a. Amount of noninterest-bearing transaction accounts of more than $250,000 (including balances swept from noninterest-bearing transaction accounts to noninterest-bearing savings accounts)

RCONG167

M.4.a.

b. Number of noninterest-bearing transaction accounts of more than $250,000

RCONG168

M.4.b.

Schedule RC-P — 1-4 Family Residential Mortgage Banking Activities

Dollar amounts in thousands

1. Retail originations during the quarter of 1-4 family residential mortgage loans for sale:

a. Closed-end first liens

RCONF066

1.a.

b. Closed-end junior liens

RCONF067

1.b.

c. Open-end loans extended under lines of credit:

1.c.

1. Total commitment under the lines of credit

RCONF670

1.c.1.

2. Principal amount funded under the lines of credit

RCONF671

1.c.2.

2. Wholesale originations and purchases during the quarter of 1-4 family residential mortgage loans for sale:

a. Closed-end first liens

RCONF068

2.a.

b. Closed-end junior liens

RCONF069

2.b.

c. Open-end loans extended under lines of credit:

2.c.

1. Total commitment under the lines of credit

RCONF672

2.c.1.

2. Principal amount funded under the lines of credit

RCONF673

2.c.2.

3. 1-4 family residential mortgages sold during the quarter:

a. Closed-end first liens

RCONF070

3.a.

b. Closed-end junior liens

RCONF071

3.b.

c. Open-end loans extended under lines of credit:

3.c.

1. Total commitment under the lines of credit

RCONF674

3.c.1.

2. Principal amount funded under the lines of credit

RCONF675

3.c.2.

4. 1-4 family residential mortgages held for sale at quarter-end (included in Schedule RC, item 4.a):

a. Closed-end first liens

RCONF072

4.a.

b. Closed-end junior liens

RCONF073

4.b.

c. Open-end loans extended under lines of credit:

4.c.

1. Total commitment under the lines of credit

RCONF676

4.c.1.

2. Principal amount funded under the lines of credit

RCONF677

4.c.2.


CAPITALSOURCE BANK		FFIEC 041
RSSD-ID 3806100		Quarter End Date 12/31/2009
Last Updated on 1/29/2010		35

Dollar amounts in thousands

5. Noninterest income for the quarter from the sale, securitization, and servicing of 1-4 family residential mortgage loans (included in Schedule RI, items 5.f, 5.g, and 5.i):

a. Closed-end 1-4 family residential mortgage loans

RIADF184

5.a.

b. Open-end 1-4 family residential mortgage loans extended under lines of credit

RIADF560

5.b.

6. Repurchases and indemnifications of 1-4 family residential mortgage loans during the quarter:

a. Closed-end first liens

RCONF678

6.a.

b. Closed-end junior liens

RCONF679

6.b.

c. Open-end loans extended under line of credit:

6.c.

1. Total commitment under the lines of credit

RCONF680

6.c.1.

2. Principal amount funded under the lines of credit

RCONF681

6.c.2.



CAPITALSOURCE BANK		FFIEC 041
RSSD-ID 3806100		Quarter End Date 12/31/2009
Last Updated on 1/29/2010		36

Schedule RC-Q — Assets and Liabilities Measured at Fair Value on a Recurring Basis

(Column B)

(Column A) Total

LESS: Amounts

Fair Value

Netted in the

(Column C) Level

(Column D) Level

(Column E) Level

Reported on

Determination of

1 Fair Value

2 Fair Value

3 Fair Value

Dollar amounts in thousands

Schedule RC

Total Fair Value

Measurements

RCON1773

RCONG474

RCONG475

RCONG476

RCONG477

1. Available-for-sale securities

1,017,898

2. Federal funds sold and securities purchased under agreements to

RCONG478

RCONG479

RCONG480

RCONG481

RCONG482

resell

RCONG483

RCONG484

RCONG485

RCONG486

RCONG487

3. Loans and leases held for sale

4. Loans and leases held for investment

RCONG488

RCONG489

RCONG490

RCONG491

RCONG492

5. Trading assets:

RCON3543

RCONG493

RCONG494

RCONG495

RCONG496

a. Derivative assets

5.a.

RCONG497

RCONG498

RCONG499

RCONG500

RCONG501

b. Other trading assets

5.b.

1. Nontrading securities at fair value with changes in fair value reported in current earnings (included in Schedule RC-Q, item 5.b, above)

RCONF240

RCONF684

RCONF692

RCONF241

RCONF242

5.b.1.

RCONG391

RCONG392

RCONG395

RCONG396

RCONG804

6. All other assets

7. Total assets measured at fair value on a recurring basis (sum of items

RCONG502

RCONG503

RCONG504

RCONG505

RCONG506

1 through 5.b plus item 6)

1,017,898

RCONF252

RCONF686

RCONF694

RCONF253

RCONF254

8. Deposits

9. Federal funds purchased and securities sold under agreements to

RCONG507

RCONG508

RCONG509

RCONG510

RCONG511

repurchase

10. Trading liabilities:

10.

RCON3547

RCONG512

RCONG513

RCONG514

RCONG515

a. Derivative liabilities

10.a.

RCONG516

RCONG517

RCONG518

RCONG519

RCONG520

b. Other trading liabilities

10.b.



CAPITALSOURCE BANK		FFIEC 041
RSSD-ID 3806100		Quarter End Date 12/31/2009
Last Updated on 1/29/2010		37

(Column B)

(Column A) Total

LESS: Amounts

Fair Value

Netted in the

(Column C) Level

(Column D) Level

(Column E) Level

Reported on

Determination of

1 Fair Value

2 Fair Value

3 Fair Value

Dollar amounts in thousands

Schedule RC

Total Fair Value

Measurements

RCONG521

RCONG522

RCONG523

RCONG524

RCONG525

11. Other borrowed money

11.

RCONG526

RCONG527

RCONG528

RCONG529

RCONG530

12. Subordinated notes and debentures

12.

RCONG805

RCONG806

RCONG807

RCONG808

RCONG809

13. All other liabilities

13.

RCONG531

RCONG532

RCONG533

RCONG534

RCONG535

14. Total liabilities measured at fair value on a recurring basis (sum of items 8 through 13)

14.

1. All other assets (itemize and describe amounts included in Schedule RC-Q, item 6, that are greater than $25,000 and exceed 25% of item 6):

M.1.

RCONG536

RCONG537

RCONG538

RCONG539

RCONG540

a. Mortgage servicing assets

M.1.a.

RCONG541

RCONG542

RCONG543

RCONG544

RCONG545

b. Nontrading derivative assets

M.1.b.



CAPITALSOURCE BANK		FFIEC 041
RSSD-ID 3806100		Quarter End Date 12/31/2009
Last Updated on 1/29/2010		38

Schedule RC-Q — Assets and Liabilities Measured at Fair Value on a Recurring Basis

Dollar amounts in thousands

c. Disclose component and the dollar amount of that component:

M.1.c.

1. Describe component

TEXTG546

M.1.c.1.


CAPITALSOURCE BANK		FFIEC 041
RSSD-ID 3806100		Quarter End Date 12/31/2009
Last Updated on 1/29/2010		39

Schedule RC-Q — Assets and Liabilities Measured at Fair Value on a Recurring Basis

(Column B)

(Column A) Total

LESS: Amounts

Fair Value

Netted in the

(Column C) Level

(Column D) Level

(Column E) Level

Reported on

Determination of

1 Fair Value

2 Fair Value

3 Fair Value

Dollar amounts in thousands

Schedule RC

Total Fair Value

Measurements

RCONG546

RCONG547

RCONG548

RCONG549

RCONG550

2. Amount of component

M.1.c.2.


CAPITALSOURCE BANK		FFIEC 041
RSSD-ID 3806100		Quarter End Date 12/31/2009
Last Updated on 1/29/2010		40

Schedule RC-Q — Assets and Liabilities Measured at Fair Value on a Recurring Basis

Dollar amounts in thousands

d. Disclose component and the dollar amount of that component:

M.1.d.

1. Describe component

TEXTG551

M.1.d.1


CAPITALSOURCE BANK		FFIEC 041
RSSD-ID 3806100		Quarter End Date 12/31/2009
Last Updated on 1/29/2010		41

Schedule RC-Q — Assets and Liabilities Measured at Fair Value on a Recurring Basis

(Column B)

(Column A) Total

LESS: Amounts

Fair Value

Netted in the

(Column C) Level

(Column D) Level

(Column E) Level

Reported on

Determination of

1 Fair Value

2 Fair Value

3 Fair Value

Dollar amounts in thousands

Schedule RC

Total Fair Value

Measurements

RCONG551

RCONG552

RCONG553

RCONG554

RCONG555

2. Amount of component

M.1.d.2.


CAPITALSOURCE BANK		FFIEC 041
RSSD-ID 3806100		Quarter End Date 12/31/2009
Last Updated on 1/29/2010		42

Schedule RC-Q — Assets and Liabilities Measured at Fair Value on a Recurring Basis

Dollar amounts in thousands

e. Disclose component and the dollar amount of that component:

M.1.e.

1. Describe component

TEXTG556

M.1.e.1.


CAPITALSOURCE BANK		FFIEC 041
RSSD-ID 3806100		Quarter End Date 12/31/2009
Last Updated on 1/29/2010		43

Schedule RC-Q — Assets and Liabilities Measured at Fair Value on a Recurring Basis

(Column B)

(Column A) Total

LESS: Amounts

Fair Value

Netted in the

(Column C) Level

(Column D) Level

(Column E) Level

Reported on

Determination of

1 Fair Value

2 Fair Value

3 Fair Value

Dollar amounts in thousands

Schedule RC

Total Fair Value

Measurements

RCONG556

RCONG557

RCONG558

RCONG559

RCONG560

2. Amount of component

M.1.e.2.


CAPITALSOURCE BANK		FFIEC 041
RSSD-ID 3806100		Quarter End Date 12/31/2009
Last Updated on 1/29/2010		44

Schedule RC-Q — Assets and Liabilities Measured at Fair Value on a Recurring Basis


CAPITALSOURCE BANK		FFIEC 041
RSSD-ID 3806100		Quarter End Date 12/31/2009
Last Updated on 1/29/2010		45

Schedule RC-Q — Assets and Liabilities Measured at Fair Value on a Recurring Basis

(Column B)

(Column A) Total

LESS: Amounts

Fair Value

Netted in the

(Column C) Level

(Column D) Level

(Column E) Level

Reported on

Determination of

1 Fair Value

2 Fair Value

3 Fair Value

Dollar amounts in thousands

Schedule RC

Total Fair Value

Measurements

RCONG561

RCONG562

RCONG563

RCONG564

RCONG565

2. Amount of component

M.1.f.2.

2. All other liabilities (itemize and describe amounts included in Schedule RC-Q, item 13, that are greater than $25,000 and exceed 25% of item 13):

M.2.

a. Loan commitments (not accounted for as derivatives)

RCONF261

RCONF689

RCONF697

RCONF262

RCONF263

M.2.a.

RCONG566

RCONG567

RCONG568

RCONG569

RCONG570

b. Nontrading derivative liabilities

M.2.b.


CAPITALSOURCE BANK		FFIEC 041
RSSD-ID 3806100		Quarter End Date 12/31/2009
Last Updated on 1/29/2010		46

Schedule RC-Q — Assets and Liabilities Measured at Fair Value on a Recurring Basis


CAPITALSOURCE BANK		FFIEC 041
RSSD-ID 3806100		Quarter End Date 12/31/2009
Last Updated on 1/29/2010		47

Schedule RC-Q — Assets and Liabilities Measured at Fair Value on a Recurring Basis

(Column B)

(Column A) Total

LESS: Amounts

Fair Value

Netted in the

(Column C) Level

(Column D) Level

(Column E) Level

Reported on

Determination of

1 Fair Value

2 Fair Value

3 Fair Value

Dollar amounts in thousands

Schedule RC

Total Fair Value

Measurements

RCONG571

RCONG572

RCONG573

RCONG574

RCONG575

2. Amount of component

M.2.c.2.


CAPITALSOURCE BANK		FFIEC 041
RSSD-ID 3806100		Quarter End Date 12/31/2009
Last Updated on 1/29/2010		48

Schedule RC-Q — Assets and Liabilities Measured at Fair Value on a Recurring Basis

Dollar amounts in thousands

d. Disclose component and the dollar amount of that component:

M.2.d.

1. Describe component

TEXTG576

M.2.d.1


CAPITALSOURCE BANK		FFIEC 041
RSSD-ID 3806100		Quarter End Date 12/31/2009
Last Updated on 1/29/2010		49

Schedule RC-Q — Assets and Liabilities Measured at Fair Value on a Recurring Basis

(Column B)

(Column A) Total

LESS: Amounts

Fair Value

Netted in the

(Column C) Level

(Column D) Level

(Column E) Level

Reported on

Determination of

1 Fair Value

2 Fair Value

3 Fair Value

Dollar amounts in thousands

Schedule RC

Total Fair Value

Measurements

RCONG576

RCONG577

RCONG578

RCONG579

RCONG580

2. Amount of component

M.2.d.2.


CAPITALSOURCE BANK		FFIEC 041
RSSD-ID 3806100		Quarter End Date 12/31/2009
Last Updated on 1/29/2010		50

Schedule RC-Q — Assets and Liabilities Measured at Fair Value on a Recurring Basis

Dollar amounts in thousands

e. Disclose component and the dollar amount of that component:

M.2.e.

1. Describe component

TEXTG581

M.2.e.1.


CAPITALSOURCE BANK		FFIEC 041
RSSD-ID 3806100		Quarter End Date 12/31/2009
Last Updated on 1/29/2010		51

Schedule RC-Q — Assets and Liabilities Measured at Fair Value on a Recurring Basis

(Column B)

(Column A) Total

LESS: Amounts

Fair Value

Netted in the

(Column C) Level

(Column D) Level

(Column E) Level

Reported on

Determination of

1 Fair Value

2 Fair Value

3 Fair Value

Dollar amounts in thousands

Schedule RC

Total Fair Value

Measurements

RCONG581

RCONG582

RCONG583

RCONG584

RCONG585

2. Amount of component

M.2.e.2.


CAPITALSOURCE BANK		FFIEC 041
RSSD-ID 3806100		Quarter End Date 12/31/2009
Last Updated on 1/29/2010		52

Schedule RC-Q — Assets and Liabilities Measured at Fair Value on a Recurring Basis


Dollar amounts in thousands
f. Disclose component and the dollar amount of that component:		M.2.f.
1. Describe component	TEXTG586	M.2.f.1.


CAPITALSOURCE BANK		FFIEC 041
RSSD-ID 3806100		Quarter End Date 12/31/2009
Last Updated on 1/29/2010		53

Schedule RC-Q — Assets and Liabilities Measured at Fair Value on a Recurring Basis

(Column B)

(Column A) Total

LESS: Amounts

Fair Value

Netted in the

(Column C) Level

(Column D) Level

(Column E) Level

Reported on

Determination of

1 Fair Value

2 Fair Value

3 Fair Value

Dollar amounts in thousands

Schedule RC

Total Fair Value

Measurements

RCONG586

RCONG587

RCONG588

RCONG589

RCONG590

2. Amount of component

M.2.f.2.


CAPITALSOURCE BANK		FFIEC 041
RSSD-ID 3806100		Quarter End Date 12/31/2009
Last Updated on 1/29/2010		54

Schedule RC-R — Regulatory Capital


Dollar amounts in thousands
1. Total bank equity capital (from Schedule RC, item 27.a)	RCON3210	842,325	1.
2. Net unrealized gains (losses) on available-for-sale securities	RCON8434	2,637	2.
3. Net unrealized loss on available-for-sale equity securities	RCONA221	0	3.
4. Accumulated net gains (losses) on cash flow hedges	RCON4336	0	4.
5. Nonqualifying perpetual preferred stock	RCONB588	0	5.
6. Qualifying noncontrolling (minority) interests in consolidated subsidiaries	RCONB589	0	6.
7. Not available			7.
a. Disallowed goodwill and other disallowed intangible assets	RCONB590	166,365	7.a.
b. Cumulative change in fair value of all financial liabilities accounted for under a fair value option that is included in retained earnings and is attributable to changes in the bank’s own creditworthiness	RCONF264	0	7.b.
8. Subtotal	RCONC227	673,323	8.
9. Not available			9.
a. Disallowed servicing assets and purchased credit card relationships	RCONB591	0	9.a.
b. Disallowed deferred tax assets	RCON5610	0	9.b.
10. Other additions to (deductions from) Tier 1 capital	RCONB592	0	10.
11. Tier 1 capital	RCON8274	673,323	11.
12. Qualifying subordinated debt and redeemable preferred stock	RCON5306	0	12.
13. Cumulative perpetual preferred stock includible in Tier 2 capital	RCONB593	0	13.
14. Allowance for loan and lease losses includible in Tier 2 capital	RCON5310	55,020	14.
15. Unrealized gains on available-for-sale equity securities includible in Tier 2 capital	RCON2221	0	15.
16. Other Tier 2 capital components	RCONB594	0	16.
17. Tier 2 capital	RCON5311	55,020	17.
18. Allowable Tier 2 capital	RCON8275	55,020	18.
19. Tier 3 capital allocated for market risk	RCON1395	0	19.
20. Deductions for total risk-based capital	RCONB595	0	20.
21. Total risk-based capital	RCON3792	728,343	21.
22. Average total assets (from Schedule RC-K, item 9)	RCON3368	5,629,210	22.
23. Disallowed goodwill and other disallowed intangible assets (from item 7 above)	RCONB590	166,365	23.
24. Disallowed servicing assets and purchased credit card relationships (from item 9.a above)	RCONB591	0	24.
25. Disallowed deferred tax assets (from item 9.b above)	RCON5610	0	25.
26. Other deductions from assets for leverage capital purposes	RCONB596	0	26.
27. Average total assets for leverage capital purposes	RCONA224	5,462,845	27.
28. Not available			28.
a. Adjustment to Tier 1 capital reported in item 11	RCONC228	0	28.a.
b. Adjustment to total risk-based capital reported in item 21	RCONB503	0	28.b.
29. Adjustment to risk-weighted assets reported in item 62	RCONB504	0	29.
30. Adjustment to average total assets reported in item 27	RCONB505	0	30.

Schedule RC-R — Regulatory Capital

(Column A) Percentage

(Banks with Financial

(Column B) Percentage

Dollar amounts in thousands

Subsidiaries)

(All Banks)

31. Tier 1 leverage ratio

RCON7273

0.000000

RCON7204

0.123255

31.

32. Tier 1 risk-based capital ratio

RCON7274

0.000000

RCON7206

0.156575

32.

33. Total risk-based capital ratio

RCON7275

0.000000

RCON7205

0.169369

33.


CAPITALSOURCE BANK		FFIEC 041
RSSD-ID 3806100		Quarter End Date 12/31/2009
Last Updated on 1/29/2010		55

Schedule RC-R — Regulatory Capital

(Column B)

(Column C)

(Column D)

(Column E)

(Column F)

(Column A)

Items Not

Allocation by

Totals (from

Subject to

Risk Weight

Dollar amounts in thousands

Schedule RC)

Risk-Weighting

Category 0%

Category 20%

Category 50%

Category 100%

RCON0010

RCONC869

RCONB600

RCONB601

RCONB602

34. Cash and balances dues from depository institutions

235,942

118,906

117,036

34.

RCON1754

RCONB603

RCONB604

RCONB605

RCONB606

RCONB607

35. Held-to-maturity securities

711,981

35.

RCON1773

RCONB608

RCONB609

RCONB610

RCONB611

RCONB612

36. Available-for-sale securities

1,017,898

4,470

199,274

814,154

36.

RCONC225

RCONC063

RCONC064

RCONB520

37. Federal funds sold and securities purchased under agreements to resell

37.

RCON5369

RCONB617

RCONB618

RCONB619

RCONB620

RCONB621

38. Loans and leases held for sale

38.

RCONB528

RCONB622

RCONB623

RCONB624

RCONB625

RCONB626

39. Loans and leases, net of unearned income

3,511,247

69,916

3,441,331

39.

RCON3123

40. Allowance for loan and lease losses

152,508

40.

RCON3545

RCONB627

RCONB628

RCONB629

RCONB630

RCONB631

41. Trading Assets

41.

RCONB639

RCONB640

RCONB641

RCONB642

RCONB643

RCON5339

42. All other assets

333,780

173,351

23,786

45,528

91,115

42.

RCON2170

RCONB644

RCON5320

RCON5327

RCON5334

RCON5340

43. Total Assets

5,658,340

25,313

341,966

1,688,699

69,916

3,532,446

43.

Schedule RC-R — Regulatory Capital

(Column A)

(Column B)

(Column C)

(Column D)

(Column E)

(Column F)

Face Value or

Credit

Allocation by

Notional

Equivalent

Risk Weight

Dollar amounts in thousands

Amount

Category 0%

Category 20%

Category 50%

Category 100%

RCONB546

RCONB547

RCONB548

RCONB581

RCONB582

RCONB583

44. Financial standby letters of credit

38,623

44.

RCON3821

RCONB650

RCONB651

RCONB652

RCONB653

RCONB654

45. Performance standby letters of credit

45.

RCON3411

RCONB655

RCONB656

RCONB657

RCONB658

RCONB659

46. Commercial and similar letters of credit

46.


CAPITALSOURCE BANK		FFIEC 041
RSSD-ID 3806100		Quarter End Date 12/31/2009
Last Updated on 1/29/2010		56

(Column A)

(Column B)

(Column C)

(Column D)

(Column E)

(Column F)

Face Value or

Credit

Allocation by

Notional

Equivalent

Risk Weight

Dollar amounts in thousands

Amount

Category 0%

Category 20%

Category 50%

Category 100%

RCON3429

RCONB660

RCONB661

RCONB662

RCONB663

47. Risk participations in bankers acceptances acquired by the reporting institution

47.

RCON3433

RCONB664

RCONB665

RCONB666

RCONB667

RCONB668

48. Securities lent

48.

RCONA250

RCONB669

RCONB670

RCONB671

RCONB672

RCONB673

49. Retained recourse on small business obligations sold with recourse

49.

RCONB541

RCONB542

RCONB543

50. Recourse and direct credit substitutes (other than financial standby letters of credit) subject to the low-level exposure rule and residual interests subject to a dollar-for-dollar capital requirement

50.

RCONB675

RCONB676

RCONB677

RCONB678

RCONB679

RCONB680

51. All other financial assets sold with recourse

51.

RCONB681

RCONB682

RCONB683

RCONB684

RCONB685

RCONB686

52. All other off-balance sheet liabilities

52.

53. Unused commitments:

53.

RCON3833

RCONB687

RCONB688

RCONB689

RCONB690

RCONB691

a. With an original maturity exceeding one year

914,854

457,427

53.a.

RCONG591

RCONG592

RCONG593

RCONG594

RCONG595

RCONG596

b. With an original maturity of one year or less to asset-backed commercial paper conduits

53.b.

RCONA167

RCONB693

RCONB694

RCONB695

54. Derivative contracts

857

54.

RCONB696

RCONB697

RCONB698

RCONB699

55. Total assets, derivatives, and off-balance sheet items by risk weight category

341,966

1,688,699

70,773

4,028,496

55.

56. Risk weight factor

56.

RCONB700

RCONB701

RCONB702

RCONB703

57. Risk-weighted assets by risk weight category

337,740

35,387

4,028,496

57.

RCON1651

58. Market risk equivalent assets

58.

RCONB704

59. Risk-weighted assets before deductions for excess allowance for loan and lease losses and allocated transfer risk reserve

4,401,623

59.

RCONA222

60. Excess allowance for loan and lease losses

101,288

60.

RCON3128

61. Allocated transfer risk reserve

61.


CAPITALSOURCE BANK		FFIEC 041
RSSD-ID 3806100		Quarter End Date 12/31/2009
Last Updated on 1/29/2010		57

(Column A)

(Column B)

(Column C)

(Column D)

(Column E)

(Column F)

Face Value or

Credit

Allocation by

Notional

Equivalent

Risk Weight

Dollar amounts in thousands

Amount

Category 0%

Category 20%

Category 50%

Category 100%

RCONA223

62. Total risk-weighted assets

4,300,335

62.


CAPITALSOURCE BANK RSSD-ID 3806100 Last Updated on 1/29/2010		FFIEC 041 Quarter End Date 12/31/2009 58

Schedule RC-R — Regulatory Capital

Dollar amounts in thousands

1. Current credit exposure across all derivative contracts covered by the risk-based capital standards

RCON8764

M.1.

Schedule RC-R — Regulatory Capital

(Column B) With

a remaining

(Column A) With

maturity of over

(Column C) with

a remaining

one years

a remaining

maturity of one

through five

maturity of over

Dollar amounts in thousands

year or less

years

five years

2. Notional principal amounts of derivative contracts:

M.2.

RCON3809

RCON8766

RCON8767

a. Interest rate contracts

M. 2.a.

RCON3812

RCON8769

RCON8770

b. Foreign exchange contracts

17,138

M. 2.b.

RCON8771

RCON8772

RCON8773

c. Gold contracts

M. 2.c.

RCON8774

RCON8775

RCON8776

d. Other precious metals contracts

M. 2.d.

RCON8777

RCON8778

RCON8779

e. Other commodity contracts

M. 2.e.

RCONA000

RCONA001

RCONA002

f. Equity derivative contracts

M. 2.f.

g. Credit derivative contracts: Purchased credit protection that (a)is a covered position under the market risk rule or (b) is not a covered position under the market risk rule and is not recognized as a guarantee for risk-based capital purposes:

M.2.g.

RCONG597

RCONG598

RCONG599

1. Investment grade

M.2.g.1.

RCONG600

RCONG601

RCONG602

2. Subinvestment grade

M.2.g.2.


CAPITALSOURCE BANK		FFIEC 041
RSSD-ID 3806100		Quarter End Date 12/31/2009
Last Updated on 1/29/2010		59

Schedule RC-S — Servicing Securitization and Asset Sale Activities

(Column G)

All Other

(Column A)

(Column E)

(Column F)

Loans, All

1-4 Family

(Column B)

(Column C)

Other

Commercial

Leases, and

Residential

Home Equity

Credit Card

(Column D)

Consumer

and Industrial

All Other

Dollar amounts in thousands

Loans

Lines

Receivables

Auto Loans

Loans

Assets

1. Outstanding principal balance of assets sold and securitized

RCONB705

RCONB706

RCONB707

RCONB708

RCONB709

RCONB710

RCONB711

by the reporting bank with servicing retained or with recourse or other seller-provided credit enhancements

2. Maximum amount of credit exposure arising from recourse or other seller-provided credit enhancements provided to structures reported in item 1 in the form of:

a. Credit-enhancing interest-only strips (included in

RCONB712

RCONB713

RCONB714

RCONB715

RCONB716

RCONB717

RCONB718

Schedules RC-B or RC-F or in Schedule RC, item 5)

2.a.

RCONC393

RCONC394

RCONC395

RCONC396

RCONC397

RCONC398

RCONC399

b. Subordinated securities and other residual interests

2.b.

RCONC400

RCONC401

RCONC402

RCONC403

RCONC404

RCONC405

RCONC406

c. Standby letters of credit and other enhancements

2.c.

3. Reporting bank’s unused commitments to provide liquidity

RCONB726

RCONB727

RCONB728

RCONB729

RCONB730

RCONB731

RCONB732

to structures reported in item 1

4. Past due loan amounts included in item 1:

RCONB733

RCONB734

RCONB735

RCONB736

RCONB737

RCONB738

RCONB739

a. 30-89 days past due

4.a.

RCONB740

RCONB741

RCONB742

RCONB743

RCONB744

RCONB745

RCONB746

b. 90 days or more past due

4.b.

5. Charge-offs and recoveries on assets sold and securitized with servicing retained or with recourse or other seller-provided credit enhancements (calendar year-to-date):

RIADB747

RIADB748

RIADB749

RIADB750

RIADB751

RIADB752

RIADB753

a. Charge-offs

5.a.

RIADB754

RIADB755

RIADB756

RIADB757

RIADB758

RIADB759

RIADB760

b. Recoveries

5.b.

6. Amount of ownership (or seller’s) interests carried as:

a. Securities (included in Schedule RC-B or in Schedule

RCONB761

RCONB762

RCONB763

RC, item 5)

6.a.


CAPITALSOURCE BANK		FFIEC 041
RSSD-ID 3806100		Quarter End Date 12/31/2009
Last Updated on 1/29/2010		60

(Column G)

All Other

(Column A)

(Column E)

(Column F)

Loans, All

1-4 Family

(Column B)

(Column C)

Other

Commercial

Leases, and

Residential

Home Equity

Credit Card

(Column D)

Consumer

and Industrial

All Other

Dollar amounts in thousands

Loans

Lines

Receivables

Auto Loans

Loans

Assets

b. Loans (included in Schedule RC-C)

RCONB500
0

RCONB501
0

RCONB502
0

6.b.

7. Past due loan amounts included in interests reported in item 6.a:

a. 30-89 days past due

RCONB764
0

RCONB765
0

RCONB766
0

7.a.

b. 90 days or more past due

RCONB767
0

RCONB768
0

RCONB769
0

7.b.

8. Charge-offs and recoveries on loan amounts included in interests reported in item 6.a (calendar year-to-date):

a. Charge-offs

RIADB770
0

RIADB771
0

RIADB772
0

8.a.

b. Recoveries

RIADB773
0

RIADB774
0

RIADB775
0

8.b.

9. Maximum amount of credit exposure arising from credit enhancements provided by the reporting bank to other institutions’ securitization structures in the form of standby letters of credit, purchased subordinated securities, and other enhancements

RCONB776
0

RCONB777
0

RCONB778
0

RCONB779
0

RCONB780
0

RCONB781
0

RCONB782
0

10. Reporting bank’s unused commitments to provide liquidity to other institutions’ securitization structures

RCONB783
0

RCONB784
0

RCONB785
0

RCONB786
0

RCONB787
0

RCONB788
0

RCONB789
0

10.

11. Assets sold with recourse or other seller-provided credit enhancements and not securitized by the reporting bank

RCONB790
0

RCONB791
0

RCONB792
0

RCONB793
0

RCONB794
0

RCONB795
0

RCONB796
0

11.

12. Maximum amount of credit exposure arising from recourse or other seller-provided credit enhancements provided to assets reported in item 11

RCONB797
0

RCONB798
0

RCONB799
0

RCONB800
0

RCONB801
0

RCONB802
0

RCONB803
0

12.



CAPITALSOURCE BANK		FFIEC 041
RSSD-ID 3806100		Quarter End Date 12/31/2009
Last Updated on 1/29/2010		61

Schedule RC-S — Servicing Securitization and Asset Sale Activities

Dollar amounts in thousands

1. Small business obligations transferred with recourse under Section 208 of the Riegle Community Development and Regulatory Improvement Act of 1994:

M.1.

a. Outstanding principal balance

RCONA249

M.1.a.

b. Amount of retained recourse on these obligations as of the report date

RCONA250

M.1.b.

2. Outstanding principal balance of assets serviced for others (includes participations serviced for others):

M.2.

a. Closed-end 1-4 family residential mortgages serviced with recourse or other servicer-provided credit enhancements

RCONB804

M.2.a.

b. Closed-end 1-4 family residential mortgages serviced with no recourse or other servicer-provided credit enhancements

RCONB805

M.2.b.

c. Other financial assets (includes home equity lines)

RCONA591

7,810,854

M.2.c.

d. 1-4 family residential mortgages serviced for others that are in process of foreclosure at quarter-end (includes closed-end and open-end loans)

RCONF699

M.2.d.

3. Asset-backed commercial paper conduits:

M.3.

a. Maximum amount of credit exposure arising from credit enhancements provided to conduit structures in the form of standby letters of credit, subordinated securities, and other enhancements:

M.3.a.

1. Conduits sponsored by the bank, a bank affiliate, or the bank’s holding company

RCONB806

M.3.a.1.

2. Conduits sponsored by other unrelated institutions

RCONB807

M.3.a.2.

b. Unused commitments to provide liquidity to conduit structures:

M.3.b.

1. Conduits sponsored by the bank, a bank affiliate, or the bank’s holding company

RCONB808

M.3.b.1.

2. Conduits sponsored by other unrelated institutions

RCONB809

M.3.b.2.

4. Outstanding credit card fees and finance charges included in Schedule RC-S, item 1, column C

RCONC407

M.4.

Schedule RC-T — Fiduciary and Related Services

Dollar amounts in thousands

1. Does the institution have fiduciary powers? (If “NO,” do not complete Schedule RC-T.)

RCONA345

2. Does the institution exercise the fiduciary powers it has been granted?

RCONA346

3. Does the institution have any fiduciary or related activity (in the form of assets or accounts) to report in this schedule? (If “NO,” do not complete the rest of Schedule RC-T.)

RCONB867



CAPITALSOURCE BANK		FFIEC 041
RSSD-ID 3806100		Quarter End Date 12/31/2009
Last Updated on 1/29/2010		62

Schedule RC-T — Fiduciary and Related Services

(Column B)

(Column C) Number

(Column D) Number

(Column A)

Non-Managed

of Managed

of Non-Managed

Dollar amounts in thousands

Managed Assets

Assets

Accounts

RCONB868

RCONB869

RCONB870

RCONB871

4. Personal trust and agency accounts

5. Employee benefit and retirement-related trust and agency accounts:

RCONB872

RCONB873

RCONB874

RCONB875

a. Employee benefit — defined contribution

5.a.

RCONB876

RCONB877

RCONB878

RCONB879

b. Employee benefit — defined benefit

5.b.

c. Other employee benefit and retirement-related accounts

RCONB880

RCONB881

RCONB882

RCONB883

5.c.

RCONB884

RCONB885

RCONC001

RCONC002

6. Corporate trust and agency accounts

7. Investment management and investment advisory agency accounts

RCONB886

RCONJ253

RCONB888

RCONJ254

8. Foundation and endowment trust and agency accounts

RCONJ255

RCONJ256

RCONJ257

RCONJ258

RCONB890

RCONB891

RCONB892

RCONB893

9. Other fiduciary accounts

10. Total fiduciary accounts (sum of items 4 through 9)

RCONB894

RCONB895

RCONB896

RCONB897

10.

RCONB898

RCONB899

11. Custody and safekeeping accounts

11.

12. Not applicable

12.

13. Individual Retirement Accounts, Health Savings Accounts, and other similar

RCONJ259

RCONJ260

RCONJ261

RCONJ262

accounts (included in items 5.c and 11)

13.



CAPITALSOURCE BANK		FFIEC 041
RSSD-ID 3806100		Quarter End Date 12/31/2009
Last Updated on 1/29/2010		63

Schedule RC-T — Fiduciary and Related Services

Dollar amounts in thousands

14. Personal trust and agency accounts

RIADB904

14.

15. Employee benefit and retirement-related trust and agency accounts:

15.

a. Employee benefit — defined contribution

RIADB905

15.a.

b. Employee benefit — defined benefit

RIADB906

15.b.

c. Other employee benefit and retirement-related accounts

RIADB907

15.c.

16. Corporate trust and agency accounts

RIADA479

16.

17. Investment management and investment advisory agency accounts

RIADJ315

17.

18. Foundation and endowment trust and agency accounts

RIADJ316

18.

19. Other fiduciary accounts

RIADA480

19.

20. Custody and safekeeping accounts

RIADB909

20.

21. Other fiduciary and related services income

RIADB910

21.

22. Total gross fiduciary and related services income (sum of items 14 through 21) (must equal Schedule RI, item 5.a)

RIAD4070

22.

23. Less: Expenses

RIADC058

23.

24. Less: Net losses from fiduciary and related services

RIADA488

24.

25. Plus: Intracompany income credits for fiduciary and related services

RIADB911

25.

26. Net fiduciary and related services income

RIADA491

26.

Schedule RC-T — Fiduciary and Related Services

(Column A)

(Column B)

Personal Trust

Employee

and Agency and

Benefit and

Investment

Retirement-Related

Management

Trust and

Agency

(Column C) All

Dollar amounts in thousands

Accounts

Other Accounts

1. Managed assets held in fiduciary accounts:

M.1.

RCONJ263

RCONJ264

RCONJ265

a. Noninterest-bearing deposits

M.1.a.

RCONJ266

RCONJ267

RCONJ268

b. Interest-bearing deposits

M.1.b.

RCONJ269

RCONJ270

RCONJ271

c. U.S. Treasury and U.S. Government agency obligations

M.1.c.

RCONJ272

RCONJ273

RCONJ274

d. State, county, and municipal obligations

M.1.d.

RCONJ275

RCONJ276

RCONJ277

e. Money market mutual funds

M.1.e.

RCONJ278

RCONJ279

RCONJ280

f. Equity mutual funds

M.1.f.

RCONJ281

RCONJ282

RCONJ283

g. Other mutual funds

M.1.g.

RCONJ284

RCONJ285

RCONJ286

h. Common trust funds and collective investment funds

M.1.h.

RCONJ287

RCONJ288

RCONJ289

i. Other short-term obligations

M.1.i.

RCONJ290

RCONJ291

RCONJ292

j. Other notes and bonds

M.1.j.


CAPITALSOURCE BANK		FFIEC 041
RSSD-ID 3806100		Quarter End Date 12/31/2009
Last Updated on 1/29/2010		64

(Column A)

(Column B)

Personal Trust

Employee

and Agency and

Benefit and

Investment

Retirement-Related

Management

Trust and

Agency

(Column C) All

Dollar amounts in thousands

Accounts

Other Accounts

k. Investments in unregistered funds and private equity

RCONJ293

RCONJ294

RCONJ295

investments

M.1.k.

RCONJ296

RCONJ297

RCONJ298

l. Other common and preferred stocks

M.1.l.

RCONJ299

RCONJ300

RCONJ301

m. Real estate mortgages

M.1.m.

RCONJ302

RCONJ303

RCONJ304

n. Real estate

M.1.n.

RCONJ305

RCONJ306

RCONJ307

o. Miscellaneous assets

M.1.o.

p. Total managed assets held in fiduciary accounts (for each column,

RCONJ308

RCONJ309

RCONJ310

sum of Memorandum items 1.a through 1.o)

M.1.p.

Schedule RC-T — Fiduciary and Related Services

(Column A) Managed

(Column B) Number of

Dollar amounts in thousands

Assets

Managed Accounts

q. Investments of managed fiduciary accounts in advised or sponsored mutual funds

RCONJ311

RCONJ312

M.1.q.

Schedule RC-T — Fiduciary and Related Services

(Column A) Number of

(Column B) Principal

Dollar amounts in thousands

Issues

Amount Outstanding

2. Corporate trust and agency accounts:

M.2.

a. Corporate and municipal trusteeships

RCONB927

RCONB928

M.2.a.

1. Issues reported in Memorandum item 2.a that are in default

RCONJ313

RCONJ314

M.2.a.1.

b. Transfer agent, registrar, paying agent, and other corporate agency

RCONB929

M.2.b.

Schedule RC-T — Fiduciary and Related Services

(Column A) Number of

(Column B) Market Value

Dollar amounts in thousands

Funds

of Fund Assets

3. Collective investment funds and common trust funds:

M.3.

a. Domestic equity

RCONB931

RCONB932

M.3.a.

b. International/Global equity

RCONB933

RCONB934

M.3.b.

c. Stock/Bond blend

RCONB935

RCONB936

M.3.c.

d. Taxable bond

RCONB937

RCONB938

M.3.d.

e. Municipal bond

RCONB939

RCONB940

M.3.e.

f. Short term investments/Money market

RCONB941

RCONB942

M.3.f.

g. Specialty/Other

RCONB943

RCONB944

M.3.g.

h. Total collective investment funds (sum of Memorandum items 3.a through 3.g)

RCONB945

RCONB946

M.3.h.



CAPITALSOURCE BANK		FFIEC 041
RSSD-ID 3806100		Quarter End Date 12/31/2009
Last Updated on 1/29/2010		65

Schedule RC-T — Fiduciary and Related Services


	(Column A)	(Column B)
	Gross Losses	Gross Losses
	Managed	Non-Managed	(Column C)
Dollar amounts in thousands	Accounts	Accounts	Recoveries
4. Fiduciary settlements, surcharges, and other losses:				M.4.
	RIADB947	RIADB948	RIADB949
a. Personal trust and agency accounts	NR	NR	NR	M.4.a.
b. Employee benefit and retirement-related trust and agency accounts	RIADB950	RIADB951	RIADB952
	NR	NR	NR	M.4.b.
	RIADB953	RIADB954	RIADB955
c. Investment management agency accounts	NR	NR	NR	M.4.c.
	RIADB956	RIADB957	RIADB958
d. Other fiduciary accounts and related services	NR	NR	NR	M.4.d.
e. Total fiduciary settlements, surcharges, and other losses (sum of Memorandum items 4.a through 4.d) (sum of columns A and B minus column C must equal Schedule RC-T, item 24)	RIADB959	RIADB960	RIADB961
	NR	NR	NR	M.4.e.

General Instructions


Dollar amounts in thousands
1. Who Must Report on What Forms										1.
a. Close of Business										1.a.
b. Frequency of Reporting										1.b.
c. Differences in Detail of Reports										1.c.
d. Shifts in Reporting Status										1.d.
2. Organization of the Instruction Books										2.
3. Preparation of the Reports										3.
4. Signatures										4.
a. Officer Declaration										4.a.
b. Director Attestation										4.b.
5. Submission of the Reports										5.
a. Submission Date										5.a.
b. Amended Reports										5.b.
6. Retention of Reports										6.
7. Scope of the “Consolidated Bank” Required to be Reported in the Submitted Reports										7.
a. Exclusions from the Coverage of the Consolidated Report										7.a.
8. Rules of Consolidation										8.
9. Reporting by Type of Office (For banks with foreign offices)										9.
10. Publication Requirements for the Report of Condition										10.
11. Release of Individual Bank Reports										11.
12. Applicability of Generally Accepted Accounting Principles to Regulatory Reporting Requirements										12.
13. Accrual Basis Reporting										13.
14. Miscellaneous General Instructions										14.
a. Rounding										14.a.
b. Negative Entries										14.b.
c. Verification										14.c.
d. Transactions Occurring Near the End of a Reporting Period										14.d.
15. Separate Branch Reports										15.



CAPITALSOURCE BANK		FFIEC 041
RSSD-ID 3806100		Quarter End Date 12/31/2009
Last Updated on 1/29/2010		66

Glossary


Dollar amounts in thousands
1. Glossary										1.
2. Acceptances										2.
3. Accounting Changes										3.
4. Accounting Errors, Corrections of										4.
5. Accounting Estimates, Changes in										5.
6. Accounting Principles, Changes in										6.
7. Accrued Interest Receivable Related to Credit Card Securitizations										7.
8. Acquisition, Development, or Construction (ADC) Arrangements										8.
9. Agreement Corporation										9.
10. Allowance for Loan and Lease Losses										10.
11. Applicable Income Taxes										11.
12. Associated Company										12.
13. ATS Account										13.
14. Bankers Acceptances										14.
a. Bank-Owned Life Insurance										14.a.
15. Banks, U.S. and Foreign										15.
16. Banks in Foreign Countries										16.
17. Bill-of-Lading Draft										17.
18. Borrowings and Deposits in Foreign Offices										18.
19. Brokered Deposits										19.
20. Broker’s Security Draft										20.
21. Business Combinations										21.
22. Call Option										22.
23. Capitalization of Interest Costs										23.
24. Carrybacks and Carryforwards										24.
25. Cash Management Arrangements										25.
26. Certificate of Deposit										26.
27. Changes in Accounting Estimates										27.
28. Changes in Accounting Principles										28.
29. Clearing Accounts										29.
30. Commercial Banks in the U.S.										30.
31. Commercial Letter of Credit										31.
32. Commercial Paper										32.
33. Commodity or Bill-of-Lading Draft										33.
34. Common Stock of Unconsolidated Subsidaries, Investments in										34.
35. Continuing Contract										35.
36. Corporate Joint Venture										36.
37. Corrections of Accounting Errors										37.
38. Coupon Stripping, Treasury Receipts, and STRIPS										38.
39. Custody Account										39.
40. Dealer Reserve Account										40.
a. Deferred Compensation Agreements										40.a.
41. Deferred Income Taxes										41.
42. Demand Deposits										42.
43. Depository Institutions in the U.S.										43.
44. Deposits										44.
45. Derivative Contracts										45.
a. Discounts										45.a.
46. Dividends										46.


CAPITALSOURCE BANK		FFIEC 041
RSSD-ID 3806100		Quarter End Date 12/31/2009
Last Updated on 1/29/2010		67


Dollar amounts in thousands
47. Domestic Office										47.
48. Domicile										48.
49. Due Bills										49.
50. Edge and Agreement Corporation										50.
a. Equity-Indexed Certificates of Deposit										50.a.
51. Equity Method of Accounting										51.
52. Extinguishments of Liabilities										52.
53. Extraordinary Items										53.
54. Fails										54.
a. Fair Value										54.a.
55. Federal Funds Transactions										55.
56. Federally-Sponsored Lending Agency										56.
57. Fees, Loan										57.
58. Foreclosed Assets										58.
59. Foreign Banks										59.
60. Foreign Currency Transactions and Translation										60.
61. Foreign Debt Exchange Transactions										61.
62. Foreign Governments and Official Institutions										62.
63. Foreign Office										63.
64. Forward Contracts										64.
65. Functional Currency										65.
66. Futures Contracts										66.
67. Goodwill										67.
68. Hypothecated Deposit										68.
69. IBF										69.
70. Income Taxes										70.
71. Intangible Assets										71.
72. Interest-Bearing Account										72.
73. Interest Capitalization										73.
74. Interest Rate Swaps										74.
75. Internal-Use Computer Software										75.
76. International Banking Facility (IBF)										76.
77. Interoffice Accounts										77.
78. Investments in Common Stock of Unconsolidated Subsidiaries										78.
79. Joint Venture										79.
80. Lease Accounting										80.
81. Letter of Credit										81.
82. Limited-Life Preferred Stock										82.
83. Loan										83.
84. Loan Fees										84.
85. Loan Impairment										85.
86. Loan Secured by Real Estate										86.
87. Loss Contingencies										87.
88. Majority-Owned Subsidiary										88.
89. Mandatory Convertible Debt										89.
91. Mergers										91.
92. Money Market Deposit Account (MMDA)										92.
93. Nonaccrual Status										93.
94. Noninterest-Bearing Account										94.
95. Nontransaction Account										95.
96. NOW Account										96.


CAPITALSOURCE BANK		FFIEC 041
RSSD-ID 3806100		Quarter End Date 12/31/2009
Last Updated on 1/29/2010		68


Dollar amounts in thousands
97. Offsetting										97.
98. One-Day Transaction										98.
99. Option										99.
100. Organization Costs										100.
101. Other Depository Institutions in the U.S.										101.
102. Other Real Estate Owned										102.
103. Overdraft										103.
104. Participations										104.
105. Participations in Acceptances										105.
106. Participations in Pools of Securities										106.
107. Pass-through Reserve Balances										107.
108. Perpetual Preferred Stock										108.
109. Placements and Takings										109.
110. Pooling of Interests										110.
111. Preauthorized Transfer Account										111.
112. Preferred Stock										112.
113. Premiums and Discounts										113.
114. Purchase Acquisition										114.
a. Purchased Impaired Loans and Debt Securities										114.a.
115. Put Option										115.
116. Real Estate ADC Arrangements										116.
117. Real Estate, Loan Secured By										117.
118. Reciprocal Balances										118.
119. Renegotiated Troubled Debt										119.
120. Reorganizations										120.
121. Repurchase/Resale Agreements										121.
122. Reserve Balances, Pass-through										122.
123. Retail Sweep Arrangements										123.
124. Sales of Assets for Risk-Based Capital Purposes										124.
125. Savings Deposits										125.
126. Securities Activities										126.
127. Securities Borrowing/Lending Transactions										127.
128. Securities, Participations in Pools of										128.
129. Servicing Assets and Liabilities										129.
130. Settlement Date Accounting										130.
131. Shell Branches										131.
132. Short Position										132.
133. Significant Subsidary										133.
134. Standby Letter of Credit										134.
135. Start-Up Activities										135.
136. STRIPS										136.
137. Subordinated Notes and Debentures										137.
138. Subsidiaries										138.
139. Suspense Accounts										139.
140. Syndications										140.
141. Telephone Transfer Account										141.
142. Term Federal Funds										142.
143. Time Deposits										143.
144. Trade Date and Settlement Date Accounting										144.
145. Trading Account										145.
146. Transction Account										146.


CAPITALSOURCE BANK		FFIEC 041
RSSD-ID 3806100		Quarter End Date 12/31/2009
Last Updated on 1/29/2010		69


Dollar amounts in thousands
147. Transfers of Financial Assets										147.
148. Traveler’s Letter of Credit										148.
149. Treasury Receipts										149.
150. Treasury Stock										150.
151. Troubled Debt Restructurings										151.
152. Trust Preferred Securities										152.
153. U.S. Banks										153.
154. U.S. Territories and Possessions										154.
155. Valuation Allowance										155.
156.When-Issued Securities Transactions										156.

Dollar amounts in thousands

f. Disclose component and the dollar amount of that component:

1. Describe component