Exhibit 99.1

		News
		CapitalSource Inc.
		5404 Wisconsin Avenue
		Second Floor
		Chevy Chase, MD 20815

		FOR IMMEDIATE RELEASE
For information contact:
Investor Relations:		Media Relations:
Dennis Oakes		Michael Weiss
Senior Vice President, Investor Relations		Director of Communications
(212) 321-7212		(301) 841-2918
doakes@capitalsource.com		mweiss@capitalsource.com

CAPITALSOURCE REPORTS FIRST QUARTER 2011 RESULTS

	•		Net Income of $3 Million or $0.01 Per Share
	•		New Funded Loans of $627 Million at CapitalSource Bank
	•		CapitalSource Bank Net Interest Margin Increased to 5.43%
	•		Stable Credit Profile / Non-Accrual Loans Decline by 21%
	•		Parent Company Unrestricted Cash Tops $1 Billion after Quarter Close

Chevy Chase, MD., April 29, 2011 —CapitalSource Inc. (NYSE: CSE) today announced financial results for the first quarter 2011. Net income for the quarter was $3 million or $0.01 per diluted share, compared to net income in the prior quarter of $6 million or $0.02 per diluted share and a net loss of $212 million or $0.66 per diluted share in the first quarter 2010.

“Our financial results for the first quarter demonstrate growing profitability at CapitalSource Bank, on-going progress on liquidation of the Parent Company legacy loan portfolio and a sustained pattern of stable credit performance,” said John K. Delaney, CapitalSource Executive Chairman. “Significant progress in each of these areas over the past four quarters has allowed us to reorient our short-term strategic focus from a defensive stance to an intensive, proactive and forward looking effort to both fund new loans at CapitalSource Bank and improve its profitability.”

“New loans funded in the first quarter of $627 million represented the highest quarterly production since the formation of CapitalSource Bank in July 2008. The largest concentration of new loans in the quarter was multifamily, although our equipment finance and timeshare receivables businesses were also significant contributors,” said James J. Pieczynski, CapitalSource Co-CEO. “With such a solid start, we

now see a reasonable chance for full year originations to exceed our previous guidance of $1.8-1.9 billion.”

“The first quarter was a strong beginning to the new year for CapitalSource Bank. We had net loan growth of 4% despite a high level of pre-payments, deposit growth of 2%, margin expansion of 39 basis points to 5.43%, and improving credit performance,” said Tad Lowrey, CapitalSource Bank President and CEO. “Our capital levels remain above industry norms, with risk-based capital at 18.80% and a Tier 1 leverage ratio of 13.47%.”

“Converting CapitalSource Bank from a California industrial charter to a commercial charter and deploying excess capital at the Parent Company remain top strategic priorities.” said Steven A. Museles, CapitalSource Co-CEO. “We are continuing to work on the optimal next steps for both of these objectives, while growing assets and profitability at CapitalSource Bank with the deposit franchise we operate today.”

“Unrestricted cash at the Parent Company grew to $723 million at March 31, 2011 and increased to over $1 billion on April 1^st when we received the Genesis loan pay-off,” said Donald F. Cole, CapitalSource CFO. “At the Parent Company, we expect the loan portfolio will continue to generate cash throughout 2011, as we have fully repaid our secured credit facilities and the only recourse debt maturing during 2011 will be the mandatory redemption of $281 million of convertible debentures in July.”

Revised Metrics and Earnings Presentation — We have made certain revisions to the format of our earnings press release in order to provide a presentation which is more consistent with our banking peers. This quarterly results release highlights the key drivers of our financial performance utilizing new roll forward tables and quarterly comparisons which are designed to enhance transparency and provide helpful analysis of the major factors impacting the quarter.

CAPITALSOURCE BANK SEGMENT

This segment includes our commercial lending and banking business activities in CapitalSource Bank.

First Quarter 2011 Highlights

•

Net Income was $32 million, an increase of $16 million from the prior quarter primarily due to higher interest income and lower tax expense.

•

Loan Production increased to $627 million during the quarter from $536 million in the prior quarter, driving a 4% increase in the loan portfolio balance. The three new origination platforms added in 2010 — equipment finance, small business and professional practice lending — accounted for 20% of the new production volume in the quarter.

•

Liquidity — Cash and investments was $2.0 billion, or nearly 32% of total assets, at quarter end, which we forecast will be sufficient liquidity to support projected net loan growth for the balance of 2011.

•

Net Interest Margin for the quarter was 5.43%, an increase of 39 basis points from the prior quarter primarily due to accelerated accretion of loan discounts and deferred loan fees from increased prepayment levels and a decrease in non-accrual loans.

•

Capital — Capital ratios increased with risk-based capital and Tier 1 leverage ratios of 18.80% and 13.47%, respectively, at quarter end, compared to 18.13% and 13.15%, respectively, at the end of the prior quarter.

•

Credit Quality — Loan loss provision was $11 million for the quarter, compared to $10 million in the prior quarter. Net charge-offs, including an $11 million recovery on a previously charged off real estate loan, were $3 million in the quarter, a decrease of $13 million from the prior quarter. Non-accrual loans decreased to $175 million, or 4.35% of loans, at quarter end, compared to $248 million, or 6.45% of loans, in the prior quarter. The allowance for loan losses increased to $133 million, or 3.31% of loans, as of March 31, 2011, compared to $125 million, or 3.25% of loans, at the end of the prior quarter.

First Quarter 2011 Details

		Quarter Ended
														3/31/11 vs. 12/31/10								3/31/11 vs. 3/31/10
Net Income (Loss)		3/31/11				12/31/10				3/31/10				$				%				$				%
		($ in thousands)
Interest income		$	91,804			$	87,033			$	81,454			$	4,771				5	%		$	10,350				13	%
Interest expense			15,210				15,511				17,301				301				2				2,091				12
Provision for loan losses			11,242				9,755				87,704				(1,487	)			(15	)			76,462				87
Operating expenses			32,941				31,516				24,335				(1,425	)			(5	)			(8,606	)			(35	)
Other income			2,965				5,312				8,159				(2,347	)			(44	)			(5,194	)			(64	)
Income tax expense (benefit)			3,095				18,854				(56	)			15,759				84				(3,151	)			(5,627	)
Net income (loss)			32,281				16,709				(39,671	)			15,572				93				71,952				181

Interest Income was $92 million, an increase of $5 million, or 5%, from the prior quarter due to loan portfolio growth, accelerated accretion of loan discounts and deferred loan fees from increased prepayment levels and a decrease in non-accrual loans.

		Quarter Ended
		03/31/2011												12/31/2010
		Average				Interest				Average				Average				Interest				Average
Net Interest Margin		Balance				Income				Yield/Cost				Balance				Income				Yield/Cost
		($ in thousands)
Total loans		$	3,792,412			$	76,845				8.22	%		$	3,650,091			$	71,951				7.82	%
Investment securities			1,596,615				14,723				3.74				1,684,987				14,769				3.48
Cash and other interest earning assets			334,278				236				0.29				298,221				313				0.42
Total interest-earning assets			5,723,305				91,804				6.51				5,633,299				87,033				6.13
Deposits			4,673,752				13,383				1.16				4,613,309				13,925				1.20
Borrowings			373,278				1,827				1.98				317,337				1,586				1.98
Total interest-bearing liabilities		$	5,047,030				15,210				1.22			$	4,930,646				15,511				1.25
Net interest spread						$	76,594				5.29	%						$	71,522				4.88	%
Net interest margin											5.43	%											5.04	%

Cash and Investments declined by $103 million from the prior quarter as lower yielding cash and investments were redeployed to fund net loan growth. The portfolio yield at quarter end increased by 25 basis points and the overall duration increased to 2.6 years from 2.4 years.

Cash and Investments		03/31/2011												12/31/2010
		Book Value				Yield				Duration				Book Value				Yield				Duration
		($ in thousands)
Cash and cash equivalents		$	440,928				0.28	%			—			$	377,054				0.20	%			—
Agency discount notes			—				—				—				164,917				0.30	%			0.3
Agency callable notes			164,223				1.79	%			4.2				164,219				1.84	%			4.3
Agency debt			76,843				1.73	%			1.0				102,263				1.46	%			1.0
Agency MBS			944,968				2.83	%			3.9				860,441				3.04	%			3.9
Non-agency MBS			97,062				4.45	%			2.7				112,917				4.57	%			2.8
CMBS			179,077				13.17	%			1.0				184,473				12.71	%			1.2
Corporate debt			4,998				3.04	%			0.7				4,998				3.04	%			0.9
Asset-back securities			21,398				10.73	%			2.0				—				—				—
U.S. Treasury and agency securities			29,795				2.13	%			4.2				90,587				0.95	%			1.7
		$	1,959,292				3.23	%			2.6				2,061,869				2.98	%			2.4

Total Loans Held for Investment and Loans Held for Sale increased $164 million from the prior quarter as detailed below:

		Quarter Ended
Loan Roll Forward		3/31/2011				12/31/2010				3/31/2010
		($ in thousands)
Beginning balance		$	3,848,511			$	3,705,992			$	3,061,426
New fundings			627,470				536,163				243,031
Loans
Principal repayments			(428,426	)			(321,793	)			(92,312	)
Sales			(17,373	)			(19,376	)			—
Transfers to REO			(2,013	)			(36,594	)			—
Charge-offs			(15,350	)			(15,881	)			(17,894	)
Ending balance		$	4,012,819			$	3,848,511			$	3,194,251

		Quarter Ended
Loan Portfolio Mix		3/31/2011				12/31/2010				3/31/2010
		($ in thousands)
General asset-based		$	756,851			$	682,733			$	670,468
Cash flow			835,030				917,960				812,017
General commercial real estate			794,345				853,442				953,821
Multifamily			587,011				318,236				127,647
Healthcare real estate			428,322				500,033				438,071
Healthcare asset-based			181,988				201,524				192,227
Equipment finance			274,669				234,546				—
Small business			154,603				140,037				—
Total		$	4,012,819			$	3,848,511			$	3,194,251

Deposits were $4.7 billion at quarter end, an increase of $87 million from the end of the prior quarter. The weighted average interest rate on deposits was 1.15% at the end of the quarter, a decline of 3 basis points from the end of the prior quarter.

FHLB Borrowings were $400 million, compared to $412 million at the end of the prior quarter. These borrowings are used primarily for interest rate risk management and short-term funding purposes. As of March 31, 2011, the weighted average rate and remaining maturities of FHLB borrowings were 2.01% and 2.9 years, respectively, compared to 1.67% and 2.3 years, respectively, at the end of the prior quarter.

Allowance for Loan Losses was $133 million, or 3.31% of the loan portfolio, an increase of $8 million from the end of the prior quarter.

		Quarter Ended
Allowance for Loan Losses		3/31/2011
		General				Specific				Total				% Loans
		($ in thousands)
Beginning balance		$	122,997			$	1,881			$	124,878				3.25	%
Provision for loan losses			7,217				4,025				11,242
Charge-offs, net			—				(3,150	)			(3,150	)			0.33	%
Ending balance		$	130,214			$	2,756			$	132,970				3.31	%

		Quarter Ended
		12/31/2010
		General				Specific				Total				% Loans
Beginning balance		$	114,940			$	16,065			$	131,005				3.53	%
Provision for loan losses			8,057				1,698				9,755
Charge-offs, net			—				(15,882	)			(15,882	)			1.70	%
Ending balance		$	122,997			$	1,881			$	124,878				3.25	%

Non-performing Assets were $308 million, a decline of $23 million, or 7%, from the prior quarter primarily due to decreases in non-accrual loans and REO assets, partially offset by an increase in troubled debt restructured loans due primarily to a $67 million real estate loan that was restructured.

		3/31/2011								12/31/2010
Non-performing Assets						% of Total								% of Total
		Loan Balance				Assets				Loan Balance				Assets
		($ in thousands)
Non-accrual loans — current		$	116,568				1.89	%		$	174,559				2.85	%
Non-accrual loans — delinquent 30-89 days			1,688				0.03				3,945				0.06
Non-accrual loans — delinquent 90+ days			56,338				0.91				69,793				1.14
Total non-accrual loans			174,594				2.83	%			248,297				4.06	%
Accruing loans — delinquent 90+ days			186				—				272				—
Accruing loans — restructured			102,343				1.66				35,689				0.58
Total non-performing loans			277,123				4.48	%			284,258				4.65	%
REO			30,416				0.49				46,750				0.76
Total non-performing assets		$	307,539				4.98	%		$	331,008				5.41	%

Operating Expenses were $33 million, which includes $2 million of additional costs related to the transfer of certain Parent Company support personnel to CapitalSource Bank in the quarter. Those costs were largely offset by reimbursements from the Parent Company which are reported in Other Income. Operating expenses also include $11 million in loan referral fees paid to the Parent Company, which was $1 million higher than the previous quarter due to increased loan production.

Other income was $3 million, a 44% decrease from the prior quarter primarily due to losses from the sale of assets offset by fees from the Parent Company for shared services provided by CapitalSource Bank.

Income Tax Expense was $3 million for the quarter, reflecting a $14 million tax expense related to pre-tax income, offset by a benefit of $11 million for the release of a valuation allowance that CapitalSource Bank maintained with respect to its state net deferred tax assets.

OTHER COMMERCIAL FINANCE SEGMENT

This segment includes the CapitalSource Inc. loan portfolio and other business activities at the Parent Company.

Net Loss was $35 million, or $0.11 per share, compared to a net loss of $8 million, or $0.02 per share in the prior quarter.

Interest Income was $48 million, a decrease of $19 million or 28% from the prior quarter primarily due to the continuing run-off of the Parent Company loan portfolio.

Unrestricted Cash was $723 million, an increase of $256 million from the prior quarter primarily due to loan sales of $133 million related to the European portfolio, loan pay-offs and the disposition of non-performing loans.

Total Loans Held for Investment and Loans Held for Sale were $2.1 billion, a decrease of $437 million from the prior quarter primarily due to loan payoffs and sales of $361 million and loans charged off of $89 million.

		Quarter Ended
Loan Roll Forward		3/31/2011				12/31/2010				3/31/2010
		($ in thousands)
Beginning balance		$	2,509,699			$	2,921,715			$	5,220,814
New fundings			12,925				21,852				44,195
Loans
Principal repayments			(184,715	)			(301,089	)			(340,523	)
Sales			(176,285	)			(49,857	)			(4,137	)
Transfers to REO			—				(9,823	)			(51,887	)
Charge-offs			(88,720	)			(73,099	)			(101,549	)
Ending balance		$	2,072,904			$	2,509,699			$	4,766,913

Allowance for Loan Losses was $150 million, or 7.25% of the loan portfolio, a decline of $54 million from the end of the prior quarter.

Net Charge-Offs were $88 million in the quarter an increase of $15 million from the prior quarter. Net charge-offs as a percentage of average loans for the twelve months ended March 31, 2011 were 8.20%, as compared to 7.17% for the twelve months ended December 31, 2010.

		Quarter Ended
Allowance for Loan Losses		3/31/2011
		General				Specific				Total				% Loans
		($ in thousands)
Beginning balance		$	127,156			$	77,088			$	204,244				8.14	%
Provision for loan losses			(35,283	)			68,850				33,567
Charge-offs, net			—				(87,507	)			(87,507	)			14.97	%
Ending balance		$	91,873			$	58,431			$	150,304				7.25	%

		Quarter Ended
		12/31/2010
		General				Specific				Total				% Loans
Beginning balance		$	199,560			$	63,077			$	262,637				8.99	%
Provision for loan losses			(72,404	)			86,756				14,352
Charge-offs, net			—				(72,745	)			(72,745	)			10.08	%
Ending balance		$	127,156			$	77,088			$	204,244				8.14	%

Non-Performing Assets were $578 million, a decline of $87 million, or 13%, from the prior quarter primarily due to a $76 million decrease in non-accrual loans. 46 loans totaling $164 million are considered impaired and on non-accrual, but are current as to payment status. All collections on these loans are applied to the outstanding principal balance.

		3/31/2011								12/31/2010
Non-performing Assets						% of Total								% of Total
		Loan Balance				Assets				Loan Balance				Assets
		($ in thousands)
Non-accrual loans — current		$	163,974				5.23	%		$	231,362				6.77	%
Non-accrual loans — delinquent 30-89 days			31,853				1.02				18,467				0.54
Non-accrual loans — delinquent 90+ days			178,946				5.71				200,660				5.87
Total non-accrual loans			374,773				11.96	%			450,489				13.18	%
Accruing loans — delinquent 90+ days			46,885				1.50				49,016				1.43
Accruing loans — restructured			115,427				3.68				118,988				3.48
Total non-performing loans			537,085				17.14	%			618,493				18.09	%
REO			41,053				1.31				46,934				1.37
Total non-performing assets		$	578,138				18.45	%		$	665,427				19.46	%

Operating Expenses were $41 million, a decline of $1 million from prior quarter.

Other income was $32 million for the quarter, compared to other expenses of $5 million for the prior quarter, primarily due to increased gains on sales of investments, lower expenses of real estate owned and other foreclosed assets, and the net loss on the European portfolio that we recognized in the prior quarter.

CONSOLIDATED METRICS

Net Income was $3 million, compared to $6 million from the prior quarter, as detailed below:

		Quarter Ended
														3/31/11 vs. 12/31/10								3/31/11 vs. 3/31/10
		3/31/11				12/31/10				3/31/10				$				%				$				%
		($ in thousands)
Interest income		$	142,152			$	150,377			$	171,414			$	(8,225	)			(6	)%		$	(29,262	)			(17	)%
Interest expense			46,752				48,430				65,001				1,678				3				18,249				28
Provision for loan losses			44,809				24,107				218,940				(20,702	)			(86	)			174,131				80
Operating expenses			54,261				56,991				63,205				2,730				5				8,944				14
Other income (expense)			17,991				(16,904	)			(22,275	)			34,895				206				40,266				181
Income tax expense (benefit)			11,162				(1,966	)			21,006				(13,128	)			(668	)			9,844				47
Net income (loss)			3,159				5,911				(211,690	)			2,752				47				214,849				101

Interest Income was $142 million, a decrease of $8 million, or 6%, from the prior quarter primarily due to loan portfolio run-off.

Total Loans Held for Investment and Loans Held for Sale decreased $272 million from the prior quarter as detailed below:

Loan Roll Forward		3/31/2011				12/31/2010				3/31/2010
		($ in thousands)
Beginning balance		$	6,358,210			$	6,627,707			$	8,282,240
New fundings			640,395				558,015				287,226
Loans
Principal repayments			(613,141	)			(622,882	)			(432,835	)
Sales			(193,658	)			(69,233	)			(4,137	)
Transfers to REO			(2,013	)			(46,417	)			(51,887	)
Charge-offs			(104,070	)			(88,980	)			(119,443	)
Ending balance		$	6,085,723			$	6,358,210			$	7,961,164

Allowance for Loan Losses was $283 million, or 4.65% of the loan portfolio, compared to $329 million or 5.17% at the end of the prior quarter.

Net Charge-Offs were $91 million in the quarter, an increase of $2 million from the prior quarter. Net charge-offs as a percentage of average loans for the twelve months ended March 31, 2011 were 5.78%, which was consistent with the twelve months ended December 31, 2010.

		Quarter Ended
Allowance for Loan Losses		3/31/2011
		General				Specific				Total				% Loans
		($ in thousands)
Beginning balance		$	250,153			$	78,969			$	329,122				5.17	%
Provision for loan losses			(28,066	)			72,875				44,809
Charge-offs, net			—				(90,657	)			(90,657	)			5.90	%
Ending balance		$	222,087			$	61,187			$	283,274				4.65	%

		Quarter Ended
		12/31/2010
		General				Specific				Total				% Loans
Beginning balance		$	314,500			$	79,142			$	393,642				5.94	%
Provision for loan losses			(64,347	)			88,454				24,107
Charge-offs, net			—				(88,627	)			(88,627	)			5.36	%
Ending balance		$	250,153			$	78,969				329,122				5.17	%

Non-Performing Assets were $886 million, a decline of $111 million, or 11%, from the prior quarter primarily due to a $149 million decrease in non-accrual loans. 56 loans totaling $281 million were considered impaired and on non-accrual at the end of the quarter, but were current as to payment status. All collections on those loans are applied to the outstanding principal balance.

		3/31/2011								12/31/2010
						% of Total								% of Total
Non-performing Assets		Loan Balance				Assets				Loan Balance				Assets
		($ in thousands)
Non-accrual loans — current		$	280,542				3.03	%		$	405,921				4.30	%
Non-accrual loans — delinquent 30-89 days			33,541				0.36				22,412				0.24
Non-accrual loans — delinquent 90+ days			235,284				2.54				270,453				2.86
Total non-accrual loans			549,367				5.92	%			698,786				7.40	%
Accruing loans — delinquent 90+ days			47,071				0.51				49,288				0.52
Accruing loans — restructured			217,770				2.35				154,677				1.64
Total non-performing loans			814,208				8.78	%			902,751				9.56	%
REO			71,469				0.77				93,684				0.99
Total non-performing assets		$	885,677				9.55	%		$	996,435				10.55	%

Operating Expenses were $54 million, a decrease of $3 million from the prior quarter, primarily due to a decrease in professional fees at the Parent Company.

		Quarter Ended
Operating Expenses		3/31/2011				12/31/2010
		($ in thousands)
Compensation and benefits		$	30,379			$	29,906
Professional fees			7,188				8,807
Other operating expenses			16,694				18,278
Total operating expenses		$	54,261			$	56,991

Income Tax Expense was $11 million for the quarter, primarily related to the re-establishment of a valuation allowance at the consolidated group level with respect to CapitalSource Bank’s net deferred tax assets. The valuation allowance was recorded in connection with our plan to reconsolidate our corporate entities for federal tax purposes in 2011.

Valuation Allowance related to the Company’s deferred tax assets at quarter end was $457 million, an increase of $43 million from the end of the prior quarter. The net deferred tax asset at quarter end, after subtracting the valuation allowance, was $63 million. The valuation allowance is a non-cash accounting charge that will exist until there is sufficient positive evidence to support its reduction or reversal.

Book Value Per Share was $6.41 at the end of the quarter, an increase of $0.06 from the end of the prior quarter. Total shareholders’ equity was $2.1 billion at the end of the quarter, an increase of $17 million from the prior quarter primarily due to increases in accumulated other comprehensive income due to foreign currency translation and mark-to-market gains on available-for-sale securities.

Average Diluted Shares Outstanding were 327.0 million shares for the quarter, compared to 326.7 million shares for the prior quarter. Total outstanding shares at March 31, 2011 were 323.3 million.

Quarterly Cash Dividend of $0.01 per common share was paid on March 31, 2011 to common shareholders of record on March 16, 2011.

Conference Call Details

A conference call to discuss the results will be hosted on Friday, April 29, 2011 at 8:30 a.m. EST. Interested parties may access the call via webcast on the Investor Relations section of the CapitalSource web site at http://www.capitalsource.com/investor_relations. An audio replay will also be available on the website from approximately 12 Noon EDT April 29, 2011 through July 29, 2011.

CapitalSource Bank will file its Consolidated Reports of Condition and Income for A Bank With Domestic Offices Only FFIEC 041, for the quarter ended March 31, 2011 (the Call Report) with the Federal Deposit Insurance Corporation (FDIC) on April 29, 2011. The Call Report may be found on the FDIC’s website at http://cdr.ffiec.gov/Public/ following CapitalSource Bank’s filing with the FDIC.

About CapitalSource

CapitalSource Inc. (NYSE: CSE) is a commercial lender that provides financial products to middle market businesses and offers depository products and services in southern and central California through its wholly owned subsidiary CapitalSource Bank. As of March 31, 2011, CapitalSource had total assets of $9.3 billion and $4.7 billion in deposits. Visit www.capitalsource.com for more information.

Forward Looking Statements

This release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, including certain plans, expectations, strategies, goals, and projections and including statements about projected loan originations, our expectations regarding our application to become a bank holding company and convert CapitalSource Bank’s charter to a commercial charter, liquidity position at the Parent Company, growing our business and assets, projected loan production levels, deployment of excess capital at the Parent Company, profitability, the maturities of our recourse debt, all which are subject to numerous assumptions, risks, and uncertainties. All statements contained in this release that are not clearly historical in nature are forward-looking, and the words ‘anticipate,’ ‘assume,’ ‘intend,’ ‘believe,’ ‘expect,’ ‘estimate,’ ‘forecast,’ ‘plan,’ ‘position,’ ‘project,’ ‘will,’ ‘should,’ ‘would,’ ‘seek,’ ‘continue,’ ‘outlook,’ ‘look forward,’ and similar expressions are generally intended to identify forward-looking statements. All forward-looking statements (including statements regarding preliminary and future financial and operating results and future transactions and their results) involve risks, uncertainties and contingencies, many of which are beyond our control which may cause actual results, performance, or achievements to differ materially from anticipated results, performance or achievements. Actual results could differ materially from those contained or implied by such statements for a variety of factors, including without limitation: changes in economic or market conditions or investment or lending opportunities; regulatory restrictions, restrictions imposed by our debt agreements; continued or worsening disruptions in credit and other markets; increase in interest rates and lending spreads; competitive and other market pressures on product pricing and services; reduced demand for our services; success and timing of other business strategies; and other factors described in CapitalSource’s 2010 Annual Report on Form 10-K and documents subsequently filed by CapitalSource with the Securities and Exchange Commission. All forward-looking statements included in this release are based on information available at the time of the release. We are under no obligation to (and expressly disclaim any such obligation to) update or alter our forward-looking statements, whether as a result of new information, future events or otherwise except as required by applicable law.

CapitalSource First Quarter 2011 — Financial Supplement
Table of Contents

Consolidated Balance Sheets			13
Consolidated Statements of Income			14
Segment Statements of Income			15
Segment Balance Sheets			16
Selected Financial Data			17
Credit Quality Data			18

CapitalSource First Quarter 2011 — Financial Supplement

CapitalSource Inc.

		March 31,				December 31,
		2011				2010
		(Unaudited)
ASSETS
Cash and cash equivalents		$	1,151,495			$	820,450
Restricted cash			76,577				128,586
Investment securities:
Available-for-sale, at fair value			1,370,353				1,522,911
Held-to-maturity, at amortized cost			179,077				184,473
Total investment securities			1,549,430				1,707,384
Loans:
Loans held for sale			17,997				205,334
Loans held for investment			6,067,726				6,152,876
Less deferred loan fees and discounts			(93,513	)			(106,438	)
Less allowance for loan losses			(283,274	)			(329,122	)
Loans held for investment, net			5,690,939				5,717,316
Total loans			5,708,936				5,922,650
Interest receivable			57,922				57,393
Other investments			67,906				71,889
Goodwill			173,135				173,135
Other assets			487,937				563,920
Total assets		$	9,273,338			$	9,445,407
LIABILITIES AND SHAREHOLDERS’ EQUITY
Liabilities:
Deposits		$	4,708,349			$	4,621,273
Credit facilities			—				67,508
Term debt			863,799				979,254
Other borrowings			1,368,462				1,375,884
Other liabilities			261,292				347,546
Total liabilities			7,201,902				7,391,465
Shareholders’ equity:
Preferred stock (50,000,000 shares authorized; no shares outstanding)			—				—
Common stock ($0.01 par value, 1,200,000,000 shares authorized; 323,345,312 and 323,225,355 shares issued and shares outstanding, respectively)			3,233				3,232
Additional paid-in capital			3,914,500				3,911,341
Accumulated deficit			(1,870,663	)			(1,870,572	)
Accumulated other comprehensive income, net			24,366				9,941
Total shareholders’ equity			2,071,436				2,053,942
Total liabilities and shareholders’ equity		$	9,273,338			$	9,445,407

CapitalSource First Quarter 2011 — Financial Supplement

CapitalSource Inc.

		Three Months Ended
		March 31,				December 31,				March 31,
		2011				2010				2010
		(Unaudited)
Net interest income:
Interest income:
Loans		$	123,500			$	133,259			$	156,250
Investment securities			18,352				16,830				14,591
Other			300				288				573
Total interest income			142,152				150,377				171,414
Interest expense:
Deposits			13,383				13,925				16,358
Borrowings			33,369				34,505				48,643
Total interest expense			46,752				48,430				65,001
Net interest income			95,400				101,947				106,413
Provision for loan losses			44,809				24,107				218,940
Net interest income (loss) after provision for loan losses			50,591				77,840				(112,527	)
Operating expenses:
Compensation and benefits			30,379				29,906				34,183
Professional fees			7,188				8,807				10,370
Other administrative expenses			16,694				18,278				18,652
Total operating expenses			54,261				56,991				63,205
Other income (expense):
Gain on investments, net			23,515				7,780				6,079
(Loss) gain on derivatives			(1,878	)			1,275				(4,337	)
Net expense of real estate owned and other foreclosed assets			(10,173	)			(19,775	)			(40,492	)
Other income (expense), net			6,527				(6,184	)			16,475
Total other income (expense)			17,991				(16,904	)			(22,275	)
Net income (loss) from continuing operations before income taxes			14,321				3,945				(198,007	)
Income tax expense (benefit)			11,162				(1,966	)			21,006
Net income (loss) from continuing operations			3,159				5,911				(219,013	)
Net income from discontinued operations, net of taxes			—				—				7,323
Net income (loss)		$	3,159			$	5,911			$	(211,690	)
Basic income (loss) per share:
From continuing operations		$	0.01			$	0.02			$	(0.68	)
From discontinued operations		$	—			$	—			$	0.02
Net income (loss) per share		$	0.01			$	0.02			$	(0.66	)
Diluted income (loss) per share:
From continuing operations		$	0.01			$	0.02			$	(0.68	)
From discontinued operations		$	—			$	—			$	0.02
Net income (loss) per share		$	0.01			$	0.02			$	(0.66	)
Average shares outstanding:
Basic			320,196,690				321,173,379				320,294,724
Diluted			326,963,738				326,657,654				320,294,724
Dividends declared per share		$	0.01			$	0.01			$	0.01

CapitalSource Inc.
Segment Statements of Income
(Unaudited)
($ in thousands)

		Three Months Ended March 31, 2011
						OTHER
		CAPITALSOURCE				COMMERCIAL				INTERCOMPANY
		BANK				FINANCE				ELIMINATIONS				CONSOLIDATED
Net interest income:
Interest income		$	91,804			$	47,614			$	2,734			$	142,152
Interest expense			15,210				31,542				—				46,752
Net interest income			76,594				16,072				2,734				95,400
Provision for loan losses			11,242				33,567				—				44,809
Net interest income (loss) after provision for loan losses			65,352				(17,495	)			2,734				50,591
Compensation and benefits			11,708				19,502				(831	)			30,379
Professional fees			364				6,824				—				7,188
Other operating expenses			20,869				15,000				(19,175	)			16,694
Total operating expenses			32,941				41,326				(20,006	)			54,261
Total other income			2,965				32,354				(17,328	)			17,991
Net income (loss) before income taxes			35,376				(26,467	)			5,412				14,321
Income tax expense			3,095				8,067				—				11,162
Net income (loss)		$	32,281			$	(34,534	)		$	5,412			$	3,159

		Three Months Ended December 31, 2010
						OTHER
		CAPITALSOURCE				COMMERCIAL				INTERCOMPANY
		BANK				FINANCE				ELIMINATIONS				CONSOLIDATED
Net interest income:
Interest income		$	87,033			$	66,523			$	(3,179	)		$	150,377
Interest expense			15,511				32,919				—				48,430
Net interest income			71,522				33,604				(3,179	)			101,947
Provision for loan losses			9,755				14,352				—				24,107
Net interest income after provision for loan losses			61,767				19,252				(3,179	)			77,840
Compensation and benefits			10,773				19,133				—				29,906
Professional fees			530				8,277				—				8,807
Other operating expenses			20,213				15,322				(17,257	)			18,278
Total operating expenses			31,516				42,732				(17,257	)			56,991
Total other income (expense)			5,312				(5,226	)			(16,990	)			(16,904	)
Net income (loss) before income taxes			35,563				(28,706	)			(2,912	)			3,945
Income tax expense (benefit)			18,854				(20,820	)			—				(1,966	)
Net income (loss)		$	16,709			$	(7,886	)		$	(2,912	)		$	5,911

		Three Months Ended March 31, 2010
						OTHER
		CAPITALSOURCE				COMMERCIAL				INTERCOMPANY
		BANK				FINANCE				ELIMINATIONS				CONSOLIDATED
Net interest income:
Interest income		$	81,454			$	92,333			$	(2,373	)		$	171,414
Interest expense			17,301				47,700				—				65,001
Net interest income			64,153				44,633				(2,373	)			106,413
Provision for loan losses			87,704				131,236				—				218,940
Net interest loss after provision for loan losses			(23,551	)			(86,603	)			(2,373	)			(112,527	)
Compensation and benefits			11,120				23,063				—				34,183
Professional fees			515				9,855				—				10,370
Other operating expenses			12,700				17,589				(11,637	)			18,652
Total operating expenses			24,335				50,507				(11,637	)			63,205
Total other income (expense)			8,159				(18,978	)			(11,456	)			(22,275	)
Net loss from continuing operations before income taxes			(39,727	)			(156,088	)			(2,192	)			(198,007	)
Income tax (benefit) expense			(56	)			21,062				—				21,006
Net loss from continuing operations		$	(39,671	)		$	(177,150	)		$	(2,192	)		$	(219,013	)

CapitalSource Inc.
Segment Balance Sheets
(Unaudited)
($ in thousands)

		March 31, 2011																December 31, 2010
						OTHER																OTHER
		CAPITALSOURCE				COMMERCIAL				INTERCOMPANY								CAPITALSOURCE				COMMERCIAL				INTERCOMPANY
		BANK				FINANCE				ELIMINATIONS				CONSOLIDATED				BANK				FINANCE				ELIMINATIONS				CONSOLIDATED
ASSETS
Cash and cash equivalents and restricted cash		$	440,928			$	787,144			$	—			$	1,228,072			$	377,054			$	571,982			$	—			$	949,036
Investment securities:
Available-for-sale			1,348,771				21,582				—				1,370,353				1,510,384				12,527				—				1,522,911
Held-to-maturity			179,077				—				—				179,077				184,473				—				—				184,473
Loans			3,947,080				2,037,692				7,438				5,992,210				3,777,975				2,471,506				2,291				6,251,772
Allowance for loan losses			(132,970	)			(150,304	)			—				(283,274	)			(124,878	)			(204,244	)			—				(329,122	)
Loans, net of allowance for loan losses			3,814,110				1,887,388				7,438				5,708,936				3,653,097				2,267,262				2,291				5,922,650
Receivables due from affiliates			2,547				40,811				(43,358	)			—				1,265				87,972				(89,237	)			—
Other assets			394,648				396,042				(3,790	)			786,900				391,095				479,154				(3,912	)			866,337
Total assets		$	6,180,081			$	3,132,967			$	(39,710	)		$	9,273,338			$	6,117,368			$	3,418,897			$	(90,858	)		$	9,445,407
LIABILITIES AND SHAREHOLDERS’ EQUITY
Liabilities:
Deposits		$	4,708,349			$	—			$	—			$	4,708,349			$	4,621,273			$	—			$	—			$	4,621,273
Borrowings			400,000				1,832,261				—				2,232,261				412,000				2,010,646				—				2,422,646
Balance due to affiliates			40,811				2,547				(43,358	)			—				87,972				1,265				(89,237	)			—
Other liabilities			73,464				193,638				(5,810	)			261,292				71,480				281,733				(5,667	)			347,546
Total liabilities			5,222,624				2,028,446				(49,168	)			7,201,902				5,192,725				2,293,644				(94,904	)			7,391,465
Shareholders’ equity:
Common stock			921,000				3,233				(921,000	)			3,233				921,000				3,232				(921,000	)			3,232
Additional paid-in capital/retained earnings/deficit			30,767				1,076,922				936,148				2,043,837				(2,381	)			1,112,080				931,070				2,040,769
Accumulated other comprehensive income, net			5,690				24,366				(5,690	)			24,366				6,024				9,941				(6,024	)			9,941
Total shareholders’ equity			957,457				1,104,521				9,458				2,071,436				924,643				1,125,253				4,046				2,053,942
Total liabilities and shareholders’ equity		$	6,180,081			$	3,132,967			$	(39,710	)		$	9,273,338			$	6,117,368			$	3,418,897			$	(90,858	)		$	9,445,407
Book value per outstanding share		$	2.96			$	3.42			$	0.03			$	6.41			$	2.86			$	3.48			$	0.01			$	6.35