CapitalSource posts $274 million loss citing commercial loans

by LJ Miehe on November 4, 2009

Editor’s Note:  Most interesting piece of this news piece is that they increased their commercial loan loss reserves by over 100% .  This tells me they are anticipating many more losses going forward from their commercial loan inventory.

Business Journals, Washington D.C.:

The company’s $221 million third quarter loan loss provision, which it set aside to cover loans that may have to be written off, was double the $110 million loss provision it posted a year ago.

“Despite declining charge-offs [compared to the second quarter], we increased our general provision for commercial loan losses this quarter in light of continuing stress in our commercial real estate portfolio,” said John Delaney, CapitalSource chairman and CEO in a statement.

The company’s overall assets were $14.2 billion, down 23 percent from the beginning of the year.

Source: Business Journal

Previous post:

Next post: