CapitalSource Inc. (CSE) said that its new bank subsidiary, CapitalSource Bank, has commenced operations and completed the acquisition of about $5.2 billion of retail deposits, 22 retail bank branches and about $5.2 billion in cash and other assets from Fremont Investment & Loan.
CapitalSource said that its subsidiary is also purchasing about $2.1 billion in commercial loans from CapitalSource. The loans were given a preliminary fair value of 99.5% of par by an experienced third party valuation firm.
The loan sale proceeds were used by CapitalSource to reduce its credit facility borrowings and certain securitizations by about $1.6 billion. The remaining amount of about $500 million was utilized as a portion of the initial Bank capitalization of $921 million.
CapitalSource Bank begins operations with a Tier 1 risk-based capital ratio of more than 15.6%. CapitalSource said that it has appointed Tad Lowrey as President and CEO of CapitalSource Bank, having received the written non-objection of the FDIC and DFI, while John Delaney will serve as Chairman of the board.
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June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.