Glossary

CapitalSource Bank

CapitalSource Bank is an indirect wholly owned subsidiary of CapitalSource Inc. It commenced operations on July 28, 2008. For current information on CapitalSource Bank, view our most recent earnings release, 10Q/10K, or visit capitalsourcebank.com.

CapitalSource Bank Segment

The company's commercial lending and banking activities conducted in CapitalSource Bank.

Cash Flow Loan

Loans are made based on the cash flow of a business.

Charge Off

When a company makes a determination that a loan or other debt is uncollectible it is charged off against an allowance for loan losses. To view CapitalSource's historic charge offs, please visit the credit page of our website.

Commercial Lending Assets

CapitalSource's commercial lending assets include: loans, loans held for sale, receivables under reverse-repurchase agreements, the “A” Participation Interest, and related accrued interest.

Common Stock

The most frequently issued class of stock issued by public companies. Usually provides a voting right and, in certain cases, the right to dividends; however, it is secondary to preferred stock in dividend and liquidation rights.

Convertible Bonds

A debenture that may be exchanged by the owner for common stock or another security, usually of the same company, in accordance with the terms of the issue. For information on CapitalSource's convertible debt, please visit our convertible debt page.

Cost of Funds

The cost of capital used to fund a company’s business.