Post on 19-Mar-2022
J.P. Morgan SMid Cap Conference l December 5, 2008 l p. 2
Forward Looking Statements
This presentation contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of1995, including certain plans, expectations, goals, and projections and including statements about growing our commerciallending business and deposits and CapitalSource Bank’s operations, our position to make investments and loans, riskadjusted returns, margins, profits and cost of funds, credit standards and performance, charge offs and delinquencies,economic and market conditions affecting our business and our customers, loan yields and structures, industry dynamics, thestrength of our balance sheet and liquidity, our strategy of converting to a commercial bank and becoming a bank holdingcompany, the products and services we could then provide, our application for TARP funding, paydown of the “A”Participation Interest, our intentions regarding our REIT status and to sell assets, our structure and leverage, and ourintentions regarding our healthcare net lease business and possible acquisitions, all which are subject to numerousassumptions, risks, and uncertainties. All statements contained in this presentation that are not clearly historical in nature areforward-looking, and the words "anticipate," "assume," "intend," "believe," "expect," "estimate," "plan," “position,” “project,”"will," "look forward," and similar expressions are generally intended to identify forward-looking statements. All forward-looking statements (including statements regarding future financial and operating results and future transactions and theirresults) 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 coulddiffer materially from those contained or implied by such statements for a variety of factors, including without limitation: ourrecently completed bank transaction; changes in economic or market conditions or investment or lending opportunities;continued or worsening recession in the overall economy and disruptions in credit and other markets; movements in interestrates and lending spreads; continued or worsening charge offs and delinquencies; our ability to successfully and costeffectively operate CapitalSource Bank; our ability to successfully grow CapitalSource Bank's deposits and commercial loanassets or deploy its capital in favorable lending transactions or acquire assets in accordance with our strategic plan;competitive and other market pressures on product pricing and services; we may not receive all approvals needed to convertto a commercial bank or become a bank holding company or realize opportunities under the Federal Stabilization Act;success and timing of other business strategies; the nature, extent, and timing of governmental actions and reforms; changesin tax laws or regulations affecting REITs or our business otherwise, extended disruption of vital infrastructure; the impact ofour dividend policy; our ability to successfully operate after revoking our REIT election and to sell certain assets; our ability tosuccessfully convert into a commercial bank and become a bank holding company and thereafter to successfully and costeffectively operate as such; our ability to successfully consummate a transaction with respect to our healthcare net leasebusiness; and other factors described in CapitalSource's 2007 Annual Report on Form 10-K and documents subsequentlyfiled by CapitalSource with the Securities and Exchange Commission. All forward-looking statements included in thispresentation are based on information available at the time of the presentation. We are under no obligation to (and expresslydisclaim any such obligation to) update or alter our forward-looking statements, whether as a result of new information, futureevents or otherwise.
Agenda
CapitalSource Overview/Transformation to Commercial Bank
Commercial Lending Platform
Healthcare Net Lease Business
CapitalSource Bank Overview
Key Drivers of Future Financial Performance
J.P. Morgan SMid Cap Conference l December 5, 2008 l p. 4
CapitalSource Overview
Leading commercial lending franchise focused on the middlemarket Large scale, broad-based middle market lending platform Diverse portfolio of over $12.1 Billion in commercial loans and lease
assets Over 1,000 loans to small and medium-size businesses Financing of small and medium sized businesses for working capital,
growth, acquisitions or recapitalizations Successful public company (NYSE: CSE) in the midst of a
strategic transformation to a commercial banking model Launched bank strategy more than two years ago Commenced operations of CapitalSource Bank in July 2008 Initial Bank business plan anticipated a change to a Commercial Bank
charter and Bank Holding Company status Approved in November by FDIC and California DFI to convert
CapitalSource Bank from Industrial Bank to Commercial Bank charter Submitted Bank Holding Company Application to the Federal Reserve in
OctoberAll data as of September 30, 2008(1) CapitalSource consolidated
J.P. Morgan SMid Cap Conference l December 5, 2008 l p. 5
CapitalSource Overview
Ability to “Play Offense” due to sound financial footing Well capitalized – 17.5% capital ratio(1) in Commercial Banking segment Diversified funding platform, including
$5.0 billion of bank deposits / same branches had over $8.4 billion in 1Q’07 $0.9 billion in FHLB borrowing capacity $3.7 billion in match-funded commercial loan securitizations $2.7 billion in credit facility capacity - $1.5 billion drawn
Investment grade ratings from S&P and Fitch Low leverage
Focused lending strategy Diverse lending platform, with healthcare concentration Multiple lending groups compete on service, expertise and industry insight Non-commodity products and national, direct origination capability Proprietary in-house audit and due diligence resources Superior risk-adjusted returns and credit outcomes since 2000
Seasoned, proven management team 15+ years of middle market lending experience
Strong shareholder alignment Management, directors and certain of their affiliates beneficially own
approximately 32% of outstanding shares
Data as of September 30, 2008(1) Capital Ratio measured as equity to total assets for the Commercial Banking segment
J.P. Morgan SMid Cap Conference l December 5, 2008 l p. 6
Our Successful Business Model
“In-Sourced” credit process
Origination
Forensic accounting/underwriting
Credit approval
Syndication
Loan servicing
Audit
Legal
Loan management
Senior debt orientation
High asset quality – approximately 87% of loan assets are senior loans
Operational scale and expertise
Focused direct origination teams with deep industry specific experience
Large scale origination, underwriting and loan managementinfrastructure
“End-to-End” controlof the lending process
Data as of September 30, 2008
J.P. Morgan SMid Cap Conference l December 5, 2008 l p. 7
Outlook for Credit Performance
Despite the challenging economy, we expect CapitalSource creditperformance will be manageable because of:
The U.S. economy is in recession - challenges affecting financial institutionsare impacting both businesses and consumers
Deterioration is expected to continue well into 2009
The U.S. economy is in recession - challenges affecting financial institutionsare impacting both businesses and consumers
Deterioration is expected to continue well into 2009
The way we built our business:• Specialized expertise in focused markets• A diverse portfolio anchored in recession resistant sectors, such as healthcare• Senior debt orientation
The way we manage our business:• Direct origination focus• End-to-end control of the lending / credit process, including forensicaccounting group• Credit-first approach and intense underwriting discipline
The way we built our business:• Specialized expertise in focused markets• A diverse portfolio anchored in recession resistant sectors, such as healthcare• Senior debt orientation
The way we manage our business:• Direct origination focus• End-to-end control of the lending / credit process, including forensicaccounting group• Credit-first approach and intense underwriting discipline
J.P. Morgan SMid Cap Conference l December 5, 2008 l p. 8
The CapitalSource Lending Process
Our Credit Edge
A Bias Toward Specialization
The Market Opportunity
J.P. Morgan SMid Cap Conference l December 5, 2008 l p. 9
Our Credit “Edge”
UnderwritingOfficer
DevelopmentOfficer
InvestmentOfficer
Credit Committee
Loan Officer
Loan Analyst
Origination Underwriting Approval Servicing
Producing attractive risk-adjusted returns within the middlemarket by providing non-commodity solutions to clients
J.P. Morgan SMid Cap Conference l December 5, 2008 l p. 10
A Bias Towards Specialization
Healthcare Credit
Healthcare Real Estate
Healthcare Cash Flow
Media
Technology
Retail
Security Lending
Commercial Real Estate
Lender Finance
First Mortgage/Acquisition Loans
Sale-Leasebacks
Asset-Based Loans Secured byAccounts Receivable, Inventory &Other Assets
Cash Flow Loans for SponsoredLBOs
Equity Co-Investments
Specialty Lending Groups Products
Exposure across multiple industries and sectors leads to a morestable risk management profile
J.P. Morgan SMid Cap Conference l December 5, 2008 l p. 11
The Benefits of Specialization
LOW
HIGH
LOW
HIGH
The CapitalSource Zone
EXPERTISE
RE
LA
TIV
EC
OM
PE
TIT
ION
GenericABL
ConduitReal Estate
LargeSponsor
Cash Flow
MezzanineLoans
LenderFinance
Technology HealthCareReal Estate
HealthcareABL
HealthcareCash Flow
Higher RiskAdjusted Returns
Retail
Security Mediaand Comm.
GeneralCash Flow
J.P. Morgan SMid Cap Conference l December 5, 2008 l p. 12
The Market Opportunity for CapitalSource
Banks and financial service companies world-wide are under-capitalized, de-leveraging and on the defensive
Many competitors have left the market
CapitalSource is able to combine lending expertise, capital andliquidity to take advantage of “once in a lifetime” lendingopportunities
Our commitment to specialization enhances customer service
New loans are being written with conservative structures and atvery high yields
Secondary purchases, portfolio and business acquisitions arealso very attractive
Economic downturns historically are good times to make newloans as higher spreads more than offset higher credit costs
J.P. Morgan SMid Cap Conference l December 5, 2008 l p. 13
Healthcare Net Lease Business
A Source of Strength for CapitalSource andCapitalSource Bank
J.P. Morgan SMid Cap Conference l December 5, 2008 l p. 14
Healthcare Net Lease Segment
We provide long-term financing secured by income producinghealthcare-related facilities, primarily skilled nursing facilities
One of the largest portfolios of skilled nursing facilities in the U.S. $1.0 Billion portfolio of “direct real estate” assets 186 facilities located in 23 states / 40 third-party operators Annual operating lease income in excess of $100 million(1)
Long-term assets with stable cash flows Triple-net lease structure / low cost of ownership 86% of leases expire in 2013 or later Rent coverage of 2.2x before management fees Guaranteed lease escalators
Well capitalized business Equity of 35.6% of total assets
Synergies with Commercial Banking segment Same customer base We have the broadest product offering among our competitors CapitalSource is a recognized leader in the industry
As of September 30, 2008(1) Actual operating lease income of $80.0 million through 9/30/08
J.P. Morgan SMid Cap Conference l December 5, 2008 l p. 16
CapitalSource Bank
Realization of well-planned strategy to pairour high-performing commercial lendingbusiness with a robust depository Commenced operations as a de novo California
Industrial Bank in July 2008 A clean asset purchase of bank branches and
deposits Meaningful scale without asset quality
issues $5.0 billion in retail deposits 22 bank branches with 65,000 customers
throughout southern California Approximately 350 employees, including ~200
legacy hires and ~150 from CapitalSource
Talented and experienced bankingexecutive (Tad Lowrey) is CEO & President Chairman, CEO & President of Jackson Federal
Bank (1999-2005) CEO of CenFed Bank (1990-1998) Current Director of the Federal Home Loan
Bank of San Francisco Distinguished, independent Board of
Directors
CapitalSource Bank Branches
All data as of September 30, 2008
J.P. Morgan SMid Cap Conference l December 5, 2008 l p. 17
CapitalSource Bank Going Forward
CapitalSource Bank is already having a significant impact
Approximately 44% of our commercial lending assets, cash andmarketable securities are in CapitalSource Bank
Deposits currently provide approximately 45% of funding for ourCommercial Banking segment
The cost of funds in CapitalSource Bank is 150-200 bps lower thanwholesale markets
CapitalSource Bank will continue to increase in significance
Retail deposits can grow as needed to support new lending
Planned conversion to a commercial bank charter will broaden thevariety of deposit products (e.g., lock boxes), services and customerbase
Well capitalized, highly liquid CapitalSource Bank balance sheetpositions us to acquire other depositories at attractive prices
All data as of 9/30/08
J.P. Morgan SMid Cap Conference l December 5, 2008 l p. 18
Status of Commercial Bank and TARP Funding Applications
CapitalSource Bank currently operates as a California industrialbank, while pursuing conversion to a commercial bank
Our commercial bank charter applications were approved by theState of California in late October and the FDIC on November14th
CapitalSource bank holding company approval is now pendingwith the Federal Reserve (needed to complete the transition to acommercial bank)
Applications were submitted in late October for TARP fundingfor CapitalSource Inc. and CapitalSource Bank
J.P. Morgan SMid Cap Conference l December 5, 2008 l p. 19
The Strategic Transformation to a CommercialBank is Successfully Underway
Key Drivers of Financial Performance
Bank Transformation Began in 3Q
Becoming a Simple Story
J.P. Morgan SMid Cap Conference l December 5, 2008 l p. 20
Key Drivers of CapitalSource Financial Performance
Asset growth
Very attractive lending and loan purchase environment allows CapitalSource togrow its balance sheet in a highly profitable way
Originating new, senior loans underwritten to 600-800 bps over LIBOR
Utilization of CapitalSource Bank
Increasing both the percentage of commercial loans in CapitalSource Bank andpercentage of funding from deposits will drive higher returns
Cost of Funds
Migration of the balance sheet to CapitalSource Bank will drive down the cost offunds, thereby increasing margins
Operating Expenses
Balance sheet growth will leverage fixed cost investments in lending and retailbanking platforms to drive efficiencies
Credit
Higher than normal charge offs are expected to be manageable, but to continuedue to macro economic conditions and market dislocation
Higher spreads on new loans compensate for higher credit costs
J.P. Morgan SMid Cap Conference l December 5, 2008 l p. 21
The Transformation to CapitalSource Bank Began in 3Q
Profitable quarter despite challenging economic environment
3Q was the initial quarter with CapitalSource Bank
Significant balance sheet growth (+ $5 billion)
Resumed growth in commercial loan portfolio ($295 million new loansclosed)
Cost of funds declined with the addition of deposits (average cost of3.37%)
Operating expenses declined to 1.2%(1) of average total assets
Commercial loan yield remained strong at 9.54%
As of September 30, 2008
(1) Excludes direct real estate depreciation
J.P. Morgan SMid Cap Conference l December 5, 2008 l p. 22
Becoming a Simple Story
CapitalSource will no longer be a REIT after 2008
Plan to prudently sell residential mortgage compliance portfolio inearly 2009
Legacy portfolio outside CapitalSource Bank will continue to run off
Plan to realize value of Healthcare Net Lease business (IPO orotherwise)
Change of charter to commercial bank from industrial bank is wellunder way – only Federal Reserve approval remains
New business is being originated in CapitalSource Bank
New loans in CapitalSource Bank are being made at very attractivespreads, producing high ROEs
Most CapitalSource assets expected to be in CapitalSource Bank inapproximately three years
J.P. Morgan SMid Cap Conference l December 5, 2008 l p. 24
Supplemental InformationOverview of Three CapitalSource Lending Groups
Credit Performance – 9/30/06-9/30/08
CapitalSource Loans and Lease Assets – Portfolio Overview
CapitalSource Bank Balance Sheet
CapitalSource Bank Senior Management and Board
J.P. Morgan SMid Cap Conference l December 5, 2008 l p. 25
Commercial Banking – HealthCare & Specialty Finance
First mortgage/acquisition loans secured by realestate of healthcare facilities
Asset-Based loans secured by accountsreceivable, inventory, equipment & other assets
Cash flow loans for sponsored LBOs
HUD/FNMA loans
Average loan size of $11.0 million per client (1)
First mortgage/acquisition loans secured by realestate of healthcare facilities
Asset-Based loans secured by accountsreceivable, inventory, equipment & other assets
Cash flow loans for sponsored LBOs
HUD/FNMA loans
Average loan size of $11.0 million per client (1)
Intense collateral review; funding controls
In-house reimbursement & clinical expertise
Proprietary loan management capabilities
Superior healthcare workout experience
Domain expertise in healthcare and security
Intense collateral review; funding controls
In-house reimbursement & clinical expertise
Proprietary loan management capabilities
Superior healthcare workout experience
Domain expertise in healthcare and security
Healthcare is 1/6th of U.S. economy
Attractive demographic trends & politicalenvironment resistant to changeDominated by small & mid-sized borrowers
Underserved by traditional lenders
Unaffected by general economic conditions
Undergoing rapid growth and changeGovernment focus on Homeland Security & publicsafety
Healthcare is 1/6th of U.S. economy
Attractive demographic trends & politicalenvironment resistant to changeDominated by small & mid-sized borrowers
Underserved by traditional lenders
Unaffected by general economic conditions
Undergoing rapid growth and changeGovernment focus on Homeland Security & publicsafety
Owners/operators across senior housingcontinuum
Middle market healthcare service companies
Hospitals
Healthcare specific private equity firms
Security alarm dealers
Government contractors focused on homelandsecurity and public safety
Owners/operators across senior housingcontinuum
Middle market healthcare service companies
Hospitals
Healthcare specific private equity firms
Security alarm dealers
Government contractors focused on homelandsecurity and public safety
Competitive Advantages
Loans Types Market Opportunity
Target Borrowers
(1) As of September 30, 2008
J.P. Morgan SMid Cap Conference l December 5, 2008 l p. 26
Commercial Banking – Corporate Finance
Asset based revolvers
Senior secured cash flow loans
Increasingly organized into small specialty teams
Average loan size of $11.0 million per client (1)
Asset based revolvers
Senior secured cash flow loans
Increasingly organized into small specialty teams
Average loan size of $11.0 million per client (1)
Creativity
“One-stop” shop reputation as reliable lender
Specific industry expertise
Execution
Flexibility
Speed
Creativity
“One-stop” shop reputation as reliable lender
Specific industry expertise
Execution
Flexibility
Speed
Unprecedented lack of competition
Multiple contraction
Yields are widening
Deal structures are increasingly attractive
Unprecedented lack of competition
Multiple contraction
Yields are widening
Deal structures are increasingly attractive
Focus on industries with experience & expertise
Leadership in market niches
Experienced management team & sponsors
Private equity firms (approx. 200 sponsorrelationships)
Companies with strong historical cash flows
Limited operating leverage & event risk
Focus on industries with experience & expertise
Leadership in market niches
Experienced management team & sponsors
Private equity firms (approx. 200 sponsorrelationships)
Companies with strong historical cash flows
Limited operating leverage & event risk
Competitive Advantages
Loan Types Market Opportunity
Target Borrowers
(1) As of September 30, 2008
J.P. Morgan SMid Cap Conference l December 5, 2008 l p. 27
Commercial Banking – Structured Finance
Asset-based loans
Lender Finance: senior asset-based revolvers
Real Estate: predominately first mortgage debt
Average loan size of $21.7 million per client (1)
Asset-based loans
Lender Finance: senior asset-based revolvers
Real Estate: predominately first mortgage debt
Average loan size of $21.7 million per client (1)
Sophisticated structuring capabilities
Flexibility
Expertise
Speed
“One-stop” shop
Lender Finance: intense collateral analysis
Real Estate: property & market specific analysis
Portfolio acquisition experience/expertise
Sophisticated structuring capabilities
Flexibility
Expertise
Speed
“One-stop” shop
Lender Finance: intense collateral analysis
Real Estate: property & market specific analysis
Portfolio acquisition experience/expertise
Market segments that require highly specializedlending expertise
Fragmented & underserved
Need for highly customized solutions
Market segments that require highly specializedlending expertise
Fragmented & underserved
Need for highly customized solutions
Specialty lenders
Mortgage companies
Consumer & commercial lenders
Real estate developers/investors/funds
Sponsors/funds
Privately held finance companies
Specialty lenders
Mortgage companies
Consumer & commercial lenders
Real estate developers/investors/funds
Sponsors/funds
Privately held finance companies
Competitive Advantages
Loan Types Market Opportunity
Target Borrowers
(1) As of September 30, 2008
J.P. Morgan SMid Cap Conference l December 5, 2008 l p. 28
Credit Performance – 9/30/06 to 9/30/08
(1) Commercial Lending Assets includes: commercial loans, loans held for sale, receivables under reverse-repurchase agreements, commercial real estate “A”Participation Interest and related accrued interest.
9/30/08 6/30/08 3/31/08 12/31/07 9/30/07 6/30/07 3/31/07 12/31/06 9/30/06
Loans 60 or more days contractually delinquent 1.81% 1.16% 0.77% 0.75% 0.74% 1.09% 0.85% 1.12% 0.84%
Loans on non-accrual 2.39% 2.20% 1.79% 1.73% 1.76% 1.97% 1.78% 2.34% 2.39%
Allowance for Loan Loss: 1.48% 1.50% 1.40% 1.41% 1.16% 1.43% 1.45% 1.54% 1.40%
Net Charge Offs (trailing twelve months): 1.17% 0.66% 0.57% 0.64% 0.76% 0.75% 0.78% 0.69% 0.57%
Credit Metrics as % of Commercial Lending Assets
J.P. Morgan SMid Cap Conference l December 5, 2008 l p. 29
Allowance for Loan Losses Boosted in 3Q
Reserves and charge offs increased in 3Q’08, driven by macro economicconditions and market dislocation
Charge off levels expected to be manageable because of defensivenature of portfolio, including healthcare concentration
Allowance for loan losses increased in 3Q’08 to account for current andprojected economic conditions
Note: Data as of 9/30/08
(1) Commercial loans include: commercial loans, loans held for sale, receivables under reverse-repurchase agreements, and relatedaccrued interest
$141.1$136.7$138.9
$111.7
$127.5$125.2$120.6
$102.7
$163.9
1.43%
1.16%
1.74%
1.50%
1.40%1.41%1.45%
1.54%
1.40%
9/30/086/30/083/31/0812/31/079/30/076/30/073/31/0712/31/069/30/06
Allowance ($) Allowance % of Commercial Loans(1)
J.P. Morgan SMid Cap Conference l December 5, 2008 l p. 30
Commercial Loans and Lease Assets - Portfolio Overview
All data as of September 30, 2008(1) Commercial Loans include: Loans, loans held for sale, receivables under reverse-repurchase agreements andrelated accrued interest(2) Acquired 7/25/08 as part of CapitalSource Bank Asset Purchase(3) Commercial Lending Assets includes: commercial loans, loans held for sale, receivables under reverse-repurchase agreements, commercial real estate “A” Participation Interest and related accrued interest.
($ in thousands) $ Balance% ofTotal
LoanCount
AverageLoan Size
Number ofClients
Structured Finance $3,837,963 32% 211 $18,189 177
Healthcare & Specialty Finance $2,822,086 23% 371 $7,607 256
Corporate Finance $2,766,461 23% 503 $5,500 251
Total Commercial Loans (1) $9,426,510 78% 1,085 $8,688 684
"A" Participation Interest (2) $1,626,602 13%
Total Commercial Lending Assets (3) $11,053,112 92%
Healthcare Net Lease $998,834 8%
Total $12,051,946 100%
J.P. Morgan SMid Cap Conference l December 5, 2008 l p. 31
Cash and Marketable Securities 1.9$ Deposits 5.0$
Commercial Lending Assets 4.0 Other Liabilities 0.1
Goodwill and other 0.2Equity 1.0
Total 6.1$ Total 6.1$
Significant Liquidity and a Clean Balance Sheet
Note: Data as of 9/30/08
(1) Commercial Lending Assets includes: commercial loans, loans held for sale, receivables under reverse-repurchaseagreements, commercial real estate “A” Participation Interest and related accrued interest.
$2.4 billion commercial loans
$1.6 billion Commercial Real Estate “A” ParticipationInterest which is:
Highly secured by $4.7 billion diverse portfolio
Represents 36% of underlying loan balance
Receives 70% of total monthly principalcollections on underlying loans
Projected to completely repay over ~ next 12months
CapitalSource Bank
Interest-Bearing Account Type Amount
WeightedAverageInterest
Rate
Savings & Money market 608,629$ 2.69%
Certificates of Deposits (inc. brokered) 4,439,622$ 3.58%
Total Interest-Bearing Deposits 5,048,251$ 3.48%
J.P. Morgan SMid Cap Conference l December 5, 2008 l p. 32
CapitalSource Bank – Management & Board
CapitalSource Bank Management:
Tad Lowrey – President and CEO, CapitalSource Bank.
Jill Barnes – Executive Vice President and President-Retail Bank.
John Bogler – Executive Vice President, Chief Financial Officer
Bryan Corsini – Executive Vice President & President-Credit Administration
Chris Scardelletti – Executive Vice President, Chief Credit Officer
Steve Museles – Executive Vice President and Chief Legal Officer
CapitalSource Bank Board of Directors:
John K. Delaney serves as Chairman of the Board. He is the co-founder, Chairman and CEO of CapitalSource.
Joseph Colmery has been a principal of JCSD Capital, LLC and the principal portfolio manager of JCSD Partners since late 2004. Formerly, hewas the President and CEO of U.S. Bank of California and served as President and CEO of California Bancshares Inc. (1987-96). From 1984 to1986, Mr. Colmery was President and CEO of Diablo Bank, which was acquired by Security Pacific National Bank.
William Fike served as President of Umpqua Bank (California) from 2005 until his retirement in April of 2008. Previously, he served as thePresident and CEO of Sierra West Bank, which was sold to Bank of the West in 1999. Mr. Fike has also served as Chairman of the CaliforniaBankers Association.
Tad Lowrey President and CEO, CapitalSource Bank. Prior to joining CapitalSource Bank in 2008, served as Chairman, President and CEO ofJackson Federal Bank from 1999 until 2005 and CEO of CenFed Bank and its publicly owned holding company, CENFED Financial Corporation(NASDAQ: CENF) from 1990 – 1998. Mr. Lowrey is an elected director of the Federal Home Loan Bank of San Francisco.
Roger H. Molvar served until March 2008 as director of Farmers & Merchants Bank of Long Beach, California. From 2000 to 2004, he served asExecutive Vice President of IndyMac Bancorp and as Chief Executive Officer of IndyMac Consumer Bank. Previously, Mr. Molvar served asSenior Vice President and Comptroller for First Interstate Bank of California.
David J. Munio served as Executive Vice President and Chief Credit Officer for Wells Fargo and Company from 2001 until his retirement in 2006.
Robert Walker served as Vice Chairman of the Board of the Union Bank of California, N.A. and its parent holding company from July 1992 untilhis retirement in July 2004. Union Bank of California merged with Bank of California in April of 1996.