CapitalSource reported net income for the second quarter of 2010 was $18 million compared to a net loss of $212 million in the prior quarter and a net loss of $247 million in the second quarter of 2009.

CaptialSource noted a substantial reduction in loan loss provision charges of $25.3 million in the second quarter, down from $218.9 million sequentially and $203.8 million for the same quarter last year. The finance company also said that its new funded loans at CapitalSource Bank increased to $441 million, the highest quarterly total in more than two years.

Executive chairman, John K. Delany said, "Our profitability and overall performance in the second quarter represent a turning point for CapitalSource and reflect the work we have done strategically and operationally over the last two years. The significant decline in quarterly provisions to only $25 million reflects general stabilization in the credit performance of our legacy loan portfolio and the effect of our provisioning across the last several quarters."

Click here to access the earnings report in its entirety.