CapitalSource announced first quarter 2011 net income was $3 million compared to net income in the prior quarter of $6 million and a net loss of $212 million in the first quarter 2010.

“New loans funded in the first quarter of $627 million represented the highest quarterly production since the formation of CapitalSource Bank in July 2008. The largest concentration of new loans in the quarter was multifamily, although our equipment finance and timeshare receivables businesses were also significant contributors,” said James J. Pieczynski, CapitalSource co-CEO. “With such a solid start, we now see a reasonable chance for full year originations to exceed our previous guidance of $1.8-1.9 billion.”

Loan production during the quarter was up from $536 million in the prior quarter, driving a 4% increase in the loan portfolio balance. The three new origination platforms added in 2010 – equipment finance, small business and professional practice lending – accounted for 20% of the new production volume in the quarter.

To read the full text of the CapitalSource news release: click here.