CapitalSource Inc. is a commercial lender that provides financial products to middle market businesses. Through its wholly owned subsidiary, CapitalSource Bank, the Company provides depository products and services in southern and central California. It operates through three segments. The Commercial Banking segment comprises the Company’s commercial lending and banking business activities. The Healthcare Net Lease segment comprises its direct real estate investment business activities. The Residential Mortgage Investment segment comprises the Company’s remaining residential mortgage investment and other investment activities, in which it formerly engaged to optimize its qualification as a real estate investment trust. In July 2008, the Company acquired approximately $5.2 billion of deposits, the commercial real estate participation interest (the A Participation Interest) and 22 retail banking branches from Fremont Investment & Loan and commenced operations of CapitalSource Bank.