CapitalSource Inc. of Chevy Chase, Md., said Thursday that it swung to a $104 million loss in the first quarter, from a $5.2 million profit a year earlier, as credit quality worsened dramatically.

The net loss at the company's CapitalSource Bank, which was launched last summer, narrowed to $94,000, from $18.2 million in the fourth quarter. The bank's provision decreased by roughly half from the fourth quarter, to $24.9 million.

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