NewStar Financial Reports $250 Million Q2 Loan Volume

AUG 3, 2011 - 9:35 am

NewStar Financial, a specialized commercial finance company, reported adjusted net income for the second quarter of 2011 of $3.7 million, On a GAAP basis, the company reported net income of $3.4 million, which reflected $0.2 million after-tax non-cash equity compensation expense related to the 2006 IPO.

Chairman and chief executive officer Tim Conway said, “New funded loan volume was $250 million in the quarter, which was our best performance since 2007 and puts us on pace to reach $1 billion for the full year. Our net interest margin also improved as spreads on new loans were accretive to our overall portfolio yield and we reduced non-accruing assets by 14%.”

The following commentary was excerpted from the NewStar news release:

Total funded loan origination volume for the second quarter of 2011 was $250 million compared to $160 million in the first quarter.

Asset-based lending and equipment finance businesses originated $31.1 million, or 17.6% of new loan volume retained on the balance sheet.

The composition of the owned loan portfolio continued to reflect a focus on senior debt with 96% invested in 1st lien senior secured loans at June 30, 2011.

The managed loan portfolio was $2.3 billion as of June 30, 2011 (up from $2.2 billion as of March 31, 2011), reflecting the net impact of new loan origination, partially offset by prepayments and scheduled amortization of existing loans, as well as charge-offs.

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

Like this story? Begin each business day with news you need to know! Click here to register now for our FREE Daily E-News Broadcast and start YOUR day informed!