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Nov 07, 2011

NewStar Hires Lisa DeSantis Adams to Expand West Coast Region

NewStar Business Credit, a division of NewStar Financial, Inc. (Nasdaq:NEWS) announced today that it has hired Lisa DeSantis Adams as a Senior Vice President and will open new offices in San Francisco, CA and Portland, OR. Adams will expand NewStar Business Credit's marketing and origination efforts in the West Coast region with responsibility for generating new asset-based financing opportunities with middle market companies.

Ms. Adams has more than 20 years of experience in structuring, originating and managing debt financings for middle market firms. Prior to joining NewStar, she was a Vice President with Union Bank Commercial Finance with responsibility for all phases of the lending process. Previously, Ms. Adams worked for Wells Fargo Capital Finance, Merrill Lynch Healthcare Finance and BMO (formerly Harris Bank).

"I am very happy to be part of a growth platform with NewStar's asset-based lending team. After working for years with middle market companies to provide financing solutions, I believe that NewStar Business Credit offers a great platform for me to provide creative and flexible asset-based financing options to midsized companies in the West Coast marketplace."

"Lisa is well known in the West Coast market and will be a great addition to our origination efforts in the region," said Milton Iskra, EVP and National Marketing Manager for NewStar. "I have known Lisa for a number of years, and am excited to have her join us. She adds substantial depth to our team with a valuable combination of marketing coverage, credit skills and deal execution experience." NewStar Business Credit provides asset-based loans to mid-sized companies operating across a variety of industries nationwide. Deals typically range in size from $5 million to $25 million and are structured to meet the unique needs of each client through a combination of revolving lines of credit and term loans.

About NewStar Financial, Inc.:

NewStar Financial (Nasdaq:NEWS) is a specialized commercial finance company focused on meeting the complex financing needs of companies and private investors in the middle markets. The Company specializes in providing a range of senior secured debt financing options to mid-sized companies to fund working capital, growth strategies, acquisitions and recapitalizations, as well as, equipment purchases. NewStar originates loans and leases directly through teams of experienced, senior bankers and marketing officers organized around key industry and market segments. The Company targets hold positions of up to $30 million and will selectively underwrite or arrange larger transactions for syndication to other lenders. NewStar is headquartered in Boston MA and has regional offices in Darien CT, Chicago IL, Dallas TX, Los Angeles CA, Portland OR and San Francisco CA. For more detailed information about our product capabilities, as well as, recent transaction and contact information, please visit our website at www.newstarfin.com.

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Nov 06, 2011

NewStar Financial to Participate in the Credit Suisse Financials 1x1 Conference

BOSTON, Nov. 7, 2011 (GLOBE NEWSWIRE) -- NewStar Financial, Inc. (Nasdaq:NEWS) announced today that it is scheduled to participate in the Credit Suisse Financials 1x1 Conference in Boston, MA on Thursday, November 10, 2011. About NewStar Financial, Inc.: NewStar Financial (Nasdaq:NEWS) is a specialized commercial finance company focused on meeting the complex financing needs of companies and private investors in the middle market. The Company specializes in providing senior secured debt financing options to mid-sized companies to fund working capital, growth strategies, acquisition and recapitalization, as well as, equipment purchases. NewStar originates loans and leases directly through a team of experienced, senior bankers and marketing officers organized around key industry and market segments. The Company targets 'hold' positions of up to $35 million and selectively underwrites or arranges larger transactions for syndication to other lenders. NewStar is headquartered in Boston MA and has regional offices in Darien CT, Chicago IL, Dallas TX, Los Angeles CA, and Philadelphia, PA. For more detailed transaction and contact information, please visit our website at www.newstarfin.com. The NewStar Financial, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=4044CONTACT: Corporate Inquiries: NewStar Financial Colleen M. Banse 617.848.2502 cbanse@newstarfin.com NewStar Financial Brian J. Fischesser 617.848.2512 bfischesser@newstarfin.com
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Nov 02, 2011

NewStar Reports Third Quarter 2011 Results

Net income of $3.4 million, or $5.1 million before impact of early retirement of CLO 2009-1 bonds Adjusted net income was $3.6 million, or $0.07 per diluted share New funded loan volume of $190 million drove net loan growth of $50 million, or 11% annualized Net interest margin before the impact of early debt retirement increased to 4.61% as loan yields continued to improve Credit costs decreased to $4.6 million from $6.3 million in prior quarter and NPAs declined 7% to 6% of loans Book value per share increased $0.12 to $11.27 and Board authorized another $10 million share repurchase program BOSTON, Nov. 2, 2011 (GLOBE NEWSWIRE) --NewStar Financial, Inc. (Nasdaq:NEWS), a specialized commercial finance company, today reported adjusted net income for the third quarter of 2011 of $3.6 million, or $0.07 per diluted share. On a GAAP basis, the Company reported net income of $3.4 million, or $0.06 per diluted share, which reflected $0.2 million after-tax non-cash equity compensation expense related to the 2006 IPO. "Adjusted net income" and other non-GAAP financial measures used in this release are defined under "Non-GAAP Financial Measures" on page 5. Reconciliations between GAAP and adjusted (non-GAAP) measures can be found in the attached financial tables. "I am pleased with our results in the third quarter. We maintained our momentum despite significant volatility - especially in the debt capital markets. Our results reflected strength in new business volume, as well as steady improvement in our credit performance and earnings capacity. We generated $190 million of new funded loan volume at very attractive spreads and net loan growth was 11% on an annualized basis," said Tim Conway, NewStar's Chairman and Chief Executive Officer. "Our credit performance also improved as credit costs and NPAs both declined. Loan growth and improving margins are also driving top line revenue gains and increasing our earnings power. Book value per share increased another $0.12 in the quarter to $11.27 as we continued to allocate capital to accretive share repurchases and opportunistic debt retirement."Managed and Owned Loan Portfolios Total funded loan origination volume for the third quarter of 2011 was $190 million compared to $250 million in the second quarter. Asset-based lending and equipment finance businesses originated $11 million, or 8.5% of new loan volume retained on the balance sheet. The owned loan portfolio increased 3% to $1.8 billion as of September 30, 2011 compared to June 30, 2011. 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 September 30, 2011. The owned loan portfolio continued to be balanced across industry sectors and highly diversified by issuer. As of September 30, 2011, no outstanding borrowings by a single issuer represented more than 1.7% of total loans outstanding, and the ten largest issuers comprised approximately 11% of the loan portfolio. The managed loan portfolio was $2.3 billion as of September 30, 2011 reflecting the net impact of new loan origination, partially offset by prepayments and scheduled amortization of existing loans, as well as charge-offs. Assets managed for the NCOF were approximately $500 million at September 30, 2011, up slightly from June 30, 2011.Net Interest Income / Margin Net interest income before provision for credit losses decreased to $18.8 million for the third quarter of 2011 compared to $20.0 million for the second quarter of 2011. Net interest margin narrowed to 3.98% for the third quarter of 2011 compared to 4.28% for the second quarter of 2011 due primarily to the accelerated amortization of deferred financing fees and unamortized discount related to the early retirement of bonds issued by the 2009-1 CLO. The net interest margin was 4.61% before the impact of the early retirement of CLO bonds.  Adjusting for the impact of non-performing loans, the loan portfolio yield would have been 45 bps higher and net interest margin would have been 4.23%, or 4.90% before the impact of early debt retirement.    Non-Interest Income Non-interest income was $3.4 million for the third quarter of 2011 compared to a loss of $0.8 million for the second quarter of 2011.  Non-interest income in the third quarter of 2011 consisted primarily of a $2.1 million gain on the repurchase of debt, $0.7 million of asset management income, $0.4 million of unused fees on revolving credit commitments, partially offset by a $0.6 million loss on certain equity interests retained in connection with various workouts.Expenses Operating expenses increased to $11.9 million in the third quarter of 2011 compared to $10.8 million in the second quarter of 2011 due primarily to higher professional fees. The Company had 88 full-time employees as of September 30, 2011.Income Taxes Deferred tax asset decreased to $47.1 million as of September 30, 2011 from $48.5 million as of June 30, 2011. The decrease in the deferred tax asset was driven primarily by differences in the timing of when credit costs and equity compensation expenses are recognized according to GAAP and when they are deductible for income tax.  Approximately $29.3 million and $14.2 million of the deferred tax asset as of September 30, 2011 were related to our allowance for credit losses and equity compensation, respectively.Loan Credit Quality Credit costs decreased to $4.6 million in the third quarter of 2011 from $6.3 million in the second quarter as an increase in provision expense was more than offset by lower losses on equity interests retained in connection with workouts of impaired loans.  The provision for credit losses increased to $4.4 million in the third quarter of 2011 compared to $2.3 million in the second quarter of 2011. Approximately $6.3 million of additional specific reserves were established in the third quarter of 2011, up slightly from $6.0 million in the second quarter of 2011. The allowance for credit losses decreased to $73.0 million, or 4.10% of loans and 70% of NPLs, at September 30, 2011, compared to $78.0 million, or 4.46% of loans, at June 30, 2011. One loan with a balance of $12.1 million as of September 30, 2011 was placed on non-accrual status in the third quarter of 2011. Non-performing assets decreased 7% from the second quarter of 2011 due to a 5% decline in non-accruing loans and the sale of an interest in one property, which was included in other real estate owned ("OREO"). At September 30, 2011, loans with an aggregate outstanding balance of $103.8 million, net of charge-offs, were on non-accrual status compared to loans with an aggregate outstanding balance of $109.0 million, net of charge-offs, at June 30, 2011. Non-performing assets, net of charge-offs, specific reserves and other adjustments were $103.8 million, or 40% of their aggregate face amount, as of September 30, 2011. Non-accrual loans with an outstanding balance of $75.7 million and an additional $8.4 million of loans as of September 30, 2011 were also delinquent loans.  Net charge-offs were $9.4 million, or 2.10% of loans on an annualized basis, in the third quarter of 2011 compared to $10.0 million, or 2.30% of loans on an annualized basis, in the second quarter of 2011. The Company sold its interest in one property, which was included in OREO for a loss of $0.2 million.  Funding and Capital Amended a credit facility with Wells Fargo as of July 12, 2011, increasing the size from $75 million to $125 million and extending the effective maturity by approximately three years. Called the Class B notes of our 2009-1 CLO as of August 1, 2011 as the Class A notes fully amortized early due to higher than expected loan collateral prepayments.    Balance sheet leverage remained steady at 2.4x as of September 30, 2011. Total cash and equivalents as of September 30, 2011 were $102.2 million, of which $27.6 million was unrestricted. Unrestricted cash decreased from approximately $49.4 million at June 30, 2011 and restricted cash decreased from approximately $109.9 million to $74.6 million.Book Value Book value per share was $11.27 at the end of the third quarter 2011 up from $11.15 at the end of the prior quarter primarily due to net income for the quarter, share repurchases and the amortization of equity compensation into stockholders' equity.Share Count Average diluted shares outstanding were 52.6 million shares for the quarter down from 53.3 million for prior quarter. Total outstanding shares at September 30, 2011 were 49.5 million compared to 50.4 million at June 30, 2011. Repurchased 855,381 shares of common stock at an average price of $9.63 during the third quarter of 2011. Conference Call and Webcast NewStar will host a webcast/conference call to discuss the results today at 10:00 am Eastern Time. All interested parties are invited to participate via telephone or webcast, which will be hosted through the Investor Relations section at www.newstarfin.com. Please visit the website to register for the webcast and test your connection prior to the call. You can also access the conference call by dialing 877-755-7419 approximately 5-10 minutes prior to the call. International callers should dial 973-200-3080. All callers should reference "NewStar Financial."    For convenience, an archived replay of the call will be available through November 5, 2011 by dialing 855-859-2056. International callers should call 404-537-3406. For all replays, please use the passcode 15692131. The audio replay will also be available through the Investor Relations section at www.newstarfin.com.            About NewStar Financial NewStar Financial (Nasdaq:NEWS) is a specialized commercial finance company focused on meeting the complex financing needs of companies and private investors in the middle market. The Company specializes in providing senior secured debt financing options to mid-sized companies to fund working capital, growth strategies, acquisition and recapitalization, as well as, equipment purchases. NewStar originates loans and leases directly through a team of experienced, senior bankers and marketing officers organized around key industry and market segments. The Company targets 'hold' positions of up to $35 million and selectively underwrites or arranges larger transactions for syndication to other lenders. NewStar is headquartered in Boston MA and has regional offices in Darien CT, Chicago IL, Dallas TX, Los Angeles CA, and Philadelphia, PA. For more detailed transaction and contact information, please visit our website at www.newstarfin.com.  The NewStar Financial, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=4044Forward-Looking Statements This release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995.  All statements other than statements of historical fact included in this release are forward-looking statements. Forward-looking statements give our current expectations and projections relating to our financial condition, results of operations, strategic plans, objectives, future performance, financing plans and business. As such, they are subject to material risks and uncertainties, including our limited operating history; the general state of the economy; our ability to compete effectively in a highly competitive industry; and the impact of federal, state and local laws and regulations that govern non-depository commercial lenders and businesses generally. More detailed information about these risk factors can be found in NewStar's filings with the Securities and Exchange Commission (the "SEC"), including Item 1A ("Risk Factors") of our 2010 Annual Report on Form 10-K, as supplemented by the Risk Factors contained in our Quarterly Reports on Form 10‑Q. NewStar is under no obligation to (and expressly disclaims any such obligation to) update or alter its forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. NewStar plans to file its Quarterly Report on Form 10-Q for the quarter ended September 30, 2011 with the SEC on or before November 9, 2011 and urges its shareholders to refer to that document for more complete information concerning NewStar's financial results.Non-GAAP Financial Measures References to "adjusted net income" and "adjusted earnings per share" mean net income or earnings per diluted share, respectively, as determined under GAAP, excluding the following items: compensation expense related to restricted stock grants made since our inception as a private company, including equity awards made in connection with the initial public offering and the related impact on our effective tax rate. GAAP requires that these items be included in net income. NewStar management uses "adjusted net income" and "adjusted earnings per share" to make operational and investment decisions, and NewStar believes that they provide useful information to investors in their evaluation of our financial performance and condition. Excluding the financial results and expenses incurred in connection with the compensation expense related to restricted stock grants made since our inception as a private company, eliminates unique amounts that make it difficult to assess our core performance and compare our period‑over‑period results. A reconciliation of adjusted net income to net income is included on page 7 of this release.  Adjusted return on average assets means adjusted net income divided by average assets for the period. Adjusted return on average equity means adjusted net income divided by average equity for the period. Adjusted efficiency ratio means operating expenses determined in accordance with GAAP less compensation expense related to restricted stock grants made since our inception as a private company. The adjusted ratios exclude unique expenses that make it difficult to assess our core performance and compare our period-over-period results. A reconciliation of our adjusted financial measures to their GAAP equivalents is included on page 7 of this release. NewStar's adjusted financial measures should not be considered as alternatives to financial measures determined in accordance with GAAP and may be different from, or inconsistent with, non-GAAP financial measures used by other companies.          NewStar Financial, Inc.        Consolidated Balance Sheets        (unaudited)                            September 30,June 30,December 31,September 30, ($ in thousands)2011201120102010Assets:         Cash and cash equivalents $27,604 $49,380 $54,365 $29,360 Restricted cash  74,610  109,942  178,364  154,505 Investments in debt securities, available-for-sale  11,431  17,117  4,014  4,036 Loans held-for-sale, net  31,192  11,565  41,386  21,302 Loans and leases, net  1,676,651  1,646,070  1,590,331  1,646,891 Deferred financing costs, net  12,608  13,287  15,504  17,683 Interest receivable  8,702  7,819  6,797  6,873 Property and equipment, net  837  927  879  760 Deferred income taxes, net  47,120  48,502  48,093  50,178 Income tax receivable  5,494  1,718  5,435  11,850 Other assets  
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Oct 19, 2011

NewStar Financial Schedules Release of Results for the Third Quarter of 2011

BOSTON, Oct. 19, 2011 (GLOBE NEWSWIRE) -- NewStar Financial, Inc. (Nasdaq:NEWS) announced today that it will report results for the third quarter of 2011 on Wednesday, November 2, 2011 before the markets open. NewStar will also host a webcast/conference call to discuss the results on Wednesday, November 2, 2011 at 10:00am Eastern Time. All interested parties are invited to participate via telephone or webcast, which will be hosted through the Investor Relations section of the website at www.newstarfin.com. Please visit the website to register for the webcast and test your connection prior to the call. You can also access the conference call by dialing 877-755-7419 approximately 5-10 minutes prior to the call. International callers should dial 973-200-3080. All callers should reference "NewStar Financial."  For convenience, an archived replay of the call will be available through November 5, 2011 by dialing 855-859-2056. International callers should call 404-537-3406. For all replays, please use the passcode 15692131. The audio replay will also be available through the Investor Relations section of the website at www.newstarfin.com. About NewStar Financial, Inc.: NewStar Financial (Nasdaq:NEWS) is a specialized commercial finance company focused on meeting the complex financing needs of companies and private investors in the middle market. The Company specializes in providing senior secured debt financing options to mid-sized companies to fund working capital, growth strategies, acquisition and recapitalization, as well as, equipment purchases. NewStar originates loans and leases directly through a team of experienced, senior bankers and marketing officers organized around key industry and market segments. The Company targets 'hold' positions of up to $35 million and selectively underwrites or arranges larger transactions for syndication to other lenders. NewStar is headquartered in Boston MA and has regional offices in Darien CT, Chicago IL, Dallas TX, Los Angeles CA, and Philadelphia PA. For more detailed transaction and contact information, please visit our website at www.newstarfin.com.  The NewStar Financial, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=4044CONTACT: Corporate Inquiries: NewStar Financial Colleen M. Banse 617.848.2502 cbanse@newstarfin.com NewStar Financial Brian J. Fischesser 617.848.2512 bfischesser@newstarfin.com
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Aug 03, 2011

NewStar Reports Second Quarter 2011 Results

New funded loan volume of $250 million drove net loan growth of $53 million Adjusted net income was $3.7 million, or $0.07 per diluted share GAAP net income was $3.4 million, or $0.06 per diluted share Net interest margin increased to 4.28% powered by improving loan yields Credit profile improved as credit costs moderated and NPAs declined 14% Continued to execute balance sheet initiatives, adding funding capacity and refinancing legacy commercial mortgage portfolio Book value per share increased $0.11 to $11.15 BOSTON, Aug. 3, 2011 (GLOBE NEWSWIRE) -- NewStar Financial, Inc. (Nasdaq:NEWS), a specialized commercial finance company, today reported adjusted net income for the second quarter of 2011 of $3.7 million, or $0.07 per diluted share. On a GAAP basis, the Company reported net income of $3.4 million, or $0.06 per diluted share, which reflected $0.2 million after-tax non-cash equity compensation expense related to the 2006 IPO. "Adjusted net income (loss)" and other non-GAAP financial measures used in this release are defined under "Non-GAAP Financial Measures" on page 5. Reconciliations between GAAP and adjusted (non-GAAP) measures can be found in the attached financial tables. "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%," said Tim Conway, Chairman and Chief Executive Officer. "Book value per share increased by another $0.11 to $11.15 as our financial results also continued to improve. Although credit costs remained somewhat elevated in the quarter, our operating results were solid and our credit profile continued to improve. We also made further progress on developing additional funding sources, which provide us more financial flexibility and support accelerating loan volumes," he concluded.Loan Credit Quality The provision for credit losses decreased to $2.3 million in the second quarter of 2011 compared to $6.3 million in the first quarter of 2011. Approximately $6.0 million of additional specific reserves were established in the second quarter of 2011, down slightly from $6.1 million in the first quarter of 2011. The allowance for credit losses decreased to $78.0 million, or 4.46% of loans and 72% of NPLs, at June 30, 2011, compared to $85.7 million, or 5.02% of loans, at March 31, 2011. Four new loans totaling $21.6 million were placed on non-accrual status in the second quarter of 2011 and loans totaling $29.3 million were returned to performing status. Non-accruing loans declined 13% from the first quarter of 2011. At June 30, 2011, loans with an aggregate outstanding balance of $109.0 million, net of charge-offs, were on non-accrual status compared to loans with an aggregate outstanding balance of $125.1 million, net of charge-offs, at March 31, 2011. Non-performing assets, net of charge-offs, specific reserves and other adjustments were $111.8 million, or 36% of their aggregate face amount, as of June 30, 2011. Non-accrual loans with an outstanding balance of $86.3 million as of June 30, 2011 were also delinquent loans. Net charge-offs were $10.0 million, or 2.30% of loans on an annualized basis, in the second quarter of 2011 compared to $5.3 million, or 1.44% of loans on an annualized basis, in the first quarter of 2011. Recognized a loss of $3.4 million on certain equity interests retained in connection with workouts of impaired loans. Loss was recognized as a component of non-interest income.  The Company owned an interest in one property, which was included in other real estate owned ("OREO") as of June 30, 2011. It was valued at $2.8 million, net of a $0.6 million write-down taken in the second quarter.  Funding and Capital Completed a new $68 million credit facility (repurchase agreement) with Macquarie Bank backed primarily by a portfolio of legacy commercial real estate loans. Amended a credit facility with Wells Fargo as of July 12, 2011, increasing the size from $75 million to $125 million and extending the effective maturity by approximately three years. Called the Class B notes of our 2009-1 CLO as of August 1, 2011 as the Class A notes fully amortized early due to higher than expected loan collateral prepayments.    Balance sheet leverage increased to 2.4x as of June 30, 2011, compared to 2.3x as of March 31, 2011, due primarily to the addition of the new facility with Macquarie Bank. Total cash and equivalents as of June 30, 2011 were $159.3 million, of which $49.4 million was unrestricted. Unrestricted cash increased from approximately $36.2 million at March 31, 2011 and restricted cash increased from approximately $90.9 million to $109.9 million.Managed and Owned Loan Portfolios 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. Assets managed for the NCOF were $471.3 million at June 30, 2011, up slightly from March 31, 2011. The owned loan portfolio increased by $52.5 million to $1.8 billion as of June 30, 2011 compared to March 31, 2011. The owned loan portfolio continued to be balanced across industry sectors and highly diversified by issuer. As of June 30, 2011, no outstanding borrowings by a single issuer represented more than 1.6% of total loans outstanding, and the ten largest issuers comprised approximately 10.9% of the loan portfolio.Net Interest Income / Margin Net interest income before provision for credit losses increased to $20.0 million for the second quarter of 2011 compared to $18.4 million for the first quarter of 2011. Net interest margin widened to 4.28% for the second quarter of 2011 compared to 4.03% for the first quarter of 2011 due primarily to increases in loan portfolio yield from new loans and repricings, as well as lower levels of non-performing assets. Adjusting for the impact of non-performing loans, the loan portfolio yield would have been 44 bps higher and net interest margin would have been 4.72%.    Non-Interest Income Non-interest income was a loss of $0.8 million for the second quarter of 2011 compared to a loss of $0.5 million for the first quarter of 2011.  Non-interest income in the second quarter of 2011 consisted primarily of a $3.4 million loss on certain equity interests retained in connection with various workouts, partially offset by a $0.5 million gain on the repurchase of debt, $0.6 million of asset management income, $0.4 million of unused fees on revolving credit commitments, and $0.3 million of agency fees.Expenses Operating expenses increased to $10.8 million in the second quarter of 2011 compared to $10.1 million in the first quarter of 2011 due primarily to higher loan workout costs. The Company had 85 full-time employees as of June 30, 2011.Income Taxes Deferred tax asset increased to $48.5 million as of June 30, 2011 from $48.2 million as of March 31, 2011. The increase in the deferred tax asset was driven primarily by differences in the timing of when credit costs and equity compensation expenses are recognized according to GAAP and when they are deductible for income tax.  Approximately $31.3 million and $13.6 million of the deferred tax asset as of June 30, 2011 were related to our allowance for credit losses and equity compensation, respectively.Book Value Book value per share was $11.15 at the end of the second quarter 2011 up from $11.04 at the end of the prior quarter primarily due to net income for the quarter and the amortization of equity compensation into stockholders' equity.Share Count Average diluted shares outstanding were 53.3 million shares for the quarter consistent with the prior quarter. Total outstanding shares at June 30, 2011 were 50.4 million compared to 50.5 million at March 31, 2011. Repurchased 186,827 shares of common stock at an average price of $9.42 during the second quarter of 2011.Conference Call and Webcast NewStar will host a webcast/conference call to discuss the results today at 10:00 am Eastern Time. All interested parties are invited to participate via telephone or webcast, which will be hosted through the Investor Relations section at www.newstarfin.com. Please visit the website to register for the webcast and test your connection prior to the call. You can also access the conference call by dialing 877-755-7419 approximately 5-10 minutes prior to the call. International callers should dial 973-200-3080. All callers should reference "NewStar Financial."    For convenience, an archived replay of the call will be available through August 6, 2011 by dialing 800-642-1687. International callers should call 706-645-9291. For all replays, please use the passcode 82071317. The audio replay will also be available through the Investor Relations section at www.newstarfin.com.            About NewStar Financial NewStar Financial (Nasdaq:NEWS) is a specialized commercial finance company focused on meeting the complex financing needs of companies and private investors in the middle market. The Company specializes in providing senior secured debt financing options to mid-sized companies to fund working capital, growth strategies, acquisition and recapitalization, as well as equipment purchases. NewStar originates loans and leases directly through a team of experienced, senior bankers and marketing officers organized around key industry and market segments. The Company targets 'hold' positions of up to $35 million and selectively underwrites or arranges larger transactions for syndication to other lenders. NewStar is headquartered in Boston MA and has regional offices in Darien CT, Chicago IL, Dallas TX, Los Angeles CA, and Philadelphia, PA. For more detailed transaction and contact information, please visit our website at www.newstarfin.com.  The NewStar Financial, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=4044Forward-Looking Statements This release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995.  All statements other than statements of historical fact included in this release are forward-looking statements. Forward-looking statements give our current expectations and projections relating to our financial condition, results of operations, strategic plans, objectives, future performance, financing plans and business, including our anticipated origination volume for 2011. As such, they are subject to material risks and uncertainties, including our limited operating history; the general state of the economy; our ability to compete effectively in a highly competitive industry; and the impact of federal, state and local laws and regulations that govern non-depository commercial lenders and businesses generally. More detailed information about these risk factors can be found in NewStar's filings with the Securities and Exchange Commission (the "SEC"), including Item 1A ("Risk Factors") of our 2010 Annual Report on Form 10-K, as supplemented by the Risk Factors contained in our Quarterly Reports on Form 10‑Q. NewStar is under no obligation to (and expressly disclaims any such obligation to) update or alter its forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. NewStar plans to file its Quarterly Report on Form 10-Q for the quarter ended June 30, 2011 with the SEC on or before August 9, 2011 and urges its shareholders to refer to that document for more complete information concerning NewStar's financial results.Non-GAAP Financial Measures References to "adjusted net income" and "adjusted earnings per share" mean net income or earnings per diluted share, respectively, as determined under GAAP, excluding the following items: compensation expense related to restricted stock grants made since our inception as a private company, including equity awards made in connection with the initial public offering; including the impact on our effective tax rate. GAAP requires that these items be included in net income. NewStar management uses "adjusted net income" and "adjusted earnings per share" to make operational and investment decisions, and NewStar believes that they provide useful information to investors in their evaluation of our financial performance and condition. Excluding the financial results and expenses incurred in connection with the compensation expense related to restricted stock grants made since our inception as a private company, eliminates unique amounts that make it difficult to assess our core performance and compare our period‑over‑period results. A reconciliation of adjusted net income to net income is included on page 7 of this release.  Adjusted return on average assets means adjusted net income divided by average assets for the period. Adjusted return on average equity means adjusted net income divided by average equity for the period. Adjusted efficiency ratio means operating expenses determined in accordance with GAAP less compensation expense related to restricted stock grants made since our inception as a private company. The adjusted ratios exclude unique expenses that make it difficult to assess our core performance and compare our period-over-period results. A reconciliation of our adjusted financial measures to their GAAP equivalents is included on page 7 of this release. NewStar's adjusted financial measures should not be considered as alternatives to financial measures determined in accordance with GAAP and may be different from, or inconsistent with, non-GAAP financial measures used by other companies.          NewStar Financial, Inc.        Consolidated Balance Sheets        (unaudited)                    June 30,March 31,December 31,June 30, ($ in thousands)2011201120102010Assets:         Cash and cash equivalents $ 49,380 $ 36,163 $ 54,365 $ 39,970 Restricted cash  109,942  90,927  178,364  146,648 Investments in debt securities, available-for-sale  17,117  4,049  4,014  4,022 Loans held-for-sale, net  11,565  19,090  41,386  10,624 Loans and leases, net  1,646,070  1,594,998  1,590,331  1,700,354 Deferred financing costs, net  13,287  13,773  15,504  19,486 Interest receivable  7,819  7,450  6,797  7,629 Property and equipment, net  927  1,034  879  843 Deferred income taxes, net  48,502  48,236  48,093  54,905 Income tax receivable  1,718  2,966  5,435  10,731 Other assets  22,525  17,530  29,798  21,600Total assets $ 1,928,852 $ 1,836,216 $ 1,974,966 $ 2,0
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Jul 27, 2011

NewStar Hires Mike Williams to Lead Asset-Based Lending in Midwest Region

BOSTON, July 27, 2011 (GLOBE NEWSWIRE) -- NewStar Business Credit, a division of NewStar Financial, Inc. (Nasdaq:NEWS), announced today that it has hired Mike Williams as a Senior Vice President in its Chicago office. Mr. Williams will lead the division's regional marketing and origination efforts with responsibility for generating new asset-based financing opportunities with middle market companies in the Midwest. Mr. Williams has more than 15 years of experience in structuring, originating and managing debt financings for middle market firms. Prior to joining NewStar, he was a Director with Gordon Brothers Group in Chicago. Previously, he worked for UPS Capital and PNC Business Credit.  "I am excited to join NewStar Business Credit's team of experienced commercial finance professionals and to lead its regional marketing efforts from the Chicago office," commented Mr. Williams. "I also look forward to working with the NewStar team to originate and structure creative and flexible financing solutions for my clients in the middle market," he added. "Mike is well known throughout the marketplace and will be a great addition to our origination efforts in the Midwest region," said Milton Iskra, EVP and National Marketing Manager for NewStar. "He adds strong marketing and credit skills as well as valuable execution experience to the NewStar team." NewStar Business Credit provides asset-based loans to mid-sized companies operating across a variety of industries nationwide. Deals typically range in size from $5 million to $25 million and are structured to meet the unique needs of each client through a combination of revolving lines of credit and term loans.About NewStar Financial, Inc.: NewStar Financial (Nasdaq:NEWS) is a specialized commercial finance company focused on meeting the complex financing needs of companies and private investors in the middle markets. The Company specializes in providing a range of senior secured debt financing options to mid-sized companies to fund working capital, growth strategies, acquisitions and recapitalizations, as well as, equipment purchases. NewStar originates loans and leases directly through teams of experienced, senior bankers and marketing officers organized around key industry and market segments. The Company targets hold positions of up to $30 million and will selectively underwrite or arrange larger transactions for syndication to other lenders. NewStar is headquartered in Boston MA and has regional offices in Darien CT, Chicago IL, Dallas TX, Los Angeles CA and Philadelphia PA. For more detailed information about our product capabilities, as well as, recent transaction and contact information, please visit our website at www.newstarfin.com. The NewStar Financial, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=4044CONTACT: Mike Williams Senior Vice President NewStar Business Credit 101 N. Wacker Drive, Suite 607 Chicago, IL 60606 P 312.780.7397 C 312.953.1459 mwilliams@newstarfin.com For Media Inquiries: NewStar Financial, Inc. Robert K. Brown 617.848.2558 rbrown@newstarfin.com
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Jul 20, 2011

NewStar Financial Schedules Release of Results for the Second Quarter of 2011

BOSTON, July 20, 2011 (GLOBE NEWSWIRE) -- NewStar Financial, Inc. (Nasdaq:NEWS) announced today that it will report results for the second quarter of 2011 on Wednesday, August 3, 2011 before the markets open. NewStar will also host a webcast/conference call to discuss the results on Wednesday, August 3, 2011 at 10:00am Eastern Time. All interested parties are invited to participate via telephone or webcast, which will be hosted through the Investor Relations section of the website at www.newstarfin.com. Please visit the website to register for the webcast and test your connection prior to the call. You can also access the conference call by dialing 877-755-7419 approximately 5-10 minutes prior to the call. International callers should dial 973-200-3080. All callers should reference "NewStar Financial."  For convenience, an archived replay of the call will be available through August 6, 2011 by dialing 800-642-1687. International callers should call 706-645-9291. For all replays, please use the passcode 82071317. The audio replay will also be available through the Investor Relations section of the website at www.newstarfin.com. About NewStar Financial, Inc.: NewStar Financial (Nasdaq:NEWS) is a specialized commercial finance company focused on meeting the complex financing needs of companies and private investors in the middle market. The Company specializes in providing senior secured debt financing options to mid-sized companies to fund working capital, growth strategies, acquisition and recapitalization, as well as, equipment purchases. NewStar originates loans and leases directly through a team of experienced, senior bankers and marketing officers organized around key industry and market segments. The Company targets 'hold' positions of up to $35 million and selectively underwrites or arranges larger transactions for syndication to other lenders. NewStar is headquartered in Boston MA and has regional offices in Darien CT, Chicago IL, Dallas TX, Los Angeles CA, Philadelphia PA, and Houston TX. For more detailed transaction and contact information, please visit our website at www.newstarfin.com.  The NewStar Financial, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=4044CONTACT: Corporate Inquiries: NewStar Financial Colleen M. Banse 617.848.2502 cbanse@newstarfin.com NewStar Financial Brian J. Fischesser 617.848.2512 bfischesser@newstarfin.com
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Jul 14, 2011

NewStar Enters Into $125 Million Facility With Wells Fargo to Fund New Origination

Completed a $125 million multi-year, non-recourse credit facility with Wells Fargo Bank to amend the existing credit facility which had an outstanding balance of $13 million Improved advance rates and added flexibility to fund a wider range of lending activity Attractive pricing reflective of improvement in funding markets Three and one-half year term structured with an 18 month ramp-up and revolving period followed by a 24 month amortization period Flexibility to refinance through securitization or amortize through contractual maturity Represents another step in our strategy to fund loan growth by re-levering the balance sheet BOSTON, July 14, 2011 (GLOBE NEWSWIRE) -- NewStar Financial, Inc. (Nasdaq:NEWS), a specialized commercial finance company, today announced that it has entered into an amended credit facility with Wells Fargo Bank to expand, extend and re-price its existing facility with Wells Fargo and support future loan growth. The financing provides nearly $200 million of lending capacity and flexibility to fund a wider range of lending activity. Advance rates under the credit facility range from 65% to 70% based on the type of loans pledged as collateral. It has a three and one-half year contractual term structured with an 18 month revolving, ramp-up period to support new lending activity, which is followed by a 24 month amortization period. The term structure provides the flexibility to refinance through securitization of the loan pool, extend the revolving period with the mutual consent of both parties, or amortize the facility through its contractual maturity, which reduces potential mis-matches in duration. In addition to favorable changes in those key terms, pricing for the new deal was reduced, reflecting improvement in the funding markets and the purpose of the financing.  "This deal represents another important step in our strategy to fund loan growth and re-lever the balance sheet," said Tim Conway, Chairman and Chief Executive Officer. "We are excited to be doing another deal with Wells Fargo and value their relationship with us as a lead bank," he added. Commenting on the credit facility, NewStar Treasurer John Frishkopf added, "This deal clearly validates our funding strategy. It not only adds new lending capacity to support loan growth, but also positions NewStar to return to the securitization markets as a programmatic issuer. The CLO market continues to improve for issuers such as NewStar. The Wells Fargo team continues to provide us exceptional value through a powerful combination of capital, market perspective and a relationship approach that brings it all together."About NewStar Financial NewStar Financial (Nasdaq:NEWS) is a specialized commercial finance company focused on meeting the complex financing needs of companies and private investors in the middle market. The Company specializes in providing senior secured debt financing options to mid-sized companies to fund working capital, growth strategies, acquisition and recapitalization, as well as, equipment purchases. NewStar originates loans and leases directly through a team of experienced, senior bankers and marketing officers organized around key industry and market segments. The Company targets 'hold' positions of up to $35 million and selectively underwrites or arranges larger transactions for syndication to other lenders. NewStar is headquartered in Boston MA and has regional offices in Darien CT, Chicago IL, Dallas TX, Los Angeles CA, and Philadelphia PA. For more detailed transaction and contact information, please visit our website at www.newstarfin.com.  The NewStar Financial, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=4044Forward-Looking Statements This release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact included in this release are forward-looking statements. Forward-looking statements give our current expectations and projections relating to our financing plans, strategic plans, objectives and business including: expected growth in future origination volume; ability to re-lever our balance sheet and fund loan growth; and our ability to return to the securitization markets as a programmatic issuer. As such, they are subject to material risks and uncertainties, including the state of the economy in general and the financial services industry in particular; our limited operating history; our ability to compete effectively in an increasingly competitive industry; and the impact of federal, state and local laws and regulations that govern non-depository commercial lenders and businesses generally. More detailed information about these risk factors can be found in NewStar's filings with the Securities and Exchange Commission, including Item 1A ("Risk Factors") of our 2010 Annual Report on Form 10-K, as they may be supplemented by the Risk Factors contained in our Quarterly Reports on Form 10-Q. NewStar is under no obligation to (and expressly disclaims any such obligation to) update or alter its forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.CONTACT: Robert K. Brown 500 Boylston St., Suite 1250 Boston, MA 02116 P. 617.848.2558 F. 617.848.4390 rbrown@newstarfin.com
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