NewStar Reports Third Quarter 2010 Results
- Financial results continued to improve with adjusted net income of $6.0 million, or $0.12 per share
- GAAP net income was $5.5 million, or $0.11 per share
- Continued positive trend in credit performance led by lower provision for loan losses and further reductions in non-performing assets
- New loan originations increased 18% to $145 million
- Bolstered liquidity and added growth capital through increase in corporate debt financing to $100 million
- Added new growth platform through acquisition of asset-based lender with excess funding capacity
- Increased book value per share to $10.74 driven by earnings and share buyback
BOSTON, Nov. 3, 2010 (GLOBE NEWSWIRE) -- NewStar Financial, Inc. (Nasdaq:NEWS), a Boston-based commercial finance company, today reported adjusted net income for the third quarter of 2010 of $6.0 million, or $0.12 per diluted share. On a GAAP basis, the Company reported net income of $5.5 million, or $0.11 per diluted share, which reflected $0.5 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.
"I am pleased with our results in the third quarter as operating performance showed steady improvement and credit costs trended lower. Our direct origination platform continued to gain momentum with double-digit growth in new loan volume in the quarter. We also expanded our national franchise through the recently announced acquisition of CORE Business Credit, an established asset-based lending platform," said Tim Conway, Chairman and Chief Executive Officer. "The acquisition marks another important milestone for the company as we begin to execute our strategy to add specialized lending platforms in attractive market segments that are consistent with our core strengths and enhance our value proposition for customers."
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