- Financial results continued to improve with adjusted net income of $10.1 million, or $0.19 per diluted share
- GAAP net income was $9.4 million, or $0.18 per diluted share
- New loan origination volume increased 62% to $235 million in the fourth quarter and $572 million for the year
- Recognized $5.6 million pre-tax gain on the acquisition of asset-based lender and assumed a $225 million credit facility to fund related new lending activity
- Launched new equipment finance business and added a new $75 million credit facility to fund new leasing activity
- Increased book value per share to $10.96
BOSTON, Feb. 16, 2011 (GLOBE NEWSWIRE) -- NewStar Financial, Inc. (Nasdaq:NEWS), a specialized commercial finance company, today reported adjusted net income for the fourth quarter of 2010 of $10.1 million, or $0.19 per diluted share. On a GAAP basis, the Company reported net income of $9.4 million, or $0.18 per diluted share, which reflected $0.7 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 very pleased with our results in the fourth quarter as our operating performance continued to improve and we executed on important strategic initiatives that broadened our capabilities and strengthened our national origination franchise," said Tim Conway, Chairman and Chief Executive Officer. "The launch of our equipment finance business marked another important milestone for the company as we continue 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. The value of our national direct origination platforms was evident in the gains we made in new loan origination throughout the year and our financial results in the quarter capped off what has been a very successful year for NewStar."