NewStar Financial reported Q3/15 net income of $5.1 million compared to net income of $5.0 million in Q3/14. Pre-tax operating income was $8.8 million in Q3/15 compared to $8.5 million in Q3/14.

NewStar said new funded credit investments exceeded $720 million in the seasonally slower third quarter, up 76% from $409 million in the same quarter last year.

The following highlights were excerpted from the news release:

  • Managed loans and credit investments of $4.6 billion were up about 80% or $2.0 billion from $2.6 billion for the same period last year.
  • The leverage finance portfolio at the end of Q3/15 was $3.1 billion, up 72% from $1.8 billion a year earlier.
  • The business credit portfolio at the end of Q3/15 was $274.6 million, up 22% from $225.7 million a year earlier.
  • Q3/15 net interest income of $23.2 million was up over 18% from $19.6 million in Q3/14.
  • Q3/15 portfolio yield of 6.32% was up from 6.13% a year earlier.

Tim Conway, NewStar’s chairman and chief executive officer commented on the company’s quarterly performance: “We continued to make significant progress on our strategic priorities and remain on track to reach our targets. Our ability to increase earnings through a period of heightened volatility in the credit markets reflects the growth in our core earnings power driven by our increased scale and fee revenue engines. We remain on pace to reach our volume target for the full year based on new investment activity despite a seasonal slowdown in the third quarter. Investment activity over the last twelve months exceeded $3.1 billion. Importantly, the yield profile on new investments has also improved overall and the outlook for the pricing environment in our target markets remains favorable. We are well positioned to capitalize on these trends through our strategic relationships and have the flexibility to allocate capital across our multiple origination platforms.”