Newstar Financial, Inc. (NEWS) SEC Filing 10-K Annual report for the fiscal year ending Wednesday, December 31, 2014

Earnings Press Release
10-K Annual Report
10-K YoY Changes
Newstar Financial, Inc.
Ticker: NEWS CIK: 1373561

Exhibit 99.1

LOGO

FOR IMMEDIATE RELEASE

NEWSTAR REPORTS NET INCOME OF $1.2 MILLION, OR $0.02 PER DILUTED SHARE FOR THE FOURTH QUARTER AND $10.6 MILLION, OR $0.21 PER DILUTED SHARE FOR 2014

Relationship with Blackstone’s GSO Capital and Franklin Square helps drive strong growth in managed assets as the Company closes new credit fund and begins deploying capital from recent strategic investment

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Strategic Relationship – Closed a new $400 million managed credit fund with an anchor investment from funds sponsored by Franklin Square Capital Partners (“Franklin Square”) and sub-advised by Blackstone’s GSO Capital (“GSO”) and completed the initial closing of their strategic investment in the Company.

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New Loan Volume – Originated new loan volume of $775 million in the fourth quarter and $1.8 billion for the full year, up 89% from the prior quarter and 38% from 2013.

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Growth – Increased total assets under management by 30% from the prior quarter and $1.0 billion from the prior year to approximately $3.8 billion. Total assets held by managed funds reached approximately $1 billion at year end.

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Asset Quality – Asset quality improved in the fourth quarter as NPAs decreased as a percentage of total loans, but remained stable in dollar terms. Strategy to underweight energy sectors limited exposure to approximately 1% of portfolio at year-end.

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Credit Costs – Provision for credit losses increased by $1.9 million from the prior quarter due primarily to the impact of net loan growth. Provision expense for the year was up $17.4 million from the prior year due primarily to specific charges recognized in connection with the resolution of legacy loans in the second quarter and strong growth in the second half of the year.

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Net Interest Margin – Margin narrowed to 2.90% for the fourth quarter from 3.24% in the prior quarter, and 3.17% for 2014, down from 3.90% for the prior year due primarily to increased leverage and higher cost of funds.

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Operating Expenses – Expenses in the fourth quarter decreased by 2% from the prior quarter to approximately 1.65% of average assets, while full year expenses in 2014 decreased $3.9 million, or 8%, from the prior year.

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Stockholders Equity – Increased book value per share to $13.75 at year-end, up 8.6% or $1.09 from the end of 2013 and returned $34.6 million of capital to stockholders in 2014, or $0.74 per outstanding share, through share repurchase programs.

Boston, February 11, 2015

– NewStar Financial, Inc. (NASDAQ: NEWS) (“NewStar” or the “Company”), an internally-managed, specialized commercial finance company, today reported net income of $1.2 million, or $0.02 per diluted share for the fourth quarter of 2014. These results compare to net income of $5.0 million, or $0.10 per diluted share in the third quarter of 2014 and consolidated net income of $6.4 million, or $0.12 per diluted share in the fourth quarter of 2013. Operating income before income taxes was $2.2 million for the fourth quarter of 2014 compared to $8.5 million for the third quarter of 2014 and $9.4 million in the fourth quarter of 2013.

The following information was filed by Newstar Financial, Inc. (NEWS) on Wednesday, February 11, 2015 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.

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