NewStar Reports Full Year and Fourth Quarter Results.

(From Hugin)

Results Reflect Strong Origination and Fee Income Growth * $4.6 million of adjusted net income in the fourth quarter or $0.18 adjusted earnings per diluted share * $11.9 million of adjusted net income for the year or $0.70 adjusted earnings per diluted share * $32.1 million net loss in the fourth quarter or $1.26 net loss per diluted share * $27.2 million net loss for the year or $1.65 net loss per diluted share * $2.0 billion of assets in managed loan portfolio, up $575 million from the third quarter * $234.6 million initial public offering completed on December 13, 2006 * Credit quality stable, no loans on non-accrual status, no charge offs BOSTON, Feb. 21, 2007 (PRIME NEWSWIRE) -- NewStar Financial, Inc. (Nasdaq:NEWS), today reported adjusted earnings for the fourth quarter 2006 of $4.6 million, or $0.18 per diluted share. Adjusted net income for the full year 2006 was $11.9 million, or $0.70 per diluted share. On a GAAP basis, the company reported a net loss of $32.1 million, or $1.26 per diluted share, for the fourth quarter and a net loss of $27.2 million for the year, or $1.65 per diluted share. "Adjusted net income," "adjusted earnings," and other non-GAAP financial measures used in this release are defined under "Non-GAAP Financial Measures" on page 4. We have provided a reconciliation between GAAP and adjusted (non-GAAP) measures in the attached financial tables. "Our fourth quarter and full year results exceeded our expectations," said Tim Conway, Chairman and Chief Executive Officer. "NewStar continues to see strong growth across all business lines. Credit quality is stable and our credit statistics remain favorable as our portfolio continues to season. Our bankers continued to execute very well across the business and we ended the year with great momentum that has carried into the first quarter of 2007. We grew our managed assets by 39%, or $575 million, in the fourth quarter to over $2 billion and generated better than expected fee revenue from asset management and transaction activity." On December 13, 2006, we completed our initial public offering, raising $234.6 million through the issuance of 13.8 million shares of common stock priced at $17.00 per share. We used the proceeds of the offering to repay and terminate corporate debt of $37.5 million. We also paid down certain revolving warehouse lines of credit by approximately $50 million and invested the balance in short-term money market instruments. Strong Origination Volume * Origination volume for the year was $1.4 billion, of which $158 million was syndicated, $248 million was sold to the New Star Credit Opportunities Fund (NCOF) and $1.0 billion was retained on NewStar's balance sheet. * Origination volume for the fourth quarter was $657 million, of which $68.4 million was syndicated, $141 million was sold to the NCOF and $447 million was retained on NewStar's balance sheet. * Corporate represented approximately 73% of volume in 2006, while Structured Products and Commercial Real Estate were 15% and 12%, respectively. * We continued to grow our proprietary direct origination platform in the fourth quarter, adding two new senior bankers and opening a new office in San Diego. Growth in Loans and Investments * Gross loans and investments in debt securities held on NewStar's balance sheet increased to $1.7 billion as of December 31, 2006, an increase of $450 million from $1.3 billion at September 30, 2006. * Managed loan portfolio increased to $2.0 billion as of December 31, 2006, an increase of $575 million from $1.5 billion at September 30, 2006. Assets managed for the NCOF increased from $159 million as of September 30, 2006 to $283 million at year-end. * Our business continues to be balanced across industry sectors and highly diversified across issuers. As of …