NewStar Financial, Inc. reported adjusted net income for the third quarter of 2011 of $3.6 million compared to net income of $6.0 million for the same period of 2010.  
Total funded loan origination volume for the third quarter of 2011 was $190 million compared to $250 million in the second quarter. Additionally the company reported the owned loan portfolio increased 3% to $1.8 billion as of September 30, 2011 compared to June 30, 2011.

The company reported credit costs decreased to $4.6 million from $6.3 million in prior quarter and NPAs declined 7% to 6% of loans.  The provision for credit losses increased to $4.4 million in the third quarter of 2011 compared to $2.3 million in the second quarter of 2011.

“I am pleased with our results in the third quarter. We maintained our momentum despite significant volatility - especially in the debt capital markets. Our results reflected strength in new business volume, as well as steady improvement in our credit performance and earnings capacity. We generated $190 million of new funded loan volume at very attractive spreads and net loan growth was 11% on an annualized basis,” said Tim Conway, NewStar’s Chairman and Chief Executive Officer. “Our credit performance also improved as credit costs and NPAs both declined. Loan growth and improving margins are also driving top line revenue gains and increasing our earnings power.”