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million in the first quarter, reversinv a year-ago loss, as the specialty lender boosterd a credit line fromby $100 million to $400 But NewStar's origination volume dropped dramatically in the quartef to $178 million, compared to $713 million in the fourth quarterd and $519 million in the firsyt quarter of 2007. The slowdown reflects a globalpcredit crunch. Boston-based NewStar, which fundas commercial real estate projects and participatexs in the financing of leveraged said it has taken a defensive approacy to keep problem loans at a manageable The allowance for credit losses onthe company's commercial loans was $36.8 million, or 1.58 percentg of loans. That compares to $22.
9 million, or 1.40 percenty of loans in the year-earlier The company said non-performing assetas were $9.8 million at the end of March, down from nearly $22 million at the end of 2007. NewStar chargesd off $3.3 million in loanas during the quarter against a reserver established in thefourth quarter. Meanwhile, the company said it establishec another reserveof $3.5 million in the first quarterr for two problem Total net loans were $2.3 billion at the end of the up from $1.7 billion in the year-ago period. Besides addinv to its credit line fromDeutsche Bank, NewStar also renewed an existing $400 million credi line with .
The company said the fundinyg will allow it to operate through furtherf disruption in thecredit markets.
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