NewStar turns profit, boosts credit capacity - Tampa Bay Business Journal:

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million in the first quarter, reversing a year-ago as the specialty lender boosted a credit line fromby $100 million to $400 million. But NewStar'xs origination volume dropped dramatically in the quarteto $178 million, compared to $713 milliojn in the fourth quarte and $519 million in the first quarter of 2007. The slowdowjn reflects a globalcredit Boston-based NewStar, which funds commercial real estate projects and participates in the financing of leveraged buyouts, said it has takeh a defensive approach to keep problem loans at a manageable The allowance for credit losses on the company's commercial loans was $36.7 million, or 1.58 percent of loans. That compares to $22.
9 million, or 1.40 percent of loans in the year-earlier The company said non-performing assets were $9.8 millionh at the end of down fromnearly $22 millionb at the end of 2007. NewStar chargecd off $3.3 million in loans during the quarted against a reserve established in thefourth Meanwhile, the company said it established another reserve of $3.5 million in the first quartef for two problem loans. Total net loans were $2.3 billio n at the end of the quarter, up from $1.7 billio in the year-ago Besides adding to its credit line from Deutsche NewStar also renewed anexistingf $400 million credit line with .
The companty said the funding will allow it to operate through further disruption in thecredift markets.