Loan Growth - New funded loan volume exceeded $205 million and average loan balances were up over 4% from the prior quarter and nearly 10% higher than the same period in the prior year

Revenue Growth – Risk-adjusted revenue² increased nearly 10% from the prior quarter and over 36% from the same period in the prior year

Continued Positive Credit Trends - Provision expense declined sequentially and from the same period in the prior year

Margins – Net interest margin remained strong at 4.21% in Q2 2012 compared to 4.30% in the prior quarter

Expenses – Operating expenses increased $2.7 million from the prior quarter due primarily to a charge related to settlement of litigation in connection with a problem loan

Building Book Value - Book value per share increased by $0.12 to $11.69

Risk-adjusted revenue is a non-GAAP measure calculated as the sum of net interest income after provision for credit losses and non-interest income. See “Non-GAAP Measurements” at the end of this press release and page 12 for reconciliation of non-GAAP to GAAP measurements.

Net income excluding litigation charges is a non-GAAP measure. See “Non-GAAP Measurements” at the end of this press release and page 12 for reconciliation of non-GAAP to GAAP measurements.

Total new funded loan origination volume was $205 million in the second quarter compared to $241 million in the prior quarter and $250 million in the second quarter of the prior year. Lower volumes reflected weaker demand for acquisition financing from financial sponsors amid a slowdown in M&A activity.

The managed loan portfolio decreased slightly to $2.4 billion as of June 30, 2012 from nearly $2.5 billion at March 31, 2012 as loan run-off from scheduled amortization and prepayments of existing loans offset new loan origination.

The owned portfolio was stable at $1.9 billion as of June 30, 2012 compared $1.9 billion as of March 31, 2012 as gains from loan originations were offset by an elevated level of run-off. Leveraged Finance and Real Estate loans decreased by 3.0% and 5.4%, respectively, while the Business Credit loan portfolio increased by 21%.

Assets managed for third party institutional investors decreased by 11.6% in the second quarter to approximately $498 million at June 30, 2012 compared to $563 million at March 31, 2012 due primarily to an elevated level of prepayments.

Asset-based lending and equipment finance businesses originated $38 million in the second quarter, or 21% of new loan volume retained on the balance sheet.

The owned loan portfolio remained balanced across industry sectors and highly diversified by issuer. As of June 30, 2012, no outstanding borrowings by a single obligor represented more than 1.4% of total loans outstanding, and the ten largest obligors comprised approximately 9.6% of the loan portfolio.

Net interest income after provision for credit losses increased 16% to $21.3 million for the second quarter of 2012 compared to $18.3 million for the first quarter of 2012 and $17.6 million in the second quarter of last year. The increase was due primarily to lower provision for credit losses and higher interest income driven by higher average loan balances and increased deferred fee income as prepayments accelerated in the quarter, which was partially offset by higher interest expense associated with increased average debt levels.

The portfolio yield remained relatively stable at 6.35% in the second quarter compared to 6.39% in the prior quarter and 6.42% in the same period in the prior year.

Net interest margin narrowed slightly to 4.21% for the second quarter of 2012 compared to 4.30% for the first quarter of 2012, and 4.28% in the second quarter of last year.

Adjusting for the impact of non-performing loans, the loan portfolio yield would have been 34 bps higher, or 6.69% and net interest margin would have been 4.52%.

Non-interest income was $1.8 million for the second quarter of 2012 compared to $2.8 million for the first quarter of 2012 and $0.8 million loss in the same period in the prior year. The change from the first quarter was due primarily to $1.3 million of gains on the repurchase of CLO debt in the first quarter, which did not recur in the second quarter.

Non-interest income in the second quarter of 2012 consisted primarily of $0.7 million of asset management income, $0.4 million of loan syndication fees, and $0.4 million of unused fees on revolving credit commitments.

Operating expenses increased by $2.7 million to $13.4 million in the second quarter of 2012 compared to $10.7 million in the first quarter of 2012 due primarily to a $2.1 million charge (net of insurance coverage) related to settlement of litigation in connection with a problem real estate loan that was the subject of the litigation. Although we had previously considered the claims to be without merit, we concluded that settlement of the lawsuit was prudent in order to avoid additional costs to defend the case and the risk of an adverse judgment.

Operating expenses excluding non-cash equity compensation⁴ were $11.5 in the second quarter of 2012, or 2.2% of average assets an annualized basis.

The efficiency ratio excluding non-cash equity compensation⁵ in the second quarter of 2012 was 49.5%

The Company had 101 full-time employees as of June 30, 2012.

Deferred income taxes decreased to $45.2 million as of June 30, 2012 compared to $48.0 million as of March 31, 2012 due primarily to a decrease in the allowance for loan losses and related timing differences of when credit costs are recognized according to GAAP and when they are deductible for income tax.

Approximately $23.5 million and $14.0 million of the deferred tax asset as of June 30, 2012 were related to our allowance for credit losses and equity compensation, respectively.

Credit performance continued to normalize in the second quarter of 2012 as provision expense and the allowance for loan losses decreased and NPAs declined slightly.

Total credit costs (including provision for credit losses and losses on OREO or interests retained in connection with workouts of impaired loans) in the second quarter decreased to $0.2 million, or 0.03% of average loans on an annualized basis, from $2.9 million in the prior quarter.

The component of provision expense used to establish additional specific reserves was approximately $2.6 million in the second quarter of 2012, up from $1.6 million in the first quarter of 2012.

The allowance for credit losses was $55.3 million, or 3.02% of loans and 72% of NPLs, at June 30, 2012, compared to $64.1 million, or 3.43% of loans, at March 31, 2012.

Non-performing assets decreased by $0.8 million from the prior quarter. New loans totaling $17.8 million were placed on non-accrual status and loans totaling $13.2 million were returned to performing status in the second quarter of 2012. The resulting $4.5 million net increase in NPAs was more than offset by a $2.0 million decrease from loan repayment activity and equity method accounting adjustments, as well as 3.3 million of net charge-offs.

At June 30, 2012, loans with an aggregate outstanding balance of $77.3 million, net of charge-offs, were on non-accrual status compared to loans with an aggregate outstanding balance of $77.1 million, net of charge-offs, at March 31, 2012. Non-

Operating expenses excluding non-cash equity compensation is a non-GAAP measure. See “Non-GAAP Measurements” at the end of this press release and page 12 for reconciliation of non-GAAP to GAAP measurements.

Efficiency ratio excluding non-cash equity compensation is a non-GAAP measure. See “Non-GAAP Measurements” at the end of this press release and page 12 for reconciliation of non-GAAP to GAAP measurements.

performing assets, net of charge-offs, specific reserves and other adjustments were $85.7 million, or 57.2% of their aggregate face amount, as of June 30, 2012.

Non-accrual loans with an outstanding balance of $38.1 million as of June 30, 2012 were also delinquent.

Net charge-offs were $9.0 million, or 1.97% of loans on an annualized basis, in the second quarter of 2012 compared to $2.9 million, or 0.62% of loans on an annualized basis, in the first quarter of 2012. Charge-offs were taken on three previously identified problem loans with established specific reserves of $10.8 million in the aggregate.

Balance sheet leverage decreased slightly to 2.51x as of June 30, 2012 from 2.55x at March 31, 2012 due primarily to CLO run-off and repayments of the commercial real estate repurchase agreement, partially offset by increased borrowings under warehouse lines to fund new loan origination.

Maintained ample liquidity with total cash and equivalents as of June 30, 2012 of $155.3 million, of which $28.4 million was unrestricted. Unrestricted cash increased from approximately $17.4 million at March 31, 2012 and restricted cash increased from approximately $105.0 million to $126.9 million.

Extended the revolving period of a credit facility with Natixis Financial Products LLC to December 17, 2012.

Book value per share was $11.69 at the end of the second quarter 2012 up from $11.57 at the end of the prior quarter primarily due to net income for the quarter and the amortization of equity compensation into stockholders’ equity.

Average diluted shares outstanding were 52.6 million shares for the quarter, which was up slightly from 52.2 million shares for the prior quarter. Total outstanding shares at June 30, 2012 were 49.4 million, which was consistent with outstanding shares as of March 31, 2012.

Repurchased 70,727 shares of common stock at an average price of $10.79 during the second quarter of 2012.

($ in thousands)

Assets:

Cash and cash equivalents

Restricted cash

Investments in debt securities, available-for-sale

Loans held-for-sale, net

Loans and leases, net

Deferred financing costs, net

Interest receivable

Property and equipment, net

Deferred income taxes, net

Income tax receivable

Other assets

Total assets

Liabilities:

Credit facilities

Term debt

Repurchase agreements

Accrued interest payable

Accounts payable

Income tax payable

Other liabilities

Total liabilities

Total stockholders’ equity

Total liabilities and stockholders’ equity

($ in thousands, except per share amounts)

Net interest income:

Interest income

Interest expense

Net interest income

Provision for credit losses

Net interest income after provision for credit losses

Non-interest income:

Fee income

Asset management income

Gain (loss) on derivatives

Gain (loss) on sale of loans

Other income (loss)

Total non-interest income (loss)

Operating expenses:

Compensation and benefits

General and administrative expenses

Total operating expenses

Income before income taxes

Income tax expense

Net income

Net income per share:

Basic

Diluted

Weighted average shares outstanding:

Basic

Diluted

($ in thousands, except per share amounts)

Net interest income:

Interest income

Interest expense

Net interest income

Provision for credit losses

Net interest income after provision for credit losses

Non-interest income:

Fee income

Asset management income

Gain (loss) on derivatives

Gain (loss) on sale of loans

Other income (loss)

Total non-interest income (loss)

Operating expenses:

Compensation and benefits

General and administrative expenses

Total operating expenses

Income before income taxes

Income tax expense

Net income

Net income per share:

Basic

Diluted

Weighted average shares outstanding:

Basic

Diluted

($ in thousands)

Performance Ratios:

Return on average assets

Return on average equity

Net interest margin, before provision

Efficiency ratio

Portfolio yield

Credit Quality Ratios:

Delinquent loan rate (at period end)

Delinquent loan rate for accruing loans 60 days or more past due (at period end)

Non-accrual loan rate (at period end)

Non-performing asset rate (at period end)

Annualized net charge off rate (end of period loans)

Annualized net charge off rate (average period loans)

Allowance for credit losses ratio (at period end)

Capital and Leverage Ratios:

Equity to assets

Debt to equity

Book value per share

Average Balances:

Loans and other debt products, gross

Interest earning assets

Total assets

Interest bearing liabilities

Equity

Allowance for credit loss activity:

Balance as of beginning of period

General provision for credit losses

Specific provision for credit losses

Net charge offs

Balance as of end of period

Supplemental Data (at period end):

Investments in debt securities, gross

Loans held-for-sale, gross

Loans held-for-investment, gross

Loans and investments in debt securities, gross

Unused lines of credit

Standby letters of credit

Total funding commitments

Loan portfolio

Loans owned by NewStar Credit Opportunities Fund

Managed loan portfolio

Loans held-for-sale, gross

Loans held-for-investment, gross

Total loans, gross

Deferred fees, net

Allowance for loan losses - general

Allowance for loan losses - specific

Total loans, net

($ in thousands)

Performance Ratios:

Return on average assets

Return on average equity

Net interest margin, before provision

Efficiency ratio

Portfolio yield

Credit Quality Ratios:

Annualized net charge off rate (end of period loans)

Annualized net charge off rate (average period loans)

Average Balances:

Loans and other debt products, gross

Interest earning assets

Total assets

Interest bearing liabilities

Equity

Allowance for credit loss activity:

Balance as of beginning of period

General provision for credit losses

Specific provision for credit losses

Net charge offs

Balance as of end of period

($ in thousands)

Performance Ratios:

Efficiency ratio

Consolidated Statement of Operations Adjustments₍₁₎:

Operating expenses

Less: non-cash equity compensation expense₍₂₎

Adjusted operating expenses

(1)     Adjustments are pre-tax.

(2)     Non-cash compensation charge related to restricted stock grants and option grants.

Risk-adjusted revenue

Net interest income after provision for credit losses

Non-interest income (loss)

Risk-adjusted revenue

Net income excluding litigation charges

Income before income taxes

Litigation charges, net of insurance coverage

Income before income taxes excluding litigation charges

Income tax expense

Net income excluding litigation charges

($ in thousands)

Performance Ratios:

Efficiency ratio

Consolidated Statement of Operations Adjustments₍₁₎:

Operating expenses

Less: non-cash equity compensation expense₍₂₎

Adjusted operating expenses

($ in thousands)

Portfolio Data:

First mortgage

Senior secured asset-based

Senior secured cash flow

Other

Total