NEW YORK, May 05, 2016 (GLOBE NEWSWIRE) -- StoneCastle Financial Corp. (Nasdaq:BANX) ("StoneCastle Financial" or the "Company"), an investment company registered with the Securities and Exchange Commission ("SEC"), today announced results for the first fiscal quarter ended March 31, 2016. 

First Quarter 2016 Investment Highlights:

• Invested $20.7 million in 5 investments
• Received issuer calls and partial repayments of $17.5 million from 14 investments
• Received sales proceeds of $6.3 million from 5 investments

Investment Activity in the First Quarter 2016 Included:

• $12.1 million in Citizens Bancshares Company Cumulative Perpetual Preferred Stock, Series A, 9.00%
• $0.8 million in Citizens Bancshares Company Cumulative Perpetual Preferred Stock, Series B, 9.00%
• $5.0 million in First Colebrook Bancorp, Inc. Subordinated Term Loan, due April 2026, 7.99%  
• $2.8 million in TriSummit Bank Cumulative Perpetual Preferred Stock, Series A, 9.00%

A complete listing of investments as of the end of the quarter can be found in the Schedule of Investments on the Company's website at www.StoneCastle-Financial.com.

The estimated annualized yield generated by the invested portfolio as of March 31, 2016 (excluding cash and cash equivalents) was approximately 8.98%.

First Quarter 2016 Financial Results

Total earnings for the first quarter were $2,883,891 or $0.44 per share.  Net investment income was $2,593,111 or $0.40 per share, comprised of $4,315,870 in gross income and $1,722,759 of expenses.  Realized capital gains were $290,780 or $0.04 per share.

Net Assets at quarter end were $137,441,183 and the Company's Net Asset Value was $21.09 per share.  

The Company paid a cash distribution of $0.35 per share for the first quarter.  The distribution was paid on March 29, 2016 to shareholders of record at the close of business on March 21, 2016.  

The Company had drawn $50.5 million on its $70 million credit facility at quarter end, which represents approximately 26.7% of total assets.  According to regulated investment company rules, the Company may borrow only up to 33.3% of its total assets.

Portfolio and Investment Summary 

As of the close of business on March 31, 2016, the Company had total assets of $189,280,186 consisting of total investments of $181,536,543, cash of $3,992,946 and other assets of $3,750,697.  Other assets include interest and dividends receivable of $2,993,712, and prepaid assets of $756,985.

During the quarter, the Company deployed $20.7 million in new investments. The Company purchased $15.7 million of preferred securities, and $5.0 million of term loans.  The Company received issuer calls and partial repayments totaling $17.5 million from 14 investments and sold 5 investments for proceeds of $6.3 million. 

Quarterly Conference Call

StoneCastle Financial will host a webcast and conference call on May 5, 2016 at 5:00 pm Eastern time.

The conference call can be accessed by dialing 1-877-407-9039 for domestic callers or 1-201-689-8470 for international callers. Participants may also access the call via live webcast by visiting StoneCastle Financial's investor relations website at www.stonecastle-financial.com. To listen to a live broadcast, go to the website at least 15 minutes prior to the scheduled start time in order to register, download and install any necessary audio software. A replay will be available shortly after the call and be available through midnight (Eastern Time) on May 19, 2016. The replay can be accessed by dialing 1-877-870-5176 for domestic callers or 1-858-384-5517 for international callers. The passcode for the replay is 13634518. The archive of the webcast will be available on the Company's website for a limited time.

About StoneCastle Financial Corp.

StoneCastle Financial is an SEC registered non-diversified, closed-end management investment company listed on the NASDAQ Global Select Market under the symbol "BANX." StoneCastle Financial intends to make long-term, passive, non-control investments in community banks seeking capital for organic growth, acquisitions, share repurchases and other refinancing activities. Its investment objective is to provide current income and, to a lesser extent, capital appreciation. StoneCastle Financial is managed by StoneCastle Asset Management LLC.

Disclaimer and Risk Factors:

There is no assurance that StoneCastle Financial will achieve its investment objective. StoneCastle Financial is subject to numerous risks, including investment and market risks, management risk, income and interest rate risks, banking industry risks, preferred stock risk, convertible securities risk, debt securities risk, liquidity risk, valuation risk, leverage risk, non-diversification risk, credit and counterparty risks, market at a  discount from net asset value risk and market disruption risk. Shares of closed-end investment companies may trade above (a premium) or below (a discount) their net asset value. Shares of StoneCastle Financial may not be appropriate for all investors. Investors should review and consider carefully StoneCastle Financial's investment objective, risks, charges and expenses. Past performance does not guarantee future results. Learn more at www.stonecastle-financial.com.

The Annual Report, Semi-Annual Report and other regulatory filings of the Company with the SEC are accessible on the SEC's website at www.sec.gov and on the Company's website at www.stonecastle-financial.com, and may discuss these or other factors that affect the Company.

 

	STONECASTLE FINANCIAL CORP.
	Statement of Assets and Liabilities (unaudited)
				March 31, 2016					December 31, 2015
	Assets
		Investments in securities, at fair value (cost: $185,785,040 and $184,998,847 respectively)		$	181,536,543				$	184,753,872
		Cash (1)			3,992,946					4,009,133
		Interest and dividends receivable			2,993,712					2,948,819
		Prepaid assets			756,985					821,845
		Total assets			189,280,186					192,533,669
	Liabilities
		Loan payable			50,500,000					25,000,000
		Payable for securities purchased			-					23,184,943
		Dividends payable			70,983					2,278,834
		Investment advisory fee payable			822,358					849,259
		Loan interest payable			128,528					34,032
		Directors fee payable			15,811					13,000
		Accrued expenses payable			301,323					403,681
		Total liabilities			51,839,003					51,763,749
	Net Assets				137,441,183					140,769,920
	Net Assets consist of:
		Common stock at par ($0.001 per share)			6,515					6,511
		Paid-in-capital			144,366,375					144,295,099
		Accumulated net investment loss			(1,966,109	)				(2,278,834	)
		Accumulated net realized loss on investments			(717,101	)				(1,007,881	)
		Net unrealized depreciation on investments			(4,248,497	)				(244,975	)
		Net Assets		$	137,441,182				$	140,769,920
	Net Asset Value Per Share:
	Common Stock Shares Outstanding				6,515,388					6,510,953
	Net asset value per common share			$	21.09				$	21.62
	Market price per share			$	17.31				$	16.30
	Market price discount to net asset value per share				-17.92	%				-24.61	%
	(1) Includes $3,500,000 of restricted cash held in a segregated account at Texas Capital Bank to cover collateral requirements.

 

STONECASTLE FINANCIAL CORP.
Statement of Operations (unaudited)
								For The Three Months Ended March 31, 2016				For the Three Months Ended December 31, 2015
Investment Income
	Interest							$	2,474,856			$	2,302,180
	Dividends								1,714,249				1,365,072
	Origination fee income								54,265				709,527
	Other Income								72,500				106,000
	Total Investment Income								4,315,870				4,482,779
Expenses
	Investment advisory fees								823,576				849,259
	Interest expense								415,335				345,840
	ABA marketing and licensing fees								65,966				77,868
	Professional fees								69,792				75,393
	Transfer agent, custodian fees and administrator fees								69,320				70,558
	Bank fees								52,381				70,478
	Directors' fees								44,560				44,915
	Valuation fees								20,866				37,970
	Investor relations fees								29,871				30,430
	Insurance expense								22,323				22,530
	Miscellaneous fees (proxy, printing, rating agency, etc.)								108,769				107,800
	Total expenses								1,722,759				1,733,041
	Net Investment Income								2,593,111				2,749,738
Realized and Unrealized Gain / (Loss) on Investments
	Net realized gain / (loss) on investments								290,780				(3,005,896	)
	Net change in unrealized depreciation on investments								(4,003,521	)			(503,005	)
	Net realized and unrealized loss on investments								(3,712,741	)			(3,508,901	)
	Net Decrease in Net Assets Resulting From Operations							$	(1,119,630	)		$	(759,163	)

 

  

			STONECASTLE FINANCIAL CORP.
			Financial Highlights (unaudited)
				For The Three Months Ended March 31, 2016
			Per Share Operating Performance
			Net Asset Value, beginning of period	$	21.62
			Net investment income(1)		0.40
			Net realized and unrealized gain on investments(1)		(0.58	)
			Total from investment operations		(0.18	)
			Less distributions to shareholders
			From net investment income		(0.35	)
			Total distributions		(0.35	)
			Net asset value, end of period	$	21.09
			Per share market value, end of period	$	17.31
			Total investment return based on market value (2)		8.38	%
			Ratios and Supplemental Data
			Net assets, end of period (in millions)	$	137.4
			Ratios (as a percentage to average net assets):
			Expenses (3)(4)*		4.98	%
			Net investment income(5)*		7.50	%
			Portfolio turnover rate **		11	%
			Revolving Credit Agreement
			Total revolving credit agreement outstanding (000's)	$	50,500
			Asset coverage per $1,000 for revolving credit agreement(6)		3,722
	(1	)	Based on the average shares outstanding during quarter.
	(2	)	Based on share market price and reinvestment of distributions at the price obtained under the Dividend
			Reinvestment Plan. Total return does not include sales load and offering expenses.
	(3	)	Excluding interest expense, the ratio would have been 3.78%.
	(4	)	Ratio of expenses to average managed assets equals 3.63%.
	(5	)	Ratio of net investment income to average managed assets equals 5.46%.
	(6	)	Calculated by subtracting the Company's total liabilities (excluding the loan) from the Company's total assets
			and dividing the amount by the loan outstanding.
*			Annualized
**			Not-annualized

 

 

CONTACT: 
Investor Contact:
Julie Muraco
347-887-0324