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StoneCastle Financial Corp. Reports First Quarter 2021 Results

May 13, 2021 at 4:20 PM EDT

StoneCastle Financial Corp. Reports First Quarter 2021 Results

DENVER, May 13, 2021 (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, 2021.

First Quarter 2021 Investment Highlights:

  • Invested approximately $17.5 million in six investments
  • Realized proceeds of $4.7 million from the maturity of one investment
  • Realized proceeds from partial paydowns of $4.3 million from six investments

Subsequent to the end of the quarter, the Company invested approximately $8.0 million in two investments and received partial paydowns of $2.6 million.

The estimated annualized yield generated by the invested portfolio as of March 31, 2021(excluding cash and cash equivalents) was approximately 9.32%.

First Quarter 2021 Financial Results

Net investment income was $2,603,278 or $0.40 per share, comprised of $4,125,528 gross income and $1,522,250 of expenses. Net Assets at quarter end were $142,070,129. The Company’s Net Asset Value was $21.62 per share, up $0.18 from the prior quarter.

In the first quarter, the Company paid a cash distribution of $0.38 per share. The distribution was paid on March 25, 2021 to shareholders of record at the close of business on March 18, 2021.  

The Company had $39.0 million outstanding on its $62.0 million credit facility at the quarter end, which represents approximately 21% 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, 2021, the Company had total assets of $182,525,474 consisting of total investments of $178,022,813, cash and other assets of $4,502,661.  

During the quarter, the Company invested a total of $17.5 million in six bank-related regulatory capital investments. The Company received total proceeds of $9.0 million, consisting of a term loan maturity of $4.7 million, and $4.3 million in partial paydowns from six investments.

Quarterly Conference Call

StoneCastle Financial will host a webcast and conference call on May 13, 2021 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 27, 2021. The replay can be accessed by dialing 1-844-512-2921 for domestic callers or 1-412-317-6671 for international callers. The passcode for the replay is 13718352. 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." Its investment objective is to provide stockholders with current income and, to a lesser extent, capital appreciation. StoneCastle Financial is managed by StoneCastle-ArrowMark Asset Management, LLC. To learn more, visit www.stonecastle-financial.com.

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.

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.

CONTACT:

Investor Contact:
Julie Muraco
212-468-5441

STONECASTLE FINANCIAL CORP.
Statement of Assets and Liabilities (unaudited)
   
           
      March 31, 2021   December 31, 2020
Assets        
  Investments in securities, at fair value (cost: $177,537,308 and $176,919,203 respectively)   $ 178,022,813     $ 178,362,337  
  Receivable for Investments sold     -       4,860,214  
  Interest and dividends receivable     2,335,288       2,111,113  
  Foreign cash (cost: $1,300,817 and $1,928,095 respectively)   1,302,222       1,920,752  
  Cash     63,110       358,061  
  Unrealized appreciation on forward currency exchange contracts   204,752       135,069  
  Prepaid assets     597,289       613,320  
  Total assets     182,525,474       188,360,866  
           
Liabilities        
  Loan payable     39,000,000       43,000,000  
  Dividends payable     -       2,823,128  
  Investment advisory fee payable     787,610       832,998  
  Payable for securities purchased     -       146,376  
  Loan interest payable     35,982       70,457  
  Unrealized depreciation on forward currency exchange contracts   -       68,578  
  Options written, at value (premiums received $0 and $1,029 respectively)   -       1,625  
  Accrued expenses payable     631,753       628,572  
  Total liabilities     40,455,345       47,571,734  
Net Assets   $ 142,070,129     $ 140,789,132  
           
Net Assets consist of:        
  Common stock at par ($0.001 per share)   $ 6,572     $ 6,565  
  Paid-in-Capital     145,128,467       144,992,526  
  Total distributable earnings / (loss)     (3,064,910 )     (4,209,959 )
  Net Assets   $ 142,070,129     $ 140,789,132  
           
Net Asset Value Per Share:        
Common Stock Shares Outstanding     6,572,212       6,565,413  
Net asset value per common share   $ 21.62     $ 21.44  
Market price per share   $ 19.79     $ 19.25  
Market price discount to net asset value per share     -8.46 %     -10.21 %
           


STONECASTLE FINANCIAL CORP.
Statement of Operations (unaudited)
         
      For The Three Months
Ended March 31, 2021
For The Three Months
Ended December 31, 2020
Investment Income      
  Interest   $ 3,299,156   $ 3,274,845  
  Dividends     749,851     1,086,960  
  Origination fee income     31,977     32,278  
  Other Income (service fees and due diligence fees)     44,544     274,538  
  Total Investment Income     4,125,528     4,668,621  
         
Expenses      
  Investment advisory fees     787,610     832,999  
  Interest expense     295,817     214,920  
  Directors' fees     84,854     77,621  
  Transfer agent, custodian fees and administrator fees     71,569     73,159  
  Bank administration fees     39,578     40,457  
  Professional fees     94,930     202,760  
  ABA marketing and licensing fees     32,955     37,287  
  Investor relations fees     30,526     31,205  
  Delaware franchise tax     22,444     22,943  
  Insurance expense     17,753     15,951  
  Valuation fees     14,823     15,153  
  Printing     7,500     14,670  
  Miscellaneous fees (proxy, rating agency, etc.)     21,891     43,095  
  Total expenses     1,522,250     1,622,220  
  Net Investment Income     2,603,278     3,046,401  
         
Realized and Unrealized Gain / (Loss) on Investments and Foreign Currency Transactions  
  Net realized gain on investments     91,458     311,979  
  Net realized gain / (loss) from forward foreign currency contracts     1,675,729     (1,663,224 )
  Net realized gain from foreign currency translations     134,076     36,751  
  Net change in net unrealized appreciation / (depreciation) on investments     (957,630 )   5,137,158  
  Net change in unrealized appreciation / (depreciation) on written options     596     (620,426 )
  Net change in unrealized appreciation on forward currency contracts     138,261     222,982  
  Net change in unrealized appreciation / (depreciation) on foreign currency translations     (44,538 )   10,331  
  Net realized and unrealized gain/(loss) on investments, written options, forward foreign currency contracts and foreign currency translations     1,037,952     3,435,551  
         
  Net Increase in Net Assets Resulting From Operations   $ 3,641,230   $ 6,481,952  
         


STONECASTLE FINANCIAL CORP.
Financial Highlights (unaudited)
               
               
            For The Three Months Ended March 31, 2021  
  Per Share Operating Performance            
  Net Asset Value, beginning of period         $ 21.44    
  Net investment income(1)           0.40    
  Net realized and unrealized gain / (loss) on investments           0.16    
  Total from investment operations           0.56    
               
  Less distributions to shareholders            
  From net investment income           (0.38 )  
  Total distributions           (0.38 )  
               
  Net asset value, end of period         $ 21.62    
  Per share market value, end of period         $ 19.79    
               
  Total Investment Return (2)            
  Based on market value           4.80 %  
  Based on net asset value           2.79 %  
               
  Ratios and Supplemental Data            
  Net assets, end of period (in millions)         $ 142.1    
  Ratios (as a percentage to average net assets):            
  Expenses before waivers(3)(4)*           4.37 %  
  Expenses after waivers(5)*           4.37 %  
  Net investment income(6)*           7.47 %  
  Portfolio turnover rate **           5 %  
               
  Revolving Credit Agreement            
  Total revolving credit agreement outstanding (000's)         $ 39,000    
  Asset coverage per $1,000 for revolving credit agreement(7)         4,643    
               
(1 ) Based on the average shares outstanding during quarter.            
(2 ) Reflects reinvestment of distributions at the price obtained under the Dividend Reinvestment Plan.  
  Total return does not include sales load and offering expenses and are not annualized.    
(3 ) Excluding interest expense, the ratio would have been 3.52%.          
(4 ) Ratio of expenses before waivers to average managed assets equals 3.33%.      
(5 ) Ratio of expenses after waivers to average managed assets equals 3.33%.      
(6 ) Ratio of net investment income to average managed assets equals 5.69%.      
(7 ) 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 in 000's.      
* Annualized            
** Not-annualized            
               

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Source: StoneCastle Financial Corp.