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StoneCastle Financial Corp. Reports Fourth Quarter 2020 Results

March 1, 2021 at 4:20 PM EST

StoneCastle Financial Corp. Reports Fourth Quarter 2020 Results

DENVER, March 01, 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 fourth fiscal quarter ended December 31, 2020.   

Fourth Quarter 2020 Investment Highlights:

  • Invested approximately $42.5 million in seven investments
  • Realized proceeds of $12.2 million from the full calls of two investments
  • Realized proceeds of $7.0 million from the sale of one investment
  • Realized proceeds from partial paydowns of $3.7 million from four investments

A complete listing of investments as of the end of the quarter can be found on the Company’s website at www.stonecastle-financial.com.

Subsequent to the end of the quarter, the Company invested approximately $13.5 million in five investments and received partial paydowns of $3.0 million.

The estimated annualized yield generated by the invested portfolio as of December 31, 2020 (excluding cash and cash equivalents) was approximately 9.65%.

Fourth Quarter 2020 Financial Results

Net investment income was $3,046,401 or $0.46 per share, comprised of $4,668,621 gross income and $1,622,220 of expenses.  Net Assets at quarter end were $140,789,132.  The Company’s Net Asset Value was $21.44 per share, up $0.55 from the prior quarter.

In the fourth quarter, the Company paid a cash distribution of $0.43 per share, comprised of a $0.38 regular dividend and a $0.05 special dividend.  The distribution was paid on January 5, 2021 to shareholders of record at the close of business on December 21, 2020.   

The Company had $43.0 million outstanding on its $62.0 million credit facility at the quarter end, which represents approximately 23% 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 December 31, 2020, the Company had total assets of $188,360,866 consisting of total investments of $178,362,337, cash and other assets of $9,998,529.  

During the quarter, the Company invested a total of $42.5 million in seven bank-related investments.  The Company invested a total of $37.5 million in six alternative capital securities, and $5.0 million in one community bank preferred stock.  The Company received proceeds of $12.2 million from the full calls of two investments, received $7.0 million from the sale of one investment and received partial paydowns of $3.7 million from four investments.

Quarterly Conference Call

StoneCastle Financial will host a webcast and conference call on March 1, 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 March 15, 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 13716278. 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
     
             
        December 31, 2020   September 30, 2020
  Assets        
    Investments in securities, at fair value (cost: $176,919,203 and $150,661,873 respectively)   $ 178,362,337     $ 146,967,849  
    Receivable for Investments sold     4,860,214       -  
    Interest and dividends receivable     2,111,113       1,498,511  
    Foreign cash (cost: $1,928,095 and $209,344 respectively)   1,920,752       209,228  
    Cash     358,061       545,156  
    Unrealized appreciation on forward currency exchange contracts   135,069       -  
    Prepaid assets     613,320       643,663  
    Total assets     188,360,866       149,864,407  
             
  Liabilities        
    Loan payable     43,000,000       10,000,000  
    Dividends payable     2,823,128       27,705  
    Investment advisory fee payable     832,998       654,515  
    Payable for securities purchased     146,376       -  
    Loan interest payable     70,457       858  
    Unrealized depreciation on forward currency exchange contracts   68,578       156,491  
    Options written, at value (premiums received $1,029, $1,801,080 respectively)     1,625       1,181,250  
    Directors fee payable     -       1,851  
    Accrued expenses payable     628,572       739,136  
    Total liabilities     47,571,734       12,761,806  
  Net Assets   $ 140,789,132     $ 137,102,601  
             
  Net Assets consist of:        
    Common stock at par ($0.001 per share)   $ 6,565     $ 6,564  
    Paid-in-Capital     144,992,526       144,961,221  
    Total distributable earnings / (loss)     (4,209,959 )     (7,865,184 )
    Net Assets   $ 140,789,132     $ 137,102,601  
             
  Net Asset Value Per Share:        
  Common Stock Shares Outstanding     6,565,413       6,563,892  
  Net asset value per common share   $ 21.44     $ 20.89  
  Market price per share   $ 19.25     $ 19.41  
  Market price discount to net asset value per share     -10.21 %     -7.08 %
             


STONECASTLE FINANCIAL CORP.
Statement of Operations
                   
              For The Three Months Ended December 31, 2020   For the Three Months Ended September 30, 2020
  Investment Income            
    Interest         $ 3,274,845     $ 3,346,806  
    Dividends           1,086,960       830,671  
    Origination fee income         32,278       18,552  
    Other Income (service fees and due diligence fees)     274,538       85,898  
    Total Investment Income       4,668,621       4,281,927  
                   
  Expenses              
    Investment advisory fees         832,999       654,514  
    Interest expense         214,920       200,308  
    Directors' fees         77,621       117,621  
    Transfer agent, custodian fees and administrator fees     73,159       93,159  
    Bank administration fees         40,457       40,457  
    Professional fees         202,760       182,760  
    ABA marketing and licensing fees       37,287       37,845  
    Investor relations fees         31,205       41,204  
    Delaware franchise tax         22,943       22,943  
    Insurance expense         15,951       20,148  
    Valuation fees         15,153       40,152  
    Printing           14,670       17,670  
    Miscellaneous fees (proxy, rating agency, etc.)     43,095       59,371  
    Total expenses         1,622,220       1,528,152  
    Net Investment Income         3,046,401       2,753,775  
                   
  Realized and Unrealized Gain / (Loss) on Investments and Foreign Currency Transactions      
    Net realized loss on investments       311,979       (2,745,166 )
    Net realized loss from forward foreign currency contracts     (1,663,224 )     (674,739 )
    Net realized gain / (loss) from foreign currency translations     36,751       144,713  
    Net change in net unrealized appreciation on investments     5,137,158       6,880,456  
    Net change in unrealized appreciation on written options     (620,426 )     332,500  
    Net change in unrealized appreciation / (depreciation) on forward currency contracts     222,982       (156,838 )
    Net change in unrealized appreciation on foreign currency translations     10,331       2,945  
    Net realized and unrealized gain/(loss) on investments, written options, forward foreign currency contracts and foreign currency translations     3,435,551       3,783,871  
                   
    Net Increase in Net Assets Resulting From Operations   $ 6,481,952     $ 6,537,646  
                   


STONECASTLE FINANCIAL CORP.
Financial Highlights
         
         
      For The Three Months Ended December 31, 2020  
  Per Share Operating Performance      
  Net Asset Value, beginning of period   $ 20.89    
  Net investment income(1)     0.46    
  Net realized and unrealized gain / (loss) on investments     0.52    
  Total from investment operations     0.98    
         
  Less distributions to shareholders      
  From net investment income     (0.43 )  
  Total distributions     (0.43 )  
         
  Net asset value, end of period   $ 21.44    
  Per share market value, end of period   $ 19.25    
         
  Total Investment Return (2)      
  Based on market value     1.27 %  
  Based on net asset value     4.80 %  
         
  Ratios and Supplemental Data      
  Net assets, end of period (in millions)   $ 140.8    
  Ratios (as a percentage to average net assets):      
  Expenses before waivers(3)(4)*     4.64 %  
  Expenses after waivers(5)*     4.64 %  
  Net investment income(6)*     8.72 %  
  Portfolio turnover rate **     17 %  
         
  Revolving Credit Agreement      
  Total revolving credit agreement outstanding (000's)   $ 43,000    
  Asset coverage per $1,000 for revolving credit agreement(7)     4,274    
         
(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 4.03%.  
(4 ) Ratio of expenses before waivers to average managed assets equals 3.82%.  
(5 ) Ratio of expenses after waivers to average managed assets equals 3.82%.  
(6 ) Ratio of net investment income to average managed assets equals 7.17%.  
(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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