U.S. markets open in 4 hours 58 minutes
  • S&P Futures

    4,259.25
    +3.25 (+0.08%)
     
  • Dow Futures

    34,163.00
    +81.00 (+0.24%)
     
  • Nasdaq Futures

    14,370.75
    +16.50 (+0.11%)
     
  • Russell 2000 Futures

    2,332.90
    +1.70 (+0.07%)
     
  • Crude Oil

    73.45
    +0.15 (+0.20%)
     
  • Gold

    1,783.30
    +6.60 (+0.37%)
     
  • Silver

    26.28
    +0.24 (+0.90%)
     
  • EUR/USD

    1.1945
    +0.0010 (+0.08%)
     
  • 10-Yr Bond

    1.4870
    0.0000 (0.00%)
     
  • Vix

    16.05
    -0.27 (-1.65%)
     
  • GBP/USD

    1.3904
    -0.0017 (-0.12%)
     
  • USD/JPY

    110.7440
    -0.0910 (-0.08%)
     
  • BTC-USD

    34,122.09
    +1,099.07 (+3.33%)
     
  • CMC Crypto 200

    816.53
    +29.91 (+3.80%)
     
  • FTSE 100

    7,120.00
    +10.03 (+0.14%)
     
  • Nikkei 225

    29,066.18
    +190.95 (+0.66%)
     

StoneCastle Financial Corp. Reports First Quarter 2021 Results

  • Oops!
    Something went wrong.
    Please try again later.
·8 min read
  • Oops!
    Something went wrong.
    Please try again later.

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