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StoneCastle Financial Corp. Reports Fourth Quarter 2020 Results

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StoneCastle Financial Corp.
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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