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StoneCastle Financial Corp. Reports First Quarter 2021 Results

Published: 2021-05-13 20:20:00 ET
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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 Muraco212-468-5441

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, 2021For 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.