DENVER, May 07, 2020 (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, 2020.   

First Quarter 2020 Investment Highlights:

  • Realized full redemptions of $10.4 million from two investments
  • Realized proceeds from a partial call of $1.5 million from one investment
  • Realized proceeds from paydowns of $1.5 million from two 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.

First Quarter 2020 Financial Results

Net investment income was $2,530,138 or $0.39 per share, comprised of $3,685,293 gross income and $1,155,155 of expenses.  For the quarter, net realized capital losses were ($301,223) or ($0.05) per share.  Net Assets at quarter end were $124,676,478.  The unrealized depreciation of the portfolio was ($18,304,949) or ($2.79) per share.  The Company’s Net Asset Value was $19.00 per share, down $2.83 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, 2020 to shareholders of record at the close of business on March 18, 2020.   

The Company had $9.0 million outstanding on its $62.0 million credit facility at the quarter end, which represents approximately 7% 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, 2020, the Company had total assets of $134,924,421 consisting of total investments of $132,978,058, cash of $62,841, and other assets of $1,883,522.  Other assets include interest and dividends receivable of $1,288,615 and prepaid assets of $594,907.

During the quarter, the Company received a full redemption of $6.5 million from First Alliance Capital Trust I, Junior Subordinated Debt, 10.25%, due 7/25/2031 and $3.9 million of National Bank of Indianapolis, Trust Preferred Security, Series 2015-1, 9.74% Note, due 9/30/2030.  The Company received a partial call of $1.5 million from Central Trust Company Capital Trust I, Junior Subordinated Debt, 10.25%, due 7/25/2031.  Additionally, the Company received paydowns of $1.2 million from Preferred Term Securities, Fixed Rate Mezzanine notes, 9.74%, due 9/15/2030 and $293,553 from M&T Trust Preferred Security, Series 2015-1, 9.74%, Note, due 9/30/2030.

Quarterly Conference Call

StoneCastle Financial will host a webcast and conference call on May 7, 2020 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 21, 2020. 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 13701960. 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, 2020  December 31, 2019
Assets    
Investments in securities, at fair value (cost: $152,196,520 and $163,178,428 respectively)$132,978,058   $162,264,915 
Cash 62,841    35,328 
Interest and dividends receivable 1,288,615    1,784,784 
Prepaid assets 594,907    618,350 
Total assets 134,924,421    164,703,377 
     
Liabilities    
Loan payable 9,000,000    17,700,000 
Dividends payable -    2,492,424 
Investment advisory fee payable 587,069    726,500 
Directors fee payable 92,603    20,325 
Loan interest payable 3,829    38,976 
Accrued expenses payable 562,442    525,918 
Total liabilities 10,245,943    21,504,143 
Net Assets$ 124,678,478   $ 143,199,234 
     
Net Assets consist of:    
Common stock at par ($0.001 per share)$6,562   $6,559 
Paid-in-Capital 143,912,066    144,875,823 
Total distributable earnings / (loss) (19,240,150)   (1,683,148)
Net Assets$ 124,678,478   $ 143,199,234 
  0    
Net Asset Value Per Share:    
Common Stock Shares Outstanding 6,561,700    6,559,010 
Net asset value per common share$ 19.00   $ 21.83 
Market price per share$ 16.23   $ 22.30 
Market price premium / (discount) to net asset value per share -14.6%   2.15%
     



 
STONECASTLE FINANCIAL CORP.
Statement of Operations (unaudited)
    
 For The Three
Months Ended
March 31, 2020
 For The Three
Months Ended
December 31, 2019
Investment Income   
Interest$2,809,760  $3,023,153 
Dividends 737,056   909,992 
Origination fee income 27,402   27,553 
Other Income (service fees and due diligence fees) 111,075   153,903 
Total Investment Income 3,685,293  $ 4,114,601 
    
Expenses   
Investment advisory fees$587,069  $726,500 
Interest expense 166,826   263,564 
Directors' fees 77,399   77,879 
Transfer agent, custodian fees and administrator fees 72,364   73,159 
Bank administration fees 40,017   40,457 
Professional fees 39,773   40,760 
ABA marketing and licensing fees 37,437   37,846 
Investor relations fees 30,865   31,204 
Delaware franchise tax 22,694   22,943 
Insurance expense 17,951   18,148 
Valuation fees 14,988   15,153 
Printing 14,511   14,671 
Due diligence expense -   45,400 
Miscellaneous fees (proxy, rating agency, etc.) 33,261   43,739 
Total expenses  1,155,155   1,451,423 
Net Investment Income$ 2,530,138  $ 2,663,178 
    
Realized and Unrealized Gain / (Loss) on Investments   
Net realized gain / (loss) on investments$(301,223) $790,815 
Net change in unrealized depreciation on investments (18,304,949)  (442,960)
Net realized and unrealized gain / (loss) on investments (18,606,172)  347,855 
Net Increase / (Decrease) in Net Assets Resulting From Operations$ (16,076,034) $ 3,011,033 
    



STONECASTLE FINANCIAL CORP.
Financial Highlights (unaudited)
  
  
 For The Three
Months Ended
March 31, 2020
Per Share Operating Performance 
Net Asset Value, beginning of period $ 21.83 
  
Net investment income(1)$0.39 
Net realized and unrealized gain / (loss) on investments(1)$(2.84)
Total from investment operations$ (2.45)
  
Less distributions to shareholders 
From net investment income$(0.38)
Total distributions $ (0.38)
  
Net asset value, end of period$ 19.00 
  
Per share market value, end of period$ 16.23 
  
Total Investment Return (2) 
Based on market value  -25.44%
Based on net asset value -10.84%
  
Ratios and Supplemental Data 
Net assets, end of period (in millions)$ 124.7 
Ratios (as a percentage to average net assets): 
Expenses before waivers(3)(4)* 3.46%
Expenses after waivers(5)* 3.46%
Net investment income(6)* 7.58%
Portfolio turnover rate ** 0.0%
  
Revolving Credit Agreement 
Total revolving credit agreement outstanding (000's)$9,000 
Asset coverage per $1,000 for revolving credit agreement(7) 14,853 

___________

(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 2.96%.
(4)Ratio of expenses before waivers to average managed assets equals 3.09%.
(5)Ratio of expenses after waivers to average managed assets equals 3.09%.
(6)Ratio of net investment income to average managed assets equals 6.77%.
(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