NEW YORK, Aug. 08, 2019 (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 second fiscal quarter ended June 30, 2019.
Second Quarter 2019 Investment Highlights:
- Invested $4.5 million in two investments
- Received full call proceeds of $12.9 million from three investments
Investment Activity in the Second Quarter 2019 Included:
- Invested $4.4 million in Fidelity Federal Bancorp, Fixed Rate Cumulative Perpetual Preferred Stock Series A, 9%
- Invested $51,000 in Fidelity Federal Bancorp, Fixed Rate Cumulative Perpetual Preferred Stock, Series B, 9%
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.
The estimated annualized yield generated by the invested portfolio as of June 30, 2019 (excluding cash and cash equivalents) was approximately 9.16%.
Second Quarter 2019 Financial Results
Net investment income was $2,466,244 or $0.38 per share, comprised of $4,043,437 gross income and $1,577,193 of expenses. Net Assets at quarter end were $142,937,337. The Company’s Net Asset Value was $21.80 per share. The unrealized appreciation of the portfolio increased by $1,235,125, or $0.19.
In the second quarter, the Company paid a cash distribution of $0.38 per share. The distribution was paid on June 26, 2019 to shareholders of record at the close of business on June 20, 2019.
The Company had $24 million outstanding on its $62.0 million credit facility at the quarter end, which represents approximately 14% 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 June 30, 2019, the Company had total assets of $168,153,822 consisting of total investments of $165,115,844, cash of $159,250, and other assets of $2,878,728. Other assets include interest and dividends receivable of $2,226,763 and prepaid assets of $651,965.
During the quarter, the Company invested a total of $4,490,000 in Fidelity Federal Bancorp Fixed Rate Cumulative Perpetual Preferred Series A and B, 9%. The Company received full call proceeds of $12,899,000 from three investments.
Quarterly Conference Call
StoneCastle Financial will host a webcast and conference call on August 8, 2019 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 August 22, 2019. 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 13691505. 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." StoneCastle Financial intends to make long-term, passive, non-control investments in community banks seeking capital for organic growth, acquisitions, share repurchases and other refinancing activities. Its investment objective is to provide current income and, to a lesser extent, capital appreciation. StoneCastle Financial is managed by StoneCastle Asset Management LLC.
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. Learn more at www.stonecastle-financial.com.
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, and may discuss these or other factors that affect the Company.
| STONECASTLE FINANCIAL CORP. | |||||||||||
| Statement of Assets and Liabilities (unaudited) | |||||||||||
| June 30, 2019 | March 31, 2019 | ||||||||||
| Assets | |||||||||||
| Investments in securities, at fair value (cost: $164,361,636 and $173,545,428 respectively) | $ | 165,115,844 | $ | 173,064,511 | |||||||
| Cash | 159,250 | 5,566,326 | |||||||||
| Interest and dividends receivable | 2,226,763 | 1,936,971 | |||||||||
| Prepaid assets | 651,965 | 749,793 | |||||||||
| Total assets | 168,153,822 | 181,317,601 | |||||||||
| Liabilities | |||||||||||
| Loan payable | 24,000,000 | 38,000,000 | |||||||||
| Investment advisory fee payable | 733,082 | 783,180 | |||||||||
| Loan interest payable | 3,672 | 238,916 | |||||||||
| Directors fee payable | 5,876 | 1,534 | |||||||||
| Accrued expenses payable | 473,855 | 505,662 | |||||||||
| Total liabilities | 25,216,485 | 39,529,292 | |||||||||
| Net Assets | $ | 142,937,337 | $ | 141,788,309 | |||||||
| Net Assets consist of: | |||||||||||
| Common stock at par ($0.001 per share) | $ | 6,557 | $ | 6,555 | |||||||
| Paid-in-Capital | 143,826,543 | 143,778,146 | |||||||||
| Total distributable earnings / (loss) | (895,763 | ) | (1,996,392 | ) | |||||||
| Net Assets | $ | 142,937,337 | $ | 141,788,309 | |||||||
| Net Asset Value Per Share: | |||||||||||
| Common Stock Shares Outstanding | 6,557,261 | 6,554,983 | |||||||||
| Net asset value per common share | $ | 21.80 | $ | 21.63 | |||||||
| Market price per share | $ | 21.81 | $ | 21.43 | |||||||
| Market price premium / (discount) to net asset value per share | 0.05% | -0.92% | |||||||||
| STONECASTLE FINANCIAL CORP. | |||||||||
| Statement of Operations (unaudited) | |||||||||
| For The Three Months Ended June 30, 2019 | For The Three Months Ended March 31, 2019 | ||||||||
| Investment Income | |||||||||
| Interest | $ | 2,826,558 | $ | 3,056,839 | |||||
| Dividends | 1,091,134 | 1,056,299 | |||||||
| Origination fee income | 41,127 | 13,527 | |||||||
| Other Income (service fees and due diligence fees) | 84,618 | 108,885 | |||||||
| Total Investment Income | 4,043,437 | 4,235,550 | |||||||
| Expenses | |||||||||
| Investment advisory fees | 733,081 | 783,180 | |||||||
| Interest expense | 361,786 | 527,794 | |||||||
| Professional fees | 88,773 | 113,772 | |||||||
| Transfer agent, custodian fees and administrator fees | 72,364 | 51,031 | |||||||
| Directors' fees | 58,835 | 56,959 | |||||||
| Bank administration fees | 40,017 | 36,251 | |||||||
| ABA marketing and licensing fees | 37,434 | 36,875 | |||||||
| Investor relations fees | 30,865 | 30,526 | |||||||
| Delaware franchise tax | 22,694 | 21,420 | |||||||
| Insurance expense | 17,951 | 17,753 | |||||||
| Valuation fees | 14,988 | 16,707 | |||||||
| Printing | 14,511 | 8,648 | |||||||
| Miscellaneous fees (proxy, rating agency, etc.) | 83,894 | 52,804 | |||||||
| Total expenses | 1,577,193 | 1,753,720 | |||||||
| Net Investment Income | $ | 2,466,244 | $ | 2,481,830 | |||||
| Realized and Unrealized Gain / (Loss) on Investments | |||||||||
| Net realized loss on investments | $ | (109,845 | ) | $ | (91,503 | ) | |||
| Net change in unrealized appreciation on investments | 1,235,125 | 1,414,753 | |||||||
| Net realized and unrealized gain / (loss) on investments | 1,125,280 | 1,323,250 | |||||||
| Net Increase in Net Assets Resulting From Operations | $ | 3,591,524 | $ | 3,805,080 | |||||
| STONECASTLE FINANCIAL CORP. | ||||||||
| Financial Highlights (unaudited) | ||||||||
| For The Three Months Ended June 30, 2019 | ||||||||
| Per Share Operating Performance | ||||||||
| Net Asset Value, beginning of period | $ | 21.63 | ||||||
| Net investment income(1) | $ | 0.38 | ||||||
| Net realized and unrealized gain on investments(1) | $ | 0.17 | ||||||
| Total from investment operations | $ | 0.55 | ||||||
| Less distributions to shareholders | ||||||||
| From net investment income | $ | (0.38 | ) | |||||
| Total distributions | $ | (0.38 | ) | |||||
| Net asset value, end of period | $ | 21.80 | ||||||
| Per share market value, end of period | $ | 21.81 | ||||||
| Total Investment Return (2) | ||||||||
| Based on market value | 3.59% | |||||||
| Based on net asset value | 2.59% | |||||||
| Ratios and Supplemental Data | ||||||||
| Net assets, end of period (in millions) | $ | 142.9 | ||||||
| Ratios (as a percentage to average net assets): | ||||||||
| Expenses before waivers(3)(4)* | 4.44% | |||||||
| Expenses after waivers(5)* | 4.44% | |||||||
| Net investment income(6)* | 6.95% | |||||||
| Portfolio turnover rate ** | 3% | |||||||
| Revolving Credit Agreement | ||||||||
| Total revolving credit agreement outstanding (000's) | $ | 24,000 | ||||||
| Asset coverage per $1,000 for revolving credit agreement(7) | 6,956 | |||||||
(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 3.42%.
(4) Ratio of expenses before waivers to average managed assets equals 3.62%.
(5) Ratio of expenses after waivers to average managed assets equals 3.62%.
(6) Ratio of net investment income to average managed assets equals 5.66%.
(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