StoneCastle Financial Corp. Reports Fourth Quarter 2020 Results

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.

Quarterly Conference Call

StoneCastle Financial will host a webcast and conference call on March 1, 2021 at 5:00 pm Eastern time.

About StoneCastle Financial Corp.

Disclaimer and Risk Factors:

CONTACT: Investor Contact:

Julie Muraco

212-468-5441

Market News and Data brought to you by Benzinga APIs

To add Benzinga News as your preferred source on Google, click here.

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

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

BANXArrowMark Financial Corp

$20.60-0.82%

Overview

Market News and Data brought to you by Benzinga APIs

To add Benzinga News as your preferred source on Google, click here.

ArticleFeaturedTickersList12345!!!

StoneCastle Financial Corp. Reports Fourth Quarter 2020 Results

ArticleFeaturedTickersList12345!!!

Comments

Comments