StoneCastle Financial Corp. Reports Fourth Quarter 2020 Results Nasdaq:BANX

StoneCastle Financial Corp. Reports Fourth Quarter 2020 Results Nasdaq:BANX

DENVER, March 01, 2021 (News) — 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

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 
     

 

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