StoneCastle Financial Corp. Reports First Quarter 2021 Results

Rhea-AI Summary

StoneCastle Financial Corp. (BANX) reported its first quarter results for 2021. The company invested approximately $17.5 million in six investments and realized proceeds of $4.7 million from one investment's maturity. Net investment income reached $2,603,278 or $0.40 per share. The Net Asset Value rose to $21.62 per share, an increase of $0.18 from the previous quarter. A cash distribution of $0.38 per share was paid on March 25, 2021. Total assets stood at $182,525,474 with $39.0 million drawn from its credit facility.

Positive

• Invested $17.5 million in six new investments.
• Achieved net investment income of $2,603,278, or $0.40 per share.
• Net Asset Value rose to $21.62 per share, up $0.18.
• Paid a cash distribution of $0.38 per share on March 25, 2021.

Negative

• Outstanding credit facility of $39.0 million represents 21% of total assets.

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 Muraco
212-468-5441

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, 2021			For 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

FAQ

What were StoneCastle Financial's investments in Q1 2021?

StoneCastle Financial invested approximately $17.5 million in six investments during the first quarter of 2021.

What was StoneCastle Financial's net investment income for Q1 2021?

The net investment income for StoneCastle Financial in Q1 2021 was $2,603,278, or $0.40 per share.

What is the Net Asset Value of StoneCastle Financial as of March 31, 2021?

As of March 31, 2021, the Net Asset Value of StoneCastle Financial was $21.62 per share.

When was the cash distribution paid by StoneCastle Financial?

StoneCastle Financial paid a cash distribution of $0.38 per share on March 25, 2021.

What are the total assets of StoneCastle Financial at the end of Q1 2021?

At the end of Q1 2021, StoneCastle Financial had total assets of $182,525,474.