StoneCastle Financial Corp. Reports Fourth Quarter 2020 Results

Rhea-AI Summary

StoneCastle Financial Corp. (BANX) announced its fourth quarter results for 2020, reporting net investment income of $3,046,401, or $0.46 per share. The company invested approximately $42.5 million and realized proceeds of $12.2 million from full calls and $7.0 million from sales. Its Net Asset Value rose to $21.44 per share, with net assets at $140.79 million. The estimated annualized yield of the portfolio stood at 9.65%. A cash distribution of $0.43 per share was paid on January 5, 2021. A conference call is scheduled for March 1, 2021, to discuss these results further.

Positive

• Net investment income of $3.05 million or $0.46 per share.
• Net Asset Value increased to $21.44 per share, a rise of $0.55.
• Estimated annualized yield of 9.65% on the investment portfolio.
• Cash distribution of $0.43 per share, including both regular and special dividends.

Negative

• Outstanding credit facility of $43.0 million, representing about 23% of total assets.

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.  

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

 

FAQ

What were StoneCastle Financial's fourth quarter 2020 results?

StoneCastle Financial reported net investment income of $3.05 million, or $0.46 per share, for Q4 2020.

What is the Net Asset Value of StoneCastle Financial as of Q4 2020?

The Net Asset Value was $21.44 per share, up $0.55 from the prior quarter.

How much did StoneCastle Financial invest in Q4 2020?

The company invested approximately $42.5 million in seven investments during the fourth quarter.

What cash distribution did StoneCastle Financial pay in January 2021?

The company paid a cash distribution of $0.43 per share on January 5, 2021.

When will the conference call for StoneCastle Financial's results take place?

The conference call is scheduled for March 1, 2021, at 5:00 pm Eastern time.