StoneCastle Financial Corp. Reports Second Quarter 2021 Results

Rhea-AI Summary

StoneCastle Financial Corp. (Nasdaq: BANX) announced its second quarter results for the fiscal year ending June 30, 2021. The Company invested approximately $17.1 million in four investments, achieving realized proceeds of $81,000 from one investment and $3.9 million from five others. As of June 30, the estimated annualized yield of its portfolio was about 9.47%. The net investment income was $2,638,368 ($0.40 per share) with net assets totaling $143.4 million, resulting in a NAV of $21.80 per share. A cash distribution of $0.38 per share was paid on June 28, 2021.

Positive

• Investment of approximately $17.1 million in four investments during Q2 2021.
• Net investment income of $2,638,368, equivalent to $0.40 per share.
• Estimated annualized yield of 9.47% generated by the investment portfolio.
• Increase in Net Asset Value (NAV) to $21.80 per share, up from the prior quarter.

Negative

• Expenses totaled $1,616,077, indicating high operational costs.

DENVER, Aug. 05, 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 second fiscal quarter ended June 30, 2021.

Second Quarter 2021 Investment Highlights:

• Invested approximately $17.1 million in four investments
• Realized proceeds of $81,000 from the call of one investment
• Realized proceeds from partial paydowns of $3.9 million from five 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 $5.5 million in three investments and received partial paydowns of $1.8 million.

The estimated annualized yield generated by the invested portfolio as of June 30, 2021 (excluding cash and cash equivalents) was approximately 9.47%.

Second Quarter 2021 Financial Results

Net investment income was $2,638,368 or $0.40 per share, comprised of $4,254,445 gross income and $1,616,077 of expenses. Net Assets at quarter end were $143,350,062. The Company’s Net Asset Value was $21.80 per share, up $0.18 from the prior quarter.

In the second quarter, the Company paid a cash distribution of $0.38 per share. The distribution was paid on June 28, 2021 to shareholders of record at the close of business on June 21, 2021.  

The Company had $53.5 million outstanding on its $62.0 million credit facility at the quarter end, which represents approximately 27% 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

During the quarter, the Company invested a total of $17.1 million in bank-related regulatory relief capital investments. The Company received total proceeds of approximately $4.0 million from the call of one investment and partial paydowns from five investments.

Quarterly Conference Call

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

The conference call can be accessed by dialing 1-800-909-4804 for domestic callers or 1-212-231-2906 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 19, 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 21996129. 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. 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)
			June 30, 2021				March 31, 2021
Assets
	Investments in securities, at fair value (cost: $243,502,615 and $176,919,203 respectively)		$	246,536,217			$	178,022,813
	Interest and dividends receivable			2,535,516				2,335,288
	Foreign cash (cost: $ and $1,300,817 respectively)			-				1,302,222
	Cash			196,016				63,110
	Unrealized appreciation on forward currency exchange contracts			31,365				204,752
	Prepaid assets			797,294				597,289
	Total assets			250,096,408				182,525,474
Liabilities
	Loan payable			53,500,000				39,000,000
	Due to custodian			51,709,512
	Investment advisory fee payable			865,565				787,610
	Loan interest payable			36,460				35,982
	Accrued expenses payable			634,809				631,753
	Total liabilities			106,746,346				40,455,345
Net Assets			$	143,350,062			$	142,070,129
Net Assets consist of:
	Common stock at par ($0.001 per share)		$	6,575			$	6,572
	Paid-in-Capital			145,188,957				145,128,467
	Total distributable earnings / (loss)			(1,845,470	)			(3,064,910	)
	Net Assets		$	143,350,062			$	142,070,129
Net Asset Value Per Share:
Common Stock Shares Outstanding				6,575,035				6,572,212
Net asset value per common share			$	21.80			$	21.62
Market price per share			$	22.01			$	19.79
Market price premium / (discount) to net asset value per share				0.96	%			-8.46	%

STONECASTLE FINANCIAL CORP.
Statement of Operations (unaudited)
		For The Three Months Ended June 30, 2021				For The Three Months Ended March 31, 2021
Investment Income
	Interest	$	3,528,605			$	3,299,156
	Dividends		653,832				749,851
	Origination fee income		32,127				31,977
	Other Income (service fees and due diligence fees)		39,881				44,544
	Total Investment Income		4,254,445				4,125,528
Expenses
	Investment advisory fees		865,565				787,610
	Interest expense		299,707				295,817
	Directors' fees		104,197				84,854
	Transfer agent, custodian fees and administrator fees		72,364				71,569
	Bank administration fees		40,017				39,578
	Professional fees		78,451				94,930
	ABA marketing and licensing fees		20,789				32,955
	Investor relations fees		30,866				30,526
	Delaware franchise tax		22,694				22,444
	Insurance expense		17,951				17,753
	Valuation fees		14,988				14,823
	Miscellaneous fees (proxy, rating agency, etc.)		48,488				29,391
	Total expenses		1,616,077				1,522,250
	Net Investment Income		2,638,368				2,603,278
Realized and Unrealized Gain / (Loss) on Investments and Foreign Currency Transactions
	Net realized gain / (loss) on investments		(960,605	)			91,458
	Net realized gain from forward foreign currency contracts		192,322				1,675,729
	Net realized gain / (loss) from foreign currency translations		(711,007	)			134,076
	Net change in net unrealized appreciation / (depreciation) on investments		2,548,098				(957,630	)
	Net change in unrealized appreciation / (depreciation) on written options		-				596
	Net change in unrealized appreciation / (depreciation) on forward currency contracts		(173,387	)			138,261
	Net change in unrealized appreciation / (depreciation) on foreign currency translations		183,084				(44,538	)
	Net realized and unrealized gain/(loss) on investments, written options, forward foreign currency contracts and foreign currency translations		1,078,505				1,037,952
	Net Increase in Net Assets Resulting From Operations	$	3,716,874			$	3,641,230

STONECASTLE FINANCIAL CORP.
Financial Highlights (unaudited)
			For The Three Months Ended June 30, 2021
		Per Share Operating Performance
		Net Asset Value, beginning of period	$	21.62
		Net investment income(1)		0.40
		Net realized and unrealized gain 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	$	21.80
		Per share market value, end of period	$	22.01
		Total Investment Return (2)
		Based on market value		13.2	%
		Based on net asset value		2.6	%
		Ratios and Supplemental Data
		Net assets, end of period (in millions)	$	143.4
		Ratios (as a percentage to average net assets):
		Expenses before waivers(3)(4)*		4.54	%
		Expenses after waivers(5)*		4.54	%
		Net investment income(6)*		7.42	%
		Portfolio turnover rate **		7	%
		Revolving Credit Agreement
		Total revolving credit agreement outstanding (000's)	$	53,500
		Asset coverage per $1,000 for revolving credit agreement(7)		3,679
(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 3.70%.
(4	)	Ratio of expenses before waivers to average managed assets equals 3.40%.
(5	)	Ratio of expenses after waivers to average managed assets equals 3.40%.
(6	)	Ratio of net investment income to average managed assets equals 5.56%.
(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 the investment highlights for StoneCastle Financial (BANX) in Q2 2021?

In Q2 2021, StoneCastle Financial invested approximately $17.1 million across four investments and achieved realized proceeds of $81,000 from one investment.

What was the net investment income for BANX in the second quarter of 2021?

The net investment income for StoneCastle Financial in Q2 2021 was $2,638,368, or $0.40 per share.

What was the Net Asset Value (NAV) per share for StoneCastle Financial (BANX) as of June 30, 2021?

As of June 30, 2021, the NAV per share for StoneCastle Financial was $21.80.

Did StoneCastle Financial (BANX) distribute any cash to shareholders in Q2 2021?

Yes, StoneCastle Financial paid a cash distribution of $0.38 per share on June 28, 2021.

What was the estimated annualized yield for BANX's invested portfolio as of June 30, 2021?

The estimated annualized yield for StoneCastle Financial's invested portfolio as of June 30, 2021 was approximately 9.47%.