ArrowMark Financial Corp.

The primary investment objectives of ArrowMark Financial Corp. (Nasdaq: BANX) are income generation, capital preservation and providing total risk-adjusted returns.


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ArrowMark Financial Corp. Reports First Quarter 2022 Results

May 12, 2022 at 4:20 PM EDT

ArrowMark Financial Corp. Reports First Quarter 2022 Results

DENVER, May 12, 2022 (GLOBE NEWSWIRE) -- ArrowMark Financial Corp. (Nasdaq: BANX) (“ArrowMark 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, 2022.

First Quarter 2022 Investment Highlights:

  • Invested approximately $6.0 million in one investment
  • Realized proceeds of approximately $13.2 million from full calls in four investments
  • Realized proceeds from partial paydowns of $4.0 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, under SEC filings.

Subsequent to the end of the quarter, the Company invested approximately $23.8 million in four investments and received proceeds of $6.4 million from partial paydowns from four investments.

The estimated annualized yield generated by the invested portfolio as of March 31, 2022 (excluding cash and cash equivalents) was approximately 9.53%, up 5 basis points from 9.48% in the prior quarter.

First Quarter 2022 Financial Results

Net investment income was $3.0 million or $0.42 per share, comprised of $4.7 million in gross income and $1.7 million of expenses. The Company also reported a net realized and unrealized loss on investments of ($0.29) per share.   Net Assets at quarter end were $152.2 million. The Company’s Net Asset Value was $21.44 per share, down ($0.26) from the prior quarter.

In the first quarter, the Company paid a regular cash distribution of $0.39 per share, which was an increase of $0.01 as declared by the board of directors at their March board meeting.   The distribution was paid on March 28, 2022, to shareholders of record at the close of business on March 21, 2022.  

The Company had $57.0 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 $6.0 million in one bank-related regulatory relief capital investments. The Company received total proceeds from of approximately $17.2 million, including full calls of $13.2 million from four investments, and $4.0 million from partial paydowns from five investments.

Subsequent to the end of the quarter, the Company invested approximately $23.8 million in four regulatory capital relief investments and received proceeds from of $6.4 million from partial paydowns from four investments.

Quarterly Conference Call

ArrowMark Financial will host a webcast and conference call on May 12, 2022, at 5:00 pm Eastern time. The call will include a presentation hosted by Chairman & CEO, Sanjai Bhonsle and Patrick J. Farrell, Chief Financial Officer. There will be no open Q&A session. All questions can be immediately addressed by calling ArrowMark Financial’s Investor Relations at 212-468-5441 or emailing to schedule a meeting with the management.

The conference call can be accessed by dialing 1-844-826-3035 for domestic callers or 1-412-317-5195 for international callers. Participants may also access the call via live webcast by visiting ArrowMark Financial's investor relations website at To listen to a live broadcast, go to the website at least 15 minutes prior to the scheduled start time 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 26, 2022. 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 10166432. The archive of the webcast will be available on the Company's website for a limited time.

About ArrowMark Financial Corp.

ArrowMark 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.    ArrowMark Financial is managed by ArrowMark Asset Management, LLC.

Disclaimer and Risk Factors:

There is no assurance that ArrowMark Financial will achieve its investment objective. ArrowMark 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 ArrowMark Financial may not be appropriate for all investors. Investors should review and consider carefully ArrowMark 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 and on the Company's website at

CONTACT: Investor Contact:
  Julie Muraco

Statement of Assets and Liabilities (unaudited)
    March 31, 2022     December 31, 2021
  Investments in securities, at fair value cost: $203,836,019 and $215,028,234 respectively) $ 200,051,448       $ 215,432,075  
  Interest and dividends receivable   2,817,851         2,494,786  
  Foreign cash (cost: $1,340,388 and $10,792 respectively)   1,345,044         10,887  
  Cash   6,072,891         72,891  
  Prepaid assets   712,608         727,349  
  Total assets   210,999,842         218,737,988  
  Loan payable   57,000,000         60,000,000  
  Dividends payable   -         3,396,206  
  Investment advisory fee payable   907,401         962,124  
  Loan interest payable   12,709         6,473  
  Unrealized depreciation on forward currency exchange contracts   713,215         599,099  
  Accrued expenses payable   121,367         271,188  
  Total liabilities   58,754,692         65,235,090  
Net Assets $ 152,245,150       $ 153,502,898  
Net Assets consist of:        
  Common stock at par ($0.001 per share) $ 7,099       $ 7,075  
  Paid-in-Capital   156,666,283         156,147,278  
  Total distributable earnings / (loss)   (4,428,232 )       (2,651,455 )
  Net Assets $ 152,245,150       $ 153,502,898  
Net Asset Value Per Share:        
Common Stock Shares Outstanding   7,099,387         7,075,430  
Net asset value per common share $ 21.44       $ 21.70  
Market price per share $ 21.51       $ 21.97  
Market price premium to net asset value per share   0.33 %       1.24 %

Statement of Operations (unaudited)
  For The Three
Months Ended
March 31, 2022
For The Three
Months Ended
December 31, 2021
Investment Income    
Interest $ 4,385,002   $ 4,060,490  
Dividends   220,435     406,663  
Origination fee income   31,977     32,278  
Other income (service fees and due diligence fees)   38,768     47,929  
Total Investment Income   4,676,182     4,547,360  
Investment advisory fees   907,401     962,124  
Interest expense   341,361     389,628  
Directors' fees   102,444     124,249  
Transfer agent, custodian fees and administrator fees   71,569     22,159  
Bank administration fees   39,578     40,457  
Professional fees   77,590     59,313  
Investor relations fees   30,526     38,205  
Insurance expense   17,753     18,148  
Valuation fees   14,823     15,151  
Miscellaneous fees (proxy, rating agency, etc.)   88,423     7,054  
Total expenses   1,691,468     1,676,488  
Net Investment Income   2,984,714     2,870,872  
Realized and Unrealized Gain / (Loss) on Investments and Foreign Currency Transactions  
Net realized gain / (loss) on investments   224,979     (142,123 )
Net realized gain from forward foreign currency contracts   2,201,190     2,466,372  
Net realized gain / (loss) from foreign currency translations   (107,593 )   (74,735 )
Net change in net unrealized appreciation / (depreciation) on investments   (4,188,412 )   (1,119,535 )
Net change in unrealized appreciation / (depreciation) on forward currency contracts   (114,116 )   (1,793,683 )
Net change in unrealized appreciation / (depreciation) on foreign currency translations   (9,292 )   19,538  
Net realized and unrealized gain/(loss) on investments, forward foreign currency contracts and foreign currency translations   (1,993,244 )   (644,166 )
Net Increase in Net Assets Resulting From Operations $ 991,470   $ 2,226,706  

Financial Highlights (unaudited)
    For The Three
Months Ended
March 31, 2022
  Per Share Operating Performance  
  Net Asset Value, beginning of period $ 21.70  
  Net investment income(1)   0.42  
  Net realized and unrealized gain (loss) on investments   (0.29 )
  Total from investment operations   0.13  
  Less distributions to shareholders  
  From net investment income   (0.39 )
  Total distributions   (0.39 )
  Net asset value, end of period $ 21.44  
  Per share market value, end of period $ 21.51  
  Total Investment Return(2)  
  Based on market value   -0.27 %
  Based on net asset value   0.64 %
  Ratios and Supplemental Data  
  Net assets, end of period (in millions) $ 152.2  
  Ratios (as a percentage to average net assets):  
  Expenses before waivers(3)(4)*   4.48 %
  Expenses after waivers(5)*   4.48 %
  Net investment income(6)*   7.91 %
  Portfolio turnover rate**   3 %
  Revolving Credit Agreement  
  Total revolving credit agreement outstanding (000's) $ 57,000  
  Asset coverage per $1,000 for revolving credit agreement(7)   3,671  
(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 3.58%.
(4)   Ratio of expenses before waivers to average managed assets equals 3.24%.
(5)   Ratio of expenses after waivers to average managed assets equals 3.24%.
(6)   Ratio of net investment income to average managed assets equals 5.71%.
(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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Source: ArrowMark Financial Corp.