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 Third Quarter 2022 Results

November 9, 2022 at 4:20 PM EST

ArrowMark Financial Corp. Reports Third Quarter 2022 Results

DENVER, Nov. 09, 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 third fiscal quarter ended September 30, 2022.

Third Quarter 2022 Investment Highlights:

  • Invested approximately $17.9 million in four investments
  • Realized proceeds of approximately $10.4 million from the sale of three investments
  • Realized proceeds from partial paydowns of $4.5 million from seven 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.

The estimated annualized yield generated by the invested portfolio as of September 30, 2022 (excluding cash and cash equivalents) was approximately 11.85%, up 174 basis points from 10.11% in the prior quarter.

Third Quarter 2022 Financial Results

Net investment income was $3.3 million or $0.46 per share, comprised of $5.3 million in gross income and $2.0 million of expenses. The Company also reported a net realized and unrealized loss on investments of ($0.27) per share. Net Assets at quarter end were $147.3 million. The Company’s Net Asset Value was $20.74 per share, down ($0.20) from the prior quarter.

In the third quarter, the Company paid a regular cash distribution of $0.39 per share which was paid on September 29, 2022, to shareholders of record at the close of business on September 22, 2022.  

The Company had $62.3 million outstanding on its $70.0 million credit facility at the quarter end, which represents approximately 29% 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 $17.9 million in four bank-related regulatory relief capital investments. The Company received total proceeds of approximately $14.9 million, including $10.4 million from the sale of three investments, and $4.5 million from partial paydowns from seven investments.

Quarterly Conference Call

ArrowMark Financial will host a webcast and conference call on November 9, 2022, at 5:00 pm Eastern time. The call will include a presentation hosted by Chairman & CEO, Sanjai Bhonsle, President, Dana Staggs, and Chief Financial Officer, Patrick J. Farrell. 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 November 23, 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 10171795. 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. The Company’s website can be found at

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

Investor Contact:
Julie Muraco

  Statement of Assets and Liabilities (unaudited)
      September 30, 2022   June 30, 2022
    Investments in securities, at fair value cost: $209,448,494 and $207,554,612 respectively) $ 193,181,830     $ 197,055,807  
    Interest and dividends receivable   12,225,520       2,894,419  
    Foreign cash (cost: $21,298 and $23,338 respectively)   21,418       22,443  
    Cash   5,297,472       127,284  
    Unrealized appreciation on forward currency exchange contracts   35,701       -  
    Prepaid assets   1,494,260       1,535,171  
    Total assets   212,256,201       201,635,124  
    Loan payable   62,300,000       51,500,000  
    Investment advisory fee payable   930,951       877,992  
    Loan interest payable   296,986       33,990  
    Unrealized depreciation on forward currency exchange contracts   1,202,041       399,809  
    Accrued expenses payable   199,614       162,644  
    Total liabilities   64,929,592       52,974,435  
  Net Assets $ 147,326,609     $ 148,660,689  
  Net Assets consist of:      
    Common stock at par ($0.001 per share) $ 7,103     $ 7,101  
    Paid-in-Capital   156,724,166       156,696,147  
    Total distributable earnings / (loss)   (9,404,660 )     (8,042,559 )
    Net Assets $ 147,326,609     $ 148,660,689  
  Net Asset Value Per Share:      
  Common Stock Shares Outstanding   7,102,626       7,101,054  
  Net asset value per common share $ 20.74     $ 20.94  
  Market price per share $ 17.26     $ 19.20  
  Market price premium/(discount) to net asset value per share   -16.78 %     -8.31 %

Statement of Operations (unaudited)
      For The Three Months
Ended September 30, 2022
For The Three Months
Ended June 30, 2022
  Investment Income    
    Interest $ 5,130,810   $ 4,713,141  
    Dividends   146,258     259,077  
    Origination fee income   32,278     32,127  
    Other income (service fees and due diligence fees)   38,768     32,238  
    Total Investment Income   5,348,114     5,036,583  
    Investment advisory fees   930,951     877,992  
    Interest expense   652,189     486,112  
    Directors' fees   104,052     125,152  
    Transfer agent, custodian fees and administrator fees   73,159     82,364  
    Bank administration fees   76,504     51,772  
    Professional fees   79,313     148,450  
    Investor relations fees   31,205     29,080  
    Insurance expense   18,148     17,951  
    Valuation fees   15,152     69,988  
    Miscellaneous fees (proxy, rating agency, etc.)   92,165     89,309  
    Total expenses   2,072,838     1,978,170  
    Net Investment Income   3,275,276     3,058,413  
  Realized and Unrealized Gain / (Loss) on Investments and Foreign Currency Transactions  
    Net realized gain / (loss) on investments   (110,240 )   (808,687 )
    Net realized gain from forward foreign currency contracts   4,983,569     3,540,799  
    Net realized gain / (loss) from foreign currency translations   (184,231 )   (226,172 )
    Net change in net unrealized appreciation / (depreciation) on investments   (5,767,859 )   (6,714,234 )
    Net change in unrealized appreciation / (depreciation) on forward currency contracts   (766,531 )   313,406  
    Net change in unrealized appreciation / (depreciation) on foreign currency translations   (22,674 )   (9,092 )
    Net realized and unrealized gain/(loss) on investments, forward foreign currency contracts and foreign currency translations   (1,867,966 )   (3,903,980 )
    Net Increase/(Decrease) in Net Assets Resulting From Operations $ 1,407,310   $ (845,567 )

Financial Highlights (unaudited)
    For The Three Months
Ended September 30, 2022
  Per Share Operating Performance  
  Net Asset Value, beginning of period $ 20.94  
  Net investment income(1)   0.46  
  Net realized and unrealized gain (loss) on investments   (0.27 )
  Total from investment operations   0.19  
  Less distributions to shareholders  
  From net investment income   (0.39 )
  Total distributions   (0.39 )
  Net asset value, end of period $ 20.74  
  Per share market value, end of period $ 17.26  
  Total Investment Return (2)  
  Based on market value   -8.14 %
  Based on net asset value   1.21 %
  Ratios and Supplemental Data  
  Net assets, end of period (in millions) $ 147.3  
  Ratios (as a percentage to average net assets):  
  Expenses before waivers(3)(4)*   5.55 %
  Expenses after waivers(5)*   5.55 %
  Net investment income(6)*   8.77 %
  Portfolio turnover rate **   9 %
  Revolving Credit Agreement  
  Total revolving credit agreement outstanding (000's) $ 62,300  
  Asset coverage per $1,000 for revolving credit agreement(7)   3,365  
(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 3.80%.  
(4 ) Ratio of expenses before waivers to average managed assets equals 4.05%.
(5 ) Ratio of expenses after waivers to average managed assets equals 4.05%.
(6 ) Ratio of net investment income to average managed assets equals 6.39%.
(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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