ArrowMark Financial Corp.

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

 

Investor Banner

StoneCastle Financial Corp. Reports Second Quarter 2021 Results

August 5, 2021 at 4:20 PM EDT

StoneCastle Financial Corp. Reports Second Quarter 2021 Results

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  
     


Primary Logo

Source: StoneCastle Financial Corp.