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StoneCastle Financial Corp. Reports Third Quarter 2017 Results

November 9, 2017 at 4:10 PM EST

StoneCastle Financial Corp. Reports Third Quarter 2017 Results

NEW YORK, Nov. 09, 2017 (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 third fiscal quarter ended September 30, 2017.  

Third Quarter 2017 Investment Highlights:

  • Received full call proceeds of $13.0 million from one investment

  • Received pay-downs of $37,752 from six investments

A complete listing of investments as of the end of the quarter can be found on the Company's website at

The estimated annualized yield generated by the invested portfolio as of September 30, 2017 (excluding cash and cash equivalents) was approximately, 9.06% up from 8.96%, year over year.

Third Quarter 2017 Financial Results

Net investment income was $2,601,835 or $0.40 per share, comprised of $4,359,828 in gross income and $1,757,993 of expenses.  Realized capital losses were ($147,236). 

Net Assets at quarter end were $141,078,696, up from $140,419,836 in the previous quarter.  The Company's Net Asset Value was $21.56 per share, up $0.09 from the prior quarter.  The value of the invested portfolio increased $630,018.   

In the third quarter, the Company paid a cash distribution of $0.38 per share, up $0.01 from the prior quarter.  The distribution was paid on September 28, 2017 to shareholders of record at the close of business on September 21, 2017.   

The Company had $36.5 million outstanding on its $62.0 million credit facility at the quarter end, which represents approximately 20.4% 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 September 30, 2017, the Company had total assets of $178,703,715 consisting of total investments of $174,745,784, cash of $248,128 and other assets of $3,709,803.  Other assets include interest and dividends receivable of $2,600,690 and prepaid assets of $1,109,113.

During the quarter, the Company received one call and six pay-downs for a total of $13,074,627. 

Quarterly Conference Call

StoneCastle Financial will host a webcast and conference call on November 9, 2017 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 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 November 23, 2017. 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 13671317. 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." StoneCastle Financial intends to make long-term, passive, non-control investments in community banks seeking capital for organic growth, acquisitions, share repurchases and other refinancing activities. Its investment objective is to provide current income and, to a lesser extent, capital appreciation. StoneCastle Financial is managed by StoneCastle Asset Management LLC.

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. Learn more at

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, and may discuss these or other factors that affect the Company.

CONTACT: Investor Contact:

   Julie Muraco


 Statement of Assets and Liabilities (unaudited) 
    September 30, 2017  June 30, 2017 
  Investments in securities, at fair value (cost: $176,825,546 and $188,732,477 respectively) $  174,745,784   $  186,022,696  
  Cash     248,128      521,184  
  Interest and dividends receivable    2,600,690      3,334,760  
  Prepaid assets    1,109,113      1,141,050  
  Total assets    178,703,715       191,019,690   
  Loan payable    36,500,000      49,500,000  
  Investment advisory fee payable     788,255      833,664  
  Directors fee payable    12,908      12,491  
  Loan interest payable    1,149      12,320  
  Accrued expenses payable    322,707      241,379  
  Total liabilities    37,625,019       50,599,854   
 Net Assets $   141,078,696    $   140,419,836   
 Net Assets consist of:      
  Common stock at par ($0.001 per share) $  6,542   $  6,539  
  Paid-in-capital    144,858,951      144,799,774  
  Accumulated net investment loss    (1,252,819)     (1,369,717) 
  Accumulated net realized loss on investments    (454,216)     (306,979) 
  Net unrealized depreciation on investments    (2,079,762)   (2,709,781) 
  Net Assets $   141,078,696    $   140,419,836   
 Net Asset Value Per Share:      
 Common Stock Shares Outstanding  6,542,289     6,539,308   
 Net asset value per common share $   21.56    $   21.47   
 Market price per share $   20.64    $   20.40   
 Market price discount to net asset value per share  -4.27%   -4.98% 


 Statement of Operations (unaudited) 
    For The Three
Months Ended
September 30,
  For The Three
Months Ended
June 30,
 Investment Income      
  Interest  $  3,329,471   $  3,177,617  
  Dividends    960,763      1,011,275  
  Origination fee income    7,094      5,121  
  Other Income    62,500      62,500  
  Total Investment Income    4,359,828       4,256,513   
  Investment advisory fees    788,255      833,664  
  Interest expense    428,246      463,780  
  Professional fees    141,981      52,620  
  Bank fees    69,742      61,051  
  Transfer agent, custodian fees and administrator fees    68,357      67,045  
  ABA marketing and licensing fees    55,096      62,604  
  Directors' fees    51,793      51,858  
  Investor relations fees    32,946      32,615  
  Delaware franchise tax    22,684      22,438  
  Insurance expense    22,019      23,267  
  Printing    18,195      11,997  
  Valuation fees    12,338      12,071  
  Miscellaneous fees     46,341      39,894  
  Total expenses    1,757,993       1,734,904   
  Net Investment Income $   2,601,835    $   2,521,609   
 Realized and Unrealized Gain / (Loss) on Investments      
  Net realized loss on investments $  (147,236)  $  (18,402) 
  Net change in unrealized  depreciation  on investments    630,018      919,696  
  Net realized and unrealized gain on investments    482,782      901,294  
  Net Increase in Net Assets Resulting From Operations $   3,084,617    $   3,422,903   


 Financial Highlights (unaudited) 
    For The Three 
Months Ended
September 30, 2017
 Per Share Operating Performance    
 Net Asset Value, beginning of period   $   21.47   
 Net investment income(1)     0.40  
 Net realized and unrealized gain on investments(1)     0.07  
 Total from investment operations     0.47   
 Less distributions to shareholders    
 From net investment income     (0.38) 
 Total distributions      (0.38) 
 Net asset value, end of period  $   21.56   
 Per share market value, end of period  $   20.64   
 Total Investment Return (2)    
 Based on market value    3.11% 
 Based on net asset value   2.34% 
 Ratios and Supplemental Data    
 Net assets, end of period (in millions)  $   141.1   
 Ratios (as a percentage to average net assets):    
   Expenses before waivers(3)(4)*   4.96% 
   Expenses after waivers(5)*   4.96% 
   Net investment income(6)*   7.33% 
 Portfolio turnover rate **   0% 
 Revolving Credit Agreement    
 Total revolving credit agreement outstanding (000's)  $  36,500  
 Asset coverage per $1,000 for revolving credit agreement(7)     4,865  
(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 3.75%.    
(4)Ratio of expenses before waivers to average managed assets equals 3.77%. 
(5)Ratio of expenses after waivers to average managed assets equals 3.77%.  
(6)Ratio of net investment income to average managed assets equals 5.58%.  
(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