StoneCastle Financial Corp. Reports Fourth Quarter 2019 Results

DENVER, Feb. 27, 2020 (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 fourth fiscal quarter ended December 31, 2019.

Fourth Quarter 2019 Investment Highlights:

Invested $700,000 in F.N.B.C. of La Grange, Inc., Subordinated Debt, 6.38%, due 1/1/2030 with an effective yield of 9.08%

Realized a capital gain of $425,000 from the partial call of $1.8 million of MMCaps Funding I, Ltd, Fixed Rate Senior Notes, 6.34%, due 6/8/2031

Realized a capital gain of $366,000 on the sale of Howard Bancorp common stock

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.

The estimated annualized yield generated by the invested portfolio as of December 31, 2019 (excluding cash and cash equivalents) was approximately 9.58%.

Fourth Quarter 2019 Financial Results

Total earnings for the fourth quarter were $3,453,993 or $0.53 per share. Net investment income was $2,663,178 or $0.41 per share, comprised of $4,114,601 gross income and $1,451,423 of expenses. For the quarter, net realized capital gains were $790,815 or $0.12 per share. Net Assets at quarter end were $143,199,234. The unrealized appreciation of the portfolio decreased by $442,960 or $0.07 per share. The Company’s Net Asset Value was $21.83 per share, up $0.08 from the prior quarter.

In the fourth quarter, the Company paid a cash distribution of $0.38 per share. The distribution was paid on January 3, 2020 to shareholders of record at the close of business on December 23, 2019.

The Company had $17.7 million outstanding on its $62.0 million credit facility at the quarter end, which represents approximately 11.0% 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 December 31, 2019, the Company had total assets of $164,703,377 consisting of total investments of $162,264,915, cash of $35,328, and other assets of $2,403,134. Other assets include interest and dividends receivable of $1,784,784 and prepaid assets of $618,350.

During the quarter, the Company purchased $700,000 F.N.B.C. of La Grange, Inc. Subordinated Debt, 6.38%, due 1/1/2030 with an effective yield of 9.08%. The Company received partial call proceeds of $1,837,622 from MMCaps Funding I, Ltd, Fixed Rate Senior Notes 6.34%, 6/8/2031. Additionally, the Company also received $1,369,640 from the sale of Howard Bancorp common stock.

Quarterly Conference Call

StoneCastle Financial will host a webcast and conference call on February 27, 2020 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 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 March 12, 2020. 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 13698624. 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 and, to a lesser extent, capital appreciation. 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.

Investor Contact:
Julie Muraco
212-468-5441