NEW YORK, Aug. 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 second fiscal quarter ended June 30, 2017.  

Second Quarter 2017 Investment Highlights:

• Invested $12.5 million in one investment
   
• Received full call proceeds of $12.2 million from three 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.

The estimated annualized yield generated by the invested portfolio as of June 30, 2017 (excluding cash and cash equivalents) was approximately, 9.08%, up from 8.97%, year over year.

Second Quarter 2017 Financial Results

Net investment income was $2,521,609 or $0.39 per share, comprised of $4,256,513 gross income and $1,734,904 of expenses.  Realized capital losses were ($18,402).

Net Assets at quarter end were $140,419,836, up from $139,347,934 in the previous quarter.  The Company’s Net Asset Value was $21.47 per share, up $0.15 from the prior quarter.  The value of the invested portfolio increased $919,696.

The Company declared a second quarter cash distribution of $0.37 per share.  The distribution was paid on June 29, 2017 to shareholders of record at the close of business on June 20, 2017.  

The Company had $49,500,000 million outstanding on its $62.0 million credit facility at the quarter end, which represents approximately 25.9% 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 June 30, 2017, the Company had total assets of $191,019,690 consisting of total investments of $186,022,696, cash of $521,184 and other assets of $4,475,810.  Other assets include interest and dividends receivable of $3,334,760 and prepaid assets of $1,141,050.

During the quarter, the Company deployed $12,500,000 in one investment, First Community Holdings, Inc. Subordinated Term loan, 7.5%, 7/1/2027.  The Company received three full calls of $12,244,800. 

Quarterly Conference Call

StoneCastle Financial will host a webcast and conference call on August 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 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 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 13664204. 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 www.stonecastle-financial.com.

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

STONECASTLE FINANCIAL CORP.
Statement of Assets and Liabilities (unaudited)
			June 30, 2017					March 31, 2017
Assets
	Investments in securities, at fair value (cost: $188,732,477 and $189,866,948 respectively)		$	186,022,696				$	186,237,472
	Cash (1)			521,184					3,605,587
	Interest and dividends receivable			3,334,760					2,822,970
	Prepaid assets			1,141,050					722,740
	Total assets			191,019,690					193,388,769
Liabilities
	Loan payable			49,500,000					52,750,000
	Investment advisory fee payable			833,664					949,243
	Loan interest payable			12,320					41,028
	Directors fee payable			12,491					12,630
	Accrued expenses payable			241,379					287,934
	Total liabilities			50,599,854					54,040,835
Net Assets			$	140,419,836				$	139,347,934
Net Assets consist of:
	Common stock at par ($0.001 per share)		$	6,539				$	6,536
	Paid-in-capital			144,799,774					144,732,513
	Accumulated net investment loss			(1,369,717	)				(1,473,061	)
	Accumulated net realized loss on investments			(306,979	)				(288,578	)
	Net unrealized depreciation on investments			(2,709,781	)				(3,629,476	)
	Net Assets		$	140,419,836				$	139,347,934
Net Asset Value Per Share:
Common Stock Shares Outstanding				6,539,308					6,535,847
Net asset value per common share			$	21.47				$	21.32
Market price per share			$	20.40				$	20.16
Market price discount to net asset value per share				-4.98	%				-5.44	%
(1) Includes $3,500,000 of restricted cash held in a segregated account at Texas Capital Bank to cover collateral requirements
in the period ended March 31, 2017.

 

STONECASTLE FINANCIAL CORP.
Statement of Operations (unaudited)
				For The Three Months Ended June 30, 2017				For The Three Months Ended March 31, 2017
Investment Income
		Interest		$	3,177,617			$	3,254,934
		Dividends			1,011,275				1,185,283
		Origination fee income			5,121				16,158
		Other Income			62,500				62,500
		Total Investment Income			4,256,513				4,518,875
Expenses
		Investment advisory fees(1)			833,664				949,243
		Interest expense			463,780				549,620
		Transfer agent, custodian fees and administrator fees			67,045				73,794
		ABA marketing and licensing fees			62,604				60,810
		Bank fees			61,051				55,263
		Directors' fees			51,858				50,055
		Professional fees			52,620				48,604
		Investor relations fees			32,615				30,295
		Insurance expense			23,267				22,695
		Delaware franchise tax			22,438				22,192
		Printing			11,997				21,613
		Valuation fees			12,071				18,254
		Miscellaneous fees			39,894				47,089
		Total expenses			1,734,904				1,949,527
		Net Investment Income		$	2,521,609			$	2,569,348
Realized and Unrealized Gain / (Loss) on Investments
		Net realized gain / (loss) on investments		$	(18,402	)		$	391,496
		Net change in unrealized  depreciation  on investments			919,696				104,505
		Net realized and unrealized gain on investments			901,294				496,001
		Net Increase in Net Assets Resulting From Operations		$	3,422,903			$	3,065,349
(1	)	The investment advisory fee at the period ended March 31, 2017 includes $115,000 recouped
		from the fee waiver in Q4 2016.

 

STONECASTLE FINANCIAL CORP.
Financial Highlights (unaudited)
				For The Three  Months Ended June 30, 2017
		Per Share Operating Performance
		Net Asset Value, beginning of period		$	21.32
		Net investment income(1)			0.39
		Net realized and unrealized gain on investments(1)			0.13
		Total from investment operations			0.52
		Less distributions to shareholders
		From net investment income			(0.37)
		Total distributions			(0.37)
		Net asset value, end of period		$	21.47
		Per share market value, end of period		$	20.40
		Total Investment Return (2)
		Based on market value			3.12%
		Based on net asset value			2.62%
		Ratios and Supplemental Data
		Net assets, end of period (in millions)		$	140.4
		Ratios (as a percentage to average net assets):
		Expenses before waivers(3)(4)*			4.97%
		Expenses after waivers(5)*			4.97%
		Net investment income(6)*			7.23%
		Portfolio turnover rate **			7%
		Revolving Credit Agreement
		Total revolving credit agreement outstanding (000's)		$	49,500
		Asset coverage per $1,000 for revolving credit agreement(7)			3,837
(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 3.64%.
(4	)	Ratio of expenses before waivers to average managed assets equals 3.62%.
(5	)	Ratio of expenses after waivers to average managed assets equals 3.62%.
(6	)	Ratio of net investment income to average managed assets equals 5.26%.
(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

CONTACT: Investor Contact:
Julie Muraco
347-887-0324