StoneCastle Financial Corp. Reports Second Quarter 2020 Results

DENVER, Aug. 06, 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 second fiscal quarter ended June 30, 2020.

Second Quarter 2020 Investment Highlights:

Invested $36.3 million in six investments

Realized proceeds of $5.0 million from the partial sale of one investment

Realized proceeds from paydowns of $598,996 from two 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, 2020 (excluding cash and cash equivalents) was approximately 10.10%

Second Quarter 2020 Financial Results

Net investment income was $2,662,465 or $0.41 per share, comprised of $4,017,972 gross income and $1,355,507 of expenses. Net Assets at quarter end were $133,059,234. The Company’s Net Asset Value was $20.27 per share, up $1.27 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 26, 2020 to shareholders of record at the close of business on June 19, 2020.

The Company had $33 million outstanding on its $62.0 million credit facility at the quarter end, which represents approximately 19% 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, 2020, the Company had total assets of $173,984,251 consisting of total investments of $165,755,271, cash and other assets of $8,228,980.

During the quarter, the Company invested a total of $36,326,963 in six bank-related investments. The Company invested a total of $25,185,650 in alternative capital securities, $6,826,313 in one common stock, and $4,315,000 in one preferred stock. The Company received proceeds of $5,025,252 from the partial sale of iShares S&P U.S. Preferred Stock Index Fund (PFF).

Quarterly Conference Call

StoneCastle Financial will host a webcast and conference call on August 6, 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 August 20, 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 13706664. 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.