GlobeNewswire Inc | Mar 1, 2021 04:20PM EST

March 01, 2021

DENVER, March 01, 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 fourth fiscal quarter ended December 31, 2020.

Fourth Quarter 2020 Investment Highlights:

-- Invested approximately $42.5 million in seven investments -- Realized proceeds of $12.2 million from the full calls of two investments -- Realized proceeds of $7.0 million from the sale of one investment -- Realized proceeds from partial paydowns of $3.7 million from four investments

A complete listing of investments as of the end of the quarter can be found on the Companys website at www.stonecastle-financial.com.

Subsequent to the end of the quarter, the Company invested approximately $13.5 million in five investments and received partial paydowns of $3.0 million.

The estimated annualized yield generated by the invested portfolio as of December 31, 2020 (excluding cash and cash equivalents) was approximately 9.65%.

Fourth Quarter 2020 Financial Results

Net investment income was $3,046,401 or $0.46 per share, comprised of $4,668,621 gross income and $1,622,220 of expenses. Net Assets at quarter end were $140,789,132. The Companys Net Asset Value was $21.44 per share, up $0.55 from the prior quarter.

In the fourth quarter, the Company paid a cash distribution of $0.43 per share, comprised of a $0.38 regular dividend and a $0.05 special dividend. The distribution was paid on January 5, 2021 to shareholders of record at the close of business on December 21, 2020.

The Company had $43.0 million outstanding on its $62.0 million credit facility at the quarter end, which represents approximately 23% 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, 2020, the Company had total assets of $188,360,866 consisting of total investments of $178,362,337, cash and other assets of $9,998,529.

During the quarter, the Company invested a total of $42.5 million in seven bank-related investments. The Company invested a total of $37.5 million in six alternative capital securities, and $5.0 million in one community bank preferred stock. The Company received proceeds of $12.2 million from the full calls of two investments, received $7.0 million from the sale of one investment and received partial paydowns of $3.7 million from four investments.

Quarterly Conference Call

StoneCastle Financial will host a webcast and conference call on March 1, 2021 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 15, 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 13716278.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.govand 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 December 31, 2020 September 30, 2020 Assets Investments in securities, at fair value (cost: $176,919,203 $ 178,362,337 $ 146,967,849 and $150,661,873 respectively) Receivable for Investments sold 4,860,214 - Interest and dividends 2,111,113 1,498,511 receivable Foreign cash (cost: $1,928,095 and 1,920,752 209,228 $209,344 respectively) Cash 358,061 545,156 Unrealized appreciation on forward 135,069 - currency exchange contracts Prepaid assets 613,320 643,663 Total assets 188,360,866 149,864,407 Liabilities Loan payable 43,000,000 10,000,000 Dividends payable 2,823,128 27,705 Investment advisory fee payable 832,998 654,515 Payable for securities 146,376 - purchased Loan interest payable 70,457 858 Unrealized depreciation on forward 68,578 156,491 currency exchange contracts Options written, at value (premiums received $1,029, 1,625 1,181,250 $1,801,080 respectively) Directors fee payable - 1,851 Accrued expenses payable 628,572 739,136 Total liabilities 47,571,734 12,761,806 Net Assets $ 140,789,132 $ 137,102,601 Net Assets consist of: Common stock at par ($0.001 per $ 6,565 $ 6,564 share) Paid-in-Capital 144,992,526 144,961,221 Total distributable earnings / (4,209,959 ) (7,865,184 ) (loss) Net Assets $ 140,789,132 $ 137,102,601 Net Asset Value Per Share: Common Stock Shares Outstanding 6,565,413 6,563,892 Net asset value per common share $ 21.44 $ 20.89 Market price per share $ 19.25 $ 19.41 Market price discount to net asset -10.21 % -7.08 % value per share

STONECASTLE FINANCIAL CORP.Statement of Operations For The Three For the Three Months Ended Months Ended December 31, September 30, 2020 2020 Investment Income Interest $ 3,274,845 $ 3,346,806 Dividends 1,086,960 830,671 Origination fee income 32,278 18,552 Other Income (service fees and 274,538 85,898 due diligence fees) Total Investment Income 4,668,621 4,281,927 Expenses Investment advisory fees 832,999 654,514 Interest expense 214,920 200,308 Directors' fees 77,621 117,621 Transfer agent, custodian fees 73,159 93,159 and administrator fees Bank administration fees 40,457 40,457 Professional fees 202,760 182,760 ABA marketing and licensing 37,287 37,845 fees Investor relations fees 31,205 41,204 Delaware franchise tax 22,943 22,943 Insurance expense 15,951 20,148 Valuation fees 15,153 40,152 Printing 14,670 17,670 Miscellaneous fees (proxy, rating 43,095 59,371 agency, etc.) Total expenses 1,622,220 1,528,152 Net Investment Income 3,046,401 2,753,775 Realized and Unrealized Gain / (Loss) on Investments and Foreign Currency Transactions Net realized loss on 311,979 (2,745,166 ) investments Net realized loss from forward (1,663,224 ) (674,739 ) foreign currency contracts Net realized gain / (loss) from 36,751 144,713 foreign currency translations Net change in net unrealized 5,137,158 6,880,456 appreciation on investments Net change in unrealized (620,426 ) 332,500 appreciation on written options Net change in unrealized appreciation / (depreciation) on 222,982 (156,838 ) forward currency contracts Net change in unrealized appreciation on foreign currency 10,331 2,945 translations Net realized and unrealized gain/ (loss) on investments, written options, forward foreign currency 3,435,551 3,783,871 contracts and foreign currency translations Net Increase in Net Assets $ 6,481,952 $ 6,537,646 Resulting From Operations

STONECASTLE FINANCIAL CORP.Financial Highlights For The Three Months Ended December 31, 2020 Per Share Operating Performance Net Asset Value, beginning of period $ 20.89 Net investment income^(1) 0.46 Net realized and unrealized gain / (loss) 0.52 on investments Total from investment operations 0.98 Less distributions to shareholders From net investment income (0.43 ) Total distributions (0.43 ) Net asset value, end of period $ 21.44 Per share market value, end of period $ 19.25 Total Investment Return ^(2) Based on market value 1.27 % Based on net asset value 4.80 % Ratios and Supplemental Data Net assets, end of period (in millions) $ 140.8 Ratios (as a percentage to average net assets): Expenses before waivers^(3)(4)* 4.64 % Expenses after waivers^(5)* 4.64 % Net investment income^(6)* 8.72 % Portfolio turnover rate^ ** 17 % Revolving Credit Agreement Total revolving credit agreement $ 43,000 outstanding (000's) Asset coverage per $1,000 for revolving 4,274 credit agreement^(7) (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 4.03%. (4 ) Ratio of expenses before waivers to average managed assets equals 3.82%.(5 ) Ratio of expenses after waivers to average managed assets equals 3.82%. (6 ) Ratio of net investment income to average managed assets equals 7.17%. (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