GlobeNewswire Inc | May 13, 2021 04:20PM EDT

May 13, 2021

DENVER, May 13, 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 first fiscal quarter ended March 31, 2021.

First Quarter 2021 Investment Highlights:

-- Invested approximately $17.5 million in six investments -- Realized proceeds of $4.7 million from the maturity of one investment -- Realized proceeds from partial paydowns of $4.3 million from six investments

Subsequent to the end of the quarter, the Company invested approximately $8.0 million in two investments and received partial paydowns of $2.6 million.

The estimated annualized yield generated by the invested portfolio as of March 31, 2021(excluding cash and cash equivalents) was approximately 9.32%.

First Quarter 2021 Financial Results

Net investment income was $2,603,278 or $0.40 per share, comprised of $4,125,528 gross income and $1,522,250 of expenses. Net Assets at quarter end were $142,070,129. The Companys Net Asset Value was $21.62 per share, up $0.18 from the prior quarter.

In the first quarter, the Company paid a cash distribution of $0.38 per share. The distribution was paid on March 25, 2021 to shareholders of record at the close of business on March 18, 2021.

The Company had $39.0 million outstanding on its $62.0 million credit facility at the quarter end, which represents approximately 21% 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 March 31, 2021, the Company had total assets of $182,525,474 consisting of total investments of $178,022,813, cash and other assets of $4,502,661.

During the quarter, the Company invested a total of $17.5 million in six bank-related regulatory capital investments. The Company received total proceeds of $9.0 million, consisting of a term loan maturity of $4.7 million, and $4.3 million in partial paydowns from six investments.

Quarterly Conference Call

StoneCastle Financial will host a webcast and conference call on May 13, 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 May 27, 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 13718352.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.

CONTACT:

Investor Contact: Julie Muraco212-468-5441

STONECASTLE FINANCIAL CORP.Statement of Assets and Liabilities (unaudited) March 31, 2021 December 31, 2020Assets Investments in securities, at fair value (cost: $177,537,308 and $ 178,022,813 $ 178,362,337 $176,919,203 respectively) Receivable for Investments sold - 4,860,214 Interest and dividends receivable 2,335,288 2,111,113 Foreign cash (cost: $1,300,817 and 1,302,222 1,920,752 $1,928,095 respectively) Cash 63,110 358,061 Unrealized appreciation on forward 204,752 135,069 currency exchange contracts Prepaid assets 597,289 613,320 Total assets 182,525,474 188,360,866 Liabilities Loan payable 39,000,000 43,000,000 Dividends payable - 2,823,128 Investment advisory fee payable 787,610 832,998 Payable for securities purchased - 146,376 Loan interest payable 35,982 70,457 Unrealized depreciation on forward - 68,578 currency exchange contracts Options written, at value (premiums - 1,625 received $0 and $1,029 respectively) Accrued expenses payable 631,753 628,572 Total liabilities 40,455,345 47,571,734 Net Assets $ 142,070,129 $ 140,789,132 Net Assets consist of: Common stock at par ($0.001 per $ 6,572 $ 6,565 share) Paid-in-Capital 145,128,467 144,992,526 Total distributable earnings / (3,064,910 ) (4,209,959 ) (loss) Net Assets $ 142,070,129 $ 140,789,132 Net Asset Value Per Share: Common Stock Shares Outstanding 6,572,212 6,565,413 Net asset value per common share $ 21.62 $ 21.44 Market price per share $ 19.79 $ 19.25 Market price discount to net asset -8.46 % -10.21 %value per share

STONECASTLE FINANCIAL CORP.Statement of Operations (unaudited) For The Three For The Three Months Months Ended March 31, Ended December 2021 31, 2020Investment Income Interest $ 3,299,156 $ 3,274,845 Dividends 749,851 1,086,960 Origination fee income 31,977 32,278 Other Income (service fees and due 44,544 274,538 diligence fees) Total Investment Income 4,125,528 4,668,621 Expenses Investment advisory fees 787,610 832,999 Interest expense 295,817 214,920 Directors' fees 84,854 77,621 Transfer agent, custodian fees and 71,569 73,159 administrator fees Bank administration fees 39,578 40,457 Professional fees 94,930 202,760 ABA marketing and licensing fees 32,955 37,287 Investor relations fees 30,526 31,205 Delaware franchise tax 22,444 22,943 Insurance expense 17,753 15,951 Valuation fees 14,823 15,153 Printing 7,500 14,670 Miscellaneous fees (proxy, rating 21,891 43,095 agency, etc.) Total expenses 1,522,250 1,622,220 Net Investment Income 2,603,278 3,046,401 Realized and Unrealized Gain / (Loss) on Investments and Foreign Currency Transactions Net realized gain on investments 91,458 311,979 Net realized gain / (loss) from forward 1,675,729 (1,663,224 ) foreign currency contracts Net realized gain from foreign currency 134,076 36,751 translations Net change in net unrealized appreciation / (depreciation) on (957,630 ) 5,137,158 investments Net change in unrealized appreciation / 596 (620,426 ) (depreciation) on written options Net change in unrealized appreciation on 138,261 222,982 forward currency contracts Net change in unrealized appreciation / (depreciation) on foreign currency (44,538 ) 10,331 translations Net realized and unrealized gain/(loss) on investments, written options, forward 1,037,952 3,435,551 foreign currency contracts and foreign currency translations Net Increase in Net Assets Resulting $ 3,641,230 $ 6,481,952 From Operations

STONECASTLE FINANCIAL CORP.Financial Highlights (unaudited) For The Three Months Ended March 31, 2021 Per Share Operating Performance Net Asset Value, beginning of period $ 21.44 Net investment income^(1) 0.40 Net realized and unrealized gain / 0.16 (loss) on investments Total from investment operations 0.56 Less distributions to shareholders From net investment income (0.38 ) Total distributions (0.38 ) Net asset value, end of period $ 21.62 Per share market value, end of period $ 19.79 Total Investment Return ^(2) Based on market value 4.80 % Based on net asset value 2.79 % Ratios and Supplemental Data Net assets, end of period (in $ 142.1 millions) Ratios (as a percentage to average net assets): Expenses before waivers^(3)(4)* 4.37 % Expenses after waivers^(5)* 4.37 % Net investment income^(6)* 7.47 % Portfolio turnover rate^ ** 5 % Revolving Credit Agreement Total revolving credit agreement $ 39,000 outstanding (000's) Asset coverage per $1,000 for revolving 4,643 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 3.52%.(4 ) Ratio of expenses before waivers to average managed assets equals 3.33%.(5 ) Ratio of expenses after waivers to average managed assets equals 3.33%.(6 ) Ratio of net investment income to average managed assets equals 5.69%.(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