NEW YORK, Feb. 28, 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 fourth fiscal quarter ended December 31, 2016. 

Fourth Quarter 2016 Investment Highlights:

• Invested $23.2 million in 5 investments
  
  
• Received repayment of $3.6 million from 1 investment

Investment Activity in the Fourth Quarter 2016 Included:

• $13.0 million in Baraboo Bancorporation Inc., Senior Term Loan, Fixed Rate 10.50%, December 28, 2026   
   
• $5.0 million in Midwest Regional Bank, Subordinated Term Loan, Fixed Rate 8.625%, January 1, 2027
  
  
• $3.0 million in Halbur Bancshares, Inc., Subordinated Term Loan, Fixed Rate 8.75%, October 1, 2026

A complete listing of investments as of the end of the quarter can be found in the 2016 annual report and on the Company's website at www.StoneCastle-Financial.com.

The estimated annualized yield generated by the invested portfolio as of December 31, 2016 (excluding cash and cash equivalents) was approximately 9.08%.

Fourth Quarter 2016 Financial Results

Net investment income was $2,518,887 or $0.39 per share, comprised of $4,213,439 in gross income and $1,694,552 of net expenses.  There were no net realized gains or losses in the quarter.

Net Assets at quarter end were $138,555,206 and the Company's Net Asset Value was $21.22 per share. 

The Company declared a fourth quarter cash distribution of $0.37 per share.  The distribution was paid on January 3, 2017 to shareholders of record at the close of business on December 22, 2016.   

The Company had $61.5 million outstanding on its $70 million credit facility at the quarter end, which represents approximately 29.9% 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 December 31, 2016, the Company had total assets of $205,938,998 consisting of total investments of $197,481,652, cash of $3,765,463 and other assets of $4,691,883.  Other assets include interest and dividends receivable of $3,890,480, and prepaid assets of $801,403.

During the quarter, the Company deployed $23.2 million in three Term Loans and two Fixed Rate Cumulative Perpetual Preferred Stock investments.  The Company received one repayment totaling $3.6 million.

Quarterly Conference Call

StoneCastle Financial will host a webcast and conference call on February 28, 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 March 14, 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 13651988. 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
				December 31, 2016				September 30, 2016
	Assets
		Investments in securities, at fair value (cost: $201,215,633 and $179,935,988 respectively)		$	197,481,652			$	176,695,072
		Cash (1)			3,765,463				3,517,844
		Interest and dividends receivable			3,890,480				3,460,123
		Prepaid assets			801,403				662,710
		Total assets			205,938,998				184,335,749
	Liabilities
		Loan payable			61,500,000				35,250,000
		Dividends payable			2,415,399				73,927
		Payable for securities purchased			2,252,539				9,054,000
		Investment advisory fee payable			790,907				810,876
		Loan interest payable			70,325				3,810
		Directors fee payable			13,326				14,789
		Accrued expenses payable			341,296				257,482
		Total liabilities			67,383,792				45,464,884
	Net Assets			$	138,555,206			$	138,870,865
	Net Assets consist of:
		Common stock at par ($0.001 per share)		$	6,528			$	6,524
		Paid-in-capital			144,588,229				144,514,314
		Accumulated net investment loss			(1,625,496	)			(1,728,983	)
		Accumulated net realized loss on investments			(680,074	)			(680,074	)
		Net unrealized depreciation on investments			(3,733,981	)			(3,240,916	)
		Net Assets		$	138,555,206			$	138,870,865
	Net Asset Value Per Share:
	Common Stock Shares Outstanding				6,528,105				6,524,012
	Net asset value per common share			$	21.22			$	21.29
	Market price per share			$	18.69			$	18.67
	Market price discount to net asset value per share				-11.92	%			-12.31	%
	(1) Includes $3,500,000 of restricted cash held in a segregated account at Texas Capital Bank to cover collateral requirements.

 

	STONECASTLE FINANCIAL CORP.
	Statement of Operations
									For The Year Ended December 31,  2016				For the Three Months Ended December 31, 2016
	Investment Income
		Interest							$	10,899,369			$	2,907,104
		Dividends								5,690,604				1,151,098
		Origination fee income								138,954				61,737
		Other Income								306,013				93,500
		Total Investment Income								17,034,940				4,213,439
	Expenses
		Investment advisory fees								3,416,253				905,907
		Interest expense								1,777,067				483,078
		Transfer agent, custodian fees and administrator fees								289,342				79,889
		Professional fees								257,613				23,024
		ABA marketing and licensing fees								250,000				61,568
		Bank fees								214,834				55,083
		Directors' fees								168,058				42,020
		Investor relations fees								121,330				28,240
		Insurance expense								90,000				22,641
		Printing								75,000				2,082
		Valuation fees								63,012				20,854
		Due diligence expense								63,000				38,000
		Miscellaneous fees (proxy, printing, rating agency, etc.)								189,186				47,166
		Total expenses before waiver								6,974,695				1,809,552
		Less: Advisory fee waiver								(115,000	)			(115,000	)
		Net expenses after waiver								6,859,695				1,694,552
		Net Investment Income							$	10,175,245			$	2,518,887
	Realized and Unrealized Gain / (Loss) on Investments
		Net realized gain on investments							$	327,807			$	-
		Net change in unrealized  depreciation  on investments								(3,489,006	)			(493,066	)
		Net realized and unrealized gain / (loss) on investments								(3,161,199	)			(493,066	)
		Net Increase in Net Assets Resulting From Operations							$	7,014,046			$	2,025,821

 

		STONECASTLE FINANCIAL CORP.
		Financial Highlights
				For The Three Months Ended December 31, 2016
		Per Share Operating Performance
		Net Asset Value, beginning of period		$	21.29
		Net investment income(1)			0.39
		Net realized and unrealized loss on investments(1)			(0.09	)
		Total from investment operations			0.30
		Less distributions to shareholders
		From net investment income			(0.37	)
		Total distributions			(0.37	)
		Net asset value, end of period		$	21.22
		Per share market value, end of period		$	18.69
		Total Investment Return (2)
		Based on market value			2.14	%
		Based on net asset value			2.71	%
		Ratios and Supplemental Data
		Net assets, end of period (in millions)		$	138.6
		Ratios (as a percentage to average net assets):
		Expenses before waivers(3)(4)*			5.19	%
		Expenses after waivers(5)*			4.86	%
		Net investment income(6)*			7.22	%
		Portfolio turnover rate **			1	%
		Revolving Credit Agreement
		Total revolving credit agreement outstanding (000's)		$	61,500
		Asset coverage per $1,000 for revolving credit agreement(7)			3,253
(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 3.80%.
(4	)	Ratio of expenses before waivers to average managed assets equals 3.69%.
(5	)	Ratio of expenses after waivers to average managed assets equals 3.45%.
(6	)	Ratio of net investment income to average managed assets equals 5.14%.
(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

Investor Contact:
Julie Muraco
347-887-0324