Investors

Our primary objective is to provide our investors with current income and capital appreciation primarily through investment in U.S. community banks


The primary investment objective of StoneCastle Financial Corp. (Nasdaq: BANX) is current income. The secondary objective is capital appreciation.


Philosophy: We are a disciplined investor focused on investing in U.S. community banks. StoneCastle's investment philosophy is to minimize the risk of loss of principal while capitalizing on opportunity in the community banking sector.

As a value investor, we seek to invest in companies that have demonstrated a long history of generating significant free cash flow, and at prices well below long-term intrinsic value. We seek investments where there is a significantly higher probability of upside potential than downside risk.

Preservation of Capital: We expect a significant portion of our investments to be made in the form of income generating preferred stock with warrants or equity conversion rights. We therefore seek to minimize downside risk by investing in banks that exhibit the potential for long-term stability. We focus on minimizing the risk of losses by using StoneCastle's disciplined and proven underwriting process when providing capital to community banks. We target:

    • long-term investments in established companies;

    • disciplined credit underwriting processes and positive regulatory relationships;

    • companies with stable balance sheets, lending in attractive markets with solid fundamentals; and

    • experienced management teams with exceptional track records and ties to their local markets.


Schedule of Investments

As of March 31, 2015

StoneCastle Financial Corp. lists the breakdown of portfolio holdings on a quarterly basis as reflected in the Company's public filings with the U.S. Securities and Exchange Commission. More information about StoneCastle Financial can be found in the investor relations portion of our website or by visiting, www.SEC.gov.

This presentation is for informational purposes only.

Company(1) Investment # of Shares/Par Amount($)(2) Fair
Value ($)
Senior Term Loan: 9.3%
Banking: 9.3%
Citizens Bancshares Co. Senior Term Loan, 8.75%, due December 31, 2024

$

13,250,000

13,250,000

Total Senior Term Loan(Cost $13,250,000)

13,250,000

Debt Securities: 15.3%
Banking: 15.3%
Cornerstone Community Bancorp Subordinated Debenture, 8.80%, Due 2025

$

5,000,000

5,000,000

Freeport Bancshares, Inc. Subordinated Debenture, 8.875%, Due 2025

$

3,150,000

3,150,000

MidWest Community Financial Corp. Subordinated Debenture, 8.50%, Due 2025

$

5,000,000

5,000,000

MMCapS SM Funding I, Ltd./MMCapS SM Funding I, Inc. Fixed Rate Mezzanine Notes, Due 2031, 8.04%, 144A(3)

$

10,588,037

8,285,139

Preferred CPO Limited Fixed Rate Senior Subordinated Notes,Class B, 10.026%, Due 2030

$

435,635

450,556

Total Debt Securities(Cost $21,622,278)

21,885,695

Trust Preferred Securities: 35.3%
Banking: 35.3%
Amboy Capital Trust I 9.00% Trust Preferred Security, Private Placement, 144A(3)

$

15,500,000

15,500,000

Capital City TPS LLC Series 2015-1 Capital City TPS 2015-1 9.74%, Note, 144A(3)

$

1,924,289

1,959,389

Central Trust Company Capital Trust I. Junior Subordinated Debt, 10.25%, Due July 25, 2031

$

2,500,000

2,553,125

Countrywide Capital Trust IV 6.75% Trust Preferred Securities

38,562

985,645

Deutsche Bank Contingent Capital Trust V 8.05% Trust Preferred Securities

57,444

1,660,131

First Alliance Capital Trust I Junior Subordinated Debt, 10.25%, Due July 25, 2031

$

6,500,000

6,624,150

JPMorgan Chase Capital Trust XXIX 6.70% Capital Securities, Series CC

20,350

517,297

M&T Capital Trust II 8.277% Trust Preferred Security

$

1,000,000

1,016,100

M&T TPS LLC Series 2015-1 M&T TPS 2015-1 9.74%, Note, 144A(3)

$

2,565,718

2,612,530

Mercantil TPS LLC Series 2015-1 Mercantil TPS 2015-1 9.74%, Note, 144A(3)

$

4,810,722

4,898,494

Merrill Lynch Preferred Capital Trust III 7.00% Originated Preferred Securities

23,630

606,582

Merrill Lynch Preferred Capital Trust IV 7.12% Originated Preferred Securities

38,264

988,742

Merrill Lynch Preferred Capital Trust V 7.28% Originated Preferred Securities

76,206

1,972,973

Morgan Stanley Capital Trust VIII 6.45% Capital Securities

51,578

1,319,365

NB of Indianapolis TPS LLC Series 2015-1 NB of Indianapolis TPS 2015-1 9.74%, Note, 144A(3)

$

4,329,650

4,408,645

PrivateBancorp Capital Trust IV 10.00% Trust Preferred Securities

13,322

357,429

Total Trust Preferred Securities(Cost $50,485,392)

50,266,570

Preferred Stock: 49.1%
Banking: 49.1%
Astoria Financial Coporation Depositary Shares, Each Representing a 1/40th Interest in a Share of 6.50% Non-Cumulative Perpetual Preferred Stock, Series C

407

10,313

Banc of California Inc. Depositary Shares, Each Representing a 1/40th Interest in a share of 7.375% Non-Cumulative Perpetual Preferred Stock, Series D

40,000

1,000,000

Blue Ridge Bancshares, Inc. Fixed Rate Cumulative Perpetual Preferred Stock Series B, 9%

$

200,000

200,000

BNCCORP, Inc. Fixed Rate Cumulative Perpetual Preferred Stock Series A, 9%

$

13,750,000

13,754,584

Chicago Shore Corporation Fixed Rate Cumulative Perpetual Preferred Stock, Series A, 9%

$

6,400,000

6,400,000

Chicago Shore Corporation Fixed Rate Cumulative Perpetual Preferred Stock, Series B, 9%

$

150,000

150,000

Citigroup Inc. Depositary Shares Representing a 1/1,000th Interest in a share of 7.125% Non-Cumulative Preferred Stock, Series J

180,222

4,981,336

Colony Bankcorp, Inc. Fixed Rate Cumulative Perpetual Preferred Stock, Series A, 9%

$

3,661,000

3,661,000

Community West Bancshares Fixed Rate Cumulative Perpetual Preferred Stock Series A, 9%

$

1,481,000

1,481,000

EverBank Financial Corp. Depositary Shares, Each Representing a 1/1,000th Interest in a Share of 6.75% Non-Cumulative Preferred Stock, Series A

25,263

636,345

Farmers Capital Bank Corporation Fixed Rate Cumulative Perpetual Preferred Stock Series A, 9%

$

2,500,000

2,500,000

FFW Corporation Fixed Rate Cumulative Perpetual Preferred Stock Series A, 9%

$

139,000

139,000

Fidelity Financial Corporation Fixed Rate Cumulative Perpetual Preferred Stock Series A, 9%

$

2,579,000

2,581,149

Fidelity Financial Corporation Fixed Rate Cumulative Perpetual Preferred Stock Series B, 9%

$

210,000

210,175

First National Corp. Fixed Rate Cumulative Perpetual Preferred Stock Series A, 9%

$

1,016,000

1,005,840

First Priority Financial Corp. Fixed Rate Cumulative Perpetual Preferred Stock Series A, 9%

$

709,000

709,000

First Republic Bank Depositary Shares, Each Representing a 1/40th Interest in a Share of 6.20% Non-Cumulative Perpetual Preferred Stock, Series B

19,631

505,302

First Republic Bank Depositary Shares, Each Representing a 1/40th Interest in a Share of 5.625% Non-Cumulative Perpetual Preferred Stock, Series C

21,312

534,505

First Republic Bank Depositary Shares, Each Representing a 1/40th Interest in a Share of 7.00% Non-Cumulative Perpetual Preferred Stock, Series E

10,909

303,380

First United Corporation Fixed Rate Cumulative Perpetual Preferred Stock, Series A, 9%

$

9,000,000

9,018,000

HSBC USA Inc. Depositary Shares, Each Representing a 1/40th Interest in a Share of 6.50% Non-Cumulative Preferred Stock, Series H

45,035

1,142,988

Katahdin Bankshares Corp. Floating Rate Non-Cumulative Preferred Stock, Series D, 8.75%

$

10,000,000

10,000,000

Old Second Bancorp, Inc. Fixed Rate Cumulative Perpetual Preferred Stock Series B, 9%

$

8,670,000

8,670,000

Tennessee Valley Financial Holdings Inc. Fixed Rate Cumulative Perpetual Preferred Stock Series A, 9%

$

100,000

105,550

Tennessee Valley Financial Holdings Inc. Fixed Rate Cumulative Perpetual Preferred Stock Series B, 9%

$

49,000

60,944

The Queensborough Company Fixed Rate Cumulative Perpetual Preferred Stock Series A, 9%

$

250,000

247,500

Total Preferred Stock(Cost $70,325,894)

70,007,911

Convertible Preferred Stock: 3.6%
Banking: 3.6%
First Citizens Banc Corp Depositary Shares Representing a 1/40th Interest in a 6.50% Noncumulative Redeemable Convertible Perpetual Preferred Share, Series B

59,001

2,129,936

SB Financial Group Depositary Shares, Each Representing a 1/100th Interest in a 6.50% Non-Cumulative Convertible Perpetual Preferred Share, Series A

250,000

2,975,000

Total Convertible Preferred Stock(Cost $3,975,025)

5,104,936

Equity Securities: 4.8%
Banking: 4.8%
Citizens & Northern Corporation Common stock

12,820

258,709

Happy Bancshares, Inc.(4) Common stock, Private Placement, 144A(3)

44,000

979,000

Medallion Financial Corporation Common stock

294,754

2,729,422

Middleburg Financial Corporation Common stock

14,220

260,226

Pioneer Bancshares, Inc.(4) Common stock

83,400

1,599,612

Priam Capital Fund I, L.P.(4) Limited partnership

$

50,000

1,000,000

Total Equity Securities(Cost $7,140,949)

6,826,986

Total Long Term Investments(Cost $166,799,538)

167,342,080

Short-Term Investments: 0.7%
Morgan Stanley Institutional Liquidity Funds - Treasury Portfolio Institutional Share Class

1,004,063

1,004,063

Total Short-Term Investments (Cost $1,004,063)

1,004,063

Total Investments (Cost $167,803,601) (5)(6)*†: 118.1%

168,346,143

Other assets and liabilities, net: (18.1)%(7)

(25,844,578)

Total Net Assets: 100.0%

$ 142,501,565

(1) We do not "control" and are not an "affiliate" of any of our portfolio companies, each as defined in the Investment Company Act
  (the "1940 Act").
(2) ($) represents security position traded in par amount.
(3) Security is exempt from registration under Rule 144A of the Securities Act of 1933.
(4) Currently non-income producing security.
(5) Cost values reflect accretion of original issue discount or market discount, and amortization of premium.
(6) Investments are income producing assets unless otherwise noted by footnote (4).
(7) Includes $33 million in bank loan from Texas Capital Bank.
* Cash and cash equivalents of $8,568,826 on the Statement of Assets and Liabilities include $1,004,063 of short term
  investments.
† As of March 31, 2015, the cost basis of investment securities owned was substantially identical for both book
  and tax purposes. Gross unrealized appreciation of investments was $1,613,453 and gross unrealized depreciation was$1,070,911, resulting in net unrealized appreciation of $542,542.


Portfolio

Our board of directors provides the overall supervision and review of our affairs. Management of our portfolio will be the responsibility of our advisor's, StoneCastle Asset Management, LLC (our "Advisor"), investment committee. Messrs. Siegel and Shilowitz will be responsible for negotiating, structuring and managing of our investments. Our Advisor's investment professionals have significant experience sourcing, analyzing, investing and managing investments in community banks.

We expect to create and maintain an investment portfolio of securities focused on the bank market, with an emphasis on community banks, through investment in numerous issuers differentiated by asset sizes, business models and geographies to create a more stable, long-term portfolio of assets. Our Advisor will monitor our portfolio companies and market concentrations and may adjust its underwriting criteria based on market conditions and portfolio concentrations. Our Advisor's monitoring operations will include sensitivity analyses to determine the effects of changes in market conditions on our asset portfolio. These analyses may include, among other things, simulations of changes in interest rates, changes in economic activity and other events that would affect the forecasted performance of our assets.

Press Releases

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SEC Filings

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Annual Reports

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2013 Annual Report .... 30kb ...

Quarterly Results

2013

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2012

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