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 June 30, 2014

These holdings reflect the portfolio of the Company as of a given calendar month-end date. This presentation is for informational purposes only and should not be substituted for fiscal quarter-end portfolio holdings filed with the Securities and Exchange Commission. The Company's portfolio is actively managed and its composition will vary. Portfolio holdings and allocations are as of the date noted and subject to change.

Company Investment # of Shares/Par Amount Market
Value ($)
Long-Term Investments: 115.20%
Preferred Securities: 72.5%
Preferred Stock: 70.7%
Banking: 70.7%
Blue Ridge Bancshares, Inc. Fixed Rate Cumulative Perpetual Preferred Stock Series B, 9% 200 193,000
BNCCORP, Inc. Fixed Rate Cumulative Perpetual Preferred Stock Series A, 9% 13,750 13,759,531
Chicago Shore Corporation Fixed Rate Cumulative Perpetual Preferred Stock Series A, (5% through 8/14/2014, 9% thereafter) 6,400 6,340,267
Chicago Shore Corporation Fixed Rate Cumulative Perpetual Preferred Stock Series B, 9% 150 150,200
Citigroup Inc. Depositary Shares Representing a 1/1,000th Interest in a share of 7.125% Non-Cumulative Preferred Stock, Series J 40 1,105,960
Community First Bancshares, Inc. Fixed Rate Cumulative Perpetual Preferred Stock Series A, (5% through 5/14/2014, 9% thereafter) 7,250 7,172,667
Community First Bancshares, Inc. Fixed Rate Cumulative Perpetual Preferred Stock Series B, 9% 400 397,333
Community West Bancshares Fixed Rate Cumulative Perpetual Preferred Stock Series A, 9% 1,925 1,905,750
Farmers Capital Bank Corporation Fixed Rate Cumulative Perpetual Preferred Stock Series A, 9% 5,000 4,950,000
FFW Corporation Fixed Rate Cumulative Perpetual Preferred Stock Series A, 9% 339 327,983
Fidelity Financial Corporation Fixed Rate Cumulative Perpetual Preferred Stock Series A, 9% 3,607 3,597,983
Fidelity Financial Corporation Fixed Rate Cumulative Perpetual Preferred Stock Series B, 9% 293 292,268
First Community Financial Partners Fixed Rate Cumulative Perpetual Preferred Stock Series B, (5% through 2/14/2015, 9% thereafter) 2,176 2,088,960
First Community Financial Partners Fixed Rate Cumulative Perpetual Preferred Stock Series C, 9% 108 106,650
First National Corp. Fixed Rate Cumulative Perpetual Preferred Stock Series A, 9% 916 902,260
First Priority Financial Corp. Fixed Rate Cumulative Perpetual Preferred Stock Series A, 9% 9 8,775
HMN Financial Corp., Inc. Fixed Rate Cumulative Perpetual Preferred Stock, Series A, 9% 5,000 4,956,250
Katahdin Bankshares Corp.† Floating Rate Non-Cumulative Preferred Stock, Series D, 8.75% 4,000 10,000,000
Marquette National Corporation Fixed Rate Cumulative Perpetual Preferred Stock Series A, 9% 3,514 3,426,150
Marquette National Corporation Fixed Rate Cumulative Perpetual Preferred Stock Series B, 9% 175 171,938
National Bancshares, Inc. Fixed Rate Cumulative Perpetual Preferred Stock Series T1, 9% 3,250 3,176,875
National Bancshares, Inc. Fixed Rate Cumulative Perpetual Preferred Stock Series T2, 9% 1,000 977,500
Old Second Bancorp, Inc. Fixed Rate Cumulative Perpetual Preferred Stock Series B, 9% 4,000 3,760,000
Old Second Bancorp, Inc. Fixed Rate Cumulative Perpetual Preferred Stock Series B, 9% 1,772 1,665,680
Premier Financial Bancorp, Inc. Fixed Rate Cumulative Perpetual Preferred Stock Series A, (5% through 11/15/2014, 9% thereafter) 2,331 2,280,495
The Queensborough Company Fixed Rate Cumulative Perpetual Preferred Stock Series A, 9% 250 247,500
Tennessee Valley Financial Holdings Inc. Fixed Rate Cumulative Perpetual Preferred Stock Series A, 9% 100 104,125
Tennessee Valley Financial Holdings Inc. Fixed Rate Cumulative Perpetual Preferred Stock Series B, 9% 49 59,719
Subtotal - Preferred Stock 74,125,819
Convertible Preferred Stock: 1.8%
Banking: 1.8%
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 1,941,133
Subtotal - Convertible Preferred Stock 1,941,133
Total Preferred Securities (Cost $76,979,063) 76,066,952
Debt Securities: 22.9%
Banking: 22.9%
AmFirst Financial Services Inc. Senior Subordinated Debt, (7.70% through 11/14/2014, 13.8% thereafter), Due 8/21/2039 1,276,000 1,262,443
AmFirst Financial Services Inc. Senior Subordinated Debt, 13.80%, Due 8/21/2039 149,000 147,417
MMCapS SM Funding I, Ltd./MMCapS SM Funding I, Inc. Fixed Rate Mezzanine Notes, Due 6/15/2030, 8.39%, 144A(1) 8,597,901 6,229,022
Preferred Term Securities, Ltd./Preferred Term Securities, Inc. Fixed Rate Mezzanine Notes, Due 9/15/2030, 9.74%, 144A(1) 16,727,925 16,351,546
Total Debt Securities (Cost $23,655,489) 23,990,428
Trust Preferred Securities: 15.8%
Banking: 15.8%
Countrywide Capital Trust IV 6.75% Trust Preferred Securities 38,562 984,797
Deutsche Bank Contingent Capital Trust V 8.05% Trust Preferred Securities 139,196 3,950,383
JPMorgan Chase Capital Trust XXIX 6.70% Capital Securities, Series CC 113,818 2,959,268
Merrill Lynch Preferred Capital Trust III 7.00% Originated Preferred Securities 38,566 994,231
Merrill Lynch Preferred Capital Trust IV 7.12% Originated Preferred Securities 38,264 996,777
Merrill Lynch Preferred Capital Trust V 7.28% Originated Preferred Securities 76,206 1,976,022
Morgan Stanley Capital Trust VII 6.60% Capital Securities 78,081 1,976,230
Morgan Stanley Capital Trust VIII 6.45% Capital Securities 78,069 1,968,041
PrivateBancorp Capital Trust IV 10.00% Trust Preferred Securities 27,856 739,855
Total Trust Preferred Securities (Cost $16,766,791) 16,545,604
Equity Securities: 4.0%
Banking: 4.0%
Happy Bancshares, Inc.† Common stock 44,000 1,001,000
Middleburg Financial Corporation Common stock 14,220 284,400
NB&T Financial Group Common stock 18,701 374,020
Pioneer Bancshares, Inc.† Common stock 83,400 1,501,200
Priam Capital Fund I, L.P.† Limited partnership (Common shares) 1,000,000 1,000,000
Total Equity Securities (Cost $4,120,850) 4,160,620
Total Long Term Investments (Cost $121,522,193) 120,763,604
Short-Term Investments: 5.2%
Morgan Stanley Institutional Liquidity Funds - Treasury Portfolio Institutional Share Class 5,420,144 5,420,144
Total Short-Term Investments (Cost $5,420,144) 5,420,144
Total Investments (Cost $126,942,337) (2)(3): 120.4% 126,183,748
Other assets and liabilities, net: (20.4%) (21,348,591)
Total Net Assets: 100.0% 104,835,157

† Level 3 investment. See Note 2.
(1) Security is exempt from registration under Rule 144A of the Securities Act of 1933.
(2) Cost values reflect accretion of market discount.
(3) All Investments are income producing assets.


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

**Similar to LipoScience Press Release: with filter and expandable items**

SEC Filings

Filing Description Date Filed Size View
4 BANX Report Jul 23, 2013 30kb .... ...

Annual Reports

Title Type Size
2013 Annual Report .... 30kb ...

Quarterly Results

2013

*********Quarterly files****SImilar to LipoScience*****

2012

*********Quarterly files*********