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 September 30, 2014

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 Market
Value ($)
Long-Term Investments: 126.6%
Preferred Securities: 85.6%
Preferred Stock: 83.8%
Banking: 83.8%
Astoria Financial Coporation Depositary Shares, Each Representing a 1/40th Interest in a Share of 6.50% Non-Cumulative Perpetual Preferred Stock, Series C 20,331 494,857
Bank of America Corporation Depositary Shares, Each Representing a 1/1,000th Interest in a Share of 6.625% Non-Cumulative Preferred Stock, Series I 38,684 993,792
Blue Ridge Bancshares, Inc. Fixed Rate Cumulative Perpetual Preferred Stock Series B, 9% $200,000 194,000
BNCCORP, Inc. Fixed Rate Cumulative Perpetual Preferred Stock Series A, 9% $13,750,000 13,754,580
Chicago Shore Corporation Fixed Rate Cumulative Perpetual Preferred Stock, Series A, 9% $6,400,000 6,340,267
Chicago Shore Corporation Fixed Rate Cumulative Perpetual Preferred Stock, Series B, 9% $150,000 150,200
Citigroup Inc. Depositary Shares Representing a 1/1,000th Interest in a share of 7.125% Non-Cumulative Preferred Stock, Series J 180,222 4,817,334
Community First Bancshares, Inc. Fixed Rate Cumulative Perpetual Preferred Stock, Series A, 9% $7,250,000 7,172,667
Community First Bancshares, Inc. Fixed Rate Cumulative Perpetual Preferred Stock Series B, 9% $400,000 397,333
Community West Bancshares Fixed Rate Cumulative Perpetual Preferred Stock Series A, 9% $1,925,000 1,914,172
EverBank Financial Corp. Depositary Shares, Each Representing a 1/1,000th Interest in a Share of 6.75% Non-Cumulative Preferred Stock, Series A 39,904 987,624
Farmers Capital Bank Corporation Fixed Rate Cumulative Perpetual Preferred Stock Series A, 9% $5,000,000 4,950,000
FFW Corporation Fixed Rate Cumulative Perpetual Preferred Stock Series A, 9% $339,000 327,983
Fidelity Financial Corporation Fixed Rate Cumulative Perpetual Preferred Stock Series A, 9% $3,607,000 3,597,983
Fidelity Financial Corporation Fixed Rate Cumulative Perpetual Preferred Stock Series B, 9% $293,000 292,268
First Community Financial Partners Fixed Rate Cumulative Perpetual Preferred Stock Series B, (5% through 2/14/2015, 9% thereafter) $2,176,000 2,088,960
First Community Financial Partners Fixed Rate Cumulative Perpetual Preferred Stock Series C, 9% $108,000 106,650
First National Corp. Fixed Rate Cumulative Perpetual Preferred Stock Series A, 9% $916,000 902,260
First Priority Financial Corp. Fixed Rate Cumulative Perpetual Preferred Stock Series A, 9% $9,000 8,775
First Republic Bank Depositary Shares, Each Representing a 1/40th Interest in a Share of 6.70% Non-Cumulative Perpetual Preferred Stock, Series A 38,285 974,736
First Republic Bank Depositary Shares, Each Representing a 1/40th Interest in a Share of 6.20% Non-Cumulative Perpetual Preferred Stock, Series B 19,631 486,456
First Republic Bank Depositary Shares, Each Representing a 1/40th Interest in a Share of 5.625% Non-Cumulative Perpetual Preferred Stock, Series C 21,312 486,979
First Republic Bank Depositary Shares, Each Representing a 1/40th Interest in a Share of 7.00% Non-Cumulative Perpetual Preferred Stock, Series E 13,014 343,309
HMN Financial Corp., Inc. Fixed Rate Cumulative Perpetual Preferred Stock, Series A, 9% $5,398,000 5,350,768
HSBC USA Inc. Depositary Shares, Each Representing a 1/40th Interest in a Share of 6.50% Non-Cumulative Preferred Stock, Series H 78,186 1,960,905
HSBC USA Inc. Cumulative Preferred Stock, Series Z, 5.715% 1,600 79,440
Katahdin Bankshares Corp.† Floating Rate Non-Cumulative Preferred Stock, Series D, 8.75% $10,000,000 10,000,000
Marquette National Corporation Fixed Rate Cumulative Perpetual Preferred Stock Series A, 9% $3,514,000 3,452,505
Marquette National Corporation Fixed Rate Cumulative Perpetual Preferred Stock Series B, 9% $175,000 171,938
National Bancshares, Inc. Fixed Rate Cumulative Perpetual Preferred Stock Series T1, 9% $6,500,000 6,353,750
National Bancshares, Inc. Fixed Rate Cumulative Perpetual Preferred Stock Series T2, 9% $1,000,000 977,500
Old Second Bancorp, Inc. Fixed Rate Cumulative Perpetual Preferred Stock Series B, 9% $4,000,000 3,780,000
Old Second Bancorp, Inc. Fixed Rate Cumulative Perpetual Preferred Stock Series B, 9% $1,772,000 1,674,540
Premier Financial Bancorp, Inc. Fixed Rate Cumulative Perpetual Preferred Stock Series A, (5% through 11/15/2014, 9% thereafter) $971,000 964,527
Tennessee Valley Financial Holdings Inc. Fixed Rate Cumulative Perpetual Preferred Stock Series A, 9% $100,000 104,625
Tennessee Valley Financial Holdings Inc. Fixed Rate Cumulative Perpetual Preferred Stock Series B, 9% $49,000 59,964
The Queensborough Company Fixed Rate Cumulative Perpetual Preferred Stock Series A, 9% $250,000 247,500
Subtotal - Preferred Stock 86,961,147
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 1,843,781
Subtotal - Convertible Preferred Stock 1,843,781
Total Preferred Securities 88,804,928
Debt Securities: 21.8%
Banking: 21.8%
MMCapS SM Funding I, Ltd./MMCapS SM Funding I, Inc. Fixed Rate Mezzanine Notes, Due 6/15/2030, 8.39%, 144A(2) $8,489,297 6,229,022
Preferred Term Securities, Ltd./Preferred Term Securities, Inc. Fixed Rate Mezzanine Notes, Due 9/15/2030, 9.74%, 144A(2) $16,652,278 16,402,493
Total Debt Securities 22,631,515
Trust Preferred Securities: 15.6%
Banking: 15.6%
Countrywide Capital Trust IV 6.75% Trust Preferred Securities 38,562 982,945
Deutsche Bank Contingent Capital Trust V 8.05% Trust Preferred Securities 139,196 3,962,911
JPMorgan Chase Capital Trust XXIX 6.70% Capital Securities, Series CC 113,818 2,909,188
Merrill Lynch Preferred Capital Trust III 7.00% Originated Preferred Securities 28,284 724,070
Merrill Lynch Preferred Capital Trust IV 7.12% Originated Preferred Securities 38,264 983,385
Merrill Lynch Preferred Capital Trust V 7.28% Originated Preferred Securities 76,206 1,965,353
Morgan Stanley Capital Trust VII 6.60% Capital Securities 78,081 1,968,422
Morgan Stanley Capital Trust VIII 6.45% Capital Securities 78,069 1,964,216
PrivateBancorp Capital Trust IV 10.00% Trust Preferred Securities 27,856 738,184
Total Trust Preferred Securities 16,198,674
Equity Securities: 3.6%
Banking: 3.6%
Happy Bancshares, Inc.(3) Common stock 44,000 1,001,000
Middleburg Financial Corporation Common stock 14,220 252,263
Pioneer Bancshares, Inc.(3) Common stock 83,400 1,501,200
Priam Capital Fund I, L.P.†(3) Limited partnership (Common shares) $1,000,000 1,000,000
Total Equity Securities 3,754,463
Total Long Term Investments (Cost $132,697,966) 131,389,580
Short-Term Investments: 6.0%
Morgan Stanley Institutional Liquidity Funds - Treasury Portfolio Institutional Share Class 6,239,710 6,239,710
Total Short-Term Investments (Cost $6,239,710) 6,239,710
Total Investments (Cost $138,937,676) (4)(5)†: 132.6% 137,389,580
Other assets and liabilities, net: (32.6)%(6) (33,876,420)
Total Net Assets: 100.0% $ 103,752,870

(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) Security is exempt from registration under Rule 144A of the Securities Act of 1933.
(3) Currently non-income producing security.
(4) Cost values reflect accretion of original issue discount or market discount, and amortization of premium.
(5) Investments are income producing assets unless otherwise noted by footnote (3).
(6) Includes $38 million in bank loan from Texas Capital Bank.
† As of September 30, 2014, the cost basis of investment securities owned was substantially identical for both book and tax purposes.
  Gross unrealized appreciation of investments was $739,454 and gross unrealized depreciation of investments was ($2,047,840),
  resulting in net unrealized depreciation of ($1,308,386).


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

Filing Description Date Filed Size View
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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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