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, 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($)(2) Fair
Value ($)
Term Loan: 16.9%
Banking: 16.9%
Citizens Bancshares Co. Senior Term Loan, 8.75%, Due December 21, 2024

$

13,250,000

13,250,000

First Citizens Bancshares, Inc. Subordinated Term Loan, 8.625%, Due June 30, 2025

$

10,000,000

10,000,000

Williams Holding Company, Inc. Subordinated Term Loan, 8.75%,, Due June 30, 2025

$

1,000,000

1,000,000

Total Term Loan(Cost $24,250,000)

24,250,000

Debt Securities: 17.6%
Banking: 17.6%
Cornerstone Community Bancorp Subordinated Debenture, 8.80%, Due Febrary 27, 2025

$

5,000,000

5,000,000

Country Bank Holding Company Inc. Subordinated Debenture, 8.50%, Due May 15, 2025

$

6,000,000

6,000,000

Freeport Bancshares, Inc. Subordinated Debenture, 8.875%, Due Febrary 17, 2025

$

3,150,000

3,150,000

MidWest Community Financial Corp. Subordinated Debenture, 8.50%, Due November 24, 2024

$

3,500,000

3,500,000

MidWest Community Financial Corp. Subordinated Debenture, 8.50%, Due March 3, 2025

$

1,500,000

1,500,000

MMCapS SM Funding I, Ltd./MMCapS SM Funding I, Inc. Fixed Rate Mezzanine Notes, 8.04%, Due June 8, 2031, 144A(3)

$

6,512,291

5,714,535

Preferred CPO Limited Fixed Rate Senior Subordinated Notes, Class B, 10.03%, Due July 26, 2030, 144A(3)

$

435,635

446,526

Total Debt Securities(Cost $24,651,930)

25,311,061

Trust Preferred Securities: 33.6%
Banking: 33.6%
Amboy Capital Trust I Trust Preferred Security, 9.00%, Due July 29, 2029, 144A(3)

$

15,500,000

15,500,000

Capital City TPS LLC Series 2015-1 Capital City TPS 2015-1 9.74%, Note, Due September 30, 2030, 144A(3)

$

1,924,289

1,948,343

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

$

2,500,000

2,528,125

Countrywide Capital Trust IV Trust Preferred Security, 6.75%

38,562

977,932

Deutsche Bank Contingent Capital Trust V Trust Preferred Security, 8.05%

57,444

1,598,667

First Alliance Capital Trust I Junior Subordinated Debt, 10.25%, Due July 25, 2031, 144A(3)

$

6,500,000

6,548,750

First Citizens TPS LLC Series 2015-1 First Citizens TPS 2015-1 9.74%, Note, Due September 30, 2030, 144A(3)

$

2,245,004

2,273,067

M&T TPS LLC Series 2015-1 M&T TPS 2015-1 9.74%, Note, Due September 30, 2030, 144A(3)

$

2,565,718

2,597,789

Mercantil TPS LLC Series 2015-1 Mercantil TPS 2015-1 9.74%, Note, Due September 30, 2030, 144A(3)

$

4,810,722

4,870,856

Merrill Lynch Preferred Capital Trust III Trust Preferred Security, Series D, 7.00%

21,729

554,524

Merrill Lynch Preferred Capital Trust IV Trust Preferred Security, Series E, 7.12%

30,263

772,917

Merrill Lynch Preferred Capital Trust V Trust Preferred Security, Series F, 7.28%

76,206

1,953,160

Morgan Stanley Capital Trust VIII Trust Preferred Security, 6.45%

51,578

1,307,502

National Bank of Indianapolis TPS LLC Series 2015-1 National Bank Of Indianapolis TPS 2015-1 9.74%, Note, Due September 30, 2030, 144A(3)

$

4,329,650

4,383,771

PrivateBancorp Capital Trust IV Trust Preferred Security, 10.00%

13,322

351,434

Total Trust Preferred Securities(Cost $48,659,984)

48,166,837

Perferred Stocks: 46.3%
Banking: 46.3%
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

1,044,000

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

13,750,000

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, Each Representing a 1/1,000th Interest in a Share of 7.125% Fixed Rate Non-Cumulative Preferred Stock, Series J

180,222

4,932,676

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 Perpetual Preferred Stock, Series A

14,800

370,740

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

$

2,579,000

2,579,000

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

$

210,000

210,000

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

9,844

250,727

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

14,900

407,962

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

4,227

100,307

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

$

9,000,000

9,000,000

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

1,139,836

Katahdin Bankshares Corporation 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

62,169

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

$

250,000

247,500

Total Preferred Stocks(Cost $66,833,534)

66,477,307

Convertible Preferred Stocks: 3.5%
Banking: 3.5%
Civista Bancshares Inc. Depositary Shares, Each Representing a 1/40th Interest in a 6.50% Non-Cumulative Redeemable Convertible Perpetual Preferred Share, Series B

59,001

2,057,955

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

250,000

2,937,500

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

4,995,455

Common Stocks: 3.9%
Banking: 2.2%
Civista Bancshares Inc. Equity Security

12,820

263,451

Happy Bancshares, Inc. Equity Security, Private Placement, 144A(3)(4)

44,000

982,080

Middleburg Financial Corporation Equity Security

14,220

255,960

Pioneer Bancshares, Inc. Equity Security(4)

83,400

1,599,612

3,101,103

Non-Banking: 1.7%
Medallion Financial Corporation Equity Security*

294,754

2,461,196

2,461,196

Total Convertible Common Stocks(Cost $6,140,949)

5,562,299

Exchange Traded Fund: 4.8%
Diversified Financial Services: 4.8%
iShares S&P U.S. Preferred Stock Index Fund Preferred Stock Exchange Traded Fund

175,000

6,956,250

Total Exchange Traded Fund(Cost $6,957,755)

6,956,250

Limited Partnership Interest: 0.7%
Banking: 0.7%
Priam Capital Fund I, L.P. Limited partnership(4)

$

1,000,000

1,000,000

Limited Partnership Interest(Cost $1,000,000)

1,000,000

Total Long Term Investments(Cost $182,469,177)

182,719,209

Short-Term Investments: 2.6%
Morgan Stanley Institutional Liquidity Funds - Treasury Portfolio Institutional Share Class

3,630,421

3,630,421

Total Short-Term Investments (Cost $3,630,421)

3,630,421

Total Investments (Cost $186,099,598) (5)(6)†: 129.9%

186,349,630

Other assets and liabilities, net: (29.9)%(7)

(42,843,024)

Total Net Assets: 100.0%

$ 143,506,606

(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 $22.5 million in bank loan from Texas Capital Bank.
* Cash and cash equivalents of $10,714,128 on the Statement of Assets and Liabilities includes $6,214,148 of short term
  investments.


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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