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 Financial Corp'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 Financial Corp'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 (unaudited)

As of September 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 Loans - 32.5%
Banking - 32.5%
Citizens Bancshares Co. Senior Term Loan, 8.75%, Due 12/21/2024

$

13,250,000

13,250,000

First Citizens Bancshares, Inc. Subordinated Term Loan, 8.625%, Due 06/30/2025

$

10,000,000

10,000,000

Linden Bancshares, Inc. Subordinated Term Loan, 8.75%, Due 07/31/2025

$

4,000,000

4,000,000

Market Street Bancshares, Inc. Subordinated Term Loan, 6.50%, Due 08/14/2025

$

7,500,000

7,500,000

Sandhills Holding Company, Inc. Subordinated Term Loan, 8.75%, Due 07/31/2025

$

8,500,000

8,500,000

Victory Bancorp, Inc. Subordinated Term Loan, 8.50%, Due 09/22/2025

$

2,500,000

2,500,000

Williams Holding Company, Inc. Subordinated Term Loan, 8.75%, Due 06/30/2025

$

1,000,000

1,000,000

Total Term Loan(Cost $46,750,000)

46,750,000

Debt Securities - 22.5%
Banking - 22.5%
Bankwell Financial Group, Inc. Unsecured Fixed Rate Subordinated Notes, 5.75%, Due 8/15/2025

$

7,500,000

7,500,000

Cornerstone Community Bancorp Subordinated Debenture, 8.80%, Due 02/27/2025

$

5,000,000

5,000,000

Country Bank Holding Company Inc. Subordinated Debenture, 8.80%, Due 05/15/2025

$

6,000,000

6,000,000

Freeport Bancshares, Inc. Subordinated Debenture, 8.875%, Due 02/17/2025

$

3,150,000

3,150,000

MidWest Community Financial Corp. Subordinated Debenture, 8.50%, Due 11/24/2024

$

3,500,000

3,500,000

MidWest Community Financial Corp. Subordinated Debenture, 8.50%, Due 03/03/2025

$

1,500,000

1,500,000

MMCapS SM Funding I, Ltd./MMCapS SM Funding I, Inc. Fixed Rate Mezzanine Notes, 8.04%, Due 06/08/2031, 144A(3)

$

6,512,291

5,681,974

Total Debt Securities(Cost $31,706,529)

32,341,349

Trust Preferred Securities - 33.4%
Banking - 33.4%
Amboy Capital Trust I Trust Preferred Security, 9.00%, Due 07/29/2029, 144A(3)

$

15,500,000

15,500,000

Capital City TPS LLC Series 2015-1 Capital City TPS 2015-1 9.74%, Note, Due 09/30/2030, 144A(3)

$

1,920,854

1,925,656

Central Trust Company Capital Trust I. Junior Subordinated Debt, 10.25%, Due 07/25/2031

$

2,500,000

2,532,812

Countrywide Capital Trust IV Trust Preferred Security, 6.75%

38,562

978,318

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

57,444

1,609,581

First Alliance Capital Trust I Junior Subordinated Debt, 10.25%, Due 07/25/2031, 144A(3)

$

6,500,000

6,558,906

First Citizens TPS LLC Series 2015-1 First Citizens TPS 2015-1 9.74%, Note, Due 09/30/2030, 144A(3)

$

2,240,997

2,246,599

M&T TPS LLC Series 2015-1 M&T TPS 2015-1 9.74%, Note, Due 09/30/2030, 144A(3)

$

2,561,138

2,580,347

Mercantil TPS LLC Series 2015-1 Mercantil TPS 2015-1 9.74%, Note, Due 09/30/2030, 144A(3)

$

4,802,135

4,832,149

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

21,729

551,265

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

30,263

769,285

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

76,206

1,944,015

Morgan Stanley Capital Trust VIII Trust Preferred Security, 6.45%

51,578

1,298,218

National Bank of Indianapolis TPS LLC Series 2015-1 National Bank Of Indianapolis TPS 2015-1 9.74%, Note, Due 09/30/2030, 144A(3)

$

4,321,922

4,343,532

PrivateBancorp Capital Trust IV Trust Preferred Security, 10.00%

13,322

357,696

Total Trust Preferred Securities(Cost $48,626,855)

48,028,379

Perferred Stocks - 37.1%
Banking - 37.1%
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

1,023,200

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

104,054

2,801,134

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

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

$

9,000,000

9,000,000

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

$

10,000,000

10,000,000

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

$

100,000

104,050

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

$

49,000

61,924

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

$

250,000

247,500

Total Preferred Stocks(Cost $53,694,834)

53,383,648

Convertible Preferred Stocks - 3.6%
Banking - 3.6%
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

1,958,833

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

3,250,000

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

5,208,833

Common Stocks - 3.6%
Banking - 2.0%
Happy Bancshares, Inc. Equity Security, Private Placement, 144A(3)(4)

44,000

1,036,200

Middleburg Financial Corporation Equity Security

10,988

193,499

Pioneer Bancshares, Inc. Equity Security(4)

83,400

1,662,996

2,892,695

Non-Banking Financial - 1.6%
Medallion Financial Corporation Equity Security - Business Development Corporation

289,371

2,193,432

2,193,432

Total Convertible Common Stocks(Cost $5,774,358)

5,086,127

Exchange Traded Fund - 2.6%
Diversified Financial Services - 2.6%
iShares S&P U.S. Preferred Stock Index Fund Preferred Stock Exchange Traded Fund

95,797

3,785,897

Total Exchange Traded Fund(Cost $3,798,602)

3,785,897

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

$

50,000

1,000,000

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

1,000,000

Total Long Term Investments(Cost $195,326,203)

195,584,233

Short-Term Investments - 1.3%
Morgan Stanley Institutional Liquidity Funds - Treasury Portfolio Institutional Share Class

1,913,490

1,913,490

Total Short-Term Investments (Cost $1,913,490)

1,913,490

Total Investments (Cost $197,239,693) (5)(6)†: 137.3%

197,497,723

Other assets and liabilities, net: (37.3)%(7)

(53,689,807)

Total Net Assets: 100.0%

$ 143,807,916

(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) Investments are income producing assets unless otherwise noted by footnote (4).
(6) Cost values reflect accretion of original issue discount or market discount, and amortization of premium.
(7) Includes $58.0 million in bank loan from Texas Capital Bank.
As of September 30, 2015, the cost basis of investment securities owned was substantially identical for both book and tax
   purposes. Gross unrealized appreciation of investments was $2,163,775 and gross unrealized depreciation was $1,905,745,
   resulting in net unrealized appreciation of $258,030.


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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