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 December 31, 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($)(2) Fair
Value ($)
Long-Term Investments: 119.8%
Preferred Securities: 64.1%
Preferred Stock: 61.0%
Banking: 61.0%
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 10,037
Blue Ridge Bancshares, Inc. Fixed Rate Cumulative Perpetual Preferred Stock Series B, 9% $200,000 196,000
BNCCORP, Inc. Fixed Rate Cumulative Perpetual Preferred Stock Series A, 9% $13,750,000 13,754,582
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 4,887,621
Colony Bankcorp, Inc. Fixed Rate Cumulative Perpetual Preferred Stock, Series A, 9% $3,661,000 3,587,780
Community First Bancshares, Inc. Fixed Rate Cumulative Perpetual Preferred Stock, Series A, 9% $7,250,000 7,196,833
Community First Bancshares, Inc. Fixed Rate Cumulative Perpetual Preferred Stock Series B, 9% $400,000 398,667
Community West Bancshares Fixed Rate Cumulative Perpetual Preferred Stock Series A, 9% $1,732,000 1,732,000
EverBank Financial Corp. Depositary Shares, Each Representing a 1/1,000th Interest in a Share of 6.75% Non-Cumulative Preferred Stock, Series A 25,263 632,586
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% $3,607,000 3,610,006
Fidelity Financial Corporation Fixed Rate Cumulative Perpetual Preferred Stock Series B, 9% $293,000 293,244
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% $9,000 8,820
First Republic Bank Depositary Shares, Each Representing a 1/40th Interest in a Share of 6.20% Non-Cumulative Perpetual Preferred Stock, Series B 19,631 499,216
First Republic Bank Depositary Shares, Each Representing a 1/40th Interest in a Share of 5.625% Non-Cumulative Perpetual Preferred Stock, Series C 21,312 510,422
First Republic Bank Depositary Shares, Each Representing a 1/40th Interest in a Share of 7.00% Non-Cumulative Perpetual Preferred Stock, Series E 10,909 299,998
First United Corporation Fixed Rate Cumulative Perpetual Preferred Stock, Series A, 9% $9,000,000 9,018,045
HMN Financial Corp., Inc. Fixed Rate Cumulative Perpetual Preferred Stock, Series A, 9% $5,398,000 5,404,748
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 1,138,485
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% $13,005,000 12,874,950
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
Subtotal - Preferred Stock 86,662,874
Convertible Preferred Stock: 3.1%
Banking: 3.1%
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
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 2,500,000
Subtotal - Convertible Preferred Stock 4,441,133
Total Preferred Securities(Cost $91,373,814) 91,104,007
Debt Securities: 18.8%
Banking: 18.8%
MidWest Community Financial Corp. Subordinated Debenture, 8.80%, Due November 25, 2024 $3,500,000 3,500,000
MMCapS SM Funding I, Ltd./MMCapS SM Funding I, Inc. Fixed Rate Mezzanine Notes, Due 6/15/2030, 8.39%, 144A(3) $8,343,224 6,299,134
Preferred Term Securities, Ltd./Preferred Term Securities, Inc. Fixed Rate Mezzanine Notes, Due 9/15/2030, 9.74%, 144A(3) $16,872,629 16,893,720
Total Debt Securities(Cost $25,946,122) 26,692,854
Trust Preferred Securities: 17.9%
Banking: 17.9%
Amboy Capital Trust I 9.00% Trust Preferred Security, Private Placement, 144A(3) $ 8,000,000 8,000,000
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 38,562 977,161
Deutsche Bank Contingent Capital Trust V 8.05% Trust Preferred Securities 57,444 1,619,346
First Alliance Capital Trust I Junior Subordinated Debt, 10.25%, Due July 25, 2031, 144A(3) $ 6,500,000 6,624,150
JPMorgan Chase Capital Trust XXIX 6.70% Capital Securities, Series CC 20,350 516,890
Merrill Lynch Preferred Capital Trust III 7.00% Originated Preferred Securities 23,630 603,274
Merrill Lynch Preferred Capital Trust IV 7.12% Originated Preferred Securities 38,264 984,533
Merrill Lynch Preferred Capital Trust V 7.28% Originated Preferred Securities 76,206 1,966,115
Morgan Stanley Capital Trust VIII 6.45% Capital Securities 51,578 1,299,250
PrivateBancorp Capital Trust IV 10.00% Trust Preferred Securities 13,322 355,165
Total Trust Preferred Securities(Cost $25,803,572) 25,499,009
Equity Securities: 4.8%
Banking: 4.8%
Citizens & Northern Corporation Common stock 12,820 264,989
Happy Bancshares, Inc.(4) Common stock, Private Placement, 144A(3) 44,000 924,000
Medallion Financial Corporation Common stock 290,522 2,908,125
Middleburg Financial Corporation Common stock 14,220 256,102
Pioneer Bancshares, Inc.(4) Common stock 83,400 1,438,650
Priam Capital Fund I, L.P.(4) Limited partnership (Common shares) $1,000,000 1,000,000
Total Equity Securities(Cost $7,099,391) 6,791,866
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
Exchange Traded Fund: 4.9%
Banking: 4.9%
iShares S&P U.S. Preferred Stock Index Fund Exchange-Traded Fund (ETF) 175,120 6,910,235
Total Exchange Traded Fund(Cost $6,964,742) 6,910,235
Total Long Term Investments (Cost $170,437,641) 170,247,971
Short-Term Investments: 4.4%
Morgan Stanley Institutional Liquidity Funds - Treasury Portfolio Institutional Share Class 6,214,148 6,214,148
Total Short-Term Investments (Cost $6,214,148)* 6,214,148
Total Investments (Cost $176,651,789) (5)(6)†: 124.2% 176,462,119
Other assets and liabilities, net: (24.2)%(7) (34,330,334)
Total Net Assets: 100.0% $ 142,131,785

(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

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

Annual Reports

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

Quarterly Results

2013

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2012

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