StoneCastle Financial Corp (NASDAQ:BANX) Q3 2021 Earnings Conference Call November 10, 2021 5:00 PM ET Company Participants Sanjai Bhonsle - CEO & Chairman Julie Muraco - IR Patrick Farrell - CFO Conference Call Participants Operator Welcome to the StoneCastle Financial Corp. Q3 2021 Investor Conference Call. [Operator Instructions]. Now I would like to turn the call over to Julie Muraco, Investor Relations of StoneCastle Financial. Please go ahead. Julie Muraco Before we begin this conference call, I'd lik ...

StoneCastle Financial Corp (NASDAQ:BANX) Q2 2021 Earnings Conference Call August 5, 2021 5:00 PM ET Company Participants Julie Muraco - IR Sanjai Bhonsle - CEO & Chairman Patrick Farrell - CFO Conference Call Participants Christopher O'Connell - KBW Operator Welcome to the StoneCastle Financial Corp. Q2 2021 Investor Conference Call. [Operator Instructions]. As a reminder, this conference is being recorded. Now I would like to turn the call over to Julie Muraco, Investor Relations of StoneCastle Financial. ...

StoneCastle Financial (NASDAQ:BANX) Q1 2021 Earnings Conference Call May 13, 2021 5:00 PM ET Company Participants Julie Muraco - Investor Relations Sanjai Bhonsle - Chairman and Chief Executive Officer Patrick Farrell - Chief Financial Officer Conference Call Participants Christopher O'Connell - Keefe, Bruyette, & Woods, Inc. Operator Welcome to the StoneCastle Financial Corp. Q1 2021 Investor Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follo ...

StoneCastle Financial (NASDAQ:BANX) Q4 2020 Earnings Conference Call March 1, 2021 5:00 PM ET Company Participants Julie Muraco - Investor Relations Sanjai Bhonsle - Chairman & Chief Executive Officer Pat Farrell - Chief Financial Officer Conference Call Participants Chris O'Connell - KBW Operator Welcome to the StoneCastle Financial Corp. Q4 2020 Investor Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator I ...

StoneCastle Financial (NASDAQ:BANX) Q3 2020 Earnings Conference Call November 12, 2020 5:00 PM ET Company Participants Rachel Schatten - General Counsel Sanjai Bhonsle - Chairman & Chief Executive Officer Pat Farrell - Chief Financial Officer Conference Call Participants Chris O'connell - KBW Bryce Rowe - National Securities Devin Ryan - JMP Securities Operator Welcome to the StoneCastle Financial Corp. Q3 2020 Investor Conference Call. At this time, all participants are in a listen-only mode. A question-an ...

StoneCastle Financial (NASDAQ:BANX) Q2 2020 Earnings Conference Call August 6, 2020 5:00 PM ET Company Participants Rachel Schatten – General Counsel Sanjai Bhonsle – Chairman and Chief Executive Officer Pat Farrell – Chief Financial Officer Conference Call Participants Operator Welcome to StoneCastle Financial Corporation's Q2 2020 Investor Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] Pl ...

StoneCastle Financial Corp. (NASDAQ:BANX) Q1 2020 Earnings Conference Call May 7, 2020 5:00 PM ET Company Participants Rachel Schatten - General Counsel & Chief Compliance Officer Sanjai Bhonsle - Chairman & Chief Executive Officer Patrick Farrell - Chief Financial Officer Joshua Siegel - Founder & Chief Executive Officer, StoneCastle Partners Conference Call Participants Chris O'Connell - KBW Brian Mckenna - JMP Securities Operator Greetings, and welcome to the StoneCastle Financial Corp. Quarter One Finan ...

StoneCastle Financial (NASDAQ:BANX) Q4 2019 Results Conference Call February 27, 2020 5:00 PM ET Company Participants Rachel Schatten - General Counsel Josh Siegel - Chairman Sanjai Bhonsle - CEO Pat Farrell - CFO Conference Call Participants Devin Ryan - JMP Securities Chris O'Connell - KBW Operator Greetings, welcome to the StoneCastle Financial Corp Fourth Quarter 2019 Financial Release Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow t ...

Financial Data and Key Metrics Changes - Earnings for Q3 2019 were approximately $3.4 million or $0.52 per share, consisting of net investment income of $2.5 million or $0.38 per share, and net realized capital gains of approximately $1 million or $0.14 per share [5][14] - Total assets were $169.2 million, with the invested portfolio valued at $166.9 million, and the net asset value (NAV) at the end of the quarter was $21.75 per share, down $0.05 from the prior quarter [5][17] Business Line Data and Key Metrics Changes - The company sold its equity interest in Happy Bancshares, realizing a capital gain of approximately $1 million, effectively doubling the initial investment with an average annualized return exceeding 14% [6] - The estimated annualized portfolio yield increased from 9.16% at the end of Q2 to 9.55% at the end of Q3 [12] Market Data and Key Metrics Changes - The company received full call proceeds of $10 million from Katahdin Bankshares and $4.5 million from Mercantil, along with principal amortization payments of $1.6 million during the quarter [6] Company Strategy and Development Direction - The strategic focus remains on finding value in the banking sector, particularly through investments in alternative capital securities that are non-dilutive to banks and generate significant current income [7][10] - The company is actively seeking additional investment opportunities in the banking sector, particularly as the market environment for bank subordinated debt issuance remains low [9] Management's Comments on Operating Environment and Future Outlook - Management noted a general trend of banks moving to a "hunker down" mode, indicating a cautious approach to lending amid economic uncertainties [26] - There is an increased focus among banks on adopting new technology to enhance competitiveness and reduce expenses [27] Other Important Information - The company is involved in a lawsuit filed against StoneCastle Partners and its affiliates, which it believes was a mistake due to the similarity of company names, and is awaiting a court ruling on a motion to dismiss [12] Q&A Session Summary Question: What additional investment opportunities are being seen as year-end approaches? - Management indicated that there is a slight increase in inquiries and a potential pickup in transactions as Q4 historically tends to see more activity [22] Question: Are there any new trends observed from community banks? - Management noted no significant hotspots in credit issues but mentioned a general pullback in funding desires among banks, indicating a cautious outlook on lending [26] Question: What is the status of potential call proceeds for Q4? - Management stated that approximately $15 million is currently available for calls, but they do not expect any material calls in the near term [32] Question: How does the delay of the CECL implementation affect small banks? - Management suggested that while small banks may have some breathing room, regulators are likely to hold them to higher standards in preparation for the CECL rule [34] Question: What yields are being seen in the current pipeline? - Management reported that yields for traditional products are still low, with interest in deals yielding in the 8% to high 7% range [38]

Financial Data and Key Metrics Changes - Net investment income for Q2 2019 was $2.5 million or $0.38 per share, with total assets approximately $168.2 million and an investment portfolio value of about $165.1 million [6][15] - Net asset value (NAV) at the end of the quarter was $21.80 per share, an increase of $0.17 from the prior quarter [12][14] - Gross income for the quarter was $4.05 million or $0.62 per share, while net operating expenses were $1.58 million or $0.24 per share [12] Business Line Data and Key Metrics Changes - The estimated annualized portfolio yield was approximately 9.16%, despite $12.9 million of securities being redeemed during the quarter [7] - The majority of the portfolio continues to be independently marked, with approximately 94% of the portfolio prices reflecting a minimum of two quotations or actual closing exchange prices [14] Market Data and Key Metrics Changes - The community banking industry experienced a quiet quarter, with debt offerings by U.S. banks below $10 billion in assets reported at only $176 million in Q2, with a weighted average coupon of 5.27% [6] - The current market environment has seen a decline in the 10-year treasury yield by over 90 basis points since the beginning of the year, contributing to the relative value of the company's stock [10] Company Strategy and Development Direction - The company is focusing on regulatory capital relief transactions, which are typically issued by larger banks, to improve capital ratios without selling off loan portfolios [8][42] - The company emphasizes discipline on credit quality, with the majority of underlying banks scored investment-grade or better, which is crucial as the credit cycle progresses [10] Management's Comments on Operating Environment and Future Outlook - Management noted that the current economic policy and foreign trade issues have little direct effect on community banks, which are historically recession-resistant [26][27] - The company is actively seeking investments that align with its long-term strategy, despite the current market volatility and uncertainty [9][20] Other Important Information - The cash distribution for the quarter was $0.38 per share, paid on June 26 to shareholders of record on June 20 [13][14] - The company had $24 million drawn from its credit facility at the end of the quarter, with the ability to borrow up to 33.3% of total assets based on regulated investment company rules [15] Q&A Session Summary Question: How is the company thinking about dividend coverage today? - Management indicated that they are currently covering the dividend and are actively working on new positions to maintain coverage, with good odds that it will continue [20][21] Question: How is the portfolio positioned for the current macro backdrop? - Management stated that smaller banks typically enjoy better net interest margins and have more pricing power, making them resilient in the current economic environment [24][25] Question: Could you provide details on the credit facility and interest expense going forward? - Management explained that they have flexibility in borrowing and have seen a decrease in interest expense due to lower rates, which positively impacts the bottom line [29][30]