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1. Company Snapshot

1.a. Company Description

StoneCastle Financial Corp.is a closed ended balanced mutual fund launched and managed by StoneCastle Asset Management LLC.It invests in public equity markets of the United States.


The fund invests in stocks of companies operating across the banking sector.It invests in dividend paying growth and value stocks of companies.For its fixed income portion, the fund invests in subordinated debt securities which are rated BBB- or better by Kroll Ratings.


The fund employs fundamental analysis with bottom-up security picking approach by focusing on factors such as review of historical and prospective financial information, interviews with management and key employees of the prospective bank, financial models and projections, changes in interest rates, changes in unemployment rates, changes in home prices, changes in economic activity to create its portfolio.It employs proprietary research to create its portfolio.StoneCastle Financial Corp.


was formed on February 7, 2013 and is domiciled in the United States.

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1.b. Last Insights on BANX

Recent drivers behind ArrowMark Financial Corp.'s performance include: 1. Attractive 8.5% distribution yield: The company offers a high dividend yield, primarily through investments in Regulatory Capital Relief Securities, providing high yields through floating rates and modest leverage. 2. Fully covered distribution: The company's 8.5% distribution yield is fully covered, making it an attractive option for income-seeking investors. 3. Narrow discount: The fund's narrow discount has narrowed significantly over the past six months, making it a more attractive option for investors. 4. Special distribution: The company announced a special cash distribution of $0.10 per share and a regular cash distribution of $0.45 per share for the first quarter 2025, totaling $0.55 per share. 5. Consistent quarterly distributions: The company has a history of delivering consistent quarterly distributions, making it a good bet for investors seeking high income. These factors contribute to the company's strong performance, driven by its focus on high income through investments in Regulatory Capital Relief Securities.

1.c. Company Highlights

2. Transcript Summary

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3. NewsRoom

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10 Best CEFs This Month: Average Yield Of 9.5% (November 2025)

Nov -29

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ArrowMark Financial Corp. Releases Month End Estimated Net Asset Value as of October 2025

Nov -18

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The Chemist's Triple-Factor Closed-End Fund Report, October 2025

Oct -25

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Income-Covered Closed-End Fund Report, October 2025

Oct -21

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ArrowMark Financial Corp. Releases Month End Estimated Net Asset Value As of September 2025

Oct -17

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BANX: Generates A High Risk-Adjusted Return Using A Niche Security

Sep -30

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Income-Covered Closed-End Fund Report, September 2025

Sep -22

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ArrowMark Financial Corp. Appoints Melissa Marano Thompson to the Company's Board of Directors

Sep -16

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (8.50%)

6. Segments

Investment and Related Activities

Expected Growth: 8.5%

Growing demand for investment management services, increasing adoption of digital investment platforms, and rising wealth among high-net-worth individuals drive growth in ArrowMark Financial Corp's investment and related activities.

7. Detailed Products

Fixed Income Securities

ArrowMark Financial Corp. offers a range of fixed income securities, including government bonds, corporate bonds, and municipal bonds, providing investors with a steady income stream.

Equity Securities

The company provides access to a diverse range of equity securities, including common stocks, preferred stocks, and exchange-traded funds (ETFs), allowing investors to tap into growth opportunities.

Alternative Investments

ArrowMark Financial Corp. offers alternative investment options, such as private equity, real estate, and hedge funds, providing investors with diversification and potentially higher returns.

Wealth Management Services

The company provides comprehensive wealth management services, including portfolio management, financial planning, and estate planning, to help high-net-worth individuals and families achieve their financial goals.

Institutional Services

ArrowMark Financial Corp. offers institutional services, including custody, clearing, and execution services, to support the investment needs of institutional clients.

8. ArrowMark Financial Corp.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for ArrowMark Financial Corp. is medium due to the presence of alternative investment options for clients.

Bargaining Power Of Customers

The bargaining power of customers is low for ArrowMark Financial Corp. as clients have limited negotiating power due to the company's specialized financial services.

Bargaining Power Of Suppliers

The bargaining power of suppliers is medium for ArrowMark Financial Corp. as the company relies on a diverse range of suppliers for its operations.

Threat Of New Entrants

The threat of new entrants is high for ArrowMark Financial Corp. due to the relatively low barriers to entry in the financial services industry.

Intensity Of Rivalry

The intensity of rivalry is high for ArrowMark Financial Corp. due to the highly competitive nature of the financial services industry.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 22.79%
Debt Cost 6.36%
Equity Weight 77.21%
Equity Cost 6.36%
WACC 6.36%
Leverage 29.52%

11. Quality Control: ArrowMark Financial Corp. passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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ArrowMark Financial

A-Score: 7.9/10

Value: 5.7

Growth: 6.3

Quality: 8.1

Yield: 10.0

Momentum: 7.5

Volatility: 10.0

1-Year Total Return ->

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Bain Capital Specialty Finance

A-Score: 7.2/10

Value: 7.2

Growth: 6.3

Quality: 8.0

Yield: 10.0

Momentum: 2.5

Volatility: 9.3

1-Year Total Return ->

Stock-Card
Gladstone Investment

A-Score: 7.1/10

Value: 6.5

Growth: 4.3

Quality: 7.1

Yield: 10.0

Momentum: 5.0

Volatility: 9.7

1-Year Total Return ->

Stock-Card
Great Elm Capital

A-Score: 6.7/10

Value: 7.0

Growth: 7.3

Quality: 6.2

Yield: 10.0

Momentum: 3.0

Volatility: 6.7

1-Year Total Return ->

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CION Investment

A-Score: 5.8/10

Value: 4.4

Growth: 4.9

Quality: 4.7

Yield: 10.0

Momentum: 2.0

Volatility: 9.0

1-Year Total Return ->

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Oxford Square Capital

A-Score: 5.2/10

Value: 6.4

Growth: 3.9

Quality: 3.3

Yield: 10.0

Momentum: 0.0

Volatility: 7.7

1-Year Total Return ->

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

21.5$

Current Price

21.5$

Potential

-0.00%

Expected Cash-Flows