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Press release content from Globe Newswire. The AP news staff was not involved in its creation.

StoneCastle Financial Corp. Reports First Quarter 2019 Results

May 2, 2019

NEW YORK, May 02, 2019 (GLOBE NEWSWIRE) -- StoneCastle Financial Corp. (Nasdaq: BANX) (“StoneCastle Financial” or the “Company”), an investment company registered with the Securities and Exchange Commission (“SEC”), today announced results for the first fiscal quarter ended March 31, 2019.

First Quarter 2019 Investment Highlights:

-- Invested $1.5 million in two investments -- Received full call proceeds of $17.5 million from three investments -- Received partial pay downs proceeds of $2.0 million from five investments

Investment Activity in the First Quarter 2019 Included:

-- Invested $1.5 million in The Queensborough Company, Fixed Rate Cumulative Perpetual Preferred Stock Series A, 9% -- Invested $94,000 in The Queensborough Company, Fixed Rate Cumulative Perpetual Preferred Stock, Series B, 9%

A complete listing of investments as of the end of the quarter can be found on the Company’s website at www.stonecastle-financial.com.

The estimated annualized yield generated by the invested portfolio as of March 31, 2019 (excluding cash and cash equivalents) was approximately 9.29%.

First Quarter 2019 Financial Results

Net investment income was $2,481,830 or $0.38 per share, comprised of $4,235,550 gross income and $1,753,720 of expenses. Net Assets at quarter end were $141,788,309. The Company’s Net Asset Value was $21.63 per share. The unrealized appreciation of the portfolio increased by $1,414,753, or $0.22.

In the first quarter, the Company paid a cash distribution of $0.38 per share. The distribution was paid on March 26, 2019 to shareholders of record at the close of business on March 19, 2019.

The Company had $38 million outstanding on its $62.0 million credit facility at the quarter end, which represents approximately 21% of total assets. According to regulated investment company rules, the Company may borrow only up to 33.3% of its total assets.

Portfolio and Investment Summary

As of the close of business on March 31, 2019, the Company had total assets of $181,317,601 consisting of total investments of $173,064,511, cash of $5,566,326 and other assets of $2,686,764. Other assets include interest and dividends receivable of $1,936,971 and prepaid assets of $749,793.

During the quarter, the Company invested a total of $1,546,000 in The Queensborough Company Fixed Rate Cumulative Perpetual Preferred Series A and B, 9%. The Company received full call proceeds of $17,464,932 from three investments and partial pay downs of $1,999,293 from five investments.

Quarterly Conference Call

StoneCastle Financial will host a webcast and conference call on May 2, 2019 at 5:00 pm Eastern time.

The conference call can be accessed by dialing 1-877-407-9039 for domestic callers or 1-201-689-8470 for international callers. Participants may also access the call via live webcast by visiting StoneCastle Financial’s investor relations website at www.stonecastle-financial.com. To listen to a live broadcast, go to the website at least 15 minutes prior to the scheduled start time in order to register, download and install any necessary audio software. A replay will be available shortly after the call and be available through midnight (Eastern Time) on May 15, 2019. The replay can be accessed by dialing 1-844-512-2921 for domestic callers or 1-412-317-6671 for international callers. The passcode for the replay is 13689427. The archive of the webcast will be available on the Company’s website for a limited time.

About StoneCastle Financial Corp.

StoneCastle Financial is an SEC registered non-diversified, closed-end management investment company listed on the NASDAQ Global Select Market under the symbol “BANX.” StoneCastle Financial intends to make long-term, passive, non-control investments in community banks seeking capital for organic growth, acquisitions, share repurchases and other refinancing activities. Its investment objective is to provide current income and, to a lesser extent, capital appreciation. StoneCastle Financial is managed by StoneCastle Asset Management LLC.

Disclaimer and Risk Factors:

There is no assurance that StoneCastle Financial will achieve its investment objective. StoneCastle Financial is subject to numerous risks, including investment and market risks, management risk, income and interest rate risks, banking industry risks, preferred stock risk, convertible securities risk, debt securities risk, liquidity risk, valuation risk, leverage risk, non-diversification risk, credit and counterparty risks, market at a discount from net asset value risk and market disruption risk. Shares of closed-end investment companies may trade above (a premium) or below (a discount) their net asset value. Shares of StoneCastle Financial may not be appropriate for all investors. Investors should review and consider carefully StoneCastle Financial’s investment objective, risks, charges and expenses. Past performance does not guarantee future results. Learn more at www.stonecastle-financial.com.

The Annual Report, Semi-Annual Report and other regulatory filings of the Company with the SEC are accessible on the SEC’s website at www.sec.gov and on the Company’s website at www.stonecastle-financial.com, and may discuss these or other factors that affect the Company.

CONTACT: Investor Contact:Julie Muraco347-887-0324

STONECASTLE FINANCIAL CORP. Statement of Assets and Liabilities (unaudited) March 31, 2019 December 31, 2018 Assets Investments in securities, at fair value (cost: $173,545,428 and $ 173,064,511 $ 189,070,497 $190,966,167 respectively) Cash 5,566,326 2,831,334 Receivable for investment securities redeemed - 428,000 Interest and dividends receivable 1,936,971 3,056,292 Prepaid assets 749,793 827,666 Total assets 181,317,601 196,213,789 - ----------- - - ----------- - Liabilities Loan payable 38,000,000 51,000,000 Dividends payable - 3,406,057 Investment advisory fee payable 783,180 871,281 Loan interest payable 238,916 76,117 Directors fee payable 1,534 13,325 Accrued expenses payable 505,662 467,388 Total liabilities 39,529,292 55,834,168 - ----------- - - ----------- - Net Assets $ 141,788,309 $ 140,379,621 - ----------- - - ----------- - Net Assets consist of: Common stock at par ($0.001 per share) $ 6,555 $ 6,550 Paid-in-Capital 143,778,146 145,025,061 Accumulated net investment gain / (loss) 74,913 (1,257,435 ) Accumulated net realized loss on investments (1,590,388 ) (1,498,885 ) Net unrealized depreciation on investments (480,917 ) (1,895,670 ) Net Assets $ 141,788,309 $ 140,379,621 - ----------- - - ----------- - Net Asset Value Per Share: Common Stock Shares Outstanding 6,554,983 6,550,110 - ----------- - - ----------- - Net asset value per common share $ 21.63 $ 21.43 - ----------- - - ----------- - Market price per share $ 21.43 $ 19.30 - ----------- - - ----------- - Market price discount to net asset value per share -0.93 % -9.94 % - ----------- - - ----------- -

STONECASTLE FINANCIAL CORP. Statement of Operations (unaudited) For The Three For The Three Months Ended Months Ended March 31, December 2019 31,2018 ------------- -------------- Investment Income Interest $ 3,056,839 $ 3,457,576 Dividends 1,056,299 1,188,628 Origination fee income 13,527 8,790 Other Income (service fees and due diligence fees) 108,885 57,286 Total Investment Income 4,235,550 4,712,280 - --------- - - ---------- - Expenses Investment advisory fees 783,180 871,281 Interest expense 527,794 570,584 Professional fees 113,772 180,337 Directors’ fees 56,959 53,669 Transfer agent, custodian fees and administrator fees 51,031 55,172 ABA marketing and licensing fees 36,875 37,694 Bank administration fees 36,251 27,057 Investor relations fees 30,526 26,204 Delaware franchise tax 21,420 22,419 Insurance expense 17,753 18,148 Valuation fees 16,707 16,489 Printing 8,648 8,673 Miscellaneous fees (proxy, rating agency, etc.) 52,804 54,861 Total expenses 1,753,720 1,942,588 - --------- - - ---------- - Net Investment Income $ 2,481,830 $ 2,769,692 - --------- - - ---------- - Realized and Unrealized Gain / (Loss) on Investments Net realized loss on investments $ (91,503 ) $ (7,248 ) Net change in unrealized appreciation / (depreciation) on investments 1,414,753 (3,371,852 ) Net realized and unrealized gain / (loss) on investments 1,323,250 (3,379,100 ) - --------- - - ---------- - Net Increase / (Decrease) in Net Assets Resulting From Operations $ 3,805,080 $ (609,408 ) - --------- - - ---------- -

STONECASTLE FINANCIAL CORP. Financial Highlights (unaudited) For The Three Months Ended March 31, 2019 ---------- Per Share Operating Performance Net Asset Value, beginning of period $ 21.43 Net investment income(1) $ 0.38 Net realized and unrealized gain on investments(1) $ 0.20 - ------ - Total from investment operations $ 0.58 - ------ - Less distributions to shareholders From net investment income $ (0.38 ) - ------ - Total distributions $ (0.38 ) - ------ - Net asset value, end of period $ 21.63 - ------ - Per share market value, end of period $ 21.43 - ------ - Total Investment Return(2) Based on market value 13.10 % - ------ - Based on net asset value 2.81 % - ------ - Ratios and Supplemental Data Net assets, end of period (in millions) $ 141.8 - ------ - Ratios (as a percentage to average net assets): Expenses before waivers(3)(4)* 5.04 % - ------ - Expenses after waivers(5)* 5.04 % - ------ - Net investment income(6)* 7.13 % - ------ - Portfolio turnover rate** 1 % - ------ - Revolving Credit Agreement Total revolving credit agreement outstanding (000′s) $ 38,000 - ------ - Asset coverage per $1,000 for revolving credit agreement(7) 4,731 ----------------------------------------------------------- - ------ - (1) Based on the average shares outstanding during quarter. (2) Reflects reinvestment of distributions at the price obtained under the Dividend Reinvestment Plan. Total return does not include sales load and offering expenses and are not annualized. (3) Excluding interest expense, the ratio would have been 3.52%. (4) Ratio of expenses before waivers to average managed assets equals 3.77%. (5) Ratio of expenses after waivers to average managed assets equals 3.77%. (6) Ratio of net investment income to average managed assets equals 5.33%. Calculated by subtracting the Company’s total liabilities (excluding (7) the loan) from the Company’stotal assets and dividing the amount by the loan outstanding in 000′s. * Annualized ** Not-annualized