• ArrowMark Financial Corp. Reports Third Quarter 2022 Results

    ソース: Nasdaq GlobeNewswire / 09 11 2022 15:20:00   America/Chicago

    DENVER, Nov. 09, 2022 (GLOBE NEWSWIRE) -- ArrowMark Financial Corp. (Nasdaq: BANX) (“ArrowMark Financial” or the “Company”), an investment company registered with the Securities and Exchange Commission (“SEC”), today announced results for the third fiscal quarter ended September 30, 2022.

    Third Quarter 2022 Investment Highlights:

    • Invested approximately $17.9 million in four investments
    • Realized proceeds of approximately $10.4 million from the sale of three investments
    • Realized proceeds from partial paydowns of $4.5 million from seven investments

    A complete listing of investments as of the end of the quarter can be found on the Company’s website at ir.arrowmarkfinancialcorp.com, under SEC filings.

    The estimated annualized yield generated by the invested portfolio as of September 30, 2022 (excluding cash and cash equivalents) was approximately 11.85%, up 174 basis points from 10.11% in the prior quarter.

    Third Quarter 2022 Financial Results

    Net investment income was $3.3 million or $0.46 per share, comprised of $5.3 million in gross income and $2.0 million of expenses. The Company also reported a net realized and unrealized loss on investments of ($0.27) per share. Net Assets at quarter end were $147.3 million. The Company’s Net Asset Value was $20.74 per share, down ($0.20) from the prior quarter.

    In the third quarter, the Company paid a regular cash distribution of $0.39 per share which was paid on September 29, 2022, to shareholders of record at the close of business on September 22, 2022.  

    The Company had $62.3 million outstanding on its $70.0 million credit facility at the quarter end, which represents approximately 29% 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

    During the quarter, the Company invested a total of $17.9 million in four bank-related regulatory relief capital investments. The Company received total proceeds of approximately $14.9 million, including $10.4 million from the sale of three investments, and $4.5 million from partial paydowns from seven investments.

    Quarterly Conference Call

    ArrowMark Financial will host a webcast and conference call on November 9, 2022, at 5:00 pm Eastern time. The call will include a presentation hosted by Chairman & CEO, Sanjai Bhonsle, President, Dana Staggs, and Chief Financial Officer, Patrick J. Farrell. There will be no open Q&A session. All questions can be immediately addressed by calling ArrowMark Financial’s Investor Relations at 212-468-5441 or emailing investorrelations@arrowmarkfinancialcorp.com to schedule a meeting with the management.

    The conference call can be accessed by dialing 1-844-826-3035 for domestic callers or 1-412-317-5195 for international callers. Participants may also access the call via live webcast by visiting ArrowMark Financial's investor relations website at ir.arrowmarkfinancialcorp.com. To listen to a live broadcast, go to the website at least 15 minutes prior to the scheduled start time 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 November 23, 2022. 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 10171795. The archive of the webcast will be available on the Company's website for a limited time.

    About ArrowMark Financial Corp.

    ArrowMark Financial is an SEC registered non-diversified, closed-end management investment company listed on the NASDAQ Global Select Market under the symbol "BANX." Its investment objective is to provide stockholders with current income. ArrowMark Financial is managed by ArrowMark Asset Management, LLC. The Company’s website can be found at ir.arrowmarkfinancialcorp.com.

    Disclaimer and Risk Factors:

    There is no assurance that ArrowMark Financial will achieve its investment objective. ArrowMark 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 ArrowMark Financial may not be appropriate for all investors. Investors should review and consider carefully ArrowMark Financial's investment objective, risks, charges and expenses. Past performance does not guarantee future results.

    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 ir.arrowmarkfinancialcorp.com.

    CONTACT:
    Investor Contact:
    Julie Muraco
    212-468-5441

     ARROWMARK FINANCIAL CORP.
     Statement of Assets and Liabilities (unaudited)
       
          
       September 30, 2022 June 30, 2022
     Assets   
      Investments in securities, at fair value cost: $209,448,494 and $207,554,612 respectively)$193,181,830  $197,055,807 
      Interest and dividends receivable 12,225,520   2,894,419 
      Foreign cash (cost: $21,298 and $23,338 respectively) 21,418   22,443 
      Cash 5,297,472   127,284 
      Unrealized appreciation on forward currency exchange contracts 35,701   - 
      Prepaid assets 1,494,260   1,535,171 
      Total assets 212,256,201   201,635,124 
          
     Liabilities   
      Loan payable 62,300,000   51,500,000 
      Investment advisory fee payable 930,951   877,992 
      Loan interest payable 296,986   33,990 
      Unrealized depreciation on forward currency exchange contracts 1,202,041   399,809 
      Accrued expenses payable 199,614   162,644 
      Total liabilities 64,929,592   52,974,435 
     Net Assets$ 147,326,609  $ 148,660,689 
          
     Net Assets consist of:   
      Common stock at par ($0.001 per share)$7,103  $7,101 
      Paid-in-Capital 156,724,166   156,696,147 
      Total distributable earnings / (loss) (9,404,660)  (8,042,559)
      Net Assets$ 147,326,609  $ 148,660,689 
          
     Net Asset Value Per Share:   
     Common Stock Shares Outstanding 7,102,626   7,101,054 
     Net asset value per common share$ 20.74  $ 20.94 
     Market price per share$ 17.26  $ 19.20 
     Market price premium/(discount) to net asset value per share -16.78%  -8.31%
          


    ARROWMARK FINANCIAL CORP.
    Statement of Operations (unaudited)
         
       For The Three Months
    Ended September 30, 2022    		For The Three Months
    Ended June 30, 2022
     Investment Income  
      Interest$5,130,810 $4,713,141 
      Dividends 146,258  259,077 
      Origination fee income 32,278  32,127 
      Other income (service fees and due diligence fees) 38,768  32,238 
      Total Investment Income 5,348,114  5,036,583 
         
     Expenses  
      Investment advisory fees 930,951  877,992 
      Interest expense 652,189  486,112 
      Directors' fees 104,052  125,152 
      Transfer agent, custodian fees and administrator fees 73,159  82,364 
      Bank administration fees 76,504  51,772 
      Professional fees 79,313  148,450 
      Investor relations fees 31,205  29,080 
      Insurance expense 18,148  17,951 
      Valuation fees 15,152  69,988 
      Miscellaneous fees (proxy, rating agency, etc.) 92,165  89,309 
      Total expenses  2,072,838  1,978,170 
      Net Investment Income 3,275,276  3,058,413 
         
     Realized and Unrealized Gain / (Loss) on Investments and Foreign Currency Transactions 
      Net realized gain / (loss) on investments (110,240) (808,687)
      Net realized gain from forward foreign currency contracts 4,983,569  3,540,799 
      Net realized gain / (loss) from foreign currency translations (184,231) (226,172)
      Net change in net unrealized appreciation / (depreciation) on investments (5,767,859) (6,714,234)
      Net change in unrealized appreciation / (depreciation) on forward currency contracts (766,531) 313,406 
      Net change in unrealized appreciation / (depreciation) on foreign currency translations (22,674) (9,092)
      Net realized and unrealized gain/(loss) on investments, forward foreign currency contracts and foreign currency translations (1,867,966) (3,903,980)
         
      Net Increase/(Decrease) in Net Assets Resulting From Operations$ 1,407,310 $ (845,567)
         


    ARROWMARK FINANCIAL CORP.
    Financial Highlights (unaudited)
       
      For The Three Months
    Ended September 30, 2022
     Per Share Operating Performance 
     Net Asset Value, beginning of period $ 20.94 
     Net investment income(1) 0.46 
     Net realized and unrealized gain (loss) on investments (0.27)
     Total from investment operations 0.19 
       
     Less distributions to shareholders 
     From net investment income (0.39)
     Total distributions  (0.39)
       
     Net asset value, end of period$ 20.74 
     Per share market value, end of period$ 17.26 
       
     Total Investment Return (2) 
     Based on market value  -8.14%
     Based on net asset value 1.21%
       
     Ratios and Supplemental Data 
     Net assets, end of period (in millions)$ 147.3 
     Ratios (as a percentage to average net assets): 
     Expenses before waivers(3)(4)* 5.55%
     Expenses after waivers(5)* 5.55%
     Net investment income(6)* 8.77%
     Portfolio turnover rate ** 9%
       
     Revolving Credit Agreement 
     Total revolving credit agreement outstanding (000's)$62,300 
     Asset coverage per $1,000 for revolving credit agreement(7) 3,365 
       
    (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 3.80%. 
    (4)Ratio of expenses before waivers to average managed assets equals 4.05%.
    (5)Ratio of expenses after waivers to average managed assets equals 4.05%.
    (6)Ratio of net investment income to average managed assets equals 6.39%.
    (7)Calculated by subtracting the Company's total liabilities (excluding the loan) from the Company's
     total assets and dividing the amount by the loan outstanding in 000's.
    * Annualized 
    **Not-annualized 


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