StoneCastle Financial Corp. (NASDAQ:BANX) Q1 2020 Earnings Conference Call - Final Transcript

May 07, 2020 • 05:00 pm ET

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StoneCastle Financial Corp. (NASDAQ:BANX) Q1 2020 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Greetings, and welcome to the StoneCastle Financial Corp. Quarter 1 Financial Release Conference Call. [Operator Instructions] As a reminder, this conference is being recorded. I would now like to turn the conference over to Rachel Schatten, General Counsel of StoneCastle Financial. Thank you. Please begin.

Executive
Rachel Nachas Schatten

Good afternoon. Before we begin this conference call, I'd like to remind everyone that certain statements made during the call may be considered forward-looking statements based on current management expectations that involve substantial risks and uncertainties. Actual results may differ materially from the results stated in, or implied by these forward-looking statements. This will depend on numerous factors, such as changes in securities of financial markets or general economic conditions; the volume of sales and purchases of shares of common stock; the continuation of investment advisory, administrative and service contracts; and other risks discussed from time to time in the company's filings with the SEC, including annual and semiannual reports of the company. StoneCastle Financial has based the forward-looking statements included in this presentation on information available to us as of March 31, 2020. The company undertakes no duty to update any forward-looking statements made herein. All forward-looking statements speak only as of today, May 7, 2020.

Now I will turn the call over to Sanjai Bhonsle.

Executive
Sanjai Suryaji Bhonsle

Thank you, Rachel. Good afternoon, and welcome to StoneCastle Financial's first quarter investor call for 2020. Here with me today are Pat Farrell, our CFO; and Josh Siegel, a member of the Board of StoneCastle-ArrowMark Asset Management. I would first like to start off this call by acknowledging the many organizations and workers who are helping our country in this time of crisis. This is a challenging time for all, including our families and friends. And our thoughts and best wishes are with the entire medical community, including first responders and those families most affected by the coronavirus.

Like many of you, we at StoneCastle Financial have been working remotely these last 2 months. Our technology teams worked quickly to ensure that daily operations would not be affected, and I'm happy to say that the company had a seamless transition to remote operations. The management teams in Denver and New York City are working in concert in the best interest of our shareholders.

Now on to the first quarter results. During today's presentation, I want to spend time discussing the company. Then I will provide StoneCastle Financial's quarterly results and portfolio review, and Pat will then provide you with greater detail on our financial results before we open up the call for questions.

StoneCastle Financial's common stock was not immune to the extreme market volatility experienced since late February. Putting aside the market conditions weighing on the stock, the company's operations are solid and stable, and the investment team has been active in originating portfolio assets.

Over the last few months, the credit markets tightened as the Federal Reserve stepped in to provide liquidity. Even though Q2 and Q3 predictions for U.S. GDP and unemployment are uncertain, we believe