StoneCastle Financial Direct Capital Investment

StoneCastle Financial ("BANX") is the first public investment company specifically established to invest in healthy community banks. StoneCastle Financial allows banks to expand their investor base to include a knowledgeable bank investor and efficiently receive the capital they need to grow. ​​

StoneCastle Financial’s Senior Management team is comprised of long-term investors in community banks and is prepared to invest immediately in well-positioned banks and savings institutions.​
 
Investment types and features include, but are not limited to:
  • Non-control investments from as little as $2 million
  • Preferred stock, debt and, to a lesser extent,  common equity – depending on individual bank need and situation
  • Pricing – each bank negotiates their own cost of capital with StoneCastle Financial
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 NEW! Issue Subordinated Debt at Historically Low Rates

 
On July 15, Federal Reserve Chair Janet Yellen told Congress that the Fed plans to begin raising interest rates gradually this year. ABA endorsed solutions provider for capital raising, StoneCastle Financial, expects to bring to market a 10-year fixed rate pool of Tier 2 capital in early August. 

The capital, which can be counted as Tier 1 common equity at the underlying bank, will be priced at rates similar to those in 2007 when the fixed rates on trust preferreds were in the mid 6% range. Amid market talk of increased rates, StoneCastle Financial is advising banks to consider sub debt as a good source of lower cost and less dilutive capital than common equity. 

Take advantage of this great opportunity! Contact ABA's Helen Sullivan​ at 1-800-BANKERS, ext. 5167 today. ​
 

 Criteria

 
​Banks interested in capital investments will need to meet preliminary, baseline criteria before being referred to StoneCastle Financial for further investment consideration. The baseline preliminary criterion includes, but is not limited to the following:
  • Operating history of at least seven years
  • Banks should not be under any formal regulatory enforcement actions
  • Tangible equity to tangible assets greater than 5%
  • Recent ROA greater than 50 bps annualized
  • Total loans to total deposits less than 100%
  • Specific asset quality and earnings metrics
Note: This is not a full list of the preliminary criteria. Please contact the Corporation for American Banking's Helen Sullivan to discuss further and complete a preliminary due diligence form for consideration. For Institutional Use Only.
 
NEITHER THE AMERICAN BANKERS ASSOCIATION NOR ANY OF ITS AFFILIATES, INCLUDING CAB MARKETING, LLC AND CAB, LLC, HAS PASSED ON, APPROVED OR ENDORSED THE MERITS OR ACCURACY OF THIS OFFERING OR ANY EXHIBITS ATTACHED HERETO AND ANY REPRESENTATION OR IMPLICATION TO THE CONTRARY IS UNLAWFUL. ENDORSEMENTS ARE PROVIDED TO STONECASTLE FINANCIAL THROUGH CAB, LLC AND ALL SERVICES ARE PROVIDED BY CAB MARKETING, LLC. NO SERVICES OR ENDORSEMENTS HAVE BEEN PROVIDED DIRECTLY BY THE AMERICAN BANKERS ASSOCIATION.​
 

 Resources ‭[2]‬

 
 

 Contacts

 
Corporation for American Banking
Helen Sullivan
(202) 663-5167
 
StoneCastle Financial
www.stonecastle-financial.com
 
SC_financial logo_web.jpg 
"After meeting the StoneCastle Financial team, we were very impressed with their disciplined investing approach and made the decision to pursue a capital investment in our bank. The process was straightforward, definitely worth the effort, and ultimately we were able to raise Tier One Capital for our bank on competitive terms.” 
  • Jon Prescott
    CEO
    Katahdin Bankshares