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

New Bank Issued Subordinated Debt Opportunity

**NEW POOL FORMING FOR CLOSING SUMMER 2017**

Ever since the financial crisis, raising capital has been difficult for community banks, especially the smallest ones. With these banks in mind, StoneCastle Financial Corp. has developed a structured product that enables community banks to pool together to raise needed capital at relatively low cost.

Following the successful closing on October 15, 2015, of a $250 million subordinated loan transaction that consisted of 35 banks across 24 states, StoneCastle Financial is seeking immediate opportunities to invest in community bank issued subordinated debt at competitive rates on a first-come-first-served basis.

The capital, which can be counted as Tier 2 capital qualifying subordinated loan, will be priced between 6.75% and 6.99%. This presents an ideal opportunity to refinance higher cost SBLF preferred stock around the time of step up in dividend rate. Learn more.

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]‬

Questions? Please contact Helen Sullivan for more information.

Contacts

Corporation for American Banking
Helen Sullivan
(202) 663-5167

StoneCastle Financial
www.stonecastle-financial.com

In the News

American Banker: New Ways to Raise Capital for Your Bank - Jan. 2016

Raising capital has been tough for community banks ever since the financial crisis, especially the smallest... Read more.

"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

Webinar Recordings

Generate Marginal ROE with a Few Hours of Effort: Capital Efficiencies for Every Strategic Plan

Subordinated Debt for Community Banks