BANX - Earnings call transcript Q3 2020 | ArrowMark Financial Corp.

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Welcome to the StoneCastle Financial Corp. Q3 2020 Investor Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded.

to of call StoneCastle like Schatten, to would Counsel General Financial. I turn over the Rachel Now, Please go ahead.

Rachel Schatten

Good afternoon.

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

Now I will turn Bhonsle. over the Sanjai call to

Sanjai Bhonsle

StoneCastle afternoon to call and Financial's Good XXXX. Rachel. welcome quarter you, third Thank for investor

Farrell, Investor Relations. today Here Muraco, Pat is our CFO with Julie and me

results on we financial commenting on greater provide Then the provide and and would on markets questions. call banking StoneCastle and open before our presentation, detail Pat review, I'll I for with will today’s During before company. portfolio you industry results the briefly Financial's quarterly comment the credit

defaults. and recovery. banks withstand weeks, are and we are prolong reporting economy for the signaling banks the earnings expected for have two better Furthermore, adequate third a past they corporate will well-positioned banks government lower the QX that expected. several of to third many in than most have many helped anticipation part saw and XXXX we rate any quarter are businesses the additional issued During that corporate well-capitalized into reserves in keeping The potential impact stimulus default believe the in than an of weather stimulus going will increase quarter

industry QX Going optimistic. half XXXX, into and outlook remains banking our the for first cautiously

this X.X% income our of some in net and StoneCastle's have third median second portfolio call banks reported versus As up exceptions, quarter results. reported the underlying quarter. Banks

Tier flat average capital from In XX.X%, addition, reported portfolio ratios of our QX. X banks

banks rural that of reserves want on economically XX% positive low-income distressed the banks StoneCastle's exponentially small reported Association points take approximately PPP the receiving community XX% XX% and Independent in were was with statistics in Finally, loans, creation PPP by on the XX% up growth small and XX% inclusion banks and within businesses banks PPP women-owned supported to rural The X.XX% change banks loan the approximately lenders communities, have These role to their to XX% community the X.X%. economic dominant loans median community impact banks approximately to of financial that underlying to regarding development, Community mention communities, businesses. community our statistics PPP or minority their of participants the to I counties counties to show veteran-owned some underrepresented important stimulus PPP all also interesting U.S. and job moment Overall, loans. up XX% serving to such including The Bankers and owned; and community of businesses. community U.S. banks local program. a X providing reported serve the basis of the book and

for banks. me let on comment markets credit the Now

markets strategies to a the by optimism but both remain alternative be in of to we is Fed billion in capital alternative banking-related During the to due banking. XXX was issuance to tighten more first assets. residual points. of to of anticipated the the and quarter the This billion. basis third community QX, saw attractive with quarter, for new banking-related competitive expected approximately the also QX, we in pipeline guarded In securities $X.X $X securities, primary due into fourth of spreads the XX actions throughout for saw active and primary continue In environment and the issuance the XXXX quarter capital to half credit third active

are to expand. also issuer seeing continue base We the

for QX. Community attractive of issue their believe to was to bank The XX% low We the U.S. continue and to debt range. debt capital community prolonged economic QX Banks up banks secondary the in a Bank as sub X% current as sub allowing prior billion the XXXX. return addition, is the primary in originations issue QX. markets, In issuing $X.X faces rate the yields in historically the to increase rates. therefore, banks stronger will see the robust although we in X% third capital, billion not generally in The position banking remain able slightly from environment on alternative debt sub were are in in securities recovery a was into capital as to at issuances advantageous approximately in down raise were QX number quarter. from and $X.X quarter. market

Now to results StoneCastle quarter. Financial's for the

quarter. few which value the prior the of per sale we community $X.XX $XX.XX value-added $X.XX million more the quarter approximately of share, pleased a end XXXX, report primarily a or purchased million investment was The second quarter at for to per third million sale third the was in on the minutes. end $X.XX $XXX.X that of portfolio are prior the net decrease $X.X increase the end, third CLO, the quarter. of have up quarter funding XX%, XXXX. the of to At We asset in versus share at will from I of net an $XXX this due share, the from per income the was invested quarter comments

Now let the review. portfolio me turn to

primary year XXXX. investments the investments to the made the market million at has Aramark of During transactions, were Since in invested and par. a total capital The reporting, three million, over in $XX.X these bank. average the three weighted to million two yield of in the dollar a one investments X.X a earnings. company for effective assets as alternative third X.XX% the the the all transition amount quarters $XX subordinated total maturity community securities note company of the entire $X made times our approximately of or The yield new remained during including quarter, million new of purchased of of accretive contributed StoneCastle last $XX.X

$X.X from During the XXXX, the five two proceeds received from third partial the investments. million sale quarter of received of company million of and paydowns of investments $XX.X

the the the in CLO Community Funding quarter, company During position for $XX.X sold million.

over years, While of in this a the to about asset past net rate, portfolio lower has the step-up five earnings. been Financial's was reset resulting attractive StoneCastle the investment contribution for an with a in

In risk portfolio. to addition, potential move credit sell entire a the the made assets, the the the to for preemptive as position to enhance risk entire underlying and profile decision opportunistic we of reduce the

at these million the in during were we making CentEra, weighted have a Although outcome, investments an QX, NASA risk-adjusted and a QX. the of XX.X%, market to the $X.X partial $XX.X respectively. able in to proceeds actively of during dislocation was we momentarily. of of paydowns with were not the made discounts The anticipated regulatory both This QX, spend of which average the approximately purchased of included and capital paydown investments which million XX.X% two of did I'll returns address all trades, quarter, contribute and assets Subsequent end rate X.X%. coupon company been

of investments call of and yield to XX.X%. security capital alternative an One of expected the to yield and has X.XX% maturity

the QX. purchased portfolio up activity the In investments the portfolio believe sales decline, to made coupon a with addition, with and which community continued will throughout net bank show year. we X%. XX% QX With approximately and proceeds from up currently total balance a of making be stock the We made investments, date preferred of QX of

strong and in will QX, to We expect fourth provide we origination more to quarter on the of details call. pipeline continue the next transactions our be

investments, the preservation. all portfolio managed is capital income and banking-related generation For our for

securities at a alternative of the portfolio. approximately represented investments the the bank-related investments on estimated of risk-adjusted portfolio, website. effective XX% total was by found end, be capital community The At XX% yield the approximately look equivalents, generated offer approximately capacity total also investments quarter to schedule annualized invested can and portfolio A X.XX%. basis. We our of cash on represented the return to full excluding and investment cash

call an the an as X% vehicles other to traded Bank end, the I turn the to approximately a which the Financial's discount Invesco StoneCastle stock. over upon comparison in value StoneCastle is sector's stock I This touch relative or want a to yield. yield at period. Pat, U.S. average basis NAV dividend Barclays At dividend to like would wide fund the I with quarter X.X% that of Financial of index, StoneCastle yield aggregate the of attractive Index a mentioned. traded X.XX% group peer dividend bond the as dividend approximate to Bloomberg, September distribution yield the XXth, end. believe Financial Financial traded StoneCastle X.XX% relative just of is quarter vehicle at the point also income-oriented points XXX value We yield approximate to during to out that an which SPDR traded at X.XX% financial KBW had same Before at

over call Pat to details the the company. net Now of on I to discuss the results provide to underlying and value want asset turn financial the

Pat Farrell

you, Thank Sanjay.

quarterly quarter, value I of up quarter, through asset the X% company's the from prior reinvestment financial The the do or I including results components September XXth by going each dividends. of in detail. was the $XX.XX, As net results $X.XX at will present

company $X.XX was that review Before $XX.XX. NAV adjustment This to which end month minor than consolidated to to the want of related components estimated NAV to higher reported NAV, mid-October, be of I financials. difference the $XX.XX, was in I the preparing September our end note a quarter due the

estimated end September monthly As is $XX.XX. our you to shareholders. publishing transparency XXth of quarter are as and NAV know, for the clarity provide NAVs Therefore, we and

components: losses; comprised income; The the investment change the to investments; of lastly, in portfolio's gains Now on of breakdown the value and the net capital NAV realized and paid NAV period. the of during components. is distributions four

resulting net Realized $X.X gains transactions for per prior reported per $X.XX losses the expenses were in income share. the quarter, share, $X.XX these $X.X Net million capital the due and approximately $X.XX capital or The per were the Realized up is quarter $X.XX affecting NAV. the $X.X realized $XXX,XXX losses losses currency per share. share. or approximately foreign components. component share. for or in This quarter was review change in per investments to from million net $X.XX quarter for second or million $X.XX $X.XX income the of share. investment in compares were or Gross Let's per the quarter million $X.X to operating

The end. end the how entire the depreciation changes of in changed or unrealized third relates previous the component, investment to of current portfolio quarter quarter portfolio, the appreciation value from to the has

impact For September on the option our activities appreciation per on $X.XX in currency do paid we quarter, with $XXX,XXX of summary, want value XX total third cash or unrealized change per component net the record transactions per change and and on up out not on The In share, value $X.XX fourth unrealized share. The $XX.XX to a the the foreign quarter losses investments is net per quarter of affecting million was $X.X for and XX. quarterly shareholders share. asset from gains asset began was distribution I net foreign $X.XX appreciation distributions. income. to hedging in or point written of September currency the share

asset $XX.XX unrealized During portfolio increased of million, by the income generated of quarter. sum $X.X value September realized approximately per at of losses share capital from net components, distribution $X.XX quarter, million of of $X.X per a offset resulted net was in $X.X $X.XX a by the the The of which million. the up share, prior and XX, net we these value

to valuations continues from the independently it to is quotes. portfolio majority marked Turning the for vast be of that the holdings, broker-dealer our worth noting portfolio

or and greater prices represent quotations two a marks, an confidence value actual quarter, prices. the These a the of portfolio. quotations that $X.X the quarter the of of the minimum current totaling and value portfolios. approximately million, publicly $XXX.X of provide third-party and and their had closing exchange company's interest prepaid million. in of XX% assessment assets dividends company BDCs underlying reflect total investments of portfolio, of degree $XXX funds, of traded For independent versus consisting At other This the end, total receivable or million cash, closed-end should self-mark assets

pipeline. asset the base QX based the mentioned, expect investment to we on As Sanjai grow,

at yield end of X.X%. dividend the the approximately Our quarter was

total $XX you facility of XX, rules, to the $XX our had XX.X% or Now facility. to million borrow from let company draw. the September only regulated leaving may of On X% company on of assets. on Based me update drawn balance investment available our the total credit million up assets, we

Now to remarks. closing the for to Sanjai want over I turn call back

Sanjai Bhonsle

Thank you, Pat.

operator, call Now the up for I like questions. would to open

Operator

Thank with you. first your from Chris Your proceed O'connell line question Please [Operator the KBW. with Instructions] comes question. of

Chris O'connell

Good evening gentlemen.

Sanjai Bhonsle

Good evening, Chris.

Chris O'connell

just I know just maybe that go in with the -- I And wouldn't walk well that, you going be that that CLO part guess refinance. start I the you I the guess seen a the receiving? rates for I out investment. an yield if I rates, to wanted by have higher to of that that exiting as could were So you aspect to you the that said as through -- up. opportunity was comments guys of sale. for thought had prepared mean, And maybe the decision

Sanjai Bhonsle

it's Chris, And here. something to the Hi, later, forgotten. take first just I'll Yeah. feel add I've Pat, Sanjai. part if free

XX as the is cost by issuance, that The about structured it background, that step a it position initially our ahead equity tranche, points. five somewhere that was in years the million in going its that XXXs. we're post in of are notes ahead million $XX That those just capital essentially of an to way, CLO was way was of liabilities equity had about So up had basis way XXXX. it position of as was structured And a it, $XXX million. $XX

the So – – assets were earning but underlying assets community there the banks.

by earnings banks making the to it, the in is those going points. costs now if less you're those And what because to net go about on than community is before on going think you basis so is earning XX you're what up to CLO community be banks, going liability be

one. to be want you that And was And holdings. we million. two saw to in refinanced, financed. on out a of with it of it, position, didn't to liabilities opportunity liabilities Number the to we this number and funded is, a lower three lead need risk, May. blew did is, what take so CLO to going how if we diversify That $XX get about size And back earnings. then March, concentrated fairly capital for mid And was to took a think an had to kind our as especially get markets also spreads April, being

speaking, that size were held And in CLO so coupled with also the were generally of that half the of rest banks, of portfolio. about the the assets our

this the to profile. risk overall also We took improve opportunity

reasons essentially this So why what at kind exit marked decided of was that was few from position as to to we a gain at. a

– so helps. hopefully, And and that

Pat Farrell

was we that in markup add regard did XX. just to can June nice see that, where I from it with a at marked

almost extra price. versus picked June sale $XXX,XXX marked up in an – we from in So it the was value

of kind it Sanjai there. that, than other nailed So

Chris O'Connell

basis plus you at Great. the have to it saying above I was XXX seeing investment those down capital and mean, yields a yields I demand coming where up? forward, the or That's prior is seems it helpful. bit. generally, were alternative those the I market are points like base And yields then that going guess, – on was spreads new come LIBOR. X,XXX know looking you

Sanjai Bhonsle

Sure.

on the is seeing after security take are risk our cetera. you're what new investments So to especially that of we this et the happened willing reflective kind COVID, year, of yields with capital again, that alternative profile

are we those portfolio, much reflect the the lower it yields structure. conservative more discussed the because and that's reason a initially something – backing so seeing those securities, also underlying that reflects had than And assets structures is you're

that So That a of a perspective, there. more that sign the is are investments. of we're risk kind conservative from – again, these out reflection the seeing

being just what of we're in So kind we're prudent very buying.

Chris O'connell

it. Got

the guess, So those in sheet balance guess, I now? put alternative I pool, of that at where market, are seeing are on the spreads you then, to looking versus terms are you that of investments overall

Sanjai Bhonsle

Sure.

XXs that of I'd high plus when it versus you these And risk-adjusted happens single-digits, the just spreads our of that in that to maturity yield XQ. basis from high a that type we're is to of L showing bring to kind L are far investments seeing it the you we X we are yields to kind are more on yield of gravitated from high low analysis these plus for towards that single-digit looking are the yielding a the -- but of some One are at just So and attention of the the we underlying so ranging to in thing ranging the today to kind seeing a the investments, single-digits. based double-digits so you're from basis. between yields call investments basis, in double-digits the the have

Chris O'connell

Got it.

So this to investment two low to macro Xs previously? next the kind low I compared say high mean, XXs fair high the to remain to in of overall of yield, environment, rate any kind changes was is it in range Xs pending that what three quarters the of to over

Sanjai Bhonsle

Yes. what in of yield assuming range I mean, is things going X-ish constant. and based expect constant, on the things forward, be today, we type all to with again, all the pipeline our

Chris O'connell

overall been And like kind the noticed to line side, minor Are other the few then going range a to a had what XXXs kind few expense fees forward? kind I that back in other in professional on items. I revert of more of notably, expected Helpful. upticks Great. there's low those of expenses, in guess,

Patrick Farrell

combination I yes, sure Yes, QX needed accrued and yes. for fees, with true enough we're fees kind appropriately. to professional the adjustments we et a that, along on think valuation We making -- make going into But few of that of had and cetera. and

see bit going fourth to in quarter you to seen more are what previous some I come So down those in think quarters. you've a the

Chris O'connell

That's the around bank and your of to risk disclosed right reserve now the the market are overall where helpful. that of I Great. quality or you're extent remaining or on credit higher underlying banks that there all would and pockets out XQ to And focused appreciate you then are any updates bank like coming deferrals by info some Is of kind market they're portfolio. surrounding, the comments ultra your community that see? the than of banks,

Sanjai Bhonsle

Yes.

deferrals, let of So to also come there last down recall, at there, banks, type of in you of seeing as now single-digits. some at relates might percent take is out with we is you're meaningfully. our low and And discussion kind peak, question then it XX-plus as first, me And the part banks deferral that they've what the have rate. looking seen kind of these the like are

a company from XQ the growth what materially loan for are perspective, actually, net improved the And from fourth because what for of just working I our like almost job doing line. is reach banks. is kind a almost we of so out recently to are of there they're $XX were you And at at themselves versus that they very our in risk this portfolio million and was it. seeing cetera. managing prudent company quarter we et And businesses the last of we levels reline with all portfolio $XX utilize give And going banks, teams, – debt. pre-COVID, with a And this of that And a possible overloading the capital, asking line, in better had I year. today, and where issue. see basis, our the million saw income that's more XQ. talking spoke up of to that capacity, unused being an can From in kind to a was example of of lot we in bank going revolver not it's of because management a looking what

banks as but that overall, we loan worried little it pertains at that, are that obviously But a coupled least growth NIM, with portfolio of And going they so forward. book, a we in our own. to said have or – that, about – income their seen having the

kind P&L, the the growth I being a how And more in loan see so to P&L book. risk of not and that's a of our meaningful bank's NIM NIM, company's contraction

Chris O'connell

That's Great. Thank all have. I you.

Operator

National from next Please Securities. Your Bryce of with proceed question. line comes question the your with Rowe

Bryce Rowe

Good lot. a Thanks evening.

Pat Farrell

morning. Good

Sanjai Bhonsle

are How you Bryce?

Bryce Rowe

ask unrealized the thing? of securities, obviously, alternative credit what's to Hi. on see. is about or that good specific to a coming of the Sanjai, drive securities a depreciation the driving there curious, would the Hey, something specific that? rate to credit I appreciation? purely wanted and spreads But of Is that Was in? that it – some some just some Is

Sanjai Bhonsle

first you do part – Pat, me want you to take want that Sure. or to do

Pat Farrell

Yes. number on the bit of say good, kind Yes. I'll in a that. did side. buy attractive mathematical take on at the – of QX these a We very of pricing. very little I'd the just

speak quarter that – mentioned that of and had of this purchased of can couple at I away. to and par. both paydowns both they a those, XX – and I So we Both NASA being and XX, Sonata. have of were one they paydowns right there had with enough, we them on at we change those and can And them interestingly, one

deals definitely great there. So, got some

very certainly, got discounts most deals. And at we've the also one on in at really XXs. math we side, say bought discounts the of great I'd some some side, So the on others nice the

the So And going pricing throw just purchasing. I'd I'll was number give say Sanjai is then where thoughts opportunistic one, today. some back on to to

Sanjai Bhonsle

Sure.

in your with lines repo So, out -- you to pretty take what the that the deciding of in thing To And We delever. point just Back that it. they bit to happened. securities. do those as at repo had Bryce, buy due what kind And over exactly in were that's dislocation saw some people those you alternative some lines, then mark capital bought the said. we managers highest a and at kind best we that's And for you same sell more just what and to back of doing looking attractive were asset all on get TAM got a securities April like came to analysis terms March, then little Pat add is there. at some side price. color of And for in them. banking has community

how And opportunity with And there. of you've in market of you bit about. actually realized so repaid. kind certain came that's obviously, the a securities kind that kind those what gain instances got appreciation normalizing -- And seen that's little have partially more, a because of

of our based single-digit based for analysis, transactions. they worked seeing the again, again, in X, actually terms what same. But And And bought high some a that plus new In of but we we of we're that in plus And are issue distinction capital XX alternative more market, kind -- are are to on yes, well of securities. the LIBOR want investing LIBOR have our really we make structured seeing the of the I outlook, fund, conservatively and type on transactions. accretive. very type

Bryce Rowe

that's as that And what for others Sanjai. with the more That's the structured aren't helpful, maybe just me one of one than securities, benefit familiar makes conservatively not? capital and alternative

Sanjai Bhonsle

Sure.

start base, we investment-grade. usually the underlying asset just generally like the So you are tell with we speaking, that assets, can looking

of security. we'll from, BBB- like example, coming rating is, that say, And initially a let's BBB+ type category up more for a BBB, in rating, average so it make of what just in at to a assets move we portfolio move like was

securities of right? in little a return, bit risk, a category, carry up rating lower a generally proxy the which is for moving obviously, So the

Bryce Rowe

Yeah.

Sanjai Bhonsle

And we so more the that's go ways a conservative security. how about getting of one primary of

Bryce Rowe

Okay. think alternative billion comments universe That's this being $X.X current to good made new you appreciate for base quarter the the about I commentary comment -- correctly, $X about the capital your I in expanding. securities the And billion across the commentary. issuer fourth the And I then or pipeline issuances. heard

just there. you the comparative Is might and I I that. So with I treatment? looked And purposes. capital year a for driving ago, what's the expanding, know, the you number mean, don't about familiarity pipeline wondering of have when just issuers, then like, just talk structure what that issuers what the wondering think was

Sanjai Bhonsle

Sure.

product I banks, alternative to did a fourth right, billion. the it, capital community side before there, $X.X but year. anything our So, that's we we between participate more to answer what selection quarter purchases be mix process, and kind don't alternative focusing Worth noting securities billion Obviously, the of like in quarter in the this that fourth it's some. seeing some, participate the you're year-to-date, issuance of just we in the on and of can else $X capital

alternative to most for have of on issuing to of way additional my the Tier efficient of and capital efficient it's terms In comments, X are XXXX in more Banks growing, they the before equity what one a that to is markets issuer where capital. sheet bank's did of in ways we to in kind issue balance with Like do securities. said during reflection previous address balance balance particular Coupled the base sheet, terms adding of risk most their sheet. the

market there to are the -- participated during some quarter, they're securities. newcomers this the kind risk market -- most in come issue have that way to to is rightsize conditions, given finding profile their of is -- are some of efficient to have additional deals, So they us alternative we capital and their

Bryce Rowe

Okay. That's helpful. And maybe one for question me. more

sale Just now think individual repayment portfolio. of this asset you the larger risk securities the considering within to within about -- to the wondering the your kind CLO. repayment I'm here, -- to of or relative the -- the your how core portfolio

Sanjai Bhonsle

Sure.

we anything we're didn't in anything repayment XQ of out of the -- acceleration see XQ an or terms not in seeing So ordinary to in during risk, repayment. believe there's that

background. I little fairly bit a that's more say. would just And something is this so kind give average, And you of

invested of position. see for million, here. more about then we I And expect we we $XXX think a million sale from growth CLO the was we of QX ended of It to was constant, QX, $XXX net that QX that to we a decent are balance amount do looking And at things all with -- deals. that -- $XXX and QX was to of assets. up in million and related really

QX. And cetera of so all from things more than an income additive constant. kind et perspective, Again,

Bryce Rowe

All answering the Well, right. in terms the see questions, it. and you good of the thank for progress originations. all to Got continued

Sanjai Bhonsle

support. Yes. and thank much, Well, you thank very your for you

Bryce Rowe

Welcome.

Operator

Your the from with line question. Ryan proceed your JMP next question comes Securities. of with Devin Please

Devin Ryan

Great. you? How are Sanjai. Hi, Pat. Hi,

Sanjai Bhonsle

doing? Good. How are you

Pat Farrell

Hi, there.

Devin Ryan

been a just credit. want moment to Most questions have but I spend asked, on

I and about an and in that Sanjai, where opportunities bit. gap if vaccine. second how scenario you're a could topical here. are looking could things But talk from at you some we moment the kind this pricing about about it more that if is between just thinking think, shutdown perspective also is portfolio that at, creates a system, now And and a think of stress there that the the the the given just the bridging you of in area create

Sanjai Bhonsle

Sure.

So I'll pleasantly the defaults. to done but the to that. relates your relatively to credit answer how a perspective, short as that the has it of is I surprised part add question, think are From little color we actually, space credit a last yes, all more speaking, well

perspective, market to I be look benefit the XX%. under at, March I you're of and that to street lot primarily. a came right? high combined a so market, we're the And fairly main leveraged April, estimates think And generally loan like stimulus speaking, were from back in the think high. And to say, yield if everybody, with in going

they rates expect another seen we the build going about where going what there, again think that story shutdowns, the expect a support cautiously because are consumer to again, from Then before, we COVID, forward. stimulus we added And small or see is perspective, businesses. come default through. of we were play recovery prolonged again, -- will we've out the we forward So, and I -- to see, that if optimistic we

again, talking of So of have all lot that's our all XXXX. where of kind made banks, is. -- the -- pointing to And head reserves to for banks and kind a have increased the

optimistic question. again, so hope so answered about -- We your I I and are we. it. And they're cautiously

Devin Ryan

because And maybe of Sanjai. Thanks, a then, this up is terrific. that's Yeah, conversations. in client my lot a coming follow-up, just

through changes if say, administration regulatory It's on moment Biden create Or some doesn't it maybe to moment? to red progressive outcome at extent, a of -- the the any scenarios numerous lot one But, that likely. feel a opportunities? easier and I'm this or you agenda a even it that push to impact I and there's is feel of the in front, administration. see close change. curious, think not that could be financials, focused Just too probably could going the or early very the that, given maybe issue just election that and at just on have to the senate area an legislative could Democratic that, how is like

Sanjai Bhonsle

as I relates point. having this Yeah. like of little bank are said monitoring that, we what taxes cetera. the also, from more things progressive And split other say, the but discussions then, dampen the at hearing, initially think it But it's then, maybe would on seems a pointing regulations I early, are too Congress, probably it to some kind our to obviously it's next, would economy. be agenda, say, The towards, which focus in is markets, say, right? et going the

Devin Ryan

Yeah.

question congrats taking be to determined. and quarter. Well, a good guys you on terrific the Okay, thank

Sanjai Bhonsle

you. Thank

Pat Farrell

Thank you.

Operator

Bhonsle and we back question-and-answer reached Ladies gentlemen, have Sanjai turn to And of Mr. the to session. end remarks. like the call the for would closing I

Sanjai Bhonsle

with in to Thank conference to not healthy your speaking happy And next Thank obviously in you, I we you season. look touch year-end and all call. quarter's holiday a just during all good for want I and you, event, you listening. did And to everyone appreciate operator. all StoneCastle. we base forward Thank prior wish night. interest

Pat Farrell

Goodnight.

Operator

today's This conference. concludes

Thank you You your disconnect. participation. may for now

ArrowMark Financial (BANX) 12 Nov 202020 Q3 Earnings call transcript