Welcome to the ArrowMark Financial Corp. Q1 2022 Investor Conference Call. At this time, all participants are in a listen-only mode. [Operator Instructions] As a reminder, this conference is being recorded. I would now like to turn the call over to Julie Muraco, Investor Relations for ArrowMark Financial Corp. formerly known as StoneCastle Financial Corp.

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. ArrowMark Financial has based the forward-looking statements included in this presentation on information available to us as of March 31, 2022, unless otherwise noted. The company undertakes no duty to update any forward-looking statement made herein. In today's call, the management of ArrowMark Financial will be providing prepared remarks. Investors will have the opportunity to address their questions directly to management by calling Investor Relations at 212-468441 or e-mailing jmuraco@arrowmarkpartners.com. Now I will turn the call over to Sanjai Bhonsle.

Thank you, Julie. Good afternoon, and welcome to ArrowMark Financial's first quarter investor call for 2022. Along with Julie, here with me today is Pat Farrell, our CFO. In the next few minutes, I will briefly comment on the market environment and factors affecting the credit markets before promising on the company. Then I will provide ArrowMark Financial's quarterly results and portfolio review, and Pat will provide you with greater detail on our financial results. So to start off, the markets today are experiencing volatility as a reversal of nearly 15 years of near zero interest rates, which began during the great financial crisis come to an end. This monetary policy is in part driven by the conflation of current macro factors weighing on the market, including the Ukraine crisis and disruptive supply chains both in part driving higher inflation. With a long-term view in mind, I want to put the macro factors affecting the market into a perspective, when it comes to ArrowMark Financial Corp., and our underlying investment portfolio. We believe that our investment portfolio, which is made up of security, primarily issued by money center banks and U.S. community banks will withstand the macro factors affecting our current economy. In fact, we believe that our defensive approach based on capital preservation, income generation and earnings total risk adjusted returns, combined with approximately 70% floating rate assets allows for our investment portfolio to offer a strong inflation hedge. Our beliefs are based on the following: First, our investments are structured in a way that mitigates risk. As previously mentioned, our regulatory capital release and investments are primarily issued by center banks that are well capitalized and are also investment-grade in rating. We also deployed capital in the well-capitalized community banks, reinvestment term loans, trust preferreds and preferred securities…

Thank you, Sanjay. As I do each quarter, I will present the financial results by going through the components of the company's quarterly results in detail. The net asset value on March 31 was $21.44 per share, down $0.26 from the prior quarter. The decline in NAV in part reflects the volatility of the credit market. Now on to the breakdown of the NAV components. The NAV is comprised of four components: net investment income; realized capital gains and losses; the change in value of the portfolio's investments; and lastly, distributions paid during the period. Let's review these components. Gross income for the quarter was approximately $4.7 million or $0.66 per share. Total expenses for the quarter were $1.7 million or $0.24 per share, resulting in net investment income for the quarter of $3 million or $0.42 per share. As is the case every quarter, the timing of calls and paydowns impact the income generation of the company. Realized capital gains and losses in the quarter is the second component affecting the change in NAV. The net realized capital gains from investment activities were approximately $2.3 million or $0.32 per share. The third component, changes in unrealized appreciation or depreciation of the portfolio, relates to how the value of the entire investment portfolio has changed from the previous quarter-end to the current quarter-end. For the quarter, the change in net unrealized depreciation on investments and foreign currency transactions was approximately $4.3 million or $0.61 per share. I want to point out that gains and losses from foreign currency hedging activities do not impact our net income. Fourth component affecting the change in net asset value is distributions. The regular cash distribution for the quarter was $0.39 per share. As Sanjai mentioned, the quarterly cash distribution was up $0.01 per share…

Thank you, Pat. I’d like to thank everyone on the call for listening in today. We appreciate your continued support and hope to visit with you in your office soon. Good night.

Ladies and gentlemen, this concludes today's teleconference. You may disconnect your lines at this time. Thank you for your participation. And have a wonderful day.