ArrowMark Financial Corp. - 1578987

ArrowMark Financial Corp. - 1578987 - 2026

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number 811-22853

ArrowMark Financial Corp.

(Exact name of registrant as specified in charter)

100 Fillmore Street, Suite 325
Denver, CO 80206
(Address of principal executive offices) (Zip code)

Sanjai Bhonsle, CEO
ArrowMark Asset Management, LLC
100 Fillmore Street, Suite 325

Denver, CO 80206
(Name and address of agent for service)

Copies of Communications to:

John M. Ford, Esq.

Troutman Pepper Hamilton Sanders LLP

3000 Two Logan Square / Eighteenth and Arch Streets

Philadelphia, PA 19103-2799

(215) 981-4659

Registrant's telephone number, including area code: (303) 398-2929

Date of fiscal year end: December 31

Date of reporting period: December 31, 2025

Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policymaking roles.

A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget (“OMB”) control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 100 F Street, NE, Washington, DC 20549-1090. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.

Item 1. Reports to Stockholders.

(a)

Include a copy of the report transmitted to stockholders pursuant to Rule 30e-1 under the Act (17 CFR 270.30e-1).

The Report to Shareholders is attached herewith.

Annual Report

December 31, 2025

ARROWMARK FINANCIAL CORP.

Table of Contents

	Page
Letter to Shareholders	1
About ArrowMark Financial Corp.	3
Consolidated Schedule of Investments	7
Consolidated Statement of Assets and Liabilities	11
Consolidated Statement of Operations	12
Consolidated Statements of Changes In Net Assets	13
Consolidated Statement of Cash Flows	14
Consolidated Financial Highlights	15
Notes to Consolidated Financial Statements	17
Auditor’s Report	33
Dividends and Distributions	34
Share Price Data	36
Fee Table and Example	38
Tax Information	40
Additional Information	40
Results of Meeting of Stockholders	41
Board Approval of the Management Agreement	42
Management	45
Privacy Notice	50

This page intentionally left blank.

February 27, 2026

Dear Shareholders,

We are pleased to provide you with the enclosed annual report for ArrowMark Financial Corp. (“ArrowMark Financial” or the “Fund”) for the twelve months ended December 31, 2025.

The Fund generated a +12.54% net total return during the year, outperforming the Bloomberg High Yield, Bloomberg Aggregate, and Morningstar Leveraged Loan, which returned 8.62%, 7.30%, and 7.24%, respectively. The Fund’s investments in regulatory capital relief securities showed resilience and outperformance resulting from strong income generation from floating-rate security coupons and the strength of underlying collateral fundamentals.

Regulatory capital relief, which comprises 85% of the portfolio, set a new record in 2025 issuance.¹ The sustained, higher level of issuance underscores the increasing role of regulatory capital relief securities as a core balance sheet management tool for banks.

While our investment strategy continues to include the entire banking sector, the Fund’s new investments of $47.7 million were made in regulatory capital relief securities. All of the new investments offered attractive yields and anticipated resilience in the event of capital market and/or macroeconomic volatility. The investment team will continue to emphasize return asymmetry and diversification as they reinvest Fund principal and income.

The Fund’s Net Asset Value (“NAV”) increased year-over-year by 0.83% from $21.78 to $21.96. The Fund reports its NAV monthly, which we believe helps stabilize the stock price during periods of market volatility and creates pricing alignment with the underlying investments.

During the year, the Fund declared quarterly distributions totaling $1.80 per share, plus two special distributions totaling $0.50 per share throughout the year. Since the fourth quarter 2019, the Fund has over-earned its stated distribution rate.

Forward Outlook

We maintain a constructive view of the regulatory capital relief market and our ability to achieve the Fund’s objectives. Security return profiles remain attractive on an absolute basis and represent a material premium to traditional public and private credit markets. In addition, diversification within individual transaction collateral pools and the Fund’s regulatory capital relief holdings should mitigate the impact of any idiosyncratic credit events. Moreover, while certain asset classes struggle with return of capital, contractual coupon income, and security paydowns/legal final maturities contribute to regular distributions to investors and provide visibility into future cash flows.

On the following pages, we provide additional details on our 2025 financial and operational results. We appreciate your continued support of ArrowMark Financial. We look forward to updating you on our progress throughout the year.

As always, we are grateful for your trust and partnership in the Fund and appreciate your continued confidence as we work to deliver long-term value for our investors.

1	ArrowMark Financial Corp.\| Annual Report

Sincerely,

Sanjai Bhonsle
Chairman & CEO

¹Based on ArrowMark’s estimate of market activity.

Annual Report | ArrowMark Financial Corp.

MANAGEMENT DISCUSSION AND SUMMARY

This report provides information on the financial performance for ArrowMark Financial Corp. ("ArrowMark Financial" or the "Fund") for the year ended December 31, 2025. ArrowMark Financial (BANX) is a closed-end management investment company listed on the NASDAQ Global Select Market.

As of year-end, the Fund had total assets of $203.7 million, consisting of total portfolio investments of $196.4 million and a cash and other assets of $7.4 million. Based on total investments of $196.4 million, the portfolio investments consisted of 4% term loans, 5.9% structured debt securities, 85.7% Regulatory Capital Securities in the form of credit-linked notes (“Regulatory Capital Securities”), 0.9% trust preferred and preferred securities, 3% common stock, and 0.5% of short- term or cash and cash equivalent investments.

For the full year ended December 31, 2025, ArrowMark Financial had total investment income of $26.5 million and operating expenses of $10.2 million. This resulted in net investment income of $16.3 million or $2.29 per share based on average shares outstanding during the year. The Fund had realized and unrealized gains of $1.5 million or $0.19 per share. During the year, ArrowMark Financial declared distributions of $2.40 per share.

The fourth quarter 2025 declared dividend of $0.55 per share was comprised of a regular cash dividend of $0.45 per share and a special cash dividend of $0.10 per share. For the full year ended December 31, 2025, an investment in ArrowMark Financial resulted in a total annual return of 15.93%, including the reinvestment of distributions based on the closing market prices of ArrowMark Financial's stock.

Net Asset Value at year end, December 31, 2025, was $21.96 per share, reflecting an increase of $0.16 per share from the prior year end. This was compromised of net investment income of $2.29 per share and net realized and unrealized gains of $0.19 per share, and cash distributions declared to shareholders of $2.30 per share, including the Fund’s two special cash distributions totaling $0.50 per share.

PORTFOLIO DISCUSSION

THE PORTFOLIO

ArrowMark Financial makes long-term, non-control investments in banking-related assets including securities issued by community banks and global financial institutions for regulatory capital relief transactions which are issued by both U.S. and foreign issuers to assist a bank in managing its regulatory capital requirements.

Over the course of 2025, ArrowMark Financial purchased securities totaling $47.7 million, which consisted of ten transactions. During the same period, the Fund executed redemptions totaling $55.3 million. This was comprised of call (redemption) notices of $10.2 million in seven transactions and received paydowns and partial paydowns of approximately $45 million.

3	ArrowMark Financial Corp.\| Annual Report

As of December 31, 2025, the Fund had a total investment portfolio of $196.4 million representing 96.3% of total assets and consisting of:

Investment Type	Amount¹
Term Loans	4.0%
Structured Debt Security	5.9%
Regulatory Capital Relief Securities²	85.7%
Trust Preferred and Preferred Securities	0.9%
Common Stocks	3.0%
Money Market (Short Term Investment)	0.5%

¹	Based on Total Investments of $196.4 million
²	Regulatory Capital Securities in this category are in the form of Credit-Linked Notes

PORTFOLIO CONSIDERATIONS

ArrowMark Financial is steadfast in its pursuit of constructing a portfolio that we believe is able to generate long-term, risk-adjusted returns, primarily for income distribution. The Fund seeks to achieve this goal while maintaining high credit quality standards.

Among the factors that affect the timing of capital deployment are: (i) a bank’s timeframe to obtain internal approvals to issue, (ii) the protracted nature of mergers and acquisitions, and (iii) an approval process from government regulators which must provide final regulatory approvals for a bank merger, capital issuances and capital redemptions (refinancing).

The Fund continues to source community banking debt, trust preferred and preferred securities and, Regulatory Capital Securities in the form of credit-linked notes. Regulatory Capital Securities are issued by both U.S. and foreign bank issuers to manage their regulatory capital requirements. All of the purchase transactions in 2025 were Regulatory Capital Securities. The second largest type of investment is Structured Debt Securities, solely consisting of Community Funding 2018, LLC. Community Funding 2018, LLC is comprised of community bank debt and trust preferred or preferred securities.

INVESTMENT PROCESS

ArrowMark Financial’s investment committee is focused on delivering on what we believe to be attractive risk-adjusted returns through in-depth fundamental research with an emphasis on risk mitigation for capital preservation. The Fund conducts due diligence on pending investments in several phases, and the assessment of downside risk is integrated into each phase of the process. Sourcing investments and access to new investment opportunities are a result of the Fund’s dedication to building and maintaining strong banking relationships, as well as working with intermediaries in the banking sector. The investment team provides in-depth analysis of security structure and underlying collateral to determine the financial integrity of the institution. The investment process includes both quantitative and qualitative reviews with investment decisions made by an experienced investment team that has worked together across the spectrum of banking-related assets for over 15 years. The investment team places a high value on its relationships with the underlying bank’s management teams, and conducts regular in person or teleconference reviews, with particular focus on the bank’s local markets. The Fund’s disciplined approach to due diligence and its commitment to credit quality reflects its long-term view of creating shareholder value. The Fund believes shareholders have high regard for this dedicated and disciplined approach to portfolio construction. We expect the investment process will serve to provide predictable cash flows and stable to growing net asset value over an extended timeframe.

Annual Report | ArrowMark Financial Corp.

Under the ArrowMark Partners (“ArrowMark Partners”) platform, the breadth and the scope of personnel working on the investment portfolio and in the operations of ArrowMark Financial have been significantly expanded. We believe that the depth of expertise in banking-related assets across ArrowMark Partners platform offers a significant and intangible advantage to the Fund and to our shareholders.

Investment advice is provided to the Fund by ArrowMark Asset Management, LLC.

INVESTMENT FOCUS

ArrowMark Financial typically pursues a range of investments in a bank’s capital structure. A bank’s capital structure includes senior and subordinated debt, Regulatory Capital Securities, preferred stock, and common equity. Bank holding company senior debt can also be absorbed at the bank level and become part of the bank’s capital structure. As a lender, a bank makes senior and mezzanine loans to borrowers. A bank’s common equity and the bank’s loan loss reserves offer a capital buffer to absorb credit losses from bank loans. Under normal circumstances, ArrowMark Financial would only incur a credit loss if the bank’s common equity plus loan loss reserves were exhausted.

Conclusion

We believe that ArrowMark Financial offers investors a unique opportunity to participate in a Fund focused on investing in banking-related assets.

The Fund will continue to work diligently for our shareholders by prudently managing the investment portfolio with the capital entrusted to us. ArrowMark Financial’s investment team works meticulously to deploy capital with a long-term focus on risk-adjusted returns, capital preservation, and credit quality. The Fund is focused on executing a disciplined and rigorous investment approach in the best interest of our stakeholders. ArrowMark Financial believes these investment considerations are paramount in its stewardship, and in the value that we offer to our shareholders.

We believe the strength of the management team and the Fund’s ability to nimbly respond to market opportunities will position the Fund for growth, as well as offer an attractive yield and risk-adjusted returns.

Our mission is to create long-term value for our shareholders. We appreciate the recognition and the support over the past year, and we wish you a safe year ahead.

5	ArrowMark Financial Corp.\| Annual Report

Comparison of change in value of $10,000 investment in ArrowMark Financial Corp. vs. Bloomberg U.S. Aggregate Total Return Value Index and Bloomberg U.S. Corporate High Yield 2% Issuer Capped Index (Unaudited)

Average Annual Total Returns
	1 Year	5 Year	10 Year
ArrowMark Financial Corp.¹	15.93%	13.38%	12.64%
Bloomberg U.S. Aggregate Total Return Value Index	7.30%	(0.36)%	2.01%
Bloomberg U.S. Corporate High Yield 2% Issuer Capped Index	8.62%	4.50%	6.52%

¹     Based on market price.

The performance data quoted represents past performance and does not guarantee future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares. Current performance may be lower or higher. Performance data current to the most recent month-end may be obtained by calling Investor Relations at 877-855-3434.

The Fund intends to evaluate performance as compared to that of the Bloomberg U.S. Aggregate Total Return Value Index and the Bloomberg U.S. Corporate High Yield 2% Issuer Capped Index. The Bloomberg U.S. Aggregate Total Return Value Index is a broad-based flagship benchmark that measures the investment grade, U.S. dollar-denominated, fixed-rate taxable bond market and the Bloomberg U.S. Corporate High Yield 2% Issuer Capped Index is an index that measures the performance of high yield, non-investment grade corporate bonds, with a maximum allocation of 2% to any one issuer. References to an index over a specific period are provided for your information only and should not be considered indicative of an investment in ArrowMark Financial Corp. Note that an index is unmanaged and the information contained herein does not reflect any investment management fees or transaction costs. It is impossible to invest directly in an index.

The Fund's investment objectives, strategies, risks, charges, and expenses must be considered carefully before investing. The prospectus contains this and other important information about the Fund and may be obtained by calling 877-855-3434. Please read carefully before investing.

Annual Report | ArrowMark Financial Corp.

As of December 31, 2025

Company⁽¹⁾	Investment	# of Shares/Par Amount⁽²⁾		Fair Value⁽³⁾
Term Loans – 4.6%
Banking – 4.6%
EverBank Financial Corp.	Subordinated Term Loan, 7.50%, 9/01/2035, 144A⁽⁴⁾⁽⁵⁾	$	2,000,000	$	2,065,000
F.N.B.C. of La Grange, Inc.	Subordinated Term Loan, 6.38%, 1/01/2030⁽⁵⁾⁽⁶⁾	$	700,000		647,500
TransPecos Financial Corp.	Senior Term Loan, 9.00%, 10/01/2028⁽⁵⁾	$	4,000,000		3,600,000
Tulsa Valley Bancshares	Subordinated Term Loan, 6.38%, 12/31/2028⁽⁵⁾⁽⁶⁾	$	1,700,000		1,530,000
	Total Term Loans (Cost $8,400,000)				7,842,500
Structured Debt Security – 6.8%
Banking – 6.8%
Community Funding 2018, LLC.	Preferred Shares (Estimated effective yield 10.83%), 144A⁽⁴⁾⁽⁷⁾	$	14,860,000		11,592,286
	Total Structured Debt Securities (Cost $14,757,344)				11,592,286
Regulatory Capital Relief Securities – 98.1%
Banking – 98.1%
Absolute	Credit Linked Note, 16.84%, 10/10/2027⁽⁸⁾**	$	1,017,923		1,018,884
Algonquin	Credit Linked Note, 13.72%, 11/01/2027⁽⁹⁾⁺	$	2,788,758		2,649,872
Algonquin	Credit Linked Note, 14.47%, 11/01/2028⁽⁹⁾⁺	$	1,965,343		1,893,947
Algonquin	Guarantee Linked Note, 0.00%, 05/01/2027⁽⁵⁾⁺	$	526,153		473,538
AMF Ireland Finance 1 - Series 1	Profit Participating Note, 17.58%, 06/30/2031⁽⁵⁾⁽⁹⁾	$	6,998,551		7,489,058
AMF Ireland Finance 1 - Series 2	Profit Participating Note, 11.09%, 12/15/2029⁽⁵⁾⁽⁸⁾	$	643,846		645,652
AMF Ireland Finance 1 - Series 3	Profit Participating Note, 11.77%, 05/31/2033⁽⁵⁾⁽⁹⁾	$	3,000,000		2,996,463
AMF Ireland Finance 1 - Series 4	Profit Participating Note, 9.65%, 08/20/2029^(5)(10)	€	1,700,000		1,997,840
AMF Ireland Finance 2 - Series 2	Profit Participating Note, 15.07%, 04/19/2032⁽⁵⁾⁽⁹⁾	$	2,861,538		2,948,927
AMF Ireland Finance 2 - Series 3	Profit Participating Note, 9.61%, 05/09/2033^(5)(10)	€	5,000,000		5,899,010
AMF Ireland Finance 2 - Series 4	Profit Participating Note, 11.69%, 11/30/2031⁽⁵⁾⁽⁹⁾	$	4,000,000		4,006,272
AMF Ireland Finance 3 - Series 1	Profit Participating Note, 10.34%, 06/30/2030⁽⁵⁾⁽⁸⁾**	$	1,974,360		1,975,797
AMF Ireland Finance 3 - Series 2	Profit Participating Note, 10.33%, 12/31/2034^(5)(10)**	€	2,570,608		3,036,433
AMF Ireland Finance 3 - Series 3	Profit Participating Note, 13.73% 07/08/2032⁽⁵⁾⁽⁹⁾	$	2,000,000		1,919,137
AMF Ireland Finance 3 - Series 4	Profit Participating Note, 8.03%, 09/30/2039^(5)(10)	€	4,700,000		5,543,264
AMF Ireland Finance 4 - Series 1	Profit Participating Note, 12.56%, 10/10/2030⁽⁵⁾⁽⁹⁾**	$	2,500,000		2,531,500
AMF Ireland Finance 4 - Series 2	Profit Participating Note, 8.92%, 12/12/2033^(5)(10)	€	1,200,537		1,414,398

ArrowMark Financial Corp.| Annual Report

See Notes to financial statements.

Company⁽¹⁾	Investment	# of Shares/Par Amount⁽²⁾		Fair Value⁽³⁾
Regulatory Capital Relief Securities (continued)
Banking (continued)
AMF Ireland Finance 4 - Series 3	Profit Participating Note, 10.93%, 06/30/2033^(5)(11)	£	2,500,000	$	3,403,601
AMF Ireland Finance 4 - Series 4	Profit Participating Note, 8.52%, 11/28/2039^(5)(10)**	€	1,444,584		1,706,296
AMF Ireland Finance 4 - Series 5	Profit Participating Note, 10.74%, 02/15/2030⁽⁵⁾⁽⁹⁾	$	3,000,000		2,964,201
AMF Ireland Finance 5 - Series 1	Profit Participating Note, 11.77%, 10/21/2034⁽⁵⁾⁽⁹⁾	$	10,000,000		10,127,420
AMF Ireland Finance 5 - Series 2	Profit Participating Note, 9.98%, 12/15/2029⁽⁵⁾⁽⁸⁾	$	5,000,000		4,996,500
Auto ABS Synthetic French Loans	Credit Linked Note, 14.40%, 12/27/2030⁽¹²⁾**	€	958,501		1,131,362
Boa Vista	Credit Linked Note, 11.07%, 05/02/2043⁽¹⁰⁾**	€	1,057,785		1,247,771
Cedar	Credit Linked Note, 12.55%, 12/15/2027⁽¹⁰⁾**	€	2,079,484		2,490,719
Cedar	Credit Linked Note, 13.05%, 03/30/2030^(5)(10)**	€	2,612,639		3,187,527
CHAKRA	Credit Linked Note, 13.63%, 11/21/2027^(5)(9)+	$	3,206,404		3,019,531
Colonnade	Credit Linked Note, 16.46%, 04/30/2028⁽⁵⁾⁽⁹⁾	$	5,082,186		5,268,489
Colonnade	Credit Linked Note, 16.18%, 11/30/2029⁽⁵⁾⁽⁹⁾	$	7,009,653		7,476,451
Colonnade	Credit Linked Note, 16.98%, 12/15/2029⁽⁵⁾⁽⁹⁾	$	4,590,913		4,809,063
Colonnade	Credit Linked Note, 16.32%, 04/30/2030⁽⁵⁾⁽⁹⁾	$	9,154,459		9,666,889
CRAFT	Credit Linked Note, 0.00%, 04/30/2028, 144A⁽⁴⁾⁽⁵⁾	$	270,544		243,489
CRAFT	Credit Linked Note, 15.94%, 11/28/2030, 144A^(4)(5)(9)	$	4,962,156		5,160,980
CRAFT	Credit Linked Note, 12.64%, 02/21/2031, 144A^(4)(5)(13)	$	2,478,103		2,905,105
CRAFT	Credit Linked Note, 13.47%, 11/21/2031, 144A^(4)(5)(9)	$	10,000,000		10,442,870
FCT Colisee	Credit Linked Note, 10.03%, 07/07/2033⁽¹⁰⁾⁺	€	925,466		1,082,312
Future Ready Chakra	Credit Linked Note, 12.10%, 12/15/2029⁽⁹⁾⁺	$	4,466,667		4,388,946
LOFT	Credit Linked Note, 11.69%, 02/28/2030, 144A^(4)(5)(9)	$	2,726,486		2,862,830
LOFT	Credit Linked Note, 23.19%, 02/28/2030, 144A^(4)(5)(9)	$	6,068,815		6,925,520
Mespil	Credit Linked Note, 14.31%, 12/08/2031⁽⁵⁾⁽⁹⁾**	$	2,096,518		1,257,911
Muskoka	Credit Linked Note, 0.00%, 11/01/2027⁽⁵⁾⁺	$	15,438		13,894
Nansa	Credit Linked Note, 0.00%, 04/05/2026⁽⁵⁾**	€	307,685		121,278
Nightingale LF	Credit Linked Note, 14.72%, 04/01/2028^(5)(11)**	£	2,000,000		2,695,900
Pymes Magdalena	Credit Linked Note, 8.00%, 03/20/2050⁽¹⁰⁾**	€	1,272,601		1,471,033
Salisbury	Credit Linked Note, 14.47%, 06/16/2027⁽¹¹⁾⁺	£	5,030,793		6,689,663
Salisbury	Credit Linked Note, 13.48%, 03/20/2028^(5)(11)+	£	607,567		844,391
Salisbury	Credit Linked Note, 13.97%, 04/17/2028^(5)(11)+	£	3,707,920		5,249,744
Salisbury	Credit Linked Note, 0.00%, 04/17/2028⁽⁵⁾⁺	£	17,352		19,881
Terra	Credit Linked Note, 11.93%, 09/25/2029⁽⁹⁾**	$	3,273,213		3,238,353
Waterloo	Credit Linked Note, 13.96%, 05/25/2031⁽⁵⁾⁽⁹⁾**	$	2,700,000		2,733,750
	Total Regulatory Capital Relief Securities (Cost $162,302,255)				168,283,662

See Notes to financial statements.

Annual Report | ArrowMark Financial Corp.

Company⁽¹⁾	Investment	# of Shares/Par Amount⁽²⁾		Fair Value⁽³⁾
Trust Preferred and Preferred Securities – 1.0%
Banking – 1.0%
Fidelity Federal Bancorp	Fixed Rate Cumulative Perpetual Preferred Stock, Series A - 9%^(5)(14)(15)	$	2,789,000	$	1,673,400
Fidelity Federal Bancorp	Fixed Rate Cumulative Perpetual Preferred Stock, Series B - 9%^(5)(15)(16)	$	200,000		120,000
	Total Trust Preferred and Preferred Securities (Cost $3,004,203)				1,793,400
Common Stocks – 3.4%
Banking – 3.4%
U.S. Bancorp.	Common Stock		110,100		5,874,936
	Total Common Stocks (Cost $5,075,370)				5,874,936
	Total Long-Term Investments (Cost $193,539,172)				195,386,784
Money Market Fund – 0.6%
Morgan Stanley Institutional Liquidity Funds - Treasury Portfolio	Institutional Share Class - Money Market Mutual Fund (MSUXX) 3.62%		968,661		968,661
	Total Money Market Fund (Cost $968,661)				968,661
	Total Investments (Cost $194,507,833)^(17)(18) — 114.5%				196,355,445
	Other Assets and Liabilities, Net — (14.5)%⁽¹⁹⁾				(24,813,050	)
	Total Net Assets — 100.0%*			$	171,542,395

Company⁽¹⁾	Investment	# of Contracts⁽²⁾		Fair Value⁽³⁾
Call Options Written – (1.0%)
Banking – (1.0%)
U.S. Bancorp.	U.S. Bancorp., Notional amount $4,128,750, Exchange; NASDAQ, Expires 1/15/2027, Strike Price $37.50		1,101	$	(1,767,105	)
	Total Call Options Written (Premiums received $1,154,991)			$	(1,767,105)

⁽¹⁾	Except with respect to Community Funding 2018, LLC ("CF 2018"), we do not "control" and are not an "affiliate" of any of our investments, as such terms are defined under the Investment Company Act. We may be deemed to control and be an affiliate of CF 2018 because we are the sole member of such entity.
⁽²⁾	Par Value in USD, GBP, or EUR.
⁽³⁾	Fair Value is determined in good faith in accordance with the Company’s valuation policy and is reviewed and accepted by the Company’s Board of Directors.
⁽⁴⁾	Securities are exempt from registration under Rule 144A of the Securities Act of 1933.
⁽⁵⁾	Investments determined using significant unobservable inputs (Level 3). The value of such securities is $ 150,616,700 or 87.80% of net assets.
⁽⁶⁾	The estimated effective yield including structuring fees paid annually through maturity of 2030 and 2028, respectively, is 9.60%.
⁽⁷⁾	The preferred shares are considered an equity position. Equity investments are entitled to recurring distributions which are generally equal to the remaining cash flow of the payments made by the underlying company’s securities less contractual payments to debt holders and company expenses. The estimated effective yield indicated is based upon a current projection of the amount and timing of these recurring distributions and the estimated amount of repayment of principal upon termination. Such projections are periodically reviewed and adjusted as needed. The estimated effective yield may ultimately not be realized.
⁽⁸⁾	Floating rate note: 30 Day Average SOFR + minimum of 6.10%
⁽⁹⁾	Floating rate note: 90 Day Average SOFR + minimum of 6.50%
⁽¹⁰⁾	Floating rate note: 3M EURIBOR (Floored at 0%) + minimum of 6.00%
⁽¹¹⁾	Floating rate note: SONIA + minimum of 7.20%
⁽¹²⁾	Floating rate note: 1M EURIBOR + minimum of 12.50%
⁽¹³⁾	Floating rate note: 3M SOFR + minimum of 8.76%
⁽¹⁴⁾	As of December 31, 2025, this investment has deferred, undeclared and compounding dividends of $632,683 that will be recognized by ArrowMark Financial Corp. once they are declared by Fidelity Federal Bancorp.
⁽¹⁵⁾	Non-income producing securities
⁽¹⁶⁾	As of December 31, 2025, this investment has deferred, undeclared and compounding dividends of $45,370 that will be recognized by ArrowMark Financial Corp. once they are declared by Fidelity Federal Bancorp.
⁽¹⁷⁾	As of December 31, 2025, the tax cost basis of investment securities was $194,507,833. The gross unrealized appreciation over tax cost was $8,701,852 and gross unrealized depreciation under tax cost was $6,854,240. Net unrealized depreciation of tax cost under value was $1,847,612.
⁽¹⁸⁾	Cost values reflect accretion of original issue discount or market discount, and amortization of premium.
⁽¹⁹⁾	Includes $25,200,000 in bank loans from Texas Capital Bank.
*	Substantially all of the companies portfolio assets are pledged in respect of the Credit Facility (see note 7).
**	Held in Marshall Holdings Limited II.

ArrowMark Financial Corp.| Annual Report

See Notes to financial statements.

⁺	Held in Marshall Holdings Limited III.

ABS	Asset-Backed Security
EUR	Euro
EURIBOR	Euro London Interbank Offered Rate
GBP	British Pound
SOFR	Secured Overnight Financing Rate
SONIA	Sterling Overnight Interbank Average Rate
USD	United States Dollar

Affiliated Investments
		Net	Net Increase
		Realized	(Decrease) in
Investments in and advances to Affiliates (as per	Shares/Principal	Gain/Loss	Unrealized	Interest	12/31/2025
210.12-14) for Period Ended 12/31/2025	Amount*	for Period	Appreciation	Received	Value
Security Name
Community Funding 2018, LLC., Preferred shares, 10.83%*	$14,860,000	$–	$319,898	$1,295,757	$11,592,286

*The balance at the beginning of the period was $14,860,000. During the period the Fund made no additions or sales of the position and received no paydowns.

Additional Information

The following is a listing of the underlying unsecured loans that were made by Community Funding 2018, LLC.

Bank Name		Principal Amount	State
Big Poppy Holdings, Inc.	$	9,000,000	California
Delmar Bancorp		4,500,000	Maryland
Fidelity Federal Bancorp		8,000,000	Indiana
First Bancshares, Inc.		10,000,000	Mississippi
Halbur Bancshares		3,000,000	Iowa
Vintage Bancorp		1,650,000	Kansas
Total	$	36,150,000

See Notes to financial statements.

Annual Report | ArrowMark Financial Corp.

Consolidated Statement of Assets and Liabilities As of December 31, 2025


Assets
Unaffiliated investments in securities, at fair value (Cost $179,750,489)	$	184,763,159
Affiliated investments in securities, at fair value (Cost $14,757,344)		11,592,286
Cash		437,741
Foreign Cash (Cost $1,810,140)		1,813,165
Receivable for investments sold		846,747
Interest and dividends receivable		3,428,332
Prepaid assets		868,390
Total assets		203,749,820

Liabilities
Options written, at value (Premiums received $1,154,991)		1,767,105
Loan payable (Note 7)		25,200,000
Dividends payable		3,514,676
Investment advisory fees payable		890,937
Excise tax payable (Note 5)		234,481
Loan interest payable		169,183
Accrued expenses payable		431,043
Total liabilities		32,207,425

Net Assets	$	171,542,395

Net assets consist of:
Common stock, at par ($0.001 per share)	$	7,810
Paid-in capital

SEC Form N-CSR filed by ArrowMark Financial Corp.