California First National Bancorp (CFNB, Financial) filed Annual Report for the period ended 2010-06-30.
California First National Bancorp has a market cap of $128.1 million; its shares were traded at around $12.53 with a P/E ratio of 11.6 and P/S ratio of 3.7. The dividend yield of California First National Bancorp stocks is 4.8%.
CalFirst Leasing and CalFirst Bank provide leasing and financing to customers throughout the United States and across a breadth of industries and disciplines, including commercial, industrial and financial companies, as well as government and non-profit entities. The average size of lease transaction booked during fiscal 2010 was approximately $468,000, compared with $398,000 during fiscal 2009. One customer accounted for 27% of the property cost subject to leases booked during fiscal 2010, but historically no lessee has represented more than 5% of leases booked in any one year. Leases primarily are originated directly through a centralized marketing program and direct delivery channels. The marketing program includes a confidential database of current and potential users of business property, a training program to introduce new marketing employees to leasing, and an in-house computer and telecommunication systems. The marketing programs have been augmented through the expanded use of web sites and the Internet to identify and communicate with potential customers. Prospect management software is utilized to enhance the productivity of the sales effort. Specific information about potential customers is entered into a confidential database accessible to sales professionals and their managers that allows them to efficiently focus on the most likely purchaser or lessee of capital assets. The prospect management system and an integrated in-house telecommunications system permit sales management to monitor account executive activity, daily prospect status and pricing information. The ability to monitor account activity and offer immediate assistance in negotiating or pricing a transaction makes it possible to be responsive to customers and prospects.
During the fiscal years ended June 30, 2010, 2009 and 2008, 85%, 87% and 92%, respectively, of the total dollar amount of new leases completed by the Company s subsidiaries were retained in the Company s portfolios, with 14%, 12% and 8% for fiscal years 2010, 2009 and 2008, respectively, of such leases discounted to unaffiliated financial institutions. Approximately 34% of the new leases booked by CalFirst Leasing were assigned to CalFirst Bank for both fiscal 2010 and 2009. Pursuant to bank regulations, no more than 50% of CalFirst Leasing s leases originated can be purchased by CalFirst Bank. CalFirst Bank funded one lease from an unaffiliated third party during fiscal 2010.
The table below present the discounted minimum lease payments receivable (“Net Lease Receivable") related to leases retained in the Company s portfolios at June 30, 2010, 2009 and 2008, respectively. Of the Bank s Net Lease Receivable, approximately 67%, 65% and 62%, respectively, represented leases originated directly by the Bank.
CalFirst Leasing and the Bank often make payments to purchase leased property prior to the commencement of the lease. The disbursements for such lease transactions-in-process are generally made to facilitate the property implementation schedule of the lessees. The lessee generally is contractually obligated to make rental payments during the period that the transaction is in process, and obligated to reimburse CalFirst Leasing or the Bank for all disbursements under certain circumstances. Income is not recognized while a transaction is in process and prior to the commencement of the lease. At June 30, 2010, 2009, and 2008, the Company s total investment in property acquired for transactions-in-process amounted to $26.8 million, $12.4 million and $29.0 million, respectively. Of such amounts, approximately 86%, 53% and 70%, respectively, for each year related to CalFirst Leasing, with the balance held by CalFirst Bank.
Commercial loans accounted for 25% of the Company s net investment in leases and loans at June 30, 2010. CalFirst Bank s commercial loan portfolio consists primarily of purchased participations in syndicated transactions originated by other financial institutions, with approximately 19% of the loan portfolio the result of a direct origination effort. Direct loan origination is targeted primarily to existing Bank and CalFirst Leasing relationships. These commercial loans are a complementary product leveraging existing relationships and extending customer longevity. Commercial loan products originated directly include lines of credit, term loans and commercial mortgages, and generally will be secured by a first priority filing on the customer s assets, including accounts receivable and inventory, capital equipment or commercial real estate, but unsecured loans or lines of credit will be considered, depending on the nature of the credit. Commercial loans originated directly have terms from five to ten years, and priced with both fixed or floating rates. Commercial loans directly originated as of June 30, 2010 ranged in amount from approximately $1.0 to $6.3 million.
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California First National Bancorp has a market cap of $128.1 million; its shares were traded at around $12.53 with a P/E ratio of 11.6 and P/S ratio of 3.7. The dividend yield of California First National Bancorp stocks is 4.8%.
Highlight of Business Operations:
At June 30, 2010, leases accounted for 75% of the Company s net investment in leases and loans. The Company leases and finances most capital assets used by businesses and organizations, with a focus on high technology systems and other mission critical assets. The leases are structured individually and can accommodate a variety of our customers objectives. In addition to computer systems and networks, property leased includes automated manufacturing and distribution management systems, production systems, printing presses and warehouse distribution systems. Telecommunications systems include digital private branch equipment and switching equipment as well as voice over Internet protocol (“VoIP”) systems, wireless networks and satellite tracking systems. Retail point-of-sale and inventory tracking systems often integrate computers, scanners and software. Other electronic equipment leased includes ultrasound and medical imaging systems, computer-based patient monitoring systems, testing equipment, and copying equipment. In addition, the Company leases a wide variety of non-high technology property, including oil and gas production equipment, machine tools, school buses, trucks, exercise equipment and office and dormitory furniture. Of the leases booked in fiscal 2010, approximately 30.3% involved oil and gas production equipment, 27.6% computer equipment and software, 15.1% manufacturing equipment, 9.4% furniture and fixtures, and 5.8% transportation, with the balance including yellow, medical and test equipment, point of sale and office equipment.CalFirst Leasing and CalFirst Bank provide leasing and financing to customers throughout the United States and across a breadth of industries and disciplines, including commercial, industrial and financial companies, as well as government and non-profit entities. The average size of lease transaction booked during fiscal 2010 was approximately $468,000, compared with $398,000 during fiscal 2009. One customer accounted for 27% of the property cost subject to leases booked during fiscal 2010, but historically no lessee has represented more than 5% of leases booked in any one year. Leases primarily are originated directly through a centralized marketing program and direct delivery channels. The marketing program includes a confidential database of current and potential users of business property, a training program to introduce new marketing employees to leasing, and an in-house computer and telecommunication systems. The marketing programs have been augmented through the expanded use of web sites and the Internet to identify and communicate with potential customers. Prospect management software is utilized to enhance the productivity of the sales effort. Specific information about potential customers is entered into a confidential database accessible to sales professionals and their managers that allows them to efficiently focus on the most likely purchaser or lessee of capital assets. The prospect management system and an integrated in-house telecommunications system permit sales management to monitor account executive activity, daily prospect status and pricing information. The ability to monitor account activity and offer immediate assistance in negotiating or pricing a transaction makes it possible to be responsive to customers and prospects.
During the fiscal years ended June 30, 2010, 2009 and 2008, 85%, 87% and 92%, respectively, of the total dollar amount of new leases completed by the Company s subsidiaries were retained in the Company s portfolios, with 14%, 12% and 8% for fiscal years 2010, 2009 and 2008, respectively, of such leases discounted to unaffiliated financial institutions. Approximately 34% of the new leases booked by CalFirst Leasing were assigned to CalFirst Bank for both fiscal 2010 and 2009. Pursuant to bank regulations, no more than 50% of CalFirst Leasing s leases originated can be purchased by CalFirst Bank. CalFirst Bank funded one lease from an unaffiliated third party during fiscal 2010.
The table below present the discounted minimum lease payments receivable (“Net Lease Receivable") related to leases retained in the Company s portfolios at June 30, 2010, 2009 and 2008, respectively. Of the Bank s Net Lease Receivable, approximately 67%, 65% and 62%, respectively, represented leases originated directly by the Bank.
CalFirst Leasing and the Bank often make payments to purchase leased property prior to the commencement of the lease. The disbursements for such lease transactions-in-process are generally made to facilitate the property implementation schedule of the lessees. The lessee generally is contractually obligated to make rental payments during the period that the transaction is in process, and obligated to reimburse CalFirst Leasing or the Bank for all disbursements under certain circumstances. Income is not recognized while a transaction is in process and prior to the commencement of the lease. At June 30, 2010, 2009, and 2008, the Company s total investment in property acquired for transactions-in-process amounted to $26.8 million, $12.4 million and $29.0 million, respectively. Of such amounts, approximately 86%, 53% and 70%, respectively, for each year related to CalFirst Leasing, with the balance held by CalFirst Bank.
Commercial loans accounted for 25% of the Company s net investment in leases and loans at June 30, 2010. CalFirst Bank s commercial loan portfolio consists primarily of purchased participations in syndicated transactions originated by other financial institutions, with approximately 19% of the loan portfolio the result of a direct origination effort. Direct loan origination is targeted primarily to existing Bank and CalFirst Leasing relationships. These commercial loans are a complementary product leveraging existing relationships and extending customer longevity. Commercial loan products originated directly include lines of credit, term loans and commercial mortgages, and generally will be secured by a first priority filing on the customer s assets, including accounts receivable and inventory, capital equipment or commercial real estate, but unsecured loans or lines of credit will be considered, depending on the nature of the credit. Commercial loans originated directly have terms from five to ten years, and priced with both fixed or floating rates. Commercial loans directly originated as of June 30, 2010 ranged in amount from approximately $1.0 to $6.3 million.
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