California First National Bancorp (CFNB, Financial) filed Quarterly Report for the period ended 2010-12-31.
California First National Bancorp has a market cap of $150.44 million; its shares were traded at around $14.66 with a P/E ratio of 16.29 and P/S ratio of 4.31. The dividend yield of California First National Bancorp stocks is 6.82%. California First National Bancorp had an annual average earning growth of 4.3% over the past 5 years.
New lease bookings during the second quarter of fiscal 2011 were $69.2 million, 27% ahead of the prior year level and included $27.3 million of lease purchases. Commercial loans booked in the second quarter of fiscal 2011 of $30.7 million were up from $300,000 booked in the second quarter of the prior year and contributed to the total loan and lease assets booked in the quarter increasing 69% to $92.8 million. As a result, the net investment in leases and loans of $333.4 million at December 31, 2010 was up 29% from the balance at June 30, 2010. New direct lease originations for the second quarter of fiscal 2011 were up 10% from the second quarter of the prior year and combined with new loan and lease purchase commitments, total originations more than doubled. For the six months ended December 31, 2010, total originations were up 80% from the same period of the prior year. The backlog of approved lease commitments of $75.6 million is 18% greater than a year ago. In addition, there were loan commitments of $19.8 million at December 31, 2010 related to unfunded commitments on revolving lines of credit.
During the first six months of fiscal 2011, the average investment in commercial loans increased by 25% and contributed to a 54% growth in commercial loan income to $3.0 million. Of the consolidated investment in commercial loans at December 31, 2010, CalFirst Bank holds $100 million, or 93%. During the second quarter ended December 31, 2010, the Bank's primary regulator advised the Bank that the scope and volume of its commercial loan business exceeds the forecast provided in July 2006 and therefore is a deviation from the Bank's business plan approved in September 2006. While the Bank does not agree that it deviated significantly from forecasts submitted to its regulator in 2008 and 2009, the Bank has submitted an updated plan and request for no objection to its continued development of the commercial loan portfolio. As of the date hereof, the Bank has not received the regulator's written determination of no objection to the Bank's revised plan. As a result, the ability of the Bank to continue to expand its commercial loan portfolio is unclear and may be subject to restrictions imposed by its regulator. The Company cannot predict when or how this issue may be resolved, or what if any further action it might take. Of the 28 loans in the Bank's commercial loan portfolio, all are current in their payments to the Bank and all are rated as pass credits, except for three loans that are rated substandard and account for 10% of the portfolio.
Summary -- For the second quarter ended December 31, 2010, net earnings of $3.1 million remained flat compared to the second quarter ended December 31, 2009. For the first six months of fiscal 2011, net earnings of $4.8 million decreased $1.8 million, or 27.0%, compared to the first six months of fiscal 2010. Diluted earnings per share were $0.30 per share for both the second quarter of fiscal 2011 and fiscal 2010. For the six months ended December 31, 2010, diluted earnings per share of $0.46 decreased 27.5%, compared to $0.64 per shared for the same prior year period.
Net direct finance, loan and interest income was $5.7 million for the quarter ended December 31, 2010, a $326,000, or 6.1%, increase compared to the same quarter of the prior year. Total direct finance, loan and interest income for the second quarter ended December 31, 2010 decreased 1.4% to $6.5 million from $6.6 million earned during the second quarter of fiscal 2010. The decrease was primarily due to a $472,000 or 10% decrease in direct finance income due to lower yields together with a 31% decline in investment income due mainly to lower investment balances. These declines were offset by a 75% increase in commercial loan income that reflected a 41% growth in average loan balances and 128 basis point improvement in average yield. During the second quarter of fiscal 2011, interest expense paid on deposits and borrowings decreased by $419,000 or 33% reflecting a 4% decrease in average balances to $231.2 million and a 64 basis point drop in average interest rates paid to 1.50%.
For the six months ended December 31, 2010, net direct finance, loan and interest income was $10.7 million, a $669,000 or 5.9% decrease from the $11.3 million earned during the same period of the prior year. Total direct finance, loan and interest income for the first six months of fiscal 2011 decreased 12.1% to $12.4 million. Direct finance income and investment income declined by $1.7 million and $1.1 million, respectively, which was offset by a $1.1 million increase in commercial loan income. The 18% decrease in direct finance income reflected a 155 basis point drop in average rates to 7.9% and a $3.1 million decrease in average balances to $199.1 million. The 40% decline in investment income reflected a $42.5 million decrease in the average investment in cash and investments to $129.2 million, and a 65 basis point drop in the average yields earned to 2.47%. The 54% increase in commercial loan income for the first six months of fiscal 2011 was the result of a 25% increase in average balances to $90.2 million and a 126 basis point increase in the average yield to 6.7%. For the six months ended December 31, 2010, interest expense on deposits and borrowings decreased by $1.0 million or 37% to $1.8 million, reflecting a 64 basis point decrease in interest rates paid on average balances that decreased by 11% from the year before to $227.1 million.
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California First National Bancorp has a market cap of $150.44 million; its shares were traded at around $14.66 with a P/E ratio of 16.29 and P/S ratio of 4.31. The dividend yield of California First National Bancorp stocks is 6.82%. California First National Bancorp had an annual average earning growth of 4.3% over the past 5 years.
Highlight of Business Operations:
Net earnings of $3.1 million for the second quarter ended December 31, 2010 were unchanged from the second quarter of the prior year. During the second quarter of fiscal 2011, the average investment in commercial loans increased by 41% and contributed to a 75% growth in commercial loan income to $1.7 million. This increase in loan income and higher income from the re-lease or sale of leased property was offset by lower direct finance and investment income and smaller investment gains.New lease bookings during the second quarter of fiscal 2011 were $69.2 million, 27% ahead of the prior year level and included $27.3 million of lease purchases. Commercial loans booked in the second quarter of fiscal 2011 of $30.7 million were up from $300,000 booked in the second quarter of the prior year and contributed to the total loan and lease assets booked in the quarter increasing 69% to $92.8 million. As a result, the net investment in leases and loans of $333.4 million at December 31, 2010 was up 29% from the balance at June 30, 2010. New direct lease originations for the second quarter of fiscal 2011 were up 10% from the second quarter of the prior year and combined with new loan and lease purchase commitments, total originations more than doubled. For the six months ended December 31, 2010, total originations were up 80% from the same period of the prior year. The backlog of approved lease commitments of $75.6 million is 18% greater than a year ago. In addition, there were loan commitments of $19.8 million at December 31, 2010 related to unfunded commitments on revolving lines of credit.
During the first six months of fiscal 2011, the average investment in commercial loans increased by 25% and contributed to a 54% growth in commercial loan income to $3.0 million. Of the consolidated investment in commercial loans at December 31, 2010, CalFirst Bank holds $100 million, or 93%. During the second quarter ended December 31, 2010, the Bank's primary regulator advised the Bank that the scope and volume of its commercial loan business exceeds the forecast provided in July 2006 and therefore is a deviation from the Bank's business plan approved in September 2006. While the Bank does not agree that it deviated significantly from forecasts submitted to its regulator in 2008 and 2009, the Bank has submitted an updated plan and request for no objection to its continued development of the commercial loan portfolio. As of the date hereof, the Bank has not received the regulator's written determination of no objection to the Bank's revised plan. As a result, the ability of the Bank to continue to expand its commercial loan portfolio is unclear and may be subject to restrictions imposed by its regulator. The Company cannot predict when or how this issue may be resolved, or what if any further action it might take. Of the 28 loans in the Bank's commercial loan portfolio, all are current in their payments to the Bank and all are rated as pass credits, except for three loans that are rated substandard and account for 10% of the portfolio.
Summary -- For the second quarter ended December 31, 2010, net earnings of $3.1 million remained flat compared to the second quarter ended December 31, 2009. For the first six months of fiscal 2011, net earnings of $4.8 million decreased $1.8 million, or 27.0%, compared to the first six months of fiscal 2010. Diluted earnings per share were $0.30 per share for both the second quarter of fiscal 2011 and fiscal 2010. For the six months ended December 31, 2010, diluted earnings per share of $0.46 decreased 27.5%, compared to $0.64 per shared for the same prior year period.
Net direct finance, loan and interest income was $5.7 million for the quarter ended December 31, 2010, a $326,000, or 6.1%, increase compared to the same quarter of the prior year. Total direct finance, loan and interest income for the second quarter ended December 31, 2010 decreased 1.4% to $6.5 million from $6.6 million earned during the second quarter of fiscal 2010. The decrease was primarily due to a $472,000 or 10% decrease in direct finance income due to lower yields together with a 31% decline in investment income due mainly to lower investment balances. These declines were offset by a 75% increase in commercial loan income that reflected a 41% growth in average loan balances and 128 basis point improvement in average yield. During the second quarter of fiscal 2011, interest expense paid on deposits and borrowings decreased by $419,000 or 33% reflecting a 4% decrease in average balances to $231.2 million and a 64 basis point drop in average interest rates paid to 1.50%.
For the six months ended December 31, 2010, net direct finance, loan and interest income was $10.7 million, a $669,000 or 5.9% decrease from the $11.3 million earned during the same period of the prior year. Total direct finance, loan and interest income for the first six months of fiscal 2011 decreased 12.1% to $12.4 million. Direct finance income and investment income declined by $1.7 million and $1.1 million, respectively, which was offset by a $1.1 million increase in commercial loan income. The 18% decrease in direct finance income reflected a 155 basis point drop in average rates to 7.9% and a $3.1 million decrease in average balances to $199.1 million. The 40% decline in investment income reflected a $42.5 million decrease in the average investment in cash and investments to $129.2 million, and a 65 basis point drop in the average yields earned to 2.47%. The 54% increase in commercial loan income for the first six months of fiscal 2011 was the result of a 25% increase in average balances to $90.2 million and a 126 basis point increase in the average yield to 6.7%. For the six months ended December 31, 2010, interest expense on deposits and borrowings decreased by $1.0 million or 37% to $1.8 million, reflecting a 64 basis point decrease in interest rates paid on average balances that decreased by 11% from the year before to $227.1 million.
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