California First National Bancorp (CFNB, Financial) filed Quarterly Report for the period ended 2009-09-30.
California First National Bank is a FDIC-insured national bank that gathers deposits using telephone, the Internet and direct mail from a centralized location and will lease capital assets to businesses and organizations and provide business loans to fund the purchase of assets leased by third parties. California First National Bancorp has a market cap of $121.2 million; its shares were traded at around $11.9 with a P/E ratio of 11.1 and P/S ratio of 3.2. The dividend yield of California First National Bancorp stocks is 4.1%.
New lease bookings of $19.3 million for the first quarter of fiscal 2010 were down 53%, and with commercial loans boarded of $3.6 million combined for a 56% decrease in loan and lease assets booked of $22.8 million during the three months ended September 30, 2009, compared to $52.1 million for the first three months of fiscal 2009. As a result, the net investment in leases and loans of $265.7 million at September 30, 2009 decreased 6.7% from June 30, 2009 but was up 2.4% from the balance at September 30, 2008. During the first quarter of fiscal 2010, lease originations were 29% greater than the level of the first quarter of fiscal 2009, but with no new loan commitments, total originations were down 16%. As a result, at September 30, 2009 the backlog of approved lease and loan commitments of $93 million is just slightly below a year ago and up 16% from June 30, 2009.
The Company s portfolio of investment securities increased to $125.9 million at September 30, 2009 from $119.6 million at June 30, 2009, and compared to $31.9 million at September 30, 2008. The increase during the first quarter of fiscal 2010 primarily related to the acquisition of corporate bonds and unrealized gains within the portfolio that were offset in part by the sale of approximately $15 million of trust preferred securities for the gain noted above.
Summary -- For the first quarter ended September 30, 2009, net earnings of $3.5 million increased 93% compared to the first quarter ended September 30, 2008. Diluted earnings per share of $.34 for the first quarter of fiscal 2010 were up 105% from $.16 for the first quarter of fiscal 2009. Earnings per share comparisons benefited from the Company s August 2008 purchase of 1.3 million shares of common stock that contributed to a 6% reduction in fully diluted average shares outstanding for the quarter.
Net direct finance, loan and interest income was $6.0 million for the quarter ended September 30, 2009, an $895,000, or 17.6% increase compared to the same quarter of the prior year. Total direct finance, loan and interest income for the first quarter ended September 30, 2009 increased 12.5% to $7.5 million from $6.7 million earned during the first quarter of fiscal 2009. The increase was primarily due to a $1.0 million increase in investment income earned on average total cash and investment balances that increased to $186.7 million from $76.4 million. The average yield on cash and investments of 3.4% increased 51 basis points as compared to the first quarter of fiscal 2009, but was down from 4.1% earned during the fourth quarter of fiscal 2009. Commercial loan income increased $281,000 on an average loan portfolio that was up 64% to $73.3 million. Direct finance income decreased $474,000 due to a 6% decline in the average net investment in leases and a 30 basis point decline in yield. The average yield in leases and loans held in the Company s own portfolio decreased 82 basis points to 8.7%. During the first quarter of fiscal 2010, interest expense paid on deposits and FHLB and FRB borrowings decreased by $57,000 or 3.6% reflecting a 71% increase in average deposit balances to $274.3 million that was offset by a 174 basis point drop in average interest rates paid. During the first quarter, CalFirst Bank s borrowings under Federal Home Loan Bank and Federal Reserve Bank lines remained at $45.4 million at an average cost of 0.74%, and reduced its total average funding cost to 2.25% for the three months ended September 30, 2009 compared to 3.99% for the first quarter of fiscal 2009.
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California First National Bank is a FDIC-insured national bank that gathers deposits using telephone, the Internet and direct mail from a centralized location and will lease capital assets to businesses and organizations and provide business loans to fund the purchase of assets leased by third parties. California First National Bancorp has a market cap of $121.2 million; its shares were traded at around $11.9 with a P/E ratio of 11.1 and P/S ratio of 3.2. The dividend yield of California First National Bancorp stocks is 4.1%.
Highlight of Business Operations:
Net earnings for the first quarter ended September 30, 2009 were up 93% to $3.5 million from $1.8 million for the first quarter of fiscal 2009. The significant improvement in net earnings for the first quarter of fiscal 2010 is primarily due to a $1.7 million gain on the sale of investment securities, and also included a $1.0 million increase in interest income earned on the investment portfolio as well as a $732,000 reduction in selling, general and administrative expenses.New lease bookings of $19.3 million for the first quarter of fiscal 2010 were down 53%, and with commercial loans boarded of $3.6 million combined for a 56% decrease in loan and lease assets booked of $22.8 million during the three months ended September 30, 2009, compared to $52.1 million for the first three months of fiscal 2009. As a result, the net investment in leases and loans of $265.7 million at September 30, 2009 decreased 6.7% from June 30, 2009 but was up 2.4% from the balance at September 30, 2008. During the first quarter of fiscal 2010, lease originations were 29% greater than the level of the first quarter of fiscal 2009, but with no new loan commitments, total originations were down 16%. As a result, at September 30, 2009 the backlog of approved lease and loan commitments of $93 million is just slightly below a year ago and up 16% from June 30, 2009.
The Company s portfolio of investment securities increased to $125.9 million at September 30, 2009 from $119.6 million at June 30, 2009, and compared to $31.9 million at September 30, 2008. The increase during the first quarter of fiscal 2010 primarily related to the acquisition of corporate bonds and unrealized gains within the portfolio that were offset in part by the sale of approximately $15 million of trust preferred securities for the gain noted above.
Summary -- For the first quarter ended September 30, 2009, net earnings of $3.5 million increased 93% compared to the first quarter ended September 30, 2008. Diluted earnings per share of $.34 for the first quarter of fiscal 2010 were up 105% from $.16 for the first quarter of fiscal 2009. Earnings per share comparisons benefited from the Company s August 2008 purchase of 1.3 million shares of common stock that contributed to a 6% reduction in fully diluted average shares outstanding for the quarter.
Net direct finance, loan and interest income was $6.0 million for the quarter ended September 30, 2009, an $895,000, or 17.6% increase compared to the same quarter of the prior year. Total direct finance, loan and interest income for the first quarter ended September 30, 2009 increased 12.5% to $7.5 million from $6.7 million earned during the first quarter of fiscal 2009. The increase was primarily due to a $1.0 million increase in investment income earned on average total cash and investment balances that increased to $186.7 million from $76.4 million. The average yield on cash and investments of 3.4% increased 51 basis points as compared to the first quarter of fiscal 2009, but was down from 4.1% earned during the fourth quarter of fiscal 2009. Commercial loan income increased $281,000 on an average loan portfolio that was up 64% to $73.3 million. Direct finance income decreased $474,000 due to a 6% decline in the average net investment in leases and a 30 basis point decline in yield. The average yield in leases and loans held in the Company s own portfolio decreased 82 basis points to 8.7%. During the first quarter of fiscal 2010, interest expense paid on deposits and FHLB and FRB borrowings decreased by $57,000 or 3.6% reflecting a 71% increase in average deposit balances to $274.3 million that was offset by a 174 basis point drop in average interest rates paid. During the first quarter, CalFirst Bank s borrowings under Federal Home Loan Bank and Federal Reserve Bank lines remained at $45.4 million at an average cost of 0.74%, and reduced its total average funding cost to 2.25% for the three months ended September 30, 2009 compared to 3.99% for the first quarter of fiscal 2009.
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