CALIFORNIA FIRST LEASING CORP

California First National Bancorp is a bank holding company headquartered in Orange County, California. The company operates through its bank subsidiary, California First National Bank (CalFirst Bank), and its leasing subsidiary, California First Leasing Corp (CalFirst Leasing). The primary business of the company is secured financing, which includes leasing and financing capital assets, commercial loans acquired through participation in the syndicated commercial loan market, providing non-recourse loans to third parties secured by leases and equipment, and direct commercial loans. CalFirst Bank is responsible for substantially all lease and loan origination, gathers deposits by posting rates on the Internet, and conducts all banking and other operations from one central location. The company has shifted from primarily leasing equipment to a broader commercial lending program, with commercial loans accounting for 53% of bookings in fiscal 2017 and 68% in fiscal 2016. As of June 30, 2017, the company had total assets of $715.6 million, a 19% decrease from the prior year, leases and loans of $496.8 million, total deposits of $468.6 million, and stockholders' equity of $196.1 million. Its regulatory capital ratios at June 30, 2017, were 33.1% Tier 1 capital, 34.3% total capital, and 26.0% Tier 1 leverage capital. During the third quarter of fiscal 2017, CalFirst Bank was advised by the OCC to stop originating new leveraged or non-leveraged syndicated commercial loans and to significantly reduce its concentration of leveraged loans. Due to these ongoing restrictions, the company has not originated any loans since January 2017.