California First National Bancorp

04/24/2024 | Press release | Distributed by Public on 04/24/2024 09:43

Periodic/Interim Report by Investment Company - Form N-30B-2

cfnb24q3report.htm - Generated by SEC Publisher for SEC Filing

California First Leasing Corporation

Interim Report to Shareholders

Third Quart0er and Nine Months Ended March 31, 2024

California First Leasing Corporation, (OTCQX: CFNB, "Company"), headquartered in Newport Beach, California, is an internally managed non-diversified closed-end investment company registered under the Investment Company Act of 1940, as amended. The Company retains its lease business while using equity and other investments to maximize current income and generate capital appreciation.

This interim report for the quarter and nine months ended March 31, 2024, prepared by management without audit, provides an update to the annual report for the fiscal year ended June 30, 2023. Accordingly, it does not contain all the information required to meet annual or semiannual disclosure obligations and should be reviewed in conjunction with the annual report filed with the Securities and Exchange Commission and available on the Company's website at https://www.calfirstlease.com/investor/. The Company's quarterly and year-to-date earnings and net asset value per share can fluctuate widely due to including gains and losses on equity securities that are determined based on stock prices on the last day of a fiscal quarter.

Selected Financial Data

(in thousands, except per share data)

Three Months Ended

Nine Months Ended

March 31,

March 31,

2024

2023

2024

2023

Dividend income and interest income

$

1,299

$

1,763

$

4,149

$

4,243

Net realized (loss) on securities

(1,335)

(46)

(1,591)

(2,076)

Net unrealized gain on securities

27,881

3,380

39,881

6,241

Investment income

27,845

5,097

42,439

8,408

Lease income

623

1,751

1,835

4,024

Operating expenses

678

781

2,054

2,139

Income taxes

8,125

1,348

12,020

2,190

Net income

19,665

4,719

30,200

8,103

Net asset value per share, beginning of period

$

23.99

$

21.22

$

22.61

$

20.60

Net income

2.11

0.49

3.17

0.81

Dividends paid

-

-

-

-

Net gain on share repurchase

-

-

0.32

0.30

Net Asset Value per share, end of period

$

26.10

$

21.71

$

26.10

$

21.71

Weighted common shares outstanding

9,309

9,703

9,533

10,057

Common shares outstanding, end of period

9,309

9,703

9,309

9,703

March 31,

At June 30,

Balance Sheet Data

2024

2023

2023

Cash and cash equivalents

$

31,411

$

45,453

$

43,065

Equity securities

214,752

149,569

163,653

Lease and loan assets

13,983

20,388

20,152

Total assets

260,600

216,330

227,438

Shareholders' equity

$

243,014

$

210,621

$

219,380

Equity Investment Portfolio

The investment in equity securities at March 31, 2024 and fiscal year end June 30, 2023 is summarized in four industry groups below.

(in thousands)

Unrealized

Cost Basis

Gains

(Losses)

FMV

as of March 31, 2024

Commercial / Industrial

$

88,589

$

53,901

$

(368)

$

142,122

Consumer

25,684

2,240

(4,390)

23,534

Financial

22,492

7,175

(158)

29,509

Healthcare

14,983

4,913

(309)

19,587

$

151,748

$

68,229

$

(5,225)

$

214,752

as of June 30, 2023

Commercial / Industrial

$

80,292

$

25,935

$

(5,532)

$

100,695

Consumer

28,781

2,621

(4,403)

26,999

Financial

16,476

2,234

(1,057)

17,653

Healthcare

14,983

3,323

-

18,306

$

140,532

$

34,113

$

(10,992)

$

163,653

5000 Birch Street, Suite 500, Newport Beach, California 92660

Phone: 800-496-4640949-255-0500www.calfirstlease.com

California First Leasing Corporation

Interim Report as of March 31, 2024

SCHEDULE OF INVESTMENTS

Industry-- Percent of Net Assets

Company

Shares

Market Value

Auto & Truck Dealerships-- 1.21%

Lithia Mtrs Inc

9,779

$

2,942,110

Auto Parts-- 1.41%

Allison Transmission

42,290

3,432,256

Banks - Diversified-- 4.73%

Wells Fargo & Co

106,400

6,166,944

JP Morgan Chase & Co

4,380

877,314

Bank of America Corporation

117,500

4,455,600

11,499,858

Capital Markets-- 3.99%

Goldman Sachs

23,200

9,690,408

Credit Services-- 1.58%

Credit Acceptance Corporation (1)

1,220

672,891

PayPal Holdings Inc (1)

47,100

3,155,229

3,828,120

Drug Manufacturers-- 2.96%

Bristol Myers Squibb

132,800

7,201,744

Entertainment-- 0.66%

Netflix.com Inc. (1)

2,650

1,609,425

Footwear & Accessories-- 1.47%

On Holding AG (1)

101,100

3,576,918

Healthcare Plans-- 5.10%

Cigna Corp New

30,710

11,153,565

United Health Group

2,489

1,231,308

12,384,873

Insurance - Diversified-- 0.58%

Berkshire Hathaway Inc (1)

3,364

1,414,629

Insurance - Reinsurance-- 1.27%

Everest Group LTD

7,740

3,076,650

Internet Content & Info-- 10.33%

Alphabet Inc. (1)

105,100

15,862,743

Match Group Inc (1)

68,500

2,485,180

Meta Platforms Inc

13,907

6,752,961

25,100,884

Internet Retail-- 0.15%

Alibaba Grp Hldg

4,900

354,564

Oil & Gas E & P-- 3.42%

Ovintiv Inc.

159,925

8,300,108

Oil & Gas Equip & Services-- 2.91%

Schlumberger LTD

129,000

7,070,490

Oil & Gas Integrated-- 7.69%

Exxon Mobil

160,800

18,691,392

Scientific & Technical Instruments-- 0.75%

Sensata Technologies

49,350

1,813,119

Semiconductor Equip & Materials-- 9.54%

Applied Materials

102,000

21,035,460

Teradyne Incorporated

19,000

2,143,770

23,179,230

Semiconductors-- 15.95%

Advanced Micro Devices Inc. (1)

37,100

6,696,179

Marvell Technology Inc

123,000

8,718,240

Micron Technology Inc

81,300

9,584,457

Qualcomm Inc

58,650

9,929,445

Taiwan Semiconductor Co

28,250

3,843,413

38,771,734

Specialty Business Services-- 1.96%

Global Payments Inc.

35,650

4,764,979

Specialty Chemicals-- 2.58%

Dupont De Nemours

53,940

4,135,580

Intl Flavors & Fragrance

24,750

2,128,253

6,263,832

Steel-- 2.24%

Cleveland-Cliffs Inc. (1)

239,000

5,434,860

Telecom Services-- 4.51%

Charter Communications Inc (1)

12,640

3,673,563

Verizon Communications

173,750

7,290,550

10,964,113

Thermal Coal-- 0.73%

Consol. Energy Inc

21,300

1,784,088

Tobacco-- 0.66%

British American Tobacco

52,500

1,601,250

Total-Equity Securities-- 88.37%

$

214,751,634

Bank Deposit-- 0.11%

Liberty Bank, N.A.

$

276,234

U.S. Treasuries-- 1.81%

U.S. Treasury Bill (5.33%)*

4,397,442

Money Market Mutual Funds-- 10.88%

JP Morgan Prim MMkt (5.39%)**

11,051,743

State Street Inst Liquid Rsrvs (5.41%)**

14,712,757

Goldman FSQ Money Market (5.23%)**

682,433

Total Short-term Investments-- 12.81%

$

31,120,609

Total Investments-- 101.18%

$

245,872,242

Net Assets at March 31, 2024

$

243,013,723

(1) Non-income producing security

* Weighted average yield to maturity for bill maturing on 4/04/24

** Rate is the annualized seven-day yield of the fund at period end.