CFNBD — what changed in the latest 10-K
A section-by-section comparison of CFNBD's newest periodic SEC filing (10-K/10-Q) against the prior same-form filing: paragraphs added and removed per section, with verbatim excerpts. Purely a deterministic text diff — no similarity scores, no directional read, not investment advice.
Comparing 10-K · 2017-09-27 vs the prior 10-K · 2016-09-27
| Section | Outcome | Added | Removed | Minor | Unchanged |
|---|---|---|---|---|---|
| Business | Text added/removed | +10 | −8 | ~22 | 21 |
| Risk factors | Text added/removed | +9 | −6 | ~8 | 19 |
| Legal proceedings | No paragraph-level changes | 0 | 0 | 0 | 1 |
| MD&A | Text added/removed | +18 | −18 | ~25 | 26 |
| Market risk (Item 7A) | Text added/removed | 0 | −1 | ~2 | 2 |
Counts are paragraphs; added/removed means text added or removed vs the prior filing — no direction or judgement implied.
Representative excerpts
Up to 5 excerpts of about 300 characters per section, quoted verbatim from the two SEC filings.
Business
Text added vs the prior filing · source: 10-K · 2017-09-27
During the third quarter of fiscal 2017, CalFirst Bank was advised by the OCC to cease originating new leveraged or non-leveraged syndicated commercial loans and to take action to substantially reduce its concentration of leveraged loans. The restrictions on the Bank’s loan activities continue at th…
At June 30, 2017, leases accounted for 38% of the Company’s lease and loan portfolio, compared with 37% and 55% at June 30, 2016 and 2015, respectively. The Company leases and finances most capital assets used by businesses and organizations, with a focus on high technology systems and other mission…
The Company provides 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 educational, government and non-profit entities. The average size of the lease transactions bo…
Commercial loans of $306.0 million accounted for 62% of the Company’s net investment in leases and loans at June 30, 2017, down from $403.7 million or 63% of the Company’s investment at June 30, 2016 but up from $243.5 million, or 45% of the Company’s investment, at June 30, 2015. During fiscal 2017…
Syndicated loans have accounted for a substantial portion of the Company’s growth over the past five years, and the structure, terms and other characteristics of the loans have not changed over this period. Syndicated bank loans are almost all term loans secured by substantially all of the borrower’…
Text removed vs the prior filing · source: 10-K · 2016-09-27
At June 30, 2016, leases accounted for 37% of the Company’s lease and loan portfolio, down from 55% and 72% at June 30, 2015 and 2014, respectively. The Company leases and finances most capital assets used by businesses and organizations, with a focus on high technology systems and other mission cri…
The Company provides 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 educational, government and non-profit entities. The average size of the lease transactions bo…
Commercial loans of $403.7 million accounted for 63% of the Company’s net investment in leases and loans at June 30, 2016, an increase from $243.5 million, or 45% of the Company’s investment, at June 30, 2015 and $129.2 million, or 28% of the Company’s investment, at June 30, 2014. During fiscal 201…
Syndicated bank loans are almost all term loans secured by substantially all of the borrower’s assets, although in some cases term loans have a second lien on working capital assets and less than 100% security interest in certain foreign assets. At June 30, 2016, the Bank had one commitment on a rev…
Commercial loan transactions funded during fiscal 2016 of $238.1 million, included two direct real estate loans for $4.7 million and loan participations aggregating to $233.9 million to 55 different credits. This compared to $155.3 million through participations during fiscal 2015. Yields earned on …
Risk factors
Text added vs the prior filing · source: 10-K · 2017-09-27
Uncertain worldwide economic conditions and volatility in the currency and credit markets may negatively impact the Company and its customers. The Company’s net interest income is impacted by changes in market rates of interest, changes in credit spreads, changes in the shape of the yield curve, and…
Regulatory restrictions on the Bank’s ability to originate syndicated commercial loans may not be rescinded which could have a long term negative impact on the Company. During the third quarter of fiscal 2017, the OCC directed the Bank to cease originating new syndicated commercial loans and to take…
The Bank is subject to increased liquidity and interest rate risk as it is forced to reduce its loan portfolio. While the Bank believes it can reduce the loan portfolio in an orderly way so as to coordinate the decline with a reduction in deposits and other funding liabilities, consistent with a pru…
The Bank’s steps to reduce deposits by drastically cutting rates offered on CDs may have a long term negative effect on the Bank’s ability to raise deposits in the future. CalFirst Bank represents 94% of the Company’s assets and bank deposits exceeded $468 million, or 239% of stockholders’ equity at…
The Bank and Company continue to be subject to periodic examination by the FRB and the OCC and if the Bank were found to be operating in an unsound or unsafe manner, or in violation of any OCC directive, they could impose new or additional restrictions or requirements, including, but not limited to …
Text removed vs the prior filing · source: 10-K · 2016-09-27
Uncertain worldwide economic conditions and volatility in the currency and credit markets may negatively impact the Company and its customers. A drop in long term interest rates has resulted in flattening of the yield curve since January 2016. While the decrease in longer term interest rates increas…
The Company’s allowance for credit losses may not be adequate to cover actual losses. The Company’s subsidiaries retain approximately 90% of lease transactions and all loans in their own portfolios, which expose the Company to credit risk. The Company maintains an allowance for credit losses to prov…
The Bank’s lease purchase operations may increase the Company’s risk of losses. CalFirst Bank’s program to grow its lease portfolio through the purchase of lease receivables on a non-recourse basis from other banks and finance companies has accounted for 3% to 21% of leases booked in each of the pas…
The Company’s diversification into broader investment alternatives may increase the Company’s risk of losses. The Company’s investment portfolio includes U.S. Treasury and Agency Securities, corporate and municipal bonds and closed-end mutual funds, in addition to interest-earning deposits, short-te…
The Company may be adversely affected by significant changes in the bank deposit market and interest rates. CalFirst Bank represents 96% of the Company’s assets and bank deposits now exceed $633 million, or 331% of stockholders’ equity and up from 129% of equity five years ago. As a result, the Comp…
MD&A
Text added vs the prior filing · source: 10-K · 2017-09-27
Loans Held for Sale Loans that were originated with the intent to hold but subsequently designated as being held for sale are recorded at the lower of cost or fair value at the time of transfer to held for sale. Fair value is determined by firm purchase commitments or quoted prices and if cost excee…
Net earnings for the year ended June 30, 2017 of $11.12 million increased $2.5 million, or 28.6%, from $8.65 million reported in fiscal 2016. Fiscal 2017 pre-tax income of $18.7 million was up 33.1%, benefitting from a $1.8 million increase in net interest income after provision for credit losses an…
Summary – For the fiscal year ended June 30, 2017, net earnings of $11.12 million increased by 29% or $2.5 million from $8.65 million for fiscal 2016. Diluted earnings per share increased 30.1% to $1.08 in fiscal 2017 from $0.83 fiscal 2016. Net interest income after provision for credit losses incr…
Net interest income increased 2.5% to $22.0 million for the fiscal year ended June 30, 2017 compared to $21.5 million for fiscal 2016. Total interest income increased 5.6% to $29.2 million compared to $27.7 million in fiscal 2016. This increase was due to a $3.0 million, or 24.6%, increase in commer…
The average yield on all interest-earning assets in fiscal 2017 of 3.60% was up by 1 basis point from the prior year while the average rate paid on all interest-bearing liabilities increased by 9 basis points. The small increase in average yield, despite the benefit of accelerated finance income dis…
Text removed vs the prior filing · source: 10-K · 2016-09-27
Net earnings for the year ended June 30, 2016 of $8.65 million decreased $407,000, or 5%, from $9.05 million reported in fiscal 2015. Fiscal 2015 included a $2.7 million pre-tax gain on the settlement of claims filed in an antitrust case. Excluding the settlement claim from the prior year results, f…
Summary – For the fiscal year ended June 30, 2016, net earnings of $8.65 million decreased $407,000 compared to $9.05 million for fiscal 2015. Diluted earnings per share decreased 3.9% to $0.83 in fiscal 2016 from $0.87 fiscal 2015. Diluted earnings per share reflects the impact of the Company’s rep…
The average yield on all interest-earning assets in fiscal 2016 declined 22 basis points to 3.59% while the average rate paid on all interest-bearing liabilities increased by 11 basis points to 1.04% from 0.93% in fiscal 2015. The decline in net interest spread and margin in fiscal 2016 is largely d…
For the fiscal year ended June 30, 2015, net interest income increased 14.1% to $19.1 million compared to $16.7 million for fiscal 2014. Total interest income increased 16.5% to $23.0 million compared to $19.7 million in fiscal 2014. This increase was due to a $3.3 million, or 94%, increase in comme…
Average interest earning assets over average interest bearing liabilities 129.7% 142.3% 152.3%
Market risk (Item 7A)
Text removed vs the prior filing · source: 10-K · 2016-09-27
In addition to the consolidated gap analysis, the Bank measures its asset/liability position through duration measures and sensitivity analysis, and calculates the potential effect on earnings using maturity gap analysis. The interest rate sensitivity modeling includes the creation of prospective tw…
How to read Risk Factors (Item 1A) in a 10-Q
A 10-Q risk-factor section usually takes one of three forms; this page classifies it as one of:
- Pointer — the filer states there have been no material changes and points back to the annual 10-K risk factors; there is no own risk text to compare this quarter.
- Partial update — the filer carves out specific updated risks ("except as set forth below"); the excerpts show exactly what is new this quarter.
- Restated in full — the quarter carries the complete risk-factor text. When the prior quarter was only a pointer there is no prior full text to diff against, so the page flags the section as restated instead.
This describes the filing structure only — it is never a judgement on whether risk went up or down.
Source: text-level diff of the two SEC EDGAR filings · deterministic (no AI-generated content) · for reference only · not investment advice