A brief history

Throughout 2002 and 2003 there were tremendous changes in the composition of companies that once were a part of the lease financing industry. Never before had the lease financing industry experienced such a changing landscape: Mergers - Acquisitions - Bankruptcy Filings - Consolidations - Leasing Division Closures - Restructuring - Funding Sources Cutting Off Business With Lease Brokers - For Sale Signs - Lease Portfolio Sales.

One must ask the question, "What was the cause?" We believe that the principal reason for the changing landscape in the lease financing industry was the "loose" money of the 1990's. Lease financing sources (like many of the dot-coms) had access to too much easy money, which when coupled with looser credit underwriting standards, was a recipe for a financial catastrophe. But, leasing is a strong financial product - therefore, unlike a lot of dot-com businesses, some leasing companies were attractive merger/acquisition targets.

Today, because of the consolidation in the leasing industry, CalFirst Leasing's competitors are generally fewer in number, but larger in size. The lease financing industry is now comprised of: Banks, Specialty Finance Companies, Lease Brokers, Vendor-Leasing Groups and Independent 3rd Party Lessors.

So, why lease with us?

CalFirst Leasing Corporation is a wholly owned subsidiary of California First National Bancorp (Nasdaq: CFNB), which operates an FDIC-insured national bank. California First National Bancorp has over $193 million in stockholders' equity and more than $300 million in assets. Our strong balance sheet means we can access funds in financial markets at a lower cost. We pass that advantage on to our customers through lower lease rates. It also means that we've got a rock-solid financial base that you can count on for continued service whenever you may need it.