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California First National Bank (In Organization)

FEDERAL DEPOSIT INSURANCE CORPORATION

IN RE: California First National Bank (In Organization)
Santa Ana, California
Application for Federal Deposit Insurance (Bank Insurance Fund)

ORDER

The undersigned, acting under delegated authority, has fully considered all facts and information relevant to the factors of Section 6 of the Federal Deposit Insurance Act relating to the application for Federal deposit insurance for California First National Bank (the bank), a proposed new national bank to be headquartered at 5 Hutton Center Drive, Suite 250, Santa Ana, Orange County, California, and has concluded that the application should be approved.

Accordingly, it is hereby ORDERED, for the reasons set forth in the attached Statement, that the application submitted by the bank for federal deposit insurance be, and the same hereby is, approved subject to the following conditions:

1. That beginning paid-in-capital funds of not less than $20,000,000 shall be provided. Additionally, a ratio of Tier 1 Leverage Capital to total assets of not less than eight percent shall be maintained throughout the first three years of operation and that an adequate allowance for loan and lease losses will be provided;

2. That any changes in proposed management or proposed ownership (10 percent or more of stock), including new acquisitions of, or subscriptions to 10 percent or more of stock, will render this commitment null and void unless such proposal is approved by the Regional Director of the FDIC's San Francisco Regional Office ("Regional Director") prior to opening of the bank;

3. That Federal deposit insurance shall not become effective unless and until the applicant has been established as a National bank, that it has authority to conduct a banking business, and that its establishment and operation as a bank have been fully approved by appropriate Federal authorities;

4. That Amplicon, Inc., an existing publicly traded company and proposed Bank Holding Company, obtain approval from the Federal Reserve Bank to acquire voting stock control of the bank prior to its opening;

5. That if deposit insurance has not become effective within twelve months from the date of the ORDER, or unless, in the meantime a request for an extension of time has been approved by the FDIC, the consent granted shall expire at the end of the said twelve-month period; and

6. That until the date that this conditional commitment for deposit insurance becomes effective, the FDIC shall have the right to alter, suspend, or withdraw the said commitment should any interim development be deemed to warrant such action.

Dated at Washington, D.C., this 28th day of July, 2000.

By:________________________________
John M. Lane
Associate Director
Division of Supervision


FEDERAL DEPOSIT INSURANCE CORPORATION

IN RE: California First National Bank
Santa Ana, California
Application for Federal Deposit Insurance (Bank Insurance Fund)

STATEMENT

Pursuant to the provisions of Section 5 of the Federal Deposit Insurance Act (12 U.S.C. 1815), an application for Federal deposit insurance with membership in the Bank Insurance Fund has been filed on behalf of California First National Bank ("CFNB"), a proposed new National bank to be headquartered at 5 Hutton Center Drive, Suite 250, Santa Ana, Orange County, California.

CFNB's sole shareholder will be Amplicon, Inc. (Amplicon) which is an existing publicly traded company that specializes in providing capital asset lease financing for small- to medium-sized businesses, now primarily via the Internet. Amplicon plans to file an application with the Federal Reserve Bank to become a Bank Holding Company upon preliminary charter approval. By virtue of having a National bank charter (with a wholesale designation for CRA purposes), CFNB, a "branchless bank," will be able to provide customized lease financing nationwide. The target market of the leases is in the areas of computer hardware, software, telecommunications equipment, furniture, and office machines. The funding for the lease financing will be primarily through deposit gathering through a few targeted products offered via the Internet, other on-line mediums, and specific target marketing programs. Unlike many other "branchless banks," CFNB's plan is to only gather enough on-line deposits to fund its leasing activities and does not plan to offer an unlimited product line or to focus upon achieving a high deposit market share.

For the purposes of this proposal, the investment in fixed assets is reasonable, capital is adequate, future earnings prospects are favorable, and management is considered satisfactory. No formal objections to this application have been filed with the FDIC. Corporate powers to be exercised are consistent with the purpose of the Federal Deposit Insurance Act. No undue risk to the Bank Insurance Fund is apparent.

Accordingly, based upon a careful evaluation of all available facts and information, the Associate Director, pursuant to delegated authority, has concluded that approval of the application is warranted.

ASSOCIATE DIRECTOR
DIVISION OF SUPERVISION
FEDERAL DEPOSIT INSURANCE CORPORATION



Last Updated 03/24/2011 Legal@fdic.gov