Financial Services, owned by Humboldt Bancorp, is Very Much In Business.
your leasing news report of today, you are clearly irresponsible in your reporting
of Humboldt Bank closing Bancorp Financial Services as our law firm just informed
you. Bancorp Financial Services is in the process of diluting Some or all of Humboldt
Banks interest in Bancorp due to the regulatory issues associated with being part
of a bank. Accounting rules dictate that we must be accounted for as a discontinued
operation during the course of the dilution/sale as the CFO of Humboldt Bank just
informed you. Now I would like to inform you that prior to reporting issues that
disrupt business, please know the facts prior to writing headlines that are absolutely
bogus. Your retraction of misinformation is anticipated.
Bancorp Financial Services
Yes, we make errors. The New York Times has a whole
section devoted to errors they make on a daily basis, as most papers do, and being
a one man band who doesn't see too well, there are typo's and errors. We try not
to make them, but they happen. We strive to be accurate, but sometimes we are
on the "leading edge" of a story. Our batting average has been very good, I hope.
Please believe me when I say we have the leasing industry at heart.
News would like to apologize for confusing the situation with other information
we have received. We were not able to reach Kevin Cochrane and took the press
release literally. We were working on a story about Bancorp Financial Services
at the time. We apologize for our misinterpretation. It was an honest mistake
and in no manner was intended to be disrespectful or malicious.
the record straight: When Humboldt Bancorp merged with Tehama Bancorp they became
the sole owner of Bancorp Financial Services, which Humboldt chose not to retain
for many reasons, including capitalization needs and regulatory concerns.
accounting purposes, they can wind down the operation and take several years to
wind down the operation, as Advanta Leasing apparently is doing, or they can list
the company for sale and have one year to sell it. Humboldt elected to list Bancorp
Financial Services for sale, and for accounting purposes, "... classified BFS
as a discontinued operation effective March 31, 2001. Humboldt Bancorp recognized
a loss on discontinued operations of $1.1 million, net of tax, for the first quarter
2001 and is reporting its investment in BFS as an unconsolidated subsidiary held
As reported for Humboldt Bancorp, "Net operating income, which
excludes non-recurring charges, for the first quarter 2001 was $2.9 million, an
increase of 88% over the first quarter of 2000. The return on average assets and
return on average stockholders' equity for the first quarter 2001, based on net
operating income, were 1.40% and 16.2%, respectively. Humboldt's reported financial
results for prior periods have been restated for the merger with Tehama Bancorp,
which was completed on March 9, 2001, and accounted for as a pooling of interests."
Stating again, Bancorp Financial Services is for sale, is in business
as an ongoing and operating unit, and we apologize for taking wording of the statement
Kit Menkin, editor/publisher