CFNB FIRST QUARTER EPS INCREASE 50% ON HIGHER LEASE INCOME

BOARD OF DIRECTORS DECLARES 2011 ANNUAL DIVIDEND
OF $1.10 PER SHARE PAYABLE DECEMBER 16, 2011

IRVINE, CALIFORNIA, October 26, 2011 -- California First National Bancorp (NASDAQ: CFNB; "CalFirst Bancorp" or the "Company") today announced net earnings of $2.5 million for the first quarter ended September 30, 2011, up 50% from $1.7 million earned during the first quarter of fiscal 2011. Diluted earnings per share for the first quarter were $0.24 as compared to $0.16 per share reported for the same period of the prior year.

The increase in net earnings from the first quarter of the prior year is largely due to a $1.2 million increase in income realized on the investment in residuals coming to end of term during the period and a 12% increase in net interest income after provision for credit losses.

Net direct finance, loan and interest income after provision for credit losses increased by $532,000, or 11%, to $5.2 million. Total direct finance, loan and interest income for the first quarter ending September 30, 2011 increased 4% to $6.1 million, compared to $5.9 million for the first quarter of fiscal 2011. This increase includes a $428,000, or 12%, increase in direct finance income related to an 18% increase in the average investment in leases while the average yield earned declined by 46 basis points. Commercial loan income decreased by $211,000 as the average yield declined 153 basis points on average balance that increased 9% to $87.9 million compared to $80.5 million for the first quarter of the prior year. The average yield on all leases and loans held in the Company's portfolio decreased 74 basis points to 6.80% while the average yield on cash and investments of 2.0% was down 39 basis points from the first quarter of fiscal 2011. Interest expense paid on deposits and borrowings decreased 4% due to lower average interest rate paid of 1.26%, down 39 basis points from 1.65% during the comparable period in fiscal 2011, which offset the 26% increase in the average balance of deposits and borrowings to $280.8 million. There was a $275,000 decrease in the provision for credit losses as no provision was made during the quarter ending September 30, 2011 due to stability in the lease portfolio and an 8% decline in the commercial loan portfolio from $93.7 million at June 30, 2011 to $87.3 million at September 30, 2011.

Non-interest income for the first quarter of fiscal 2012 increased by 92% to $1.9 million from $967,000 earned during the first quarter of the prior year. Income realized on leases reaching the end of term increased by $1.2 million primarily related to one sales type lease booked in the first quarter of fiscal 2012. As a result of the foregoing, gross profit of $7.1 million for the first quarter of fiscal 2012 was up 25% from $5.7 million earned during the first quarter of the prior year.

During the first quarter of fiscal 2012, CalFirst Bancorp's non-interest expenses increased by 3% to $3.1 million, compared to $3.0 million during the first quarter of fiscal 2011. The increase in expenses reflected slightly higher compensation expense recognized related to the sales organization.

Commenting on the results, Patrick E. Paddon, President and Chief Executive Officer, indicated, "First quarter results were largely driven by our lease activities. Lease bookings during the first quarter of fiscal 2012 of $39.7 million were up 39% from bookings in the first quarter of fiscal 2011. Due to continued restrictions on CalFirst Bank's commercial loan activities, commercial loan bookings were down to $5.2 million from $37.5 million in the prior year, and contributed to total loan and lease assets booked in the quarter ending September 30, 2011 decreasing by 32% to $44.9 million. The net investment in leases and loans of $313.1 million at September 30, 2011 is down 1% from June 30, 2011, but still 11% above the level at September 30, 2010. For the first quarter of fiscal 2012, lease originations were 10% below the first quarter of fiscal 2011 while total new loan and lease commitments were down by 49%. The backlog of approved lease commitments of $113 million was 25% below the level of a year ago, but includes $87.2 million of direct lease commitments compared to $82.5 million at September 30, 2010. We intend to continue to focus efforts on direct and third party lease activities.