CALFIRST BANCORP REPORTS DECLINE IN THIRD QUARTER EARNINGS DUE TO
LOWER NON-INTEREST INCOME AND INTEREST RATES

IRVINE, CALIFORNIA, April 25, 2012 -- California First National Bancorp (NASDAQ: CFNB; "CalFirst Bancorp") today announced that net earnings for the third quarter ended March 31, 2012 decreased 42% to $2.1 million from net earnings of $3.7 million for the third quarter of fiscal 2011. For the nine months ended March 31, 2012, net earnings of $6.7 million were 21% below the $8.4 million reported for the first nine months of fiscal 2011. Diluted earnings per share for the third quarter of fiscal 2012 were down 43% to $0.20 per share, compared to $0.35 per share for the third quarter of the prior year. Diluted earnings per share for the first nine months of fiscal 2012 of $0.64 were 21% below the $0.81 per share reported for the same period of the prior fiscal year.

Total direct finance, loan and interest income for the third quarter of fiscal 2012 decreased 17% to $5.8 million compared to $6.9 million during the third quarter of the prior year. The decrease was primarily due to a 13% decrease in direct finance income and 28% decrease in commercial loan income. The $575,000 decrease in direct finance income related to a 9% increase in the average investment in leases while the average yield earned declined by 164 basis points. Commercial loan income decreased by $405,000 as the average yield declined 81 basis points on average balances that decreased 16% to $85.0 million compared to $101.7 million for the third quarter of the prior year. Investment income also declined due to a 1% drop in average investment balances to $63.5 million and a 103 basis point reduction in yields. During the third quarter of fiscal 2012, interest expense on deposits and borrowings decreased by $245,000 to $636,000, reflecting a 3% increase in average deposit and borrowing balances to $251.9 million, offset by a 43 basis point decrease in average interest rates paid to 1.01%. For the third quarter of fiscal 2012, the Company did not record an allowance for credit losses, compared to a $250,000 provision during the third quarter of fiscal 2011. The lack of provision in the third quarter of fiscal 2012 reflects growth of only 1% in the lease and loan portfolio during the quarter along with an overall risk profile that held steady. All of these factors combined for an 11% decrease in net direct finance, loan and interest income after provision for credit losses to $5.1 million.

Non-interest income for the third quarter of fiscal 2012 declined to $1.4 million from $3.2 million the year before. This decline was principally due to a $1.2 million decline in the gain on sale of leased property during the quarter and no gains recognized on the sale of investment securities in the current period as compared to a $940,000 investment gain recognized in the third quarter ended March 31, 2011. As a result, gross profit of $6.5 million for the third quarter ended March 31, 2012 was down 28% from $9.0 million for the third quarter of fiscal 2011.

For the first nine months of fiscal 2012, total direct finance, loan and interest income of $17.8 million was down 8% from $19.4 million for the first nine months of the prior year. This decrease was primarily due to a $1.3 million decline in income from the commercial loan portfolio during the nine months ended March 31, 2012 as average commercial loan balances of $86.7 million were down 7% and the average yield decreased 150 basis points to 4.9%. Direct finance income for the first nine months of fiscal 2012 was down 1% as a 13% increase in the average investment in leases to $233.1 million was offset by a decline in the average yield earned by 103 basis points to 7.0%. Investment income for the first nine months of fiscal 2012 was down 5% as a decline in average yield by 54 basis points to 4.6% offset a 5% increase in average investment balances to $66.0 million. For the nine months ended March 31, 2012, interest expense on deposits and borrowings decreased by $343,000 to $2.3 million, reflecting a 16.6% increase in average balances offset by a 39 basis point decrease in average rates paid to 1.14%. For the first nine months of fiscal 2012, the Company did not record a provision for credit losses, compared to a provision of $1,025,000 in fiscal 2011. The large provision during the first nine months of fiscal 2011 was largely due to significant growth in the commercial loan portfolio to $97 million at March 31, 2011, which has since been reduced to $85.0 million at March 31, 2012.

Non-interest income of $4.6 million for the first nine months of fiscal 2012 declined 35% from $7.0 million in the first nine months of fiscal 2011. The first nine months of fiscal 2011 included gains from the sale of investment securities of $2.3 million, compared to $55,500 during the first nine months of fiscal 2012. Excluding the gains realized on the sale of investment securities from both periods, non-interest income for the nine months ended March 31, 2012 would be down only 4%, as income from lease transactions reaching the end of term was relatively unchanged between the periods. As a result of the foregoing, gross profit of $20.1 million for the first nine months of fiscal 2012 was 12% lower than $22.7 million earned in the nine months ended March 31, 2011.