CFNB FIRST QUARTER EARNINGS DOWN 38%
ON LOWER NON-INTEREST AND LEASE INCOME

IRVINE, CALIFORNIA, October 24, 2012 -- California First National Bancorp (NASDAQ: CFNB; "CalFirst Bancorp" or the "Company") today announced net earnings of $1.5 million for the first quarter ended September 30, 2012, down 38% from $2.5 million earned during the first quarter of fiscal 2012. Diluted earnings per share for the first quarter were $0.15 as compared to $0.24 per share reported for the same period of the prior year.

The decrease in net earnings from the first quarter of the prior year is largely due to a $772,000 decrease in income realized on the investment in residuals coming to end of term during the period and a 13% decrease in net interest income after provision for credit losses.

Total direct finance, loan and interest income for the first quarter ending September 30, 2012 decreased 12% to $5.4 million, compared to $6.1 million for the first quarter of fiscal 2012. This decrease includes a $488,000, or 12%, decrease in direct finance income due to a 165 basis point decline in the average yield earned that offset a 13% increase in the average investment in leases to $252.5 million. Commercial loan income decreased by $92,000 as the average yield declined 36 basis points on an average balance that was down 1% to $86.9 million. The average yield on all leases and loans held in the Company's portfolio decreased 126 basis points to 5.55%. The average yield on cash and investments of 2.3% was up 32 basis points from the first quarter of fiscal 2012 as average cash balances were reduced by 46% to $54.0 million and produced an 18% decrease in investment income to $688,000. Interest expense paid decreased 35% due to a 35 basis point decline in average rate paid to 0.91% and an 11% decrease in the average balance of deposits to $250.5 million. The Company made a $275,000 provision for credit losses for the first quarter of fiscal 2013, compared to no provision for the prior quarter ending September 30, 2011. The provision related to growth in both the lease and loan portfolios and the deterioration in the credit of one large lease position. As a result of the foregoing, net direct finance, loan and interest income after provision for credit losses decreased by $693,000, or 13%, to $4.5 million.

Non-interest income for the first quarter of fiscal 2013 decreased by 47% to $978,000 from $1.9 million in the first quarter of the prior year, primarily due to lower income realized on leases reaching the end of term. The first quarter of fiscal 2012 included the contribution of one significant sales type lease that boosted non-interest income in that period by 92%.

During the first quarter of fiscal 2013, CalFirst Bancorp's non-interest expenses decreased 2% to $3.0 million, compared to $3.1 million during the first quarter of fiscal 2012. The decrease in expenses reflected slightly lower operating expenses.

Commenting on the results, Patrick E. Paddon, President and Chief Executive Officer, indicated, "Lower yields on interest earning assets continue to hamper our ability to increase profitability in line with asset growth. First quarter lease bookings of $51.2 million were up 29% from the first quarter of fiscal 2012, while commercial loan bookings of $9.5 million were up from $5.2 million in the prior year. Total first quarter loan and lease bookings increased by 35% to $60.7 million, and contributed to a 4% growth in the net investment in leases and loans from June 30 to $349.5 million at September 30, 2012, which was 12% above the level at September 30, 2011. For the first quarter of fiscal 2013, new lease and loan originations were 9% lower than during the first quarter of fiscal 2012, As a result, the backlog of approved lease and loan commitments of $112 million was 1% below the level of a year ago."