Commenting on the results, Patrick E. Paddon, President and Chief Executive Officer, indicated, "First quarter results reflect the benefit of steps taken to take advantage of investment and commercial loan opportunities over the past year, while at the same time balancing the risks and rewards of such opportunities. The investment gains realized during the quarter were directly related to opportunistic acquisitions made during the market turmoil of a year ago. Based on the recent strength in the market, we believed it was an appropriate time to rebalance our portfolio. Notwithstanding the sale of some investments, the Company increased its investment in marketable securities to $125.9 million at September 30, 2009 from $119.6 million at June 30, 2009 and $31.9 million at September 30, 2008. The new investments made during the quarter primarily have included investment grade corporate bonds.

"Lease bookings during the first quarter of fiscal 2010 of $19.3 million were light, 53% below the $41.3 million booked in the same period of the prior year, and with commercial loans booked of $3.6 million, down from $10.8 million, total loan and lease assets booked in the quarter declined 56%. As a result, the net investment in leases and loans of $265.7 million at September 30, 2009 is down 7% from June 30, 2009, but 2% above the level at September 30, 2008. For the first quarter of fiscal 2010, lease originations were 29% greater than during the first quarter of fiscal 2009, but with no new loan commitments, total originations were down 16%. At September 30, 2009, property acquired for transactions in process of $30.5 million was up substantially from $12.4 million at June 30, 2009 and only slightly below the level of a year ago. The backlog of approved lease and loan commitments stood at $93 million, just slightly below a year ago and up 16% from June 30, 2009.

"At a meeting today, the Board of Directors of CFNB approved a change in the Company's dividend policy to provide for one annual dividend payment to be made in lieu of the quarterly dividends that have been paid over the past few years. The first annual dividend was declared in the amount of $.48 per share to be paid on December 16, 2009 to shareholders of record on December 1, 2009. The Board will continue to review its dividend policy on an ongoing basis, and the decision to pay dividends in 2010 will be determined at such time."

California First National Bancorp is a bank holding company with leasing and bank operations based in Orange County, California. California First Leasing Corporation leases and finances capital assets through a centralized marketing program designed to offer cost-effective alternatives. California First National Bank is an FDIC-insured national bank that gathers deposits using telephone, the Internet, and direct mail from a centralized location, and provides lease financing and commercial loans to businesses and organizations nationwide.

This press release contains forward-looking statements, which involve management assumptions, risks and uncertainties. The statements in this press release that are not strictly historical in nature constitute "forward-looking statements." Such statements include expectations regarding growth in direct finance income and lease and loan bookings. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that could cause actual results to be different from the results expressed or implied by such forward-looking statements. Consequently, if such management assumptions prove to be incorrect or such risks or uncertainties materialize, the Company's actual results could differ materially from the results forecast in the forward-looking statements. All forward-looking statements are qualified in their entirety by this cautionary statement, and the Company undertakes no obligation to revise or update this press release to reflect events or circumstances arising after the date hereof. For further discussion regarding management assumptions, risks and uncertainties, readers should refer to the Company's 2009 Annual Report on Form 10-K.

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