CFNB SECOND QUARTER EARNINGS OF $1.8 MILLION DOWN 12%,
LEASE AND LOAN PORTFOLIO INCREASES 11%

IRVINE, CALIFORNIA, January 23, 2013 -- California First National Bancorp (NASDAQ: CFNB; "CalFirst Bancorp") today announced net earnings of $1.8 million for the second quarter ended December 31, 2012, a decline of 12% from net earnings of $2.1 million for the second quarter of fiscal 2012. For the six months ended December 31, 2012, net earnings were down 26% to $3.3 million from $4.6 million for the first six months of fiscal 2012. Diluted earnings per share in the second quarter of fiscal 2013 of $0.17 were down 12% from $0.20 from the second quarter of fiscal 2012, while diluted earnings per share of $0.32 for the first six months of fiscal 2013 were down 27% from $0.44 per share for the same period of fiscal 2012.

The decline in net earnings during the second quarter and first six months of fiscal 2013 is largely due to lower direct finance income resulting from a drop in average yields earned that during the second quarter more than offset the benefit of a 17% growth in the lease portfolio, 25% decline in interest expense and 7% decline in non-interest expenses.

Total direct finance, loan and interest income for the second quarter of fiscal 2013 decreased 11% to $5.3 million from $5.9 million during the second quarter of the prior year. A $631,000, or 15%, decline in direct finance income reflected a 17% increase in average investment in leases that offset a 194 basis point decline in average yield to 5.07%. Interest expense paid on deposits and borrowings during the second quarter of fiscal 2013 decreased by $205,000, or 25%, reflecting a 26 basis point drop in average interest rates paid to .89% and a 4% decrease in average balances. For the second quarter of fiscal 2013 and 2012, the Company did not record an allowance for credit losses. The lack of provision in 2013 is due to an improvement in the credit metrics as the growth in the portfolio is largely related to higher rated credits. All of these factors led to a $470,000, or 9%, decrease in net direct finance and interest income after provision for credit losses to $4.6 million.

Total non-interest income of $1.2 million for the second quarter of fiscal 2013 was down 5% from $1.3 million for the same period of the prior year primarily due to lower income realized from the sale of property on leases reaching the end of term during the period.

Total direct finance, loan and interest income for the first six months of fiscal 2013 decreased 12% to $10.6 million due to a $1.1 million decrease in direct finance income and a decrease in investment income of $290,000. During the first six months of fiscal 2013, the average investment in leases increased 15% to $263.2 million while the average yield earned decreased by 179 basis points to 5.29%. Commercial loan balances of $88.1 million with an average yield of 4.9% were relatively unchanged from the first six months of fiscal 2012. The utilization of cash to invest in leases brought average cash and investment balances down 27% to $118 million and increased the average yield by 26 basis points to 2.30% for the six months ended December 31, 2012. For the six months ended December 31, 2012, interest expense on deposits and borrowings decreased by $516,000 or 30.5% to $1.2 million, reflecting a 31 basis point decrease in average rates paid on average balances that decreased by 6% to $261.6 million. For the first six months of fiscal 2013, the Company recorded a provision for credit losses of $275,000, compared to no provision recorded in fiscal 2012. The provision during the first six months of fiscal 2013 was due to deterioration in the credit of one large lease position during the first quarter and is consistent with the 11% growth in the lease and loan portfolio during the period.

Total non-interest income of $2.2 million for the first six months of fiscal 2013 was down 30% from $3.2 million during the comparable period of fiscal 2012. Fiscal 2012 non-interest income included the contribution of $1.8 million of income realized from leases that extended as compared to the first six months of fiscal 2013 that included comparable income of $994,000. The decrease in non-interest income is also attributed to lower income realized from the sale of property on leases reaching the end of term during the period.