----

----

| [X]    | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934                                                                                                                                                                                                                                                                                                                                                                                                   |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | For the fiscal year ended                                         June 30, 2010                                 |

| [   ] | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|----------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                 | For the transition period from                                            to                                        |

| California                                                     | 33-0964185                           |
|----------------------------------------------------------------|--------------------------------------|
| (State or other jurisdiction of Incorporation or organization) | (I.R.S. Employer Identification No.) |

| Registrant's telephone number, including area code:  | (949) 255-0500 |
|-----------------------------------------------------------|----------------|

|  Title of Each Class    | Name of Each Exchange on Which Registered |
|------------------------------|-------------------------------------------|
| Common Stock, $.01 par value | The NASDAQ Stock Market LLC               |

----

----

| PART I     |                                                                                  | PAGE             |
|------------|---------------------------------------------------------------------------------------|------------------|
|       |                                                                                  |             |
| Item 1.    | Business                                                                              |   2-11 |
| Item 1A.   | Risk Factors                                                                          | 11-14            |
| Item 1B.   | Unresolved Staff Comments                                                             |   14   |
|       |                                                                                  |             |
| Item 2.    | Properties                                                                            | 15               |
|       |                                                                                  |             |
| Item 3.    | Legal Proceedings                                                                     | 15               |
|       |                                                                                  |             |
| Item 4.    | Submission of Matters to a Vote of Security Holders                                   |  15         |
|       |                                                                                  |             |
| PART II    |                                                                                  |             |
|       |                                                                                  |             |
| Item 5.    | Market for Company's Common Equity and Related Stockholder Matters and                |             |
|       | Issuer Purchases of Equity Securities                                                 |  15-16      |
|       |                                                                                  |             |
| Item 6.    | Selected Financial Data                                                               | 17               |
|       |                                                                                  |             |
| Item 7.    | Management's Discussion and Analysis of Financial Condition and Results of Operations | 18-28            |
|       |                                                                                  |             |
| Item 7A.   | Quantitative and Qualitative Disclosures About Market Risk                            | 28-29            |
|       |                                                                                  |             |
| Item 8.    | Financial Statements and Supplementary Data                                           | 30-52            |
|       |                                                                                  |             |
| Item 9.    | Changes in and Disagreements with Accountants on Accounting and Financial Disclosure  | 53               |
| Item 9A.   | Controls and Procedures                                                               | 53               |
| Item 9B.   | Other Information                                                                     | 53               |
|       |                                                                                  |             |
| PART III   |                                                                                  |             |
|       |                                                                                  |             |
| Item 10.   | Directors, Executive Officers and Corporate Governance                                | 54               |
|       |                                                                                  |             |
| Item 11.   | Executive Compensation                                                                | 54               |
|       |                                                                                  |             |
| Item 12.   | Security Ownership of Certain Beneficial Owners and Management                        |             |
|       | and Related Stockholder Matters                                                       | 54               |
|       |                                                                                  |             |
| Item 13.   | Certain Relationships and Related Transactions, and Director Independence             | 54               |
|       |                                                                                  |             |
| Item 14.   | Principal Accountant Fees and Services                                                | 54               |
|       |                                                                                  |             |
| PART IV    |                                                                                  |             |
|       |                                                                                  |             |
| Item 15.   | Exhibits and Financial Statement Schedules                                            | 54-55            |
|       |                                                                                  |             |
| Signatures |                                                                                  | 56               |

----

----

----

| (dollars in thousands)         |   | Years ended June 30, |    |
|--------------------------------|--------|----------------------|---------|
|                           |   | 2010                 |    |   | 2009 |   |   | 2008 |   |
|                           |   | Net Lease            |    |   | Percent of |   |   | Net Lease |   |   | Percent of |   |   | Net Lease |   |   | Percent of |   |
|                           |   | Receivable           |    |   | Total |   |   | Receivable |   |   | Total |   |   | Receivable |   |   | Total |   |
| California First National Bank |   | $                    | 115,971 |   |   |   | 65% |   |   | $ | 128,447 |   |   |   | 63% |   |   | $ | 124,537 |   |   |   | 59% |   |
| California First Leasing       |   | $                    | 63,153  |   |   |   | 35% |   |   | $ | 75,454 |   |   |   | 37% |   |   | $ | 85,437 |   |   |   | 41% |   |

----

----

----

----

----

----

----

----

----

----

----

|           |   | For the years ended |   |
|----------------|--------|---------------------|--------|
|           |   | June 30, 2010       |   |   | June 30, 2009 |   |
|           |   | High                |   |   | Low |   |   | High |   |   | Low |   |
| First Quarter  |   | $                   | 12.88  |   |   | $ | 11.01 |   |   | $ | 12.13 |   |   | $ | 9.16 |   |
| Second Quarter |   |                | 13.21  |   |   |   | 10.76 |   |   |   | 11.31 |   |   |   | 6.61 |   |
| Third Quarter  |   |                | 13.47  |   |   |   | 12.31 |   |   |   | 9.10 |   |   |   | 6.92 |   |
| Fourth Quarter |   | $                   | 13.76  |   |   | $ | 11.73 |   |   | $ | 12.93 |   |   | $ | 6.65 |   |

----

|                               |   |      | Total number |           |                                         |                                         |                   |   Maximum number of |
|------------------------------------|--------|-----------|--------------|----------------|----------------------------------------------|----------------------------------------------|------------------------|-------------------------------|
|                               |   |      | of shares    |           | Average price                                |                                         | shares that may yet be |
| Period                             |   | Purchased |         | Paid per share |                                         | Purchased under the plan                     |
|                               |   |      |         |           |                                         |                                         |                   |                          |   |
| April 1, 2010 - April 30, 2010     |   | -         |         |           | $       - |                                         |                   | 368,354                       |
| May 1, 2010 – May 31, 2010   |   | -         |         |           | $       - |                                         |                   | 368,354                       |
| June 1, 2010 – June 30, 2010 |   | -         |         |           | $       - |                                         |                   | 368,354                       |
|                               |   |      | -            |           |                                         | $       - |                   |                          |   |

|   Plan category                                           |   | Number of shares of common stock to be issued upon exerciseof outstanding options (1) |   | Weighted average exercise price ofoutstanding options |   | Number of shares of common stock remaining available for future issuance under equity compensation plans(excluding shares in first column) |
|---------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------|--------|-------------------------------------------------------|--------|--------------------------------------------------------------------------------------------------------------------------------------------|
| Equity compensation plans   approved by shareholders |   |  219,722                                                                         |   |  $7.90                                           |   |  1,605,260                                                                                                                            |
| Equity compensation plans  not approved by shareholders   |   |      None                                                    |   |    N/A                                 |   |          N/A                                                                                  |
| Total                                                               |   |  219,722                                                                         |   | $7.90                                                 |   |        1,605,260  (1)                                                                              |
|                                                                |   |                                                                                  |   |                                                  |   |                                                                                                                                       |

| (1)   | The maximum number of shares that may be issued under the equity compensation plan increases each year by an amount equal to 1% of the total number of issued and outstanding shares of Common Stock as of June 30 of the fiscal year immediately preceding such fiscal year. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| INCOME STATEMENT DATA                                                      |   | YEARS ENDED JUNE 30, |   |
|----------------------------------------------------------------------------|--------|----------------------|--------|
|      (in thousands, except per share amounts)     |   | 2010                 |   |   | 2009 |   |   | 2008 |   |   | 2007 |   |   | 2006 |   |
|                                                                       |   |                 |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Direct finance and loan income                                             |   | $                    | 22,064 |   |   | $ | 25,236 |   |   | $ | 25,927 |   |   | $ | 24,846 |   |   | $ | 18,861 |   |
| Interest and investment income                                             |   |                 | 4,722  |   |   |   | 4,626 |   |   |   | 1,914 |   |   |   | 2,057 |   |   |   | 1,329 |   |
|    Total direct finance, loan and interest income           |   |                 | 26,786 |   |   |   | 29,862 |   |   |   | 27,841 |   |   |   | 26,903 |   |   |   | 20,190 |   |
| Interest expense on deposits and borrowings                                |   |                 | 4,864  |   |   |   | 6,617 |   |   |   | 5,735 |   |   |   | 4,706 |   |   |   | 2,593 |   |
|    Net direct finance, loan and interest income             |   |                 | 21,922 |   |   |   | 23,245 |   |   |   | 22,106 |   |   |   | 22,197 |   |   |   | 17,597 |   |
| Provision for credit losses                                                |   |                 | 350    |   |   |   | 1,675 |   |   |   | 1,165 |   |   |   | (120 | ) |   |   | 482 |   |
|      Net direct finance, loan and interest income |   |                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|       after provision for credit losses      |   |                 | 21,572 |   |   |   | 21,570 |   |   |   | 20,941 |   |   |   | 22,317 |   |   |   | 17,115 |   |
|                                                                       |   |                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating and sales-type lease income                                      |   |                 | 1,998  |   |   |   | 3,103 |   |   |   | 2,810 |   |   |   | 4,430 |   |   |   | 4,498 |   |
| Gain on sale of leases and leased property                                 |   |                 | 1,797  |   |   |   | 3,712 |   |   |   | 3,366 |   |   |   | 3,561 |   |   |   | 10,390 |   |
| Other income                                                               |   |                 | 857    |   |   |   | 838 |   |   |   | 626 |   |   |   | 1,171 |   |   |   | 780 |   |
| Realized gain on sale of investment securities                             |   |                 | 3,436  |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Other-than-temporary impairment loss                                       |   |                 | -      |   |   |   | (869 | ) |   |   | (685 | ) |   |   | - |   |   |   | - |   |
|      Total non-interest income                    |   |                 | 8,088  |   |   |   | 6,784 |   |   |   | 6,117 |   |   |   | 9,162 |   |   |   | 15,668 |   |
|                                                                       |   |                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|      Gross profit                                 |   |                 | 29,660 |   |   |   | 28,354 |   |   |   | 27,058 |   |   |   | 31,479 |   |   |   | 32,783 |   |
| Non-interest expenses                                                      |   |                 | 11,640 |   |   |   | 13,472 |   |   |   | 15,888 |   |   |   | 15,466 |   |   |   | 15,278 |   |
| Earnings before income taxes                                               |   |                 | 18,020 |   |   |   | 14,882 |   |   |   | 11,170 |   |   |   | 16,013 |   |   |   | 17,505 |   |
| Income taxes                                                               |   |                 | 6,893  |   |   |   | 5,581 |   |   |   | 4,189 |   |   |   | 6,125 |   |   |   | 6,783 |   |
| Net earnings                                                               |   | $                    | 11,127 |   |   | $ | 9,301 |   |   | $ | 6,981 |   |   | $ | 9,888 |   |   | $ | 10,722 |   |
|                                                                       |   |                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Diluted earnings per share                                                 |   | $                    | 1.08   |   |   | $ | 0.89 |   |   | $ | 0.61 |   |   | $ | 0.86 |   |   | $ | 0.94 |   |
| Diluted common shares outstanding                                          |   |                 | 10,304 |   |   |   | 10,404 |   |   |   | 11,507 |   |   |   | 11,534 |   |   |   | 11,461 |   |
|                                                                       |   |                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash dividends per share                                                   |   | $                    | 0.60   |   |   | $ | 0.48 |   |   | $ | 0.48 |   |   | $ | 0.46 |   |   | $ | 0.42 |   |
| Dividend payout ratio                                                      |   |                 | 54.9   | % |   |   | 52.4 | % |   |   | 77.5 | % |   |   | 52.1 | % |   |   | 43.6 | % |
| Return on average assets                                                   |   |                 | 2.4    | % |   |   | 2.2 | % |   |   | 2.0 | % |   |   | 3.1 | % |   |   | 3.7 | % |
| Return on average equity                                                   |   |                 | 5.7    | % |   |   | 4.9 | % |   |   | 3.5 | % |   |   | 5.1 | % |   |   | 5.7 | % |

| BALANCE SHEET DATA                                                     |   | AS OF JUNE 30, |    |
|------------------------------------------------------------------------|--------|----------------|---------|
|      (in thousands, except per share amounts) |   | 2010           |    |   | 2009 |   |   | 2008 |   |   | 2007 |   |   | 2006 |   |
|                                                                   |   |           |    |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash and cash equivalents                                              |   | $              | 73,988  |   |   | $ | 55,217 |   |   | $ | 71,790 |   |   | $ | 44,516 |   |   | $ | 40,747 |   |
| Investment securities                                                  |   |           | 71,974  |   |   |   | 119,600 |   |   |   | 6,360 |   |   |   | 2,563 |   |   |   | 1,134 |   |
| Net investment in leases and loans                                     |   |           | 257,794 |   |   |   | 284,753 |   |   |   | 262,375 |   |   |   | 231,830 |   |   |   | 213,956 |   |
| Total assets                                                           |   |           | 453,602 |   |   |   | 488,972 |   |   |   | 386,594 |   |   |   | 329,187 |   |   |   | 314,355 |   |
|                                                                   |   |           |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Demand, savings and time deposits                                      |   |           | 205,922 |   |   |   | 220,944 |   |   |   | 156,239 |   |   |   | 105,470 |   |   |   | 89,166 |   |
| Short and long term borrowings                                         |   |           | 10,000  |   |   |   | 45,444 |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Non-recourse debt                                                      |   |           | 14,337  |   |   |   | 6,989 |   |   |   | 9,274 |   |   |   | 6,239 |   |   |   | 8,424 |   |
| Stockholders’ equity                                             |   | $              | 198,548 |   |   | $ | 191,376 |   |   | $ | 202,455 |   |   | $ | 197,667 |   |   | $ | 193,527 |   |
|                                                                   |   |           |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Equity to total assets ratio                                           |   |           | 43.8    | % |   |   | 39.1 | % |   |   | 52.4 | % |   |   | 60.1 | % |   |   | 61.6 | % |
| Book value per common share                                            |   | $              | 19.39   |   |   | $ | 18.86 |   |   | $ | 17.70 |   |   | $ | 17.75 |   |   | $ | 17.34 |   |

----

----

----

----

| (in thousands)                                                  |   | 2010 compared to 2009 |   |   | 2009 compared to 2008 |   |
|-----------------------------------------------------------------|--------|-----------------------|--------|--------|-----------------------|--------|
|                                                            |   | Volume                |   |   | Rate                  |   |   | Total |   |   | Volume |   |   | Rate |   |   | Total |   |
| Direct finance, loan and interest income                        |   |                  |   |   |                  |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net investment in leases                                        |   | $                     | (1,605 | )      |                  | $      | (1,549 | ) |   | $ | (3,154 | ) |   | $ | (1,749 | ) |   | $ | (2,076 | ) |   | $ | (3,825 | ) |
| Commercial loans                                                |   |                  | 593    |   |                  |   | (611 | ) |   |   | (18 | ) |   |   | 3,636 |   |   |   | (502 | ) |   |   | 3,134 |   |
| Discounted lease rentals                                        |   |                  | 148    |   |                  |   | (2 | ) |   |   | 146 |   |   |   | 187 |   |   |   | (33 | ) |   |   | 154 |   |
| Federal funds sold                                              |   |                  | (175   | )      |                  |   | (10 | ) |   |   | (185 | ) |   |   | (474 | ) |   |   | (384 | ) |   |   | (858 | ) |
| Investment securities                                           |   |                  | 2,260  |   |                  |   | (1,634 | ) |   |   | 626 |   |   |   | 2,437 |   |   |   | 1,344 |   |   |   | 3,781 |   |
| Interest-earning deposits with banks                            |   |                  | 402    |   |                  |   | (747 | ) |   |   | (345 | ) |   |   | 493 |   |   |   | (704 | ) |   |   | (211 | ) |
|     Total finance, loan and interest income |   |                  | 1,623  |   |                  |   | (4,553 | ) |   |   | (2,930 | ) |   |   | 4,530 |   |   |   | (2,355 | ) |   |   | 2,175 |   |
| Interest expense                                                |   |                  |   |   |                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Non-recourse debt                                               |   |                  | 148    |   |                  |   | (2 | ) |   |   | 146 |   |   |   | 187 |   |   |   | (33 | ) |   |   | 154 |   |
| Demand and savings deposits                                     |   |                  | 411    |   |                  |   | (922 | ) |   |   | (511 | ) |   |   | 1,636 |   |   |   | (723 | ) |   |   | 913 |   |
| Time deposits                                                   |   |                  | 622    |   |                  |   | (1,924 | ) |   |   | (1,302 | ) |   |   | 1,192 |   |   |   | (1,408 | ) |   |   | (216 | ) |
| Short and long term borrowings                                  |   |                  | 82     |   |                  |   | (22 | ) |   |   | 60 |   |   |   | 185 |   |   |   | - |   |   |   | 185 |   |
|     Total interest expense                  |   |                  | 1,263  |   |                  |   | (2,870 | ) |   |   | (1,607 | ) |   |   | 3,200 |   |   |   | (2,164 | ) |   |   | 1,036 |   |
| Net direct finance, loan and interest income                    |   | $                     | 360    |   |                  | $      | (1,683 | ) |   | $ | (1,323 | ) |   | $ | 1,330 |   |   | $ | (191 | ) |   | $ | 1,139 |   |

| (dollars in thousands)                                                                                                  |   | Year ended June 30, 2010 |    |   | Year ended June 30, 2009 |   |   | Year ended June 30, 2008 |   |
|-------------------------------------------------------------------------------------------------------------------------|--------|--------------------------|---------|--------|--------------------------|--------|--------|--------------------------|--------|
|                                                                                                                    |   | Average                  |    |   |                     |   |   | Yield/                   |   |   | Average |   |   |   |   |   | Yield/ |   |   | Average |   |   |   |   |   | Yield/ |   |
| Assets                                                                                                                  |   | Balance                  |    |   | Interest                 |   |   | Rate                     |   |   | Balance |   |   | Interest |   |   | Rate |   |   | Balance |   |   | Interest |   |   | Rate |   |
| Interest-earning assets                                                                                                 |   |                     |    |   |                     |   |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Interest-earning deposits with banks                                                                  |   | $                        | 70,326  |   |                     | $      | 138    |                     |   |   | 0.2 | % |   | $ | 38,377 |   |   | $ | 483 |   |   |   | 1.3 | % |   | $ | 22,437 |   |   | $ | 694 |   |   |   | 3.1 | % |
|    Federal funds sold                                                                                    |   |                     | 923     |   |                     |   | -      |                     |   |   | 0.0 | % |   |   | 15,904 |   |   |   | 185 |   |   |   | 1.2 | % |   |   | 29,145 |   |   |   | 1,043 |   |   |   | 3.6 | % |
|    Investment securities                                                                                 |   |                     | 92,345  |   |                     |   | 4,584  |                     |   |   | 5.0 | % |   |   | 58,772 |   |   |   | 3,958 |   |   |   | 6.7 | % |   |   | 3,846 |   |   |   | 177 |   |   |   | 4.6 | % |
|    Commercial loans                                                                                      |   |                     | 67,605  |   |                     |   | 3,861  |                     |   |   | 5.7 | % |   |   | 58,639 |   |   |   | 3,879 |   |   |   | 6.6 | % |   |   | 9,973 |   |   |   | 745 |   |   |   | 7.5 | % |
|    Net investment in leases, including      discounted lease rentals (1,2) |   |                     | 211,953 |   |                     |   | 18,849 |                     |   |   | 8.9 | % |   |   | 225,576 |   |   |   | 21,857 |   |   |   | 9.7 | % |   |   | 238,602 |   |   |   | 25,528 |   |   |   | 10.7 | % |
| Total interest-earning assets                                                                                           |   |                     | 443,152 |   |                     |   | 27,432 |                     |   |   | 6.2 | % |   |   | 397,268 |   |   |   | 30,362 |   |   |   | 7.6 | % |   |   | 304,003 |   |   |   | 28,187 |   |   |   | 9.3 | % |
| Other assets                                                                                                            |   |                     | 24,535  |   |                     |   |   |                     |   |   |   |   |   |   | 30,196 |   |   |   |   |   |   |   |   |   |   |   | 39,658 |   |   |   |   |   |   |   |   |   |
|                                                                                                                    |   | $                        | 467,687 |   |                     |   |   |                     |   |   |   |   |   | $ | 427,464 |   |   |   |   |   |   |   |   |   |   | $ | 343,661 |   |   |   |   |   |   |   |   |   |
| Liabilities and Shareholders' Equity                                                                                    |   |                     |    |   |                     |   |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-bearing liabilities                                                                                            |   |                     |    |   |                     |   |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Demand and savings deposits                                                                           |   | $                        | 68,812  |   |                     |   | 838    |                     |   |   | 1.2 | % |   | $ | 52,735 |   |   |   | 1,349 |   |   |   | 2.6 | % |   | $ | 11,091 |   |   |   | 436 |   |   |   | 3.9 | % |
|    Time deposits                                                                                         |   |                     | 147,118 |   |                     |   | 3,781  |                     |   |   | 2.6 | % |   |   | 131,074 |   |   |   | 5,083 |   |   |   | 3.9 | % |   |   | 107,005 |   |   |   | 5,299 |   |   |   | 5.0 | % |
|    Short and long term borrowings                                                                        |   |                     | 20,906  |   |                     |   | 245    |                     |   |   | 1.2 | % |   |   | 23,658 |   |   |   | 185 |   |   |   | 0.8 | % |   |   | - |   |   |   | - |   |   |   | - |   |
|    Non-recourse debt                                                                                     |   |                     | 11,605  |   |                     |   | 646    |                     |   |   | 5.6 | % |   |   | 8,951 |   |   |   | 500 |   |   |   | 5.6 | % |   |   | 5,808 |   |   |   | 346 |   |   |   | 6.0 | % |
| Total interest-bearing liabilities                                                                                      |   |                     | 248,441 |   |                     |   | 5,510  |                     |   |   | 2.2 | % |   |   | 216,418 |   |   |   | 7,117 |   |   |   | 3.3 | % |   |   | 123,904 |   |   |   | 6,081 |   |   |   | 4.9 | % |
| Other liabilities                                                                                                       |   |                     | 23,805  |   |                     |   |   |                     |   |   |   |   |   |   | 20,774 |   |   |   |   |   |   |   |   |   |   |   | 19,280 |   |   |   |   |   |   |   |   |   |
| Shareholders' equity                                                                                                    |   |                     | 195,441 |   |                     |   |   |                     |   |   |   |   |   |   | 190,272 |   |   |   |   |   |   |   |   |   |   |   | 200,477 |   |   |   |   |   |   |   |   |   |
|                                                                                                                    |   | $                        | 467,687 |   |                     |   |   |                     |   |   |   |   |   | $ | 427,464 |   |   |   |   |   |   |   |   |   |   | $ | 343,661 |   |   |   |   |   |   |   |   |   |
| Net interest income                                                                                                     |   |                     |    |   |                     | $      | 21,922 |                     |   |   |   |   |   |   |   |   |   | $ | 23,245 |   |   |   |   |   |   |   |   |   |   | $ | 22,106 |   |   |   |   |   |
| Net direct finance and interest income to   average interest-earning assets                              |   |                     |    |   |                     |   |   |                     |   |   | 4.9 | % |   |   |   |   |   |   |   |   |   |   | 5.9 | % |   |   |   |   |   |   |   |   |   |   | 7.3 | % |
| Average interest-earning assets over   average interest-bearing liabilities                              |   |                     |    |   |                     |   |   |                     |   |   | 178.4 | % |   |   |   |   |   |   |   |   |   |   | 183.6 | % |   |   |   |   |   |   |   |   |   |   | 245.4 | % |

----

| (1)   | Direct finance income and interest expense on average discounted lease rentals and non-recourse debt of $11.6 million, $9.0 million and $5.8 million at June 30, 2010, 2009 and 2008, respectively, offset each other and do not contribute to the Company’s net interest and finance income. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2)   | Average balance is based on month-end balances, includes non-accrual leases, and is presented net of unearned income. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------|

----

----

----

|                                               |   | June 30,               |   |
|----------------------------------------------------|--------|------------------------|--------|
| Loan Type                                          |   | 2010                   |   |   | 2009 |   |   | 2008 |   |
|                                               |   | (dollars in thousands) |   |
| Commercial loan syndications                       |   | $                      | 54,242 |   |   | $ | 63,064 |   |   | $ | 31,454 |   |
| Commercial real estate loans                       |   |                   | 11,735 |   |   |   | 11,974 |   |   |   | 8,832 |   |
| Revolving lines of credit                          |   |                   | 2,350  |   |   |   | - |   |   |   | 3,300 |   |
|      Total commercial loans    |   |                   | 68,327 |   |   |   | 75,038 |   |   |   | 43,586 |   |
| Less unearned income and discounts                 |   |                   | (1,396 | ) |   |   | (2,636 | ) |   |   | (1,374 | ) |
| Less allowance for loan losses                     |   |                   | (1,522 | ) |   |   | (1,272 | ) |   |   | (452 | ) |
|      Net commercial loans |   | $                      | 65,409 |   |   | $ | 71,130 |   |   | $ | 41,760 |   |

|                                             |   |                   |   |   | Principal Balance Due in |   |
|--------------------------------------------------|--------|------------------------|--------|--------|--------------------------|--------|
|                                             |   | Principal              |   |   | One Year                 |   |   | One to |   |   | Due After |   |
| Loan Type                                        |   | Balance                |   |   | Or less                  |   |   | Five Years |   |   | Five Years |   |
|                                             |   | (dollars in thousands) |   |
| Commercial Loans                                 |   | $                      | 54,242 |   |                     | $      | 397 |   |   | $ | 50,051 |   |   | $ | 3,794 |   |
| Commercial Real Estate Loans                     |   |                   | 11,735 |   |                     |   | 270 |   |   |   | 4,601 |   |   |   | 6,864 |   |
| Revolving Lines of Credit                        |   |                   | 2,350  |   |                     |   | 2,350 |   |   |   | - |   |   |   | - |   |
| Principal balance outstanding                    |   | $                      | 68,327 |   |                     | $      | 3,017 |   |   | $ | 54,652 |   |   | $ | 10,658 |   |
| Loans with predetermined interest rates          |   |                   |   |   |                     |   |   |   |   |   |   |   |   | $ | 9,535 |   |
| Loans with floating or adjustable interest rates |   |                   |   |   |                     |   |   |   |   |   |   |   |   | $ | 58,792 |   |

|                                                              |   | As of June 30, 2010 |   |   | As of June 30, 2009 |   |
|-------------------------------------------------------------------|--------|---------------------|--------|--------|---------------------|--------|
| (in thousands)                                                    |   | Amortized           |   |   | Fair                |   |   | Amortized |   |   | Fair |   |
|                                                              |   | Cost                |   |   | Value               |   |   | Cost |   |   | Value |   |
| Available-for-sale                                                |   |                |   |   |                |   |   |   |   |   |   |   |
|    Corporate bonds                                 |   | $                   | 50,910 |   |                | $      | 53,529 |   |   | $ | 39,695 |   |   | $ | 40,292 |   |
|    U.S. Agency collateralized mortgage obligations |   |                | -      |   |                |   | - |   |   |   | 45,673 |   |   |   | 46,568 |   |
|    Trust preferred securities                      |   |                | -      |   |                |   | - |   |   |   | 14,605 |   |   |   | 15,520 |   |
|    U.S. Treasury securities                        |   |                | 10,147 |   |                |   | 11,086 |   |   |   | 10,167 |   |   |   | 10,186 |   |
|    Mutual fund investment                          |   |                | 2,702  |   |                |   | 3,339 |   |   |   | 2,702 |   |   |   | 2,464 |   |
|    Equity investment                               |   |                | -      |   |                |   | - |   |   |   | 578 |   |   |   | 500 |   |
| Total securities available-for-sale                               |   | $                   | 63,759 |   |                | $      | 67,954 |   |   | $ | 113,420 |   |   | $ | 115,530 |   |

----

|                                                                |   | June 30,       |   |
|---------------------------------------------------------------------|--------|----------------|--------|
| Non-performing Leases and Loans                                     |   | 2010           |   |   | 2009 |   |   | 2008 |   |   | 2007 |   |   | 2006 |   |
|                                                                |   | (in thousands) |   |
| Non-accrual leases                                                  |   | $              | 789    |   |   | $ | 1,399 |   |   | $ | 2,132 |   |   | $ | 1,133 |   |   | $ | 1,010 |   |
| Restructured leases and loans                                       |   |           | 8,150  |   |   |   | 8,437 |   |   |   | 398 |   |   |   | 452 |   |   |   | 996 |   |
| Leases past due 90 days (other than above)                          |   |           | 411    |   |   |   | 293 |   |   |   | 39 |   |   |   | - |   |   |   | - |   |
|      Total non-performing assets           |   | $              | 9,350  |   |   | $ | 10,129 |   |   | $ | 2,569 |   |   | $ | 1,585 |   |   | $ | 2,006 |   |
| Non-performing assets as % of net investment                        |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|      in leases and loans before allowances |   |           | 3.6    | % |   |   | 3.5 | % |   |   | 1.0 | % |   |   | 0.7 | % |   |   | 0.9 | % |

----

| Years Ended June 30,                                                                      |   | 2010                   |    |   | 2009   |   |    | 2008   |   |   | 2007    |   |   | 2006   |    |
|-------------------------------------------------------------------------------------------|--------|------------------------|---------|--------|--------|--------|---------|--------|--------|--------|---------|--------|--------|--------|---------|
|                                                                                      |   | (dollars in thousands) |    |
| Property acquired for transactions-in-process before allowance                            |   | $                      | 27,088  |   |   | $      | 12,616  |   |   | $      | 29,063  |   |   | $      | 34,788  |   |   | $ | 41,748 |   |
| Net investment in leases before allowance                                                 |   |                   | 195,067 |   |   |   | 216,918 |   |   |   | 224,046 |   |   |   | 235,106 |   |   |   | 217,525 |   |
| Commercial loans, before allowance                                                        |   |                   | 66,931  |   |   |   | 72,402  |   |   |   | 42,212  |   |   |   | -       |   |   |   | - |   |
|   Net investment in “risk assets”                                   |   | $                      | 289,086 |   |   | $      | 301,936 |   |   | $      | 295,321 |   |   | $      | 269,894 |   |   | $ | 259,273 |   |
|                                                                                      |   |                   |    |   |   |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |
| Allowance for credit losses at beginning of year                                          |   | $                      | 4,830   |   |   | $      | 3,921   |   |   | $      | 3,344   |   |   | $      | 3,637   |   |   | $ | 3,495 |   |
|      Charge-off of lease receivables and transactions-in-process |   |                   | (795    | )      |   |   | (779    | )      |   |   | (709    | )      |   |   | (850    | ) |   |   | (391 | ) |
|      Recovery of amounts previously written off                  |   |                   | 82      |   |   |   | 13      |   |   |   | 121     |   |   |   | 677     |   |   |   | 51 |   |
|      Provision for credit losses                                 |   |                   | 350     |   |   |   | 1,675   |   |   |   | 1,165   |   |   |   | (120    | ) |   |   | 482 |   |
| Allowance for credit losses at end of year                                                |   | $                      | 4,467   |   |   | $      | 4,830   |   |   | $      | 3,921   |   |   | $      | 3,344   |   |   | $ | 3,637 |   |
|                                                                                      |   |                   |    |   |   |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |
| Components of allowance for credit losses:                                                |   |                   |    |   |   |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |
|      Allowance for lease losses                                  |   | $                      | 2,682   |   |   | $      | 3,295   |   |   | $      | 3,431   |   |   | $      | 3,276   |   |   | $ | 3,569 |   |
|      Allowance for loan losses                                   |   |                   | 1,522   |   |   |   | 1,272   |   |   |   | 452     |   |   |   | -       |   |   |   | - |   |
|      Liability for unfunded loan commitments                     |   |                   | 20      |   |   |   | 20      |   |   |   | 20      |   |   |   | -       |   |   |   | - |   |
|      Allowance for transactions in process                       |   |                   | 243     |   |   |   | 243     |   |   |   | 18      |   |   |   | 68      |   |   |   | 68 |   |
|                                                                                      |   | $                      | 4,467   |   |   | $      | 4,830   |   |   | $      | 3,921   |   |   | $      | 3,344   |   |   | $ | 3,637 |   |
| Allowance for credit losses as percent of net                                             |   |                   |    |   |   |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |
|     investment in leases and loans before allowances                  |   |                   | 1.7     | %      |   |   | 1.7     | %      |   |   | 1.5     | %      |   |   | 1.4     | % |   |   | 1.7 | % |
| Allowance for credit losses as percent of net investment in “risk assets”     |   |                   | 1.5     | %      |   |   | 1.6     | %      |   |   | 1.3     | %      |   |   | 1.2     | % |   |   | 1.4 | % |

----

| (dollars in thousands)               |   | Years ended June 30, |   |
|--------------------------------------|--------|----------------------|--------|
|                                 |   | 2010                 |   |   | 2009 |   |   | 2008 |   |
|                                 |   | Average              |   |   | Average |   |   | Average |   |   | Average |   |   | Average |   |   | Average |   |
|                                 |   | Balance              |   |   | Rate Paid |   |   | Balance |   |   | Rate Paid |   |   | Balance |   |   | Rate Paid |   |
| Non-interest bearing demand deposits |   | $                    | 1,532  |   |   |   | n/a |   |   | $ | 1,704 |   |   |   | n/a |   |   | $ | 1,480 |   |   |   | n/a |   |
| Interest-bearing demand deposits     |   |                 | 150    |   |   |   | 0.50 | % |   |   | 207 |   |   |   | 0.50 | % |   |   | 150 |   |   |   | 0.49 | % |
| Savings deposits                     |   |                 | 68,662 |   |   |   | 1.22 | % |   |   | 52,528 |   |   |   | 2.57 | % |   |   | 10,941 |   |   |   | 3.97 | % |
| Time deposits less than $100,000     |   |                 | 64,297 |   |   |   | 2.66 | % |   |   | 63,196 |   |   |   | 3.83 | % |   |   | 52,795 |   |   |   | 4.92 | % |
| Time deposits, $100,000 or more      |   | $                    | 82,821 |   |   |   | 2.50 | % |   | $ | 67,878 |   |   |   | 3.92 | % |   | $ | 54,210 |   |   |   | 4.98 | % |

|                |   | June 30, 2010  |   |
|---------------------|--------|----------------|--------|
|                |   | Less than      |   |   | $100,000 |   |
|                |   | $100,000       |   |   | or more |   |
|                |   | (in thousands) |   |
| Under 3 months      |   | $              | 9,823  |   |   | $ | 18,606 |   |
| 3 – 6 months  |   |           | 6,018  |   |   |   | 13,590 |   |
| 6 – 12 months |   |           | 27,276 |   |   |   | 39,357 |   |
| After 12 months     |   |           | 11,122 |   |   |   | 14,196 |   |
|                |   | $              | 54,239 |   |   | $ | 85,749 |   |

----

|                                                  |   | Due by Period          |    |
|-------------------------------------------------------|--------|------------------------|---------|
|                                                  |   |                   |    |   | Less Than |   |   |   |   |   | After |   |
| Contractual Obligations                               |   | Total                  |    |   | 1 Year |   |   | 1-5 Years |   |   | 5 Years |   |
|                                                  |   | (dollars in thousands) |    |
| Lease property purchases (1)                          |   | $                      | 57,231  |   |   | $ | 57,231 |   |   | $ | - |   |   | $ | - |   |
| Commercial loan and lease purchase commitments        |   |                   | 61,118  |   |   |   | 61,118 |   |   |   | - |   |   |   | - |   |
| FHLB & FRB Borrowings                             |   |                   | 10,000  |   |   |   | - |   |   |   | 10,000 |   |   |   | - |   |
| Operating lease rental expense                        |   |                   | 3,569   |   |   |   | 789 |   |   |   | 2,780 |   |   |   | - |   |
|     Total contractual commitments |   | $                      | 131,918 |   |   | $ | 119,138 |   |   | $ | 12,780 |   |   | $ | - |   |

----

| (1) | Disbursements to purchase property on approved lease or loan commitments are estimated to be completed within one year, but it is likely that some portion could be deferred or never funded. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                              |   |     |    |   |      |   |    | Over 1  |   |   |    |   |   |      |    |   |   |   |
|-----------------------------------|--------|----------|---------|--------|-----------|--------|---------|---------|--------|--------|---------|--------|--------|-----------|---------|--------|--------|--------|
|                              |   | 3 Months |    |   | Over 3 to |   |    | Through |   |   | Over    |   |   | Non-rate  |    |   |   |   |
| (in thousands)                    |   | or Less  |    |   | 12 Months |   |    | 5 years |   |   | 5 years |   |   | Sensitive |    |   | Total  |   |
|                              |   |     |    |   |      |   |    |    |   |   |    |   |   |      |    |   |   |   |
| Rate Sensitive Assets (RSA):      |   |     |    |   |      |   |    |    |   |   |    |   |   |      |    |   |   |   |
|                              |   |     |    |   |      |   |    |    |   |   |    |   |   |      |    |   |   |   |
| Cash due from banks               |   | $        | 73,988  |   |      | $      | -       |    |   | $      | -       |   |   | $         | -       |   |   | $      | - |   |   | $ | 73,988 |   |
| Investment securities             |   |     | 3,339   |   |      |   | 9,651   |    |   |   | 49,383  |   |   |      | 9,601   |   |   |   | - |   |   |   | 71,974 |   |
| Net investment in leases          |   |     | 25,933  |   |      |   | 74,779  |    |   |   | 113,119 |   |   |      | -       |   |   |   | (21,446 | ) |   |   | 192,385 |   |
| Commercial loans                  |   |     | 58,792  |   |      |   | -       |    |   |   | 9,535   |   |   |      | -       |   |   |   | (2,918 | ) |   |   | 65,409 |   |
| Non-interest earning assets       |   |     | -       |   |      |   | -       |    |   |   | -       |   |   |      | -       |   |   |   | 49,846 |   |   |   | 49,846 |   |
| Totals                            |   | $        | 162,052 |   |      | $      | 84,430  |    |   | $      | 172,037 |   |   | $         | 9,601   |   |   | $      | 25,482 |   |   | $ | 453,602 |   |
| Cumulative total for RSA          |   | $        | 162,052 |   |      | $      | 246,482 |    |   | $      | 418,519 |   |   | $         | 428,120 |   |   |   |   |   |   |   |   |   |
|                              |   |     |    |   |      |   |    |    |   |   |    |   |   |      |    |   |   |   |   |   |   |   |   |   |
| Rate Sensitive Liabilities (RSL): |   |     |    |   |      |   |    |    |   |   |    |   |   |      |    |   |   |   |   |   |   |   |   |   |
|                              |   |     |    |   |      |   |    |    |   |   |    |   |   |      |    |   |   |   |   |   |   |   |   |   |
| Demand and savings deposits       |   | $        | 64,991  |   |      | $      | -       |    |   | $      | -       |   |   | $         | -       |   |   | $      | 943 |   |   | $ | 65,934 |   |
| Time deposits                     |   |     | 28,430  |   |      |   | 86,240  |    |   |   | 25,318  |   |   |      | -       |   |   |   | - |   |   |   | 139,988 |   |
| Borrowings                        |   |     | -       |   |      |   | -       |    |   |   | 10,000  |   |   |      | -       |   |   |   | - |   |   |   | 10,000 |   |
| Non-interest bearing liabilities  |   |     | -       |   |      |   | -       |    |   |   | -       |   |   |      | -       |   |   |   | 39,132 |   |   |   | 39,132 |   |
| Stockholders' equity              |   |     | -       |   |      |   | -       |    |   |   | -       |   |   |      | -       |   |   |   | 198,548 |   |   |   | 198,548 |   |
| Totals                            |   | $        | 93,421  |   |      | $      | 86,240  |    |   | $      | 35,318  |   |   | $         | -       |   |   | $      | 238,623 |   |   | $ | 453,602 |   |
| Cumulative total for RSL          |   | $        | 93,421  |   |      | $      | 179,661 |    |   | $      | 214,979 |   |   | $         | 214,979 |   |   |   |   |   |   |   |   |   |
|                              |   |     |    |   |      |   |    |    |   |   |    |   |   |      |    |   |   |   |   |   |   |   |   |   |
| Interest rate sensitivity gap     |   | $        | 68,631  |   |      | $      | (1,810  | )       |   | $      | 136,719 |   |   | $         | 9,601   |   |   |   |   |   |   |   |   |   |
| Cumulative GAP                    |   | $        | 68,631  |   |      | $      | 66,821  |    |   | $      | 203,540 |   |   | $         | 213,141 |   |   |   |   |   |   |   |   |   |
|                              |   |     |    |   |      |   |    |    |   |   |    |   |   |      |    |   |   |   |   |   |   |   |   |   |
| RSA divided by RSL (cumulative)   |   |     | 173.46  | %      |      |   | 137.19  | %       |   |   | 194.68  | %      |   |      | 199.15  | %      |   |   |   |   |   |   |   |   |
| Cumulative GAP / total assets     |   |     | 15.13   | %      |      |   | 14.73   | %       |   |   | 44.87   | %      |   |      | 46.99   | %      |   |   |   |   |   |   |   |   |

----

|                                                       |   | Page Number |   |
|------------------------------------------------------------|--------|-------------|--------|
| Report of Independent Registered Public Accounting Firm    |   |        | 30     |   |   |
|                                                       |   |        |   |   |
| Consolidated Balance Sheets at June 30, 2010 and 2009      |   |        | 31     |   |   |
|                                                       |   |        |   |   |
| Consolidated Statements of Earnings for the years ended    |   |        |   |   |
|    June 30, 2010, 2009 and 2008             |   |        | 32     |   |   |
|                                                       |   |        |   |   |
| Consolidated Statements of Stockholders' Equity for the    |   |        |   |   |
|    years ended June 30, 2010, 2009 and 2008 |   |        | 33     |   |   |
|                                                       |   |        |   |   |
| Consolidated Statements of Cash Flows for the years        |   |        |   |   |
|    ended June 30, 2010, 2009 and 2008       |   |        | 34     |   |   |
|                                                       |   |        |   |   |
| Notes to Consolidated Financial Statements                 |   |        | 35-52  |   |   |

----

----

|                                                                                                                                                                |   | June 30, |        |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------|-------------|
| ASSETS                                                                                                                                                              |   | 2010     |        |   | 2009 |   |
|                                                                                                                                                                |   |     |        |   |   |   |
| Cash and due from banks                                                                                                                                             |   | $        | 73,988      |   |   | $ | 43,222 |   |
| Federal funds sold and securities purchased under                                                                                                                   |   |     |        |   |   |   |   |   |
|   agreements to resell                                                                                                                                    |   |     | -           |   |   |   | 11,995 |   |
|       Total cash and cash equivalents                                                                                                 |   |     | 73,988      |   |   |   | 55,217 |   |
| Investments                                                                                                                                                         |   |     | 4,020       |   |   |   | 4,070 |   |
| Securities available-for-sale                                                                                                                                       |   |     | 67,954      |   |   |   | 115,530 |   |
| Receivables                                                                                                                                                         |   |     | 2,302       |   |   |   | 3,508 |   |
| Property acquired for transactions-in-process                                                                                                                       |   |     | 26,845      |   |   |   | 12,373 |   |
| Leases and loans:                                                                                                                                                   |   |     |        |   |   |   |   |   |
|    Net investment in leases                                                                                                                          |   |     | 195,067     |   |   |   | 216,918 |   |
|    Commercial loans                                                                                                                                  |   |     | 66,931      |   |   |   | 72,402 |   |
|    Allowance for credit losses                                                                                                                       |   |     | (4,204      | ) |   |   | (4,567 | ) |
|       Net investment in leases and loans                                                                                              |   |     | 257,794     |   |   |   | 284,753 |   |
|                                                                                                                                                                |   |     |        |   |   |   |   |   |
| Property on operating leases, less accumulated   depreciation of $547 (2010) and $306 (2009)                                                         |   |     |  1,242 |   |   |   |  1,557 |   |
| Income tax receivable                                                                                                                                               |   |     | 3,816       |   |   |   | 3,968 |   |
| Other assets                                                                                                                                                        |   |     | 1,304       |   |   |   | 1,007 |   |
| Discounted lease rentals assigned to lenders                                                                                                                        |   |     | 14,337      |   |   |   | 6,989 |   |
|                                                                                                                                                                |   | $        | 453,602     |   |   | $ | 488,972 |   |
|                                                                                                                                                                |   |     |        |   |   |   |   |   |
| LIABILITIES AND STOCKHOLDERS’ EQUITY                                                                                                                          |   |     |        |   |   |   |   |   |
|                                                                                                                                                                |   |     |        |   |   |   |   |   |
| Liabilities:                                                                                                                                                        |   |     |        |   |   |   |   |   |
|   Accounts payable                                                                                                                                        |   | $        | 905         |   |   | $ | 2,569 |   |
|   Accrued liabilities                                                                                                                                     |   |     | 2,657       |   |   |   | 4,918 |   |
|   Demand and savings deposits                                                                                                                             |   |     | 65,934      |   |   |   | 70,217 |   |
|   Time certificates of deposit                                                                                                                            |   |     | 139,988     |   |   |   | 150,727 |   |
|   Short-term borrowings                                                                                                                                   |   |     | -           |   |   |   | 35,444 |   |
|   Long-term borrowings                                                                                                                                    |   |     | 10,000      |   |   |   | 10,000 |   |
|   Lease deposits                                                                                                                                          |   |     | 4,000       |   |   |   | 4,060 |   |
|   Non-recourse debt                                                                                                                                       |   |     | 14,337      |   |   |   | 6,989 |   |
|   Deferred income taxes, net                                                                                                                              |   |     | 17,233      |   |   |   | 12,672 |   |
|                                                                                                                                                                |   |     | 255,054     |   |   |   | 297,596 |   |
|                                                                                                                                                                |   |     |        |   |   |   |   |   |
| Commitments and contingencies                                                                                                                                       |   |     |        |   |   |   |   |   |
|                                                                                                                                                                |   |     |        |   |   |   |   |   |
| Stockholders' equity:                                                                                                                                               |   |     |        |   |   |   |   |   |
|   Preferred stock; 2,500,000 shares authorized; none issued                                                                                               |   |     | -           |   |   |   | - |   |
|   Common stock; $.01 par value; 20,000,000 shares authorized;     10,240,202 (2010) and 10,145,785 (2009) issued and outstanding |   |     |  102   |   |   |   |  101 |   |
|   Additional paid in capital                                                                                                                              |   |     | 1,224       |   |   |   | 395 |   |
|   Retained earnings                                                                                                                                       |   |     | 194,543     |   |   |   | 189,528 |   |
|   Other comprehensive income, net of tax                                                                                                                  |   |     | 2,679       |   |   |   | 1,352 |   |
|                                                                                                                                                                |   |     | 198,548     |   |   |   | 191,376 |   |
|                                                                                                                                                                |   | $        | 453,602     |   |   | $ | 488,972 |   |

----

|                                                                                                                                                                          |   | Years ended June 30, |       |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------|------------|
|                                                                                                                                                                          |   | 2010                 |       |   | 2009 |   |   | 2008 |   |
|                                                                                                                                                                          |   |                 |       |   |   |   |   |   |   |
| Direct finance and loan income                                                                                                                                                |   | $                    | 22,064     |   |   | $ | 25,236 |   |   | $ | 25,927 |   |
| Investment interest income                                                                                                                                                    |   |                 | 4,722      |   |   |   | 4,626 |   |   |   | 1,914 |   |
|       Total direct finance, loan and interest income                                                                                            |   |                 | 26,786     |   |   |   | 29,862 |   |   |   | 27,841 |   |
|                                                                                                                                                                          |   |                 |       |   |   |   |   |   |   |   |   |   |
| Interest expense                                                                                                                                                              |   |                 |       |   |   |   |   |   |   |   |   |   |
|    Deposits                                                                                                                                                    |   |                 | 4,619      |   |   |   | 6,432 |   |   |   | 5,735 |   |
|    Borrowings                                                                                                                                                  |   |                 | 245        |   |   |   | 185 |   |   |   | - |   |
|       Net direct finance, loan and interest income                                                                                              |   |                 | 21,922     |   |   |   | 23,245 |   |   |   | 22,106 |   |
| Provision for credit losses                                                                                                                                                   |   |                 | 350        |   |   |   | 1,675 |   |   |   | 1,165 |   |
|       Net direct finance, loan and interest income after          provision for credit losses |   |                 | 21,572     |   |   |   | 21,570 |   |   |   | 20,941 |   |
|                                                                                                                                                                          |   |                 |       |   |   |   |   |   |   |   |   |   |
| Non-interest income                                                                                                                                                           |   |                 |       |   |   |   |   |   |   |   |   |   |
|    Operating and sales-type lease income                                                                                                                       |   |                 | 1,998      |   |   |   | 3,103 |   |   |   | 2,810 |   |
|    Gain on sale of leases and leased property                                                                                                                  |   |                 | 1,797      |   |   |   | 3,712 |   |   |   | 3,366 |   |
|    Realized gain on sale of investment securities                                                                                                              |   |                 | 3,436      |   |   |   | - |   |   |   | - |   |
|    Other-than-temporary impairment loss                                                                                                                        |   |                 | -          |   |   |   | (869 | ) |   |   | (685 | ) |
|    Other fee income                                                                                                                                            |   |                 | 857        |   |   |   | 838 |   |   |   | 626 |   |
|       Total non-interest income                                                                                                                 |   |                 | 8,088      |   |   |   | 6,784 |   |   |   | 6,117 |   |
|                                                                                                                                                                          |   |                 |       |   |   |   |   |   |   |   |   |   |
| Gross profit                                                                                                                                                                  |   |                 | 29,660     |   |   |   | 28,354 |   |   |   | 27,058 |   |
|                                                                                                                                                                          |   |                 |       |   |   |   |   |   |   |   |   |   |
| Non-interest expenses                                                                                                                                                         |   |                 |       |   |   |   |   |   |   |   |   |   |
|    Compensation and employee benefits                                                                                                                          |   |                 | 8,198      |   |   |   | 9,707 |   |   |   | 11,054 |   |
|    Occupancy                                                                                                                                                   |   |                 | 932        |   |   |   | 976 |   |   |   | 1,145 |   |
|    Professional services                                                                                                                                       |   |                 | 510        |   |   |   | 642 |   |   |   | 607 |   |
|    Other general and administrative                                                                                                                            |   |                 | 2,000      |   |   |   | 2,147 |   |   |   | 3,082 |   |
|       Total non-interest expenses                                                                                                               |   |                 | 11,640     |   |   |   | 13,472 |   |   |   | 15,888 |   |
|                                                                                                                                                                          |   |                 |       |   |   |   |   |   |   |   |   |   |
| Earnings before income taxes                                                                                                                                                  |   |                 | 18,020     |   |   |   | 14,882 |   |   |   | 11,170 |   |
|                                                                                                                                                                          |   |                 |       |   |   |   |   |   |   |   |   |   |
| Income taxes                                                                                                                                                                  |   |                 | 6,893      |   |   |   | 5,581 |   |   |   | 4,189 |   |
|                                                                                                                                                                          |   |                 |       |   |   |   |   |   |   |   |   |   |
| Net earnings                                                                                                                                                                  |   | $                    | 11,127     |   |   | $ | 9,301 |   |   | $ | 6,981 |   |
|                                                                                                                                                                          |   |                 |       |   |   |   |   |   |   |   |   |   |
| Basic earnings per common share                                                                                                                                               |   | $                    | 1.09       |   |   | $ | 0.90 |   |   | $ | 0.62 |   |
|                                                                                                                                                                          |   |                 |       |   |   |   |   |   |   |   |   |   |
| Diluted earnings per common share                                                                                                                                             |   | $                    | 1.08       |   |   | $ | 0.89 |   |   | $ | 0.61 |   |
|                                                                                                                                                                          |   |                 |       |   |   |   |   |   |   |   |   |   |
| Dividends declared per common share outstanding                                                                                                                               |   | $                    | 0.60       |   |   | $ | 0.48 |   |   | $ | 0.48 |   |
|                                                                                                                                                                          |   |                 |       |   |   |   |   |   |   |   |   |   |
| Average common shares outstanding – basic                                                                                                                               |   |                 | 10,197,178 |   |   |   | 10,332,728 |   |   |   | 11,265,388 |   |
|                                                                                                                                                                          |   |                 |       |   |   |   |   |   |   |   |   |   |
| Average common shares outstanding – diluted                                                                                                                             |   |                 | 10,303,970 |   |   |   | 10,403,978 |   |   |   | 11,506,837 |   |
|                                                                                                                                                                          |   |                 |       |   |   |   |   |   |   |   |   |   |

----

|                                                                             |   |   |       |   |    |   |   | Additional |   |   |          |   |   | Accumulated |    |   |   |   |
|----------------------------------------------------------------------------------|--------|--------|------------|--------|---------|--------|--------|------------|--------|--------|---------------|--------|--------|-------------|---------|--------|--------|--------|
|                                                                             |   |   |       |   | Paid in |   |   | Retained   |   |   | Comprehensive |   |   |        |    |
|                                                                             |   | Shares |       |   | Amount  |   |   | Capital    |   |   | Earnings      |   |   | Income      |    |   | Total  |   |
|                                                                             |   |   |       |   |    |   |   |       |   |   |          |   |   |        |    |   |   |   |
| **Balance, June 30, 2007**                                                       |   |   | 11,138,425 |   |    | $      | 111    |       |   |   | 4,091         |   |   |        | 193,485 |   |   |   | (20 | ) |   |   | 197,667 |   |
|                                                                             |   |   |       |   |    |   |   |       |   |   |          |   |   |        |    |   |   |   |   |   |   |   |   |   |
|   Cumulative effect of applying provisions of FIN 48                   |   |   | -          |   |    |   | -      |       |   |   | -             |   |   |        | 1,200   |   |   |   | - |   |   |   | 1,200 |   |
|                                                                             |   |   |       |   |    |   |   |       |   |   |          |   |   |        |    |   |   |   |   |   |   |   |   |   |
|   Comprehensive income                                                 |   |   |       |   |    |   |   |       |   |   |          |   |   |        |    |   |   |   |   |   |   |   |   |   |
|   Net earnings                                                         |   |   | -          |   |    |   | -      |       |   |   | -             |   |   |        | 6,981   |   |   |   | - |   |   |   | 6,981 |   |
|   Unrealized loss on investment securities, net of tax                 |   |   | -          |   |    |   | -      |       |   |   | -             |   |   |        | -       |   |   |   | (681 | ) |   |   | (681 | ) |
|   Reclassification adjustment – other-than-temporary             |   |   |       |   |    |   |   |       |   |   |          |   |   |        |    |   |   |   |   |   |   |   |   |   |
|      impairment loss included in net income, net of tax |   |   | -          |   |    |   | -      |       |   |   | -             |   |   |        | -       |   |   |   | 428 |   |   |   | 428 |   |
|   Total comprehensive income                                           |   |   |       |   |    |   |   |       |   |   |          |   |   |        |    |   |   |   |   |   |   |   | 6,728 |   |
|                                                                             |   |   |       |   |    |   |   |       |   |   |          |   |   |        |    |   |   |   |   |   |   |   |   |   |
|   Shares issued – stock options exercised                        |   |   | 377,300    |   |    |   | 4      |       |   |   | 3,175         |   |   |        | -       |   |   |   | - |   |   |   | 3,179 |   |
|   Shares repurchased                                                   |   |   | (75,000    | )      |    |   | (1     | )          |   |   | (327          | )      |   |        | (647    | )      |   |   | - |   |   |   | (975 | ) |
|   Stock based compensation expense                                     |   |   | -          |   |    |   | -      |       |   |   | 64            |   |   |        | -       |   |   |   | - |   |   |   | 64 |   |
|                                                                             |   |   |       |   |    |   |   |       |   |   |          |   |   |        |    |   |   |   |   |   |   |   |   |   |
|   Dividends declared                                                   |   |   | -          |   |    |   | -      |       |   |   | -             |   |   |        | (5,408  | )      |   |   | - |   |   |   | (5,408 | ) |
| **Balance, June 30, 2008**                                                       |   |   | 11,440,725 |   |    |   | 114    |       |   |   | 7,003         |   |   |        | 195,611 |   |   |   | (273 | ) |   |   | 202,455 |   |
|   Comprehensive income                                                 |   |   |       |   |    |   |   |       |   |   |          |   |   |        |    |   |   |   |   |   |   |   |   |   |
|   Net earnings                                                         |   |   | -          |   |    |   | -      |       |   |   | -             |   |   |        | 9,301   |   |   |   | - |   |   |   | 9,301 |   |
|   Unrealized gain on investment securities, net of tax                 |   |   | -          |   |    |   | -      |       |   |   | -             |   |   |        | -       |   |   |   | 1,082 |   |   |   | 1,082 |   |
|   Reclassification adjustment – other-than-temporary             |   |   |       |   |    |   |   |       |   |   |          |   |   |        |    |   |   |   |   |   |   |   |   |   |
|      impairment loss included in net income, net of tax |   |   | -          |   |    |   | -      |       |   |   | -             |   |   |        | -       |   |   |   | 543 |   |   |   | 543 |   |
|   Total comprehensive income                                           |   |   |       |   |    |   |   |       |   |   |          |   |   |        |    |   |   |   |   |   |   |   | 10,926 |   |
|                                                                             |   |   |       |   |    |   |   |       |   |   |          |   |   |        |    |   |   |   |   |   |   |   |   |   |
|   Shares issued – stock options exercised                        |   |   | 40,388     |   |    |   | -      |       |   |   | 375           |   |   |        | -       |   |   |   | - |   |   |   | 375 |   |
|   Shares repurchased                                                   |   |   | (1,335,328 | )      |    |   | (13    | )          |   |   | (6,995        | )      |   |        | (10,510 | )      |   |   | - |   |   |   | (17,518 | ) |
|   Stock based compensation expense                                     |   |   | -          |   |    |   | -      |       |   |   | 12            |   |   |        | -       |   |   |   | - |   |   |   | 12 |   |
|                                                                             |   |   |       |   |    |   |   |       |   |   |          |   |   |        |    |   |   |   |   |   |   |   |   |   |
|   Dividends declared                                                   |   |   | -          |   |    |   | -      |       |   |   | -             |   |   |        | (4,874  | )      |   |   | - |   |   |   | (4,874 | ) |
| **Balance, June 30, 2009**                                                       |   |   | 10,145,785 |   |    |   | 101    |       |   |   | 395           |   |   |        | 189,528 |   |   |   | 1,352 |   |   |   | 191,376 |   |
|   Comprehensive income                                                 |   |   |       |   |    |   |   |       |   |   |          |   |   |        |    |   |   |   |   |   |   |   |   |   |
|   Net earnings                                                         |   |   | -          |   |    |   | -      |       |   |   | -             |   |   |        | 11,127  |   |   |   | - |   |   |   | 11,127 |   |
|   Unrealized gain on investment securities, net of tax                 |   |   | -          |   |    |   | -      |       |   |   | -             |   |   |        | -       |   |   |   | 3,449 |   |   |   | 3,449 |   |
|   Reclassification adjustment – realized gains on                |   |   |       |   |    |   |   |       |   |   |          |   |   |        |    |   |   |   |   |   |   |   |   |   |
|      investment securities included in                  |   |   |       |   |    |   |   |       |   |   |          |   |   |        |    |   |   |   |   |   |   |   |   |   |
|      net income, net of tax                             |   |   | -          |   |    |   | -      |       |   |   | -             |   |   |        | -       |   |   |   | (2,122 | ) |   |   | (2,122 | ) |
|   Total comprehensive income                                           |   |   |       |   |    |   |   |       |   |   |          |   |   |        |    |   |   |   |   |   |   |   | 12,454 |   |
|                                                                             |   |   |       |   |    |   |   |       |   |   |          |   |   |        |    |   |   |   |   |   |   |   |   |   |
|   Shares issued – stock options exercised                        |   |   | 120,071    |   |    |   | 1      |       |   |   | 1,134         |   |   |        | -       |   |   |   | - |   |   |   | 1,135 |   |
|   Shares repurchased                                                   |   |   | (25,654    | )      |    |   | -      |       |   |   | (305          | )      |   |        | -       |   |   |   | - |   |   |   | (305 | ) |
|                                                                             |   |   |       |   |    |   |   |       |   |   |          |   |   |        |    |   |   |   |   |   |   |   |   |   |
|   Dividends declared                                                   |   |   | -          |   |    |   | -      |       |   |   | -             |   |   |        | (6,112  | )      |   |   | - |   |   |   | (6,112 | ) |
| **Balance, June 30, 2010**                                                       |   |   | 10,240,202 |   |    | $      | 102    |       |   | $      | 1,224         |   |   | $           | 194,543 |   |   | $      | 2,679 |   |   | $ | 198,548 |   |

----

|                                                                                   |   | Years ended June 30, |     |
|----------------------------------------------------------------------------------------|--------|----------------------|----------|
|                                                                                   |   | 2010                 |     |   | 2009 |   |   | 2008 |   |
| CASH FLOWS FROM OPERATING ACTIVITIES:                                                  |   |                 |     |   |   |   |   |   |   |
| Net Earnings                                                                           |   | $                    | 11,127   |   |   | $ | 9,301 |   |   | $ | 6,981 |   |
| Adjustments to reconcile net earnings to cash flows                                    |   |                 |     |   |   |   |   |   |   |   |   |   |
|   provided by (used for) operating activities:                               |   |                 |     |   |   |   |   |   |   |   |   |   |
|   Provision for credit losses                                                |   |                 | 350      |   |   |   | 1,675 |   |   |   | 1,165 |   |
|   Depreciation and net amortization (accretion)                              |   |                 | (2,018   | ) |   |   | (2,438 | ) |   |   | (1,084 | ) |
|   Gain on sale of leased property and sales-type lease income                |   |                 | (42      | ) |   |   | (1,176 | ) |   |   | (2,242 | ) |
|   Net (gain) loss recognized on investment securities                        |   |                 | (3,436   | ) |   |   | 869 |   |   |   | 685 |   |
|   Deferred income taxes, including income taxes payable                      |   |                 | 3,804    |   |   |   | 4,832 |   |   |   | 790 |   |
|   Decrease in income taxes receivable                                        |   |                 | 153      |   |   |   | 271 |   |   |   | 92 |   |
|   Net (decrease) increase in accounts payable and accrued liabilities        |   |                 | (3,925   | ) |   |   | 913 |   |   |   | (1,006 | ) |
|   Other, net                                                                 |   |                 | 999      |   |   |   | (2,584 | ) |   |   | (337 | ) |
| Net cash provided by operating activities                                              |   |                 | 7,012    |   |   |   | 11,663 |   |   |   | 5,044 |   |
|                                                                                   |   |                 |     |   |   |   |   |   |   |   |   |   |
| CASH FLOWS FROM INVESTING ACTIVITIES:                                                  |   |                 |     |   |   |   |   |   |   |   |   |   |
|   Investment in leases, loans and transactions in process                    |   |                 | (149,315 | ) |   |   | (175,589 | ) |   |   | (165,843 | ) |
|   Payments received on lease receivables and loans                           |   |                 | 160,643  |   |   |   | 164,546 |   |   |   | 138,255 |   |
|   Proceeds from sales of leased property and sales-type leases               |   |                 | 3,794    |   |   |   | 5,922 |   |   |   | 5,456 |   |
|   Purchase of investment securities                                          |   |                 | (21,660  | ) |   |   | (111,742 | ) |   |   | (4,814 | ) |
|   Pay down on investment securities                                          |   |                 | 590      |   |   |   | 462 |   |   |   | 1,612 |   |
|   Proceeds from sale of investment securities                                |   |                 | 73,858   |   |   |   | - |   |   |   | - |   |
|   Net (increase) decrease in other assets                                    |   |                 | (403     | ) |   |   | 33 |   |   |   | (1 | ) |
| Net cash provided by (used for) investing activities                                   |   |                 | 67,507   |   |   |   | (116,368 | ) |   |   | (25,335 | ) |
|                                                                                   |   |                 |     |   |   |   |   |   |   |   |   |   |
| CASH FLOWS FROM FINANCING ACTIVITIES:                                                  |   |                 |     |   |   |   |   |   |   |   |   |   |
|   Net (decrease) increase in time certificates of deposit                    |   |                 | (10,739  | ) |   |   | 34,375 |   |   |   | 19,174 |   |
|   Net (decrease) increase in demand and money market deposits                |   |                 | (4,283   | ) |   |   | 30,330 |   |   |   | 31,595 |   |
|   Net (repayment of) proceeds from short-term borrowings                     |   |                 | (35,444  | ) |   |   | 35,444 |   |   |   | - |   |
|   Net proceeds from long-term borrowings                                     |   |                 | -        |   |   |   | 10,000 |   |   |   | - |   |
|   Payments to repurchase common stock                                        |   |                 | (305     | ) |   |   | (17,518 | ) |   |   | (975 | ) |
|   Dividends to stockholders                                                  |   |                 | (6,112   | ) |   |   | (4,874 | ) |   |   | (5,408 | ) |
|   Proceeds from exercise of stock options                                    |   |                 | 1,135    |   |   |   | 375 |   |   |   | 3,179 |   |
| Net cash (used for) provided by financing activities                                   |   |                 | (55,748  | ) |   |   | 88,132 |   |   |   | 47,565 |   |
|                                                                                   |   |                 |     |   |   |   |   |   |   |   |   |   |
| NET CHANGE IN CASH AND CASH EQUIVALENTS                                                |   |                 | 18,771   |   |   |   | (16,573 | ) |   |   | 27,274 |   |
| CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD                                       |   |                 | 55,217   |   |   |   | 71,790 |   |   |   | 44,516 |   |
| CASH AND CASH EQUIVALENTS AT END OF PERIOD                                             |   | $                    | 73,988   |   |   | $ | 55,217 |   |   | $ | 71,790 |   |
|                                                                                   |   |                 |     |   |   |   |   |   |   |   |   |   |
| SUPPLEMENTAL SCHEDULE OF NONCASH INVESTING AND FINANCING ACTIVITIES                    |   |                 |     |   |   |
| Increase (decrease) in lease rentals assigned to lenders and related non-recourse debt |   | $                    | 7,349    |   |   | $ | (2,285 | ) |   | $ | 3,035 |   |
| Estimated residual values recorded on leases                                           |   | $                    | (5,845   | ) |   | $ | (2,542 | ) |   | $ | (2,421 | ) |
|                                                                                   |   |                 |     |   |   |   |   |   |   |   |   |   |
| SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION                                      |   |                 |     |   |   |   |   |   |   |   |   |   |
| Cash paid during the year for:                                                         |   |                 |     |   |   |   |   |   |   |   |   |   |
|     Interest                                                       |   | $                    | 4,976    |   |   | $ | 6,520 |   |   | $ | 5,759 |   |
|     Income Taxes                                                   |   | $                    | 3,093    |   |   | $ | 478 |   |   | $ | 3,308 |   |

----

----

----

|                                                    |   | Years ended June 30,                               |       |
|---------------------------------------------------------|--------|----------------------------------------------------|------------|
|                                                    |   | 2010                                               |       |   | 2009 |   |   | 2008 |   |
|                                                    |   | (in thousands, except share and per share amounts) |       |
| Net earnings                                            |   | $                                                  | 11,127     |   |   | $ | 9,301 |   |   | $ | 6,981 |   |
| Weighted average number of common shares outstanding    |   |                                               |       |   |   |   |   |   |   |   |   |   |
|   assuming no exercise of outstanding options |   |                                               | 10,197,178 |   |   |   | 10,332,728 |   |   |   | 11,265,388 |   |
| Dilutive stock options using the treasury stock method  |   |                                               | 106,792    |   |   |   | 71,250 |   |   |   | 241,449 |   |
| Dilutive common shares outstanding                      |   |                                               | 10,303,970 |   |   |   | 10,403,978 |   |   |   | 11,506,837 |   |
| Basic earnings per common share                         |   | $                                                  | 1.09       |   |   | $ | 0.90 |   |   | $ | 0.62 |   |
| Diluted earnings per common share                       |   | $                                                  | 1.08       |   |   | $ | 0.89 |   |   | $ | 0.61 |   |

----

|                             |   | Years ended June 30, |   |
|----------------------------------|--------|----------------------|--------|
|                             |   | 2010                 |   |   | 2009 |   |   | 2008 |   |
| Antidilutive stock option shares |   |                 | 11,543 |   |   |   | 140,088 |   |   |   | 129,282 |   |

----

|                         |   |                   |   |   |          |   |
|------------------------------|--------|------------------------|--------|--------|---------------|--------|
|                         |   | June 30, 2010          |   |   | June 30, 2009 |   |
|                         |   | Carrying Cost          |   |   | Fair Value    |   |   | Carrying Cost |   |   | Fair Value |   |
|                         |   | (dollars in thousands) |   |
| Federal Reserve Bank Stock   |   | $                      | 1,655  |   |          | $      | 1,655 |   |   | $ | 1,055 |   |   | $ | 1,055 |   |
| Federal Home Loan Bank Stock |   |                   | 1,604  |   |          |   | 1,604 |   |   |   | 1,666 |   |   |   | 1,666 |   |
| Mortgage-backed investments  |   |                   | 761    |   |          |   | 824 |   |   |   | 1,349 |   |   |   | 1,405 |   |
|                         |   | $                      | 4,020  |   |          | $      | 4,083 |   |   | $ | 4,070 |   |   | $ | 4,126 |   |

| (in thousands)                                                     |   | Amortized |   |   | Gross Unrealized |   |   | Fair   |   |   | Carrying |   |
|--------------------------------------------------------------------|--------|-----------|--------|--------|------------------|--------|--------|--------|--------|--------|----------|--------|
|                                                               |   | Cost      |   |   | Gains / (Losses) |   |   | Value  |   |   | Value    |   |
|        U.S. Treasury securities |   | $         | 10,147 |   |             | $      | 939    |   |   | $      | 11,086   |   |   | $ | 11,086 |   |
|        Corporate bonds          |   |      | 50,910 |   |             |   | 2,619  |   |   |   | 53,529   |   |   |   | 53,529 |   |
|        Mutual fund investments  |   |      | 2,702  |   |             |   | 637    |   |   |   | 3,339    |   |   |   | 3,339 |   |
|    Total securities available-for-sale              |   | $         | 63,759 |   |             | $      | 4,195  |   |   | $      | 67,954   |   |   | $ | 67,954 |   |

|    (in thousands)                                                          |   | Amortized |    |   | Gross Unrealized |   |   | Fair   |   |   | Carrying |   |
|-------------------------------------------------------------------------------------------|--------|-----------|---------|--------|------------------|--------|--------|--------|--------|--------|----------|--------|
|                                                                                      |   | Cost      |    |   | Gains / (Losses) |   |   | Value  |   |   | Value    |   |
|        U.S. Agency collateralized mortgage obligations |   | $         | 45,673  |   |             | $      | 895    |   |   | $      | 46,568   |   |   | $ | 46,568 |   |
|        Trust preferred securities                      |   |      | 14,605  |   |             |   | 915    |   |   |   | 15,520   |   |   |   | 15,520 |   |
|        Corporate bonds                                 |   |      | 39,695  |   |             |   | 597    |   |   |   | 40,292   |   |   |   | 40,292 |   |
|        U.S. Treasury securities                        |   |      | 10,167  |   |             |   | 19     |   |   |   | 10,186   |   |   |   | 10,186 |   |
|        Mutual fund investments                         |   |      | 2,702   |   |             |   | (238   | )      |   |   | 2,464    |   |   |   | 2,464 |   |
|        Equity investment                               |   |      | 578     |   |             |   | (78    | )      |   |   | 500      |   |   |   | 500 |   |
|    Total securities available-for-sale                                     |   | $         | 113,420 |   |             | $      | 2,110  |   |   | $      | 115,530  |   |   | $ | 115,530 |   |

----

|                                                      |   | Amortized Cost |   |   | Fair Value |   |
|-----------------------------------------------------------|--------|----------------|--------|--------|------------|--------|
|                                                      |   | (in thousands) |   |
|   Due three months or less                      |   | $              | 2,702  |   |       | $      | 3,339 |   |
|   Due after three months but less than one year |   |           | 9,646  |   |       |   | 9,651 |   |
|   Due after one year but less then 5 years      |   |           | 46,267 |   |       |   | 49,383 |   |
|   Due after five years                          |   |           | 5,144  |   |       |   | 5,581 |   |
| Total securities available-for-sale                       |   | $              | 63,759 |   |       | $      | 67,954 |   |

|                            |   | Available-for-sale           |   |
|---------------------------------|--------|------------------------------|--------|
|                            |   | For the years ended June 30, |   |
|                            |   | 2010                         |   |   | 2009 |   |   | 2008 |   |
| Gross realized gains            |   | $                            | 3,463  |   |   | $ | - |   |   | $ | - |   |
| Gross realized losses           |   |                         | (27    | ) |   |   | - |   |   |   | - |   |
| Other than temporary impairment |   |                         | -      |   |   |   | (869 | ) |   |   | (659 | ) |
| Total                           |   | $                            | 3,436  |   |   | $ | (869 | ) |   | $ | (659 | ) |

|                   |   | Less than 12 Months |   |   | 12 Months or More |   |   | Total      |   |
|------------------------|--------|---------------------|--------|--------|-------------------|--------|--------|------------|--------|
|                   |   | Unrealized          |   |   | Estimated         |   |   | Unrealized |   |   | Estimated |   |   | Unrealized |   |   | Estimated |   |
|                   |   | Loss                |   |   | Fair Value        |   |   | Loss       |   |   | Fair Value |   |   | Loss |   |   | Fair Value |   |
|                   |   | (in thousands)      |   |
|                   |   |                |   |   |              |   |   |       |   |   |   |   |   |   |   |   |   |   |
| Equity investment      |   | $                   | -      |   |              | $      | -      |       |   | $ | (78 | ) |   | $ | 500 |   |   | $ | (78 | ) |   | $ | 500 |   |
| Mutual fund investment |   |                | -      |   |              |   | -      |       |   |   | (238 | ) |   |   | 2,464 |   |   |   | (238 | ) |   |   | 2,464 |   |
| Total                  |   | $                   | -      |   |              | $      | -      |       |   | $ | (316 | ) |   | $ | 2,964 |   |   | $ | (316 | ) |   | $ | 2,964 |   |

----

|                      |   | June 30,       |   |
|---------------------------|--------|----------------|--------|
|                      |   | 2010           |   |   | 2009 |   |
|                      |   | (in thousands) |   |
| Other lessee receivables  |   | $              | 1,039  |   |   | $ | 1,131 |   |
| Accrued interest          |   |           | 1,263  |   |   |   | 1,354 |   |
| Financial institutions    |   |           | -      |   |   |   | 1,013 |   |
| Miscellaneous receivables |   |           | -      |   |   |   | 10 |   |
|                      |   | $              | 2,302  |   |   | $ | 3,508 |   |

|                                                                     |   | June 30, |    |
|--------------------------------------------------------------------------|--------|----------|---------|
| (in thousands)                                                           |   | 2010     |    |   | 2009 |   |
|                                                                     |   |     |    |   |   |   |
|   Minimum lease payments receivable                            |   | $        | 197,341 |   |   | $ | 229,041 |   |
|   Estimated residual value                                     |   |     | 16,490  |   |   |   | 12,256 |   |
|   Less unearned income                                         |   |     | (18,764 | ) |   |   | (24,379 | ) |
|      Net investment in leases before allowances |   |     | 195,067 |   |   |   | 216,918 |   |
|   Less allowance for lease losses                              |   |     | (2,569  | ) |   |   | (3,182 | ) |
|   Less valuation allowance for estimated residual value        |   |     | (113    | ) |   |   | (113 | ) |
|      Net investment in leases                   |   | $        | 192,385 |   |   | $ | 213,623 |   |

| (in thousands)                     |   | Lease      |    |   | Estimated      |   |   |   |   |
|------------------------------------|--------|------------|---------|--------|----------------|--------|--------|--------|--------|
| Years ended June 30,               |   | Receivable |    |   | Residual Value |   |   | Total  |   |
|      2011 |   | $          | 97,058  |   |           | $      | 3,654  |   |   | $ | 100,712 |   |
|      2012 |   |       | 60,877  |   |           |   | 3,590  |   |   |   | 64,467 |   |
|      2013 |   |       | 28,204  |   |           |   | 7,058  |   |   |   | 35,262 |   |
|      2014 |   |       | 9,602   |   |           |   | 1,859  |   |   |   | 11,461 |   |
|      2015 |   |       | 1,568   |   |           |   | 293    |   |   |   | 1,861 |   |
| Thereafter                         |   |       | 32      |   |           |   | 36     |   |   |   | 68 |   |
|                               |   |       | 197,341 |   |           |   | 16,490 |   |   |   | 213,831 |   |
| Less unearned income               |   |       | (15,648 | )      |           |   | (3,116 | )      |   |   | (18,764 | ) |
| Less allowances                    |   |       | (2,569  | )      |           |   | (113   | )      |   |   | (2,682 | ) |
|                               |   | $          | 179,124 |   |           | $      | 13,261 |   |   | $ | 192,385 |   |

----

| Years ending June 30,                        |   | Non-recourse Debt |   |
|----------------------------------------------|--------|-------------------|--------|
|                                         |   | (in thousands)    |   |
|      2011           |   | $                 | 5,618  |   |
|      2012           |   |              | 4,800  |   |
|      2013           |   |              | 2,605  |   |
|      2014           |   |              | 201    |   |
|      2015           |   |              | 49     |   |
| Total non-recourse debt                      |   |              | 13,273 |   |
| Deferred interest expense                    |   |              | 1,064  |   |
| Discounted lease rentals assigned to lenders |   | $                 | 14,337 |   |

|                                                                       |   | June 30, |   |
|----------------------------------------------------------------------------|--------|----------|--------|
| (in thousands)                                                             |   | 2010     |   |   | 2009 |   |
|                                                                       |   |     |   |   |   |   |
|   Commercial loan syndications                                   |   | $        | 54,242 |   |   | $ | 63,064 |   |
|   Commercial real estate loans                                   |   |     | 11,735 |   |   |   | 11,974 |   |
|   Revolving lines of credit                                      |   |     | 2,350  |   |   |   | - |   |
|      Total commercial loans                       |   |     | 68,327 |   |   |   | 75,038 |   |
|   Less unearned income and discounts net of initial direct costs |   |     | (1,396 | ) |   |   | (2,636 | ) |
|   Less allowance for loan losses                                 |   |     | (1,522 | ) |   |   | (1,272 | ) |
|      Net commercial loans                         |   | $        | 65,409 |   |   | $ | 71,130 |   |

|                                                                     |   | 2010           |   |   | 2009   |   |
|--------------------------------------------------------------------------|--------|----------------|--------|--------|--------|--------|
|                                                                     |   | (in thousands) |   |
| Allowance for credit losses at beginning of year                         |   | $              | 4,830  |   |   | $      | 3,921 |   |
|      Charge-off of lease receivables            |   |           | (795   | )      |   |   | (729 | ) |
|      Charge-off of transactions-in-process      |   |           | -      |   |   |   | (50 | ) |
|      Recovery of amounts previously written off |   |           | 82     |   |   |   | 13 |   |
|      Provision for credit losses                |   |           | 350    |   |   |   | 1,675 |   |
| Allowance for credit losses at end of year                               |   | $              | 4,467  |   |   | $      | 4,830 |   |
| Components:                                                              |   |           |   |   |   |   |   |   |
|     Allowance for lease losses                       |   | $              | 2,682  |   |   | $      | 3,295 |   |
|     Allowance for loan losses                        |   |           | 1,522  |   |   |   | 1,272 |   |
|     Liability for unfunded loan commitments          |   |           | 20     |   |   |   | 20 |   |
|     Allowance for losses on transactions-in-process  |   |           | 243    |   |   |   | 243 |   |
|                                                                     |   | $              | 4,467  |   |   | $      | 4,830 |   |
| Allowance for credit losses as a percent of net                          |   |           |   |   |   |   |   |   |
|     investment in leases and loans before allowances |   |           | 1.7    | %      |   |   | 1.6 | % |

----

|                            |   | June 30, 2010 |   |   | June 30, 2009 |   |
|---------------------------------|--------|---------------|--------|--------|---------------|--------|
|                            |   |          |   |   | Weighted      |   |   |   |   |   | Weighted |   |
| (dollars in thousands)          |   | Amount        |   |   | Average Rate  |   |   | Amount |   |   | Average Rate |   |
|                            |   |          |   |   |          |   |   |   |   |   |   |   |
| Short-term borrowings           |   |          |   |   |          |   |   |   |   |   |   |   |
|    FHLB advances |   | $             | -      |   |          |   | - |   |   | $ | 25,444 |   |   |   | 0.33 | % |
|    FRB advances  |   |          | -      |   |          |   | - |   |   |   | 10,000 |   |   |   | 0.50 | % |
|                            |   |          | -      |   |          |   |   |   |   |   | 35,444 |   |   |   |   |   |
|                            |   |          |   |   |          |   |   |   |   |   |   |   |   |   |   |   |
| Long-term Borrowings            |   |          |   |   |          |   |   |   |   |   |   |   |   |   |   |   |
|    FHLB advances |   |          | 10,000 |   |          |   | 2.07 | % |   |   | 10,000 |   |   |   | 2.07 | % |
|                            |   | $             | 10,000 |   |          |   |   |   |   | $ | 45,444 |   |   |   |   |   |

|                                                        |   | June 30, 2010          |    |   | June 30, 2009 |   |
|-------------------------------------------------------------|--------|------------------------|---------|--------|---------------|--------|
|                                                        |   | (dollars in thousands) |    |
| Non-interest bearing deposits                               |   |                   |    |   |          |   |   |   |   |   |   |   |
|      Demand deposits               |   | $                      | 943     |   |          |   | 0.5 | % |   | $ | 1,831 |   |   |   | 0.8 | % |
|                                                        |   |                   |    |   |          |   |   |   |   |   |   |   |   |   |   |   |
| Interest-bearing deposits                                   |   |                   |    |   |          |   |   |   |   |   |   |   |   |   |   |   |
|      Demand deposits               |   |                   | 291     |   |          |   | 0.1 | % |   |   | 224 |   |   |   | 0.1 | % |
|      Savings deposits              |   |                   | 64,700  |   |          |   | 31.4 | % |   |   | 68,162 |   |   |   | 30.9 | % |
|      Time certificates of deposits |   |                   | 139,988 |   |          |   | 68.0 | % |   |   | 150,727 |   |   |   | 68.2 | % |
| Total Deposits                                              |   | $                      | 205,922 |   |          |   | 100.0 | % |   | $ | 220,944 |   |   |   | 100.0 | % |

----

| Years Ending:                            |   | (in thousands) |    |
|------------------------------------------|--------|----------------|---------|
|      2011       |   | $              | 114,670 |   |
|      2012       |   |           | 19,751  |   |
|      2013       |   |           | 5,567   |   |
|      Thereafter |   |           | -       |   |
| Total time certificates of deposit       |   | $              | 139,988 |   |

|   | · | Level 1 - Valuation is based upon unadjusted quoted prices for identical instruments traded in active markets; |
|--------|--------|----------------------------------------------------------------------------------------------------------------|

|   | · | Level 2 - Valuation is based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active and model-based valuation techniques for which all significant assumptions are observable in the market; |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Level 3 - Valuation is generated from model-based techniques that use inputs not observable in the market and based on the entity’s own judgment.  Level 3 valuation techniques could include the use of option pricing models, discounted cash flow models and similar techniques, and rely on assumptions that market participants would use in pricing the asset or liability. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (in thousands)                                                          |   | Total      |    |   | Quoted Price in Active Markets for Identical Assets |   |   | SignificantOther Observable Inputs |   |   | Significant Unobservable Inputs |   |
|-------------------------------------------------------------------------|--------|------------|---------|--------|-----------------------------------------------------|--------|--------|------------------------------------|--------|--------|---------------------------------|--------|
| Description of Assets / Liabilities                                     |   | Fair Value |    |   | (Level 1)                                           |   |   | (Level 2)                          |   |   | (Level 3)                       |   |
|                                                                    |   |       |    |   |                                                |   |   |                               |   |   |                            |   |
| As of June 30, 2010                                                     |   |       |    |   |                                                |   |   |                               |   |   |                            |   |
|     U.S. Treasury Securities                        |   | $          | 11,086  |   |                                                | $      | 11,086 |                               |   | $      | -                               |   |   | $ | - |   |
|     Corporate bonds                                 |   |       | 53,529  |   |                                                |   | -      |                               |   |   | 53,529                          |   |   |   | - |   |
|     Mutual fund investment                          |   |       | 3,339   |   |                                                |   | 3,339  |                               |   |   | -                               |   |   |   | - |   |
|                                                                    |   |       | 67,954  |   |                                                | $      | 14,425 |                               |   | $      | 53,529                          |   |   | $ | - |   |
|                                                                    |   |       |    |   |                                                |   |   |                               |   |   |                            |   |   |   |   |   |
| As of June 30, 2009                                                     |   |       |    |   |                                                |   |   |                               |   |   |                            |   |   |   |   |   |
|     U.S. Agency collateralized mortgage obligations |   | $          | 46,568  |   |                                                | $      | -      |                               |   | $      | 46,568                          |   |   | $ | - |   |
|     Trust preferred securities                      |   |       | 15,520  |   |                                                |   | 15,520 |                               |   |   | -                               |   |   |   | - |   |
|     Corporate bonds                                 |   |       | 40,292  |   |                                                |   | -      |                               |   |   | 40,292                          |   |   |   | - |   |
|     U.S. Treasury securities                        |   |       | 10,186  |   |                                                |   | 10,186 |                               |   |   | -                               |   |   |   | - |   |
|     Mutual fund investment                          |   |       | 2,464   |   |                                                |   | 2,464  |                               |   |   | -                               |   |   |   | - |   |
|     Equity investment                               |   |       | 500     |   |                                                |   | 500    |                               |   |   | -                               |   |   |   | - |   |
|                                                                    |   | $          | 115,530 |   |                                                | $      | 28,670 |                               |   | $      | 86,860                          |   |   | $ | - |   |

----

|                                                                  |   | June 30, 2010  |    |   | June 30, 2009 |   |
|-----------------------------------------------------------------------|--------|----------------|---------|--------|---------------|--------|
|                                                                  |   | Carrying       |    |   | Estimated     |   |   | Carrying |   |   | Estimated |   |
|                                                                  |   | Amount         |    |   | Fair Value    |   |   | Amount |   |   | Fair Value |   |
|                                                                  |   | (in thousands) |    |
| Financial Assets:                                                     |   |           |    |   |          |   |   |   |   |   |   |   |
|    Cash and cash equivalents                           |   | $              | 73,988  |   |          | $      | 73,988 |   |   | $ | 55,217 |   |   | $ | 55,217 |   |
|    Investments                                         |   |           | 4,020   |   |          |   | 4,083 |   |   |   | 4,070 |   |   |   | 4,126 |   |
|    Securities available-for-sale investment securities |   |           | 67,954  |   |          |   | 67,954 |   |   |   | 115,530 |   |   |   | 115,530 |   |
|    Commercial loans                                    |   |           | 65,409  |   |          |   | 65,532 |   |   |   | 71,130 |   |   |   | 70,309 |   |
| Financial Liabilities:                                                |   |           |    |   |          |   |   |   |   |   |   |   |   |   |   |   |
|    Demand and savings deposits                         |   |           | 65,934  |   |          |   | 65,934 |   |   |   | 70,217 |   |   |   | 70,217 |   |
|    Time certificate of deposits                        |   |           | 139,988 |   |          |   | 140,764 |   |   |   | 150,727 |   |   |   | 151,743 |   |
|    Short-term borrowings                               |   |           | -       |   |          |   | - |   |   |   | 35,444 |   |   |   | 35,444 |   |
|    Long-term borrowings                                |   | $              | 10,000  |   |          | $      | 10,124 |   |   | $ | 10,000 |   |   | $ | 9,980 |   |

|                            |   | Years ended June 30, |   |
|---------------------------------|--------|----------------------|--------|
|                            |   | 2010                 |   |   | 2009 |   |   | 2008 |   |
|                            |   | (in thousands)       |   |
| Current tax (benefit) expense:  |   |                 |   |   |   |   |   |   |   |
|    Federal       |   | $                    | 934    |   |   | $ | (494 | ) |   | $ | 2,861 |   |
|    State         |   |                 | 1,435  |   |   |   | 1,128 |   |   |   | 918 |   |
|                            |   |                 | 2,369  |   |   |   | 634 |   |   |   | 3,779 |   |
| Deferred tax (benefit) expense: |   |                 |   |   |   |   |   |   |   |   |   |   |
|    Federal       |   |                 | 5,007  |   |   |   | 5,703 |   |   |   | 310 |   |
|    State         |   |                 | (483   | ) |   |   | (756 | ) |   |   | 100 |   |
|                            |   |                 | 4,524  |   |   |   | 4,947 |   |   |   | 410 |   |
|                            |   | $                    | 6,893  |   |   | $ | 5,581 |   |   | $ | 4,189 |   |

----

|                                        |   | June 30,       |   |
|---------------------------------------------|--------|----------------|--------|
|                                        |   | 2010           |   |   | 2009 |   |
|                                        |   | (in thousands) |   |
| Deferred income tax liabilities:            |   |           |   |   |   |   |
|    Tax operating leases      |   | $              | 16,475 |   |   | $ | 12,860 |   |
|    Deferred selling expenses |   |           | 1,853  |   |   |   | 1,955 |   |
|    Other investments         |   |           | 1,160  |   |   |   | 721 |   |
|    Depreciation, other       |   |           | 175    |   |   |   | - |   |
| Total liabilities                           |   |           | 19,663 |   |   |   | 15,536 |   |
| Deferred income tax assets:                 |   |           |   |   |   |   |   |   |
|    Allowances and reserves   |   |           | (1,831 | ) |   |   | (1,980 | ) |
|    State income taxes        |   |           | (502   | ) |   |   | (395 | ) |
|    Depreciation, other       |   |           | -      |   |   |   | (369 | ) |
|    Stock-based compensation  |   |           | (97    | ) |   |   | (120 | ) |
| Total assets                                |   |           | (2,430 | ) |   |   | (2,864 | ) |
| Net deferred income tax liabilities         |   | $              | 17,233 |   |   | $ | 12,672 |   |

|                                                                       |   | Years ended June 30, |   |
|----------------------------------------------------------------------------|--------|----------------------|--------|
|                                                                       |   | 2010                 |   |   | 2009 |   |   | 2008 |   |
| Federal statutory rate                                                     |   |                 | 35.00  | % |   |   | 35.00 | % |   |   | 35.00 | % |
| State tax, net of Federal benefit                                          |   |                 | 5.36   |   |   |   | 4.70 |   |   |   | 5.30 |   |
| Other, mainly tax exempt leases                                            |   |                 | (2.11  | ) |   |   | (2.20 | ) |   |   | (2.80 | ) |
|           Effective rate |   |                 | 38.25  | % |   |   | 37.50 | % |   |   | 37.50 | % |

|                                                               |   | Years ended June 30,   |   |
|--------------------------------------------------------------------|--------|------------------------|--------|
|                                                               |   | 2010                   |   |   | 2009 |   |
|                                                               |   | (dollars in thousands) |   |
| Balance, beginning of period                                       |   | $                      | 885    |   |   | $ | 700 |   |
|    Increase for tax positions in current year       |   |                   | 58     |   |   |   | 502 |   |
|    Decreases for tax positions taken in prior years |   |                   | (87    | ) |   |   | (124 | ) |
|    Lapse of statue of limitations                   |   |                   | (113   | ) |   |   | (154 | ) |
|    Decrease for interest and penalties              |   |                   | (28    | ) |   |   | (39 | ) |
| Balance, end of period                                             |   | $                      | 715    |   |   | $ | 885 |   |

----

|                                                             |   | June 30,     |      |
|------------------------------------------------------------------|--------|--------------|-----------|
|                                                             |   | 2010         |      |   | 2009 |   |   | 2008 |   |
|                                                             |   |  Shares |      |   | Weighted Average Exercise Price |   |   | Shares |   |   | WeightedAverageExercise Price |   |   |  Shares |   |   | Weighted AverageExercise Price |   |
| Options outstanding at beginning     of year |   |         | 344,038   |   |   | $ | 8.49 |   |   |   | 451,374 |   |   | $ | 9.18 |   |   |   | 860,229 |   |   | $ | 8.91 |   |
| Exercised                                                        |   |         | (120,071  | ) |   |   | 9.46 |   |   |   | (40,388 | ) |   |   | 9.30 |   |   |   | (377,300 | ) |   |   | 8.13 |   |
| Canceled/expired                                                 |   |         | (4,245    | ) |   |   | 12.13 |   |   |   | (66,948 | ) |   |   | 12.60 |   |   |   | (31,555 | ) |   |   | 14.26 |   |
| Options outstanding at end of year                               |   |         | 219,722   |   |   | $ | 7.90 |   |   |   | 344,038 |   |   | $ | 8.49 |   |   |   | 451,374 |   |   | $ | 9.18 |   |
|                                                             |   |         |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares available for issuance                                    |   |         | 1,605,260 |   |   |   |   |   |   |   | 1,499,557 |   |   |   |   |   |   |   | 1,318,202 |   |   |   |   |   |
|                                                             |   |         |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Options exercisable                                              |   |         | 219,722   |   |   |   |   |   |   |   | 344,038 |   |   |   |   |   |   |   | 436,365 |   |   |   |   |   |

| As of June 30, 2010                 |                          |
|-------------------------------------|-------------------------------|
| Options Outstanding and Exercisable |                          |
| Range ofExercise Prices             |                          |   | NumberOutstanding |   |   | Weighted Average RemainingContractual Life (in years) |   |   | Weighted AverageExercise Price |   |
|                                | $5.20 - $  8.81     |   |   |   | 150,463 |   |   |   | 1.02 |   |   | $ | 5.94 |   |
|                                | 9.96 -   12.49 |   |   |   |  69,259 |   |   |   | 2.35 |   |   |   | 12.15 |   |
|                                | $5.20 - $12.49                |   |   |   | 219,722 |   |   |   | 1.44 |   |   | $ | 7.90 |   |

----

|                              |   | June 30,               |    |
|-----------------------------------|--------|------------------------|---------|
|                              |   | 2010                   |    |   | 2009 |   |
|                              |   | (dollars in thousands) |    |
| California First National Bancorp |   | Amount                 |    |   | Ratio |   |   | Amount |   |   | Ratio |   |
| Tier 1 risk-based capital         |   | $                      | 195,869 |   |   |   | 50.9 | % |   | $ | 190,024 |   |   |   | 45.0 | % |
| Total risk-based capital          |   | $                      | 200,336 |   |   |   | 52.1 | % |   | $ | 194,854 |   |   |   | 46.1 | % |
| Tier 1 leverage capital           |   | $                      | 195,869 |   |   |   | 45.0 | % |   | $ | 190,024 |   |   |   | 40.1 | % |
|                              |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| California First National Bank    |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Tier 1 risk-based capital         |   | $                      | 71,500  |   |   |   | 23.4 | % |   | $ | 64,176 |   |   |   | 21.3 | % |
| Total risk-based capital          |   | $                      | 74,393  |   |   |   | 24.4 | % |   | $ | 66,759 |   |   |   | 22.2 | % |
| Tier 1 leverage capital           |   | $                      | 71,500  |   |   |   | 24.8 | % |   | $ | 64,176 |   |   |   | 19.7 | % |

|                 |   | Future minimum |   |
|----------------------|--------|----------------|--------|
| Years ending         |   | lease payments |   |
|   June 30, |   | (in thousands) |   |
| 2011                 |   | $              | 789    |   |
| 2012                 |   |           | 815    |   |
| 2013                 |   |           | 1,683  |   |
| 2014                 |   |           | 282    |   |
| 2015                 |   |           | -      |   |
|                 |   | $              | 3,569  |   |

----

|                                                      |   |           |    |   |     |   |    | Bancorp and |   |   |         |   |
|-----------------------------------------------------------|--------|----------------|---------|--------|----------|--------|---------|-------------|--------|--------|--------------|--------|
|                                                      |   | CalFirst       |    |   | CalFirst |   |    | Eliminating |   |   |         |   |
|                                                      |   | Leasing        |    |   | Bank     |   |    | Entries     |   |   | Consolidated |   |
|                                                      |   | (in thousands) |    |
| Year end June 30, 2010                                    |   |           |    |   |     |   |    |        |   |   |         |   |
| Net direct finance, loan and interest income              |   |           |    |   |     |   |    |        |   |   |         |   |
|     after provision for credit losses |   | $              | 9,922   |   |     | $      | 10,771  |        |   | $      | 879          |   |   | $ | 21,572 |   |
| Other income                                              |   |           | 3,850   |   |     |   | 4,239   |        |   |   | (1           | )      |   |   | 8,088 |   |
| Gross profit                                              |   | $              | 13,772  |   |     | $      | 15,010  |        |   | $      | 878          |   |   | $ | 29,660 |   |
| Net earnings                                              |   | $              | 3,611   |   |     | $      | 7,324   |        |   | $      | 192          |   |   | $ | 11,127 |   |
| Total assets                                              |   | $              | 139,077 |   |     | $      | 294,856 |        |   | $      | 19,669       |   |   | $ | 453,602 |   |
|                                                      |   |           |    |   |     |   |    |        |   |   |         |   |   |   |   |   |
| Year end June 30, 2009                                    |   |           |    |   |     |   |    |        |   |   |         |   |   |   |   |   |
| Net direct finance, loan and interest income              |   |           |    |   |     |   |    |        |   |   |         |   |   |   |   |   |
|     after provision for credit losses |   | $              | 11,888  |   |     | $      | 9,321   |        |   | $      | 361          |   |   | $ | 21,570 |   |
| Other income                                              |   |           | 6,410   |   |     |   | 886     |        |   |   | (512         | )      |   |   | 6,784 |   |
| Gross profit                                              |   | $              | 18,298  |   |     | $      | 10,207  |        |   | $      | (151         | )      |   | $ | 28,354 |   |
| Net earnings                                              |   | $              | 4,872   |   |     | $      | 4,249   |        |   | $      | 180          |   |   | $ | 9,301 |   |
| Total assets                                              |   | $              | 126,549 |   |     | $      | 339,361 |        |   | $      | 23,062       |   |   | $ | 488,972 |   |
|                                                      |   |           |    |   |     |   |    |        |   |   |         |   |   |   |   |   |
| Year end June 30, 2008                                    |   |           |    |   |     |   |    |        |   |   |         |   |   |   |   |   |
| Net direct finance, loan and interest income              |   |           |    |   |     |   |    |        |   |   |         |   |   |   |   |   |
|     after provision for credit losses |   | $              | 15,076  |   |     | $      | 5,599   |        |   | $      | 266          |   |   | $ | 20,941 |   |
| Other income                                              |   |           | 5,245   |   |     |   | 872     |        |   |   | -            |   |   |   | 6,117 |   |
| Gross profit                                              |   | $              | 20,321  |   |     | $      | 6,471   |        |   | $      | 266          |   |   | $ | 27,058 |   |
| Net earnings                                              |   | $              | 3,625   |   |     | $      | 1,791   |        |   | $      | 1,565        |   |   | $ | 6,981 |   |
| Total assets                                              |   | $              | 175,688 |   |     | $      | 217,756 |        |   | $      | (6,850       | )      |   | $ | 386,594 |   |
|                                                      |   |           |    |   |     |   |    |        |   |   |         |   |   |   |   |   |

----

| Condensed Balance Sheets                                                                                       |   | As of June 30, |    |
|----------------------------------------------------------------------------------------------------------------|--------|----------------|---------|
| (in thousands, except share amounts)                                                                           |   | 2010           |    |   | 2009 |   |
| Assets                                                                                                         |   |           |    |   |   |   |
|    Cash and cash equivalents                                                                    |   | $              | 7,234   |   |   | $ | 15,392 |   |
|    Investment securities                                                                        |   |           | 9,693   |   |   |   | 7,443 |   |
|    Intercompany receivables                                                                     |   |           | 184     |   |   |   | 191 |   |
|    Investments in bank subsidiary                                                               |   |           | 73,501  |   |   |   | 65,739 |   |
|    Investments in non-bank subsidiary                                                           |   |           | 62,890  |   |   |   | 58,730 |   |
|    Intercompany note receivable                                                                 |   |           | 53,868  |   |   |   | 52,961 |   |
|    Other assets                                                                                 |   |           | 3,678   |   |   |   | 2,557 |   |
|    Premises and other fixed assets                                                              |   |           | 27      |   |   |   | 38 |   |
|                                                                                                           |   | $              | 211,075 |   |   | $ | 203,051 |   |
| Liabilities                                                                                                    |   |           |    |   |   |   |   |   |
|    Accrued liabilities                                                                          |   | $              | 931     |   |   | $ | 2,066 |   |
|    Payable to non-bank subsidiary                                                               |   |           | 221     |   |   |   | 169 |   |
|    Deferred income taxes, net                                                                   |   |           | 11,375  |   |   |   | 9,440 |   |
|                                                                                                           |   |           | 12,527  |   |   |   | 11,675 |   |
| Stockholders’ Equity                                                                                     |   |           |    |   |   |   |   |   |
|    Preferred stock; 2,500,000 shares authorized, none issued                                    |   |           | -       |   |   |   | - |   |
|    Common stock, $0.01 par value; 20,000,000 shares authorized;                                 |   |           |    |   |   |   |   |   |
|         10,240,202 (2010) and 10,145,785 (2009) issued and outstanding |   |           | 102     |   |   |   | 101 |   |
|    Additional paid-in capital                                                                   |   |           | 1,224   |   |   |   | 395 |   |
|    Retained earnings                                                                            |   |           | 194,543 |   |   |   | 189,528 |   |
|    Other comprehensive loss, net of tax                                                         |   |           | 2,679   |   |   |   | 1,352 |   |
|                                                                                                           |   |           | 198,548 |   |   |   | 191,376 |   |
|                                                                                                           |   | $              | 211,075 |   |   | $ | 203,051 |   |

| Condensed Statements of Earnings                                                    |   | Years ended June 30, |   |
|-------------------------------------------------------------------------------------|--------|----------------------|--------|
| (in thousands)                                                                      |   | 2010                 |   |   | 2009 |   |
| Income                                                                              |   |                 |   |   |   |   |
|    Dividends from non-bank subsidiary                                |   | $                    | -      |   |   | $ | 52,000 |   |
|    Management fee income from bank subsidiary                        |   |                 | 290    |   |   |   | 281 |   |
|    Management fee income from non-bank subsidiaries                  |   |                 | 795    |   |   |   | 939 |   |
|    Interest income from non-bank subsidiaries                        |   |                 | 907    |   |   |   | 1,901 |   |
|    Other interest income                                             |   |                 | 879    |   |   |   | 362 |   |
|    Loss on investment securities                                     |   |                 | (2     | ) |   |   | (512 | ) |
|                                                                                |   |                 | 2,869  |   |   |   | 54,971 |   |
| Non-interest expense                                                                |   |                 |   |   |   |   |   |   |
|    Compensation and employee benefits                                |   |                 | 1,254  |   |   |   | 1,278 |   |
|    Occupancy                                                         |   |                 | 103    |   |   |   | 46 |   |
|    Professional services                                             |   |                 | 224    |   |   |   | 252 |   |
|    Other general and administrative                                  |   |                 | 215    |   |   |   | 182 |   |
|                                                                                |   |                 | 1,796  |   |   |   | 1,758 |   |
| Income before taxes and equity in undistributed earnings of subsidiaries            |   |                 | 1,073  |   |   |   | 53,213 |   |
| Income tax expense                                                                  |   |                 | 881    |   |   |   | 1,032 |   |
|                                                                                |   |                 | 192    |   |   |   | 52,181 |   |
| Equity in undistributed / (over distributed) comprehensive earnings of subsidiaries |   |                 | 10,935 |   |   |   | (42,880 | ) |
| Net income                                                                          |   | $                    | 11,127 |   |   | $ | 9,301 |   |

----

| Condensed Statements of Cash Flows                                                                 |   | Years ended June 30, |    |
|----------------------------------------------------------------------------------------------------|--------|----------------------|---------|
| (in thousands)                                                                                     |   |                 | 2010    |   |   |   | 2009 |   |
|                                                                                               |   |                 |    |   |   |   |   |   |
| CASH FLOWS FROM OPERATING ACTIVITIES:                                                              |   |                 |    |   |   |   |   |   |
|    Net income                                                                       |   | $                    | 11,127  |   |   | $ | 9,301 |   |
|    Adjustments to reconcile net earnings to cash flows:                             |   |                 |    |   |   |   |   |   |
|        Amortization of premiums or discounts on securities, net |   |                 | 12      |   |   |   | (10 | ) |
|        Net loss recognized on investment securities             |   |                 | 2       |   |   |   | 512 |   |
|        Deferred income taxes                                    |   |                 | 1,789   |   |   |   | 2,919 |   |
|        Equity in undistributed earnings of subsidiaries         |   |                 | (10,935 | ) |   |   | 42,880 |   |
|        Net change in other liabilities                          |   |                 | (1,135  | ) |   |   | 416 |   |
|        Net change in other assets                               |   |                 | (1,121  | ) |   |   | (2,060 | ) |
|        Other, net                                               |   |                 | 11      |   |   |   | 28 |   |
| Net cash (used for) provided by operating activities                                               |   |                 | (250    | ) |   |   | 53,986 |   |
|                                                                                               |   |                 |    |   |   |   |   |   |
| CASH FLOWS FROM INVESTING ACTIVITIES:                                                              |   |                 |    |   |   |   |   |   |
|    Purchase of investment securities                                                |   |                 | (10,290 | ) |   |   | (5,958 | ) |
|    Proceeds from sale of investment securities                                      |   |                 | 8,512   |   |   |   | - |   |
|    Payments for investments in and (advances to) subsidiaries                       |   |                 | (848    | ) |   |   | (21,860 | ) |
| Net cash used for investing activities                                                             |   |                 | (2,626  | ) |   |   | (27,818 | ) |
|                                                                                               |   |                 |    |   |   |   |   |   |
| CASH FLOWS FROM FINANCING ACTIVITIES:                                                              |   |                 |    |   |   |   |   |   |
|    Proceeds from issuance of common stock                                           |   |                 | 1,135   |   |   |   | 375 |   |
|    Payments to repurchase common stock                                              |   |                 | (305    | ) |   |   | (17,518 | ) |
|    Dividends paid                                                                   |   |                 | (6,112  | ) |   |   | (4,874 | ) |
| Net cash used for financing activities                                                             |   |                 | (5,282  | ) |   |   | (22,017 | ) |
|                                                                                               |   |                 |    |   |   |   |   |   |
| NET CHANGE IN CASH AND CASH EQUIVALENTS                                                            |   |                 | (8,158  | ) |   |   | 4,151 |   |
| CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD                                                   |   |                 | 15,392  |   |   |   | 11,241 |   |
| CASH AND CASH EQUIVALENTS AT END OF PERIOD                                                         |   | $                    | 7,234   |   |   | $ | 15,392 |   |

|                                                      |   | Three months ended                      |   |
|-----------------------------------------------------------|--------|-----------------------------------------|--------|
|                                                      |   | September 30,                           |   |   | December 31, |   |   | March 31, |   |   | June 30, |   |
|                                                      |   | (in thousands except per share amounts) |   |
| 2010                                                      |   |                                    |   |   |   |   |   |   |   |   |   |   |
| Direct finance and loan income                            |   | $                                       | 5,943  |   |   | $ | 5,540 |   |   | $ | 5,519 |   |   | $ | 5,062 |   |
| Net direct finance, loan and interest income              |   |                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     after provision for credit losses |   |                                    | 5,728  |   |   |   | 5,251 |   |   |   | 5,491 |   |   |   | 5,102 |   |
| Gross profit                                              |   |                                    | 8,417  |   |   |   | 7,987 |   |   |   | 7,083 |   |   |   | 6,171 |   |
| Net earnings                                              |   | $                                       | 3,453  |   |   | $ | 4,983 |   |   | $ | 2,596 |   |   | $ | 2,000 |   |
|                                                      |   |                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic earnings per common share                           |   | $                                       | 0.34   |   |   | $ | 0.30 |   |   | $ | 0.25 |   |   | $ | 0.20 |   |
| Diluted earnings per common share                         |   | $                                       | 0.34   |   |   | $ | 0.30 |   |   | $ | 0.25 |   |   | $ | 0.19 |   |
| Dividends declared per common share                       |   | $                                       | 0.12   |   |   | $ | 0.48 |   |   | $ | - |   |   | $ | - |   |
|                                                      |   |                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 2009                                                      |   |                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Direct finance and loan income                            |   | $                                       | 6,136  |   |   | $ | 6,630 |   |   | $ | 6,239 |   |   | $ | 6,232 |   |
| Net direct finance, loan and interest income              |   |                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     after provision for credit losses |   |                                    | 4,858  |   |   |   | 5,351 |   |   |   | 5,605 |   |   |   | 5,756 |   |
| Gross profit                                              |   |                                    | 6,427  |   |   |   | 7,664 |   |   |   | 7,003 |   |   |   | 7,261 |   |
| Net earnings                                              |   | $                                       | 1,794  |   |   | $ | 2,525 |   |   | $ | 2,383 |   |   | $ | 2,599 |   |
|                                                      |   |                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic earnings per common share                           |   | $                                       | 0.17   |   |   | $ | 0.25 |   |   | $ | 0.23 |   |   | $ | 0.26 |   |
| Diluted earnings per common share                         |   | $                                       | 0.16   |   |   | $ | 0.25 |   |   | $ | 0.23 |   |   | $ | 0.25 |   |
| Dividends declared per common share                       |   | $                                       | 0.12   |   |   | $ | 0.12 |   |   | $ | 0.12 |   |   | $ | 0.12 |   |

----

|   | · | Pertain to the maintenance of records that in reasonable detail accurately and fairly reflect the transactions and dispositions of the assets of the Company; |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the Company are being made only in accordance with authorizations of management and directors of the Company; and |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the Company’s assets that could have a material effect on the financial statements. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | All financial statements are set forth under Item 8 of this annual report on Form 10-K. Financial statement schedules have been omitted since they are either not required, not applicable, or the information is otherwise included. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| Exhibit # |   | Description of Exhibit                                                                                                                                                                                                                                                 |   | Page No. |
|-----------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------|
| 2.1       |   | Agreement of Merger dated as of May 22, 2001 among Amplicon, Inc., California First National Bancorp and CFNB Merger Sub (incorporated by reference to Exhibit 2.1 to Registrant's Statement on Form 8-K dated May 25, 2001)                                           |   |     |
|      |   |                                                                                                                                                                                                                                                                   |   |     |
| 3.1       |   | Articles of Incorporation of California First National Bancorp (incorporated by reference to Exhibit 3.1 to Registrant's Statement on Form 8-K dated May 25, 2001)                                                                                                     |   |     |
|      |   |                                                                                                                                                                                                                                                                   |   |     |
| 3.2       |   | Bylaws of California First National Bancorp (incorporated by reference to Exhibit 3.2 to Registrant's Statement on Form 8-K dated May 25, 2001)                                                                                                                        |   |     |
|      |   |                                                                                                                                                                                                                                                                   |   |     |
| 10.1      |   | 1995 Equity Participation Plan, as amended to date (incorporated by reference to Exhibit 10.1 to Registrant’s Statement on Form S-8 File No. 333-15683)                                                                                                          |   |     |
|      |   |                                                                                                                                                                                                                                                                   |   |     |
| 10.2      |   | Capital Assurances and Liquidity Maintenance Agreement between California First National Bancorp and California First National Bank, effective as of May 23, 2001 (incorporated by reference to Exhibit 10.1 to Registrant's Statement on Form 8-K dated May 25, 2001) |   |     |
|      |   |                                                                                                                                                                                                                                                                   |   |     |
| 10.3      |   | Agreement by and between California First National Bank and the Office of the Comptroller of the Currency dated as of May 23, 2001 (incorporated by reference to Exhibit 10.2 to Registrant's Statement on Form 8-K dated May 25, 2001)                                |   |     |
|      |   |                                                                                                                                                                                                                                                                   |   |     |
| 10.4      |   | Office Lease dated January 30, 2003, between California First National Bancorp and World Trade Center Building, Inc. (incorporated by reference to Exhibit 10.8 to the Registrant’s March 31, 2003 Form 10-Q)                                                    |   |     |
|      |   |                                                                                                                                                                                                                                                                   |   |     |
| 10.5      |   | Business Loan Agreement dated as of January 20, 2006 between California First Leasing Corporation and Amplicon, Inc. and Bank of America (incorporated by reference to Exhibit 10.6 to the Registrant’s December 31, 2005 Form 10-Q).                            |   |     |
|      |   |                                                                                                                                                                                                                                                                   |   |     |
| 10.6      |   | First Amendment to the Business Loan Agreement between California First Leasing Corporation and Amplicon, Inc. and Bank of America dated as of March 29, 2007 (incorporated by reference to Exhibit 10.7 to Registrant's Statement on Form 8-K dated April 2, 2007)    |   |     |
|      |   |                                                                                                                                                                                                                                                                   |   |     |
| 10.7      |   | Second Amendment to the Business Loan Agreement between California First Leasing Corporation and Amplicon, Inc. and Bank of America dated as of March 29, 2008 (incorporated by reference to Exhibit 10.7 to Registrant's Statement on Form 8-K dated June 16, 2008)   |   |     |
|      |   |                                                                                                                                                                                                                                                                   |   |     |
| 10.8      |   | Second Amendment to Office Lease dated June 11, 2008, between California First National Bancorp and World Trade Center Building, Inc. (incorporated by reference to Exhibit 10.8 to the Registrant’s Statement on Form 8-K dated June 16, 2008)                  |   |     |
|      |   |                                                                                                                                                                                                                                                                   |   |     |
| 10.9      |   | Third Amendment to the Business Loan Agreement between California First Leasing Corporation and Amplicon, Inc. and Bank of America dated as of April 3, 2009 (incorporated by reference to Exhibit 10.9 to Registrant's Statement on Form 8-K dated April 6, 2009)     |   |     |
|      |   |                                                                                                                                                                                                                                                                   |   |     |
| 10.10     |   | Business Loan Agreement between California First Leasing Corporation and Bank of America dated as of March 25, 2010 (incorporated by reference to Exhibit 10.6 to Registrant's Statement on Form 8-K dated April 20, 2010)                                             |   |     |
|      |   |                                                                                                                                                                                                                                                                   |   |     |
| 31.1      |   | Rule 13a-14(a)/15d-14(a) Certifications of Principal Executive Officer                                                                                                                                                                                                 |   | 57       |
|      |   |                                                                                                                                                                                                                                                                   |   |     |
| 31.2      |   | Rule 13a-14(a)/15d-14(a) Certifications of Principal Financial Officer                                                                                                                                                                                                 |   | 58       |
|      |   |                                                                                                                                                                                                                                                                   |   |     |
| 32.0      |   | Section 1350 Certifications by Principal Executive Officer and Principal Financial Officer                                                                                                                                                                             |   | 59       |

----

|   |                    |   |   |               |   |
|--------|-------------------------|--------|--------|--------------------|--------|
| By     | /s/ S. Leslie Jewett    |   | Date:  | September 21, 2010 |   |
|   | S. Leslie Jewett        |   |   |               |   |
|   | Chief Financial Officer |   |   |               |   |

| Signature         |   | Title                                                          |   | Date               |
|------------------------|--------|----------------------------------------------------------------|--------|--------------------|
|                   |   |                                                           |   |               |
|                   |   |                                                           |   |               |
| /s/ Patrick E. Paddon  |   | President, Chief Executive                                     |   | September 21, 2010 |
| Patrick E. Paddon      |   |    Officer and Director                         |   |               |
|                   |   |                                                           |   |               |
|                   |   |                                                           |   |               |
| /s/ Glen T. Tsuma      |   | Vice President, Chief Operating                                |   | September 21, 2010 |
| Glen T. Tsuma          |   |    Officer and Director                         |   |               |
|                   |   |                                                           |   |               |
|                   |   |                                                           |   |               |
| /s/ S. Leslie Jewett   |   | Chief Financial Officer                                        |   | September 21, 2010 |
| S. Leslie Jewett       |   |    (Principal Financial and Accounting Officer) |   |               |
|                   |   |                                                           |   |               |
|                   |   |                                                           |   |               |
| /s/ Michael H. Lowry   |   | Director                                                       |   | September 21, 2010 |
| Michael H. Lowry       |   |                                                           |   |               |
|                   |   |                                                           |   |               |
|                   |   |                                                           |   |               |
| /s/ Harris Ravine      |   | Director                                                       |   | September 21, 2010 |
| Harris Ravine          |   |                                                           |   |               |
|                   |   |                                                           |   |               |
|                   |   |                                                           |   |               |
| /s/ Danilo Cacciamatta |   | Director                                                       |   | September 21, 2010 |
| Danilo Cacciamatta     |   |                                                           |   |               |

----