<PAGE> 1
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
______________________________________________
FORM 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 1996 Commission File No. 33-24541
VINEYARD NATIONAL BANCORP
(Exact Name of Registrant as Specified in its Charter)
California 33-0309110
(State of other jurisdiction of (IRS employer
incorporation or organization) identification number)
9590 Foothill Boulevard 91730
Rancho Cucamonga, California (Zip Code)
(Address of principal executive offices)
Registrant's telephone number, including area code: (909) 987-0177
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days. Yes [x] No [ ]
APPLICABLE TO CORPORATE ISSUES
Indicate the number of shares outstanding of the issuer's classes of
common stock on the latest practicable date. 1,862,643 shares of common stock
as of June 30, 1996.
Page 1 of 15
<PAGE> 2
VINEYARD NATIONAL BANCORP AND SUBSIDIARY
JUNE 30, 1996 AND DECEMBER 31, 1995
TABLE OF CONTENTS
PART I
<TABLE>
<S> <C>
FINANCIAL STATEMENTS
Consolidated Balance Sheets
June 30, 1996 and December 31, 1995 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Consolidated Statements of Income
For the Six Months and Three Months Ended June 30, 1996 and 1995 . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Consolidated Statements of Changes in Stockholders' Equity
For the Six Months Ended June 30, 1996 and 1995 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Consolidated Statements of Cash Flows
For the Six Months Ended June 30, 1996 and 1995 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
</TABLE>
PART II
<TABLE>
<S> <C>
OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
Exhibit 27. Data Schedule . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
SIGNATURES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
</TABLE>
Page 2 of 15
<PAGE> 3
VINEYARD NATIONAL BANCORP AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
JUNE 30, 1996 AND DECEMBER 31, 1995
<TABLE>
<CAPTION>
June 30, December 31,
1996 1995
------------ ------------
<S> <C> <C>
ASSETS
Cash and due from banks $6,712,367 $8,093,749
Federal funds sold 1,409,000 1,925,000
------------ ------------
Total Cash and Cash Equivalents 8,121,367 10,018,749
------------ ------------
Interest-bearing deposits in other financial institutions 693,000 792,000
Investment securities
Available-for-sale 14,135,655 13,431,518
Loans, net of unearned income 86,257,500 77,482,539
Direct lease financing 403,648 588,865
Less: Reserve for probable loan and lease losses (719,110) (783,466)
------------ ------------
85,942,038 77,287,938
Other real estate owned 615,925 608,694
Bank premises and equipment 6,586,052 3,703,294
Accrued interest 604,571 541,975
Cash surrender value of life insurance 547,601 741,834
Other assets 515,612 433,131
------------ ------------
Total Assets $117,761,821 $107,559,133
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
LIABILITIES
Deposits
Demand deposits 28,155,086 25,691,559
Savings and NOW deposits 26,494,398 26,537,492
Money market deposits 13,846,348 16,295,843
Time deposits in denominations
of $100,000 or more 5,880,800 8,932,511
Other time deposits 34,750,188 20,957,042
------------ ------------
109,126,820 98,414,447
Accrued employee salary benefits 270,477 443,013
Accrued interest and other liabilities 856,481 948,959
------------ ------------
Total Liabilities 110,253,778 99,806,419
------------ ------------
STOCKHOLDERS' EQUITY
Contributed Capital
Common stock - authorized 15,000,000 shares, 2,106,258 2,106,258
no par value, issued and outstanding 1,862,643
shares in 1996 and 1995
Additional paid-in capital 3,306,684 3,306,684
Retained earnings 2,110,127 2,327,885
Valuation allowance for investments (15,026) 11,887
------------ ------------
Total Stockholders' Equity 7,508,043 7,752,714
------------ ------------
Total Liabilities and Stockholders' Equity $117,761,821 $107,559,133
============ ============
</TABLE>
See accompanying notes to financial statements. Page 3 of 15
<PAGE> 4
VINEYARD NATIONAL BANCORP AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
FOR THE SIX MONTHS AND THREE MONTHS ENDED JUNE 30, 1996 AND 1995
<TABLE>
<CAPTION>
Six Months Ended June 30, Three Months Ended June 30,
------------------------- ---------------------------
1996 1995 1996 1995
----------- ------------ ------------ ------------
<S> <C> <C> <C> <C>
INTEREST INCOME
Interest and fees on loans $3,789,432 $3,723,935 $1,952,270 $1,804,923
Interest on Investment Securities
Obligations of U.S. Government Agencies and Corporations 353,576 304,138 190,314 200,265
Obligations of State and Political Subdivisions 233 117
Interest on other securities 4,895 4,871 2,449 2,440
Interest on deposits 19,332 10,842 11,715 8,090
Interest on Federal funds sold 110,741 124,807 67,705 66,975
Direct lease financing income 19,598 46,256 8,693 20,799
--------- ---------- ----------- ----------
Total Interest Income 4,297,574 4,215,082 2,233,146 2,103,609
--------- ---------- ----------- ----------
INTEREST EXPENSE
Interest on savings deposits 110,482 165,633 55,409 79,532
Interest on NOW and money market deposits 245,130 302,399 117,446 146,900
Interest on time deposits in denominations of $100,000 or more 172,469 147,121 82,456 83,340
Interest on other time deposits 810,288 494,102 461,440 294,919
Interest on impound accounts 132 5,949 3,686
Interest on Federal funds purchased 115 752 115
--------- ---------- ----------- ----------
Total Interest Expense 1,338,616 1,115,956 716,866 608,377
--------- ---------- ----------- ----------
Net Interest Income 2,958,958 3,099,126 1,516,280 1,495,232
PROVISION FOR LOAN AND LEASE LOSSES 116,300 116,300
--------- ---------- ----------- ----------
Net Interest Income After Provision
for Loan and Lease Losses 2,842,658 3,099,126 1,399,980 1,495,232
--------- ---------- ----------- ----------
</TABLE>
See accompanying notes to financial statements. Page 4 of 15
<PAGE> 5
VINEYARD NATIONAL BANCORP AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
FOR THE SIX MONTHS AND THREE MONTHS ENDED JUNE 30, 1996 AND 1995
<TABLE>
<CAPTION>
Six Months Ended June 30, Three Months Ended June 30,
------------------------- ---------------------------
1996 1995 1996 1995
----------- ------------ ------------- -----------
<S> <C> <C> <C> <C>
OTHER INCOME
Fees and service charges and gain on sale of loans $886,640 $1,265,121 $442,022 $581,677
Sale of mortgage servicing rights 1,410,608 1,410,608
Net loss on sale of investment securities (8,237)
Other Income 4,501 4,568 2,748 2,360
--------- ---------- ----------- ---------
Total Other Income 891,141 2,672,060 444,770 1,994,645
--------- ---------- ----------- ---------
OTHER EXPENSES
Salaries and employee benefits 1,817,899 1,987,627 906,221 988,870
Occupancy expense of premises 505,544 632,060 233,300 321,497
Furniture and equipment expenses 263,455 322,018 141,943 176,858
Other expenses (Note #2) 1,363,059 1,738,682 685,911 922,653
--------- ---------- ----------- ---------
Total Other Expenses 3,949,957 4,680,387 1,967,375 2,409,878
--------- ---------- ----------- ---------
INCOME/(LOSS) BEFORE INCOME TAXES (216,158) 1,090,799 (122,625) 1,079,999
INCOME TAXES (1,600) (447,000) (1,600) (445,400)
--------- ---------- ----------- ---------
NET INCOME/(LOSS) $(217,758) $643,799 $(124,225) $634,599
========= ========== =========== =========
EARNINGS/(LOSS) PER SHARE OF COMMON STOCK (Note #3) $(0.12) $0.35 $(0.07) $0.34
========= ========== =========== =========
</TABLE>
See accompanying notes to financial statements. Page 5 of 15
<PAGE> 6
VINEYARD NATIONAL BANCORP AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY
(UNAUDITED)
FOR THE SIX MONTHS ENDED JUNE 30, 1996 AND 1995
<TABLE>
<CAPTION>
Valuation
Number of Additional Allowance
Shares Common Paid-in Retained for
Outstanding Stock Capital Earnings Investments
------------ ------------- ------------- ----------- ------------
<S> <C> <C> <C> <C> <C>
Balance, January 1, 1995 1,862,643 $2,106,258 $3,306,684 $1,494,874 $(47,672)
Change in net unrealized
loss on investment
securities available-
for-sale 27,674
Net income for
the six months 643,799
---------- ---------- ---------- ---------- --------
Balance, June 30, 1995 1,862,643 $2,106,258 $3,306,684 $2,138,673 $(19,998)
========== ========== ========== ========== ========
Balance, January 1, 1996 1,862,643 $2,106,258 $3,306,684 $2,327,885 $11,887
Change in net unrealized
gain on investment
securities available-
for-sale (26,913)
Net loss for
the six months (217,758)
---------- ---------- ---------- ---------- --------
Balance, June 30, 1996 1,862,643 $2,106,258 $3,306,684 $2,110,127 $(15,026)
========== ========== ========== ========== ========
</TABLE>
See accompanying notes to financial statements. Page 6 of 15
<PAGE> 7
VINEYARD NATIONAL BANCORP AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
FOR THE SIX MONTHS ENDED JUNE 30, 1996 AND 1995
<TABLE>
<CAPTION>
INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS 1996 1995
--------- -----------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES
Interest and fees received $4,875,502 $3,429,279
Service fees and other income received 878,393 2,680,297
Financing revenue received under leases 19,598 46,256
Interest paid (1,352,553) (972,605)
Cash paid to suppliers and employees (3,790,198) (4,891,537)
Income taxes paid (1,600) (1,600)
----------- ------------
Net Cash Provided by Operating Activities 629,142 290,090
----------- ------------
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from sales and maturities of investment
securities held-to-maturity 1,992,500
Proceeds from sales of investment securities
available-for-sale 7,000,000 3,000,000
Purchase of investment securities held-to-maturity (1,961,797)
Purchase of investment securities available-for-sale (7,756,729) (9,951,116)
Proceeds from maturities of deposits in other
financial institutions 99,000 99,000
Purchase of deposits in other financial institutions (792,000)
Net (increase)/decrease in loans to customers (9,669,145) 7,757,819
Net decrease in leases to customers 185,217 347,939
Net (increase)/decrease in other real estate owned (32,848) 136,390
Recoveries on loans previously written off 59,596 258,452
Capital expenditures (3,193,391) (92,306)
Proceeds from sale of property, plant and equipment 69,403 12,880
----------- ------------
Net Cash Provided/(Used) by Investing Activities (13,238,897) 807,761
----------- ------------
CASH FLOWS FROM FINANCING ACTIVITIES
Net decrease in demand deposits, NOW accounts,
savings accounts, and money market deposits (29,062) (4,451,208)
Net increase in certificates of deposit 10,741,435 10,454,491
Decrease in Federal funds purchased (1,000,000)
----------- ------------
Net Cash Provided by Financing Activities 10,712,373 5,003,283
----------- ------------
NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS (1,897,382) 6,101,134
CASH AND CASH EQUIVALENTS, Beginning of year 10,018,749 8,510,019
----------- ------------
CASH AND CASH EQUIVALENTS, End of quarter $8,121,367 $14,611,153
=========== ============
</TABLE>
See accompanying notes to financial statements. Page 7 of 15
<PAGE> 8
VINEYARD NATIONAL BANCORP AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
FOR THE SIX MONTHS ENDED JUNE 30, 1996 AND 1995
<TABLE>
<CAPTION>
1996 1995
---------- ----------
<S> <C> <C>
RECONCILIATION OF NET INCOME/(LOSS) TO
NET CASH USED IN OPERATING ACTIVITIES
Net Income/(Loss) $(217,758) $643,799
---------- ----------
Adjustments to Reconcile Net Income to
Net Cash Provided/(Used) by Operating Activities
Depreciation and amortization 241,599 147,785
Provision for probable credit losses 116,300
Loss on sale of equipment 5,821
Loss on sale of other real estate owned 25,617 40,070
Increase/(decrease) in taxes payable (11,424) 674,051
(Increase)/decrease in other assets 111,751 (422,776)
Increase/(decrease) in unearned loan fees 653,932 (629,867)
(Increase)decrease in interest receivable (62,596) 6,651
Increase/(decrease) in interest payable (13,937) 143,351
Decrease in accrued expense and other liabilities (220,163) (321,211)
(Gain)/loss on sale of investments 8,237
---------- ----------
Total Adjustments 846,900 (353,709)
---------- ----------
Net Cash Provided by Operating Activities $629,142 $290,090
========== ==========
SUPPLEMENTARY INFORMATION
Change in valuation allowance for investment securities $(26,913) $27,674
========== ==========
</TABLE>
DISCLOSURE OF ACCOUNTING POLICY
For purposes of reporting cash flows, cash and cash equivalents include cash on
hand, amounts due from banks and Federal funds sold. Generally, Federal funds
are purchased and sold for one-day periods.
See accompanying notes to financial statements. Page 8 of 15
<PAGE> 9
VINEYARD NATIONAL BANCORP AND SUBSIDIARY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
JUNE 30, 1996 AND 1995
NOTE #1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The accompanying financial statements have been prepared in accordance with
generally accepted accounting principles for interim financial information.
Accordingly, they do not include all of the information and footnotes required
by generally accepted accounting principles for complete financial statements.
In the opinion of Management, all adjustments considered necessary for a fair
statement of the results for the interim period presented have been included
and are of a normal recurring nature. For further information, refer to the
financial statements and footnotes thereto included in the Company's Annual
Report on Form 10-K for the year ended December 31, 1995. The results of
operations for the six month period ended June 30, 1996 are not necessarily
indicative of the results to be expected for the full year. Effective for
years beginning in 1995, the Company was required to implement SFAS No. 114, as
amended by SFAS No. 118, which changes the method of accounting for certain
loans identified as "impaired" and SFAS No. 119, which requires particular
disclosures for derivative financial instruments.
NOTE #2 - OTHER EXPENSES
The following is a breakdown of other expenses for each of the six and three
month periods ended June 30, 1996 and 1995:
<TABLE>
<CAPTION>
Six Months Ended Three Months Ended
June 30, June 30
-------------------------- ----------------------
1996 1995 1996 1995
---------- ---------- -------- --------
<S> <C> <C> <C> <C>
Data processing $391,111 $420,067 $191,327 $204,396
Marketing expenses 150,842 167,570 82,719 86,003
Office supplies, postage
and telephone 139,101 218,079 71,618 143,835
Professional expenses 218,262 284,288 132,766 178,409
Bank insurance and assessments 85,197 231,518 43,622 113,427
Other 378,546 417,160 163,859 196,583
---------- ---------- -------- --------
Total Other Expenses $1,363,059 $1,738,682 $685,911 $922,653
========== ========== ======== ========
</TABLE>
NOTE #3 - EARNINGS/(LOSS) PER COMMON EQUIVALENT SHARE
Earnings/(loss) per share is based upon the weighted average number of shares
outstanding during each period. Stock options have been excluded from the
computation of earnings/ (loss) per share, as their effect is immaterial.
The weighted average number of shares used to compute earnings/(loss) per
common share was 1,862,643 in 1996 and 1995 (after giving retroactive effect
for the six-for-five stock split in 1995).
Page 9 of 15
<PAGE> 10
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
GENERAL
Vineyard National Bancorp (the "Company") is a one-bank holding
company. Its principal asset is the common stock of, and its principal
operations are conducted by, Vineyard National Bank, a National banking
association (the "Bank").
RESULTS OF OPERATIONS
The Company incurred a net loss of $217,758 for the six months ended
June 30, 1996, as compared to net income of $643,799 for the same period in
1995.
NET INTEREST INCOME
The principal determinant of the Bank's net results of operations is
its net interest income. Net interest income is the difference or "margin"
between interest earned on interest-earning assets, such as loans and
investment securities, and interest paid on interest-bearing liabilities,
principally deposits. The Bank's net interest income decreased $140,000 or
4.5% in the six month period ended June 30, 1996, as compared to the same
period in 1995. This decrease was due primarily to a $82,000 increase in
interest income and a $223,000 increase in interest expense. The net change
was substantially a result of the increases in other time deposits and interest
rates paid on customer deposits.
The increase in interest income was attributable primarily to an
increase in loan volume. Outstanding loans and leases increased during the six
month period ended June 30, 1996 by $8,590,000 as a direct result of increased
loan demand. During this period total deposits increased by $10,712,000. The
deposit mix changed significantly as demand deposits increased by $2,464,000,
money market accounts decreased $2,449,000, savings and NOW accounts decreased
by $44,000, time deposits in excess of $100,000 decreased $3,052,000, and other
time deposits increased $13,793,000. The net interest margin (net interest
income expressed as a percentage of interest income) was 69 percent as compared
to 74 percent in 1995.
PROVISION FOR PROBABLE LOAN LOSSES
The Bank follows the practice of maintaining a reserve for potential
losses on loan and leases (the "Loan Loss Reserve" or the "Reserve") at an
amount which, in Management's judgment, is adequate to absorb potential losses
on total loans and leases outstanding. Losses on loans or leases are charged
against the reserve and the reserve is adjusted periodically to reflect
changes in the volume of outstanding loans and leases and increases in the risk
of potential losses due to a deterioration in the condition of borrowers, in
the value of collateral securing loans or in general economic conditions.
Additions to the reserve are made through a charge against income referred to
as the "Provision for Loan and Lease Losses".
Page 10 of 15
<PAGE> 11
Effective January 1, 1995, the Bank adopted SFAS No. 114, (as amended
by SFAS No. 118), "Accounting by Creditors for Impairment of a Loan". Under
SFAS No. 114, a loan is impaired when it is "probable" that the creditor will
be unable to collect all contractual principal and interest payments due in
accordance with the terms of the loan agreement. All loans identified as
"impaired" are to be measured on the present value of expected future cash
flows discounted at the loan's effective interest rate, except that as a
practical expedient, a creditor may measure impairment based on a loan's
observable market price, or the fair value of the collateral if the loan is
collateral dependent. Loan impairment is evaluated on loan-by-loan basis as
part of normal loan review procedures at the Bank.
During the six month period ended June 30, 1996, a provision was made
of $116,300. The net charge-offs on previously granted loans was approximately
$240,000 for the six months ended June 30, 1996, as compared to net recoveries
of $60,000 for the same period in 1995.
OTHER INCOME
The decrease of $1,774,000 in other income in the six month period
ended June 30, 1996, as compared to 1995, was due primarily to the decrease in
loan servicing income which resulted from the sale of the Bank's mortgage
servicing rights during 1995. In addition, other fees and service charges
decreased as a result of the Bank no longer operating the Victorville branch
due to its sale during 1995.
OTHER EXPENSES
Other expenses, consisting primarily of (i) salaries and other
employee expenses, (ii) occupancy expenses, (iii) furniture and equipment
expenses, and (iv) insurance, data processing, professional fees and other
non-interest expense, decreased by approximately $723,000 or 15%, during the
six month period ended June 30, 1996, as compared to the same period in 1995.
The decrease in other expenses was primarily a result of decreases in salary
and employee benefits, marketing expenses, FDIC assessment, and data processing
costs. In addition, occupancy expenses decreased as a result of the Bank no
longer operating the Victorville branch after its sale in 1995.
FINANCIAL CONDITION AND LIQUIDITY
During the six months ended June 30, 1996, the Company's assets
increased by approximately $10.7 million or 10%, compared to December 31, 1995.
The Company continued to have adequate cash resources with approximately
$7,162,000 of cash held on deposit at other financial institutions, $14,136,000
of investment securities, and $1,409,000 in Federal Funds Sold at June 30,
1996. The Bank's investment portfolio contains $15,000 of unrealized losses on
estimated fair values when compared to book values at June 30, 1996.
Investment securities totaling $7,000,000 matured during the six month period
ended June 30, 1996. The total loans placed on non-accrual status (not
generating income currently) amounted to approximately $701,000 at June 30,
1996. All loans on non-accrual status are considered to be impaired.
Page 11 of 15
<PAGE> 12
During the six months ended June 30, 1996, the Company acquired the
corporate headquarters and main branch building. This resulted in an increase
in Bank Premises of approximately $2,471,000.
Total shareholders' equity decreased from approximately $7,753,000 at
December 31, 1995 to $7,508,000 at June 30, 1996, as a result of the net loss
generated for the six months then ended and a decrease in the valuation
allowance for investment securities.
The Company's and the Bank's primary regulators, the Federal Reserve
Board, and the Office of the Comptroller of the Currency, respectively, adopted
risk-based capital guidelines which require bank holding companies and banks to
maintain minimum total capital of 8% (of which 4% must consist of Tier 1
capital) of risk-weighted assets, respectively. Further, the Federal Reserve
Board and Comptroller generally require bank and bank holding companies to have
a minimum leverage ratio of at least 4% to be considered "adequately
capitalized" for federal regulatory purposes. As of June 30, 1996, the Company
had a ratio of capital to risk-weighted assets of 8.74%, a ratio of Tier 1
capital to risk-weighted assets of 7.97%, and a leverage capital ratio of
6.35%. The Company's management believes that, under current regulations, the
Bank will continue to meet these minimum capital requirements in the
foreseeable future.
Page 12 of 15
<PAGE> 13
PART II
OTHER INFORMATION
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
a) Exhibits: Data Schedule
b) Reports on Form 8-K: None
Page 13 of 15
<PAGE> 14
SIGNATURES
Pursuant to the requirements of the Security Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized on this 8th day of August 1996.
VINEYARD NATIONAL BANK
By: /s/ Soule Claude
_____________________________________
Soule Claude
Corporate Secretary
Page 14 of 15
<TABLE> <S> <C>
<ARTICLE> 9
<LEGEND>
THE SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE MARCH 31
1996 UNAUDITED FINANCIAL STATEMENTS OF VINEYARD NATIONAL BANCORP AND SUBSIDIARY
AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> JUN-30-1996
<CASH> 6,712,367
<INT-BEARING-DEPOSITS> 693,000
<FED-FUNDS-SOLD> 1,409,000
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 14,135,655
<INVESTMENTS-CARRYING> 0
<INVESTMENTS-MARKET> 0
<LOANS> 86,661,148
<ALLOWANCE> 719,110
<TOTAL-ASSETS> 117,761,821
<DEPOSITS> 109,126,820
<SHORT-TERM> 0
<LIABILITIES-OTHER> 1,126,958
<LONG-TERM> 0
0
0
<COMMON> 2,106,258
<OTHER-SE> 5,401,785
<TOTAL-LIABILITIES-AND-EQUITY> 117,761,821
<INTEREST-LOAN> 3,789,432
<INTEREST-INVEST> 358,471
<INTEREST-OTHER> 144,671
<INTEREST-TOTAL> 4,297,574
<INTEREST-DEPOSIT> 1,338,616
<INTEREST-EXPENSE> 1,338,616
<INTEREST-INCOME-NET> 2,958,958
<LOAN-LOSSES> 116,300
<SECURITIES-GAINS> 0
<EXPENSE-OTHER> 3,949,957
<INCOME-PRETAX> (216,158)
<INCOME-PRE-EXTRAORDINARY> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (217,758)
<EPS-PRIMARY> (0.12)
<EPS-DILUTED> 0
<YIELD-ACTUAL> 5.8
<LOANS-NON> 701,000
<LOANS-PAST> 85,000
<LOANS-TROUBLED> 0
<LOANS-PROBLEM> 2,702,757
<ALLOWANCE-OPEN> 783,466
<CHARGE-OFFS> 240,252
<RECOVERIES> 89,596
<ALLOWANCE-CLOSE> 719,110
<ALLOWANCE-DOMESTIC> 719,110
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 0
</TABLE>
