<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 September 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 September 30, 1996.
Page 1 of 16
<PAGE> 2
VINEYARD NATIONAL BANCORP AND SUBSIDIARY
TABLE OF CONTENTS
PART I
<TABLE>
<S> <C>
FINANCIAL STATEMENTS
Consolidated Balance Sheets
September 30, 1996 and December 31, 1995 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Consolidated Statements of Income
For the Nine Months and Three Months Ended September 30, 1996 and 1995 . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Consolidated Statements of Changes in Stockholders' Equity
For the Nine Months Ended September 30, 1996 and 1995 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Consolidated Statements of Cash Flows
For the Nine Months Ended September 30, 1996 and 1995 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
PART II
OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
Signatures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
Exhibit 27. Data Schedule . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
</TABLE>
Page 2 of 16
<PAGE> 3
VINEYARD NATIONAL BANCORP AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
SEPTEMBER 30, 1996 AND DECEMBER 31, 1995
ASSETS
<TABLE>
<CAPTION>
September 30, December 31,
1996 1995
------------- ------------
<S> <C> <C>
Cash and due from banks $ 6,393,504 $ 8,093,749
Federal funds sold 1,504,000 1,925,000
------------ ------------
Total Cash and Cash Equivalents 7,897,504 10,018,749
------------ ------------
Interest-bearing deposits in other financial institutions 594,000 792,000
Investment securities
Available-for-sale 9,265,440 13,431,518
Loans, net of unearned income 93,181,673 77,482,539
Direct lease financing 290,563 588,865
Less: Reserve for probable loan
and leases losses (717,627) (783,466)
------------ ------------
92,754,609 77,287,938
Other real estate owned 757,750 608,694
Bank premises and equipment 6,482,963 3,703,294
Accrued interest 540,100 541,975
Cash surrender value of life insurance 547,600 741,834
Other assets 614,863 433,131
------------ ------------
Total Assets $119,454,829 $107,559,133
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
LIABILITIES
Deposits
Demand deposits 27,188,876 25,691,559
Savings and NOW deposits 26,447,127 26,537,492
Money market deposits 15,678,131 16,295,843
Time deposits in denominations
of $100,000 or more 6,629,115 8,932,511
Other time deposits 34,579,213 20,957,042
------------ ------------
110,522,462 98,414,447
Accrued employee salary benefits 260,347 443,013
Accrued interest and other liabilities 1,044,016 948,959
------------ ------------
Total Liabilities 111,826,825 99,806,419
------------ ------------
STOCKHOLDERS' EQUITY
Contributed Capital
Common stock - authorized 15,000,000
shares, no par value, issued and outstanding
1,862,643 shares in 1996 and 1995 2,106,258 2,106,258
Additional paid-in capital 3,306,684 3,306,684
Retained earnings 2,214,645 2,327,885
Valuation allowance for investments 417 11,887
------------ ------------
Total Stockholders' Equity 7,628,004 7,752,714
------------ ------------
Total Liabilities and Stockholders' Equity $119,454,829 $107,559,133
============ ============
</TABLE>
See accompanying notes to financial statements. Page 3 of 16
<PAGE> 4
VINEYARD NATIONAL BANCORP AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
FOR THE NINE MONTHS AND THREE MONTHS ENDED SEPTEMBER 30, 1996 AND 1995
<TABLE>
<CAPTION>
Nine Months Ended September 30, Three Months Ended September 30,
-------------------------------- ---------------------------------
1996 1995 1996 1995
--------------- ---------------- ---------------- ----------------
<S> <C> <C> <C> <C>
INTEREST INCOME
Interest and fees on loans $5,936,823 $5,594,270 $2,147,391 $1,870,335
Interest on Investment Securities
Obligations of U.S. Government Agencies
and Corporations 512,448 540,511 158,872 236,373
Obligations of State and Political Subdivisions 272 39
Interest on other securities 7,343 7,281 2,448 2,410
Interest on deposits 27,173 23,599 7,841 12,757
Interest on Federal funds sold 139,136 185,178 28,395 60,371
Direct lease financing income 26,369 62,483 6,771 16,227
---------- ---------- ---------- ----------
Total Interest Income 6,649,292 6,413,594 2,351,718 2,198,512
---------- ---------- ---------- ----------
INTEREST EXPENSE
Interest on savings deposits 166,414 244,159 55,932 78,526
Interest on NOW and money market deposits 403,764 438,323 158,634 135,924
Interest on time deposits in denominations
of $100,000 or more 254,716 238,961 82,247 91,840
Interest on other time deposits 1,255,651 837,310 445,363 343,208
Interest on impound accounts 132 5,949
Interest on Federal funds purchased 488 752 373
---------- ---------- ---------- ----------
Total Interest Expense 2,081,165 1,765,454 742,549 649,498
---------- ---------- ---------- ----------
Net Interest Income 4,568,127 4,648,140 1,609,169 1,549,014
(PROVISION)/CREDIT FOR LOAN AND LEASE LOSSES (333,900) 300,000 (217,600) 300,000
---------- ---------- ---------- ----------
Net Interest Income After (Provision)/
Credit for Loan and Lease Losses 4,234,227 4,948,140 1,391,569 1,849,014
---------- ---------- ---------- ----------
</TABLE>
See accompanying notes to financial statements. Page 4 of 16
<PAGE> 5
VINEYARD NATIONAL BANCORP AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
FOR THE NINE MONTHS AND THREE MONTHS ENDED SEPTEMBER 30, 1996 AND 1995
<TABLE>
<CAPTION>
Nine Months Ended September 30, Three Months Ended September 30,
-------------------------------- ---------------------------------
1996 1995 1996 1995
--------------- ---------------- ---------------- ----------------
<S> <C> <C> <C> <C>
OTHER INCOME
Fees and service charges and
gain on sale of loans $1,366,882 $1,814,553 $ 480,242 $ 549,432
Sale of mortgage servicing rights 1,488,789 78,131
Net gain/(loss) on sale of
investment securities 23 (8,237) 23
Other Income 7,812 9,244 3,311 4,676
---------- ---------- ---------- ----------
Total Other Income 1,374,717 3,304,349 483,576 632,239
---------- ---------- ---------- ----------
OTHER EXPENSES
Salaries and employee benefits 2,698,178 2,989,635 880,279 1,002,008
Occupancy expense of premises 682,178 949,532 176,634 317,472
Furniture and equipment expenses 383,573 459,133 120,118 137,115
Other expenses (Note #2) 1,956,655 2,559,557 593,596 820,875
---------- ---------- ---------- ----------
Total Other Expenses 5,720,584 6,957,857 1,770,627 2,277,470
---------- ---------- ---------- ----------
INCOME/(LOSS) BEFORE INCOME TAXES (111,640) 1,294,632 104,518 203,783
INCOME TAXES (1,600) (403,254) 43,746
---------- ---------- ---------- ----------
NET INCOME/(LOSS) $ (113,240) $ 891,378 $ 104,518 $ 247,529
========== ========== ========== ==========
EARNINGS/(LOSS) PER SHARE OF
========== ========== ========== ==========
COMMON STOCK (NOTE #3) $ (0.06) $ 0.48 $ 0.06 $ 0.13
========== ========== ========== ==========
</TABLE>
See accompanying notes to financial statements. Page 5 of 16
<PAGE> 6
VINEYARD NATIONAL BANCORP AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY
(UNAUDITED)
FOR THE NINE MONTHS ENDED SEPTEMBER 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 1,552,425 $2,106,258 $3,306,684 $1,494,874 $(47,672)
Change in net unrealized
loss on investment
securities available-
for-sale 31,643
Six-for-five stock split 310,218
Net income for
the six months 891,378
--------- ---------- ---------- ---------- --------
Balance, June 30, 1995 1,862,643 $2,106,258 $3,306,684 $2,386,252 $(16,029)
========= ========== ========== ========== ========
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 (11,470)
Net loss for
the six months (113,240)
--------- ---------- ---------- ---------- --------
Balance, June 30, 1996 1,862,643 $2,106,258 $3,306,684 $2,214,645 $ 417
========= ========== ========== ========== ========
</TABLE>
See accompanying notes to financial statements. Page 6 of 16
<PAGE> 7
VINEYARD NATIONAL BANCORP AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
FOR THE NINE MONTHS ENDED SEPTEMBER 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 $ 8,003,099 $ 5,928,634
Service fees and other income received 1,373,587 3,312,586
Financing revenue received under leases 26,369 62,483
Interest paid (1,974,108) (1,448,036)
Cash paid to suppliers and employees (5,411,061) (7,173,689)
Income taxes paid (1,600) (1,600)
------------ ------------
Net Cash Provided by Operating Activities 2,016,286 680,378
------------ ------------
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 11,875,713 9,060,000
Purchase of investment securities held-to-maturity (1,961,797)
Purchase of investment securities available-for-sale (7,756,729) (16,991,011)
Proceeds from maturities of deposits in other
financial institutions 396,000 99,000
Purchase of deposits in other financial institutions (198,000) (792,000)
Net (increase)/decrease in loans to customers (17,741,126) 4,253,511
Net decrease in leases to customers 298,302 587,609
Net (increase)/decrease in other real estate owned (149,056) 131,077
Recoveries on loans previously written off 177,870 581,682
Capital expenditures (3,259,313) (370,849)
Proceeds from sale of property, plant and equipment 110,793 25,231
------------ ------------
Net Cash Used by Investing Activities (16,245,546) (3,385,047)
------------ ------------
CASH FLOWS FROM FINANCING ACTIVITIES
Net increase/(decrease) in demand deposits, NOW
accounts, savings accounts, and money market
deposits 789,240 (3,593,631)
Net increase in certificates of deposit 11,318,775 10,104,452
Decrease in Federal funds purchased (1,000,000)
------------ ------------
Net Cash Provided by Financing Activities 12,108,015 5,510,821
------------ ------------
NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS (2,121,245) 2,806,152
CASH AND CASH EQUIVALENTS, Beginning of year 10,018,749 8,510,019
------------ ------------
CASH AND CASH EQUIVALENTS, End of quarter $ 7,897,504 $ 11,316,171
============ ============
</TABLE>
See accompanying notes to financial statements. Page 7 of 16
<PAGE> 8
VINEYARD NATIONAL BANCORP AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
FOR THE NINE MONTHS ENDED SEPTEMBER 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) $ (113,240) $ 891,378
---------- ---------
Adjustments to Reconcile Net Income to
Net Cash Provided/(Used) by Operating Activities
Depreciation and amortization 396,690 152,625
Provision/(credit) for probable credit losses 333,900 (300,000)
Loss on sale of equipment (1,178) (400)
Loss on sale of other real estate owned 26,127 39,463
Increase/(decrease) in taxes payable (11,424) 709,627
(Increase)/decrease in other assets 89,480 (152,362)
Increase/(decrease) in unearned loan fees 1,361,956 (508,728)
(Increase)/decrease in interest receivable 1,875 (125,552)
Increase in interest payable 107,057 317,418
Decrease in accrued expense and other liabilities (174,935) (351,328)
(Gain)/loss on sale of investments (22) 8,237
---------- ---------
Total Adjustments 2,129,526 (211,000)
---------- ---------
Net Cash Provided by Operating Activities $2,016,286 $ 680,378
========== =========
SUPPLEMENTARY INFORMATION
Change in valuation allowance for investment securities $ (11,470) $ 31,643
========== =========
</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 16
<PAGE> 9
VINEYARD NATIONAL BANCORP AND SUBSIDIARY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
SEPTEMBER 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 nine month period ended September 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.
Effective for years beginning in 1996, the Company was required to implement 1)
SFAS No. 121, which accounts for the impairment of long-lived assets, 2) SFAS
No. 122, which accounts for mortgage servicing rights, and 3) SFAS No. 123,
accounting for stock-based compensation.
NOTE #2 - OTHER EXPENSES
The following is a breakdown of other expenses for each of the nine and three
month periods ended September 30, 1996 and 1995:
<TABLE>
<CAPTION>
Nine Months Ended Three Months Ended
September 30, September 30,
------------------------- ----------------------
1996 1995 1996 1995
----------- ------------- --------- ---------
<S> <C> <C> <C> <C>
Data processing $ 573,313 $ 620,317 $182,202 $200,250
Marketing expenses 226,635 244,783 75,793 77,213
Office supplies, postage
and telephone 292,631 326,625 153,530 108,546
Professional expenses 300,535 423,438 82,273 139,150
Bank insurance and assessments 121,082 295,400 35,885 63,882
Other 442,459 648,994 63,913 231,834
---------- ---------- -------- --------
Total Other Expenses $1,956,655 $2,559,557 $593,596 $820,875
========== ========== ======== ========
</TABLE>
Page 9 of 16
<PAGE> 10
VINEYARD NATIONAL BANCORP AND SUBSIDIARY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
SEPTEMBER 30, 1996 AND 1995
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 10 of 16
<PAGE> 11
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 $113,240 for the nine months ended
September 30, 1996, as compared to net income of $891,378 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 $80,013 or 1.7%
in the nine month period ended September 30, 1996, as compared to the same
period in 1995. This decrease was due primarily to a $236,000 increase in
interest income and a $316,000 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
nine month period ended September 30, 1996 by $15,467,000 as a direct result of
increased loan demand. During this period total deposits increased by
$12,108,000. The deposit mix changed significantly as demand deposits
increased by $1,497,000, money market accounts decreased $618,000, savings and
NOW accounts decreased by $90,000, time deposits in excess of $100,000
decreased $2,303,000, and other time deposits increased $13,622,000. 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 11 of 16
<PAGE> 12
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 nine month period ended September 30, 1996, a provision
was made of $333,000. The net charge-offs on previously granted loans was
approximately $399,000 for the six months ended September 30, 1996, as compared
to net recoveries of $159,000 for the same period in 1995.
OTHER INCOME
The decrease of $1,930,000 in other income in the nine month period
ended September 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 $603,000 or 24%, during the
nine month period ended September 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 nine months ended September 30, 1996, the Company's assets
increased by approximately $11.9 million or 11%, compared to December 31, 1995.
The Company continued to have adequate cash resources with approximately
$6,988,000 of cash held on deposit at other financial institutions, $9,265,000
of investment securities, and $1,504,000 in Federal Funds Sold at September 30,
1996. The Bank's investment portfolio contains $417 of unrealized gains on
estimated fair values when compared to book values at September 30, 1996.
Investment securities totaling $11,876,000 matured during the nine month period
ended September 30, 1996. The total loans placed on non-accrual status (not
generating income currently) amounted to approximately $436,000 at September
30, 1996. All loans on non-accrual status are considered to be impaired.
Page 12 of 16
<PAGE> 13
During the nine months ended September 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 $7,628,000 at September 30, 1996, as a result of the net
loss generated for the nine 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 September 30, 1996, the
Company had a ratio of capital to risk-weighted assets of 8.35%, a ratio of
Tier 1 capital to risk-weighted assets of 7.63%, and a leverage capital ratio
of 6.45%. The Company's management believes that, under current regulations,
the Bank will continue to meet these minimum capital requirements in the
foreseeable future.
Page 13 of 16
<PAGE> 14
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 14 of 16
<PAGE> 15
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 6th day of November 1996.
VINEYARD NATIONAL BANK
By: /s/ Soule Sensenbach
--------------------------------
Soule Sensenbach
Corporate Secretary
Page 15 of 16
<TABLE> <S> <C>
<ARTICLE> 9
<LEGEND>
THE SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE SEPTEMBER
30, 1996 UNAUDITED FINANCIAL STATEMENTS OF VINEYARD NATIONAL BANCORP AND
SUBSIDIAR AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL
STATEMENTS.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> SEP-30-1996
<CASH> 6,393,504
<INT-BEARING-DEPOSITS> 594,000
<FED-FUNDS-SOLD> 1,504,000
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 9,265,440
<INVESTMENTS-CARRYING> 0
<INVESTMENTS-MARKET> 0
<LOANS> 93,472,236
<ALLOWANCE> 717,627
<TOTAL-ASSETS> 119,454,829
<DEPOSITS> 110,522,462
<SHORT-TERM> 0
<LIABILITIES-OTHER> 1,304,363
<LONG-TERM> 0
0
0
<COMMON> 2,106,258
<OTHER-SE> 5,521,746
<TOTAL-LIABILITIES-AND-EQUITY> 119,454,829
<INTEREST-LOAN> 5,936,823
<INTEREST-INVEST> 519,791
<INTEREST-OTHER> 192,678
<INTEREST-TOTAL> 6,649,292
<INTEREST-DEPOSIT> 2,080,677
<INTEREST-EXPENSE> 2,081,165
<INTEREST-INCOME-NET> 4,566,127
<LOAN-LOSSES> 333,900
<SECURITIES-GAINS> 0
<EXPENSE-OTHER> 5,720,984
<INCOME-PRETAX> (111,640)
<INCOME-PRE-EXTRAORDINARY> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (113,240)
<EPS-PRIMARY> (0.06)
<EPS-DILUTED> 0
<YIELD-ACTUAL> 5.8
<LOANS-NON> 436,000
<LOANS-PAST> 121,000
<LOANS-TROUBLED> 0
<LOANS-PROBLEM> 2,537,646
<ALLOWANCE-OPEN> 783,466
<CHARGE-OFFS> 577,609
<RECOVERIES> 177,870
<ALLOWANCE-CLOSE> 717,627
<ALLOWANCE-DOMESTIC> 717,627
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 0
</TABLE>
