VINEYARD NATIONAL BANCORP - 10-Q Quarterly Report

SECURITIES AND EXCHANGE COMMISSION

Washington D.C. 20549

______________________________________________

x QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

FOR THE QUARTERLY PERIOD ENDED MARCH 31, 2005

o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

For the transition period from ______ to ______

Commission File No. 0-20862

VINEYARD NATIONAL BANCORP

(Exact Name of Registrant as Specified in its Charter)

California (State or other jurisdiction of incorporation or organization)		33-0309110 (IRS employer identification number)

9590 Foothill Boulevard Rancho Cucamonga, California (Address of principal executive offices)		91730 (Zip Code)

Registrant's telephone number, including area code: (909) 581-1668

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 [ ]

Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act). Yes [x] No [ ]

APPLICABLE TO CORPORATE ISSUER

Indicate the number of shares outstanding of the issuer's common stock on the latest practicable date: 9,529,296 shares of common stock as of April 29, 2005.

VINEYARD NATIONAL BANCORP AND SUBSIDIARY

FOR THE PERIODS ENDED MARCH 31, 2005 AND 2004,

AND DECEMBER 31, 2004

PART I - FINANCIAL INFORMATION

FORWARD-LOOKING STATEMENTS

Except for historical information contained herein, the matters discussed in this Form 10-Q contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements represent estimates, projections and statements of beliefs of Vineyard National Bancorp (the “Company”) concerning future events, business plans, objectives, expected operating results and the assumptions upon which those statements are based. Forward-looking statements include without limitation, any statement that may predict, forecast, indicate or imply future results, performance or achievements, and are typically identified with words such as “believe,” “anticipate,” “expect,” “estimate,” “project,” “intend,” “will,” “may,” or words or phases of similar meaning. The Company cautions that the forward-looking statements are based largely on the expectations of the Company and are subject to a number of known and unknown risks and uncertainties that are subject to change based on factors which are, in many instances, beyond the Company’s control. Actual results, performance or achievements could differ materially from those contemplated, expressed, or implied by the forward-looking statements contained herein. For a discussion of some of the risks and uncertainties that might cause such a difference, see Part I - Financial Information, Item 3. Quantitative and Qualitative Disclosures about Market Risk. Investors should not place undue reliance on forward-looking statements as a prediction of actual results. The Company will not update the forward-looking statements to reflect actual results or changes in the factors affecting the forwarding-looking statements.

ITEM I. FINANCIAL STATEMENTS

VINEYARD NATIONAL BANCORP AND SUBSIDIARY

AT MARCH 31, 2005 AND DECEMBER 31, 2004

(Dollars in Thousands)	March 31,			December 31,
	2005			2004
	(unaudited)			(audited)
ASSETS
Cash and due from banks	$	26,511		$	20,551
Federal funds sold		2,000			2,000
Total Cash and Cash Equivalent		28,511			22,551

Investment securities, available-for-sale		276,437			223,480
Loans, net of unearned income		1,077,706			1,027,037
Less: Allowance for possible loan losses		(13,009	)		(13,001	)
Net Loans		1,064,697			1,014,036
Bank premises and equipment, net		13,541			12,399
Accrued interest		6,133			5,423
Federal Home Loan Bank ("FHLB") and other stock, at cost		11,518			12,235
Deferred income tax asset		9,980			8,196
Other assets		14,525			13,177
TOTAL ASSETS	$	1,425,342		$	1,311,497

LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities
Deposits
Non-interest bearing	$	124,590		$	127,466
Interest-bearing		922,629			838,080
Total Deposits		1,047,219			965,546

FHLB advances		210,700			177,000
Subordinated debentures		5,000			5,000
Junior subordinated debentures		71,139			71,139
Accrued interest and other liabilities		9,612			7,585
TOTAL LIABILITIES		1,343,670			1,226,270

COMMITMENTS AND CONTINGENCIES (Note #2)

Stockholders' Equity
Contributed capital
Common stock - no par value, authorized 15,000,000 shares;
issued and outstanding 9,511,656 and 9,581,941 shares
in 2005 and 2004, respectively		65,314			70,536
Additional paid-in capital		3,821			3,772
Unallocated ESOP shares		(6,715	)		(6,856	)
Retained earnings		24,454			20,513
Accumulated other comprehensive loss		(5,202	)		(2,738	)
TOTAL STOCKHOLDERS' EQUITY		81,672			85,227
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	1,425,342		$	1,311,497

See accompanying notes to financial statements.

VINEYARD NATIONAL BANCORP AND SUBSIDIARY

FOR THE THREE MONTHS ENDED MARCH 31, 2005 AND 2004

(Dollars in Thousands, except per share amounts)	Three Months Ended March 31,
	2005		2004
	(unaudited)		(unaudited)
Interest Income
Interest and fees on loans	$	19,716	$	13,082
Interest on investment securities		2,976		2,058
Interest on federal funds sold		2		42
TOTAL INTEREST INCOME		22,694		15,182

Interest Expense
Interest on savings deposits		22		23
Interest on NOW and money market deposits		2,681		1,361
Interest on time deposits in denominations of $100,000 or more		1,474		862
Interest on other time deposits		1,220		772
Interest on FHLB advances and other borrowings		2,295		1,050
TOTAL INTEREST EXPENSE		7,692		4,068
NET INTEREST INCOME		15,002		11,114
Provision for Possible Loan and Lease Losses		-		(1,800	)
NET INTEREST INCOME AFTER
PROVISION FOR POSSIBLE
LOAN AND LEASE LOSSES		15,002

ITEM 1.	Financial Statements

	Consolidated Statements of Financial Condition at March 31, 2005 and December 31, 2004	4

	Consolidated Statements of Income for the Three Months Ended March 31, 2005 and 2004	5

	Consolidated Statements of Changes in Stockholders' Equity for the Three Months Ended March 31, 2005 and 2004	6

	Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2005 and 2004	7

	Notes to Consolidated Financial Statements	8

	Report of Independent Registered Public Accounting Firm	14

ITEM 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	15

ITEM 3.	Quantitative and Qualitative Disclosures about Market Risk	31

ITEM 4.	Controls and Procedures	33

	PART II - OTHER INFORMATION

ITEM 1.	Legal Proceedings	33

ITEM 2.	Unregistered Sales of Equity Securities and Use of Proceeds	33

ITEM 3.	Defaults upon Senior Securities	34

ITEM 4.	Submission of Matters to a Vote of Security Holders	34

ITEM 5.	Other Information	34

ITEM 6.	Exhibits	34

Signatures		36

Exhibits