Vineyard National Bancorp (fka VNBCQ)

[buhg1b]

Vineyard National Bancorp Reports Revised Results of Operations for the Quarter and Year Ended 2007 and Results for the First Quarter 2008
Thursday May 1, 10:26 pm ET

CORONA, CA--(MARKET WIRE)--May 1, 2008 -- Vineyard National Bancorp (the "company") (NasdaqGS:VNBC - News), parent company of Vineyard Bank, N.A. ("Vineyard") and other subsidiaries today reported a loss for the quarter ended March 31, 2008 of $16.6 million, or $1.77 per common share, compared with net earnings of $5.5 million, or $0.48 per common share, for the quarter ended March 31, 2007. The net loss for the first quarter of 2008 was due primarily to $26.9 million of provision for loan losses, principally associated with Vineyard's construction loans originated between 2005 and 2007. The company also reported revised results for the quarter and the year ended December 31, 2007 of a net loss of $57.0 million, or $5.64 per common share, for the quarter ended December 31, 2007, and a net loss of $40.0 million, or $3.96 per common share, for the year ended December 31, 2007. The company's audit for the year ended December 31, 2007 is not yet complete. These numbers are not audited, and there could be further changes upon completion of the audit.

Source: Vineyard National Bancorp

On January 30, 2008, the company had announced a fourth quarter 2007 net loss of $41.3 million and a net loss for the year of $24.4 million. Since that date, the company has obtained updated appraisals and additional data which indicate further declines in loan values at year end than that which earlier data had indicated. These declines are primarily related to the tract and related land loan portfolios. The company has also completed a review of its current methodology for determining an adequate allowance for loan losses. Based upon the abrupt and severe declines in real estate values reflected in the data, the company has added $26.5 million of provision for loan losses and has charged off an additional $4.5 million of tract construction loans for the fourth quarter of 2007. The increase in provision for loan losses, net of tax, increased the company's fourth quarter 2007 consolidated net loss to $57.0 million, or $5.64 per common share.

The allowance for loan losses at December 31, 2007 totaled $48.8 million, and net charge-offs for the year ended December 31, 2007 equaled $9.2 million. The balance of non-performing loans at December 31, 2007 was $75.4 million.

As previously reported, the company incurred a fourth quarter 2007 non-cash charge of $40.8 million for the write-off of goodwill. As shown below, when this one time charge is excluded from expenses, the company's results reflected net operating earnings of $0.7 million for the year ended December 31, 2007, as compared to the actual net loss of $40.0 million...

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http://biz.yahoo.com/iw/080501/0392914.html