Vineyard National Bancorp in Corona, Calif., said its initial efforts to shore up capital after losing millions of dollars on bad residential construction loans have failed.
The $2.5 billion-asset Vineyard said late Thursday that negotiations with a third party (which it did not identify) to raise capital had been terminated.
Vineyard had announced June 4 that it intended to raise capital, though it did not say how much. For the first quarter, it recorded a $26.9 million loan-loss provision, which led to a $16.6 million loss. It earned $5.5 million in the first quarter of last year.
The company said Thursday that it has directed Sandler O'Neill & Partners LP, which was already acting as its financial adviser, to continue to "explore strategic alternatives."
Vineyard also said that it would hold its annual shareholder meeting Aug. 5. Shareholders on record as of June 20 would have the right to vote at the meeting.
