Vineyard National Bancorp in Corona, Calif., said Monday that it has agreed to a consent order from the Office of the Comptroller of the Currency ordering it to appoint "experienced and competent" people to be its permanent chief executive and chief credit officer.
The $2.4 billion-asset Vineyard said in a Securities and Exchange Commission filing that the July 22 order also requires it to maintain capital ratios, among other things.
The company, which has been struggling with heavy loan losses, said it had started implementing remedial measures before receiving the regulatory order.
Norman Morales, who resigned as Vineyard's CEO in January, has since initiated a proxy battle to win control of its board.The board opposes Mr. Morales' effort and has blamed him publicly for the company's credit problems.
Vineyard has yet to report second-quarter results. It lost $16.6 million in the first quarter, after taking a $26.9 million provision for bad residential construction loans. The stock fell 9% Monday, to $2.95.