Vineyard National Bancorp faces increasing liquidity pressures, according to the 10Q it filed with the SEC last week. Because of an Office of the Comptroller of the Currency consent order issued in July, “among other things,” the Vineyard is “no longer deemed to be well-capitalized and will be prohibited from renewing existing brokered deposits or accepting new brokered deposits without a waiver from the FDIC,” according to the filing.
“On a consolidated basis, the minimum ratios that the Company must meet are total risk-based capital of 8.0%, Tier 1 capital of 4.0% and a leverage ratio of 4.0%.”  Vineyard’s ratios stood at 2.5%, 1.3%, and 1.2%, respectively, as of June 30.

 “Management is currently addressing capital concerns at the company and is actively pursuing strategic alternatives for raising capital,” the 10Q states. But the $2.36-billion bank’s prospects seem uncertain, to say the least. Although the bank “obtained $266.3 million in brokered deposits to offset the $226.9 million in the run-off of savings, NOW, and money market deposit accounts,” in the second quarter, Vineyard experienced a “significant amount” of customer withdrawals in July. Now its hands are tied by the OCC consent order. It gets worse: Vineyard has defaulted on its secured line of credit. “The conditions and events discussed above cast significant doubt on our ability to continue as a going concern,” the company observes. 

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