Vineyard National Bancorp in Corona, Calif., reported a loss of $28.6 million for the quarter that ended Sept. 30, bringing its total loss for the first nine months of the year to $109.8 million.
Last year, the $2.1 billion-asset company earned $5.5 million in the third quarter and nearly $17 million in the first nine months.
Vineyard reported its results in a Securities and Exchange Commission filing after the markets closed Monday.
The company, battered by losses on construction loans, also said that it could very likely fail if its deal announced last week to sell itself to its chairman falls through.
The chairman, Douglas Kratz, has agreed to buy Vineyard for $18 million, but the deal's closing hinges on whether he can raise $125 million in a private placement to recapitalize the company. It and its bank unit are operating under regulatory enforcement orders, and it said in the SEC filing that if Mr. Kratz were unable to raise the capital, the Office of the Comptroller of the Currency and/or the Federal Reserve Board "may take further enforcement action, including placing the bank into receivership with" the Federal Deposit Insurance Corp.
