Vineyard National Bancorp's losses continue to pile up as a result of rapidly declining real estate values in California's Inland Empire.
The $2.5 billion-asset Corona, Calif., company announced late Thursday that it lost $16.6 million in the first quarter, or $1.77 a share, compared with earnings of $5.5 million, or 48 cents a share, a year earlier. It attributed the loss largely to a $26.9 million provision for construction loans made in 2005 through 2007.
Vineyard also announced that it lost more in the fourth quarter and in 2007 than it had previously reported. The company had said in January that it lost $41.3 million in the fourth quarter, but now it says it lost $57 million. For the full year, it lost $40 million, or $3.96 a share, rather than the $24.4 million, or $2.48 a share, it reported Jan. 30.
The revisions were prompted by updated appraisals and additional data showing a steep decline in values of land loans that forced Vineyard to add $26.5 million to its loan-loss provision and charge off an additional $4.5 million for the fourth quarter. Vineyard also warned that the 2007 audit is not complete, and that there could be further revisions.
First-quarter operating expenses jumped 61% from a year earlier, to $21.2 million. The company attributed that increase to yearend audit and legal expenses, a $3.7 million writedown on other real estate owned, and a $1.5 million separation fee paid to Norman Morales, who resigned as its chief executive officer in January.
Mr. Morales is involved in a fight to gain control of Vineyard's board, which has publicly blamed him for the company's rising credit problems.
