<PAGE>

                                 UNITED STATES
                      SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, DC 20549
                                  FORM 10-QSB

            QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE
                        SECURITIES EXCHANGE ACT OF 1934

      For the QUARTER ENDED JUNE 30, 1999 Commission file number: 0-11090

                             NAPA NATIONAL BANCORP
       (Exact Name of Small Business Issuer as specified in its charter)

                CALIFORNIA                              94-2780134
     (State or other jurisdiction of                  (IRS Employer
     incorporation or organization)               Identification Number)

     901 MAIN STREET, NAPA, CALIFORNIA                    94559
  (Address of principal executive offices)              (Zip Code)

                                (707) 257-2440
                          (Issuer's telephone number)

Check whether the issuer (1) filed all reports required to be filed by section
13 or 15(d) of the exchange act during the preceding 12 months (or for such
shorter period that the registrant was required to file such reports), and (2)
has been subject to such filing requirements for the past 90 days.

                              Yes   x     No
                                  -----      -----

The number of shares of the registrant's Common Stock, no par value, outstanding
as of June 30, 1999, WAS 792,675.

Transitional Small Business Disclosure Format:

                               Yes        No   X
                                   -----     -----
<PAGE>

                             NAPA NATIONAL BANCORP
                               TABLE OF CONTENTS

PART I - FINANCIAL INFORMATION

     ITEM 1 - FINANCIAL STATEMENTS

         Consolidated Balance Sheets:
                          June 30, 1999
                          December 31, 1998

         Consolidated Statements of Income:
                          Three Months ended June 30, 1999
                          Three Months ended June 30, 1998
                          Six Months ended June 30, 1999
                          Six Months ended June 30, 1998

         Consolidated Statements of Cash Flows:
                          Six Months ended June 30, 1999
                          Six Months ended June 30, 1998

         Notes to Consolidated Financial Statements

     ITEM 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION

PART II - OTHER INFORMATION

     ITEM 1 - LEGAL PROCEEDINGS

     ITEM 2 - CHANGES IN SECURITIES AND USE OF PROCEEDS

     ITEM 3 - DEFAULTS UPON SENIOR SECURITIES

     ITEM 4 - OTHER INFORMATION

     ITEM 5 - EXHIBITS AND REPORTS ON FORM 8-K

SIGNATURES

INDEX TO EXHIBITS

                                                                               2
<PAGE>

PART I - FINANCIAL INFORMATION

ITEM 1 - FINANCIAL STATEMENTS

The following interim consolidated financial statements of Napa National Bancorp
and its subsidiary Napa National Bank are unaudited and prepared in accordance
with generally accepted accounting principles for interim financial information
and with the instructions to Form 10-QSB. However, they reflect all adjustments
(which included only normal recurring adjustments) which are, in the opinion of
management, necessary for a fair presentation of financial position, results of
operations, and cash flows for the interim periods presented and are normal and
recurring.

Results for the period as presented are not necessarily indicative of results to
be expected of the year as a whole.

                                                                               3

<PAGE>

                     NAPA NATIONAL BANCORP AND SUBSIDIARIES
                          CONSOLIDATED BALANCE SHEETS
                                  (Unaudited)
                               (Dollars in 000's)


<TABLE>
<CAPTION>
                                                                                     June 30,               December 31,
                                                                                       1999                     1998
                                                                                --------------------     ------------------
<S>                                                                             <C>                      <C>
ASSETS
Cash and due from banks                                                                  $  9,271               $  9,969
Federal funds sold                                                                          9,165                 13,590
Investment securities: Available for Sale, at market value                                 34,411                 33,844
Investment securities: Held to Maturity, at amortized cost                                  2,698                  1,798
Federal Reserve and Federal Home Loan Bank Stock                                              586                    553
Loans, less allowance for loan losses of $1,785 and $1,671 at June 30,
 1999 and December 31, 1998                                                                86,539                 77,647
Premises, furniture, fixtures and equipment,net                                             4,141                  3,908
Accrued interest receivable                                                                 1,148                  1,211
Other real estate owned                                                                         -                    262
Other assets                                                                                1,500                  1,307
                                                                                         --------               --------
TOTAL ASSETS                                                                             $149,459               $144,089
                                                                                         ========               ========

LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits:
   Non-interest-bearing demand                                                           $ 38,748               $ 36,557
Interest-bearing:
      Savings                                                                              25,866                 20,534
      Transaction                                                                          31,771                 33,042
      Time certificates                                                                    42,125                 43,118
                                                                                         --------               --------
      Total deposits                                                                      138,510                133,251
Accrued interest payable and other liabilities                                                952                  1,025
                                                                                         --------               --------
TOTAL LIABILITIES                                                                         139,462                134,276
                                                                                         --------               --------
SHAREHOLDERS' EQUITY
Common stock, no par value, 20,000,000 shares  authorized; 792,675 and                      7,223                  7,207
 791,000 shares issued and outstanding at June 30, 1999 and December
 31, 1998, respectively
Retained earnings                                                                           3,110                  2,607
Net unrealized loss on available for sale   securities, net of taxes                         (336)                    (1)
                                                                                         --------               --------
TOTAL SHAREHOLDERS' EQUITY                                                                  9,997                  9,813
                                                                                         --------               --------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY                                               $149,459               $144,089
                                                                                         ========               ========
</TABLE>

                (See notes to consolidated financial statements)

                                                                               4
<PAGE>

                     NAPA NATIONAL BANCORP AND SUBSIDIARIES
                       CONSOLIDATED STATEMENTS OF INCOME
                                  (Unaudited)
                 (Dollars in 000's, except earnings per share)



<TABLE>
<CAPTION>
                                                                                              Three Months Ended
                                                                                                    June 30,
                                                                                  ------------------------------------------
                                                                                          1999                     1998
                                                                                       ----------                ---------
<S>                                                                              <C>                          <C>
Interest income:
     Interest and fees on loans                                                        $   1,887                 $   2,026
     Interest on federal funds sold                                                          151                       185
     Interest on time deposits with other financial institutions                               -                         2
     Interest and dividends on investment securities                                         493                       455
                                                                                       ---------                 ---------
 Total interest income                                                                     2,531                     2,668
Interest expense on deposits                                                                 805                       883
                                                                                       ---------                 ---------
Net interest income                                                                        1,726                     1,785
Provision for loan losses                                                                      -                        85
                                                                                       ---------                 ---------
             Net interest income after provision for loan losses                           1,726                    1,700
                                                                                       ---------                 ---------
Non-interest income:
     Service charges on deposit accounts                                                     141                       128
     Mortgage loan service fees                                                                9                        10
     Other                                                                                   151                       145
                                                                                       ---------                 ---------
             Total non-interest income                                                       301                       283
                                                                                       ---------                 ---------
Non-interest expense:
     Salaries and employee benefits                                                          862                       794
     Occupancy                                                                                88                       120
     Furniture, fixtures and equipment                                                        98                       104
     Other                                                                                   408                       412
                                                                                       ---------                 ---------
             Total non-interest expense                                                    1,456                     1,430
                                                                                       ---------                 ---------
             Income before income taxes                                                      571                       553
Income taxes                                                                                 188                       215
                                                                                       ---------                 ---------
             Net income                                                                $     383                 $     338
                                                                                       =========                 =========
Earnings per common share                                                              $    0.48                 $    0.43
                                                                                       =========                 =========
Earnings per common share  Assuming Dilution                                           $    0.46                 $    0.41
                                                                                       =========                 =========
Weighted average common shares outstanding used to compute net earnings                  792,675                   783,500
 per common share                                                                      =========                 =========
Weighted average common shares outstanding used to compute net earnings                  837,952                   827,633
 per common share -- Assuming Dilution                                                 =========                 =========
</TABLE>


                (See notes to consolidated financial statements)

                                                                               5
<PAGE>

                     NAPA NATIONAL BANCORP AND SUBSIDIARIES
                       CONSOLIDATED STATEMENTS OF INCOME
                                  (Unaudited)
                 (Dollars in 000's, except earnings per share)



<TABLE>
<CAPTION>

                                                                                               SIX MONTHS ENDED
                                                                                                    JUNE 30,
                                                                                 ---------------------------------------------
                                                                                        1999                       1998
                                                                                    ------------               -----------
<S>                                                                              <C>                           <C>
Interest income:
     Interest and fees on loans                                                          $ 3,695                   $ 4,033
     Interest on federal funds sold                                                          288                       411
     Interest on time deposits with other financial institutions                               -                        16
     Interest and dividends on investment securities                                         976                       797
                                                                                         -------                   -------
 Total interest income                                                                     4,959                     5,257
Interest expense on deposits                                                               1,587                     1,748
                                                                                         -------                   -------
Net interest income                                                                        3,372                     3,509
Provision for loan losses                                                                      -                       190
                                                                                         -------                   -------
             Net interest income after provision for loan losses                           3,372                     3,319
                                                                                         -------                   -------
Non-interest income:
     Service charges on deposit accounts                                                     300                       245
     Mortgage loan service fees                                                               18                        26
     Other                                                                                   286                       281
                                                                                         -------                   -------
             Total non-interest income                                                       604                       552
                                                                                         -------                   -------
Non-interest expense:
     Salaries and employee benefits                                                        1,685                     1,612
     Occupancy                                                                               177                       239
     Furniture, fixtures and equipment                                                       199                       207
     Other                                                                                   826                       777
                                                                                         -------                   -------
             Total non-interest expense                                                    2,887                     2,835
                                                                                         -------                   -------
             Income before income taxes                                                    1,089                     1,036
Income taxes                                                                                 388                       406
                                                                                         -------                   -------
             Net income                                                                  $   701                   $   630
                                                                                         =======                   =======
Earnings per common share                                                                $  0.89                   $  0.80
                                                                                         =======                   =======
Earnings per common share - Assuming Dilution                                            $  0.84                   $  0.76
                                                                                         =======                   =======
Weighted average common shares outstanding used to compute net earnings                  792,033                   783,500
 per common share                                                                        =======                   =======
weighted average common shares outstanding used to compute net earnings                  837,796                   827,633
 per common share - Assuming Dilution                                                    =======                   =======
</TABLE>


                (See notes to consolidated financial statements)

                                                                               6
<PAGE>

                     NAPA NATIONAL BANCORP AND SUBSIDIARIES
                     CONSOLIDATED STATEMENTS OF CASH FLOWS
                                  (Unaudited)
                               (Dollars in 000's)

<TABLE>
<CAPTION>

                                                                                          Six Months Ended
                                                                                               June 30,
                                                                                 --------------------------------------
                                                                                      1999                    1998
                                                                                 --------------          --------------
<S>                                                                              <C>                     <C>
Cash flows from operating activities:
Net income                                                                         $    701                   $    630
Reconciliation of net income to net cash provided by operating
 activities:
 Depreciation on premises and equipment                                                 195                        199
 (Gain)loss on sale of other real estate owned                                           (9)                         6
 Amortization of deferred loan fees and discounts/premiums on securities                231                        134
 Provision for loan losses                                                                -                        190
 Decrease/(Increase) in accrued interest receivable                                      63                       (308)
 Decrease/(Increase) in other assets, net                                                38                        (96)
 Decrease in accrued interest payable and other liabilities                             (74)                       (52)
                                                                                   --------                   --------
NET CASH PROVIDED BY OPERATING ACTIVITIES                                             1,145                        703
                                                                                   --------                   --------
Cash flows from investing activities:
Loan originations, net of repayments                                                 (8,877)                       589
Proceeds from maturities of time deposits with other financial                            -                      1,782
 institutions
Activity in securities held to maturity:
 Purchases                                                                             (900)                      (975)
 Maturities                                                                               -                        974
Activity in securities available for sale:
  Purchases                                                                          (7,656)                   (16,192)
  Principal Paydowns                                                                  5,537                      2,022
Funds from Call on Available for sale                                                   738
(Purchases)Sale of Federal Reserve and Federal Home Loan Bank stock                     (33)                        65
Purchases of furniture and equipment                                                   (427)                      (176)
Proceeds on sale of other real estate owned                                             275                        340
                                                                                   --------                   --------
NET CASH USED BY INVESTING ACTIVITIES                                               (11,343)                   (11,571)
                                                                                   --------                   --------

Cash flows from financing activities:
Net increase in deposits                                                              5,257                      9,305
Stock options exercised                                                                  16                          -
Cash dividends                                                                         (198)                       (98)
                                                                                   --------                   --------
NET CASH PROVIDED BY FINANCING ACTIVITIES                                             5,075                      9,207
                                                                                   --------                   --------
</TABLE>

                                  (continued)

               (See notes to consolidated financial statements)

                                                                               7
<PAGE>

                    NAPA NATIONAL BANCORP AND SUBSIDIARIES

                     CONSOLIDATED STATEMENTS OF CASH FLOWS
                                  (Unaudited)
                              (Dollars in 000's)

<TABLE>
<CAPTION>

                                                                          Six Months Ended
                                                                              June 30,
                                                                  ---------------------------------
                                                                       1999                1998
                                                                  --------------     --------------
<S>                                                               <C>                <C>
(DECREASE)INCREASE IN CASH AND CASH EQUIVALENTS                           (5,123)            (1,661)

Cash and cash equivalents at beginning of
period                                                                    23,559             26,147
                                                                          ------             ------

Cash and cash equivalents at end of period                               $18,436            $24,486
                                                                         =======            =======

CASH AND CASH EQUIVALENTS AT JUNE 30:
   Cash and due from banks                                               $ 9,271            $ 9,686
   Federal funds sold                                                      9,165             14,800
                                                                         -------            -------
                                                                         $18,436            $24,486
                                                                         =======            =======

SUPPLEMENTAL CASH FLOW INFORMATION:
   Cash paid for interest                                                $ 1,614            $ 1,729
                                                                         =======            =======
   Cash paid for income taxes                                            $   360            $   503
                                                                         =======            =======
</TABLE>

               (See notes to consolidated financial statements)

                                                                               8
<PAGE>

                    NAPA NATIONAL BANCORP AND SUBSIDIARIES
                  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Note 1  Comprehensive Income

As of January 1, 1998, the Company adopted Statement of Financial Accounting
Standards No. 130 (SFAS 130), Reporting Comprehensive Income. SFAS 130
establishes new rules for the reporting and display of comprehensive income or
loss and its components; however, the adoption of the Statement had no impact on
the Company's net income or shareholders' equity. SFAS 130 requires unrealized
gains or losses on the Company's available-for-sale securities, which prior to
adoption were reported separately in shareholders' equity to be included in
other comprehensive income or loss.

The following is a summary of the components of total comprehensive income, net
of related income taxes:

<TABLE>
<CAPTION>
                                        1999                      1998
                                  ----------------  ----------------------------------
                                  Second    First   Fourth    Third   Second    First
                                  Quarter  Quarter  Quarter  Quarter  Quarter  Quarter
                                  ----------------  ----------------------------------
<S>                               <C>      <C>      <C>      <C>       <C>     <C>
Net income                        $ 383     $318    $ 487     $206     $338     $ 292
Net unrealized gain(loss) on
   available-for-sale
   securities                      (278)     (57)    (120)     175       (6)      (73)
                                  -----     ----    -----     ----     ----     -----
Total Comprehensive income        $ 105     $261    $ 367     $381     $332      $219
                                  =====     ====    =====     ====     ====      ====
</TABLE>

                                                                               9
<PAGE>

ITEM 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION

Napa National Bancorp (the "Company") was incorporated in 1981 in the State of
California and is headquartered in Napa, California.  The Company is a bank
holding company.  Its principal subsidiary, Napa National Bank (the "Bank"), was
organized as a national banking association in 1982.  The following discussion
and analysis by the Company's management compares the results of the Company's
operations for the six months ended June 30, 1999 and 1998 and the financial
condition and liquidity of the Company as of June 30, 1999 and December 31,
1998.

Certain matters discussed in this report are forward-looking statements that are
subject to risks and uncertainties that could cause actual results to differ
materially from those projected in the forward-looking statements. Such risks
and uncertainties include, but are not limited to, the competitive environment
and its impact on the Company's net interest margin, changes in interest rates,
asset quality risks, concentrations of credit and the economic health of Napa
County (particularly the health of the wine industry), volatility of rate
sensitive deposits, asset/liability matching risks, the dilutive impact which
might occur upon the issuance of new shares of common stock, and liquidity
risks. Therefore, the matters set forth below should be carefully considered
when evaluating the Company's business and prospects. For additional information
concerning these risks and uncertainties, please refer to the Company's Annual
Report on Form 10-KSB for the year ended December 31, 1998.

Financial Condition

The Company's assets increased approximately $5.4 million during the first six
months of 1999 as compared to the period ended December 31, 1998. The
substantial portion of that increase was due to the increase in non-interest
bearing deposits of $2.1 million and savings deposits of $5.4 million. Interest
bearing transaction and time certificate deposits comparatively declined $1.2
million and $1.0 million, respectively. Total assets were $149.5 million at June
30, 1999 compared with $144.1 million at December 31, 1998.  Total deposits
increased to $138.5 million at June 30, 1999 compared with $133.3 million at
December 31, 1998.

The loan portfolio of $86.5 million at June 30, 1999 increased $8.9 million as
compared to the December 31, 1998 total of $77.6 million.  The allowance for
loan losses on June 30, 1999 was $1,785,000 or 2.02% of total gross loans
outstanding.  Loan recoveries exceeded loan charge-offs  for the first six
months of 1999 by $115,000. In the opinion of management, the allowance for loan
losses was considered adequate at June 30, 1999 based on management's analysis
of the risks inherent in the loan portfolio.

The Company's "held to maturity securities" consist of Treasury bonds,
municipals and stock in the Federal Reserve and Federal Home Loan Bank and are
classified as such in accordance with SFAS No. 115.  At June 30, 1999, the "held
to maturity" investment portfolio's amortized cost and fair market value was
$3,284,000.

                                                                              10
<PAGE>

The Company's available for sale portfolio include collateralized mortgage
obligations and municipal bonds. The Company's general policy is to acquire "A"
rated or better, insured tax-free municipal bonds. Collateralized mortgage
obligations have an average life of five years or less at purchase date. At June
30, 1999, collateralized mortgage obligations and municipal securities had an
amortized cost of $25,743,000 and $9,237,000, respectively, and a fair value of
$25,427,000 and $8,983,000, respectively.

Results of Operations

The Company's after-tax earnings were $701,000 during the first six months of
1999 compared with $630,000 during the same period in 1998.

Net interest income, the principal source of the Company's earnings, represents
the difference between interest and fees earned from lending and investment
activities and the interest paid on deposits used to fund those activities.
Variations in the volume and mix of loans, investments, and deposits and their
relative sensitivity to movements in interest rates impact net interest income.

During the first six months of 1999, net interest income at $3,372,000 was
$137,000 behind the same period in 1998. The primary cause of the decrease was
the overall decline in interest rates and the impact it had on the loan
portfolio. Yield on loans declined approximately 100 basis points for the six
months of 1999 as compared to the same period in 1998. That decrease was
mitigated by the decrease in interest expense on interest bearing deposits.
Yield on interest bearing deposits for the first six months of 1999 was 50 basis
points lower than as compared to the same time period of 1998. Yield on
investments also showed a decline in yield of approximately 50 basis points.
That was in part due to the decline in Federal Funds rate of 75 basis points. In
addition, the decline in overall rates resulted in the prepayment factor on the
collateralized mortgage obligations to increase. That caused the return of
principal faster than originally predicted. That required premiums on the
collateralized mortgage obligations to be amortized at a more expedited rate
and returned principal to be reinvested at a lower rate. That also assisted in
reducing net interest income as compared to prior year. Fortunately, the Bank
has continued to grow and the increased volume of earning assets has provided
the opportunity to increase net interest income.

Non-interest income increased by $52,000 in the six months of 1999 as compared
to the same period in 1998. The increase in service charges on deposit accounts
was $55,000. That was mainly a result of increased charges on NSF related items
that increased $44,000 from 1998. Also, analysis charges increased $8,000 from
1998. Mortgage loan servicing fees have declined as the Bank has curtailed its
interest in processing those type of transactions.

                                                                              11
<PAGE>

Non-interest expenses consist of salaries and benefits provided to employees of
the Bank, expenses related to premises and equipment, and operating expenses
associated with the business affairs of the Company.  Total non-interest
expenses increased $52,000 or 1.8% during the first six months of 1999 when
compared with the first six months of 1998. Salaries and benefits increased
$73,000. That increase is due to the opening of a new branch in Yountville and
the increase of staff due to operational issues. Occupancy expense declined
$62,000. At the end of 1998, the Bank purchased its Main Street building that it
had previously been leasing. That purchase provided the savings experienced in
the occupancy expense category. The remaining non-interest expense increased
$41,000 or 4.2% for the first six months of 1999 compared to the same period in
1998. This is primarily the result of normal increases in operating expenses.

Capital Ratios and Adequacy

Shareholders equity was $10.0 million or 6.7% of total assets at June 30, 1999
compared with $9.8 million or 6.8% of total assets at December 31, 1998. The
ratio of capital to risk-weighted assets at June 30, 1999 was 11.47% for the
Company and 11.39% for the Bank. Both ratios exceeded the regulatory
requirements for a "well-capitalized" institution.  Management anticipates that
both the Company and the Bank will continue to exceed the regulatory minimums
for "well-capitalized"institutions in the foreseeable future. Therefore, in
management's opinion, the Company and the Bank have adequate capital in order to
support future growth.

Inflationary Factors

Since the assets and liabilities of the Bank are primarily monetary in nature,
the performance of the Bank is affected more by changes in interest rates than
by inflation.

Year 2000

     The risks associated with the "Year 2000" problem involve both operational
issues relating to the Bank's data processing systems and the impact of this
problem on the operations of the Bank's customers.  Both of these issues could
have a significant negative impact on the Company's financial condition or
results of operations including the level of the Bank's provision for possible
loan and lease losses in future periods.  See "Year 2000 Problem."

Year 2000 Problem

     The "Year 2000" problem relates to the fact that many computer programs and
other technology utilizing microprocessors only use two digits to represent a
year, such as "98" to represent "1998." In the year 2000, such programs/
processors could incorrectly treat the year 2000 as the year 1900. The Company's
business is dependent on technology and data processing. As a result, it has
created a Year 2000 team whose members are familiar with the Company's business
and operations. This issue has grown in importance as the use of computers and
microprocessors has become more

                                                                              12
<PAGE>

pervasive throughout the economy, and interdependencies between systems has
multiplied. The issue must be recognized as a business problem, rather than
simply a computer problem, because of the way its effects could ripple through
the economy. The Company could be affected either directly or indirectly by the
Year 2000 issue. This could happen if any of its critical computer systems or
equipment containing embedded logic fail, if the local infrastructure (electric
power, communications, or water system) fails, if its significant vendors are
adversely impacted, or if its borrowers or depositors are significantly impacted
by their internal systems or those of their customers or suppliers.

     The Company utilizes ITI banking software which processes on Unisys
equipment for its data processing and mission critical needs. The Company does
not have access to the programming code of the software. The Company is
dependent on this system, as well as personal computers connected on a local
area network.

     The Company's business also involves non-IT products and services, some of
which have embedded technology which might not be Year 2000 compliant. Some non-
IT products and services involve various infrastructure issues such as power,
communications and water, as well as elevators, ventilation and air conditioning
equipment. The Company classifies power and communications as non-IT mission
critical systems.

     The Company's application software, data processing vendors, computer
operating systems, local area network and the power and communication
infrastructure provide critical support to substantially all of its business and
operations. Failure to successfully complete renovation, validation and
implementation of its mission critical IT systems could have a material adverse
effect on the operations and financial performance of the Company. Moreover,
Year 2000 problems experienced by significant vendors or customers of the
Company or power or communications systems could negatively impact the business
and operations of the Company even if its own critical IT systems are capable of
functioning satisfactorily. Due to the numerous issues and problems which might
arise and lack of guarantees concerning Year 2000 readiness from non-IT service
providers such as power and communication systems vendors, the Company cannot
quantify the potential cost of problems if the Company's renovation and
implementation efforts or the efforts of significant vendors or customers are
not successful.

     State of Readiness

     The Company has conducted a comprehensive review of its IT systems to
identify the systems that could be affected by the Year 2000 problem and has
developed a plan designed to resolve the problem.  The Company believes it has
made continuous progress in addressing all material aspects of the Year 2000
problem.

                                                                              13
<PAGE>

     The Company completed the Awareness and Assessment Phases, as defined by
the Federal Financial Institutions Examination Council (FFIEC), for its IT
systems and Company facilities in 1998 and continues to update its assessment as
needed.  The Company has identified mission-critical systems, assessed the state
of Year 2000 compliance of those systems, and developed a plan to correct non-
compliant systems.  The Company reports on a regular basis to the Board of
Directors on Year 2000 progress.

     The target date established by the FFIEC for substantial completion of
testing for internal mission-critical IT systems was December 31, 1998. At
December 31, 1998, the Company had substantially completed testing of non-Year
2000 compliant IT Systems that were identified as mission-critical. By March 31,
1999 FFIEC Guidelines require that testing by companies relying on service
providers for mission-critical systems should be substantially complete.
External testing with material other third parties (customers, other financial
institutions, business partners, payment system providers, etc.) should have
begun. By June 30, 1999 testing of mission-critical systems should be complete
and implementation should be substantially complete.

     Based on information provided by outside service providers and its testing
process the Company believes that its mission critical IT systems are
substantially Year 2000 compliant. The Company intends to work with its vendors
to resolve any other issues discovered during the testing process. The Company
has completed secondary testing, where it was deemed appropriate, by June 30,
1999. The Company is also monitoring the Year 2000 readiness of outside product
and service vendors. The Company cannot test for Year 2000 readiness of its
power and telecommunications vendors, although the Company is monitoring their
readiness. Additionally, at the date of this report, management of the Company
had not identified any serious problems with its mission-critical systems.

     Costs

     The Company is expensing all period costs associated with the Year 2000
problem. Through December 31, 1998, the amount of such expense had been
approximately $50,000. Management estimates that the Company will incur
approximately an additional $200,000 in Year 2000 related expenses in fiscal
1999. There can be no assurance that these expenses will not increase as further
testing and assessment of vendor and customer readiness and contingency planning
for the Year 2000 continues. The above cost estimates include costs for
consultants, running tests and technical assistance from vendors, as well as
development of contingency plans and costs of communicating with customers
concerning Year 2000 issues

                                                                              14
<PAGE>

     Risks

     Because the Company recognizes that its business and operations could be
adversely affected if key business partners fail to achieve timely Year 2000
compliance, the Company is evaluating strategies to manage and mitigate the
risks to the Company of their Year 2000 failures.

     Management has identified a long-range, most reasonably likely, worst
case scenario.  This scenario suggests that the Year 2000 problem might
negatively impact some significant customers and non-IT vendors/products through
the failure of the customer and/or vendor to be prepared or the impact on them
of the failure of their own vendors and customers.  Management believes that
this scenario could occur in conjunction with an economic recession arising from
the Year 2000 problem.  The Bank's asset quality and earnings could be adversely
impacted in that event.  It is not possible to predict the effect of this Year
2000 scenario on the economic viability of the Bank's customers and the related
adverse impact it may have on Company's financial position and results of
operations, including the level of the Bank's provision for possible loan losses
in future periods.  Further there can be no assurance that other possible
adverse scenarios will not occur.

     The Company presently believes that, based upon its Year 2000 testing
program and assuming representations of Year 2000 readiness from significant
vendors and customers are accurate, the Year 2000 issue should not pose
significant operational risks for the Company's IT systems. However, other
significant risks relating to the Year 2000 problem are that of the unknown
impact of this problem on the operations of the Bank's customers and vendors,
the impact of infrastructure failures such as power, communications and water on
the Company's IT systems, the economy and future actions which banking or
securities regulators may take.

     The Company is making efforts to ensure that its customer base is aware of
the Year 2000 problem. In addition to seminars for and mailings to its customer
base, the Bank has amended its credit policy and credit authorization
documentation to include consideration regarding the Year 2000 problem.
Significant customer relationships have been identified, and such customers are
being contacted by the Bank's account officers to determine whether they are
aware of Year 2000 risks and whether they are taking preparatory actions. An
initial assessment of these customers was substantially completed in late 1998.
The Company is taking follow-up action in 1999 based on the results of this
assessment.

     The Company has also attempted to contact major vendors and suppliers of
non-software products and services (including those where products utilize
embedded technology) to determine the Year 2000 readiness of such organizations
and/or the products and services which the Company purchases from such
organizations. The Company is monitoring reports provided by such vendors
regarding their preparations for Year 2000. This is an ongoing process and the
Company intends to continue to monitor information provided by such vendors
through the century date change.

                                                                              15
<PAGE>

     Federal banking regulators have responsibility for supervision and
examination of banks to determine whether they have an effective plan for
identifying, renovating, testing and implementing solutions for Year 2000
processing and coordinating Year 2000 processing capabilities with its
customers, vendors and payment system partners. Examiners are also required to
assess the soundness of an institution's internal controls and to identify
whether further corrective action may be necessary to ensure an appropriate
level of attention to Year 2000 processing capabilities. Management is currently
in compliance with the federal bank regulatory guidelines and timetables.

     Contingency Plans

     The FFIEC guidelines indicate that remediation contingency plans may be
necessary for mission-critical applications or systems that have not been
certified as Year 2000 ready. In September 1998, the Company began to develop
high-level remediation contingency plans for applications and systems used by
the Company that are deemed mission-critical. Generally this has involved the
identification of an alternate vendor or other expected actions the Company
could take, as well as the establishment of a trigger date to implement the
contingency plan. The Company is currently working to develop further
contingency plans to address potential business disruptions which might result
from Year 2000 issues.

     By June 1999, the Company has completed a Year 2000 business resumption
plan based on a review of reasonable worst-case scenarios. This business
resumption plan is intended to enable the Company to continue to conduct its
core business despite unexpected Year 2000-related failures of systems or
services. This will involve, among other things procedures to be followed in the
event of a power failure, communications failure, or system failure which occurs
despite the testing which has been performed. The Company intends to test and
refine this plan by September 1999.

                                                                              16
<PAGE>

PART II - OTHER INFORMATION

     ITEM 1 - LEGAL PROCEEDINGS
     As of June 30, 1999, the Company was not party to any significant legal
     proceeding.

     ITEM 2 - CHANGES IN SECURITIES AND USE OF PROCEEDS
     There were no changes in the Company's securities during the quarter.

     ITEM 3 - DEFAULTS UPON SENIOR SECURITIES
     No securities of this nature.

     ITEM 4 - OTHER INFORMATION
     None.

     ITEM 5 - EXHIBITS AND REPORTS ON FORM 8-K

     (a)  Exhibits. See Index to Exhibits to this Form 10-QSB, for a list of the
          exhibits filed as a part of this report and incorporated herein by
          reference.

     (b)  Reports on Form 8-K:

          The Company did not file a report on Form 8-K during the second
          quarter of 1999.

                                                                              17
<PAGE>

SIGNATURES

In accordance with the requirements of the Exchange Act, the Registrant has
caused this report to be signed on its behalf by the undersigned, thereunto duly
authorized.




                             NAPA NATIONAL BANCORP
                             ---------------------
                                 (Registrant)



Date: August 6, 1999         /s/ Brian J. Kelly
                             ------------------
                             Brian J. Kelly
                             President / COO



Date: August 6, 1999         /s/ Michael D. Irwin
                             ---------------------
                             Michael D. Irwin
                             Chief Financial Officer

                                                                              18
<PAGE>

                               INDEX TO EXHIBITS


EXHIBIT NO.        DESCRIPTION

3(i)*     Articles of Incorporation of the Registrant, as amended.

3(ii)*    Restated Bylaws of the Registrant.

4.1*      A specimen copy of the certificates evidencing Common Stock.

10.1*     Napa National Bancorp 1992 Stock Option Plan.

10.2*     Form of Incentive Stock Option Agreement.

10.3*     Form of Nonstatutory Stock Option Agreement.

27        Financial Data Schedule.


*Previously filed.

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