**UNITED      STATES**

**SECURITIES      AND EXCHANGE COMMISSION**

**FORM      10-Q**

**FOR      THE QUARTER**
**LY      PERIOD ENDED MARCH 31, 2007 **

**VINEYARD      NATIONAL BANCORP**

|                California(State                or other jurisdiction ofincorporation                or organization)  |   |                33-0309110(IRS                employeridentification                number) |
|---------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------------------------------------------------|
|                                                                                                                            |   |                                                                                            |
| 1260                Corona Pointe CourtCorona,                CA(Address                of principal executive offices)    |   |  92879(Zip                Code)                                                       |

----

**VINEYARD      NATIONAL BANCORP AND SUBSIDIARY**

**FORM      10-Q INDEX**

**FOR      THE PERIODS ENDED MARCH 31, 2007 AND 2006,**

**AND      DECEMBER 31, 2006**

|                    | **PART                I - FINANCIAL INFORMATION**                                                                                                                                   |   |
|-------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                    |                                                                                                                                                                                |   |
| ITEM                1.  | Financial                Statements                                                                                                                                                 |   |
|                    |                                                                                                                                                                                |   |
|                    | Consolidated                Statements of Financial Condition at March 31,                2007 and December 31, 2006                                                                | 3      |
|                    |                                                                                                                                                                                |   |
|                    | Consolidated                Statements of Income for the Three Months Ended                March 31, 2007 and 2006                                                                  | 4      |
|                    |                                                                                                                                                                                |   |
|                    | Consolidated                Statements of Changes in Stockholders' Equity and                Comprehensive Income for the Three Months Ended March 31, 2007 and                2006 | 5      |
|                    |                                                                                                                                                                                |   |
|                    | Consolidated                Statements of Cash Flows for the Three Months                Ended March 31, 2007 and 2006                                                              | 7      |
|                    |                                                                                                                                                                                |   |
|                    | Notes                to Consolidated Financial                Statements                                                                                                            | 9      |
|                    |                                                                                                                                                                                |   |
| ITEM                2.  | Management's                Discussion and Analysis of Financial Condition                and Results of Operations                                                                 | 15     |
|                    |                                                                                                                                                                                |   |
| ITEM                3.  | Quantitative                and Qualitative Disclosures about Market                Risk                                                                                            | 35     |
|                    |                                                                                                                                                                                |   |
| ITEM                4.  | Controls                and Procedures                                                                                                                                              | 35     |
|                    |                                                                                                                                                                                |   |
|                    | **PART                II - OTHER INFORMATION**                                                                                                                                      |   |
|                    |                                                                                                                                                                                |   |
| ITEM                1.  | Legal                Proceedings                                                                                                                                                    | 36     |
|                    |                                                                                                                                                                                |   |
| ITEM                1A. | Risk                Factors                                                                                                                                                         | 36     |
|                    |                                                                                                                                                                                |   |
| ITEM                2.  | Unregistered                Sales of Equity Securities and Use of                Proceeds                                                                                           | 36     |
|                    |                                                                                                                                                                                |   |
| ITEM                3.  | Defaults                Upon Senior Securities                                                                                                                                      | 36     |
|                    |                                                                                                                                                                                |   |
| ITEM                4.  | Submission                of Matters to a Vote of Security                Holders                                                                                                   | 37     |
|                    |                                                                                                                                                                                |   |
| ITEM                5.  | Other                Information                                                                                                                                                    | 37     |
|                    |                                                                                                                                                                                |   |
| ITEM                6.  | Exhibits                                                                                                                                                                            | 37     |
|                    |                                                                                                                                                                                |   |
| Signatures              |                                                                                                                                                                                | 39     |
|                    |                                                                                                                                                                                |   |
| Exhibits                |                                                                                                                                                                                |   |
|                    |                                                                                                                                                                                |   |

----

*Table          of Contents*

**PART      I**

**ITEM      I. FINANCIAL STATEMENTS**

**VINEYARD      NATIONAL BANCORP AND SUBSIDIARY**

**CONSOLIDATED      STATEMENTS OF FINANCIAL CONDITION**

**AS      OF MARCH 31, 2007 AND DECEMBER 31, 2006**

| **(Dollars                in Thousands)**                                 |   | **March                31, 2007** |      | **December                31, 2006** |   |
|---------------------------------------------------------------------------|--------|-----------------------------------|-----------|--------------------------------------|--------|
|                                                                      |   |                              |      |                                 |   |
| **ASSETS**                                                                |   |                              |      |                                 |   |
| Cash                and cash equivalents                                  |   | $                                 | 37,724    |                                 | $      | 35,129 |   |
| Investment                securities                                      |   |                              | 212,438   |                                 |   | 217,907 |   |
| Loans,                net of unearned income                              |   |                              | 1,996,760 |                                 |   | 1,902,244 |   |
| Less:                Allowance for loan losses                            |   |                              | (20,827   | )                                    |   | (19,689 | ) |
| Net                Loans                                                  |   |                              | 1,975,933 |                                 |   | 1,882,555 |   |
| Bank                premises and equipment, net                           |   |                              | 19,642    |                                 |   | 20,402 |   |
| Accrued                interest                                           |   |                              | 11,762    |                                 |   | 11,577 |   |
| Federal                Home Loan Bank ("FHLB") and other stock, at cost   |   |                              | 20,066    |                                 |   | 15,693 |   |
| Deferred                income tax asset                                  |   |                              | 15,059    |                                 |   | 15,475 |   |
| Goodwill                and other intangibles                             |   |                              | 43,890    |                                 |   | 44,198 |   |
| Other                assets                                               |   |                              | 15,157    |                                 |   | 14,803 |   |
| **TOTAL                ASSETS**                                           |   | $                                 | 2,351,671 |                                 | $      | 2,257,739 |   |
|                                                                      |   |                              |      |                                 |   |   |   |
| **LIABILITIES                AND STOCKHOLDERS' EQUITY**                   |   |                              |      |                                 |   |   |   |
| Liabilities                                                               |   |                              |      |                                 |   |   |   |
| Deposits                                                                  |   |                              |      |                                 |   |   |   |
| Non-interest                bearing                                       |   | $                                 | 287,866   |                                 | $      | 292,917 |   |
| Interest-bearing                                                          |   |                              | 1,479,866 |                                 |   | 1,513,496 |   |
| Total                Deposits                                             |   |                              | 1,767,732 |                                 |   | 1,806,413 |   |
|                                                                      |   |                              |      |                                 |   |   |   |
| FHLB                advances                                              |   |                              | 244,000   |                                 |   | 126,000 |   |
| Other                borrowings                                           |   |                              | 45,400    |                                 |   | 40,000 |   |
| Subordinated                debentures                                    |   |                              | 5,000     |                                 |   | 5,000 |   |
| Junior                subordinated debentures                             |   |                              | 115,470   |                                 |   | 115,470 |   |
| Accrued                interest and other liabilities                     |   |                              | 26,762    |                                 |   | 21,796 |   |
| **TOTAL                LIABILITIES**                                      |   |                              | 2,204,364 |                                 |   | 2,114,679 |   |
|                                                                      |   |                              |      |                                 |   |   |   |
| **COMMITMENTS                AND CONTINGENCIES**                          |   |                              |      |                                 |   |   |   |
|                                                                      |   |                              |      |                                 |   |   |   |
| Stockholders'                Equity                                       |   |                              |      |                                 |   |   |   |
| Contributed                capital                                        |   |                              |      |                                 |   |   |   |
| Perpetual                preferred stock - authorized 10,000,000 shares   |   |                              |      |                                 |   |   |   |
| Series                C - no par value, issued and outstanding 10,000     |   |                              |      |                                 |   |   |   |
| shares                in 2007 and 2006, respectively                      |   |                              | 9,665     |                                 |   | 9,665 |   |
| Common                stock - no par value, authorized 50,000,000 shares; |   |                              |      |                                 |   |   |   |
| issued                11,076,119 and 11,140,395 shares                    |   |                              |      |                                 |   |   |   |
| in                2007 and 2006, respectively                             |   |                              | 109,458   |                                 |   | 109,458 |   |
| Additional                paid-in capital                                 |   |                              | 155       |                                 |   | 2,149 |   |
| Retained                earnings                                          |   |                              | 56,534    |                                 |   | 52,105 |   |
| Unallocated                ESOP shares                                    |   |                              | (5,629    | )                                    |   | (5,765 | ) |
| Accumulated                other comprehensive loss, net of income taxes  |   |                              | (3,480    | )                                    |   | (3,913 | ) |
| Treasury                stock, 678,875 and 721,959 shares, at cost        |   |                              |      |                                 |   |   |   |
| in                2007 and 2006, respectively                             |   |                              | (19,396   | )                                    |   | (20,639 | ) |
| **TOTAL                STOCKHOLDERS' EQUITY**                             |   |                              | 147,307   |                                 |   | 143,060 |   |
| **TOTAL                LIABILITIES AND STOCKHOLDERS' EQUITY**             |   | $                                 | 2,351,671 |                                 | $      | 2,257,739 |   |
|                                                                      |   |                              |      |                                 |   |   |   |
| See                accompanying notes to financial statements.            |   |                              |      |                                 |   |   |   |

----

*Table          of Contents*

**VINEYARD      NATIONAL BANCORP AND SUBSIDIARY**

**CONSOLIDATED      STATEMENTS OF INCOME**

**FOR      THE THREE MONTHS ENDED MARCH 31, 2007 AND 2006**

| **(Dollars                in Thousands, except per share amounts)**           |   | **Three                Months Ended March 31,** |   |
|-------------------------------------------------------------------------------|--------|-------------------------------------------------|--------|
|                                                                          |   | **2007**                                        |   | **2006** |   |
| **Interest                Income**                                            |   |                                            |   |   |   |
| Interest                and fees on loans                                     |   | $                                               | 42,211 |   | $ | 31,175 |   |
| Interest                on investment securities                              |   |                                            | 2,938  |   |   | 3,072 |   |
| **TOTAL                INTEREST INCOME**                                      |   |                                            | 45,149 |   |   | 34,247 |   |
|                                                                          |   |                                            |   |   |   |   |   |
| **Interest                Expense**                                           |   |                                            |   |   |   |   |   |
| Interest                on savings deposits                (1)                |   |                                            | 6,539  |   |   | 3,789 |   |
| Interest                on time deposits in denominations of $100,000 or more |   |                                            | 6,393  |   |   | 3,780 |   |
| Interest                on other time deposits                                |   |                                            | 4,141  |   |   | 2,947 |   |
| Interest                on FHLB advances and other borrowings                 |   |                                            | 5,583  |   |   | 4,980 |   |
| **TOTAL                INTEREST EXPENSE**                                     |   |                                            | 22,656 |   |   | 15,496 |   |
| **NET                INTEREST INCOME**                                        |   |                                            | 22,493 |   |   | 18,751 |   |
|                                                                          |   |                                            |   |   |   |   |   |
| **Provision                for Loan Losses**                                  |   |                                            | (1,200 | ) |   | (1,200 | ) |
|                                                                          |   |                                            |   |   |   |   |   |
| **NET                INTEREST INCOME AFTER**                                  |   |                                            |   |   |   |   |   |
| **PROVISION                FOR LOAN LOSSES**                                  |   |                                            | 21,293 |   |   | 17,551 |   |
|                                                                          |   |                                            |   |   |   |   |   |
| **Other                Income**                                               |   |                                            |   |   |   |   |   |
| Fees                and service charges                                       |   |                                            | 483    |   |   | 277 |   |
| Gain                on sale of SBA loans and SBA broker fee income            |   |                                            | 600    |   |   | 544 |   |
| Other                income                                                   |   |                                            | 119    |   |   | 110 |   |
| **TOTAL                OTHER INCOME**                                         |   |                                            | 1,202  |   |   | 931 |   |
|                                                                          |   |                                            |   |   |   |   |   |
| **Other                Expense**                                              |   |                                            |   |   |   |   |   |
| Salaries                and employee benefits                                 |   |                                            | 7,594  |   |   | 6,501 |   |
| Occupancy                expense of premises                                  |   |                                            | 1,379  |   |   | 1,125 |   |
| Furniture                and equipment                                        |   |                                            | 1,079  |   |   | 993 |   |
| Other                                                                         |   |                                            | 3,075  |   |   | 2,730 |   |
| **TOTAL                OTHER EXPENSES**                                       |   |                                            | 13,127 |   |   | 11,349 |   |
| **INCOME                BEFORE INCOME TAXES**                                 |   |                                            | 9,368  |   |   | 7,133 |   |
| **INCOME                TAX PROVISION**                                       |   |                                            | 3,859  |   |   | 2,972 |   |
| **NET                INCOME**                                                 |   | $                                               | 5,509  |   | $ | 4,161 |   |
|                                                                          |   |                                            |   |   |   |   |   |
| **EARNINGS                PER SHARE**                                         |   |                                            |   |   |   |   |   |
| **BASIC**                                                                     |   | $                                               | 0.52   |   | $ | 0.45 |   |
| **DILUTED**                                                                   |   | $                                               | 0.51   |   | $ | 0.43 |   |
|                                                                          |   |                                            |   |   |   |   |   |
| **CASH                DIVIDENDS DECLARED PER SHARE**                          |   | $                                               | 0.08   |   | $ | 0.08 |   |
| **CASH                DIVIDENDS PAID PER SHARE**                              |   | $                                               | 0.08   |   | $ | 0.08 |   |
|                                                                          |   |                                            |   |   |   |  |   |
| See                accompanying notes to financial statements.                |   |                                            |   |   |   |   |   |

| (1)   | Includes                savings, NOW, and money market deposit                accounts. |
|-----------------|-----------------------------------------------------------------------------------------|

----

*Table          of Contents*

**VINEYARD      NATIONAL BANCORP AND SUBSIDIARY**

**CONSOLIDATED      STATEMENTS OF CHANGES IN**

**STOCKHOLDERS'      EQUITY AND COMPREHENSIVE INCOME**

**FOR      THE THREE MONTHS ENDED MARCH 31, 2007 AND 2006**

| **(Dollars                in Thousands)**                  |   |          |   |                            |   |           |   |        |   |              |   |         |   |            |   | **Accumulated**                   |   |                         |   |       |   |      |   |
|------------------------------------------------------------|--------|---------------|--------|---------------------------------|--------|----------------|--------|-------------|--------|-------------------|--------|--------------|--------|-----------------|--------|-----------------------------------|--------|------------------------------|--------|------------|--------|-----------|--------|
|                                                       |   | **Perpetual** |   | **Common                Stock** |   | **Additional** |   |        |   |              |   |         |   | **Other**       |   | **Treasury                Stock** |   |                         |   |
|                                                       |   | **Preferred** |   | **Number                of**    |   |           |   | **Paid-in** |   | **Comprehensive** |   | **Retained** |   | **Unallocated** |   | **Comprehensive**                 |   | **Number                of** |   |       |   |      |   |
|                                                       |   | **Stock**     |   | **Shares**                      |   | **Amount**     |   | **Capital** |   | **Income**        |   | **Earnings** |   | **ESOP**        |   | **Loss**                          |   | **Shares**                   |   | **Amount** |   | **Total** |   |
| **Balance                at December 31, 2005**            |   | $             | 9,665  |                            |   | 10,046,978     |   | $           | 78,832 |              | $      | 4,443        |   |            |   |                              | $      | 36,454                       |   | $          | (6,304 | )         | $      | (5,245 | ) |   | (619,288 | ) | $ | (17,860 | ) | $ | 99,985 |   |
|                                                       |   |          |   |                            |   |           |   |        |   |              |   |         |   |            |   |                              |   |                         |   |       |   |      |   |   |   |   |   |   |   |   |   |   |   |   |
| Exercise                of stock options                   |   |          |   |                            |   | 47,549         |   |        | 183    |              |   |         |   |            |   |                              |   |                         |   |       |   |      |   |   |   |   |   |   |   |   |   |   | 183 |   |
| Purchase                of treasury stock                  |   |          |   |                            |   |           |   |        |   |              |   |         |   |            |   |                              |   |                         |   |       |   |      |   |   |   |   | (43,000 | ) |   | (1,269 | ) |   | (1,269 | ) |
| Purchase                of restricted stock                |   |          |   |                            |   |           |   |        |   |              |   | (919         | )      |            |   |                              |   |                         |   |       |   |      |   |   |   |   |   |   |   |   |   |   | (919 | ) |
| Reclassification                of restricted stock awards |   |          |   |                            |   |           |   |        |   |              |   | (2,821       | )      |            |   |                              |   |                         |   |       |   |      |   |   |   |   |   |   |   |   |   |   | (2,821 | ) |
| Share-based                compensation expense            |   |          |   |                            |   |           |   |        |   |              |   | 13           |   |            |   |                              |   |                         |   |       |   |      |   |   |   |   |   |   |   |   |   |   | 13 |   |
| Release                of ESOP shares                      |   |          |   |                            |   |           |   |        |   |              |   | 36           |   |            |   |                              |   |                         |   |       | 135    |      |   |   |   |   |   |   |   |   |   |   | 171 |   |
| Cash                dividends declared on                  |   |          |   |                            |   |           |   |        |   |              |   |         |   |            |   |                              |   |                         |   |       |   |      |   |   |   |   |   |   |   |   |   |   |   |   |
| preferred                stock                             |   |          |   |                            |   |           |   |        |   |              |   |         |   |            |   |                              |   | (208                         | )      |       |   |      |   |   |   |   |   |   |   |   |   |   | (208 | ) |
| Cash                dividends declared on                  |   |          |   |                            |   |           |   |        |   |              |   |         |   |            |   |                              |   |                         |   |       |   |      |   |   |   |   |   |   |   |   |   |   |   |   |
| common                stock                                |   |          |   |                            |   |           |   |        |   |              |   |         |   |            |   |                              |   | (756                         | )      |       |   |      |   |   |   |   |   |   |   |   |   |   | (756 | ) |
| Comprehensive                income                        |   |          |   |                            |   |           |   |        |   |              |   |         |   |            |   |                              |   |                         |   |       |   |      |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                Income                                  |   |          |   |                            |   |           |   |        |   |              |   |         |   | $               | 4,161  |                              |   | 4,161                        |   |       |   |      |   |   |   |   |   |   |   |   |   |   | 4,161 |   |
| Unrealized                security holding                 |   |          |   |                            |   |           |   |        |   |              |   |         |   |            |   |                              |   |                         |   |       |   |      |   |   |   |   |   |   |   |   |   |   |   |   |
| losses                (net of $705                         |   |          |   |                            |   |           |   |        |   |              |   |         |   |            |   |                              |   |                         |   |       |   |      |   |   |   |   |   |   |   |   |   |   |   |   |
| tax                benefit)                                |   |          |   |                            |   |           |   |        |   |              |   |         |   |            | (974   | )                                 |   |                         |   |       |   |      |   | (974 | ) |   |   |   |   |   |   |   | (974 | ) |
| Total                comprehensive income                  |   |          |   |                            |   |           |   |        |   |              |   |         |   | $               | 3,187  |                              |   |                         |   |       |   |      |   |   |   |   |   |   |   |   |   |   |   |   |
| **Balance                at March 31, 2006**               |   | $             | 9,665  |                            |   | 10,094,527     |   | $           | 79,015 |              | $      | 752          |   |            |   |                              | $      | 39,651                       |   | $          | (6,169 | )         | $      | (6,219 | ) |   | (662,288 | ) | $ | (19,129 | ) | $ | 97,566 |   |

----

*Table          of Contents*

**VINEYARD      NATIONAL BANCORP AND SUBSIDIARY**

**CONSOLIDATED      STATEMENTS OF CHANGES IN**

**STOCKHOLDERS'      EQUITY AND COMPREHENSIVE INCOME**

**FOR      THE THREE MONTHS ENDED MARCH 31, 2007 AND 2006**

| **(Dollars                in Thousands)**                      |   |          |   |                            |   |           |   |        |    |              |   |         |   |            |   | **Accumulated**                   |   |                         |   |       |   |      |   |
|----------------------------------------------------------------|--------|---------------|--------|---------------------------------|--------|----------------|--------|-------------|---------|-------------------|--------|--------------|--------|-----------------|--------|-----------------------------------|--------|------------------------------|--------|------------|--------|-----------|--------|
|                                                           |   | **Perpetual** |   | **Common                Stock** |   | **Additional** |   |        |    |              |   |         |   | **Other**       |   | **Treasury                Stock** |   |                         |   |
|                                                           |   | **Preferred** |   | **Number                of**    |   |           |   | **Paid-in** |    | **Comprehensive** |   | **Retained** |   | **Unallocated** |   | **Comprehensive**                 |   | **Number                of** |   |       |   |      |   |
|                                                           |   | **Stock**     |   | **Shares**                      |   | **Amount**     |   | **Capital** |    | **Income**        |   | **Earnings** |   | **ESOP**        |   | **Loss**                          |   | **Shares**                   |   | **Amount** |   | **Total** |   |
| **Balance                at December 31, 2006**                |   | $             | 9,665  |                            |   | 11,140,395     |   | $           | 109,458 |              | $      | 2,149        |   |            |   |                              | $      | 52,105                       |   | $          | (5,765 | )         | $      | (3,913 | ) |   | (721,959 | ) | $ | (20,639 | ) | $ | 143,060 |   |
|                                                           |   |          |   |                            |   |           |   |        |    |              |   |         |   |            |   |                              |   |                         |   |       |   |      |   |   |   |   |   |   |   |   |   |   |   |   |
| Restricted                shares surrendered to treasury       |   |          |   |                            |   |           |   |        |    |              |   |         |   |            |   |                              |   |                         |   |       |   |      |   |   |   |   | (3,283 | ) |   | (83 | ) |   | (83 | ) |
| Transfer                of treasury stock to restricted stock  |   |          |   |                            |   | (46,367        | )      |        |    |              |   | (1,326       | )      |            |   |                              |   |                         |   |       |   |      |   |   |   |   | 46,367 |   |   | 1,326 |   |   | - |   |
| Purchase                of restricted stock                    |   |          |   |                            |   | (35,000        | )      |        |    |              |   | (858         | )      |            |   |                              |   |                         |   |       |   |      |   |   |   |   |   |   |   |   |   |   | (858 | ) |
| Vesting                of restricted stock                     |   |          |   |                            |   | 17,091         |   |        |    |              |   |         |   |            |   |                              |   |                         |   |       |   |      |   |   |   |   |   |   |   |   |   |   | - |   |
| Amortization                of restricted stock                |   |          |   |                            |   |           |   |        |    |              |   | 171          |   |            |   |                              |   |                         |   |       |   |      |   |   |   |   |   |   |   |   |   |   | 171 |   |
| Share-based                compensation expense                |   |          |   |                            |   |           |   |        |    |              |   | 24           |   |            |   |                              |   |                         |   |       |   |      |   |   |   |   |   |   |   |   |   |   | 24 |   |
| Release                of ESOP shares                          |   |          |   |                            |   |           |   |        |    |              |   | (5           | )      |            |   |                              |   |                         |   |       | 136    |      |   |   |   |   |   |   |   |   |   |   | 131 |   |
| Cash                dividends declared on preferred            |   |          |   |                            |   |           |   |        |    |              |   |         |   |            |   |                              |   |                         |   |       |   |      |   |   |   |   |   |   |   |   |   |   |   |   |
| stock                                                          |   |          |   |                            |   |           |   |        |    |              |   |         |   |            |   |                              |   | (229                         | )      |       |   |      |   |   |   |   |   |   |   |   |   |   | (229 | ) |
| Cash                dividends declared on common               |   |          |   |                            |   |           |   |        |    |              |   |         |   |            |   |                              |   |                         |   |       |   |      |   |   |   |   |   |   |   |   |   |   |   |   |
| stock                                                          |   |          |   |                            |   |           |   |        |    |              |   |         |   |            |   |                              |   | (851                         | )      |       |   |      |   |   |   |   |   |   |   |   |   |   | (851 | ) |
| Comprehensive                income                            |   |          |   |                            |   |           |   |        |    |              |   |         |   |            |   |                              |   |                         |   |       |   |      |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                Income                                      |   |          |   |                            |   |           |   |        |    |              |   |         |   | $               | 5,509  |                              |   | 5,509                        |   |       |   |      |   |   |   |   |   |   |   |   |   |   | 5,509 |   |
| Unrealized                security holding                     |   |          |   |                            |   |           |   |        |    |              |   |         |   |            |   |                              |   |                         |   |       |   |      |   |   |   |   |   |   |   |   |   |   |   |   |
| gains                (net of $314                              |   |          |   |                            |   |           |   |        |    |              |   |         |   |            |   |                              |   |                         |   |       |   |      |   |   |   |   |   |   |   |   |   |   |   |   |
| tax                provision)                                  |   |          |   |                            |   |           |   |        |    |              |   |         |   |            | 433    |                              |   |                         |   |       |   |      |   | 433 |   |   |   |   |   |   |   |   | 433 |   |
| Total                comprehensive income                      |   |          |   |                            |   |           |   |        |    |              |   |         |   | $               | 5,942  |                              |   |                         |   |       |   |      |   |   |   |   |   |   |   |   |   |   |   |   |
| **Balance                at March 31, 2007**                   |   | $             | 9,665  |                            |   | 11,076,119     |   | $           | 109,458 |              | $      | 155          |   |            |   |                              | $      | 56,534                       |   | $          | (5,629 | )         | $      | (3,480 | ) |   | (678,875 | ) | $ | (19,396 | ) | $ | 147,307 |   |
|                                                           |   |          |   |                            |   |           |   |        |    |              |   |         |   |            |   |                              |   |                         |   |       |   |      |   |   |   |   |   |   |   |   |   |   |   |   |
| See                accompanying notes to financial statements. |   |          |   |                            |   |           |   |        |    |              |   |         |   |            |   |                              |   |                         |   |       |   |      |   |   |   |   |   |   |   |   |

----

*Table          of Contents*

**VINEYARD      NATIONAL BANCORP AND SUBSIDIARY**

**CONSOLIDATED      STATEMENTS OF CASH FLOWS**

**FOR      THE THREE MONTHS ENDED MARCH 31, 2007 AND 2006**

| **(Dollars                in Thousands)**                                   |   | **Three                Months Ended March 31,** |    |
|-----------------------------------------------------------------------------|--------|-------------------------------------------------|---------|
|                                                                        |   | **2007**                                        |    | **2006** |   |
| **Cash                Flows From Operating Activities**                     |   |                                            |    |   |   |
| Net                Income                                                   |   | $                                               | 5,509   |   | $ | 4,161 |   |
| Adjustments                to Reconcile Net Income                          |   |                                            |    |   |   |   |   |
| to                Net Cash Provided by Operating Activities                 |   |                                            |    |   |   |   |   |
|                                                                        |   |                                            |    |   |   |   |   |
| Depreciation                and amortization                                |   |                                            | 1,479   |   |   | 1,507 |   |
| Provision                for credit losses                                  |   |                                            | 800     |   |   | 1,210 |   |
| FHLB                stock dividends                                         |   |                                            | (116    | ) |   | (220 | ) |
| Share-based                compensation                                     |   |                                            | 24      |   |   | 13 |   |
| Release                of ESOP shares                                       |   |                                            | 131     |   |   | 171 |   |
| Decrease                in deferred tax assets                              |   |                                            | 102     |   |   | 84 |   |
| Increase                in taxes payable                                    |   |                                            | 3,859   |   |   | 2,059 |   |
| Increase                in other assets                                     |   |                                            | (647    | ) |   | (1,200 | ) |
| Gain                on sale of property, plant, and equipment               |   |                                            | -       |   |   | (4 | ) |
| Origination                and purchase of held-for-sale loans,             |   |                                            |    |   |   |   |   |
| net                of principal payments                                    |   |                                            | (7,183  | ) |   | - |   |
| Gain                on sale of loans                                        |   |                                            | (139    | ) |   | (207 | ) |
| (Decrease)/increase                in unearned loan fees                    |   |                                            | (482    | ) |   | 55 |   |
| Increase                in interest receivable                              |   |                                            | (185    | ) |   | (538 | ) |
| Increase/(decrease)                in interest payable                      |   |                                            | 145     |   |   | (234 | ) |
| Increase                in accrued expense and other liabilities            |   |                                            | 1,367   |   |   | 6,331 |   |
| Total                Adjustment                                             |   |                                            | (845    | ) |   | 9,027 |   |
| **Net                Cash Provided By Operating Activities**                |   |                                            | 4,664   |   |   | 13,188 |   |
|                                                                        |   |                                            |    |   |   |   |   |
| **Cash                Flows From Investing Activities**                     |   |                                            |    |   |   |   |   |
| Proceeds                from principal reductions and maturities of         |   |                                            |    |   |   |   |   |
| mortgage-backed                securities available-for-sale                |   |                                            | 6,464   |   |   | 8,922 |   |
| Purchase                of FHLB & other stock                           |   |                                            | (4,257  | ) |   | (2,914 | ) |
| Redemption                of FHLB stock                                     |   |                                            | -       |   |   | 6,120 |   |
| Recoveries                on loans previously written off                   |   |                                            | 15      |   |   | 47 |   |
| Origination                and purchase of loans, net of principal payments |   |                                            | (95,244 | ) |   | (149,967 | ) |
| Proceeds                from sale of loans                                  |   |                                            | 8,455   |   |   | 3,696 |   |
| Proceeds                from sale of property, plant, and equipment         |   |                                            | -       |   |   | 4 |   |
| Capital                expenditures                                         |   |                                            | (195    | ) |   | (1,038 | ) |
| **Net                Cash Used In Investing Activities**                    |   |                                            | (84,762 | ) |   | (135,130 | ) |

----

*Table          of Contents*

**VINEYARD      NATIONAL BANCORP AND SUBSIDIARY**

**CONSOLIDATED      STATEMENTS OF CASH FLOWS**

**FOR      THE THREE MONTHS ENDED MARCH 31, 2007 AND 2006**

**(continued)**

| **(Dollars                in Thousands)**                                      |   |     |    |     |   |
|--------------------------------------------------------------------------------|--------|----------|---------|----------|--------|
|                                                                           |   | **2007** |    | **2006** |   |
| **Cash                Flows From Financing Activities**                        |   |     |    |     |   |
| Net                increase in demand deposits, NOW accounts,                  |   |     |    |     |   |
| savings                accounts, and money market deposits                     |   | $        | 50,487  |     | $      | 61,344 |   |
| Net                (decrease)/increase in certificates of deposits             |   |     | (89,168 | )        |   | 42,729 |   |
| Net                increase in FHLB advances                                   |   |     | 118,000 |     |   | 35,000 |   |
| Increase                in other borrowings                                    |   |     | 5,400   |     |   | - |   |
| Purchase                of treasury stock                                      |   |     | (83     | )        |   | (1,269 | ) |
| Purchase                of restricted stock                                    |   |     | (858    | )        |   | (919 | ) |
| Dividends                paid on preferred stock                               |   |     | (234    | )        |   | (201 | ) |
| Dividends                paid on common stock                                  |   |     | (851    | )        |   | (756 | ) |
| Proceeds                from exercise of stock options                         |   |     | -       |     |   | 183 |   |
| **Net                Cash Provided By Financing Activities**                   |   |     | 82,693  |     |   | 136,111 |   |
|                                                                           |   |     |    |     |   |   |   |
| **Net                Increase in Cash and Cash Equivalents**                   |   |     | 2,595   |     |   | 14,169 |   |
|                                                                           |   |     |    |     |   |   |   |
| **Cash                and Cash Equivalents**,                Beginning of year |   |     | 35,129  |     |   | 28,630 |   |
|                                                                           |   |     |    |     |   |   |   |
| **Cash                and Cash Equivalents**,                End of period     |   | $        | 37,724  |     | $      | 42,799 |   |
|                                                                           |   |     |    |     |   |   |   |
| **Supplemental                Information**                                    |   |     |    |     |   |   |   |
| Net                change in unrealized loss on investment securities          |   | $        | (747    | )        | $      | 1,679 |   |
| Interest                paid                                                   |   | $        | 22,511  |     | $      | 15,730 |   |
| Income                tax paid                                                 |   | $        | -       |     | $      | - |   |
|                                                                           |   |     |    |     |   |   |   |
|                                                                           |   |     |    |     |   |   |   |
| See                accompanying notes to financial statements.                 |   |     |    |     |   |   |   |

----

*Table          of Contents*

**VINEYARD        NATIONAL BANCORP AND SUBSIDIARY**

**NOTES        TO CONSOLIDATED FINANCIAL STATEMENTS**

**Note        #1 - Nature of Business and Summary of Significant Accounting        Policies**

Investment        Securities

*“Accounting        for Certain Investments in Debt and Equity Securities,” *
* *

----

*Table            of Contents*

**Note        #2 - Recently Issued Accounting Pronouncements**

*The        Fair Value Option for Financial Assets and Financial        Liabilities*

*Accounting        for Uncertainty in Income Taxes,”*
*Accounting        for Income Taxes”*

**Note          #3 - Share-Based Compensation**

----

*Table            of Contents*

*Share      Based Payment”*
*Accounting      for Stock Issued to Employees*

|                                                          |   | **Three                months ended** |   |
|---------------------------------------------------------------|--------|---------------------------------------|--------|
|                                                          |   | **March                31, 2007**     |   |
| Dividend                yield                                 |   |                                  | 1.42   | % |
| Expected                life (in years)                       |   |                                  | 3.25   |   |
| Expected                volatility                            |   |                                  | 27.14  | % |
| Risk-free                rate                                 |   |                                  | 4.48   | % |
| Weighted                average fair value of options granted |   | $                                     | 5.03   |   |

| **(Dollars                in Thousands)** |   |                                  |   |
|-------------------------------------------|--------|---------------------------------------|--------|
|                                      |   |                                  |   |
| **Year                ended**             |   |                                  |   |
| **December                31,**           |   | **Compensation                Costs** |   |
| 2007                                      |   | $                                     | 149    |   |
| 2008                                      |   | $                                     | 167    |   |
| 2009                                      |   | $                                     | 153    |   |

----

*Table            of Contents*

| **(Dollars                in Thousands, except per share)** |   |        |    |          |   | **Weighted-**   |   |          |                      |
|-------------------------------------------------------------|--------|-------------|---------|---------------|--------|-----------------|--------|---------------|---------------------------|
|                                                        |   |        |    | **Weighted-** |   | **Average**     |   |          |                      |
|                                                        |   |        |    | **Average**   |   | **Remaining**   |   | **Aggregate** |                      |
|                                                        |   |        |    | **Exercise**  |   | **Contractual** |   | **Intrinsic** |                      |
|                                                        |   | **Options** |    | **Price**     |   | **Term**        |   | **Value**     |                      |
| Outstanding                at December 31, 2006             |   |        | 370,077 |          | $      | 6.50            |   |          | 5.03                years |   |   |   |   |
| Granted                                                     |   |        | 50,000  |          |   | 22.51           |   |          | 4.00                years |   |   |   |   |
| Exercised                                                   |   |        | -       |          |   |            |   |          |                      |   |   |   |   |
| Forfeited                or expired                         |   |        | -       |          |   |            |   |          |                      |   |   |   |   |
| Outstanding                at March 31, 2007                |   |        | 420,077 |          | $      | 8.41            |   |          | 4.68                years |   | $ | 6,146 |   |
| Exercisable                at March 31, 2007                |   |        | 320,077 |          | $      | 4.06            |   |          | 4.96                years |   | $ | 6,075 |   |

| **(Dollars                in Thousands, except per share)** |   |        |    |          |   | **Weighted-**   |   |          |                      |
|-------------------------------------------------------------|--------|-------------|---------|---------------|--------|-----------------|--------|---------------|---------------------------|
|                                                        |   |        |    | **Weighted-** |   | **Average**     |   |          |                      |
|                                                        |   |        |    | **Average**   |   | **Remaining**   |   | **Aggregate** |                      |
|                                                        |   |        |    | **Exercise**  |   | **Contractual** |   | **Intrinsic** |                      |
|                                                        |   | **Options** |    | **Price**     |   | **Term**        |   | **Value**     |                      |
| Outstanding                at December 31, 2005             |   |        | 427,155 |          | $      | 3.84            |   |          | 6.15                years |   |   |   |   |
| Granted                                                     |   |        | -       |          |   |            |   |          |                      |   |   |   |   |
| Exercised                                                   |   |        | (47,549 | )             |   | 3.84            |   |          |                      |   |   |   |   |
| Forfeited                or expired                         |   |        | -       |          |   |            |   |          |                      |   |   |   |   |
| Outstanding                at March 31, 2006                |   |        | 379,606 |          | $      | 3.84            |   |          | 5.90                years |   | $ | 9,521 |   |
| Exercisable                at March 31, 2006                |   |        | 379,606 |          | $      | 3.84            |   |          | 5.90                years |   | $ | 9,521 |   |

|                                          |   |           |    | **Weighted-**                 |   |
|-----------------------------------------------|--------|----------------|---------|-------------------------------|--------|
|                                          |   |           |    | **Average**                   |   |
|                                          |   | **Non-vested** |    | **Grant-Date**                |   |
|                                          |   | **Options**    |    | **Fair                Value** |   |
| Nonvested                at December 31, 2006 |   |           | 50,000  |                          | $      | 5.00 |   |
| Granted                                       |   |           | 50,000  |                          |   | 5.03 |   |
| Vested                                        |   |           | -       |                          |   | - |   |
| Forfeited                or expired           |   |           | -       |                          |   | - |   |
| Nonvested                at March 31, 2007    |   |           | 100,000 |                          | $      | 5.02 |   |

|                                              |   |           |   | **Weighted-**                     |   |
|---------------------------------------------------|--------|----------------|--------|-----------------------------------|--------|
|                                              |   |           |   | **Average**                       |   |
|                                              |   | **Non-vested** |   | **Grant-Date**                    |   |
|                                              |   | **Options**    |   | **Fair                    Value** |   |
| Nonvested                    at December 31, 2005 |   |           | 7,997  |                              | $      | 1.62 |   |
| Granted                                           |   |           | -      |                              |   | - |   |
| Vested                                            |   |           | (7,997 | )                                 |   | 1.62 |   |
| Forfeited                    or expired           |   |           | -      |                              |   | - |   |
| Nonvested                    at March 31, 2006    |   |           | -      |                              | $      | - |   |

----

*Table          of Contents*

|                                            |   |                                 |    | **Weighted-                Average** |   |
|-------------------------------------------------|--------|--------------------------------------|---------|--------------------------------------|--------|
|                                            |   | **Restricted                Shares** |    | **Fair                Value**        |   |
| Outstanding                at December 31, 2006 |   |                                 | 213,661 |                                 | $      | 25.01 |   |
| Granted                                         |   |                                 | 98,887  |                                 |   | 24.11 |   |
| Forfeited                                       |   |                                 | (21,250 | )                                    |   | 19.34 |   |
| Vested                                          |   |                                 | (17,091 | )                                    |   | 23.32 |   |
| Outstanding                at March 31, 2007    |   |                                 | 274,207 |                                 | $      | 25.23 |   |

**Note      #4 - Dividends **

**Note      #5 - Commitments and Contingencies**

| **(Dollars                  in thousands)**   |   | **As                  of**          |    |
|-----------------------------------------------|--------|-------------------------------------|---------|
|                                          |   | **March                  31, 2007** |    | **December                  31, 2006** |   |
| Commitments                  to extend credit |   | $                                   | 674,157 |   | $ | 684,794 |   |
| Commitments                  to extend credit |   |                                |    |   |   |   |   |
| to                  directors and officers    |   | $                                   | 1,394   |   | $ | 1,411 |   |
| Standby                  letters of credit    |   | $                                   | 8,282   |   | $ | 10,547 |   |
| Commercial                  letters of credit |   | $                                   | 19      |   | $ | - |   |

----

*Table          of Contents*

**Note      #6 - Employee Stock Ownership Plan**

**Note        #7 - Earnings per Share **

----

*Table          of Contents*

| **(Dollars                in Thousands)**               |   | **Three                Months Ended March 31,** |   |
|---------------------------------------------------------|--------|-------------------------------------------------|--------|
|                                                    |   | **2007**                                        |   | **2006** |   |
|                                                    |   | **Income**                                      |   | **Shares** |   | **Income** |   | **Shares** |   |
| Net                income as reported                   |   | $                                               | 5,509  |   |   |   |   | $ | 4,161 |   |   |   |   |
| Less:                Preferred stock dividends declared |   |                                            | (229   | ) |   |   |   |   | (208 | ) |   |   |   |
| Shares                outstanding at end of period      |   |                                            |   |   |   | 10,397,244 |   |   |   |   |   | 9,432,239 |   |
| Unreleased                and unallocated ESOP shares   |   |                                            |   |   |   | (239,740 | ) |   |   |   |   | (262,771 | ) |
| Impact                of weighting shares               |   |                                            |   |   |   |   |   |   |   |   |   |   |   |
| issued                during the period                 |   |                                            |   |   |   | 17,847 |   |   |   |   |   | (424,651 | ) |
| Used                in basic EPS                        |   | $                                               | 5,280  |   |   | 10,175,351 |   | $ | 3,953 |   |   | 8,744,817 |   |
| Dilutive                effect of outstanding           |   |                                            |   |   |   |   |   |   |   |   |   |   |   |
| stock                options and warrants               |   |                                            |   |   |   | 232,050 |   |   |   |   |   | 370,709 |   |
| Used                in diluted EPS                      |   | $                                               | 5,280  |   |   | 10,407,401 |   | $ | 3,953 |   |   | 9,115,526 |   |

**ITEM      2. Management’s Discussion and Analysis of Financial Condition      and Results of Operations**

**Forward-looking      statements**

**General        Business and Organization**

*Vineyard        National Bancorp*

----

*Table          of Contents*

*Vineyard      Bank*

**Executive      Overview and Highlights**

*New      Loan Production Office*

*New      Chairman of the Board*

**Our          Strategic Plan**

*Organic          Growth Initiatives*

----

*Table          of Contents*

| ·   | Commercial                customers with annual revenues typically ranging from $10 million                to $75                million; |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Entrepreneurs                and individuals with a focus on their unique objectives, operations                and                activities; and |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Non-profit                organizations, such as religious institutions, schools, and government                and                quasi-government agencies. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------|

*Inorganic      Growth Initiatives*

| ·   | the                Inland Empire region, which primarily includes San Bernardino and                Riverside counties; |
|--------------------|-------------------------------------------------------------------------------------------------------------------------|

| ·   | the                coastal communities of Los Angeles county; |
|--------------------|---------------------------------------------------------------|

| ·   | the                San Gabriel Valley region of Los Angeles                county; |
|--------------------|------------------------------------------------------------------------------------|

| ·   | the                southern coastal communities of Orange and San Diego counties; |
|--------------------|-----------------------------------------------------------------------------------|

| ·   | the                northern communities of Marin, Monterey, and Santa Clara counties;                and |
|--------------------|----------------------------------------------------------------------------------------------------------|

| ·   | the                central coastal communities of Ventura                county. |
|--------------------|----------------------------------------------------------------------------------|

*Specialty      Lending Product Offerings *

| ·   | Luxury                Home Construction Lending:* *                We                originate high-end single-family residential luxury construction                loans                primarily within Los Angeles’ “south bay” coastal communities (including                Manhattan Beach, Hermosa Beach, El Segundo and Redondo Beach, as                well as                the Palos Verdes Peninsula area), Los Angeles’ “west side” (including                Beverly Hills, Brentwood, Bel Air and Malibu) and Orange County regions                where we believe we have a competitive advantage based on established                builder and customer relationships and expertise in the construction                market.  Although the general California real estate market has shown                signs of slowing, we continue to believe there is relative strength                in the                demand for this loan product within the luxury housing market (consisting                of homes priced at $2.0 million and above) along the California coast                and                in other established affluent regions of California. We believe the                high                employment level, strong incomes, wealth accumulation, stable interest                rates and good schools in these luxury regions allow continued confidence                in the stability of these markets. These types of construction loans                typically range from $1.0 million to $5.0 million. In addition to                establishing the Palo Alto LPO in February 2007, we plan to expand                this                group in new geographic areas similar in demographics to our existing                market area. During the three months ended March 31, 2007, gross                commitments generated for this loan product amounted to $128.9 million.                Our single-family residential luxury construction loans outstanding                amounted to $553.3 million and $514.4 million at March 31, 2007 and                December 31, 2006, respectively, net of participations sold of $56.9                million and $86.7 million, respectively. As of March 31, 2007, we                had                $281.8 million in undisbursed single-family residential luxury                construction loan commitments. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

*Table          of Contents*

| ·   | Tract                Construction Lending:                We                originate single-family residential tract construction loans, primarily                secured by newly-constructed, entry to mid-level detached and attached                homes.  While these loans are predominantly originated within the                Inland Empire of Southern California, we have financed projects throughout                California.  The Inland Empire’s resale and new home markets continue                to be supported by a growing labor base. These types of construction                loans                typically range from $5.0 million to $20.0 million on projects                ranging in size from 6 to 165 lots. During the three months ended                March                31, 2007, gross commitments generated for this loan product amounted                to                $27.2 million. Our single-family residential tract construction loans                outstanding amounted to $160.3 million and $152.1 million at March                31,                2007 and December 31, 2006, respectively, net of participations sold                of                approximately $145,000 and $3.2 million, respectively. As of March                31,                2007, we had $126.5 million in undisbursed single-family residential                tract                construction loan commitments. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | SBA                Lending:                We                offer SBA 7(a) and 504 loans to small businesses throughout our market                area. SBA loans are a complement to our focus on strengthening and                supporting local communities. SBA loans are generally made pursuant                to a                federal government program designed to assist small businesses in                obtaining financing. The federal government guarantees 75% to 85%                of the                SBA loan balances as an incentive for financial institutions to make                loans                to small businesses. We generally sell the guaranteed portion of                the SBA                loan which is approximately 75% to 85% of the originated balance                at a                premium sale price between 105% and 110%. We had $16.1 million and                $12.4 million of outstanding SBA loans at March 31, 2007 and December                31,                2006, respectively, net of participations sold of $49.1 million and                $50.4                million, respectively. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Non-Profit                Services Group:                We                provide loan and deposit services to non-profit organizations, including                churches and private schools throughout our market area. These activities                are also a complement to our focus on strengthening and supporting                local                communities. Loans to non-profit organizations amounted to $47.9                million                and $45.6 million at March 31, 2007 and December 31, 2006,                respectively. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Income                Property Lending:                We                have an income property lending division to service the lending needs                in                growing markets for commercial real estate and multifamily/apartments                in                California and neighboring states. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

*Commercial      Real Estate*

*Residential      Real Estate*

----

*Table          of Contents*

*Specialty      Deposit Product Offerings*

| ·   | Branching                System:*** ***                The majority of our full-service banking centers have recently been                redesigned to offer a high-tech, high-service environment. We have                replaced the traditional teller lines with client service desks which                incorporate both new account and traditional teller operations with                state-of-the-art circulating cash machines present at each desk.                To                further the reach of each of our banking centers, we may open DPOs                or                LPOs, which are satellite offices of the existing banking centers                that                will exist exclusively to generate deposits and loans, respectively.                We                also offer courier services, internet based banking, and ATMs and                kiosks                to make banking more convenient to each of our                customers. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ***·  *** | Cash                Management:*** ***                To                offer expedient banking with new and emerging technologies, we offer                various cash management services to our customers. These services                facilitate business customers’ cash flow and aid in maximizing their                investment potential by aligning products and services to a customer’s                needs and include the following: |
|--------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ***o  *** | *Remote                Item Capture:**** ***This                technology, also termed “electronic deposit”, allows clients to scan items                for deposit and electronically send images of the items securely                to our                processor. This service also provides customers with the convenience                to                perform banking activities from within their place of                business. |
|---------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ***o  *** | *Online                Banking:**** ***                Our online banking includes services such as automated wire processing,                electronic tax payments, electronic transfers, loan payments, bill                payments, and account reconciliation. |
|---------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ***o  *** | *Lockbox                Processing:**** ***                Our lockbox services aid customers in expediting the processing of                their                deposits and increasing their float value for investment purposes.                This                product also provides same-day reporting of                deposits. |
|---------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ***o  *** | *Positive                Pay:**** ***This                service provides business customers with increased efficiency and                security                by allowing them to review checks presented against their accounts                prior                to disbursing funds while helping clients to identify potentially                fraudulent activity in their                account. |
|---------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Critical      Accounting Policies**

*Allowance        for Credit Losses*

----

*Table          of Contents*

*Goodwill      and Intangible Assets*

----

*Table          of Contents*

*Income      Taxes*

**Results      of Operations**

*Overview*

*Net      Interest Income*

----

*Table          of Contents*

*Net      Interest Margin *

----

*Table          of Contents*

| **(Dollars                in Thousands)**                 |   | **For                the three months ended March 31,** |      |
|-----------------------------------------------------------|--------|---------------------------------------------------------|-----------|
|                                                      |   | **2007**                                                |      | **2006** |   |
|                                                      |   | **Average**                                             |      |   |   | **Average** |   | **Average** |   |   |   | **Average** |   |
|                                                      |   | **Balance**                                             |      | **Interest** |   | **Yield/Cost** |   | **Balance** |   | **Interest** |   | **Yield/Cost** |   |
| **Assets**                                                |   |                                                    |      |   |   |   |   |   |   |   |   |   |   |
| Loans                (1)                                  |   | $                                                       | 1,943,391 |   | $ | 42,211 |   |   | 8.81 | % | $ | 1,440,184 |   | $ | 31,175 |   |   | 8.78 | % |
| Investment                securities (2)                  |   |                                                    | 221,743   |   |   | 2,668 |   |   | 4.81 | % |   | 257,676 |   |   | 2,872 |   |   | 4.46 | % |
| Federal                funds sold                         |   |                                                    | 873       |   |   | 11 |   |   | 5.25 | % |   | 289 |   |   | 3 |   |   | 4.42 | % |
| Other                investments                          |   |                                                    | 18,452    |   |   | 259 |   |   | 5.68 | % |   | 16,218 |   |   | 197 |   |   | 4.91 | % |
| Total                interest-earning assets              |   |                                                    | 2,184,459 |   |   | 45,149 |   |   | 8.38 | % |   | 1,714,367 |   |   | 34,247 |   |   | 8.09 | % |
| Other                assets                               |   |                                                    | 127,932   |   |   |   |   |   |   |   |   | 75,158 |   |   |   |   |   |   |   |
| Less:                allowance for loan losses            |   |                                                    | (19,913   | ) |   |   |   |   |   |   |   | (14,170 | ) |   |   |   |   |   |   |
| Total                average assets                       |   | $                                                       | 2,292,478 |   |   |   |   |   |   |   | $ | 1,775,355 |   |   |   |   |   |   |   |
|                                                      |   |                                                    |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Liabilities                and Stockholders' Equity**   |   |                                                    |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Savings                deposits                (3)        |   | $                                                       | 659,408   |   |   | 6,539 |   |   | 4.02 | % | $ | 458,256 |   |   | 3,789 |   |   | 3.35 | % |
| Time                deposits                              |   |                                                    | 825,785   |   |   | 10,534 |   |   | 5.17 | % |   | 659,458 |   |   | 6,727 |   |   | 4.14 | % |
| FHLB                advances                              |   |                                                    | 205,309   |   |   | 2,554 |   |   | 5.00 | % |   | 267,317 |   |   | 2,972 |   |   | 4.51 | % |
| Other                borrowings                           |   |                                                    | 34,748    |   |   | 635 |   |   | 7.31 | % |   | 10,044 |   |   | 169 |   |   | 6.75 | % |
| Subordinated                debt                          |   |                                                    | 5,000     |   |   | 109 |   |   | 8.73 | % |   | 5,000 |   |   | 98 |   |   | 7.82 | % |
| Junior                subordinated debentures             |   |                                                    | 115,470   |   |   | 2,285 |   |   | 7.92 | % |   | 96,913 |   |   | 1,741 |   |   | 7.18 | % |
| Total                interest-bearing liabilities         |   |                                                    | 1,845,720 |   |   | 22,656 |   |   | 4.96 | % |   | 1,496,988 |   |   | 15,496 |   |   | 4.19 | % |
| Demand                deposits                            |   |                                                    | 277,860   |   |   |   |   |   |   |   |   | 161,937 |   |   |   |   |   |   |   |
| Other                liabilities                          |   |                                                    | 24,370    |   |   |   |   |   |   |   |   | 14,595 |   |   |   |   |   |   |   |
| Total                average liabilities                  |   |                                                    | 2,147,950 |   |   |   |   |   |   |   |   | 1,673,520 |   |   |   |   |   |   |   |
| Total                average shareholders' equity         |   |                                                    | 144,528   |   |   |   |   |   |   |   |   | 101,835 |   |   |   |   |   |   |   |
| Total                average liabilities and              |   |                                                    |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| stockholders'                equity                       |   | $                                                       | 2,292,478 |   |   |   |   |   |   |   | $ | 1,775,355 |   |   |   |   |   |   |   |
|                                                      |   |                                                    |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                interest spread                (4)     |   |                                                    |      |   |   |   |   |   | 3.42 | % |   |   |   |   |   |   |   | 3.90 | % |
| Net                interest income                        |   |                                                    |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| and                net interest margin                (5) |   |                                                    |      |   | $ | 22,493 |   |   | 4.18 | % |   |   |   | $ | 18,751 |   |   | 4.44 | % |

| (1) | Interest                on loans includes loan fees, which totaled $2.4 million and $3.1                million                for the three months ended March, 31 2007 and 2006, respectively.                The                average loan balance includes loans held-for-sale and non-accrual                loans. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | The                yield for securities that are classified as available-for-sale is                based on                historical amortized cost balances. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | Includes                savings, NOW and money market deposit accounts. |
|-----|-------------------------------------------------------------------------|

| (4) | Net                interest spread represents the average yield earned on interest-earning                assets less the average rate paid on interest-bearing                liabilities. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (5) | Net                interest margin is computed by dividing net interest income by total                average earning assets. |
|-----|--------------------------------------------------------------------------------------------------------------------------------|

*Provision      for Loan Losses and Unfunded Commitments*

----

*Table          of Contents*

*Non-Interest      Income*

*Non-Interest      Expense*

|   | (i) | Salaries                and employee benefits expense is the largest component of non-interest                expense. As we have continued to grow, personnel have been placed                in                business development capacities for commercial and community banking,                as                well as administrative functions. With the expansion of LPOs into                full-service banking centers and the opening of new LPOs, we have                recruited seasoned banking professionals to contribute to the continued                growth as well as provide the infrastructure needed to support longer-term                growth. In addition, we added 49 employees from the Rancho Bank merger,                which increased our salary and benefit expenses. These changes have                increased our salaries and employee benefits expense by $1.1 million                or                16.8% to $7.6 million for the three months ended March 31, 2007 as                compared to the same period in 2006. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | Occupancy                expense amounted to $1.4 million for the three months ended March                31, 2007                in comparison to $1.1 million for the same period in 2006. The increase                in                occupancy expense is primarily due to our expansion, including the                addition of four new branches, as a result of the Rancho Bank merger,                as                well as our LPO in Santa Clara County. We have also opened LPOs in                Westlake Village and Monterey and expanded the San Rafael LPO into                a                full-service banking center during 2006, contributing to the higher                occupancy expense for the three months ended March 31, 2007 than                for the                same period in 2006. |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iii) | Furniture                and equipment expense, comprised mainly of depreciation and maintenance                expense, was $1.1 million for the three months ended March 31, 2007,                compared to $1.0 million for the same period in 2006. |
|--------|-------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

*Table          of Contents*

|   | (iv) | Other                      non-interest expense was $3.1 million and $2.7 million for                      the three                      months ended March 31, 2007 and 2006, respectively. The increase                      is due                      primarily to our implementation of our strategy to grow our                      business and                      merger-related period costs, offset by our $0.4 million decrease                      in the                      provision for unfunded commitments during the three months                      ended March 31,                      2007. |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **(Dollars                in Thousands)**             |   | **Three                Months Ended March 31,** |   |
|-------------------------------------------------------|--------|-------------------------------------------------|--------|
|                                                  |   | **2007**                                        |   | **2006** |   |
| Other                non-interest expense:            |   |                                            |   |   |   |
| Data                processing                        |   | $                                               | 345    |   | $ | 216 |   |
| Marketing                                             |   |                                            | 196    |   |   | 216 |   |
| Professional                services                  |   |                                            | 647    |   |   | 425 |   |
| Office                supplies, postage and telephone |   |                                            | 627    |   |   | 436 |   |
| Insurance                and assessments              |   |                                            | 352    |   |   | 166 |   |
| Administrative                                        |   |                                            | 60     |   |   | 149 |   |
| Business                development                   |   |                                            | 566    |   |   | 582 |   |
| Other                                                 |   |                                            | 282    |   |   | 540 |   |
| Total                other non-interest expense       |   | $                                               | 3,075  |   | $ | 2,730 |   |

*Income      Taxes*

**Financial      Condition**

*Assets*

*Investments*

----

*Table          of Contents*

| **(Dollars                in Thousands)**          |   |          |    | **Gross**      |   | **Gross**      |   |                          |   |
|----------------------------------------------------|--------|---------------|---------|----------------|--------|----------------|--------|-------------------------------|--------|
|                                               |   | **Amortized** |    | **Unrealized** |   | **Unrealized** |   |                          |   |
|                                               |   | **Cost**      |    | **Gains**      |   | **Losses**     |   | **Fair                Value** |   |
| Trading                securities:                 |   | $             | 4,832   |           | $      | 107            |   | $                             | -      |   | $ | 4,939 |   |
|                                               |   |          |    |           |   |           |   |                          |   |   |   |   |   |
| Available-for-sale                securities:      |   |          |    |           |   |           |   |                          |   |   |   |   |   |
| U.S.                agency securities              |   |          | 12,712  |           |   | -              |   |                          | (16    | ) |   | 12,696 |   |
| Mortgage-backed                securities          |   |          | 198,469 |           |   | -              |   |                          | (5,861 | ) |   | 192,608 |   |
| Mutual                funds                        |   |          | 2,237   |           |   | -              |   |                          | (42    | ) |   | 2,195 |   |
| Total                available-for-sale securities |   |          | 213,418 |           |   | -              |   |                          | (5,919 | ) |   | 207,499 |   |
| Total                Investment Securities         |   | $             | 218,250 |           | $      | 107            |   | $                             | (5,919 | ) | $ | 212,438 |   |

| **(Dollars                in Thousands)**          |   |          |    | **Gross**      |   | **Gross**      |   |                          |   |
|----------------------------------------------------|--------|---------------|---------|----------------|--------|----------------|--------|-------------------------------|--------|
|                                               |   | **Amortized** |    | **Unrealized** |   | **Unrealized** |   |                          |   |
|                                               |   | **Cost**      |    | **Gains**      |   | **Losses**     |   | **Fair                Value** |   |
| Trading                securities:                 |   | $             | 4,707   |           | $      | -              |   | $                             | -      |   | $ | 4,707 |   |
|                                               |   |          |    |           |   |           |   |                          |   |   |   |   |   |
| Available-for-sale                securities:      |   |          |    |           |   |           |   |                          |   |   |   |   |   |
| U.S.                agency securities              |   |          | 12,515  |           |   | -              |   |                          | (181   | ) |   | 12,334 |   |
| Mortgage-backed                securities          |   |          | 205,139 |           |   | -              |   |                          | (6,437 | ) |   | 198,702 |   |
| Mutual                funds                        |   |          | 2,213   |           |   | -              |   |                          | (49    | ) |   | 2,164 |   |
| Total                available-for-sale securities |   |          | 219,867 |           |   | -              |   |                          | (6,667 | ) |   | 213,200 |   |
| Total                Investment Securities         |   | $             | 224,574 |           | $      | -              |   | $                             | (6,667 | ) | $ | 217,907 |   |

| **(Dollars                in Thousands)** |   | **Less                than 12 months** |   | **12                months or Longer** |   | **Total**                     |   |
|-------------------------------------------|--------|----------------------------------------|--------|----------------------------------------|--------|-------------------------------|--------|
|                                      |   |                                   |   | **Gross**                              |   |                          |   | **Gross** |   |   |   | **Gross** |   |
|                                      |   |                                   |   | **Unrealized**                         |   |                          |   | **Unrealized** |   |   |   | **Unrealized** |   |
|                                      |   |                                   |   | **Holding**                            |   |                          |   | **Holding** |   |   |   | **Holding** |   |
|                                      |   | **Fair                Value**          |   | **Losses**                             |   | **Fair                Value** |   | **Losses** |   | **Fair                Value** |   | **Losses** |   |
|                                      |   |                                   |   |                                   |   |                          |   |   |   |   |   |   |   |
| U.S.                agency securities     |   | $                                      | -      |                                   | $      | -                             |   | $ | 12,696 |   | $ | (16 | ) | $ | 12,696 |   | $ | (16 | ) |
| Mortgage-backed                securities |   |                                   | -      |                                   |   | -                             |   |   | 192,608 |   |   | (5,861 | ) |   | 192,608 |   |   | (5,861 | ) |
| Mutual                funds               |   |                                   | 2,195  |                                   |   | (42                           | )      |   | - |   |   | - |   |   | 2,195 |   |   | (42 | ) |
| Total                                     |   | $                                      | 2,195  |                                   | $      | (42                           | )      | $ | 205,304 |   | $ | (5,877 | ) | $ | 207,499 |   | $ | (5,919 | ) |

----

*Table            of Contents*

| **(Dollars                in Thousands)** |   | **Less                than 12 months** |   | **12                months or Longer** |   | **Total**                     |   |
|-------------------------------------------|--------|----------------------------------------|--------|----------------------------------------|--------|-------------------------------|--------|
|                                      |   |                                   |   | **Gross**                              |   |                          |   | **Gross** |   |   |   | **Gross** |   |
|                                      |   |                                   |   | **Unrealized**                         |   |                          |   | **Unrealized** |   |   |   | **Unrealized** |   |
|                                      |   |                                   |   | **Holding**                            |   |                          |   | **Holding** |   |   |   | **Holding** |   |
|                                      |   | **Fair                Value**          |   | **Losses**                             |   | **Fair                Value** |   | **Losses** |   | **Fair                Value** |   | **Losses** |   |
|                                      |   |                                   |   |                                   |   |                          |   |   |   |   |   |   |   |
| U.S.                agency securities     |   | $                                      | -      |                                   | $      | -                             |   | $ | 12,334 |   | $ | (181 | ) | $ | 12,334 |   | $ | (181 | ) |
| Mortgage-backed                securities |   |                                   | -      |                                   |   | -                             |   |   | 198,702 |   |   | (6,437 | ) |   | 198,702 |   |   | (6,437 | ) |
| Mutual                funds               |   |                                   | 2,164  |                                   |   | (49                           | )      |   | - |   |   | - |   |   | 2,164 |   |   | (49 | ) |
| Total                                     |   | $                                      | 2,164  |                                   | $      | (49                           | )      | $ | 211,036 |   | $ | (6,618 | ) | $ | 213,200 |   | $ | (6,667 | ) |

| **(Dollars                in Thousands)** |   | **Securities                Available-for-Sale** |   |
|-------------------------------------------|--------|--------------------------------------------------|--------|
|                                      |   | **Maturing                5-10 years**           |   | **Maturing                after 10 years** |   |
|                                      |   | **Amortized**                                    |   |   |   | **Amortized** |   |   |   |
|                                      |   | **Cost**                                         |   | **Fair                Value** |   | **Cost** |   | **Fair                Value** |   |
| U.S.                agency securities     |   | $                                                | -      |   | $ | - |   | $ | 12,712 |   | $ | 12,696 |   |
| Mortgage-backed                securities |   |                                             | 11,211 |   |   | 11,130 |   |   | 187,258 |   |   | 181,478 |   |
| Total                                     |   | $                                                | 11,211 |   | $ | 11,130 |   | $ | 199,970 |   | $ | 194,174 |   |

*Loans      *

----

*Table            of Contents*

| **(Dollars                in Thousands)**             |   | **As                of**          |      |
|-------------------------------------------------------|--------|-----------------------------------|-----------|
|                                                  |   | **March                31, 2007** |      | **December                31, 2006** |   |
|                                                  |   |                              |      |   |   |
| Commercial                and industrial              |   | $                                 | 127,164   |   | $ | 122,257 |   |
| Real                estate construction and land:     |   |                              |      |   |   |   |   |
| Single-family                luxury                   |   |                              | 553,333   |   |   | 514,385 |   |
| Single-family                tract                    |   |                              | 160,270   |   |   | 152,060 |   |
| Commercial                                            |   |                              | 136,465   |   |   | 134,404 |   |
| Land                                                  |   |                              | 117,473   |   |   | 112,418 |   |
| Real                estate mortgage:                  |   |                              |      |   |   |   |   |
| Commercial                                            |   |                              | 565,199   |   |   | 531,159 |   |
| Multi-family                residential               |   |                              | 213,877   |   |   | 222,470 |   |
| Other                residential                      |   |                              | 43,954    |   |   | 49,353 |   |
| Consumer                loans                         |   |                              | 80,306    |   |   | 65,914 |   |
| All                other loans (including overdrafts) |   |                              | 70        |   |   | 98 |   |
|                                                  |   |                              | 1,998,111 |   |   | 1,904,518 |   |
| Less:                                                 |   |                              |      |   |   |   |   |
| Unearned                premium on loans              |   |                              | 2,050     |   |   | 1,696 |   |
| Deferred                loan fees                     |   |                              | (3,842    | ) |   | (3,970 | ) |
| Loans,                net of unearned income          |   | $                                 | 1,996,319 |   | $ | 1,902,244 |   |
| Loans                held-for-sale                    |   | $                                 | 441       |   | $ | - |   |

| **(Dollars                in Thousands)**   |   | **Three                months ended March 31,** |   |
|---------------------------------------------|--------|-------------------------------------------------|--------|
|                                        |   | **2007**                                        |   | **2006** |   |
| Servicing                rights capitalized |   | $                                               | 36     |   | $ | 55 |   |
| Servicing                rights amortized   |   | $                                               | 153    |   | $ | 168 |   |
| Valuation                allowances         |   | $                                               | -      |   | $ | - |   |

| **(Dollars                in Thousands)**            |   | **Three                months ended March 31,** |   |
|------------------------------------------------------|--------|-------------------------------------------------|--------|
|                                                 |   | **2007**                                        |   | **2006** |   |
| Servicing                rights, beginning of year   |   | $                                               | 933    |   | $ | 1,358 |   |
| Servicing                rights added in period, net |   |                                            | 36     |   |   | 55 |   |
| Servicing                rights amortized            |   |                                            | (153   | ) |   | (168 | ) |
| Servicing                rights, end of period       |   | $                                               | 816    |   | $ | 1,245 |   |

*Allowance      for Credit Losses*

----

| **(Dollars                in Thousands)**                        |   | **Three                months ended March 31,** |   |
|------------------------------------------------------------------|--------|-------------------------------------------------|--------|
|                                                             |   | **2007**                                        |   | **2006** |   |
| **Allowance                for Loan Losses**                     |   |                                            |   |   |   |
| Balance,                beginning of period                      |   | $                                               | 19,689 |   | $ | 13,762 |   |
| Recoveries                on loans previously charged off        |   |                                            | 15     |   |   | 47 |   |
| Loans                charged off                                 |   |                                            | (77    | ) |   | (9 | ) |
| Provision                charged to operating expense            |   |                                            | 1,200  |   |   | 1,200 |   |
| Balance,                end of period                            |   | $                                               | 20,827 |   | $ | 15,000 |   |
|                                                             |   |                                            |   |   |   |   |   |
| **Allowance                for Unfunded Commitments**            |   |                                            |   |   |   |   |   |
| Balance,                beginning of period                      |   | $                                               | 1,396  |   | $ | 1,346 |   |
| Net                (decrease)/increase charged to other expenses |   |                                            | (400   | ) |   | 10 |   |
| Balance,                end of period                            |   | $                                               | 996    |   | $ | 1,356 |   |
|                                                             |   |                                            |   |   |   |   |   |
| **Allowance                for Credit Losses**                   |   |                                            |   |   |   |   |   |
| Allowance                for loan losses                         |   | $                                               | 20,827 |   | $ | 15,000 |   |
| Allowance                for unfunded commitments                |   |                                            | 996    |   |   | 1,356 |   |
| Allowance                for credit losses                       |   | $                                               | 21,823 |   | $ | 16,356 |   |

*Nonperforming      Assets*

----

*Table            of Contents*

| **(Dollars                in Thousands)**                    |   | **As                of**          |   |
|--------------------------------------------------------------|--------|-----------------------------------|--------|
|                                                         |   | **March                31, 2007** |   | **December                31, 2006** |   |
| **Accruing                Loans More than 90 Days Past Due** |   |                              |   |   |   |
| Aggregate                loan amounts                        |   |                              |   |   |   |
| Commercial                and industrial                     |   | $                                 | -      |   | $ | 2,315 |   |
| Real                estate-mortgage                          |   |                              | -      |   |   | - |   |
| Consumer                loans                                |   |                              | -      |   |   | - |   |
| Total                loans past due more than 90 days        |   |                              |   |   |   |   |   |
| and                still accruing                            |   | $                                 | -      |   | $ | 2,315 |   |
| **Renegotiated                loans**                   |   |                              | -      |   |   | - |   |
|                                                         |   |                              |   |   |   |   |   |
| **Non-accrual                loans**                         |   |                              |   |   |   |   |   |
| Aggregate                loan amounts                        |   |                              |   |   |   |   |   |
| Commercial                and industrial                     |   |                              | 460    |   |   | - |   |
| Real                estate-mortgage                          |   |                              | 12,890 |   |   | 14,400 |   |
| Consumer                loans                                |   |                              | 97     |   |   | - |   |
| Total                non-accrual loans                       |   | $                                 | 13,447 |   |   | 14,400 |   |
|                                                         |   |                              |   |   |   |   |   |
| Total                non-performing loans                    |   | $                                 | 13,447 |   | $ | 16,715 |   |

| **(Dollars                in Thousands)**                             |   | **As                of**     |   |
|-----------------------------------------------------------------------|--------|------------------------------|--------|
|                                                                  |   | **March                31,** |   | **December                31,** |   |
|                                                                  |   | **2007**                     |   | **2006** |   |
|                                                                  |   |                         |   |   |   |
| Impaired                loans with a specific valuation allowance     |   | $                            | 12,890 |   | $ | - |   |
| Impaired                loans without a specific valuation allowance  |   |                         | 557    |   |   | 16,715 |   |
| Total                impaired loans                                   |   | $                            | 13,447 |   | $ | 16,715 |   |
|                                                                  |   |                         |   |   |   |   |   |
| Specific                valuation allowance related to impaired loans |   | $                            | 328    |   | $ | - |   |

| **(Dollars                in Thousands)**                        |   | **Three                months ended** |   | **Year                ended**        |   |
|------------------------------------------------------------------|--------|---------------------------------------|--------|--------------------------------------|--------|
|                                                             |   | **March                31, 2006**     |   | **December                31, 2006** |   |
| Average                recorded investment in impaired loans     |   | $                                     | 16,553 |                                 | $      | 9,285 |   |
| Cash                receipts applied to reduce principal balance |   | $                                     | 5,062  |                                 | $      | 1,093 |   |
| Interest                income recognized for cash payments      |   | $                                     | 8      |                                 | $      | 185 |   |

*Liabilities      and Stockholders’ Equity*

*Deposits*

----

*Table          of Contents*

| **(Dollars                in Thousands)**        |   | **As                of**          |      |
|--------------------------------------------------|--------|-----------------------------------|-----------|
|                                             |   | **March                31, 2007** |      | **December                31, 2006** |   |
| Money                market deposits             |   | $                                 | 618,954   |   | $ | 562,622 |   |
| Savings                and NOW deposits          |   |                              | 69,947    |   |   | 70,741 |   |
| Time                deposits under $100,000      |   |                              | 315,717   |   |   | 362,365 |   |
| Time                deposits of $100,000 or more |   |                              | 475,248   |   |   | 517,768 |   |
| Total                                            |   | $                                 | 1,479,866 |   | $ | 1,513,496 |   |

| **(Dollars                in Thousands)**       |   |   |    |
|-------------------------------------------------|--------|--------|---------|
|                                            |   |   |    |
| Three                months or less             |   | $      | 135,478 |   |
| Over                three through twelve months |   |   | 336,926 |   |
| Over                one through five years      |   |   | 2,844   |   |
|                                            |   | $      | 475,248 |   |

*Borrowings*

| **(Dollars                in Thousands)** |   | **Weighted** |   |         |   |        |   |
|-------------------------------------------|--------|--------------|--------|--------------|--------|-------------|--------|
|                                      |   | **Average**  |   | **Maturity** |   | **Putable** |   |
| **Maturity**                              |   | **Rate**     |   | **Amount**   |   | **Amount**  |   |
| 2007                                      |   |         | 5.27   | %            | $      | 89,000      |   | $ | - |   |
| 2008                                      |   |         | 4.83   | %            |   | 20,000      |   |   | 20,000 |   |
| 2009                                      |   |         | 4.87   | %            |   | 90,000      |   |   | 90,000 |   |
| 2010                                      |   |         | 4.64   | %            |   | 45,000      |   |   | 45,000 |   |
|                                      |   |         | 4.97   | %            | $      | 244,000     |   | $ | 155,000 |   |

----

*Table          of Contents*

| (Dollars                in Thousands)        |   |                         |                                |                         |   | As                of March 31, 2007 |   |
|----------------------------------------------|--------|------------------------------|-------------------------------------|------------------------------|--------|-------------------------------------|--------|
|                                         |   |                         |                                |                         |   | Common                              |   | Effective |   |   |   |
|                                         |   | Interest                Rate |                                | Maturity                Date |   | Stock                               |   | Interest                Rate |   | Balance |   |
| Vineyard                Statutory Trust I    |   |                         | 3-month                LIBOR + 3.60 | %                            |   | December                18, 2031    |   | $ | 372 |   |   | 8.95 | % | $ | 12,372 |   |
| Vineyard                Statutory Trust II   |   |                         | 3-month                LIBOR + 3.35 | %                            |   | December                26, 2032    |   |   | 155 |   |   | 8.71 | % |   | 5,155 |   |
| Vineyard                Statutory Trust III  |   |                         | 3-month                LIBOR + 3.05 | %                            |   | October                8, 2033      |   |   | 310 |   |   | 8.41 | % |   | 10,310 |   |
| Vineyard                Statutory Trust IV   |   |                         | 3-month                LIBOR + 2.85 | %                            |   | January                23, 2034     |   |   | 310 |   |   | 8.21 | % |   | 10,310 |   |
| Vineyard                Statutory Trust V    |   |                         | 3-month                LIBOR + 2.85 | %                            |   | April                23, 2034       |   |   | 310 |   |   | 8.21 | % |   | 10,310 |   |
| Vineyard                Statutory Trust VI   |   |                         | 3-month                LIBOR + 2.85 | %                            |   | July                23, 2034        |   |   | 372 |   |   | 8.21 | % |   | 12,372 |   |
| Vineyard                Statutory Trust VII  |   |                         | 3-month                LIBOR + 2.00 | %                            |   | December                16, 2034    |   |   | 310 |   |   | 7.36 | % |   | 10,310 |   |
| Vineyard                Statutory Trust VIII |   |                         | 3-month                LIBOR + 2.25 | %                            |   | May                23, 2035         |   |   | 310 |   |   | 7.61 | % |   | 10,310 |   |
| Vineyard                Statutory Trust IX   |   |                         | 3-month                LIBOR + 1.70 | %                            |   | November                23, 2035    |   |   | 464 |   |   | 7.06 | % |   | 15,464 |   |
| Vineyard                Statutory Trust XI   |   |                         | 3-month                LIBOR + 1.60 | %                            |   | June                23, 2036        |   |   | 557 |   |   | 6.95 | % |   | 18,557 |   |
|                                         |   |                         |                                |                         |   |                                |   | $ | 3,470 |   |   | 7.84 | % | $ | 115,470 |   |

*Consolidation      of Variable Interest Entities*

*Stockholders’      Equity *

|                                                           |   | **As                of**          |       |
|----------------------------------------------------------------|--------|-----------------------------------|------------|
|                                                           |   | **March                31, 2007** |       | **December                31, 2006** |   |
|                                                           |   |                              |       |   |   |
| Period-end                shares outstanding                   |   |                              | 10,397,244 |   |   | 10,418,436 |   |
| Unreleased                and unallocated ESOP shares     |   |                              | (239,740   | ) |   | (245,547 | ) |
| Used                in basic book value per common share       |   |                              | 10,157,504 |   |   | 10,172,889 |   |
| Warrants                (1)                                    |   |                              | 160,000    |   |   | 160,000 |   |
| Used                in book value per common share,            |   |                              |       |   |   |   |   |
| assuming                exercise of warrants                   |   |                              | 10,317,504 |   |   | 10,332,889 |   |
|                                                           |   |                              |       |   |   |   |   |
| Book                value per common share, basic              |   | $                                 | 13.55      |   | $ | 13.11 |   |
| Tangible                book value per common share, basic (2) |   | $                                 | 9.23       |   | $ | 8.77 |   |
| Book                value per common share, assuming           |   |                              |       |   |   |   |   |
| exercise                of warrants                            |   | $                                 | 13.73      |   | $ | 13.30 |   |

| (1)   | Warrants                were granted to institutional investors in June 2004 in conjunction                with a                private placement of common stock. These warrants have an exercise                price                of $25.00 per share and expire in June 2011. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

*Table          of Contents*

| (2)   | Tangible                book value per common share is calculated by dividing common shareholders’                equity, less goodwill and other intangible assets, by common shares                outstanding. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Liquidity**

**Capital      Resources**

----

*Table          of Contents*

| **(Dollars                in Thousands)**              |   |                                 |    |                                 |   | **Capital                Needed**    |   |
|--------------------------------------------------------|--------|--------------------------------------|---------|--------------------------------------|--------|--------------------------------------|--------|
|                                                   |   |                                 |    |                                 |   |                                 |   |   |   | **To                Be Well** |   |
|                                                   |   |                                 |    |                                 |   |                                 |   |   |   | **Capitalized                Under** |   |
|                                                   |   |                                 |    |                                 |   | **For                Capital**       |   | **Prompt                Corrective** |   |
|                                                   |   | **Actual                Regulatory** |    | **Adequacy                Purposes** |   | **Action                Provisions** |   |
|                                                   |   | **Capital**                          |    |                                 |   | **Capital**                          |   |   |   | **Capital** |   |   |   |
|                                                   |   | **Amount**                           |    | **Ratio**                            |   | **Amount**                           |   | **Ratio** |   | **Amount** |   | **Ratio** |   |
| **As                of March 31, 2007**                |   |                                 |    |                                 |   |                                 |   |   |   |   |   |   |   |
| Total                capital to risk-weighted assets:  |   |                                 |    |                                 |   |                                 |   |   |   |   |   |   |   |
| Bank                                                   |   | $                                    | 276,023 |                                 |   | 12.0                                 | %      | $ | 183,600 |   |   | 8.0 | % | $ | 229,400 |   |   | 10.0 | % |
| Consolidated                                           |   | $                                    | 237,057 |                                 |   | 10.3                                 | %      | $ | 183,800 |   |   | 8.0 | % |   | N/A |   |   | N/A |   |
|                                                   |   |                                 |    |                                 |   |                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Tier                1 capital to risk-weighted assets: |   |                                 |    |                                 |   |                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Bank                                                   |   | $                                    | 254,200 |                                 |   | 11.1                                 | %      | $ | 91,800 |   |   | 4.0 | % | $ | 137,700 |   |   | 6.0 | % |
| Consolidated                                           |   | $                                    | 143,489 |                                 |   | 6.2                                  | %      | $ | 92,000 |   |   | 4.0 | % |   | N/A |   |   | N/A |   |
|                                                   |   |                                 |    |                                 |   |                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Tier                1 capital to average assets:       |   |                                 |    |                                 |   |                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Bank                                                   |   | $                                    | 254,200 |                                 |   | 11.3                                 | %      | $ | 89,700 |   |   | 4.0 | % | $ | 112,100 |   |   | 5.0 | % |
| Consolidated                                           |   | $                                    | 143,489 |                                 |   | 6.4                                  | %      | $ | 90,000 |   |   | 4.0 | % |   | N/A |   |   | N/A |   |
|                                                   |   |                                 |    |                                 |   |                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **As                of December 31, 2006**             |   |                                 |    |                                 |   |                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                capital to risk-weighted assets:  |   |                                 |    |                                 |   |                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Bank                                                   |   | $                                    | 266,813 |                                 |   | 12.17                                | %      | $ | 175,400 |   |   | 8.0 | % | $ | 219,200 |   |   | 10.00 | % |
| Consolidated                                           |   | $                                    | 227,164 |                                 |   | 10.34                                | %      | $ | 175,800 |   |   | 8.0 | % |   | N/A |   |   | N/A |   |
|                                                   |   |                                 |    |                                 |   |                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Tier                1 capital to risk-weighted assets: |   |                                 |    |                                 |   |                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Bank                                                   |   | $                                    | 245,728 |                                 |   | 11.20                                | %      | $ | 87,800 |   |   | 4.0 | % | $ | 131,600 |   |   | 6.00 | % |
| Consolidated                                           |   | $                                    | 137,386 |                                 |   | 6.25                                 | %      | $ | 87,900 |   |   | 4.0 | % |   | N/A |   |   | N/A |   |
|                                                   |   |                                 |    |                                 |   |                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Tier                1 capital to average assets:       |   |                                 |    |                                 |   |                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Bank                                                   |   | $                                    | 245,728 |                                 |   | 11.41                                | %      | $ | 86,100 |   |   | 4.0 | % | $ | 107,700 |   |   | 5.00 | % |
| Consolidated                                           |   | $                                    | 137,386 |                                 |   | 6.36                                 | %      | $ | 86,400 |   |   | 4.0 | % |   | N/A |   |   | N/A |   |

**Asset/Liability      Management and Interest Rate Sensitivity**

----

*Table          of Contents*

| **(Dollars                in Thousands)** |   | **Economic                Value of Equity** |    | **Earnings                at Risk**  |   |
|-------------------------------------------|--------|---------------------------------------------|---------|--------------------------------------|--------|
| **Simulated**                             |   | **Cumulative**                              |    | **Cumulative**                       |   | **Cumulative** |   | **Cumulative** |   |
| **Rate                Changes**           |   | **Dollar                Change**            |    | **Percentage                Change** |   | **Dollar                Change** |   | **Percentage                Change** |   |
| 200                                       |   | $                                           | (20,444 | )                                    |   | -5.9 | % | $ | 3,112 |   |   | 3.4 | % |
| 100                                       |   | $                                           | (10,319 | )                                    |   | -3.0 | % | $ | 1,386 |   |   | 1.5 | % |
| -100                                      |   | $                                           | 4,679   |                                 |   | 1.4 | % | $ | (308 | ) |   | -0.3 | % |
| -200                                      |   | $                                           | 4,767   |                                 |   | 1.4 | % | $ | (764 | ) |   | -0.8 | % |

**Off-Balance      Sheet Arrangements**

**ITEM      3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET      RISK**

**ITEM      4. CONTROLS AND PROCEDURES**

----

*Table          of Contents*

**PART      II -- OTHER INFORMATION**

**ITEM      1. LEGAL PROCEEDINGS**

**ITEM      1A. RISK FACTORS**

**ITEM      2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF      PROCEEDS**

**Unregistered      Sale of Equity Securities**

**Purchases      of Equity Securities**

| **(Dollars                in Thousands)** |   |                         |   |                          |   |                                   |   | **Approximate**                       |   |
|-------------------------------------------|--------|------------------------------|--------|-------------------------------|--------|----------------------------------------|--------|---------------------------------------|--------|
|                                      |   |                         |   |                          |   | **Total                Number of**     |   | **Dollar                Value of**    |   |
|                                      |   | **Total**                    |   |                          |   | **Shares                Purchased**    |   | **Shares                that May**    |   |
|                                      |   | **Number                of** |   | **Average**                   |   | **as                Part of Publicly** |   | **Yet                be Purchased**   |   |
|                                      |   | **Shares**                   |   | **Price                Paid** |   | **Announced                Plans**     |   | **Under                the Plans or** |   |
| **Period**                                |   | **Purchased**                |   | **Per                Share**  |   | **or                Programs****(1)**  |   | **Program**                           |   |
|                                      |   |                         |   |                          |   |                                   |   |                                  |   |
| January                1-31, 2007         |   |                         | -      |                          | $      | -                                      |   |                                  | -      |   | $ | 10,903 |   |
| February                1-28, 2007        |   |                         | -      |                          |   | -                                      |   |                                  | -      |   | $ | 10,903 |   |
| March                1-31, 2007           |   |                         | 35,000 |                          |   | 24.51                                  |   |                                  | 35,000 |   | $ | 10,045 |   |
| Total                                     |   |                         | 35,000 |                          | $      | 24.51                                  |   |                                  | 35,000 |   |   |   |   |

|   | (1) | In                July 2002, we adopted a stock repurchase program in the initial amount                of                $2.0 million. In each of December 2003, January 2005 and May 2005,                we                announced                increases in our stock repurchase program of $5.0 million, and in                October                2005, we announced an additional increase of $20.0 million in our                stock                repurchase program for a total amount of $37.0 million. Under our                stock                repurchase program, we have been acquiring our common stock shares                in the                open market from time to time. Our stock repurchase program does                not have                an expiration date. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**ITEM      3. DEFAULTS UPON SENIOR SECURITIES**

----

*Table          of Contents*

**ITEM      4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY      HOLDERS**

**ITEM      5. OTHER INFORMATION**

**ITEM      6. EXHIBITS **

| EXHIBIT                NO. | DESCRIPTION |
|----------------------------|-------------|
| 2.1                        |        | Agreement                and Plan of Reorganization among Vineyard National Bancorp, Vineyard                Bank,                and Rancho Bank                (14)* |
| 3.1                        |        | Articles                of Incorporation of Vineyard National Bancorp, as amended (1) |
| 3.2                        |        | Bylaws                of Vineyard National Bancorp                (2) |
| 4.1                        |        | Specimen                Common Stock Certificate of Vineyard National Bancorp (3) |
| 4.2                        |        | Form                of Warrant to Purchase Shares of Common Stock (4) |
| 4.3                        |        | The                Registrant will furnish, upon request, to the Commission copies of                all                instruments defining the rights of holders of long-term debt instruments                of the Registrant and its consolidated subsidiary. |
| 4.4                        |        | Registration                Rights Agreement (5) |
| 4.5                        |        | Registration                Rights Agreement (9) |
| 10.1                       |        | Vineyard                National Bancorp Nonqualified Deferred Compensation Plan (1)* |
| 10.2                       |        | Vineyard                National Bancorp Directors’ Deferred Compensation Plan (1)* |
| 10.3                       |        | Vineyard                National Bancorp 1997 Incentive Stock Option Plan                (1)* |
| 10.4                       |        | Vineyard                National Bancorp 2002 Restricted Share Plan (1)* |
| 10.5                       |        | Form                of 2002 Restricted Share Award Agreement (7)* |
| 10.6                       |        | Vineyard                National Bancorp 2003 Restricted Share Plan (10)* |
| 10.7                       |        | Form                of 2003 Restricted Share Award Agreement (7)* |
| 10.8                       |        | Vineyard                National Bancorp 2004 Restricted Share Plan (8)* |
| 10.9                       |        | Form                of 2004 Restricted Share Award Agreement (7)* |
| 10.10                      |        | Vineyard                National Bancorp 2005 Restricted Share Plan (12)* |
| 10.11                      |        | Form                of 2005 Restricted Share Award Agreement (15)* |
| 10.12                      |        | Amended                and Restated Employment Agreement between Vineyard National Bancorp,                Vineyard Bank, National Association and Norman A. Morales (6)* |
| 10.13                      |        | Form                of Change of Control Agreement (13)* |
| 10.14                      |        | Loan                agreement between Vineyard National Bancorp and First Tennessee Bank                National Association (11)* |
| 10.15                      |        | Vineyard                National Bancorp 2006 Incentive Stock Plan (16)* |
| 10.16                      |        | Form                of 2006 Incentive Stock Plan Award Agreement (18)* |
| 11                         |        | Statement                regarding computation of per share earnings. See Note 7 to the                Consolidated Financial Statements included in Item 1                hereof |
| 31.1                       |        | Certification                of Chief Executive Officer under Section 302 of the Sarbanes-Oxley                Act of                2002 |
| 31.2                       |        | Certification                of Chief Financial Officer under Section 302 of the Sarbanes-Oxley                Act of                2002 |
| 32                         |        | Certification                of Chief Executive Officer and Chief Financial Officer pursuant to                Section                906 of the Sarbanes-Oxley Act 0f                2002 |

----

*Table          of Contents*

|   | (1)    | Incorporated                by reference from our Annual Report on Form 10-K for the year ended                December 31, 2002 filed with the SEC on March 28, 2003.                                                       |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                         |
|   | (2)    | Incorporated                by reference from our Registration Statement on Form S-8 (File No.                333-18217) filed with the SEC on December 19, 1996.                                                            |
|   |   |                                                                                                                                                                                                                         |
|   | (3)    | Incorporated                by reference from our Annual Report on Form 10-K for the year ended                December 31, 1988 filed with the SEC.                                                                         |
|   |   |                                                                                                                                                                                                                         |
|   | (4)    | Incorporated                by reference from our Proxy Statement for a special meeting held                on                December 18, 2002 filed with the SEC on November 25,                2002.                      |
|   |   |                                                                                                                                                                                                                         |
|   | (5)    | Incorporated                by reference from our Form 8-K filed with the SEC on June 21,                2004.                                                                                                               |
|   |   |                                                                                                                                                                                                                         |
|   | (6)    | Incorporated                by reference from our Form 8-K filed with the SEC on April 14,                2007.                                                                                                              |
|   |   |                                                                                                                                                                                                                         |
|   | (7)    | Incorporated                by reference from our Annual Report on Form 10-K for the year ended                December 31, 2004 filed with the SEC on March 10, 2005.                                                       |
|   |   |                                                                                                                                                                                                                         |
|   | (8)    | Incorporated                by reference from our Proxy Statement for an annual meeting held                on May                22, 2003 filed with the SEC on April 14, 2003.                                             |
|   |   |                                                                                                                                                                                                                         |
|   | (9)    | Incorporated                by reference from our Form 8-K filed with the SEC on December 10,                2004.                                                                                                           |
|   |   |                                                                                                                                                                                                                         |
|   | (10)   | Incorporated                by reference from our Quarterly Report on Form 10-Q for the three                and nine                months ended September 30, 2004 filed with the SEC on November 10,                2004. |
|   |   |                                                                                                                                                                                                                         |
|   | (11)   | Incorporated                by reference from our Quarterly Report on Form 10-Q for the three                months                ended March 31, 2006 filed with the SEC on May 10,                2006.                   |
|   |   |                                                                                                                                                                                                                         |
|   | (12)   | Incorporated                by reference from our Proxy Statement for an annual meeting held                on May                25, 2005 filed with the SEC on April 18, 2005.                                             |
|   |   |                                                                                                                                                                                                                         |
|   | (13)   | Incorporated                by reference from our Form 8-K filed with the SEC on April 17,                2006.                                                                                                              |
|   |   |                                                                                                                                                                                                                         |
|   | (14)   | Incorporated                by reference from our Form 8-K filed with the SEC on April 20,                2006.                                                                                                              |
|   |   |                                                                                                                                                                                                                         |
|   | (15)   | Incorporated                by reference from our Quarterly Report on Form 10-Q for the three                and nine                months ended September 30, 2005 filed with the SEC on November 4,                2005.  |
|   |   |                                                                                                                                                                                                                         |
|   | (16)   | Incorporated                by reference from our Proxy Statement for an annual meeting held                on May                24, 2006 filed with the SEC on April 17, 2006.                                             |
|   |   |                                                                                                                                                                                                                         |
|   | (17)   | Incorporated                by reference from our Form 8-K filed with the SEC on October 5,                2006.                                                                                                             |
|   |   |                                                                                                                                                                                                                         |
|   | (18)   | Incorporated                by reference from our Quarterly Report on Form 10-Q for the three                and nine                months ended September 30, 2006 filed with the SEC on November 9,                2006.  |
|   |   |                                                                                                                                                                                                                         |
|   | *      | Management                contract or compensatory plan or                arrangement.                                                                                                                                       |

----

*Table            of Contents*

**SIGNATURES**

|   |   |  **VINEYARD                NATIONAL BANCORP**  By:                */s/                Norman A. Morales*____________________Norman                MoralesPresident                and Chief Executive Officer  By:                */s/                Gordon Fong*_________________________Gordon                FongExecutive                Vice President and Chief Financial Officer(Principal                Financial Officer) |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                |

----

*Table          of Contents*