**UNITED      STATES**

**SECURITIES      AND EXCHANGE COMMISSION**

**FORM      10-Q**

**FOR      THE QUARTER**
**LY      PERIOD ENDED MARCH 31, 2006 **

**VINEYARD      NATIONAL BANCORP**

|                California(State                or other jurisdiction ofincorporation                or organization)                                    |   |                33-0309110(IRS                employeridentification                number) |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------------------------------------------------|
|                                                                                                                                                         |   |                                                                                            |
|                9590                Foothill BoulevardRancho                Cucamonga, California(Address                of principal executive offices) |   |                91730(Zip                Code)                                              |

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**VINEYARD      NATIONAL BANCORP AND SUBSIDIARY**

**FORM      10-Q INDEX**

**FOR      THE PERIODS ENDED MARCH 31, 2006 AND 2005,**

**AND      DECEMBER 31, 2005**

|                    | **PART                I - FINANCIAL INFORMATION**                                                                                                                                   |   |
|-------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                    |                                                                                                                                                                                |   |
| ITEM                1.  | Financial                Statements                                                                                                                                                 |   |
|                    |                                                                                                                                                                                |   |
|                    | Consolidated                Statements of Financial Condition at March 31,                2006 and December 31, 2005                                                                | 4      |
|                    |                                                                                                                                                                                |   |
|                    | Consolidated                Statements of Income for the Three Months Ended                March 31, 2006 and 2005                                                                  | 5      |
|                    |                                                                                                                                                                                |   |
|                    | Consolidated                Statements of Changes in Stockholders' Equity and                Comprehensive Income for the Three Months Ended March 31, 2006 and                2005 | 6      |
|                    |                                                                                                                                                                                |   |
|                    | Consolidated                Statements of Cash Flows for the Three Months                Ended March 31, 2006 and 2005                                                              | 7      |
|                    |                                                                                                                                                                                |   |
|                    | Notes                to Consolidated Financial                Statements                                                                                                            | 9      |
|                    |                                                                                                                                                                                |   |
| ITEM                2.  | Management's                Discussion and Analysis of Financial Condition                and Results of Operations                                                                 | 16     |
|                    |                                                                                                                                                                                |   |
| ITEM                3.  | Quantitative                and Qualitative Disclosures about Market                Risk                                                                                            | 32     |
|                    |                                                                                                                                                                                |   |
| ITEM                4.  | Controls                and Procedures                                                                                                                                              | 34     |
|                    |                                                                                                                                                                                |   |
|                    | **PART                II - OTHER INFORMATION**                                                                                                                                      |   |
|                    |                                                                                                                                                                                |   |
| ITEM                1.  | Legal                Proceedings                                                                                                                                                    | 34     |
|                    |                                                                                                                                                                                |   |
| ITEM                1A. | Risk                Factors                                                                                                                                                         | 34     |
|                    |                                                                                                                                                                                |   |
| ITEM                2.  | Unregistered                Sales of Equity Securities and Use of                Proceeds                                                                                           | 35     |
|                    |                                                                                                                                                                                |   |
| ITEM                3.  | Defaults                upon Senior Securities                                                                                                                                      | 35     |
|                    |                                                                                                                                                                                |   |
| ITEM                4.  | Submission                of Matters to a Vote of Security                Holders                                                                                                   | 35     |
|                    |                                                                                                                                                                                |   |
| ITEM                5.  | Other                Information                                                                                                                                                    | 35     |
|                    |                                                                                                                                                                                |   |
| ITEM                6.  | Exhibits                                                                                                                                                                            | 35     |
|                    |                                                                                                                                                                                |   |
| Signatures              |                                                                                                                                                                                | 38     |
|                    |                                                                                                                                                                                |   |
| Exhibits                |                                                                                                                                                                                |   |
|                    |                                                                                                                                                                                |   |

----

**FORWARD-LOOKING      STATEMENTS**

----

**PART      I**

**ITEM      I. FINANCIAL STATEMENTS**

**VINEYARD      NATIONAL BANCORP AND SUBSIDIARY**

**CONSOLIDATED      STATEMENTS OF FINANCIAL CONDITION**

**AT      MARCH 31, 2006 AND DECEMBER 31, 2005**

| (Dollars                in Thousands)                                     |   | March                31, 2006 |      | December                31, 2005 |   |
|---------------------------------------------------------------------------|--------|-------------------------------|-----------|----------------------------------|--------|
|                                                                      |   | (unaudited)                   |      | (audited)                        |   |
| **ASSETS**                                                                |   |                          |      |                             |   |
| Cash                and cash equivalents                                  |   | $                             | 42,799    |                             | $      | 28,630 |   |
| Investment                securities, available-for-sale                  |   |                          | 237,970   |                             |   | 248,694 |   |
| Loans,                net of unearned income                              |   |                          | 1,519,513 |                             |   | 1,373,099 |   |
| Less:                Allowance for probable loan losses                   |   |                          | (15,000   | )                                |   | (13,762 | ) |
| Net                Loans                                                  |   |                          | 1,504,513 |                             |   | 1,359,337 |   |
| Bank                premises and equipment, net                           |   |                          | 19,352    |                             |   | 19,192 |   |
| Accrued                interest                                           |   |                          | 8,814     |                             |   | 8,276 |   |
| Federal                Home Loan Bank ("FHLB") and other stock, at cost   |   |                          | 16,169    |                             |   | 19,155 |   |
| Deferred                income tax asset                                  |   |                          | 12,267    |                             |   | 11,646 |   |
| Other                assets                                               |   |                          | 16,581    |                             |   | 18,708 |   |
| **TOTAL                ASSETS**                                           |   | $                             | 1,858,465 |                             | $      | 1,713,638 |   |
|                                                                      |   |                          |      |                             |   |   |   |
| **LIABILITIES                AND STOCKHOLDERS' EQUITY**                   |   |                          |      |                             |   |   |   |
| Liabilities                                                               |   |                          |      |                             |   |   |   |
| Deposits                                                                  |   |                          |      |                             |   |   |   |
| Non-interest                bearing                                       |   | $                             | 173,975   |                             | $      | 154,664 |   |
| Interest-bearing                                                          |   |                          | 1,207,110 |                             |   | 1,122,348 |   |
| Total                Deposits                                             |   |                          | 1,381,085 |                             |   | 1,277,012 |   |
|                                                                      |   |                          |      |                             |   |   |   |
| FHLB                advances and other borrowings                         |   |                          | 259,000   |                             |   | 224,000 |   |
| Subordinated                debentures                                    |   |                          | 5,000     |                             |   | 5,000 |   |
| Junior                subordinated debentures                             |   |                          | 96,913    |                             |   | 96,913 |   |
| Accrued                interest and other liabilities                     |   |                          | 18,901    |                             |   | 10,728 |   |
| **TOTAL                LIABILITIES**                                      |   |                          | 1,760,899 |                             |   | 1,613,653 |   |
|                                                                      |   |                          |      |                             |   |   |   |
| **COMMITMENTS                AND CONTINGENCIES (Note #3)**                |   |                          |      |                             |   |   |   |
|                                                                      |   |                          |      |                             |   |   |   |
| Stockholders'                Equity                                       |   |                          |      |                             |   |   |   |
| Contributed                capital                                        |   |                          |      |                             |   |   |   |
| Perpetual                preferred stock - authorized 10,000,000 shares   |   |                          |      |                             |   |   |   |
| Series                C - no par value, issued and outstanding 10,000     |   |                          |      |                             |   |   |   |
| shares                in 2006 and 2005, respectively                      |   |                          | 9,665     |                             |   | 9,665 |   |
| Common                stock - no par value, authorized 50,000,000 shares; |   |                          |      |                             |   |   |   |
| issued                and outstanding 9,432,239 and 9,427,690 shares      |   |                          |      |                             |   |   |   |
| in                2006 and 2005, respectively                             |   |                          | 59,886    |                             |   | 60,972 |   |
| Additional                paid-in capital                                 |   |                          | 752       |                             |   | 4,443 |   |
| Unallocated                ESOP shares                                    |   |                          | (6,169    | )                                |   | (6,304 | ) |
| Retained                earnings                                          |   |                          | 39,651    |                             |   | 36,454 |   |
| Accumulated                other comprehensive loss, net of taxes         |   |                          | (6,219    | )                                |   | (5,245 | ) |
| **TOTAL                STOCKHOLDERS' EQUITY**                             |   |                          | 97,566    |                             |   | 99,985 |   |
| **TOTAL                LIABILITIES AND STOCKHOLDERS' EQUITY**             |   | $                             | 1,858,465 |                             | $      | 1,713,638 |   |
|                                                                      |   |                          |      |                             |   |   |   |
| See                accompanying notes to financial statements.            |   |                          |      |                             |   |   |   |

----

**VINEYARD      NATIONAL BANCORP AND SUBSIDIARY**

**CONSOLIDATED      STATEMENTS OF INCOME**

**FOR      THE THREE MONTHS ENDED MARCH 31, 2006 AND 2005**

| (Dollars                in Thousands, except per share amounts)               |   | Three                Months Ended March 31, |   |
|-------------------------------------------------------------------------------|--------|---------------------------------------------|--------|
|                                                                          |   | 2006                                        |   | 2005 |   |
| **Interest                Income**                                            |   |                                        |   |   |   |
| Interest                and fees on loans                                     |   | $                                           | 31,175 |   | $ | 19,716 |   |
| Interest                on investment securities                              |   |                                        | 3,072  |   |   | 2,978 |   |
| **TOTAL                INTEREST INCOME**                                      |   |                                        | 34,247 |   |   | 22,694 |   |
|                                                                          |   |                                        |   |   |   |   |   |
| **Interest                Expense**                                           |   |                                        |   |   |   |   |   |
| Interest                on savings deposits (1)                          |   |                                        | 3,789  |   |   | 2,703 |   |
| Interest                on time deposits in denominations of $100,000 or more |   |                                        | 3,780  |   |   | 1,474 |   |
| Interest                on other time deposits                                |   |                                        | 2,947  |   |   | 1,220 |   |
| Interest                on FHLB advances and other borrowings                 |   |                                        | 4,980  |   |   | 2,295 |   |
| **TOTAL                INTEREST EXPENSE**                                     |   |                                        | 15,496 |   |   | 7,692 |   |
| **NET                INTEREST INCOME**                                        |   |                                        | 18,751 |   |   | 15,002 |   |
|                                                                          |   |                                        |   |   |   |   |   |
| **Provision                for Probable Loan and Lease Losses**               |   |                                        | (1,200 | ) |   | - |   |
|                                                                          |   |                                        |   |   |   |   |   |
| **NET                INTEREST INCOME AFTER**                                  |   |                                        |   |   |   |   |   |
| **PROVISION                FOR PROBABLE**                                     |   |                                        |   |   |   |   |   |
| **LOAN                AND LEASE LOSSES**                                      |   |                                        | 17,551 |   |   | 15,002 |   |
|                                                                          |   |                                        |   |   |   |   |   |
| **Other                Income**                                               |   |                                        |   |   |   |   |   |
| Fees                and service charges                                       |   |                                        | 277    |   |   | 381 |   |
| Gain                on sale of SBA loans and broker fee income                |   |                                        | 544    |   |   | 657 |   |
| Other                income                                                   |   |                                        | 110    |   |   | 75 |   |
| **TOTAL                OTHER INCOME**                                         |   |                                        | 931    |   |   | 1,113 |   |
|                                                                          |   |                                        |   |   |   |   |   |
| **Other                Expense**                                              |   |                                        |   |   |   |   |   |
| Salaries                and employee benefits                                 |   |                                        | 6,501  |   |   | 4,924 |   |
| Occupancy                expense of premises                                  |   |                                        | 1,125  |   |   | 801 |   |
| Furniture                and equipment                                        |   |                                        | 993    |   |   | 738 |   |
| Other                                                                         |   |                                        | 2,730  |   |   | 2,058 |   |
| **TOTAL                OTHER EXPENSES**                                       |   |                                        | 11,349 |   |   | 8,521 |   |
| **INCOME                BEFORE INCOME TAXES**                                 |   |                                        | 7,133  |   |   | 7,594 |   |
| **INCOME                TAX PROVISION**                                       |   |                                        | 2,972  |   |   | 3,177 |   |
| **NET                INCOME**                                                 |   | $                                           | 4,161  |   | $ | 4,417 |   |
|                                                                          |   |                                        |   |   |   |   |   |
| **EARNINGS                PER SHARE**                                         |   |                                        |   |   |   |   |   |
| **BASIC**                                                                     |   | $                                           | 0.43   |   | $ | 0.47 |   |
| **DILUTED**                                                                   |   | $                                           | 0.42   |   | $ | 0.45 |   |
|                                                                          |   |                                        |   |   |   |   |   |
| **CASH                DIVIDENDS DECLARED PER SHARE**                          |   | $                                           | 0.08   |   | $ | 0.05 |   |
| **CASH                DIVIDENDS PAID PER SHARE**                              |   | $                                           | 0.08   |   | $ | 0.05 |   |
|                                                                          |   |                                        |   |   |   |  |   |
| See                accompanying notes to financial statements.                |   |                                        |   |   |   |   |   |

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

----

**VINEYARD      NATIONAL BANCORP AND SUBSIDIARY**

**CONSOLIDATED      STATEMENTS OF CHANGES IN **

**STOCKHOLDERS'      EQUITY AND COMPREHENSIVE INCOME**

**FOR      THE THREE MONTHS ENDED MARCH 31, 2006 AND 2005**

| (Dollars                in Thousands)        |   |      |   |                        |   |       |   |    |   |          |   |     |   |        |   | Accumulated   |   |   |   |
|----------------------------------------------|--------|-----------|--------|-----------------------------|--------|------------|--------|---------|--------|---------------|--------|----------|--------|-------------|--------|---------------|--------|--------|--------|
|                                         |   | Perpetual |   | Common                Stock |   | Additional |   |    |   |          |   |     |   | Other       |   |          |   |
|                                         |   | Preferred |   | Number                of    |   |       |   | Paid-in |   | Comprehensive |   | Retained |   | Unallocated |   | Comprehensive |   |   |   |
|                                         |   | Stock     |   | Shares                      |   | Amount     |   | Capital |   | Income        |   | Earnings |   | ESOP        |   | Loss          |   | Total  |   |
| **Balance                December 31, 2004** |   | $         | -      |                        |   | 9,581,941  |   | $       | 70,536 |          | $      | 3,772    |   |        |   |          | $      | 20,513 |   | $ | (6,856 | ) | $ | (2,738 | ) | $ | 85,227 |   |
|                                         |   |      |   |                        |   |       |   |    |   |          |   |     |   |        |   |          |   |   |   |   |   |   |   |   |   |   |   |   |
| Stock                options exercised       |   |      |   |                        |   | 127,475    |   |    | 751    |          |   |     |   |        |   |          |   |   |   |   |   |   |   |   |   |   | 751 |   |
| Warrants                exercised            |   |      |   |                        |   | 4,410      |   |    | 30     |          |   |     |   |        |   |          |   |   |   |   |   |   |   |   |   |   | 30 |   |
| Purchase                of treasury stock    |   |      |   |                        |   | (202,170   | )      |    | (6,003 | )             |   |     |   |        |   |          |   |   |   |   |   |   |   |   |   |   | (6,003 | ) |
| Release                of ESOP shares        |   |      |   |                        |   |       |   |    |   |          |   | 49       |   |        |   |          |   |   |   |   | 141 |   |   |   |   |   | 190 |   |
| Cash                dividends declared on    |   |      |   |                        |   |       |   |    |   |          |   |     |   |        |   |          |   |   |   |   |   |   |   |   |   |   |   |   |
| common                stock                  |   |      |   |                        |   |       |   |    |   |          |   |     |   |        |   |          |   | (476   | )      |   |   |   |   |   |   |   | (476 | ) |
| Comprehensive                income          |   |      |   |                        |   |       |   |    |   |          |   |     |   |        |   |          |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                Income                    |   |      |   |                        |   |       |   |    |   |          |   |     |   | $           | 4,417  |          |   | 4,417  |   |   |   |   |   |   |   |   | 4,417 |   |
| Unrealized                security holding   |   |      |   |                        |   |       |   |    |   |          |   |     |   |        |   |          |   |   |   |   |   |   |   |   |   |   |   |   |
| losses                (net of $1,784         |   |      |   |                        |   |       |   |    |   |          |   |     |   |        |   |          |   |   |   |   |   |   |   |   |   |   |   |   |
| tax                benefit)                  |   |      |   |                        |   |       |   |    |   |          |   |     |   |        | (2,464 | )             |   |   |   |   |   |   |   | (2,464 | ) |   | (2,464 | ) |
| Total                comprehensive income    |   |      |   |                        |   |       |   |    |   |          |   |     |   | $           | 1,953  |          |   |   |   |   |   |   |   |   |   |   |   |   |
| **Balance,                March 31, 2005**   |   | $         | -      |                        |   | 9,511,656  |   | $       | 65,314 |          | $      | 3,821    |   |        |   |          | $      | 24,454 |   | $ | (6,715 | ) | $ | (5,202 | ) | $ | 81,672 |   |
|                                         |   |      |   |                        |   |       |   |    |   |          |   |     |   |        |   |          |   |   |   |   |   |   |   |   |   |   |   |   |

|                                                         |   |      |   |                          |   |       |   |    |   |          |   |     |   |        |   | Accumulated   |   |   |   |
|--------------------------------------------------------------|--------|-----------|--------|-------------------------------|--------|------------|--------|---------|--------|---------------|--------|----------|--------|-------------|--------|---------------|--------|--------|--------|
|                                                         |   | Perpetual |   | Common                  Stock |   | Additional |   |    |   |          |   |     |   | Other       |   |          |   |
|                                                         |   | Preferred |   | Number                  of    |   |       |   | Paid-in |   | Comprehensive |   | Retained |   | Unallocated |   | Comprehensive |   |   |   |
|                                                         |   | Stock     |   | Shares                        |   | Amount     |   | Capital |   | Income        |   | Earnings |   | ESOP        |   | Loss          |   | Total  |   |
| **Balance                  December 31, 2005**               |   | $         | 9,665  |                          |   | 9,427,690  |   | $       | 60,972 |          | $      | 4,443    |   |        |   |          | $      | 36,454 |   | $ | (6,304 | ) | $ | (5,245 | ) | $ | 99,985 |   |
|                                                         |   |      |   |                          |   |       |   |    |   |          |   |     |   |        |   |          |   |   |   |   |   |   |   |   |   |   |   |   |
| Stock                  options exercised                     |   |      |   |                          |   | 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,                  March 31, 2006**                 |   | $         | 9,665  |                          |   | 9,432,239  |   | $       | 59,886 |          | $      | 752      |   |        |   |          | $      | 39,651 |   | $ | (6,169 | ) | $ | (6,219 | ) | $ | 97,566 |   |
|                                                         |   |      |   |                          |   |       |   |    |   |          |   |     |   |        |   |          |   |   |   |   |   |   |   |   |   |   |   |   |

| See                accompanying notes to financial                statements. |
|-------------------------------------------------------------------------------|

----

**VINEYARD      NATIONAL BANCORP AND SUBSIDIARY**

**CONSOLIDATED      STATEMENTS OF CASH FLOWS**

**FOR      THE THREE MONTHS ENDED MARCH 31, 2006 AND 2005**

| (Dollars                    in Thousands)                                       |   | Three                    Months Ended March 31, |     |
|---------------------------------------------------------------------------------|--------|-------------------------------------------------|----------|
|                                                                            |   | 2006                                            |     | 2005 |   |
| **Cash                    Flows From Operating Activities**                     |   |                                            |     |   |   |
| Net                    Income                                                   |   | $                                               | 4,161    |   | $ | 4,417 |   |
| Adjustments                    to Reconcile Net Income                          |   |                                            |     |   |   |   |   |
| to                    Net Cash Provided by Operating Activities                 |   |                                            |     |   |   |   |   |
|                                                                            |   |                                            |     |   |   |   |   |
| Depreciation                                                                    |   |                                            | 878      |   |   | 650 |   |
| Investment                    securities accretion/amortization                 |   |                                            | 145      |   |   | 269 |   |
| Provision                    for probable loan losses                           |   |                                            | 1,200    |   |   | - |   |
| Provision                    for unfunded commitments                           |   |                                            | 10       |   |   | - |   |
| FHLB                    stock dividends                                         |   |                                            | (220     | ) |   | - |   |
| Amortization                    of intangible assets                            |   |                                            | 3        |   |   | 3 |   |
| Amortization                    of SBA servicing asset                          |   |                                            | 137      |   |   | 179 |   |
| Amortization                    of SBA interest only strip                      |   |                                            | 31       |   |   | 26 |   |
| Share-based                    compensation                                     |   |                                            | 13       |   |   | - |   |
| Amortization                    of restricted stock awards                      |   |                                            | 313      |   |   | - |   |
| Reinvestment                    of mutual fund interest                         |   |                                            | (22      | ) |   | (18 | ) |
| Release                    of ESOP shares                                       |   |                                            | 171      |   |   | 190 |   |
| Decrease                    in deferred tax assets                              |   |                                            | 84       |   |   | - |   |
| Increase                    in taxes payable                                    |   |                                            | 2,059    |   |   | 3,177 |   |
| Increase                    in other assets                                     |   |                                            | (1,181   | ) |   | (1,556 | ) |
| Decrease                    in cash surrender value of life insurance policies  |   |                                            | 3        |   |   | - |   |
| Gain                    on sale of property, plant, and equipment               |   |                                            | (4       | ) |   | - |   |
| Gain                    on sale of loans                                        |   |                                            | (207     | ) |   | (290 | ) |
| Increase/(decrease)                    in unearned loan fees                    |   |                                            | 55       |   |   | (66 | ) |
| Increase                    in interest receivable                              |   |                                            | (538     | ) |   | (710 | ) |
| Decrease                    in interest payable                                 |   |                                            | (234     | ) |   | (163 | ) |
| Increase/(decrease)                    in accrued expense and other liabilities |   |                                            | 6,331    |   |   | (987 | ) |
| Total                    Adjustment                                             |   |                                            | 9,027    |   |   | 704 |   |
| **Net                    Cash Provided By Operating Activities**                |   |                                            | 13,188   |   |   | 5,121 |   |
|                                                                            |   |                                            |     |   |   |   |   |
| **Cash                    Flows From Investing Activities**                     |   |                                            |     |   |   |   |   |
| Proceeds                    from principal reductions and maturities of         |   |                                            |     |   |   |   |   |
| mortgage-backed                    securities available-for-sale                |   |                                            | 8,922    |   |   | 9,452 |   |
| Purchase                    of mortgage-backed securities available-for-sale    |   |                                            | -        |   |   | (66,908 | ) |
| Purchase                    of FHLB & other stock                           |   |                                            | (2,914   | ) |   | (517 | ) |
| Redemption                    of FHLB stock                                     |   |                                            | 6,120    |   |   | 1,234 |   |
| Recoveries                    on loans previously written off                   |   |                                            | 47       |   |   | 24 |   |
| Proceeds                    from sale of loans                                  |   |                                            | 3,696    |   |   | 44,062 |   |
| Origination                    and purchase of loans, net of principal payments |   |                                            | (149,967 | ) |   | (94,391 | ) |
| Proceeds                    from sale of property, plant, and equipment         |   |                                            | 4        |   |   | - |   |
| Capital                    expenditures                                         |   |                                            | (1,038   | ) |   | (1,792 | ) |
| **Net                    Cash Used In Investing Activities**                    |   |                                            | (135,130 | ) |   | (108,836 | ) |

----

**VINEYARD      NATIONAL BANCORP AND SUBSIDIARY**

**CONSOLIDATED      STATEMENTS OF CASH FLOWS**

**FOR      THE THREE MONTHS ENDED MARCH 31, 2006 AND 2005**

**(continued)**

| (Dollars                    in Thousands)                                              |   |   |    |   |   |
|----------------------------------------------------------------------------------------|--------|--------|---------|--------|--------|
|                                                                                   |   | 2006   |    | 2005   |   |
| **Cash                    Flows From Financing Activities**                            |   |   |    |   |   |
| Net                    increase in demand deposits, NOW accounts,                      |   |   |    |   |   |
| savings                    accounts, and money market deposits                         |   | $      | 61,344  |   | $      | 11,138 |   |
| Net                    increase in certificates of deposits                            |   |   | 42,729  |   |   | 70,535 |   |
| Net                    change in FHLB advances                                         |   |   | 35,000  |   |   | 33,700 |   |
| Purchase                    of treasury stock                                          |   |   | (1,269  | )      |   | (6,003 | ) |
| Purchase                    of restricted stock                                        |   |   | (919    | )      |   | - |   |
| Dividends                    paid on preferred stock                                   |   |   | (201    | )      |   | - |   |
| Dividends                    paid on common stock                                      |   |   | (756    | )      |   | (476 | ) |
| Proceeds                    from exercise of warrants                                  |   |   | -       |   |   | 30 |   |
| Proceeds                    from exercise of stock options                             |   |   | 183     |   |   | 751 |   |
| **Net                    Cash Provided By Financing Activities**                       |   |   | 136,111 |   |   | 109,675 |   |
|                                                                                   |   |   |    |   |   |   |   |
| **Net                    Increase in Cash and Cash Equivalents**                       |   |   | 14,169  |   |   | 5,960 |   |
|                                                                                   |   |   |    |   |   |   |   |
| **Cash                    and Cash Equivalents**,                    Beginning of year |   |   | 28,630  |   |   | 22,551 |   |
|                                                                                   |   |   |    |   |   |   |   |
| **Cash                    and Cash Equivalents**,                    End of period     |   | $      | 42,799  |   | $      | 28,511 |   |
|                                                                                   |   |   |    |   |   |   |   |
| **Supplemental                    Information**                                        |   |   |    |   |   |   |   |
| Net                    change in unrealized loss on investment securities              |   | $      | 1,679   |   | $      | 4,248 |   |
| Interest                    paid                                                       |   | $      | 15,730  |   | $      | 7,855 |   |
| Income                    tax paid                                                     |   | $      | -       |   | $      | - |   |
|                                                                                   |   |   |    |   |   |   |   |
|                                                                                   |   |   |    |   |   |   |   |
| See                    accompanying notes to financial statements.                     |   |   |    |   |   |   |   |

----

**VINEYARD        NATIONAL BANCORP AND SUBSIDIARY**

**NOTES        TO CONSOLIDATED FINANCIAL STATEMENTS**

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

----

*Share-Based        Payment*
*Accounting        for Stock-Based Compensation*
*Employers’        Accounting for Employee Stock Ownership Plans”*

*"Accounting        Changes and Error Corrections"*

*Accounting        for Certain Hybrid Instruments*

*Accounting        for Servicing of Financial Assets — An Amendment of FASB Statement        No. 140*

**Note        #2 **
**-        **
**Share-Based        Compensation**

----

| (Dollars                  in Thousands, except per share amounts)       |   | Three                  months ended |      |
|-------------------------------------------------------------------------|--------|-------------------------------------|-----------|
|                                                                    |   | March                  31, 2005     |      |
| Net                  income:                                            |   |                                |      |
| Net                  income, as reported                                |   | $                                   | 4,417     |   |
| Share-based                  compensation that would have been reported |   |                                |      |   |
| using                  the fair value method of SFAS No.123             |   |                                | (53       | ) |
| Net                  income, pro-forma                                  |   | $                                   | 4,364     |   |
|                                                                    |   |                                |      |   |
| Weighted                  average shares outstanding - basic            |   |                                | 9,300,403 |   |
| Weighted                  average shares outstanding - diluted          |   |                                | 9,745,300 |   |
|                                                                    |   |                                |      |   |
| Basic                  EPS                                              |   |                                |      |   |
| As                  reported                                            |   | $                                   | 0.47      |   |
| Pro                  forma                                              |   | $                                   | 0.47      |   |
|                                                                    |   |                                |      |   |
| Diluted                  EPS                                            |   |                                |      |   |
| As                  reported                                            |   | $                                   | 0.45      |   |
| Pro                  forma                                              |   | $                                   | 0.45      |   |

----

| (Dollars                  in Thousands, except per share amounts) |   |   |    | Weighted- |   |        |   |
|-------------------------------------------------------------------|--------|--------|---------|-----------|--------|-------------|--------|
|                                                              |   |   |    | Weighted- |   | Average     |   |   |   |
|                                                              |   |   |    | Average   |   | Remaining   |   | Aggregate |   |
|                                                              |   |   |    | Exercise  |   | Contractual |   | Intrinsic |   |
|                                                              |   | Shares |    | Price     |   | Term        |   | Value |   |
| Outstanding                  at December 31, 2005                 |   |   | 427,155 |      | $      | 3.84        |   |   | 6.15                  years |   | $ | 745 |   |
| Granted                                                           |   |   |    |      |   |        |   |   |   |   |   |   |   |
| Exercised                                                         |   |   | (47,549 | )         |   | 3.84        |   |   |   |   |   | (76 | ) |
| Forfeited                  or expired                             |   |   |    |      |   |        |   |   |   |   |   |   |   |
| Outstanding                  at March 31, 2006                    |   |   | 379,606 |      | $      | 3.84        |   |   | 5.90                  years |   | $ | 669 |   |
| Exercisable                  at March 31, 2006                    |   |   | 379,606 |      | $      | 3.84        |   |   | 5.90                  years |   | $ | 669 |   |

| (Dollars                  in Thousands, except per share amounts) |   |   |     | Weighted- |   |        |   |
|-------------------------------------------------------------------|--------|--------|----------|-----------|--------|-------------|--------|
|                                                              |   |   |     | Weighted- |   | Average     |   |   |   |
|                                                              |   |   |     | Average   |   | Remaining   |   | Aggregate |   |
|                                                              |   |   |     | Exercise  |   | Contractual |   | Intrinsic |   |
|                                                              |   | Shares |     | Price     |   | Term        |   | Value |   |
| Outstanding                  at December 31, 2004                 |   |   | 572,125  |      | $      | 4.25        |   |   | 7.22                  years |   | $ | 1,111 |   |
| Granted                                                           |   |   |     |      |   |        |   |   |   |   |   |   |   |
| Exercised                                                         |   |   | (127,475 | )         |   | 5.89        |   |   |   |   |   | (338 | ) |
| Forfeited                  or expired                             |   |   |     |      |   |        |   |   |   |   |   |   |   |
| Outstanding                  at March 31, 2005                    |   |   | 444,650  |      | $      | 3.81        |   |   | 7.12                  years |   | $ | 773 |   |
| Exercisable                  at March 31, 2005                    |   |   | 404,101  |      | $      | 3.56        |   |   | 7.09                  years |   | $ | 662 |   |

|                                            |   |       |   | Weighted-                  Average |   |
|-------------------------------------------------|--------|------------|--------|------------------------------------|--------|
|                                            |   | Non-vested |   | Grant-Date                         |   |
|                                            |   | Shares     |   | 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    |   |       | -      |                               | $      | - |   |

|                                            |   |       |    | Weighted-                   |   |
|-------------------------------------------------|--------|------------|---------|-----------------------------|--------|
|                                            |   |       |    | Average                     |   |
|                                            |   | Non-vested |    | Grant-Date                  |   |
|                                            |   | Shares     |    | Fair                  Value |   |
| Nonvested                  at December 31, 2004 |   |       | 93,749  |                        | $      | 2.15 |   |
| Granted                                         |   |       |    |                        |   |   |   |
| Vested                                          |   |       | (53,200 | )                           |   | 1.72 |   |
| Forfeited                  or expired           |   |       |    |                        |   |   |   |
| Nonvested                  at March 31, 2005    |   |       | 40,549  |                        | $      | 2.72 |   |

**Note        #3 - Commitments and Contingencies**

----

**Note        #4 - Dividends **

**Note        #5 - Employee Stock Ownership Plan**

----

**Note        #6 - Earnings per Share **

| (Dollars                  in Thousands)                   |   | Three                  Months Ended March 31, |   |
|-----------------------------------------------------------|--------|-----------------------------------------------|--------|
|                                                      |   | 2006                                          |   | 2005 |   |
|                                                      |   | Income                                        |   | Shares |   | Income |   | Shares |   |
| Net                  income as reported                   |   | $                                             | 4,161  |   |   |   |   | $ | 4,417 |   |   |   |   |
| Less:                  preferred stock dividends declared |   |                                          | (208   | ) |   |   |   |   | - |   |   |   |   |
| Shares                  outstanding at end of period      |   |                                          |        |   |   | 9,432,239 |   |   |   |   |   | 9,511,656 |   |
| Unreleased                  and unallocated ESOP shares   |   |                                          |   |   |   | (262,771 | ) |   |   |   |   | (286,027 | ) |
| Impact                  of weighting shares               |   |                                          |   |   |   |   |   |   |   |   |   |   |   |
| issued                  during the period                 |   |                                          |   |   |   | 6,167 |   |   |   |   |   | 74,774 |   |
| Used                  in basic EPS                        |   | $                                             | 3,953  |   |   | 9,175,635 |   | $ | 4,417 |   |   | 9,300,403 |   |
| Dilutive                  effect of outstanding           |   |                                          |   |   |   |   |   |   |   |   |   |   |   |
| stock                  options and warrants               |   |                                          |   |   |   | 341,311 |   |   |   |   |   | 444,897 |   |
| Used                  in diluted EPS                      |   | $                                             | 3,953  |   |   | 9,516,946 |   | $ | 4,417 |   |   | 9,745,300 |   |

**Note        #7 - Subsequent Events**

----

----

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

**Business        and Organization**

*Vineyard        National Bancorp*

*Vineyard        Bank*

----

*The        Bank’s Strategic Plan*

| (i)   | the                  Inland Empire region of Southern California, which primarily includes                  San                  Bernardino and Riverside Counties; |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (ii)   | the                  coastal communities of Los Angeles, California; |
|------------------|----------------------------------------------------------------------|

| (iii)   | the                  San Gabriel Valley region of Los Angeles; |
|-------------------|----------------------------------------------------------------|

| (iv)   | the                  coastal communities of south Orange County and San Diego; and |
|------------------|------------------------------------------------------------------------------------|

| (v)   | Marin                  County, California. |
|-----------------|--------------------------------------------|

*Specialty        Product Offering. *

| ·   | Coastal                  Construction Lending* *                  The Bank originates high-end single-family construction loans within                  Los                  Angeles’ “south bay” coastal communities (primarily Manhattan Beach,                  Hermosa Beach and Redondo Beach, as well as the Palos Verdes Peninsula                  area), Los Angeles’ upper end “west side” (including Beverly Hills,                  Brentwood and Malibu) and Orange County coastal regions where it                  believes                  it has a competitive advantage based on established builder and                  customer                  relationships and expertise in the construction market.  The demand                  for new luxury construction in many of these communities continues                  to be                  strong. These types of construction loans typically range from                  $1.0                  million to $5.0 million. During the three months ended March 31,                  2006,                  gross commitments generated for this loan product amounted to $138.4                  million. The Bank’s single-family residential coastal construction loans                  outstanding amounted to $456.8 million and $392.2 million at March                  31, 2006 and December 31, 2005, respectively, net of participations                  sold                  of $100.0 million and $114.7 million,                  respectively. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Tract                  Construction Lending                  The Bank originates 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, the Bank has financed                  projects throughout California.  Its builders operate within                  approximately twenty communities where demand for new affordable                  housing                  is consistently exceeding new production supply, with a substantial                  amount                  of new housing starts pre-sold to qualified buyers. The Inland                  Empire’s                  resale and new home markets continue to be supported by a growing                  labor                  base and relatively low mortgage rates. These types of construction                  loans                  typically range from $3.0 million to $10.0 million. During the                  three months ended March 31, 2006, gross commitments generated                  for this                  loan product amounted to $80.4 million. The Bank’s single-family                  residential tract construction loans amounted to $146.9 million                  and $129.7                  million at March 31, 2006 and December 31, 2005, respectively,                  net of                  participations sold of $11.0 million and $11.6 million,                  respectively. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | SBA                  Lending                  The Bank offers SBA 7(a) and 504 loans to small businesses throughout                  its                  market area. The Bank emphasizes these types of loans, as they                  are a                  complement to the Bank’s focus on strengthening and supporting the local                  communities. The Company had $16.7 million and $12.8 million of                  outstanding SBA loans at March 31, 2006 and December 31, 2005,                  respectively, net of participations sold of $41.9 million and $42.0                  million, respectively. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| ·   | Religious                  Lending                  The Bank originates religious loans, which are comprised of loans                  to                  churches and private schools throughout its market area. The Bank                  emphasizes these types of loans, as they are a complement to the                  Bank’s                  focus on strengthening and supporting the local communities. Loans                  to                  religious organizations amounted to $34.1 million and $30.3 million                  at March 31, 2006 and December 31, 2005, respectively. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Income                  Property Lending                  The Bank has an income property lending division to service the                  growing                  markets for commercial real estate and multifamily/apartments in                  Southern                  California. The commercial real estate portfolio includes office                  buildings, retail outlets and industrial warehouses, the majority                  of which                  are located in the Inland Empire region, and Los Angeles and Orange                  counties. The Southern California office market has witnessed strong                  demand for space, as evidenced by decreased vacancy rates. The                  Bank’s                  multifamily/apartment loan portfolio is centered in Los Angeles                  and Orange                  counties, with some lending in the Inland Empire region. Given                  the                  relatively high home prices in Southern California, the apartment                  market                  has experienced solid rental performance. Vacancy rates remain                  relatively                  low as renters are finding little product available for lease.                  Commercial                  real estate loans generated from this division typically range                  from $2.0                  million to $10.0 million, while apartment loans typically range                  from $0.5                  million to $5.0 million. At March 31, 2006 and December 31, 2005,                  the                  balance of loans generated from this division amounted to $308.6                  million                  and $264.1 million, respectively, for commercial real estate loans                  and                  $248.9 million and $234.4 million, respectively, for apartment                  loans. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Community                  Banking Group                  In                  order to expand the Bank’s core deposit franchise, the Community Banking                  Group of the Bank has focused on offering competitive interest                  rate                  products and providing value-added services by introducing additional                  products and services. The Company’s core deposit franchise has been built                  around the community banking system, which has resulted in deposit                  growth                  of 8.1% for the three months ended March 31, 2006. The Community                  Banking                  Group also focuses on commercial and business banking and the origination                  of commercial business loans. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| o   | Commercial                  and Business Banking                  The Bank is committed to providing customized credit solutions                  to assist                  customers in remaining competitive in their respective marketplaces.                  To                  this end, the Bank has coupled convenience and technology in expanding                  its                  deposit franchise, while supplementing customer service with new                  and                  complementary products. Business deposits have been pursued by                  offering an                  expanded courier network, by the introduction of cash management                  products                  and by specific targeting of small business customers. The Bank                  intends to                  capture additional business accounts by bundling new products and                  services                  with other cash management services. Expanded courier services                  and                  technology-based products contribute to providing a high level                  of service                  to its business clientele. |
|---------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| o   | Commercial                  Business Loans* *The                  Bank originates commercial business loans which generally consist                  of loans                  to small businesses. The Bank offers business revolving lines of                  credit,                  to ensure that businesses’ operating capital needs are met in a timely                  manner. Commercial loans in the SBA’s 7(a) program are also included in                  this category. |
|---------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

*Loan        and Deposit Growth. *

----

*Relationship        Banking Facilities.*

*Strategic        Expansion.*

| *§  * | Specialty                  Group Organization* *The                  Company believes that it can facilitate continued loan and deposit                  growth                  by the identification of new and the continued organization of                  lending and                  funding specialty groups. The loan and deposit portfolios are sectioned                  into specialty products, and each product base is enhanced by a                  group of                  seasoned banking professionals who have expertise in their specialty                  product and are able to offer a high level of service and maintain                  long-term customer relationships. The Company will continue to                  identify                  new specialty groups with new products to generate volume in both                  loans                  and deposits and to diversify the existing loan and deposit portfolios.                  In                  addition, the Company will focus on expanding the existing specialty                  groups to generate a higher volume of loans and deposits. |
|----------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| §   | Organic                  Deposit and Lending Growth* *The                  Company plans to achieve a consistent growth in its deposit and                  lending                  base through the retention and expansion of community banking                  relationships. The Company will also expand its presence in existing                  markets and enter new geographic markets through the hiring of                  new                  business development individuals or                  teams. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| *§  * | Strategic                  Acquisitions                  In                  alignment with the Company’s strategic plan, it may consider making                  strategic acquisitions of whole banks or individual branches. The                  Company                  will consider making acquisitions that are complements to its existing                  products and services, complements to its current geographic and                  demographic footprints, and are accretive to earnings. |
|----------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| *§  * | Capital                  Strategy* *The                  Company’s strategic plan includes various methods of generating capital.                  The Company may offer and sell securities in order to raise additional                  capital. To that end, the Company recently filed a shelf registration                  with                  the SEC, which provides the Company with the flexibility to publicly                  issue                  in the future up to $125 million in debt and/or equity securities.                  In                  addition, the Company may raise capital through private transactions                  or                  through the private issuance of trust preferred securities. The                  Company’s                  objective with its capital strategy is to maintain consistent capital                  ratios for both the Company and the Bank, while having a minimal                  dilutive                  impact to shareholders. |
|----------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1)   | Los                  Angeles County - The Bank will continue to focus on expanding high-end                  single family construction lending, commercial income property                  lending and                  SBA lending in the Los Angeles market area. To continue growing                  in this                  “established market”, the Bank will seek to attract commercial deposit                  accounts and further establish its deposit base. Greater effort                  will be                  made in the area of commercial and business lending along with                  corporate                  cash management services. |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 2)   | Orange                  County - The Bank will expand its existing lending products, including                  commercial income property, SBA and high-end single family construction                  in                  Orange county and surrounding areas. Additionally, the Company                  anticipates                  capturing new depository relationships in commercial and business                  banking,                  services                  for entrepreneurs,                  cash management and community banking operations in the Irvine                  office. |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3)   | San                  Diego County - The SBA division of the Bank has been operating                  out of San                  Diego over the last three years and will continue to expand its                  product in                  the San Diego market along with commercial income property lending                  and                  high-end single family construction lending. A new loan production                  office                  was opened in Carlsbad in 2005 as a satellite extension of the                  San Diego                  office. In early 2006, the Bank acquired a new team of deposit                  relationship managers as the San Diego office was converted to                  a                  full-service banking center for the purpose of commercial and business                  banking, services for entrepreneurs, cash management and community                  banking                  operations. |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4)   | Riverside                  & San Bernardino Counties - The Bank’s presence in these areas                  includes primarily single family residential tract construction                  lending as                  the population of home buyers migrate towards this area. The Bank                  will                  seek opportunities to offer its other lending products including                  high-end                  single family construction, commercial income property and                  SBA. |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5)   | Marin                  County - The Bank has recently entered the northern California                  market with                  a de novo banking center. The San Rafael office was staffed and                  opened in                  September 2005 as a loan production office to expand and enhance                  the                  Bank’s existing lending products including commercial income property,                  high-end single family construction, single family residential                  tract                  construction and SBA lending. A full-service banking center operation                  began in March 2006 with the acquisition of a new local banking                  team                  concentrating on new depository                  relationships. |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Single                  Family Residential Coastal                  Construction |
|--------------------|----------------------------------------------------------------------------------|

| ·   | Single                  Family Residential Tract                  Construction |
|--------------------|--------------------------------------------------------------------------------|

| ·   | SBA                  Lending |
|--------------------|------------------------------|

| ·   | Religious                  Financial Services |
|--------------------|-----------------------------------------------|

| ·   | Income                  Property (commercial and multifamily loan                  products) |
|--------------------|----------------------------------------------------------------------------------------------|

| ·   | Community                  Banking Group |
|--------------------|------------------------------------------|

| o   | Commercial                  and Business Banking |
|---------------|--------------------------------------------------|

| o   | Commercial                  Business Lending |
|---------------|----------------------------------------------|

*Asset        Growth.*

**Results        of Operations**

----

*Net        Interest Income*

----

----

| (Dollars                  in Thousands)                       |   | For                  the three months ended March 31, |      |
|---------------------------------------------------------------|--------|-------------------------------------------------------|-----------|
|                                                          |   | 2006                                                  |      | 2005 |   |
|                                                          |   | Average                                               |      |   |   | Average |   | Average |   |   |   | Average |   |
|                                                          |   | Balance                                               |      | Interest |   | Yield/Cost |   | Balance |   | Interest |   | Yield/Cost |   |
| Assets                                                        |   |                                                  |      |   |   |   |   |   |   |   |   |   |   |
| Loans                  (1)                                    |   | $                                                     | 1,440,184 |   | $ | 31,175 |   |   | 8.8 | % | $ | 1,039,428 |   | $ | 19,716 |   |   | 7.7 | % |
| Investment                  securities (2)                    |   |                                                  | 254,017   |   |   | 2,872 |   |   | 4.6 | % |   | 269,308 |   |   | 2,870 |   |   | 4.3 | % |
| Federal                  funds sold                           |   |                                                  | 289       |   |   | 3 |   |   | 4.2 | % |   | 276 |   |   | 2 |   |   | 2.9 | % |
| Other                  investments                            |   |                                                  | 16,218    |   |   | 197 |   |   | 4.9 | % |   | 11,594 |   |   | 106 |   |   | 3.7 | % |
| Total                  interest-earning assets                |   |                                                  | 1,710,708 |   |   | 34,247 |   |   | 8.1 | % |   | 1,320,606 |   |   | 22,694 |   |   | 7.0 | % |
| Other                  assets                                 |   |                                                  | 78,817    |   |   |   |   |   |   |   |   | 59,480 |   |   |   |   |   |   |   |
| Less:                  allowance for probable loan losses     |   |                                                  | (14,170   | ) |   |   |   |   |   |   |   | (13,007 | ) |   |   |   |   |   |   |
| Total                  average assets                         |   | $                                                     | 1,775,355 |   |   |   |   |   |   |   | $ | 1,367,079 |   |   |   |   |   |   |   |
|                                                          |   |                                                  |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Liabilities                  and Stockholders' Equity         |   |                                                  |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Savings                  deposits                  (3)        |   | $                                                     | 458,256   |   |   | 3,789 |   |   | 3.4 | % | $ | 458,935 |   |   | 2,703 |   |   | 2.4 | % |
| Time                  deposits                                |   |                                                  | 659,458   |   |   | 6,727 |   |   | 4.1 | % |   | 405,111 |   |   | 2,694 |   |   | 2.7 | % |
| FHLB                  advances and other borrowings           |   |                                                  | 277,361   |   |   | 3,141 |   |   | 4.6 | % |   | 206,738 |   |   | 1,222 |   |   | 2.4 | % |
| Subordinated                  debt                            |   |                                                  | 5,000     |   |   | 98 |   |   | 7.8 | % |   | 5,000 |   |   | 73 |   |   | 5.9 | % |
| Junior                  subordinated debentures               |   |                                                  | 96,913    |   |   | 1,741 |   |   | 7.2 | % |   | 71,139 |   |   | 1,000 |   |   | 5.7 | % |
| Total                  interest-bearing liabilities           |   |                                                  | 1,496,988 |   |   | 15,496 |   |   | 4.2 | % |   | 1,146,923 |   |   | 7,692 |   |   | 2.7 | % |
| Demand                  deposits                              |   |                                                  | 161,937   |   |   |   |   |   |   |   |   | 125,546 |   |   |   |   |   |   |   |
| Other                  liabilities                            |   |                                                  | 14,595    |   |   |   |   |   |   |   |   | 9,295 |   |   |   |   |   |   |   |
| Total                  average liabilities                    |   |                                                  | 1,673,520 |   |   |   |   |   |   |   |   | 1,281,764 |   |   |   |   |   |   |   |
| Stockholders'                  equity                         |   |                                                  | 101,835   |   |   |   |   |   |   |   |   | 85,315 |   |   |   |   |   |   |   |
| Total                  liabilities and                        |   |                                                  |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| stockholders'                  equity                         |   | $                                                     | 1,775,355 |   |   |   |   |   |   |   | $ | 1,367,079 |   |   |   |   |   |   |   |
|                                                          |   |                                                  |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                  interest spread                  (4)     |   |                                                  |      |   |   |   |   |   | 3.9 | % |   |   |   |   |   |   |   | 4.3 | % |
| Net                  interest income                          |   |                                                  |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| and                  net interest margin                  (5) |   |                                                  |      |   | $ | 18,751 |   |   | 4.4 | % |   |   |   | $ | 15,002 |   |   | 4.6 | % |

| (1) | Interest                  on loans includes loan fees, which totaled $3.1 million and $2.4                  million                  for the three months ended March 31, 2006 and 2005,                  respectively. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (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 Probable Loan Losses*

----

*Non-Interest        Income*

*Non-Interest        Expenses*

|   | (i) | Salaries                  and employee benefits is the largest component of non-interest                  expense. As                  the Bank has 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 loan production                  offices                  into full-service banking centers and the opening of new loan production                  offices, the Bank has recruited seasoned banking professionals                  to                  contribute to the continued growth as well as provide the infrastructure                  needed to support longer-term growth. These infrastructure changes                  have                  increased the Company’s salaries and employee benefits expense by $1.6                  million or 32.0% to $6.5 million for the three months ended March                  31, 2006                  as compared to the same period in 2005. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | Occupancy                  expense amounted to $1.1 million for the three months ended March                  31,                  2006, in comparison to $0.8 million for the same period in 2005.                  This                  represents an increase of $0.3 million or 40.4% over the same prior                  period. The increase in occupancy expense is primarily due to the                  Company’s expansion. During 2005, the Company moved its administrative                  headquarters to a 45,000 square foot facility in Corona Pointe,                  increasing                  its occupancy costs. The Bank also opened a loan production office                  in                  Westlake Village and expanded the San Rafael loan production office                  into a                  full-service banking center during the first quarter of 2006. In                  2005, the                  Company added a Carlsbad loan production office and has expanded                  the San                  Diego facility, contributing to the higher occupancy expense for                  the three                  months ended March 31, 2006 than for the same period in 2005. |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iii) | Furniture                  and equipment expense, comprised mainly of depreciation and maintenance                  expense, was $1.0 million and $0.7 million for the three months                  ended                  March 31, 2006 and 2005, respectively. As the Company opened its                  Corona                  Pointe administrative facility, expanded its banking network and                  redesigned its existing banking centers, expenses related to furniture                  and                  equipment increased. This expansion represents increases of $0.3                  million                  or 34.6% over the prior period. |
|--------|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iv) | Other                  non-interest expense was $2.7 million and $2.1 million for the                  three                  months ended March 31, 2006 and 2005, respectively. This represents                  an                  increase of 32.7% over the prior period. The increase is due primarily                  to                  the Company’s implementation of its strategy to grow its business. |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (Dollars                  in Thousands)                        |   | Three                  Months Ended March 31, |   |
|----------------------------------------------------------------|--------|-----------------------------------------------|--------|
|                                                           |   | 2006                                          |   | 2005 |   |
| Other                  non-interest expense:                   |   |                                          |   |   |   |
| Data                  processing                               |   | $                                             | 216    |   | $ | 194 |   |
| Marketing                                                      |   |                                          | 216    |   |   | 153 |   |
| Professional                  services                         |   |                                          | 425    |   |   | 293 |   |
| Office                  supplies, postage and telephone        |   |                                          | 436    |   |   | 350 |   |
| Insurance                  and assessments                     |   |                                          | 166    |   |   | 209 |   |
| Administrative                                                 |   |                                          | 149    |   |   | 122 |   |
| Business                  development                          |   |                                          | 582    |   |   | 384 |   |
| Other                                                          |   |                                          | 530    |   |   | 353 |   |
| Provision                  for off-balance sheet credit losses |   |                                          | 10     |   |   | - |   |
| Total                  other non-interest expense              |   | $                                             | 2,730  |   | $ | 2,058 |   |

**Financial        Condition**

*Assets*

*Investments*

| (Dollars                  in Thousands)     |   |      |    | Gross      |   | Gross      |   |                        |    |
|---------------------------------------------|--------|-----------|---------|------------|--------|------------|--------|-----------------------------|---------|
|                                        |   | Amortized |    | Unrealized |   | Unrealized |   |                        |    |
|                                        |   | Cost      |    | Gains      |   | Losses     |   | Fair                  Value |    |
| U.S.                  agency securities     |   | $         | 11,936  |       | $      | -          |   | $                           | (913    | ) | $ | 11,023 |   |
| Mortgage-backed                  securities |   |      | 234,533 |       |   | -          |   |                        | (9,658  | ) |   | 224,875 |   |
| Mutual                  funds               |   |      | 2,143   |       |   | -          |   |                        | (71     | ) |   | 2,072 |   |
| Total                                       |   | $         | 248,612 |       | $      | -          |   | $                           | (10,642 | ) | $ | 237,970 |   |

| (Dollars                  in Thousands)     |   |      |    | Gross      |   | Gross      |   |                        |   |
|---------------------------------------------|--------|-----------|---------|------------|--------|------------|--------|-----------------------------|--------|
|                                        |   | Amortized |    | Unrealized |   | Unrealized |   |                        |   |
|                                        |   | Cost      |    | Gains      |   | Losses     |   | Fair                  Value |   |
| U.S.                  agency securities     |   | $         | 11,751  |       | $      | -          |   | $                           | (126   | ) | $ | 11,625 |   |
| Mortgage-backed                  securities |   |      | 243,786 |       |   | -          |   |                        | (8,806 | ) |   | 234,980 |   |
| Mutual                  funds               |   |      | 2,121   |       |   | -          |   |                        | (32    | ) |   | 2,089 |   |
| Total                                       |   | $         | 257,658 |       | $      | -          |   | $                           | (8,964 | ) | $ | 248,694 |   |

----

| (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     |   | $                                    | -      |                                 | $      | -                           |   | $ | 11,023 |   | $ | (913 | ) | $ | 11,023 |   | $ | (913 | ) |
| Mortgage-backed                  securities |   |                                 | 19,260 |                                 |   | (498                        | )      |   | 205,615 |   |   | (9,160 | ) |   | 224,875 |   |   | (9,658 | ) |
| Mutual                  funds               |   |                                 | 2,072  |                                 |   | (71                         | )      |   | - |   |   | - |   |   | 2,072 |   |   | (71 | ) |
| Total                                       |   | $                                    | 21,332 |                                 | $      | (569                        | )      | $ | 216,638 |   | $ | (10,073 | ) | $ | 237,970 |   | $ | (10,642 | ) |

| (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     |   | $                                    | -      |                                 | $      | -                           |   | $ | 11,625 |   | $ | (126 | ) | $ | 11,625 |   | $ | (126 | ) |
| Mortgage-backed                  securities |   |                                 | 81,636 |                                 |   | (1,592                      | )      |   | 153,344 |   |   | (7,214 | ) |   | 234,980 |   |   | (8,806 | ) |
| Mutual                  funds               |   |                                 | 2,089  |                                 |   | (32                         | )      |   | - |   |   | - |   |   | 2,089 |   |   | (32 | ) |
| Total                                       |   | $                                    | 83,725 |                                 | $      | (1,624                      | )      | $ | 164,969 |   | $ | (7,340 | ) | $ | 248,694 |   | $ | (8,964 | ) |

| (Dollars                  in Thousands)     |   | **Securities                  Available-for-Sale** |   |
|---------------------------------------------|--------|----------------------------------------------------|--------|
|                                        |   | **Maturing                  5-10 years**           |   | **Maturing                  after 10 years** |   |
|                                        |   | **Amortized**                                      |   |   |   | **Amortized** |   |   |   |
|                                        |   | **Cost**                                           |   | **Fair                  Value** |   | **Cost** |   | **Fair                  Value** |   |
| Mortgage-backed                  securities |   | $                                                  | 14,118 |   | $ | 13,819 |   | $ | 220,415 |   | $ | 211,056 |   |
| U.S.                  agency securities     |   |                                               | -      |   |   | - |   |   | 11,936 |   |   | 11,023 |   |
| Total                                       |   | $                                                  | 14,118 |   | $ | 13,819 |   | $ | 232,351 |   | $ | 222,079 |   |

----

*Loans        *

| (Dollars                  in Thousands)                 |   | As                  of          |      |
|---------------------------------------------------------|--------|---------------------------------|-----------|
|                                                    |   | March                  31, 2006 |      | December                  31, 2005 |   |
|                                                    |   |                            |      |   |   |
| Commercial                  and industrial              |   | $                               | 65,690    |   | $ | 54,757 |   |
| Real                  estate construction:              |   |                            |      |   |   |   |   |
| Singe-family                  coastal                   |   |                            | 456,832   |   |   | 392,183 |   |
| Singe-family                  tract                     |   |                            | 146,869   |   |   | 129,706 |   |
| Commercial                                              |   |                            | 56,047    |   |   | 61,392 |   |
| Real                  estate mortgage:                  |   |                            |      |   |   |   |   |
| Commercial                                              |   |                            | 371,085   |   |   | 321,821 |   |
| Multi-family                  residential               |   |                            | 246,501   |   |   | 246,597 |   |
| Land                                                    |   |                            | 95,936    |   |   | 91,035 |   |
| All                  other residential                  |   |                            | 60,782    |   |   | 64,426 |   |
| Consumer                  loans                         |   |                            | 23,690    |   |   | 15,205 |   |
| All                  other loans (including overdrafts) |   |                            | 366       |   |   | 207 |   |
|                                                    |   |                            | 1,523,798 |   |   | 1,377,329 |   |
| Unearned                  premium on loans              |   |                            | 743       |   |   | 484 |   |
| Deferred                  loan fees                     |   |                            | (5,028    | ) |   | (4,714 | ) |
| Loans,                  net of unearned income          |   | $                               | 1,519,513 |   | $ | 1,373,099 |   |

| (Dollars                  in Thousands)       |   | Three                  months ended |   |
|-----------------------------------------------|--------|-------------------------------------|--------|
|                                          |   | March                  31, 2006     |   | March                  31, 2005 |   |
| Servicing                  rights capitalized |   | $                                   | 55     |   | $ | 106 |   |
| Servicing                  rights amortized   |   | $                                   | 168    |   | $ | 205 |   |
| Valuation                  allowances         |   | $                                   | -      |   | $ | - |   |

| (Dollars                  in Thousands)                |   | Three                  months ended March 31, |   |
|--------------------------------------------------------|--------|-----------------------------------------------|--------|
|                                                   |   | 2006                                          |   | 2005 |   |
| Servicing                  rights, beginning of year   |   | $                                             | 1,358  |   | $ | 1,705 |   |
| Servicing                  rights added in period, net |   |                                          | 55     |   |   | 106 |   |
| Servicing                  rights amortized            |   |                                          | (168   | ) |   | (205 | ) |
| Servicing                  rights, end of period       |   | $                                             | 1,245  |   | $ | 1,606 |   |

----

*Allowance        for Probable Loan Losses*

| (Dollars                  in Thousands)                     |   | Three                  months ended |   |
|-------------------------------------------------------------|--------|-------------------------------------|--------|
|                                                        |   | March                  31, 2006     |   | March                  31, 2005 |   |
| Balance,                  beginning of year                 |   | $                                   | 13,762 |   | $ | 11,969 |   |
| Recoveries                  on loans previously charged off |   |                                | 47     |   |   | 24 |   |
| Loans                  charged off                          |   |                                | (9     | ) |   | (16 | ) |
| Provision                  charged to operating expense     |   |                                | 1,200  |   |   | - |   |
| Balance,                  end of period                     |   | $                                   | 15,000 |   | $ | 11,977 |   |

*Nonperforming        Assets*

| (Dollars                  in Thousands)                        |   | As                  of          |   |
|----------------------------------------------------------------|--------|---------------------------------|--------|
|                                                           |   | March                  31, 2006 |   | December                  31, 2005 |   |
| **Accruing                  Loans More than 90 Days Past Due** |   |                            |   |   |   |
| Aggregate                  loan amounts                        |   |                            |   |   |   |
| Commercial                  and industrial                     |   | $                               | -      |   | $ | - |   |
| Real                  estate-mortgage                          |   |                            | -      |   |   | - |   |
| Consumer                  loans                                |   |                            | -      |   |   | - |   |
| Total                  loans past due more than 90 days        |   | $                               | -      |   | $ | - |   |
| and                  still accruing                            |   |                            |   |   |   |   |   |
| **Renegotiated                  loans**                   |   |                            | -      |   |   | - |   |
|                                                           |   |                            |   |   |   |   |   |
| **Non-accrual                  loans**                         |   |                            |   |   |   |   |   |
| Aggregate                  loan amounts                        |   |                            |   |   |   |   |   |
| Commercial                  and industrial                     |   | $                               | 321    |   | $ | 477 |   |
| Real                  estate-mortgage                          |   |                            | 136    |   |   | 480 |   |
| Consumer                  loans                                |   |                            | -      |   |   | 7 |   |
| Total                  non-accrual loans                       |   | $                               | 457    |   | $ | 964 |   |
|                                                           |   |                            |   |   |   |   |   |
| Total                  non-performing loans                    |   | $                               | 457    |   | $ | 964 |   |

----

| (Dollars                  in Thousands)                                |   | As                  of     |   |
|------------------------------------------------------------------------|--------|----------------------------|--------|
|                                                                   |   | March                  31, |   | December                  31, |   |
|                                                                   |   | 2006                       |   | 2005 |   |
| Impaired                  loans with a specific valuation allowance    |   | $                          | -      |   | $ | - |   |
| Impaired                  loans without a specific valuation allowance |   |                       | 457    |   |   | 964 |   |
| Total                  impaired loans                                  |   | $                          | 457    |   | $ | 964 |   |
|                                                                   |   |                       |   |   |   |   |   |
| Valuation                  allowance related to impaired loans         |   | $                          | -      |   | $ | - |   |

| (Dollars                  in Thousands)                            |   | Three                  months ended |   | Year                  ended        |   |
|--------------------------------------------------------------------|--------|-------------------------------------|--------|------------------------------------|--------|
|                                                               |   | March                  31, 2006     |   | December                  31, 2005 |   |
| Average                  recorded investment in impaired loans     |   | $                                   | 850    |                               | $      | 3,472 |   |
| Cash                  receipts applied to reduce principal balance |   | $                                   | 636    |                               | $      | 4,705 |   |
| Interest                  income recognized for cash payments      |   | $                                   | 24     |                               | $      | 338 |   |

*Deposits*

| (Dollars                  in Thousands)           |   |   |    |
|---------------------------------------------------|--------|--------|---------|
|                                              |   |   |    |
| Three                  months or less             |   | $      | 105,693 |   |
| Over                  three through twelve months |   |   | 285,217 |   |
| Over                  one through five years      |   |   | 6,539   |   |
|                                              |   | $      | 397,449 |   |

*Borrowings*

----

| (Dollars                  in Thousands) |   | Weighted |   |   |   |
|-----------------------------------------|--------|----------|--------|--------|--------|
|                                    |   | Average  |   |   |   |
| Maturity                                |   | Rate     |   | Amount |   |
| 2006                                    |   |     | 4.7    | %      | $      | 199,000 |   |
| 2007                                    |   |     | 4.8    | %      |   | 25,000 |   |
| 2008                                    |   |     | 4.8    | %      |   | 25,000 |   |
|                                    |   |     | 4.8    | %      | $      | 249,000 |   |

| (Dollars                  in Thousands)        |   |                           |                                  |                           |   | As                  of March 31, 2006 |   |
|------------------------------------------------|--------|--------------------------------|---------------------------------------|--------------------------------|--------|---------------------------------------|--------|
|                                           |   |                           |                                  |                           |   | Minority                              |   | Effective |   |   |   |
|                                           |   | Interest                  Rate |                                  | Maturity                  Date |   | Interest                              |   | Interest                  Rate |   | Balance |   |
| Vineyard                  Statutory Trust I    |   |                           | 3-month                  LIBOR + 3.60 | %                              |   | December                  18, 2031    |   | $ | 372 |   |   | 8.53 | % | $ | 12,372 |   |
| Vineyard                  Statutory Trust II   |   |                           | 3-month                  LIBOR + 3.35 | %                              |   | December                  26, 2032    |   |   | 155 |   |   | 7.95 | % |   | 5,155 |   |
| Vineyard                  Statutory Trust III  |   |                           | 3-month                  LIBOR + 3.05 | %                              |   | October                  8, 2033      |   |   | 310 |   |   | 7.65 | % |   | 10,310 |   |
| Vineyard                  Statutory Trust IV   |   |                           | 3-month                  LIBOR + 2.85 | %                              |   | January                  23, 2034     |   |   | 310 |   |   | 7.51 | % |   | 10,310 |   |
| Vineyard                  Statutory Trust V    |   |                           | 3-month                  LIBOR + 2.85 | %                              |   | April                  23, 2034       |   |   | 310 |   |   | 7.45 | % |   | 10,310 |   |
| Vineyard                  Statutory Trust VI   |   |                           | 3-month                  LIBOR + 2.85 | %                              |   | July                  23, 2034        |   |   | 372 |   |   | 7.46 | % |   | 12,372 |   |
| Vineyard                  Statutory Trust VII  |   |                           | 3-month                  LIBOR + 2.00 | %                              |   | December                  16, 2034    |   |   | 310 |   |   | 6.82 | % |   | 10,310 |   |
| Vineyard                  Statutory Trust VIII |   |                           | 3-month                  LIBOR + 2.25 | %                              |   | May                  23, 2035         |   |   | 310 |   |   | 7.02 | % |   | 10,310 |   |
| Vineyard                  Statutory Trust IX   |   |                           | 3-month                  LIBOR + 1.70 | %                              |   | November                  23, 2035    |   |   | 464 |   |   | 6.47 | % |   | 15,464 |   |
|                                           |   |                           |                                  |                           |   |                                  |   | $ | 2,913 |   |   | 7.38 | % | $ | 96,913 |   |

*Stockholders’        Equity *

----

|                                                          |   | As                  of          |      |
|---------------------------------------------------------------|--------|---------------------------------|-----------|
|                                                          |   | March                  31, 2006 |      | December                  31, 2005 |   |
|                                                          |   |                            |      |   |   |
| Period-end                  shares outstanding                |   |                            | 9,432,239 |   |   | 9,427,690 |   |
| Unreleased                  and unallocated ESOP shares  |   |                            | (262,771  | ) |   | (268,487 | ) |
| Used                  in basic book value per common stock    |   |                            | 9,169,468 |   |   | 9,159,203 |   |
| Warrants                  (1)                                 |   |                            | 160,000   |   |   | 160,000 |   |
| Used                  in book value per common stock,         |   |                            |      |   |   |   |   |
| assuming                  exercise of warrants                |   |                            | 9,329,468 |   |   | 9,319,203 |   |
|                                                          |   |                            |      |   |   |   |   |
| Book                  value per common stock, basic           |   | $                               | 9.59      |   | $ | 9.86 |   |
| Book                  value per common stock, assuming        |   |                            |      |   |   |   |   |
| exercise                  of warrants                         |   | $                               | 9.85      |   | $ | 10.12 |   |

**Liquidity**

**Capital        Resources**

----

| (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, 2006**                |   |                               |    |                               |   |                               |   |   |   |   |   |   |   |
| Total                  capital to risk-weighted assets:  |   |                               |    |                               |   |                               |   |   |   |   |   |   |   |
| Bank                                                     |   | $                                  | 218,981 |                               |   | 12.3                               | %      | $ | 142,800 |   |   | 8.0 | % | $ | 178,500 |   |   | 10.0 | % |
| Consolidated                                             |   | $                                  | 218,686 |                               |   | 12.2                               | %      | $ | 143,000 |   |   | 8.0 | % |   | N/A |   |   | N/A |   |
|                                                     |   |                               |    |                               |   |                               |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Tier                  1 capital to risk-weighted assets: |   |                               |    |                               |   |                               |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Bank                                                     |   | $                                  | 202,625 |                               |   | 11.4                               | %      | $ | 71,300 |   |   | 4.0 | % | $ | 107,000 |   |   | 6.0 | % |
| Consolidated                                             |   | $                                  | 137,774 |                               |   | 7.7                                | %      | $ | 71,500 |   |   | 4.0 | % |   | N/A |   |   | N/A |   |
|                                                     |   |                               |    |                               |   |                               |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Tier                  1 capital to average assets:       |   |                               |    |                               |   |                               |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Bank                                                     |   | $                                  | 202,625 |                               |   | 11.5                               | %      | $ | 70,700 |   |   | 4.0 | % | $ | 88,300 |   |   | 5.0 | % |
| Consolidated                                             |   | $                                  | 137,774 |                               |   | 7.8                                | %      | $ | 71,100 |   |   | 4.0 | % |   | N/A |   |   | N/A |   |
|                                                     |   |                               |    |                               |   |                               |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **As                  of December 31, 2005**             |   |                               |    |                               |   |                               |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                  capital to risk-weighted assets:  |   |                               |    |                               |   |                               |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Bank                                                     |   | $                                  | 211,871 |                               |   | 13.1                               | %      | $ | 129,100 |   |   | 8.0 | % | $ | 161,400 |   |   | 10.0 | % |
| Consolidated                                             |   | $                                  | 218,894 |                               |   | 13.5                               | %      | $ | 129,500 |   |   | 8.0 | % |   | N/A |   |   | N/A |   |
|                                                     |   |                               |    |                               |   |                               |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Tier                  1 capital to risk-weighted assets: |   |                               |    |                               |   |                               |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Bank                                                     |   | $                                  | 196,762 |                               |   | 12.2                               | %      | $ | 64,500 |   |   | 4.0 | % | $ | 96,800 |   |   | 6.0 | % |
| Consolidated                                             |   | $                                  | 139,715 |                               |   | 8.6                                | %      | $ | 64,800 |   |   | 4.0 | % |   | N/A |   |   | N/A |   |
|                                                     |   |                               |    |                               |   |                               |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Tier                  1 capital to average assets:       |   |                               |    |                               |   |                               |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Bank                                                     |   | $                                  | 196,762 |                               |   | 11.7                               | %      | $ | 67,300 |   |   | 4.0 | % | $ | 84,100 |   |   | 5.0 | % |
| Consolidated                                             |   | $                                  | 139,715 |                               |   | 8.3                                | %      | $ | 67,700 |   |   | 4.0 | % |   | N/A |   |   | N/A |   |

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

**The        Company’s business is subject to interest rate risk and variations in interest        rates may negatively affect its financial performance.**

----

|   | · | inflation; |
|--------|--------|------------|

|   | · | slow                  or stagnant economic growth or                  recession; |
|--------|--------|----------------------------------------------------------------------------------|

|   | · | unemployment; |
|--------|--------|---------------|

|   | · | money                  supply and the monetary policies of the                  FRB; |
|--------|--------|--------------------------------------------------------------------------------------|

|   | · | international                  disorders; and |
|--------|--------|-----------------------------------------------|

|   | · | instability                  in domestic and foreign financial                  markets. |
|--------|--------|------------------------------------------------------------------------------------------|

**Interest        Rates and Differentials**

**Asset/Liability        Management**

----

| (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                                     |   | $                                             | (17,431 | )                                      |   | -6.4 | % | $ | 4,679 |   |   | 5.7 | % |
| 100                                     |   | $                                             | (8,722  | )                                      |   | -3.2 | % | $ | 2,274 |   |   | 2.8 | % |
| -100                                    |   | $                                             | 11,344  |                                   |   | 4.1 | % | $ | 5,835 |   |   | 7.1 | % |
| -200                                    |   | $                                             | 15,670  |                                   |   | 5.7 | % | $ | 11,456 |   |   | 13.9 | % |

**ITEM        4. CONTROLS AND PROCEDURES**

**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, except per share amounts) |   |                                                  |   |                                              |   |                                                                                                                          |   |
|-------------------------------------------------------------------|--------|-------------------------------------------------------|--------|---------------------------------------------------|--------|-------------------------------------------------------------------------------------------------------------------------------|--------|
| **Period**                                                        |   | **Total                  Number of Shares Purchased** |   | **Average                  Price Paid Per Share** |   | **Total                  Number of Shares Purchased as Part of Publicly Announced Plans                  or Programs****(1)** |   | **Approximate                  Dollar Value of Shares that May Yet Be Purchased Under the Plans                  or                  Programs** |   |
|                                                              |   |                                                  |   |                                              |   |                                                                                                                          |   |   |   |
| January                  1 - 31, 2006                             |   |                                                  | 56,300 |                                              | $      | 30.19                                                                                                                         |   |   | 56,300 |   | $ | 13,040 |   |
| February                  1 - 28, 2006                            |   |                                                  | -      |                                              |   | -                                                                                                                             |   |   | - |   | $ | 13,040 |   |
| March                  1 - 31, 2006                               |   |                                                  | 19,200 |                                              |   | 28.79                                                                                                                         |   |   | 19,200 |   | $ | 12,487 |   |
| Total                                                             |   |                                                  | 75,500 |                                              | $      | 29.84                                                                                                                         |   |   | 75,500 |   |   |   |   |

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

**ITEM        3. DEFAULTS UPON SENIOR SECURITIES**

**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                            |        | Specimen                  Common Stock Certificate of Vineyard National Bancorp (3) |
| 4.1                          |        | Form                  of Warrant to Purchase Shares of Common Stock (4) |
| 4.2                          |        | 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. |
| 4.3                          |        | Registration                  Rights Agreement (5) |
| 4.4                          |        | 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 |   | Employment                  Agreement between Vineyard National Bancorp, Vineyard Bank and                  Norman A.                  Morales (6)*                                           |
| 10.13 |   | Securities                  Purchase Agreement (5)                                                                                                                                            |
| 10.14 |   | Securities                  Purchase Agreement (11)                                                                                                                                                |
| 10.15 |   | Form                  of Change of Control Agreement (13)*                                                                                                                                    |
| 10.16 |   | Loan                  agreement between Vineyard National Bancorp and First Tennessee                  Bank                  National Association*                                                 |
| 11    |   | Statement                  regarding computation of per share earnings. See Note 6 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 |

|   | (1)    | Incorporated                  by reference from the Registrant’s Annual Report on Form 10-K for the year                  ended December 31, 2002 filed with the Commission on March 28,                  2003.                         |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                          |
|   | (2)    | Incorporated                  by reference from the Registrant’s Registration Statement on Form S-8                  (File No. 333-18217) filed with the Commission on December 19,                  1996.                              |
|   |   |                                                                                                                                                                                                                                          |
|   | (3)    | Incorporated                  by reference from the Registrant’s Annual Report on Form 10-K for the year                  ended December 31, 1988 filed with the Commission.                                                            |
|   |   |                                                                                                                                                                                                                                          |
|   | (4)    | Incorporated                  by reference from the Registrant’s Proxy Statement for a special meeting                  held on December 18, 2002 filed with the Commission on November                  25,                  2002.     |
|   |   |                                                                                                                                                                                                                                          |
|   | (5)    | Incorporated                  by reference from the Registrant’s Form 8-K filed with the Commission on                  June 21, 2004.                                                                                                  |
|   |   |                                                                                                                                                                                                                                          |
|   | (6)    | Incorporated                  by reference from the Registrant’s Annual Report on Form 10-K for the year                  ended December 31, 2000 filed with the Commission on March 30,                  2001.                         |
|   |   |                                                                                                                                                                                                                                          |
|   | (7)    | Incorporated                  by reference from the Registrant’s Annual Report on Form 10-K for the year                  ended December 31, 2004 filed with the Commission on March 10,                  2005.                         |
|   |   |                                                                                                                                                                                                                                          |
|   | (8)    | Incorporated                  by reference from the Registrant’s Proxy Statement for an annual meeting                  held on May 22, 2003 filed with the Commission on April 14,                  2003.                              |
|   |   |                                                                                                                                                                                                                                          |
|   | (9)    | Incorporated                  by reference from the Registrant's Form 8-K filed with the SEC                  on December                  10, 2004.                                                                                          |
|   |   |                                                                                                                                                                                                                                          |
|   | (10)   | Incorporated                  by reference from the Registrant’s Quarterly Report on Form 10-Q for the                  three and nine months ended September 30, 2004 filed with the Commission                  on November 10, 2004. |
|   |   |                                                                                                                                                                                                                                          |
|   | (11)   | Incorporated                  by reference from the Registrant’s Form 8-K filed with the Commission on                  April 19, 2005.                                                                                                 |
|   |   |                                                                                                                                                                                                                                          |
|   | (12)   | Incorporated                  by reference from the Registrant’s Proxy Statement for an annual meeting                  held on May 25, 2005 filed with the Commission on April 18,                  2005.                              |

----

|   |   |                                                                                                                                                                                                                                         |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | (13)   | Incorporated                  by reference from the Registrant’s Form 8-K filed with the Commission on                  April 17, 2006.                                                                                                |
|   |   |                                                                                                                                                                                                                                         |
|   | (14)   | Incorporated                  by reference from the Registrant’s Form 8-K filed with the Commission on                  April 20, 2006.                                                                                                |
|   |   |                                                                                                                                                                                                                                         |
|   | (15)   | Incorporated                  by reference from the Registrant’s Quarterly Report on Form 10-Q for the                  three and nine months ended September 30, 2005 filed with the Commission                  on November 4, 2005. |
|   |   |                                                                                                                                                                                                                                         |
|   | *      | Management                  contract or compensatory plan or                  arrangement.                                                                                                                                                   |

----

**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)   |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |

----