**UNITED      STATES**

**SECURITIES      AND EXCHANGE COMMISSION**

**FORM      10-Q**

**FOR      THE QUARTER**
**LY      PERIOD ENDED JUNE 30, 2005 **

**VINEYARD      NATIONAL BANCORP**

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

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**VINEYARD      NATIONAL BANCORP AND SUBSIDIARY**

**FORM      10-Q INDEX**

**FOR      THE PERIODS ENDED JUNE 30, 2005 AND 2004,**

**AND      DECEMBER 31, 2004**

|                   | **PART                I - FINANCIAL INFORMATION**                                                                                        |   |
|------------------------|------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                   |                                                                                                                                     |   |
| ITEM                1. | Financial                Statements                                                                                                      |   |
|                   |                                                                                                                                     |   |
|                   | Consolidated                Statements of Financial Condition at June 30, 2005                and December 31, 2004                      | 4      |
|                   |                                                                                                                                     |   |
|                   | Consolidated                Statements of Income for the Three and Six Months                Ended June 30, 2005 and 2004                | 5      |
|                   |                                                                                                                                     |   |
|                   | Consolidated                Statements of Changes in Stockholders' Equity for                the Six Months Ended June 30, 2005 and 2004 | 6      |
|                   |                                                                                                                                     |   |
|                   | Consolidated                Statements of Cash Flows for the Six Months Ended                June 30, 2005 and 2004                      | 7      |
|                   |                                                                                                                                     |   |
|                   | Notes                to Consolidated Financial Statements                                                                                | 9      |
|                   |                                                                                                                                     |   |
|                   | Report                of Independent Registered Public Accounting                Firm                                                    | 15     |
|                   |                                                                                                                                     |   |
| 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                                                                                                         | 35     |
|                   |                                                                                                                                     |   |
| 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                                                                                                         | 36     |
|                   |                                                                                                                                     |   |
| ITEM                6. | Exhibits                                                                                                                                 | 36     |
|                   |                                                                                                                                     |   |
| Signatures             |                                                                                                                                     | 38     |
|                   |                                                                                                                                     |   |
| Exhibits               |                                                                                                                                     |   |
|                   |                                                                                                                                     |   |

----

**FORWARD-LOOKING      STATEMENTS**

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Table          of Contents

**PART      I**

**ITEM      I. FINANCIAL STATEMENTS**

**VINEYARD      NATIONAL BANCORP AND SUBSIDIARY**

**CONSOLIDATED      STATEMENTS OF FINANCIAL CONDITION**

**AT      JUNE 30, 2005 AND DECEMBER 31, 2004**

| (Dollars                in Thousands)                                     |   | June                30, |      | December                31, |   |
|---------------------------------------------------------------------------|--------|-------------------------|-----------|-----------------------------|--------|
|                                                                      |   | 2005                    |      | 2004                        |   |
|                                                                      |   | (unaudited)             |      | (audited)                   |   |
| **ASSETS**                                                                |   |                    |      |                        |   |
| Cash                and cash equivalents                                  |   | $                       | 30,894    |                        | $      | 22,551 |   |
| Investment                securities, available-for-sale                  |   |                    | 292,736   |                        |   | 223,480 |   |
| Loans,                net of unearned income                              |   |                    | 1,245,247 |                        |   | 1,027,037 |   |
| Less:                Allowance for possible loan losses                   |   |                    | (13,876   | )                           |   | (13,001 | ) |
| Net                Loans                                                  |   |                    | 1,231,371 |                        |   | 1,014,036 |   |
| Bank                premises and equipment, net                           |   |                    | 16,508    |                        |   | 12,399 |   |
| Accrued                interest                                           |   |                    | 6,796     |                        |   | 5,423 |   |
| Federal                Home Loan Bank ("FHLB") and other stock, at cost   |   |                    | 18,956    |                        |   | 12,235 |   |
| Deferred                income tax asset                                  |   |                    | 7,786     |                        |   | 8,196 |   |
| Other                assets                                               |   |                    | 14,520    |                        |   | 13,177 |   |
| **TOTAL                ASSETS**                                           |   | $                       | 1,619,567 |                        | $      | 1,311,497 |   |
|                                                                      |   |                    |      |                        |   |   |   |
| **LIABILITIES                AND STOCKHOLDERS' EQUITY**                   |   |                    |      |                        |   |   |   |
| Liabilities                                                               |   |                    |      |                        |   |   |   |
| Deposits                                                                  |   |                    |      |                        |   |   |   |
| Non-interest                bearing                                       |   | $                       | 137,965   |                        | $      | 127,466 |   |
| Interest-bearing                                                          |   |                    | 896,161   |                        |   | 838,080 |   |
| Total                Deposits                                             |   |                    | 1,034,126 |                        |   | 965,546 |   |
|                                                                      |   |                    |      |                        |   |   |   |
| FHLB                advances                                              |   |                    | 388,000   |                        |   | 177,000 |   |
| Subordinated                debentures                                    |   |                    | 5,000     |                        |   | 5,000 |   |
| Junior                subordinated debentures                             |   |                    | 81,449    |                        |   | 71,139 |   |
| Accrued                interest and other liabilities                     |   |                    | 8,556     |                        |   | 7,585 |   |
| **TOTAL                LIABILITIES**                                      |   |                    | 1,517,131 |                        |   | 1,226,270 |   |
|                                                                      |   |                    |      |                        |   |   |   |
| **COMMITMENTS                AND CONTINGENCIES (Note #2)**                |   |                    |      |                        |   |   |   |
|                                                                      |   |                    |      |                        |   |   |   |
| Stockholders'                Equity                                       |   |                    |      |                        |   |   |   |
| Contributed                capital                                        |   |                    |      |                        |   |   |   |
| Perpetual                preferred stock - authorized 10,000,000 shares   |   |                    |      |                        |   |   |   |
| Series                C - no par value, issued and outstanding 10,000     |   |                    |      |                        |   |   |   |
| and                0 shares in 2005 and 2004, respectively                |   |                    | 9,675     |                        |   | - |   |
| Common                stock - no par value, authorized 50,000,000 shares; |   |                    |      |                        |   |   |   |
| issued                and outstanding 9,678,371 and 9,581,941 shares      |   |                    |      |                        |   |   |   |
| in                2005 and 2004, respectively                             |   |                    | 69,161    |                        |   | 70,536 |   |
| Additional                paid-in capital                                 |   |                    | 3,858     |                        |   | 3,772 |   |
| Unallocated                ESOP shares                                    |   |                    | (6,576    | )                           |   | (6,856 | ) |
| Retained                earnings                                          |   |                    | 28,490    |                        |   | 20,513 |   |
| Accumulated                other comprehensive loss, net of taxes         |   |                    | (2,172    | )                           |   | (2,738 | ) |
| **TOTAL                STOCKHOLDERS' EQUITY**                             |   |                    | 102,436   |                        |   | 85,227 |   |
| **TOTAL                LIABILITIES AND STOCKHOLDERS' EQUITY**             |   | $                       | 1,619,567 |                        | $      | 1,311,497 |   |
|                                                                      |   |                    |      |                        |   |   |   |
| See                accompanying notes to financial statements.            |   |                    |      |                        |   |   |   |

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Table          of Contents

**VINEYARD      NATIONAL BANCORP AND SUBSIDIARY**

**CONSOLIDATED      STATEMENTS OF INCOME**

**FOR      THE THREE AND SIX MONTHS ENDED JUNE 30, 2005 AND 2004**

| (Dollars                in Thousands, except per share amounts)               |   | Three                Months Ended June 30, |   | Six                Months Ended June 30, |   |
|-------------------------------------------------------------------------------|--------|--------------------------------------------|--------|------------------------------------------|--------|
|                                                                          |   | 2005                                       |   | 2004                                     |   | 2005 |   | 2004 |   |
|                                                                          |   | (unaudited)                                |   | (unaudited)                              |   | (unaudited) |   | (unaudited) |   |
| **Interest                Income**                                            |   |                                       |   |                                     |   |   |   |   |   |
| Interest                and fees on loans                                     |   | $                                          | 22,703 |                                     | $      | 16,156 |   | $ | 42,419 |   | $ | 29,238 |   |
| Interest                on investment securities                              |   |                                       | 3,355  |                                     |   | 1,900 |   |   | 6,333 |   |   | 4,000 |   |
| **TOTAL                INTEREST INCOME**                                      |   |                                       | 26,058 |                                     |   | 18,056 |   |   | 48,752 |   |   | 33,238 |   |
|                                                                          |   |                                       |   |                                     |   |   |   |   |   |   |   |   |   |
| **Interest                Expense**                                           |   |                                       |   |                                     |   |   |   |   |   |   |   |   |   |
| Interest                on savings deposits                (1)                |   |                                       | 2,778  |                                     |   | 1,616 |   |   | 5,481 |   |   | 3,000 |   |
| Interest                on time deposits in denominations of $100,000 or more |   |                                       | 2,104  |                                     |   | 1,014 |   |   | 3,578 |   |   | 1,876 |   |
| Interest                on other time deposits                                |   |                                       | 1,503  |                                     |   | 928 |   |   | 2,723 |   |   | 1,700 |   |
| Interest                on FHLB advances and other borrowings                 |   |                                       | 3,565  |                                     |   | 1,519 |   |   | 5,860 |   |   | 2,569 |   |
| **TOTAL                INTEREST EXPENSE**                                     |   |                                       | 9,950  |                                     |   | 5,077 |   |   | 17,642 |   |   | 9,145 |   |
| **NET                INTEREST INCOME**                                        |   |                                       | 16,108 |                                     |   | 12,979 |   |   | 31,110 |   |   | 24,093 |   |
|                                                                          |   |                                       |   |                                     |   |   |   |   |   |   |   |   |   |
| **Provision                for Possible Loan and Lease Losses**               |   |                                       | (850   | )                                        |   | (1,683 | ) |   | (850 | ) |   | (3,483 | ) |
|                                                                          |   |                                       |   |                                     |   |   |   |   |   |   |   |   |   |
| **NET                INTEREST INCOME AFTER**                                  |   |                                       |   |                                     |   |   |   |   |   |   |   |   |   |
| **PROVISION                FOR POSSIBLE**                                     |   |                                       |   |                                     |   |   |   |   |   |   |   |   |   |
| **LOAN                AND LEASE LOSSES**                                      |   |                                       | 15,258 |                                     |   | 11,296 |   |   | 30,260 |   |   | 20,610 |   |
|                                                                          |   |                                       |   |                                     |   |   |   |   |   |   |   |   |   |
| **Other                Income**                                               |   |                                       |   |                                     |   |   |   |   |   |   |   |   |   |
| Fees                and service charges                                       |   |                                       | 463    |                                     |   | 486 |   |   | 844 |   |   | 924 |   |
| Gain                on sale of SBA loans and broker fee income                |   |                                       | 770    |                                     |   | 378 |   |   | 1,427 |   |   | 1,262 |   |
| Net                gain on sale of investment securities                      |   |                                       | -      |                                     |   | - |   |   | - |   |   | 207 |   |
| Other                income                                                   |   |                                       | 92     |                                     |   | 26 |   |   | 167 |   |   | 136 |   |
| **TOTAL                OTHER INCOME**                                         |   |                                       | 1,325  |                                     |   | 890 |   |   | 2,438 |   |   | 2,529 |   |
|                                                                          |   |                                       |   |                                     |   |   |   |   |   |   |   |   |   |
| **Other                Expense**                                              |   |                                       |   |                                     |   |   |   |   |   |   |   |   |   |
| Salaries                and employee benefits                                 |   |                                       | 4,487  |                                     |   | 3,456 |   |   | 9,411 |   |   | 6,678 |   |
| Occupancy                expense of premises                                  |   |                                       | 876    |                                     |   | 555 |   |   | 1,677 |   |   | 1,097 |   |
| Furniture                and equipment                                        |   |                                       | 762    |                                     |   | 578 |   |   | 1,500 |   |   | 1,017 |   |
| Other                                                                         |   |                                       | 2,281  |                                     |   | 2,042 |   |   | 4,339 |   |   | 3,769 |   |
| **TOTAL                OTHER EXPENSES**                                       |   |                                       | 8,406  |                                     |   | 6,631 |   |   | 16,927 |   |   | 12,561 |   |
| **INCOME                BEFORE INCOME TAXES**                                 |   |                                       | 8,177  |                                     |   | 5,555 |   |   | 15,771 |   |   | 10,578 |   |
| **INCOME                TAX PROVISION**                                       |   |                                       | 3,419  |                                     |   | 2,270 |   |   | 6,596 |   |   | 4,324 |   |
| **NET                INCOME**                                                 |   | $                                          | 4,758  |                                     | $      | 3,285 |   | $ | 9,175 |   | $ | 6,254 |   |
|                                                                          |   |                                       |   |                                     |   |   |   |   |   |   |   |   |   |
| **EARNINGS                PER SHARE**                                         |   |                                       |   |                                     |   |   |   |   |   |   |   |   |   |
| **BASIC**                                                                     |   | $                                          | 0.50   |                                     | $      | 0.42 |   | $ | 0.97 |   | $ | 0.82 |   |
| **DILUTED**                                                                   |   | $                                          | 0.48   |                                     | $      | 0.37 |   | $ | 0.93 |   | $ | 0.71 |   |
|                                                                          |   |                                       |   |                                     |   |   |   |   |   |   |   |   |   |
| See                accompanying notes to financial statements.                |   |                                       |   |                                     |   |   |   |   |   |   |   |   |   |

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

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Table          of Contents

**VINEYARD      NATIONAL BANCORP AND SUBSIDIARY**

**CONSOLIDATED      STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY**

**FOR      THE SIX MONTHS ENDED JUNE 30, 2005 AND 2004**

| (Dollars                in Thousands)                |   |      |    |                        |   |       |   |     |   | Stock                |   |          |   |     |   |        |   | Accumulated   |   |   |   |
|------------------------------------------------------|--------|-----------|---------|-----------------------------|--------|------------|--------|----------|--------|----------------------|--------|---------------|--------|----------|--------|-------------|--------|---------------|--------|--------|--------|
|                                                 |   | Perpetual |    | Common                Stock |   | Additional |   | Dividend |   |                 |   |          |   |     |   | Other       |   |          |   |
|                                                 |   | Preferred |    | Number                of    |   |       |   | Paid-in  |   | To                Be |   | Comprehensive |   | Retained |   | Unallocated |   | Comprehensive |   |   |   |
|                                                 |   | Stock     |    | Shares                      |   | Amount     |   | Capital  |   | Distributed          |   | Income        |   | Earnings |   | ESOP        |   | Income        |   | Total  |   |
| **Balance                December 31, 2003**         |   | $         | 28,999  |                        |   | 6,291,430  |   | $        | 9,739  |                 | $      | 3,307         |   | $        | 4,981  |        |   |          |   | $      | 8,237  |   |   |   |   | $ | (3,088 | ) | $ | 52,175 |   |
|                                                 |   |      |    |                        |   |       |   |     |   |                 |   |          |   |     |   |        |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Issuance                of common stock              |   |      |    |                        |   | 800,000    |   |     | 15,215 |                 |   |          |   |     |   |        |   |          |   |   |   |   |   |   |   |   |   |   |   | 15,215 |   |
| Stock                options exercised               |   |      |    |                        |   | 83,944     |   |     | 229    |                 |   |          |   |     |   |        |   |          |   |   |   |   |   |   |   |   |   |   |   | 229 |   |
| Purchase                of treasury stock            |   |      |    |                        |   | (72,200    | )      |     | (1,396 | )                    |   |          |   |     |   |        |   |          |   |   |   |   |   |   |   |   |   |   |   | (1,396 | ) |
| Purchase                of common stock              |   |      |    |                        |   |       |   |     |   |                 |   |          |   |     |   |        |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |
| to                pre-fund ESOP                      |   |      |    |                        |   |       |   |     |   |                 |   |          |   |     |   |        |   |          |   |   |   |   | $ | (6,997 | ) |   |   |   |   | (6,997 | ) |
| Redemption                of Series A                |   |      |    |                        |   |       |   |     |   |                 |   |          |   |     |   |        |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |
| preferred                stock                       |   |      | (2,450  | )                           |   |       |   |     |   |                 |   |          |   |     |   |        |   |          |   |   |   |   |   |   |   |   |   |   |   | (2,450 | ) |
| Redemption                and conversion of          |   |      |    |                        |   |       |   |     |   |                 |   |          |   |     |   |        |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Series                B preferred stock to           |   |      |    |                        |   |       |   |     |   |                 |   |          |   |     |   |        |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |
| common                stock                          |   |      | (26,547 | )                           |   | 1,727,182  |   |     | 26,491 |                 |   |          |   |     |   |        |   |          |   |   |   |   |   |   |   |   |   |   |   | (56 | ) |
| Cash                paid for fractional shares of    |   |      |    |                        |   |       |   |     |   |                 |   |          |   |     |   |        |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Series                B stock conversion             |   |      | (2      | )                           |   |       |   |     |   |                 |   |          |   |     |   |        |   |          |   |   |   |   |   |   |   |   |   |   |   | (2 | ) |
| Stock                dividends distributed           |   |      |    |                        |   |       |   |     | 4,966  |                 |   |          |   |     | (4,966 | )           |   |          |   |   |   |   |   |   |   |   |   |   |   | - |   |
| Cash                paid for fractional shares       |   |      |    |                        |   |       |   |     |   |                 |   |          |   |     |   |        |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |
| of                stock dividend distribution        |   |      |    |                        |   |       |   |     |   |                 |   |          |   |     | (15    | )           |   |          |   |   |   |   |   |   |   |   |   |   |   | (15 | ) |
| Cash                paid in excess of cost to redeem |   |      |    |                        |   |       |   |     |   |                 |   |          |   |     |   |        |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |
| and                convert preferred stock           |   |      |    |                        |   |       |   |     |   |                 |   |          |   |     |   |        |   |          |   |   | (68    | ) |   |   |   |   |   |   |   | (68 | ) |
| Cash                dividends paid on                |   |      |    |                        |   |       |   |     |   |                 |   |          |   |     |   |        |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |
| common                stock                          |   |      |    |                        |   |       |   |     |   |                 |   |          |   |     |   |        |   |          |   |   | (312   | ) |   |   |   |   |   |   |   | (312 | ) |
| Cash                dividends paid on                |   |      |    |                        |   |       |   |     |   |                 |   |          |   |     |   |        |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |
| preferred                stock                       |   |      |    |                        |   |       |   |     |   |                 |   |          |   |     |   |        |   |          |   |   | (702   | ) |   |   |   |   |   |   |   | (702 | ) |
| Comprehensive                income                  |   |      |    |                        |   |       |   |     |   |                 |   |          |   |     |   |        |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                Income                            |   |      |    |                        |   |       |   |     |   |                 |   |          |   |     |   |        | $      | 6,254         |   |   | 6,254  |   |   |   |   |   |   |   |   | 6,254 |   |
| Unrealized                security holding           |   |      |    |                        |   |       |   |     |   |                 |   |          |   |     |   |        |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |
| losses                (net of $2,247                 |   |      |    |                        |   |       |   |     |   |                 |   |          |   |     |   |        |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |
| tax                benefit)                          |   |      |    |                        |   |       |   |     |   |                 |   |          |   |     |   |        |   | (3,235        | )      |   |   |   |   |   |   |   | (3,235 | ) |   | (3,235 | ) |
| Less                reclassification                 |   |      |    |                        |   |       |   |     |   |                 |   |          |   |     |   |        |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |
| adjustment                for realized               |   |      |    |                        |   |       |   |     |   |                 |   |          |   |     |   |        |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |
| gains                (net of $85                     |   |      |    |                        |   |       |   |     |   |                 |   |          |   |     |   |        |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |
| tax                provision)                        |   |      |    |                        |   |       |   |     |   |                 |   |          |   |     |   |        |   | 122           |   |   |   |   |   |   |   |   | 122 |   |   | 122 |   |
| Total                comprehensive income            |   |      |    |                        |   |       |   |     |   |                 |   |          |   |     |   |        | $      | 3,141         |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Balance,                June 30, 2004**            |   | $         | -       |                        |   | 8,830,356  |   | $        | 55,244 |                 | $      | 3,307         |   | $        | -      |        |   |          |   | $      | 13,409 |   | $ | (6,997 | ) | $ | (6,201 | ) | $ | 58,762 |   |

|                                                  |   |      |   |                        |   |       |   |    |   |          |   |     |   |        |   | Accumulated   |   |   |   |
|-------------------------------------------------------|--------|-----------|--------|-----------------------------|--------|------------|--------|---------|--------|---------------|--------|----------|--------|-------------|--------|---------------|--------|--------|--------|
|                                                  |   | Perpetual |   | Common                Stock |   | Additional |   |    |   |          |   |     |   | Other       |   |          |   |
|                                                  |   | Preferred |   | Number                of    |   |       |   | Paid-in |   | Comprehensive |   | Retained |   | Unallocated |   | Comprehensive |   |   |   |
|                                                  |   | Stock     |   | Shares                      |   | Amount     |   | Capital |   | Income        |   | Earnings |   | ESOP        |   | Income        |   | Total  |   |
| **Balance                December 31, 2004**          |   |      |   |                        |   | 9,581,941  |   | $       | 70,536 |          | $      | 3,772    |   |        |   |          | $      | 20,513 |   | $ | (6,856 | ) | $ | (2,738 | ) | $ | 85,227 |   |
|                                                  |   |      |   |                        |   |       |   |    |   |          |   |     |   |        |   |          |   |   |   |   |   |   |   |   |   |   |   |   |
| Issuance                of preferred stock            |   | $         | 9,675  |                        |   |       |   |    |   |          |   |     |   |        |   |          |   |   |   |   |   |   |   |   |   |   | 9,675 |   |
| Stock                options exercised                |   |      |   |                        |   | 127,475    |   |    | 751    |          |   |     |   |        |   |          |   |   |   |   |   |   |   |   |   |   | 751 |   |
| Warrants                exercised                     |   |      |   |                        |   | 50,350     |   |    | 343    |          |   |     |   |        |   |          |   |   |   |   |   |   |   |   |   |   | 343 |   |
| Additional                investment rights exercised |   |      |   |                        |   | 120,775    |   |    | 3,534  |          |   |     |   |        |   |          |   |   |   |   |   |   |   |   |   |   | 3,534 |   |
| Purchase                of treasury stock             |   |      |   |                        |   | (202,170   | )      |    | (6,003 | )             |   |     |   |        |   |          |   |   |   |   |   |   |   |   |   |   | (6,003 | ) |
| Release                of ESOP shares                 |   |      |   |                        |   |       |   |    |   |          |   | 86       |   |        |   |          |   |   |   |   | 280 |   |   |   |   |   | 366 |   |
| Cash                dividends declared on preferred   |   |      |   |                        |   |       |   |    |   |          |   |     |   |        |   |          |   |   |   |   |   |   |   |   |   |   |   |   |
| stock                                                 |   |      |   |                        |   |       |   |    |   |          |   |     |   |        |   |          |   | (149   | )      |   |   |   |   |   |   |   | (149 | ) |
| Cash                dividends paid on common          |   |      |   |                        |   |       |   |    |   |          |   |     |   |        |   |          |   |   |   |   |   |   |   |   |   |   |   |   |
| stock                                                 |   |      |   |                        |   |       |   |    |   |          |   |     |   |        |   |          |   | (1,049 | )      |   |   |   |   |   |   |   | (1,049 | ) |
| Comprehensive                income                   |   |      |   |                        |   |       |   |    |   |          |   |     |   |        |   |          |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                Income                             |   |      |   |                        |   |       |   |    |   |          |   |     |   | $           | 9,175  |          |   | 9,175  |   |   |   |   |   |   |   |   | 9,175 |   |
| Unrealized                security holding            |   |      |   |                        |   |       |   |    |   |          |   |     |   |        |   |          |   |   |   |   |   |   |   |   |   |   |   |   |
| gains                (net of $410                     |   |      |   |                        |   |       |   |    |   |          |   |     |   |        |   |          |   |   |   |   |   |   |   |   |   |   |   |   |
| tax                provision)                         |   |      |   |                        |   |       |   |    |   |          |   |     |   |        | 566    |          |   |   |   |   |   |   |   | 566 |   |   | 566 |   |
| Total                comprehensive income             |   |      |   |                        |   |       |   |    |   |          |   |     |   | $           | 9,741  |          |   |   |   |   |   |   |   |   |   |   |   |   |
| **Balance,                June 30, 2005**             |   | $         | 9,675  |                        |   | 9,678,371  |   | $       | 69,161 |          | $      | 3,858    |   |        |   |          | $      | 28,490 |   | $ | (6,576 | ) | $ | (2,172 | ) | $ | 102,436 |   |

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Table          of Contents

**VINEYARD      NATIONAL BANCORP AND SUBSIDIARY**

**CONSOLIDATED      STATEMENTS OF CASH FLOWS**

**FOR      THE SIX MONTHS ENDED JUNE 30, 2005 AND 2004**

| (Dollars                in Thousands)                                       |   | Six                Months Ended June 30, |     |
|-----------------------------------------------------------------------------|--------|------------------------------------------|----------|
|                                                                        |   | 2005                                     |     | 2004 |   |
|                                                                        |   | (unaudited)                              |     | (unaudited) |   |
| **Cash                Flows From Operating Activities**                     |   |                                     |     |   |   |
| Net                Income                                                   |   | $                                        | 9,175    |   | $ | 6,254 |   |
| Adjustments                to Reconcile Net Income                          |   |                                     |     |   |   |   |   |
| to                Net Cash Provided by Operating Activities                 |   |                                     |     |   |   |   |   |
|                                                                        |   |                                     |     |   |   |   |   |
| Depreciation                                                                |   |                                     | 1,301    |   |   | 890 |   |
| Investment                securities accretion/amortization                 |   |                                     | 698      |   |   | 216 |   |
| Provision                for possible loan losses                           |   |                                     | 850      |   |   | 3,483 |   |
| FHLB                stock dividends                                         |   |                                     | (234     | ) |   | (176 | ) |
| Amortization                of intangible assets                            |   |                                     | 6        |   |   | 6 |   |
| Amortization                of SBA servicing asset                          |   |                                     | 283      |   |   | 65 |   |
| Amortization                of SBA interest only strip                      |   |                                     | 43       |   |   | 12 |   |
| Reinvestment                of mutual fund interest                         |   |                                     | (38      | ) |   | - |   |
| Release                of ESOP shares                                       |   |                                     | 366      |   |   | - |   |
| Decrease                in deferred tax assets                              |   |                                     | -        |   |   | 851 |   |
| Increase/(decrease)                in taxes payable                         |   |                                     | 1,218    |   |   | (688 | ) |
| Increase                in other assets                                     |   |                                     | (1,369   | ) |   | (2,614 | ) |
| Decrease                in cash surrender value of life insurance policies  |   |                                     | 4        |   |   | 29 |   |
| Gain                on sale of other real estate owned                      |   |                                     | -        |   |   | (56 | ) |
| Gain                on sale of loans                                        |   |                                     | (471     | ) |   | (645 | ) |
| Gain                on sale of investment securities                        |   |                                     | -        |   |   | (207 | ) |
| Increase                in unearned loan fees                               |   |                                     | 672      |   |   | 7 |   |
| Increase                in interest receivable                              |   |                                     | (1,373   | ) |   | (1,429 | ) |
| (Decrease)/increase                in interest payable                      |   |                                     | (89      | ) |   | 211 |   |
| Decrease                in accrued expense and other liabilities            |   |                                     | (307     | ) |   | (598 | ) |
| Total                Adjustment                                             |   |                                     | 1,550    |   |   | (643 | ) |
| **Net                Cash Provided By Operating Activities**                |   |                                     | 10,725   |   |   | 5,611 |   |
|                                                                        |   |                                     |     |   |   |   |   |
| **Cash                Flows From Investing Activities**                     |   |                                     |     |   |   |   |   |
| Proceeds                from sales of investment securities/mortgage-backed |   |                                     |     |   |   |   |   |
| securities                available-for-sale                                |   |                                     | -        |   |   | 26,029 |   |
| Proceeds                from principal reductions and maturities of         |   |                                     |     |   |   |   |   |
| mortgage-backed                securities available-for-sale                |   |                                     | 26,713   |   |   | 13,369 |   |
| Purchase                of mortgage-backed securities available-for-sale    |   |                                     | (95,653  | ) |   | - |   |
| Purchase                of FHLB & other stock                           |   |                                     | (7,721   | ) |   | (3,090 | ) |
| Redemption                of FHLB stock                                     |   |                                     | 1,234    |   |   | - |   |
| Recoveries                on loans previously written off                   |   |                                     | 25       |   |   | 72 |   |
| Net                loans made to customers and principal                    |   |                                     |     |   |   |   |   |
| collection                of loans                                          |   |                                     | (218,411 | ) |   | (342,588 | ) |
| Capital                expenditures                                         |   |                                     | (5,410   | ) |   | (1,778 | ) |
| **Net                Cash Used In Investing Activities**                    |   |                                     | (299,223 | ) |   | (307,986 | ) |

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**VINEYARD      NATIONAL BANCORP AND SUBSIDIARY**

**CONSOLIDATED      STATEMENTS OF CASH FLOWS**

**FOR      THE SIX MONTHS ENDED JUNE 30, 2005 AND 2004**

**(continued)**

| (Dollars                in Thousands)                                                    |   |   |    |   |   |
|------------------------------------------------------------------------------------------|--------|--------|---------|--------|--------|
|                                                                                     |   | 2005   |    | 2004   |   |
| **Cash                Flows From Financing Activities**                                  |   |   |    |   |   |
| Net                (decrease)/increase in demand deposits, NOW accounts,                 |   |   |    |   |   |
| savings                accounts, and money market deposits                               |   |   | (17,611 | )      |   | 103,270 |   |
| Net                increase in certificates of deposits                                  |   |   | 86,191  |   |   | 97,946 |   |
| Proceeds                from issuance of junior subordinated debentures                  |   |   | 10,000  |   |   | 22,000 |   |
| Issuance                of common stock                                                  |   |   | -       |   |   | 15,215 |   |
| Issuance                of preferred stock                                               |   |   | 9,675   |   |   | - |   |
| Net                change in FHLB advances                                               |   |   |    |   |   |   |   |
| and                other borrowings                                                      |   |   | 211,000 |   |   | 31,000 |   |
| Purchase                of treasury stock                                                |   |   | (6,003  | )      |   | (1,396 | ) |
| Redemption                of preferred stock (including                                  |   |   |    |   |   |   |   |
| cash                paid in excess of cost)                                              |   |   | -       |   |   | (2,574 | ) |
| Dividends                paid on preferred stock                                         |   |   | -       |   |   | (702 | ) |
| Dividends                paid on common stock                                            |   |   | (1,049  | )      |   | (312 | ) |
| Cash                paid on fractional shares of stock dividend                          |   |   | -       |   |   | (15 | ) |
| Cash                paid on fractional shares of preferred stock conversion              |   |   | -       |   |   | (2 | ) |
| Proceeds                from exercise of warrants                                        |   |   | 343     |   |   | - |   |
| Net                proceeds from exercise of additional investment rights                |   |   | 3,534   |   |   | - |   |
| Proceeds                from exercise of stock options                                   |   |   | 751     |   |   | 229 |   |
| **Net                Cash Provided By Financing Activities**                             |   |   | 296,841 |   |   | 264,659 |   |
|                                                                                     |   |   |    |   |   |   |   |
| **Net                Increase / (Decrease) in Cash and Cash                Equivalents** |   |   | 8,343   |   |   | (37,716 | ) |
|                                                                                     |   |   |    |   |   |   |   |
| **Cash                and Cash Equivalents**,                Beginning of year           |   |   | 22,551  |   |   | 58,242 |   |
|                                                                                     |   |   |    |   |   |   |   |
| **Cash                and Cash Equivalents**,                End of period               |   | $      | 30,894  |   | $      | 20,526 |   |
|                                                                                     |   |   |    |   |   |   |   |
| **Supplemental                Information**                                              |   |   |    |   |   |   |   |
| Net                change in unrealized loss on investment securities                    |   | $      | (976    | )      | $      | 5,275 |   |
| Interest                paid                                                             |   | $      | 17,731  |   | $      | 8,933 |   |
| Income                tax paid                                                           |   | $      | 3,365   |   | $      | 4,160 |   |
|                                                                                     |   |   |    |   |   |   |   |
|                                                                                     |   |   |    |   |   |   |   |
| See                accompanying notes to financial statements.                           |   |   |    |   |   |   |   |

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

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*"Accounting      for Certain Investments in Debt and Equity Securities," *

*Accounting      for Contingencies*
*Accounting      by Creditors for Impairment of a Loan*
*Accounting      by Creditors for Impairment of a Loan-Income Recognition and      Disclosure*

*“Reporting      Comprehensive Income,*

*"Accounting      Changes and Error Corrections"*

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

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**Note      #2 - Commitments and Contingencies**

**Note      #3 - Junior Subordinated Debentures**

**Note      #4 - Issuance of Capital Stock**

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Table          of Contents

**Note      #5 - Dividends and Stock Splits**

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

*Employers’      Accounting for Employee Stock Ownership Plans*

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**Note      #7 - Earnings per Share and Book Value**

| (Dollars                in Thousands)                      |   | Three                Months Ended June 30, |   | Six                Months Ended June 30, |   |
|------------------------------------------------------------|--------|--------------------------------------------|--------|------------------------------------------|--------|
|                                                       |   | 2005                                       |   | 2004                                     |   | 2005 |   | 2004 |   |
|                                                       |   | Income                                     |   | Shares                                   |   | Income |   | Shares |   | Income |   | Shares |   | Income |   | Shares |   |
| Net                income as reported                      |   | $                                          | 4,758  |                                     |   |   |   | $ | 3,285 |   |   |   |   | $ | 9,175 |   |   |   |   | $ | 6,254 |   |   |   |   |
| Less:                preferred stock dividends declared    |   |                                       | (149   | )                                        |   |   |   |   | (256 | ) |   |   |   |   | (149 | ) |   |   |   |   | (702 | ) |   |   |   |
| Less:                excess cost to redeem preferred stock |   |                                       |   |                                     |   |   |   |   | (68 | ) |   |   |   |   |   |   |   |   |   |   | (68 | ) |   |   |   |
| Shares                outstanding at end of period         |   |                                       |   |                                     |   | 9,678,371 |   |   |   |   |   | 8,830,356 |   |   |   |   |   | 9,678,371 |   |   |   |   |   | 8,830,356 |   |
| Unreleased                and unallocated ESOP shares      |   |                                       |   |                                     |   | (280,083 | ) |   |   |   |   | (298,000 | ) |   |   |   |   | (280,083 | ) |   |   |   |   | (298,000 | ) |
| Impact                of weighting shares purchased/       |   |                                       |   |                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| (issued)                during the period                  |   |                                       |   |                                     |   | (117,649 | ) |   |   |   |   | (1,488,130 | ) |   |   |   |   | (107,822 | ) |   |   |   |   | (1,851,771 | ) |
| Used                in basic EPS                           |   | $                                          | 4,609  |                                     |   | 9,280,639 |   | $ | 2,961 |   |   | 7,044,226 |   | $ | 9,026 |   |   | 9,290,466 |   | $ | 5,484 |   |   | 6,680,585 |   |
| Plus:                anti-dilutive effect of Series B      |   |                                       |   |                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| dividends                and redemption                    |   |                                       | -      |                                     |   |   |   |   | 249 |   |   |   |   |   | - |   |   |   |   |   | 651 |   |   |   |   |
| Dilutive                effect of outstanding              |   |                                       |   |                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| stock                options and warrants                  |   |                                       |   |                                     |   | 415,768 |   |   |   |   |   | 1,540,001 |   |   |   |   |   | 463,233 |   |   |   |   |   | 1,988,197 |   |
| Used                in diluted EPS                         |   | $                                          | 4,609  |                                     |   | 9,696,407 |   | $ | 3,210 |   |   | 8,584,227 |   | $ | 9,026 |   |   | 9,753,699 |   | $ | 6,135 |   |   | 8,668,782 |   |

| (Dollars                in Thousands, except per share data)          |   | Three                Months Ended June 30, |      | Six                Months Ended June 30, |   |
|-----------------------------------------------------------------------|--------|--------------------------------------------|-----------|------------------------------------------|--------|
|                                                                  |   | 2005                                       |      | 2004                                     |   | 2005 |   | 2004 |   |
| Net                income:                                            |   |                                       |      |                                     |   |   |   |   |   |
| As                reported                                            |   | $                                          | 4,758     |                                     | $      | 3,285 |   | $ | 9,175 |   | $ | 6,254 |   |
| Less:                preferred stock dividends declared               |   |                                       | (149      | )                                        |   | (256 | ) |   | (149 | ) |   | (702 | ) |
| Less:                excess cost to redeem preferred stock            |   |                                       | -         |                                     |   | (68 | ) |   | - |   |   | (68 | ) |
| Stock-based                compensation that would have been reported |   |                                       |      |                                     |   |   |   |   |   |   |   |   |   |
| using                the fair value method of SFAS No.123             |   |                                       | (14       | )                                        |   | (16 | ) |   | (67 | ) |   | (79 | ) |
| Pro                forma net income - used in basic EPS               |   |                                       | 4,595     |                                     |   | 2,945 |   |   | 8,959 |   |   | 5,405 |   |
| Add:                anti-dilutive effects of Series B dividends       |   |                                       | -         |                                     |   | 249 |   |   | - |   |   | 651 |   |
| Pro                forma net income - used in diluted EPS             |   | $                                          | 4,595     |                                     | $      | 3,194 |   | $ | 8,959 |   | $ | 6,056 |   |
|                                                                  |   |                                       |      |                                     |   |   |   |   |   |   |   |   |   |
| Weighted                average shares outstanding - basic            |   |                                       | 9,280,639 |                                     |   | 7,044,226 |   |   | 9,290,466 |   |   | 6,680,585 |   |
| Weighted                average shares outstanding - diluted          |   |                                       | 9,696,407 |                                     |   | 8,584,227 |   |   | 9,753,699 |   |   | 8,668,782 |   |
|                                                                  |   |                                       |      |                                     |   |   |   |   |   |   |   |   |   |
| Basic                EPS                                              |   |                                       |      |                                     |   |   |   |   |   |   |   |   |   |
| As                reported                                            |   | $                                          | 0.50      |                                     | $      | 0.42 |   | $ | 0.97 |   | $ | 0.82 |   |
| Pro                forma                                              |   | $                                          | 0.50      |                                     | $      | 0.42 |   | $ | 0.96 |   | $ | 0.81 |   |
|                                                                  |   |                                       |      |                                     |   |   |   |   |   |   |   |   |   |
| Diluted                EPS                                            |   |                                       |      |                                     |   |   |   |   |   |   |   |   |   |
| As                reported                                            |   | $                                          | 0.48      |                                     | $      | 0.37 |   | $ | 0.93 |   | $ | 0.71 |   |
| Pro                forma                                              |   | $                                          | 0.47      |                                     | $      | 0.37 |   | $ | 0.92 |   | $ | 0.70 |   |

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|                                                           |   | As                of         |      |
|----------------------------------------------------------------|--------|------------------------------|-----------|
|                                                           |   | June                30, 2005 |      | December                31, 2004 |   |
|                                                           |   |                         |      |   |   |
| Period-end                shares outstanding                   |   |                         | 9,678,371 |   |   | 9,581,941 |   |
| Unreleased                and unallocated ESOP shares     |   |                         | (280,083  | ) |   | (291,994 | ) |
| Used                in basic book value per common stock       |   |                         | 9,398,288 |   |   | 9,289,947 |   |
| Warrants                (1)                                    |   |                         | 177,640   |   |   | 227,990 |   |
| Additional                Investment Rights                (2) |   |                         | -         |   |   | 120,775 |   |
| Used                in book value per common stock,            |   |                         |      |   |   |   |   |
| assuming                exercise of warrants and               |   |                         |      |   |   |   |   |
| additional                investment rights                    |   |                         | 9,575,928 |   |   | 9,638,712 |   |
|                                                           |   |                         |      |   |   |   |   |
| Book                value per common stock, basic              |   | $                            | 9.87      |   | $ | 9.17 |   |
| Book                value per common stock, assuming           |   |                         |      |   |   |   |   |
| exercise                of warrants and additional             |   |                         |      |   |   |   |   |
| investment                rights                               |   | $                            | 10.12     |   | $ | 9.69 |   |

**_____________________**

**Note      #8 - Subsequent Event**

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**REPORT        OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING        FIRM**

*/s/Vavrinek,        Trine Day, *
*Co.,        LLP *

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Table          of Contents

**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*

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*Expanded        Product Offering.*

|   | · | In                  2002, the Bank also began originating SBA loans and 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 it serves. During June 2005, the Company announced                  the opening                  of a new loan production office in Carlsbad, California, which                  will focus                  partially on SBA loans. SBA loans amounted to $18.8 million and $18.0                  million at June 30, 2005 and December 31, 2004, respectively, net                  of                  guaranteed participations sold of $33.7 million and $29.0 million,                  respectively. Religious loans amounted to $27.2 million and                  $23.8 million at June 30, 2005 and December 31, 2004, respectively. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | In                  2003, the Bank established an income property lending division                  to service                  the growing markets for commercial real estate and apartments in                  Southern                  California. 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. During June                  2005, the                  Company announced the opening of a new loan production office in                  Carlsbad,                  California, which will focus partially on income property lending,                  in                  addition to its focus on SBA loans discussed above. At June 30,                  2005 and                  December 31, 2004, the outstanding balance of loans generated from                  this                  division amounted to $168.5 million and $91.6 million, respectively,                  for                  commercial real estate loans and $242.7 million and $177.9 million,                  respectively, for apartment loans. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | 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, offering promotional rates for new customers, and providing                  value-added consumer services by introducing additional products                  and                  services. Each of the Bank’s eleven full-service banking centers has a                  business plan catering specifically to the needs of consumers in                  that                  banking center market. Based on the demographics of the target                  market,                  each banking center tailors its offering of financial services                  and                  products for its customer base. Business deposits have been pursued                  by                  offering an expanded courier network, by introduction of cash management                  products and by specific targeting of small business customers.                  The                  Company’s core deposit franchise has been built around the community                  banking system, which has resulted in deposit growth of 7.1% for                  the six                  months ended June 30, 2005 and 33.4% for the same period ended                  in 2004.                  Consolidated total deposits amounted to $1.0 billion at June 30, 2005                  and $965.5 million at December 31, 2004. Non-interest bearing demand                  deposits amounted to $138.0 million at June 30, 2005 and $127.5                  million at December 31, 2004. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | In                  2004, the Bank introduced the Private Reserve Group of the Bank,                  which is                  a virtual group centered in each of the community banking centers                  located                  in Manhattan Beach, San Diego, Anaheim, and Irvine, California.                  The                  Private Reserve Group will provide exclusive and flexible relationship                  management to entrepreneurs and high-end customers, and specialized                  services including cash management and specialty deposit relationships.                  In                  order to accommodate the Private Reserve Group, the Bank converted                  the                  loan production offices in San Diego and Irvine, California into                  full-service depository banking centers in 2005. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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*Loan        and Deposit Growth. *

*Relationship        Banking Facilities.*

*Strategic        Expansion. *

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*Asset        Growth.*

**Results        of Operations**

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*Net        Interest Income*

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| (Dollars                in Thousands)                   |   | **Three                Months Ended June 30,** |      |
|---------------------------------------------------------|--------|------------------------------------------------|-----------|
|                                                    |   | **2005**                                       |      | **2004** |   |
|                                                    |   | **Average**                                    |      |   |   | **Average** |   | **Average** |   |   |   | **Average** |   |
|                                                    |   | **Balance**                                    |      | **Interest** |   | **Yield/Cost** |   | **Balance** |   | **Interest** |   | **Yield/Cost** |   |
| Assets                                                  |   |                                           |      |   |   |   |   |   |   |   |   |   |   |
| Loans (1)                                          |   | $                                              | 1,158,526 |   | $ | 22,703 |   |   | 7.9 | % | $ | 911,682 |   | $ | 16,156 |   |   | 7.1 | % |
| Investment                securities                (2) |   |                                           | 303,456   |   |   | 3,190 |   |   | 4.2 | % |   | 174,786 |   |   | 1,807 |   |   | 4.2 | % |
| Other                investments                        |   |                                           | 15,071    |   |   | 165 |   |   | 4.4 | % |   | 12,418 |   |   | 93 |   |   | 3.0 | % |
| Total                interest-earning assets            |   |                                           | 1,477,053 |   |   | 26,058 |   |   | 7.1 | % |   | 1,098,886 |   |   | 18,056 |   |   | 6.6 | % |
| Other                assets                             |   |                                           | 63,063    |   |   |   |   |   |   |   |   | 44,997 |   |   |   |   |   |   |   |
| Less:                allowance for possible loan losses |   |                                           | (13,392   | ) |   |   |   |   |   |   |   | (10,092 | ) |   |   |   |   |   |   |
| Total                average assets                     |   | $                                              | 1,526,724 |   |   |   |   |   |   |   | $ | 1,133,791 |   |   |   |   |   |   |   |
|                                                    |   |                                           |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Liabilities                and Stockholders' Equity     |   |                                           |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Savings                deposits (3)                     |   | $                                              | 424,020   |   |   | 2,778 |   |   | 2.6 | % | $ | 342,548 |   |   | 1,616 |   |   | 1.9 | % |
| Time                deposits                            |   |                                           | 483,913   |   |   | 3,607 |   |   | 3.0 | % |   | 326,055 |   |   | 1,942 |   |   | 2.4 | % |
| Subordinated                debt                        |   |                                           | 5,000     |   |   | 81 |   |   | 6.4 | % |   | 5,000 |   |   | 55 |   |   | 4.4 | % |
| Junior                subordinated debentures           |   |                                           | 79,636    |   |   | 1,222 |   |   | 6.2 | % |   | 54,439 |   |   | 603 |   |   | 4.5 | % |
| Short                term borrowings                    |   |                                           | 299,169   |   |   | 2,262 |   |   | 3.0 | % |   | 237,285 |   |   | 861 |   |   | 1.5 | % |
| Total                interest-bearing liabilities       |   |                                           | 1,291,738 |   |   | 9,950 |   |   | 3.1 | % |   | 965,327 |   |   | 5,077 |   |   | 2.1 | % |
| Demand                deposits                          |   |                                           | 132,588   |   |   |   |   |   |   |   |   | 112,474 |   |   |   |   |   |   |   |
| Other                liabilities                        |   |                                           | 8,103     |   |   |   |   |   |   |   |   | 6,567 |   |   |   |   |   |   |   |
| Total                average liabilities                |   |                                           | 1,432,429 |   |   |   |   |   |   |   |   | 1,084,368 |   |   |   |   |   |   |   |
| Preferred                stock equity                   |   |                                           | 7,973     |   |   |   |   |   |   |   |   | 14,059 |   |   |   |   |   |   |   |
| Common                stock equity                      |   |                                           | 86,322    |   |   |   |   |   |   |   |   | 35,364 |   |   |   |   |   |   |   |
| Total                stockholders' equity               |   |                                           | 94,295    |   |   |   |   |   |   |   |   | 49,423 |   |   |   |   |   |   |   |
| Total                liabilities and                    |   |                                           |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| stockholders'                equity                     |   | $                                              | 1,526,724 |   |   |   |   |   |   |   | $ | 1,133,791 |   |   |   |   |   |   |   |
|                                                    |   |                                           |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                interest spread (4)                  |   |                                           |      |   |   |   |   |   | 4.0 | % |   |   |   |   |   |   |   | 4.5 | % |
| Net                interest income                      |   |                                           |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |  |   |
| and                net interest margin (5)              |   |                                           |      |   | $ | 16,108 |   |   | 4.4 | % |   |   |   | $ | 12,979 |   |   | 4.8 | % |

----

Table          of Contents

| (Dollars                in Thousands)                   |   | **Six                Months Ended June 30,** |      |
|---------------------------------------------------------|--------|----------------------------------------------|-----------|
|                                                    |   | **2005**                                     |      | **2004** |   |
|                                                    |   | **Average**                                  |      |   |   | **Average** |   | **Average** |   |   |   | **Average** |   |
|                                                    |   | **Balance**                                  |      | **Interest** |   | **Yield/Cost** |   | **Balance** |   | **Interest** |   | **Yield/Cost** |   |
| Assets                                                  |   |                                         |      |   |   |   |   |   |   |   |   |   |   |
| Loans (1)                                          |   | $                                            | 1,099,306 |   | $ | 42,419 |   |   | 7.8 | % | $ | 804,980 |   | $ | 29,238 |   |   | 7.3 | % |
| Investment                securities                (2) |   |                                         | 286,613   |   |   | 6,062 |   |   | 4.2 | % |   | 189,872 |   |   | 3,817 |   |   | 4.0 | % |
| Other                investments                        |   |                                         | 13,343    |   |   | 271 |   |   | 4.1 | % |   | 10,879 |   |   | 183 |   |   | 3.4 | % |
| Total                interest-earning assets            |   |                                         | 1,399,262 |   |   | 48,752 |   |   | 7.0 | % |   | 1,005,731 |   |   | 33,238 |   |   | 6.6 | % |
| Other                assets                             |   |                                         | 61,282    |   |   |   |   |   |   |   |   | 43,566 |   |   |   |   |   |   |   |
| Less:                allowance for possible loan losses |   |                                         | (13,201   | ) |   |   |   |   |   |   |   | (9,079 | ) |   |   |   |   |   |   |
| Total                average assets                     |   | $                                            | 1,447,343 |   |   |   |   |   |   |   | $ | 1,040,218 |   |   |   |   |   |   |   |
|                                                    |   |                                         |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Liabilities                and Stockholders' Equity     |   |                                         |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Savings                deposits (3)                     |   | $                                            | 441,381   |   |   | 5,481 |   |   | 2.5 | % | $ | 320,365 |   |   | 3,000 |   |   | 1.9 | % |
| Time                deposits                            |   |                                         | 444,729   |   |   | 6,301 |   |   | 2.9 | % |   | 298,618 |   |   | 3,576 |   |   | 2.4 | % |
| Subordinated                debt                        |   |                                         | 5,000     |   |   | 154 |   |   | 6.1 | % |   | 5,000 |   |   | 111 |   |   | 4.5 | % |
| Junior                subordinated debentures           |   |                                         | 75,411    |   |   | 2,222 |   |   | 5.9 | % |   | 46,689 |   |   | 1,038 |   |   | 4.5 | % |
| Short                term borrowings                    |   |                                         | 253,209   |   |   | 3,484 |   |   | 2.8 | % |   | 205,107 |   |   | 1,420 |   |   | 1.4 | % |
| Total                interest-bearing liabilities       |   |                                         | 1,219,730 |   |   | 17,642 |   |   | 2.9 | % |   | 875,779 |   |   | 9,145 |   |   | 2.1 | % |
| Demand                deposits                          |   |                                         | 129,087   |   |   |   |   |   |   |   |   | 105,868 |   |   |   |   |   |   |   |
| Other                liabilities                        |   |                                         | 8,510     |   |   |   |   |   |   |   |   | 6,983 |   |   |   |   |   |   |   |
| Total                average liabilities                |   |                                         | 1,357,327 |   |   |   |   |   |   |   |   | 988,630 |   |   |   |   |   |   |   |
| Preferred                stock equity                   |   |                                         | 4,009     |   |   |   |   |   |   |   |   | 21,529 |   |   |   |   |   |   |   |
| Common                stock equity                      |   |                                         | 86,007    |   |   |   |   |   |   |   |   | 30,059 |   |   |   |   |   |   |   |
| Total                stockholders' equity               |   |                                         | 90,016    |   |   |   |   |   |   |   |   | 51,588 |   |   |   |   |   |   |   |
| Total                liabilities and                    |   |                                         |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| stockholders'                equity                     |   | $                                            | 1,447,343 |   |   |   |   |   |   |   | $ | 1,040,218 |   |   |   |   |   |   |   |
|                                                    |   |                                         |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                interest spread (4)                  |   |                                         |      |   |   |   |   |   | 4.1 | % |   |   |   |   |   |   |   | 4.5 | % |
| Net                interest income                      |   |                                         |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |  |   |
| and                net interest margin (5)              |   |                                         |      |   | $ | 31,110 |   |   | 4.5 | % |   |   |   | $ | 24,093 |   |   | 4.8 | % |

| (1) | Interest                  on loans includes loan fees, which totaled $2.6 million and $2.4                  million                  for the three months ended June 30, 2005 and 2004, respectively,                  and $5.1                  million and $4.7 million for the six months ended June 30, 2005                  and 2004,                  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 Possible Loan Losses*

|   | For                  the three months ended June 30, 2005 and 2004, the provision for                  possible                  loan losses was $0.9 million and $1.7 million, respectively, and                  was $0.9                  million and $3.5 million for the six months ended June 30, 2005                  and 2004,                  respectively. The provision for possible loan losses was not increased                  for                  the first quarter of 2005 due to management’s assessment that the current                  allowance was sufficient to support the current loan portfolio                  as well as                  the inherent risks of construction and commercial loans. However,                  the loan                  portfolio growth during the second quarter of 2005 caused management                  to                  increase the provision. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | The                  Company’s allowance for possible loan losses was $13.9 million at June                  30,                  2005 and $13.0 million at December 31, 2004. Additions to the allowance                  are affected through the provision for possible loan losses. Also                  affecting the allowance are loans charged off and loans recovered.                  For the                  six months ended June 30, 2005 and 2004, the Company had approximately                  $25,000 in net recoveries and $0.2 million in net charge offs,                  respectively. Net charge-offs were less than 0.01% of the loan                  portfolio                  for both periods. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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Table            of Contents

|   | Although                  the Company maintains an allowance for possible loan losses at                  a level it                  considers to be adequate to provide for losses, based on presently                  known                  conditions, there can be no assurance that such losses will not                  exceed the                  estimated amounts, thereby adversely affecting future results of                  operations. The calculation for the adequacy of the allowance for                  possible                  loan losses, and therefore the requisite amount of the provision                  for                  possible loan losses, is based on several factors, including market                  condition, underlying loan collateral, delinquency trends, borrowers’ cash                  flow and historic loan loss experience. All of these factors can                  change                  without notice based on market and economic conditions and other                  factors                  beyond the control of management. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

*Non-Interest        Income*

|   | Non-interest                  income for the three months ended June 30, 2005 and 2004 was $1.3                  million                  and $0.9 million, respectively. This represents an increase of                  $0.4                  million or 48.9%. Non-interest income for the six months ended                  June 30,                  2005 and 2004 was $2.4 million and $2.5 million, respectively.                  This                  represents a decrease of approximately $91,000 or 3.6%. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | The                  Company generally sells the guaranteed portions of SBA loans originated.                  Those SBA loans sold, combined with broker fee income associated                  with SBA                  loans, generated gains amounting to $0.8 million and $0.4 million                  for the                  three months ended June 30, 2005 and 2004, respectively, and gains                  of $1.4                  million and $1.3 million for the six months ended June 30, 2005                  and 2004,                  respectively. Income from fees and service charges was $0.5 million                  for                  the three months ended June 30, 2005 and 2004 and $0.8 million                  and $0.9                  million for the six months ended June 30, 2005 and 2004, respectively.                  For                  the three and six months ended June 30, 2005, no investment securities                  were sold, and therefore, there was no gain on sale of securities.                  Conversely, gain on sale of securities totaled $0 and $0.2 million                  for the                  same periods in 2004. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

*Non-Interest        Expenses*

|   | The                  Company’s non-interest expense for the three months ended June                  30,                  2005 and 2004 was $8.4 million and $6.6 million, respectively.                  This                  represents an increase of $1.8 million or 26.8%. Non-interest expense                  increased $4.4 million or 34.8% to $16.9 million for the six months                  ended                  June 30, 2005 from $12.6 million in the same period in 2004. Non-interest                  expense consists primarily of (i) salaries and employee benefits,                  (ii)                  occupancy expense, (iii) furniture and equipment expenses and (iv)                  marketing, office supplies, postage and telephone, insurance, data                  processing, professional fees, administrative, business development,                  and                  other non-interest expense. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | Salaries                  and employee benefits is the largest component of non-interest                  expense.                  Beginning with the appointment of the Company’s current Chief Executive                  Officer in the fourth quarter of 2000, management has implemented                  several                  structural changes within the operations of the Company in order                  to                  support its strategic plan initiatives. In each of the following                  areas, a                  seasoned and experienced individual has been recruited from other                  local                  financial institutions to head their respective area: credit                  administration, loan operations and construction support, single                  family                  residential construction business development, marketing, information                  technology, community banking, finance and human resources. Additional                  personnel have been placed in business development capacities for                  commercial and community banking. With the addition of these individuals                  to the Company’s existing personnel, the Company has been able to produce                  significant growth in deposits and loans in the past four years,                  while                  providing the infrastructure needed to support longer-term growth.                  These                  infrastructure changes have increased the Company’s salaries and employee                  benefits expense by $1.0 million or 29.8% to $4.5 million for the                  three                  months ended June 30, 2005 as compared to the same period in 2004                  and have                  similarly increased by $2.7 million or 40.9% to $9.4 million for                  the six                  months ended June 30, 2005, as compared to the same period in 2004. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | Occupancy                  expense amounted to $0.9 million for the three months ended June                  30, 2005,                  in comparison to $0.6 million for the same period in 2004. This                  represents                  an increase of $0.3 million or 57.8% over the same prior period.                  Occupancy                  expense amounted to $1.7 million for the six months ended June                  30, 2005,                  in comparison to $1.1 million for the same period in 2004. This                  represents                  an increase of $0.6 million or 52.9% over the same prior period.                  The                  increase in occupancy expense is primarily due to the Company’s expansion.                  During the first half of 2005, the Company completed significant                  leasehold                  improvements to its newly leased Corona Pointe building, which                  currently                  serves as the main administrative facility. The existing Anaheim                  SBA loan                  production office was also relocated to a larger facility in Anaheim                  during the first quarter of 2005, and the Irvine loan production                  office                  was expanded to accommodate the Private Reserve Group in the second                  quarter of 2005. |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iii) | As                  the Company continued to expand its banking network and redesign                  its                  existing branches, expenses related to furniture and equipment                  have                  increased. Expenses related to furniture and equipment were $0.8                  million                  and $0.6 million for the three months ended June 30, 2005 and 2004,                  respectively, and $1.5 million and $1.0 million for the six month                  period                  ended June 30, 2005 and 2004, respectively. This expansion represents                  increases of $0.2 million or 31.8% and $0.5 million or 47.5% over                  the                  three and six month prior periods, respectively. |
|--------|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|    | (iv) | Other                  non-interest expense was $2.3 million and $2.0 million for the                  three                  months ended June 30, 2005 and 2004, respectively. This represents                  an                  increase of 11.7% over the prior period. Other non-interest expense                  was                  $4.3 million and $3.8 million for the six months ended June 30,                  2005 and                  2004, respectively, representing an increase of 15.1% over the                  prior                  period. The increase is due primarily to the Company’s implementation of                  its strategy to grow its business. |
|--------------|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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Table            of Contents

| (Dollars                in Thousands)                 |   | Three                Months Ended June 30, |   | Six                Months Ended June 30, |   |
|-------------------------------------------------------|--------|--------------------------------------------|--------|------------------------------------------|--------|
|                                                  |   | 2005                                       |   | 2004                                     |   | 2005 |   | 2004 |   |
| Other                non-interest expense:            |   |                                       |   |                                     |   |   |   |   |   |
| Data                processing                        |   | $                                          | 212    |                                     | $      | 185 |   | $ | 406 |   | $ | 369 |   |
| Marketing                                             |   |                                       | 272    |                                     |   | 317 |   |   | 425 |   |   | 528 |   |
| Professional                services                  |   |                                       | 351    |                                     |   | 383 |   |   | 644 |   |   | 655 |   |
| Office                supplies, postage and telephone |   |                                       | 366    |                                     |   | 370 |   |   | 716 |   |   | 717 |   |
| Insurance                and assessment               |   |                                       | 238    |                                     |   | 96 |   |   | 447 |   |   | 191 |   |
| Administrative                                        |   |                                       | 137    |                                     |   | 110 |   |   | 259 |   |   | 261 |   |
| Business                development                   |   |                                       | 432    |                                     |   | 264 |   |   | 816 |   |   | 553 |   |
| Other                                                 |   |                                       | 273    |                                     |   | 317 |   |   | 626 |   |   | 495 |   |
| Total                other non-interest expense       |   | $                                          | 2,281  |                                     | $      | 2,042 |   | $ | 4,339 |   | $ | 3,769 |   |

**Financial      Condition**

*Assets*

*Investments*

| (Dollars                in Thousands)     |   |      |    | Gross      |   | Gross      |   |                      |   |
|-------------------------------------------|--------|-----------|---------|------------|--------|------------|--------|---------------------------|--------|
|                                      |   | Amortized |    | Unrealized |   | Unrealized |   |                      |   |
|                                      |   | Cost      |    | Gains      |   | Losses     |   | Fair                Value |   |
| U.S.                agency securities     |   | $         | 11,384  |       | $      | -          |   | $                         | (117   | ) | $ | 11,267 |   |
| Mortgage-backed                securities |   |      | 282,937 |       |   | 56         |   |                      | (3,623 | ) |   | 279,370 |   |
| Mutual                funds               |   |      | 2,080   |       |   | 19         |   |                      | -      |   |   | 2,099 |   |
| Total                                     |   | $         | 296,401 |       | $      | 75         |   | $                         | (3,740 | ) | $ | 292,736 |   |

| (Dollars                in Thousands)     |   |      |    | Gross      |   | Gross      |   |                      |   |
|-------------------------------------------|--------|-----------|---------|------------|--------|------------|--------|---------------------------|--------|
|                                      |   | Amortized |    | Unrealized |   | Unrealized |   |                      |   |
|                                      |   | Cost      |    | Gains      |   | Losses     |   | Fair                Value |   |
| U.S.                agency securities     |   | $         | 11,033  |       | $      | -          |   | $                         | (532   | ) | $ | 10,501 |   |
| Mortgage-backed                securities |   |      | 215,045 |       |   | 116        |   |                      | (4,228 | ) |   | 210,933 |   |
| Mutual                funds               |   |      | 2,042   |       |   | 4          |   |                      | -      |   |   | 2,046 |   |
| Total                                     |   | $         | 228,120 |       | $      | 120        |   | $                         | (4,760 | ) | $ | 223,480 |   |

----

Table          of Contents

| (Dollars                in Thousands)     |   | Less                than 12 months |    | 12                months or Longer |   | Total                     |   |
|-------------------------------------------|--------|------------------------------------|---------|------------------------------------|--------|---------------------------|--------|
|                                      |   |                               |    | Gross                              |   |                      |   | Gross |   |   |   | Gross |   |
|                                      |   |                               |    | Unrealized                         |   |                      |   | Unrealized |   |   |   | Unrealized |   |
|                                      |   |                               |    | Holding                            |   |                      |   | Holding |   |   |   | Holding |   |
|                                      |   | Fair                Value          |    | Losses                             |   | Fair                Value |   | Losses |   | Fair                Value |   | Losses |   |
|                                      |   |                               |    |                               |   |                      |   |   |   |   |   |   |   |
| U.S.                agency securities     |   | $                                  | -       |                               | $      | -                         |   | $ | 11,267 |   | $ | (117 | ) | $ | 11,267 |   | $ | (117 | ) |
| Mortgage                backed securities |   |                               | 127,376 |                               |   | (620                      | )      |   | 127,294 |   |   | (3,003 | ) |   | 254,670 |   |   | (3,623 | ) |
| Mutual                Funds               |   |                               | -       |                               |   | -                         |   |   | - |   |   | - |   |   | - |   |   | - |   |
| Total                                     |   | $                                  | 127,376 |                               | $      | (620                      | )      | $ | 138,561 |   | $ | (3,120 | ) | $ | 265,937 |   | $ | (3,740 | ) |

| (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 |   | $                                                | 17,788 |   | $ | 17,757 |   | $ | 265,149 |   | $ | 261,613 |   |
| U.S.                agency securities     |   |                                             | -      |   |   | - |   |   | 11,384 |   |   | 11,267 |   |
| Total                                |   | $                                                | 17,788 |   | $ | 17,757 |   | $ | 276,533 |   | $ | 272,880 |   |

*Loans      *

----

Table          of Contents

| (Dollars                in Thousands)                 |   | As                of         |      |
|-------------------------------------------------------|--------|------------------------------|-----------|
|                                                  |   | June                30, 2005 |      | December                31, 2004 |   |
|                                                  |   |                         |      |   |   |
| Commercial                and industrial              |   | $                            | 38,724    |   | $ | 36,095 |   |
| Real                estate construction:              |   |                         |      |   |   |   |   |
| Singe-family                coastal                   |   |                         | 352,687   |   |   | 298,984 |   |
| Singe-family                tract                     |   |                         | 133,221   |   |   | 129,900 |   |
| Commercial                                            |   |                         | 44,982    |   |   | 36,215 |   |
| Real                estate mortgage:                  |   |                         |      |   |   |   |   |
| Commercial                                            |   |                         | 261,778   |   |   | 216,609 |   |
| Multi-family                residential               |   |                         | 257,905   |   |   | 189,912 |   |
| Land                                                  |   |                         | 84,640    |   |   | 61,979 |   |
| All                other residential                  |   |                         | 63,196    |   |   | 56,983 |   |
| Consumer                loans                         |   |                         | 11,338    |   |   | 2,905 |   |
| All                other loans (including overdrafts) |   |                         | 130       |   |   | 137 |   |
|                                                  |   |                         | 1,248,601 |   |   | 1,029,719 |   |
| Unearned                premium on loans              |   |                         | 422       |   |   | 541 |   |
| Deferred                loan fees                     |   |                         | (3,776    | ) |   | (3,223 | ) |
| Loans,                net of unearned income          |   | $                            | 1,245,247 |   | $ | 1,027,037 |   |

| (Dollars                in Thousands)       |   | Six                months ended |   | Year                ended        |   |
|---------------------------------------------|--------|---------------------------------|--------|----------------------------------|--------|
|                                        |   | June                30, 2005    |   | December                31, 2004 |   |
| Servicing                rights capitalized |   | $                               | 180    |                             | $      | 1,143 |   |
| Servicing                rights amortized   |   | $                               | 326    |                             | $      | 269 |   |
| Valuation                allowances         |   | $                               | -      |                             | $      | - |   |

*Allowance      for Possible Loan Losses*

| (Dollars                in Thousands)                     |   | Six                months ended |   | Year                ended        |   |
|-----------------------------------------------------------|--------|---------------------------------|--------|----------------------------------|--------|
|                                                      |   | June                30, 2005    |   | December                31, 2004 |   |
| Balance,                beginning of year                 |   | $                               | 13,001 |                             | $      | 7,537 |   |
| Recoveries                on loans previously charged off |   |                            | 41     |                             |   | 122 |   |
| Loans                charged off                          |   |                            | (16    | )                                |   | (392 | ) |
| Provision                charged to operating expense     |   |                            | 850    |                             |   | 5,734 |   |
| Balance,                end of period                     |   | $                               | 13,876 |                             | $      | 13,001 |   |

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Table          of Contents

*Nonperforming      Assets*

| (Dollars                in Thousands)                        |   | As                of    |   |
|--------------------------------------------------------------|--------|-------------------------|--------|
|                                                         |   | June                30, |   | December                31, |   |
|                                                         |   | 2005                    |   | 2004 |   |
| **Accruing                Loans More than 90 Days Past Due** |   |                    |   |   |   |
| Aggregate                loan amounts                        |   |                    |   |   |   |
| Commercial,                financial and agricultural        |   | $                       | -      |   | $ | - |   |
| Real                estate                                   |   |                    | -      |   |   | - |   |
| Installment                loans to individuals              |   |                    | -      |   |   | - |   |
| Total                loans past due more than 90 days        |   | $                       | -      |   | $ | - |   |
|                                                         |   |                    |   |   |   |   |   |
| **Renegotiated                loans**                   |   |                    | -      |   |   | - |   |
|                                                         |   |                    |   |   |   |   |   |
| **Non-accrual                loans**                         |   |                    |   |   |   |   |   |
| Aggregate                loan amounts                        |   |                    |   |   |   |   |   |
| Commercial,                financial and agricultural        |   | $                       | -      |   | $ | - |   |
| Real                estate                                   |   |                    | 4,636  |   |   | - |   |
| Installment                loans to individuals              |   |                    | -      |   |   | - |   |
| Total                non-accrual loans                       |   | $                       | 4,636  |   | $ | - |   |
|                                                         |   |                    |   |   |   |   |   |
| Total                non-performing loans                    |   | $                       | 4,636  |   | $ | - |   |

| (Dollars                in Thousands)                                |   | As                of    |   |
|----------------------------------------------------------------------|--------|-------------------------|--------|
|                                                                 |   | June                30, |   | December                31, |   |
|                                                                 |   | 2005                    |   | 2004 |   |
| Impaired                loans with a specific valuation allowance    |   | $                       | -      |   | $ | - |   |
| Impaired                loans without a specific valuation allowance |   |                    | 4,636  |   |   | - |   |
| Total                impaired loans                                  |   | $                       | 4,636  |   | $ | - |   |
|                                                                 |   |                    |   |   |   |   |   |
| Valuation                allowance related to impaired loans         |   | $                       | -      |   | $ | - |   |

| (Dollars                in Thousands)                            |   | Six                months ended |   | Year                ended        |   |
|------------------------------------------------------------------|--------|---------------------------------|--------|----------------------------------|--------|
|                                                             |   | June                30, 2005    |   | December                31, 2004 |   |
| Average                recorded investment in impaired loans     |   | $                               | 2,435  |                             | $      | 238 |   |
| Cash                receipts applied to reduce principal balance |   | $                               | -      |                             | $      | 671 |   |
| Interest                income recognized for cash payments      |   | $                               | -      |                             | $      | 21 |   |

*Deposits*

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Table          of Contents

| (Dollars                in Thousands)           |   |   |    |
|-------------------------------------------------|--------|--------|---------|
|                                            |   |   |    |
| Three                months or less             |   | $      | 73,391  |   |
| Over                three through twelve months |   |   | 175,388 |   |
| Over                one through five years      |   |   | 16,907  |   |
|                                            |   | $      | 265,686 |   |

*Borrowings*

| (Dollars                in Thousands) |   | Weighted |   |   |   |
|---------------------------------------|--------|----------|--------|--------|--------|
|                                  |   | Average  |   |   |   |
| Maturity                              |   | Rate     |   | Amount |   |
| 2005                                  |   |     | 3.5    | %      | $      | 373,000 |   |
| 2006                                  |   |     | 2.6    | %      |   | 15,000 |   |
|                                  |   |     | 3.4    | %      | $      | 388,000 |   |

| (Dollars                in Thousands)        |   |                         |                                |                    |   |                             |   | As                of June 30, 2005 |   |
|----------------------------------------------|--------|------------------------------|-------------------------------------|-------------------------|--------|----------------------------------|--------|------------------------------------|--------|
|                                         |   |                         |                                |                    |   | Minority                         |   | Effective                          |   |   |   |
|                                         |   | Interest                Rate |                                | Due                Date |   | Interest                         |   | Interest                Rate       |   | Balance |   |
| Vineyard                Statutory Trust I    |   |                         | 3-month                LIBOR + 3.60 | %                       |   | December                18, 2031 |   | $                                  | 372    |   |   | 7.03 | % | $ | 12,372 |   |
| Vineyard                Statutory Trust II   |   |                         | 3-month                LIBOR + 3.35 | %                       |   | December                26, 2032 |   |                               | 155    |   |   | 6.49 | % |   | 5,155 |   |
| Vineyard                Statutory Trust III  |   |                         | 3-month                LIBOR + 3.05 | %                       |   | October                8, 2033   |   |                               | 310    |   |   | 6.19 | % |   | 10,310 |   |
| Vineyard                Statutory Trust IV   |   |                         | 3-month                LIBOR + 2.85 | %                       |   | January                23, 2034  |   |                               | 310    |   |   | 6.06 | % |   | 10,310 |   |
| Vineyard                Statutory Trust V    |   |                         | 3-month                LIBOR + 2.85 | %                       |   | April                23, 2034    |   |                               | 310    |   |   | 5.99 | % |   | 10,310 |   |
| Vineyard                Statutory Trust VI   |   |                         | 3-month                LIBOR + 2.85 | %                       |   | July                23, 2034     |   |                               | 372    |   |   | 6.01 | % |   | 12,372 |   |
| Vineyard                Statutory Trust VII  |   |                         | 3-month                LIBOR + 2.00 | %                       |   | December                16, 2034 |   |                               | 310    |   |   | 5.33 | % |   | 10,310 |   |
| Vineyard                Statutory Trust VIII |   |                         | 3-month                LIBOR + 3.80 | %                       |   | May                23, 2035      |   |                               | 310    |   |   | 5.53 | % |   | 10,310 |   |
|                                         |   |                         |                                |                    |   |                             |   | $                                  | 2,449  |   |   | 6.08 | % | $ | 81,449 |   |

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Table          of Contents

*Stockholders’      Equity *

**Liquidity**

**Capital      Resources**

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Table          of Contents

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Table            of Contents

| (Dollars                in Thousands)                  |   |                             |    |                             |   | Capital                Needed    |   |
|--------------------------------------------------------|--------|----------------------------------|---------|----------------------------------|--------|----------------------------------|--------|
|                                                   |   |                             |    |                             |   |                             |   |   |   | To                Be Well Capitalized |   |
|                                                   |   |                             |    |                             |   | For                Capital       |   | Under                Prompt Corrective |   |
|                                                   |   | Actual                Regulatory |    | Adequacy                Purposes |   | Action                Provisions |   |
|                                                   |   | Capital                          |    |                             |   | Capital                          |   |   |   | Capital |   |   |   |
|                                                   |   | Amount                           |    | Ratio                            |   | Amount                           |   | Ratio |   | Amount |   | Ratio |   |
| **As                of June 30, 2005**                 |   |                             |    |                             |   |                             |   |   |   |   |   |   |   |
| Total                capital to risk-weighted assets:  |   |                             |    |                             |   |                             |   |   |   |   |   |   |   |
| Bank                                                   |   | $                                | 188,105 |                             |   | 12.8                             | %      | $ | 117,600 |   |   | 8.0 | % | $ | 147,000 |   |   | 10.0 | % |
| Consolidated                                           |   | $                                | 202,038 |                             |   | 13.7                             | %      | $ | 118,000 |   |   | 8.0 | % |   | N/A |   |   | N/A |   |
|                                                   |   |                             |    |                             |   |                             |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Tier                1 capital to risk-weighted assets: |   |                             |    |                             |   |                             |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Bank                                                   |   | $                                | 174,229 |                             |   | 11.9                             | %      | $ | 58,800 |   |   | 4.0 | % | $ | 88,100 |   |   | 6.0 | % |
| Consolidated                                           |   | $                                | 138,883 |                             |   | 9.4                              | %      | $ | 59,000 |   |   | 4.0 | % |   | N/A |   |   | N/A |   |
|                                                   |   |                             |    |                             |   |                             |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Tier                1 capital to average assets:       |   |                             |    |                             |   |                             |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Bank                                                   |   | $                                | 174,229 |                             |   | 11.5                             | %      | $ | 60,500 |   |   | 4.0 | % | $ | 75,700 |   |   | 5.0 | % |
| Consolidated                                           |   | $                                | 138,883 |                             |   | 9.1                              | %      | $ | 60,800 |   |   | 4.0 | % |   | N/A |   |   | N/A |   |
|                                                   |   |                             |    |                             |   |                             |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **As                of December 31, 2004**             |   |                             |    |                             |   |                             |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                capital to risk-weighted assets:  |   |                             |    |                             |   |                             |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Bank                                                   |   | $                                | 160,509 |                             |   | 13.5                             | %      | $ | 95,200 |   |   | 8.0 | % | $ | 118,900 |   |   | 10.0 | % |
| Consolidated                                           |   | $                                | 174,212 |                             |   | 14.6                             | %      | $ | 95,500 |   |   | 8.0 | % |   | N/A |   |   | N/A |   |
|                                                   |   |                             |    |                             |   |                             |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Tier                1 capital to risk-weighted assets: |   |                             |    |                             |   |                             |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Bank                                                   |   | $                                | 147,508 |                             |   | 12.4                             | %      | $ | 47,600 |   |   | 4.0 | % | $ | 71,400 |   |   | 6.0 | % |
| Consolidated                                           |   | $                                | 116,280 |                             |   | 9.7                              | %      | $ | 47,700 |   |   | 4.0 | % |   | N/A |   |   | N/A |   |
|                                                   |   |                             |    |                             |   |                             |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Tier                1 capital to average assets:       |   |                             |    |                             |   |                             |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Bank                                                   |   | $                                | 147,508 |                             |   | 11.3                             | %      | $ | 52,100 |   |   | 4.0 | % | $ | 65,100 |   |   | 5.0 | % |
| Consolidated                                           |   | $                                | 116,280 |                             |   | 8.9                              | %      | $ | 52,300 |   |   | 4.0 | % |   | N/A |   |   | N/A |   |

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

**The      Company’s business is subject to general economic risks that could adversely      impact its operating results and financial condition.**

*Changes      in economic conditions, particularly an economic slowdown in California, could      hurt the Company’s business. *

|   | · | loan                delinquencies may increase; |
|--------|--------|-------------------------------------------------|

|   | · | problem                assets and foreclosures may                increase; |
|--------|--------|-----------------------------------------------------------------------------|

|   | · | demand                for the Company’s products and services may decline;                and |
|--------|--------|-----------------------------------------------------------------------------------------------------|

|   | · | collateral                for loans made by the Company, especially real estate, may decline                in                value, in turn reducing a client’s borrowing power, and reducing the value                of assets and collateral associated with its loans held for                investment. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

*A      downturn in the California real estate market could hurt the Company’s      business.*

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*The      Company may suffer losses in its loan portfolio despite its underwriting      practices*

**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**

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Table          of Contents

| (Dollars                in Thousands) |   | **Economic                Value of Equity** |    | **Earnings                at Risk**  |   |
|---------------------------------------|--------|---------------------------------------------|---------|--------------------------------------|--------|
| **Simulated**                         |   | **Cumulative**                              |    | **Cumulative**                       |   | **Cumulative** |   | **Cumulative** |   |
| **Rate                Changes**       |   | **Dollar                Change**            |    | **Percentage                Change** |   | **Dollar                Change** |   | **Percentage                Change** |   |
| 200                                   |   | $                                           | (26,831 | )                                    |   | -11.0 | % | $ | 2,243 |   |   | 3.1 | % |
| 100                                   |   | $                                           | (12,687 | )                                    |   | -5.2 | % | $ | 1,092 |   |   | 1.5 | % |
| -100                                  |   | $                                           | 7,350   |                                 |   | 3.0 | % | $ | 3,413 |   |   | 4.7 | % |
| -200                                  |   | $                                           | 13,095  |                                 |   | 5.4 | % | $ | 9,610 |   |   | 13.3 | % |

**ITEM      4. CONTROLS AND PROCEDURES**

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Table          of Contents

**PART      II -- OTHER INFORMATION**

**ITEM      1. LEGAL PROCEEDINGS**

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

**Unregistered      Sale of Equity Securities**

**Purchases      of Equity Securities**

| **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** |   |
|-----------------------------------|--------|-----------------------------------------------------|--------|-------------------------------------------------|--------|---------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                              |   |                                                |   |                                            |   |                                                                                                                      |   |                                                                                                                                      |   |
| April                1 - 30, 2005 |   |                                                | 3,550  |                                            | $      | 29.46                                                                                                                     |   |                                                                                                                                      | 3,550  |   | $ | 37,500 |   |
| May                1 - 31, 2005   |   |                                                | 13,000 |                                            |   | 31.19                                                                                                                     |   |                                                                                                                                      | 13,000 |   | $ | 4,632,076 |   |
| June                1 - 30, 2005  |   |                                                | 21,500 |                                            |   | 33.64                                                                                                                     |   |                                                                                                                                      | 21,500 |   | $ | 3,908,735 |   |
| Total                             |   |                                                | 38,050 |                                            | $      | 32.41                                                                                                                     |   |                                                                                                                                      | 38,050 |   |   |   |   |

|   | (1) | In                July                2002, the Company adopted a stock repurchase program in the initial                amount                of $2.0 million. In December 2003, February 2005 and May 2005, the                Company                approved                increases in its stock repurchase program of $5.0 million for a total                amount of $17.0 million. Under its stock repurchase program, the                Company                has been acquiring its common stock shares in the open market and                holds                the repurchased shares as authorized but unissued shares. 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**

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Table          of Contents

|   | 1. | Election                of Directors of the Company to serve until the next annual stockholders’                meeting. |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------|

|                             |   | **Number                of Votes For** |      | **Number                of Votes Against** |   | **Number                of Votes Abstained** |   |
|----------------------------------|--------|----------------------------------------|-----------|--------------------------------------------|--------|----------------------------------------------|--------|
| Frank                S. Alvarez  |   |                                   | 8,325,326 |                                       |   | -                                            |   |   | 157,754 |   |
| David                A. Buxbaum  |   |                                   | 8,356,926 |                                       |   | -                                            |   |   | 126,154 |   |
| Charles                L. Keagle |   |                                   | 8,360,580 |                                       |   | -                                            |   |   | 122,500 |   |
| James                LeSieur     |   |                                   | 8,323,280 |                                       |   | -                                            |   |   | 159,800 |   |
| Norman                Morales    |   |                                   | 8,323,280 |                                       |   | -                                            |   |   | 159,800 |   |
| Joel                H. Ravitz    |   |                                   | 8,320,694 |                                       |   | -                                            |   |   | 162,386 |   |

|   | 2. | Amendment                of the Articles of Incorporation of the Company to increase the number                of                shares of authorized common stock from 15,000,000 to 50,000,000 and                the                total number of authorized capital stock shares from 25,000,000 to                60,000,000. |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |   | **Number                of Votes For** |   | **Number                of Votes Against** |    | **Number                of Votes Abstained** |   |
|--------|--------|----------------------------------------|--------|--------------------------------------------|---------|----------------------------------------------|--------|
|   |   | 8,133,967                              |   |                                       | 297,708 |                                         |   | 51,405 |   |

|   | 3. | Adoption                of the Company’s 2005 Restricted Share                Plan. |
|--------|----|-------------------------------------------------------------------------------------------|

| **Number                of Votes For** |   | **Number                of Votes Against** |    | **Number                of Votes Abstained** |   | **Broker                Non-Vote** |   |
|----------------------------------------|--------|--------------------------------------------|---------|----------------------------------------------|--------|------------------------------------|--------|
| 3,389,299                              |   |                                       | 948,930 |                                         |   | 52,474                             |   |   | 4,092,377 |   |

|   | 4. | Ratification                of Vavrinek, Trine, Day & Company, LLP as the Company’s independent                accountants. |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------|

|   |   | **Number                of Votes For** |   | **Number                of Votes Against** |   | **Number                of Votes Abstained** |   |
|--------|--------|----------------------------------------|--------|--------------------------------------------|--------|----------------------------------------------|--------|
|   |   | 8,386,434                              |   |                                       | 60,071 |                                         |   | 36,575 |   |

**ITEM      5. OTHER INFORMATION**

| (a)   | On                May 25, 2005 at the Company’s annual meeting of shareholders, the                Company’s shareholders adopted the 2005 Restricted Share Plan (the                “Plan”), which offers restricted share awards to employees, officers, and                directors of the Company. A copy of the Plan and a summary of its                terms                were included in the Company’s definitive proxy statement, which was filed                with the SEC on April 18, 2005, and is incorporated by reference                herein                under Part II, Item 6 - Exhibits. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | None |
|-----------------|------|

**ITEM      6. EXHIBITS **

| EXHIBIT                    NO. | DESCRIPTION |
|--------------------------------|-------------|
| 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) |

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Table              of Contents

| 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*                                                                                                                                          |
| 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)                                                                                                                                                      |
| 11    |   | Statement                    regarding computation of per share earnings. See Note 7 to the                    Consolidated Financial Statements included in Item 1                    hereof              |
| 31.1  |   | Certification                    of Chief Executive Officer under Section 302 of the Sarbanes-Oxley                    Act of                    2002                                                      |
| 31.2  |   | Certification                    of Chief Financial Officer under Section 302 of the Sarbanes-Oxley                    Act of                    2002                                                      |
| 32    |   | Certification                    of Chief Executive Officer and Chief Financial Officer pursuant                    to Section                    906 of the Sarbanes-Oxley Act 0f                    2002 |

|   | (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 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.                     |
|   |   |                                                                                                                                                                                                                           |
|   | *      | Management                contract or compensatory plan or                arrangement.                                                                                                                                         |

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Table          of Contents

**SIGNATURES**

|         |                                                   |                                      |
|--------------|--------------------------------------------------------|-------------------------------------------|
|         | **VINEYARD              NATIONAL BANCORP**             |
|    |                                              |                                 |
|         | By:                                          | /s/ *Norman              A. Morales* |
|         | Norman              A. Morales     |
|         | President              and Chief Executive Officer     |

|         |                                                                |                                  |
|--------------|---------------------------------------------------------------------|---------------------------------------|
|    |                                                           |                             |
|         | By:                                                       | /s/ *Gordon                Fong* |
|         | Gordon                Fong                                          |
|         | Executive                Vice President and Chief Financial Officer |
|         | (Principal                Financial Officer)                        |

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