Vineyard Bank's parent company gets another break on overdue $48 million loan
Vineyard Bank's parent company was thrown yet another lifeline last week, according to financial documents filed on Tuesday.
Vineyard National Bancorp's deadline to repay a severely-overdue $48 million loan to First Tennessee Bank National Association is being extended to Oct. 28. This is the company's fifth waiver on the loan.
Since the proxy battle ended between Vineyard and ousted CEO Norman Morales last month, Vineyard is taking baby steps as federal regulators closely monitor the company's financial decisions.
Vineyard reported more than $130 million in losses over the last few quarters, and customers collectively withdrew almost $230 million in deposits from April to June.
At least Vineyard's banks are seeing some deposit inflows, according to financial statements, which helps replace the huge outflows.
The bank is balancing incoming credit and revenue lines against its breathtaking losses to stay liquid.
Shareholders elected five of Morales's candidates to Vineyard's board of directors, but one of them, Cynthia Harriss, recently resigned. Board chairman Perry Hansen was elected to take Harriss's place, pending regulatory approval.
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