Calif. Bank Needs Capital (Update)

Updated from 1:46 p.m. EDT

Vineyard National Bancorp (VNBC Quote) stated late Monday that it would need to raise capital and find new sources of liquidity to continue operating through 2008.

Shares closed down 44% at $1.08 Tuesday.

The $2.4 billion Rancho Cucamonga, Calif., holding company reported a net loss of $67.9 million for the second quarter, mainly resulting from a $40.5 million provision for loan losses, as nonaccruing tract construction loans mounted. This followed a first-quarter loss of $13.3 million. ...