Vineyard National gets waiver from lender

(Reuters) - Vineyard National Bancorp VNBC.O said its lender First Tennessee Bank National Association, has agreed to give the company time through October 28 to repay the balance amount of a $70 million loan.

The California-based financial holding company said in a filing that the lender had also agreed to extend waiver of some financial, covenant failures including consent order with office of comptroller of currency.

As of August 29, Vineyard national's outstanding balance of the loan was $48.3 million.

Vineyard has been booking losses and fighting stability fears taking a hit from a weak and struggling economy in California, one of the worst hit by the housing downturn.

Shares of Vineyard have fallen 93 percent since January making it the second smallest company, by market capitalization, on the Nasdaq Bank Index IXBK.O.

(Reporting by Sweta Singh in Bangalore)