NEW BRUNSWICK, N.J., Dec. 4 /PRNewswire-FirstCall/ — New Millennium Bank (OTC Bulletin Board: NMNB) today announced that while the third quarter results reflected a loss of $214,000, continued strong capitalization demonstrates that New Millennium Bank remains financially solid while enjoying modest growth in assets, loans and deposits that indicates a favorable outlook going forward, according to Michael Ross, Chairman of the Board, and Chris Van Der Stad, President and CEO. Nevertheless, while the economy is showing initial signs of recovery, residual economic drag is expected to continue to impact earnings for the near-term and year end.
The Bank had a net loss for the three months ending September 30, 2009, of $214,000, compared to a net loss of $74,000 for the same period last year. For the nine months ending September 30, 2009, the Bank had a net loss of $304,000, compared to net income of $525,000 for the same period last year. As with banks throughout the nation, non-performing loans remain an issue for New Millennium Bank, a situation that reflects the economy and its impact on the commercial sector, according to Van Der Stad.
“The Bank continues to prudently address this issue,” he said. “We aggressively identify problem loans as they develop and make provisions accordingly. Toward that end, we made provisions for possible loan losses in the third quarter of $937,000 and for the year of $2.2 million. This prudent risk management largely accounts for the negative impact to our earnings. While we are confident that absent these conservative and necessary measures we would have enjoyed stronger short-term results, this prudent management policy best serves the longer-term interests of the Bank and its shareholders.”
The Bank’s capitalization position continues to remain strong, according to Van Der Stad. On September 30, 2009, the Tier 1 Leverage Ratio, Tier 1 Risk Based Capital Ratio and Total Risk Based Capital Ratio for the Bank were 9.2 percent, 11.9 percent and 13.2 percent, respectively. A bank is considered well capitalized if these ratios are equal to or greater than 5.0 percent, 6.0 percent and 10.0 percent, respectively, Van Der Stad added.
“New Millennium Bank remains well capitalized,” he said, noting that the Bank has no sub-prime residential mortgage loans or investments in sub-prime mortgage-backed securities. “Our capitalization, combined with our conservative risk management philosophy, has us positioned to continue weathering the lingering economic downturn while enjoying modest growth.”
That modest growth is reflected in a steady increase in assets, loans and deposits for the quarter, which continues to improve the Bank’s long-term outlook, according to Van Der Stad. At September 30, 2009, total assets increased 6.6 percent to $241.4 million; net loans increased 9.4 percent to $182.6 million; and deposits increased 9.1 percent to $194.8 million, when compared to September 30, 2008.
Additionally, New Millennium Bank opened its third branch in October, in Franklin Township, resulting in new deposits of $20 million. The excitement generated by the opening has continued. The Bank plans to open a fourth branch in Somerville in late summer 2010.
“These new branches will further strengthen our position by widening our customer base, expanding our market areas and building shareholder value,” Van Der Stad said.
About New Millennium Bank
New Millennium Bank currently has three offices to serve its customers at 57 Livingston Avenue, New Brunswick, NJ; 695 Hamilton Street, Somerset, NJ; and 464B Elizabeth Avenue, Franklin Township, NJ. The Bank offers a full range of Internet banking services to support its retail and commercial customers. In addition to its commercial lending department, New Millennium Bank is a Nationwide Preferred Small Business Administration (SBA) Lender, lending primarily in New Jersey, New York and Pennsylvania. New Millennium Bank also offers secured credit cards throughout the United States to help individuals re-establish their credit. The bank is an equal housing lender and a member of the FDIC. Visit us at www.nmbonline.com.
The foregoing contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are not historical facts and include expressions about management’s confidence and strategies and management’s expectations about new and existing programs and products, relationships, opportunities, taxation, technology and market conditions. These statements may be identified by such forward-looking terminology as “expect,” “believe,” “view,” “opportunity,” “allow,” “continues,” “reflects,” “typically,” “usually,” “anticipate,” or similar statements or variations of such terms. Such forward-looking statements involve certain risks and uncertainties. Actual results may differ materially from such forward-looking statements. New Millennium Bank assumes no obligation for updating any such forward-looking statement at any time.
SOURCE New Millennium Bank
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