New Millennium Bank reported a loss of $161,000 in its second quarter ending June 30, 2009. The bank had strong growth in total assets, which rose 26.4% to $240.2 million. Net loans also increased by 28.2% to $175.3 million.
Chris Van Der Stad, the CEO of New Millennium Bank, said, “While we have experienced some drag on earnings due to the same economic pressures impacting other banks throughout the nation, as well as our prudent reactions to those pressures, our solid capitalization combined with our conservative risk management philosophy and credit underwriting policies have us well positioned for continued success moving forward.”
New Millennium Bank attributed some of the loss to a special assessment levied by the Federal Deposit Insurance Corporation (FDIC) to replenish the insurance fund. The bank saw its total assessment rise from $55,000 in 2008 to $193,000 in 2009.
Despite the loss in the quarter, New Millennium Bank has sound capital ratios, which should protect the bank for the duration of the recession. The bank reported the following capital ratios at the end of the quarter:
Tier 1 Leverage Ratio â€“ 9.6%
Tier 1 Risk Based Capital Ratio â€“ 11.4%
Total Risk Based Capital Ratio – 12.6%
New Millennium Bank was founded in 1999, and has two branches in New Brunswick and Somerset, New Jersey.