New Millennium Bank Reports Challenges and Rewards of 2009 Position the Bank for Gradual Improvement in 2010

NEW BRUNSWICK, N.J., April 1 /PRNewswire-FirstCall/ -- New Millennium Bank (OTC Bulletin Board: NMNB) today announced that 2009 brought both challenges that negatively impacted earnings as well as rewards that create expectation for a gradual improvement in performance, according to Michael Ross, Chairman of the Board, and Chris Van Der Stad, President and CEO.  While the Bank posted a loss of $1.2 million for the year it also enjoyed increases in the key indicators of assets, loans and deposits; retains strong capital ratios; and opened a third branch in 2009 with plans for a fourth in 2010, Ross and Van Der Stad said.

New Millennium Bank lost $1.2 million in 2009, compared to a profit of $1.0 million in 2008.  This loss was largely attributable to non-performing loans, which directly reflected the down economy and its impact on the commercial sector, according to Van Der Stad.  While the Bank expects 2010 to show a stronger financial performance as the year goes forward, management expects the change to be gradual, he added.

"At the same time, 2009 also provided positive notes that allow the Board of Directors and Management to feel confident about the longer-term outlook," Van Der Stad said.  "The Bank continues to grow, with 2009 showing increases in assets, loans and deposits, and remains strongly capitalized."

At December 31, 2009, New Millennium Bank's total assets increased 11.8 percent to $249.7 million; net loans increased 9.9 percent to $179.0 million; and deposits increased 15.7 percent to $203.0 million, when compared to December 31, 2008.  On December 31, 2009, the Tier 1 Leverage Ratio, Tier 1 Risk Based Capital Ratio and Total Risk Based Capital Ratio for the Bank were 8.3 percent, 12.0 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, according to Van Der Stad.

"In addition, we opened our third branch in Franklin Township in October and plan to open a fourth branch in Somerville in the summer of 2010, demonstrating our commitment to expanding our market for new customer relationships and business opportunities," Van Der Stad said.

Under-performing loans and a substantial increase in FDIC insurance expense partly due to the FDIC's special assessment were the greatest contributors to the Bank's loss for 2009, according to Van Der Stad.  

"As a community bank, we recognize the vital role small businesses play in the local, state and national economy and continued to lend to this sector throughout the down economy, including as a Small Business Administration Preferred Lender," he said. "At the same time, management prudently manages lending by aggressively identifying problem loans as they develop and making provisions accordingly."

The Bank made provisions for possible loan losses for the year of $2.6 million.  This combination of under-performing loans and prudent loan provision management largely accounted for the negative impact to earnings for the year, according to Van Der Stad.

"However, we believe these measures will better position New Millennium Bank for a stronger financial performance in 2010 and beyond, best serving the longer-term interests of the Bank and its shareholders," Van Der Stad said.

Those longer-term interests also will be served by the Bank's new branch in Franklin Township and the expected opening of a fourth branch this summer in Somerville, according to Van Der Stad.  The opening of the Franklin Township branch in October resulted in new deposits of over $20 million.

"While the opening of new branches results in some short-term decline in earnings, the expansion of our market offers greater potential for reward going forward by widening our customer base, expanding our market area and building shareholder value," he said.  

"Our financial results for 2009 were disappointing and we expect 2010 to only slowly show improvement.  However, the Board of Directors and Bank Management are confident our solid capitalization combined with the prudent steps management has taken in the past 12 months and the measures for growth put in place for the coming year and beyond, will result in a return to positive earnings – and a stronger bank – going forward."

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