NEW BRUNSWICK, NJ–New Millennium Bank announced on October 3 that the Federal Deposit Insurance Corporation (FDIC) has terminated their consent order which they agreed to with the bank on November 16, 2010.
The recent recapitalization of the city-based bank, in which an investor group raised $16.8 million in new capital for the bank, led to the termination of the consent order.
Following the recapitalizing of the bank, Mr. H.S. Hur became the president and CEO of the New Millennium Bank of New Brunswick, and a new board of directors was installed.
The New Jersey Department of Banking and Insurance reported that the New Millennium Bank of New Brunswick entered into this consent order because of “safety and soundness issues,” related to capital, asset quality, earnings, and liquidity.
The FDIC issued a consent order to the New Millennium, which states a set of rules and regulations that the bank must follow while it is in the consent agreement with the FDIC.
These rules and regulations were designed to get the bank back to an acceptable level of performance.
This incident was not the most recent run-in with the FDIC for the bank. According to Bloomberg.com, the bank agreed to another consent order with the FDIC on December 26, 2012.
Under that consent order the bank had to make restitution payments to certain customers who were adversely affected by its prior credit card, marketing and administrative practices, as well as pay the FDIC a civil money penalty.
The new president and CEO of New Millennium Bank, H.S. Hur stated, “The lifting of the Consent Order is one more step in the Bank’s return to healthy, profitable operations. We appreciate that the FDIC and NJDOBI recognize the progress we have made.”
Mr. Hur announced that the next step of progress for New Millennium Bank is to open a branch in Bergen County, for which they are actively working on securing a site for.