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New Millennium Bank Enters Into Order With The FDIC

NEW BRUNSWICK, N.J., Dec. 26, 2012 /PRNewswire/ -- New Millennium Bank (OTCQB "NMNB") announced today that its Board of Directors has agreed to a Consent Order with the Federal Deposit Insurance Corporation regarding its credit card marketing and administrative practices. Under the order, the Bank will make restitution payments to certain customers adversely affected by its prior practices, and pay to the FDIC a civil money penalty.

Simultaneously, the Bank announced that it is selling its remaining credit card portfolio to another financial institution, thereby fully exiting the credit card business. The transaction is expected to close either late in December 2012 or early in January 2013, subject to regulatory approval.   

The Bank estimates that it will incur a charge of approximately $4.2 million in connection with complying with the Consent Order. The charge will be recognized as of year end 2011, and the Bank will restate it previously filed financial statements to reflect this charge.   

 

SOURCE New Millennium Bank

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