Millennium Bank Participates in the Treasury Department’ s Capital Purchase Program
Millennium Bank, a wholly-owned subsidiary of Millennium Bancorp, Inc., announced that it has elected to participate in the U.S. Department of the Treasury's Capital Purchase Program (CPP). Through the program, the Treasury invested $7.26 million in Millennium Bank's preferred stock. The transaction was completed on April 3, 2009.
The CPP is a voluntary program in which the U.S. government, through the Department of the Treasury, invests in preferred equity securities issued by qualified financial institutions. In return for its investment, the Treasury will receive dividend payments while the investment is outstanding. Participation is reserved for healthy, viable institutions that are recommended by their applicable federal banking regulator -- the FDIC, in Millennium Bank's case.
Donald Mengedoth, Chairman of Millennium Bank, highlighted key reasons for the Treasury investments:
The CPP is a voluntary program in which the U.S. government, through the Department of the Treasury, invests in preferred equity securities issued by qualified financial institutions. In return for its investment, the Treasury will receive dividend payments while the investment is outstanding. Participation is reserved for healthy, viable institutions that are recommended by their applicable federal banking regulator -- the FDIC, in Millennium Bank's case.
Donald Mengedoth, Chairman of Millennium Bank, highlighted key reasons for the Treasury investments:
- Participation in the program is a reflection of the company's continuing strength. The capital investment allows Millennium Bank to expand the ability to generate quality loans to families and businesses within its communities and to support the economy.
- Participation also allows Millennium Bank to pursue growth and opportunities presented in today's economic environment. CPP is a program that improves Millennium Bank's capital base, which will help to sustain the growth it has experienced for each of the last five years.
- Millennium Bank has remained "well capitalized" by federal banking standards; the addition of new capital through the Treasury program will increase its regulatory capital by approximately 25 percent.
- The Treasury is providing this program to healthy banks that are well managed and well capitalized. The CPP is not a "bailout." As the Treasury notes, only healthy banks that lend to their communities are eligible. CPP is a program for healthy banks.
- Millennium Bank feels that it is important to participate in any available program that provides additional financial stability to its customers and communities, including Treasury and FDIC programs.
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