Feds buy stock in Vail Valley’s Millennium Bank
Vail, CO, Colorado
Millennium Bank, a wholly-owned subsidiary of Millennium Bancorp, Inc., doing business in the Vail Valley, has announced it will participate in the U.S. Department of the Treasury’s Capital Purchase Program. The federal agency has $7.26 million in Millennium Bank’s preferred stock.
The Capital Purchase Program is voluntary. 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 institutions that are recommended by their applicable federal banking regulator ” in this case, the Federal Deposit Insurance Corporation.
“We are pleased to participate in the program, which is a reflection of our company’s continuing strength,” said Donald R. Mengedoth, chairman and CEO of Millennium Bank. “The capital investment allows us to expand our ability to generate quality loans to families and businesses within our communities. We believe the treasury has created an attractive program that improves our capital base which will help to sustain the growth we have experienced for each of the last five years.”
Although Millennium Bank has remained well capitalized by federal banking standards, the addition of new money through the treasury program will increase its regulatory capital ratios by approximately 25 percent.
“It is important to note that the treasury is providing this program to healthy banks that are well managed and well capitalized,” Mengedoth said. “Only healthy banks that lend to their communities are eligible.”
For more information, go to http://www.mymillenniumbank.com.