lent $31 million to businesses and $80 million to individuals and families through the first half of 2012. The loan originations helped the bank earn $2.1 million for the six month period ended June 30, 2012, a 35% increase over the same period last year.
Charles J Boulier III, President of the Bank, commented that “we are very pleased with these results. The earnings growth can be attributed to the success the bank has had in growing our deposit base through our branching, virtual banking strategies and deploying these funds in loans to our residential mortgage and small business customers. The historical low home mortgage rates significantly increased the loan refinance activity which provided many of our customers with lower monthly mortgage payments.”
Mark Yanarella Chairman and CEO added “Highlights from the first six months of 2012 include the launch of Naugatuck Savings Bank’s mobile banking product, giving customers access to banking 24/7 from their mobile device; the opening of the Bank’s 18th branch at 3670 East Main Street, Waterbury in April and the third annual Community Awards Program held in May, at which 35 local nonprofit organizations were awarded grants voted on by Bank customers”
Total assets as of June 30, 2012 are $953.7 million, an increase of $38.1 million or 4.2% for the six month period. Growth in deposits of $38.7 million, or 5.2%, funded the asset growth. These funds were invested in loans and short term investments. Total loans are $760.9 million compared to $749.6 million as of December 31, 2011.
The $548 thousand increase in earnings was attributed to an increase of $828 thousand in net interest income and an increase of $1.3 million increase in non-interest income, a $165 thousand decrease in the provision for loan losses offset by a $1.4 million increase in non-interest expense and a $205 thousand increase in the provision for taxes. Boulier noted that “the increase in non-interest expenses was due to the investment associated with the branching strategy, increases in loan origination costs, employee benefit costs and marketing expenses.”
Naugatuck Savings Bank, a wholly owned subsidiary of Nutmeg Financial, MHC, has been serving customers throughout Connecticut’s Greater Naugatuck Valley and central Connecticut since 1870. Locally owned, the bank is committed to helping individual customers as well as the community at large. Naugatuck Savings Bank offers personal banking, business banking and financial services at its 18 branch locations.