Naugatuck Savings Bank lent $27 million to businesses and $103 million to individuals and families through the first half of 2013, according to a news release submitted by the bank.
Marketing Officer Marylou Cunningham said the loan originations helped the bank earn $2 million for the six-month period ending June 30, 2013, which is consistent with the same period last year.
Charles J Boulier III, President and CEO of the Bank, said, “We are very pleased with these results. Although interest rate margin continues to be under pressure, our earnings are stable due to the success the bank has had in growing our deposit base through our branching, virtual banking and deploying these funds in loans to our consumer and small business customers.”
Total assets as of June 30, 2013 are $972 million, an increase of $30 million or 3 percent since Dec. 31, 2012. Growth in deposits during 2013 of $29 million, or 4%, helped fund the asset growth. These funds were invested primarily in loans to consumers. Total loans are $769 million compared to $751 million as of Dec. 31, 2012.
The steady growth in loans and deposits provided stability to earnings of $2 million in the first six months of 2012 and 2013. The decline in net interest income of $442 thousand and $779 thousand increase in non-interest expense was offset by an increase of $739 thousand in non-interest income and a $300 thousand decrease in the provision for loan losses. Boulier noted that “the increase in non-interest expenses was due to the investment associated with the expansion strategy, increases in loan origination costs, employee benefit costs and marketing expenses.”
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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 19 branch locations.