Naugatuck Valley Financial Corp. said the sale of a nonperforming loan portfolio and improved credit quality among its borrowers helped push its second quarter net income into the black.
The parent of Naugatuck Valley Savings and Loan, which has Naugatuck and Hamden branches, among others, netted $94,000, or 1 cent per diluted share, up from a loss of $4.8 million, or 72 cents, a year ago.
Though both net interest income and noninterest income fell during the quarter, a $2.5 million credit to the bank’s provision for loan losses overcame the declined. The credit was the result of a reduction in nonperforming loans through sale, and improvement to the bank’s loan portfolio.
In the second quarter last year, Naugatuck’s loan loss provision was $3.6 million.