The parent of Naugatuck Valley Savings and Loan posted a nearly two-thirds drop in fourth-quarter net income amid the thrift’s worsening loan portfolio.
Naugatuck Valley Financial Corp. earned $254,000, or 3 cents a share, in the three months ended Dec. 31, down from $684,000, or 10 cents a share, earned the same the quarter a year earlier.
In 2010, the parent earned $1.5 million, or 21 cents a share, down from $2 million, or 29 cents a share, earned for all of 2009.
On Dec. 31, the thrift’s loans more than 90 days past due and foreclosed assets totaled $18.3 million, or 3.2 percent of total assets, up from $6 million, or 1.1 percent of assets, at the close of 2009.
Still, parent Naugatuck Valley Financial Corp. says it will pay its quarterly dividend of 3 cents a share March 1 to stockholders of record as of Feb. 8.
 However, Naugatuck Valley Mutual Holding Co., the parent’s mutual holding company, intends to waive payment of all but $60,000 of its share of the dividend payout to build up capital.
Naugatuck Valley Financial, which late last year broke off merger talks with Southern Connecticut Bancorp after regulators balked, recently announced its intent to pursue conversion to a public company.
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