Naugatuck Valley Financial (NVSL) in Connecticut has been hit with a regulatory enforcement action.
The Federal Reserve Board hit Naugatuck Valley with a memorandum of understanding on May 21, the $526 million-asset company said late Friday. The agreement requires the company to submit cash-flow projections and quarterly reports and bars it from paying dividends, taking on debt or changing its senior management without Fed approval.
Naugatuck Valley also reported Friday that it lost $591,000 in the first-quarter, compared to a $2.7 million loss a year earlier. Net interest income fell 13% from a year earlier, to $4.3 million, but a lower loan-loss provision helped the company narrow its losses.
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The company's Naugatuck Valley Savings and Loan is well-capitalized, with a 9.85% Tier 1 leverage ratio and total risk-based capital of 16.09% on March 31, according to the Federal Deposit Insurance Corp.