Naugatuck Valley Financial (NVSL) in Connecticut is expecting to record its third consecutive quarterly loss after writing down roughly $5.3 million on five loans during the current quarter.
The writedown, which is a noncash charge, relates to five previously classified commercial loans in the bank's portfolio that had an aggregate carrying value of about $11.4 million at June 30.
The $558 million-asset company said Monday that it expects to record a provision for loan losses at least equal to the writedown amount during the quarter that will end Sept. 30 to replenish its allowance for loan losses. At June 30 its allowance was $8.4 million.
Naugatuck swung to a loss in the