Naugatuck Valley Financial Corporation to Record Loan Write Down in Current Quarter

NAUGATUCK, Conn., Aug. 27, 2012 (GLOBE NEWSWIRE) -- Naugatuck Valley
Financial Corporation (the "Company"), the holding company for
Naugatuck Valley Savings and Loan (the "Bank"), announced today that
the Bank will write down approximately $5.3 million during the quarter
ending September 30, 2012 related to five previously-classified
commercial loans in the Bank's loan portfolio. At June 30, 2012, these
loans had an aggregate carrying value of approximately $11.4 million.
The write down is a non-cash charge. As a result of the write down, the
Company expects to record a provision for loan losses during the
quarter ending September 30, 2012 in an amount at least equal to the
amount of the write down in order to replenish the Bank's allowance for
loan losses, which is expected to result in a net loss for the quarter.
At June 30, 2012, the allowance for loan losses amounted to $8.4
million. The Bank expects to remain "well capitalized" under applicable
regulatory capital guidelines after the write down.

Naugatuck Valley Financial Corporation is the holding company for
Naugatuck Valley Savings and Loan. In addition to its main office in
Naugatuck, the Bank operates nine other branch offices in Southwestern
Connecticut. The Bank is a community-oriented financial institution
dedicated to serving the financial services needs of consumers and
businesses within its market area.

The Naugatuck Valley Financial Corporation logo is available at
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This press release contains forward-looking statements with the meaning
of Section 21E of the Securities and Exchange Act of 1934, as amended.
These statements are often identified by forward-looking words such as
"expect," "believe," anticipate," or other words with similar meanings.
Forward-looking statements are not statements of fact and a number of
factors could cause actual results to differ materially from expected
results. All forward-looking statements included in this press release
are based upon information available to the Company as of the date of
this press release. Except as may be required by applicable law, the
Company assumes no obligation to update or revise any such
forward-looking statements. For additional discussion of the risks and
uncertainties generally applicable to the Company, see the "Risk
Factors" section of the Company's Form 10-K for the year ended December
31, 2011 and its subsequent Quarterly Reports on Form 10-Q.

CONTACT: Carlos S. Batista
Chairman of the Board
(203) 720-5000

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