Exhibit
99.1





PRESS
RELEASE











Naugatuck
Valley Financial Corporation Reports
 2008
Year End and Fourth Quarter Results
 
 
 Naugatuck, CT, January 27,
2009.  Naugatuck Valley Financial Corporation (the “Company”) (NASDAQ
Global Market: “NVSL”), the parent company of Naugatuck Valley Savings and Loan
(the “Bank”), announced net income of $1.4 million, or $0.20 per share for the
quarter ended December 31, 2008 and a net loss of $312,000, or $0.05 per share,
for the year ended December 31, 2008, compared to net income of $479,000 for the
quarter ended December 31, 2007, and net income of $1.4 million for the year
ended December 31, 2007.  Income for the fourth quarter and the year
ended December 31, 2008 was significantly affected by Other Than Temporary
Impairment (“OTTI”) charges of $3.2 million taken in the quarter ended September
30, 2008, and $211,000 taken in the quarter ended December 31, 2008 on auction
rate pass through certificates with Fannie Mae preferred stock as underlying
collateral and the related tax effects.  After the OTTI charges, the
carrying value of the auction rate pass through certificates with Fannie Mae
preferred stock as underlying collateral have been written down to
$73,000.  Without the OTTI charges and the related tax effects, net
income for the quarter and year ended December 31, 2008 would have been $400,000
and $2.0 million, or $0.06 and $0.28 per share respectively, as shown in the
table below.
 
 SELECTED
      OPERATIONS DATAThree
      Months Ended
                                                                                                                                                
                                                                                                                                                
                                                                                                                                                For
      the Year EndedDecember
      31, 2008
                                                                                                                                                
                                                                                                                                                December
      31, 2008Before
                                                                                                                                                
                                                                                                                                                
                                                                                                                                                OTTI
                                                                                                                                                
                                                                                                                                                
                                                                                                                                                After
                                                                                                                                                
                                                                                                                                                
                                                                                                                                                Before
                                                                                                                                                
                                                                                                                                                
                                                                                                                                                OTTI
                                                                                                                                                
                                                                                                                                                
                                                                                                                                                AfterOTTI
                                                                                                                                                
                                                                                                                                                
                                                                                                                                                Charge
                                                                                                                                                
                                                                                                                                                
                                                                                                                                                OTTI
                                                                                                                                                
                                                                                                                                                
                                                                                                                                                OTTI
                                                                                                                                                
                                                                                                                                                
                                                                                                                                                Charge
                                                                                                                                                
                                                                                                                                                
                                                                                                                                                OTTI(Unaudited)(In
      thousands, except per share data)Total
      interest income
                                                                                                                                                
                                                                                                                                                $
                                                                                                                                                7,255
                                                                                                                                                
                                                                                                                                                
                                                                                                                                                
                                                                                                                                                
                                                                                                                                                
                                                                                                                                                $
                                                                                                                                                7,255
                                                                                                                                                
                                                                                                                                                
                                                                                                                                                $
                                                                                                                                                28,203
                                                                                                                                                
                                                                                                                                                
                                                                                                                                                
                                                                                                                                                
                                                                                                                                                
                                                                                                                                                $
                                                                                                                                                28,203Total
      interest expense
                                                                                                                                                
                                                                                                                                                
                                                                                                                                                3,515
                                                                                                                                                
                                                                                                                                                
                                                                                                                                                
                                                                                                                                                
                                                                                                                                                
                                                                                                                                                
                                                                                                                                                3,515
                                                                                                                                                
                                                                                                                                                
                                                                                                                                                
                                                                                                                                                13,904
                                                                                                                                                
                                                                                                                                                
                                                                                                                                                
                                                                                                                                                
                                                                                                                                                
                                                                                                                                                
                                                                                                                                                13,904Net
      interest income
                                                                                                                                                
                                                                                                                                                
                                                                                                                                                3,740
                                                                                                                                                
                                                                                                                                                
                                                                                                                                                
                                                                                                                                                
                                                                                                                                                
                                                                                                                                                
                                                                                                                                                3,740
                                                                                                                                                
                                                                                                                                                
                                                                                                                                                
                                                                                                                                                14,299
                                                                                                                                                
                                                                                                                                                
                                                                                                                                                
                                                                                                                                                
                                                                                                                                                
                                                                                                                                                
                                                                                                                                                14,299Provision
      for loan losses
                                                                                                                                                
                                                                                                                                                
                                                                                                                                                200
                                                                                                                                                
                                                                                                                                                
                                                                                                                                                
                                                                                                                                                
                                                                                                                                                
                                                                                                                                                
                                                                                                                                                200
                                                                                                                                                
                                                                                                                                                
                                                                                                                                                
                                                                                                                                                675
                                                                                                                                                
                                                                                                                                                
                                                                                                                                                
                                                                                                                                                
                                                                                                                                                
                                                                                                                                                
                                                                                                                                                675Net
      interest income after provision for loan losses
                                                                                                                                                
                                                                                                                                                
                                                                                                                                                3,540
                                                                                                                                                
                                                                                                                                                
                                                                                                                                                
                                                                                                                                                
                                                                                                                                                
                                                                                                                                                
                                                                                                                                                3,540
                                                                                                                                                
                                                                                                                                                
                                                                                                                                                
                                                                                                                                                13,624
                                                                                                                                                
                                                                                                                                                
                                                                                                                                                
                                                                                                                                                
                                                                                                                                                
                                                                                                                                                
                                                                                                                                                13,624Noninterest
      income (loss)
                                                                                                                                                
                                                                                                                                                
                                                                                                                                                512
                                                                                                                                                
                                                                                                                                                
                                                                                                                                                
                                                                                                                                                (211
                                                                                                                                                )
                                                                                                                                                
                                                                                                                                                
                                                                                                                                                301
                                                                                                                                                
                                                                                                                                                
                                                                                                                                                
                                                                                                                                                2,379
                                                                                                                                                
                                                                                                                                                
                                                                                                                                                
                                                                                                                                                (3,427
                                                                                                                                                )
                                                                                                                                                
                                                                                                                                                
                                                                                                                                                (1,048
                                                                                                                                                )Noninterest
      expense
                                                                                                                                                
                                                                                                                                                
                                                                                                                                                3,539
                                                                                                                                                
                                                                                                                                                
                                                                                                                                                
                                                                                                                                                
                                                                                                                                                
                                                                                                                                                
                                                                                                                                                
                                                                                                                                                3,539
                                                                                                                                                
                                                                                                                                                
                                                                                                                                                
                                                                                                                                                13,454
                                                                                                                                                
                                                                                                                                                
                                                                                                                                                
                                                                                                                                                
                                                                                                                                                
                                                                                                                                                
                                                                                                                                                
                                                                                                                                                13,454Income
      (loss) before provisionfor
      income taxes
                                                                                                                                                
                                                                                                                                                
                                                                                                                                                513
                                                                                                                                                
                                                                                                                                                
                                                                                                                                                
                                                                                                                                                (211
                                                                                                                                                )
                                                                                                                                                
                                                                                                                                                
                                                                                                                                                302
                                                                                                                                                
                                                                                                                                                
                                                                                                                                                
                                                                                                                                                2,549
                                                                                                                                                
                                                                                                                                                
                                                                                                                                                
                                                                                                                                                (3,427
                                                                                                                                                )
                                                                                                                                                
                                                                                                                                                
                                                                                                                                                (878
                                                                                                                                                )Provision
      (benefit) for income taxes
                                                                                                                                                
                                                                                                                                                
                                                                                                                                                113
                                                                                                                                                
                                                                                                                                                
                                                                                                                                                
                                                                                                                                                1,165
                                                                                                                                                
                                                                                                                                                
                                                                                                                                                
                                                                                                                                                (1,052
                                                                                                                                                )
                                                                                                                                                
                                                                                                                                                
                                                                                                                                                599
                                                                                                                                                
                                                                                                                                                
                                                                                                                                                
                                                                                                                                                1,165
                                                                                                                                                
                                                                                                                                                
                                                                                                                                                
                                                                                                                                                (566
                                                                                                                                                )Net
      income (loss)
                                                                                                                                                
                                                                                                                                                $
                                                                                                                                                400
                                                                                                                                                
                                                                                                                                                
                                                                                                                                                $
                                                                                                                                                954
                                                                                                                                                
                                                                                                                                                
                                                                                                                                                $
                                                                                                                                                1,354
                                                                                                                                                
                                                                                                                                                
                                                                                                                                                $
                                                                                                                                                1,950
                                                                                                                                                
                                                                                                                                                
                                                                                                                                                $
                                                                                                                                                (2,262
                                                                                                                                                )
                                                                                                                                                
                                                                                                                                                $
                                                                                                                                                (312
                                                                                                                                                )Earnings
      (loss) per common share - basic and diluted
                                                                                                                                                
                                                                                                                                                $
                                                                                                                                                0.06
                                                                                                                                                
                                                                                                                                                
                                                                                                                                                
                                                                                                                                                
                                                                                                                                                
                                                                                                                                                
                                                                                                                                                $
                                                                                                                                                0.20
                                                                                                                                                
                                                                                                                                                
                                                                                                                                                $
                                                                                                                                                0.28
                                                                                                                                                
                                                                                                                                                
                                                                                                                                                
                                                                                                                                                
                                                                                                                                                
                                                                                                                                                
                                                                                                                                                $
                                                                                                                                                (0.05
                                                                                                                                                )
 
 John C. Roman, President and CEO,
commented: “Although we are disappointed by the effects of the OTTI charges on
our earnings, we are encouraged by our core results in 2008 which, without the
OTTI charge, would have produced a 42% increase in net income as compared to
2007 results.”
  
  
 Net
Interest Income
 
 Net interest income for the quarter
ended December 31, 2008 totaled $3.7 million compared to $3.1 million for the
quarter ended December 31, 2007, an increase of $602,000 or
19.2%.  For the twelve month period ended December 31, 2008, net
interest income totaled $14.3 million compared to $11.9 million for the twelve
months ended December 31, 2007, an increase of $2.4 million or
20.6%.  The increase in net interest income is due to an increase in
the average balances of interest earning assets of 18.5% and 17.6% for the three
and twelve month periods respectively, partially offset by decreases of 49 basis
points and 26 basis points in the average rate earned on these assets over the
same periods.  The increase in interest earning assets is attributed
primarily to an increase in the loan portfolio.  The average balances
in the loan portfolio increased by 19.8% in the three month period, and by 17.6%
in the twelve month period.  The largest increases were in the
commercial mortgage portfolio followed by the residential mortgage
portfolio.
 
 The increase in interest income was
partially offset by an increase in interest expense.  Interest expense
increased by $20,000, or 0.6% in the three month period and increased by
$730,000 or 5.5% in the twelve month period, due to an increase in the average
balances of deposits and borrowings.  The average balances of deposits
increased by 11.7% and 11.3% and the average balance of borrowings increased by
59.3% and 53.7% over the three and twelve month periods respectively, while the
average rates paid on these deposits and borrowings decreased by 57 basis points
and 40 basis points, respectively, over the same periods.  The
increases were primarily used to fund increased loan demand.  The
largest increases in deposits were in certificates of deposit, followed by
smaller increases in savings accounts and money market accounts, partially
offset by a decrease in checking accounts in the twelve month
period.  The increase in certificates of deposit was due primarily to
competitive rate promotional accounts that were offered in conjunction with the
opening of our 10th office
in late June 2008.
 
 Credit
Quality
 
 The Bank
recorded a provision for loan losses of $200,000 for the three months ended
December 31, 2008 compared to $100,000 for the three months ended December 31,
2007.  For the twelve months ended December 31, 2008, the Bank
recorded a provision of $675,000, compared to $151,000 for the twelve months
ended December 31, 2007.  The increase in the provisions are due to
the increased size of the loan portfolio, a change in the mix of the portfolio
towards commercial loans which are generally riskier than one-to-four family
loans, and general economic conditions.
 
 Non-performing
loans totaled $2.7 million at December 31, 2008 compared to $1.0 million at
December 31, 2007.  This increase was primarily due to the transfer of
three commercial loans secured by real estate in the amount of $1.4 million to
non-accrual status during this period.  Management does not anticipate
any losses on these loans due to the value of the real estate securing the
loans.
 
 Noninterest
Income
 
 Excluding
the OTTI charge, noninterest income was $512,000 for the quarter ended December
31, 2008 compared to $647,000 for the quarter ended December 31, 2007, a
decrease of 20.7%, primarily due to the loss on the sale of an
investment.  Excluding the OTTI charge, noninterest income was $2.4
million in both the twelve months ended December 31, 2008 and
2007.  Noninterest income, net of the OTTI charge, was $301,000 and a
net loss of $1.0 million for the three and twelve months ended December 31,
2008, respectively.
  
  
 
 Noninterest
Expense
 
 Noninterest
expense was $3.5 million for the quarter ended December 31, 2008 compared to
$3.1 million for the quarter ended December 31, 2007.  For the twelve
months ended December 31, 2008 noninterest expense was $13.5 million compared to
$12.4 million for the twelve months ended December 31, 2007.  The
increase in both periods was primarily the result of increases in compensation
costs, office occupancy, and computer processing costs over the 2007
periods.  The increases were partially offset by a decrease in
advertising expense.
 
 Selected
Balance Sheet Data
 
 Total
assets were $535.4 million at December 31, 2008 compared to $462.5 million at
December 31, 2007, an increase of $72.9 million or 15.8%.  Total
liabilities were $489.8 million at December 31, 2008 compared to $412.1 million
at December 31, 2007.  Deposits at December 31, 2008 were $363.0
million, an increase of $41.6 million or 13.0% over December 31,
2007.  Borrowed funds increased from $85.1 million at December 31,
2007 to $119.1 million at December 31, 2008.  The increases in
deposits and borrowings were primarily used to fund growth in
loans.
 
 Total
stockholders’ equity was $45.6 million at December 31, 2008 compared to $50.5
million at December 31, 2007, due to a net increase in the unrealized loss on
available for sale securities of $2.4 million, stock repurchases of $2.2
million, net loss of $312,000 for the twelve month period, dividends of $614,000
paid to stockholders, and $676,000 in capital adjustments related to the
Company’s 2005 Equity Incentive Plan.  At December 31, 2008, the
Bank’s regulatory capital exceeded the levels required to be categorized as
“well capitalized” under applicable regulatory capital guidelines.
 
 Mr. Roman added: “We are confident that
our capital, reserves and asset quality, combined with an effective business
plan, will provide us with the strength needed to weather the current economic
downturn.  We continue to be dedicated to building long term value for
our shareholders and customers.”
 
 
 About
Naugatuck Valley
 
 Naugatuck
Valley Savings and Loan is headquartered in Naugatuck, Connecticut with nine
other branches in Southwest Connecticut. The Bank is a community-oriented
financial institution dedicated to serving the financial service needs of
consumers and businesses within its market area.
 
 
 Non-GAAP
Financial Measures
 
 This
news release contains certain non-GAAP financial measures in addition to results
presented in accordance with Generally Accepted Accounting Principles
(“GAAP”).  These measures include net income, noninterest income and
earnings per share before the OTTI charge.  These measures should not
be construed as a substitute for GAAP measures; they should be read and used in
conjunction with the Company’s GAAP financial information.  A
reconciliation of the included non-GAAP financial measures to GAAP measures is
included elsewhere in this release.
  
  
 
 Forward-Looking
Statements
 
 This news release may contain
forward-looking statements, which can be identified by the use of words such as
"believes," "expects," "anticipates," "estimates" or similar
expressions.  Such forward-looking statements and all other statements
that are not historic facts are subject to risks and uncertainties which could
cause actual results to differ materially from those currently anticipated due
to a number of factors.  These factors include, but are not limited
to, general economic conditions, changes in the interest rate environment,
legislative or regulatory changes that may adversely affect our business,
changes in accounting policies and practices, changes in competition and demand
for financial services, adverse changes in the securities markets, changes in
deposit flows and changes in the quality or composition of the Company's loan or
investment portfolios.  Additionally, other risks and uncertainties
may be described in the Company's annual report on Form 10-K, its quarterly
reports on Form 10-Q or its other reports as filed with the Securities and
Exchange Commission which are available through the SEC's website at
www.sec.gov.  Should one or more of these risks materialize, actual
results may vary from those anticipated, estimated or projected. Readers are
cautioned not to place undue reliance on these forward-looking statements, which
speak only as of the date of this press release.  Except as may be
required by applicable law or regulation, the Company assumes no obligation to
update any forward-looking statements.
 
 SELECTED
      FINANCIAL CONDITION DATADecember
      31,
                                              
                                              
                                              December
      31,2008
                                              
                                              
                                              2007(Unaudited)(In
      thousands)ASSETSCash
      and due from depository institutions
                                              
                                              $
                                              8,214
                                              
                                              
                                              $
                                              7,873Investment
      in federal funds
                                              
                                              
                                              33
                                              
                                              
                                              
                                              497Investment
      securities
                                              
                                              
                                              63,844
                                              
                                              
                                              
                                              66,454Loans
      receivable, net
                                              
                                              
                                              431,976
                                              
                                              
                                              
                                              359,831Deferred
      income taxes
                                              
                                              
                                              2,833
                                              
                                              
                                              
                                              1,332Other
      assets
                                              
                                              
                                              28,486
                                              
                                              
                                              
                                              26,540Total
      assets
                                              
                                              $
                                              535,386
                                              
                                              
                                              $
                                              462,527LIABILITIES
      AND STOCKHOLDERS' EQUITYLiabilitiesDeposits
                                              
                                              $
                                              363,026
                                              
                                              
                                              $
                                              321,398Borrowed
      funds
                                              
                                              
                                              119,148
                                              
                                              
                                              
                                              85,107Other
      liabilities
                                              
                                              
                                              7,623
                                              
                                              
                                              
                                              5,565Total
      liabilities
                                              
                                              
                                              489,797
                                              
                                              
                                              
                                              412,070Total
      stockholders' equity
                                              
                                              
                                              45,589
                                              
                                              
                                              
                                              50,457Total
      liabilities and stockholders' equity
                                              
                                              $
                                              535,386
                                              
                                              
                                              $
                                              462,527
 
  
  SELECTED
      OPERATIONS DATAThree
      Months Ended
                                                                                            
                                                                                            
                                                                                            For
      the Year EndedDecember
      31,
                                                                                            
                                                                                            
                                                                                            December
      31,2008
                                                                                            
                                                                                            
                                                                                            2007
                                                                                            
                                                                                            
                                                                                            2008
                                                                                            
                                                                                            
                                                                                            2007(Unaudited)(In
      thousands, except per share data)Total
      interest income
                                                                                            
                                                                                            $
                                                                                            7,255
                                                                                            
                                                                                            
                                                                                            $
                                                                                            6,633
                                                                                            
                                                                                            
                                                                                            $
                                                                                            28,203
                                                                                            
                                                                                            
                                                                                            $
                                                                                            25,030Total
      interest expense
                                                                                            
                                                                                            
                                                                                            3,515
                                                                                            
                                                                                            
                                                                                            
                                                                                            3,495
                                                                                            
                                                                                            
                                                                                            
                                                                                            13,904
                                                                                            
                                                                                            
                                                                                            
                                                                                            13,174Net
      interest income
                                                                                            
                                                                                            
                                                                                            3,740
                                                                                            
                                                                                            
                                                                                            
                                                                                            3,138
                                                                                            
                                                                                            
                                                                                            
                                                                                            14,299
                                                                                            
                                                                                            
                                                                                            
                                                                                            11,856Provision
      for loan losses
                                                                                            
                                                                                            
                                                                                            200
                                                                                            
                                                                                            
                                                                                            
                                                                                            100
                                                                                            
                                                                                            
                                                                                            
                                                                                            675
                                                                                            
                                                                                            
                                                                                            
                                                                                            151Net
      interest income after provision for loan losses
                                                                                            
                                                                                            
                                                                                            3,540
                                                                                            
                                                                                            
                                                                                            
                                                                                            3,038
                                                                                            
                                                                                            
                                                                                            
                                                                                            13,624
                                                                                            
                                                                                            
                                                                                            
                                                                                            11,705Noninterest
      income (loss)
                                                                                            
                                                                                            
                                                                                            301
                                                                                            
                                                                                            
                                                                                            
                                                                                            647
                                                                                            
                                                                                            
                                                                                            
                                                                                            (1,048
                                                                                            )
                                                                                            
                                                                                            
                                                                                            2,354Noninterest
      expense
                                                                                            
                                                                                            
                                                                                            3,539
                                                                                            
                                                                                            
                                                                                            
                                                                                            3,104
                                                                                            
                                                                                            
                                                                                            
                                                                                            13,454
                                                                                            
                                                                                            
                                                                                            
                                                                                            12,422Income
      (loss) before provisionfor
      income taxes
                                                                                            
                                                                                            
                                                                                            302
                                                                                            
                                                                                            
                                                                                            
                                                                                            581
                                                                                            
                                                                                            
                                                                                            
                                                                                            (878
                                                                                            )
                                                                                            
                                                                                            
                                                                                            1,637Provision
      (benefit) for income taxes
                                                                                            
                                                                                            
                                                                                            (1,052
                                                                                            )
                                                                                            
                                                                                            
                                                                                            102
                                                                                            
                                                                                            
                                                                                            
                                                                                            (566
                                                                                            )
                                                                                            
                                                                                            
                                                                                            217Net
      income (loss)
                                                                                            
                                                                                            $
                                                                                            1,354
                                                                                            
                                                                                            
                                                                                            $
                                                                                            479
                                                                                            
                                                                                            
                                                                                            $
                                                                                            (312
                                                                                            )
                                                                                            
                                                                                            $
                                                                                            1,420Earnings
      (loss) per common share - basic and diluted
                                                                                            
                                                                                            $
                                                                                            0.20
                                                                                            
                                                                                            
                                                                                            $
                                                                                            0.07
                                                                                            
                                                                                            
                                                                                            $
                                                                                            (0.05
                                                                                            )
                                                                                            
                                                                                            $
                                                                                            0.20
  SELECTED
      FINANCIAL RATIOSFor
      the Three Months
                                                                                      
                                                                                      
                                                                                      For
      the YearSELECTED
      PERFORMANCE RATIOS: (1)
                                                                                      
                                                                                      Ended
      December 31,
                                                                                      
                                                                                      
                                                                                      Ended
      December 31,2008
                                                                                      
                                                                                      
                                                                                      2007
                                                                                      
                                                                                      
                                                                                      2008
                                                                                      
                                                                                      
                                                                                      2007(Unaudited)Return
      on average assets
                                                                                      
                                                                                      
                                                                                      1.03
                                                                                      %
                                                                                      
                                                                                      
                                                                                      0.42
                                                                                      %
                                                                                      
                                                                                      
                                                                                      -0.06
                                                                                      %
                                                                                      
                                                                                      
                                                                                      0.33
                                                                                      %Return
      on average equity
                                                                                      
                                                                                      
                                                                                      11.99
                                                                                      
                                                                                      
                                                                                      
                                                                                      3.78
                                                                                      
                                                                                      
                                                                                      
                                                                                      -0.64
                                                                                      
                                                                                      
                                                                                      
                                                                                      2.79Interest
      rate spread
                                                                                      
                                                                                      
                                                                                      2.90
                                                                                      
                                                                                      
                                                                                      
                                                                                      2.80
                                                                                      
                                                                                      
                                                                                      
                                                                                      2.88
                                                                                      
                                                                                      
                                                                                      
                                                                                      2.75Net
      interest margin
                                                                                      
                                                                                      
                                                                                      3.00
                                                                                      
                                                                                      
                                                                                      
                                                                                      2.98
                                                                                      
                                                                                      
                                                                                      
                                                                                      3.02
                                                                                      
                                                                                      
                                                                                      
                                                                                      2.94Efficiency
      ratio (2)
                                                                                      
                                                                                      
                                                                                      87.38
                                                                                      
                                                                                      
                                                                                      
                                                                                      81.80
                                                                                      
                                                                                      
                                                                                      
                                                                                      101.28
                                                                                      
                                                                                      
                                                                                      
                                                                                      87.18
  ASSET
      QUALITY RATIOS:
                                          
                                          At
      December 31,2008
                                          
                                          
                                          2007(Unaudited)(Dollars
      in thousands)Allowance
      for loan losses
                                          
                                          $
                                          2,869
                                          
                                          
                                          $
                                          2,163Allowance
      for loan losses as a percent of total loans
                                          
                                          
                                          0.66
                                          %
                                          
                                          
                                          0.60
                                          %Allowance
      for loan losses as a percent ofnonperforming
      loans
                                          
                                          
                                          107.13
                                          %
                                          
                                          
                                          222.99
                                          %Net
      charge-offs to average loansoutstanding
      during the period
                                          
                                          
                                          -
                                          %
                                          
                                          
                                          -
                                          %Nonperforming
      loans
                                          
                                          $
                                          2,678
                                          
                                          
                                          $
                                          970Nonperforming
      loans as a percent of total loans
                                          
                                          
                                          0.62
                                          %
                                          
                                          
                                          0.27
                                          %Nonperforming
      assets
                                          
                                          $
                                          2,678
                                          
                                          
                                          $
                                          970Nonperforming
      assets as a percent of total assets
                                          
                                          
                                          0.50
                                          %
                                          
                                          
                                          0.21
                                          %
 (1)
      All applicable quarterly ratios reflect annualized
  figures.(2)
      Represents non interest expense (less intangible amortization) divided by
      the sum of net interest income and noninterest
  income.
  Contact:
Naugatuck Valley Financial Corporation
 John C.
Roman or Lee R. Schlesinger
 1-203-720-5000