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William C. Calderara, President and CEO of Naugatuck Valley Financial Corporation (NVSL), Interviews with The Wall Street Transcript

67 WALL STREET, New York - January 3, 2014 - The Wall Street Transcript has just published its Northeast and Mid-Atlantic Banks Report offering a timely review of the sector to serious investors and industry executives. This special feature contains expert industry commentary through in-depth interviews with public company CEOs and Equity Analysts. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.

Topics covered: Interest Rates and Loan-Growth Strategies - Regulatory Outlook Gains Clarity - Regulatory Obstacles and Fee Income Replacement - Rise of Commercial and Industrial Lending - Pockets of Growth in Northeastern Banking - Annualized Loan Growth Acceleration - Prolonged Interest Rate Environment Challenges - Midcap Market Share Gains

Companies include: Naugatuck Valley Financial (NVSL) and many more.

In the following excerpt from the Northeast and Mid-Atlantic Banks Report, the President and CEO of Naugatuck Valley Financial Corporation (NVSL) discusses company strategy and the outlook for this vital industry:

TWST: Tell us about Naugatuck Valley by the numbers.

Mr. Calderara: We have about $520 million in assets. We have 10 branches located throughout the Naugatuck Valley, simply Naugatuck, Waterbury, Cheshire, Shelton, Seymour, Southbury, Derby, Ansonia.

TWST: What are the biggest challenges you and the bank have faced over the last year and some of the opportunities you're trying to pivot toward?

Mr. Calderara: Currently there are a lot of challenges, both from a regulatory side and the economy over the last few years have been very challenging for institutions. The low interest rate environment has shown a lot of margin compression in banks. From the opportunity side, I think there is also a lot of opportunity, particularly for community in the years after the financial crisis. A lot of local customers have gravitated back toward their community banks. So that's been a plus for us. We've been able to grow checking accounts and grow our deposit base, and I think we'll hopefully be able to continue to do that. The burden of the regulation is probably the greatest challenge right now.

TWST: How do you deal with those regulatory burdens, especially the cost burden? A lot of smaller banks have merged in order to put together some economies of scale to run the compliance divisions.

Mr. Calderara: On the industry trends, the costs are going to be skyrocketing, particularly on how they deal with them. I think that's what most banks have done. What the majority of banks have done is added layers of compliance departments or officers or new staff to deal with the add-on regulation, and that's pure cost. There is no economic benefit put into regulation - it doesn't have an account, it develops just as an expense.

What we try to do, or what I think the industry has to do, is look forward and start to...

For more of this interview and many others visit the Wall Street Transcript - a unique service for investors and industry researchers - providing fresh commentary and insight through verbatim interviews with CEOs, portfolio managers and research analysts. This special issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.