Bank Mutual reports 25% increase in income during first quarter

Freeman Staff

April 15, 2015

MILWAUKEE — The fiscal year started off strong for Bank Mutual Corporation, which on Wednesday reported a net income of $3.6 million during the first quarter, a 24.9 percent increase compared to the net income of $2.8 million during the same period of 2014.

The company credits the improvement to the recovery of loan losses in the 2015 quarter and higher brokerage and insurance commissions compared to the first quarter of 2014. Also contributing were higher mortgage banking revenue and loan-related fees, as well as lower income tax expense, according to the Wednesday’s announcement. These developments were partially offset by higher compensation-related costs, higher occupancy, equipment, and data processing costs, however, and a loss on real estate held for investment in the 2015 quarter.

“As we expected, continued improvement in the credit quality of our loan portfolio resulted in a recovery of loan loss allowance in the first quarter of 2015,” said David A. Baumgarten, Bank Mutual president and CEO, in a statement. “Also in line with our expectations was lower year-over-year growth in our net interest income, due to an anticipated contraction in our net interest margin.”