Bank Mutual Corporation (NASDAQ: BKMU) reported net income
of $3.8 million or $0.08 per diluted share in the fourth quarter
of 2014, which was a 42.3 percent improvement over net income
of $2.7 million or $0.06 per diluted share in the same quarter
improvement was due primarily to higher net interest income and
lower provision for loan losses or, in the 2014 quarter, a
recovery. These developments were partially offset by higher
occupancy and equipment costs and higher other non-interest
full-year basis Bank Mutual Corporation ("Bank Mutual") reported
net income of $14.7 million or $0.31 per diluted share in 2014,
which was a 35.8 percent improvement over net income of $10.8
million or $0.23 per diluted share in 2013. This improvement was
due principally to higher net interest income, lower provision
for loan losses, lower compensation-related expenses, and lower
losses and expenses on foreclosed real estate. These
developments were partially offset by lower net mortgage banking
revenue, higher occupancy and equipment costs, and a
non-recurring charge in the first quarter of 2014 related to
state income taxes.
Baumgarten, President and Chief Executive Officer of Bank
Mutual, commented, "Efforts to restructure our balance sheet the
past few years have clearly paid off in 2014, resulting in our
highest net interest margin as a public company, as well as a
fourth-straight year of higher earnings." Baumgarten said,
"However, this period of restructuring is drawing to a close and
we expect our net interest margin to be slightly lower in 2015.
We also expect our non-interest expenses to be higher in 2015.
We are confident, though, that growth in our loan portfolio,
which has averaged 7.3 percent annually the past three years,
can continue to fuel an improvement in earnings in 2015, as will
modest improvements in our non-interest sources of revenue."
Mutual's net interest income increased by $731,000 or 4.3
percent and by $3.5 million or 5.3 percent during the three and
twelve months ended December 31, 2014, respectively, compared to
the same periods in 2013.