Brown Deer-based Bank Mutual Corp. reported second quarter net income of $3.6 million, or 8 cents per share, up 35 percent from $2.6 million, or 6 cents per share, in the second quarter of 2013.
The bank attributed the earnings increase to higher net interest income, lower provision for loan losses and lower compensation-related expenses. Net interest income was up 7.5 percent from the same period last year. The provision for loan losses was $321,000, down from $1.7 million in the second quarter of 2013. And compensation-related expenses were down 7.8 percent year-over-year.
The quarter’s gains were partially offset by lower net mortgage banking revenue.
“Our net interest margin increased to 3.32% in the second quarter, which was another record for the bank,” said David Baumgarten, president and chief executive officer. “This improvement, together with other favorable trends in our financial condition and operating results, pushed earnings in the second quarter to the highest level in nearly five years.” Baumgarten concluded, “We remain reasonably confident that earnings will continue to trend higher in the near term, although there can be no assurances.”
