Brown Deer-based Bank Mutual Corp. may have some unexpected competition for director roles at its annual meeting of shareholders.
Dallas-based Clover Partners LP has informed Bank Mutual that it plans to nominate one or more directors to its board, in opposition to the bank’s group of nominees. The investment management firm in 2014 sent a similar activist letter to the board of Pennsylvania’s Metro Bancorp.
Clover plans to send a definitive proxy statement and related materials to shareholders seeking support for its nominees. The firm and its associates hold about 4.1 percent of the bank’s stock.
“I confirm that Clover Partners LP intends to deliver a proxy statement and form of proxy to holders of at least the percentage of the company’s voting shares required under applicable law to elect directors,” said John Guerry, managing partner of Clover Partners, in the letter to Bank Mutual.
Bank Mutual last week reported fourth quarter net income of $3.7 million, down from $3.8 million in the fourth quarter of 2014.
The company attributed the profit decrease to lower net interest income, lower deposit-related fees, lower income from bank-owned life insurance, higher compensation and benefits expense, and higher occupancy, equipment and data processing costs.
In December, Bank Mutual closed four branches and froze its employee benefit pension plan to reduce costs.
Bank Mutual, the largest bank headquartered in the Milwaukee area, has about 700 employees. It has 64 branches in Wisconsin and one in Minnesota.
Neither a Bank Mutual representative nor a Clover Partners representative could be reached for comment.
