Brown Deer-based Bank Mutual Corp. reported second quarter net income of $1.3 million, or 3 cents per share, compared with a net loss of $51.4 million or $1.12 per share, in the same period a year ago.
Year-to-date, Bank Mutual reported net income of $2.5 million or 5 cents per share, compared with a net loss of $50.3 million or $1.10 per share in the same period in 2011.
The losses in the 2011 periods were caused by a $52.6 million non-cash goodwill impairment in the second quarter of that year.
Michael Crowley Jr., chairman and chief executive officer of Bank Mutual, said, “We are very pleased that our mortgage banking operations were able to keep up with increased customer demand for residential loans during the quarter and continue to make a significant contribution to our bottom line.”
David Baumgarten, president of Bank Mutual, said, “We are also pleased that loans we originate for our portfolio continued to grow, which generated a meaningful increase in our loan portfolio during the quarter. We believe this success is due in large part to the enhancements we have made in our commercial line of business over the past year or so. We are also pleased that we continued to make progress reducing the bank’s level of non-performing loans. We remain optimistic that problem loans will continue to trend lower in the near term.”
Bank Mutual’s provision for loan losses was $1.7 million in the second quarter of 2012 compared with $805,000 in the same quarter last year.