Brown Deer-based Bank Mutual Corp. reported second quarter net income of $2.6 million, or 6 cents per share, up from $1.3 million, or 3 cents per share, in the same quarter a year ago.
Year-to-date, Bank Mutual reported net income of $5.2 million, or 11 cents per share, which was more than double the $2.5 million, or 5 cents per share, reported during the same six-month period in 2012.
The improvements in net income between these periods were due primarily to higher net loan servicing fee revenue, higher net interest income, lower net losses and expenses on foreclosed real estate, and lower federal deposit insurance premiums. These developments were partially offset by lower gains on sales of loans, higher compensation-related costs and, for the year-to-date period, a larger provision for loan losses.
David Baumgarten, president and chief executive officer, said, “We continue to make progress improving our earning asset and funding mixes, as well as lowering our absolute funding costs. As a result, our net interest margin improved for the fourth quarter in a row. Continued improvement in these areas should enable us to offset declines in revenue from our mortgage banking operations that we expect to occur in future.”
Baumgarten became the CEO on July 1, upon the retirement of Michael Crowley Jr., who remains chairman of the board of directors of Bank Mutual.