Bank Mutual Corp. reported third quarter net income of $2.0 million, or 4 cents per share, up from $1.3 million, or 3 cents per share, in the same period a year ago.
Year-to-date, the Brown Deer-based parent company Bank Mutual reported net income of $4.4 million, 10 cents per share, compared with a net loss of $49.0 million, or $1.07 per share in the same nine months of 2011.
The loss in the 2011 year-to-date period was caused by a $52.6 million non-cash goodwill impairment in the second quarter of that year.
Bank Mutual also announced that its non-performing loans declined to $33.9 million or 2.45 percent of loans receivable as of Sept. 30, 2012.
Michael Crowley Jr., chairman and chief executive officer of Bank Mutual, said, “As we anticipated, a higher net interest margin contributed to increased earnings in the third quarter compared to the second quarter. Our net interest margin improved to 2.71 percent during the quarter compared to 2.47% in the second quarter due in part to lower funding costs.”
David Baumgarten, president of Bank Mutual, said, “Also contributing was an improved earning asset mix due to continued growth in our loan portfolio. We believe the initiatives we have taken in this area the past two years are starting to pay off. We are also pleased that our non-performing loans declined by a meaningful amount for the sixth straight quarter. We believe this brings our asset quality ratios more into line with industry averages.”
