Brown Deer-based Bank Mutual Corp. has agreed to sell five retail bank branches to Marine Credit Union, effectively exiting those markets.
Bank Mutual also will consolidate two other retail branches into existing branches nearby.
Together, the changes are expected to result in a $1.3 million annual net benefit to pre-tax earnings.
Of the five branches being sold, two are in Racine, two are in Sheboygan and one is in Kenosha. They are the only branches in those communities. The sale is expected to close in the third quarter, pending regulatory approvals. The sale includes $52.6 million in deposits and $13.2 million in loans at those branches. There are about 20 employees among the five branches, all of whom Marine intends to hire, a Marine spokesperson said.
The two branches being consolidated into nearby offices are in Monona and Neenah. That process is expected to be finished in June, and affected customers have been notified. Bank Mutual expects to retain most of the $19.1 million in deposits and $9.6 million in loans from those two branches, “consistent with its past experience combining retail branch offices.” Recent attrition and opportunities for lateral moves mean only “a few” employees will be negatively impacted by this process, the bank said, but it is still working to determine which employees will be staying on at different branches, a Bank Mutual spokesperson said.
The branch sale and consolidations are expected to cost Bank Mutual about $250,000, including asset disposition, employment severance costs, data processing costs and professional fees.
Once this process is complete, Bank Mutual will have 57 branches in Wisconsin and one branch in Minnesota. It also will open a new residential loan office in the Racine/Kenosha area to house a loan officer in that market, a spokesperson said.
Bank Mutual, said the decision was related to efficiency, and that it had more opportunity in other markets.
“As consumer banking habits have changed over time, Bank Mutual, like many other financial institutions, regularly reviews our branch distribution to ensure we are operating as efficiently as possible,” Baumgarten said. “Being efficient allows us to provide our customers with higher levels of service and access to financial tools and technology that customers expect in today’s rapidly changing world. The sale of these branches supports our strategy to invest in further enhancements in our customer experience.”
Shawn Hanson, chief executive officer of Marine Credit Union, said the transaction allows Marine to expand its growth strategy.
“We are pleased to partner with Bank Mutual, a bank that shares our values, to continue providing excellent service and competitive products to customers in Racine, Kenosha and Sheboygan,” Hanson said.
La Crosse-based Marine Credit Union has approximately 20 branches in Wisconsin, Minnesota and Iowa.
