Banking News

Financial news from southeastern Wisconsin

Icy real estate investments take chunk out of Bank Mutual
Bank Mutual Corp. reported net earnings of $17.1 million, 31 cents per share, for the full year, which was down from $20.6 million, or 34 cents per share, in 2006.
The Milwaukee-based banking firm attributed its diminished earnings to a decrease in its net interest margin and losses totaling $798,000 on investments in two mutual funds that, invested in mortgage-related securities.
Bank Mutual’s earnings for the fourth quarter were $4.1 million, which was down from $4.6 million in the same period a year earlier.
"Fierce competition for shrinking deposits and loan business continued to pressure our net interest margin during most of 2007; however that pressure abated somewhat during the fourth quarter of 2007. Working in our favor were three components of our strategic plan. We boosted fee income. We managed our expenses with extreme discipline. And, our conservative underwriting standards continued to serve us well. We don’t engage in what is generally considered ‘subprime mortgage lending’ and we don’t intend to in the future." said Michael Crowley Jr., chairman, president and chief executive officer of the firm.
The company also warned that a recession could have substantial impact on its bottom line, including: loan originations could continue to decrease, along with related interest and fee income; a slowdown in the appreciation of the value of real estate or even a decrease in value may occur; reduced property prices could negatively affect the volume of home sales, which in turn could affect mortgage loan originations and prepayments; a continuation of stabilized or soft real estate values could also affect the value of the collateral securing our mortgage loans; and borrowers’ ability to repay their loan obligations could be affected, leading to increased loan losses or provisions.

Marshall & Ilsley to build new south side bank
Milwaukee-based M&I Bank plans to tear down its branch at the southwest corner of National Avenue and Layton Boulevard, on Milwaukee’s south side and build a smaller bank with a drive-through window in its place.
The 16,420-square-foot existing building at 2701 W. National Ave. was built in 1950, and has always been used as a bank. M&I has used the building as a branch since 1997.
The new building with have a footprint of 5,975 square feet of space and a total area of 7,357 square feet, including basement mechanical areas.
The current building does not have a drive through teller window. The new building will have a drive through teller window on the south side of the building.
The branch has seven full-time employees and 10 part-time employees.

Two banks pursuing Greenfield locations
Wauwatosa Savings Bank is seeking to build a new 3,500-square-foot bank at 5000 W. Loomis Road. in Greenfield. The bank needs city approval for its zoning request because the bank wants to have a drive through teller window.
If the bank receives approval from Greenfield officials, it plans to break ground late this year or in the spring of 2009.
Bank Mutual is building a new 4,000-square-foot bank at the intersection of South 85th Street and West Forest Home Avenue, also in Greenfield.

Sign up for BizTimes Daily Alerts

Stay up-to-date on the people, companies and issues that impact business in Milwaukee and Southeast Wisconsin

No posts to display