Brown Deer-based Bank Mutual Corp. today reported third quarter net income of $3.3 million, or 7 cents per share, down from $4.4 million, or 9 cents per share, in the third quarter of 2014.
The company attributed the lower profit to declines in net interest income and in bank-owned life insurance income, as well as higher compensation and benefits expense, advertising and marketing costs, and occupancy, equipment and data processing costs.
“We are pleased that our loan balances increased by 3.5 percent in the third quarter, but we are disappointed that a difficult rate environment continued to put pressure on our net interest margin, resulting in only a modest improvement in our net interest income compared to the second quarter,” said David Baumgarten, president and chief executive officer. “We are optimistic that loan growth will continue in the near term and are also hopeful that pressure on our net interest margin will be less during the remainder of the year and into 2016. We also expect that total non-interest expenses could be lower in the fourth quarter and that increases in these expenses will be modest in 2016.”
Bank Mutual reported $2.5 billion in total assets at the end of the third quarter.
