Milwaukee-based Bank Mutual Corp. reported third quarter net income of $1.3 million, 3 cents per share, up from $926,000, or 2 cents per share, in the same period a year ago.
Bank Mutual also announced that its non-performing loans declined by $17.8 million or 16.6 percent during the recently completed quarter. Since the beginning of the year, non-performing loans have declined by $33.1 million or 26.9 percent.
Michael Crowley, Jr., chairman and chief executive officer of Bank Mutual, said, "We are pleased that our core earnings continue to improve on the strength of our net interest income and lower credit-related losses."
David Baumgarten, president of Bank Mutual, said, "Our focus continues to be on reducing our non-performing loans. We are pleased with our progress so far."
On a year-to-date basis, Bank Mutual has a net loss of $49.0 million or $1.07 per diluted share in 2011, which included a non-cash goodwill impairment of $52.6 million in the second quarter. The goodwill impairment had no effect on the liquidity, operations, tangible capital, or regulatory capital of Bank Mutual or its subsidiary bank. Excluding the impact of this impairment, earnings during the nine months ended September 30, 2011, were $3.6 million or $0.08 per diluted share compared to $3.8 million or 8 cents per diluted share during the same period in 2010.
Commercial business loan originations during the first nine months of 2011 were $64.6 million compared with $22.2 million in the same period in 2010. Bank Mutual’s portfolio of commercial business loans increased by $31.0 million or 61.8 percent, from $50.1 million to $81.1 million during the nine months ended Sept. 30, 2011.
In recent periods Bank Mutual has been successful at attracting a number of new commercial business relationships as a result of an initiative to expand its presence in the mid-tier commercial banking market.
