MILWAUKEE, April 4, 2017 /PRNewswire/ -- Bank Mutual
Corporation (Nasdaq: BKMU) announced today that it has entered into
an agreement to sell five retail branch offices, including
$52.6 million in deposits and
$13.2 million in loans associated
with the offices, to another financial institution. In
addition, Bank Mutual Corporation ("Bank Mutual") announced that it
will consolidate two retail branch offices into other nearby
locations. Once fully implemented, management anticipates that
these decisions will provide approximately $1.3 million in net benefit to pre-tax earnings
on an annualized basis.
The pending sale consists of one office in Kenosha, two in Racine, and two in Sheboygan, Wisconsin, and is expected to close
in the third quarter, subject to the necessary regulatory
approvals. Customers of these offices will receive additional
information regarding the impact of the sale in the near
future. After the sale closes, Bank Mutual will have no retail
branch offices in these communities. Terms of the transaction
were not announced.
The branch offices Bank Mutual is consolidating are located in
Monona and Neenah, Wisconsin. Bank Mutual expects
to complete the consolidations in June and will continue to provide
products and services to the affected customers through other
nearby locations, as well as its electronic and mobile banking
channels. Customers of these offices have already been
notified of the consolidations. Consistent with its past
experience combining retail branch offices, management of Bank
Mutual believes that it will retain the majority of the deposits
and loans that are currently serviced through the consolidated
locations, which aggregated $19.1
million and $9.6 million,
respectively, as of December 31,
2016. However, there can be no assurances. Finally,
management anticipates that only a few employees will be impacted
by the consolidations due to recent attrition and opportunities for
comparable positions at nearby Bank Mutual
locations.
In connection with the sale and consolidation of these offices,
Bank Mutual expects to incur one-time costs of approximately
$250,000, composed primarily of asset
disposition costs, employment severance costs, data processing
costs, and professional fees, $71,000
of which will be recorded in the first quarter. The remainder is
expected to be recorded in the third quarter.
The sale and branch consolidations are subject to the filing of
appropriate notices with and/or approvals of regulatory
agencies. After the sales and consolidations, Bank Mutual will
operate 57 banking locations in Wisconsin and one in
Minnesota.
This release contains various forward-looking statements
concerning Bank Mutual's prospects that are based on the current
expectations and beliefs of management. Forward-looking
statements may contain, and are intended to be identified by, words
such as "anticipate," "believe," "expect," "intends," and similar
expressions; the use of verbs in the future tense and discussions
of periods after the date on which this report is issued are also
forward-looking statements. The benefits expected to be
realized from these actions will depend in part on their ultimate
timing and successful implementation, the receipt of and any
conditions to regulatory approvals, customer reactions, and other
matters outside of Bank Mutual's control. In addition to the
factors discussed in this release, refer to "Cautionary Statement"
and "Risk Factors" included in Bank Mutual's 2016 Annual Report on
Form 10-K for a list of additional factors that could cause actual
results to differ from what is stated or expected in this
release.
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SOURCE Bank Mutual Corporation