Bank Mutual has reported net income of $5.1 million for the first quarter of 2008, a 7.5% increase, compared to $4.7 million for the same period in 2007.
The company reported diluted earnings per share (EPS) of $0.10 for Q1 2008, a 25% increase, compared to diluted EPS of $0.08 for Q1 2007.
Net income increased primarily as a result of gains totaling $1.5 million on the sale of investments, partially offset by the non-recurrence in 2008 of a significant 2007 recovery of specific allowance for loan loss in the first quarter of 2007 and a small reduction in net interest income.
Loan sales were $57.7 million for the first quarter of 2008, as compared to $25.2 million for the prior-year period. Loan sales increased because of increased fixed rate mortgage loan originations that resulted from increased demand caused by steady to declining interest rates and a decrease in demand for adjustable rate mortgages.
Deposits increased $53.8 million during Q1 2008 to $2.2 billion, as compared to $2.1 billion at December 31, 2007.
Michael Crowley, chairman, president and CEO of Bank Mutual, said: Although financial institutions are currently facing a difficult operating environment, we are pleased to report improved quarterly earnings. By avoiding risky lending, carefully managing liquidity, controlling expenses and maintaining a strong capital position, the company is well positioned to take advantage of opportunities as they present themselves.