Bank Mutual (BKMU) in Milwaukee reported an increase in fourth-quarter earnings because of loan sales and service fees.
The $2.4 billion-asset company's earnings rose 62% from a year earlier, to $2.3 million. Earnings per share of 5 cents topped the average analysts' estimate by a penny, according to Bloomberg.
Net interest income rose 6% from a year earlier, to $16 million. The net interest margin widened 20 basis points from the fourth quarter of 2011, to 2.86%.
The company's noninterest income rose 15.1% from a year earlier, to $8.2 million, primarily because of higher fees and gains on the sale of loans. Noninterest expense fell less than 1% from a year earlier, to $18.6 million.
Bank Mutual's loan originations increased 60% from a year earlier, to $194.8 million, led primarily by commercial and construction loans. The loan-loss provision rose 29% from the fourth quarter of 2011, to $2.1 million.
"Our quarterly earnings continued to improve as we have stayed on course with strategies to enhance our earning asset mix and our funding mix," Michael Crowley, Bank Mutual's chief executive, said in a press release.
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