Bank Mutual in Milwaukee will freeze pension benefits and close four branches in a bid to cut costs.
The $2.5 billion-asset company will freeze pension benefits for the 10% of its workforce that still receive a pension. Bank Mutual estimated that the freeze will produce $2.5 million in yearly savings.
Bank Mutual will shutter offices in Eau Claire, Cedarburg, New Holstein and Hortonville, Wis. The closures, scheduled for March, are projected to save $1 million per year, after one-time costs of $650,000 to dispose of assets, pay employee severance and cover professional fees. Most of the $650,000 expense will be recorded in the fourth quarter. Bank Mutual did not disclose the number of jobs it will cut.
Bank Mutual expects to retain the majority of the $47.5 million in deposits and $6.9 million in loans associated with the four branches, by redirecting its customers to nearby branches.
Bank Mutual will operate 64 branches in Wisconsin and one in Minnesota after the closures.