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.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.