Milwaukee-based Bank Mutual Corp. is selling five retail branches to Marine Credit Union of La Crosse, Wis..
The sale of the branches, one located in Kenosha, two in Racine, and two in Sheboygan, Wis., also include $52.6 million and $13.2 million in total associated deposits and loans, respectively. The sale of the offices will also effectively mean an exit by Bank Mutual from these communities. The transaction is set to close in the third quarter and is subject to regulatory approval.
In addition, the company will consolidate two retail branches in Monona and Neenah, Wis., in June. Bank Mutual expects to 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 Dec. 31, 2016. Furthermore, it sees only a "few employees" impacted by the consolidation due to recent attrition.
In total, the company expects an approximately $1.3 million in net benefit to pretax earnings on an annualized basis as a result of the sales and the consolidation. Associated one-time costs for the moves will be roughly $250,000 composed primarily of asset disposition costs, employment severance costs, data processing costs and professional fees. Of the amount, $71,000 will be recorded in the first quarter while the rest is projected to be recorded in the third quarter.
After the sales and consolidations, Bank Mutual will operate 57 banking locations in Wisconsin and one in Minnesota.