Bank Mutual Corporation (NASDAQ:BKMU) announced that its board of directors today approved an amendment to the Companys current stock repurchase program to increase the number of shares of its common stock which may be repurchased under that plan to 5.0 million (which is an increase from the 3.0 million shares of its common stock which previously authorized for repurchase). The program does not specify the timing of purchases or the prices to be paid.
The current stock repurchase program was originally adopted and announced on November 5, 2007, and now has been amended to extend through November 28, 2008. Through December 14, 2007, the Company had repurchased 2,108,400 shares, at an average per share price of $10.18, under this program. Therefore, the Company may repurchase an additional 2,891,600 shares under the plan as amended. At December 14, 2007, Bank Mutual Corporation had outstanding 50,489,256 shares; therefore, the remaining shares which may be repurchased under the amended plan would constitute 5.7% of the Companys currently outstanding shares.
In view of the current market value of our shares, our strong capital position and capital deployment alternatives, our board has decided to expand the number of shares which we may purchase under our current repurchase program so that we can continue to use share repurchases as a method of managing our capital position. We expect to continue to use repurchases along with dividends, expansion of our banking products and services, and possible expansion of our banking franchise by acquisitions or de novo offices, as tools to manage our capital, said Michael T. Crowley, Jr. Chairman, President and Chief Executive Officer of Bank Mutual Corporation.
Bank Mutual Corporation is the fifth largest financial institution holding company headquartered in the state of Wisconsin and its stock is quoted on The NASDAQ Global Select MarketSM under the symbol BKMU. Its subsidiary bank, Bank Mutual, operates 77 offices in the state of Wisconsin and one office in Minnesota.
Cautionary Statements
The discussions in this news release which are not historical statements contain forward-looking statements that involve risk and uncertainties. Statements which are not historical statements include those regarding possible future stock purchase. There can be no assurance that Bank Mutual Corporation will in fact repurchase shares, nor of the timing, amounts or pricing of any such repurchases. Also, Bank Mutual Corporations actual future results could affect its ability to repurchase shares. Bank Mutual Corporations actual use of capital will depend upon future events, and it cannot assure any particular use of its capital resources or that any expansion will occur. Factors which could affect future results or actions include changing interest rates, changes in demand for loans or other services, competition from other institutions, changes in OTS regulations or interpretations, the results of our lending activities and lo