Bank Mutual Announces Annual Meeting Results; Directors Re-Elected and Stock Incentive Plan Approved.

Business Editors

MILWAUKEE--(BUSINESS WIRE)--May 8, 2001

Bank Mutual Corporation (Nasdaq: BKMU) announced the results of its first annual meeting of shareholders, which was held earlier today. At the meeting, all director-nominees were re-elected, the proposed 2001 Stock Incentive Plan was approved, and the selection of Ernst & Young as independent auditors was ratified.

Seven Bank Mutual directors were re-elected for varying terms. At the meeting, Michael T. Crowley, Sr., Raymond W. Dwyer and J. Gus Swoboda were elected for terms ending in 2004, Michael D. Meeuwsen was elected for a term expiring 2003, and Mark C. Herr, Thomas J. Lopina and Robert B. Olson were elected for terms expiring in 2002. Bank Mutual's continuing directors are Thomas H. Buestrin, Michael T. Crowley, Jr. and William J. Mielke, whose terms expire in 2003, and David J. Rolfs, whose term expires in 2002. While normally only one class of directors is subject to election at each annual meeting, additional directors were re-elected at the meeting because they were appointed to the Board since Bank Mutual's restructuring.

Shareholders also approved the Bank Mutual Corporation 2001 Stock Incentive Plan, which provides for options and restricted stock grants to officers, directors and key employees. As disclosed in the proxy statement, because of regulatory requirements, Bank Mutual will need to purchase up to approximately 1.45 million shares of its common stock for issuance under the Stock Incentive Plan. Bank Mutual expects to begin market repurchases of those shares as soon as possible. No specific schedule was announced for completion, although Bank Mutual noted that, because of options' vesting schedules under the Stock Incentive Plan, Bank Mutual would not be required to repurchase in the near future all of the shares which the Stock Incentive Plan will ultimately require.

Bank Mutual Corporation is traded on The Nasdaq Stock Market(R) under the symbol "BKMU". It is the fourth largest financial institution holding company headquartered in the state of Wisconsin. Its two subsidiary banks, Mutual Savings Bank and First Northern Savings Bank, operate 69 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 in the future tense or which use terms such as "believe," "expect," and "anticipate." Bank Mutual's actual future results could differ in important and material ways from those discussed. Many factors could cause or contribute to such differences. These factors include changing interest rates, changes in demand for loans or other services, competition from other institutions, the results of our lending activities and loan loss experience, the need to continue to integrate our operations, general economic developments, and other factors discussed in our filings with the Securities and Exchange Commission.