Bank Mutual Corporation Announces Expansion of Stock Repurchase Program.

MILWAUKEE -- Bank Mutual Corporation (NASDAQ:BKMU) announced that its board of directors today approved an amendment to its current stock repurchase program, which was adopted in December 2004, increasing the number of shares of its common stock which may be repurchased under that plan to 10.0 million (which is an increase from the 5.0 million shares of its common stock previously authorized). The program does not specify the timing of purchases or the prices to be paid.

The current stock repurchase program was adopted and announced on December 20, 2004, and extends through December 2005. Through February 18, 2005, the Company had repurchased 4,202,000 shares, at an average per share price of $12.18, pursuant to this program. Therefore, the Company may repurchase an additional 5,798,000 shares under the plan as amended. At February 18, 2005, Bank Mutual Corporation had outstanding 69,286,713 shares; therefore, the remaining shares which may be repurchased under the plan would constitute 8.4% of the Company's currently outstanding shares.

"We are pleased with the response to our earlier repurchase programs and the current program to date. In view of our strong capital position, our board has decided to expand the number of shares which we may purchase under the current 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 fourth largest financial institution holding company headquartered in the state of Wisconsin and its stock is quoted on The Nasdaq Stock Market(R) under the symbol "BKMU." Its subsidiary bank, Bank Mutual, operates 70 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 Corporation's actual future results could affect its ability to repurchase shares. Bank Mutual Corporation's 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 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 loan loss experience, general economic and political developments, and other factors discussed in our filings with the Securities and Exchange Commission.