| Industries |
|---|
| Investment Banking and Brokerage |
| Real Estate |
| Real Estate Services |
| Construction and Engineering |
| Construction Materials |
| Construction and Farm Machinery and Heavy Trucks |
| Department Stores |
| Technology Hardware Storage and Peripherals |
| Information Technology |
| Technology Hardware and Equipment |
| Data Processing Services |
| Data Processing and Outsourced Services |
| Exposures |
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| Economic |
| Regime |
| Intelligence |
| Express intent |
| Military |
| Event Codes |
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| Military blockade |
| Warn |
| Psychological state |
| Yield to order |
| Accident |
| Acknowledge responsibility |
| Promise |
| Solicit support |
| Wiki | Wiki Summary |
|---|---|
| Investment management | Investment management is the professional asset management of various securities, including shareholdings, bonds, and other assets, such as real estate, to meet specified investment goals for the benefit of investors. Investors may be institutions, such as insurance companies, pension funds, corporations, charities, educational establishments, or private investors, either directly via investment contracts or, more commonly, via collective investment schemes like mutual funds, exchange-traded funds, or REITs. |
| Investment fund | An investment fund is a way of investing money alongside other investors in order to benefit from the inherent advantages of working as part of a group such as reducing the risks of the investment by a significant percentage. These advantages include an ability to:\n\nhire professional investment managers, who may offer better returns and more adequate risk management;\nbenefit from economies of scale, i.e., lower transaction costs;\nincrease the asset diversification to reduce some unsystematic risk.It remains unclear whether professional active investment managers can reliably enhance risk adjusted returns by an amount that exceeds fees and expenses of investment management. |
| Federal Reserve | The Federal Reserve System (also known as the Federal Reserve or simply the Fed) is the central banking system of the United States of America. It was created on December 23, 1913, with the enactment of the Federal Reserve Act, after a series of financial panics (particularly the panic of 1907) led to the desire for central control of the monetary system in order to alleviate financial crises. |
| Financial crisis of 2007–2008 | The financial crisis of 2008, or Global Financial Crisis, was a severe worldwide economic crisis that occurred in the early 21st century. It was the most serious financial crisis since the Great Depression (1929). |
| Unsecured debt | In finance, unsecured debt refers to any type of debt or general obligation that is not protected by a guarantor, or collateralized by a lien on specific assets of the borrower in the case of a bankruptcy or liquidation or failure to meet the terms for repayment. Unsecured debts are sometimes called signature debt or personal loans. |
| Mortgage loan | A mortgage loan or simply mortgage (), in civil law jurisdicions known also as a hypothec loan, is a loan used either by purchasers of real property to raise funds to buy real estate, or by existing property owners to raise funds for any purpose while putting a lien on the property being mortgaged. The loan is "secured" on the borrower's property through a process known as mortgage origination. |
| December 8 | December 3 is the 337th day of the year (338th in leap years) in the Gregorian calendar; 28 days remain until the end of the year.\n\n\n== Events ==\n\n\n=== Pre-1600 ===\n915 – Pope John X crowns Berengar I of Italy as Holy Roman Emperor (probable date). |
| Mark-to-market accounting | Mark-to-market (MTM or M2M) or fair value accounting refers to accounting for the "fair value" of an asset or liability based on the current market price, or the price for similar assets and liabilities, or based on another objectively assessed "fair" value. Fair value accounting has been a part of Generally Accepted Accounting Principles (GAAP) in the United States since the early 1990s, and is now regarded as the "gold standard" in some circles. |
| Fair market value | The fair market value of property is the price at which it would change hands between a willing and informed buyer and seller. The term is used throughout the Internal Revenue Code, as well as in bankruptcy laws, in many state laws, and by several regulatory bodies.In litigation in many jurisdictions in the United States the fair market value is determined at a hearing. |
| Amortization (business) | In business, amortization refers to spreading payments over multiple periods. The term is used for two separate processes: amortization of loans and amortization of assets. |
| Loan | A man is an adult male human. Prior to adulthood, a male human is referred to as a boy (a male child or adolescent). |
| Loan-to-value ratio | The loan-to-value (LTV) ratio is a financial term used by lenders to express the ratio of a loan to the value of an asset purchased. \nIn Real estate, the term is commonly used by banks and building societies to represent the ratio of the first mortgage line as a percentage of the total appraised value of real property. |
| Syndicated loan | A syndicated loan is one that is provided by a group of lenders and is structured, arranged, and administered by one or several commercial banks or investment banks known as lead arrangers.\nThe syndicated loan market is the dominant way for large corporations in the U.S. and Europe to receive loans from banks and other institutional financial capital providers. |
| Addition reaction | An addition reaction, in organic chemistry, is in its simplest terms an organic reaction where two or more molecules combine to form a larger one (the adduct).Addition reactions are limited to chemical compounds that have multiple bonds, such as molecules with carbon–carbon double bonds (alkenes), or with triple bonds (alkynes), and compounds that have rings, which are also considered points of unsaturation. Molecules containing carbon—hetero double bonds like carbonyl (C=O) groups, or imine (C=N) groups, can undergo addition, as they too have double-bond character. |
| Book of Esther | The Book of Esther (Hebrew: מְגִלַּת אֶסְתֵּר, romanized: Megillat Esther), also known in Hebrew as "the Scroll" ("the Megillah"), is a book in the third section (Ketuvim, כְּתוּבִים "Writings") of the Jewish Tanakh (the Hebrew Bible). It is one of the five Scrolls (Megillot) in the Hebrew Bible and later became part of the Christian Old Testament. |
| Modular addition | Modular additions are usually side and second-story additions to homes that are pre-fabricated at the facilities. General characteristics of a modular home apply. |
| Expected loss | Expected loss is the sum of the values of all possible losses, each multiplied by the probability of that loss occurring. \nIn bank lending (homes, autos, credit cards, commercial lending, etc.) the expected loss on a loan varies over time for a number of reasons. |
| Student loan | A student loan is a type of loan designed to help students pay for post-secondary education and the associated fees, such as tuition, books and supplies, and living expenses. It may differ from other types of loans in the fact that the interest rate may be substantially lower and the repayment schedule may be deferred while the student is still in school. |
| World Bank | The World Bank is an international financial institution that provides loans and grants to the governments of low- and middle-income countries for the purpose of pursuing capital projects. The World Bank is the collective name for the International Bank for Reconstruction and Development (IBRD), International Finance Corporation and International Development Association (IDA), three of five international organizations owned by the World Bank Group. |
| OpenTheBooks | OpenTheBooks.com is an American nonprofit organization based in the Chicago suburb of Burr Ridge, Illinois. It describes itself as a transparency group devoted to posting online all the disclosed spending of every level of government across the United States. |
| BOK Financial Corporation | BOK Financial Corporation — pronounced as letters, "B-O-K" — is a financial services holding company headquartered in Tulsa, Oklahoma. Offering a full complement of retail and commercial banking products and services across the American Midwest and Southwest, the company is one of the 50 largest financial services firms in the U.S., and the largest in Oklahoma. |
| Real estate economics | Real estate economics is the application of economic techniques to real estate markets. It tries to describe, explain, and predict patterns of prices, supply, and demand. |
| Real estate investment trust | A real estate investment trust (REIT) is a company that owns, and in most cases operates, income-producing real estate. REITs own many types of commercial real estate, including office and apartment buildings, warehouses, hospitals, shopping centers, hotels and commercial forests. |
| Real estate appraisal | Real estate appraisal, property valuation or land valuation is the process of developing an opinion of value for real property (usually market value). Real estate transactions often require appraisals because they occur infrequently and every property is unique (especially their condition, a key factor in valuation), unlike corporate stocks, which are traded daily and are identical (thus a centralized Walrasian auction like a stock exchange is unrealistic). |
| Savings and loan association | A savings and loan association (S&L), or thrift institution, is a financial institution that specializes in accepting savings deposits and making mortgage and other loans. The terms "S&L" or "thrift" are mainly used in the United States; similar institutions in the United Kingdom, Ireland and some Commonwealth countries include building societies and trustee savings banks. |
| Construction engineering | Construction engineering is a professional discipline that deals with the designing, planning, construction and management of infrastructures such as roads, tunnels, bridges, airports, railroads, facilities, buildings, dams, utilities and other projects.\nCivil engineering is a related field that deals more with the practical aspects of projects. |
| Granite Construction | Granite Construction Inc. is a member of the S&P 600 Index based in Watsonville, California, and is the parent corporation of Granite Construction Company, a heavy civil general contractor and construction material producer. |
| University of Wisconsin–Madison | The University of Wisconsin–Madison (University of Wisconsin, Wisconsin, UW, UW–Madison, or simply Madison) is a public land-grant research university in Madison, Wisconsin. Founded when Wisconsin achieved statehood in 1848, UW–Madison is the official state university of Wisconsin and the flagship campus of the University of Wisconsin System. |
| List of United States senators from Wisconsin | Wisconsin was admitted to the Union on May 29, 1848. Its current U.S. senators are Republican Ron Johnson (since 2011) and Democrat Tammy Baldwin (since 2013), making it one of seven states to have a split United States Senate delegation. |
| List of Wisconsin state symbols | This is a list of the state symbols of the U.S. state of Wisconsin.\n\n\n== Insignia ==\n\n\n== Species ==\n\n\n== Geology ==\n\n\n== Culture ==\n\n\n== References ==\nBarish, Lawrence S., ed. |
| Educational institution | An educational institution is a place where people of different ages gain an education, including preschools, childcare, primary-elementary schools, secondary-high schools, and universities. They provide a large variety of learning environments and learning spaces. |
| Smithsonian Institution | The Smithsonian Institution ( smith-SOH-nee-ən), or simply the Smithsonian, is a group of museums and education and research centers, the largest such complex in the world, created by the U.S. Government "for the increase and diffusion of knowledge". Founded on August 10, 1846, it operates as a trust instrumentality and is not formally a part of any of the three branches of the federal government. |
| Cultural institution | A cultural institution or cultural organization is an organization within a culture/subculture that works for the preservation or promotion of culture. The term is especially used of public and charitable organizations, but its range of meaning can be very broad. |
| Bolívar Department | Bolívar (Spanish pronunciation: [boˈliβaɾ]) is a department of Colombia. It was named after one of the original nine states of the United States of Colombia. |
| Media market | A media market, broadcast market, media region, designated market area (DMA), television market area, or simply market is a region where the population can receive the same (or similar) television and radio station offerings, and may also include other types of media such as newspapers and internet content. They can coincide or overlap with one or more metropolitan areas, though rural regions with few significant population centers can also be designated as markets. |
| Manual transmission | A manual transmission (MT), also known as manual gearbox, standard transmission (in Canada, the United Kingdom, and the United States), or stick shift (in the United States), is a multi-speed motor vehicle transmission system, where gear changes require the driver to manually select the gears by operating a gear stick and clutch (which is usually a foot pedal for cars or a hand lever for motorcycles).\nEarly automobiles used sliding-mesh manual transmissions with up to three forward gear ratios. |
| Automatic transmission | An automatic transmission (sometimes abbreviated to auto or AT) is a multi-speed transmission used in internal combustion engine-based motor vehicles that does not require any driver input to change forward gears under normal driving conditions. It typically includes a transmission, axle, and differential in one integrated assembly, thus technically becoming a transaxle. |
| Risk Factors |
|---|
| BANK MUTUAL CORP Item 1A Risk Factors |
| In addition to the various factors discussed and cautionary statements set forth elsewhere in this report (particularly in “Business-Cautionary Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations”), you should consider carefully the following risk factors when evaluating our performance, condition and outlook, and any investment of our securities |
| The Current Interest Rate Environment Is Having an Adverse Impact on Our Net Interest Income From June, 2004 through January 31, 2006, the Federal Reserve Board increased the Federal Funds target rate 13 times for an aggregate increase of 325 basis points |
| Since these interest rate increases began, we have been unable to offset the effect of higher interest rates on our maturing liabilities with similar increases in our asset yields |
| As a result, our net interest income, and consequently our net income, declined as compared to the year ago periods |
| Accordingly, we anticipate that in the absence of balance sheet growth and/or a significant change in our competitive environment, our net interest income for the full year 2006 will be lower than in 2005 |
| Conversely, if interest rates decrease substantially, the amount of interest we pay on deposits could decrease more quickly than the amount of interest we receive on our loans, mortgage-related securities, and investment securities |
| Decreasing interest rates would likely increase the value of our mortgage-related securities and investment securities and may increase demand for loans, and make it more attractive for borrowers to refinance their existing loans |
| Increases in Market Interest Rates Are Also Likely to Adversely Affect Equity As of December 31, 2005, we owned dlra1dtta18 billion of securities available-for-sale |
| Generally accepted accounting principles require that we carry these securities at fair value on our balance sheet |
| Unrealized gains or losses on these securities, reflecting the difference between the fair market value and the amortized cost, net of its tax effect, are carried at a component of shareholders’ equity |
| When market rates of interest increase, the fair value of our securities available-for-sale generally decreases and equity correspondingly decreases |
| When rates decrease, fair value generally increases and shareholders’ equity correspondingly increases |
| As of December 31, 2005, Bank Mutual Corporation’s available-for-sale portfolio had an unrealized loss of dlra28dtta5 million, because fair value was dlra1dtta15 billion and amortized cost was dlra1dtta18 billion |
| If Our Allowance for Loan Losses Is Not Sufficient to Cover Actual Loan Losses, Our Earnings Could Decrease Our loan customers may not repay their loans according to the terms of the loans, and the collateral securing the payment of these loans may be insufficient to pay any remaining loan balance |
| We therefore may experience significant loan losses, which could have a material adverse effect on our operating results |
| Material additions to our allowance for loan losses also would materially decrease our net income, and the charge-off of loans may cause us to increase the allowance for loan losses |
| We make various assumptions and judgments about the collectibility of our loan portfolio, including the creditworthiness of our borrowers and the value of the real estate and other assets serving as collateral for the repayment of many of our loans |
| We rely on our loan quality reviews, our experience and our evaluation of economic conditions, among other factors, in determining the amount of the allowance for loan losses |
| If our assumptions prove to be incorrect, our allowance for loan losses may not be sufficient to cover losses inherent in our loan portfolio, resulting in additions to our allowance |
| Our emphasis on a diverse loan portfolio has been one of the more significant factors we have taken into account in evaluating our allowance for loan losses and provisions for loan losses |
| If we were to further increase the amount of loans in our portfolio other than traditional real estate loans, we may decide to make increased provisions for loan losses |
| In addition, bank regulators periodically review our allowance for loan losses and may require us to increase our provisions for loan losses or recognize further loan charge-offs |
| 34 _________________________________________________________________ [85]Table of Contents Some of Our Lending Activities Are in Riskier Credits than Traditional Real Estate Loans We have identified commercial real estate, commercial business, construction and development and consumer loans as areas for lending emphasis |
| While lending diversification in being pursued for the purpose of increasing net interest income, non-residential and construction and development loans historically have carried greater risk of payment default than residential real estate loans |
| In the event of substantial borrower defaults, our provision for loan losses would increase and assets would be written off, and therefore, earnings would be reduced |
| Low Demand for Real Estate Loans May Lower Our Profitability Making loans secured by real estate, including one- to-four family and commercial real estate is our primary business and primary source of revenue |
| If customer demand for real estate loans decreases, our profits may decrease because our alternative investments, primarily securities, earn less income for us than real estate loans |
| Customer demand for loans secured by real estate could be reduced by a weaker economy, an increase in unemployment, a decrease in real estate values, or an increase in interest rates |
| Wisconsin Tax Developments Could Reduce Our Net Income Like many Wisconsin financial institutions, we have non-Wisconsin subsidiaries which hold and manage investment assets and some loans, the income on which has not been subject to Wisconsin tax |
| The Wisconsin Department of Revenue has instituted an audit program specifically aimed at out-of-state subsidiaries |
| The Department has asserted the position that some or all of the income of the out-of-state subsidiaries is taxable in Wisconsin |
| The Department is conducting audits of many such organizations, including our Nevada subsidiaries; its audit of Bank Mutual and its Nevada subsidiaries, for the years 1998 to 2001, has not yet been concluded, and the Department has not asserted a claim against the Bank or its subsidiaries |
| Similar claims could be made by the Department relating to subsequent periods |
| Depending upon the terms and circumstances, an adverse resolution of these matters could result in additional Wisconsin tax obligations for prior periods and/or higher Wisconsin taxes going forward, with substantial negative impact on the earnings of the Company |
| Although the Company believes it has reported income and paid Wisconsin taxes in accordance with applicable legal requirements, and the Department’s long standing interpretations thereof, the Company’s position may not prevail in court or other actions may occur which give rise to liabilities |
| We also may incur further costs in the future to address and defend these issues |
| ” Economic Conditions and World Events Could Affect Our Earnings Portions of the United States economy have been strong as evidenced by the Federal Open Market Committee (“FOMC”) remarks |
| The economy is and will be influenced by the rebuilding of the areas affected by recent hurricanes |
| Since the FOMC has been attempting to stave off high inflation by increasing short-term interest rates, the effects of the increases may lead to reduced corporate profits and higher unemployment |
| Similarly, reduced income or confidence can lead consumers to reduce their purchases, and thus reduce loan demand |
| We, and the economy as a whole, may be affected by future world events, such as acts of terrorism, developments in the war on terrorism, conflict in the Middle East and other international situations, and by natural disasters |
| Strong Competition Within Our Market Area May Reduce Our Customer Base We encounter strong competition both in attracting deposits and originating real estate and other loans |
| We compete with commercial banks, savings institutions, mortgage banking firms, credit unions, finance companies, mutual funds, insurance companies, and brokerage and investment banking firms |
| Our market area includes branches of several commercial banks that are substantially larger than us in terms of deposits and loans |
| For example, almost half of the deposits in the Milwaukee market area are held by two large commercial banks |
| In addition, tax-exempt credit unions operate in most of our market area and aggressively price their products and services to a large part of the population |
| If our competitors succeed in attracting business from our customers, our deposits and loans could be reduced, which would likely affect our earnings |
| 35 _________________________________________________________________ [86]Table of Contents Our Ability to Grow May Be Limited if We Cannot Make Acquisitions In an effort to fully deploy the capital we raised in our October 2003 offering, we continue to seek to expand our banking franchise by opening two to three new offices per year, internally and by acquiring other financial institutions or branches and other financial services providers |
| Our ability to grow through selective acquisitions of other financial institutions or branches will depend on successfully identifying, acquiring, and integrating those institution or branches |
| We cannot assure you that we will be able to generate internal growth or identify attractive acquisition candidates, make acquisitions on favorable terms or successfully integrate any acquired institutions or branches |
| We Have Significant Intangible Assets Which We May Need to Write Off (Expense) in the Future We have approximately dlra52dtta6 million in goodwill, dlra3dtta8 million in other intangible assets and dlra4dtta8 million of mortgage servicing rights as of December 31, 2005 |
| We continue to amortize the other intangible assets over seven to fifteen years and will evaluate the mortgage servicing rights for impairment on a monthly basis |
| We will periodically evaluate goodwill and the other intangible assets for impairment |
| At some point in the future, our intangible assets could become impaired, and we would need to write them off as a reduction to earnings in the period in which they became impaired |
| We Are Subject to Security and Operational Risks Relating to Our Use of Technology that Could Damage Our Reputation and Our Business Security breaches in our internet, telephonic or other banking activities could expose us to possible liability and damage our reputation |
| Any compromise of our security also could deter customers from using our internet banking services that involve the transmission of confidential information |
| We rely on standard internet and other security systems to provide the security and authentication necessary to effect secure transmission of data |
| These precautions may not protect our systems from compromises or breaches of our security measures that could result in damage to our reputation and our business |
| Additionally, we outsource our data processing to a third party |
| If our third party provider encounters technological or other difficulties or if we have difficulty in communicating with that third party processor, it will significantly affect our ability to adequately process and account for customer transaction, which would significantly affect our business operations |