THE CORPORATE LIBRARY

Related Party Transactions and Outside Related Director Information

Bank Mutual Corporation (BKMU)

3/10/2006 Proxy Information

Michael T. Crowley III, the adult son of Mr. Crowley Jr., is the Vice President/Bank Office Administration/Southeast Region of the Bank. In 2005, his salary was $76,000, plus a bonus of $9,729 under the BankÕs incentive plan; he also participates in other Bank benefit plans. Mr. Crowley III does not have an employment agreement.

Banking Relationships

The Bank has had, and expects to continue to have, regular business dealings with its officers and directors, as well as their associates and the firms which they serve. The BankÕs historical policy has been that transactions, including loans, deposits and other securities, with its directors and executive officers be on terms that are no more beneficial to the director or executive officer than the Bank would provide to unaffiliated third parties. Directors and executive officers, and their associates, regularly deposit funds with the Bank; the deposits are made on the same terms and conditions which are offered to other depositors.

The Bank historically discouraged lending from the Bank to its insiders, but loans were occasionally made. Certain directors and executive officers have been indebted to the Bank for loans made in the ordinary course of business. Those loans have been on substantially the same terms, including interest rates and collateral, as those then prevailing for comparable transactions with other persons. These loans do not involve more than the normal risk of collectability or present other unfavorable features.

Upon the merger of First Northern into the Bank, the combined Bank adopted policies for loans, with preferential rates, to officers, directors and employees similar to First NorthernÕs historical policies. Prior to its acquisition by the Company, First Northern established policies relating to loans to directors and officers which, consistent with applicable laws and regulations, permitted certain preferential loan terms to directors and executive officers. As a matter of practice, however, the Company continues to discourage such loans with its directors and executive officers. Management believes that the loans made to directors and officers do not involve more than the normal risk of collectability or present other unfavorable features.

The following table sets forth certain data relating to existing loans with these special terms to directors and executive officers of Bank Mutual Corporation where the aggregate amount of such loans exceeded $60,000 at any time since January 1, 2005 and the interest rate was below that offered to all other customers for comparable transactions. Information for loans with no preferential terms is not, and need not be, presented. (See page 19 of proxy for table).

Architectural Fees

Mr. Herr is partner in Plunkett Raysich Architects LLC, an architectural firm that from time to time provides architectural design and related services to the Bank. These types of fees tend to increase during periods in which the Bank is making arrangements to open or relocate multiple offices, such as was the case in 2005. For services during 2005 and 2004, the Bank has paid Plunkett Raysich and its affiliates approximately $102,346 and $113,150, respectively, for such services. During 2003, fees payable to that firm were less than $60,000. Going forward, the Company, Mr. Herr and Plunkett Raysich have agreed that the Company will reduce its use of Plunkett RaysichÕs services in order that Mr. Herr may qualify, at a future date, for consideration as an Òindependent director.Ó

3/14/2005 Proxy Information

The Bank has had, and expects to continue to have, regular business dealings with its officers and directors, as well as their associates and the firms which they serve. The Bank's historical policy has been that transactions with its directors and executive officers be on terms that are no more beneficial to the director or executive officer than the Bank would provide to unaffiliated third parties. Directors and executive officers, and their associates, regularly deposit funds with the Bank; the deposits are made on the same terms and conditions which are offered to other depositors.

The Bank historically discouraged lending from the Bank to its insiders, but loans were occasionally made. Certain directors and executive officers have been indebted to the Bank for loans made in the ordinary course of business. Those loans have been on substantially the same terms, including interest rates and collateral, as those then prevailing for comparable transactions with other persons. These loans do not involve more than the normal risk of collectability or present other unfavorable features.

Upon the merger of First Northern into the Bank, the combined Bank adopted policies for loans, with preferential rates, to officers, directors and employees similar to First Northern's historical policies. Prior to its acquisition by the Company, First Northern established policies relating to loans to directors and officers which, consistent with applicable laws and regulations, permitted certain preferential loan terms to directors and executive officers. As a matter of practice, however, the Company continues to discourage such loans with its directors and executive officers. Management believes that the loans made to directors and officers do not involve more than the normal risk of collectability or present other unfavorable features.

The following table sets forth certain data relating to existing loans with these special terms to directors and executive officers of Bank Mutual Corporation where the aggregate amount of such loans exceeded $60,000 at any time since January 1, 2004 and the interest rate was below that offered to all other customers for comparable transactions. Except as indicated, information for loans with no preferential terms is not, and need not be, presented. (Table on page 19 of proxy)

Mr. Herr is partner in Plunkett Raysich Architects LLC, an architectural firm that from time to time provides architectural design and related services to the Bank. These types of fees tend to increase during periods in which the Bank is making arrangements to open or relocate multiple offices, such as was the case in 2004. For services during 2004, the Bank has paid Plunkett Raysich and its affiliates approximately $113,150 for such services. During 2003 and 2002, fees payable to that firm were less than $60,000 in each year.