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SECURITIES AND EXCHANGE COMMISSION
 WASHINGTON, D.C. 20549
 FORM 11-K
 þ
     ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
 For the fiscal year ended December 31, 2010
 OR
 o
     TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
 
  A.
    
    Full title of the plan and the address of the plan, if different from that of
the issuer named below:
 
 B.
    
    Name of issuer of the securities held pursuant to the plan and the address of
its principal executive office:




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SIGNATURES
 The Plan
 BANK MUTUAL CORPORATION
401(K) PLANDate: June 24, 2010/s/ Michael T. Crowley, Jr.Michael T. Crowley, Jr., Trustee/s/ David A. BaumgartenDavid A. Baumgarten, Trustee/s/ Michael W. DoslandMichael W. Dosland, Trustee




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Bank Mutual Corporation 401(k) Plan
 Financial Statements and Supplemental Schedule




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##### 



Bank Mutual Corporation 401(k) Plan
 Financial Statements and Supplemental Schedule
 Table of Contents
 Report of Independent Registered Public Accounting Firm
    
    
    1Financial StatementsStatements of Net Assets Available for Benefits
    
    
    2Statements of Changes in Net Assets Available for Benefits
    
    
    3Notes to Financial Statements
    
    
    4Supplemental ScheduleSchedule H, Line 4i  Schedule of Assets (Held at End of Year)
    
    
    16




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Report of Independent Registered Public Accounting Firm
 
       
 1




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Bank Mutual Corporation 401(k) Plan
 
 Statements of Net Assets Available for Benefits
 2010
    
    
    2009AssetsInvestments, at fair value
    
    $
    23,791,960
    
    
    $
    23,450,358Receivables:Participant contributions
    
    
    41,577
    
    
    
    40,590Employer contributions
    
    
    5,502
    
    
    
    5,495Interest
    
    
    0
    
    
    
    29,768Notes receivable from participants
    
    
    304,512
    
    
    
    235,144Total receivables
    
    
    351,591
    
    
    
    310,997Cash
    
    
    0
    
    
    
    59,837Total assets
    
    
    24,143,551
    
    
    
    23,821,192LiabilitiesBenefits payable
    
    
    1,046
    
    
    
    5,316Net assets available for benefits, at fair value
    
    
    24,142,505
    
    
    
    23,815,876Adjustment from fair value to contract value for the fully
benefit-responsive investment contracts held by the Stable Return Fund
    
    
    (46,993
    )
    
    
    (4,223
    )Net assets available for benefits
    
    $
    24,095,512
    
    
    $
    23,811,653
  2




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Bank Mutual Corporation 401(k) Plan
 
 Statements of Changes in Net Assets Available for Benefits
 2010
    
    
    2009Investment income:Net appreciation in fair value of investments
    
    $
    1,005,083
    
    
    $
    773,852Interest and dividends
    
    
    307,208
    
    
    
    448,209Total investment income
    
    
    1,312,291
    
    
    
    1,222,061Interest income on notes receivable from participants
    
    
    12,944
    
    
    
    8,563Contributions:Participant
    
    
    1,303,744
    
    
    
    1,352,294Employer
    
    
    165,596
    
    
    
    171,489Rollover
    
    
    47,602
    
    
    
    16,719Total contributions
    
    
    1,516,942
    
    
    
    1,540,502Deductions:Benefits paid to participants
    
    
    2,546,779
    
    
    
    1,468,983Investment advisory fees
    
    
    11,539
    
    
    
    6,398Total deductions
    
    
    2,558,318
    
    
    
    1,475,381Net increase in net assets available for benefits
    
    
    283,859
    
    
    
    1,295,745Net assets available for benefits at beginning
    
    
    23,811,653
    
    
    
    22,515,908Net assets available for benefits at end
    
    $
    24,095,512
    
    
    $
    23,811,653
  3




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Bank Mutual Corporation 401(k) Plan
 
 Notes to Financial Statements
 Note 1
    
    Plan Description
  General
  Participant Contributions
  Employer Contributions
  Participants Accounts
  4




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Bank Mutual Corporation 401(k) Plan
 Notes to Financial Statements
 Note 1
    
    Plan Description(Continued)
 Participants Accounts
  Vesting
  Payment of Benefits
  Expenses of the Plan
  Notes Receivable From Participants
  5




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Bank Mutual Corporation 401(k) Plan
 Notes to Financial Statements
 Note 1
    
    Plan Description(Continued)
 Plan Termination
  Note 2
    
    Summary of Significant Accounting Policies
 Method of Accounting
   Use of Estimates in Preparation of Financial Statements
  Investment Valuation and Income Recognition
  6




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Bank Mutual Corporation 401(k) Plan
 Notes to Financial Statements
 Note 2
    
    Summary of Significant Accounting Policies(Continued)
 Investment Valuation and Income Recognition
  Notes Receivable From Participants
  Payment of Benefits
  New Accounting Pronouncement
 Reporting Loans to
Participants by Defined Contribution Pension Plans
 Subsequent Events
  7




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Bank Mutual Corporation 401(k) Plan
 Notes to Financial Statements
 Note 3 Investments
 The following is a schedule of investments that individually represent 5% or more of the
Plans net assets at December 31:
 2010
    
    
    2009Asset Fair
    
    
    Percent of
    
    
    Asset Fair
    
    
    Percent ofValue
    
    
    Net Assets
    
    
    Value
    
    
    Net AssetsBank Mutual Corporation
Certificate of Deposit*
    
    $
    2,219,459
    
    
    
    9.2
    
    
    $
    2,763,732
    
    
    
    11.6Wells Fargo Stable Return
Fund* **
    
    
    2,136,437
    
    
    
    8.9
    
    
    
    2,149,273
    
    
    
    9.0American Funds EuroPacific
Growth Fund
    
    
    2,075,431
    
    
    
    8.6
    
    
    
    2,077,536
    
    
    
    8.7Davis New York Venture Fund
    
    
    1,399,140
    
    
    
    5.8
    
    
    
    1,463,991
    
    
    
    6.1JP Morgan Small Cap Growth
Fund
    
    
    1,275,646
    
    
    
    5.3
    
    
    
    ***
    
    
    
    ***MFS Value Fund
    
    
    1,368,832
    
    
    
    5.7
    
    
    
    1,232,513
    
    
    
    5.2Morgan Stanley Mid Cap Growth
Fund
    
    
    1,284,081
    
    
    
    5.3
    
    
    
    ***
    
    
    
    ***PIMCO Total Return Fund
    
    
    1,980,334
    
    
    
    8.2
    
    
    
    1,644,284
    
    
    
    6.9T. Rowe Price Growth Stock
Fund
    
    
    2,316,333
    
    
    
    9.6
    
    
    
    2,013,585
    
    
    
    8.5Wells Fargo
Advantage Small Cap Value Fund*
    
    
    2,385,877
    
    
    
    9.9
    
    
    
    2,185,013
    
    
    
    9.2Bank Mutual
Corporation Common Stock Fund*
    
    
    2,434,530
    
    
    
    10.1
    
    
    
    3,682,422
    
    
    
    15.5
 
 *
    
    Represents party-in-interest.**
    
    Investment shown at contract value which is the relevant measurement attribute for fully benefit-responsive investment contracts.***
    
    Represents less than 5% of the Plans net assets for this year. 8




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Bank Mutual Corporation 401(k) Plan
 Notes to Financial Statements
 Note 3 Investments
 During 2010 and 2009, the Plans investments (including investments bought or sold during the year
as well as those held at the end of the year) appreciated (depreciated) as follows:
 2010
    
    
    2009Common/collective trust fund
    
    $
    374,840
    
    
    $
    56,289Mutual funds
    
    
    1,951,592
    
    
    
    3,168,203Bank Mutual
Corporation common stock Fund
    
    
    (1,321,349
    )
    
    
    (2,450,640
    )Net appreciation
    
    $
    1,005,083
    
    
    $
    773,852
 Note 4 Fair Value Measurements
 Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) 820, Fair
Value Measurements and Disclosures, provides the framework for measuring fair value. That
framework provides a fair value hierarchy which prioritizes the inputs to valuation techniques used
to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in
active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority
to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are
described as follows:
 Level 1
    
    Inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in active markets that the Plan has the
ability to access.Level 2
    
    Inputs to the valuation methodology include:
 
    
    Quoted prices for similar assets or liabilities in active markets.
    
    Quoted prices for identical or similar assets or liabilities in inactive markets.
    
    Inputs other than quoted prices that are observable for the asset or liability.
    
    Inputs that are derived principally from or corroborated by observable market data by correlation or other means.
 9




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Bank Mutual Corporation 401(k) Plan
 Notes to Financial Statements
 Note 4 Fair Value Measurements
 If the asset or liability has a specified (contractual) term, the Level 2 input must
be observable for substantially the full term of the asset or liability.Level 3
    
    Inputs to the valuation methodology are unobservable and significant to the fair value
measurement.
 The assets or liabilitys fair value measurement level within the fair value hierarchy is based on
the lowest level of any input that is significant to the fair value measurement. Valuation
techniques used need to maximize the use of observable inputs and minimize the use of unobservable
inputs.Following is a description of the valuation methodologies used for assets measured at fair value.
There have been no changes in the methodologies used at December 31, 2010 and 2009.Certificates of deposit fund:Valued at the net asset value (NAV) by discounting the related cash
flows based on current yields of similar instruments with comparable durations considering the
creditworthiness of the issuer.Common/collective trust fund  Wells Fargo Stable Return Fund:Valued at fair value by
discounting the related cash flows based on current yields of similar instruments with comparable
durations considering the creditworthiness of the issuer. The Wells Fargo Stable Value Fund is
based on the underlying unit value reported by Wells Fargo Stable Return Fund G (Fund G). Fund G
invests in investment contracts issued or sponsored by various insurance companies, commercial
banks, and investment funds. The beneficial interest of each participant is represented by units
which are issued and redeemed daily at the Funds constant net asset value of $1 per unit.
Distribution to the Funds unit holders is declared daily from the net investment income and
automatically reinvested in the Fund on a monthly basis, when paid. It is the policy of the Fund
to use its best efforts to maintain a stable net asset value of $1 per unit; although there is no
guarantee that the Fund will be able to maintain this value. Participants may ordinarily direct
the withdrawal or transfer of all or a portion of their investment on contract value.Mutual funds:Valued at the NAV provided by the administrator of the fund. The NAV is based on
the value of the underlying assets owned by the fund, minus its liabilities, and then divided by
the number of shares outstanding. The NAV is a quoted price in an active market.
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Bank Mutual Corporation 401(k) Plan
 Notes to Financial Statements
 Note 4 Fair Value Measurements
 Bank Mutual Corporation common stock fund: Bank Mutual Corporation common
stock fund is a unitized fund, which means that participants do not own shares of
Company stock directly but rather own an interest in the unitized
fund. The
fund consists of Bank Mutual Corporation common stock and a cash equivalent for liquidity purposes.
The fund is valued using quoted market price of stock, plus the value of any
cash equivalent. The Plan owns the underlying assets of shares in Bank Mutual common stock and the
cash equivalent.The preceding methods described may produce a fair value calculation that may not be indicative of
net realizable value or reflective of future fair values. Furthermore, although the Plan believes
its valuation methods are appropriate and consistent with other market participants, the use of
different methodologies or assumptions to determine the fair value of certain financial instruments
could result in a different fair value measurement at the reporting date.
 11




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Bank Mutual Corporation 401(k) Plan
 Notes to Financial Statements
 Note 4 Fair Value Measurements
 The following tables set forth by level, within the fair value hierarchy, the Plans assets at fair
value as of December 31, 2010 and 2009:
 Assets at Fair Value as of December 31, 2010Level 1
    
    
    Level 2
    
    
    Level 3
    
    
    TotalCertificates of deposit fund
    
    $
    0
    
    
    $
    2,368,702
    
    
    $
    0
    
    
    $
    2,368,702Common/collective trust fund
    
    
    0
    
    
    
    2,183,430
    
    
    
    0
    
    
    
    2,183,430Mutual funds:Balanced funds
    
    
    5,860,448
    
    
    
    0
    
    
    
    0
    
    
    
    5,860,448Bond fund
    
    
    1,980,334
    
    
    
    0
    
    
    
    0
    
    
    
    1,980,334Growth funds
    
    
    4,876,060
    
    
    
    0
    
    
    
    0
    
    
    
    4,876,060Target funds
    
    
    1,825,832
    
    
    
    0
    
    
    
    0
    
    
    
    1,825,832Value funds
    
    
    2,262,624
    
    
    
    0
    
    
    
    0
    
    
    
    2,262,624Total mutual funds
    
    
    16,805,298
    
    
    
    0
    
    
    
    0
    
    
    
    16,805,298Bank Mutual Corporation
common stock fund
    
    
    2,434,530
    
    
    
    0
    
    
    
    0
    
    
    
    2,434,530Total assets at fair value
    
    $
    19,239,828
    
    
    $
    4,552,132
    
    
    $
    0
    
    
    $
    23,791,960
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Bank Mutual Corporation 401(k) Plan
 Notes to Financial Statements
 Note 4 Fair Value Measurements
 Assets at Fair Value as of December 31, 2009Level 1
    
    
    Level 2
    
    
    Level 3
    
    
    TotalCertificates of deposit fund
    
    $
    0
    
    
    $
    2,914,647
    
    
    $
    0
    
    
    $
    2,914,647Common/collective trust fund
    
    
    0
    
    
    
    2,153,496
    
    
    
    0
    
    
    
    2,153,496Mutual funds:Balanced funds
    
    
    5,726,540
    
    
    
    0
    
    
    
    0
    
    
    
    5,726,540Bond fund
    
    
    1,644,284
    
    
    
    0
    
    
    
    0
    
    
    
    1,644,284Growth funds
    
    
    4,007,775
    
    
    
    0
    
    
    
    0
    
    
    
    4,007,775Target funds
    
    
    1,389,332
    
    
    
    0
    
    
    
    0
    
    
    
    1,389,332Value funds
    
    
    1,931,862
    
    
    
    0
    
    
    
    0
    
    
    
    1,931,862Total mutual funds
    
    
    14,699,793
    
    
    
    0
    
    
    
    0
    
    
    
    14,699,793Bank Mutual Corporation
common stock fund
    
    
    3,682,422
    
    
    
    0
    
    
    
    0
    
    
    
    3,682,422Total assets at fair value
    
    $
    18,382,215
    
    
    $
    5,068,143
    
    
    $
    0
    
    
    $
    23,450,358
 The common/collective trust funds objective is to provide a moderate level of stable income
without principal volatility while seeking to maintain adequate liquidity and returns superior to
shorter maturity instruments. To achieve this, the fund invests in a variety of investment
contracts and instruments that are not expected to experience significant price fluctuations in
most economic or interest rate environments. However, there is no assurance that this objective
can be achieved. As of December 31, 2010 and 2009, there are no unfunded commitments on the fund.
The fund is able to be redeemed with written notice, on a daily basis for the years ended December
31, 2010 and 2009. The fund requires a one-day redemption notice period.The certificates of deposit fund is a short-term investment in which the money is invested for a
certain amount of time. In return, the certificates of deposit pay a predetermined rate of
interest. As of December 31, 2010 and 2009, there are no unfunded commitments on the fund. The
fund is able to be redeemed on a daily basis for the years ended December 31, 2010 and 2009.
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Bank Mutual Corporation 401(k) Plan
 Notes to Financial Statements
 Note 5 Parties-in-Interest Transactions
 Certain plan investments are shares of Bank Mutual Corporation Common Stock. The Plan had the
following transactions with the Corporation at December 31:
 2010
    
    
    2009Purchases of stock:Number of shares
    
    
    98,771
    
    
    
    167,773Value of shares on transaction dates
    
    $
    581,541
    
    
    $
    1,459,785Sales of stock:Number of shares
    
    
    98,834
    
    
    
    133,277Value of shares on transaction dates
    
    $
    486,880
    
    
    $
    1,233,209Benefit payments in-kind:Number of shares
    
    
    26,669
    
    
    
    63,036Value of shares on transaction dates
    
    $
    180,473
    
    
    $
    554,923
 At December 31, 2010 and 2009, the Plan held 504,642 shares and 531,374 shares, respectively,
of Bank Mutual Corporation common stock.Certain plan investments are Bank Mutual Corporation common stock and a certificate of deposit, as
well as shares of mutual funds, a common/collective trust fund, and a certificate of deposit fund
managed by Wells Fargo Investments. Bank Mutual Corporation is the trustee for 2010 and 2009 and
Wells Fargo Retirement Plan Services is the custodian for 2010 and 2009 as defined by the Plan and,
therefore, these transactions qualify as party-in-interest transactions. Fees paid by the Plan for
investment management services amounted to $11,539 and $6,398 for the years ended December 31, 2010
and 2009, respectively.
 Note 6 Corrective Distributions
 Benefits paid to participants for the plan years ended December 31, 2010 and 2009, include
payments of $1,311 and $3,008, respectively, made to a certain active participant to return excess
deferral contributions as required to satisfy the relevant nondiscrimination provisions of the
Plan. Of this amount, $1,046 and $5,316 are also included in the Plans statements of net assets
available for benefits as benefits payable at December 31, 2010 and 2009, respectively.
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Bank Mutual Corporation 401(k) Plan
 Notes
to Financial Statements
 Note 7
    
    Tax-Exempt Status of the PlanOn August 30, 2001, the Internal Revenue Service (IRS) declared the prototype used by the Plan
is qualified pursuant to Section 401 of the Internal Revenue Code. Plan management believes any
amendments and events since the effective date of the last IRS determination letter do not affect
the qualified status of the Plan. Accordingly, the Plan is exempt from federal and state income
taxes under current provisions of their respective laws.GAAP requires the Plans management to evaluate tax positions taken by the Plan and recognize a tax
liability (or asset) if the Plan has taken an uncertain position that more likely than not would
not be sustained upon examination by the IRS. The plan administrator has analyzed the tax
positions taken by the Plan and has concluded that as of December 31, 2010, there are no uncertain
positions taken or expected to be taken that would require recognition of a liability (or asset) or
disclosure in the financial statements. The Plan is subject to routine audits by taxing
jurisdictions; however, there are currently no audits for any tax periods in progress. The plan
administrator believes it is no longer subject to income tax examinations for years prior to 2007.
 Note 8
    
    Risks and UncertaintiesThe Plan invests in various investment securities. Investment securities are exposed to
various risks such as interest rate, market, and credit risks. Due to the level of risk associated
with certain investment securities, it is at least reasonably possible that changes in the values
of investment securities will occur in the near term and that such changes could materially affect
participants account balances and the amounts reported in the statements of net assets available
for benefits.
 Note 9    Reclassifications
 Certain reclassifications have been made to the 2009 financial statements to conform to the
2010 classifications.
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Supplemental Schedule




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Bank Mutual Corporation 401(k) Plan
 
 Schedule H, Line 4i  Schedule of Assets (Held at End of Year)
 Identity of Issue,
    
    
    Description of Investment IncludingBorrower, Lessor,
    
    
    Maturity Date, Rate of Interest,
    
    
    
    
    
    Currentor Similar Party
    
    
    Collateral, Par, or Maturity Value
    
    Cost
    
    
    ValueCertificates of deposit fund:Bank Mutual Corporation*
    
    1.55%, due January 14, 2011
    
    $
    N/R
    
    
    $
    2,219,459Wells Fargo*
    
    149,243.000 shares   Cash Investment Fund
    
    
    N/R
    
    
    
    149,243Total certificates of deposit fund
    
    
    
    
    
    
    2,368,702Common/collective trust fund:Wells Fargo*
    
    46,818.053 shares   Stable Return Fund**
    
    
    N/R
    
    
    
    2,136,437Mutual funds:American Funds
    
    51,018.460 shares   EuroPacific Growth Fund
    
    
    N/R
    
    
    
    2,075,431Davis New York
    
    40,743.729 shares   Venture Fund
    
    
    N/R
    
    
    
    1,399,140Goldman Sachs
    
    24,896.707 shares   Mid Cap Value Fund
    
    
    N/R
    
    
    
    893,792JP Morgan
    
    109,122.823 shares   Small Cap Growth Fund
    
    
    N/R
    
    
    
    1,275,646MFS
    
    60,010.196 shares   Value Fund
    
    
    N/R
    
    
    
    1,368,832Morgan Stanley
    
    35,471.861 shares   Mid Cap Growth Fund
    
    
    
    
    
    
    1,284,081PIMCO
    
    182,519.302 shares   Total Return Fund
    
    
    N/R
    
    
    
    1,980,334T. Rowe Price
    
    72,612.315 shares   Growth Stock Fund
    
    
    N/R
    
    
    
    2,316,333Wells Fargo*
    
    73,208.861 shares   Advantage Small Cap Value Fund
    
    
    N/R
    
    
    
    2,385,8773,375.026 shares   Advantage Dow Jones Target Today
Fund
    
    
    N/R
    
    
    
    35,94419,059.920 shares   Advantage Dow Jones Target 2010
Fund
    
    
    N/R
    
    
    
    244,15726,166.426 shares   Advantage Dow Jones Target 2020
Fund
    
    
    N/R
    
    
    
    362,40555,548.986 shares   Advantage Dow Jones Target 2030
Fund
    
    
    N/R
    
    
    
    805,46017,310.264 shares   Advantage Dow Jones Target 2040
Fund
    
    
    N/R
    
    
    
    277,31011,037.985 shares   Advantage Dow Jones Target 2050
Fund
    
    
    N/R
    
    
    
    100,556Total mutual funds
    
    
    
    
    
    
    16,805,298Bank Mutual Corporation*
    
    610,197.570 units            Common stock fund
    
    
    N/R
    
    
    
    2,434,530Participant Loans*
    
    4.25% to 9.25% notes, maturing over the next 11 years
    
    
    
    
    
    
    304,512Total assets (held at end of year)
    
    
    
    
    
    $
    24,049,479
 
 *
    
    Party-in-interest**
    
    At contract value   16




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Consent of Independent Registered Public Accounting Firm